ETNA COURT FALKIRK Principle Trade Park Offering

High Yielding Multi-Let Trade Park Investment Opportunity With Reversionary Potential

enter ETNA COURT MIDDLEFIELD INDUSTRIAL ESTATE • FALKIRK • FK2 9EQ ETNA COURT SUMMARY MIDDLEFIELD INDUSTRIAL • Falkirk multi-let trade park investment opportunity. • WAULT of 6.43 years to lease expiries and 4.26 years to lease breaks. ESTATE FALKIRK • Middlefield Trade Park Estate is situated in a busy location 1.5 miles north • Heritable Interest (Scottish Equivalent of English Freehold.) east of Falkirk town centre and is in close proximity to Junction 6 off the FK2 9EQ • Let to 10 tenants. M90. Etna Court is located at the entrance to Middlefield Industrial Estate and forms part of the main trade offering for the town. • 2.92 acre site (1.18 Ha). • Tenants include trade counter occupiers such as Wolseley UK Ltd, Travis • We are instructed to seek offers in excess of £3,404,000 (Three Million Four Home Perkins, Tile Star Limited and City Electrical Factors Limited. Hundred and Four Thousand Pounds), subject to contract and exclusive of VAT. This reflects a NIY of 8.00% and a low capital value of £62.50 psf, • 12 industrial units extending to 54,458 sq ft (GIA basis) with unit sizes Summary assuming acquisition costs of 6.01%. ranging from 2,992 sq ft to 10,409 sq ft. Aerial • Passing rent of £288,687 reflecting a low rent of £5.30 psf.

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2 ETNA COURT MIDDLEFIELD INDUSTRIAL ESTATE FALKIRK Frt Prt FK2 9EQ rnet

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Etn R

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3 DUNDEE A85 A90

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A84 A9 8 7 ETNA COURT LOCATION 6 MIDDLEFIELD INDUSTRIAL A82 11 A91 A977 ESTATE 5 10 FALKIRK STIRLING 4 FK2 9EQ M9 A92 5 MIN DRIVE TO A811 M90 8 FALKIRK TOWN CENTRE 3 A985 Home 3 M80 8 7 2 2 Summary 1 2 MIN DRIVE TO 5 M876 6 M9 MOTORWAY WHICH 5 Aerial 4 4 M9 3 EDINBURGH LINKS TO M876, M8, M80 FALKIRK 2 GREENOCK A80 Location AND M90 MOTORWAYS 1 EDINBURGH A1 31 1 Situation 1 A82 3 2 30 3 M80 3 GLASGOW Description POPULATION OF 124,000 M73 M8 26 15 11 29 27 25 4 WITHIN A 5 MILE RADIUS 24 20 GLASGOW 5 M8 Tenancy Schedule 1 A71 A737 A8 6 A78 Covenant 5 25 MIN DRIVE TO A68 Occuptional 6 A702 Market EDINBURGH AIRPORT A7 A703 A77 7 A73 Investment Market FALKIRK GRAHAMSTON 8 STATION 1 MILE M74 Further A71 A721 Information FALKIRK HIGH STATION 9 2 MILES 10 A72

11 A702 A78 12

PRESTWICK 13 A76 A74M A70 14 14

4 A76 A74 ETNA COURT A9

SITUATION A9 A A 9 MIDDLEFIELD 0 9 M9 5 INDUSTRIAL Etna Court is prominently positioned at the southern side ESTATE of Etna Road within Middlefield Industrial Estate, the town’s ETNA COURT FALKIRK principle trade park offering. INDUSTRIAL ESTATE E KSID FK2 9EQ BAN 9

Etna Road forms the estate’s main access route linking RD TNA Middlefield with Falkirk town centre. Etna Road also acts as E

E 4 T A the main thoroughfare connecting Falkirk to Grangemouth. U 0 N N 9 9 I Home A V AD M CT E A R O I R D This creates a busy road which provides excellent frontage A S N D ET A L L

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F O for trade operators. I E A

L Summary D D D A RO R D A O A TN A E T D O E L

E R A Located in close proximity to the M9 motorway, 1.5 miles to R D OA U T R K R Aerial S S I G IN IR E D T S AS T the east. R C K O A L N N A E

N A F R E O K 9 A Location D

M ROAD NETWORK I D 4 D 0 L 9 E Situation F A I T E H L O D R A9 0.3 miles East N R H O I A L L D R Description O 4 A 90 D A A M9 1.5 miles East 9 OAD H R Tenancy Schedule A803 1.5 miles South West UT MO GE AN Covenant M876 6.5 miles West GR M876 10 miles West Occuptional Market TRANSPORT INFRASTRUCTURE M876 A88 Bee R A905 Investment Edinburgh Airport 17 miles Market Falkirk Grahamston Railway Station 1 miles Further A904 Er R Information Falkirk High Railway Station 2 miles M9

Port of Grangemouth 3 miles A904 BNe R A9 Strn R A9 9

MAJOR NEIGHBOURING CITIES / TOWNS B931 At R Edinburgh 26 miles East A803 Glasgow 36 miles South West A9 Mn St A904 rnet R

Stirling 13.5 miles North West A803 Cen R FALKIRK A9 Livingston 18.5 miles South East M9 A803 Cenr R

A803 Pnt R

5 ETNA COURT DESCRIPTION MIDDLEFIELD INDUSTRIAL The estate comprises 12 trade counter units totalling ESTATE 54,458 sq ft (GIA basis) across three terraces. FALKIRK FK2 9EQ • Units range from c. 2,992 sq ft to 10,409 sq ft. • Steel portal frame construction with brick wall elevations under pitched roofs. Home • Secure gated entry to the estate and brick boundary wall. Summary • ‘Up and over’ and roller shutter doors and internal office accommodation. Aerial • There has been a rolling refurbishment Location programme where units become vacant.

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Etna Court 1 UNIT 2 UNIT 2 UNIT

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5 UNIT I V UNIT 9 E The site extends to 2.92 acres (1.18 Hectares), UNITS R S 2 A measured from promap. L

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0m 10m 20m 30mA Freehold.) D

This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074. ETNA COURT TENANCY SCHEDULE MIDDLEFIELD INDUSTRIAL ESTATE Tenant Unit GIA EPC Headline Rent Lease Lease Term Next Break Comments FALKIRK (sq ft) rating Contracted Rent (psf) Start Expiry Review Option FK2 9EQ Wolseley UK Limited Units 10,409 E67 £60,220 £5.79 30/01/79 16/06/21 42 years 16/06/21 (t/a Plumb Centre) 1/2 5 months (636445) (including term of extensions) Home Travis Perkins t/a PTS Unit 3 4,933 D60 £28,342 £5.75 31/01/04 30/01/24 20 years 31/01/19 30/01/20 Tenant only break with 6 months’ prior (824821) (including term notice. Summary of extension) Wolseley UK Limited Unit 4 5,474 D47 £27,000 £4.93 29/06/89 01/08/18 29 years 1 month Aerial (t/a Drain Centre) (including term (636445) of extension) Location Tile Star Limited Unit 5 4,929 D48 £28,342 £5.75 04/10/06 03/10/26 20 years 04/10/21 04/10/21 Schedule of condition. Tenant only break (SC285305) (including term with 6 months’ prior notice. Situation of extension) Veitchi Flooring Limited Unit 6 5,389 C40 £22,330 £4.14 09/11/12 08/11/22 10 years 09/11/17 09/11/17 Break clause operated. Schedule of Description (SC019963) condition. D+G Autocare Limited Unit 7 5,403 D52 £31,000 £5.74 12/09/16 11/09/26 10 years 12/06/21 Stepped Rent to £31,000 from 12 October Tenancy Schedule (SC262338) 2017 - vendor to top up. Schedule of condition. Covenant JG Martin Plant Hire Unit 8 5,949 D60 £32,720 £5.50 03/10/16 02/10/21 15 years 03/10/16 03/10/26 Rent deposit £8,180 plus VAT (i.e. one Limited (SC050785) quarter). Schedule of condtion. Tenant only Occuptional break with 6 months’ prior notice. Market City Electrical Factors Unit 9 2,986 B27 £18,000 £6.03 29/04/13 28/04/23 10 years 24/06/18 Limited (336408) Investment Central Plastics and Unit 10 2,996 C38 £12,733 £4.25 01/11/13 31/10/19 6 years Market Roofing Limited (SC323377) Further Wetrooms Distribution Unit 11 2,998 B26 £13,500 £4.50 21/02/14 20/02/24 10 years 21/02/19 21/02/19 Schedule of condition. Tenant only break Information Limited (SC278451) with 6 months’ prior notice. Caldwell Wright & Co Unit 12 2,992 G117 £14,500 £4.85 30/09/14 29/09/19 5 years 30/09/17 Limited (SC053276) Total £288,687

7 ETNA COURT COVENANT MIDDLEFIELD INDUSTRIAL The property is let to a wide variety of local and national trade park operators with a WAULT ESTATE good spread of income. Approximately 84% of the income is secured by covenants that FALKIRK reflect either a very low risk or low risk of business failure. FK2 9EQ Tenant Creditsafe Risk Rating % of 6.43 YEARS 4.26 YEARS Score Income Home TO EXPIRY TO BREAK Wolseley UK Limited (t/a Plumb Centre) 66 - B Low Risk 30% Summary Travis Perkins t/a PTS 67 - B Low Risk 10%

Aerial Tile Star Limited 71 - A Very Low Risk 10% Veitchi Flooring Limited 75 - A Very Low Risk 8% Location D+G Autocare Limited 76 - A Very Low Risk 11% LEASE TERM REMAINING TO EARLIEST EVENT Situation JG Martin Plant Hire Limited 39 - C Moderate Risk 11% 60 Description City Electrical Factors Limited 87 - A Very Low Risk 6% 55 50 Tenancy Schedule Central Plastics and Roofing Limited 79 - A Very Low Risk 4% 45 Wetrooms Distribution Limited 53 - B Low Risk 5% Covenant 40 41 Caldwell Wright & Co Limited 49 - C Moderate Risk 5% 35 Occuptional 30 Market 31 25 28 Investment RISK OF BUSINESS FAILURE 20 Market 15 10 Further 5 Information 16% 0 Moderate Risk 0 3 Yr 3 5 Yr 5 10 Yr 39% Very Low Risk 45% Low Risk

8 ETNA COURT OCCUPATIONAL MARKET MIDDLEFIELD INDUSTRIAL The industrial occupational market across the Central Belt of Scotland has performed well in the last 5 years, with high levels of take up leading to a steady decline in ESTATE industrial availability. In 2016 there was approximately 2.86m sq. ft. of industrial take up across the Central Belt. FALKIRK FK2 9EQ Demand in Falkirk continues to be towards established estates and traditional trade counter style accommodation is the focus of most requirements. The area is particularly popular with the service industry, which is focused on taking space where there is a skilled workforce. The most active area of the market is for smaller units below the 5,000 sq. ft. level with less demand being witnessed at the larger end of the market.

Home The reduction in supply combined with the limited amount of industrial development has led to an increase in rental levels and a reduction in the incentives offered from landlords. Prime rents in Falkirk for the best trade counter space is in the region of £6.50 per sq ft. Middlefield Trading Estate (U A2) was let to Rinus Roofing Summary Supplies in August 2016 for £6.52 psf.

Aerial There is still a very limited amount of speculative development across the central belt, with only 2 schemes collectively totalling 70,000 sq. ft. reaching completion in the last 18 months adding further to the supply and demand imbalance. Location Situation INVESTMENT MARKET Description The multi-let industrial market in Scotland continues to be favoured by investors due to a strong occupational story and low capital values per sq ft (often below cost of Tenancy Schedule replacement). Dwindling supply conditions have created strong rental growth prospects, minimal void periods and a reduction in incentives. This has led to increased appetite for multi-let investment product, particularly opportunities located in Scotland, where income focussed investors can take advantage of the yield discount Covenant when compared to other assets across the rest of the UK.

Occuptional Date Address Area (Sq Ft) AWULT Price NIY CV (PSF) Market Under Offer Oakbank Trading Estate, Glasgow 87,500 4.5 years (3.2 years to break) £7.74m* 6.27% £89 Investment Under Offer Excelsior Park, Wishaw 109,523 6.9 years (3 years to break) £6.40m* 7.90% £58 Market Exchanged Kingston Trade Park, Glasgow 39,278 5.5 years (3.8 years to break) £4.70m* 5.96% £120 Further Information Feb-17 M8 Interlink, Kirkshaws Road, Coatbridge 290,103 8 years (6 years to break) £15.90m 7.99% £55 Mar-16 Kinning Parkway Industrial Estate, Glasgow 101,892 2.55 years £5.495m 7.77% £54 Feb-16 Bailleston Distribution Centre, Glasgow 176,764 4.1 years £6.00m 8.00% £34

*Understood to be under offer at the level indicated.

9 ETNA COURT FURTHER INFORMATION MIDDLEFIELD INDUSTRIAL ESTATE EPC FALKIRK Energy Performance Certificates are available on request. FK2 9EQ VAT The property is elected for VAT and therefore it is envisaged that the sale will be Home treated as a Transfer of Going Concern (TOGC). Summary SERVICE CHARGE Aerial The current service charge budget for the year ending 31st December 2017 is £36,444 which equates to £0.67 per sq ft. Location PROPOSAL Situation We are instructed to seek offers in excess of £3,404,000 (Three Million Four Description Hundred and Four Thousand Pounds), subject to contract and exclusive of VAT. This reflects a NIY of 8.00% and a low capital value of £62.50 psf, assuming Tenancy Schedule acquisition costs of 6.01%.

Covenant CONTACTS Should you require further information, access to the data room or wish to view Occuptional the property, please contact: Market Richard Gale Janey Douglas Investment +44 (0) 207 087 5572 +44 (0) 131 301 6718 Market +44 (0) 7527 388024 +44 (0) 7734 883046 [email protected] [email protected] Further Information Richard Mackie +44 (0) 131 243 2204 +44 (0) 7966 396480 [email protected]

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