CARMEL HOUSE – H&M, HSBC, FOOT LOCKER & 3 STORESHEFFIELD

P R I M E L O N G I N C O M E R E T A I L I N V E S T M E N T

a

PRIME LONG INCOME RETAIL INVESTMENT

CARMEL HOUSE – H&M, HSBC, FOOT LOCKER AND 3 STORE

100% prime flagship freehold retail parade;

Best trading position in Sheffield;

Modern, recently developed, well configured retail

units behind a listed facade;

12 years average weighted unexpired;

Let to the excellent retailers of; H&M, HSBC,

Foot Locker and 3 Store;

Sheffield is the 5th largest city in the UK and boasts a

Catchment Population of 8.2m;

Sheffield’s shopping population is forecast to grow

by 8% by 2018;

We are instructed to seek offers for the Freehold

investment of the subject property in excess of

£22,600,000 (Twenty Two Million, Six Hundred

Thousand Pounds), Subject to Contract and exclusive of

VAT, which reflects a Net Initial Yield of 5.75%, assuming

purchaser’s costs of 5.8%;

Investment Considerations

DemographicsSheffield central has a catchment population of 8.2 million and as such, is

ranked as the 9th largest shopping catchment out of more than 2,000 UK

retail centres (NSLSP).

Sheffield’s shopping population is forecast to increase due to development

activity and inward population migration by 7.8% over the 2008 – 2018 period

(NSLSP). PMA project that the city will see above average growth in population up

to 2015.

Sheffield’s catchment population is significantly enhanced by the presence of two

major universities; Sheffield and Sheffield Hallam, which provide approximately an

additional 52,000 residents to the total population.

Over the past decade, total employment in Sheffield has increased in line with

the retail PROMIS average. Sheffield’s economy has become more diversified over

this period, with less reliance on traditional industry and greater emphasis on the

service sectors. The City is home to large banking employers including; HSBC,

Norwich Union, Abbey National and Nationwide. Sheffield has also developed a

reputation for excellence in call centre operations, employers include; Freemans,

DSGi, Telewest and William Hill. BSkyB is planning to set up a new SKY TV call

centre in Sheffield, creating an additional 500 jobs. Voice Marketing, another

call centre, has recently moved to Sheffield and is planning an extension to the

workforce from 270 to 750 throughout 2011.

In addition to the growth in the service sectors, the 2011 budget introduced

the Sheffield Enterprise Zone, which will focus on advance engineering and

technology sectors; a modern manufacturing and technology growth area will

be made up of several key sites linked by the M1 corridor. Whilst this is still

subject to discussion, it is expected that 12,600 jobs will be created by 2015.

Sheffield RetailingSheffield has an estimated 1.5 million square feet of retail accommodation.

The city’s total retail provision is considered to be disproportionally low given

the extensive catchment population that it boasts.

The pedestrianised Fargate provides the prime retail pitch and links with;

High Street to the north and Pinstone Street, The Moor and Barkers Pool,

all to the south.

PRIME LONG INCOME RETAIL INVESTMENT

Lincoln

Mansfield

Manchester

Stockport

Rochdale

Doncaster

Worksop

Nottingham

Rotherham

Sheffield

York

LeedsBradford

Im

Ollerton

Barnsley

Gainsborough

Retford

60

M1

SheffieldSheffield is the fifth largest city in the UK, with a Resident Population of 512,000,

and is the principal administrative centre in South Yorkshire. The City borders

Derbyshire, The Peak District and The Pennines.

Sheffield is strategically located close to the geographical centre of the UK, being 175

miles north of London, 40 miles east of Manchester and 30 miles south of Leeds.

The City benefits from excellent communications infrastructure. By road; the M1

motorway (Junctions 33 and 34) connects Sheffield with the national motorway

network. By rail; Sheffield is served by a mainline railway station with links to

London St Pancreas Station with a journey time of approximately 2 hours, 30

minutes. By air; Sheffield Airport is located approximately 12 miles to the north

east of the City, whilst to the north Leeds/Bradford International Airport is located

within a 1 hour drive time, as is Manchester International Airport to the west.

Sheffield has also seen significant inward investment with the development of

the light rail tram service (Super Tram) which serves the City Centre.

CARMEL HOUSE – H&M, HSBC, FOOT LOCKER AND 3 STORE

Retailers in Fargate Street include; Boots the Chemist, Marks & Spencer, Dorothy

Perkins, Topshop, Next, Game, WH Smith, New Look, River Island and Republic; as

well as retailers in the subject block: Footlocker, HSBC, H&M Hennes and 3 Store.

Rents in prime Fargate historically reached £255 Zone A. However, in recent years

these have fallen back to around £210 Zone A as evidenced by a number of

recent transactions on prime Fargate:

• 34-36 Fargate, February 2010, lease regear to Abbey Bank at £220 Zone A.

• 33-35 Fargate, March 2010, Arcadia lease renewal at £235 Zone A.

• 58 Fargate was let at the bottom of the market in April 2009 to Republic

at £208 Zone A.

• 2 Fargate, September 2008, HSBC rent review at £237 Zone A.

Hammerson’s Sevenstone development, is situated on a site immediately adjacent

to the southern end of Fargate and north of The Moor. The proposed scheme has

recently been revised; the existing 250,000 sq ft John Lewis store will be

remodelled and there will be an additional 500,000 sq ft of new accommodation

comprising retail units, 4 MSUs and a multiplex cinema with leisure and restaurant

operators. Work is not planned to begin until 2013 at the earliest. In our opinion

the subject property, being at the southern end of Fargate, is well placed to

benefit from an improved retail offer should the scheme be delivered.

Rental Growth ProspectsIn our opinion, prime Fargate has excellent rental growth prospects, given the

significant catchment population of over 8.2 million (NSLSP). Other comparable

major regional centres support significantly higher rental tones:

We also note that Meadow Hall, Sheffield City Centre’s primary competition,

reached a rental tone of approximately £400 Zone A.

In our opinion, Sheffield’s status as a regional retail destination can only improve

as the retail and leisure offer in the city improves. We anticipate the rental tone

will therefore increase in the medium term.

CityCatchmentPopulation(million)

RetailProvision

Sq ft (million)

Prime TownCentre Zone ARate (PMA)

Liverpool 5.9 3.0 £280

Newcastle-upon-Tyne 5.5 2.6 £310

Glasgow City Centre 2.8 2.9 £260

PRIME LONG INCOME RETAIL INVESTMENT

TH

CO

VE

NT

RY

CLA

RK

S

TWENTYTWO A

MA

RK

S&

SP

EN

CE

R

MOLLYS

REPUBLIC

BARCLAYS

BLU

EB

AN

AN

A

NEWLO

OK

YO

RK

SH

IRE

TOP

MA

N

OR

ANG

E

AGE UK

PAN

DO

RA

G T NEWS

VANILLA HAIR

ANDIN

O

LOCKWOODS

SAN

TAN

DER

MARK JENKINSON

HAY

S

TOP NAILS SALON

ALL BAR ONE

LAC

OU

PE

HS

BC

LYNNES PANTRY

NA

TIO

NW

IDE

F G THOMAS

PERFUME SHOP

WH

SMIT

H

FOO

TLO

CKE

R

NE

XT

3S

TOR

E LESLIECASS

BRO

WN

BEAR

SHEFFIELD SCENE

H L BROWN

TO

PS

HO

P

SAKS

THE

BOD

YSH

OP

JAM

JAR

BEAD

S

THE

OLD

MO

NK

THE BESSEMER

THO

RN

TON

S

STA

RB

UC

KS

EV

AN

S

HALIFAX

BIRD OPTICIANS

LUSH

TAYLOR TAYLOR

MAM

AS&

LEO

NIES

TH

OM

AS

CO

OK

H&

M

HOLLAND & BARRETT

RIVER ISLAND

YOR

KSH

IRE

MONTGOMERYHALL

TH

EM

US

EU

M FA

TF

AC

E

DO

RO

THY

PE

RK

INS

LEE

DS

VIR

GIN

ME

DIA

STANIFORTHS

P

FIREFLY

SAVILLS

MERCURE HOTEL

MUNCHYS

HERBALINN

ACCESSORIZE

CLAIRESACCESSORIES

SE

LEC

T

STARBUCKS

CO

ST

A

PR

OP

ER

DE

LIC

O

TH

EC

AR

PH

ON

EW

AR

EH

OU

SE

TK

MA

XX

PH

ON

ES

4U

TH

OM

SO

N

HS

AM

UE

L

GAM

E

VO

DA

FO

NE

CA

FFE

NE

RO

EGO

T-M

OB

ILE

OF

FIC

ER B S

BOO

TS

EX

PR

ES

SS

HIR

TP

RIN

TS

CLI

NTO

NC

ARD

S

WA

TE

RS

TO

NE

`S

WIC

KER

HERB

AL

STO

RES

BROOK STREET

MA

NP

OW

ER

JOB

SH

OP

BAN

KO

FSC

OTL

AN

D

JOHN LEWIS

THE DERBYSHIRE

CAROUSEL

CHOCOLATERIE

JOH

NS

ON

S

GR

AC

E&

FLA

VO

UR

GR

EG

GS

PR

OP

ER

PA

ST

YC

O

MA

PLI

NE

LEC

TR

ON

ICS

UP & RUNNING

MOTHERCARE

TO

NI &

GU

Y

ST

AR

BU

CK

S

HS

BC

DELI SHUSS

EY

EF

INI T

YE

YE

ST

UD

IO

GO

ING

PLA

CE

S

LIO

NS

LAIR

CA

NC

ER

RE

SE

AR

CH

UK

J ON

ES

G T NEWSPIRATESPASTYS

SC

HU

H

TH

EC

O-O

PE

RA

TIV

EF

OO

D

MULTIYORK

SC

RIV

EN

S

QC

SB

AG

EL

BA

R

EARLY

LEARNING CENTRE

SU

BW

AY

EV

OLU

TIO

N

WIL

LIA

MH

ILL

THE TANNING&

BEAUTY CLINIC

PICCOLINO

CAF

FEN

ER

OP

AN

AS

ON

ICS

TO

RE

HARTLEYS

CA

FF

ET

TE

RIA

CAFE

OFFICE

COFF SH

VACANT

OF

CLO

TH

ING

ADV CEN

ME

NS

WE

AR

VAC

TOURISTINFORMATION

VIS

ION

EX

PR

ES

S

CTN

HAIRDRESSING

STO

RE

FLORIST

BAN

K

SURVEYOR

EMP

AGY

BEAUTY SALON

VA

CA

NT

STO

RE

CAFE

PLA

CE

OF

WO

RS

HI P

STAT

HLTH&BEA

PLA

CE

OF

WO

RS

HIP

JWLR

ST

OR

E

TROPH&ENGRAV

JEWELLER

LAD

IES

WE

AR HAIRDRESSING

HALL

ART

CRAFT

BAR

&RES

TAU

RANT

PUBLIC HOUSE

CO

FFE

ES

HO

P

LAD

IES

WE

AR

BANK

OPTICIAN

HAIR

ITAL

IAN

RES

T

HEALTH FOOD

BAN

K

THEATRE

PU

BLI

CH

OU

SE

LAD

IES

&M

EN

SW

EA

R

GO

VE

RN

ME

NT

BU

ILD

ING

HLT

H&B

EA

PUBL

ICH

OU

SE

BU

ILD

ING

SO

CIE

TY

HA

IR

BAR & RESTAURANT

JWLR

JWLR

CHARITY SHOP

BU

ILD

ING

SO

CIE

TY

BANK

CLOTHING

VA

RIE

TY

ST

OR

E

SH

OE

S

BU

ILD

ING

SO

CIE

TY

VACANT

BAKER

WEDSERV

HAIR

S/WBAR

HEALTHFD

LACCESS

LACCESS

CO

FF

EE

SH

OP

TR

AV

EL

AG

EN

T

ITALIAN RESTAURANT

SH

OE

S

BANK

CH

EMIS

T

CLO

ALT

BO

OK

S

HEAL

THFO

OD

VACANT BANK

TE

LEP

HO

NE

S

CLO

TH

ING

SA

ND

WIC

HB

AR

COFFEESHOP

HOTEL

VACANT & UNDER CONSTRUCTION

BS

S/W

BA

R

BA

KE

R

STORE

VA

CA

NT

OT

HE

RB

UIL

DIN

G

TR

AV

EL

AG

EN

T

SH

OE

S

INFO

C

OFF

ICE

CORDIN

GS

SH

OE

S

FURNITURE

OP

TIC

IAN

S/W

BA

R

S/W

BA

R

GIF

TS

BE

TO

FF

TOYS & GM

SU

PE

RM

AR

KE

T

T/ACTN

EMPLOYMENT

AGENCY

CH

AR

ITY

SH

OP

PU

BLI

CH

OU

SE

OP

T

DELI

HA

IRD

RE

SS

ING

CHILDRENS WEAR &

NURSERY GOODS

SPTS GDS

ELE

CT

RO

NIC

S

EM

PA

GY

S

D/C

BUILDING SOCIETY

SOLA

CA

FE

S/W BAR

HO

ME

EN

T

ITALIAN RES

CO

FFE

ES

HO

P

24- 2

6

22A

12

18- 2

0

97 - 101

28

42 - 48

22

35

45

14

39 - 41

23

16

39 - 41

35

34 - 36

8A

5 - 6

10

3

43

19 - 31

39

1

25

10 - 12

64

32

43 - 47

8

29- 3

1

37

49

4

2-8

47

9

7-

15

49

48

103 - 107

68

30

33

31 - 32

51- 5

5

41- 4

3

28

47

111 - 115

37

13 - 15

10

58- 64

65

27

25

7

33

292

109

38 - 40

12-1

6

22- 2

4

15-

17

2

25

1921

27

2018

14

19-

21

20

15

9

119

11

2

1

18

10 - 12

14

28-

37

18

5

4 - 6

24

8

24 - 26

117

20 - 28

17

16

45

25

7

10

6

42

15

23

36

2

38 - 4026

37-

39

19-2

1

48-50 524

44

31

28

11

20

9

19

17

30 - 34

9

11

8 20

8

49

42

60-6247

U

ORCHARD STREET

CH

AP

EL

WA

LK

NO

RF

OLK

RO

W

FARGATE

SU

RR

EY

ST

RE

ET

OR

CH

AR

DLA

NE

LEOPOLD STREET

BA

RK

ER

SP

OO

L

ORCHARD SQUARE PINSTONE STREET

PE

AC

EG

AR

DE

NS

BURGESSSTREET

CH

UR

CH

ST

RE

ET

(3R

ETA

ILF

LOO

RS

)

YA

RD

(EX

CE

PT

CY

CLE

S)

(EX

CE

PT

CY

CLE

S)

(PE

DE

ST

RIA

NS

ON

LY)

(2 RETAIL FLOORS)

(EXCEPT BUSES

CYCLES & TAXIS)

(2R

ET

FLR

S)

(2R

ET

FLO

OR

S)

&

(2R

ET

AIL

FLO

OR

S)

&

TR

AM M

ILLE

NN

IUM

SQ

UA

RE

FIRE EXITFIR

EE

XIT

(3R

ET

AIL

FLO

OR

S)

&

PU

BLI

CG

AR

DE

NS

WINTER GARDENS

(BU

SE

S&

AC

CE

SS

ON

LY)

(EXCEPT CYCLES)

FLO

(2RET

AILFL

OO

RS)

(2R

ETAI

LFL

OO

RS)

PU

BLI

C

GA

RD

EN

S

SE

RV

ICE

YA

RD

PO

OL

SQ

UA

RE

(2R

ETA

ILFL

OO

RS

)

(2 RETAIL FLOORS)

)

CLO

SED

ENT

EN

TR

AN

CE

ENTRANCE

EN

TRA

NC

E

ENTRANCE

EN

TRA

NC

E

ENT

ENT

ENT

ENT

ENT

EN

EN

TR

AN

CE

EN

TRA

NC

E

ENT

ENTRANCE

EN

T

EN

TR

AN

CE

ENTRANCE

EN

TR

AN

CE

EN

T

EN

TRA

NC

E

37

21

33

11

45

66

23

13

22

29

1

SMITH & JONES

(PEDESTRIANS EXCEPT ACCESS 6.00PM - 10.00AM)

ENTRANCE

CARMEL HOUSE – H&M, HSBC, FOOT LOCKER AND 3 STORE

SituationCarmel House occupies a 100% prime location at the southern end of Fargate.

Occupiers immediately adjacent to the property include Republic, River Island, New

Look, Next and WH Smith.

Prime Fargate benefits from significant footfall; the month of July 2011 had

1,234,000 shoppers (Sheffield City Council).

DescriptionThe property is an attractive and prominent multi-let retail parade behind a listed

façade. The parade was developed approximately 5 years ago and provides

excellent modern, well configured, retail accommodation.

Unit 2 provides excellent large retail floor plates with sales accommodation over

ground, first and second floors linked by escalators and sales lift.

Unit 3 provides a flagship retail unit with sales lift and escalator providing access

to basement sales accommodation.

Units 1 and 4 provide well configured ground floor retail units.

The property provides the approximate areas below:

Address Tenant ITZAGroundsq ft

Basement (assumed ancillary)

sq ft

Firstsq ft

Second(assumed ancillary)

sq ft

Totalsq ft

Unit 1 3 Store 637 1,050 - - - 1,050

Unit 2 H&M Hennes 1,772 4,318 - 9,1954,008(4,008)

21,530

Unit 3 HSBC 1,174 2,7145,000(2,686)

- - 10,400

Unit 4 Foot Locker 544 704 899 - - 1,603

PRIME LONG INCOME RETAIL INVESTMENT

TenureFreehold.

Pepper Alley (outlined in blue on the Goad plan) which runs to the rear of the

property is held on a leasehold basis for a term of 150 years from 13/12/2006 at a

peppercorn rent. An electricity substation in Pepper Alley is held on a leasehold

basis for a term of 125 years from 13/12/2006 at £1000 per annum.

TenanciesThe property is let on FRI leases on the following basis:

Unit TenantStartDate

New RentReview ToB Expiry

UXTyears

%Income

Passingrent pa

PassingZone £ psf Comments

Unit 1Hutchinson 3G (UK)t/a 3 Store

24/06/2006 24/06/2011 24/06/2016 23/06/2021 9.8 12% £160,000 £240Devaluation assumes 5% forreturn frontage.

Unit 2 H&M Hennes Ltd 24/06/2006 24/06/2011 - 23/06/2026 14.8 44% £607,500 £211Devaluation assumes -5%discount for quantum.

Unit 3 HSBC Bank Plc 24/06/2006 24/06/2011 – 23/06/2021 9.8 34% £470,000 £255Devaluation assumes 5%premium for A2 user.

Unit 4Freedom Sportslinet/a Foot Locker

24/06/2006 24/06/2011 23/06/2016 23/06/2021 9.8 10% £137,500 £238 .

TOTAL 12.0 100% £1,375.000

CARMEL HOUSE – H&M, HSBC, FOOT LOCKER AND 3 STORE

CovenantsH&M Hennes Limited H&M Hennes & Mauritz AB is a Swedish retail clothing company. Established in

1947, H&M has grown into a truly global fashion brand with more than 2,200

stores in 40 different countries throughout 4 continents. In the UK, H&M has

192 stores. Today, H&M is recognised as one of the most successful global

retail fashion brands.

The last 3 reported annual accounts for H&M Hennes Limited are below:

Freedom Sportsline Limited

Freedom Sportsline Ltd’s parent company is Foot Locker UK Ltd with the ultimate

parent company being the American retailer Foot Locker Inc. Foot Locker is one

the world’s leading retailers in sports footwear and has been established since

1974. They operate out of over 3,400 retail stores in 21 countries throughout

North America, Europe and Australia. In the UK there are 70 Footlocker shops.

The last 3 reported annual accounts for Freedom Sportline Limited are below:

HSBC Bank Plc

HSBC is one of the largest banking and financial services in the world. With

their headquarters in London, HSBC’s international network has around 7,500

offices in 87 countries across Europe, the Asian pacific region, North, Central and

South America, the Middle East and Africa. The business dates back to 1836.

The last 3 reported annual accounts for HSBC Bank Plc are below:

Hutchinson 3G UK Ltd

3 Store is part of the Three brand which is owned by Hutchinson Whampoa

(HWL). HWL is one of the largest companies listed on the Hong Kong Stock

Exchange and a Fortune 500 Company, with a turnover of approximately HKD 326

billion. It is an international corporate employing 240,000 people and operating a

diverse array of holdings including telecommunications operations branded Three.

Three own 9 3G licences globally including the UK. In the UK Three has the

largest 3G network.

The last 3 reported accounts for Hutchinson 3G UK Ltd are below:

30/11/2009(£,000s)

30/11/2008(£,000s)

30/11/2007(£,000s)

Turnover £565,888 £524,530 £527,534

Pre-Tax Profit £9,866 £10,564 £58,936

Net Worth £122,300 £104,220 £53,506

31/12/2009(£,000s)

31/12/2008(£,000s)

31/12/2007(£,000s)

Turnover £76,083 £78,752 £78,686

Pre-Tax Profit £2,076 -£1,067 £3,423

Net Worth £17,928 £16,682 £30,086

31/12/2010(£,000s)

31/12/2009(£,000s)

31/12/2008(£,000s)

Turnover £4,011,000 £4,014,000 £4,366,000

Pre-Tax Profit £32,357,000 £28,428,000 £20,661,000

Net Worth £21,214,000 £16,588,000 £8,143,000

31/12/2009(£,000s)

31/12/2008(£,000s)

31/12/2007(£,000s)

Turnover £1,504,129 £1,493,218 £1,268,284

Net Profit (loss) (£361,979) (£151,892) (£790,913)

Total Assets £6,137,000 £6,731,628 £6,702,693

Hugo PrinceT: 020 7182 2794F: 020 7491 4921hugo.prince@cbre.com

Holly RichardsonT: 020 7182 2426F: 020 7491 4921holly.richardson@cbre.com

CB Richard EllisHenrietta HouseHenrietta PlaceLondon W1G 0NB

T: 020 7182 2000F: 020 7182 2001

For further information or to arrange viewings please contact:

DISCLAIMER: CB RICHARD ELLISImportant notice relating to the Misrepresentation Act 1967 and the Property Misdescriptions Act 1991:

CB Richard Ellis Limited for itself and the vendor as agents for the vendor give notice that:1. We provide the information contained in these particulars for guidance to intending purchasers, licensees or any other third parties and they are for your general information only and will be used at your own risk. 2. We will use all reasonable endeavours to ensure the accuracy of information, however, we do not guarantee orwarrant the accuracy or completeness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties) and do not accept any liability for any errors or omission including any inaccuracies or typographical errors. 3. Any interested purchasers, licenseesor any third parties should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and specific details in the particulars are correct and accurate especially in relation to floor areas and other measurements through inspection or other means, as appropriate,and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject matter of these particulars. 4. We have not made any investigations or otherwise of any issues concerning pollution and potential land, building, air orwater contamination. Prospective purchasers, licensees or any third parties must undertake their own enquiries and satisfy themselves in this regard. 5. Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

SUBJECT TO CONTRACT CB Richard Ellis, September 2011

a© Design & Print: Barbican Studio 020 7796 2121

VATIt is anticipated that the sale be treated as the transfer of a going concern (TOGC).

ProposalWe are instructed to seek offers for the Freehold investment in excess of

£22,600,000 (Twenty Two Million, Six Hundred Thousand Pounds), Subject

to Contract and exclusive of VAT, which reflects a Net Initial Yield of 5.75%,

assuming purchaser’s costs of 5.8%.