A.F. BLAKEMORE AND SON LIMITED UNITS 8, 9 & 10, BLOXWICH LANE, WALSALL, WS2 7JU

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1 REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY A.F. BLAKEMORE AND SON LIMITED UNITS 8, 9 & 10,

2 INVESTMENT SUMMARY Walsall is an established industrial location at the heart of the Midlands with excellent motorway connections providing direct access onto Junction 10 of the M6 linking up to the M6 Toll Prominently positioned on Bloxwich Lane, which connects to the A454 dual carriage to the south, linking Walsall to Wolverhampton Within close proximity of a number of major industrial estates including Maple Leaf Industrial Estate and Bentley Lane Industrial Estate Three units comprising steel portal framed bays of brick wall construction with profile sheet cladding roofing. The property benefits from a canopy entrance, 67 space surface car park and a separate secure HGV parking/loading area The property extends to a gross internal area of 76,853 sq ft Site area of approximately 2.69 acres Single let to A.F. Blakemore and Son Limited on a low passing rent of 250,000 per annum which reflects a rent of 3.25 per sq ft with an unexpired term of 2.0 years For the year ending 2016 A.F. Blakemore and Son Limited reported a turnover of 1.31 billion and a net worth of million The Tenant has been in occupation for over 30 years operating the unit as a wholesale warehouse of food, beverages and tobacco Highly reversionary to an estimated 288,198 per annum, equating to 3.75 per sq ft. Freehold Various asset management opportunities which include a potential re gear, re let or redevelopment We are instructed to seek offers in excess of 2,700,000 (Two Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 8.7% after allowing for purchasers costs of 6.4% and a reversionary yield of 10%. A purchase at this level would show a low capital value of 35 per sq ft.

3 Rugeley A34 M6 A460 A51 Cannock A449 M6 Toll M54 A41 UNITS 8, 9 & 10 Wolverhampton A454 A4123 A41 A34 A452 Walsall Lichfield A5 M6 Toll Sutton Coldfield A38 A38 Tamworth M42 A5 A444 LOCATION The property is located approximately 2 miles north west of Walsall, in the heart of the Midlands. Bloxwich Lane is a well established industrial area, home to several incumbent industrial and distribution occupiers. Major occupiers in the vicinity include, Brownhills Glass, Wienerberger and Interserve. The area provides good access to the A454 Wolverhampton Road which in turn links directly into Walsall. Walsall is served by an excellent motorway network, with Bloxwich Lane only ½ mile from Junction 10 of the M6 motorway. The M6 connects to the M5 and M6 toll, linking to the M42, M40 and the wide National Motorway Network. Walsall benefits from the London Midland train service from Walsall town centre, offering a direct regular service from Birmingham New Street station with an approximate journey time of 23 minutes. Dudley A34 M6 Birmingham International Airport lies 19 miles south east of Walsall, enhancing the Towns connectivity appeal. A458 Birmingham Warehouse SITUATION Warehouse Towing Path WB Garage 460 Anson Branch Drain Wolverhampton Road The property fronts Bloxwich Lane close to its junction with the A454 dual carriageway. The site is strategically positioned within The Bloxwich Lane Estate, a multi-tenanted industrial and trade-counter business park. The property is situated within a prominent residential and business area with a number of mixed-used estates in the locality, including Maple Leaf Industrial Estate and Bentley Lane Industrial Estate. There are planned major road improvement works to Junction 10 of the M6 which in turn will greatly benefit the sites long-term connectivity appeal given its close proximity. The scheme is set to commence in 2018 with practical completion forecasted for Anson Bridge Location Distance (miles) M6 Junction Walsall Town Centre 2.0 Wolverhampton 6.2 Location Distance (miles) Sutton Coldfield 9.5 M6 Toll 12 Birmingham City Centre 13

4 DESCRIPTION The property consists of three units each of steel frame construction, which have been converted by the tenant into one space to benefit the tenants business operation. The units have brick walls with profile sheet cladding roofing. The accommodation is predominantly spread across the ground floor with the benefit of a mezzanine floor to the front of the property consisting of partitioned offices. A customer surface car park is situated at the southern part of the property with a HGV parking/loading area to the north of the property accessed through The Bloxwich Lane Estate. The unit benefits from 2 HGV loading bays, located to the front and rear of the property, accessed via manual roller shutters. The rear loading bay is also governed by a portercabin style gatehouse. The Tenant has made a number of alterations dated back to their early years of occupation, which are documented under three licences. Further features of the unit specification consists of the following: Internal syphonic drainage Fluorescent High Bay Warehouse lighting Parametric blower heating/cooling system ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides an approximate gross internal floor area of 76,853 sq ft, with a minimum eaves height of 6 metres. The site extends to a total area of approximately 2.69 acres giving a site cover of 65%. The property provides the following approximate gross internal floor area: Use Sq m Sq ft Ground Floor Offices 137 1,476 Warehouse 6, ,705 Mezzanine ,672 Total 7, ,853 GROUND FLOOR

5 TENURE Freehold TENANCY DETAILS The property is let on full repairing and insuring terms under two coterminous leases inside the 1954 Act to A.F. Blakemore and Son Limited to expire on the 30th April The tenant has been in occupation for over 30 years. The total passing rent is 250,000 per annum which equates to a low rent of 3.25 per sq ft. A copy of the leases and licences are available upon request. TENANCY COVENANT A.F. Blakemore and Son Limited are a non-specialised wholesale of food, beverages and tobacco group, engaged in wholesale and retail distribution of grocery products. The company employs more than 8,100 people with a turnover of 1.31 billion. Aside from the wholesale business, A.F. Blakemore & Son Ltd is the largest division of SPAR UK convenience grocery stores, owning 300 SPAR stores and serving more than 1,000 in total across England and Wales. The Bloxwich Lane unit covers the full geographic region of the Greater West-Midlands, to include Walsall, Wolverhampton, Birmingham and beyond. The most recent audited accounts are summarised below: Year Turnover (000 s) Pre-tax profit (000 s) Net worth (000 s) ,306,165 7,603 63, ,275,954 9,011 62, ,191,658 7,603 60,495 The company holds a 5 A1 Dun & Bradstreet (D&B) rating which represents a minimum risk of business failure.

6 ERV & COMPARABLE EVIDENCE We consider the units to be reversionary to 3.75 per sq ft based upon the following evidence: Address Tenant Size (sq ft) Term Rent (psf) Date Unit 12/13 Maple Leaf Industrial Estate Dutchpro UK Ltd 8, years (5 year break) 4.00 Nov-16 Unit 16 Maple Leaf Industrial Estate Black Country Greetings 5,255 5 years 4.44 Oct-16 Unit 4, Meteor Park, Meteor Way, Birmingham Toyota Tsusho Assembly Systems (UK) Ltd 58,609 7 month assignment 5.04 Jun-16 Former EDS Couriers Building, Delta Way, Bridgtown, Cannock Gentili UK Ltd 22, years (5 year break) 3.65 Jun-16 Unit 1, Tyburn Road, Birmingham SK Food and Drinks 27,038 5 years 5.00 May-16 Unit 16, Watling Street, Cannock Professional Freight Solutions Ltd 48,632 3 years 3.00 Feb-16 INVESTMENT EVIDENCE Relevant investment transactions are set out below: Address Tenant Rent Unexpired Term Price NIY Date Brickyard Road, Aldridge Muller years Q.3.025m 7.76% Available Well Lane, Wednesfield Air Space years 4m 7.27% Jan Coventry Business Park, Dolomite Business Park Canute UK Ltd years 5.25m 7.27% Dec-16 Centrum 100 Burton Upon Kings Road Tyres and Repairs Ltd years 7.06m 6.77% Oct-16 Unit 302 Relay Park, Relay Drive, Tamworth Schenker Ltd years 4.65m 5.65% Jun-16 Brockhurst Crescent Tata Steel UK and Micheldever Tyre years 3.85m 9.90% Dec-15

7 UNITS 8, 9 & 10

8 EPC D A copy of the EPC is available upon request. VAT The property is elected for VAT, it is therefore anticipated that the transaction will be treated as a transfer of going concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 2,700,000 (Two Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 8.7% after allowing for purchasers costs of 6.4% and a reversionary yield of 10%. A purchase at this level would show a low capital value of 35 per sq ft. CONTACTS Tom Bridgman tom.bridgman@avisonyoung.com Liam Taylor liam.taylor@avisonyoung.com David Tew david.tew@avisonyoung.com Important Notice 1. No description or information given about the property or its value, whether written or verbal or whether or not in these particulars ( information ) may be relied upon as a statement of representation or fact. Avison Young do not have any authority to make any representation and accordingly any information given is entirely without responsibility on the part of Avison Young or the seller/lessor. 2. Any photographs (and artist impressions) show only certain parts of the property at the time they were taken. Any areas, measurements or distances given are approximate only. 3. 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/lessee. 4. Any buyer/lessee must satisfy himself by inspection or otherwise as to the correctness of any information give. April Designed & Produced by CORMACK