Multi-let Industrial Investment Opportunity Walford Cross, Taunton, Somerset, TA2 8QP

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1 Walford Cross, Taunton,

2 INVESTMENT SUMMARY > > Multi-let industrial estate with active management potential. > > Located at Walford Cross, Taunton on the A38 and midway between junctions 24 and 25 of the M5 motorway. > > Large site of 9.5 acres with 65,989 sqft. of warehouse accommodation together with let storage land. > > Fully let to 8 tenants with a WAULT to tenant lease expiry of 5.71 years and to tenant breaks of 2.92 years. > > Currently producing a rent of 289,268 per annum which excluding the let land equates to 3.60 per sqft. Rents are considered reversionary to an estimated 318,620 per annum. > > Planning permission has been granted to develop a further 11 industrial units. > > Freehold. > > Offers in excess of 3,425,000 (Three Million Four Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. > > A purchase at this level reflects a net initial yield of 7.93% and a reversionary yield of 8.73% assuming standard purchasers costs of 6.50%. > > Underlying low capital value of 360,500 / acre overall and per sqft. on the buildings excluding the let land. 2

3 LOCATION Taunton is the county town and principle retailing and administrative centre for Somerset. Close to the M5 motorway, the town benefits from easy access via Junction 25. Paddington with a fastest journey time of 1 hour 50 minutes together with regular services to Exeter and Penzance to the south and Bristol and Birmingham to the north. DISTANCEs Bristol Exeter 51 miles 34 miles COMMUNICATIONS M5 (by car) London Paddington (by train) 1.7 miles 1h 39m Taunton is situated 51 miles south west of Bristol and 34 miles north east of Exeter. There is a mainline train station in the town centre providing direct trains to London Nearby airports include Exeter and Bristol located 31 miles to the south west and 35 miles to the north east respectively. Southampton London 85 miles 140 miles Exeter International Airport (by car) Bristol Airport (by car) 31 miles 35 miles M4 CARDIFF M4 Barry M5 BRISTOL Bristol BATH mbe Lynton Minehead Burnham-on-Sea Chedder Wells A37 A36 Frome A361 A38 M5 RNSTABLE t ton A386 A377 A361 Tiverton WALFORD CROSS INDUSTRIAL PARK TAUNTON 25 BRIDGWATER A303 M5 A358 Ilminster Glastonbury A39 YEOVIL A37 A303 WALFORD CROSS INDUSTRIAL PARK A38 A38 A361 EXETER M5 Honiton Axminster A30 A35 Exeter International Seaton Airport Sidmouth Bridport DORCHESTER PRIORSWOOD A3259 PRIORSWOOD RD A3 8 A380 EXMOUTH WEYMOUTH 3 ck verton Newton Abbot SITUATION Teignmouth The estate is situated at Walford Cross located between Taunton and North Petherton at the junction of the A38 Taunton to Bridgwater Road and the A361 to Street. The estate is approximately midway between junctions 24 & 25 of the M5 and easily accessible via the A38. The estate faces onto the M5 motorway and has high visibility. Nearby occupiers include Somerset Caravan Sales and Bigwood Agri suppliers. A38 A3027 A358 TONEWAY TAUNTON M5 JCT25 A358 A358

4 Multi-let INVESTMENT SUMMARY LOCATION & SITUATION DESCRIPTION & TENURE TENANCIES COVENANT STRENGTH ASSET MANAGEMENT & DEVELOPMENT To the south is a material recycling facility operated by Somerset Waste Partnership. This comprises secured and surfaced land with a separate entrance together with various porta cabins and steel portal framed canopied areas which have been installed by the tenant. To the north are the original cold storage buildings which have been subdivided to provide 5 separately let warehouse / industrial units. 1 A36 Typically, the construction is steel portal frame, with concrete flooring together with metal clad insulated walls and roof. Internally there is either sodium or strip florescent strip lights with eaves heights ranging from 4.5 to 6.4metres. The majority of the units have ancilliary office accommodation. Unit 4A operated by Bidvest remains a chilled storage facility and has 8 dock level doors. Part of Unit 1 let to Noble foods is also a chilled storage facility and Unit 1 in total has 8 dock level doors. Access to the other units is via surface level roller shutter doors. Taunton Fabrications Chipmunk SW (3&4) To the north east of the site is a storage land area currently occupied by Taunton Fabrications. Planning permission has been granted to develop a 6,880 sq ft unit on this area. St Margarets (1) Noble Foods (Bays 7&8) AP Broom Tenure (4a) SERVICE CHARGE, EPC, VAT & PROPOSAL The property was originally a single occupier cold storage facility occupying a large site of around 9.5 acres. Access is provided from the A38 via side road to the site entrance which has a security hut and canterlever access gates. The central area is of concrete and hard standing providing circulation space, vehicle wash facilities and car parking for the tenants. To the east of the central area is the location for a proposed small unit industrial development. WALFORD CROSS ROADS BFS INDUSTRIAL MARKET DESCRIPTION The property is held freehold and extends in total to 9.5 acres. WALFORD CROSS INDUSTRIAL PARK FURTHER INFORMATION Somerset CC Gas Pressure Station Area : acres (3.864 ha) 4 0m 25m 50m 75m 39.0m Telecommunication Mast

5 TENANCIES The property is fully let to 8 tenants with a WAULT to tenant lease expiry of 5.71 years and to tenant breaks of 2.92 years. Currently producing a rent of 289,268 per annum the rents range from 2.88 per sq. ft. on unit 1 to 8.15 per sq. ft. on the refrigerated Noble foods unit. Overall, excluding the let land the rent equates to 3.60 per sq. ft. We are of the view that the rents are reversionary and have attributed 3.25 per sq. ft. on the larger units together with 35,000 / acre for the let land which produces an estimated reversionary rent to 318,620 per annum. Building BUILDING Land Tenant tenancy Tenancy Break Rent Outside Rent Rent ERV ERV Additional Info sq Ft Acres S start End review LL&T ACt psf/acre psf Building 2 1,617 - A P Broome Landscapes Ltd 21/11/16 20/11/21 21/11/19 21/11/19 Y 7, ,002 6 months notice tenant only break. Unit 1 22,592 - St Margarets Somerset Hospice Ltd 01/07/16 30/06/26 01/07/21 01/07/21 N 65, ,424 6 months notice tenant only break. Part of Unit 1 3,682 - Noble Foods Ltd 29/05/17 28/09/ Y 30, ,008 Refigerated unit loading bays 7&8 Substation - - Western Power Distribution 22/12/94 23/12/ P corn Unit 4A 6,588 - BFS Group Limited 31/05/17 24/03/ Y 36, ,234 Refigerated unit. Land Somerset County Council 11/11/08 10/11/28 31/10/18 11/11/18 Y 46,550 28,264 35,000 57,645 Tenant has requested lease regear for 31/10/23 3 years term. 9 months notice for tenant break, Landlord can break if demonstrates intention to redevelop Telecoms Mast - - Arqiva 26/04/17 25/04/27-26/04/22 N 5, ,750 Rent is reviewed to the greater of rpi or OMV Buildings 3&4 & yard 31,510 - Chipmunk South West Ltd 30/09/16 29/09/21 30/03/19 - Y 93, ,408 Mutual break on 6 months notice. Unit 4 is sub-let to Taunton Fabrications Ltd North storage yard Taunton Fabrications Ltd 01/02/17 31/01/ Y 5,400 6,585 7,500 6,150 65, , ,620 5

6 COVENANT STRENGTH Noble Foods Limited: Experian Credit Score 100 Very Low Risk UK s leading supplier of fresh eggs to the major retailers handling approximately 60million eggs every week. 000s sept 2016 Sept 2015 Sept 2014 AP Broome Landscapes Limited: Experian Credit Score 99 Very Low Risk AP Broomes specialize in hazardous area ground maintenance, such as gas and electricity substations, thoughout the UK. Turnover 309, , ,617 dec 2016 Dec 2015 Dec 2014 Pre-Tax Profit 18,706 9,098 18,706 Net Worth 1,499,363 1,447,854 1,405,149 Net Worth 62,261 62,058 57,652 Taunton Fabrications Limited: Experian Credit Score 98 Very Low Risk BFS Group Limited: Experian Credit Score 100 Very Low Risk Established in 1992, Taunton Fabrications is a leading supplier of architectural metalwork in the South of England. June 2016 June 2015 March 2014 A UK based foodservice wholesaler and distributor operating as Bidfood and Bidvest Logistics, as well as several local divisions/brands. Net Worth 1,598,460 1,058, , s June 2016 June 2015 June 2014 Turnover 2,514,805 2,367,675 2,233,577 Pre-Tax Profit 38,853 34,733 32,592 Net Worth 131, , ,102 Chipmunk South West Limited: Experian Credit Score 15 Chipmunk specializes in the manufacturing of high quality animal bedding specifically for the equestrian and agricultural markets. June 2016 June 2015 March 2014 Net Worth - 320, , ,859 St Margarets Somerset Hospice: Experian Credit Score 100 Very Low Risk Somerset Charity operating in excess of 37 years delivering high quality care to patients and their families who face life limiting illness. Somerset County Council: Covenant Strength Excellent 6 March 2016 March 2015 March 2014 Pre-Tax Profit 341, ,967 1,339,508 Net Worth 16,555,855 16,267,082 16,019,115 Somerset County Council Operating as Somerset Waste Partnership the organisation manages waste services on behalf of Mendip, Sedgemoor, South Somerset, Somerset, Taunton Dean and West Somerset Councils. As a local authority the covenant strength is considered excellent.

7 Multi-let INVESTMENT SUMMARY LOCATION & SITUATION DESCRIPTION & TENURE Asset Management & Development Opportunities There are a number of initiatives, which will improve the rental income of the asset and result in capital improvements; >> Develop a new 6,880 sq ft unit on the north storage yard. Planning permission has been granted ref14/17/0020. >> Develop a terrace of 10 starter units in the middle of the estate and to extend in total to 6,850 sq ft. Planning permission has been granted ref14/17/ A36 >> Improve the signage and common areas of the estate via the service charge. ITE TH S NOR ING 1 D IL U B >> Proactive lease renewals and rent reviews from the current low passing rents. >> Longer term development potential on the land currently occupied by the Somerset Waste Partnership. TENANCIES COVENANT STRENGTH ASSET MANAGEMENT & DEVELOPMENT INDUSTRIAL MARKET SERVICE CHARGE, EPC, VAT & PROPOSAL FURTHER INFORMATION Proposed Building Provision North Site Building 1 Unit 11, 639.5m² GIA, Open Plan Unit ITE TH S SOU DING 2 IL U B The proposal on this site is for a single B8 unit. The front of the building is orientated South towards the existing access. The proposed use of profiled roofing sheet and concrete block walls will allow for an attractive, traditional rural style building sitting well within the site, utilising existing established trees to provide screening to the development. Gas Pressure Station Proposed Building Provision South Site Building 2 Units 1-10, 53.7m² GIA, Open Plan Units with WC/Kitchenette (Office Optional) 7 The proposal on this site is for a single building containing 10 smaller industrial units. The front of the building is orientated North towards and into the existing industrial site. The proposed use of profiled cladding to the walls and roof will allow for an attractive, modern building sitting well within the site, utilising existing established trees to provide screening to the development. Not to scale, for illustrative purposes only

8 Taunton Market The south west industrial market is characterized by a severe lack of available industrial and warehouse space with significant tenant demand which is having a very positive effect on rental growth. In Taunton itself, demand is typically for units in the sub 20,000 sq. ft. category, with very little existing supply resulting in unsatisfied latent demand. By way of example at Westpark 26, a small unit scheme of 14 units has recently been developed with 75% prelet or sold before the start of construction. Prime rents in the area are 7.50 per sq ft with per sq ft+ being achieved for trade counter uses. Recent investment comparables in the wider area include; Days Road, Bristol Multi-let estate of 6 units extending to 15,644 sq ft producing 99,568 per annum sold for 1,485,000 reflecting a net initial yield of 6.32% Skyways, Exeter Airport Business Park Multi-let 14 unit estate extending to 21,090 sq ft with an estimated reversion of 138,620 per annum (on letting four vacant units). Rumoured to be under offer at in excess of 2,000,000 reflecting a reversionary yield of 6.52%. Units 9-12 Ashchurch Estate, Tewkesbury 4 units extending to 31,150 sq ft currently producing 162,625 per annum equating to 5.22 per sq ft. Rumoured to be under offer at around 2,375,000 reflecting a net initial yield of 6.44%. 8

9 SERVICE CHARGE All tenants contribute to an estate service charge further details available on request. EPC RATINGS UNIT TENANT Rating Building 2 AP Broome Landspaces E101 Unit 1 St Margarets Hospice D84 Part Unit 1 Noble Foods d92 Unit 4a BFS Group d95 Unit 3 Chipmunk C70 Unit 4 Chipmunk C70 VAT The property is elected for VAT and therefore VAT will be chargeable on the purchase price however we anticipate that the sale will be structured by way of a transfer of a going concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 3,425,000 (Three Million Four Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects; > > Net initial yield % > > Reversionary yield % > > Capital value per acre - 360,500 9 > > Capital value per sq ft (excluding the let land) Assumes standard purchasers costs of 6.50%.

10 further information For further information or to arrange an inspection please contact; Mark Johnson James Cuthbert MK2 Real Estate Ltd Maddox House, 117 Edmund Street, Birmingham B3 2HJ Tel: Mark Rooke IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal ( information ) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.these matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: JANUARY