Morganite Trading Estate Upper Fforest Way, Enterprise Park, Swansea, SA6 8PP

August 2016

INDUSTRIAL INVESTMENT OPPORTUNITY

Significant active asset management and development opportunities

48 M4

47 46 45 Neath Investment Summary 44 43

Swansea 42 • Freehold. 41 Gower Port Talbot • Swansea is the second largest city in and 40 the administrative and commercial centre for West Wales. 39 38 Llantrisant M4 • Located within the prime industrial and 31 M4 36 32 commercial location in Swansea. 37 35 34 Bridgend 33 • Situated in Swansea Enterprise Park, which has Cardiff excellent access to the M4 with Junction 44 & 45 in close proximity. Swansea • Morganite Trading Estate is an established Swansea is the second largest city in Wales which has a population of 230,000 Cardiff and is the gateway to West Wales. It is one of the major administrative and International industrial estate offering both secure income and commercial centres for the principality and draws on a catchment population significant asset management and development of circa 1.5 million from within a 1 hours’ drive time. Airport opportunities. The city is located on the northern shore of the Bristol Channel approximately 85 miles west of Bristol, 42 miles west of Cardiff and 185 miles west of • Comprises 331,975 sq ft of predominantly London. Swansea benefits from excellent road communications being situated approximately 5 miles south of the M4 motorway (junction 44 to 47). The industrial accommodation on a site of 18.79 acres. city also has a main line railway station that provides a regular direct link to London Paddington in less than 3 hours. • Part let to Morgan Electrical Carbon for 15 years Swansea is a popular student destination and there are now more than 30,000 (10 year break). Significant covenant with global students in higher education at Swansea University and the University of Wales sales for 2015 in excess of £911.8 million. Trinity St David’s. Tourism is prosperous in Swansea with many attracted to the Gower Peninsula • Producing a total current income of £464,390.25 (an area of outstanding natural beauty) which offers 32 miles of coastline plus per annum. the which is the sporting arena for Swansea City Football Club and the Ospreys regional rugby team. • Circa 50% of the space is either vacant or let on The city is expected to see further growth from mixed use development and short term leases providing the opportunity to add regeneration of both the city and its waterfront. significant value. Swansea is home to a wide range of national and international companies including HSBC, Admiral Insurance, Amazon, BT, Virgin Media, Hewlett • The industrial areas are significantly under rented Packard and 118 118. The city could become the home of the world’s offering opportunities in the short term to increase first tidal lagoon and combined with Swansea University’s new science and innovation campus to the east of the city would drive investment to the area the rental income. thus raising the profile of Wales’s second city.

• The offices and surplus land/car parking offer development potential. Morganite Trading Estate 45

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• We are seeking offers in excess of £5,250,000, 6 M4 reflecting an attractive Net Initial Yield of GOLF CLUB A40 . 8.30%, after deducting purchasers costs at

A48 TH RD Y 6.60%, and a low Capital Value of £15.81 per A WA NE BIRCHGROVE

sq ft. MORRISTON EST TERS ROAD R AL O W

• Estimated Rental Value of £978,407.75 per annum ER FF ASDA P UP which would result in a potential Reversionary A48 44 Yield of 17.48%. SAMLET RD A48 .

SWANSEA Subject to Contract & Exclusive of VAT ENTERPRISE PARK

TH RD. A4217

NEA

7 1 2 4 A RD.

A4067

JERSEY

A4217 48 M4

47 46 45 44 Neath 43 Swansea 42 41 Gower Port Talbot 40

39 38 M4 Llantrisant 31 M4 36 32 37 35 Situation 34 33 Morganite Trading Estate is located on the northern Bridgend Cardiff periphery of the well-established Swansea Enterprise Park regarded as the prime industrial location in Swansea. It is situated approximately 4 miles north east of while Junctions 44 and 45 of the M4 motorway are located 1.5 miles to the north of the Park. Cardiff The property is adjacent to a retail/leisure development that International includes occupiers such as ASDA, Premier Inn Hotel, KFC, Airport Costa Coffee and Taybarns.

Key 1 Admiral 11 Afon Engineering 2 Arvato 12 City Centre 3 DVLA 13 SA1 Waterfront 14 4 DVLA 14 Mumbles 5 Booker 15 Liberty Stadium Cash & Carry 16 13 Burger King 12 6 Direct Storage 17 Greggs 7 Selco 18 Pappa Johns Pizza 15 8 Bestway Cash & Carry 19 Costa Coffee 9 Blakemore 20 Premier Inn/ Cash & Carry Brewers Fayre 21 10 Parcel Force ASDA

Morganite Trading Estate 45 21 16 17 8 18 7 19 6 MORRISTON M4 7 6 20 GOLF CLUB A40

.

A48 TH RD Y A 9 5 WA NE BIRCHGROVE Morganite Trading Estate MORRISTON EST TERS ROAD R AL 10 O W 11 ER FF ASDA P UP 3 A48 4 44 SAMLET RD A48 . 1 2 LLANSAMLET

SWANSEA ENTERPRISE PARK

TH RD. A4217

NEA

7 1 2 4 A RD.

A4067

JERSEY

A4217 Morganite Trading Estate

Description Morganite Trading Estate occupies a site of approximately 7.61 hectares Internally each unit benefits from open plan warehouse space with level (18.79 acres) and offers a range of industrial and office accommodation. access loading door provision and integral offices/ancillary space. The total footprint of the existing buildings within the site totals 331,975 The office accommodation (Building D) is of steel framed construction sq ft which provides site coverage of 37%. with brick elevations. Internally there are a number of partitioned rooms The site comprises one large warehouse subdivided into 3 self-contained offering a mix of open plan, cellular offices, laboratory space plus canteen units plus a further high bay warehouse (Unit H).The majority of and toilet facilities. industrial accommodation benefits from a good range of eaves heights, Externally the site has generous areas of car/lorry parking and storage and from 6 metres up to 10 metres. The industrial buildings are generally is secured by a perimeter fence. In addition, the estate also benefits from of steel portal framed construction with profiled steel cladding to CCTV coverage and a security gatehouse. the elevations and pitched roofs. We understand the buildings were developed in the early 1970’s and then refurbished in the late 1990’s.

N

Caravan Site N

Morriston North Industrial Estate YARD 1 St Johns Court

Car Park 1 H YARD 2 Security Hut

Car Park 2 F G D E RMPU Acorn Court

Brewer’s Fayre UPPER FFOREST WAY

Premier Inn

ASDA

Finnegans Joe’s Ice Cream Costa Parlour Papa John’s Pizza Greggs

Unit H Units E & G Unit D Tenancy Schedule Tenure Current occupational position on the estate is set out below. The property produces a Freehold current rental income of £464,390.25 per annum. The industrial areas are let at a total rent of £404,390.25 per annum which reflects just £1.37 per sq ft on let areas.

Rent ERV Schedule Comments Lease Break Lease Rent Rent ERV Inside Unit Tenant Area (per (£ per of Start Clause Expiry (£ p.a) Review £ p.a. Act sq ft) sq ft) Condition • Detached office building in need of upgrading • Fronts Upper Fforest Way so good D Vacant 35,794 sq ft ------£178,970 £5.00 - - prominence • On a site of 2.5 acres • Offers redevelopment potential with significant offers already received • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) 96,991 sq ft £242,477.50 • Mezzanine floor used as offices Electrical £193,982 £2.00 E 6,118 sq ft 29.9.16 29.9.26 28.9.31 5 yearly £5,000 £2.50 Ye s Ye s • Rent at 5th year review capped at Carbon Ltd £5,000 £0.82 (Mezzanine) (Mezzanine) £2.50 per sq ft (MECL) • 6 months rent free from lease commencement • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) Electrical • Rolling 3 month break after 6 months F 15,207 sq ft 29.9.16 29.12.16 28.9.19 £11,405.25 £0.75 No £49,422.75 £3.25 No Ye s Carbon Ltd • Agreed tenant works on lease expiry (MECL) • 6 months rent free from lease commencement • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) • Rolling 3 month break after 6 months Electrical G 116,004 sq ft 29.9.16 29.12.16 28.9.19 £87,003 £0.75 No £290,010 £2.50 No Ye s • Agreed tenant works on lease expiry Carbon Ltd • Includes 5,000 sq ft offices (MECL) • 6 months rent free from rent commencement • Years 1 & 2 - £80,000 per annum • 3 months rent free Something • Landlord undertaking £75,000 works Different to building H 61,011 sq ft 10 years 5 years £107,000 £1.75 5 yearly £152,527.50 £2.50 Ye s Ye s Wholesale • Tenant already in occupation on the Ltd basis of a previous agreement. New lease on the terms set out in the tenancy schedule is in solicitors hands.

Security • Self-contained with toilet facilities Vacant 850 sq ft ------• Will be vacated once 24 hour Hut security is removed

Morganite • Occupied by licence • MECL will demolish when fully Electrical RMPU - Licence Rolling - £0 £0 - No No vacated Carbon Ltd • Land remaining will be outside their (MECL) demise 331,975 sq ft £404,390.25 £918,407.75

OPEN Tenant Area Lease Break Lease Rent Rent Rent ERV ERV Inside Schedule Comments LAND Start Clause Expiry (£ p.a) (per Review £ p.a. (£ per Act of sq ft) sq ft) Condition

• Break option is mutual – 6 months notice Palmer & • Parking of cars, maximum of 10 Harvey HGVs and 3 trailers Yard 1 0.34 acre 28.7.16 28.1.19 27.7.21 £20,000 - - £20,000 No Ye s McLane • Power has been installed to this part Limited of the site • £2,000 per annum contribution to Service Charge • Rolling mutual break after 6 months – 3 months notice • Parking of 50 cars Car DVLA 0.4 acre 5.5.16 5.11.16 4.11.16 £15,000 - - £15,000 No Ye s • £1,000 per annum contribution to Park 2 Service Charge • Tenant has enquired about more car parking spaces 0.74 acre £35,000

In addition to the above there is an option agreement for land to the rear of the site which will offer the following:

OPEN Tenant Area Lease Break Lease Rent Rent Rent ERV ERV Inside Schedule Comments LAND Start Clause Expiry (£ p.a) (per Review £ p.a. (£ per Act of sq ft) sq ft) Condition

• In solicitors hands • Power generation UK 5 yearly • Rent reviews linked to CPI Capacity • First 3 years at half rent (£12,500 per Yard 2 0.95 acre 25 years 20 years £25,000 - CPI £25,000 Ye s No Reserve linked annum) to allow for construction and Limited reviews taken site as seen • Landlord £10,000 contribution to clearance works

TOTAL RENT £464,390.25 £978,407.75 The vendor will top up any current rent free incentives Covenant Profile Morganite Electrical Carbon Ltd P&H (Guarantee from Morgan Advanced Materials Plc ) Palmer and Harvey is the UK’s number 1 premier Morgan Advanced Materials is a global engineering company with a focus wholesaler, with an annual turnover of more than on material science and manufacturing expertise within the electronics, £4billion, serving multiple, convenience, forecourt and CTN retail outlets. energy, healthcare, industrial, petrochemical, security and transport sectors. Their industry-leading delivery network of 15 regional depots serves c.90,000 UK retail outlets and places Palmer and Harvey within two Global sales for 2015 were in excess of £911.8 million and they employ hours of each and every customer. A diverse fleet of over 1,300 vehicles circa 8,500 employees, manufacture in over 30 countries and sell into over makes more than 55,000 deliveries every week, in every UK postcode. 100 countries. Dun & Bradstreet rating of 5A1 and showed the following published Dun & Bradstreet rating of N1 and showed the following published accounts for the last three years. accounts for the last three years. Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Non Non Non Consolidated Consolidated Consolidated Consolidated Consolidated Consolidated GBP GBP GBP GBP GBP GBP 31 Dec 2015 31 Dec 2014 31 Dec 2013 04 Apr 2015 05 Apr 2014 06 Apr 2013 (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) Sales Turnover 911,800 921,700 957,800 Sales Turnover 4,430,400 4,175,091 4,170,703 Profit / (Loss) Before Taxes 59,000 31,500 64,000 Profit / (Loss) Before Taxes 3,400 14,564 12,927 Tangible Net Worth (80,000) (84,100) (11,400) Tangible Net Worth 118,100 114,532 153,268 Net Current Assets (Liabilities) 151,300 143,200 132,800 Net Current Assets (Liabilities) 107,900 107,180 113,689

For further information please see website: For further information please see website: www.morganadvancedmaterials.com www.palmerharvey.co.uk

Something Different UK Capacity Reserve Limited UK gift wholesaler, importer and trade supplier of UK Capacity Reserve was founded in 2014 and is a subsidiary of UK gifts, wholesale jewellery, novelty giftware and alternative gifts Power Reserve, the power company which works on demand side Dun & Bradstreet rating of 1A2 and showed the following published response. UK Capacity Reserve builds up power reserves which can be accounts for the last three years. sold into the national grid at peak times.

Fiscal Fiscal Fiscal Dun & Bradstreet rating of H3 and showed the following published Non Non Non Consolidated Consolidated Consolidated accounts for last year. GBP GBP GBP 31 Dec 2014 31 Dec 2013 31 Dec 2012 Fiscal Non Consolidated Tangible Net Worth 1,013,201 602,041 492,681 GBP Net Current Assets (Liabilities) 1,179,905 747,519 613,197 31 Mar 2015 Profit / (Loss) Before Taxes 1,988 For further information please see website: Tangible Net Worth 2,088 www.somethingdifferentwholesale.co.uk Net Current Assets (Liabilities) (142,671)

For further information please see website: DVLA www.ukpowerreserve.com The Driver and Vehicle Licensing Agency is the organisation of the UK government responsible for maintaining a database of drivers in Great Britain and a database of vehicles for the entire United Kingdom. For further information please see website: www.gov.uk/government/organisations/driver-and-vehicle-licensing-agency Unit D Investment Considerations • Freehold.

• Swansea is the second largest city in Wales and the administrative and commercial centre for West Wales.

• Located in the prime industrial and commercial area in Swansea.

• Well connected with good access to the M4.

• Significant asset management and development opportunities.

• Secure income on part to the strong, well established Morgan Electrical Carbon Ltd.

• Remaining industrial areas are let on short leases and significantly under rented.

• Opportunity for further sub-division which could further drive the rental tone.

Service Charge • Vacant offices and surplus land offer further Morganite Trading Estate benefits from a comprehensive service development potential for a variety of alternative uses. charge covering maintenance and repair as well as insurance which is separately accounted for. A copy of the budget is available on request. • Premier Inn, Brewers Fayre, a small retail development and an Asda supermarket adjacent. EPC EPC’s are available on request. • Passing rent of £464,390.25 per annum with an ERV of £978,407.75 per annum. VAT The property is elected for VAT purposes and therefore it is • Quoting £5,250,000 which reflects an attractive anticipated that the sale will be treated as a transfer of a going Net Initial Yield of 8.30% and a low Capital Value of concern. £15.81 per sq ft.

• High Reversionary Yield of 17.48%. Proposal Offers are sought in excess of £5.25 million (Five Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects an attractive Net Initial Yield of 8.30% and a Low Capital Value of £15.81 per sq. ft., subject to purchasers costs of 6.8% and a high reversionary yield of 17.48% after the letting of any vacant space, based on our Estimated Rental Value.

M4

J44

A48 M4

Valley Way

Upper Fforest Way

A48

Morganite Trading Estate

A4067

A4067

Further Information For further information or to arrange a viewing please contact Knight Frank: 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 Rob Jones | Tel: 029 2044 0128 LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the [email protected] property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, Gareth Lloyd | Tel: 029 2044 0141 measurements and distances given are approximate only. [email protected] 3. 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. Neil Francis | Tel: 029 2044 0147 4. VAT: The VAT position relating to the property may change without notice. [email protected] Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. October 2016 Design by Martin Hopkins Partnership, Cardiff. Tel: 029 2046 1233 www.martinhopkins.co.uk

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