Reversionary Industrial Investment with Annual RPI Reviews WESTON BODY HARDWARE CROSSGATE ROAD PARK FARM INDUSTRIAL ESTATE REDDITCH B98 7SN

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1 Reversioary Idustrial Ivestmet with Aual RPI Reviews WESTON BODY HARDWARE CROSSGATE ROAD PARK FARM INDUSTRIAL ESTATE REDDITCH B98 7SN

2 INVESTMENT SUMMARY Reversioary freehold idustrial ivestmet Let to Westo Body Hardware Ltd o a 15 year lease from December 2010 ANNUAL RPI reviews with collar ad cap of 2% ad 5% Curret ret - 129,806 per aum (oly 3.27 per sqft) Expected retal icrease i December 2017 to 134,608 per aum, based o forecast RPI of 3.7% Uderlyig ERV - 158,900 per aum ( 4.00 per sqft) Well established idustrial locatio with occupiers earby icludig Travis Perkis, Speedy Hire, Topps tiles, Dreams, Greggs, VW & Vauxhall 3,692.1 sq m (39,725 sqft) We are istructed to seek offers i excess of 1,500,000 Net iitial yield of 8.16% Expected icrease i December 2017 to 8.46% Reversioary yield of 9.98% Low capital value of per sqft WESTON BODY HARDWARE Crossgate Road Idustrial Estate WESTON BODY HARDWARE Washford Retail & Trade park

3 LOCATION Redditch is a major maufacturig ad egieerig cetre located approximately 14 miles south of Birmigham city cetre. Bromsgrove lies 6 miles to the west ad Solihull 13 miles to the orth east. The tow lies approximately 4 miles south of Juctios 2 ad 3 of the M42 motorway, which liks ito the M5 ad M6 formig the orbital motorway etwork aroud Birmigham. Crossgate Road is located withi the established Park Farm Idustrial Estate 2.5 miles to the south east of Redditch tow cetre. The subject property is located at the souther ed of Crossgate Road, close to Crossgate Road Idustrial Estate ad the A435, which provides a direct lik to Juctio 3 of the M42, 6 miles to the orth. Washford Retail ad Trade Park is directly to the south, with occupiers icludig Dreams, Topps Tiles, Greggs, Bathstore ad Formula Oe Autocetres. Other earby occupiers iclude Screwfix, Speedy Hire, Volkswage, Vauxhall ad ATS. DESCRIPTION The subject property is located o Crossgate Road ad was built i the mid 1970 s. The detached idustrial uit is of steel frame costructio ad arraged i three bays. The bays have eaves heights of 2.9m ad 5.3m. The property is predomiatly used for egieerig ad maufacturig. There are acillary two storey offices to the Crossgate Road elevatio which have recetly bee refurbished. There is also a small detached storage uit i the rear yard. The uit has three level access roller shutter loadig doors to the souther elevatio ad is served by a secure yard. The property also has two car parks for approximately 40 cars. SITE AREA The site area is 0.8 hectares (2.0 acres) ad is secured alog three boudaries by metal palisade fecig.

4 ACCOMODATION The property provides the followig accommodatio o a GIA basis. Area sq.m Area sq.ft Idustrial Warehouse 3, ,125 Groud Floor Offices, Receptio & Catee ,210 First Floor Offices ,390 TOTAL 3, ,725 TENURE The property is freehold. TENANCY The property was origially let o FRI terms to Metalrax Group plc for a term of 15 years from 23 December The lease was assiged to Westo Body Hardware Ltd i May The curret ret is 129,806 per aum (oly 3.27 per sqft). The lease has ANNUAL RPI ret reviews with cap ad collar of 2% ad 5%. Based o the RPI projectios cotiuig to grow at its curret 3.7% aual rate the ret will icrease from December 2017 to 134,608 per aum ( 3.39 per sqft). MARKET RENT The tow has a strog maufacturig ad egieerig history ad labour force ad there is very little available idustrial stock i Redditch at the curret time. There has bee strog retal growth over the last 18 moths with headlie rets ow over 6.00 per sqft while secod had space is curretly achievig 5.00 per sqft plus. We believe the true ERV for the property is 158,900 per aum, based o 4.00 per sqft. This shows a icrease of 22% above the passig ret. COVENANT The compay is cosidered oe of the leadig producers of cocepts for lock ad latch systems ad a rage of hardware predomiatly for the agricultural ad commercial vehicle markets.

5 I May 2015 Westo Body Hardware Ltd was acquired by Happich UK Ltd, a subsidiary of Happich Group. Happich Group is a privately owed egieerig busiess established sice 1924 i Wuppertal, Germay. The group is a member of the Pelzer family group of compaies. They are a leadig iterior supplier for commercial ad specialised vehicles. Cliets iclude DAF, Daimler, Iveco, MAN, JCB, AGCO ad Joh Deere. They also have operatios i Frace, Polad, Czech Republic, Turkey, Spai ad Chia. A cosiderable amout of busiess has bee moved to Westo Body Hardware as a result of major project work. A summary of the latest fiacials from the last two sets of published accouts are as follows: VAT Oct 2014 to Dec 2015 Sep 2013 to Sep moths to Sep 2013 Turover 7,920 6,984 3,572 Pre-Tax Profit (270) Total Assets less Curret Liabilities Shareholders Fuds The property is elected for VAT ad therefore VAT will be payable o the purchase price. It is aticipated that the sale will be dealt with as a TOGC. FURTHER INFORMATION Should you require further iformatio or wish to arrage a ispectio please cotact:- ANDREW PRICE adrew.price@fspproperty.co.uk JAMES HEMSTOCK james.hemstock@fspproperty.co.uk EPC The uit s eergy performace ratig is B-37. The certificate is available o request. PROPOSAL We are istructed to seek offers i excess of 1,500,000 (Oe Millio Five Hudred Thousad Pouds), subject to cotract ad exclusive of VAT. A purchase at this level would reflect a et iitial yield of 8.16%, (assumig usual costs of purchase of 6.12%). We evisage the ruig yield will icrease i December 2017 to 8.46%. Assumig further RPI aual growth of 3.5% the yield will further improve to: December % December % December % Reversio to true ERV 9.98% The price reflects a low capital value of per sqft. Frack Steier Price Ltd Third Floor, Victoria House Colmore Row, Birmigham, B3 3BD Misrepresetatio Clause: The accuracy of ay descriptio, dimesios, refereces to coditio, ecessary permissios for use ad occupatio ad other details cotaied herei are ot guarateed ad are for geeral guidace oly ad prospective purchasers or teats must ot rely o them as statemets of fact or represetatios ad must satisfy themselves of their accuracy. Neither Frack-Steier Price Ltd, or ay of their employees or represetatives has ay authority to make or give ay represetatio or warraty or eter ito ay cotract whatever i relatio to the property. Prices ad rets quoted i these particulars may be subject to VAT i additio. The referece to ay mechaical or electrical equipmet or other facilities at the property shall ot costitute a represetatio (uless otherwise stated) as to its state or coditio or that it is capable of fulfillig its iteded fuctio. Prospective teats/purchasers should satisfy themselves as to the coditio of such equipmet for their requiremets.