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VALUATION23rd November 2009

Offices to the Rear, Hodgsons

Belprin Road, Beverley

HU17 0LN

CONTENTS:

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SITUATION.....................................................................................5

DESCRIPTION................................................................................6

ACCOMMODATION......................................................................7

SERVICES.......................................................................................8

TENURE..........................................................................................9

LOCAL AUTHORITY.....................................................................9

TOWN PLANNING.......................................................................10

RATEABLE VALUE.....................................................................10

ENVIRONMENTAL CONSIDERATIONS..................................10

INSURANCE.................................................................................13

GENERAL COMMENTS..............................................................13

VALUATION.................................................................................16

APPENDIX A

Site Plan..........................................................................................18

APPENDIX B

Location Plan..................................................................................20

APPENDIX C

Instructions.....................................................................................22

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Our ref: CG/SE/BelprinRd.FiND (5979)

Your ref:

Date: 2nd December 2009

FAO C. Hodgson Esq.

Find

Hurn Lodge

13 New Walk

Beverley

HU17 7AE

Dear Sirs,

Re: Property: Offices to the Rear, Hodgsons Belprin Road, Beverley

HU17 0LN

Customer: FiND

Further to instructions confirmed in our letter dated 18 th November 2009 for us to

advise on the market value of the above mentioned property and following our

inspection on 23rd November 2009, we are pleased to submit our formal report.

We confirm that the valuation has been carried out to determine the market value for

advice on market rental value and in accordance with the RICS Valuation Standards

(The Red Book). The valuation, unless otherwise stated, is provided subject to the

Standard Limitations and Assumptions set out below:

This report is to be regarded as confidential to FiND and their professional advisers.

Consequently, and in accordance with current practice, no responsibility is accepted

to any third party in respect of the whole or part of its contents. Should the

circumstances under which the report was commissioned alter we reserve the right to

withdraw or alter our advice.

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This report and valuation may be subject to monitoring under the Institutions conduct

and disciplinary regulations.

We have not carried out a structural survey of the property nor have we inspectedwoodwork, steelwork or other parts which are covered, unexposed or inaccessible and

have assumed these parts to be in good repair and condition. We cannot express an

opinion about or provide advice upon the condition of parts not inspected and this

should not be taken as making any implied representation or statement.

We have not carried out any soil stability tests to confirm that the land has any

significant load bearing problems which would necessitate unusual or expensivefoundations for the current, or any proposed buildings. Neither have we been advised

that the property concerned has, or requires any abnormal foundation work. In the

event that adverse conditions are subsequently encountered, then this may affect our

valuation.

The property was inspected on 23rd November 2009 at which time the weather was

dry. The property was viewed from ground level.

We confirm that we have relied on information provided by C. Hodgson Esq.,

Hodgson Sealants Limited, local agents and information available within the public

domain.

We confirm that the valuation has been carried out by Colin Garvin M. Sc. MRICS, a

Chartered Surveyor since 1983.

Our report is set out in numbered paragraph format as follows:

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SITUATION

The property is situated on Belprin Road. It is shown edged green on the

extract plan in Appendix A and its location is further illustrated by the

map in Appendix B. Any plans provided are for identification purposes

only, and verification of boundaries should be with the title deeds only.

Beverley is the county town for the East Riding of Yorkshire and is a busy

commercial and tourist centre. It has an immediate population of around

30,000 (2001 census) and has experienced rapid growth during the last

ten years with large housing developments to both the north and south of

the town.

There have been recent discussions in the local newspapers and other news

media concerning the long term redevelopment of the Council owned

depot and other buildings fronting Grovehill Road and Beck View Road.

The proposals include an eleven acre retail park, something which would

have a long term effect on the area. The details are not finalized at the

present time and there has been no formal application made. Further

details can be found on the Local Planning Authority website and also

the website of the preferred developer, Castlemore

(www.castlemore.co.uk).

There are also proposals for another major development closer to the town

centre, focused on the former Clariant chemical works and Army

Transport Museum bounded by Flemingate, Armstrong Way, Grovehill

Road and St Nicholas Road. The proposals are also not finalized, but

consist of a mix of: shopping, office, light industrial, leisure, residential

and educational uses. The scheme has generally been welcomed by the

local population.

http://www.castlemore.co.uk/http://www.castlemore.co.uk/

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The recent consent given to the Southern Relief Road is another development

that will benefit the town. This will link Victoria Road (A164) and Hull

Road (A1174) via Long Lane where there will be a park and ride

facility. This will have the effect of routing through traffic around the

east side of the town in particular, Swinemoor Lane and increase traffic

flows on that side to the benefit of the town centre.

Belprin Road runs off Swinemoor Lane on the east side of the town. The

majority of the land to the east of Swinemoor Lane is given to industrial

uses and Belprin Road provides access to the subject property as well as

Bush Tyres, ABI Plc Engineering Works and the rear of Chem-Drys

offices, YMC Limited, The Plumb Centre, The Yorkshire Bed

Company.

DESCRIPTION

The property is a typical 1980s single storey office block which was originally

built as part of the Hodgson Sealants industrial complex off Belprin

Road.

It is a framed construction with (we are informed) a shallow pitch asbestos sheet

covered roof. The roof is not visible from ground level due to the profile

metal sheet cladding which forms the eaves/facia to the building on all

sides. The walls are of cavity brick. To the front of the property there is

an extended porch similarly clad in profile metal sheeting.

Internally the property is currently arranged as a combination of open plan and

cellular offices with a mixture of solid and stud partitions. We have

assumed that due to the frame nature of the construction none of these

internal walls are load bearing.

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The internal finishes largely reflect the age of the building and include majority

suspended ceilings with recessed fluorescent lighting, emulsion and

plaster walls and carpets on solid concrete floors. Fittings include

electrical outlets and telephone sockets, mostly arranged within

perimeter walls but not on a scale that reflects the facilities provided by

modern perimeter or floor based trunking.

Externally there is a large parking area in front of the property accessed via a

shared section of yard which opens directly onto Belprin Road. The

shared yard section serves other buildings within the Hodgson Sealants

industrial complex and the shared access, office building and other

buildings are enclosed by way of galvanized metal palisade fencing and

double swing gates.

ACCOMMODATION

We do not propose to elaborate in detail on the accommodation, but briefly it

comprises the following:

sq ft sq m

Offices 1,742 161.84

Kitchen 171 15.89

Total: 1,913

External:

We estimate the site extends to approximately 824 m2 (8,864 ft2,

0.20 acres and 0.08 hectares). The footprint of the buildings

(Gross External Area at ground floor only) occupies about 26%

of the site, with the ratio to Gross Internal Area (including all

levels) being 24%.

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The measurement of the property has been carried out in accordance with the

RICS Code of Measuring Practice, 6th Edition.

SERVICES

We believe mains services of water, electricity, drainage and gas are connected

or available. We recommend that if confirmation of connected services

is required, appropriate verification can be carried out by legal adviser

by local search or request to the supply companies.

The property benefits from a perimeter radiator central heating system fired

from a gas combination boiler located in the kitchen.

Services have not been tested. As regulations governing the installation of

services change from time to time, where no adverse comments have

been made this should not be taken as an indication of compliance withthe latest regulations.

It is essential that any gas appliances in the building have a safety certificate

issued by a registered member of the Council for Registered Gas

Installers in accordance with The Regulatory Reform (Fire Safety)

(England and Wales) Order 2005. It is also important that gas

appliances are maintained on an annual contract so as to ensure their

continuing safety.

We would also recommend regular safety checks of the electrical system and

appliances in accordance with IEE Regulations and the Health and

Safety Guidelines to BS 7671.

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TENURE

We are advised that FiND intend to lease the property on the basis of a 5 year

term with a 3 year break on the tenant's part and on full repairing and

insuring terms.

We have been informed that the freehold to the property is held by Hodgsons

Sealants Limited.

No official search has been made on the title and we have prepared our report

based upon the assumption that it has good title.

We are unaware of any rights of way, easements or restrictive covenants which

may adversely affect the property. Our valuation reflects this

assumption, but we would recommend legal advisers make further

investigations.

Tenancies: there appear to be no current tenancies on the building and we have

therefore assumed that the current freeholder enjoys vacant possession

of the building and is entitled to grant the lease referred to above.

LOCAL AUTHORITY

The property falls within the East Riding of Yorkshire Council administrative

area.

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TOWN PLANNING

We have investigated the information made available by the Local Planning

Authority through Public Access via the internet. The information

available suggests that an application has been made for a change of use

from Offices to that of Day Centre which we assume is to in order to

accommodate the new tenant's activities.

We have not been made aware of any adverse planning or highways proposals

which might affect our valuation but this should be verified by local

search.

RATEABLE VALUE

The Valuation Office Agency website shows a single entry for Hodgson

Sealants Limited, Belprin Road, Beverley and therefore we assume that

there is no individual assessment for this building. We believe that now

it is being intended to be used as a separate entity from the main factory

complex a new rating assessment should be made.

ENVIRONMENTAL CONSIDERATIONS

We are not aware of the content of any environmental audit or other

environmental investigation or soil survey which may have been carried

out on the property and which may draw attention to any contamination

or the possibility of any such contamination. In undertaking our report

we have assumed that no contaminative or potentially contaminative

uses have ever been carried out on the premises.

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We have not carried out any investigation into past or present uses either of the

property or any neighbouring land to establish whether there is any

potential for contamination from these uses or sites adjacent to the

property, and have therefore assumed that none exist.

Local Authorities are now charging for the disclosure of environmental

information that they hold. If required, we can obtain such information,

or a site specific environmental assessment, at an additional cost.

Our inspection did not disclose any activity which we would consider to have a

harmful affect but we must stress that this information has been obtained

through observation and has not been checked with local authority

records.

Should it be established however that contamination, seepage or pollution exists

at the property or any neighbouring land, or that the premises have been

or are being put to a contaminative use this might reduce the value now

reported.

Hazardous Materials: we have not arranged for any investigation to be carried

out to determine whether or not any deleterious material or hazardous

material has been used in the construction of the property or has since

been incorporated, and we are therefore unable to report that it is free

from risk in this respect. For the purpose of this valuation we have

assumed that such investigation would not disclose the presence of any

such material in any significant event.

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We would also draw attention to the Control of Asbestos Regulations 2006

which came into force on 13 November 2006 and which brings together

the three previous sets of Regulations covering the prohibition of

asbestos, the control of asbestos at work and asbestos licensing.

We have not attempted to identify the presence of asbestos within the building

other than any specifically mentioned. However it may be considered

prudent to have an asbestos audit carried out in order to comply with

current Regulations.

Given the age of the property, lead piping in the water or heating systems is a

possibility. This is not recommended for a number of reasons: it is

unreliable and can fail without warning, where it joins other metals it

can cause galvanic action resulting in corrosion and finally it has certain

health implications if it is in the drinking water supply. The pipes may

turn out to be disused, but if this is not the case we recommend

replacement at an appropriate time.

Paint with a high lead content may have been used in the past in these premises.

Even low levels of lead in paint can be damaging to health, particularly

to children. Great care should be taken to prevent inhalation when

sanding or burning off old paintwork.

Whilst no indication of root action damage was noted and the referral to a tree

specialist is not considered necessary, no assurance can be given such

damage will not occur as our inspection was of a limited visual nature.

The presence of trees can have a considerable influence particularly in

clay soils. We recommend that buildings insurance covering subsidence

is in place and regular monitoring is carried out - if damage is noted the

Local Authority should be notified immediately.

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INSURANCE

The reinstatement value for insurance purposes should be a figure in the region

of 320,000 (Three Hundred and Twenty Thousand Pounds) subject to

the property being rebuilt using modern methods of construction and

materials and to include for professional fees, Local Authority fees,

demolition and site clearance. VAT has not been taken into account.

Any reinstatement figure given is for guidance only and a full detailed value

should be obtained from a Quantity Surveyor.

In assessing the reinstatement value we have not taken into account any

requirement for decontamination of land which might be imposed by the

Environmental Agency or other statutory body should total rebuilding be

necessary, following an incident generating a claim.

GENERAL COMMENTS

We have considered the rental value of the property on the basis of being

occupied as offices.

The property comprises a standard purpose built office facility constructed andpresented in accordance with its previous function as ancillary offices to

a large industrial complex.

The property appears to be about 25 years old and has severed as an ancillary

office to the main complex throughout that time.

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During this period of time the demand for power and communication outlets

within offices has changed substantially and we would anticipate that

were a modern office user to lease the premises and upgrade of these

services would be required.

Use of the premises as a day care centre does not fall into a category of property

use that is openly traded on the market and therefore values are usually

based on the most viable alternative commercial use which would be

that of offices and the figures shown in the following section reporting

market rental value, reflect this situation.

FiND intends to take a 5 year lease of the property on full repairing and insuring

terms. We would advise that certain parts of the structure and certain

current needed repairs are excluded from the tenants liability and these

would include:

A number of the double glazed windows are showing signs of edge seal

failure and have misted up between the panes. The defective

units should either be replaced or removed from the tenant's

liability to repair.

There are a number of cracks to the internal walls at the north end of the

block together with a section of hollow floor within the kitchen

area. We are not certain what has caused these cracks, but theydo not appear to be new and are at the maximum only a few

millimetres wide. There is no sign of corresponding cracking to

the outside leaf of brickwork.

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We are obviously unable to see the construction of the property below

ground level but it is possible that the frame and the inner leaf of

the external walls together with internal partition walls have

settled at different rates. Again we would recommend that all

liability to the tenant for the existing defects and any progression

of similar defects is removed from their liability under the lease.

We understand that the roof, which is not visible from ground level, is of

asbestos cement sheets. Given the age of the building we believe

it is unlikely that this material is in a dangerous state but without

access we are unable to confirm this. Although it is unlikely that

the material will be in a significantly worse state at the end of the

proposed lease than it is now it might also be advisable for the

tenant to exclude liability for carrying out substantial repair or

replacement of the roof.

There are visible areas of damp within the reception area, the mens WC

and the offices on the south east corner of the property. Without

further invasive investigations we do not believe it is possible tocategorically state why this is happening but we did note that the

ground levels in these areas are high in relation to the position of

the damp proof course on the external walls.

In the case of the damp within the mens WC and reception area, the

raised area immediately outside, forming part of the covered

entrance area appears to be bridging the damp proof course and

this may be a reason for the damp in these areas. Furthermore on

the south east corner of the property the downpipe from the

concealed rainwater gutter discharges directly on to (raised)

ground adjacent to the wall. It appears that in the original design

of the property this water would have been discharged across the

adjoining tarmac pathway and soak into the ground to the other

side of that pathway. Again the tenant should ensure the defects

as specifically removed from their repairing liability.

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Finally we noted that the decoration of the window frames, particularly

on the east and south facing elevations is particularly poor. We

recommend that as a condition of taking the lease FiND should

require the landlord to redecorate or agree to remove the

repairing liability.

As a building which incorporates industrial style cladding (to the eaves sections)

we must draw attention to insurance problems which have been

highlighted in the past. When applying for insurance we recommend

that this form of construction is brought to the attention of the insurers in

order to confirm that no problems exist.

VALUATION

Having regard to all factors, we are of the opinion that the market rental value is

16,250 (Sixteen Thousand Two Hundred and Fifty Pounds) per

annum subject to the property being let on a 5 year lease with a 3 year

break in favour of the tenant and on full repairing and insuring terms but

assuming that the major defects highlighted above are not the

responsibility of the ingoing tenant.

We do not believe that there are any assumptions, special assumptions,

reservations, any special instructions or departures from a normal

valuation for this purpose.

Taxation and Mortgages: no allowance has been made for taxation which may

arise, whether actual or notional on any future disposal of the property.

Neither is any allowance made on any basis for the existence of a

mortgage or similar financial encumbrance on or over the property.

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The Building Regulations control the construction of new buildings or the

extension of existing ones and are liable to amendment from time to

time. In this report we have not attempted to draw attention to all

instances where the manner of construction is different to that insisted

upon by the latest Regulations.

This report does not take into account any requirements for Health and Safety

Law, Disability Discrimination Act 1995, or in connection with The

Regulatory Reform (Fire Safety) (England & Wales) Order 2005. We

would therefore recommend these issues are considered and if necessary

discussions should take place with the appropriate Regulatory Bodies.

Neither the whole nor any part of this valuation report nor any reference thereto

may be included in any published document, circular or statement or

published in anyway without the valuers written approval of the form

and context in which it may appear.

Neither the valuer nor the practice has a conflict of interest in carrying out this

valuation which does not take into account any fixtures or fittings that

would normally pass with the property. We confirm that the valuer is an

independent valuer as defined in the Red Book. The valuer has not

had any previous material involvement with the property.

Yours faithfully,

C Garvin M. Sc. MRICS

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APPENDIX A

Site Plan

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November 2009 Offices to the Rear, Hodgsons, Belprin Road, Beverley, HU17 0LN

Not to scaleReproduction from the Ordnance Survey with the sanction of the Controller of HM Stationary

Office, Crown Copyright reserved

FOR IDENTIFICATION PURPOSES ONLY

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APPENDIX B

Location Plan

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APPENDIX C

Instructions

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