Xscape Yorkshire, Castleford

Service Charge Reconciliation 01 July 2013 – 30 June 2014

Gross Lettable Area 310,860 square feet Date opened 1 October 2003

Service Charge Booklet

Contents

Executive Summary Independent Accountants Report Service Charge Variance Summary Property Cost Summary Explanation of Variances Additional Information Apportionment Schedule Contacts

The primary purpose of this booklet is to provide details of our Service Charge costs for the year. The

schedules also show last year’s actual reconciled costs as a further reference point.

Executive Summary

The total expenditure for the service charge year 1st July 2013 to 30th June 2014 was:

Actual expenditure £1,448,311

Budget expenditure £1,445,830

Variance + £2,481 (+ 0.2%)

An explanation of the variances is contained within this booklet and reflects the proactive approach by

the Centre Management team to minimising the service charge expenditure at the same time as

delivering the 2013/14 business objectives.

Whilst the budget has generally been well controlled throughout the course of the year some

unexpected expenditure has arisen resulting in the nominal overspend against budget. The costs

relate directly to work that needed to be completed under Hard Services. I will cover this in greater

detail in the summary below.

The Centre has had some positive changes throughout the course of the year. The refurbishments of

Nandos and Ask have continued to raise the standard of presentation and Volcano Falls Adventure

Golf, our latest leisure attraction has had a fantastic opening few months generating some excellent

additional footfall for the scheme.

The emphasis has continued to be the delivery of a well presented, fresh and vibrant product. The on-

going aim is to maintain and ensure the service standards and presentation of the building are at the

required level, in order to deliver a first class customer experience.

Jason Warren

General Manager

XSCAPE, YORKSHIRE

Independent Accountants report for the year ended 30 June 2014

We have examined the attached statement of service charge expenditure for the year ended 30 June 2014 which has been prepared from the accounting records, information and explanations provided to us by the managing agent, X Leisure Limited. We have not examined the apportionment of the total expenditure between the occupiers of the property.

Respective responsibilities of the landlord and independent accountants.

The landlord is responsible for keeping proper and complete accounting records and for the preparation of these service charge statements. The managing agent, X Leisure Limited, has undertaken these

responsibilities on behalf of the Landlord,

It is our responsibility to form an independent opinion, based on our examination, on the statement of

service charge expenditure and to report our opinion exclusively to the Landlord and their managing agent. To the fullest extent permitted by law, we do not accept or assume any liability to anyone other than the landlord (or managing agent where applicable) for our work, for this report, or for the opinions we have formed.

Basis of Opinion

We planned and performed our Independent Review so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable

assurance that the statement of service charge expenditure is a fair summary of the accounting records relating to Xscape, Yorkshire for the year ended 30 June 2014 and is sufficiently supported by accounts,

receipts and other documents which have been made available to us.

Our work does not comprise an audit as defined by International Standards on Auditing (UK and Ireland).

We are not required to express an opinion on the adequacy of any reserve fund for future expenditure.

Opinion

In our opinion, the attached statement of service charge expenditure totalling £1,448,311 :-

i) has been prepared in accordance with the accounting records, information and explanations

provided to us, and

ii) is sufficiently supported by accounts, receipts and other documents.

5 November 2014

Websters Chartered Accountants 12 Melcombe Place Marylebone London NW1 6JJ

XSCAPE, YORKSHIRE

Service Charge Actual vs Budget for the year ended 30 June 2014

Actual Budget Variance Variance

MANAGEMENT 284,501 276,873 7,628 2.8%

Management Fees 123,013 123,013 0 0.0%

Accounting Fees 2,500 2,500 0.0% Site Management Resources 158.811 148.610 10,201 6.9%

Health, Safety & Environmental 177 2, /50 (2,573) -93.6%

UTILITIES 165,396 167,621 (2,225) -1.3%

Electricity 158,065 148,893 9,172 6.2%

Gas 5,994 12,028 (6,034) -50.2%

Water 1,337 6.700 (5,363) -80.0%

SOFT SERVICES 871,266 813,621 (2,355) -0.3%

Security 334,665 328,896 5,769 1.8%

Cleaning & Environmental 336,601 344,725 (8,124) -2.4%

Marketing & Promotions 200,000 200,000 0 0.0%

HARD SERVICES 151,497 127,715 23,782 18.6%

Mechanical & Electrical Service 67,132 61,705 5,427 8.8%

Lifts & Escalators 26,345 23,660 2, 685 11.3%

Fabric Repairs & Maintenance 58,020 42,350 15,670 37.0%

INCOME (24,349) 0 (24,349)

Income from Commercialisation (24,349) 0 (24,349)

GRAND TOTAL £1 448 311 / I

£l 445 830 £ 2,481 0.2%

XSCAPE, YORKSHIRE

Service Charge Allocation of Costs for the year ended 30 June 2014

Total

£

All Tenants Promotions

£

MANAGEMENT 284,501 284,501

Management Fees 123,013 123,013

Accounting Fees 2,500 2,500 Site Management Resources 158.811 158,811 Staff Costs 140,301 140,301 Site Offices/Accommodation 18.510 18.510

Health, Safety & Environmental 177 177 Health & Safety 177 177

UTILITIES 165,396 165,396

Electricity 158,065 158,065

Electricity - Lighting 144,743 144,743 CRC Electricity Tax 13,322 13.322 Gas 6,994 5,994 Gas 5.434 5,434 CRC Gas Tax 560 560 Water 1,337 1,337

SOFT SERVICES 871,266 671,266 200,000

Security 334,665 334,665

Cleaning & Environmental 336,601 336,601 Cleaning 195,875 195.875 Waste Management 98,185 98,185 Housekeeping/Sundry Costs 3,524 3,524 Landscaping (External) 39,017 39.017 Marketing & Promotions 200,000 200,000

HARD SERVICES 151,497 151,497

Mechanical & Electrical Service 67.132 67,132

Fire Precautions Maintenance 27,050 27,050 Fire Precautions Repairs 1,336 1,336 General Engineering Maintenance 7,940 7,940 General Engineering Repairs 14,849 14,849 Lighting/Electrical Maintenance 12,957 12,957 Lighting/Electrical Repairs 3,000 3,000 Lifts & Escalators 26,345 26,345 Lifts/Escalator Maintenance 23,004 23,004 Lift/Escalator Repairs 3,341 3,341 Fabric Repairs & Maintenance 58,020 58,020 Internal Maintenance 54.507 54,507 External Maintenance 3,513 3,513

INCOME (24,349) (24,349)

Income from Commercialisation (24,349) (24,349)

GRAND TOTAL £1,448,311 £1,272,660 £175,651

Summary of Variances

Service Variance Reason

Site Management

Resource

£10,201

The overspend is due to unbudgeted bonus payments to the Management team.

Health, Safety & Environmental

(£2,573)

Expected spend was 93.6% less than budget-there was no expenditure arising from the annual Health and Safety audit as this is now completed in house.

Electricity £9,172 The main element of the 6.2% overspend was due to the higher than forecast CRC charge. Due to the recent introduction of this charge, the accuracy will improve moving forwards.

Gas

(£6,034)

The underspend of 50.2% was due to the extremely mild winter and therefore reduced consumption.

Water

(£5,363) An underspend of 80%. This is an unexplained reduction in consumption that is under further investigation.

Mechanical & Electrical Services

£5,427 Spend was 8.8% higher than budgeted, most

notably due to unforeseen and unbudgeted reactive

repairs. The most notable being repairs to the UPS

(Uninterrupted Power Supply) £1,900. Additional

repairs to the backup generator, air conditioning

unit and general electrical repairs and materials

were also required.

This overspend was partly mitigated by

maintenance costs being lower than forecast.

Lifts & Escalators

£2,685 Spend was 11.3% greater than budget due to

additional escalator repairs and lift call outs due to

misuse which fall outside of the scope of the

maintenance contract.

Fabric Repairs & Maintenance

£15,670 Costs were 37% greater than budget , most notably

from the re-lining of the Fire Sprinkler water tank

and repairs to the mall flooring.

Income (£24,349) A budget figure was omitted from the 2013/14

budget.

Additional Information

Apportionment and Schedules

Service Charge expenditure is apportioned on a weighted floor area basis as follows :

100% 80% 60% 40% 20%

Up to 2,001 to 5,001 to 15,001 to

50,001

2,000 5,000 15,000 50,000 and over

Service Partners

Key services are provided by the following service providers:

Service

Service Partner Contract Duration Next Re-tender

Security Care Facility

Management

3 years 2016

Cleaning ISS 3 years 2015

Winter Programme. Greenspace Solutions 1Year 2015

Landscaping. Countrywide. Rolling N/A

Waste Management

Countrywide

Rolling

N/A

Contacts

Jason Warren | General Manager T: 0113 2632018

M: 07824 538 903

E: jason.warren@landsecurities.com

Jason is responsible for overseeing day to day management of the Centre, ensuring acceptable

standards of service are achieved, controlling costs within budget and ensuring they are correctly

allocated. In addition he will deal with tenant requests for alterations, general enquiries regarding

lease obligations and responsibilities.

Steve Pettit | Management Surveyor T: 0113 261 5361

M : 07770 637217

E: steve.pettit@landsecurities.com

Steve is the management surveyor for this site and is the direct link for Jason and the tenants when

dealing with requests for alterations, lease obligations and developments.

Julie Garsden | Portfolio Manager T: 0776 420 8791

E: julie.garsden@landsecurities.com

Julie is responsible for dealing with asset management of the Park including occupational space

requirements, lettings, tenant mix, refurbishment, approves tenants’ applications for Landlord consents

in respect of assignments and sub-lettings and deals with development matters.

Pippa Kerr | Property Accountant T: 0207 024 5104

E: pippa.kerr@landsecurities.com

Pippa is responsible for the administration of the Service Charge - the apportionment of charges, the

annual reconciliation and the production of on account and balancing charges.

Apportionment Schedule

Xscape Yorkshire, Castleford

All Tenants Promotio Total

1,272,661 175,651 1,448,311

Tenant Address

Factors All

tenants

(Sq Ft)

Actuals All

tenantsPromotio Total

Subvert Boardstore (Castleford Unit 1a, Xscape Castleford 2,294 14,311 1,975 16,286

Jacobs & Turner Ltd Unit 1b, Xscape Castleford 3,258 20,319 2,804 23,123

The Trustees of the Charity kn Unit 1c, Xscape Castleford 3,640 22,704 3,134 25,837

Glassroom Limited Unit 2, Xscape Castleford 1,834 11,439 1,579 13,018

GT News Limited Unit 3, Xscape Castleford 1,010 6,300 869 7,169

Extreme-Eyewear Limited Unit 4, Xscape Castleford 970 6,050 835 6,885

NIFIMA Limited Unit 5, Xscape Castleford 967 6,031 832 6,864

The Restaurant Group (UK) Limi Unit 6 & 14, Xscape Castleford 3,779 23,572 3,253 26,825

Bella Italia Restaurants Limit Unit 7, Xscape Castleford 3,491 21,776 3,005 24,781

Made To Order Ltd Unit 7a, Xscape Castleford 727 4,534 626 5,160

J D Wetherspoon PLC Unit 8, Xscape Castleford 8,777 54,745 7,556 62,300

Chiquito Limited Unit 8a, Xscape Castleford 3,631 22,649 3,126 25,775

Nando's Chickenland Limited Unit 9, Xscape Castleford 2,667 16,636 2,296 18,932

Ask Restaurants Limited Unit 10, Xscape Castleford 2,941 18,343 2,532 20,874

PizzaExpress (Restaurants) Ltd Unit 11, Xscape Castleford 3,656 22,803 3,147 25,951

F W Evans Cycles (UK) Limited Unit 11a, Xscape Castleford 2,752 17,165 2,369 19,534

Windmill Restaurants Limited ( Unit 12, Xscape Castleford 2,615 16,312 2,251 18,563

TGI Friday's UK Limited Unit 13 & 15, Xscape Castleford 6,200 38,671 5,337 44,008

Giraffe Concepts Limited Unit 16, 16a and Kiosk 3, Xscape Castleford 2,523 15,738 2,172 17,910

Surfanic Retail Limited Unit 17, Xscape Castleford 1,501 9,362 1,292 10,654

Rett Retail Limited (In Admini Unit 18, Xscape Castleford 1,778 11,090 1,531 12,620

Brasher Leisure Limited Unit 19, Xscape Castleford 2,209 13,777 1,901 15,678

Ellis Brigham Limited Unit 20, Xscape Castleford 6,342 39,558 5,460 45,018

HJM Funstation Limited Units 21,22 & 23, Xscape Castleford 6,657 41,519 5,730 47,249

Xercise Health and Fitness Clu Unit 24, Xscape Castleford 8,680 54,142 7,473 61,615

Bowlplex Limited (Corporate Vo Unit 25, Xscape Castleford 15,990 99,732 13,765 113,496

Vacant Unit 26, Xscape Castleford 4,620 28,817 3,977 32,795

Snozone Limited Unit 27, Xscape Castleford 27,177 169,509 23,395 192,905

Flowhouse (Bedford) Limited Unit 28, Xscape Castleford 12,203 76,113 10,505 86,619

HJM Funstation Limited Unit 30a, Xscape Castleford 4,623 28,832 3,979 32,812

Laser Escape Limited Unit 30b, Xscape Castleford 4,403 27,463 3,790 31,253

Inspired Attractions Limited Unit 30c/d, Xscape Castleford 7,622 47,541 6,561 54,102

Michael Sui Yeung Tung & Willi Unit 32, Xscape Castleford 7,114 44,374 6,125 50,499

The Loft Castleford Limited Unit 33a, Xscape Castleford 2,209 13,777 1,901 15,678

M H S Works Limited Unit 33b, Xscape Castleford 4,460 27,818 3,839 31,658

The Loft Castleford Limited Unit 33c, Xscape Castleford 2,173 13,552 1,870 15,423

Cine-UK Limited Cinema, Xscape Castleford 24,800 154,684 21,349 176,034

Bella Italia Restaurants Limit Kiosk 2, Xscape Castleford 371 2,314 319 2,633

Starbucks Coffee Company (UK) Kiosk Zone 1, Xscape Castleford 1,200 7,485 1,033 8,518

Ali Shaan Taxi Pod, Xscape Castleford 177 1,104 152 1,256

204,041 1,272,661 175,651 1,448,311