UNIT 10C VISCOUNT WAY

South Marston Business Park, , SN3 4TJ

HEADQUARTERS DISTRIBUTION INVESTMENT EXECUTIVE SUMMARY

• State of the art national Headquarters distribution investment of 100,000 sq ft. • Fully let to Callaway Golf Europe Ltd on a new 10 year lease, with a tenant break option after the seventh year. • Recently completed capital expenditure of £2.8m reflecting extensive internal and external works. • Current passing rent of £562,848 per annum (made up of an Initial Rent of £503,625 pa and an Additional Rent of £59,223 pa. The Additional Rent is payable for the first seven years of the term). • The Initial Rent is subject to an upwards-only, RPI-linked rent review with a collar of 2.00% and a cap of 4.00%. • The property is located on South Marston Business Park, Swindon’s premier industrial estate, adjacent to the Honda manufacturing facility. • We are instructed to seek offers in excess of £7,500,000 (Seven Million Five Hundred Thousand Pounds), which reflects a NIY of 7.03% (based on purchaser’s costs of 6.66%, following changes to SDLT made in March 2016) and a capital value of £75 psf.

1 UNIT 10C VISCOUNT WAY SWINDON A419 (SOUTH TO THE M4 EASTBOUND TO LONDON AND WESTBOUND TO BRISTOL)

A419 (NORTH TO AND THE M5)

HONDA MANUFACTURING PLANT

ALDI JB GLOBAL

OAK FURNITURE LAND TETRONICS VISCOUNT WAY FEDEX

NORBERT DENTRESSANGLE

WINCANTON

SUPERMARINE SPORTS CLUB

2 UNIT 10C VISCOUNT WAY SWINDON LOCATION & SITUATION

LOCATION West to Cirencester and a direct route to Gloucester and the M5 SITUATION Swindon is the principal town and commercial centre in the county motorway. South Marston Business Park forms Swindon’s premier employment of and is strategically situated in the M4 corridor. Swindon’s rail services provide access from Swindon Railway location with over 250 acres of warehousing, industrial and office accommodation. Located on the eastern edge of Swindon, the Park It lies approximately 80 miles west of London, 41 miles east of Station to London, Wales and the South West with journey times of is adjacent to Honda’s manufacturing facility. Bristol and 45 miles west of Reading. The town has excellent approximately 57 minutes to London Paddington, countrywide transport links with direct access to Junctions 15 and 65 minutes to Cardiff and 30 minutes to Bristol. Road communications are excellent with the A419 approximately 16 of the M4 motorway, leading west to Bristol (45 minute drive London Heathrow Airport is also located 65 miles to the east of one mile from the premises providing access south to Junction time) and east to Reading (1 hour) and London (1 hour 45 minutes). Swindon. Further airports accessible include London Gatwick (102 15 of the M4 Motorway (5.5 miles) and north to the M5 via the The A419 is accessible and provides access to the North and miles), Luton (95 miles) and Bristol (47 miles). recently improved A419 and A417.

CHELTENHAM, GLOUCESTER & M5 RD H A10 CHELTENHAM LUTON WORT A44 GLOUCESTER AYLESBURY IGH A1(M) A419 H M1 M11 UNIT 10C A419 M25 CHELMSFORD VISCOUNT WAY CIRENCESTER M5 A420 OXFORD M40

HONDA MANUFACTURING SWINDON READING FACILITY LONDON A4311 M4 15 M4 M25 A420 BRISTOL HEATHROW CITY NEWBURY OXFORD & M40 A4 BATH BRISTOL M2 A346 A34 M25 A37 BASINGSTOKE M3 WOKING Y M WA A CANTEBURY S R A36 KE L ANDOVER M20 A B GUILDFORD SWINDON R O A21 D R M23 A2 O

U A303 G Distances (approx.) A31 GATWICK SWINDON H A3

R

O 20 miles A22

A WINCHESTER DOVER A4289 D SALISBURY 40 miles A24 FOLKESTONE A4259 A36 60 miles A419 SOUTHAMPTON A23 80 miles

100 miles SOUTHAMPTON A3(M) M27 A27 A31 BRISTOL & M5 WORTHING BRIGHTON PORTSMOUTH DORCHESTER

M4 LONDON BOURNEMOUTH 15 ISLE OF WIGHT WEYMOUTH ENGLISH CHANNEL

3 UNIT 10C VISCOUNT WAY SWINDON THE PROPERTY

DESCRIPTION SITE The property comprises a large three-bay warehouse of 100,000 sq The property has a site area of 5.14 acres (2.08 hectares) ft which was constructed in circa 1994. It is of steel portal frame reflecting a site coverage of 42.8%. with profiled metal cladding panels to the roof and elevations. There are nine dock level loading bay doors and one level access loading bay door and the property benefits from two-storey office accommodation to the front of the site, which is accessed via two steel staircases. Internally, the asset has a concrete slab floor with an eaves height of 9.0 metres. The internal walls of the warehouse are blockwork and it benefits from aluminium coated double glazed windows. The ancillary office accommodation benefits from suspended ceilings, plaster painted internal walls and male and female WCs on ground and first floors. The car park comprises 51 spaces and the property has a large yard giving access to the loading bay door. The property has benefitted from an extensive internal and external refurbishment to the cost of £2.8m, including extensive tenant fit-out works and overall modernisation.

ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition).

Gross Internal Area Sq m Sq ft (GIA) Ground Floor - 8,917.06 95,983 Warehouse & Offices First Floor - Offices 373.26 4,017 Not to scale. For identification purposes only. TOTAL 9,290.32 100,000 First Floor Canteen 158.58 1,706 Mezzanine 1,886.31 20,304 TENURE The property is held Freehold. *Please note that the mezzanine has permanent access and was fitted out by the Landlord.

4 UNIT 10C VISCOUNT WAY SWINDON TENANCY INFORMATION

TENANCY

The property is let in its entirety to Callaway Golf Europe Limited on a full repairing and insuring lease for a term of 10 years expiring 6 December 2025 with a schedule of condition. There is a tenant only break option on 7 December 2022. The current passing rent is £503,625 per annum and there is an additional rent of £59,233 payable for the first seven years of the term. The initial rent of £503,625 per annum is subject to an upwards-only, RPI-linked rent review with a collar of 2.00% and a cap of 4.00%.

The tenant has recently consolidated their occupation from sites in Membury and Chessington into the subject property, from which they will conduct their club and ball customisation process. The property has been extensively upgraded to accommodate this element of the tenant’s operation.

COVENANT

Callaway Golf Europe Limited (02756321) The company forms part of the Callaway Golf Company, a US-based global brand which specialises in the design, manufacture and sale of golf equipment, accessories and golfing lifestyle products. The company is active in over 70 companies worldwide and is at the forefront of the design and implementation of golfing technology. The parent company was founded in 1982 and is listed on the New York Stock Exchange with a market capitalisation of $870m. The company has a Dun and Bradstreet covenant rating of 4A1, reflecting a 0.10% likelihood of business failure.

31/12/14 31/12/13 31/12/12 GBP GBP GBP

Sales Turnover £80,894,600 £78,645,832 £75,661,119

Profit / (Loss) Before Taxation £1,813,065 £3,167,387 £2,368,263

Tangible Net Worth £33,687,192 £31,629,313 £29,311,749

Net Current Assets (Liabilities) £32,570,260 £30,260,302 £29,038,202

5 UNIT 10C VISCOUNT WAY SWINDON MARKET COMMENTARY

OCCUPATIONAL INVESTMENT

Swindon is a key distribution location in Southern with virtually Date Address Area Vendor Purchaser Tenant Term Price NIY all of the South East, South West and South Wales within a 2.25 hour sq ft Certain drivetime. Due to excellent road and rail links, the town is a distribution U/O Unit 3 Interface 39,026 Foresters Friendly DPD Group UK Ltd 6.5 years c£3.00m c6.25% centre for a number of the UK’s major retailers and logistics companies. Business Park, Society B&Q have their 800,000 sq ft southern RDC at Gazeley’s G Park whilst Wootton Bassett the Royal Mail operate one of the UK’s most technologically advanced U/O Bristol Distribution 125,514 DST Output DST Output (Bristol) 8.5 years c£11.00m c6.50% mail centres from a 200,000 sq ft unit at Dorcan Industrial Estate. Other Park Ltd & ABB Ltd key occupiers in the town include Oak Furniture Land (adjacent to the Mar 16 Hermes, Access 18, 43,100 St Modwen Confidential Hermes Parcelnet 10 years £5.50m 6.00% subject property), WH Smith, Aldi and Iceland Foods. Avonmouth, Bristol Total supply in Swindon is estimated at 22m sq ft and the average annual Mar 16 Unit 1, South Marston 76,939 Private Investor Wesleyan Yuasa Battery Sales 6.5 years £5.70m 6.30% take up over the last 10 years has been approximately 1m sq ft. There is Park, Swindon Insurance (UK) Limited currently no new distribution space being speculatively developed and Dec 15 DHL, Exeter Business 53,147 DHL Knight Frank IM DHL 10 years £4.75m 6.20% availability has fallen to a historic low of just 1m sq ft across all size Park, Exeter ranges reflecting an overall vacancy rate of just 4.5%. Dec 15 Unit D Poplar Park, 50,167 Private BDO Investments Elemis Ltd 5.5 years £5.40m 5.70% Prime rents are now £6.25 per sq ft for large format new build whilst Avonmouth, Bristol rents for good quality refurbished units have reached £5.50 per sq ft as Nov 15 Unit 1 Quedgeley 95,864 Royal London Portsmouth Schlumberger 6 years £8.02m 5.92% evidenced by the recent letting of 103,000 sq ft at Groundwell Industrial West, Gloucester Council Estate. May 15 Palmer & Harvey, 61,724 Ares Colliers Palmer & Harvey 8 years £6.18m 6.50% We would suggest that considering the quality and location of the St Anne’s Road, Bristol International subject property, the initial rent of £5.00 per sq ft is below the market Apr 15 St Philips Central, 68,717 Avignon Capital CBRE Global Inves- AAH 6.5 years £6.88m 6.00% average. Bristol tors

6 UNIT 10C VISCOUNT WAY SWINDON COVENANT For further information or to arrange viewings please contact one of the following: The property has an EPC rating of C – 75. Tom Vaughan-Fowler T: 020 7861 1253 M: 07436 109 373 VAT [email protected] The property is elected for VAT and it is envisaged that the property will be sold by way of a Transfer Steve Oades of a Going Concern (TOGC). T: 0117 917 4548 M: 07920 807 796 [email protected] PROPOSAL Nick Thurston We are instructed to seek offers in excess of £7,500,000 (Seven Million Five Hundred Thousand T: 0117 917 4536 Pounds), which reflects a NIY of 7.03% (based on purchaser’s costs of 6.66%, following changes to M: 07752 375002 [email protected] SDLT made in March 2016) and a capital value of £75 psf. Nick Cripps IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars T: 020 7861 1532 or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: M: 07767 418 956 The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) [email protected] Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. April 2016.