Colney Fields Shopping ParkBarnet Road, London Colney, Junction 22, M25

Development Funding Opportunity

Colney Fields Shopping Park is located at Junction 22, M25 with excellent communications to the national motorway network.

1,558,123 population within 30 minutes drive.

Investment Summary

Colney Fields Shopping Park is located at Junction 22, M25 with excellent communications to the national motorway network.

The M1 (J6a) is located 6 km (4 miles) to the west, whilst Junction 1 of the A1(M) is located 4.5 km (3 miles) to the east.

Catchment population of over 1.5 million people within a 30 minute drive.

The surrounding population is extremely affluent with 39.6% categorized as AB against a GB average of 21.7%.

Open A1 non food planning permission, with no restriction on mezzanine floors.

Pre-let or under offer to Next, Borders Books, Sports World and Boots.

Long leasehold, 125 years from 4th January 2000 at a £1 per annum.

The development will form part of Colney Fields Shopping Park which, in time will measure at least 28,242 sq m (304,000 sq ft).

The development itself will measure approximately 5,408 sq m (58,212 sq ft) and have 290 (1:18.64 sq m / 1:200 sq ft) dedicated car spaces.

The remainder of the park is occupied by Sainsbury’s Supermarkets Ltd - 12,077 sq m (130,000 sq ft) and

Marks & Spencer Plc- 10,776 sq m (116,000 sq ft).

Pre-lettings have been agreed between £484 per sq m (£45.00 psf) and £568 per sq m (£52.80 psf).

Projected net income: £2,884,050 per annum.

Offers are invited to enter into a Forward Funding to Purchase the long leasehold interest at a price of £54.54 million

subject to contract and exclusive of VAT. After purchaser’s costs of 5.7625%, this reflects a net initial yield of 5.0%,

5.29% reversionary in 2009 and 5.22% equivalent yield.

LocationLondon Colney is situated at J22 of the M25, 4.5 km (3 miles)

south of St. Albans town centre, 33 km (22 miles) north of

Central London.

Watford, Hemel Hempstead, Hatfield, Welwyn Garden City and Radlett

all lie within a 15 km (10 mile) radius.

SituationColney Fields Shopping Park is located off the Bell roundabout (A1081)

at Junction 22 of the M25 to the south of London Colney. Access to

the park is via Barnet Road.

Opposite the development, Sainsbury’s occupy 12,077 sq m (130,000

sq ft) and Marks & Spencer occupy 10,776 sq m

(116,000 sq ft).

Between the development site and the existing stores are located

approximately (an additional) 1,250 car spaces.

Crown Copyright 2004 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only

AB C1

District Population

Home Ownership

Broxbourne

52.1%

87,054

79.8%

Hertsmere

63%

94,450

75.2%

St Albans

70.4%

129,005

77.1%

GB Average

51.1%

-

68.3%

DemographicsColney Fields falls within the administrative borough of St. Albans close to its

eastern boundary with Broxbourne and southern boundary with Hertsmere.

The catchment population (aged 16 and over) within a 10 minute drivetime

is 59,080, within 20 minutes it is 461,869 and within 30 minutes 1,558,123.

Class Groupings 2001Summarised below are salient demographic statistics for the

3 administrative areas taken from Focus.

(Source: Experian)

Not to Scale - For Identification Purposes Only

The DevelopmentThe development, currently under construction, will provide

approximately 5,408 sq m (58,212 sq ft) of open A1 non food retail

accommodation opposite the existing Sainsbury’s and Marks & Spencer

stores.

It is proposed to create 5 units ranging from 465 sq m (5,000 sq ft) to

1,858 sq m (20,000 sq ft) which are capable of subdivision and are

designed to accommodate a full mezzanine level.

The scheme will include 290 car spaces - 1:18.64 sq m (1:200 sq ft).

In addition, rights will be granted for customers to use any of the

remaining 1,250 car spaces although permanent rights will not be

granted. Servicing will be provided via a self contained service yard to

the rear of the units.

SpecificationThe proposed specification will include the following:

Steel portal frame construction, with a clear height to the

underside of the haunch of 7.5m (24.5 ft).

Floor loading 30.0 kN/sq m.

External elevations: combination of blockwork and composite

cladding panels.

Dedicated tenant signage areas to front and rear elevations.

Composite roof panel system.

Entrance feature.

Service yards finished in brushed concrete to take

a 9,000 kg axle load.

Planning PermissionThe site has Full Reserved Matters consent dated 3rd February 2004.

Outline consent was granted in May 1998 for "retail development

including garden centre within class A1, restaurants within class

A3 & hotel within class C1 of the Town and Country Planning

(Use classes) Order 1987 together with car parking, alterations to

existing car park layout, new access arrangements and landscaping".

A copy of the consents are available on request.

There are no restrictions on the installation of mezzanine floors,

however unit sizes are limited to between 450 sq m - 3,300 sq m

(4,843 sq ft - 35,521 sq ft).

TimingConstruction commenced in May 2004 with practical completion

scheduled for October 2004.

EnvironmentalThe site has undergone a full environmental investigation which

concludes:- "Contamination has not been identified on the eastern part of

the site and therefore remediation is not considered necessary in this area".

A copy of the full report is available on request.

The Development Team is as follows:Developer Ramheath Properties Ltd

(A wholly owned subsidiary

of J Sainsbury Plc)

Contractor Bowmer & Kirkland Ltd

Project Manager Cube Management Ltd

Architect CHQ Partnership Ltd

Quantity Surveyor Henry Riley & Sons Ltd

M&E Consultant Longcross Ltd

Structural Engineer Burks & Green & Partners Ltd

Highway Engineer Mayer Brown Ltd

Planning Supervisor PCM Ltd

Landscape Architect Arthur Amos

Planning Consultant Littman Robeson

Environmental Consultant RSA Geotechnics Ltd

Letting Agent Elkington & Partners

Solicitors Lawrence Graham

Unit

1

2

3

4

5

Tenant

Borders UK Ltd

Sports WorldInternational LtdHeld Back

Boots the Chemist

Next Group Plc

TOTAL

Size m sq (Sq ft)929

(10,000)

1,055 (11,356)

511 (5500)1,055

(11,356)1,858

(20,000)

Lease

15yrs

15yrs

-

15yrs

15yrs

Rent £ p.a. £ psf

£500,000 £50

£567,800 £50

£316,250 £57.50

£600,000 £52.83

£900,000 £45

£2,884,050

ERV £ p.a.£ psf

£530,000£53

£601,900£53

£316,250£57.50

£601,900£53

£1,000,000£50.00

£3,050,050

Comment

£100,000 Capital contribution. Rent free 48 weeks from access.Agreement to Lease signed.16 weeks rent free, under offer, solicitors instructed.

3 months rent free, under offer,solicitors instructed.3 months rent free. Agreement to Lease signed.

Site PlanThe development site comprises approximately 1.7 hectares

(4.2 acres). The whole of Colney Fields Shopping Park measures

approximately 11.96 hectares (29.6 acres).

TenureThe property is held on a 125 year lease from 4th January 2000

at one pound per annum (if demanded). The freeholder is

Sainsbury’s Supermarkets Ltd.

Covenant Status of Tenants

Unit

1

2

3

4

5

Tenant

Borders UK Ltd

Sports World

Held back

Boots the Chemist

Next Group Plc

Year ending

25/1/2003

28/4/2002

31/3/2003

1/2/2003

Turnover

£152m

£397m

£4.2bn

£2.2 bn

Pre Tax Profits (loss)

(£1.4m)

£46m

£386m

£301m

Net Worth

(£10.5m)

£81m

£700m

£244m

D & B Rating

N 3

5 A1

5 A1

5 A1

Tenancies & AccommodationTotal and anticipated net income amounts to £2,884,050 pa. All units are, or will be,

let on institutional leases including full repairing and insuring terms, subject to 5

yearly upward only rent reviews with 100% service charge recovery.

Terms certain will be for a minimum of 10 years.

It is proposed that the property will be pre-let on five leases as follows:

Retail Warehouse Standard Performance1993 - 2003

Market Standing Investments Annualised over the last:

Total Return (% pa) 1 Yr 3 Yrs 5 Yrs 10 Yrs

Retail Warehouses: All UK 16.4% 13.8% 13.5% 14.6%

Retail Warehouses: South East (excl. London) 17.6% 14.4% 14.4% 14.3%

All Retail 15.5% 11.6% 11.1% 11.4%

All Property 10.9% 9.1% 10.5% 10.6%

Income Return (% pa)

Retail Warehouses: All UK 6.4% 6.5% 6.5% 7.0%

Retail Warehouses: South East (excl. London) 6.6% 6.7% 6.7% 7.1%

All Retail 6.6% 6.5% 6.5% 6.8%

All Property 7.0% 6.9% 7.0% 7.4%

Capital Growth (% pa)

Retail Warehouses: All UK 10.0% 7.3% 7.0% 7.6%

Retail Warehouses: South East (excl. London) 11.0% 7.7% 7.7% 7.2%

All Retail 8.9% 5.1% 4.6% 4.6%

All Property 3.9% 2.2% 3.5% 3.2%

Retail Warehouse PerformanceThe South East Retail Warehouse sector has outperformed the All

UK Retail Warehouse sector and All Property sectors over 1, 3 and

5 years and only marginally failed to outperform the All UK Retail

Warehouse sector over 10 years. (Source: IPD)

(Source: IPD)

Shopping Park RentsListed opposite, on a national and regional level, is a schedule

showing the level of rents achieved on shopping parks.

Of particular note is Brookfield Retail Park in Cheshunt.

Out of Town Retailing Northern Home Counties

Pre-emption rightsSainsbury’s & Marks & Spencer plc have reciprocal pre-emption rights

over Colney Fields Shopping Park. As such this investment must be

offered to Marks & Spencer at full market value, prior to

a binding contract being entered into with the selected party.

To comply with the pre-emption arrangements a period of 2 months

from acceptance of an offer (or if later one month after any arbitrator

has made a determination of the market value) must be allowed for

prior to unconditional Exchange of Contracts. If Marks & Spencer

do not wish to purchase the investment then the pre-emption rights will

cease to have any further effect subject to exchange with the

selected party within 180 days following the expiration of the

relevant time periods mentioned above.

PriceOffers are invited to enter into a Forward Funding to Purchase the long

leasehold interest at a price of £54.54 million, subject to

contract, exclusive of VAT and net of purchaser’s costs at 5.7625%.

This reflects an initial yield of 5.0%, 5.29% reversionary in 2009 and

5.22% equivalent yield, based upon our ERV.

VATThe property will be elected for VAT.

Contact information

Richard Ashworth Arun Sibal James Welch

020 7355 0991 020 7355 0992 020 7355 0993

rashworth@aswprop.com asibal@aswprop.com jwelch@aswprop.com

Ashworth Sibal Welch

48 Charles Street

London W1J 5EN

T: 020 7355 0990

F: 020 7355 0999 C H A R T E R E D S U R V E Y O R S

Misrepresentation Act 1967Ashworth Sibal Welch (ASW) for themselves and for the vendors of this property whose agents they are give notice that:1. These particulars are a general outline only, for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract;2. ASW cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and therefore

prospective purchasers much not rely on them as statements of fact or representations and must satisfy themselves as to accuracy;3. ASW or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property;4. Rents and prices quoted may be subject to VAT in addition;5. ASW will not be liable in negligence or otherwise for any loss arising from the use of these particulars;6. No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn;7. ASW have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. May 2004

C H A R T E R E D S U R V E Y O R S