The property is let in its entirety to McLagan Investments Limited, guaranteed by Asda Group Limited (formerly Asda Group Plc), for a term of 35 years from 25th December 1991 and expiring on 24th December 2026 on full repairing and insuring terms. The unexpired term is therefore approximately 15.5 years.

The lease is subject to upward only rent reviews every five years, the next being due on 25th December 2011. The rent at review is calculated to the higher of:

(i) The passing rent; (ii) Therentalvalueoftheactualunit; (iii) The rental value of a standard building of 50,000 sq ft x 6.73

The assumed area at rent review is 31,262 sq m (336,500 sq ft). The current rent passing is £1,430,000 per annum equating to £4.25 per sq ft. A copy of the lease is available upon request.

Recent activity in the large industrial, distribution and logistics market has been high, with take-up across the UK reaching circa 25 million sq ft during 2010, making it one of the most active years recorded.

Demand has been predominantly driven by food, fashion and online retailers looking to establish strategic centres close to strong transport networks.

The increased take up during 2010, together with the recent reduction in speculative development, is likely to lead to increased demand throughout 2011. There is a general lack of existing good quality and well located stock in excess of 120,000 sq ft. This is particularly apparent for existing centres that have cross dock functionality.

We are of the opinion that the estimated rental value of the subject property is £1,514,000 pa, reflecting £4.50 per sq ft.

We highlight below a number of relevant comparable transactions in both the distribution centre and standard industrial markets: