PRIME SOUTH EAST RETAIL INVESTMENTNEXT PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA

WELL SECURED 25 YEAR, INDEXED-LINKED INCOME STREAM

CRESSEX ISLAND

HIGHWYCOMBE

MONTAGUEVANS

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 2

INVESTMENT SUMMARYHigh Wycombe is an affluent south east town located approximately28 miles west of central London. The town has a primary catchment population of 223,000 (Promis).

Excellent location adjacent to Junction 4 of the M40 Motorway withan extensive frontage onto the A4010 John Hall Way, in closeproximity to a John Lewis Department store and Asda foodstore.

A high specification development comprising a destination NEXTFashion, Home and Garden superstore, totalling 71,819 sq ft grossfloor space arranged over three levels together with 6,296 sq ft ofexternal sales space and parking for 159 vehicles.

Freehold.

Unbroken 25 year FRI lease from practical completion let to Next Group plc with a surety from Next plc.

Commencing rent of £830,000 per annum, reflecting a low rental of£11.56 per sq ft overall.

5 yearly upwards only rent reviews to RPI, with a 1-4% pa compoundcollar and cap.

Next plc is an investment grade covenant and a constituent of theFTSE 100. In the financial year to January 2014, the company reported turnover of £3.74 billion and pre-tax profits of £695.2 million.

Our client is seeking offers on a forward commitment basis inexcess of £15,550,000 (Fifteen Million, Five Hundred and FiftyThousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level would provide a 5.00% NIY, assuming 6.60%purchase costs.

LOCATIONHigh Wycombe is an affluent South East town lying approximately 28 mileswest of Central London, 23 miles south east of Oxford and 15 miles north-west of Heathrow Airport.

The town benefits from excellent communications being situated just northof junctions 3 and 4 of the M40 motorway, which provides rapid links to central London, the M25 London orbital motorway and the Midlands.Additionally, the town is a popular London commuter satellite with fast trainservices to London Marylebone station offering a journey time of only 30minutes.

© Collins Bartholomew Limited 2013. All rights reserved. Plotted Scale - 1:208894

CATCHMENT & DEMOGRAPHICSHigh Wycombe has a large and affluent population, with the primary catchment estimated at 223,000 by Promis.

30.3% of the district population are classified within the most affluent ABsocial groups, compared to the UK average of 21.7% (Focus).

Car ownership is significantly above average at 85.9% (UK average:72.6%), with a particularly high representation of multiple car owners.

75.5% of the population are homeowners, compared to the UK average of68.3%.

The subject property, together with the nearby John Lewis department store,Asda superstore and adjacent leisure park, wil l comprise a significant retail and leisure destination and the highly accessible locationjust off the M40 will be able to draw customers from a much larger catchment beyond High Wycombe.

CACI estimate the 20 minute drive time population to be 369,112 and 39%of the 20 minute catchment are classified within the most affluent AB socialgroups.

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 3

HIGH WYCOMBE

SITUATION DESCRIPTIONThe subject property will comprise a purpose-built, destination NEXTFashion, Home and Garden superstore.

The specification and finishes will be to a very high standard with the elevations comprising a Corium brick cladding system on insulatedcladding panels. The shop fronts will comprise a structural glazing systemwith solar control.

The building will be constructed to BREEAM Very Good.

Internally the store will be fitted out to an extremely high standard incorporating NEXT’s full home and fashion lines.

The p rope r t y i s l oca ted approximately 2 miles to the southof High Wycombe town centre,adjacent to junction 4 of the M40with extensive frontage onto theA4010 John Hall Way.

The property is situated in an established retail and leisure area,with a 97,087 sq ft Asda foodstoreand 173,500 sq ft John LewisDepartment Store located in close

proximity to the west of the property.High Wycombe Leisure Park,anchored by Empire Cinema, isalso situated directly adjacent.

The NEXT unit will be highlyprominent and accessible, with all traffic from the M40 visitingthe nearby Asda or John Lewisgoing directly past the subject property.

Ordnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100022432. Plotted Scale - 1:19128 NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 4

John Hall Way A4010

Crest Road

nextnext

homeGarden Centre

Conservatory

FutureDevelopment

ACCOMODATIONThe unit will incorporate the following accommodation:

The eaves height will be 13.49 metres to the higher parapet and 11.33metres to the lower parapet along the shopfront.

The property will provide a total of 159 parking spaces. The unit occupies asloping site and 58 of the spaces are to be provided at an upper parkinglevel, which will benefit from a customer entrance directly into the first floorlevel of the retail store.

The overall site area is approximately 3.4 acres (1.38 hectares).

TENUREThe property will be held Freehold.

ENVIRONMENTALA ground investigation report is available upon request.

PLANNINGPlanning consent was granted inJuly 2013 (ref: 12/05827/FUL) forthe “Erection of 7,261 sq.m. retailstore (Class A1) with associatedparking spaces, creation of onevehicle and three pedestrianaccesses, serv ice yard andlandscaping.”

Condition 3 states that “Notwithstanding the provision of Class A1 of theTown and Country Planning(Use Classes) Order 2005…the premises hereby permitted shall sell / display :

a) clothing, shoes and fashion on no more than 1,767 sq.mof the floorspace

b) home and garden furniture, lighting, electrical goods, DIY products, furnishings, flooring, garden products and kitchen items on no more than 2,746 sq.m of floorspace.

As such the retail trading floorspace of the building shall be 4,635 sq.m. For the avoidance of doubt, the premises shall not be used for the sale of food and drink to be consumed off the premises.”

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 5

GIA (Sq Ft) GIA (Sq M)Ground Floor - Sales 26,846 2,4941st Floor - Sales & Cafe 23,229 2,1582nd Floor - Storage & Ancillary 21,744 2,020SUB-TOTAL 71,819 6,672External Conservatory 2,045 190External Garden Centre 4,251 395TOTAL 78,115 7,257

TENANCYThe entire property is to be let on full repairing and insuring terms to NextGroup plc with a surety from Next plc for a period of 25 years without breakfrom practical completion.

The commencing rent will be £830,000 per annum, reflecting £11.56 per sq ftoverall with five yearly upwards only rent reviews in line with the RetailPrices Index, subject to a 1 – 4% per annum compound collar and cap. Therent will be payable monthly in advance.

TENANT COVENANTNEXT is a UK based multi-channel retailer offering quality clothing,footwear, accessories and home products. NEXT distributes through threemain channels: NEXT Retail, a chain of more than 500 stores in the UK andEire; NEXT Directory, an online and catalogue shopping business withalmost 4 million active customers and international websites serving approximately 70 countries; and NEXT International Retail, with almost 200mainly franchised stores around the world.

The tenant company Next Group plc has reported the following financial results.

The company is rated 5A1 by Dun & Bradstreet, reflecting minimal risk.

The surety Next plc is a constituent of the FTSE 100 and in total employs52,533 people. NEXT plc has reported the following financial results:

In the current financial year to 26th April 2014, NEXT reported sales wereup 10.8% and raised their full year profits guidance to between £750 million- £790 million.

Next plc is an investment grade covenant and benefits from the followingratings:

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 6

25/01/2014 26/01/2013 28/01/2012Sales Turnover £3,740,000,000 £3,562,800,000 £3,441,100,000Pre-Tax Profits £695,200,000 £666,500,000 £579,500,000Tangible Net Worth £241,800,000 £240,900,000 £177,100,000

Rating Agency Rating OutlookStandard & Poor BBB StableMoody’s BAA2 Stable

26/01/2013 28/01/2012 29/01/2011Sales Turnover £212,300,000 £195,000,000 £188,400,000Pre-Tax Profits £322,500,000 £530,600,000 £590,300,000Tangible Net Worth £1,747,900,000 £1,951,000,000 £1,667,000,000

RETAIL WAREHOUSING INHIGH WYCOMBEIn close proximity to the west of the subject property, Asda occupy a 97,087sq ft foodstore and John Lewis occupy a 173,500 sq ft department store.

Elsewhere in High Wycombe, London Road comprises the majority of otherretail warehousing provision.

Wycombe Retail Park totals 107,630 sq ft with retailers including Wickes,Hobbycraft, Pets at Home, Argos, Furniture Village, M&S and Currys/PCWorld. Top rents are currently £33 per sq ft.

There are a number of solus units located along London Road. Theseinclude a 28,200 sq ft Homebase, which has a bulky goods consent and islet off £24.00 per sq ft.

DFS occupy a 17,250 sq ft unit, having taken an assignment from Currys inSeptember 2011. The passing rent is £27.00 per sq ft and the unit has abulky goods consent.

B&Q occupies a 49,906 sq ft unit and have sub-let 9,900 sq ft to Halfords.B&Q are currently paying £24.50 per sq ft and the unit has a bulky goodsconsent.

Adjacent to the town centre on Bellfield Road, Matalan occupy a 36,125 sqft unit let off £17.50 per sq ft, which was a new letting in August 2010.Jollye’s and Carpetright also occupy units here.

VATVAT will be payable in addition to the purchase price.

CAPITALALLOWANCESOur client intends to retain the benefit of any Capital Allowances.

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 7

NEXT Fashion, Home and Garden Store, Shoreham-by-Sea

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 8

PROPOSALOur client is seeking a forward commitment in excess of £15,550,000(Fifteen Million, Five Hundred and Fifty Thousand Pounds) subject tocontract and exclusive of VAT.

A purchase at this level would show a Net Initial Yield of 5.00%, assumingfull purchase costs of 6.60%.

The running yield that can be expected, assuming a range of RPI growthrates, is as follows:

DEVELOPMENT TEAMAND TIMETABLEThe development has been designed by architects Pick Everard andStanton Williams.

Construction is due to start in June 2014 with a 9 month build period.

NEXT are intending to be open and trading for Spring 2015.

Full details of the construction programme and the professional team are available upon request.

RPI at 1% pa Running Yield RPI at 2% pa Running Yield RPI at 3% pa Running Yield RPI at 4% pa Running Yield Lease Start £830,000 5.00% £830,000 5.00% £830,000 5.00% £830,000 5.00%

Year 5 £872,338 5.26% £916,387 5.53% £962,197 5.80% £1,009,822 6.09%

Year 10 £916,836 5.53% £1,011,765 6.10% £1,115,451 6.73% £1,228,603 7.41%

Year 15 £963,604 5.81% £1,117,071 6.74% £1,293,113 7.80% £1,494,783 9.02%

Year 20 £1,012,758 6.11% £1,233,336 7.44% £1,499,072 9.04% £1,818,632 10.97%

Misrepresentation Act 1967Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that :

(i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract. (ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever

and 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.(iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only.

Subject to contract May 2014

NEXT GROUP PLC, JOHN HALL WAY, HIGH WYCOMBE HP11 1UA 9

Mark Girlingt: 020 7312 7460e: mark.girling@montagu-evans.co.uk

Nick Richardsont: 020 7312 7420e: nick.richardson@montagu-evans.co.uk

FURTHER INFORMATION MONTAGUEVANS

www.montagu-evans.co.ukEdward Georget: 020 7312 7489e: edward.george@montagu-evans.co.uk