THE EYRECOURT PORTFOLIO Birmingham City Multi Let Industrial Portfolio

THE EYRECOURT PORTFOLIO Birmingham City Multi Let Industrial Portfolio

JUNCTION 6 JUNCTION 5 INVESTMENT SUMMARY M6 A38M High specification industrial/trade properties on the edge of Birmingham city centre HEARTLANDS SPINE ROAD Modern units built between 1998 & 2005 Two purpose built estates and a single unit Total floor area - 82,808 sq ft 6,000,000-7.5% with a reversion to 8.44% PORTFOLIO OVERVIEW All three industrial schemes have been developed between 1998 and 2005. They were specifically designed and built to appeal to the trade and industrial markets around Birmingham city centre. All three estates are located within a mile of the city centre and have excellent road connections to the motorway network, via the A38M and Heartlands Spine Road. Junctions 5 & 6 of the M6 are within three miles of all the properties. Access around the city is straightforward with the outer ring road within ½ mile of the three properties. All the buildings were developed to a high specification and finish. The intention was to offer the market superior trade and industrial units in a central city location. The units provide an array of sizes which have proved popular with occupiers wanting a quality location, easy access and high building specification. There is little similar quality stock around Birmingham city centre providing direct competition. The success and underlying quality of the schemes have been proven by the calibre of tenants and high level of tenant retention. CITY CENTRE

PORTFOLIO SUMMARY Property Mainstream Way/Duddeston Mill Rd & Devon Street, Saltley, Birmingham Units 1-8, Avenue Terrace, Avenue Road, Aston, Birmingham Unit 9, Rupert Street, Aston, Birmingham Description 1999 built trade/industrial estate providing eight units. Fully let on six leases. Low site cover. Monitored CCTV. Built at the end of 2005. The terrace provides eight high quality business units with full first floor levels. Fully secure estate with monitored CCTV and electrically controlled access & exit gates. Six units let with two recently vacated. 1998 built semi detached industrial unit with large secure open storage yard. Single let on 25 year lease from 1998. Total Floor Area (Sq.ft) Total Rent ERV Asset Management Opportunities 48,783 275,180 280,075 Take surrender of three Mainstream Way units, split & relet. Potential re-gear/renewal on Duddeston Mill Road and Devon Street units. 24,000 137,292 192,000 Re-let two vacant units. 10,025 with 0.23 acre yard Re-gear & extend existing leases. 64,000 64,000 Tenant has indicated they are happy to stay beyond the break in 2013. Discussions ongoing. TOTAL 82,808 476,472 536,075 PRICE We are instructed to seek offers for the portfolio in excess of 6,000,000 (Six Million Pounds). This reflects an initial yield of 7.5% and a reversionary yield of 8.44%, allowing for usual purchaser s costs of 5.8%. The vendor may also consider individual sales. VAT The properties are elected for VAT and therefore VAT will be payable on the purchase. It is intended that the sale will be dealt with as a TOGC. FURTHER INFORMATION For further information or if you wish to arrange an inspection, please contact: Andrew Price Franck-Steier Price DD: 0121 513 0892 M: 07798 656 360 andrew.price@fspproperty.co.uk Andrew Franck-Steier Franck-Steier Price DD: 0121 513 0891 M: 07798 647 640 andrew.franck-steier@fspproperty.co.uk Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Franck-Steier Price Ltd nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Mainstream Way, Saltley, Birmingham

SITUATION The subject estate has frontages to Mainstream Way, Duddeston Mill Road and Devon Street. The immediate area is primarily industrial with Mainstream 47 Industrial Estate, Saltley Business Park and Network Park all in close proximity. Other occupiers on Mainstream Way include a large Greggs production facility and trade operators such as Edmundson Electrical. To the eastern boundary is the Birmingham & Warwick Junction Canal. DESCRIPTION Two traditional terraces of trade/industrial units with two further units, one directly to the rear of one terrace and the other a standalone detached unit. The scheme was designed as eight units and built in 1999 and completed to a high specification with brick and clad elevations under pitched profile clad roofs. The units have eaves heights of approximately 6.00 metres. There is full glazing at high level to the front and side elevations, designed partly for internal office additions. Internally tenants have fitted trade counters, offices and mezzanine storage areas to suit their own operations. The site is fully secured with palisade fencing, there is a large tarmac surfaced yard to the front of both terraces and allocated parking to each unit. Part of Unit 51-55 has a palisade fenced open storage compound which was constructed by the tenant. SITE AREA Overall the combined site areas total 1.32 hectares (3.26 acres) and has more than ample parking and loading for each unit. TENURE Freehold.

ESTATE HISTORY Since completion the scheme has proved popular with trade counter type operators. Several national companies have their Birmingham trade counter operations based on the estate. The tenants of Units 57, 59 & 61 are all trade operators while Thrifty maximise the extensive yard and car parking offered by the 100 Duddeston Mill Road unit. Jewsons currently have their lease on the market. There are asset management opportunities for a purchaser to consider including: Surrender lease on Units 51-55. Split the terrace into three units and re-let. Agree Thrifty lease renewal. The tenant has expressed interest in staying. Remove break on Devon Street lease. Discussions ongoing with occupier to assign the lease. Potentially sell off the Devon Street unit in due course. There are currently no arrears on the estate. TENANCY SCHEDULE Unit Tenant Area (sq ft) Term Lease Start Lease Expiry Rent Review (Break) 51-55 Jewsons Ltd (on assignment from Ashworth Frazer (West Midlands) Ltd) Rent ( /Sq Ft) 16,058 15 10/04/2000 09/04/2015 10/04/2010 84,000 ( 5.23) 57 Ensinger Ltd 7,006 15 27/04/2001 26/04/2016 27/04/2016 39,000 ( 5.57) 59 Negurosu Denko Co Ltd 6,130 6 15/09/2011 14/09/2017 (15/09/2014) 36,000 ( 5.87) 61 ST Piercy Ltd 5,922 15 02/03/2004 01/03/2019 02/03/2014 33,500 ( 5.66) 100 Duddeston Mill Road 120 Devon Street Scot Group Ltd (on assignment from Mercedes Benz Retail Group UK Ltd) 5,952 10 23/07/2003 22/07/2013 23/07/2013 36,700 ( 6.17) Hereward Properties Ltd 7,715 6 26/02/2010 25/02/2016 26/02/2013 (26/02/2013) 45,980 ( 5.96) TOTAL 48,783 275,180 Comments Tenant not in occupation. Lease assigned in January 2007. Fixed increase for years 4-6 to 37,500. Lease renewal. Previous rent was 34,500. Lease assigned in November 2008. AGA in place. Open market letting. Break requires 6 months notice. Unit occupied by EWS Ltd. who are looking to assign. Discussions ongoing about removal of the break.

Units 1-8, Avenue Terrace, Avenue Road, Aston, Birmingham

SITUATION Located directly off the A5127 Lichfield Road. The Avenue Road/Chester Street area has seen considerable commercial development over the past 10 years or so, nearby industrial occupiers include Anixter, ICM and Cromwell. Directly opposite the subject property is an office occupied by Cap Gemini. Within 200 yards is Aston Cross and the former HP Sauce factory site which has now been part developed with a new 120,000 sqft East End Foods cash and carry. DESCRIPTION Built to provide eight high specification business units with ground and first floor accommodation. The units were completed at the end of 2005 with full brick and glazed elevations under a curved profile roof. Each unit has a clear working height of 3 metres on the ground and first floors. There is a staircase incorporated within each unit and full glazing at first floor level to the front elevation. The first floors are used for a mixture of office and storage uses. Each unit has a part glazed loading door and designated car spaces on the forecourt. The site is fully secured with tubular steel fencing and has controlled entrance and exit gates along with monitored CCTV. The estate is let to an array of businesses, some trade counter type operators, wholesalers and internet based businesses. One unit is used as a TV studio and another by an environmental consultancy business. SITE AREA Overall the site area is 0.30 hectares (0.75 acres). TENURE Freehold.

ESTATE HISTORY Once the development was finished at the end of 2005 the units let up well and there has been little void since, as shown in the table. Unit Vacancy Period Comments 1 & 2 2 months Permanently occupied until the end of 2011 by West Midlands Police. 3 None Permanently occupied. 4 10 months Only vacant once between August 2008 & July 2009. 5 12 months Only vacant once between February 2010 & March 2011. 6 12 months Only vacant once between January 2009 & February 2010. 7 None Permanently occupied. 8 7 months Only vacant once between February 2010 & October 2010. There is an ongoing dilapidations negotiation with the former tenant of Units 1&2. The landlord is intending to return the units to a newly refurbished high grade shell condition for re-letting. The estate has little comparable quality competition in the city. There has been a rental tone on the estate that has steadily grown over the last six years. Originally the rents were around 7.25 per sqft but have improved to circa 8.00 per sqft. Further supporting comparable evidence of the few other hybrid units around the city centre can be provided if required. The annual cost of CCTV, estate maintenance and building insurance amounts to approximately 6,600 per annum (27.5p per sqft). There is currently an annual shortfall of just under 3,000 due primarily to the two recently vacated units. Further information can be provided on request. There are currently no rental arrears on the estate. TENANCY SCHEDULE Unit Tenant Area Term Lease Start Lease Expiry Rent Review (Break) Rent ( /Sq Ft) Comments 1 Vacant 3,000 Previous tenant vacated December 2011. 2 Vacant 3,000 Previous tenant vacated December 2011. 3 The Sikh Channel Community Broadcasting Company Ltd 3,000 3 01/10/2011 30/09/2014 26,292 ( 8.76) Lease renewal. Tenant has been in scheme since 2006. Lease guaranteed by D. Bal. Rent inclusive of building insurance, service charge & CCTV. 4 Parvalux Electric Motors Ltd 3,000 6 01/07/2009 30/06/2015 (01/07/2012) 24,000 ( 8.00) Break clause at Yr 3, 4 & 5 requiring 3 months notice. Fixed rental increase to 26,400 from Year 4. 3,333 repair deposit held. Service charge payment - 60 per month. 5 Avolution Cleaning Services Ltd 3,000 5 17/03/2011 16/03/2016 (17/03/2014) 24,000 ( 8.00) Lease guaranteed by Helistrat Management Services Ltd. Break clause required 6 months notice. Break penalty of 12,000+VAT. Service charge payment - 85 per month. 6 Specialmeds Ltd 3,000 3 01/02/2010 31/01/2013 7 Forest Environmental Ltd 3,000 3 01/09/2011 31/08/2014 (01/09/2012) 8 Neoglory Jewellery UK Ltd 3,000 6 01/10/2010 30/09/2016 (01/10/2015) 20,000 ( 6.67) 22,000 ( 7.33) 21,000 ( 7.00) Rent deposit of 3,333 held. Service charge payment - 75 per month. Annual break clause. 3 months notice required. Rent inclusive of building insurance, service charge & CCTV. Break clause requires 3 months notice. Fixed rental increase to 24,000 from Year 4. Service charge payment - 80 per month. Tenant has 1 month rent free in November 2012. TOTAL 24,000 137,292

Unit 9, Rupert Street, Aston, Birmingham

SITUATION Located next to Windsor Industrial Estate, directly off Rupert Street, a mile from Birmingham city centre. The surrounding area is predominantly industrial to the west and residential to the east. Industrial occupiers on the adjoining estate include Autoadapt UK, First In Service & Commisaire. Adjoining Unit 9 is a unit occupied by the British Red Cross. DESCRIPTION Constructed in 1998 the property is a semi detached industrial unit. The building has brick and part clad elevations and a pitched and hipped roof. The loading into the warehouse is from the secure compound, there is a trade counter and first floor offices internally to the front elevation. The unit has an eaves height of 6 metres. There are several tenant s mezzanine areas providing additional storage. The unit has sodium box lighting and is heated by gas fired warm air blowers. COVENANT GAP Group was founded in 1969. The company now employs over 800 staff across 60 locations around the UK. They are the UK s largest independent plant and tool hirer. The company principally hires to the utilities, building and construction industries. 2011 ( 000s) 2010 ( 000s) Turnover 74,256 74,256 Pre-tax profits 2,300 ( 766) Total assets less current liabilities 52,510 51,681 The unit has a large palisade fenced storage compound which is concreted and drained. There are an additional 21 designated car parking spaces to the front of the offices and trade counter. The unit is used as a plant hire depot. AREAS The industrial unit extends to 10,025 sqft incorporating a further 1,042 sqft at first floor which was a tenant s addition. There is approximately 2,793 sqft of additional tenant s mezzanine storage in the main warehouse area. The secure storage yard extends to approximately 0.23 acres. Overall the site area is 0.36 hectares (0.88 acres) reflecting an overall site cover of 26%. TENURE Long leasehold from Birmingham City Council. Held on a 125 year lease from 1998 at a peppercorn rent. TENANCY The property is let to GAP Group Ltd on a 25 year FRI lease from 1998. GAP Holdings Ltd act as surety. The tenant has an option to break the lease at the expiry of the 15th year which requires nine months notice. The current passing rent is 64,000 per annum which reflects 5.94 ft 2 on the industrial accomodation. There are 5 yearly rent reviews. The tenant has indicated they wish to stay beyond their break, discussions are ongoing. If the break is removed this would provide an investor with over 11 years term certain.