NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS

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1 GOLDEN TRIANGLE INDUSTRIAL INVESTMENT NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS

2 INVESTMENT SUMMARY The property is located within the Golden Triangle, one of the principal industrial and commercial centres in the UK. Prominently situated within the established Round Spinney Industrial Estate, adjacent to the A34 dual carriageway, providing excellent access to junctions 15, 15a and 16 of the motorway. The property comprises a significant industrial / production facility with an ancillary office building, totalling 228,967 sq ft (21, sq m). The property is held long leasehold by way of a 999 year lease from 24th June 1984 at a rent of one peppercorn (if demanded). Let to KAB Seating Limited (guaranteed by CVS Holdings Limited) for a period of 5 years from 1st December There is a tenant only break option on 1st December 2017 providing an unexpired term of 2.6 years. Rent rebased in December 2014 to 759,375 per annum, reflecting 3.32 per sq ft overall. Committed tenant. The property has been the tenant s Global Headquarters since Minimum eaves height of 6.7m, with high bay area rising to 12.0m. Low site cover of 37% on a 5.49 hectare (13.59 acre) site area providing excellent circulation on site and ability to cross dock. Medium term redevelopment potential for distribution use. Offers sought in excess of 7,975,000 (seven million nine hundred and seventy five thousand pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 9.00%, after deduction of purchase costs of 5.80%, equating to a low capital value of per sq ft. TO JUNCTION 15 TO KETTERING & CORBY NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD, ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS

LOCATION Northampton is a major industrial warehouse location within the UK s Golden Triangle for logistics/ distribution.

Northampton s strategic location and excellent transport links have meant that the town is a wellestablished centre for distribution attracting major occupiers including: Travis Perkins, Wickes,

Northampton was designated as a New Town in 1968 and has experienced considerable economic growth over recent decades.

3 LOCATION Northampton is a major industrial warehouse location within the UK s Golden Triangle for logistics/ distribution. The town is located approximately 68 miles (109 km) north of Central London, 55 miles (88 km) south-east of Birmingham and 14 miles (22 km) north of Milton Keynes. Northampton s strategic location and excellent transport links have meant that the town is a wellestablished centre for distribution attracting major occupiers including: Travis Perkins, Wickes, Declathon, Howdens Joinery, Asda, Coca Cola, John Lewis Partnership and Panasonic. Northampton was designated as a New Town in 1968 and has experienced considerable economic growth over recent decades. Over 80% of the UK s population is located within a four hour drive time of the town. Northamptonshire is the most northerly region that can be reached from the south coast ports within the maximum EU permitted drive times. This has led to a large number of national and international distributors locating in the surrounding area. The town has a resident population of approximately 413,138 people within a 10 mile (17 km) radius. COMMUNICATIONS The town is situated within the central distribution belt of the country and benefits from excellent road communications with the motorway serving the town from junctions 15, 15A and 16 via the A45 trunk road. This provides access to the M6 and M25 motorways and in turn linking to the national motorway network. Northampton also lies at the intersection of the A45, A508 and trunk roads. The /M6/A14 interchange is 18 miles (30 km) to the north at junction 19 of the. The provides a fast link to Oxford, and the A45 provides access to the A14 and east coast ports. Daventry International Rail Freight Terminal (DIRFT) is located approximately 18 miles (30km) to the north west and is the UK s premier rail distribution hub. M54 Tamworth Brownhills LEICESTER Aldridge M42 Wigston M6(T) M69 WOLVERHAMPTON Hinckley West Bromwich M6 Nuneaton Dudley Market BIRMINGHAM Harborough Halesowen Birmingham M6 M42 Solihull COVENTRY A14 Rugby Bromsgrove Redditch Leamington Spa Warwick Droitwich Daventry M5 Tewkesbury Cheltenham Evesham HARLESTON Stratford upon Avon CHAPEL BRAMPTON LODGE FARM INDUSTRIAL ESTATE A428 M40 Banbury A5199 Oxford A508 HARBOROUGH RD MOULTON PARK INDUSTRIAL ESTATE A5076 M40 A M45 NORTHAMPTON Kidlington Abingdon Bicester MOULTON A Wellingborough Milton Keynes Aylesbury To Kettering Corby Kettering ROUND SPINNEY INDUSTRIAL ESTATE Rushden Bedford Newport Pagnell Leighton Buzzard Dunstable Tring Amersham KAB SEATING LIMITED NORTHAMPTON Peterborough A14 M25 St Neots Luton A4500 A45 NENE VALLEY WAY To Wellingborough A1(M) Huntingdon A1 Letchworth Hitchin Luton A1(M) A14 Biggleswade M25 SITUATION The property is prominently located within the established Round Spinney Industrial Estate, adjacent to the ring road, which provides excellent access to Kettering to the north (11 miles) and the to the south (8 miles). Occupiers within Round Spinney Industrial Estate include: TNT, Fitness Superstore, AGC Automotive, HW Martin and Seabourne Group. 16 BUGBROOKE A4500 SWAN VALLEY WESTGATE 15A ROTHERSTHORPE A5123 A426 NORTHAMPTON MEREWAY MILTON MALSOR A A45 LONDON RD A45 A5095 BRACKMILLS INDUSTRIAL ESTATE GRANGE PARK A45 To Bedford A428 BEDFORD ROAD GOLDEN TRIANGLE INDUSTRIAL INVESTMENT

DESCRIPTION The property comprises a large industrial production facility constructed in approximately 1980 with associated two/three-storey office accommodation in an adjoining building.

The unit comprises a total of 228,967 sq ft (21,271.58 sq m) of accommodation split between production, storage, office and showroom areas. The office content totals approximately 16%.

4 DESCRIPTION The property comprises a large industrial production facility constructed in approximately 1980 with associated two/three-storey office accommodation in an adjoining building. The property has been used by various group companies of the current tenant since 1981 as their Worldwide Headquarters and main manufacturing facility. The unit comprises a total of 228,967 sq ft (21, sq m) of accommodation split between production, storage, office and showroom areas. The office content totals approximately 16%. The unit benefits from excellent vehicle circulation and parking around the site. The warehouse is of steel portal frame construction with profiled metal cladding over masonry brick elevations, whilst the main office area benefits from brick cladding with a blockwork inner leaf. The warehouse has a 12m eaves height in the high bay section and 6.7m eaves height in the main warehouse. There are roller shutter doors of differing sizes to all four elevations of the unit with a combination of manual and automatic mechanisms. The property sits on a site of circa 5.49 hectares (13.59 acres) with a low site cover of approximately 37%. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following gross internal floor areas: Floor Level Description Sq M Sq Ft Ground Main Production 17, ,899 Ground Storage & Ancillary ,397 Ground Main Offices & Link Block ,921 First Main Offices & Link Block ,130 Second Main Offices ,191 First Warehouse Canteen / Offices ,429 Total Building GIA 21, ,967 In addition, there is a canopy of approximately sq m (5,851 sq ft) which we understand to be a tenant s improvement and as a result have not included this figure in the floor area above. NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD, ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS

TENURE The property is held long leasehold by way of a 999 year lease from 24th June 1984 at a rent of one peppercorn (if demanded).

It is let entirely to KAB Seating Limited, guaranteed by parent company CVS Holdings Limited on a full repairing and insuring lease for a term of 5 years from 1st December 2014 to 30th November 2019.

The passing rent is currently 759,375 per annum which equates to 3.32 per sq ft overall. Prior to the recent lease regear, the rent was 911,250 per annum ( 3.

In return for a parent company guarantee and an extended lease term in recent negotiations, the tenant received a reduced rent and benefits from an initial eight month rent fee period spread over the

5 TENURE The property is held long leasehold by way of a 999 year lease from 24th June 1984 at a rent of one peppercorn (if demanded). TENANCY DETAILS The tenant has been in occupation of the property since It is let entirely to KAB Seating Limited, guaranteed by parent company CVS Holdings Limited on a full repairing and insuring lease for a term of 5 years from 1st December 2014 to 30th November There is a Tenants option to determine the lease on the third anniversary (1st December 2017) on nine months written notice providing an unexpired term of 2.6 years. The passing rent is currently 759,375 per annum which equates to 3.32 per sq ft overall. Prior to the recent lease regear, the rent was 911,250 per annum ( 3.98 per sq ft), which represents a 20% decrease. In return for a parent company guarantee and an extended lease term in recent negotiations, the tenant received a reduced rent and benefits from an initial eight month rent fee period spread over the first three years of the term (three months rent free in Years1 & 2 and two months in Year 3). Furthermore, the tenant will benefit from a further nine month rent free period if the tenant-only break clause at the end of the third year is not exercised. It is the vendor s intention to top up all outstanding rent free periods prior to break. ENVIRONMENTAL SURVEY A Phase 1 Environmental Assessment was prepared by Environ in April In summary, the current and former uses of the site are considered Low Risk. The report is assignable and a copy of it is available in the Lewis Ellis dataroom. GOLDEN TRIANGLE INDUSTRIAL INVESTMENT

6 COVENANT INFORMATION KAB Seating Limited was established in 1987 and employs over 325 people at their Northampton Global Headquarters. The company specialises in the manufacture and sale of seating for various types of vehicles including commercial, construction, industrial, mining, bus/coach and mobility. They also produce high specification office chairs. The company is based in the UK and has developed a worldwide distribution network with subsidiaries in Sweden, Belgium, Australia and North America and a sales/support office in France. KAB Seating products are exported worldwide and are fitted as original equipment by many major manufacturers including: JCB, Caterpillar and Volvo. KAB Seating is a subsidiary of CVS Holdings Limited. Their ultimate parent is Commercial Vehicles Group Inc, which is listed on the US Nasdaq exchange with a current market capitalisation of US $181 million. KAB Seating Ltd has a Dun & Bradstreet rating of B1 representing a minimum risk of business failure. The company recorded the following accounts over the last 3 years: KAB Seating Ltd 31 Dec Dec Dec 2011 Sales Turnover 41,908,000 51,530,000 59,348,000 Profit/(Loss) before Taxes ( 78,000) ( 2,196,000) 1,579,000 Tangible Net Worth 216, ,000 4,379,000 Net Current Assets (Liabilities) 3,065,000 3,462,000 6,734,000 The lease is guaranteed by CVS Holdings Ltd who have a Dun & Bradstreet rating of 2A2 based on a tangible net worth of 3,110,000 and representing a lower than average risk of business failure. The company recorded the following accounts over the last 3 years: CVS Holdings Ltd 31 Dec Dec Dec 2011 Profit/(Loss) before Taxes 3,060,000 ( 28,031,000) 139,000 Tangible Net Worth 3,110,000 50,000 28,031,000 Net Current Assets (Liabilities) ,031,000 ENERGY PERFORMANCE CERTIFICATE The property has an EPC rating of E and a score of 107. A copy of the EPC is available on the Lewis Ellis website. VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). KAB Seating DATA ROOM There is a dataroom for the property with key tenancy information, title documents and the EPC. Access to it can be obtained via the current sales page on the Lewis Ellis website: NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD, ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS

NORTHAMPTON INDUSTRIAL MARKET Take up of grade A stock as at November 2014 in the East Midlands stood at 4.35 million sq ft, a 49% increase on 2013, where take up was 2.92 million sq ft.

The current supply / demand imbalance across all warehouse size sectors highlights the lack of availability in the logistics market, which has fuelled growth in rental levels for modern warehouses in

New committed speculative supply in Northampton currently includes Brackmills 112, a 112,736 sq ft unit built by Hamdon Gate and DC7 Grange Park, a 341,000 sq ft unit being built by Prologis.

7 NORTHAMPTON INDUSTRIAL MARKET Take up of grade A stock as at November 2014 in the East Midlands stood at 4.35 million sq ft, a 49% increase on 2013, where take up was 2.92 million sq ft. Demand continues to outstrip supply of quality industrial stock in the Golden Triangle encouraging further selective speculative development. The current supply / demand imbalance across all warehouse size sectors highlights the lack of availability in the logistics market, which has fuelled growth in rental levels for modern warehouses in core locations. New committed speculative supply in Northampton currently includes Brackmills 112, a 112,736 sq ft unit built by Hamdon Gate and DC7 Grange Park, a 341,000 sq ft unit being built by Prologis. Furthermore, Goodman acquired 22 acres at Grange Park in September 2014 for the development of two buildings totalling 450,000 sq ft, having paid a reported 600,000 per acre for the site. Prime rents in Northampton currently stand at per sq ft with agents commenting there is upwards pressure on new build rents, with Goodman looking to quote 6.25 per sq ft at Grange Park. The second hand market has also had a strong 2014 as the lack of new development has meant occupiers have to consider other options. Recent industrial occupational evidence of note includes: Location Date Tenant Area (sq ft) Grange Park, Northampton Gowerton Road, Northampton Hinckley Commercial Park, Hinckley Rent (psf) Condition Apr 2015 Clipper Logistics 60, New Feb 2015 Dalepak 201, Refurbished Jan 2015 GeoPost 165, Pre-Let Birch Coppice, Tamworth Oct 2014 UPS 152, New Magna Park, Leicester Sep 2014 Armstrong Logistics 133, New Centurion Park, Tamworth Aug 2014 Aldi 121, New INVESTMENT MARKET COMMENTARY The investment market continues to benefit from a very strong level of demand for Golden Triangle industrial / warehouse units, particularly those which offer modern well specified accommodation, large sites and/or asset management opportunities. Over the last months there has been a significant sharpening of yields in the sector, with prime, well let, single tenant yields in the order 5.50% NIY and well let secondary single tenant yields in the order of 6.50% NIY. With long leased investments attracting the most competition and sharpest yields, a number of investors have turned their approach towards properties with shorter income streams to benefit from the higher return offered. Recent transactions showing evidence of current pricing levels: Location Date Tenant Area (sq ft) IPSL Headquarters, Northampton Unit 3, Mercury Drive, Northampton Woodbury Lane, Worcester Jeyes Distribution Centre, Thetford 1 Langham Park, Chesterfield Bardon Business Park, Coalville Pegasus Drive, Biggleswade Midpoint 18, Middlewich Term (years) Price/ NIY Under Offer IPSL 105, Circa 13m/ 9.00% March 2015 Travis Perkins 172, m/ 5.50% March 2015 Bibby Logistics 92, m/ 6.91% Dec 2014 Jeyes 127, Circa 6.0m/ 8.60% Dec 2014 Menlo Worldwide 167, m/ 7.80% Dec 2014 Ceva Logistics 63, m/ 7.00% June 2014 Dec 2013 Turpin Distribution Kuehne & Nagel 50, m/ 7.50% 351, m/ 7.01% Cap Val (psf) DC3 Ryton, Coventry Aug 2014 JLR 226, New Mercury 11, Northampton June 2014 Yodel 111, Refurbished Harding Road, Milton Keynes Black Swan, Northampton Feb 2014 Feb 2014 Seko Logistics 151, Refurbished The White Company 191, New GOLDEN TRIANGLE INDUSTRIAL INVESTMENT

PROPOSAL We are seeking offers in excess of 7,975,000 (seven million nine hundred and seventy five thousand pounds) subject to contract and exclusive of VAT.

FURTHER INFORMATION Should you require further information or wish to view the property please contact either: Matthew Brown Tel: 020 7493 3330 Mob: 07836 724 420 Email: mbrown@lewisellis.co.uk David Kos Tel: 020 7493 3330 Fax: 07709 813 267 Email: dkos@lewisellis.

that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions,

8 PROPOSAL We are seeking offers in excess of 7,975,000 (seven million nine hundred and seventy five thousand pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 9.00%, after deduction of the usual purchaser s costs of 5.80%, equating to a low capital value of per sq ft. FURTHER INFORMATION Should you require further information or wish to view the property please contact either: Matthew Brown Tel: Mob: mbrown@lewisellis.co.uk David Kos Tel: Fax: dkos@lewisellis.co.uk NORTHAMPTON KAB SEATING LIMITED, STONE CIRCLE ROAD, ROUND SPINNEY INDUSTRIAL ESTATE, NN3 8RS Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, 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 any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: May 2015.

PRIME DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY Unit A, New Frontier House, Interlink Business Park, Interlink Way West, Bardon Hill, Coalville,

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