Prime Car Showroom Investment

In excess of 10.75 years unexpired

Secure income - Peugeot Motor Company Plc

Rent Review in Oct 2015

£5,575,000, subject to contract

Net initial yield 7.0%

www.singerviellesales.com

Derby is located approximately 206 km (129 miles) north west of Central London, 56 km (35 miles) north east of Birmingham and 21 km (13 miles) west of Nottingham.

The city benefits from good road communications being situated approximately 11 km (7 miles) west of Junction 25 of the M1 Motorway, accessed via the A52. The city

is also served via the A50 dual carriageway approximately 6 km (4 miles) to the south which provides direct access to the M6 Motorway. In addition, the city is connected

to the national railway network with a fastest journey time of 1 hour 25 minutes to London St Pancras. East Midlands Airport is situated approximately 14 km (9 miles)

south east of the city centre.

The property occupies a highly prominent position fronting the Pentagon Island roundabout which is the main junction of the A52 dual carriageway. The A52 (Brian

Clough Way) is the principal arterial route into Derby from Junction 25 of the M1 Motorway which is 11 km (7 miles) to the east. Derby city centre is approximately 1.6

km (1 mile) to the west and Derby railway station is approximately 1.6 km (1 mile) to the south.

The property occupies a prime position within Derby’s ‘motor alley’ which lies along the A52 and also the A61 (Sir Frank Whittle Road) which is immediately to the north.

Brands represented in close proximity include Mercedes Benz, Ford, Jaguar, Vauxhall, Aston Martin, BMW, Mini, Nissan, Citroen and Volvo.

The property itself is accessed via Chequers Road. The adjacent properties comprise retail warehousing and car showrooms with occupiers including Kwik Fit, Texaco

and Europcar. There are also industrial uses at the rear of the property, further away from the frontage to the main arterial roads.

The property comprises a detached car dealership which was refurbished by

the tenant in 2014.

Internally, the property provides a car showroom, offices, a customer hand

over bay, an extensive 12 bay workshop with MOT bay, parts storage and

valet bays.

Externally, the property benefits from a total of 156 parking spaces comprising

38 premium display spaces fronting the A52 and Pentagon Roundabout, a

further 23 display spaces and 95 other parking spaces.

The property has been fitted out to a high standard in accordance with

Peugeot’s usual corporate style.

We are advised the property currently provides the following accommodation;

Sq M Sq Ft

Ground Floor Showroom 472.41 5,085

Workshop 560.00 6,028

Offices 188.50 2,029

Bodyshop 299.89 3,228

Parts 492.29 5,299

Ancillary 62.25 670

Hand Over Bay 34.65 373

Valet 39.30 423

Ground Floor Total 2,149.29 23,135

First Floor Offices 182.09 1,960

Ancillary 88.44 952

First Floor Total 270.53 2,912

Total GIA 2,419.82 26,047

Parking Prime Display 38

Display Parking 23

Other Parking 95

Total 156

We estimate the site area to be approximately 0.72 hectares (1.78 acres).

Freehold.

The property is let to Peugeot Motor Company Plc,

on effectively full repairing and insuring terms, for

30 years from 30th October 1995, expiring 29th

October 2025 (over 10.75 years unexpired). The

current passing rent is £412,888 per annum,

reflecting a rate of £170.63 per sq m (£15.85 per

sq ft overall and £156.10 per sq m (£14.50 per sq

ft) based upon the assumed area at rent review.

The lease is subject to a Schedule of Condition.

The lease benefits from 5 yearly rent reviews, the

next being on 30th October 2015. The rent is

reviewed to prime retail warehouse rents assuming

the following Notional Premises:

A prime non-food retail warehouse property of

no less than 2,322 sq m (25,000 sq ft)

A minimum of 10 years unexpired lease term

The property is located within a high quality

retail park within a five mile radius of Derby

Cathedral

The property is constructed within three years

of the review date

For the purposes of the rent review the subject

premises have a Gross Internal Area of 2,645 sq m

(28,475 sq ft).

The rent review provisions have resulted in a rental

increase at each previous rent review, with the

exception of 2010.

The property is occupied by Robins & Day, a wholly

owned subsidiary of Peugeot Motor Company Plc

who exclusively holds the Peugeot franchise.

For the year ending 31st December 2013, Peugeot Motor

Company Plc (Co. No. 00148545) reported:

Turnover £1,331,515,000

Pre-Tax Profits £1,559,000

Shareholders' Funds £27,397,000

The principal activity of the company is the distribution and sale

of Peugeot cars, Light Commercial Vehicles and replacement

parts in the United Kingdom. For the year ending December

2013, Peugeot’s new car registration rose by 6.0% to 105,435

vehicles, achieving a market share of 4.7%. In July 2014

Peugeot launched the new 108 model which received over

5,000 orders in the first three months, exceeding expectations.

In October 104 two further models were released, the 308 GT

and the 308 Sportium.

The ultimate parent undertaking and controlling party is PSA Peugeot Citroen Group, incorporated in France. PSA Peugeot Citroen Group is the second largest car maker

in Europe with 11.9% of the market and is the leader in light commercial vehicles with 20.7% of the market. With 2,819,000 vehicles sold worldwide (58% of which in

Europe), operations in 160 countries and 195,000 employees worldwide, the Group has Revenues of €54.1 million. In 2014 the French Government and China’s Dongfeng

Motors each invested approximately £660 million in return for 14 percent stakes in Peugeot.

In the third quarter of 2014, Peugeot reported worldwide sales up 5.4%, driven by strong increases in China (+44.4%) and Europe (+7%). The European market expanded

by 5.8% over the period, with the United Kingdom experiencing strong growth (+7.6%). Group revenues for the quarter totalled €12,296 million. For further information

see www.psa-peugeot-citroen.com.

The property is occupied by Robins & Day, Peugeot’s largest dealer group with 34 locations across the United Kingdom. The group was founded in 1913 and in 1970

became a wholly owned subsidiary of Peugeot Motor Company Plc and now exclusively holds the Peugeot franchise. For further information see

http://www.robinsandday.co.uk/derby.

The property has been registered for VAT. It is anticipated the sale will be treated as a Transfer of a Going Concern (TOGC).

The current rent of £412,888 per annum reflects a rate of £170.63 per sq m / £15.85 per sq ft overall and £156.10 per sq m / £14.50 per sq ft based upon the assumed

area at rent review.

The rent is reviewed to prime non-food retail warehouse rents of no less than 2,322 sq m (25,000 sq ft) within 5 miles of Derby Cathedral.

The Kingsway Retail Park is considered the prime retail warehouse park for Derby. Located approximately 4.8 km (3 miles) west of the subject property, the scheme

totals 13,006 sq m (140,000 sq ft) with Open A1 and bulky goods consent. Occupiers on the park include TK Maxx, Marks & Spencer, Argos, Halfords, Pets at Home,

Costa, Greggs, Next and Boots. The only vacant unit on the park totals approximately 650 sq m (7,500 sq ft) and is available at a quoting rent of £296 per sq m (£27.50

per sq ft) which we are advised is a discounted rent due to the property being set back and less prominent than the other units. We understand Smyths Toys acquired

a 1,393 sq m (15,000 sq ft) unit in July 2013 for a 15 year term, subject to a break at year 11 with 9 months’ rent free at £253 per sq m (£23.50 per sq ft). In addition,

Hobbeycraft acquired a 836 sq m (9,000 sq ft) unit for a term of 15 years from June 2013, subject to a break at year 10, at a headline rent of £307 per sq m (£28.50 per

sq ft).

The Wyvern Retail Park is located approximately 2.4 km (1.5 miles) south-east of the subject property. In December 2014 Halfords signed a new reversionary 10 year

lease to commence in September 2015 on a 1,389 sq m (14,950 sq ft) unit subject to 12 months’ rent free at a rent of £183 per sq m (£17.00 per sq ft).

In January 2015 the Society of Motor Manufacturers and Traders announced that new UK car sales reached a 10-year high in 2014, with a total of 2.47 million new

cars registered last year, up 9% on 2013 and the best annual performance since 2004. As a result, the United Kingdom has retained its ranking as the second largest

market in the EU for new car sales, after Germany. It is anticipated that the new car market will top 2.5 million in 2015, surpassing pre-recession levels. Britain’s car

industry now turns over £64 billion a year, directly employing more than 160,000 people with a further 770,000 jobs supported across the wider automotive industry.

We are aware of the following recent car showroom investments;

• Volkswagen Group UK Limited, Tewkesbury Road, Cheltenham comprising a car dealership built in the 1980’s totalling 1564 sq m (16,837 sq ft) with approximately

10 years unexpired at a passing rent equating to £15.12 per sq ft overall. The lease provides for 5 yearly open market rent reviews. We understand the freehold interest

was sold in December 2014 for £3.95 million reflecting a net initial yield of 6.1%.

• Invictus Portfolio, comprising four purpose-built freehold car showrooms located in North London, Birmingham, Camberley and Stockport all let to Volkswagen

Group UK Limited with an average weighted unexpired lease term of 13.49 years with passing rents equating to between £11.11 per sq ft and £24.11 per sq ft. The

price paid in December 2014 was £15.83 million reflecting a net initial yield of 6.15%.

• Honda, Chester Road, Manchester, comprising a car dealership built in 2012 totalling 1,879 sq m (20,224 sq ft) with approximately 16.5 years unexpired. The

property is let to Honda Motor Europe Limited and the lease is subject to 5 yearly upward only rent reviews with a minimum uplift based on 2.5% per annum

compounded. The passing rent equates to £14.25 per sq ft. We understand the freehold interest was sold in November 2014 for £5.5 million reflecting a net initial

yield of 4.9%.

1. An opportunity to acquire a prime car showroom investment;

2. Approximately 10.75 years unexpired lease term;

3. The property provides secure income – let to Peugeot Motor Company Plc;

4. Passing rent £156.10 per sq m / £14.50 per sq ft;

5. Upcoming rent review in November 2015, reviewed to prime non-food retail

warehouse rents;

6. The property is situated in a highly prominent and strategic location;

A purchase at the asking price will provide an investor with an attractive net

initial yield.

Singer Vielle Neil Singer neil@singervielle.co.uk 94-96 Wigmore Street Dale Henry dale@singervielle.co.uk London W1U 3RF Richard Wolfryd richard@singervielle.co.uk Tel: +44 (0) 207 935 7200

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

Misrepresentation Act 1967 Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract

2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property. 4. All maps are for identification purposes only and should not be relied upon for accuracy. 5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Property Misdescriptions Act 1991 These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment. Concerning the Properties listed and/or appearing on the Site: 1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Properties on the Site. 2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating to any Property listed on this Site or if any Property has been withdrawn from sale or lease nor shall we be responsible for any inaccurate dimensions of any Properties or price listed. 3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or listed on this Site. Such enquiries, purchase or leasing can only be made and permitted strictly subject to the terms and conditions set out below. 4. We do not accept responsibility or liability for the completeness or accuracy of information appearing on this Site which is provided by the Vendors or Lessors of the Property concerned who are solely responsible for such information. 5. Whilst we believe that the Properties listed are available for purchase or lease we make no guarantee that this is the case or that they have not been withdrawn by the Vendor or Lessor of the same. All Properties appearing or listed on the Site are subject to changes, errors or omissions. We have not verified the accuracy of the information relating to the Properties or any dimensions which have been given by the Vendors or Lessors. 6. All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.

We are instructed to seek offers in the region of £5,575,000 (Five

Million, Five Hundred and Seventy Five Thousand Pounds), subject to

contract, reflecting a net initial yield of 7.0%.