Parc Nantgarw TREFOREST SOUTH WALES, CF15 7QU HIGH YIELDING, HIGH QUALITY INDUSTRIAL INVESTMENT WITH ASSET MANAGEMENT OPPORTUNITIES

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1 Parc Nantgarw, CF15 7QU HIGH YIELDING, HIGH QUALITY INDUSTRIAL INVESTMENT WITH ASSET MANAGEMENT OPPORTUNITIES

2 INVESTMENT CONSIDERATIONS High quality industrial/business units situated in a prime mixed-use business location north of Cardiff city centre Located only three miles from Junction 32 of the M4 Motorway Nearby occupiers include Showcase Cinema, Makro, Peacocks, DHL Logistics and Companies House Good potential to exploit asset management angles Includes expansion land suitable for a range of uses (subject to planning) Passing income of 561,558 pa and let to the substantial covenants of GMAC, DSG and DOOSAN Asking price of 6.25M, reflecting an 8.5% net initial yield Parc Nantgarw UNIVERSITY PLAYING FIELDS The Property CINEMA HEOL CROCHENDY TO CARDIFF TO CAERPHILLY M4 Junction 32 (3 MILES) Aberystwyth A487 A44 A483 Builth Wells BIRMINGHAM A49 SEVERN ROAD TAFFS MEAD RD TAFFS FALL RD MAIN AVENUE (A4054) RIVERSIDE Train Station POWYS ROAD GWENT ROAD HEOL CROCHENDY CENTRE COURT THE WILLOWFORD MAIN AVENUE (A4054) G17 To Cardiff TO TAFFS WELL A40 Ross-on-Wye M50 A40 M5 Carmarthen A40 Gloucester A477 Merthyr Tydfil Neath A465 NEWPORT 38 SWANSEA 37 M4 Bridgend PARC NANTGARW 32 M4 CARDIFF M5 BRISTOL Swindon LOCATION The properties are situated in a prominent position on Heol Crochendy, the main road through Parc Nantgarw, an established mixeduse business location in South Wales. The business park is situated just off the which links Cardiff to Merthyr Tydfil and there is excellent motorway access, with Junction 32 of the M4 approximately 3 miles south. Parc Nantgarw is well known as an office, leisure and light industrial location on the northern fringe of Cardiff, the capital city and centre for administration and government in Wales. There are approximately 310,000 people living in the city and a further 1.2 million within a 45 minute drive time of the city centre. Office occupiers nearby include Companies House, Velindre NHS Trust and CADW, while Showcase Cinemas, Bowlplex, Nando s and Frankie & Benny s are in the immediate vicinity. Light industrial occupiers include Peacocks, DHL Logistics and Makro, proving Parc Nantgarw to be a true mixed-use business park. Cardiff city centre is located approximately 8 miles south of Parc Nantgarw and provides mainline rail services to London Paddington.

3 Parc Nantgarw HEOL Y GAMLAS Unit 6.3 Unit 6.2 Unit 6.1 MAIN AVENUE HEOL CROCHENDY AND M4 EXPANSION LAND DESCRIPTION Units 6.1, 6.2 & 6.3 Parc Nantgarw are three modern, single-storey industrial/warehouse units built in the early 1990 s. In total the three properties comprise approximately 10,044 m 2 (108,115 ft 2 ) on a gross internal basis, which excludes tenants improvements and external plant rooms etc. All the units are detached and benefit from extensive forecourt car parking, in addition to secure rear yards with loading facilities. Situated on an overall site of 3.5 hectares (8.65 acres), each unit has a significant amount of under-utilised landscaped areas, while the total area includes expansion land at the rear of Unit 6.1 comprising approximately 0.5 ha (1.25 acres) that could be developed for a range of uses (subject to planning). Each property is of steel portal frame construction, with profile steel sheeting roofs (double skinned) and elevations formed from composite cladding panels. The office element at the front of all units benefits from full height glazing and a modern office specification, while Unit 6.1 has been converted throughout to a high specification office/call centre. Approximately 10,044 m 2 (108,115 ft 2 ) Total of 3.5 hectares (8.65 acres) Expansion land of 0.5 hectares (1.25 acres) Unit 6.1 converted to B1 office use

4 Parc Nantgarw Unit 6.1 m 2 ft 2 Warehouse (converted to offices) 3,568 38,402 Ground floor offices (original) 635 6,844 1st floor offices (original) 636 6,846 Total 4,839 52,092 The warehouse has been converted to a high specification B1 office/call centre, including fully accessed raised floor, air conditioning, VDU lighting and 8-person passenger lift. In addition to the 2-storey offices at the front there is an open fronted mezzanine floor of 4,595 ft 2 (with cellular offices and canteen/break-out area), while externally there is a security gatehouse and plant rooms that comprise approximately 1,961 ft 2. The forecourt and secure side/rear yard provide 173 delineated car parking spaces. Unit 6.2 m 2 ft 2 Warehouse 2,605 28,041 Ground floor offices 200 2,151 1st floor offices 200 2,151 Total 3,005 32,343 A detached industrial unit with modern 2-storey offices at the front and a secure rear yard. The warehouse has two up and over loading doors, eaves height of approximately 6.1m, halogen lighting units and translucent roof panels. The landscaped forecourt includes 49 delineated car parking spaces. Unit 6.3 m 2 ft 2 Warehouse 1,722 18,540 Ground floor offices 241 2,594 1st floor offices 237 2,546 Total 2,200 23,680 A detached industrial unit with a clear internal height of 6.1m, two up and over loading doors and a secure rear yard. The 2-storey office at the front include plastered and painted walls, suspended ceilings, recessed lighting, carpeted concrete floors (with floor boxes), double glazing and gas central heating. The landscaped forecourt includes 32 delineated car parking spaces.

5 ASSET MANAGEMENT OPPORTUNITIES Outstanding rent review on Unit 6.1 with potential uplift of circa 80,000 pa Up to 1.25 acres of possible development land with main road frontage Re-gear options to explore with Doosan Infracore and GMAC Target known occupier requirements for the re-letting of Unit 6.2 Potential to convert Unit 6.2 to a higher value use such as an office/call centre Parc Nantgarw PROPERTY Unit 6.1 Unit 6.2 TENANT General Motor Acceptance Corporation (UK) Plc DSG Retail Limited SIZE 4,839 m 2 (52,092 ft 2 ) 3,004 m 2 (32,343 ft 2 ) LEASE START 25 June Apr 2006 LEASE EXPIRY (BREAK OPTION) 24 June 2018 (25 Dec 2011) 2 Apr 2011 (2 Apr 2009) RENT REVIEW 25 June PASSING RENT 230,000 ( 4.41 ft 2 ) 194,058 ( 6.00 ft 2 ) LEASE DETAILS Let to GMAC on an assignment, subject to a deed of variation. June 08 rent review notice has been served at 311,000 pa, equating to 5.75 ft 2. The call centre conversion was approved as a tenant improvement, so the rent review is based on industrial values. The break option is subject to 9 months notice and has recently been instigated by the tenant. A schedule of dilapidations is being prepared. THE MARKET The industrial market in Treforest was the subject of the largest ever industrial property investment transaction in South Wales, with the 60m purchase of Treforest Industrial Estate by Segro in This reinforced the area as one of the prime industrial locations in South Wales, while the adjacent Parc Nantgarw has emerged as a complimentary mixed use business park, with a diverse range of quality occupiers. Although the local market has been very active in the small/medium freehold sector over recent years, the recent financial difficulties have resulted in more companies exploring the leasehold market. Recent comparable activity in the industrial sector includes:- Imperial Park, Newport 51,500 ft 2 let in September 2008 to WH Smith on a 10-year secure term at 5.50 ft 2 Unit 6.3 TOTAL Doosan Infracore UK Ltd 2,199 m 2 (23,680 ft 2 ) 10,042 m 2 (108,115 ft 2 ) 29 Sept Sept ,500 ( 5.81 ft 2 ) 561,558 Trident Park, Ocean Park, Cardiff 21,000 ft 2 let to BSS Group in June 2007 on a 15- year term at an average rent of 5.84 ft 2 Avenue Industrial Estate, Cardiff 60,370 ft 2 let to Gardvenus Ltd in January 2007 for 10 years at 5.96 ft 2 Neptune Point, Cardiff 19,760 ft 2 let to Buck & Hickman Ltd and subject to a June 2005 rent review agreed at 5.75 ft 2

6 Parc Nantgarw COVENANT STATUS GMAC UK Plc Year Ending 31/12/ /12/ /12/ s 000 s 000 s Sales Turnover 164, , ,544 Profit / (Loss) before Taxes 7,557 (29,071) 49,823 Shareholders Funds 141, , ,595 Source: ICC GMAC is one of the world's largest financial services companies, with operations in over 40 countries. GMAC UK established its UK call centre headquarters at Parc Nantgarw during 2000 and manages automotive consumer finance deals for General Motors. This includes the Vauxhall, Saab, Chevrolet and Network Q brands, who sell through some 600 retailers across the UK. Further information is available at DSG Retail Limited Year Ending 31/12/ /12/ /12/ s 000 s 000 s Sales Turnover 4,500,903 4,203,295 4,570,601 Profit / (Loss) before Taxes 219,527 77, ,715 Shareholders Funds 933, , ,767 Source: ICC DSG Retail Ltd trade as Currys, Dixons, PC World and Partmaster Direct. DSG specialise in the sale of high technology electronic products, audio-video & personal equipment, domestic appliances, photographic equipment, communication products and related financial and after sales services. Doosan Infracore UK Ltd Year Ending 31/12/ /12/ /12/ s 000 s 000 s Sales Turnover 73,899 59,982 50,455 Profit / (Loss) before Taxes 1,785 1,111 1,497 Shareholders Funds 4,180 2,984 2,242 Source: ICC Doosan Infracore UK Ltd (previously Euro Daewoo UK Ltd) is part of the Doosan Infracore global network, who provide first-class products and services in construction equipment, industrial vehicles, machine tools, factory automation systems, diesel engines and defence systems. Further information including their annual report can be found at TENURE Freehold, subject to the occupational leases. VAT The property has been elected for VAT and the sale can be treated as a transfer of a going concern (TOGC). PROPOSAL We have been instructed to seek offers of 6,250,000 (Six Million Two Hundred and Fifty Thousand Pounds) for our clients freehold interest in the above property, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.5%, assuming usual purchaser s costs at 5.75%. FURTHER INFORMATION For further information or to arrange an inspection, please contact; King Sturge LLP, Haywood House, Dumfries Place, Cardiff CF10 3UE Jonathan Phillips Tel: jonathan.phillips@kingsturge.com Bethan Williams Tel: bethan.williams@kingsturge.com MISREPRESENTATION CLAUSE The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the Property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property. Design and print by Carrick Tel: October 2008.