Unit 302Relay Park, Relay Drive, Tamworth B77 5PR

SCHENKERDB

INVESTMENT SUMMARY

n 1990’s distribution unit in prime location

n 55,236 sq.ft

n 11m eaves and 6 loading doors (4 dock level loading doors)

n Site density of 39%

n Let to Schenker Ltd at a low passing rent of £280,000 per annum (£5.07 per sq.ft)

n Lease expiry September 2017

n Lease outside the 1954 Act

n Reversionary to £345,000 per annum (based on ERV of £6.25 per sq.ft)

n £3,900,000 (assuming costs of 6.36%)

n Net initial yield of 6.75%, reversionary yield of 8.32% and capital value of only £70 per sq.ft.

LOCATION

Tamworth lies approximately 17 miles to the north east of Birmingham and 17 miles to the north of Coventry within close proximity to the M42, M6, M1, M69 and M6 Toll Motorways.

The A5 trunk road offers alternative access to Junction 1 of the M69 to the south east and Junction T4 of the M6 Toll to the north west.

The area surrounding Junction 10 of the M42 is established as one of the premier locations for distribution warehousing in the Midlands. Major developments include, Relay Park, Centurion Park and Birch Coppice Business Park.

Occupiers on Relay Park and Centurion Park include, Sainsburys, Headlam, Speedy Hire, XPO Logistics, AAH Pharmaceuticals and Aldi.

Birch Coppice has attracted a number of major occupiers including, Volkswagen, UPS, Euro Car Parts, Bunzl, CEVA Logistics, Ocado, Bristan Group and Severn Trent.

St Modwen are currently onsite developing a new 53,000 sq.ft unit adjacent to the existing units at Centurion Park.

SITUATION

The property lies in a very prominent position within 200 metres of Junction 10 of the M42 on Relay Park. Local amenity is provided by Junction 10 service station with occupiers including Travelodge, Premier Inn, Esso, Costa Coffee, Greggs and M&S Simply Food.

DESCRIPTION

The property comprises a modern two bay distribution warehouse with ancillary offices on a self contained site. The unit is of steel portal frame construction with part brick, part clad elevations under a double skinned profile clad roof. There is heating provided by roof hung heaters and sodium spot lights to warehouse. The offices are 2 storey and benefit from floor boxes, suspended ceilings and male and female WC’s to each floor. There is a large car park to the front of the offices with approximately 70 spaces.

The warehouse benefits from an excellent eaves height of 11.20m with access provided via 4 dock level and 2 level access loading doors leading out onto a concrete surfaced loading yard. The yard has a depth of approximately 50m.

ACCOMMODATIONThe property has been measured in accordance with the latest RICS Code of Measuring Practice and extends to the following areas on a GIA basis:

SITEThe site totals approximately 3.23 acres providing a site density of 39%.

TENUREFreehold.

TENANCYThe property is let to Schenker Limited for a term of 5 years with effect from 28th September 2012 on a full repairing and insuring basis subject to a Schedule of Condition.

The lease is contracted outside the security of tenure provisions of the Landlord and Tenant Act 1954.

The current passing rent is £280,000 per annum (£5.07 per sq.ft).

AREA SQM SQFT

Warehouse 4,667.60 50,242

Ground Floor Offices 231.96 2,497

First Floor Offices 231.96 2,497

TOTAL 5,131.52 55,236

COVENANT & TENANT OCCUPATIONWith around 2,000 locations in all of the world’s most important economic regions, the parent company DB Schenker employs over 95,000 people and is a part of Deutsche Bahn AG.

With 14 locations and over 750 employees, the company provides the complete range of land operations, international air and ocean freight forwarding and all related integrated logistics services and global supply chain management throughout the United Kingdom.

For the last 3 financial years Schenker Limited reported the following accounts:-

INDUSTRIAL MARKET COMMENTARY AND RENTAL VALUEThere has been considerable rental growth within the prime Midlands industrial market over the past 18 months primarily due to a lack of speculative development sub 75,000 sq.ft and considerable demand. We understand that there are currently no units of this size and specification within the immediate area and as such on reletting a rent considerably in excess of the passing rental could be achieved.

We understand that at Centurion Park, DFS are under offer to take a speculative unit of 53,000 sq.ft on the basis a new 10 year lease at a rent of £6.50 per sq.ft. The unit is currently under construction.

At Birch Coppice, there are two speculative units under construction. One of the buildings, a unit of 47,250 sq.ft is under offer at £6.50 per sq.ft on the basis of a new 15 year lease.

A further unit of 63,000 sq.ft is under construction with completion due August 2016. The quoting rent is £6.50 per sq.ft

Taking into account the above, we consider the rental value of the property to be in excess of £345,000 per annum reflecting £6.25 per sq.ft.

31/12/14(£’000s)

31/12/13(£’000s)

31/12/12(£’000s)

Turnover £254,567 £280,718 £341,162

Pre Tax Profit (£10,729) (£3,328) £429

Shareholders’ Funds (£9,446) £8,275 £12,772

VATThe property has been elected for VAT and therefore VAT will be payable. It is intended that the property will be sold as a TOGC, subject to purchaser’s status.

EPCThe property has an energy performance rating of C 67. A copy of the certificate is available on request.

PROPOSALWe are instructed to seek offers in excess of £3,900,000 (Three Million Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT.

On the basis of a rental value of £6.25 per sq.ft a purchase at this level would represent the following yield profile and capital value, allowing for purchaser’s costs of 6.36%.

Net Initial Yield: 6.75%Reversionary Yield: 8.32%Capital Value: £70 per sq.ft.

FURTHER INFORMATIONShould you require further information or wish to arrange an inspection please contact:-

ANDREW PRICE0121 513 0892andrew.price@fspproperty.co.uk

ANDREW FRANCK-STEIER0121 513 0891andrew.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. 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.

Franck Steier Price Ltd

Third Floor, Victoria House

114-116 Colmore Row, Birmingham, B3 3BD