BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I I WV1 2QP

Freehold Industrial Investment with Development Potential BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

INVESTMENT SUMMARY QUALCAST ROAD

• The property comprises an industrial complex containing 8 buildings, extending to a total of 176,478 sq ft. ROYAL MAIL • Site area of 8.35 acres (3.38 hectares). • Let to British Steel Ltd for 15 years from 25/12/2018 at an initial rent of £573,665 per annum reflecting £3.25 per sq ft overall.

• Additional security provided by £2m CANALSIDE QUARTER Rent Deposit deed. DEVELOPMENT • The lease contains a rolling Landlord only break option on 18 months’ notice.

• High underlying residential site value with planning permission for 141 unit residential development anticipated.

• Situated adjacent to the proposed Canalside Quarter residential district, a joint GRAND STATION venture between City of Wolverhampton Council and Canal & River Trust.

• Potential to refurbish and reconfigure the existing industrial accommodation to provide a multi-let complex with an PREMIER INN A454 estimated Market rental Value of £530,000 HORSELEY FIELDS per annum reflecting £3.00 per sq ft.

• We are instructed to seek offers in excess of £6,150,000 reflecting a Net Initial Yield of 8.75%, based on purchaser’s costs of 6.63%. A purchase at this level reflects WOLVERHAMPTON £736,527 per acre. RAIL STATION BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

MOLINEUX CITY i10 MIXED USE WOLVERHAMPTON WOLVERHAMPTON CANALSIDE QUARTER BRITISH STEEL CAMPUS CENTRE SCHEME BUS STATION RAIL STATION DEVELOPMENT

TO

A4150 A454 A454 LOWER HORSELEY FIELDS HORSELEY FIELDS

TO BIRMINGHAM BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

BURTON STAFFORD UPON TRENT LOCATION A518 A513 A515

NEWPORT Wolverhampton is the only city within network that runs between the City M6 A51 of Wolverhampton and Birmingham, A34 the highly urban and densely populated A38 Black Country metropolitan area and is providing a direct connection to the bus A460 an important focus for growth. 1.73 million and railway stations. people live within a thirty minute drive time, Wolverhampton holds key competitive CANNOCK which also covers affluent locations beyond A41 A449 LICHFIELD advantages, including immediate access TELFORD the city in and . to a population of 3 million people, quick A34 M54 The number of people within the city’s travel times to Birmingham, Manchester and TAMWORTH A442 catchment is growing. Together with the London and more competitive commercial M6 A5 M6 A461 major improvements to the city’s strategic rents than anywhere else in the region. WOLVERHAMPTON TOLL transportation infrastructure, it will Some of the city centre’s key investments WALSALL become even more substantial. two successful new office buildings at A454 M42 A458 A34 The city benefits from excellent road the Interchange, with a third building in A4123 A38 A452 communications with easy access to the the pipeline, a £35m investment into BRIDGNORTH A449 M6, M5 and M54 motorways. Junction 10 retail enhancements at the Mander WEST M42 BROMWICH of the M6 is approximately 5 miles east Centre and £250m investment at M6 of Wolverhampton, Junctions 1 and 2 of Wolverhampton University. A458 A449 the M54 are approximately 5 miles and BIRMINGHAM Major out-of-town investments include A442 M6 4 miles north respectively. Birmingham STOURBRIDGE the i54 strategic employment site located Airport is approximately 20 miles south A45 to the north of the city centre is the UK’s A38 east of Wolverhampton and East M5 A34 most successful Enterprise Zone. It is home A41 Midlands Airport is approximately 40 miles A441 to Jaguar Land Rover alongside other A456 COVENTRY to the north east. major businesses. JLR’s £1bn investment KIDDERMINSTER A435 Wolverhampton has a mainline rail station in the company’s global engine plant at A448 PROJECTED TO GROW with frequent services to London Euston i54 is creating over 1,400 jobs and several M42 A46 via Birmingham New Street, Birmingham hundreds more in supply chain activities. A456 2-3% FASTER M40THAN THE NATIONAL AVERAGE International, and Coventry. The city centre is also home to the OVER THE NEXT 10 YEARS The City also has a direct metro link to successful Wolverhampton Wanderers A449 SECTOR SPECIALISTS IN Birmingham city centre and benefits from Football Club which plans to expand the a regular bus service. The first phase of Molineux stadium, increasing capacity AUTOMOTIVE the Midland Metro Wolverhampton city to 46,000 over the next 5 years. & AEROSPACE H INDUSTRIES centre extension opens during 2019. 5T JAGUAR LAND ROVER, This will link with the existing Metro MOOG AND UTC AEROSPACE BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

SITUATION CANALSIDE QUARTER

The site is situated adjacent to the proposed Canalside Qualcast Road is approximately 1 mile east of The Canalside Quarter is a 10 acre residential led development Quarter residential district, a joint venture between City Wolverhampton city centre, situated off of the A454 being brought forward by the Canal and River Trust (CRT) and of Wolverhampton Council and Canal & River Trust. Lower Horseley Fields A454, which acts as one the main the City of Wolverhampton Council (CWC). The scheme will incorporate city centre living and a arterial routes into Wolverhampton city centre from the M6 The area is set to provide both desirable city centre living and destination for visitors with shops, walkways, cycle paths Motorway to the east. a destination for visitors with shops, walkways, cycle paths and and leisure facilities. leisure facilities. The Canalside Quarter is expected to grow to in excess of 600 new homes as it establishes itself as a residential and leisure area for the city. There may be potential to work with A454 CRT and CWC to integrate and improve communications between the two sites. LOWER HORSELEY FIELDS

CANALSIDE QUARTER DEVELOPMENT

BRITISH STEEL

QUALCAST ROAD BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

DESCRIPTION SITE

The property comprises an industrial complex containing The site extends to 3.38 hectares (8.35 acres). 8 buildings, extending to a total of 176,478 sq ft. The main warehouse comprises an operational steel works formed of multiple bays, with eaves height ranging between 5m and 9.5m and gantry cranes which range from 6 to 10 tonnes capacity. The building also incorporates single storey administration and welfare accommodation, as well as WC’s, offices and staff rooms. In addition to the main warehouse, there are a number of low rise outbuildings of varying ages and quality. Other buildings include a single storey block incorporating a canteen and changing facilities and a small medical building situated to the south western corner of the site. Neighbouring the medical building is a single storey brick built office block. Externally, there are two main concrete surfaced yards either side of the main warehouse which are linked via a tarmac surfaced service road. To the entrance of the site, there is a weighbridge adjacent to the gatehouse whilst access to the site is via a barrier system off Qualcast Road.

ACCOMMODATION

Description Sq m Sq ft Main Warehouse 25,185.52 163,455 Ancillary / Outbuildings 780.51 8,401 Office Block 429.40 4,622 Total 16,395.43 176,478 BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

TENANCY RESIDENTIAL DEVELOPMENT

The property is let in its entirety on a Full Repairing and Insuring lease limited by The vendor has submitted a planning application (No.18/01445/OUT) for the development of 141 residential a Schedule of Condition to British Steel Ltd for a term of 15 years from 25th December units. A favourable decision is expected. 2018. The initial rent is £573,665 per annum, reflecting £3.26 per sq ft overall. The City of Wolverhampton Council have reviewed affordable obligations of the proposed development under The lease contains a rolling landlord only break option, exercisable on 18 months Section 106 of the Town and Country Planning Act 1990, and concluded that the proposed development prior written notice. would not be required to conform to policy levels of Section 106 and affordable housing obligations which would be deferred for a period of 3 years from May 2019. The terms of the Section 106 agreement are The lease is subject to 5 yearly rent reviews to the higher of Open Market Rental

currently under negotiation. Further information is available on the data room. The copyright of this drawing is vested with Corstorphine + Wright Ltd and must not be copied or reproduced without the consent of the company.

Value or RPI with a collar at 1% and 4% per annum compounded. Figured dimensions only to be taken from this drawing. DO NOT SCALE. All contractors must visit the site and be responsible for checking all setting out dimensions and notifying the architect of any discrepancies prior to any manufacture or construction work. NORTH NOTES: Additional security is provided by a £2m rent deposit deed. Scale Bar 5 20 40 141 141 140 0 10 30 50 141 139 138 J J 141 140 SCHEDULE OF ACCOMMODATION Copies of the lease, schedule of condition and rent deposit deed are available 139 137 Area(sqft) N° Total Area (m²) J 140 136 139 Apartments: 3 Storey J 135 138 AP1 - 1bed Apartments 485 12 5,820 in the data room. 137 134 AP2 - 2bed Apartments 670 18 12,060 G 138 133 137 136 G 135 132 Houses: G 136 A - 2 bed, 2 storey 635 10 6,350 131 135 134 G 130 133 B - 2 bed, 2 storey 675 6 4,050 G C - 2 bed fog 705 2 1,410 129 134 G 133 132 D - 3 bed, 2 storey 700 8 5,600 131 128 39 K E - 3 bed, 2 storey G 40 840 14 11,760 132 131 130 G F - 3 bed, 2 storey 1000 8 8,000 39 129 A 127 40 G - 3 bed, 2.5 storey 1200 17 20,400 C A J 39 130 H - 3 bed, 3 storey 1220 17 20,740 J 129 128 42 41 TENANT COVENANT 126 43 J - 4 bed, 2.5 storey 44 40 1240 22 27,280 127 A 42 41 K - 4 bed, 3 storey 1260 7 8,820 125 128 43 J 45 A 44 127 46 A B J 45 43 38 124 126 Grand Total: 141 132,290 46 B 125 E 44 F 126 38 37 J 45 37 B 123 125 37 38 36 J 46 36 British Steel Ltd (Company Reg No. 09438207) 36 47 122 124 F B KEY 123 48 33 47 33 34 124 35 121 47 34 B G E 35 123 104 E 35 49 Site Boundary - Site Area 3.4hectares 120 G 105 103 34 122 48 B 104 E 32 121 105 48 103 33 119 106 British Steel entered insolvency on 22nd May 2019. 104 49 122 31 G 121 105 J Developable Area - 2.9hectares 50 F 118 49 G 106 50 120 50 E J 102 F 117 119 107 J 51 The Government’s Official Receiver has taken control of the 103 101 120 108 E 102 32 106 32 G 119 Proposed new tree 107 31 102 101 E J 31 G 108 118 116 51 117 D 107 109 52 52 51 company as part of the liquidation process and are working 118 115 J D 101 F 117 99 52 Existing tree 109 108 115 K 116 115 K 98 100 109 D 100 . 116 with Ernst & Young to identify a buyer F 114 97 D 116 100 96 D 99 1 - 30 98 113 99 K 114 95 53 G 97 113 98 54 114 53 53 112 G 113 D 97 54 K G Existing Gas Main 94 D E 93 96 112 83 94 111 95 96 54 111 82 93 E 55 112 82 94 83 95 111 110 55 56 POS 93 E 94 D A 55 56 110 E 92 A 110 J 91 F A 83 92 93 79 91 79 56 J C 82 57 92 81 80 81 J 57 92 91 57 58 80 62 Pumping 78 58 Station A 61 J 90 77 61 A 59 89 60 91 90 78 59 58 77 79 89 60 62 59 90 E 78 63 J V 63 89 60 90 F V 64 H ENVIRONMENTAL 64 61 J 88 77 V 75 65 H 87 75 65 62 89 88 H 02: 02.01.19 Plots backing onto western boundary amended. (LL) 76 75 66 74 66 63 87 01: 14.11.18 Pumping station added along southern boundary. (LL) 88 67 H 76 74 64 E 73 67 H REV DATE NOTES CHK 88 76 73 68 65 Client 72 68 H 86 E 72 69 66 69 85 H ANTLER PROPERTY 87 86 70 67 A Phase 1 Environmental Survey report, carried out by Ground Condition Consultants 70 H 85 68 71 Project J 71 H 86 69 H QUALCAST LANE, WOLVERHAMPTON K 70 (GCC), dated February 2018, is available to view on the data room. 84 H 85 71 84 H 72 Drawing Title H 73 84 H PROPOSED SITE PLAN 74 H The vendor has recently instructed GCC to carry out Phase 2 of the Environmental 75 H Drawn Checked Paper Size Scale Date H PJP LL A1 1:500 JUNE 2018 Public Footpath

Project No. Drawing No. Revision K Survey. The results of the Survey are expected to be received in June 2019. 17507 0301 02

Warwick London Birmingham Manchester Leeds Canterbury Glasgow Dublin The Old Library Hagley Road Stourbridge DY8 1QH Tel. 01384 909850 www.corstorphine-wright.com BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

0-3 YEARS BROWNFIELD LAND & PROPERTY (2017-2020) DEVELOPMENT FUND 3-6 YEARS (2020-2023) The Combined Authority (WMCA) Brownfield 0-6 YEARS (2017-2023) Land & Property Development Fund (BLPDF) enables the unlocking of sites, remediates the industrial legacy and brings 6-10 YEARS (2023-2027) forward investable propositions. The aim of the BLPDF is to regenerate brownfield sites across the WMCA’s geography which extends to Greater Birmingham and Solihull, the Black Country, Coventry and . As the site of the subject property falls within the areas identified for regeneration by the WMCA, funding for remediation of the land could be secured from the BLPDF, subject to application.

CITY OF BRITISH WOLVERHAMPTON STEEL RAILWAY STATION REGENERATION PROGRAMME ART CIVIC HALL GALLERY There is in excess of £1 billion of public and private sector investment already on-site or earmarked for the city centre, demonstrating growing confidence in the city.

TheThe City City Centre Centre Retail andRetail Leisure and Core Leisure Core

TheThe Royal Royal and Stand George’s St George’s MANDER CENTRE CITY LEARNING MolineuxMolineux Campus Campus QUARTER

Springfield Campus

CanalsideCanalside Quarter South

InterchangeInterchange and Commercial and Commercial Gateway Gateway

ConnectedConnected Places Places Strategy Strategy Links Links

PotentialPotential Public Public Space Space BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

PROPOSED DEVELOPMENTS INCLUDE: i9 A £13m, 50,000 sq ft office led development adjacent to the successful multi-award winning i10 mixed-use development, currently being built by Ion Developments and due for completion during 2019. Brewers Yard A £250m development including 1,100 city houses and apartments, and 60,000 sq ft of new retail and commercial space. The development is being brought forward by Court Collaboration, West Midlands Combined Authority and Wolverhampton Council. Works are due to start on site in 2020. Stafford Street A 883 bed student development being brought forward by Cassidy and due for completion in August 2020. Molineux Stadium Wolverhampton Wanderers F.C. are working on proposals to redevelop the Molineux Stadium and increase its capacity to circa 46,000 in two phased development during the next 5 years.

Further details of wider development projects are available within the Invest Wolverhampton prospectus http://www.investwolverhampton.com/invest/ investment-opportunities/prospectus/Invest%20 Wolverhampton%20Prospectus.pdf i9 Development BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential

TENURE CONTACTS

Freehold. A copy of the report Jonathan Devaney on title is available for review 0121 233 6490 on the data room. [email protected] Christopher Howe EPC 0121 234 0338 [email protected] The property has an EPC Will Jordan rating of E (124). 0121 233 6413 [email protected] A copy of the Energy Performance Certificate (EPC) Jack Jones is available in the data room. 0121 233 6420 [email protected] VAT Knight Frank LLP 1 Colmore Row The property is elected for Birmingham VAT. We would anticipate B3 2BJ that the transaction will be treated as a Transfer of Going Concern (TOGC).

PROPOSAL KnightFrank.co.uk

We are instructed to seek IMPORTANT NOTICE. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by offers in excess of £6,150,000 Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition reflection a Net Initial Yield or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information of 8.75%, based on purchaser’s given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of costs of 6.63%. A purchase the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations at this level reflects £736,527 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 per acre. 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. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. June 2019. carve-design.co.uk 14106.