Rockingham POINT Poplar Way West, , , BS11 0YW

PRIME RPI LINKED LONG INCOME INVESTMENT INVESTMENT SUMMARY

• An opportunity to purchase a freehold industrial • New 20 year lease without break options at a rent of investment that provides long, secure RPI linked income. £2,300,000 per annum.

• Situated on Bristol’s Cabot Park, one of the South West’s • 5 yearly rent reviews linked to RPI with a collar & cap of PROPOSAL prime distribution parks, located 1.5 miles from Junction 1.00% - 3.00% per annum compounded. We are instructed to seek offers of £50,700,000 18 of the M5. (Fifty Million Seven Hundred Thousand • Ideally suited to the tenant’s operation providing secure Pounds) reflecting anet initial yield of 4.25% • Cabot Park is a modern distribution park extending to vehicle storage, a vehicle workshop and situated within assuming purchasers costs of 6.80%. 370 acres and home to many well-known occupiers close proximity to the car importation operations at including Amazon, The Co-Operative, Muller, Avonmouth and Royal Dock. Avon & Police and John Lewis. • Whilst the investment offers a secure index linked income • Rockingham Point comprises a distribution unit of stream for 20 years, upon regaining possession the 56,948 sq ft situated on a site of 63.41 acres property can be further developed for industrial and distribution uses. • The property is let to British Car Auctions Limited with a guarantee from BCA Trading Limited with D&B ratings of 5A2 and 5A1 respectively.

Poplar Way West, Avonmouth, Bristol, BS11 0YW 02 SHREWSBURY LEICESTER PETERBOROUGH

BIRMINGHAM ABERYSTWYTH LUDLOW

CAMBRIDGE NORTHAMPTON

FELIXSTOWE 8

HARWICH CHELTENHAM GLOUCESTER OXFORD LOCATION SWANSEA SWINDON NEWPORT LONDON Bristol is the 5th largest city in the UK and the 15 20 READING HEATHROW J18A M5 18 BRISTOL administrative and commercial capital of the CARDIFF AVONMOUTH BATH south west of . The city is strategically DOVER located at the junction of the M4 and M5 1.5 miles GATWICK motorways, approximately 118 miles west of FOLKESTONE London, 84 miles south west of Birmingham A303 A358 A38 J1 M49 TAUNTON and 37 miles east of Cardiff. YEOVIL

A377 SOUTHAMPTON BRIGHTON 2 miles PORTSMOUTH BOURNEMOUTH

EXMOUTH ROAD M4 WEST WEYMOUTH A38 TORQUAY Bristol is the premier distribution location in the south 22 SECOND M4 west providing direct access to approximately 86% SEVERN 5 miles CROSSING of the UK’s population within a 4 hour drive time. B4055 RIVER The city benefits from excellent road connections SEVERN situated at the intersection of the M4/M5 motorways. SEVERN RD Access to South Wales is via the M4 and M48 and 8 miles CENTRAL AVE 1 Bristol’s city centre is reached via the M32. M4/M5 M4/M5 INTERCHANGE INTERCHANGE SEA M49

SEVERN RD The deep-water ports of Avonmouth and Royal Portbury 10 miles are located nearby and form the fastest growing deep A403 sea port in the UK. EXETER 17 POPLAR WAY WEST B4055 AIR KINGS WESTON LANE A4018 80 miles Bristol International Airport is located 13 miles to the M5 B4055 south of the city and serves 10m passengers a year, flying to over 140 worldwide destinations. BIRMINGHAM ST ANDREWS RD 18a

AVONMOUTH AVONMOUTHWAY RAIL 90 miles R IV ROYAL E 18 B4057 R A Bristol is served by two mainline stations at Bristol PORTBURY VO N DOCKS Parkway and Bristol Temple Meads. The two stations LONDON B4054 provide access to the whole of the UK with a quickest M5 SOUTH/ M5 journey time to London Paddington of 70 minutes. EXETER B4054 125 miles A4 BRISTOL

Poplar Way West, Avonmouth, Bristol, BS11 0YW 03 SITUATION

Rockingham Point is situated at the entrance Within close proximity are the ports of Avonmouth and Royal as trade with the US and the rest of the world increases. An to Cabot Park, one of the South West’s key Portbury Docks. Together they form one of the UK’s fastest increase in car imports will be of direct benefit to British Car distribution parks strategically located growing deep sea ports handling over 6 million tonnes of Auctions. dry bulk goods, 750,000 vehicles and 25% of all animal 1.5 miles from junction 18 of the M5. feed imports per annum. Cabot Park covers 150 hectares (370 acres) and was developed in phases commencing in the late 1990’s. Master planned as a Motorway connectivity has been further improved by the The ports are likely to bid for Freeport status following the low density development, the park provides a well-maintained recent completion of junction 1 of the M49 which is 2 miles UK’s departure from the EU. Freeports will benefit from and landscaped environment with no restrictions on hours to the north. special customs regulations and could grow significantly of use.

M5 Royal Portbury Dock

Costco David Turner 18 Avonmouth Dock 18a M5 Nisbets M49 Budget Greeting Cards Richard Austin Alloys Amazon Poplar Park Kuehne & Nagel Access 18 Asda SITA Royal Edward Dock Yankee Candle Superdrug Avon & Somerset Police Accolade Wines Robert Wiseman

Poplar Way West

Co-op Severnside Trading Estate A403 St Andrew’s Road

Rockingham Gate

Today Cabot Park is fully developed and provides high quality distribution space to well known occupiers including Amazon, Muller, Avon & Somerset Constabulary, Coleman, The Co-Op and John Lewis.

Poplar Way West, Avonmouth, Bristol, BS11 0YW 04 DESCRIPTION Rockingham Point comprises two sites known as Rockingham Point North and South situated either side of Poplar Way West, Cabot Park’s main estate road. Combined the property totals approximately 25.66 hectares (63.41 acres) and provides level, open storage secured by palisade fencing. The two sites are linked by a bridge crossing Poplar Way West.

ROCKINGHAM POINT NORTH Extends to approximately 9.72 hectares (24.02 acres) and includes a warehouse unit of 56,948 sq ft which was constructed in 1997 and later extended in 2001.

The unit comprises two portal frames with steel clad elevations rising to a steel roof. Internally the unit benefits from an eaves height of 6.1m, 9 electric surface level loading doors and two storey offices.

WAREHOUSE ACCOMMODATION

OFFICE ACCOMMODATION sq m sq ft Rockingham Point Ground Floor 315.23 3,393 SOUTH First Floor 315.23 3,393

TOTAL 630.46 6,786

PRODUCTION AREAS

Ground Floor Production (incl. Amenity and Production Office) 4,529.00 48,751

First Floor Amenity and Production Office 131.08 1,411

TOTAL 4,660.08 50,162 Rockingham Point

GRAND TOTAL 5,290.54 56,948 NORTH

ROCKINGHAM POINT SOUTH Extends to approximately 15.62 hectares (38.61 acres) and comprises level, secure open storage.

Poplar Way West, Avonmouth, Bristol, BS11 0YW 05 NB Responsibility is not accepted for NB Responsibility is not accepted for errors made by others scaling from errors made by others scaling from this drawing. All construction this drawing. All construction information should be taken from A3 information should be taken from A3 TENANTS DEMISE FREEHOLD figured dimensions only figured dimensions only

MP 118.25 Drain MP 118.25 Drain SL SL

Dr m Dra ain 3 in

14.3m 14.

Drain Drain

S G S G antr antr y y

Track Track

Drain Drain Drain Drain Drain Drain

Salt Rhine Salt Rhine

Drain Drain

Drain Drain Pond Pond Pond Pond

FB FB MP 118.0 MP 118.0

Track Track Salt Rhine Salt Rhine

L Twr L Twr Drain Drain

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ROCKINGHAM ROCKINGHAM ROUNDABOUT ROCKINGHAM POINT ROUNDABOUT ROCKINGHAM POINT

Drain Drain NORTHL Twr NORTHL Twr

SMOKE LANE SMOKE LANE El Sub Sta El Sub Sta Ponds Ponds

Drain Drain

L Twr L Twr Cabot Park Cabot Park

Drain Drain

POPLAR WAY WEST POPLAR WAY WEST

R1 Sewage Ppg Sta R1 Sewage Ppg Sta

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ESS ESS

Drain Drain 0 50 100 150 200 250m 0 50 100 150 200 250m

Scale - 1:5000 Scale - 1:5000

7.5m 7.5m

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WB WB

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Tanks Tanks L Twr L Twr DRAFT Tanks Tanks Tanks Tanks

Tanks Tanks

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L Twr Rev Description L Twr By Date Rev Description By Date

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Tanks Tanks

POPLAR WAY WEST POPLAR WAY WEST

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ROCKINGHAM POINT ESS ROCKINGHAM POINT ESS SOUTH SOUTH

Drain Drain

L Twr L Twr L Twr L Twr

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L Twr L Twr

16 16

POPLAR POPLAR

ROUNDABOUT ROUNDABOUT

203b 203b

12 12

HUMBER WAY HUMBER WAY Project Project

203c 203c Pond HONDA DISTRIBUTION,Pond ROCKINGHAM HONDA DISTRIBUTION, ROCKINGHAM El Sub Sta El Sub Sta

Pond Pond

117b 117b POINT, AVONMOUTH, BRISTOL POINT, AVONMOUTH, BRISTOL

115b 117c 115b 117c BURCOTT ROAD Drain BURCOTT ROAD Drain

117a 117a

Drain Drain 115

115 Client Client Pond Pond El Sub Sta El Sub Sta

Sewage BNPPDS (JERSEY) LTD Sewage BNPPDS (JERSEY) LTD

Ppg Ppg

118 Reservoir 118 Reservoir

13 Sta 13 Sta 120 120 & BNPPDS LTD & BNPPDS LTD

Pond Pond

119 119

MEREBANK ROAD MEREBANK ROAD

14 14 Pond Title Pond Title

Drain Drain

118a 118a LOCATION LOCATION

118b 118b

Vehicle Testing Centre Drawn by SurveyorVehicle Testing Centre Date Drawn by Surveyor Date ACD HAB OCTOBER 2020 ACD HAB OCTOBER 2020

Scale Scale There is a small area of landscaping1:5000 @ A3 running along 1:5000 @ A3 Rockingham Point North 9.72 hectares 24.02 acres Drawing Number Revision Drawing Number Revision Poplar Way West that is not B201127-D09-01demised to the tenant as B201127-D09-01 Rockingham Point South 15.62 hectares 38.61 acres indicated above.

Total 25.34 hectares 62.63 acres Rockingham Point North 10.04 hectares 24.80 acres

Rockingham Point South 15.62 hectares 38.61 acres

Total 25.66 hectares 63.41 acres

Poplar Way West, Avonmouth, Bristol, BS11 0YW 06 TENANCY COVENANT British Car Auctions handles over 3,500,000 vehicles a year specialising in both car The property is let to British Car Auctions Limited at an initial rent of £2,300,000 per annum, transportation and vehicle remarketing. for a term of 20 years from the 12th October 2020 expiring 11th October 2040. The group’s remarketing division trades from 23 auction centres throughout the UK selling The lease is full repairing (qualified by a schedule of condition) and contains five yearly vehicles for manufacturers, leasing companies and motor dealers. rent reviews linked to RPI subject to a minimum and maximum of 1% - 3% per annum compounded. The company runs the UK’s largest transporter fleet supporting long term clients primarily manufacturers and leasing companies carrying vehicles from port of entry to retail The tenant pays a concessionary rent of 50% until May 2023 (equivalent to 15 months rent dealerships and auction centres. free) which the vendor will top up. Published financial information is as follows: The lease is guaranteed by BCA Trading Limited. ENVIRONMENTAL BRITISH CAR AUCTIONS LIMITED

A phase 1 environmental assessment and flood report have been prepared by Delta Simons 31/03/2019 01/04/2018 02/04/2017 and both are available upon request. TURNOVER £365,560,000 £282,181,000 £264,641,000

PRE TAX PROFIT £73,349,000 £63,974,000 £60,803,000

NET WORTH £83,859,000 £86,384,000 £85,891,000

BCA TRADING LIMITED

31/03/2019 01/04/2018 02/04/2017

PRE TAX PROFIT £85,521,000 £70,756,000 £81,787,000

SHAREHOLDERS FUNDS £224,841,000 £227,132,000 £227,694,000

NET WORTH £224,841,000 £227,132,000 £227,694,000

British Car Auctions Limited and the guarantor BCA Trading Limited are strong covenants with D&B ratings of 5A2 and 5A1 respectively.

BRITISH CAR AUCTIONS HANDLES OVER 3,500,000 VEHICLES A YEAR

Poplar Way West, Avonmouth, Bristol, BS11 0YW 07 CASH ON CASH RETURNS

Rockingham Point gives debt providers an The recent financial performance of BCA Trading Limited and The long-dated income of 20 years will be highly appealing to opportunity to lend against long and secure their solid balance sheet will be attractive to a number of parties insurance companies who are active in today’s market and will income in a globally volatile market. that are seeking to allocate capital against secure tenants that be able to offer competitive financial terms on this transaction. provide stability during COVID-19. Knight Frank’s Debt Advisory team have outlined achievable debt financing terms below:

50% Loan to value 55% Loan to value 60% Loan to value REPAYMENT Interest only Interest only Interest only LOAN TERM 5 -10 Years 5 -10 Years 5 -10 Years PROCEEDS £23,350,000 £27,885,000 £30,420,000 MARGIN 200 bps 210 bps 225 bps 5 YEAR SWAP RATE 8 bps 8 bps 8 bps ALL IN RATE (FIXED) 208 bps 218 bps 233 bps ARRANGEMENT FEE 100 bps 100 bps 100 bps CASH ON CASH RETURN * 6.92% 7.33% 7.73%

* includes lender arrangement fee

For further information please contact Josh Abrahams from Knight Frank’s Debt Advisory team: T: +44 208 092 7798 E: [email protected]

Poplar Way West, Avonmouth, Bristol, BS11 0YW 08 BRISTOL INDUSTRIAL MARKET

Bristol is one of the UK’s major commercial Bristol’s future industrial land supply is primarily in Avonmouth centres and Avonmouth is the prime industrial and at various stages of planning, remediation and promotion. location acting as a gateway to the rest of Rockingham Point is unique providing a large self contained the region. open storage facility on a prime park that is fully developed. It is notable that the letting to British Car Auctions happened shortly Industrial take up to the end of Q3 2020 totalled 1.52m sq ft and after the lease expiry of the previous tenant, Honda, with we expect the full year to be in excess of 2.3m sq ft significantly virtually no void period. ahead of the five year average. Rockingham Point is ideally suited to the tenant’s operation Demand in the logistics sector has grown stronger over the providing significant vehicle storage, a vehicle workshop and course of the year as the pandemic accelerates the move from within close proximity to the car importation operations at bricks & mortar retailing to online. Increased demand for Avonmouth and Royal Portbury Dock. industrial space has resulted in rental growth with prime rents in Avonmouth now standing at £7.35 per sq ft as evidenced by the Whilst the investment offers a secure index linked income letting of Junction One, Central Park. stream for 20 years, upon regaining vacant possession the site could be further developed for distribution and industrial uses. We suggest the passing rent of £2,300,000 devalues to £6.75 per sq ft for the unit and £40,000 per acre for the yard overage based on the net developed site of 51.3 acres i.e. excluding landscaping.

Poplar Way West, Avonmouth, Bristol, BS11 0YW 09 VAT

We understand the property has been elected for VAT and expect the sale to be treated as a TOGC.

EPC The property is rated C.

PROPOSAL

We are instructed to seek offers of£50,700,000 (Fifty Million Seven Hundred Thousand Pounds) reflecting a net initial yield of 4.25% assuming purchasers costs of 6.80%.

FURTHER INFORMATION

Steve Oades Nick Thurston [email protected] [email protected] 0117 9174548 0117 9174536

Johnny Hawkins Charlie Fletcher [email protected] [email protected] 0207 861 1519 0207 861 1450

IMPORTANT NOTICE

(1) Particulars: These particulars are not an offer or contract, nor part of one. Any information about price or value contained in the particulars is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. You should not rely on statements by Knight Frank 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 property. No responsibility or liability is or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness or reasonableness of the information, notice or documents made available to any interested party or its advisers in connection with the proposed transaction. All and any such responsibility and liability is expressly disclaimed. (2) Photos, Videos etc: The photographs, images, property videos and virtual viewings etc. show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations: 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. (4) VAT: The VAT position relating to the property may change without notice. (5) Financial Crime: In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and source of funds of all parties to property transactions. (6) To find out how we process Personal Data, please refer to our Group Privacy Statement and other notices at https://www.knightfrank.com/legals/privacy-statement.

Particulars dated November 2020. Photographs and videos dated November 2019.

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