PRIME SOUTH EAST MULTI LET TRADE PARK INVESTMENT Burnt Ash Trade Park, Quarry Wood Industrial Estate, Aylesford, ME20 7XB

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1 PRIME SOUTH EAST MULTI LET TRADE PARK INVESTMENT Burnt Ash Trade Park, Quarry Wood Industrial Estate, Aylesford, ME20 7XB

2 2 investment summary Core south east trade park located within a mile of Junction 5 of the M20, providing direct access to the national motorway network, London and the sea ports of South East England. Situated on the established Quarry Wood Industrial Estate, opposite the entrance to the South Aylesford Retail Park. The property consists of 10 units, in two well configured terraces, providing a total gross internal area of 76,397 sqft (7, sqm). Individual unit sizes range from 4,543 sqft to 12,499 sqft. The estate is fully let to 8 tenants with a weighted average unexpired lease term of 7.54 years to expiries and 6.16 years to breaks. The demise also includes two hard standing car parks suitable for longer term redevelopment. Total rent passing of 687,694 per annum, reflecting a low average rent of 8.26 per sqft, providing a strong platform for future rental growth. The site extends to 4.10 acres (1.659 hectares) and the estate benefits from good circulation, dedicated car parking and a low site coverage of 40%. Freehold. Stong trade bias with over 61% of the current income secured against major national occupiers. Offers are invited in excess of 11,720,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 5.50%, after allowing for purchaser s costs of 6.71%. This reflects a capital value figure of 153 per sqft. When adopting a conservative market rent of 8.50 per sqft the reversionary yield increases to 6.12%.

3 3 GLASGOW EDINBURGH LOCATION LIVERPOOL M6 NEWCASTLE UPON-TYNE MIDDLESBOROUGH M62 MANCHESTER SHEFFIELD A1(M) LEEDS DONCASTER M18 A1 M62 Aylesford is located 4.0 miles (6.4 km) north west of the Kent County town of Maidstone. Collectively they form a major commercial centre within the south east of England, which is home to a significant labour catchment. HULL M180 Aylesford is located approximately 35 miles (56.3 km) south east of Central London and 30 miles (48 km) west of Canterbury. The town benefits from excellent road communications being adjacent to Junction 5 of the M20 motorway. The M20 Motorway links with the National Motorway Network via the M25, which is accessed by either Junction 3 or 5, 15 miles to the west. The Port of Dover, which is Europe s busiest ferry port, handling 119 billion of trade or 17% of the UK s trade in goods, is located 44 miles (71 km) to the south east. In 2016 the Port handled 13 million passengers, 2.4 million tourist vehicles, 2.5 million freight vehicles and supported 22,000 jobs. The ports of Folkstone and Tilbury are also within a 45 minute drive. Aylesford train station is only 1.1 miles away and offers services into central London with a fastest journey time of 53 minutes. Ebsfleet International Station is approximately 25 minutes drive and provides 4 trains an hour to London St Pancras, with a journey time of approximately 18 minutes. The international airports of London Gatwick, London Heathrow, London Stanstead and London City are all within 1.5 hour s drive time. M54 CARDIFF BIRMINGHAM M42 M50 BRISTOL M6 M5 OXFORD M42 READING M4 M3 M1 NOTTINGHAM A1 PETERBOROUGH COVENTRY A14 CAMBRIDGE RUGBY M1 M40 NORTHAMPTON A34 M40 M3 M25 M25 M23 LONDON PORTSMOUTH M11 A14 AYLESFORD M2 M20 PORT OF TILBURY PORT OF FOLKESTONE FELIXSTOWE PORT OF DOVER M20 2 miles, 5m M26 5 miles, 8m A2 9 miles, 17m M2 11 miles, 18m M25 16 miles, 18m M1 64 miles, 1h 5m GATWICK 35 miles, 38m LONDON 35 MILES 1HR 10MINS FOLKESTONE 40 MILES 44 MINS PORT OF TILBURY 31 MILES 42 MINS DOVER 47 MILES 53 MINS CHANNEL TUNNEL 37 MILES 56 MINS M5 SOUTHAMPTON HEATHROW 56 miles, 57m HGV DRIVE TIMES STANSTEAD 58 miles, 1h 8m 2 hours 3 hours 4.5 hours LUTON 76 miles, 1h 21m

4 4 SITUATION SOUTH AYLESFORD RETAIL PARK A20 L Quarry Wood Industrial Estate is a substantial commercial estate occupying a site of approximately 50 acres to the south of Aylesford town centre, all held under a number of differing ownerships. The Estate is accessed via a roundabout junction off the A20, which provides a direct link to Junction 5 of the M20, less than a mile away. The highly prominent South Aylesford Retail Park is situated at the northern entrance to the estate and is home to a number of national retailers including Homebase, Marks & Spencer, Halfords, Curry s PC World, Harvey s and a newly built Nando s unit. The wider Quarry Wood area is predominantly industrial with manufacturing, warehouse and trade uses all present. Major occupiers include London LEAY Plumb Center, Speedy, BSS, Dulux, Palmer & Harvey and Tesco. The area is also home to numerous major auto dealerships and associated mechanical workshops providing a specific focus for local employment. Arden BMW, Guy Salmon, Jaguar Land Rover, Beadles, Toyota, Vauxhall, and Skoda and are all represented within the immediate locality. Burnt Ash Trade Park occupies a prominent site at the north eastern corner of the Quarry Wood Industrial Estate, diagonally opposite the entrance of the South Aylesford Retail Park. The Trade Park has a prominent frontage onto Mills Road and shares a boundary with PLUMB CENTER 1-7 LAKE RD IND. EST LAKE RD IND. EST LAKE RD IND. EST. LAKE ROAD EUROWAY TRADE PARK the large Sainsburys Larkfield Superstore immediately to the north. BEADLES VOLKSWAGEN EUROWAY TRADE PARK LAKE ROAD WOOD CLOSE GUY SALMON LAND ROVER SKODA AUTO BEADLES VAUXHALL GUY SALMON JAGUAR BEADLES TOYOTA ARDEN MAIDSTONE FRONT CAR PARK 1a INTERNAL CAR PARK 1b BURNT ASH ACT COMMUNICATIONS PLUMBING & HEATING WAREHOUSE ROAD SAINSBUR SUPERMAR Ditton LONDON ROAD STATION ROAD Holt Hill WOODLAND S ROAD Aylesford TEAPOT LANE AYLESFORD A20 RBS LOOMIS STATION ROAD HALL ROAD M20 HERMES MAIDSTONE RIVER MEDWAY BRITANNIA BUSINESS PARK 5 KMH DULUX DECORATOR CENTRE Ashford ADVENTURE KIDZ INDUSTRIAL ESTATE WATERLOO AIR PRODUCTS FLEET EFFICIENY KILN BARN ROAD HOLTWOOD AVENUE Quarry Wood Industrial Estate LAKE ROAD CLEANSING SERVICE GROUP WOOD CL WEALDEN WAY BURNT ASH RD BURNT ASH TRADE PARK HERMITAGE LANE B2246 LONDON RD Not to scale - for indicative purposes only A20 PALMER AND HARVEY INDUSTRIAL ESTATE CSM: ICON WAREHOUSE UPPER CREO RETAIL MARKETING

5 5 < > M20 M20 JUNCTION 5 A 20 A2 0 E F A BURNT ASH TRADE PARK D C B M D I K L N D OA R LS IL M WEA LDE NW AY INVESTMENT SUMMARY A RO LAK ER OA D LS IL G J H LOCATION SITUATION AERIAL O M DESCRIPTION & SITE ACCOMMODATION & ENVIRONMENTAL A SOUTH AYLESFORD RETAIL PARK F K B G L C H M D I N E J O TENANCIES & SERVICE CHARGE COVENANT INFORMATION MARKET COMMENTARIES PALMER & HARVEY INDUSTRIAL ESTATE EPC, VAT & PROPOSAL FURTHER INFORMATION

6 6 DESCRIPTION The Trade Park comprises two well configured terraces of 10 units, constructed in the 1980 s. The units are of steel portal frame construction with part brick/blockwork and part profile metal clad elevations under a single pitch insulated roof. Each unit benefits from a roller shutter loading door and a dedicated yard area to the front with generous car parking. The units provide a minimum eaves height ranging from 17ft (5.2m) to 20.3ft (6.2m). The units benefit from ground, and or, first floor offices which incorporate suspended ceilings, heating and lighting. Some of the tenants have installed mezzanine floors, racking and trade counter fit out. Unit 1, the largest on the estate, has been split to provide two separate units. A number of units have palisade fencing providing secure yard space. Externally the estate is landscaped and benefits from good vehicular circulation. The demise includes two hard standing self contained car parking areas, which maybe suitable for longer term redevelopment. These areas are let to two tenants who occupy premises in the wider Quarry Wood area. Units 1A & 1B Unit 9 Burnt Ash Road as hatched green is adopted and owned by The Kent County Council. SITE The site extends to 4.10 acres (1.659 hectares), which represents a site cover of 40%.

7 7 ACCOMMODATION The property has been measured in accordance with the RICS Property Measurement (1st Edition) and provides a total gross internal floor area of 76,397 sqft (7, sqm). ENVIRONMENTAL Delta-Simons carried out a Phase I Environmental Assessment in June 2017, the assessment concluded that the Site, in its current use, represented a Low to Moderate risk. The report, however, identified a historical oil depot in the south-west corner of the site as a potential source of contamination. This area had already been investigated in 2001 and Delta Simons recommended that a further Detailed Quantitative Risk Assessment (DQRA) should be undertaken, incorporating the existing groundwater monitoring wells. Unit 1A - Carpets4Less The DQRA finished in October 2017 and Delta-Simons concluded that the Site represents a Low overall environmental risk in its current use. Delta-Simons also concluded that no further works or remediation is considered to be required. The site is not located in an area at risk of flooding. A copy of the full report is provided on the Clay Street data site supporting the sale. TENURE The property is held Freehold. Unit 2 - HSS Unit 9 - Arden Maidstone

8 8 TENANCIES The property is fully let to 8 tenants and combined with the two car parking areas produces a current total rental income of 687,694 per annum. Individual rents on the industrial units range from 7.75 per sqft to per sqft. The current weighted unexpired lease term is approximately 7.54 years to expiries and 6.16 years when accounting for break options. Service Charge The service charge budget for the year ending the 30 June 2018 is 15,897.00, which reflects approximately 0.23 per sqft. Full details are available upon request. The estate has historically retained high levels of occupancy, largely due to it s strategic location close to the M20 appealing to a wide and varied trade occupier base. Unit 4 - Rexel UNIT TENANT AREA AREA LEASE BREAK RENT LEASE Rent Rent In/Out Comments (sqft) (sqm) START DATE REVIEW Expiry (per annum) (per sqft) 54 Act Schedule of Condition. RR outstanding. RR Mezz area (1,111 sqft) Unit 1A Burnt Ash TP ExpertEffect Ltd (t/a Carpets 4 Less) ( ) 12,499 1, /04/12-19/04/17 18/04/22 98, In reviewed to 50% of standard rate. RR notice served at 118,927 reflecting 9.96 per sqft. Unit 1B Burnt Ash TP Screwfix Direct Ltd ( ) 6, /12/13 16/12/18 16/12/18 15/12/23 51, In Schedule of Condition. 6 mths notice on T bk. 3 mths bk penalty. Unit 2 Burnt Ash TP HSS Hire Service Group Ltd ( ) 10,951 1, /09/16-28/09/21 28/09/26 93, Out - Unit 3 Burnt Ash TP HSS Hire Service Group Ltd ( ) 10,910 1, /09/16-28/09/21 28/09/26 92, Out - Unit 4 Burnt Ash TP Rexel UK Ltd ( ) 8, /10/15 27/10/20 27/10/20 26/10/25 72, In Schedule of Condition. 9 mths notice on T bk. 3 mths bk penalty. Unit 5 Burnt Ash TP EPMS Supplies Ltd ( ) 5, /05/15 19/05/20 19/05/20 18/05/25 41, Out 9 mths notice on T bk. No bk penalty. Rent Deposit - 24, Unit 6 Burnt Ash TP Carpetright Plc ( ) 5, /11/ /11/20 43, In Schedule of Condition. Unit 7 Burnt Ash TP Brammer UK Ltd ( ) 5, /01/ /01/20 42, In - Unit 8 Burnt Ash TP Arden Maidstone Ltd ( ) 4, /01/15 - Unit 9 Burnt Ash TP Arden Maidstone Ltd ( ) 6, /01/15-13/01/20 13/01/25 13/01/20 13/01/25 12/01/30 46, In - 12/01/30 50, In - Front Car Park Under Offer to Beadles Group Ltd Lease terms agreed, start date TBC. 5.5 mths rent free, ha (0.147 acres) [01/12/17] [01/12/22} [01/12/22] [30/11/27] 20,000 - Out Burnt Ash TP ( ) to be topped up by the vendor. Schedule of Condition. Internal Car Park William Jacks Properties Ltd Schedule of Condition. RR to 2% pa compounded on 5 yearly ha (0.439 acres) 31/08/06 31/08/21 31/08/ /03/25 36,570 - Out Burnt Ash TP (t/a Guy Salmon ) ( ) basis. 6 mths notice on T bk. Rolling LL s bk on 6 mths notice. Total 76,397 7, ,

9 9 COVENANT INFORMATION The estate provides a secure income base derived from a diverse range of national and local occupiers. Occupiers on the estate predominantly focus on building supplies, trade retailing and businesses serving the auto industry. The Estate has a strong trade bias with 61% of the current income secured against tenants with turnovers in excess of 240m. Financial details of the main tenants are provided below: Units 2 & 3 HSS Service Group Ltd (Company reg: ) HSS is a leading provider of tools, equipment and related services in the UK and Ireland. The company was founded in 1957 and currently employs over 2,900 people in 265 locations across the UK. It manages over 35,000 B2B accounts in the Fit-out, maintain and operate sectors. YEAR END TURNOVER pre-tax Profit NET WORTH 31st December ,015,000-2,727,000 37,505,000 31st December ,467,000 17,673,000 53,858,000 31st December ,813,000 20,415,000 51,585,000 Screwfix Direct Ltd (Company reg: ) Screwfix is part of Kingfisher plc, the international home improvement company, with over 1,100 stores in 10 countries in Europe, Russia and Turkey. Screwfix offers over 11,000 products available for pick up from over 517 stores nationwide. Screwfix currently employs 7,130 people and offer 11,000 products in store and a further 13,500 items online. YEAR END TURNOVER pre-tax Profit NET WORTH 31st January ,057,373,000 91,053, ,687,000 31st January ,569,000 64,799, ,873,000 1st February ,263,000 45,328, ,625,000 Rexel Direct Ltd (Company reg: ) Rexel provides tailor-made electrical equipment and services to professionals engaged in the construction, renovation and maintenance of buildings and infrastructures. Rexel employs 27,000 people and operates in 32 countries through a network of 2,000 branches and 115 logistics structures. Its customers are installers of every size, as well as industrial companies and public & private commercial businesses. YEAR END TURNOVER pre-tax Profit NET WORTH 31st December ,405,000 15,753,000 99,521,000 31st December ,323,000 30,163,000 90,323,000 31st December ,482,000 5,494,000 86,401,000 Carpetright Plc (Company reg: ) Carpetright is a leading floor coverings and beds provider. Founded in 1988 the company has grown significantly and is currently operating in four European territories. Carpetright trade from 434 stores and concessions in the UK as well as 137 stores across Holland, Belgium and the Republic of Ireland. The Group listed on the London Stock Exchange in 1993 and currently employs 3,000 people. YEAR END TURNOVER pre-tax Profit NET WORTH 30th April ,800,000 12,800,000 74,000,000 25th April ,800,000 6,600,000 59,500,000 26th April ,770,000-7,200,000 61,100,000

10 10 OCCUPATIONAL MARKET COMMENTARY Kent is an increasingly favourable commercial location, given rising prices in London and other parts of the South East. Kent s relative affordability, combined with business and employment expansion has driven on-going in-migration, particularly from London. Housing delivery across the region has therefore grown significantly through 2017 and looks set to continue in the immediate future with 9,800 1 new dwellings per year forecast through to 2031 for the Medway and Kent region, underpinned by major infrastructure investment. Strong retail demand from a growing population coupled with a dearth of development activity over recent years has placed acute pressure on industrial rents across the region. As a result, the average prime rent in the industrial and distribution sector in Kent rose by 9.4% 2 over 12 months to the end of August Aylesford s strategic location between the UK s largest markets of London and the South East, Dover and the Channel Tunnel combined with a cheap and abundant workforce has been particularly attractive to a wide range of industrial/distribution occupiers. This robust demand coupled with limited supply has driven recent rental growth and placed downward pressure on both void periods tenant incentives. Burnt Ash Trade Park has mirrored these pressures over the last 18 months, with the rental tone being set circa 12 months ago at Units 2 and 3 with the lease renewal to HSS at 8.50 per sqft. Should any of the units become vacant on the estate we would anticipate quoting rents significantly ahead of this level. 1. KCC Housing led forcast (Oct-16) 2. Caxtons Unit 3 - HSS INVESTMENT MARKET COMMENTARY Demand continues to be strong for industrial assets, particularly in the South East, with a substantial weight of capital targetting the sector. Investors are drawn to towards the compelling fundamentals of a strong occupational market with very low availability rates, strong rental growth and low speculative development. The industrial sector looks set to maintain strong investment returns, driven by a combination of both capital and continued rental growth. Recent industrial investment transactions include: PROPERTY DATE STATUS PRICE NIY SIZE TENANTS WAULT AVG RENT CAP VAL (sqft) (No of Units) (Exp/Br) (per sqft) (per sqft) Cliffe Industrial Estate, Lewes nov-17 Under Offer c. 23,000,000 c.5.20% 190, / Crown Business Centre, Horton Road, West Drayton nov-17 Completed 19,339, % 69,214 14(10) 5.00/ SG1, Cockerall Close, Stevenage nov-17 Under Offer 13,366, % 79,799 6(5) 5.10/ Odhams Trading Estate, Watford oct-17 Completed 25,650, % 125,476 6 (7) 6.00 (3.80) Ashford Industrial Estate, Ashford, Middlesex Aug-17 Completed 12,900, % 62,010 10(9) 8.50/ Carvers Trading Estate, Southampton Road, Ringwood Aug-17 Completed 7,060, % 51,346 14(12) 6.20/ Alfreds Way Industrial Estate, Alfreds Way, Barking Jul-17 Completed 12,000, % 56,274 9(9) 4.70/ Units 2-6, King George Close, Romford Jul-17 Completed 5,685, % 34,464 5(2) 6.20/ Riverside Business Park, Guildford Jun-17 Completed 11,000, % 47,814 7(8) 4.30/ Orbital One, Orbital Park, Ashford, Kent Jun-17 Completed 6,550, % 70,299 2(2) 8.34/ Units A-C Boundary Park, Hemel Hempstead Jun-17 Completed 14,096, % 75,611 3(3) 9.70/

11 11 EPC Proposal FURTHER INFORMATION A full set of Energy Performance Certificates (EPC s) are available upon request. VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be structured as a Transfer of a Going Concern. We are inviting offers in excess of 11,720,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 5.50% allowing for standard purchaser s costs of 6.71%. This reflects a capital value figure of 153 per sqft. Should you require further information or would like to arrange a viewing, please contact: Chris Dickin: chris.dickin@claystreet.co.uk Rob Atkins: rob.atkins@claystreet.co.uk George Freeman: george.freeman@claystreet.co.uk Telephone: DATAROOM: Gowling WLG are hosting the secure dataroom to support the sale. Access details can be provided by Clay Street upon request. SUBJECT TO CONTRACT Burnt Ash Trade Park forms part of the Quarry Wood Portfolio. PROPERTY BURNT ASH TRADE PARK AREA (sqft) 76,397 RENT (per annum) 687,694 WAULT (to exp.) NIY CAP VAL PRICING % ,720,000 The Quarry Wood Portfolio comprises 2 multi let industrial estates and 2 single let industrial warehouse assets. The portfolio is available as a whole or in individual parts. INDUSTRIAL ESTATE HERMES PARCELNET, LOOMIS, LAKE ROAD QUARRY WOOD PORTFOLIO 57,016 48,376 9, , , ,000 81,750 1,430, % 5.50% 6.50% 5.60% ,040,000 4,950,000 1,190,000 23,900,000 BURNT ASH TRADE PARK INDUSTRIAL ESTATE HERMES PARCELNET, LOOMIS, LAKE ROAD IMPORTANT INFORMATION: 1. No description or information given by Clay Street Ltd whether or not in these Particulars and whether written or verbal ( information ) about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Clay Street Ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.these matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: november 2017