20 Year Forward Commitment Industrial Investment Opportunity

GeoPost UK Limited Network 46, Camp Road, Swinderby, Lincoln LN6 9BJ INVESTMENT SUMMARY ▶ Practical Completion is due in April 2016 ▶ A new purpose built distribution warehouse ▶ Pre-let to GeoPost UK Limited (D&B 5A1 rating) on a new 20 year FRI lease with integrated office accommodation in an ▶ Freehold established commercial location ▶ A target rent of £352,600 per annum We have been instructed to seek offers in reflecting £8.20 per sq ft ▶ Located in Swinderby on the A46, 7 miles to excess of £5,550,000 for the freehold interest, the east of the A1 at Newark-on-Trent ▶ Upward only five yearly rent reviews subject to contract and exclusive of VAT. ▶ The completed development will have throughout the term A purchase at this level would reflect a a target area of 43,000 sq ft of high net initial yield of 6.00% assuming usual ▶ Site area of 4.07 acres (1.65 hectares) specification industrial accommodation purchaser’s costs of 5.80% based on a site providing an extremely low site cover of with two storey offices purchase followed by a balancing payment on 24% Practical Completion. M18 BARNSLEY M180 4 DONCASTER 8 ROBIN HOOD

M1 > A15 N N N ROTHERHAM ^ ^ ^ M18 A1(M) NCOLN MARKET LI SWINDERBY TO RASEN SHEFFIELD 34 GAINSBOROUGH A1(M) 1531 ROAD M YORK HA LEEDS HULL NG A46 6 LLI 4 CO A M62 30 WORKSOP WITHAM A57 CAMP RO ST HUGHS M180 BUSINESS LIVERPOOL N-TRENT PARK MANCHESTER CHESTERFIELD A1 LINCOLN SWINDERBY 29 SHEFFIELD INDUSTRIAL A ESTATE D SWINDERBY A15 SWINDERBY < TO NEWARK-O A1(M) MANSFIELD D GEOPOST A O R M6 NOTTINGHAM UK LTD K S M1 R N A NEWARK I A17 M KING’S LYNN W -ON-TRENT WITHAM LEICESTER 60 E Network 46 BIRMINGHAM N ST HUGHS PETERBOROUGH A46 NORWICH BOSTON GLOUCESTER M6 S IN M 0 NOTTINGHAM 12 DERBY M5 M40 25 M11 M1 SAT NAV: LN6 9BJ IPSWICH A1(M) EAST 3 FELIXSTOWE A1 MIDLANDS FOR INDICATIVE PURPOSES ONLY E OXFORD MELTON LAN MOOR M25 MOWBRAY S To Peterborough IN SPALDING M and Cambridge 180 LOUGHBOROUGH v

LOCATION HILSEA SITUATION The property sits in an established commercial location in UK’s pure freight and circa 30% of the UKs pure mail with up The GeoPost site sits along the northern boundary of Network Swinderby, on the A46, 7 miles to the east of to 310,000 tonnes of cargo per year operating flights 24hrs 46 situated off Camp Road, half a mile south of the A46. Its the A1 trunk road. The property is located adjacent and to a day. close proximity to the A46 allows easy access to Lincoln 8 the south of the A46, 8 miles to the north east of Newark-on- miles to the north east and Newark-on-Trent 8 miles to the Swinderby’s relatively central UK location and strong Trent and 8 miles to the south west of Lincoln. The A46 is a south west. transport links have been attractive to occupiers such as major trunk road running east-west providing quick access to Danwood, UK Mail, Turbine Efficiency, James Dawson and Witham St Hughs Business Park is located to the east of Lincoln and Grimsby to the east and the A1, Nottingham, the Wirtgen. Occupiers have also been attracted by the close Camp Road providing a mix of office, industrial and storage M1 and the national motorway network to the west. Newark- proximity of a large workforce. accommodation attracting a range of local and national on-Trent and Lincoln are key commercial centres within the occupiers including Cargill, Frontier and Game. providing a ready source of employment. NETWORK 46 Witham St Hughs, a residential area to the east benefits Newark North Gate train station, 8 miles to the west, The GeoPost development forms part of Network 46, a 73 from local amenities including a school, a supermarket and provides direct services to London Kings Cross in a journey acre business park which is capable of delivering design and restaurants. Swinderby is situated adjacent to and north of time of 1 hour 25 minutes, Nottingham in 48 minutes and build commercial opportunities of up to 630,000 sq ft. the A46. Peterborough in 27 minutes. The property is also adjacent to the Swinderby Industrial East Midlands Airport, 40 miles to the south west, is the UK’s Estate, a modern 2006 built industrial estate comprising five second busiest airport for freight traffic, behind Heathrow, industrial units totalling 18,166 sq m (195,539 sq ft). The and is a major cargo hub for companies such as DHL, TNT estate is fully let with occupiers including Danwood, Turbine and the Royal Mail. The airport handles circa 40% of the Efficiency Limited and UK Mail Limited. DESCRIPTION Once completed the unit will comprise a high specification, steel portal frame distribution facility with ancillary offices. The tenant, GeoPost UK Ltd, will use the building as a parcel delivery and customer collection centre. It will benefit from the following specification:

Warehouse External • Steel portal frame • 30 level entry loading doors 3.8m high • Floor loading capacity of 30KN/m2 • 2 level entry doors 5.4m high • Clear working height of 6m to underside • 4 dock level loading doors of haunch • 10 HGV parking spaces • T5 lighting • 63 van parking spaces • 15% roof lights • 90 car parking spaces • A 3m canopy over the dock loading • Cycle racks and shelters area with a minimum clear height of • Fuel tank 5.53 m • CCTV • Gas fired continuous radiant heating • External lighting PROPOSED DEMISE BOUNDARY FOR INDICATIVE PURPOSES ONLY system • Landscaping Office On expiry of the lease the tenant will be • Two storey office accommodation over required to reinstate a number of items Proposed Part South Eastern Elevation ground and first floors including the data wiring and access • Suspended ceilings with LG 7 lighting control, fuel tank and pump set and • Comfort cooling and heating system vehicle wash equipment as evidenced in • High quality WCs, showers and locker the Licence to alter. Further information is rooms with disabled facilities available upon request. • 3 phase power supply On completion the purchaser will be • Fire alarm system furnished with assignable warranties from the main contractor; architect and structural engineer. Proposed Part North Eastern Elevation

SITE AREA TENURE The site comprises 4.07 acres (1.65 Freehold. hectares) providing an extremely low site cover of 24%. ACCOMMODATION The Notional rent at review shall be the product of (A x B) x In 2014 DPD Group delivered more than 864 million parcels Accommodation Area (m sq) Area (sq ft) C where: across 230 countries. The company intends to grow its share Warehouse 3,417 36,780 in home delivery via its interactive technology, Predict, and A is the market rent per sq ft of the Notional Premises. Two Storey Office 578 6,220 its Pickup branded parcel shop network. This has led to B is the GIA of the premises expansion in multiple purpose built distribution warehouse Total 3,995 43,000 C is a multiplier of 1.62 facilities across the UK.

TENANCY The review is based on a hypothetical term of 10 years and GeoPost UK Ltd has a Dun and Bradstreet rating of 5A1, the rent review specification assumes the building is equal representing a minimum risk of business failure. The last three The property will be let in its entirety to GeoPost UK Ltd in size, age and quality as the subject property and includes financial accounts are summarised below: (DPDGroup Ltd) on a new 20 year, full repairing and insuring 10% office accommodation, 8m eaves, 4 level access doors lease, with five yearly upward only rent reviews. and occupying a 45% site cover. Fiscal Fiscal Fiscal Non-consolidated Non-consolidated Non-consolidated The target rent will be £352,600 per annum based on the GIA GBP (000’s) GBP (000’s) GBP (000’s) of the building being 43,000 sq ft multiplied by £8.20 per sq ft. TENANT COVENANT 29 Dec 2013 30 Dec 2012 01 Jan 2012 GeoPost UK Ltd (No. 732993) is a parcel delivery company The five yearly upwards only rent reviews are to be to the Sales Turnover 492,252 396,592 328,738 which is wholly owned by La Poste, the second largest courier higher of: Profit / (Loss) 90,058 52,925 52,570 company in Europe. In March 2015 La Poste announced Before Taxes i) the rent immediately before the rent review date GeoPost, and its subsidiaries in the UK, will be rebranding as Tangible Net Worth 55,257 62,901 55,463 ii) the market rent for the premises on the review date DPD Group to help accelerate its growth internationally. iii) the Notional Rent (as the case may be) on the review date.

Witham St Hughs Business Park

Witham St Hughs

Swinderby Industrial Estate

GeoPost Network 46 MARKET COMMENTARY

Occupational The Midlands occupational market generally benefits from a limited supply of available accommodation and an improved occupier confidence and growth. Swinderby Industrial Estate and Witham St Hughs Business Park have both been the beneficiaries of this market dynamic and are fully let having experienced limited void periods. Across the wider Lincolnshire region limited supply of industrial land also exists which has created an attractive number of recent enquiries for Network 46. Recent letting evidence can be seen in the following lettings at Swinderby Industrial Estate:

Unit Tenant Area (sq ft) Term Lease Start Lease Expiry Break Option Rent (pa) Rent (psf)

Unit 4, Swinderby Industrial Estate Turbine Efficiency Group Limited 20,338 5 years Dec-14 Dec-19 - £120,000 £5.90

Unit 5, Swinderby Industrial Estate UK Mail Ltd 10,073 5 years Jul-14 Jul-17 Jul-15 £55,000 £5.46

Investment In a market characterised by limited supply and considerable demand, 2015 has seen further improved pricing for industrial stock particularly prime assets let to strong covenants on long lease terms. The investment market has continued to improve primarily as a result of the general improved occupational market conditions, referred to above, providing investors with further confidence of rental growth in the short/ medium term. Prime 20 year industrial investment stock is generating yield profiles of circa 5.00-5.25% as demonstrated by the recent Euro Car Parts, Birch Coppice and Smurfit Kappa, Markham Vale investment sales.

Date Address Building Summary Tenant Price (£m) Net Initial Yield Comments

Sept-15 GeoPost Stonebridge Industrial Estate, Liverpool * 69,197 sq ft GeoPost UK Ltd £8.83 c.5.00% Under Offer * 25 years to expiry * £467,080 pax (£6.75psf)

Sept-15 GeoPost Stoke, Stoke-on-Trent * 59,925 sq ft GeoPost UK Ltd £8.00 c.5.00% Under Offer * 25 years to expiry * £446,411 pax (£7.45psf)

Aug-15 Markham Vale, Chesterfield * 100,250 sq ft Smurfit Kappa £8.83 5.00% Purchased by Aviva * 20 years to expiry * £467,165 pax (£4.66psf)

Aug-15 Markham Vale, Chesterfield * 52,734 sq ft Gould Alloys £5.13 5.80% Purchased by Aviva * 20 years to expiry * £315,000 pax (£5.97psf)

Jul-15 Orion Park, Dagenham * 65,746 sq ft GeoPost UK Ltd £17.14 4.17% Purchased by Eyre Estate * 25 years to expiry * £756,079 pax (£11.50psf)

Jun-15 Sky Park, Exeter * 59,869 sq ft GeoPost UK Ltd £8.73 5.30% Purchased by Eyre Estate * 25 years to expiry * £489,389 pax (£8.10psf) DEVELOPMENT TIMETABLE Construction programme begins: September 2015 Anticipated Practical Completion: April 2016

PLANNING SUMMARY The adopted local plan is the Adopted Local Plan 2007. This allocates the Network 46 Business Park under the terms of policy E1 as Employment land for business, industry and warehousing.

Planning consent for the development was granted by North Kesteven District Council on 18th May 2015. Further information is available on request.

VENDOR SUMMARY / THE DEVELOPER The development will be undertaken by the LPA Receiver in partnership with Graftongate, the Development Manager.

Graftongate is a privately owned property development and investment company focussed on the business space markets, working in partnership with occupiers, landowners and investors. Formed in 2000 CGI Indictative site layout with offices in London and Birmingham, Graftongate has a strong track record in planning, pre-letting and speculative development, totalling over 7 million sq ft of new space. Notable pre-let buildings delivered for major corporate occupiers include: Amazon; Beiersdorf; Bentley; Co-op; Costco; IKEA; John Lewis; Parcelnet.

Please note that due to the nature of the Vendor, limited warranties or representations can be provided with regards to any information contained within this marketing material and purchasers should therefore satisfy themselves in this regard. Further detail is available on request. PROPOSAL EPC We have been instructed to seek offers in excess of £5,550,000 for the freehold, subject to The Developer will ensure an Energy Performance Certificate with a contract and exclusive of VAT. minimum rating of C is provided. A purchase at this level would reflect a net initial yield of 6.00% assuming usual purchaser’s VAT/TOGC costs of 5.80% based on a site purchase followed by a balacing payment on Practical Completion. We understand the Vendor has waived the election to tax and therefore VAT is applicable to the purchase. The property is capable of being sold as a TOGC. Further Information

Charles Howard Tom Coaker James Bladon [email protected] [email protected] [email protected] 020 3296 2098 020 3296 2163 0121 697 7258 07810 631 409 07894 814 327 07789 398 061

One Curzon Street One Curzon Street 1 Colmore Square London W1J 5HD London W1J 5HD Birmingham B4 6AJ

MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in September 2015 Brochure by Mango 020 7060 4142