THE TALISMAN CENTRE, BICESTER, OX26 6HRWELL SECURED FREEHOLD MULTI LET INVESTMENT

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Investment Summary • Bicester has excellent communications located equidistant between London and Birmingham adjacent to

Junction 9 of the M40 motorway.

• The estate provides a mix of light industrial and offi ce accommodation.

• Key occupiers on the estate include The Secretary of State, NHS, Philips Electronics, Warburtons Limited

and Lyreco UK Limited.

• Good variety of units totalling 116,689 ft² ranging in size from 2,949 ft² to 17,265 ft².

• Well secured income with 30% of the current income provided by the undoubted covenants of The

Secretary of State and South Central Ambulance Service NHS Trust. 55% of the current income is secured

until June 2016.

• The average weighted lease length is 9.5 years to expiry and 6.8 years to break.

• The estate is fully let to 9 tenants on 14 leases with a current passing rent of £1,076,778 per annum.

• In the longer term there is the opportunity to explore the redevelopment/change of use potential for the

site, subject to planning.

We are instructed to seek offers in excess of £11.64 million (Eleven Million Six Hundred and Forty Thousand

Pounds), subject to contract and exclusive of VAT, for the benefi t of our client’s freehold interest. A purchase at

this level refl ects a net initial yield of 8.75%, allowing for purchaser’s costs of 5.725%.

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LOCATION

Bicester is situated in the heart of Oxfordshire approximately 67 miles north west of London, 55 miles south

east of Birmingham, 20 miles south west of Milton Keynes and 13 miles north of Oxford.

The town benefi ts from excellent road communications strategically located adjacent to the M40, served by

Junction 9 approximately 2 miles away. The M40 provides direct access to Birmingham to the north west

and London to the south east where it links with Junction 16 of the M25 London Orbital Motorway. The A34

and A41, the two main arterial routes south out of Bicester, lead to Oxford, the M4 and the M3 to the south

west and Aylesbury, the M25 and the M1 to the south east. The area is also connected by the A421 providing

direct access to Milton Keynes and Junction 13 of the M1 to the north east. The town is therefore well served

to access the wider national motorway network.

Rail communications to Bicester are excellent with the town being served by two stations, Bicester Town

and Bicester North. Bicester North station provides a direct and frequent service to London Marylebone and

Birmingham Moor Street with fastest journey times of 55 minutes and 1 hour 6 minutes respectively. Bicester

Town provides a direct service to Oxford. The town is also closely situated to two major London Airports with

London Luton approximately 33 miles to the east and London Heathrow approximately 42 miles to the south

east.

Bicester comprises a prosperous market town and has expanded and enjoyed signifi cant investment,

particularly in terms of the retail sector. Bicester Village, one of England’s leading outlet shopping destination,

comprises over 90 stores to include Burberry, Polo Ralph Lauren, Dior, Molton Brown and Karen Miller. The

town centre is also set for major regeneration work, to be undertaken by a 50:50 joint venture between

local developer Stockdale Land and Sainsbury’s, to provide a new supermarket, additional retail units, the

extension of an existing retail mall, restaurants, additional car parking and a new bus station.

SITUATION

The property is situated approximately 1 mile to the south of Bicester town centre and is accessed from

London Road (B4100), which is the main arterial route through the heart of the town. The B4100 provides

direct access to the A41 to the south and the A4095 to the north, which forms part of the inner ring road

around Bicester town centre. The property is bounded to the north by Bicester Town railway station, to the

west by the railway line with Bicester Village beyond and to the south by the A41. The immediate surrounding

area to the east is predominantly residential suggesting the possibility of enhanced value uses in the future.

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DESCRIPTION

The property comprises a mixed use industrial and offi ce estate constructed in the early 1990’s. The industrial

accommodation is situated to the south of the main access road with the offi ce buildings to the north.

The industrial accommodation comprises a terrace of fi ve units and extends to 62,074 ft² GIA with unit sizes

varying between 8,725ft² GIA and 17,265 ft² GIA. The units are generally of steel portal frame construction

comprising a combination of full height cavity brick and blockwork and profi led metal sheeting under a shallow

pitched roof, clad in profi led metal sheeting and incorporating translucent roof lights. The units provide integral

two-storey offi ce accommodation to the front and benefi t from the following specifi cation:-

• Eaves height of 5.50 metres (18 ft).

• Each unit has a roller shutter loading door providing access to a yard with separate car park area, with

the exception of Unit 1 which has the benefi t of an additional dock level loading door.

• Most of the units benefi t from fl uorescent lighting or sodium lamps and have either wall mounted

or free standing hot air gas blowers.

• Well specifi ed offi ce accommodation including carpeted fl oors, suspended ceilings incorporating

fl uorescent lighting, central heating, air conditioning system and male and female WC’s. A number of the

units benefi t from canteens.

The offi ce accommodation comprises eight buildings and extends to 54,536 ft² NIA with unit sizes varying

between 2,997 ft² NIA and 10,066 ft² NIA. The units comprise two-storey accommodation with brick and

block elevations fi nished in interlocking concrete tiles, below a pitched roof. The windows comprise timber

framed double glazing. Internally the accommodation is fi tted out to a good specifi cation to include:-

• Suspended ceilings with recessed fl uorescent lighting.

• Carpeted fl oors to the offi ce areas and vinyl fl oor fi nishes to the communal areas to include the male,

female and disabled WC’s.

• Some of the buildings comprise ground fl oor workshop accommodation.

• Units 9-10 benefi t from a shared fully automated passenger lift.

• Units 7-8 were originally built as two units but reconfi gured to provide fl exible, open plan

accommodation.

ACCOMMODATION

The industrial accommodation has been measured on a Gross Internal basis and the offi ce accommodation

on a Net Internal basis, in accordance with the RICS Code of Measuring Practice (6th Edition), and provides a

total of 116,689 ft² (10,840 m²). We refer you to the tenancy schedule for a breakdown of the areas.

The estate is situated on a roughly triangular shaped plot and is well confi gured. We estimate the site area to

be circa 2.9 hectares (7.1 acres), providing a site cover of approximately 38%.

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TENURE

Freehold.

TENANCIES

The property is fully let to 9 tenants on 14 leases in accordance with the tenancy schedule and produces a current passing rent of £1,076,778 per annum generally on effectively full repairing and insuring

terms. Rents range from £5.03 per ft2 to £7.03 per ft2 for the industrial accommodation and from £11.76 per ft2 to £13.57 per ft2 for the offi ce accommodation. A service charge is payable for the upkeep of

the common areas.

The average weighted lease length is 9.5 years to expiry and 6.8 years to break.

Unit Lease Name Area ft² Current Rent Rate Lease Start Next Lease Effective Comments

Rent / ft² Review Expiry Break

1 Warburtons Limited 12,597 £88,500 £7.03 24/06/1991 24/06/2011 23/06/2016

2 Covidien (UK) Commercial 11,670 £58,650 £5.03 02/02/2007 02/02/2012 01/02/2017 01/02/2012 (T) Fixed increase to £69,800 pa on 2 Feb 2010.

Limited

3 Lyreco UK Limited 11,817 £70,902 £6.00 28/04/2008 24/06/2013 27/04/2018 27/04/2013 (T) Schedule of Condition.

4 Ecolab Limited 8,725 £56,575 £6.48 29/09/1996 29/09/2011 23/06/2016

5 Ecolab Limited 17,265 £108,000 £6.26 29/09/1996 29/09/2011 23/06/2016

6 Philips Electronics UK Limited 10,066 £136,600 £13.57 24/06/1991 23/06/2011 23/06/2016 Offi ce - Area is NIA.

Sub-let to Clearview Traffi c Group Limited.

7 South Central Ambulance 8,676 £102,000 £11.76 01/05/1992 01/05/2012 31/01/2028 31/01/2023 (T) Offi ce - Areas are NIA.

Service NHS Trust A reversionary lease of Units 7 and 8 has been

entered into commencing on 24/12/16 until

8 South Central Ambulance 8,676 £102,000 £11.76 01/05/1992 01/05/2012 31/01/2028 31/01/2023 (T) 31/01/28. Initial rent of £209,000 pa

Service NHS Trust immediately subject to review and again in

June 2021. Subject to break option in Jan 2023.

9 Secretary of State for 2,997 £36,100 £12.05 12/09/2003 11/09/2013 Offi ce - Areas are NIA.

Communities & Local Deed of variation whilst Secretary of State is the

Government tenant, allowing tenant to reinstate insured

10 Secretary of State for 6,322 £78,400 £12.40 12/09/2003 11/09/2013 damage. Tenant’s repair covenant includes an

Communities & Local obligation to carry out works within fi rst 12

Government months of the term.

11 5,968 £80,568 £13.50 9 year term Year 5 Offi ce - Areas are NIA.

MEM Consumer Finance 28/11/2011 (T) Agreement for lease entered into subject to the

12A Limited 2,991 £40,378 £13.50 28/11/2008 25/12/2013 27/11/2017 & landlord undertaking the agreed works.

28/11/2014 (T) Unit 11 lease has not yet completed.

13 5,970 £80,595 £13.50 28/11/2008 25/12/2013 27/11/2017 Surety: CompuCredit Corporation.

12B Everitt Kerr & Co Associates 2,949 £37,500 £12.72 08/10/2003 07/10/2013 Offi ce - Area is NIA.

Limited Outside L&T Act 1954.

LAND Cherwell District Council 0 £10 01/04/1990 31/03/2040

ADJOINING

ELECTRICAL SSE Services plc 0 £0 21/02/1991 20/02/2116

SUB STATION

116,689 £1,076,778

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COVENANT STATUS

55% of the income is secured until June 2016.

11% of the income is let to the undoubted covenant of The Secretary of State. Other notable tenants include South Central Ambulance Service NHS Trust, which is part of the NHS and is in effect an undoubted

covenant, as it is in essence Government backed accounts for a further 19% of the income occupying two units on the estate. MEM Consumer Finance Limited, guaranteed by Compucredit Corporation who

also account for 19% of the income and occupy three units on the estate. Compucredit Corporation has a D&B rating of 5A3.

PROPERTY TENANT YEAR TO TURNOVER PRE-TAX PROFIT NET ASSET VALUE PASSING RENT AS ICC PAYMENT COMMENTS

(Company Number) £ 000’s (Loss) £ 000’s £ 000’s % INCOME SCORE

Unit 1 Warburtons Limited 2007 414,227 48,997 226,777 8% 77 B: Production and distribution of bakery

(00178711) 2006 373,112 43,291 168,465 66 products.

2005 321,852 49,120 156,268 66

Unit 2 Covidien (UK) Commercial 2007 133,169 9,124 11,824 5% 65 B: The distribution of surgical, medical and

Limited (03970512) 2006 125,287 8,660 5,758 66 continence care products.

2005 123,163 8,435 27,927 71

Unit 3 Lyreco UK Limited 2007 298,449 34,074 51,875 7% 86 B: The distribution of offi ce products.

(00442696) 2006 270,834 27,225 28,037 82

2005 250,786 20,868 32,134 81

Units Ecolab Limited 2007 95,449 830 41,525 15% 88 B: The manufacture and sale of hygiene

4 & 5 (00649192) 2006 88,886 813 3,854 78 products and the provision of related hygiene

2005 84,370 628 1,343 49 services.

Unit 6 Philips Electronics UK Limited 2007 812,800 33,100 296,700 13% 66 B: The manufacture and supply of electrical and

(00446897) 2006 682,200 65,900 319,500 89 electronic equipment.

2005 689,900 (15,600) 124,400 80

Units 11, MEM Consumer Finance Limited 2007 6,392 (357) (169) 19% 59 B: The provision of short term loans to

12A & 13 (04786727) 2006 1,523 342 177 43 individuals.

2005 497 50 64 70

Units 11, Surety - Compucredit Corporation 2008 480,000 (65,700) 459,800* B: Provides credit and related fi nancial services

12A & 13 2007 881,200 (15,200) 396,800* and products.

2006 681,800 61,400 451,200*

Unit 12B Everitt Kerr & Co Associates 2008 - - - 3% 55 B: The provision of chartered accountancy

Limited (03045903) 2007 - - - 63 services.

2006 - - - 54

Source: ICC B = Business

* Shareholder’s Funds

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SERVICE CHARGE

The budget for 2009 is estimated to be £0.59 per ft2 for the upkeep of the common areas. Full

information can be provided upon request.

VAT & CAPITAL ALLOWANCES

The property is VAT elected and therefore VAT will be payable on the purchase price.

The purchaser will enter into a section 198 agreement for £1, meaning the Capital Allowances

will be retained by the vendor.

PROPOSAL

We are instructed to seek offers in excess of £11.64 million (Eleven Million Six Hundred

and Forty Thousand Pounds) subject to contract and exclusive of VAT, for our client’s freehold

interest. A purchase at this level refl ects a net initial yield of 8.75%, allowing for purchaser’s costs

of 5.725%.

AREA PROFILE BY SECTOR

53%

47%INDUSTRIAL

OFFICE

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FURTHER INFORMATION

If you require any further information or wish to view the property please contact:

Charlie Divall Sam Fairbairn Philip Marsden

020 7087 5344 020 7087 5382 020 7087 5390

charles.divall@kingsturge.com sam.fairbairn@kingsturge.com philip.marsden@kingsturge.com

Crown Copyright 2007. All rights reserved. Promap licence number 100020449. King Sturge licence number 100017659.

This plan is published for the convenience of identifi cation only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details

contained herein is not guaranteed and for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or

representations and must satisfy themselves as to their accuracy. Neither King Sturge LLP 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. 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 or fulfi lling its intended function. Prospective tenants/purchasers should satisfy

themselves as to the fi tness of such equipment for their requirements.

Subject to Contract | Exclusive of VAT | April 2009

For further information in relation to other Investment sales from King Sturge, please log onto www.kingsturge.com

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