TITAN 350, MIDPOINT 18, MIDDLEWICH, Cheshire, CW10 0TN Titan 350, Midpoint 18, Erf Way, Cheshire, CW10 0TN Executive Summary

Home , Middlewich, Rode Heath

On the instructions of J Gershinson frics & A Packman mrics of Allsop llp as Joint Fixed Charge Receivers Prime Industrial Distribution Investment

PROPOSAL We are instructed to seek offers in the region of £14,000,000 (Fourteen Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects the following yield profile after allowing for purchaser’s costs of 5.8%. • Net Initial Yield 7.71% • Equivalent Yield 9.68% • Reversionary Yield 10.1% • Capital Value £39.75 per sq ft

A highly reversionary well located prime distribution warehouse facility developed in 2007 to an institutional specification. • the property provides approximately 351,995 sq ft (32,701 sq m) of accommodation. • the property has a high specification including14m eaves, cross docking, 36 dock levellers and floor loading of60 kNm2. • Site area of 27.98 acres and low site cover of only 27%. • Strategically located only 2 miles (3 km) from junction 18 of the M6 motorway, 27 miles (43 km) south west of Manchester and 63 miles (101 km) north of Birmingham. • the current passing rent is £1,142,832* per annum which equates to only £3.25psf. • the property is highly reversionary with strong growth prospects due to a restricted supply. We estimate the ERV to be £4.25psf. • Let to the strong covenant strength of Kuehne + Nagel Limited (D&B rating of 4A1). • unexpired lease term of 3.2 years to expiry. • the lease is excluded from security of tenure provision of the L&T Act 1954. • the tenant operates a parts distribution contract for Fiat from the premises.

We are instructed to seek offers in the region of £14,000,000 subject to contract. A purchase at this level reflects the following yield profile after allowing for purchaser’s costs of 5.8%. • Net Initial Yield 7.71% • Equivalent Yield 9.68% • Reversionary Yield 10.1% • Capital Value £39.75 per sq ft

*The current passing rent is £1,052,832 per annum and rises to £1,142,832 per annum on the 23rd November 2013. Titan 350, Midpoint 18, Erf Way, Cheshire, CW10 0TN Titan 350

LANCASTER ■ J19 HARROGATE ■ M1 YORK ■ ■ KNUTSFORD M6 M56 A538El Sub Sta A537 LEEDS A49 A533 BLACKPOOL ■ BRADFORD ■ ■ HULL E T PRESTON ■ ■ NORTHWICH L Weaverham ■ M6 Universal House M62 ■ A556 MACCLESFIELD Pond HUDDERSFIELD ■ ■ M61 M62 Cuddington HARTFORD A50 Pond ■ ■ El Sub Sta M1 DONCASTER M180 Siddington A523 Pond M58 ■ MANCHESTER ■ A535 ■ ■ M18 Davenham Pond FB LIVERPOOL ■ SHEFFIELD A530 ■ A34 A54 COLWYN BAY M53 ■ M56 LINCOLN WINSFORD ■ HOLMES ■ MIDDLEWICH ■ J18 BANGOR ■ MIDDLEWICH CHAPEL CHESTER ■ A54 ■ A54 A54 A51 M1 A49 ■ STOKE-ON-TRENT CONGLETON TARPORLEY ■ ■ NOTTINGHAM Tank M6 DERBY ■ ■ Church A533 J17 A523 Minshull Pond ■ STAFFORD Tiverton ■ ■ ■ A530 SHREWSBURY SANDBACH Cledford Hall ■ A50 Pond M54 M42 ■ LEICESTER Biddulph WOLVERHAMPTON ■ ■ A534 ■ ■ PETERBOROUGH M6 Rode Heath Pond E BIRMINGHAM T CLEDFOR M1 L D LAN ■ CREWE E M6 36.6m ■ E M11 ■ LAN D 38.1m A41 A49 A527OR F M5 ED ■ Haslington CL ■ COVENTRY KIDSGOVE Pond KIDDERMINSTER ■ ■ M40 A53 39.3m Ridley A51 0m 50m 100m 150m Ponds e e g lm a o t t NORTHAMPTON h o A534 n ld C e ie l f ■ e G s k Nantwich o o J16 o R r ■ B Ordnance Survey © Crown Copyright 2013. All ri©ghts rCeserownrved. Licen ceC nuopyright,mber 100022432 . ESPlotte d100004106. Scale - 1:4016 For identification purposes only.

LOCATION SITUATION SITE

Middlewich is well located in the county of Cheshire approximately 27 miles The property is well served by the national motorway network and is The site provides an area of approximately 27.98 acres (43 km) south west of Manchester, 39 miles (63 km) south east of Liverpool situated two miles west of junction 18 of the M6, at the edge of Middlewich. (11.32 hectares) which represents a site cover of Docks, 63 miles (101 km) north of Birmingham and 13 miles (21 km) north approximately 27%. The M6 corridor gives Midpoint 18 the potential to serve Cheshire, of Crewe. Merseyside, Greater Manchester and the Potteries within a one hour The Middlewich industrial market which includes the successful drive time. The location provides a site offering a range of high quality Winsford Industrial Estate, is home to substantial, vibrant and and convenient work place facilities close to a mid-Cheshire market town. internationally known companies such as: Pochin Properties has recently submitted a planning application on • Wincanton 19 hectares (47 acres) at the junction of Pochin Way and the A54 for a • velcro Limited rural business hub named “Cheshire Fresh”. The proposed site will be • uK Assistance Accident Repair Centre anchored by Wright Marshall LLP (rural auctioneers) and will potentially • H&M Hennes provide offices, light industrial, garden centre and other rural business • Lechler opportunities. • uK Mail • Henkel Loctite Further details can be found on www.cheshirefresh.co.uk. • Iveco • Jiffy Packaging Drive Times

Location Time Distance M6 J18 4 mins 2 miles Crewe Rail Station 19 mins 13 miles Manchester Airport 28 mins 22 miles Manchester 45 mins 27 miles

Liverpool 44 mins 39 miles M90 Falkirk M9 ● Birmingham 1hr 14 mins 64 miles M8 ● A1 Edinburgh M77 Sheffield 1hr 29 mins 67 miles ● Drive time 0-90 min M74 Hull 2hrs 13 mins 129 miles ● Drive time 90-180 min A1 ● Drive time 180-270 min A74(M) London 3hrs 30 mins 178 miles Carlisle ● ● Newcastle M6 A1(M) A66

A66

A1(M) A65 M6 Leeds M65 ● Manchester M18 ● M1 CHESHIRE POLICE Liverpool ● M62 ● Sheffield M1 M56 ● Stoke-on-Trent ● A1 M6 Nottingham Norwich ● Birmingham ● M6 A1(M) Cambridge A1 ● LECHLER M1 M40 M11 A12 Swansea M5 A1(M) ● LONDON Proposed 47 acre M4 Bristol M4 ● ● M25 M2 M3 M25 “CHESHIRE FRESH” M20 M5 M23 A303 M3 A23 Exeter ● A30 ● Portsmouth

A38 FIRMIN COATES

LEARNING & SKILLS COUNCIL

Outline for indicative purposes only Titan 350, Midpoint 18, Erf Way, Cheshire, CW10 0TN

DESCRIPTION The property comprises a high quality distribution warehouse constructed in 2007 providing the following specification: • clear height to underside of haunch 14m • cross docking • 36 dock levellers • 4 level access doors • 35m service yards • yard marshalling offices • Floor loading of 60 kNm2 • 30 bespoke trailer-parking bays • Separate dedicated parking area providing 150 spaces • 3 storey office block with suspended ceilings, raised flooring and canteen

TENANCY TENANT’S COVENANT

The property is let to Kuehne + Nagel Ltd for a term of 6 years and Kuehne + Nagel was founded in Bremen, Germany in 1890 and is today considered 2 months from 23rd November 2010 expiring 31st January 2017 on full one of the world’s leading logistics providers. The Kuehne + Nagel Group has more repairing and insuring lease terms at a current rental of £1,142,832* per than 1000 offices in over 100 countries, with over 63,000 employees. annum. The unexpired term is 3.2 years. Kuehne + Nagel operates the facility as part of a third party logistics parts distribution *The current passing rent is £1,052,832 per annum and rises to £1,142,832 per annum contract for Fiat. on the 23rd November 2013. The property has been part sublet to Fiat Group Automobiles UK Limited Kuehne & Nagel Limited (www.kn-portal.com) is rated 4A1 by Dun and Bradstreet and the underlease term expires on 9th June 2016. The underlease is which represents a minimum risk of business failure and a maximum credit of excluded from the security tenure provisions of the 1954 Act. £33,333,500. The business produced the following accounts over the last 3 years:

The tenant had a break option in 31st January 2014 which was not exercised. Kuehne + Nagel 31st Dec 2010 31st Dec 2011 31st Dec 2012

ACCOMMODATION Turnover 947,906,000 957,842,000 937,367,000

Description Sq ft Sq m Pre-tax profits 26,644,000 22,271,000 26,959,000

Main warehouse 335,333 31,153 Total net worth 14,340,000 20,940,000 21,776,000

Dispatch offices 1,130 105 Total current assets 176,531,000 174,640,000 186,206,000

Offices 15,532 1,443 Source: Riskdisk

Total 351,995 32,701 OCCUPATIONAL MARKET There was limited speculative industrial development in 2012/13 leading to a shortage of Grade A stock. This lack of Grade A choice leaves selective occupiers with little option but to delay expansion decisions until the quality of the stock develops. The shortage is further compounded by the expansion of online sales channels, and niche e-retailers further growing the demand for Grade A warehousing. At the end of June 2013 there was 6.8 million sq ft of new floorspace available, the lowest level since 2005. New availability is now 76% below its pre-recession peak. Overall availability has fallen from 16.4m sq ft in 2008 to 4.3m sq ft currently. The North West logistics market is experiencing significant demand for quality distribution buildings. The region has been the most active region outside of the South East for take-up of distribution buildings over the last 24 months.

NOTABLE M6 CORRIDOR LETTINGS

Omega North, Warrington Hermes 156,000 sq ft £5.35 Jan 2013

Newcastle-under-Lyme Smyths Toys 414,876 sq ft £3.95 Jul-2012 Warrington Walkers 212,709 sq ft £4.50 Jan-2012

Omega North, Warrington Brakes Bros Plc 200,000 sq ft £5.15 Dec 2012

Stafford Argos 466,792 sq ft £4.65 Dec-2011

TENURE VAT Prologis Stafford GAP 230,347 sq ft £4.75 Mar- 2010

The property is held by way of a The property is not elected 999 year lease from 11th August for VAT. 2006 at peppercorn rent.

EPC ESTIMATED RENTAL VALUE The property has an Energy Performance Certificate rating as follows: B46. We are of the opinion that the property has an estimated rental value of £1,495,978 per annum Further information is available on request. which reflects £4.25 per sq ft. INVESTMENT COMPARABLES

Town Address Date Tenant Size Term Certain NIY Price Capital Value (per sq ft) (per sq ft)

Coleshill Hams Hall 170 & 28 U/O Kuehne + Nagel & ABB 198,400 3.75 6.80% £16.88m £85

Manchester Agecroft Commerce Park September 2013 Bunzl Retail 221,000 3.50 7.30% £13.00m £59

Manchester Centrepoint 5 September 2013 Kuehne + Nagel 179,173 5.00 8% £7.77m £43

Manchester Merlin 310 July 2013 TDG UK (Kellogs) 311,828 5.00 7.10% £19.70m £63

For further information or to make arrangements for viewing please contact:

Scott Tyler David Hammond Mark Dansky 020 7543 6719 020 7543 6721 020 7543 6813 [email protected] [email protected] [email protected] www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. The property is being marketed on behalf of joint fixed charge receivers and that therefore no warranties or guarantees in any respect including as to VAT can be given and that the receivers act without personal liability. 11.13