JUNCTION 18 M6 CW10 0HS

A RARE 29 ACRE MULTI-LET INDUSTRIAL INVESTMENT 13 12

10 9/9A

11

4A 5 4

1

2

OCCUPIERS 1. Velcro Ltd 2. UK Mailing Ltd 4. APS Salads Ltd 4A. APS Salads Ltd 5. SDMO Energy 9/9A. Marbocote Ltd 10. Creative Art Products Ltd 11. Extronics Limited 12. SP Manweb plc 13. Car Park

2 / MIDPOINT 18 UNIT 2 UNITS 4 & 4A INVESTMENT SUMMARY n Excellent strategic location, within 1.8 miles of Junction 18 of the M6 Motorway. n Excellent opportunity to add value through asset management and rental growth. n A rare opportunity to acquire a significant 29-acre multi-let industrial estate. n ERV of £938,927. n Comprising 10 well-specified, predominantly detached industrial warehouses in a low n Freehold. density, well landscaped environment. n Offers are sought in excess of £12,135,000 (Twelve Million One Hundred and Thirty Five n The accommodation extends to 155,118 sq ft, with individual units ranging Thousand Pounds), subject to contract and exclusive of VAT. from 6,025 sq ft to 31,620 sq ft. n A purchase at the level would reflect the following n Very limited regional supply of existing and new build alternatives. (assuming purchaser’s costs of 6.71%): n Fully let to 8 tenants by way of 10 leases with an AWULT of 4.62 years to expiry. - Net Initial Yield: 6.50% n A headline rent of £841,864 per annum, reflecting a low average rent of £5.42 per sq ft. - Reversionary Yield: 7.25% - Capital Value: £78.41 psf

3 / MIDPOINT 18 LOCATION Middlewich is one of Cheshire’s principal industrial locations, located approximately 26 miles South of Manchester, 39 miles East of and 67 miles North of . The proximity to these major regional cities, together with Stoke-on-Trent to the South, means that there are over 2 million people of working age within a 30-minute drive of Middlewich.

APPROXIMATE JOURNEY TIMES ROAD AIR The location has excellent transport links, Manchester International Airport, the UK’s J18 M6 4 mins benefitting from immediate access to the M6, via third busiest airport, is just 21 miles north of Railway Station 20 mins Junction 18 just 1.8 miles to the East, providing Middlewich. The airport saw record passenger direct access to the regional and national numbers of 27.8 million in 2017 and is currently 24 mins motorway network. Furthermore, Middlewich undergoing major investment to further is located close to the convergence of three enhance the offering of the airport. Last year GLASGOW Stoke-on-Trent 28 mins Manchester 50 mins major A Roads, namely the A54, A533 and A530, the airport handled over 123,000 tonnes of EDINBURGH providing excellent access to all areas of the freight and mail. Port of Liverpool 60 mins North West Region. Birmingham 1 hr 15 mins London 3 hrs 50 mins NEWCASTLE CARLISLE DRIVE TIMES YORK 1 hour LEEDS 2 hour MANCHESTER HULL LIVERPOOL SHEFFIELD STOKE NOTTINGHAM SATNAV REF CW10 0HS TELFORD LEICESTER RAIL BOAT BIRMINGHAM CAMBRIDGE Crewe Railway Station is just 15 minutes from Liverpool’s Super Port is less than 60 minutes Middlewich, which acts as a key transport hub away by car. The Port has recently completed FELIXSTOWE OXFORD in the North West providing connectivity for a major upgrade, with the new Liverpool 2 passengers and freight services to all areas of the Container Terminal doubling the handling LONDON LONDON GATEWAY UK. The station provides fast and direct services capacity at the Port and permitting direct entry CARDIFF SWINDON TILBURY BRISTOL to major UK Cities, including London Euston (1hr for larger vessels into Liverpool, rather than the 33mins – up to 4 trains per hour), Manchester redistribution of goods onto smaller vessels at SOUTHAMPTON DOVER Piccadilly (35mins – up to 4 trains per hour), Rotterdam. EXETER Liverpool Lime Street (37 mins – up to 3 trains per hour) and Birmingham New Street (57mins – up to 5 trains per hour).

4 / MIDPOINT 18 23 CHORLEY 1 A58 M6 M61 22 Huddersfield A666 M66 ROCHDALE M62 A629 BURY 21 A58 27 BOLTON 2 Horwich 20 3 Ormskirk 6 A58 19 5 M61 Radcli e M58 4 3 4 19 OLDHAM 5 26 3 17 20 16 Walkden 1 21 15 22 1 A627 14 Wardley 25 7 12 24 1 2 A6010 A628 Eccles 3 23 Port of 6 A580 11 M57 23 10 Liverpool Bootle 4 ST HELENS M67 M62 MANCHESTER 24 3

L

3 A N A6 22 11 A 102 C Wallasey 10 I P 6 A34 25 A5058 21A H S 26 M62 27 1 9 R A56 E 5 Moreton 5 T 6 S 7 H E 4 1 N C 3 2 2 21 M A 3 2 1 Birkenhead LIVERPOOL A5300 A557 4 M60 3 5 A562 Widnes A6 A56 20 8 M56 A41 7 6 Speke 9 4 Manchester 10 Airport Liverpool A533 River Mersey John Lennon 11 Airport A523 A540 M53 A557 A34 12 19 5 6 7 M6 8 A623 Rhuddlan Ellesmere Port A533 A537 A55 9 M56 A556 14 A537 A548 10 St. Asaph A49 11 NORTHWICH MACCLESFIELD A537 15 A6 A541 A525 A41 A5117 A556 A54 A34 12 A533

Denbigh A494 A51 18 A54 A49 A513 A523 A53 CONGLETON A55 17 A494 Ruthin A50 A41 A51 A34 A530 A534 A483 M6 A541 CREWE A527

A534 A534 A53 A494 16 A500 A500 A41 A49 A520 A525 A51 A34 Stoke

A525 on-Trent Corwen A5 Llangollen A528 A525

Whitchurch 15 A50 A51 A34 A520 A53 5 / MIDPOINT 18

A519 Stone

A5013 A518 SITUATION MAJOR INFRASTRUCTURE Midpoint 18 is one of the most significant industrial estates within the Cheshire region. The estate fronts on to the A54 providing a quick and direct link to J18 of the M6 motorway, just 1.8miles to the East. IMPROVEMENTS The location has proven an attractive destination for many blue-chip occupiers, including Optima Logistics The location will be further enhanced following the completion of a number of major (190,000 sq ft), B&M Bargains (460,000 sq ft), Wincanton (375,000 sq ft), Kuehne & Nagel (350,000 sq ft) infrastructure improvement schemes including: and Scottish Power (14,000 sq ft) amongst numerous others. Midpoint 18 also benefits from adjacent amenities including a Travelodge, Starbucks, Subway, Shell Service Station and Harvester Pub. In addition DB Symmetry/ Pochin have launched their MA6NITUDE Scheme at Midpoint 18 adjacent to the subject estate and are developing out a large scale logistics park of 10 speculative units of 90,000 – 600,000 sq ft and totalling 1,750,000 sq ft. THE MIDDLEWICH BYPASS CREWE HS2 HUB B 530 A £58m road improvement scheme which The Secretary of State has recently confirmed 9

K ING will provide a new bypass around Middlewich Government support for the Crewe Hub Vision.

S

T R

E M Town Centre, running adjacent to Midpoint 18, Plans for HS2 now include the provision of 400m E

T

6 improving connectivity and alleviating traffic platforms at Crewe Station, enabling longer

through the Town Centre. trains to divide in two and filter off to different 1 8

0 5 B 18 northbound locations. Up to seven HS2 trains B 5 3 M 0 an hour could be calling at Crewe once a new 9 R O A D K E L H A P C I S O N E M P junction is built just north of the town.

G L O CENT S URION O O A W

T H A T Y 4 L 5 F 5 A OR

O E 3 D

B N 0

R L A A MIDDLEWICH E A R L 5 ET N R D 4 A O E S A

T N O L W O N A R

N W B E . A W Y TON DAL A

Y Y Y A WA PROS TY S A PE RI W T N AN I 5 H N C ’ 3 O S P R O 3 A M6 SMART MOTORWAY UPGRADE D MANCHESTER AIRPORT A £192m project to upgrade the M6 motorway TRANSFORMATION PROGRAMME between J16 (Crewe) and J19 (Knutsford) by The £1bn investment on the Manchester Airport upgrading it to a smart motorway. This 20-mile Transformation Programme (MAN-TP) represents stretch of motorway will be converted to an the most significant programme of investment ‘all lane running’ smart motorway, reducing ever made in Manchester Airport. The congestion and smoothing the flow of traffic to programme includes the expansion of Terminal improve travel times and make journeys more 2, the improvement of Terminal 3, together with reliable. The project is set to be completed in new and enlarged transfer facilities amongst March 2019. many other upgrades.

6 / MIDPOINT 18 KEY B Y PA S S T E R N MAGNITUDE E A S 200,000 - 600,000 SQ FT I C H 1. Velcro Ltd E W MAGNITUDE D L 125,000 - 145,000 SQ FT I D 2. UK Mailing Ltd M E D S 4. APS Salads Ltd O P 4A. APS Salads Ltd O R P MAGNITUDE 5. SDMO Ltd 92,000 SQ FT 9. Marbocote Ltd 9A. Marbocote Ltd PIONEER PARK 10. Creative Art Products Ltd MAGNITUDE 11. Extronics Limited 41,000 - 149,000 SQ FT 12. SP Manweb plc 13. Car Park

MAGNITUDE 117,000 - 181,000 SQ FT

5

10 13 4A

11 12 4 9A 9

TO M6 2

1

TO MIDDLEWICH

7 / MIDPOINT 18 DESCRIPTION MIDPOINT 18 IS AN ESTABLISHED MULTI-LET INDUSTRIAL ESTATE COMPRISING OF 10 HIGH QUALITY, PREDOMINANTLY DETACHED, INDUSTRIAL WAREHOUSE UNITS WITHIN A LOW DENSITY, WELL LANDSCAPED ENVIRONMENT. UNIT 4A The units were typically built in the 1990s and are of steel portal frame construction with either full height steel cladding or part brick / part corrugated steel clad elevations. Every unit on the estate benefits from a pitched METAL clad roof. Externally the warehouses have generous yard areas, the vast majority of which are self-contained. The units typically benefit from roller shutter doors, ancillary office accommodation, concrete flooring and an eaves height of 4.5m to 8.0m. An 0.25 acre, fully surfaced car park is also included within the demise, which could be suitable for future development (subject to planning).

A summry of the warehouse sizes is provided below:

Size (sq ft) Area (sq ft) % No of Units

0 - 10,000 15,076 10% 2 UNIT 5 10,001 - 15,000 45,565 29% 4

15,001 - 20,000 15,293 10% 1

20,001 - 25,000 20,700 13% 1

25,001 - 30,000 26,500 17% 1

30,000+ 31,620 20% 1

UNIT 10

8 / MIDPOINT 18 UNIT 2

UNIT 4

UNIT 2 UNIT 10

9 / MIDPOINT 18 UNIT 9/9A UNIT 4A

UNIT 11 UNIT 9/9A UNIT 5

10 / MIDPOINT 18 1 2

4

B1 A2 B2 B A1

11 4A 3 2+3 UNIT 2 9/9A C1 C2

31 5 ACCOMMODATION D 12 The property has been measured in accordance with the RICS 6 Code of Measuring Practice (2015) and extends to 155,118 sq ft 10 (14,410.93 sq m) as detailed in the Tenancy Schedule. DALTON 7 HOUSE The property has a total site area of approximately 29.14 acres (11.79 ha).

13 TENURE

The property is held on a freehold basis. The freehold title includes a further 14 units, which have been previously sold on a long-leasehold basis and have been identified within the enclosed site plan. For indicative purposes only The long leasehold units have typically been let for a term of 999 years, subject to a ground rent of one peppercorn (if demanded).

11 / MIDPOINT 18 TENANCY

The property is fully let to 8 different tenants, providing a total rental income of £841,864 per annum. The estate is has enjoyed continued high occupancy levels which is a reflection of the quality of Passing rents range from £4.51 psf to £6.21 psf accommodation and the almost non-existing supply of existing or new build alternatives. The average weighted unexpired lease term for the estate is 4.62 years to expiry and 4.11 years to break.

Property Tenant Area (sq ft) Lease Start Lease End Break Rent Review Rent (£pa) Rent (£psf) ERV (£pa) ERV (£psf) Comment

Lease renewal in legals for a 5 year FRI lease Unit 1 Aston Way Velcro Ltd 26,864 21/10/2007 20/10/2022 £160,000 £5.96 £167,900 £6.25 at £160,000 pa. We have assumed this has completed.

Unit 2 Aston Way UK Mailing Ltd 10,140 24/06/2009 30/06/2019 £50,000 £4.93 £63,375 £6.25 FRI Terms.

FRI terms. Guaranteed by A Pearson Holdings Unit 4 Aston Way APS Salads Ltd 20,700 01/09/2017 31/12/2019 £120,000 £5.80 £123,165 £5.95 Ltd. Outside 1954 Act

FRI Terms. Guaranteed by A Pearson Holdings Unit 4A Aston Way APS Salads Ltd 15,293 01/09/2017 31/12/2019 £95,000 £6.21 £95,581 £6.25 Ltd. Outside 1954 Act

FRI terms. Area includes landlord mezzanine of Unit 5 Aston Way SDMO Energy 12,461 25/03/2016 24/03/2026 25/03/2021 25/03/2021 £63,700 £5.11 £68,547 £6.25 2,667 sq ft. Rent apportioned £5.75 psf on GF with £2.75 psf on mezzanine.

Unit 9 Dalton Way Marbocote Ltd 10,052 12/04/2016 20/07/2025 20/07/2020 £51,500 £5.12 £60,312 £6.00 FRI terms.

Unit 9a Dalton Way Marbocote Ltd 6,025 12/04/2016 20/07/2025 20/07/2020 £27,164 £4.51 £37,656 £6.25 FRI terms, subject to schedule of condition.

Creative Art Unit 10 Dalton Way 31,620 01/10/2009 30/11/2024 01/11/2019 £150,000 £4.74 £181,815 £5.75 FRI terms subject to scehdule of condition. Products Ltd

Area includes 1st floor offices and workshop of 4,754 sq ft. Lease renewal in legals for a 3 year Extronics FRI lease at £52,000 pa until 31/10/18, rising to Unit 11 Dalton Way 12,912 06/07/2014 01/07/2021 £72,000 £5.58 £74,244 £5.75 Limited £72,000 pa thereafter (topped up by vendor). Subject to a 6m rolling break from 01/11/19. We have assumed this has completed.

FRI terms. Nov 2016 rent review outstanding. Unit 12 Dalton Way SP Manweb plc 9,051 19/11/2001 18/11/2026 18/11/2016 18/11/2016 £52,500 £5.80 £58,832 £6.50 Terms agreed for a sublease at £58,500 pa.

Car Park at Dalton Way Vacant £7,500

Various long leasehold units sold for a term of Long Leaseholds 999 years, subject to a rent of one peppercorn.

Total 155,118 £841,864 £938,927

12 / MIDPOINT 18 COVENANT INFORMATION INCOME SUMMARY

Midpoint 18 benefits from a diverse income profile, with a broad range of INCOME TO EXPIRIES regional, national and international tenants.

Approximately 94% of the income is secured against covenants rated as a £300,000 minimum or lower than average risk by Dun & Bradstreet. Further information is available upon request. £225,000 GRETAER THAN AVERAGE 6%

D&B RATINGS £150,000 HIGH RISK 0% OTAL INCOME (PA) T £75,000

£0 MINIMUM RISK 14% 0 - 2 Years 2 - 4 Years 4 - 6 years 6 - 8 years 8 - 10 years YEARS

INCOME TO BREAKS

£350,000

£262,500

£175,000 OTAL INCOME (PA) T £87,500

£0 0 - 2 Years 2 - 4 Years 4 - 6 years 6 - 8 years 8 - 10 years LOWER THAN AVERAGE 80% YEARS

13 / MIDPOINT 18 OCCUPATIONAL MARKET

The North West is one of the most successful and dynamic regions in the UK and benefits from excellent proximity to growing markets, a rising population of over 7 million people and continued investment into the region’s infrastructure. Large projects such as Liverpool 2, The Mersey Gateway Project and the proposed new Terminal 1 at Manchester Airport will only drive economic development. Strong occupational take-up on multi-let estates across the North West is resulting in reduced levels of availability, increased rental growth and reduced incentive packages for tenants. Prime headline rents across the region are now in excess of £7.00 per sq ft for new build and £6.00 plus for good quality second-hand units.

CHESHIRE M6 CORRIDOR - DEMAND This market has been very positive but hindered by a lack of supply. The key conurbations, including Middlewich, are in close proximity to the M6 Motorway and within the highly affluent areas of East Cheshire and the South Manchester commuter belt. There has been consistent demand for SME units through to the “mid-box” units, mirroring that which is experienced in the Greater Manchester market. The majority of demand is generated from the organic growth of many successful privately owned businesses in the region, together with regional manufacturers servicing the high-end manufacturing and food based industries in Cheshire. The location is also attractive to retail / e-commerce operators servicing the affluent Cheshire towns and benefiting from good access to the M6 Motorway.

CHESHIRE M6 CORRIDOR SUPPLY Existing stock is at its lowest level for in excess of 20 years, with a limited number of small secondary units being available. Developer activity is more focused on the high bay, big box market with DB Symmetry, First Panattoni and Goodman bringing forward schemes in both Middlewich and Crewe for units in excess of 150,000 sq ft and up to 300,000 sq ft. Therefore, there continues to be a critical lack of stock in the ‘mid-box’ market, in this location, with the only proposed schemes being Apollo Park, Crewe (3 of 6 units already under offer during early construction phase) and Pioneer Park, Middlewich. Recent comparable letting transactions include:

Town Property Size (sq ft) Tenant Rent (psf) Term (Break) Date

Crewe Unit 4 Apollo Park 35,000 Confidential £6.75 10.5 Under offer

Crewe Unit 3A Apollo Park 20,000 Freudenberg Filtration Systems £6.75 12 Exchanged

Crewe Orion Park, Crewe 53,000 Core Filfulment Ltd £6.00 12 (10)

Warrington Unit 3 Eagle Park 16,500 Rix Motors £6.50 10 (5) Apr 18

Manchester Alpha, Airport City 17,000 Move On-Line Retail £7.25 10 May 18

Stockport Aurora 46,000 CAF Rail £6.95 10 Jan 18

Manchester Alpha, Airport City 52,000 Thomas Cook £7.00 10 Jan 18

Stockport Aurora 15,500 Anglican Windows £7.25 10 Dec 17

Stockport Aurora 20,500 Aeroco £7.25 10 Dec 17

Warrington Unit 712, Birchwood Park 14,000 Bathgate Flooring £7.25 10 Sep 17

14 / MIDPOINT 18 INVESTMENT MARKET The industrial investment market has remained strong in recent years and is showing no signs of slowing down, with the total value of North West industrial transactions during 2017 standing at £818m, comfortably a post- recession record. Q1 2018 has continued this trend, predominantly driven by a mix of Institutional, Local Authority, REIT and overseas investors. Demand for multi-let investments has been largely driven by a positive occupational market, low void rates, strong tenant demand and the opportunity for further rental growth. Examples of comparable multi-let investment transactions include:

Rent £pa Date Property No. of Units Total Size (sq ft) AWULT (to break) Price NIY Cap Val (£psf) (£psf) £1,321,289 U/O Taylor Business Park, Warrington 63 284,773 3.69 c.£19,300,000 c.6.41% c.£67.77 (£4.64) Doranda Way Industrial Estate, West 4.10 £822,066 Apr-18 4 152,311 £14,870,000 5.18% £97.62 Bromwich (3.40) (£5.40) 7.27 £532,718 Apr-18 Olympic Court, Salford 5 108,639 £10,875,000 4.59% £100.10 (5.88) (£4.90) Dec-17 Bishops Court, Warrington 8 107,814 £6,700,000 5.95% £62.14 5.20 £475,080 Aug-17 Stag Industrial Estate, Altrincham 24 80,909 £7,500,000 5.93% £92.70 (4.60) (£5.89) 5.28 £1,439,872 Jul-17 Broadfield Business Park, Heywood 8 269,058 £24,585,000 5.49% £91.37 (3.12) (5.35) 6.89 £314,916 Apr-17 Abbeywood Park, Bristol 8 42,803 £5,800,000 5.10% £135.50 (3.22) (£7.35)

UNIT 4A UNIT 9/9A UNIT 12

15 / MIDPOINT 18 ASSET MANAGEMENT OPPORTUNITIES PROPOSAL  Improve the rental tone and AWULT through pro-active lease re-gears and renewals We are instructed to seek offers in excess of £12,135,000 (Twelve  Acquire the units on the Estate sold long-leasehold to further increase critical mass Million One Hundred and Thirty Five Thousand Pounds) subject to  Individual unit sales to investors / occupiers.  Improve the branding and identity of the estate contract and assuming purchaser’s costs of 6.71%.  Undertake cosmetic refurbishment of the units to further enhance the estate  Let or develop the vacant car park site within the estate A purchase at this level would reflect the following: - - Net initial yield of 6.50% - Reversionary yield of 7.23% EPC - Capital value of £78.41 per sq ft Energy Performance Certificates for the units can be made available upon request.

VAT The property has been elected for VAT and we anticipate the sale can be treated as a Transfer of a Going Concern (TOGC). FURTHER INFORMATION For further information please contact: - ESTATE CHARGE Simon Wood John Burrows B8RE B8RE An Estate Charge is administered across Midpoint 18 to cover common area landscaping, repairs and 01925 320520 01925 320520 management. This is apportioned across all of the Units on a sq ft basis. [email protected] [email protected] The Estate Charge budget for the year ending 31 May 2019 is £6,300, reflecting £0.01 per sq ft. Matt Pochin Legat Owen 01270 621005 DATA ROOM ACCESS [email protected] A dedicated data room has been created for the purpose of this disposal which includes comprehensive information in relation to title, occupational documents, standard enquiries and EPC’s. Access to this information can be arranged on request.

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. June 2018. RB&Co 0161 833 0555. www.richardbarber.co.uk

16 / MIDPOINT 18