UNITS PRIME WEST LONDON REVERSIONARY INDUSTRIAL INVESTMENT ACTION COURT ASHFORD LONDON TW15 1XS

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1 PRIME WEST LONDON REVERSIONARY INDUSTRIAL INVESTMENT

2 INVESTMENT SUMMARY. Prime West London industrial investment located 3 miles (5km) south of Heathrow Airport. Ashford has excellent connectivity to the M25, M3 and M4 motorways. Two well specified detached warehouse units extending to 51,192 sq ft (4,756 sq m). Total site area of 1.07 hectares (2.65 acres) offering a low site density of 44%. The units are let to Geodis Wilson UK Limited by way of two FRI leases expiring on 6 January Current passing rent of 550,000 pax reflecting a low average passing rent of psf offering excellent rental growth prospects. ERV of 588,708 pax ( psf). Frhold. e e Short term asset management opportunities to capture imminent reversion. We are instructed to sk offers in excess of 8,950,000 (Eight Million, Nine Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 5.75%, a reversionary yield based on our ERV of 6.18% and a capital value of 175 per sq ft, assuming purchasers costs of 6.68%.

3 LOCATION. Ashford is located in the London Borough of Spelthorne approximately 17 miles (27 km) west of Central London and 3 miles (5 km) south of Heathrow Airport. The town has a resident population of 27,382 (2011 Census). Ashford benefits from excellent communication links being situated 4 miles (6.5 km) east of junction 13 of the M25 motorway. The town is also 2 miles (3 km) west of junction 1 of the M3 motorway and 5 miles (8km) south of junction 3 of the M4 motorway. Ashford railway station provides direct rail services to London Waterloo with a fastest journey time of approximately 38 minutes. The Heathrow Express service at terminal 4 offers direct services to London Paddington with a fastest journey time of 15 minutes. The local economy is dominated by the close proximity of London Heathrow Airport. In 2015 the Airports Commission recommended the expansion of Heathrow with a third runway. Whilst the location of the new runway will not impact on the property its proposed construction is likely to have significant positive economic benefits to the town. Slough Windsor M4 A4 M25 A3044 Hayes M4 HEATHROW AIRPORT A312 A312 Southall Hounslow A4 M4 Richmond A406 A307 A40 A205 A308 A501 LONDON A3212 A3205 A23 13 Egham M25 A30 A308 1 A316 A308 Twickenham A3 A306 A214 A23 M3 12 Chertsey M3 Walton-on-Thames Surbiton New Malden Mitcham M25 Weybridge A3 A240 A24 A217 Sutton A232 A23

4 SITUATION. Action Court fronts directly on to the B378 Ashford Road which provides a direct link to the A308 Staines Road West approximately 0.5 miles (1.0 km) to the North West. The A308 then provides direct access to junction 1 of the M3 motorway approximately 1 mile (2 km) to the east and junction 13 of the M25 approximately 4 miles (6 km) to the North West. The surrounding area is a mixture of commercial and residential uses. B389 M25 12 M25 13 B376 Wraysbury Reservoir A30 THE CAUSEWAY M25 STAINES UPON THAMES THORPE THORPE ROAD WRAYSBURY RD EGHAM HYTHE NORLANDS LANE B388 STAINES BYPASS CHERTSEY LANE LALEHAM ROAD ST AINES ROAD King George IV Reservoir LONDON RD KINGSTON ROAD M3 A3044 A3044 STANWELL MOOR ROAD A308 WORPLE ROAD STAINES ROAD Staines Reservoir B378 TOW N R OAD A30 LONDON ROAD A30 STAINES BYPASS KINGSTON ROAD SOUTHERN PERIMETER ROAD ASHFORD ROAD BEDFONT ROAD B378 STANWELL RD B376 B376 LITTLETON LANE FORDBRIDGE RO AD A308 Qun Mary Reservoir LITTLETON Bedford Lakes Country Park CHURCH RD HEATHROW AIRPORT ASHFORD CLOCKHOUSE LANE SCHOOL ROAD KINGSTON ROAD A308 NEW ROAD STANWELL RD FELTHAM HILL ROAD A30 GREAT SOUTH-WEST RD FELTHAM ROAD CHARLTON ROAD BE DFONT ROAD HATTON ROAD Sunbury Golf Course B376 B377 CHERTSEY ROAD ASHFORD COMMON M3 A244 A244 A244 STAINES ROAD VICARAGE ROAD HALLIFORD ROAD FORDBRIDGE ROAD FELTHAM 1 GREEN STREET A422 SNAKEY LANE A317 BRIDGE ROAD CHERTSEY ROAD RENFREE WAY B375

5 DESCRIPTION. The property comprises 2 detached warehouse buildings separated by a secure concrete surfaced loading yard. The units are of stl portal frame construction with profile metal clad elevations to the side and rear and glazed/red brick elevations to the front. The warehouse areas in each unit are arranged in an L shape configuration and have a minimum eaves height of 6.3m rising to 8.68m at the apex. The warehouse accommodation incorporates translucent rooflights, gas fired hot air blowers, 3 electrically operated loading doors and a canopied loading area. Located to the front of the units are 2 storey amenity blocks which are fitted out to provide offices, WC s and staff facilities. The offices are fitted out to include carpeting, suspended ceilings with recessed lighting, perimeter trunking and comfort cooling and double glazed window units. The two units are divided by a concrete surfaced loading yard and there is an additional loading yard to the side of unit 1. To the front of both of the units there are brick paved parking areas.

6 ACCOMMODATION. The property was measured in accordance with the RICS Code of Measuring Practice (6th Edition) and has the following gross internal floor area: Accommodation Area (sq m) Area (sq ft) Unit 1 Action Court 2,366 25,468 Unit 2 Action Court 2,390 25,724 TOTAL 4,756 51,192 TENURE. Frhold. LITTLETON COMMON

7 TENANCY. Units 1 and 2 Action Court are let to Geodis Wilson UK Limited under two co-terminous full repairing and insuring leases expiring on 6 January 2020 providing an unexpired term of approximately 2 years and 3 months. The rent reserved under each lease is 275,000 pax providing a total passing rent of 550,000 pax which equates to per sq ft overall. Both leases contain tenant only options to break on 7 January 2019 operable by the tenant providing a minimum of 6 months written notice. In the event the tenant does exercise either option to break they receive a rent fr period of 1 month. Geodis Wilson UK Limited have vacated unit 2 Action Court and are in the process of subletting the ground floor offices and warehouse to VIP UK Trading Limited. The first floor offices of unit 2 have bn sublet to Sims Recycling Limited. Further information on the two subleases are available upon request. Unit Tenant GIA (sq ft) Lease Start Lease End Tenant Break Rent (pa) Rent (psf) ERV (pa) ERV (psf) 1 Action Court Geodis Wilson UK Limited 25,468 07/01/ /01/ /01/ , , Action Court Geodis Wilson UK Limited 25,724 07/01/ /01/ /01/ , , Total 51, , ,

8 COVENANT. Geodis Wilson UK Limited are part of SNCF Logistics, which in turn is a business line of the SNCF Group, who are the number one Transport and Logistics operator in France and ranked number four in Europe. SNCF Logistics has a direct presence in 67 countries and a global network spanning 120 countries. The SNCF Group has an annual turnover of Bn and is ultimately owned by the French Government. In the UK Geodis Wilson UK Limited have 21 offices and 2 warehouses. The company employs 709 staff in the UK and has five principle business lines namely Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution and Road Transport. Further information on the company can be found at the website Geodis Wilson UK Limited (company registration number ) last thr years audited accounts are summarised below: VIP UK Trading Limited (company number ), is a Chinese based e-commerce company utilising the website The company was founded in December 2008 and was listed on the New York Stock Exchange in March VIP are the third largest e-commerce site in China and have a current market capitalization of $5.35Bn (Source Reuters). VIP UK Trading Limited, was incorporated on and therefore no formal financial information is available. Geodis Wilson UK Ltd 31/12/ /12/ /12/2014 Sims Group UK Limited (company number ) are part of Sims Metal Management who are the world leaders in electronic and metal recycling. The company has an annual turnover in excess of 5Bn. The last 3 years audited Turnover 109,043,000 85,423,000 90,474,000 accounts for the company are summarised below: Pre-Tax Profit - 12,815, ,000-1,514,000 Net Worth - 55,889,000-1,413,000-4,063,000 Sims Recycling Limited 30/06/ /06/ /06/2014 Turnover 396,233, ,500, ,376,000 Pre-Tax Profit - 20,234,000 12,505,000-68,365,000 Net Worth 119,825,000 43,306,000 32,736,000

9 INDUSTRIAL MARKET COMMENTARY. The West London industrial market is the highest value industrial market in the UK and is characterised by strong tenant demand and a shortage of available buildings. The result of this imbalance has led to speculative development being undertaken, strong rental growth and a reduction in tenant incentive levels as occupiers compete for buildings. Prime headline rents in the area are in excess of psf and rise to psf in locations closer to Heathrow Airport. Rents on good secondary buildings are in excess of psf. Detailed below is a schedule of recent occupational transactions: Property Size (sq ft) Tenant Rent (psf) Date Unit A Central Spaceway, Feltham 19,192 Satair UK Oct-17 Unit 26 Ashford Industrial Estate, Ashford 4,366 M Capital Investments Mar-17 Unit 19 Ashford Industrial Estate, Ashford 6,268 Vaughan Fabrication Services Feb-17 Based on the above transactions we are of the opinion that the headline ERV for the property is 588,708 pax ( psf).

10 INVESTMENT MARKET COMMENTARY. The UK industrial investment market and in particular the Greater London market continues to attract strong demand from the UK Institutions, overseas investors, private investors and Local Authorities. Investors are attracted to the sector by the strong occupational market fundamentals and positive rental growth prospects. This has resulted in yield compression across the whole industrial sector. The table below details some recent comparable transactions: Property 12 Waxlow Road, Park Royal Oldfield Lane, Grnford Units Ashford Industrial Estate, Shield Road, Ashford Trackside Business Centre, Brooklands, Byflt Units 1 and 2 Vickers Drive, Weybridge Area (sq ft) 42,889 Let to AFM Group Limited for a further 6 years. 38,367 Let to 4 tenants with an AWULT of 8.4 years to expiry. 62,010 Fully let to eight tenants with an AWULT of 8.5 years to expiries and 6.4 years to breaks. 63,146 The property is fully let to 6 tenants with an AWULT of 5.23 years to expiry. 87,170 Let to John Lewis by way of a lease expiring on 8 March Tenancy Rent (pax) Price Net Initial Yield Purchaser 462, M 3.61% Available 351, M 4.50% Available 666, M 4.85% Royal London Asset Management (08/2017) 500, M 5.09% Hermes REIM (04/2017) 700, M 4.75% Elmbridge Borough Council (11/2016)

11 INVESTMENT CONSIDERATIONS. Prime West London industrial investment. Strong occupational market fundamentals offering strong rental growth prospects. ERV of 588,708 pax ( psf) providing an attractive reversionary rent. Potential substantial dilapidations liability as Geodis Wilson Uk Ltd have bn in occupation of both units for over 20 years on full repairing leases. Opportunity to agr an early surrender of the lease on unit 2 and agr a longer term lease with the subtenant, VIP UK Trading Limited at a higher rent. Refurbish and relet unit 1 at lease expiry at a higher rent to capture rental reversion.

12 EPC. Units 1 and 2 Action Court both have EPC Ratings of D93. A copy of the EPC Certificate for both units is available upon request. VAT. We understand the property has bn elected for VAT and therefore anticipate the sale will be undertaken as a transfer of a going concern (TOGC). PROPOSAL. We are instructed to sk offers in excess of 8,950,000 (Eight Million, Nine Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 5.75% and based on our ERV a Reversionary Yield of 6.18% after deducting purchasers costs of 6.68%. FOR FURTHER INFORMATION. For further information, or to arrange an inspection, please contact: David Hawksley david.hawksley@joinercummings.co.uk John Blackwell john.blackwell@joinercummings.co.uk DISCLAIMER: Messrs Joiner Cummings (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that: (i) The particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) All descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however bn tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) No investigations have bn undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection. (v) Unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) No person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties, which have bn sold, let or withdrawn. OCTOBER 2017 Designed and produced by