BROADWAY SHOPPING CENTREMAIDSTONE ME16 8PS

River Medway

River Medway

London Road/A20

High Street

To M20, Junction 6

Tonbridge Road/A26

Maidstone West

Week Street

KEY INvESTmENT CRITERIA• Rare opportunity to purchase a highly prominent 2.9 acre site within the centre of Maidstone

• Freehold

• Open A1 planning consent (including food on part)

• Current income is £755,200 pa with over 90% secured to Lidl and Matalan

• AWULT of 6.4 years, assuming break options are exercised

• Low passing rents compared to competing Open A1 retail parks

• Medium to long term redevelopment opportunity

• We are seeking offers in excess of £9,400,000 (Nine Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 7.32% on the current income, net of all shortfalls, allowing for purchasers’ costs of 5.8%. The yield rises to 7.75% upon completing the lettings on units 6 & 8 (which are currently under offer), further rising to 8.34% on letting unit 4 and completing the Lidl rent review at our opinion of ERV.

BROADWAY SHOPPING CENTRE

LOCATIONMaidstone is the County Town and administrative centre of Kent. The town is situated approximately 32 miles (51 km) south east of London, 20 miles (32 km) north west of Ashford and 28 miles (45 km) west of Canterbury. The strength of Maidstone as a commercial centre is largely as a result of excellent communications with the rest of the South East. The town is located on the M20, with easy access to the M25 and to the ports of Dover and Folkestone. The M20 link with the Channel Tunnel has greatly increased the importance of Maidstone as a strategic commercial centre. Additionally, there is a frequent, fast rail service to London Victoria with a journey time of approximately 55 minutes.

SITuATIONThe Broadway Shopping Centre is situated in a highly prominent and visible location in close proximity to Maidstone town centre. The island site overlooks the meeting point of Maidstone’s principal arterial roads serving the town centre. The Centre benefits from pedestrian links directly into Maidstone’s core in-town retail offer.

DESCRIPTIONThe Broadway Shopping Centre was constructed in 1983 providing 79,653 sq ft of retail accommodation. The main trading level is split into two large stores, with seven additional unit shops at the lower level fronting the roundabout. There are 384 car parking spaces, of which 148 are at grade to the main trading level with a further 206 spaces at a lower level. There is an additional staff car park with 30 spaces on the lower level. The car park is accessed from the roundabout onto Buckland Road. The site extends to approximately 1.175 hectares (2.90 acres).

CATCHmENT & SOCIO-ECONOmIC ANALYSISPopulation

The residential population within a 10 minute drive time of the subject property is 116,639. Maidstone’s population is predicted to grow by 50% more than the national average by 2016 (Source: PROMIS).

Drive Time Population Number of Households

5 minutes 46,705 20,480

10 minutes 116,639 49,262

15 minutes 243,135 99,848

Social Grades

Household Income

BROADWAY SHOPPING CENTRE

Socio - Economic Profile

Maidstone is above the national average in terms of its socio-economic profile.

Mosaic Grouping

Experian’s top 3 Mosaic groups are represented as follows:

• 21.95% ‘Suburban Mindsets’ Maturing families on mid-range incomes living a moderate lifestyle in suburban semis

• 15.37% ‘Professional Rewards’ Experienced professionals in successful careers enjoying financial comfort in suburban or semi-rural homes

• 11.14% ‘New Homemakers’ Young singles and couples in small modern starter homes

ASSET mANAGEmENT OPPORTuNITIES • Explore future development for foodstore use, subject to planning and securing vacant possession • Investigate potential lease regear and store reconfiguration with Lidl. It is our opinion that, as configured, the current ERV of this store is £395,000 per annum exclusive (£11.50 psf) showing an increase from the passing rent of £350,000 per annum exclusive • Conclude lettings on vacant colonnade units (4, 6 & 8) and complete the lease regear on unit 7 to extend expiry profile and improve running yield

COvENANT INfORmATION Lidl UK Assets GMBH (FC021106) was founded by the Schwarz family inGermany during the 1930s. Lidl became established in the UK in 1994 and currently trades from more than 580 stores throughout the UK, of which circa 500 are owner occupied. Lidl is part of Schwarz Gruppe, according to Deloitte the 7th largest retailer in the world by turnover. As at April 2013 Lidl’s UK market share is at an all-time high of 3.0%. Matalan Retail Limited (02103564) is one of the UK’s leading clothingand homewares retailers, operating from over 200 stores. The recentannouncement of Allan Leighton, the former Asda Chief Executive, aschairman has prompted speculation of future expansion plans. For theyear ending 25/02/2012 Matalan Retail Limited reported a turnover of £1.1bn, pre-tax profit of £9.9m and a net worth of £243.4m. The company has a Commercial Delphi Score of 100/100 and is described as having ‘Very Low Risk’ in terms of business failure. Recent trading statements have been positive with a surge in EBITDA of 10% to £100m for the full year to 23/02/2013. Matalan ended the year with £120.7m in cash. 5K Fitness Limited (07101315) t/a truGym was founded in Maidstone in 2010 and they now have 13 gyms nationwide, reflecting rapid expansion. The retailers in the colonnade are local covenants.

RETAILING IN mAIDSTONEThe subject property is at the heart of Maidstone’s existing retail warehousing offer, principally London Road Retail Park (76,019 sq ft) and St Peters Wharf Retail Park (131,981 sq ft) as well as several standalone units. In addition to the above provision, South Aylesford Retail Park (166,835 sq ft), anchored by Homebase, Halfords and PC World, is a restricted use out of town park located 3 miles (4.86 km) to the north west of the subject property. In our opinion, there is an under provision of food retailing for a town of Maidstone’s catchment and profile. As such, we feel there would be strong demand for a foodstore on this site. Set out below is the current provision of supermarkets within a 10 minute drive time of the subject property:

• Sainsbury’s, Maidstone, ME15 6SF – 52,974 sq ft

• Tesco, Tovil, ME15 6RQ – 26,776 sq ft

• Morrisons, Sutton Road, ME15 9NN – 72,650 sq ft

Lockmeadow Retail Park

London RoadRetail Park St Peters Wharf Retail Park

• Sainsbury’s, Aylesford, ME20 7XB – 76,120 sq ft

• Tesco, Grove Green, ME14 5TQ – 41,303 sq ft

• Waitrose, Allington, ME16 0PX – 24,180 sq ft

TENuREFreehold.

PLANNINGPlanning permission was granted on 11 January 1983 for the “erection of shops, ancillary accommodation and car parking….” (MA/82/1224:W). It is therefore considered that the scheme benefits from an unrestricted Open A1 use, with the exception of the store occupied by Matalan on which the use is restricted to non-food goods.

TENANCIES & ACCOmmODATIONThe property is let in accordance with the schedule of tenancies below. The property produces a gross current income of £755,200 per annum. After deduction of the shortfalls of £27,312 pa there is a net current income of £727,888 per annum. Following the letting of the vacant shops and completing the Lidl rent review at ERV, the net income will rise to £829,200 per annum.

Unit Name Tenant Area Lease Start

Next Rent Review

Lease End(T.O.B.)

Inside Act

Passing Rent ERV Shortfalls EPC Rating

Comments

sq ft sq m pa. psf. pa. psf.

Unit A Matalan Retail Limited 29,751 2,763.9 25/03/1985 25/03/2015 24/03/2020 Yes £334,700 £11.25 £334,700 £11.25 E(114)

Unit B Lidl UK Assets GMBH 34,352 3,191.3 22/05/1985 22/05/2015 21/05/2020 Yes £350,000 £10.19 £395,000 £11.50 E(113)

Unit 1 & 2 5K Fitness Limited 8,462 786.1 05/08/2010 05/08/2015 04/08/2020(05/08/2015) Yes £45,000 £5.32 £45,000 £5.32 C(55)

Unit 3 Mrs. Linda Jane Craddock 1,009 93.7 22/01/2010 22/01/2013 21/01/2020(22/01/2015) No £6,000 £5.95 £6,000 £5.95 D(85)

Unit 4 Vacant 1,022 £6,000 £5.87 £7,019 C(55) Being marketed by Bishop Whitehead.

Unit 5 P.L. Bodilight Limited 1,061 98.5 02/03/2009 02/03/2014 01/03/2019 No £10,000 £9.43 £10,000 £9.43 B(50)

Unit 6 Vacant 983 91.3 £8,000 £8.14 £7,116 C(51) In advanced negotiations with two parties for a new 10 year lease at a rent of £8,000 pa.

Unit 7 MR Carpenter, BA Carpenter, CF Che 1,081 100.4 07/11/2003 06/11/2013 No £9,500 £8.79 £9,500 £8.79 C(75)

Agreed HoT’s for a lease renewal for 10 years at a rent of £9,500 pa, with a mutual break at year 5 (which is not yet agreed).

Unit 8 Vacant 1,932 179.5 £15,000 £7.25 £13,177 D(78)Close to agreeing HoT’s for a new 5 year lease with a mutual break at year 3, at a rent of £15,000 pa.

Total 79,653 7,399.8 £755,200 £829,200 £27,312

Weighted Unexpired Average Lease Term (to breaks) 6.40 years.

Units A, B and 1&2 were measured on a gross internal area basis, the remaining units were measured on a net internal area basis. Unit A & B floor areas were agreed previously at rent review. All units were measured in accordance with the code of Measuring Practice 6th Edition.

BROADWAY SHOPPING CENTREMAIDSTONE ME16 8PS

7-10 Chandos StreetLondon W1G 9DQ

t: 020 7408 0030www.gcw.co.uk

CONTACTFor further information please contact:

Fiona Nichols–dd: 020 7647 4809m: 07817 676 763e: fiona.nichols@gcw.co.uk

Oli Horton–dd: 020 7647 4806m: 07788 695 859 e: oliver.horton@gcw.co.uk

Disclaimer - Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No responsibility or warranty whatever is made or given either during negotiations or in particulars by vendor, lessor or the agent. Gooch Cunliffe Whale LLP. Registered in England No. OC376010. Registered office: 30 City Road, London EC1Y 2AB. July 2013.

Tayler Reid Design no.04263 I 020 7355 2500 I www.taylerreid.co.uk

SERvICE CHARGEThere is a service charge schedule in place with the occupiers all contributing a proportion of the annual figure. The current service charge budget totals £295,000 per annum.

Further information is available on request.

vATThe purchase of the property will be subject to VAT and it is anticipated that the sale will be dealt with via a Transfer of Going Concern.

PROPOSAL We are seeking offers in excess of £9,400,000 (Nine Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 7.32% on the current income, net of all shortfalls, allowing for purchasers’ costs of 5.8%. The yield rises to 7.75% upon completing the lettings on units 6 & 8 (which are currently under offer), further rising to 8.34% on letting unit 4 and completing the Lidl rent review at our opinion of ERV.