LODGE FARM TRADE PARK. Barn Way and Sheaf Close, Lodge Farm Industrial Estate NN5 7UW NORTHAMPTON

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1 LODGE FARM TRADE PARK Barn Way and Sheaf Close, Lodge Farm Industrial Estate NN5 7UW H i g h l y r e v e r s i o n a r y m u l t i - l e t i n d u s t r i a l e s t a t e

2 Investment Summary Prime industrial location with excellent access to the M1 Northampton is one of the UK s most established industrial centres with industrial estates benefitting from a strategic location in the centre of England adjacent to the M1 motorway Situated 3 miles north of junction 15A of the M1, accessed via the. The estate extends to 173,243 sq ft (16,094 sq m) GIA and comprises nine units ranging from 4,429 sq ft (411 sq m) to 66,681 sq ft (6,195 sq m) A secure site extending to approximately acres (3.306 ha), which reflect a site cover of 48% The property is currently fully let to eight tenants, with a AWULT of approximately 4.49 years to expiry and 2.76 years to break Total rental income of 652,575 per annum providing an overall low passing rent of 3.77 per sq ft We are instructed to seek offers in excess of 9,815,000 (Nine Million, Eight Hundred and Fifteen Thousand Pounds), subject to contract, for the freehold interest. A purchase at this level reflects a Net Initial Yield of 6.23%, an anticipated revisionary yield of 7.26% and a low capital value of 57 per sq ft, subject to purchaser s costs of 6.70%.

3 Nuneaton Birmingham International Airport Coventry M42 M42 Rugby Birmingham Bewdley A14 A14 Thrapston A508 M45 Daventry 16 A45 M40 The town has experienced considerable economic growth over recent decades, and attracted major corporates including Travis Perkins, Barclaycard, Nationwide Building Society, Avon Cosmetics and Carlsberg UK. Bedford M1 Buntingford Sandy Biggleswade Silverstone Milton Keynes Banbury Stow-onthe-Wold Burford Bicester Aylesbury Oxford Baldock Northampton mainline railway station provides easy access to London Euston and to Birmingham New Street, both with approximate journey times of 1 hour. Airport Watford M40 Wantage Maidenhead Slough M4 Heathrow Airport UNIVERSIT Y OF The town benefits from excellent road communications being adjacent to the M1 motorway (junctions 15, 15A and 16). The M1/M6/A14 interchange is 18.5 miles to the north at junction 19 of the M1. The A45 dual carriageway which runs to the south of the town connects directly to the M42 motorway to the west and the A14 dual carriageway to the east. Rail Hatfield M25 M25 High Wycombe Stevenage A1(M) St Albans Hemel Hempstead Thame Abingdon Swindon London Luton Airport Dunstable Witney Cirencester Letchworth Luton Kidlington Northleach M1 Road Hitchin Chipping Norton Cheltenham Cricklade St Neots 15 Moretonin-Marsh Gloucester Northampton is strategically located approximately 66 miles north of Central London, 55 miles to the south east of Birmingham and 14 miles to the north of Milton Keynes. Towcester Evesham M5 Huntingdon 15A Southam Stratfordupon-Avon Location A1(M) Kettering A45 Royal Leamington Spa Warwick Redditch M6 London London Luton International Airport is approximately 37 miles to the south, Birmingham International Airport is approximately 50 miles to the north west and London Heathrow International Airport is some 67 miles to the south. BARN WAY LODGE WAY BA IL L A508 LN A4500 WEEDO A4500 D N RO A TOWN CENTRE R OAD JUNCTION 16 ES S WA Y A5123 WC NE MP CA M1 TO DA TE R A5076 A45 LL NE V A NE TO LONDON LO N D O N JUNCTION 15A A RO D A5076 A508 LO N D O N R O A D THE NORTH TER TS ING RD RD KE T ND SA N M RKET NE LN TO MA RD ES YL N RL H ORSE M A IN HA S T AN D R E W S R D M1 A45 EY W AY Situation The property is situated within the established Lodge Farm Industrial Estate two miles north west of Northampton town centre and 3 miles north of junction 15A of the M1, accessed via the. The Lodge Farm industrial area provides a broad selection of both modern and older industrial properties and major occupiers within the estate include Travis Perkins, Norbert Dentressangle, BUSINESS PARK WH Smith, Just Car Clinic and Carlton Fuels.

4 M1 - JUNCTION 16 LODGE FARM TRADE PARK TOWN CENTRE 4 4 LODGE WAY 5 BARN WAY OCCUPIERS

5 Description The estate provides access from two separate points with Lodge Farm Trade Park being accessed from Barn Way and provides eight units across three terraces. The remaining unit, occupied by Sue Ryder, is accessed via Sheaf Close. The three terraces within the main Lodge Farm Trade Park estate are of varying sizes and the two larger terraces, Unit A and B, have benefitted from a comprehensive refurbishment programme prior to the recent lettings. The terraces are specified to the following standards: A mix of brick and steel clad elevations under pitched profiled roofs Minimum of 4.7m clear eaves height to underside of the haunch All units benefit from roller shutter doors Ancillary office accommodation at ground and first floor level The Sue Ryder Unit, accessed via Sheaf Close, benefits from the following specification: Steel clad elevations under pitched profiled roofs Minimum of 6.20m clear eaves height to underside of the haunch Five roller shutter doors Ancillary office accommodation at ground and first floor level Secure fenced yard

6 Accommodation The property has been measured in accordance with the RICS Property Measurement (2015) and provides a floor area of approximately 173,243 sq ft broken down in accordance with the tenancy schedule overleaf. SITE A secure site extending to approximately acres (3.306 ha), which reflect a site cover of 48%.

7 Tenure Freehold. Tenancies The estate is fully let to eight tenants on nine separate leases. The property benefits from a weighted average unexpired lease term of 4.49 years to lease expires and years to lease breaks. The property produces a total topped-up rent of 652,575 per annum which reflects a low average rent of 3.77 per sq ft, with a significant reversion to 4.39 per sq ft. Tenancy Schedule Unit Tenant Area sq ft Lease Start Date Lease Expiry Date Break Date Rent Review Date Passing Rent pa Passing Rent psf Percentage EPC Schedule of of Income Ratings Condition 1954 Act Comments Block A S.W. Wreford Warehousing Company 32, Jan Jan Jan-2022 (Tenant) 30-Jan , % C Yes Outside If Break Option is not exercised, the passing rent will be reduced to 1.00 pa for 1 month. Lease is guaranteed by S.W. Wreford & Sons Limited. Block B Unit 16 Unit 17 Kuehne + Nagel Drinkflow Logistics Prefix Systems (South) Prefix Systems (South) 66, Feb Feb Feb-2020 (Tenant) 235, % C Yes Outside 4,429 6-Mar Mar , % No Outside 4,326 7-Oct Oct , % D Yes Outside Unit 18 A. Bell & Co 4, Mar Mar Mar-2020 (Tenant) Unit 19 Britannia Bus (South Midlands) 23, % D Yes Outside 4, Aug Aug , % D No Outside Unit 20 Plastics Express 5, Apr Apr , % C Yes Outside Unit 21 Avica UK 5, Jun Jun , % C Yes Outside Sheaf Close Sue Ryder 45, Nov Nov , % Yes Inside 173, , If Break Option is not exercised, the passing rent will be reduced to 1.00 pa for a period of 3 months, Lease guaranteed by Heineken UK Ltd. Landlord holds a rent deposit of 5,580. Stepped increase on 7 October 2018 to 19,000 pa. Vendor will provide top-up to this level. (Passing rent of 18,000 pa). Stepped increase on 17 March 2019 to 23,000 pa. Vendor will provide top-up to this level. (Passing rent of 20,000 pa). Stepped increase on 22 August 2017 to 19,000 pa. Vendor will provide top-up to this level. (Passing rent of 17,000 pa). Landlord holds a rent deposit of 6,000. Landlord holds a rent deposit of 12,852.

8 Covenant Kuehne + Nagel ( ) Kuehne + Nagel are one of the world s leading logistics providers. The Kuehne + Nagel Group have more than 1,300 offices in over 100 countries, with over 70,000 employees. The company s main business activities include air-freight, sea-freight, contract/integrated logistics and overland transport. The unit in Northampton is specifically used to serve their Heineken contract, as a 24-hour storage and distribution facility. The contract between Kuehne + Nagel Drinks Logistics and Heineken was recently renewed for a further 5 years. The lease is also guaranteed by Heineken UK Ltd, who recorded sales of in excess of bn and Shareholders funds of 937m in the financial year ending 31/12/2015. Kuehne + Nagel achieves a 77/100 FAME Credit Score, reflecting a Minimal risk of business failure, and has produced the following accounts for the last 3 years. 31/12/ /12/ /12/2013 Turnover 208,471, ,381, ,026,000 Profit Before Taxation 250, , ,000 Shareholders Funds 2,417,000 2,357,000 2,311,000 S.W. Wreford Warehousing Company Limited ( ) Wreford s Warehousing Company is the largest independent haulage company in the UK, having been in operation since The firm is now recognised as a one of the long standing independent family run transport companies in the UK with major clients including Wickes. Wreford offer a wide range of services that include distribution, transport and warehousing across the UK and Europe. The firm operate out of two units in Northampton; their other facility is located on Silvanus Park to the south west of Northampton. S.W. Wreford Warehousing Company achieves an 85/100 FAME Credit Score, reflecting a Minimal risk of business failure, and has produced the following accounts for the last 3 years. 31/12/ /12/ /12/2013 Shareholders Funds 1,658,926 1,527,940 1,439,888 The lease is also guaranteed by S.W. Wreford & Sons who provides a FAME rating of 90/100, reflecting a Minimal risk of business failure. 31/03/ /03/ /03/2014 Shareholder s Funds 1,381,704 1,207,009 1,364,383 Sue Ryder ( ) Sue Ryder is a charity which was founded in 1953 by Sue Ryder, with the creation of a nursing home in Suffolk, UK. Sue Ryder supports people with complex needs and life-threatening illnesses across the UK and internationally. The charity operates specialist palliative care centres, care centres for people with complex conditions, homecare services and a growing number of community-based services across the UK. Sue Ryder achieves a 92/100 FAME Credit Score, reflecting a Minimal risk of business failure, and has produced the following accounts for the last three years. 31/03/ /03/ /03/2014 Turnover 99,876,000 95,431,000 90,347,000 Profit Before Taxation (5,781,000) 2,043, ,000 Shareholders Funds 57,799,000 47,756,000 45,341,000 Avica UK Ltd ( ) Avica is one of the UK s leading cleaning and hygiene products distributors. Established over 20 years, Avica are based in Watford, with well stocked modern distribution centres in Kent and Northampton. Avica is a member of Jangro, recognised and is recognised as the largest and fastest growing group of independent distributors in the UK; Avica enjoys significant buying power and are able to offer a very competitive pricing proposition to complement our extensive product range and industry leading levels of service. 31/03/ /03/ /03/2014 Turnover 8,776, Profit Before Taxation 154, Shareholders Funds 213, , ,779 Prefix Systems (South) Ltd ( ) Prefix Systems was established in 1996 and has grown to become one of the UK s leading conservatory roof system manufacturers, offering a wide variety of Conservatory roof and glazing solutions. Prefix Systems also supply a range of home extension products such as Orangeries and tiled roof solutions providing exceptional thermal performance. The firm deliver to any part of mainland UK from three manufacturing sites in Lancashire, Northamptonshire and Swansea. 31/03/ /03/ /03/2014 Shareholders Funds 708, , ,543

9 Market Commentary Northampton is a large town with population of c.212,000 (census 2011) and is one of the principal industrial and logistics locations in the Midlands situated alongside junctions 15, 15a and 16 of the M1. During the first half of 2017, occupational demand has risen across the town with 775,000 sq ft of industrial floor space taken up over the period, representing a 26% increase on the same period during Lodge Farm Industrial Estate is the largest estate on the west side of Northampton and provides a range of industrial accommodation across all size ranges and has a broad occupier base from major European businesses to local SMEs. The Estate is a well-established location and the immediate area is experiencing a significant amount of residential development both currently and over the next few years with approximately 8,000 new dwellings proposed as well as an extension to the North-West Relief Road which will provide improved access to the M1 as well as other parts of the town. The improved take-up figures have taken their toll on availability and rents have been rising as a result with a recent letting on the adjacent Pentagon Park estate having been achieved at 6.25 per sq ft. Investment Market In Q investment transactional volumes were the highest recorded since Q4 2014, up 6% on the previous quarter and amounting to 1.8 billion. Despite the political instability over the past 12 months, industrial was the only sector to record above trend volume in Q with 40% above the average. The continuing positive supply/demand dynamic, lack of available land and potential for rental growth, aligned with a low interest rate environment and forecast outperformance of the industrial sector against other asset classes has caused a strong investor focus into the multi let industrial estate sector over the last 12 months. The schedule of comparable investment transactions below highlights the appetite within the current investment market for well-let estates in strategic industrial locations. Investment comparable transactions: Address Town Size (sq ft) Income Length (to break) Rent Status Achieved Price NIY Cap Val psf Purchaser Date Sold Downlands Industrial Estate Worthing 211, ,469,485 pa ( 6.96 psf) Under Offer 20,000,000 (Quoting) 6.88% (Quoting) Trinity Court Southampton 37, ,454 pa ( 7.18 psf) Under Offer 4,255,000 (Quoting) 6% (Quoting) Coleshill Industrial Park Birmingham 68, ,951 pa Sold 5,450, % LSHIM May-17 Triton Centre Romsey, Southampton 40, ,500 pa ( 6.74 psf) Sold 4,217, % Clipstone May-17 The Loddon Centre Basingstoke 113, ,795 pa Sold 11,880, % Colliers Capital Apr-17 Motorway Industrial Estate Stevenage 60, Central Estate Maidenhead 22, Cherrycourt Way Industrial Estate Leighton Buzzard 113, Bar Hill Trading Estate Cambridge 158, Woodside Park Dunstable 262, ,488 pa ( 6.77 psf) 206,561 pa ( 9.15 psf) 548,382 pa ( 4.81 psf) 374,880 pa ( 7.10 psf) 1,538,719 pa ( 6.61 psf) Sold 7,100, % DTZ Investors (PAT) Apr-17 Sold 3,400, % Amalgamated Berkshire Group Mar-17 Sold 8,600, % Canmoor Mar-17 Sold 11,600, % Legal and General Feb-17 Sold 24,200, % Knight Frank IM Jan-17

10 EPC Energy Performance Certificates are available on request and are individually summarised within the tenancy schedule. VAT The property has been elected for VAT and therefore it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC). service charge The current service charge budget for the year ending 31st December 2017 is 37,972.53, which equates to 0.22 per sq ft. Contacts Pricing We are instructed to seek offers in excess of 9,815,000 (Nine Million, Eight Hundred and Fifteen Thousand Pounds), subject to contract, for the freehold interest. A purchase at this level reflects a Net Initial Yield of 6.23%, an anticipated revisionary yield of 7.26% and a low capital value of 57 per sq ft, subject to purchaser s costs of 6.70%. Philip Colman T: E: pcolman@lsh.co.uk Miles Chuter T: E: mchuter@lsh.co.uk Charlie How T: E: chow@lsh.co.uk James Hill T: E: jhill@lsh.co.uk Subject to Contract and Exclusive of VAT Lambert Smith Hampton July Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.