Morganite Trading Estate

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1 Upper Fforest Way, Swansea Enterprise Park, Swansea, SA6 8PP August 2016 INDUSTRIAL INVESTMENT OPPORTUNITY Significant active asset management and development opportunities

2 Investment Summary Freehold. Swansea is the second largest city in Wales and the administrative and commercial centre for West Wales. Located within the prime industrial and commercial location in Swansea. Situated in Swansea Enterprise Park, which has excellent access to the with Junction 44 & 45 in close proximity. is an established industrial estate offering both secure income and significant asset management and development opportunities. Comprises 331,975 sq ft of predominantly industrial accommodation on a site of acres. Part let to Morgan Electrical Carbon for 15 years (10 year break). Significant covenant with global sales for 2015 in excess of million. Producing a total current income of 464, per annum. Circa 50% of the space is either vacant or let on short term leases providing the opportunity to add significant value. The industrial areas are significantly under rented offering opportunities in the short term to increase the rental income. Swansea Swansea is the second largest city in Wales which has a population of 230,000 and is the gateway to West Wales. It is one of the major administrative and commercial centres for the principality and draws on a catchment population of circa 1.5 million from within a 1 hours drive time. The city is located on the northern shore of the Bristol Channel approximately 85 miles west of Bristol, 42 miles west of Cardiff and 185 miles west of London. Swansea benefits from excellent road communications being situated approximately 5 miles south of the motorway (junction 44 to 47). The city also has a main line railway station that provides a regular direct link to London Paddington in less than 3 hours. Swansea is a popular student destination and there are now more than 30,000 students in higher education at Swansea University and the University of Wales Trinity St David s. Tourism is prosperous in Swansea with many attracted to the Gower Peninsula (an area of outstanding natural beauty) which offers 32 miles of coastline plus the Liberty Stadium which is the sporting arena for Swansea City Football Club and the Ospreys regional rugby team. The city is expected to see further growth from mixed use development and regeneration of both the city and its waterfront. Swansea is home to a wide range of national and international companies including HSBC, Admiral Insurance, Amazon, BT, Virgin Media, Hewlett Packard and The city could become the home of the world s first tidal lagoon and combined with Swansea University s new science and innovation campus to the east of the city would drive investment to the area thus raising the profile of Wales s second city. The offices and surplus land/car parking offer development potential. 45 We are seeking offers in excess of 5,250,000, reflecting an attractive Net Initial Yield of 8.30%, after deducting purchasers costs at 6.60%, and a low Capital Value of per sq ft. Estimated al Value of 978, per annum which would result in a potential Reversionary Yield of 17.48%. MORRISTON GOLF CLUB MORRISTON NEATH RD. A4067 ASDA UPPER FFOREST WAY SAMLET RD. WALTERS ROAD BIRCHGROVE 44 LLANSAMLET Subject to Contract & Exclusive of VAT NEATH RD. SWANSEA ENTERPRISE PARK A4217

3 48 Gower Swansea Neath 40 Port Talbot Situation is located on the northern periphery of the well-established Swansea Enterprise Park regarded as the prime industrial location in Swansea. It is situated approximately 4 miles north east of Swansea City Centre while Junctions 44 and 45 of the motorway are located 1.5 miles to the north of the Park. The property is adjacent to a retail/leisure development that includes occupiers such as ASDA, Premier Inn Hotel, KFC, Costa Coffee and Taybarns Bridgend 35 Llantrisant 34 Cardiff International Airport Cardiff Key 1 Admiral 11 Afon Engineering 2 Arvato 12 City Centre DVLA DVLA SA1 Waterfront Mumbles Booker Cash & Carry Direct Storage Selco Bestway Cash & Carry Blakemore Cash & Carry Parcel Force 15 Liberty Stadium 16 Burger King 17 Greggs 18 Pappa Johns Pizza 19 Costa Coffee 20 Premier Inn/ Brewers Fayre 21 ASDA

4 Description occupies a site of approximately 7.61 hectares (18.79 acres) and offers a range of industrial and office accommodation. The total footprint of the existing buildings within the site totals 331,975 sq ft which provides site coverage of 37%. The site comprises one large warehouse subdivided into 3 self-contained units plus a further high bay warehouse (Unit H).The majority of industrial accommodation benefits from a good range of eaves heights, from 6 metres up to 10 metres. The industrial buildings are generally of steel portal framed construction with profiled steel cladding to the elevations and pitched roofs. We understand the buildings were developed in the early 1970 s and then refurbished in the late 1990 s. Internally each unit benefits from open plan warehouse space with level access loading door provision and integral offices/ancillary space. The office accommodation (Building D) is of steel framed construction with brick elevations. Internally there are a number of partitioned rooms offering a mix of open plan, cellular offices, laboratory space plus canteen and toilet facilities. Externally the site has generous areas of car/lorry parking and storage and is secured by a perimeter fence. In addition, the estate also benefits from CCTV coverage and a security gatehouse. N Caravan Site RIVER TAWE YARD 1 Morriston North Industrial Estate St Johns Court YARD 2 H Car Park 1 Security Hut F E G RMPU D Brewer s Fayre Car Park 2 UPPER FFOREST WAY Premier Inn ASDA Finnegans Joe s Ice Cream Parlour Papa John s Pizza Greggs Costa Unit H Units E & G Unit D

5 Tenancy Schedule Current occupational position on the estate is set out below. The property produces a current rental income of 464, per annum. The industrial areas are let at a total rent of 404, per annum which reflects just 1.37 per sq ft on let areas. Tenure Freehold Unit Tenant Area Lease Start Break Clause Lease Expiry ( p.a) (per Review p.a. ( per D Vacant 35,794 sq ft , E F G H Security Hut RMPU Morganite Electrical Carbon Ltd (MECL) Morganite Electrical Carbon Ltd (MECL) Morganite Electrical Carbon Ltd (MECL) Something Different Wholesale Ltd 96,991 sq ft 6,118 sq ft (Mezzanine) ,982 5, yearly 242, ,000 (Mezzanine) Inside Act Schedule of Condition 2.50 Yes Yes 15,207 sq ft , No 49, No Yes 116,004 sq ft , No 290, No Yes 61,011 sq ft 10 years 5 years 107, yearly 152, Yes Yes Vacant 850 sq ft Morganite Electrical Carbon Ltd (MECL) - Licence Rolling No No 331,975 sq ft 404, , Comments Detached office building in need of upgrading Fronts Upper Fforest Way so good prominence On a site of 2.5 acres Offers redevelopment potential with significant offers already received Lease guaranteed by Morgan Advanced Materials Plc (MAM Plc) Mezzanine floor used as offices at 5th year review capped at 2.50 per sq ft 6 months rent free from lease commencement Lease guaranteed by Morgan Advanced Materials Plc (MAM Plc) Rolling 3 month break after 6 months Agreed tenant works on lease expiry 6 months rent free from lease commencement Lease guaranteed by Morgan Advanced Materials Plc (MAM Plc) Rolling 3 month break after 6 months Agreed tenant works on lease expiry Includes 5,000 sq ft offices 6 months rent free from rent commencement Years 1 & 2-80,000 per annum 3 months rent free Landlord undertaking 75,000 works to building Tenant already in occupation on the basis of a previous agreement. New lease on the terms set out in the tenancy schedule is in solicitors hands. Self-contained with toilet facilities Will be vacated once 24 hour security is removed Occupied by licence MECL will demolish when fully vacated Land remaining will be outside their demise OPEN LAND Tenant Area Lease Start Break Clause Lease Expiry ( p.a) (per Review p.a. ( per Inside Act Schedule of Condition Comments Yard 1 Palmer & Harvey McLane Limited 0.34 acre , ,000 No Yes Break option is mutual 6 months notice Parking of cars, maximum of 10 HGVs and 3 trailers Power has been installed to this part of the site 2,000 per annum contribution to Service Charge Car Park 2 DVLA 0.4 acre , ,000 No Yes 0.74 acre 35,000 Rolling mutual break after 6 months 3 months notice Parking of 50 cars 1,000 per annum contribution to Service Charge Tenant has enquired about more car parking spaces In addition to the above there is an option agreement for land to the rear of the site which will offer the following: OPEN LAND Tenant Area Lease Start Break Clause Lease Expiry ( p.a) (per Review p.a. ( per Inside Act Schedule of Condition Comments Yard 2 UK Capacity Reserve Limited 0.95 acre 25 years 20 years 25,000-5 yearly CPI linked reviews 25,000 Yes No In solicitors hands Power generation reviews linked to CPI First 3 years at half rent ( 12,500 per annum) to allow for construction and taken site as seen Landlord 10,000 contribution to clearance works TOTAL RENT 464, , The vendor will top up any current rent free incentives

6 Covenant Profile Morganite Electrical Carbon Ltd (Guarantee from Morgan Advanced Materials Plc ) Morgan Advanced Materials is a global engineering company with a focus on material science and manufacturing expertise within the electronics, energy, healthcare, industrial, petrochemical, security and transport sectors. Global sales for 2015 were in excess of million and they employ circa 8,500 employees, manufacture in over 30 countries and sell into over 100 countries. Dun & Bradstreet rating of N1 and showed the following published accounts for the last three years. 31 Dec Dec Dec 2013 Sales Turnover 911, , ,800 Profit / (Loss) Before Taxes 59,000 31,500 64,000 Tangible Net Worth (80,000) (84,100) (11,400) Net Current Assets (Liabilities) 151, , ,800 P&H Palmer and Harvey is the UK s number 1 premier wholesaler, with an annual turnover of more than 4billion, serving multiple, convenience, forecourt and CTN retail outlets. Their industry-leading delivery network of 15 regional depots serves c.90,000 UK retail outlets and places Palmer and Harvey within two hours of each and every customer. A diverse fleet of over 1,300 vehicles makes more than 55,000 deliveries every week, in every UK postcode. Dun & Bradstreet rating of 5A1 and showed the following published accounts for the last three years. 04 Apr Apr Apr 2013 Sales Turnover 4,430,400 4,175,091 4,170,703 Profit / (Loss) Before Taxes 3,400 14,564 12,927 Tangible Net Worth 118, , ,268 Net Current Assets (Liabilities) 107, , ,689 Something Different UK gift wholesaler, importer and trade supplier of gifts, wholesale jewellery, novelty giftware and alternative gifts Dun & Bradstreet rating of 1A2 and showed the following published accounts for the last three years. 31 Dec Dec Dec 2012 Tangible Net Worth 1,013, , ,681 Net Current Assets (Liabilities) 1,179, , ,197 DVLA The Driver and Vehicle Licensing Agency is the organisation of the UK government responsible for maintaining a database of drivers in Great Britain and a database of vehicles for the entire United Kingdom. UK Capacity Reserve Limited UK Capacity Reserve was founded in 2014 and is a subsidiary of UK Power Reserve, the power company which works on demand side response. UK Capacity Reserve builds up power reserves which can be sold into the national grid at peak times. Dun & Bradstreet rating of H3 and showed the following published accounts for last year Mar 2015 Profit / (Loss) Before Taxes 1,988 Tangible Net Worth 2,088 Net Current Assets (Liabilities) (142,671)

7 Unit D Investment Considerations Freehold. Swansea is the second largest city in Wales and the administrative and commercial centre for West Wales. Located in the prime industrial and commercial area in Swansea. Well connected with good access to the. Significant asset management and development opportunities. Secure income on part to the strong, well established Morgan Electrical Carbon Ltd. Remaining industrial areas are let on short leases and significantly under rented. Opportunity for further sub-division which could further drive the rental tone. Service Charge benefits from a comprehensive service charge covering maintenance and repair as well as insurance which is separately accounted for. A copy of the budget is available on request. EPC EPC s are available on request. VAT The property is elected for VAT purposes and therefore it is anticipated that the sale will be treated as a transfer of a going concern. Vacant offices and surplus land offer further development potential for a variety of alternative uses. Premier Inn, Brewers Fayre, a small retail development and an Asda supermarket adjacent. Passing rent of 464, per annum with an of 978, per annum. Quoting 5,250,000 which reflects an attractive Net Initial Yield of 8.30% and a low Capital Value of per sq ft. High Reversionary Yield of 17.48%.

8 Proposal Offers are sought in excess of 5.25 million (Five Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects an attractive Net Initial Yield of 8.30% and a Low Capital Value of per sq. ft., subject to purchasers costs of 6.8% and a high reversionary yield of 17.48% after the letting of any vacant space, based on our Estimated al Value. J44 Valley Way Upper Fforest Way A4067 A4067 Further Information For further information or to arrange a viewing please contact Knight Frank: October 2016 Rob Jones Tel: rob.jones@knightfrank.com Gareth Lloyd Tel: gareth.lloyd@knightfrank.com Neil Francis Tel: neil.francis@knightfrank.com Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. Design by Martin Hopkins Partnership, Cardiff. Tel: /10/16