Travis Perkins Units 4 & 5 Kidwelly Industrial Estate Pembrey Road, Kidwelly SA17

Home , Ammanford, Pembrey

Investment Summary

• Trade Counter / Industrial investment with a GIA of 9,263 sq ft / 860.6 sq m and extensive yard. • Low site coverage of 20% on 1 acre (0.405 ha). • Tenant – Travis Perkins (Properties) Ltd – 5A2 D&B Rating. • FRI lease for a further 10.5 years, expiring 30th November 2031 (subject to Schedule of Condition). • Virtual Freehold – 200 year leasehold from 2006 at a peppercorn rental with an option to purchase freehold for £1. • Topped-up rental of £51,351pa. Analysed at £4.50psf over the Trade Counter and Warehouse Space, with allowance for large yard and mezzanine office at 50%. • Minimum fixed rental increase at December 2027 rent review to £59,530 pa. • Offers in excess of £780,000 (Seven Hundred and Eighty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.25%, rising to 7.25% following the December 2027 minimum rental uplift, assuming purchaser’s costs of 5.23%.

Plan is for identification purposes only

Location and Situation Machynlleth Newtown Kidwelly is located on the A484 midway (c.10 miles) between the towns of Llanelli and Carmarthen. Access to the M4 motorway is via junction 48 some 14 miles to the east, plus the town has a rail link on the Great Western main line. Aberystwyth The town is a popular residential area with a population of approximately 4,000. Ludlow Kidwelly is also a busy tourist destination being close to the beaches and it has a A44 well preserved castle. A487 Leominster The property is prominently situated on the Kidwelly industrial estate, 0.5 miles Llandrindod Wells south of the town centre on the Pembrey Road, which is the main route into Kidwelly from Llanelli.

Buith Wells Hereford Cardigan Hereford Llandeilo Fishguard

Carmarthen Brecon Haverfordwest A40

Ammanford Kidwelly Llanelli Neath Merthyr Tydfil Tenby Newport Swansea Port Talbot

M4M4 Cardiff

Morfa Mean N Investment Opportunity Travis Perkins Units 4 & 5 Kidwelly Industrial Estate

Pembrey road

Pembrey road Plan is for identification purposes only

Description

Developed in the late 1980’s, the property comprises a Trade Counter and Warehouse unit on a total secured site area of 1 acre (0.405 ha).

• Steel portal frame construction. • Brick/Block and steel profile elevations. • Steel profile roof incorporating roof lights. • Concrete slab floors. • 2 x roller shutter access to warehouse – clear 6.23m eaves height, rising internally to 7.00m. • Separate, secure open storage compound.

Accommodation

Total site area of 1 acre (0.405 ha) with a low site cover of c.20%.

Area Sq m GIA Sq ft GIA

Trade Counter 255.9 2754

Ground Floor Office 11.0 118

Mezzanine 28.4 306

Warehouse 565.3 6085

Canopy 144.9 1560

Total (excl. canopy) 860.6 9263

Tenure - Virtual Freehold

Term: 200 years from 1st December 2006 at a peppercorn rental.

Freeholder: Travis Perkins (Properties) Ltd.

‘Call Option’: The Freehold interest can be acquired for £1 by the Head Leaseholder, exercisable on expiry of the occupational lease or should a Group company of Travis Perkins plc cease to have an interest.

Occupational Lease

• Tenant: Travis Perkins (Properties) Ltd. • Term: 25 years from 1st December 2006 (10.5 years unexpired), Full Repairing & Insuring (subject to a Schedule of Condition). • Current Rental: £44,296 pa, payable monthly in advance. • Rent Review – 5 Yearly to higher of two-thirds of Market Rent or 3% pa compound increase (15.93% increase). • Minimum Reversionary Rental: 1st December 2022 - £51,351 pa and 1st December 2027 - £59,530 pa. • Renewal Option: On lease expiry, the tenant has an option to renew the lease for 25 years, at market rent but otherwise on identical lease terms, including the rent review basis. • The vendor will “top-up” the rent to the December 2022 level of £51,351pa.

Covenant

Travis Perkins is the UK's largest distributor of building materials to the building, construction and home improvement markets and dates back over 200 years. Their various brands employ 20,000 staff across over 1,700 branches.

The Travis Perkins Group of companies have enjoyed an encouraging start to the year with robust sales growth across it’s businesses recording like-for-like sales growth of 17.4% in Q1 2021 over the same quarter last year and 11.8% on a 2 year like-for-like basis.

Travis Perkins (Properties) Limited: 5A2 D&B Rating represents a “lower than average risk of business failure". Summaries from the available accounts for Travis Perkins (Properties) Ltd for the three previous trading years are:

Year to Date Turnover Pre Tax Profit Shareholder's Funds

31/12/2019 £68,000,000 £31,000,000 £290,400,000

31/12/2018 £92,200,000 £49,200,000 £268,200,000

31/12/2017 £87,300,000 £68,900,000 £332,700,000

Occupational & Investment Market

Figures collected by the Industrial Agents Society for South Wales recorded take up for Q1 2021 reached a total of 959,917 sqft over a total of 84 deals. This represented an approximate 270% increase on the same period last year (Q1 2020). There were a total of 5 deals over 50,000 sqft, with the majority (61) of deals being in the sub 10,000 sqft bracket. Market fundamentals continue to strengthen and rental growth is evident, all of which is underpinned by persisting occupier demand and an ever constrained level of supply.

The investment market also continues to witness strong demand for industrial and logistics property. Notable recent deals include:

Property Date Tenant Wault (years) Price NIY Purchaser

Barnsley - Unit 1 Beevor Ind Est 03/21 Travis Perkins 10.75 £850,000 5.56% Private Investor

Cheddar - Valley Line Ind Est 02/21 Travis Perkins 10.75 £875,000 5.29% Private Investor

Cinderford - Forest Vale Ind Est 02/21 Travis Perkins 10.75 £625,000 5.58% Local Authority

Cardiff - Unit 1 Lakeside, St Mellons 08/20 BBC 9.75 £2.15m 6% Private overseas

Cardiff - Fortran Road 06/20 Olympus 4.75 £3.2m 6.35% Private Investor

Swansea - Neptune Works 03/20 Travis Perkins 6 £727,500 6% Private Investor

Planning Permission for the units was granted in 1988 & 1990. Under application numbers D5/10785 & D5/13224 respectively. The permissions relate to the proposed development of a builders merchants warehouse and yard, store extension, yard and canopy. More information can be provided on request.

VAT

The property has been elected for VAT and the transaction will be treated as a TOGC.

EPC

The property has an EPC rating of: C 67. A copy of the report is available on request.

AML

When submitting a bid for the property, potential purchasers will need to provide appropriate documentation capable of satisfying the requirements of the Anti-Money Laundering Regulations.

Data Room

Data room access can be provided upon request.

Proposal

Seeking offers in excess of £780,000 (Seven Hundred and Eighty Thousand Pounds) for the virtual freehold interest, subject to contract and exclusive of VAT. A purchase at this price would show a net initial yield of 6.25% (on the topped up rent), rising to 7.25% in Dec 2027 assuming the minimum fixed rental increase at review and Purchaser’s Costs of 5.23%. (incl. Land Transaction Tax).

Powell Lloyd 3rd Floor, Capital Tower, Greyfriars Road Cardiff, CF10 3AZ www.powell-lloyd.co.uk

James Sanders Daniel Evans +44 (0)2920 66 01 66 +44 (0)2920 09 88 44 +44 (0)7967 203 595 +44 (0)7855 245 527 [email protected] [email protected]

Misrepresentation Clause

Powell Lloyd Ltd acting for themselves and for the vendors or lessors of this property whose sole agents they are give notice that:

(i) The particulars are set out as a general outline for the guidance of the purchasers and do not constitute part of an offer or contract; (ii) All descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) No person in the employment of Powell Lloyd Ltd has any authority to make or give any representation or warranty whatever in relation to this property. (iv) All rentals and prices are quoted exclusive of VAT. (v) All plans and maps provided with the particulars are for identification purposes only.