Investment - Industrial

Upon the instruction of Rio Tinto Alcan

Of potential interest to investors, developers and owner/occupiers

Cromarty Industrial Park, , Ross-shire, , IV18 0LE

October 2011

• High yielding, multi-let industrial park on a site extending to over 240 acres. • Adjacent to Firth Port – the UK’s premier Inspection, Repair & Maintenance Port. • 136 acres of potential development land. • Significant opportunity for asset management and income generation. gva.co.uk/investment Location

Executive Summary The subjects are located within the Inner district of the Highlands Region which has an indigenous population of • Situated on a prominent site to the North of the approximately 144,375. It’s main sectors of activity include Cromarty Firth in the town of Invergordon all to public sector, tourism, life sciences, financial and business the South of the A9 between and Tain, services. approximately 24 miles North of Inverness. • Former Aluminium Smelter plant (closed in 1981) The district’s level of unemployment has been consistently lower which has been proactively remediated having than that of the Scottish average and there are a number of Invergordon regard to use in accordance with Land Quality major initiatives to drive growth in emerging sectors including the assessments, in consultation with SEPA and renewable energy sector using Cromarty Firth as a major deep- Highland Council. water facility. Inverness

• Approximately 261,000 sq ft of industrial Cromarty Firth Industrial Park is located in Invergordon just to accommodation offering a variety of unit sizes. the South of the A9, midway between Dingwall and Tain and Aberdeen • Approximately 18.5 acres of open secure approximately 24 miles North of Inverness. storage land. The site is located to the North of the town of Invergordon SCOTLAND • Approximately 136 acres of development land. adjacent to the Inverbreakie Industrial Estate where Whyte & Mackay are a principal occupier. • Income - £475,000 pa, net of insurance, utility Dundee and service charges. • Potential ERV of £656,000 pa. • 14 tenants with unexpired terms between 1-5 Glasgow Edinburgh years. • Offers in excess of £4.48M are invited comprising the following: – Cromarty Firth Investment Park - £3.725M – Development Land - £750,000

Leeds

Cromarty Firth Industrial Park, Invergordon, Ross-shire, Scotland, IV18 0LE Manchester

Liverpool

Birmingham ENGLAND WALES

Cardiff Bristol London Description Schedule of Areas

Cromarty Firth Industrial Park is planned to form a substantial industrial complex of approximately 240 acres. The complex Unit No Tenant GIA (Sq Ft) Site Area (acres) has been planned to provide a mixture of warehouse, workshop, 1 Highland Waster Services 237 - office and open storage accommodation. 2/1 Alcan 2,206 - The Park benefits from connectivity direct to the port which is 2/2 Highland Scot Car Club 3,358 - used by tenants for the import and export of bulk materials and 2/3 Vacant 10,269 - for the load-out of substantial fabricated units for use in the oil industry and renewable energy sector. 9 Highland Waste Services 2,260 0.59 16 Lyndon Scaffolding plc 2,583 0.21 The site was developed in the mid 90’s after a period of 17 Vacant 51,841 - extensive decommissioning of the former aluminium smelter plant that operated on the site from 1971 to 1981. The 20 + 21 (yard) + 17 (yard) Babcock Network 761 1.69 development of the site included infrastructure upgrading to the * 21/1 Ferguson Transport - 0.52 adoptable standards of the local authority and utility providers * 21/4 G L Scaffolding - 0.67 and the subsequent adoption of roads, street lighting and the electricity distribution and supply. Potable water supply and * 21/5 Highland Waste Services - 2.48 surface and foul water treatment is provided by the Landlord, * 21 (6-8) Bruce Lindsay Coal - 3.02 and tenants are charged for these services based on the Scottish Water tariff current at the time. 24 Vacant 409 0.01 25 (1,2) Vacant 7,546 0.77 The service charge for 2011 is budgeted for a total of £46,700 of 25/3 Port Services 3,746 1.15 which 63% is presently recoverable from tenants. 26 Highland Council 27,460 1.29 The majority of the industrial buildings are of steel frame 27 Vacant 8,202 0.58 construction with concrete floor, concrete dado walls with 29-30 Isleburn 61,442 6.58 profiled aluminium sheets above, all under a pitched aluminium sheet roof incorporating translucent Perspex panels for natural * 32 Balcas - 12.58 lighting.

The Park has attracted a variety of occupiers in the service, * denotes storage land distribution, waste, energy and steel fabrication sectors. Most recently terms have been agreed for a major Bio-mass plant to be sited at the park subject to planning, all to be operated by CPH Limited.

Cromarty Firth Industrial Park, Invergordon, Ross-shire, Scotland, IV18 0LE Tenancy schedule

Unit No Tenant Term (years) Expiry Date Rent (p.a.) Next Rent Review Notes 2(2) Highland Slot Car Club 10 14.08.2014 £60.00 15.08.2013 Based on RPI 9 Highland Waste Services Ltd 10 (Tenant has option to extend 31.07.2015 £7,845.60 01.08.2015 Lease to Highland for 10 years) (if lease continues beyond expiry) Waste Services not yet Based on higher of RPI/market rent completed 16 Lyndon Scaffolding Plc 1.5 22.11.2012 £6,542.89 ----- 17, 20 and Babcock Network Limited 2 ----- £27,458.31 ----- Lease not yet 21(Yard) completed 21(1) Yard Ferguson Transport (Spean 5 18.03.2015 £4,092.00 19.03.2015 (if lease continues beyond Bridge) Limited expiry) Based on RPI 21(4) G L Scaffolding Limited 9 30.06.2013 £5,001.52 01.07.2013 (if lease continues beyond expiry) Based on RPI 21(5) Highland Waste Services Limited 10 (Tenant has option to extend 31.07.2015 £35,532.98 01.08.2015 Variation (to add part for 10 years) (if lease continues beyond expiry) of Unit 21 Yard) not yet Based on higher of RPI/market rent completed 21(6-8) John Kelly Fuels (Ireland) Limited/ 5 22.10.2012 £43,214.66 23.10.2013 Bruce Lindsay Coal Limited (if lease continues beyond expiry) Based on RPI 25(3) Port Services Limited 5 21.10.13 £18,642.76 22.10.2014 Variation and partial Based on RPI renunciation (to remove Unit 25(1-2) not yet completed 26 Highland Council 15 28.02.2020 £72,000.00 01.03.2015 (Tenant has option to terminate Based on market rent on 01.03.2014, 01.03.2016, 01.03.2018) 29-31 Isleburn Limited 9 24.09.2016 £168,037.83 25.09.2015 Based on lower of 2.5% p.a. increase/RPI 4.808 ha, 2 silos, Balcas Bioenergy Limited 75 (Tenant has option to 24.02.2083 £77,700.00 25.02.13 Based on 2.5% p.a. increase etc. terminate on 25.02.2033) Land Orange Personal 20 (Tenant has option to 11.08.2022 £5,337.13 12.08.2011 Communications Limited terminate on 12.08.2012 and Based on higher of RPI/market rent 12.08.2017) Land Saltburn Community Association 21 (Landlord has option to 11.01.2025 £1.00 (if demanded) ----- terminate on giving at least 3 months’ notice) Land Combined Power & Heat 50 (Tenant has option to ---- Annual Fee £4578.00 Annual Fee: 02.04.12, based on RPI Missives have not yet (Highland) Limited terminate on 25th anniversary of Rent Rent: Each 5th anniversary of date of been purified Entry Date) £45,778 Index-linked entry, based on RPI

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C d D r e R © O B F Project: Drawn: MMG Invergordon, Ross-shire IV18 0LE CROMARTY FIRTH INDUSTRIAL PARK Scale: Telephone (01349) 852671 1:1250 Fax: (01349) 853894 Date: ALCAN ALUMINIUM UK LIMITED SEPT 2011 Drawing No: Part of Alcan Aluminium UK Limited Title: Registered in England No. 750143 Registered Office: A-L House, 83 Tower Road North SITE LAYOUT I n d u s t r i a l P a r k Warmley, Bristol BS30 8XP 051 Cromarty Firth Industrial Park, Invergordon, Ross-shire, Scotland, IV18 0LE Environmental Statement

The Cromarty Firth Industrial Park (CFIP) was formerly used for aluminium smelting and, since cessation of this activity, has been used for a variety of light industrial processes. As such, the site has a legacy of potentially contaminative land uses which has been proactively managed on a voluntary basis by Rio Tinto Alcan (RTA) throughout their ownership of the site. The site has been subject to several phases of investigation and remediation activities, both during operation as the Invergordon Aluminium Smelter (1971 – 1981) and post-decommissioning and redevelopment as an industrial park. A comprehensive review of these activities has been undertaken on behalf of RTA by a specialist independent environmental consultant to identify land quality issues requiring consideration by future site owners. A detailed technical report of the site’s current land contamination status and associated management issues will be made available to preferred bidders; however, key aspects of the historical and future management of land contamination at the site may be summarised as follows: Remediation activities and land quality assessments carried out by RTA have been undertaken proactively on a voluntary basis as part of their overall environmentally responsible approach to managing the site. Whilst technical consultation and engagement with Highland Council and SEPA has been undertaken in support of these activities, RTA has never been subject to regulatory pressure to assess and/or remediate the site. RTA commissioned a Land Assessment Report prior to placing the property on the market, and this report will be available to preferred bidders. This assessment of the site’s contaminative status assumes that the site remains a single legal entity and that the site will be used for purposes similar to those currently undertaken on site (i.e. light industrial / commercial). The Report clearly summarises the considerable remediation and de contamination that RTA have carried out in consultation with relevant statutory bodies in order to maintain and manage the existing investment fit for its present use as an active Industrial Park.

Cromarty Firth Industrial Park, Invergordon, Ross-shire, Scotland, IV18 0LE Tenure

The entire asset is offered for sale as a Heritable Interest. VAT

We are advised that Cromarty Firth Industrial Park has been elected for VAT purposes. However the development land adjacent has not been elected for VAT purposes. Proposal

Our clients invite proposals for the heritable interest in the entire asset with offers invited in excess of £4.48M. For the Industrial Park alone we invite offers in excess of £3.725M which reflects an attractive net initial yield of 12% net of purchasers costs of 5.8%, based upon a net rental income of £475,000 per annum. Offers in excess in of £750,000 are invited for the development land adjacent to the Industrial Park which equates to a low rate/ developable acre of only £7.500.

Cromarty Firth Industrial Park, Invergordon, Ross-shire, Scotland, IV18 0LE London West End Glasgow 10 Stratton Street 206 St Vincent Street London W1J 8JR Glasgow G2 5SG

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GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to 08449 02 03 04 this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. January 2011 gva.co.uk/investment