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Motor retail investMent

Fife Motor VillageDUnFerMline KY11 7eG

HIGHLIGHTS

Prominent location with good accessibility to M90 motorway, A92 dual carriageway, and A907.

Modern buildings comprising 56,946 sq ft (5,290 sq m) with extensive parking and good road frontage on a 6.87 acres (2.78 hectares).

Rental Income of £408,687 per annum from 7 tenants

Stronganddiversetenantprofile

4 car dealership tenants in the top 30 franchised dealer groups in the UK representing 25% of the new car sales market.

Immediate and medium term asset management opportunities.

Offers in excess of £4,828,500 for the Feuhold interest, subject to contract and exclusive of VAT. This would provide the purchaser with a net initial yield of 8.00% after purchaser’s costs of 5.8%.

ERV £435,000 by end of 2017. Projected Reversionary Yield 8.52% NIY

Fife Motor Village

Dunfermline

Motor Retail Investment

LocaTIon

Dunfermline is a large Edinburgh commuter town with good road communications with nearby roads including the A907 which meets the M90 and A92 to the east of the town at the Halbeath Interchange. This connects the town to Perth (25 miles to the north), Edinburgh (18 miles to the south), and Kirkcaldy (12 miles to the east). Edinburgh Airport is some 13 miles south of Dunfermline.

Dunfermline has a resident population of 39,229 (Census 2011) making the town the second largest settlement in Fife county. Fife has a resident population of 349,429 (Census 2011), the third largest authority by population in Scotland. Dunfermline is a popular market town for tourists and local shopping. Major facilities at Dunfermline include Carnegie Drive and Halbeath Retail Parks where tenants include Homebase, B&M, Argos, Pets at Home, Halfords, B&Q, Matalan, Farmfoods, and Dreams. There is also Kingsgate Shopping Centre where anchor tenants are Debenhams, and Marks & Spencer.

SITUaTIon

The property is located to the east of Dunfermline town centre in a prominent position at the Halbeath Interchange, where the M90 motorway, A92 and A907 meet. The site is located fronting the Abercromby Court dual carriageway.

The site is opposite the Fife Leisure Park, with major occupiers including; Odeon cinema, Bannatynes Health & Fitness Club, Carlton Bingo, Bowlplex, Premier Inn, KFC, MacDonalds, Frankie & Bennys, Costa Coffee, and Bella Italia. The property is also located just south of the Halbeath Park & Ride facility. This is a new facility that opened in November 2013 and provides a bus park & ride scheme from the west of Fife to Edinburgh and Glasgow as well as a high frequency link to Dunfermline town centre.

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SANDPIPER DR

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CROSSGATES

M90

B981

B9 2 5

M90

HALBEATH

A92

A92A907

J3

J3

HALBEATH INTERCHANGE

FIFE LEISURE PARK

FIFEMOTOR VILLAGE

HALBEATH RETAIL PARK

LYNEBANK ROUNDABOUT

M80

M9

M9

M90

M8M80

M73

M74

A77

A8

A811

A71

A71

A702

A

A1

A92

A91A9

A91

A84

A703

A721A73

A985

A720

A73

A726

A725

Dalgety Bay

Kirkcaldy

Glenrothes

Galash

Carluke

Falkirk

Livingston

n

Dunfermline

Lanark

Peebles

Airdrie

Wishaw

ey

arnock

East Kilbride

Hamilton

Stirling

GLASGOW

EDINBURGH

8

6

4

01

5

1

2924

3

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23

54

1

4 5

11

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37 2

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27 26

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6

FIFEMOTOR VILLAGE

These plans are for identification purposes only. Their accuracy can in no way be guaranteed. Reproduced from the Ordnance Survey Map with permission of the Controller H.M.S.O Crown copyright reserved. Licence No. ES100018525

Fife Motor Village

Dunfermline

Motor Retail Investment

DEScRIPTIon

Thesitecontainssevenbuildings;fivecardealerships,aretailtradecentreunitanda truck servicing facility. There are four detached car dealerships to the west of the site, with the Toyota & Honda dealership and the other properties in a terraced unit towards the east of the site.

Externally the site provides for demised vehicle display spaces for each car dealership at the front of the units, which are visible from the dual carriageway, with furtherdemisedserviceandcarparkingareas to the rear.TheScrewfixunithaseleven spaces demised to the front, and the Man Truck and Bus unit has its own yard area to the front of the building.

Drain

DrainFootbridge

Tank

Unit 1

Volkswagen

Unit 2

Skoda

Unit 3

Renault

Unit 4

Peugeot

Unit 5 & 6

Toyota

& Honda

Unit 7

MAN

TrucksUnit 7A

Screwfix

Direct

Tank

EA 92

Sovereign House

El Sub Sta

Regency House

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2014. All rights reserved. Licence number 100022432. Plotted Scale - 1:1652

Fife Motor Village

Dunfermline

Motor Retail Investment

Tenure

Feuhold (Scottish equivalent of freehold)

TenancIeS

The buildings sit on a 6.87 acres (2.78 hectares) site and have a site density of 19%. All leases bar unit 7 subject to photographic schedules of condition. Rents due on Scottish Quarter Days: 28/02, 28/05, 28/08 and 28/11.

*Assumes extensions on Units 5 & 6 completed.

Fife Motor Village

Dunfermline

Motor Retail Investment

Demise Franchise Gia Floor area (sq ft) tenant rent rent psf lease start

rent review

lease expiry

BreakUnexpired

term*tenancy

income %Comments

Unit 1 Volkswagen 6.354 Specialist Cars (Aberdeen) Ltd. £60,000 £9.44 29/11/04 n/a 28/11/14 n/a 0.5 15%10 year lease extension at the passing rent is currently being progressed with the tenant.

Unit 2 Skoda 6.573Hamish Irvine & John Irvine t/a West End Garages

£55,402 £8.43 25/11/05 n/a 24/11/15 n/a 1.5 14%Reviews to RPI: on assignment from Graeme P Chatham (East) Ltd. with surety from Greame P Chatham Ltd.

Unit 3 Renault 6.428 Parks of Hamilton (Holdings) Ltd. £55,000 £8.56 01/05/12 01/05/17 30/04/22 01/05/17 2.9 13% Tenant only break on 6 months notice

Unit 4 Peugeot 6.944Vertu Motors (Property) Ltd. Guarantor: Vertu Motors plc.

£61,000 £8.78 09/09/10 09/09/15 08/09/25 09/09/20 6.3 15% Tenant only break on 12 months notice

Unit 5 & 6

Toyota & Honda

13.378Eastern Western Motor Group Ltd; Guarantor: Eastern Holdings Ltd.

£104,750 £7.83 23/07/03 n/a 22/07/15 22/07/20 6.1 26%

* Term agreed for reversionary lease for 9 years wef 22 July 2015 at £110,000 p.a subject to 6 months rent free. Review and mutual break on 22 July 2020. Subject to 15 months notice.

Unit 7 a n/a 3.789 ScrewfixDirectLtd. £19,535 £5.16 25/06/12 25/06/17 24/06/22 25/06/17 3.0 5%Schedule of Conditions covering roof only; tenant only break on 6 months notice.

Unit 7 MAN Trucks 13.480 Man Truck & Bus UK Ltd. £53,000 £3.93 05/04/00 05/04/15 04/04/20 n/a 5.8 13% Roof excluded from repairing obligation.

Totals 56,946 £408,687 4.1

covEnanT InfoRmaTIon

The schedule below details the D & B ratings of the various tenants:

UNIT TENANT D & B RATING TURNOVERPROFIT/LOSS

BEFORE TAxESTANGIBLE

NET wORTh yEAR END

1Specialist Cars (Aberdeen) Ltd.

3A 2 £203,513,157 £4,234,359 £7,063,390 31 December 2012

2Hamish Irvine and John Irvine t/a West End Garages Ltd.

n/a n/a n/a n/a n/a

3Parks of Hamilton (Holdings) Ltd.

5A 1 £347,091,459 £12,174,471 £39,784,568 31 March 2013

4

Vertu Motors (Property) Ltd.

Vertu Motors Plc. (Guarantor)

2A 1

5A 2

£4,578,000

£1,684,532,000

£861,000

£15,842,000

£3,679,000

£120,981,000

28 February 2013

28 February 2014

5 & 6

Eastern Western Motor Group

Eastern Holdings Ltd. (Guarantor)

3A 1

4A 1

£350,007,000

£345,471,000

£418,000

£776,000

£11,193,000

£22,630,000

31 December 2012

31 December 2012

7 a ScrewfixDirectLtd. 5A 1 £577,247,000 £34,223,000 £191,332,000 02 February 2013

7MAN Truck and Bus UK Ltd.

5A 1 £491,445,000 £7,759,000 86,824,000 31 December 2013

Fife Motor Village

Dunfermline

Motor Retail Investment

UnIT 1 – voLkSwaGEnSpecialist Cars is part of John Clark Motor Group, which is Scotland’s 4th largest motor trade groups with 21 outlets covering Aberdeen, Dundee, Dunfermline, Edinburgh, Kirkcaldy, Perth, and Cupar representing Audi, BMW, BMW Bikes, Jaguar, Land Rover, Mini, Nissan, Seat, Skoda, Volkswagen, and Volkswagen Commercial Vehicles. The Group ranked 23 in the Motor Trader Top 200 Dealer Groups by turnover (November 2013). Specialist Cars operate the Volkswagen franchise at Dunfermline Motor Park. Please see their website www.john-clark.co.uk for further details.

Volkswagen is one of the leading brands in the UK with the third largest market share of 8.69% 2014 year to date, and is regarded by dealers as one of the most valued franchises according to the Dealer Attitude Survey Winter 2013-2014.

UnIT 2 – SkoDawest End Garages is a family business established in 1987, and has 3 Skoda dealerships in Edinburgh, Dunfermline, and West Lothian. The lease of this unit was assigned in September 2012 from Graeme P. Chatham (East) Ltd to Hamish E. T. Irvine and John C. M. Irvine, trading as West End Garages. At the time of the assignment the landlord was provided with a personal net worth statement of circa £12,000,000 by the Tenant. For further details on West End Garages please see their website www.westendskoda.com

Skoda has been part of the Volkswagen Group since 1991. It has a current UK market share of 3.09% (2013: 2.74%) and has a 132 strong network in the UK. It is ranked by dealers above average as a valued franchise according to the Dealer Attitude Survey Winter 2013-2014.

UnIT 3 – REnaULTParks Motor Group is one of Scotland’s leading independent motor groups locations throughout Glasgow, Lanarkshire, Ayrshire, and Fife. The company is wholly owned by Douglas Park who founded the business in 1971. In addition to the motor vehicle retailing, it also operates 4 petrol forecourts, 2 bodyshop repair centres, andafast-fitoutletaswellasPark’sofHamilton,aluxurycoachbusiness.ParksMotorGroupisranked27inthe Motor Trader Top 200 Dealer Groups by turnover (November 2013). They operate Renault franchise out of Dunfermline. Please see their website www.parks.uk.com for further details.

In the UK, the Renault brand incorporates both Renault and Dacia franchises which account for a market share of 3.48% 2014 year to date.

Fife Motor Village

Dunfermline

Motor Retail Investment

UnIT 4 – PEUGEoT

UnIT 5 – ToyoTa anD HonDa

UnIT 6 – ScREwfIx

UnIT 7 – man TRUck anD BUS

Vertu Motor Group is one of the fastest growing motor groups in the UK, and is currently ranked 8th in the Motor Trader Top 200 Dealer Groups by turnover (November 2013) with 108 sales outlets throughout the UK. Vertu trades as Bristol Street Motors in England and Macklin Motors in Scotland. They operate the Peugeot franchise from Dunfermline and have 9 other Peugeot dealerships nationally For further information please visit their website www.vertumotors.com

Peugeot has a market share of 4.51% 2014 year to date making it the 8th largest franchise in the UK. It is part of PSA Peugeot Citroen which is Europe’s 2nd largest car manufacturer. In the UK, their best-selling car is the Peugeot 208 which sold 23,294 units in 2013.

Eastern western Motor Group is Scotland’s second largest motor group and ranked 25 in the Motor Trader Top 200 Dealer Groups by turnover (November 2013). They have over 30 dealerships representing 20 franchises across Scotland and North East England. It is a privately owned group which was established back in 1927. Toyota and Honda are the franchises they operate out of Dunfermline. Please see their website www.easternwestern.co.uk for further details.

Toyota is the world’s biggest manufacturer and has two manufacturing plants in the UK in Derbyshire and Deeside. Toyota has the 9th largest market share out of a total of 47 franchises in the UK at 3.99% 2014 year to date.Honda has a 176 site network in the UK with a market share 2014 year to date of 2.37%.

Screwfix is the UK’s largest supplier of Trade Tools, Plumbing, Electrical, Bathrooms and Kitchens with 335 storesnationwide.ItisasubsidiaryofKingfisherPlc,Europe’sleadinghomeimprovementretailgroup,whichalso own B&Q.

MAN Truck and Bus is part of the MAN Nutzfahrzeuge Group, which is the largest subsidiary of the MANGroup.MANTruckandBusLtdhasitsheadofficesatSwindonandSandbach,andoffersarangeofcommercial vehicles, buses, coaches, and industrial engines throughout the UK.

Fife Motor Village

Dunfermline

Motor Retail Investment

fURTHER InfoRmaTIon

John KnightTel: 020 76297282john.knight@struttandparker.com

Tom higgsTel: 020 7318 4696tom.higgs@struttandparker.com

Bill BexsonTel: 0844 560 7525/ 07831 827442bbexson@automotive-property.com

Kristina SimpsonTel: 0844 560 7525/ 07585 705 336ksimpson@automotive-property.com

hEAD OFFICE 13 HILL STREET LONDON W1J 5LQTEL: +44 (0)20 7629 7282 FAX: +44 (0)20 7629 0387www.struttandparker.com

hEAD OFFICE Automotive Property Consultancy100 Pall Mall St JamesLondonSW1Y 5NQ

Notices Relating to Property Misrepresentation and Property Misdescriptions Act. Strutt & Parker LLP for themselves and for the Vendors of this property whose Agents they are, give notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unlessotherwisestated,allprices,rentsandotherchargesarequotedexclusiveofValueAddedTax(VAT).AnyintendingpurchasersortenantsmustsatisfythemselvesindependentlyastotheincidenceofVATinrespectofanytransaction;Allplant,machinery,equipment,servicesandfixtures&fittingsreferred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Strutt & Parker LLP has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of publication is June 2014.

EPc vaT PRoPoSaL

EPCs and recommendation reports for the individual units are available on request.

We understand that the properties have been elected for VAT.

We have been instructed to seek offers in excess of £4,828,500 for the Feuhold interest, subject to contract and exclusive of VAT. An acquisition at this level will provide the purchaser with a net initial yield of 8.00% after allowing for purchaser’s costs of 5.8%.

For further information or to arrange an inspection, please contact:

Fife Motor Village

Dunfermline

Motor Retail Investment