starley way, b37 7hb

PRIME INDUSTRIAL INVESTMENT 2. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

100% Prime West Midlands Industrial Investment 3. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

INVESTMENT SUMMARY

‹ 100% Prime West Midlands Industrial Investment

‹ Strategically located 2 miles North West of Junction 6 of the and 2.1 miles South West of Junction 4 of the

‹ Situated adjacent to Birmingham International Airport, Birmingham International Railway Station and within close proximity to JLR’s plant. Surrounding occupiers include DHL, Palletline and XPO Logistics

‹ Freehold site extending to 5.04 acres (2.04 hectares)

‹ Gross Internal Floor Area extending to 125,404 sq ft (11,650 sq m)

‹ Let in its entirety to Schumacher Packaging Limited, a leading European manufacturer and innovator of cardboard packaging. The lease benefits from a guarantee from German based parent company Schumacher Packaging GmbH, a 5A1 covenant

‹ The tenant has made substantial investment in plant and machinery at the building over the past 12 months

‹ FRI lease with a contractual term expiring 4 November 2026, providing an unexpired term of approximately 5.5 years, at a passing rent of £673,000 p.a. which reflects a low rent of £5.37 per sq ft

‹ The rent is subject to an upward only RPI-linked rent review on 5th November 2024 with a collar and cap of 2.0% & 4.0%, compounded annually

PROPOSAL

Savills is instructed to seek offers in excess of £12,000,000 (Twelve Million Pounds) for the freehold interest, subject to contract and exclusive of VAT.

A purchase at this level would reflect a low capital value of £96 per sq ft, a Net Initial Yield of 5.26%, and a guaranteed minimum Reversionary Yield of 5.80% following review in November 2024, allowing for standard purchaser’s costs of 6.71%. 4. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

Adjacent to with surrounding occupiers including DHL and Palletline Aberdeen

Dundee

M90

EDINBURGH GLASGOW AIRPORT 5. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT M8 GLASGOW AIRPORT Edinburgh M77

LOCATION & CONNECTIVITY M74 NEWCASTLE AIRPORT

The property is located in the borough of Solihull in the West Midlands, a thriving business destination in the NEWCASTLE UPON TYNE centre of the UK just 8 miles east of Birmingham, 93 miles south of Manchester and 96 miles north west of . A1(M) Solihull has a large and established prime industrial market which spans from Hams Hall at Junction 9 of the M42 to the north of the town and to Blythe Valley Park at Junction 4 of the M42 to the south. Solihull is ideally M6 positioned to serve a wide range of distribution and manufacturing occupiers.

The property itself sits in an area identified as ‘UK Central Hub’ which is at the heart of the Solihull industrial market. Located at Junction 6 of the M42, it is the most high profile development growth project in Europe.

A1(M) UK Central Hub is nationally and internationally connected via Birmingham International Airport and Birmingham International Railway Station. This will be further enhanced with the arrival of Birmingham HS2 LEEDS M55 Preston Hull Interchange Station later this decade. M62 M62 The location’s unparalleled access to the UK’s road network means that 75% of the population can be reached M60 M1 s within a 3 hour drive of the property making this a prime industrial and distribution location. M62 MANCHESTER iu d LIVERPOOL a r MANCHESTER AIRPORT e v i Stoke-on-Trent r d Motorway Miles Time City Miles Time r M6 M1 M42 (J6) 2 5 mins Birmingham 8 18 mins u

o EAST MIDLANDS 11 16 mins h M6 (J4) 2 4 mins AIRPORT 3 M54 Norwich M6 Toll 8 10 mins Leicester 31 30 mins Leicester M42 Nottingham 46 47 mins M40 (J3A) 11 13 mins M6 A1(M) BIRMINGHAM BIRMINGHAM A14 M5 (J4A) 22 23 mins Manchester 93 1 hr 43 mins AIRPORT M42 Cambridge M1 (J19) 26 26 mins Bristol 95 1 hr 31 mins COVENTRY AIRPORT M5 A14 London (M25) 96 1 hr 27 mins M40 M1

M50 Milton M11 Keynes Ipswich Gloucester A1(M) AIRPORT Rail Freight Terminal Miles Time Cargo Airport Miles Time Swansea Swindon M25 Hams Hall Rail Freight Terminal 7 14 mins Birmingham 1 3 mins

Birmingham Lawley Street 8 22 mins East Midlands International 35 37 mins M4 M4 LONDON CARDIFF HEATHROW Birmingham Intermodal Freight Terminal 14 25 mins BRISTOL AIRPORT Daventry International Rail Freight Terminal 29 34 mins M25 M26 M3 M23

GATWICK M5 AIRPORT

SOUTHAMPTON Exeter

Plymouth 6. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT A 4 5 0 M6 d M6 oa R th ea H ill Starley Way is sh le o an established C SITUATION e u n e commercial locationv A d n which is homere to other The property is situated on Starley Way to the north of Birmingham Airport and is accessed via the o o high profileM tenants Way dual carriageway which leads to both Junction 6 of the M42 Motorway (2 miles south east) via the including DHL and Coventry Road and Junction 4 of the M6 Motorway (2.1 miles north east) via the A446.

A A 4 Starley Way is an established commercial location which is home to other high profile tenants including DHL, Palletline 4 M42 4 5 6 0 Palletline and Porcelanosa. There are a wide range of other industrial occupiers situated in the immediate area

d including at Elmdon Trading Estate and Prologis Park . a o R

h t The presence of the automotive sector continues to fuel economic activity in the region, including Jaguar a e H ’s £1bn investment to convert both the and Solihull factories into specialist EV

l l i h s production centres. Other investment includes the construction of the new logistics operations centres and its Marston e l Green o new logistics hub under construction in Solihull. C Bi cke nh The property’s situation is ideally suited to the tenant, whose employees and clients utilise the air and rail ill Roa d travel connections which are situated within 1 mile to the south of the property.

e ill Lan enh ick B

Starle y Way

National Exhibition Centre

e n M42 a L

l l i Birmingham h n e Airport k c i B Birmingham International

Resorts World 7. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

LEA HALL RAILWAY STATION M42

M6 MOTORWAY

MARSTON GREEN RAILWAY STATION

BIKENHILL LANE

The property is NEC situated on Starley BIRMINGHAM AIRPORT Way to the north of M42 Birmingham Airport and is accessed via the A446 BIRMINGHAM INTERNATIONAL Bickenhill Way dual RAILWAY STATION carriageway SITE OF HS2 BIRMINGHAM INTERCHANGE STATION

SITE OF JLR’S LOGISTICS OPERATIONS CENTRE 8. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

DESCRIPTION

The property comprises a high quality industrial warehouse which was purpose built for the tenant in the early 2000’s and further extended approximately 8 years ago. The total site area is 5.04 acres (2.04 hectares) and the site coverage is 57%.

Extending to a Gross Internal Area of 125,404 sq ft (11,650 sq m), the property incorporates production, assembly, loading and storage space together with offices and ancillary staff accommodation.

The majority of the building benefits from an eaves height of 5.5m plus, measured to the underside of the haunch, with some production areas of the building having lower clear working height.

The property is subject to the following specification:

‹ Steel-framed construction; ‹ Solid concrete floors;

‹ Profile clad elevations under metal-sheet ‹ Secure gated yard; roofs; ‹ Dual access ‹ 6 roller shutter doors;

‹ Mix of sodium box and suspended strip lighting;

The property incorporates production, assembly, loading and storage space together with offices and ancillary staff accommodation. 9. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition). The Gross Internal Areas are as follows:

Unit Name Sq Ft Sq M Warehouse 117,692 10,933 Covered and enclosed loading / storage area 4,108 382 Office 3,604 335 Total 125,404 11,650

The building benefits from 49 parking spaces and the site extends to approximately 5.04 acres (2.04 hectares).

TENURE

The property is held freehold, under title number WM691314.

TENANCY

The property is let in its entirety to Schumacher Packaging Limited for a term of 7 years from 5th November 2019 to and including 4th November 2026, providing a lease term of approximately 5.5 years to expiry. The lease is guaranteed by the tenant’s German parent company, Schumacher Packaging GmbH.

The lease is drawn on full repairing and insuring terms at a passing rent of £673,000 per annum, equating to £5.37 per sq ft.

The lease has an upward only RPI linked rent review on 5th November 2024, subject to a collar and cap of 2% and 4%, compounded annually. This will provide a minimum increase to £743,046 p.a. (£5.93 per sq ft) at review based off the collar of 2% compounded.

The lease is excluded from security of tenure provisions of the 1954 Act but the tenant has an option to renew the lease for a further 7 years upon the same terms granted under this tenancy. The tenant can exercise this extension at any point up until 6 months prior to the lease expiry i.e. 4th May 2026. 10. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

COVENANT INFORMATION

TENANT PROFILE GUARANTOR PROFILE

D&B Rating: 3A2 D&B Rating: 5A1

Schumacher Packaging Limited is a leading cardboard packaging manufacturer and innovator of packaging The lease is subject to a full parent company guarantee from Schumacher Packaging GmbH. solutions to a variety of industries. Services include packaging development, production, design, just-in-time Formed in 1948, Schumacher is a substantial German business with over 30 sites across Europe, including Germany, logistics packaging and strategic advice. Poland, the Czech Republic, Austria, Netherlands and the UK. Formerly known as Jaffabox Limited, the business was acquired by German headquartered business A summary of their latest consolidated financial accounts are as follows: Schumacher in November 2019 and subsequently renamed and rebranded. The business has since been subject to a multi-million pound investment program by Schumacher, including the installation of a state- of-the-art BHS corrugator that can manufacture over 50,000 plain and printed boxes per hour on a fully automated basis.

The business has experienced a significant surge in demand over the past 12 months and has successfully For the year end For the year end For the year end secured relationships with a range of new clients, including Amazon. Further investment in machinery is 31 December 2018 31 December 2017 31 December 2016 planned as the business continues to grow to meet increased demand from new and existing clients for its Sales Turnover € 430,803,425 € 402,877,915 € 369,290,066 products and services. Profit After Tax € 14,222,654 € 9,354,410 € 7,976,737 Existing clients include: Total Equity €180,504,403 €169,912,339 €158,888,690

Following the acquisition of the company, the accounting period was changed to 31st December to fall in line with the parent group accounting period. This part year and the previous 3 years of financial accounts are as follows:

Part Year For the year end For the year end For the year end For the 5 months end 31 July 2019 31 July 2018 31 July 2017 31 December 2019 Sales Turnover £5,210,283 £13,121,747 £12,041,750 £10,004,204 Profit Before Tax £734,059 £2,164,798 £1,626,978 £1,365,651 Tangible Net Worth £7,165,637 £11,111,411 £8,895,398 £7,698,770 11. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

OCCUPATIONAL MARKET

The West Midlands region witnessed record-breaking take-up in 2020 with a 65% year-on-year increase. The surge in demand, led from a macro shift in e-commerce coupled with an under-supply of stock, has led to rising rents across all grades of industrial property.

With just 0.54 years’ worth of Grade A supply in the region and supply of grade B and C accommodation also significantly diminished, it is expected that the market will continue to see further rental growth going forward.

The presence of the automotive sector in the West Midlands continues to fuel economic activity, including ’s £1bn investment to convert both the Castle Bromwich and Solihull factories into specialist EV production centres. Other investment includes the construction of the new logistics operations centre, being developed for JLR in Solihull.

Supply chains associated with JLR and other major manufacturers based in the region will continue to remain an active part of the industrial occupational market in the West Midlands together with substantial demand from Logistics occupiers and SMEs.

The supply of industrial development land within the Solihull market is severely restricted, and as such there are very few new units in the development pipeline. The most recent speculative development was of 2 units (77,484 sq ft and 234,718 sq ft) at Prologis Park Birmingham Interchange, completed in 2020 where both units were pre-let ahead of completion.

Land values equal to £1.3 million per acre (gross), amongst the highest in the Midlands, have recently been achieved within close proximity to the property, representing the strength of this area as an industrial location.

Comparable lettings for the subject property include:

Rent p.a. Date Address Size (sq ft) Tenant Term (Break) (£ per sq ft)

Oct-20 Unit 500, Solar Park, Solihull 67,802 Norton Motorcycles 5 (3) years £7.15

Jul-20 Highlands Road, Solihull 262,114 Farm Foods 20 years £6.75

Jul-20 Unit 1, Ravensbank, Redditch 91,465 DCS 17 (10) years £6.50

Aug-18 Midpoint 105, 105,506 Parts Alliance Group 10 (5) years £6.25 12. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

INVESTMENT MARKET

The Industrial sector has continued to outperform other real estate sectors over the past 12 months. Transactional volumes in 2020 totalled £4.7bn, a 25% increase on 2019. Transactional Adapting to consumer demands, the market performed strongly in H2 2020 with 76% of capital deployed occurring in the second half of the year. volumes in 2020

The industrial sector has continued to outperform other investment markets, totaled £4.7bn, buoyed by a scarcity of good quality investment opportunities and demand-led a 25% increase upward pressure on rental levels - a trend which is expected to continue for the on 2019 foreseeable future, especially for those properties in key locations.

The sustained demand seen from a broad spectrum of investors recognises the resilience of the industrial sector, alongside an occupational market which continues to strengthen due to changing consumer habits and an increase in ‘on shoring’.

The following table highlights a number of relevant investment transactions:

UXT (Earliest Property Size (Sq Ft) Date Income Vendor Purchaser Price NIY determination)

1 Bickenhill Lane, Solihull 42,604 Mar-21 £570,000 4.33 Goodman International £13,250,000 4.03%

2 101 Stonebridge Cross, Droitwich 57,491 Feb-21 £313,898 5.1 BHL Investments Urban Logistics REIT Plc £5,400,000 4.95%

3 5100 Cross Point Business Park, Coventry 146,701 Jan-21 £862,235 3.47 BMO Real Estate Hines Global REIT £17,100,000 4.72%

4 Prologis Park, Central Boulevard, Coventry 61,191 Dec-20 £379,000 3.4 Curtis Banks Copeley £7,000,000 5.05%

5 Langley Mill, Derby Road, Nottingham 255,680 Sep-20 £1,214,480 3.92 Tritax Big Box REIT Plc Exeter Property Group £23,000,000 4.94%

6 Heathcote Way, 213,397 Oct-20 649,653 10 Nuveen Real Estate Colliers Global Investors £12,200,000 4.99%

7 Vespa Point, Prologis Park, Coventry 60,246 Jun-20 £418,030 5 Chesterhouse Properties Leftfield Capital £7,395,000 5.30%

8 Middlemarch Business Park, Coventry 227,199 Dec-19 £1,312,095 11 Merseyside Pension Fund Private Investor £25,000,000 4.92% 13. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT

PROPOSAL

Savills is instructed to seek offers in excess of £12,000,000 (Twelve Million Pounds) for the freehold interest, subject to contract and exclusive of VAT.

A purchase at this level reflects a low capital value of £96 per sq ft, a Net Initial Yield of 5.26%, and a guaranteed minimum Reversionary Yield of 5.80% following a review in November 2024, allowing for standard purchaser’s costs of 6.71%.

DATA ROOM

Access to the data site can be provided upon request. CONTACT EPC

The property has an EPC rating of C69. MATT JENNS MAX HULSE

T: +44 (0)121 634 8447 T: +44 (0) 121 634 8492 M: +44 (0)7968 550 351 M: +44 (0) 7870 999 287 VAT E: [email protected] E: [email protected]

The property is elected for VAT.

IMPORTANT NOTICE Savills and their client give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf ANTI MONEY LAUNDERING or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, A successful bidder will be required to provide anti-money laundering information in accordance with HMRC equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. regulations when heads of terms are agreed. Designed and produced by Core. core-marketing.co.uk 0121 232 5000. May 2021. starley way, birmingham b37 7hb