TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, , TA6 4TP

M5 Industrial Investment Opportunity with Significant Asset Management Potential TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Investment Summary Location

• Located in Bridgwater, a prime South-West industrial / Situation warehouse location on the M5 between Bristol and Exeter

Communications • Situated in a prominent position fronting the A38 and A39 and under half a mile from J23 of the M25 Aerial Photo • Single let industrial building totalling 36,050 sq ft let to Trelleborg Sealing Solutions UK Ltd expiring 19th January Specification 2022 (c.3.4 years unexpired) • The tenant has been in occupation on an FRI lease since Accommodation the building was developed in 1983 • Very low passing rent of £225,330 p.a. (£6.25 psf) Tenure & Tenancy providing a significant reversion with headline rents in the Bridgwater area being acheived up to £9.85 psf Covenant Information • Asset management potential to extend the building by 13,200 sq ft to create a 49,250 sq ft unit Environment • Site area of 3.30 acres providing a very low site cover Asset Management of c.25% • Virtual Freehold – 999 years Occupier Market

Investment Proposal Comparables • Offers are invited in excess of £3,025,000, subject to EPC Rating & VAT contract and exclusive of VAT • A purchase at this level would reflect a net initial yield Proposal & Contact of 7.00% after allowing for the usual purchaser’s costs of 6.47%.

2. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Location Situation Location Bridgwater is a town situated in the District of . It is Dunball Trading Estate is situated 4 miles north of Bridgwater town centre. It’s positioned Situation a major industrial / warehouse town as it is strategically located in close immediately adjacent to J23 of the M5, which intersects the A39. The property is proximity to the M5, one of the South-West’s main communication routes. The situated in a prominent location on Dunball Roundabout fronting both the A39 and A38 M5 provides direct access to Bristol to the north and Exeter to the south. roads and is also less than half a mile from Junction 23 of the M5. Communications

Aerial Photo Communications

Specification Bridgwater by Car Bridgwater by Train Bridgwater by Aeroplane

Accommodation Bridgwater is located on the which provides fast Bridgwater is situated on the Great Western mainline. Bridgwater is located 22 miles from Bristol airport, access between Bristol (35 miles) & Exeter (50 miles) in 45 This service runs to Bristol in a fastest time of 54 minutes, Tenure & Tenancy 24 miles from Cardiff airport and 128 miles from and 50 minutes respectively. Central London (150 miles) can Plymouth 1 hour and 51 minutes, Exeter in 46 minutes and London Heathrow. be reached via the M5 and M4 in 2 hours and 40 minutes. London Paddington in 2 hours and 29 minutes. Covenant Information A40 A419 OXFORD

SWANSEA Cotswolds Environment AONB Pawlett Rd NEWPORT A429 SWINDON Downend Rd M4 A419 A34 Asset Management M5 CARDIFF M4 M4 Downend Cres BRISTOL READING

A429 A419 Occupier Market A39 A34 North Wessex The Property Downs AONB A36 Investment A39 Comparables

A303 A39 M3 The Property A39 Exmoor National EPC Rating & VAT M5 A303 A34 Park A36 BRIDGWATER A37 A372 SALISBURY WINCHESTER A303 Cranborne Chase Proposal & Contact A303 AONB A303 YEOVIL Bristol Road M27 SOUTHAMPTON 23

East Devon AONB

Exeter A38 Station Rd BOURNEMOUTH Dartmoor 3. M5 National Park M5 TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary 1 Subject Property 4 Zenith Hygiene 2 Trelleborg F/H 5 Hanson Aggregates Location 3 Scania 6 Morrisons

Situation M5

Communications 23 M5 23 6 Aerial Photo

Specification Bridgwater

Accommodation

Tenure & Tenancy 3

Covenant Information A38 4 Environment A39 2

Asset Management

Occupier Market 1 5

Investment Comparables

EPC Rating & VAT

Proposal & Contact

4. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Specification Tenure Location The property is an industrial unit constructed in 1983 with ancillary Virtual Freehold – 999 years from 29/04/1989 at £50 p.a. (if demanded). Situation office accommodation: Industrial Accommodation Tenancy Communications • Portal frame construction • Profiled metal cladding The property is let in its entirety to Trelleborg Sealing Solutions UK Ltd on an FRI lease Aerial Photo • Gas Heating • 5 metres to underside of haunch commencing on 26th June 2018 expiring 19th January 2022 providing a term certain of • 2 loading doors • Secure site 3.4 years unexpired. Specification • 63 car parking spaces • 35 metre yard depth The current rent passing is £225,300 p.a. which equates to a low rent of £6.25 psf. Accommodation • Sodium and LED lighting • Sprinkler System The tenant has been in occupation since the property was developed in the 1980’s. They Tenure & Tenancy Office have evolved a very skilled local workforce and are likely to relocate to a new larger • 2 storey office space to western elevation of the warehouse facility at lease end. Covenant Information • Ground Floor reception Suspended ceilings with integral lighting Environment • • Air conditioning Asset Management

Occupier Market

Investment Accommodation Comparables The unit totals 36,050 sq ft GIA as detailed below: EPC Rating & VAT Floor Sq m GIA Sq ft GIA Proposal & Contact Ground Floor Offices & Industrial 3,044.94 32,775 First Floor Offices 304.22 3,275 Total 3,349.16 36,050 Mezzanine 346.69 3,732 5. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Covenant Information Environmental Location

Trelleborg Sealing Soltuions UK Ltd – Company number: 00446036 The site is located in a protected flood zone 3 which benefits from significant flood Situation defense infrastructure. Recently there has been substantial investment into the Trelleborg Sealing Solutions UK Ltd is a leading global supplier of sealing solutions. Bridgwater and Dunball area with £100m due to be spent to further minimise the Communications Their range of products includes O-Rings, hydraulic seals, rotary shaft seals, oil risk of flooding. The site has never flooded since being developed. seals, static seals, pneumatic seals, mechanical face seals and many more. Trelleborg Aerial Photo Sealing Solutions comprises six market segments: General industry, Aerospace, Further detail available upon request. Light Vehicles, Transportation Equipment, Agriculture, Oil & Gas. Specification They are a substantial company with profits over £10m. Please see their account summary below for further detail: Accommodation

Floor 2016 2015 2014 Tenure & Tenancy Turnover (£m) 84.2 81.8 88.2 Covenant Information Profit (£m) 10.3 10.9 12.2 Net Assets (£m) 22.3 22.0 24.4 Environment

Asset Management

Occupier Market

Investment Comparables

EPC Rating & VAT

Proposal & Contact

6. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Asset Management Location Abacus Architects have provided indicative plans to extend the unit to the north by 13,200 sq ft. The extension Situation provides the opportunity to let as a whole or sub-divide into smaller units to create a multi-let scheme.

Drainage Duct

Communications  MB Gy MB 6.71 Gy G9 MB 6.54 6.591 MB 11.30  MB E: MB CVR  Gy 6.70 Vegetated 6.70  Embankment Cycle Shelter Drainage Duct Tarmac Post  Cycle Shelter  Post Tarmac  Aerial Photo Gy 6.75  Grass Gy Gy Gy Storage Building 6.72 IC 6.44 7.25 Drainage Duct 6.81 Shed

Vegetated Embankment Post Gy Sp 6.39 Sign Post Gy THL IC Gy 6.86 THL 6.72 6.40 Post Post 6.90 6.36 Gy 23635 Gy Specification 7.37 Concrete 6.38

Spoil Mound Shed Volume Ramp 9461.571m3 Gravel removed Vegetated New concrete surface G8 Embankment 6.290 BT Tarmac 45065 Post Shed C'box IC 6.34 Accommodation Containers Concrete Paved ENTRANCE CVR Tarmac Gravel removed 6.67 Wm New concrete surface Drainage Duct Gy BUILDING 2 6.30 CVRs Exit 6.68 Proposed Extension 9.49 IC F: 6.25 Containers Ground Floor GFA: 1079sqm (11614sqft) IC Paved 9.90 6.25 IC 10.81 R: 6.25 First Floor GFA: 148sqm (1593sqft)F: WC WC F: Shed 9.67 Drainage Duct E: 14.37 Tenure & Tenancy IC TCL: IC IC 6.72 13.01 6.51 G7 Grass 6.74 Showroom IC 6.527 Paved 132sqm (1420sqft) AC units  IC Stairs 6.76 Mkr  Grass F: CVR 14.20 6.54 Gravel IC AC units Silo 6.73 Stairs Gravel G6 6.312 Vegetated Exit / EntranceG4 Gy Gy Embankment 6.332 6.27 Covenant Information 7.49 THL Tarmac 6.46 Wm Sub Station Overhead Canopy Sign Concrete St  Containers

F: Gy Bushes 13.89 Wall 6.21 Ht 1.5m Lp

Gy  Environment 6.12 Wall Grass Tarmac Ht 1.5m Gravel surface IC 6.23 G5 Gy 6.201 7.33 Gy 6.11 Vegetated Post Embankment Shed Bushes Post  F: 13.89 12.52 E: Tarmac F: 12.74 Shed

MB MB THL IC Asset Management MB 6.47 6.32 MB F: 10.37 MB Parking

Inv 14.67   4.98 R: Ø0.7 WL Motor Cycle Sign Grass BUILDING 1 Gy 6.13   Gy G3 ICU Occupier Market 7.15 6.436   IC Mkr 6.27 IC 6.37 

Grass 

Lp Mkr Gy 12.43 IC Mkr 6.19 E: AC units 6.39 A38 Tarmac THL Tarmac   Mkr 6.41 Investment Lp Grass 

AC units Conc. AC units  Gy Bushes Stairs 7.01 TCL: Comparables 15.23 14.47 St R: Wm St  IC TCL: 6.46 14.97  Sp G2  BT 6.412  Sign  Flag

EPC Rating & VAT G1 Tarmac  6.530  BT Gy 6.88    Lp Grass Sp Sp      Lp Proposal & Contact ICU Key: Red: Freehold site (nb. Site is trimmed due to indicative pictures) Green: Indicative extension plans Yellow: Trelleborg owned freehold site (potential to aquire the freehod from Trelleborg when they vacate the premises) 7. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary Occupier Market Location Bridgwater continues to benefit from a significant level help further establish the Bridgwater area as a leading This provision of new stock through Bridgwater Gateway Situation of investment in the area through the development of industrial location. The scheme is quoting headline rents and the transactions above will also help set new rental C nuclear power plant, which is anticipated of up to £8.50 psf on 10 year terms for new industrial units. tones in the area and provide further rental growth to cost c.£20bn. The economic stimulus provided by this looking forward. Communications development will have a ripple effect into the surrounding Recent headline transactions include: area having a positive effect on industrial occupational - Scania leasing a c20,000 sq ft unit on a Aerial Photo demand. This demand coupled with a lack of built supply design and build basis at £9.85 psf has provided an environment of sustained rental growth - Travis Perkins leasing 18,000 sq ft on Bristol Road, Specification in the area. Bridgwater at £8.50psf on a 5 year term - Hydro Graphic leasing c11,300 sq ft in Wylds Road, Accommodation Bridgwater Gateway, an 100 acre industrial, office and Bridgwater at £8.50psf on a 5 year term, with a break leisure development site located 5 miles to the south of at year 3. Tenure & Tenancy the site, will provide much needed industrial supply and

Covenant Information Investment Comparables Environment Please see below a list of comparable investment transactions: Asset Management Town Address Size Passing Passing Unexpired Tenant Price Initial Yield (sq ft) Rent (pa) Rent (psf) Term (years) Occupier Market Barnett Way, Barnwood, Gloucester GL4 3RT 52,916 £300,000 £5.67 3.5 Kohler Mira Ltd £4,900,000 5.73% Investment Trowbridge Canal Road Industrial Estate, 35,527 £171,070 £4.82 6.9 Giant Booker Ltd £2,250,000 6.35% Comparables Trowbridge, BA14 8RN Milton Keynes 73 Mercers Drive, MK13 7HQ 89,015 £534,100 £6.00 4.87 BSH Home Appliances £8,345,000 6.00% EPC Rating & VAT First Avenue, Forge Lane, Minworth B76 1BA 104,558 £419,000 £4.01 1.7 Kuehne & Nagel Ltd £7,400,000 5.31% Northampton Moulton Park 43,694 £207,546 £4.75 5 Panther Logistics £3,025,000 6.40% Proposal & Contact Welwyn Garden City 30 Watchmead 22,291 £188,105 £8.44 4 Amazon Uk Services Ltd £8,345,000 5.50% Site B Loefric Business Park, Coventry Progress Close, CV3 2TF 47,501 £233,730 £4.92 4.75 IQQR Global Services £4,075,000 6.12% Unit A, Link 20 Bellingham Aylesford Way, ME20 6SP 24,343 £171,000 £7.02 4 CSC Computer Sciences £3,000,000 5.30% 8. TRELLEBORG SEALING SOLUTIONS UK LTD Dunball Trading Estate, Bristol Road, Bridgwater, TA6 4TP

Investment Summary EPC Rating VAT Contact Details Location EPC rating – E We understand the property will be treated as a Rory Turner Situation Transfer of a Going Concern for VAT purposes. e: [email protected] Communications Proposal t: +44(0) 20 7952 6302 m: +44 (0) 7852 247 977 Aerial Photo Offers are invited in excess of £3,025,000 for the virtual freehold Specification interest, subject to contract and exclusive of VAT. Mike Burden e: [email protected] Accommodation A purchase at this level would reflect a net initial yield of 7.00% after allowing for the usual purchaser’s costs of 6.47%. t: +44(0) 20 7952 6103 Tenure & Tenancy m: +44 (0) 7815 305 180

Covenant Information Charlie Moulton e: [email protected] Environment t: +44(0) 20 7952 6298

Asset Management m: +44 (0) 7435 212 323

Occupier Market Data Site Access Investment Comparables Please contact one of the Kimmre team to arrange data site access EPC Rating & VAT

MISREPRESENTATION ACT 1967 Proposal & Contact Kimmeridge Real Estate Ltd on its own behalf and for vendors or lessors of this property, whose agent it is, gives notice that: 1. The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2. No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3. The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4. Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. 5. Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water 9. contamination. Interested parties are advised to carry out their own investigations if required. Publication Date: September 2018