POLYGON FOURTH WAY, AVONMOUTH, BRISTOL BS11 8DP MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY

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1 POLYGON FOURTH WAY, AVONMOUTH, BRISTOL BS11 8DP MULTILET INDUSTRIAL INVESTMENT OPPORTUNITY

2 INVESTMENT SUMMARY Located in Avonmouth, one of the South West region s most established industrial/distribution locations Two terraces of 11 industrial units built in the 1980s, totalling 2,134.61m² (22,977 ft²) GIA Long leasehold for 125 years from 1 January 1985 at 13,800 per annum Multilet to 8 tenants providing a spread of income Low site coverage of only 34% AWULT of 3.24 years to expiry and 2.00 years to break Rent of 176,314 per annum which equates to 7.67 per sq ft Opportunities to add value through letting, restructuring and development Offers in excess of 2,000,000 (two million pounds) reflecting an initial yield of 7.65% and a reversionary yield of 8.14%

3 ROYAL PORTBURY DOCK AVONMOUTH DOCK BRISTOL CHANNEL POLYGON Jct 18A RICHARD AUSTIN ALLOYS Jct 18 NISBETS BUDGET GREETING CARDS ROYAL EDWARD DOCK NEW ACCESS RD KINGS WESTON LANE ACCESS 18 ANTALIS ASDA ACCOLADE WINES M49 CULINA KUEHNE & NAGEL POPLAR PARK YANKEE CANDLE AVON & SOMERSET POLICE HONDA SEVERNSIDE TRADING ESTATE ROBERT WISEMAN PCL COOP HONDA JOHN LEWIS

4 LOCATION Bristol is the largest administrative and commercial centre in the South West of England. The city is located approximately 118 miles west of London, 80 miles south of Birmingham and 44 miles east of Cardiff. Bristol currently has a resident population of approximately 550,000 persons and a catchment population of in excess of one million. Outside of London, the West of England has the largest proportion of highly qualified workers in the UK. Bristol is the economic hub of the south west region with an excellent labour force, educational resources and connectivity. Bristol is the most significant distribution location in the south west region providing direct access to 80% of the UK within 4.5 hours. The city benefits from excellent road, rail, sea and airport transportation links being situated adjacent to the intersection of the M4,, M48 and M49 motorways. Bristol is considered an important industrial location and distribution centre acting as a gateway to the South West and Wales whilst providing comprehensive links to the Midlands and London. Bristol International Airport is located approximately 9 miles south of the city, accessed via the A38. Additionally Bristol has two mainline railway stations, Bristol Temple Meads and Bristol Parkway, with a journey time to London Paddington of approximately 90 minutes which is set to improve with the electrification of the line in AVONMOUTH Avonmouth is an established commercial area around the historic Avonmouth docks on the north bank of the River Avon. It is situated 7 miles west of Bristol City Centre and is connected to Bristol via the A4 Portway trunk road. Avonmouth is 120 miles west of London, 113 miles southwest of Birmingham and 47 miles east of Cardiff. Avonmouth comprises three docks; Royal Portbury, Avonmouth and Royal Edward extending to some 2,600 acres of docks and surrounding industrial uses and benefitting from a dedicated rail freight terminal. The Bristol Port Company s plans for the development of a 600 million Deep Sea Container Terminal at Avonmouth has been approved by the Government, which would double the capacity of the docks over the next 10 years. Avonmouth has historically comprised a number of traditional industrial uses associated with the Port however the area is currently going through a transformation with the development of a large concentration of distribution and storage facilities. With its strategic position close to both the M4 and motorways, Avonmouth is becoming one of the South West s major distribution locations. A48 M48 River Severn Portskewett M48 M4 Pilning Alveston A38 POLYGON Bristol Channel AVONMOUTH Severn Beach M49 Cribbs Causeway A38 M4 A432 Winterbourne Portishead Jct 18A A369 Jct 18 A4 Filton A4018 B4469 BRISTOL A420 Mangotsfield A4174 Kingswood A420 M4

5 SITUATION The Polygon is well situated on Fourth Way, within an established industrial location. The estate is situated in close proximity to Junction 18A of the motorway which links into the wider motorway network. Nearby occupiers include Renault Trucks, Nisbets, Davies Turner & Co, Flo Gas, Subway, Northgate and Scania. DESCRIPTION The property comprises two terraces of 11 units constructed in the mid1980s. The units are of steel portal frame construction with brick and block cavity walls surmounted with profile metal cladding under a pitched insulated roof with translucent roof panels. Each unit has an eaves height of approximately 18ft and is accessed via roller shutter doors. Each unit also benefits from a tarmacadam forecourt with two to three car parking spaces, and there is a separate parking area on the estate providing a further 18 spaces. This area provides potential for further development. AVONMOUTH Royal Edward Docks Avonmouth Docks St Andrew s Road Kings Weston Lane ASDA Severnside Trading Estate Road Merebank St Andrews Trading Estate St Brendans Trading Estate Jct18A A4 Coop Long Cr oss St Martins Industrial Estate Jct18 M49 POLYGON M49 Severn Road Long Cross Kings Weston Road C ranford High Sylvan Way

6 ACCOMMODATION The property provides a gross internal area of 2, m² (22,977 ft²) on a site of hectares (1.547 acres). This provides a low site coverage of approximately 34%. The individual breakdown of the floor areas of each unit is set out on the attached Tenancy Schedule. TENURE TENANCIES The entire property is let on 9 full repairing and insuring leases as set out in the attached Tenancy Schedule. The property produces a current rental income of 176,314 per annum exclusive, which equates to 7.67 per sq ft overall. Following deduction of the head rent, the net rental income is 162,514 per annum. The property has an AWULT of 3.24 years to expiry and 2.00 years to break. The property is held on a lease granted by the City Council of Bristol for 125 years from 1 January The current rent is 13,800 per annum, with five yearly rent reviews to the higher of the passing rent or 10.5% of the rental value of the property. The next review is on 1 January Unit Tenant Area sq ft Passing Rent Rent psf Lease Start Lease Expiry Break Option Comments Unit 1 Highadmit Projects Ltd 1,863 15, /06/ /06/ /06/2019 Outside the Act. 3 month rent deposit Unit 2 Roy Ireland Espresso Services 2,234 18, /04/ /04/ /04/ yearly reviews. 4 month rent deposit Unit 3 Vacant 1,899 15, month rent, rates and service charge guarantee Unit 4 PlantEx Ingredients Ltd 1,916 14, /05/ /04/ year lease extension agreed at 16,290 ( 8.50 psf). Unit 5 PlantEx Ingredients Ltd 1,914 12, /05/ /04/ year lease extension agreed at 16,290 ( 8.50 psf). Schedule of Condition. Unit 6a GR Fastners & Engineering 2016 break not exercised. 2,382 16, /03/ /03/2018 Supplies Ltd Schedule of Condition. Unit 6b Sanoh UK Manufacturing Limited 2,360 17, /01/ /01/ /01/2018 Unit 7 Vacant 2,114 16, month rent, rates and service charge guarantee. Unit 8 Poolec Automotive Products Limited 2,130 15, /12/ /11/ /12/2017 Unit 9 BDA Nightexpress Limited 2,145 17, /02/ /02/ /02/2019 Unit 10 Arrow Radiators (Avonmouth) Limited 2,110 15, /12/ /11/ /12/2017 Total 22, , The property has considerable reversionary potential and we are of the opinion that the ERV of the estate is 186,662 per annum, based on per sq ft overall. The recent lettings of Unit 2 and Unit 9 at roughly 8.00 per sq ft, and the deals recently completed on unit 1 at 8.45 per sq ft and 4/5 at 8.50 psf, all reinforce the significant reversionary potential.

7 TENANT S COVENANT Unit No Tenant Year To Turnover s PreTax Profit (Loss) Shareholder Funds Passing Rent as % of Income CreditSafe Rating Units 1 Highadmit Projects Ltd 31/12/ /12/ /12/ , , , % 79 Units 4 & 5 PlantEx Ingredients Ltd 31/03/ /03/ /03/ , , , % 49 Unit 6a GR Fastenings & Engineering Supplies Ltd 30/04/ /04/ /04/ , , , % 84 Unit 6b Sanoh UK Manufacturing Ltd 31/03/ /03/ /03/ ,194,000 26,571,000 26,385,000 3,522,000 3,728,000 2,304,000 8,022,000 7,230,000 4,364, % 92 Unit 8 Poolec Automotive Products Ltd 31/05/ /05/ /05/ , ,077 99, % 66 Unit 9 BDA Nightexpress Ltd 31/12/ /12/ /12/ ,518 2,569,175 2,451,306 18,137 86,153 46, , , , % 90 Unit 10 Arrow Radiators (Avonmouth) Ltd 31/10/ /10/ /10/ , , , % 75

8 INDUSTRIAL MARKET The industrial takeup in Bristol area reached prerecessionary levels in 2015 and in Bristol alone there were 200 transactions, totaling 2,950,000 sq ft. There has been a significant increase in midscale requirements in the 25,000 75,000 sq ft (2,323 6,968 sq m) size. The limited availability has resulted in speculative activity evidenced by Hermes acquisition of 43,000 sq ft (3,995 sq m) at St Modwen s Access 18 in Avonmouth. Other significant deals include Amazon s leasehold acquisition of the remaining 335,000 sq ft (31,123 sq m) at Crossflow, Avonmouth and Batt Cables acquisition of 175,000 sq ft (16,258 sq m) at Steel Point, Yate. There is a shortage of good quality stock and modern space and industrial supply has been declining since 2011, reaching its lowest level in 12 years in 2015 at 1,250,000 sq ft. Speculative industrial/distribution starts are limited and include Chancerygate s Apollo Park scheme at Yate (prelet to Saddleback at 8ft), St Modwen in Avonmouth, and Horizon 38 at the former Rolls Royce site in Filton, There is no new space immediately available and we anticipate that rentals of circa 8+ psf ( psm) could be achieved for accommodation below 10,000 sq ft (929 sq m). Rents for modern and midrange buildings have increased to 7 psf ( 75 psm). Good quality secondhand buildings command rents of around psf ( psm). With the reduced levels of good quality available stock, rental incentives for prime space have reduced significantly with lease durations extending. Property Date Size (Sq ft) Capital Value NIY Orpen Park, Almondsbury, Bristol Clark Centre, Marsh Barton, Exeter Units 5, 6A & 6B Hawkley Drive, Bristol Distribution Park, Almondsbury, Bristol Under offer 78,495 Q. 7,215, % Mar16 22,629 1,116, % Mar16 125,514 11,210, % Liberty Industrial Park, Bristol Feb16 131,818 7,568, % EPC EPC s are available upon request. VAT The property is elected for VAT purposes and therefore it is anticipated that the sale will be treated as a transfer of a going concern. PROPOSAL Our client is seeking offers in excess of 2,000,000 (Two Million Pounds) reflecting a net initial yield of 7.65% and a reversionary yield of 8.14%, after deducting costs of acquisition of 6.27%. INVESTMENT CONSIDERATIONS Well located industrial estate in Avonmouth Small unit scheme comprising 11 units in two terraces. Low site coverage of only 34%. Strong reversionary values with recent lettings at over 8 per sq ft Potential to add value through letting, regearing and development Attractive initial yield of 7.65% rising to 8.14% upon ERV Gallagher Trade Park, Bristol Dec15 61,735 12,093, % Beeches Industrial Estate, Yate Dec15 327,174 27,250, % Magellen Court, Cardiff Sep15 29,034 2,350, % Chippenham Trade Park May15 42,291 2,750, %

9 FURTHER INFORMATION For further information, please contact the sole agent; Oliver Paine JLL 40 Berkeley Square BRISTOL BS8 1HU Simon Bennett JLL 40 Berkeley Square BRISTOL BS8 1HU Michael Aquadro JLL 40 Berkeley Square BRISTOL BS8 1HU Justin Millett JLL One Kingsway CARDIFF CF10 3AN Tel: +44 (0) Mobile: Tel: +44 (0) Mobile: Tel: +44 (0) Mobile: Tel: +44 (0) Mobile: MISREPRESENTATION ACT COPYRIGHT DISCLAIMER JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that: a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. May 2016 Jones Lang LaSalle IP, Inc. All rights reserved.