MODERN DISTRIBUTION WAREHOUSE INVESTMENT

Unit B, Swift Park, Swift Valley Industrial Estate,Old Leicester Road, Rugby, CV21 1DZ

INVESTMENT SUMMARY• SwiftValleyIndustrialEstateisanestablisheddistributionlocation withinthe‘GoldenTriangle’andclosetoJunction1oftheM6.

• Moderndistributionunitof4,198.29sq.m(45,189sq.ft).

• LettoH&KEquipmentLimitedwhoalsohavealargemanufacturing facilityonSwiftValley.

• Currentpassingrent£214,210perannum(£4.74persq.ft).

• Offerssoughtinexcessof£2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds),subjecttocontractandexclusiveofVAT.

• Apurchaseatthispricereflectsanetinitialyieldof9.00%assuming purchaser’scostsof5.80%andacapitalvalueof£50.00persq.ft.

LOCATIONRugby is locatedapproximately35mileseastofBirmingham,22milessouthofLeicester

and21milesnorthwestofNorthampton.Thetownhasexcellentroadcommunicationswith

Junction1oftheM6twomilesnorthofthetowncentre.

Thetownlieswithinthe‘GoldenTriangle’ofprimedistributionlocationsformedbytheM1,

M6andM69.80%ofthecountry’spopulationcanbereachedfromthisareawithinafour

hourdrivetime.

SITUATIONThepropertyissituatedonSwiftPark,withinSwiftValleyIndustrialEstate,oneoftheprincipal

distribution locationswithin the town. Thepark hasdirect access to theLeicesterRoad

(A426)connectingwithJunction1oftheM6undertwomilestothenorth.OccupiersonSwift

Valley includeUnipart,TNT,Co-op,Britvic,TechnicolorandVolvo. Thetenantoccupiesa

largemanufacturingfacilityfrontingBrownsoverRoadandCosfordLaneandusesthesubject

propertyforstorageanddistribution.

Thepropertyliesinaveryprominentpositionontheparkwithvisibilityfromthreefrontages

BrownsoverRoadandOldLeicesterRoad,whichbothprovidedirectaccesstotheA426,

andSwiftParkwhichprovidesvehicleaccessandentrancetotheunit.

DESCRIPTIONThepropertycomprisesapurposebuiltdetachedwarehouseunitconstructedincirca1990.

Thebuildingisoftwobaysteelportalframeconstructionwithelevationsofplasticcoated

steelprofilecladdingontheouterskinandablockworkinnerskintoaheightof2.3m.

Theroofismetalcladwithtranslucentroofpanelsandthereisaconcretefloor.Theeaves

heightis7.8metres.Thetenanthasinstalledasubstantialmezzaninewithinthewarehouse.

Loadingforthewarehouseisfromtwolevelaccessandtwodocklevelloadingdoorsatthe

rearoftheunitfrontingontoaconcretesurfacedyard.

Tothenorthwestcornerofthewarehouseisanintegraltwostoreyofficebuildingwhich

hasbrickelevations.Internallytheofficeshavesuspendedceilings,recessedlightingand

centralheating.

Thereare80carparkingspacesonsitealongthewesternelevationofthewarehouse.

SITE AREAWe understand the building occupies a site of 1.11 hectares (2.74 acres) with a site

coverageofapproximately35%.

ACCOMMODATIONThepropertyhasbeenmeasuredonagrossinternalareabasisinaccordancewiththe

RICSCodeofMeasuringPractice(6thEdition)andprovidesthefollowingfloorareas.

TENUREFreehold.

Description

Warehouse 3,689.75 39,813

Offices Ground Floor 249.77 2,688

Offices First Floor 249.77 2,688

TOTAL 4,198.29 45,189

Sq.m Sq.ft

TENANCYThepropertyisletforatermof25yearsfrom25March1990toH&KEquipmentLimited,onassignment

fromH&KRugbyLimited,expiring24March2015.Theleaseisheldonfullrepairingandinsuringterms

subjecttofiveyearlyupwardonlyreviews.Thecurrentrentis£214,210perannum(£4.74persq.ft).

COVENANTSH&K Equipment Limited isamajormanufacturerandsupplierofstainlesssteelkitchenandcatering

equipmenttothefoodserviceindustry.Thecompany’sclientsincludeSubwayandMcDonalds.Inthe

UKthecompanymanufactureproductsfromtheirfacilityonCosfordLaneinSwiftValleyandusethe

subjectpropertyforstorageanddistributionduetoitsproximitytotheCosfordLanesite.Asummaryof

theirlastthreeyearsaccountsissetoutbelow.

VATThepropertyhasbeenelectedforVATandthereforeVATwillbepayableonthepurchaseprice,itis

howeveranticipatedthatthesalewillbedealtwithbywayofaTOGC.

PROPOSALWeare instructed toseekoffers inexcessof£2,250,000 (Two Million Two Hundred and Fifty

Thousand Pounds),subjecttocontractandexclusiveofVAT.Assumingcostsofpurchaseat5.80%

thisreflectsanetinitialyieldof9.00%andacapitalvalueof£50.00persq.ft.

FURTHER INFORMATIONForfurtherinformationorviewingspleasecontact:

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. Neither 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.

Andrew Franck-Steier0121 237 6336Andrew.franck-steier@fspproperty.co.uk

Ben Blackwall0121 237 6331Ben.blackwall@fspproperty.co.uk

43 Temple Row Birmingham B2 5LST: 0121 237 6070 F: 0121 237 6100

Turnover 66,912 57,563 48,536

Pre-tax profit 2,380 3,290 2,434

Shareholder’s Funds 7,675 6,078 3,995

31/12/2009£’000

31/12/2008£’000

31/12/2007£’000