PENLLERGAER BUSINESS PARK, SWANSEA INDUSTRIAL INVESTMENT

PENLLERGAER BUSINESS PARK, SWANSEA INDUSTRIAL INVESTMENT

MOTORWAY SERVICES M4/J47 M4 DRAGON 24 OFFICE DEVELOPMENT (UNDER CONSTRUCTION) M4 TO CARDIFF NPT COUNCIL OFFICES EMS WELSH ASSEMBLY GOVERNMENT OFFICES EXPANSION LAND SWANSEA

INVESTMENT SUMMARY High quality industrial facility of 8,255 m 2 (88,874 ft 2 ) Accessible location only ½ mile from J47 of the M4 motorway Large site of 27.7 acres Includes 15.95 acres of expansion land with potential for additional development New lease with just under 10 years unexpired Price of 3.5 million reflects a low capital value of 39 per ft 2 LOCATION The property is located on the outskirts of Swansea, just off Junction 47 of the M4 motorway, approximately 45 miles west of Cardiff and 83 miles west of Bristol. Swansea city centre is approximately 5 miles south of the property and has a mainline railway station that provides a regular fast link to Cardiff and London Paddington. Swansea is the main city serving South West Wales and has a population of approximately 230,000. The city is host to two Universities and is an established base for major public and private sector employers such as the DVLA and Admiral Insurance, as well as a number of industrial and manufacturing operations. ETL Issues Ma A 48 M 4 M 4 A 48 SITUATION Situated just ½ mile from Junction 47 of the M4, the property is easily accessed via the A48, which also provides a direct link to Junction 46. The property is on, close to the Welsh Assembly Government offices and directly opposite the new Dragon 24 office development scheme currently being completed by RO Developments. ETL Tanks CDKS CDK DESCRIPTION A modern industrial facility, comprising a gross internal area of approximately 8,255 m 2 (88,874 ft 2 ) and situated on a site of 11.75 acres (4.78 ha). There is additional expansion land of 15.95 acres (6.45 ha), so the total site area is approximately 27.7 acres (11.23 ha). Track El Sub Sta CDK El Sub Sta Constructed in 2000 the building is a steel framed single storey structure with clad elevations. There are two open span production bays, a minimum eaves height of approximately 6 metres and a loading bay facility on the south elevation. The property has been specifically adapted and fitted out for the current use, with clean air and controlled environments for the manufacture of electronic products for the automotive industry. There is also high quality office space, reception facilities at the front of the building and extensive car parking. 0m 50m 100m 150

ACCOMMODATION ACCOMMODATION M² FT² Warehouse, workshop and ancillary 3,318 35,722 Clean room 1 1,326 14,273 Clean room 2 2,091 22,507 Offices and reception 1,259 13,557 Pump house 25 269 Mezzanine 236 2,546 TOTAL 8,255 88,874 There are approximately 190 car parking spaces, with circa 160 in the main car park and the remainder at the front of the property. TENURE Freehold, subject to the occupational lease. TENANCY The property is let to Electronic Motion Systems UK Limited on a 10 year full repairing and insuring lease, to expire on 31 August 2019. The current rent is 360,000 per annum exclusive, subject to a 5 year upward only rent review. TENANT COVENANT Electronic Motion Systems UK Limited (EMS), designs and manufactures electronic custom control modules and systems. The Company was founded in 1984, starting out as a division of Phillips Electronics. It now focuses on delivering high quality products on long term contracts, to a geographically diverse customer base primarily of Tier 1 and 2 automotive suppliers. The Company recently won a new contract to design and deliver approximately 400,000 power steering systems to a major car manufacturer. Recent capital investments, assisted by funding from the Welsh Assembly Government, have enabled upgrading of production lines and eliminated volume capacity constraints. Continued investment in the Company s Canadian R&D operation has resulted in the Company being well positioned to capitalize on the recovery of the worldwide automotive sector, particularly within the hybrid/electric area with newly developed technology. The EMS Swansea facility is operated by a skilled workforce working from a high quality manufacturing plant, within a class 10,000 clean room/controlled environment. Further information can be found at www.electronicmotionsystems.co.uk

FURTHER INFORMATION To arrange an inspection of for additional information, please contact the joint agents: Jonathan Phillips 029 2072 6046 jonathan.phillips@kingsturge.com 029 2022 7666 A summary of the most recent accounts for EMS are as follows: Year Ending 31/12/2008 31/12/2007 31/12/2006 Turnover 19,015,000 40,850,000 28,727,000 Pre-Tax Profits (6,034,000) (25,544,000) (15,501,000) Shareholders Funds (7,612,000) (1,578,000) (11,327,000) Rowland Jones 01792 648809 rowland@rowlandjones.co.uk A full set of the 2008 financial statements are available upon request. We have been advised by our clients that after re-classification of intercompany obligations**, the shareholders funds at the end of 2008 are positive, while the EBITDA excluding related party expenses and exceptional items can be analysed as follows. Year Ending 31/12/2008 31/12/2007 31/12/2006 EBITDA (276,000) (14,193,000) (13,937,000) Shareholders Funds ** 11,751,000 12,612,000 3,875,000 VAT We understand the property is elected for VAT, so the disposal can be treated as a transfer of a going concern (TOGC). PROPOSAL Offers are invited in the region of 3.5 million (three million five hundred thousand pounds). This reflects a net initial yield of 9.72%, low capital value of 39 per ft 2 and includes all of the expansion land. Crown Copyright 2008. All rights reserved. Promap licence number 100020449. King Sturge licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. MISREPRESENTATION CLAUSE. The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge 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. 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 or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property. SUBJECT TO CONTRACT EXCLUSIVE OF VAT WITHOUT PREJUDICE JANUARY 2010