FESTIVAL DRIVE, EBBW VALE NP23 8XF DISTRIBUTION WAREHOUSE SALE & LEASEBACK OPPORTUNITY 10 YEAR INCOME TO 5A1 WITH FIXED UPLIFTS

FESTIVAL DRIVE, EBBW VALE NP23 8XF DISTRIBUTION WAREHOUSE SALE & LEASEBACK OPPORTUNITY 10 YEAR INCOME TO 5A1 WITH FIXED UPLIFTS

INVESTMENT SUMMARY A SINGLE LET DISTRIBUTION WAREHOUSE INVESTMENT TO BE SOLD BY WAY OF SALE & LEASEBACK TO DHL SUPPLY CHAIN LTD (5A1) FOR A TERM OF APPROXIMATELY 10 YEARS AND FOUR MONTHS FROM COMPLETION OF SALE STRATEGICALLY LOCATED DISTRIBUTION CENTRE SITUATED IN EBBW VALE WITH GOOD ACCESS TO THE A465 FREEHOLD A SELF-CONTAINED DISTRIBUTION WAREHOUSE EXTENDING TO 5,053.86 SQ M (54,400 SQ FT) THE UNIT BENEFITS FROM 6.3M EAVES, 17 LOADING DOORS AND DUAL ACCESS SECURE SITE EXTENDING TO 6.10 ACRES (2.47 HA) REFLECTING A LOW SITE COVER OF APPROXIMATELY 20% TO BE LET IN ITS ENTIRETY TO DHL SUPPLY CHAIN LTD (D&B RATING 5A1) ON A NEW FRI LEASE FROM COMPLETION OF THIS TRANSACTION EXPIRING 30TH APRIL 2028. THE LEASE WILL BE SUBJECT TO A SCHEDULE OF CONDITION THE INITIAL PASSING RENT WILL BE 163,200 PER ANNUM EQUATING TO A LOW 3.00 PER SQ FT AND IS SUBJECT TO A REVIEW ON THE FIFTH ANNIVERSARY OF THE TERM TO THE HIGHER OF OPEN MARKET RENT OR THE ANNUAL RENT SUBJECT TO 2% PER ANNUM COMPOUNDED UPLIFTS. THE MINIMUM RENT UPLIFT AT 2022 RENT REVIEW OF 180,186 PER ANNUM EQUATES TO 3.31 PER SQ FT WE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF 1,800,000 (ONE MILLION EIGHT HUNDRED THOUSAND POUNDS), SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT. A PURCHASE AT THIS LEVEL WOULD REFLECT A NET INITIAL YIELD OF 8.55% ASSUMING PURCHASERS COSTS OF 7.10% AND A LOW CAPITAL VALUE OF 33 PER SQ FT. MINIMUM REVISIONARY YIELD OF 9.45% AT REVIEW IN 2022. 2

B4485 LOCATION Ebbw Vale is located in the county of Blaenau Gwent. It is 20 kilometres (13 miles) west of Abergavemy and 16 kilometres (10 miles) east of Merthyr Tydfil, via the A465 (Heads of Valleys Road). Cardiff, the capital city of Wales, is some 51 kilometres (32 miles) south of Ebbw Vale. A485 Llangadog A48 A483 69 67 A470 A470 A479 A465 A465 Road Access to the motorway network is via the A470 to the M4 Motorway, or alternatively by way of the A465 and 42, connecting at Newport. The is accessed via the A465 and links to the M50 Motorway. This in turn links to the M5, north of Cheltenham and south of Worcester. Llanelli A4138 Swansea M4 A474 67 A465 Merthyr Tydfil A470 A465 Ebbw Vale 42 42 Newport M6 A1(M) A1(M) Rail The nearest train station is Ebbw Vale Parkway approximately 0.5 miles from the property. The line provides access to Cardiff Central Station at an approx. journey time of 50 minutes. M4 A4232 A48 Cardiff M61 M6 M62 M1 M1 Air The nearest international airports are Cardiff Airport (36 miles) and Bristol Airport (52 miles). Darby Cres Tredegar Rd Bryn Deri Church St 46 Steel Works Rd M54 M42 M6 Manmoel Rd B4485 M1 SITUATION The immediate locality has traditionally been dominated by heavy industrial uses and, prior to its closure, the British Steel Works provided the main source of employment within the Town. The steelworks have now been completely removed and plans to redevelop the site are underway. These plans include the construction of a community hospital, a learning campus and a business park, incorporating further industrial development. The subject property is situated on the eastern side of Festival Drive, some 1.6 kilometres (1 mile) south of Ebbw Vale town centre, adjoining the site of the former steelworks. Manmoel Rd Manmoel Rd Drysiog St High St Victoria R d 46 46 Park Rd 46 Lime Ave Festival Dr Steel Works Rd 46 B4485 Ebbw Vale M4 M5 M50 M4 M40 M3 A1(M) M23 M11 M25 M20 Au gusta St 46 Dy ffryn Rd 3

DESCRIPTION The property comprises a large distribution warehouse with a two storey office building constructed during the mid 1990s. The site also includes a vehicle maintenance building to the north west corner of the site. There are a total of 78 car parking spaces provided on site to the front of the main office building. ACCOMMODATION The property has been measured on a Gross Internal Area basis in accordance with the RICS Code of Measuring Practice (6th Edition) as following: Description Sq m Sq ft The property benefits from the following specification: Warehouse Description Office Description Steel portal frame Brick exterior Brick and profiled metal Profiled metal mansard external elevations Metal roof Profile metal roof Suspended ceilings 6.30 metre eaves 17 level access loading doors External Large yard 78 car parking spaces Dual Access Vehicle Workshop 301.75 3,248 Warehouse 3,065.11 32,993 Warehouse Offices 480.60 5,173 Front Offices 1,152.22 12,403 Link Block 54.18 583 Total 5,053.86 54,400 4

SITE AREA The site is broadly rectangle with a total area of approximately 6.10 acres (2.47 hectares) resulting in a low site coverage of approximately 20%. TENURE The property is held freehold under title number WA460285 TENANCY The investment will be sold by way of a sale and leaseback transaction. The property is to be let to DHL Supply Chain Ltd on a new full repairing and insuring lease expiring 30th April 2028 therefore providing a term certain of approximately 10 years and 4 months. The lease will be contracted inside the Landlord and Tenant Act 1954 Sections 24-28. The initial passing rent will be 163,200 per annum reflecting a low 3.00 sq ft and is subject to a review on the fifth anniversary of the term to the higher of Open Market Rent or the annually compounded rent subject to 2% per annum fixed uplifts. El Sub Sta Tank The minimum rental uplift at the 2022 rent review will be 180,186 per annum which reflects 3.31 per sq ft. Depot The lease will be drawn on standard terms, as per other recent DHL leaseback structures, subject to a schedule of condition. FESTIVAL DRIVE The lease to DHL will be granted subject to, and with the benefit of, two existing leases of part to The Hospice of the Valleys. The rent will be payable direct to DHL. Gas Gov Crown Copyright 2017. All rights reserved. Not to scale. 5

COVENANT INFORMATION DHL Supply Chain Ltd is part of the supply chain of the world s leading postal and logistics company Deutsche Post DHL Group, with approximately 470,000 employees in 220 countries. The group encompasses DHL Express, DHL Parcel, DHL ecommerce, DHL Global Forwarding, DHL Freight and DHL Supply Chain. The Supply Chain business provides contract logistics solutions to a wide variety of sectors and global corporations. DHL operate two longstanding contracts from the facility for a global manufacturer of consumer chemicals and also a major distillery. Further information about DHL Supply Chain, can be found on their website, www.dhl.co.uk. DHL Supply Chain Ltd (00528867) has an Experian rating of 100/100, reflecting a Very Low Risk company. The last three years of available accounts are as follows: 31/12/2015 (000 s) 31/12/2014 ( 000 s) 31/12/2013 ( 000 s) Turnover 4,010,360 4,132,161 3,850,546 Pre-Tax Profit 108,161 91,683 40,922 Net Worth 360,000 249,515 154,621 Shareholders Funds 364,279 256,497 164,959 PROPERTY OPERATIONS The subject unit is operated by Tradeteam who specialise in drinks distribution. Tradeteam is the UK s leading drinks logistics business with a turnover of 160m per annum. Tradeteam picks 50 million items per year; including four million wine and spirit cases. 6

OCCUPATIONAL MARKET COMMENTARY Industrial accommodation is in short supply in South Wales with demand outweighing current availability. The region is suffering from a lack of Grade A industrial stock. This has led to substantial demand from both local and national occupiers for industrial and trade counter units around the outer fringes of population centres. Industrial rents in Cardiff are now reaching 5.50 per sq ft. Availability within South Wales has been decreasing considerably over the last 5 years as demonstrated in the graph below: With the Seven Bridge due to have its tolls withdrawn at the end of 2018 we anticipate an increase in demand and subsequently increased rents within South Wales from occupiers looking to make use of the reduction in transport costs. Ebbw Vale will benefit from strengthened links between Wales and England. The move is expected to boost the economy in South Wales by around 100m a year. Recent lettings include: AVAILABILITY (M SQ FT) 25 20 Address Unit 1 Celtic Business Park, Newport Newhouse Distribution Centre, Chepstow Border Technology Park, Pen-y-Fan Industrial Estate, Crumlin Date Size (sq ft) Rent (sq ft) 2016 48,149 5.00 Term (break) Occupier Comments 10 years (5 years break) Amazon New build 2016 72,476 4.00 10 year Uniserve 1980s build 2017 119,910 4.00 10 year BBI Group Mid 1990s build 15 10 5 0 2012 2013 Second Hand 2014 Grade A 2015 2016 HI 2017 LOGISTICS INVESTMENT MARKET The UK Industrial and Distribution investment sector continues to return strong total returns to investors and remains a sector where demand is outstripping supply. Driven by the compelling fundamentals of a positive occupational market seeing record low availability rates, robust income streams coupled with tangible rental growth, investors remain keen to continue to invest in the sector. The following DHL sale and leaseback transactions have taken place over the last 12-18 months. Property Tenant Unexpired Term (years) Size (sq ft) Price NIY Date Rowley Road, Coventry DHL Supply Chain Ltd 5.00 90,047 5.70m 7.04% May 2017 Nutsey Lane, Totton DHL Supply Chain Ltd 10.00 67,770 6.30m 6.00% Nov 2016 Vernon Road, Stoke-on-Trent DHL Supply Chain Ltd 5.00 276,641 11.60m 8.10% Nov 2016 Hermitage Lane, Aylesford DHL Supply Chain Ltd 5.00 95,259 6.22m 7.50% May 2016 Bawtry 270, Doncaster DHL Supply Chain Ltd 15.00 272,260 17.14m 6.05% Dec 2015 7

PROPOSAL We are instructed to seek offers in excess of 1,800,000 (One Million Eight Hundred Thousand Pounds), subject to contract and exclusive of vat. A purchase at this level would reflect a net initial yield of 8.55% assuming purchasers costs of 7.10% and a low capital value of 33 per sq ft. Minimum revsionary yield of 9.45% at review in 2022. VAT The property has been elected for VAT and the purchase price is exclusive of any VAT that may be chargeable. The proposed transaction structure means the sale cannot be treated as a transfer of a going concern. DATA ROOM A dedicated on-line data room allowing interested parties to view key documents is available upon request. Any proposals submitted will be required to confirm that the contents of the data room have been reviewed and accepted. EPC The building has an EPC rating of C(70). Further information is available on request. CAPITAL ALLOWANCES Capital allowances will be retained by the Vendor as it will be remaining in occupation of the property. Accordingly, no Capital Allowances will be made available to the purchaser. FURTHER INFORMATION For Further information or to arrange an inspection, please contact: David Jones Alex Carr Charlie How 029 2049 0499 020 7198 2233 020 7198 2248 djjones@lsh.co.uk acarr@lsh.co.uk chow@lsh.co.uk Lambert Smith Hampton United Kingdom House, 180 Oxford Street, London W1D 1NN Subject to Contract and Exclusive of VAT Lambert Smith Hampton September 2017 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. 8