WESTGATE ALDRIDGE WS9 8YH

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2 INVESTMENT SUMMARY Aldridge is located in a major industrial conurbation, 11 miles north of Birmingham City Centre. Substantial detached unit refurbished in 2008, providing for 186,862 sq ft. Total Rent Passing of 538,112 per annum equating to 3.30 psf, which offers a low rental base. Estimated Rental Value of 612,221 per annum reflecting 3.75 psf. In excess of 7.5 years term certain to Greenstar Environmental Ltd, guaranteed by Biffa Waste Services Ltd. Opportunity to re-gear lease with tenant to achieve a 15 year term certain. Offers in excess of 6,165,000 which is a net initial yield of 8.25%, and a reversionary yield of 9.39%. Low Capital Value of psf.

3 A34 M6 TOLL (T6) BROWNHILLS / LICHFIELD M6 TOLL (T6) A5 LICHFIELD M6 M54 WOLVERHAMPTON A34 M6 M4 TOLL A461 WALSALL A452 M4 TOLL A5 TAMWORTH A461 WINTERLY LANE BARNS LANE WESTPOINT WEST GATE STUBBERS GREEN ROAD B4154 WHARF APPROACH LEIGHSWOOD ROAD DUMBLEDERRY LANE MIDDLEMORE LANE M5 WEST BROMWICH A34 M6 SUTTON COLDFIELD A452 A38 M4 TOLL M42 M6 (J10) B4154 MIDDLEMORE LANE WEST A454 TINTAGEL WAY TO WALSALL M5 BIRMINGHAM WEST GATE M6 (J10) LocAtion Aldridge is a major industrial conurbation in the West Midlands. Located 11 miles north of Birmingham City Centre, 5 miles east of Walsall and 9 miles south of Lichfield. The town is served by several A roads, which provide links to the M6 and M42 motorways. In addition the M6 (Toll) motorway passes four miles to the north of Aldridge, and provides an alternative route to the main motorway network. DAW END BRANCH SituAtion The property is situated on the southern side of Westgate. Westgate joins the Dumblederry Lane to the east, which leads to A454 Walsall Road/Aldridge bypass. Other major occupiers in the area include Ibstock Brick, GKN, British Oxygen and Anglo Overseas.

4 Description The property is a substantial detached unit which was originally constructed in The property has undergone a series of refurbishments over the years with the latest being in 2008, when our clients spent approximately 1 million on the following:- The side and rear elevations were taken back to the frame, and new cladding was installed. The offices were refurbished to include new carpets, new ceilings, fittings, services, kitchenette, W.C. s, and doors. New enlarged side loading doors. New yards to the side and rear. The property has a steel portal frame production/warehouse facility with brick and cladding elevations. The front office element has been refurbished and provides the administration function for the current tenant. The side office element has been effectively stripped back and de-rated albeit, within the tenant s demise. The property provides for:- Vehicular access via four new roller shutter doors. Accommodation We have been provided with the following Gross Internal Areas; FLOOR USE SQ FT SQ M Ground Floor Warehouse (ancillary) 160,340 14, Mezzanine Storage 1, First Floor* Offices 11,541 1, Second Floor* Offices 11,541 1, Vehicle Wash house Wash House 2, TOTAL 186,862 17, *These areas are demised to the tenant but not rentalised as set out under the Tenancy Section. Site The site comprises of approximately hectares (9.137 acres) which represents a site cover of approximately 41%. Tenure The property is held Freehold. Fully fitted offices to the frontage and lighting to the warehouse. Extensive yards and separate car parking.

5 estimated RENTAL VALUE The letting to Greenstar Environmental Ltd was agreed in late 2008 at 3.30 psf.we would consider the rent to be reversionary, and still offers a low base for rental growth. We would consider the property to have a rental value of 612,221 per annum which is 3.75 psf. covenant INFORMATION On 6th August 2010, Montagu Private Equity and Global Infrastructure Partners (via WasteInvestments LLP) completed their acquisition of 100% of the ordinary share capital of Greenstar Holdings Limited from NTR Plc. Following authorisation by the European regulatory authorities, the company became part of Biffa Group with the lease now being guaranteed by Biffa Waste Services Ltd. Completion of this transaction paved the way for a deal that could see Biffa become the UK s second largest waste company. We set out below the accounts for the tenant and the guarantor; tenancy The property is let on a full repairing and insuring lease (subject to a schedule of condition which is available upon request) to Greenstar Environmental Ltd for a term of 10 years from 29th January 2009, expiring on 28 January The rent is subject to 5 yearly upward only rent reviews, with the next being due on 29 January The tenant has an option to renew for a further 10 years at lease expiry. The office element (marked * on the accommodation schedule) is demised to the tenant but not rentalised. The tenant is responsible for keeping this area wind and water tight. In the event of the tenant requiring this space for occupation, then a market rent for the premises will need to be agreed, and included into the current lease. The lease is guaranteed by Biffa Waste Services Ltd. The current rent passing is 538,112 per annum which equates to 3.30 per sq ft. Greenstar Environmental Ltd DATE OF ACCOUNTS 31 MARCH MARCH MARCH 2008 Turnover 62,798,000 48,662,000 38,195,000 Pre-tax Profits / (Loss) ( 4,950,000) ( 4,518,000) ( 1,365,000) Tangible Net Worth 612,000 3,903,000 6,667,000 Biffa Waste Services Ltd DATE OF ACCOUNTS 02 APRIL APRIL APRIL 2008 Turnover 491,800, ,800, ,900,000 Pre-tax Profits / (Loss) 30,400,000 49,800,000 23,400,000 Tangible Net Worth 548,000, ,000, ,500,000 Dunn & Bradstreet have given Biffa Waste Services Ltd a rating of 5A1 which indicates Low Risk potential.

6 environmental Prior to our clients acquiring the site URS conducted a Phase II Environmental Assessment. This report is available upon request and ultimately is capable of assignment. The report highlights a number of considerations regarding the ground structure and the surrounding area, but ultimately states that the existing use is fit for purpose. ASSet MANAGEMENT OPPORTUNITIES Prior to occupation of the unit the tenant, Greenstar (now Biffa) applied for a requisite license from the Environment Agency which they successfully obtained. This license is personal to the tenant and the site only and cannot be transferred to another site. The license has an EWC Code which states that the applicant can receive 300,000 tons of waste per year to the subject site. On occupying the unit in 2009, Greenstar carried out works including the installation of specialist machinery at a total cost of 7.5 million. Subsequent to this, a glass manufacturing plant was installed taking the total spend by the tenant to 10 million. Prior to the acquisition of Greenstar by Biffa, terms had been agreed with Greenstar for a new 15 year lease. This transaction stalled while the acquisition of Greenstar by Biffa was concluded. There is no intention by Biffa to revive the transaction at present, but given the costs associated with the initial fit out, and the specialist license that they hold which is site specific to the operator, we are of the opinion that the opportunity to re-gear the lease in the future is a realistic proposition. VAt The property is elected for VAT, and it is intended that the transaction will be treated as a TOGC. proposal We are seeking offers in excess of 6,165,000 which reflects a net initial yield of 8.25%, and a reversionary yield of 9.39% after purchaser s costs of 5.80%. A purchase at this level reflects a low capital value of psf. contact For further information, or to arrange an inspection, please contact: Ben Goodberry Tel: Mob: bengoodberry@tudortoone.com Alastair Tyrrell Tel: Mob: alastairtyrrell@tudortoone.com

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