Stafford 88 Acton Gate Stafford ST18 9AA

Stafford 88 Acton Gate Stafford ST18 9AA

Stafford 88 Acton Gate Stafford ST18 9AA Investment Summary Located adjacent to Junction 13 of the M6 motorway at its intersection with the A449, approximately 2 miles south of Stafford town centre. Comprises a modern 3 bay steel portal frame warehouse facility, with two storey integral offices totalling 8,236.16 sq m (88,654 sq ft). Let to Stone Computers Limited (with a guarantee from Stone Topco Limited) for a term of just over 15 years and 6 months, commencing on the 12 November 2009, expiring on 25 May 2025. There is a tenant option to break on 25 May 2020 subject to 9 months written notice and 6 months rent penalty. The current passing rent is 355,400 per annum which equates to 43.15 per sq m ( 4.00 per sq ft). Offers in excess of 4,350,000 reflecting a net initial yield of 7.75% after purchaser s costs of 5.7625%. A purchase at this level reflects a low capital value of 49.00 per sq ft. 1

Location Stafford is the county town and administrative centre of Staffordshire. The town is approximately 27 miles north west of Birmingham, and 17 miles south of Stoke on Trent. Stafford is within three hours drive time of most of the UK s major urban centres. Drive Time Guide Birmingham 28 Miles 45 Minutes London 141 Miles 2.5 Hours Manchester 58 Miles 1 Hour Hull 121 Miles 2.5 Hours Southampton 170 Miles 3 Hours Junction 13 Port Access Guide Plymouth 227 Miles 4 Hours Newport 120 Miles 2 Hours Cardiff 133 Miles 2.5 Hours Situation The property is situated immediately adjacent to Junction 13 of the M6 motorway at its intersection with the A449, approximately 2 miles south of Stafford town centre. Argos occupies the distribution warehouse on the adjoining site. 2

Stafford 88 Acton Gate Stafford ST18 9AA Description The property comprises a modern 3 bay steel portal frame warehouse facility with two storey integral offices which was constructed in 1999. The specification includes the following: M6 Cannock Birmingham Eaves height 10m to underside of haunch. 8 loading doors to yard plus 1 to the rear. 37 metre deep secure reinforced concrete yard. Two story fully fitted offices including suspended ceilings with recessed fluorescent lighting, central heating, carpeted floors. Secure perimeter fencing. 152 car parking spaces, 2 disabled and 11 Lorry spaces. In addition the tenant has added a further 24 car parking spaces which are double parked. Junction 13 The tenant has undertaken a significant amount of additional work at their own cost prior to taking occupation of the property. Full details on request. In summary these works include the following: Extension to the two storey offices. Installation of additional windows to the office accommodation. Installation of a disabled lift. New fire alarm system. Enhanced lighting to part of the warehouse. Installation of a canteen facility. Construction of a recycle, repair and server build centre within the warehouse. Installation of secondary roller shutter doors to all the loading doors. Installation of a new racking system. The Property 3

Accommodation The building has been measured in accordance with the Code of Measuring Practice, and provides the following approximate gross internal floor area: Use Floor Sq m Sq ft Warehouse Ground 7,822.00 84,196 Offices Ground 218.88 2,356 Offices First 195.28 2,102 Total 8,236.16 88,654 Site The site comprises approximately 2.27 hectares (5.62 acres) which represents a site coverage of 36%. Tenure Freehold. Tenancy The property is let on a full repairing and insuring lease to Stone Computers Limited (with a guarantee from Stone Topco Limited) for a term of 15 years, 6 months and 13 days, commencing on the 12 November 2009, expiring on 25 May 2025. The rent is subject to 5 yearly upward only rent reviews, with the next being due on 26 May 2015. There is a tenant option to break on 25 May 2020 subject to 9 months written notice and 6 months rent penalty. Following the initial 6 months rent free granted, the tenant pays half rent for the first 12 months of the lease until 25 May 2011 which will be topped up by the vendor. The current passing rent is therefore 355,400 per annum which equates to 43.15 per sq m ( 4.00 per sq ft). 4

Stafford 88 Acton Gate Stafford ST18 9AA Estimated Rental Value The letting of Stone Computers was agreed in November 2009 at 4.00 per sq ft, and we are of the opinion that this represents a true reflection of the current rental value. Since this letting completed, there has been more recent comparable evidence at Prologis Park, Stafford which is located on Junction 14 of the M6 which we understand to be as follows: DC2, Prologis Park, Stafford (128,000 sq ft) let to Waterford Crystal for a term of 6 years at an initial rent of 5.25 per sq ft with 12 month rent free period. We understand this letting took place in the 1st quarter of 2010. DC4, Prologis Park, Stafford (230,000 sq ft) let to GAP for a term of 10 years, with a 5 year break at an initial rent of 4.75 per sq ft. We understand this letting took place during the 2nd quarter of 2010. These last two letting transactions have not only produced evidence in excess of the level achieved at Stafford 88, but they have also saturated all the supply of available space on Junctions 13 and 14 of the M6. Both of these factors should assist in rental growth prospects going forward. 5

Covenant Information Stone Computers Limited was started in 1992, and is now a leading technology solutions provider and the UK s largest privately owned computer manufacturer, specialising in the supply and support of ICT and audio-visual solutions to schools, colleges, universities, local government, the emergency services, the NHS and MoD. Stone was recently ranked 21st in The Sunday Times Buyout Track 100 league table 2009 of Britain s top 100 private equitybacked companies with the fastest growing profits. Stone Computers Limited has been awarded a risk score of 85 out of a possible score of 100 by Experian Limited, indicating Low Risk. Date of Accounts 31/12/2009 31/12/2008 31/12/2007 Turnover 69,160,000 60,585,000 52,826,000 Pre-Tax Profit 2,870,000 3,253,000 3,227,000 Shareholders Funds 9,320,000 6,660,000 3,370,000 The guarantor Stone Topco Limited has been awarded a risk score of 78 out of a possible score of 100 by Experian Limited, indicating Below Average Risk. Date of Accounts 31/12/2009 31/12/2008 Turnover 69,160,000 48,382,000 Pre-Tax Profit (loss) ( 848,000) ( 772,000) Shareholders Funds ( 957,000) 181,000 Further information is available at the company s website: www.stonegroup.co.uk Environmental An environmental certificate was obtained by Enviroscreen in August 2006 which concluded that the site represented a low risk. A copy of the report is available upon request. 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 4,350,000 reflecting a net initial yield of 7.75% after purchaser s costs of 5.7625%. A purchase at this level reflects a low capital value of 49.00 per sq ft. 6

For further information, or to arrange an inspection, please contact: Antony Leech: antonyleech@tudortoone.com Alastair Tyrrell: alastairtyrrell@tudortoone.com 41-43 Maddox Street, London, W1S 2PD t: 0207 495 5550 f: 0207 495 5551 www.tudortoone.com Misrepresentation Act 1967 TUDOR TOONE LLP, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT:- (I) THESE PARTICULARS DO NOT CONSTITUTE, NOR CONSTITUTE ANY PART OF, AN OFFER OR CONTRACT. (II) TUDOR TOONE LLP AND ITS MEMBERS ACCEPT NO LEGAL RESPONSIBILITY FOR ANY STATEMENT OR REPRESENTATION WHETHER WRITTEN, ORAL OR IMPLIED OR WHETHER CONTAINED IN ANY ADVERTISEMENT PARTICULARS OR OTHER MATTERS ISSUED OR ANY CORRESPONDENCE ENTERED INTO BY THEM AND WHETHER MADE IN ANY ANTECEDENT PRESENT OR SUBSEQUENT ENQUIRIES OR NEGOTIATIONS. (III) NEITHER TUDOR TOONE LLP NOR THEIR PRINCIPALS, MEMBERS, AGENTS, SERVANTS OR REPRESENTATIVES HAVE ANY AUTHORITY WHATSOEVER TO MAKE OR GIVE ANY REPRESENTATION OR WARRANTY WHATSOEVER WHETHER WRITTEN OR IMPLIED IN RELATION TO THIS PROPERTY. (IV) ANY INTENDING PURCHASER MUST SATISFY HIMSELF BY INSPECTION OR OTHERWISE AS TO THE CORRECTNESS OF ANY ANTECEDENT PRESENT OR SUBSEQUENT STATEMENTS OR REPRESENTATIONS, AND SHOULD NOT RELY UPON THE SAME UNLESS HE HAS SATISFIED HIMSELF ACCORDINGLY. (V) UNLESS OTHERWISE STATED ALL PRICES AND RENTS ARE QUOTED EXCLUSIVE OF VALUE ADDED TAX (VAT). ANY INTENDING PURCHASERS OR LESSEES MUST SATISFY THEMSELVES INDEPENDENTLY AS TO THE INCIDENCE OF VAT IN RESPECT OF ANY TRANSACTION. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT TUDOR TOONE LLP IS A LIMITED LIABILITY PARTNERSHIP REGISTERED IN ENGLAND AND WALES WITH REGISTERED NUMBER OC 305 411. REGISTERED OFFICE: 41/43 MADDOX STREET LONDON W1S 2PD DETAILS PREPARED SEPTEMBER 2010