PRIME DISTRIBUTION WAREHOUSE INVESTMENT BURNBRAE DRIVE PAISLEY PA3 3BW

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1 D R AF T BURNBRAE DRIVE PAISLEY PA3 3BW

2 Investment Summary Single let industrial unit in an established distribution location. Located just 8 miles west of Glasgow city centre and 1.5 miles from Glasgow Airport. Purpose built, high specification warehouse and storage facility extending to 12, sq m (132,168 sq ft). Let to Agility Logistics Limited (4A1 Dun & Bradstreet rating) on a full repairing and insuring lease expiring 21st December Current passing rent of 727, per annum ( 5.51 per sq ft). Absolute Ownership (Scottish equivalent of English Freehold). Offers in excess of 7,410,000 (Seven Million, Four Hundred and Ten Thousand Pounds Sterling), subject to contract and exclusive of VAT are invited for the Absolute Ownership in the property. This represents an attractive net initial yield of 9.25%, after allowing for purchaser s costs including LBTT, and a low capital value of per sq ft.

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4 Location The property is located within Phoenix Business Park in Linwood, 8 miles west of Glasgow city centre and 2.5 miles from Paisley. M8 MOTORWAY GLASGOW AIRPORT The business park lies on the western side of the A761 which links Paisley to Greenock and Port Glasgow. This area consists mainly of office, industrial and distribution facilities. The subject property is surrounded by major industrial occupiers including Menzies Distribution, TNT, DHL, Bunzl and WH Malcolm Ltd. AF R SHOWCASE CINEMA PHOENIX RETAIL PARK D PHOENIX LEISURE T The park is complemented on the eastern side of the A761 by a retail and leisure scheme. This comprises an Asda supermarket, a 140,000 sq ft retail park, restaurants and a Showcase cinema. WH MALCOLM RAIL TERMINAL

5 Glasgow Linwood Main Rail Network Routes to Ports Inverness 7 DAYS Grangemouth Edinburgh Mossend 7 DAYS MONDAY TO FRIDAY Aberdeen Liverpool Manchester Birmingham Bristol DIRFT Southampton A78 Felixstowe Troon - Larne Tilbury London Thamesport Haulage contracts in Europe A737 BEITH DALRY IRVINE A78 A77 A82 DUMBARTON GLASGOW AIRPORT LINWOOD PRESTWICK AIRPORT AYR M8 PAISLEY A70 M77 KILMARNOCK A76 M77 A807 A879 A726 MAUCHLINE A71 M80 M73 GLASGOW DARVEL A803 EAST KILBRIDE CUMNOCK A803 B819 Transport DENNY BELLSHILL M80 A73 M9 DOUGLAS The subject property benefits from good connectivity to Scotland s motorway network. The nearby Linclive Interchange on the A737 provides direct access to the M8 motorway, allowing transport across and outwith Scotland s Central Belt. The M8 links to the M74, providing onward connections to the south and the national motorway network. Glasgow International Airport is located 1.5 miles north west of the development and is one of Scotland s busiest airports. Freight distribution has increased over the past 5 years to reach over 15,000 tonnes in 2014, while passenger numbers in the same year were over 7.7 million. GRANGEMOUTH QUEENSFERRY CARLUKE M74 M8 A71 A721 A702 LIVINGSTON DUNFERMLINE A702 EDINBURGH AIRPORT A72 EDINBURGH A720 PEEBLES The subject property is adjacent to a rail terminal operated by WH Malcolm. This provides daily and overnight freight transport services between five UK depots. The nearby Linwood depot is connected to Grangemouth, the UK s largest feeder port, with throughput of 150,000 containers per year. This local transport infrastructure has contributed to Phoenix Business Park s popularity as a location for distribution warehousing. A1

6 Description The subjects comprise a purpose built industrial/distribution unit constructed over two phases in 1997 and Ancillary office accommodation is arranged over two floors and was extended in The property was built to bonded standards and is of steel portal frame construction, with a double skin roof of insulated profiled cladding and reinforced concrete floor. The property benefits from the following features: Clear internal eaves height of 7.0 metres. 8 loading doors, including 4 floor dock levellers. Two steel frame canopies creating an external loading bay. Double height glazed reception area with staircase and passenger lift. Modern office/staff accommodation over ground and first floors. Secure site with 24 hour security and CCTV cameras. Security gatehouse and barrier control vehicle access. Site area of 2.5 hectares (6.4 acres). Within the site there is a customer and staff car park located adjacent to the north elevation and further staff car parking located adjacent to the west elevation.

7 Accommodation The property has been measured on a gross internal area basis in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provides the following approximate areas: Description GIA Sq M GIA Sq Ft Warehouse 10, ,720 Offices 2, ,448 Total 12, ,168 Tenure Absolute Ownership (Scottish equivalent of English Freehold).

8 T AF Tenant Information The property is let to Agility Logistics Limited on a Full Repairing and Insuring lease for a term of 20 years from 21st December 2000, expiring on 21st December Agility Logistics Limited is part of Agility s global integrated logistics business. This service line provides supply chain management and solutions, with a network of over 1,000 service centres worldwide. The company is a Top 15 industry leader following acquisition of over 40 logistics brands globally. Agility operates in 100 countries with over 20,000 employees and annual revenues of $4.85 billion. The current rent passing is 727, per annum excluding VAT ( 5.51 per sq ft). Agility use the Linwood distribution centre for the purposes of freight forwarding primarily by sea and land. They provide a pick and pack service for their national and international clients in the I.T. and workwear businesses. D The lease is subject to 5 yearly, upward only rent reviews. At rent review, the landlord is entitled to elect to review the property either as a whole or as two units. R Tenancy The property has a capacity for 13,000 pallets. Agility Logistics Limited (Reg Number: ) has a Dun & Bradstreet rating of 4A1, representing a minimum risk of business failure. Year Ending Turnover 31st December 2012 (000s) 31st December 2013 (000s) 31st December 2014 (000s) 228, , ,171 Pre-Tax profit 3,796 2,594 3,734 Total Net Worth 12,126 12,275 15,503

9 Scottish Industrial Market The Scottish industrial market has seen good levels of activity over the past 18 months and has continued to attract a range of property investors. Recent comparable single let industrial investment transactions are highlighted in the table below. Address Date Purchaser Price NIY Capital Value PSF Comments M8 Central, Newhouse Oct 2015 Threadneedle 4.15m 8.04% Let to UPS Limited until January Industrial Estate, Newhouse 2 Campsie Drive, Glasgow June 2015 Custodian REIT Plc 1.20m 7.53% Let to DHL Express (UK) Ltd until February Airport, Paisley 21 Coddington Crescent, Eurocentral May 2015 Exeter Property Group 7.65m 4.53% Let to Wincanton UK until January 2018 with tenant break option at January Westburn Drive, Cambuslang Apr 2015 Custodian REIT Plc 2.14m 8.75% Let to Brenntag (UK) Limited until April Condor Glen, Motherwell Sep 2014 Gatehouse Bank Plc/Sidra Capital Central Point, Logistics Park, Eurocentral 24.21m 6.75% Let to TDG until May Rent reviews in 2019 and May 2014 Mayfair Capital 16.10m 7.65% Four high quality distribution units let to Wincanton, TRAC, Mentholatum and ACS, 12.1 years to expiry and 4.6 years to breaks. Source: Cushman & Wakefield

10 VAT The property has been elected for VAT however it is anticipated the sale will be dealt with as a Transfer of a Going Concern (TOGC) in which event VAT, which otherwise would be due, will not be payable on the purchase price. EPC The property has an EPC rating of B+. A full EPC can be provided upon request. Proposal We are instructed to seek offers in excess of 7,410,000 (Seven Million, Four Hundred and Ten Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership in the property. A purchase at this level would represent an attractive net initial yield of 9.25%, after allowing for purchaser s costs based on Land & Buildings Transaction Tax. Steven Newlands Telephone: steven.newlands@cushwake.com Calum Cowe Telephone: calum.cowe@cushwake.com Natasha Ross Telephone: natasha.ross@cushwake.com Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give 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 b 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 contamination. Interested parties are advised to carry out their own investigations if required. Date of publication October 2015.