A UNIQUE LONG INCOME LOGISTICS INVESTMENT OPPORTUNITY MANTON WOOD, S80 2RT

DHL Supply Chain – Excellence. Simply delivered. 2 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT

INVESTMENT SUMMARY nn Build-to-suit distribution warehouse investment nn To be let to DHL Supply Chain Ltd on a new 20 year totalling 538,280 sq ft (50,008 sq m) lease following completion of the building scheduled for September 2020 nn The unit will operate as a strategic DHL Supply Chain campus for the East Midlands region nn The lease will be subject to 5 yearly rent reviews annually compounded at 2% per annum nn The East Midlands logistics market was the principal contributor to take-up across the UK, followed by nn Proposed initial rent of £3,033,773 per annum, Yorkshire & North East with a combined total of 58% reflecting £5.64 per sq ft of the overall market nn DHL Supply Chain Ltd benefit from a Dun & nn Strategic East Midlands location in Manton Wood, Bradstreet rating of 5A1, indicating a minimum risk of which is within 2 minutes of the A1 and 15 minutes of business failure J31 M1 nn Freehold nn Base build specification to include high-tech lighting, heating and roof sprinklers, commanding We are instructed to seek offers in excess of £61,839,000 a premium rent (Sixty One Million Eight Hundred and Thirty Nine Thousand Pounds) subject to contract and exclusive of nn The warehouse also benefits from 18m minimum VAT. A purchase at this level reflects a Net Initial Yield of eaves height (with a 28m high-bay section extending 4.75% and a capital value of £115 per sq ft assuming to c.127,000 sq ft), maximum yard depth of 135m, purchaser’s costs of 3.28%. loading capacity of between 60-70 kN/ sq m and an anticipated BREEAM ‘Very Good’ rating The deal will be structured as a two stage payment forward commitment. nn The site extends to approximately 30.96 acres (12.53 ha) providing a low site density of 36%

For indicative purpose only A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 3

Worksop Town Centre

Worksop Railway Station

B&Q

M1 (10 miles)

Manton Wood Enterprise Park

PHASE 3

PHASE 2 Wilko

A57

A1 (1.25 miles) 4 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT

LOCATION & SITUATION

Worksop is in the county of approximately 24 miles (39 km) north west of Nottingham, 40 miles (64km)

G AD O A A60 south of Leeds and 60 miles (96km) south east of Manchester. R T E E

F H

O T Y L L Worksop benefits from outstanding connectivity to the R B L I D H

N

Midlands, Yorkshire and the North, owing to its strategic O

R T

L O I

A K

D positioning just 10 miles east of Junction 31 of the M1 D OA A1 RD R WORKSOP TFO Motorway. The A57 runs on the east west axis immediately RE TER S P O T T REET to the south of Worksop, whilst the A1 runs on the north B 6 0 4 south axis to the east. The property itself is accessed via the 0

A57, providing immediate access to the A1 and J31 of the M1 A57

4 A57

3

Motorway. The A1 is just 1.25 miles east of the subject 0 6 WORKSOP B

property and provides direct access into Central London. It GOLF CLUB

also feeds directly onto the A1(M) as well as the M18 at D A614

A E

O U

R N

E N V

A Junction 2 to the North. O E

T E

R R

E T

L E

L M O I L Worksop benefits from good rail services, with Worksop Railway Station providing regular direct services to , Leeds and Lincoln. Both London and Manchester can be accessed directly via Sheffield Station which is just M65 Hull 30 minutes from Worksop. Doncaster Sheffield Airport is justBlackpool M62 17 miles to the north and provides both long and short haul Leeds international flights. 1.22 million passengers passed through IMMINGHAM Liverpool Manchester A38 17 20 A1(M) this airport in 2018 alone. Manchester Airport, East Midlands 32 Manchester 14 Airport and Leeds Bradford Airport are also all located withinLiverpool Airport Sheffield Airport M56 a 60 mile radius of Worksop. Peak M1 A1 District M6 Stoke The location is also strategically located close to several key Derby A41 26 Nottingham ports, namely, the Port of Hull and the Port of Immingham East A52 Midlands Airport 23 which are both within 55 miles north east of Worksop. Shrewsbury

M54 11 M42 22 Peterborough The Port of Immingham is the UK’s largest port by 7 Norwich A47 21 tonnage, handling around 55 million tonnes per year. The 6 6 9 M6 port can handle vessels carrying cargos of up to 130,000 Birmingham 2 A1(M) A11 19 A14 9 2 Coventry 1 tonnes and is less than 24 hours from a European market B’ham Northampton M5 Airport A12 of over 170 million people. Worcester Cambridge A44 M40 M1 A1 Ipswich 10 13 A1(M) M11 A40 11 Cheltenham 11 Luton Luton Stansted A40 A4 0 Airport 9 2 M5 Oxford M25 Newport M40 Ports miles km Routes miles km Road NetworksA34 miles Londonkm Southend M4 Cardiff M4 City Heathrow Immingham 52 84 Worksop 3 Bristol4.8 A1 M4 1.25 Airport1.6 M3 Hull 55 89 Nottingham 24 39 M1 (Junction 31) 10 16 M2 Liverpool 93 150 Leeds 40 64 M18 (Junction 2) 16 26 Felixstowe 167 269 Manchester 60 96 M18 (Junction 2) 34 55 Southampton 187 301 London 150 241 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 5

DEMOGRAPHICS

Worksop is considered a key distribution location given its strong demographic and locational characteristics. As labour is becoming more and more critical in terms of UNEMPLOYMENT RATES occupier’s warehousing decisions, Worksop is perfectly suited to accommodate modern occupier needs going nn UK – 3.9% forward. This can be further illustrated by the fact that Amazon and other major occupiers have been committing nn Yorkshire & The Humber – 5.2% to significant warehouse facilities in the northern East Midlands and Yorkshire over the last 24 months. nn North East – 5.1% Aberdeen

Worksop sits in Bassetlaw within the Sheffield City region nn East Midlands – 4.7% which has a total population of 1.8m people. The South

Yorkshire region has the largest resident and working Dundee population in the UK, outside London and the South East, with a population of 1.34m.

M90 Edingburgh

M9 Glasgow M80 M8

AVERAGE ANNUAL SALARIES M77

M74 ,000 ,00

0,000 2,08 Newcastle 2,000 A1(M) 20,2 Middlesborough 20,000 M6

,000 A1(M) 0,000 Leeds M65 M62 Hull M62 ,000 M6 M1 M18 Liverpool Manchester Sheffield 0 M56 Manton Wood M1 U London Worsop M6 Nottingham

M54 M42 Leicester

Birmingham M6 A1(M) M42 Coventry Almost 3 million people can reach M1 M50 M40 M11 Manton Wood within a 45-minute drive. A1(M) M5

M25 M4 M4 Cardiff London Bristol M2 M26 M3 M20 Average annual salaries in Worksop are M23 M5 26% below the national average for UK. Southampton Brighton Portsmouth Exeter

Over 1.4m working age people live within Plymouth a 24-mile radius.

50 Miles 100 Miles 150 Miles 200 Miles Source: ONS 6 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT

DESCRIPTION COMAH REGISTERED

The property will comprise a state of the art distribution nn Minimum clear eaves heights of 18m with warehouse extending to 538,280 sq ft. The property will approximately 127,000 sq ft of the facility being be developed by DHL and will act as a multi-user facility constructed to 28m height for the tenant which, when fully operational, will have multiple contracts running on site, with the high bay area nn 40 dock level loading doors and 4 level access being fully automated. loading doors

The site will benefit from being a Top Tier COMAH nn 158 HGV parking spaces, 26 trailer parking spaces and registered warehouse, which enables occupiers to store 428 car parking spaces hazardous materials in the facility safely. The tenant has decided to register this site specifically with COMAH status at nn Uniform floor loading of 60kN per 2m and 70 kN per its own cost, demonstrating its commitment to the location. m2 to the high bay area

ENHANCED BASE BUILD nn Maximum yard depth of 135m

nn Gas heating throughout The property is being designed to an enhanced base build specification – items such as heating, lighting and roof nn LED lighting throughout sprinklers are forming part of the base build design, which commands a significant rent premium over and above a nn 30,000 sq ft structural mezzanine to be constructed typical ‘shell’ constructed fit out. out of steel and concrete, with a minimum eaves height of 8m The base build specification of the unit will include the following: nn Sprinkler system

ENVIRONMENTAL IMPROVEMENT AND CARBON FOOTPRINT REDUCTION MEASURES

DHL is committed to reducing the impact of its business on the environment. By the year 2050, the tenant intends for all logistics related emissions to be reduced to net zero. The following features assisting in the environmental improvement of the building are included within this performance specification:

FE FE FE FE FE FE Roof Access Roof Access

BREEAM The LED lighting 1 N° Level Access Point Point ‘Very Good’ used throughout Doors the facility will significantly exceed the requirements FE High Bay Low Bay Warehouse COMAH Area of Building Regulations FE 28M HIGH COMAH AREA BAY AREA EPC Solar thermal A-22 rating pre-heating of FE FE hot water Roof Access FE Point Smart meters Site specific Main Office

4 x 4.5m 2 N° Balers

optimised Warehouse Level Access Door Toilet Pod 2000 Foul Drainage Foul Drainage 13 N° Dock Doors 14 N° Dock Doors 13 N° Dock Doors natural light to 1 N° Level 2 N° Level Access MHE Workshop Battery Charge Access Doors Doors FE FE FE warehouse via C C C C C C C C C C

Transport roof lights and/or wall Office

Provision for Condenser Smoking platform lift 1100 N lights considering area Shelter x 1450mm use, light and heat A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 7

THE SITE

As per the below plan, the construction of Phase 1 is the ACCOMMODATION start of a wider 57.49 acre development being brought

forward by DHL. Plans are in place to develop out two Accommodation Sq.ft. Sq.m. more phases to provide at least a further 450,000 sq ft Warehouse 476,150 44,235.4 (subject to planning). Offices 20,000 1,858.0 Transport Offices 5,000 464.5 Manton Wood has, and continues to receive strong Gatehouse 300 27.9 occupier interest primarily due to its abundant and cheap Structural Mezzanine 30,000 2,787.1 labour supply and favourable locational demographics. Plant Deck 6,830 634.5 The area has become an established logistics location with Total 538,280 50,007.9 national occupiers including B&Q, Wilko and now DHL.

The site extends to approximately 30.96 acres (21.53 ha)

MH IC TB MH P LP S LP NP LP SP MH LP SP BT LP MH IC RS MH NP LP T WST LP B RS TB LP providing a low site density of 36%. IC MH CB LP WST FH LP MH LP FH SP BT MH P IC MH RS SP L MH MH MH LP LP SP NP MH BT MH MH LP TB LP NP LP BT MH LP MH IC LP MH MH BT A57 NP LP MH MH TB LP NP

MH TB P TB L MH MH MH LP LP TB TB LP MH LP LP RS LP LP RS RS LP LP LP RS RS LP LP RS SP LP RS LP LP LP NP NP

LP SP LP SP PT

NP

W

/ B

BUSHES B/W

Unit 1 High Bay

BUSHES C C

C B/W C C C C C C C

C C C C C C C C C C B/W BUSHES Phase 2

B/W 21.30 ACRES

B/W

Existing Footpath (8.85 HA)

B/W

B/W BUSHES

B/W

Phase 3

5.14 ACRES (2.08 HA)

Old Coach Road

For indicative purpose only 8 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT

COVENANT

DHL – The Logistics Company for the World. TENURE

DHL is the leading global brand in the logistics industry. The property is held Freehold under the Title number The DHL family of divisions offer an unrivalled portfolio of NT326273. logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean TENANCY transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and The completed development will be let on a full repairing territories worldwide, DHL connects people and businesses and insuring lease to DHL Supply Chain Ltd for a term of 20 securely and reliably, enabling global trade flows. With years. The initial annual rent will be £3,033,773 per annum specialized solutions for growth markets and industries equating to £5.64 per sq ft on the base build of the property. including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate The rent will be reviewed five yearly equivalent to 2% per responsibility and an unrivalled presence in developing annum annually compounded. markets, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 61 billion euros in 2018.

DHL Supply Chain Ltd benefits from a D&B rating of 5A1 indicating a minimum risk of business failure.

DHL Supply Chain LTD 31/12/2017 31/12/2016 31/12/2015 Sales Turnover £3,150,192,000 £3,086,252,000 £4,010,360,000 Pre-Tax Profits £78,899,000 £99,414,000 £108,161,000 Net Worth £436,046,000 £354,148,000 £360,100,000 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 9

OCCUPATIONAL MARKET COMMENTARY

The UK’s logistics occupational market is as strong as ever EAST MIDLANDS, YORKSHIRE AND NORTH EAST PRIME with 2018 take-up totalling 31.50m sq ft across 101 deals; INDUSTRIAL RENTAL GROWTH (2008 – 2018) this was 82% higher than 2017 and exceeded the annual 00 00 record from 2016 of 29.35m. 00

00

37% of total take-up was in the East Midlands, setting the 00 highest proportion for a region since 2006. Yorkshire and un 08 un 0 un 0 un un 2 un un un un un un 8 ec 8 the North East followed with a strong performance of ec 08 ec 0 ec 0 ec ec 2 ec ec ec ec ec

21% of total take-up. Whilst Manton Wood falls within ort East orsire East Midlands the East Midlands, it is near to Yorkshire and the North East region. Combined, these regions accounted for 58% MIDLANDS LOGISTICS TAKE-UP (2006 – 2018) of total take-up. 0 0

20

Average deal size in the East Midlands was more than 00 392,000 sq ft in 2018. This is testament to the ever- 80 expanding occupier requirements. The size band of 0 0

100,000 sq ft to 150,000 sq ft is starting to be considered as 20 just an extension of the mid-box market – certainly in the 00 200 200 2008 200 200 20 202 20 20 20 20 20 208 East Midlands. Secondand e Early maret Average

There remains a significant demand / supply imbalance YORKSHIRE & NORTH EAST LOGISTICS TAKE-UP (2006 – 2018) in the logistics market, with current supply likely to only 8.0 provide 12-months of take-up (based on 2018 figures). 7.0

This acute supply/demand imbalance, coupled with the 6.0 excellent locational demographics in Manton Wood has 5.0 applied upwards pressure on rents with the prime levels 4.0 now being achieved at around £6.00 per sq ft. 3.0 2.0

1.0

0.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Secondhand New & Early market Average

A SCHEDULE OF COMPARABLE LETTINGS ARE OUTLINED BELOW:

Building Tenant Date Size (sq.ft. Build status Rent (PSF) Lease terms DC3, Prologis Park, Pineham Morrisons Jul-18 372,284 Second Hand £6.50 10 Years

Big Box 2, East Midlands XPO / Nestle Mar-18 638,278 New Build £6.35 16 Years Gateway, Derby DC3, Prologis Park, Anixtier Dec-17 213,526 New Build £5.85 20 Years Lichfield +10p fit out Phase 1, Mountpark, Eddie Stobart Nov-17 314,500 New Build £5.85 15 Years Bardon Brackmills,Point Decathlon Jan-17 405,000 New Build £6.50 15 Years Brackmills 10 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT

INVESTMENT MARKET COMMENTARY

Investment into the UK industrial sector recorded another nn Excellent ‘blue-chip’ covenants providing secure very strong year thanks to an extremely busy fourth income streams and strong re-gear potential; quarter. Total transaction volumes reached £6.83bn which is broadly in line with the previous record set in 2017. UK nn Long dated income distribution and logistics assets specifically, reached £2.38 billion in 2018, in line with the 5-year average. Industrial nn Excellent property fundamentals including low site as a sector, has fared extremely well despite the political cover, large yard, eaves height (12+m); and economic headwinds faced over the past 12–24 months. The industrial investment market is underpinned nn Fixed rental uplifts that guarantee performance by a very robust occupational story driven by a structural shift in demand, and an acute undersupply of space. nn New-build assets

Industrial sector returns reached 18.1% for the whole of nn Strong logistics locations with a focus on access to 2018, thanks largely to capital value growth of 12.4%. cheap labour

Given potential headwinds within the global economic The subject property satisfies all the above. market, many investors have adopted a ‘flight to prime’ approach with their investment rationale. Within the logistics sector, such attributes would include:

A SCHEDULE OF KEY PRIME LOGISTICS TRANSACTIONS ARE OUTLINED BELOW:

Property Date Area Term certain Rent NIY Purchase Capital Value Vendor Purchaser (Years) (PSF) price (PSF) Next – Waltham Under Offer 322,335 15 Rent bid 3.15% £62,500,000 £194 Next LaSalle Cross down Anixter – June 2018 213,000 20 £5.85 4.44% £25,845,000 £121 Prologis Aberdeen Fradley Park Standard DHL – Avonmouth Dec 2017 159,693 20 £8.22 4.37% £28,120,000 £176 DHL BlackRock A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 11

TRANSACTION STRUCTURE DEVELOPMENT TIMESCALES

The transaction is being structured on a two cheque The following development and transaction timescales are forward commitment basis. Further information can be envisaged: provided on request. 1 2 THE PROFESSIONAL TEAM

The main professional team for the development comprises: July 2019 August 2019 nn Receipt of detailed nn Construction begins nn Developer – DHL Real Estate UK Ltd planning consent post judicial review period nn Architects – UMC Architects / CDM Contract Services nn Land purchase nn Project Manager – Lysander Associates nn Planning Consultant – Quod Planning nn Mechanical and Electrical Engineers – Synergy 3 4 Building Services Solutions nn Contractor – Currently out for tender September 2020 September/October 2020 nn Structural Engineer – Bradbrook Consulting nn Construction nn Tenant continues completion warehouse/office Further information can be provided on request and is fit-out nn Balance payment contained within the data room. nn Lease begins, tenant enters into EPC & BREEAM occupational lease Based on the proposed specification, it is anticipated that the property will have an EPC rating of A-22 and a BREEAM rating of ‘Very Good’. PROPOSAL

DATA ROOM We are instructed to seek offers in excess of £61,839,000 Access to the data room is available upon request. (Sixty One Million Eight Hundred and Thirty Nine

Thousand Pounds) subject to contract and exclusive of

VAT. A purchase at this level reflects a Net Initial Yield of VAT 4.75% and a capital value of £115 per sq ft assuming The property has been elected for VAT. It is envisaged that purchaser’s costs of 3.28%. the sale will not take place by way of a Transfer of Going Concern (TOGC). The deal will be structured as a two stage payment forward commitment. Jack Cox John Doleman +44 (0) 20 7182 2458 +44 (0) 20 3214 1911 +44 (0) 7949 517 506 +44 (0) 7464 980 354 [email protected] [email protected]

Tom Woolhouse Robbie Offer +44 (0) 20 7182 2113 +44 (0) 20 3257 6160 +44 (0) 7818 012 428 +44 (0) 7979 970 875 [email protected] [email protected]

Roger Haworth Richard Wright +44 (0) 7872 377 153 +44 (0) 7708 811 832 [email protected] [email protected]

Subject to contract & exclusive of vat – April 2019

Disclaimer: CBRE Limited & Commercial Property Partners

CBRE Limited & Commercial Property Partners on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Whilst CBRE Limited & Commercial Property Partners uses reasonable endeavours to ensure that the information in these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. CBRE Limited & Commercial Property Partners as such cannot be held responsible for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content of these particulars. 3. No person in the employment of CBRE Limited & Commercial Property Partners has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted exclusive of VAT. Lease details and service ground rent (where applicable) are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts.