WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY

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1 Sywell Road, Park Farm Industrial Estate, Lotus Lightweight Structures Ltd enter

2 investment summary Located close to the M1 in the heart of the East Midlands core manufacturing and distribution area. Situated on the A45 facilitating direct access to the national motorway network. Well specified accommodation offering 5, sq m (55,902 sq ft) of warehouse and office accommodation. Let to the internationally renowned automotive company Lotus (Lotus Lightweight Structures Ltd) for a term of 15 years from October 2014, with a mutual break option at 1 April 2022 providing an unexpired term of 6.2 years. The property is Lotus and Aston Martin s sole chassis anodising facility. The tenant has recently injected 200,000+ of investment in the plant. Current reversionary rent of 249,264 per annum ( 4.46 per sq ft), with fixed rental uplifts in 2019 and 2024 rising to 274,813. We are instructed to seek offers in excess of 2,770,000 (Two Million Seven Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this price reflects an attractive Net Initial Yield of 8.50% after deducting purchasers costs of 5.80% and equates to per sq ft overall. Attractive guaranteed reversionary yield of 8.93% in 2019, and 9.38% in 2024 via the stepped rental uplifts. investment summary aerial location site description accommodation tenancy covenant

3 the property investment summary aerial location site description accommodation tenancy covenant

4 A509 Sywell Road, Park Farm Industrial Estate, location Wellingborough is a major industrial and distribution centre located midway between London and Birmingham, approximately 12 miles north east of Northampton and the M1 motorway. Broughton Road A6 As well as benefitting from direct access to the M1 (via the A45), the town benefits from excellent communications via the A14, A6 and A1, facilitating access to the major regional centres of Coventry, Peterborough, Cambridge and Leicester, the East Coast ports, as well as the wider South East and Midlands. Wellingborough rail station provides direct services to London St Pancras International, with an average journey time of approximately 55 minutes, and Nottingham, with an average journey time of approximately 1 hour. Several rail freight terminals are located nearby, including Corby and Daventry International Rail Freight Terminal (DIRFT). The area is considered to be the UK s primary logistics location as its extensive road network - serving both the South East, Midlands and the North - and excellent labour supply make it attractive to distribution and warehouse operators. Park Farm Industrial Estate is Wellingborough s premier industrial and distribution location, extending to approximately 260 acres along the A509 Wellingborough by-pass, and therefore benefitting from swift and almost uninterrupted dual carriageway access to junction 15 of the M1. Other major distribution occupiers on the estate include DHL, House of Fraser, TNT, Booker, Cummins, LYK Logistics and Budgens. A456 M6 Nuneaton A444 M42 M1 A6 A14 A43 A43 A43 Redho use Road Highfield Roa d Pytchley Road the property Sywell RoadHardwick Road Park Farm Way A509 A5128 A509 Northern Way Station Road Wellingb orough Rd Sidegate Lane Thrapston Rd A6 Ditchford Road Mill Road B571 BIRMINGHAM A34 A41 A435 3A A46 4/7 M42 A452 2 A455 COVENTRY M40 A45 M6 M A423 A5 A425 Market Harborough Corby Oundle A6116 A14 A45 Kettering the property A14 A43 A6 M1 WELLINGBOROUGH A5123 A509 Rushden NORTHAMPTON A509 A6 16 A5076 Denton Ecton Lane A5400 Earls Ba rton Road Wilby Ro ad A450 0 B573 A45 A509 B573 Hardw ater Road Higham Road A509 B570 Woll aston Road B 569 B a B569 investment summary aerial location site description accommodation tenancy covenant B A45 Hinwick Ro ad Road

5 site The property extends to approximately 3.56 acres, as shown edged in red on the plan below, and provides a site cover of approximately 42%. investment summary aerial location site description accommodation tenancy covenant

6 description The property comprises a secure, self-contained warehouse constructed in the mid 1980 s, providing industrial and ancillary office accommodation totalling approximately 5, sq m (55,902 sq ft). The warehouse consists of a steel portal frame structure with a mix of composite panel / brick cladding, offering two level access and one dock level loading doors, and separate office accommodation to the front of the building. The warehouse benefits from a minimum clear eaves height of approximately 5.60 meters. More recently the over 200,000 of capital expenditure has been injected into the premises to improve operating systems and the installation of a new roof. The property benefits from a generous loading yard with HGV parking, and c60 dedicated car parking spaces to the front of the unit. The warehouse is the only automotive aluminium anodising facility in the UK manufacturing every Lotus and Aston Martin car chassis. The building has been extensively fitted out by the tenant during their time in occupation with continuous tecnology upgrades. investment summary aerial location site description accommodation tenancy covenant

7 accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following Gross Internal Areas: Sq m Sq ft Warehouse 4, ,517 Office ,385 Total 5, ,902 investment summary aerial location site description accommodation tenancy covenant

8 tenancy The property is let in its entirety to Lotus Lightweight Structures Limited on a Full Repairing and Insuring lease for a term of 15 years from 2 October 2014, with a mutual break option 1 April 2022 providing an unexpired term of 6 years and 2 months. The current rent passing is 249,264 per annum ( 4.46 per sq ft), rising to 261, ( 4.68 per sq ft) on 2 October 2019, and then 274, ( 4.92 per sq ft) on 2 October The occupational lease is guaranteed by Group Lotus PLC. investment summary aerial location site description accommodation tenancy covenant

9 Sywell Road, Park Farm Industrial Estate, covenant Lotus is a British manufacturer of famous sports and racing cars, and for the highly successful Team Lotus in Formula One. Lotus designs and builds race and production automobiles of light weight and fine handling characteristics, with facilities in the United Kingdom, United States, China, and Malaysia. The company was formed in 1952 by Colin Chapman. In 1959 The Lotus Group of Companies was formed, this was made up of Lotus Cars Limited and Lotus Components Limited, which focused on road cars and competition car production. The company found success on and off the road throughout the 50s s, 60s and 70s with several Formula One Championships and critical sales in the Elite, the Elan and the Europa which saw the British car maker teaming up with Ford. Later, success continued with the Lotus Esprit, which was to prove one of the company s longest lived and most iconic models. The Guarantor, Group Lotus Plc recently received an 83m investment by parent company Lotus Cars Ltd. This injection is for general operations throughout Group Lotus Plc which includes Lotus Lightweight Structures Ltd. The Lotus Lightweight Structures Ltd facility is vital to both their, and Aston Martin s operation as there is no other alternative in the UK. Their last 3 year accounts are set out below: The 80s saw an agreement between Lotus and Toyota to share intellectual property and applied expertise, and later the appointment of a new Chairman. In 1986, Group Lotus companies was sold to General Motors. GM later sold the company to Italian businessman Romano Artioli, who also owned Bugatti. Today, Lotus is owned by DRB-HICOM through its subsidiary Proton, a Malaysian car company listed on the Kuala Lumpur Stock Exchange. They acquired the company from former owner Romano Artioli in Lotus Lightweight Structures Ltd 31 Mar Mar Mar ,755,000 8,190,000 13,385,000-1,832,000-1,361,000-2,467,000-10,120,000-8,288,000-6,927,000 Turnover Pre Tax Profit Shareholders Funds In 2004 a strategic relationship was established between the now Lotus Lightweight Structures Ltd and Aston Martin to supply anodized chassis parts. The two companies worked jointly to construct an anodizing process specifically to address bonding strengths and quality. In 2009 Lotus signed a 10 year occupational lease for the facility at Wellingborough. In 2014 Lotus agreed to a new 15 year reversionary lease. Group Lotus PLC (Guarantor) 31 Mar 2015 Turnover As well as anodizing their own Lotus chassis, they continue to serve Aston Martin and BCW Engineering (supplier to Aston Martin). Both Lotus and Aston Martin are set to increase production throughout 2016 and thereafter to meet huge demand from growing overseas markets. Pre Tax Profit Shareholders Funds 31 Mar Mar ,000-2,120, ,104,000 91,750,000 9,066,000 11,186,000 Credit Safe score them 58/100, low risk. investment summary aerial location site description accommodation tenancy covenant

10 Lotus Lightweight Structures Ltd vat We understand the property has been opted to tax and it is therefore envisaged the transaction will be conducted as a Transfer of a Going Concern. proposal We are instructed to seek offers in excess of 2,770,000 (Two Million Seven Hundred and Seventy Thousand Pounds) subject to contract and exclusive of purchasers costs at 5.8%. A purchase at this level would reflect an attractive Net Initial Yield of 8.50% and a guaranteed reversionary yield of 8.93% in 2019 and 9.38% in This reflects a low capital value of per sq ft. epc The building has an EPC Rating of C71. viewing For more information or to arrange an inspection please contact: Gavin Quinn DD: M: E: gavin.quinn@gva.co.uk Mark Frampton DD: M: E: mark.frampton@gva.co.uk gva.co.uk/9578 Misrepresentation Act Unfair Contract Terms Act 1977 The Property Misdescriptions Act These particulars are issued without any responsibility on the part of the agents and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agents nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. February RB&Co investment summary aerial location site description accommodation tenancy covenant