British Oak, High Road, Willenhall,West Midlands WV12 4JR

TESCOEXPRESSINVESTMENT

New Tesco Express store.

4,222 sqft unit with a 3 bedroom flat to first floor let on one overriding lease.

New 20 year lease to Tesco Stores Limited (tenant break at year 10).

Rent to be £47,000 per annum.

Practical completion anticipated to be September 2013.

5 yearly rent reviews on an RPI basis (collar of 1% and cap of 4%) per annum compounded.

Undoubted 5A1 covenant.

Proposal - £658,000 representing a net initial yield of 6.75%, after purchaser’s costs of 5.80%.

INVESTMENT SUMMARY

For indicative purposes only

LOCATIONWillenhall is a densely populated suburb in the West Midlands, located approximately 3.5 miles west of Walsall, 4 miles east of Wolverhampton and 14 miles north-west of Birmingham.

The town benefits from an excellent transport infrastructure due to its proximity to the A454 Black Country Route, which is one of the main arterial routes in the West Midlands and provides direct access to Junction 10 of the M6 motorway approximately 4 miles to the east and onwards to Walsall. Furthermore, the A454 provides direct access to Wolverhampton City Centre to the west.

The subject property lies on an extremely prominent site at the junction of High Road and Short Street. High Road is a very busy main road with significant passing trade and the surrounding area is made up of good quality modern housing.

DEVELOPMENTThe property will comprise a comprehensively refurbished and extended former public house on a large corner site which will provide a Tesco Express unit of 392.24 sq.m (4,222 sqft) to the ground floor and basement. The ground floor will total 3,023 sq.ft and basement 1,199 sq.ft. There is a self contained 3 bedroom flat at first floor level.

The site extends to 0.13 hectares (0.32 acres) and will provide 19 car spaces including 2 disabled spaces. Planning for the development was granted on 8th March 2013 and Practical Completion of the development is targeted to be mid September 2013The tenant has a right of access over an area to the rear of the property, which does not form part of the tenant’s demise, for the turning of delivery vehicles. This area is hatched green on the site plan.

TENANCYThe entire property edged red on the site plan is to be let on one overriding lease to Tesco Stores Limited on a 20 year FRI lease. There is a tenant only break option on expiry of the 10th year of the lease, subject to six months notice.

The initial rent is £47,000 per annum. The rent will increase 5 yearly on a compounded RPI basis. There will be a minimum collar to the reviews of 1% and a cap of 4% per annum. There is no rent free period granted and the tenant will pay rent from completion of the lease.*Based on conservative assumed annual 3% RPI growth of over the term of the lease the rent would increase as follows:

Years 6-10 - £54,486*Years 11-15 - £63,164*Years 16-20 - £73,224*

TENUREFreehold.

COVENANTTesco trade from approximately 2,200 stores and are the world’s third largest grocery chain and the largest in the UK. For the year ending February 2013 Tesco Stores Limited reported a turnover of in excess of £64 billion and a profit before tax in excess of £1.95 billion. They have a Dun & Bradstreet rating of 5A1 which represents a minimum risk of business failure.

PROPOSALWe are instructed to seek offers in excess of £658,000 (Six Hundred and Fifty Eight Thousand Pounds) which reflects a net initial yield of 6.75%, based on purchaser’s costs of 5.80%.

Assuming RPI growth of 3.0% per annum the return to an investor during the lease could increase to:

Years 6-10 - 7.83% Years 11-15 - 9.07%Years 16-20 - 10.52%

VATThe property has been elected for VAT however it is envisaged that the transaction will be treated as a TOGC.

EPCAn Energy Performance Certificate will be provided on completion of the development works.

British Oak, High Road, Willenhall, West Midlands WV12 4JRTESCO EXPRESSINVESTMENT

For further information or if you wish to arrange an inspection please contact:

Andrew Franck-SteierDD: 0121 513 0891M: 07798 647 640andrew.franck-steier@fspproperty.co.uk

Andrew PriceDD: 0121 513 0892M: 07798 656 360andrew.price@fspproperty.co.uk

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function.