REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY Muller UK & Ireland Group, Brickyard Road, , WS9 8SR >> Aldridge is an established industrial >> Gross Internal Area of circa 61,931 sq ft >> For the year ending 2015 Muller UK location within the West Midlands together with canopy area of 3,012 sq. ft. & Ireland Group LLP had a turnover INVESTMENT conurbation. The area has good motorway of £1.337billion and a net worth of >> Let to Muller UK & Ireland Group LLP for access with the 6 miles to the £326million. SUMMARY 15 years from 8th July 2008 with a tenant north of the town and junction 7 of the M6 break clause on 8th July 2018 subject We are instructed to seek offers in excess of approximately 5.5 miles to the south. to 9 months notice. The passing rent is £3,025,000 (Three Million and Twenty Five >> Prominent position on Brickyard Road £250,024 which equates to £4.00 per sq ft, Thousand Pounds) subject to contract, which 0.5 miles from the Town Centre and in the next open market rent review is on reflects a net initial yield of 7.76% and a the vicinity of a number of industrial 8th July 2018. reversionary yield of 9.25% after allowing estates including Haywood Industrial for purchasers costs of 6.46%. A purchase at >> Highly reversionary to an estimated Park, Beecham Business Park and Empire this level would show a low capital value of £297,749 per annum equating to £4.75 Industrial Park. £48.84 per sq. ft. per sq ft. >> Freehold, two bay steel portal frame unit, >> Formerly operating as Dairy Crest the unit originally constructed in the 1980’s and is used as a milk distribution depot for a extensively refurbished and re-roofed number of large supermarket contracts. in 2002 with a clear height of 9 metres. The tenant upgraded the unit to provide a Benefitting from 1 level access door, 6 dock substantial chilled storage facility which is > £3,025,000 doors with levellers, a canopy and a large subject to full reinstatement provisions. secure concrete yard. NIY 7.76% | CAP VAL £48.84 psf

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk LEEDS 105 MILES LOCATION DISTANCE (MILES) MANCHESTER 81 MILES LIVERPOOL Town Centre 4 92 MILES 7

NOTTINGHAM 11 SHREWSBURY 49 MILES 42 MILES City Centre 12 ALDRIDGE LEICESTER 50 MILES M6 J10 5.5 BIRMINGHAM 12 MILES NORTHAMPTON M6 Toll JT6 6.0 61 MILES

BRISTOL 96 MILES 134 MILES M6

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M54 Aldridge is an established industrial town on A34 A5 the edge of the West Midlands conurbation. RD It is strategically located in the centre of the LOCATION M6 Country and the logistics communications ALDRIDGE network, approximately 4 miles to the A452 M6 TOLL M42 WOLVERHAMPTON 10 north-east of Walsall town centre, 7 miles WALSALL north-west of Sutton Coldfield, 11 miles east SUTTON A4041 COLDFIELD of Wolverhampton and 12 miles north of Birmingham city centre. The area has good access to the motorway network with Junction M5 10 of the M6 approximately 5.5 miles to M6 the south-west providing access to the M5, M40, M42, M54, M1 and M69 and Junction BIRMINGHAM T6 of the M6 Toll 6 miles north. The majority M6 of the industrial premises in Aldridge are concentrated in the area to the north and west of the town centre along Middlemore M42 M5 Lane, Westgate, Stubbers Green Road and Brickyard Road.

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk The property is situated on the eastern side of Brickyard Road between Empire Close and SITUATION Vigo Place, approximately 0.5 miles to the north-west of Aldridge Town Centre. The property is situated in an established industrial area with a number of industrial estates in the locality including Hayward Industrial Park, Beecham Business Park, Empire Industrial Park and Anchorbrook Industrial Park. Major occupiers in the vicinity include RMD Kwikform, Glass, Wienerberger, and Interserve.

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REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk The property comprises a detached two The Tenant has made numerous alterations >> A new compound at the end of the car park bay single storey warehouse constructed to the property under a licence dated 8 July for the storage of refrigeration plant in the late 80s/early 90s and refurbished 2008 including: DESCRIPTION >> New automatic entrance barrier around 2002. The property is of steel portal >> Installation of a chilled store with a clear with “Portacabin” style gatehouse.* frame construction with single storey offices ceiling height of 6.5m and despatch to the front, battery charging room and >> External wash and valet bay. loading bay area spanning across one works offices to the side. The warehouse (water supply and drainage).* bay and accounting for circa 50% of the has an approximate clear eaves height of 9 warehouse. >> Upgrade to power supply from 70 kVA metres. The external envelope is finished in to 1000 kVA including installation of new a combination of brick and profile clad steel >> Removal of the 4 original loading bays to substation (Landlord made a contribution of elevations under a profile metal sheet roof provide 6 dock doors with dock levellers circa £100k towards this work which may be incorporating translucent rooflights. and shelters under the original canopy.* taken into account at rent review).* The property was originally served by 4 >> Provision of male and female changing The licence also permitted the tenant to canopied raised level loading bay doors rooms, disabled WC and cellular offices construct a further level access loading door with 5 dock levellers and a single level within the main open plan office.* adjacent to the existing door but this has not access loading door. been installed. The single storey offices have painted walls, suspended ceilings, recessed Cat 2 lighting, carpeted floors, perimeter trunking, electric storage heating and uPVC double glazed windows. Externally the concrete yard to the side of property has a depth of approximately 40 metres with 22 lorry spaces. A tarmacadam surfaced car park with 38 spaces is situated at the front of the property. The yard and car park share a single access point off Brickyard Road. The site is fully secured by metal palisade fencing and security gates.

* The tenant is not required to reinstate these items at lease expiry.

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk The property has been measured in accordance with the RICS Code of Measuring Practice ACCOMMODATION (6TH Edition) and provides the following approximate gross internal floor areas.

SQ M SQ FT

Warehouse 5,404.64 58,175 Battery Charge 82.94 893 Offices 265.94 2,863 TOTAL 5,753.52 61,931 Loading Canopy 279.87 3,012

The site extends to a total area of approximately 2.95 acres providing for a low site cover of 48%.

TENURE Freehold.

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk The property is let on full repairing and insuring terms, subject to a Schedule of TENANCY Condition*, to Muller UK & Ireland Group LLP DETAILS (assigned from Dairy Crest Ltd on 11th March 2016) for 15 years expiring on 7 July 2023 with a tenant only break option on 8 July 2018 subject to 9 months notice. The current passing rent is £250,024 per annum which equates to £4.00 per sq ft valuing the loading canopy at £1.00 psf and is subject to upward only rent review on 8 July 2018.

* The Schedule of Condition was agreed following completion of the works contained within the Licence for Alterations dated 8 July 2008.

A copy of the lease, licence and schedule of condition is available upon request.

Muller UK & Ireland LLP is 100% owned by Crest in an £80million transaction making it Unternehmensgruppe Theo Muller and the largest milk supplier and distributor in TENANT employs over 12,000 people within two Great Britain. distinct business units of Muller Milk & COVENANT Their most recent accounts are Ingredients and Muller Yogurt & Desserts. In summarised below; December 2015 the company acquired Diary

31st Dec Y/E TurnOver Pre-tax Profit Net Worth £000’s £000’s £000’s

2015 1,337,087 (106,026) 326,062 2014 1,395,593 (97,813) 213,541 2013 684,879 (55,251) 133,962

The company has an Experian credit rating score of 60 which is described as below average risk together with a credit limit of £5million and credit rating £2.5million.

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk Demand for well located, good quality distribution warehouse space has increased Nov 2016 Unit E2 Coombs Wood Reversionary lease to Toolbank for 10 years OCCUPATIONAL significantly over the previous 2-3 years with a with a 6 year tenant break at £5.50 psf on MARKET noticeable reduction in available units. Take 55,393 sq ft. up of logistics space in 2016 was the largest Oct 2016 Unit 2 Bullesye, Bull Lane let to DFS for 10 years at £6.00 psf on on record with the logistics availability rate 42,200 sq ft. now at its lowest level on record. Retailers in Oct 2016 Unit 3 Wednesbury One Let to Exova for 15 years with tenant breaks at particular continue to position themselves to Wednesbury year 5 & 10 at £5.50 per sq ft on 50,539 sq ft. best adapt to the changing nature of consumer shopping patterns and the continuing growth Aug 2016 Unit 501 Axcess 10 Let to Komfort for 10 years at £5.50 psf of online sales and developers have responded on 49,843 sq ft. to the shortage by undertaking some albeit Apr 2016 Heath Road Let to Yoko International for 10 years with a 5 limited speculative development particularly Darlaston year tenant break at £4.95 psf on 42,173 sq ft. in the core West Midlands market. The lack of supply has resulted in a marked increase in Apr 2016 Unit 4 Delta Point Let to Ricor for 10 years with 5 year tenant rental values, longer leases and a reduction in Oldbury break at £5.45 psf on 36,676 sq ft. incentives on new lettings. Furthermore tenants have increasingly turned to build to suit options due to the lack of supply, which is having Based on the above evidence we conservatively estimate that the further positive impact on rental growth. property is reversionary to £297,749 adopting £4.75 per sq ft on the Recent transactions include the following: main warehouse and ¼ rate on the canopy.

The warehouse and distribution sector Jan 2017 Well Lane 50,514 sq. ft. let to Air Space at £6.14 per sq continues to provide strong returns and ft until August 2025 was sold for £4,000,000 INVESTMENT is a leading investment sector and thus (£79.18 per sq. ft.) reflecting a net initial yield is competitively sought after. Relevant MARKET of 7.27%. investment transactions are set out below: Dec 2016 2300 Coventry Business Park 60,095 sq. ft. let Canute UK Ltd at £5.99 per Dolomite Business Park sq. ft. until April 2021 was sold for £5,250,000 (£87.36 per sq. ft.) reflecting a net initial yield of 6.43%. Oct 2016 Centrum 100 92,666 sq ft let to Kings Road Tyres and Burton Upon Trent Repairs Limited at £5.50 per sq ft with tenants break in 2021 was sold for £7,060,000 (£76.18 per sq ft ) reflecting a net initial yield of 6.77%. June 2016 Unit 302 Relay Park 55,236 sq ft let to Schenker Ltd at £5.07 per Relay Drive sq ft until September 2017 was sold for Tamworth £4,650,000 (£84.18 per sq ft) reflecting a net initial yield of 5.65%.

REVERSIONARY DISTRIBUTION WAREHOUSE INVESTMENT OPPORTUNITY // Muller UK & Ireland Group, Brickyard Road, Aldridge, West Midlands WS9 8SR www.mk2.co.uk Warehouse & Offices C-66 EPC A copy of the EPC is available upon request.

The property is elected for VAT however it is anticipated that the transaction VAT will be treated as a transfer of going concern (TOGC).

We are instructed to seek offers in excess of £3,025,000 (Three Million and Twenty Five PROPOSAL Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 7.76% and a reversionary yield of 9.25% after allowing for purchasers costs of 6.46%. A purchase at this level would show a low capital value of £48.84 per sq. ft.

For further information or to arrange an inspection please contact;

Mark Johnson Mark Rooke Paul Rixon 0121 2141977 0121 2141972 0121 2141979 07748 105812 07985 877578 07768 021895 [email protected] [email protected] [email protected]

MK2 Real Estate Ltd Maddox House, 117 Edmund Street, Birmingham B3 2HJ Tel: 0121 214 1970 Email: [email protected] www.mk2.co.uk

IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: www.diablodesign.co.uk FEBRUARY 2017