Our ref KN/nr/52649 21st February 2014 Appraisal Of Property For Secured Lending Purposes - On All That Commercial Property Situate And Known As - Parkfirst Airport Parking Burnbrae Road Paisley Scotland PA3 3BU CONTENTS PREAMBLE 1 INSTRUCTION 2 SPECIAL INSTRUCTIONS 3 PURPOSE OF VALUATION 4 ASSUMED DATE OF VALUATION 5 BASIS OF VALUATION 6 REFERENCES TO RICS APPRAISAL MANUAL 7 INSPECTION 8 ASSUMPTIONS APPRAISAL 1 EXECUTIVE SUMMARY 2 LOCATION 3 DESCRIPTION 4 ACCOMMODATION 5 CONDITION 6 STATUTORY ENQUIRIES 7 SERVICES 8 SITE AND GROUND CONDITIONS 9 ENVIRONMENTAL CONSIDERATION 10 TENURE 11 OCCUPATIONAL LEASES AND OTHER AGREEMENTS 12 MARKET TRENDS AND GENERAL COMMENTS 13 TRADING PERFORMANCE AND GENERAL COMMENTS 14 DEVELOPMENT ISSUES 15 RENTAL VALUE 16 CAPITAL VALUE 17 INSURANCE APPENDICES 1 TERMS OF INSTRUCTION 2 PREAMBLE 1. INSTRUCTION We have received instructions from Mr John Slater of Group First Limited, Group First House, Mead Way, Padiham, Burnley, BB12 7NG to undertake an inspection of the property known as Parkfirst, Airport Parking, Burnbrae Road, Paisley, Scotland, PA3 3BU. We are instructed under the terms of the instruction received by correspondence dated 28th January 2014. 2. SPECIAL INSTRUCTIONS None. 3. PURPOSE OF VALUATION Commercial property appraisal. 4. ASSUMED DATE OF VALUATION Assumed date of valuation is the date of inspection. 5. BASIS OF VALUATION We have been requested to provide opinions of value on the following basis. MARKET VALUE Valuations based on Market Value (MV) shall adopt the definition, and the interpretive commentary, settled by the International Valuation Standards Committee. Definition ‘The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.’ Further detail on the interpretive commentary is set out within the RICS Appraisal and Valuation Standards (8th Edition). 3 6. REFERENCES TO RICS APPRAISAL MANUAL The valuation has been made in accordance with the Practice Statements in the RICS Appraisal and Valuation Manual. 7. INSPECTION The premises were inspected on Wednesday, 5th February 2014 during overcast weather conditions. The property was inspected by Karl Newton MRICS MBEng, who has in excess of 15 years experience as a Chartered Surveyor undertaking this type of inspection and valuation. We would confirm that Garside Waddingham carry Professional Indemnity Insurance to a level of £1,000,000 in respect of any one claim. We consider there to be no conflict of interest in providing this report for the instructing party. 8. ASSUMPTIONS 1. The purpose of the valuation is as set out in 3 above. 2. Unless otherwise stated within this report the tenure of the property is assumed to be freehold and free of chief rent and is valued as such. Landlord’s fixtures and fittings are included in the valuation and, unless otherwise stated, tenants fixtures and fittings are excluded. 3. Unless otherwise agreed, the basis of valuation will be as prescribed by The Royal Institution of Chartered Surveyors, with any special assumptions or exclusions referred to in 2 above. 4. Subject to paragraphs 6 and 7 below, the Valuer shall carry out such inspections and investigations as are, in his professional judgement, appropriate and possible in the particular circumstances. 5. The Valuer will rely upon information provided by the instructing client, legal or other professional advisors on all relevant matters. Unless otherwise advised to us, information supplied by the banks customer or any person reporting to be knowledgeable with regard to the property, shall be relied upon. 6. The Valuer will have regard to the apparent state of repair and condition of the property but will not carry out a building survey nor inspect those parts of the property which are covered, 4 unexposed or inaccessible. Such parts will be assumed to be in good repair and condition. The Valuer will not be under any duty to arrange for the testing of electrical, heating or other services. 7. In reporting the Valuer will meet the relevant requirements of the RICS Appraisal and Valuation Manual and will make the following assumptions, which he/she will be under no duty to verify: a) that no harmful or hazardous material has been used in the construction of the property or has since been incorporated, and that there is no contamination in or from the ground, and it is not landfilled ground; b) that good title can be shown and that the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings. c) that the property and its value are unaffected by any matters which would be revealed by a local search and replies to the usual enquiries, or by any statutory notice, and that neither the property, nor its condition, nor its use, is or will be unlawful; d) that inspection of those parts which have not been inspected would neither reveal material defects nor cause the Valuer to alter the valuation materially; and e) 8. that no radon gas is present at the property. The Report will be provided for the stated purpose(s) and for the sole use of the named Client. It will be confidential to the Client and the Client's professional advisers. The Valuer accepts responsibility to the Client alone that the Report will be prepared with the skill, care and diligence reasonably to be expected of a competent chartered surveyor, but accepts no responsibility whatsoever to any parties other than the Client. Any such parties rely upon the Report at their own risk. Neither the whole nor any part of the Report nor any reference to it may be included in any published document, circular or statement nor published in any way without the Valuer's written approval of the form and context in which it may appear. 9. The Client will pay to the Valuer the fee agreed and the amount of any Value Added Tax on the fee. In addition, if previously agreed, the Client will reimburse the Valuer the cost of all reasonable out-of-pocket expenses which may be incurred, and any VAT thereon. 5 APPRAISAL 1. EXECUTIVE SUMMARY 1. The property is likely to enjoy a fair level of occupational demand by virtue of its site, general characteristics and condition. 2. We consider there are unlikely to be any significant fluctuations in the general levels of both rental and capital values. 3. In so far as we can ascertain from information available at the time of inspection there are no Planning Consents within the immediate locality likely to affect the property. Similarly, in so far as we can ascertain the property has all relevant consents for its existing use. 2. LOCATION The property is on the Linwood Point adjacent to the junction of A737 which connects the development to the M8 and M77 Motorways. Linwood Point is located approximately three miles to the west of Glasgow city centre close to Paisley town centre. The Linwood Point development comprises of distribution centres, warehouses and logistics operators and is close to the Phoenix Retail Park. The property is split into two distinct car parks which are close to Glasgow Airport. 3. DESCRIPTION The property comprises of a large surfaced car park located to the rear of the Store First facility at Linwood Point. The site comprises of 1,209 car parking spaces accessed via West Avenue. The car park is single storey nature tarmacked finish and marked car parking spaces. 4. ACCOMMODATION (All measurements approximate) The site is split into 1,209 car parking spaces. 6 5. CONDITION We confirm that our instructions are to provide a valuation only of the property and that we have not therefore undertaken a detailed or structural survey. Parts of the structure which are covered, hidden, or inaccessible have not been inspected and we cannot guarantee that such areas are free from rot, beetle or other defect. 6. STATUTORY ENQUIRIES 1. Insofar as we can ascertain from our enquiries the property sits within the area of Glasgow City Council. 2. The property is not within a Conservation Area. 3. We are unaware of any Planning Consents other than those for the existing use for the accommodation and superficial inspection suggests the property complies with consents. 4. We have not had sight of documentation relating to fire regulations, building control or Planning Consents. 5. The property will have satisfactory access for both customer and delivery vehicles. Insofar as we can ascertain the approach road has been made up and adopted by the Highway Authority. 7. SERVICES The site comprises of a surface car park and we assume that mains water, electricity and drainage are available. 8. TENURE The individual car parking spaces are held on a 175 year lease with a ground rent of £100 per annum being payable. There is also a service charge of £289 per annum. The car parking spaces are sub-let back on a 6 year lease at a rent of £2,340 per annum. 7 9. MARKET TRENDS AND GENERAL COMMENTS There has been a general downturn in the commercial property market in this area over the past six years. This has affected all types of commercial properties with a large reduction in values from the peak of the market in Autumn 2007. Anecdotal evidence suggests that the decline in commercial values has halted over recent months, although there is no firm evidence to suggest any increase in value over this period. 10. RENTAL VALUES The current market rental value for each car parking space is approximately £2,300 per annum. 11. CAPITAL VALUE We are of the opinion that the appropriate Market Value of each individual car parking space as at 5th February 2014, is reasonably assessed at a level of £25,000 (TWENTY FIVE THOUSAND POUNDS). Signed by ……………………………………………… Karl Newton, MRICS RICS Registered Valuer Fleet House, Fleet Street Preston, Lancashire, PR1 2UT Tel 01772 201117 Fax 01772 561775 8