Prime reversionary East Midlands logistics investment opportunity ALLOGA UK LTD AMBER PARK 1 BERRISTOW LANE SOUTH NORMANTON DE55 2FH

Prime reversionary East Midlands logistics investment opportunity ALLOGA UK LTD AMBER PARK 1 BERRISTOW LANE SOUTH NORMANTON DE55 2FH

ALLOGA UK LTD Amber Park 1 Berristow Lane South Normanton DE55 2FH 2 PRIME REVERSIONARY EAST MIDLANDS LOGISTICS INVESTMENT OPPORTUNITY Normanton Brook Rd Alloga Berristow Ln MacArthur Glen Retail Outlet Village Alloga Radius Systems Radius Systems Alliance Healthcare XPO Logistics North to M1 Junction 29 M1 South to M1 Junction 28/ Investment Summary Location Prime distribution warehouse located within a strategic and prominent location on Amber Park just off Junction 28 of the M1 Motorway; Modern distribution facility totalling 208,055 sq ft; Let to Alloga UK Limited (Company Number: 03169255), who are the market leader in healthcare pre-wholesaling and benefit from an excellent covenant strength of 4A1 (D&B), indicating minimum risk of business failure; Tenant has critical mass at South Normanton, occupying over 1m sq ft of accommodation across six buildings at Castlewood Business Park and Amber Park; Let on a new FRI lease from practical completion of the roof works (estimated July 2017), for a term of 10 years, with a tenant only break option on the fifth anniversary of the term (subject to a break penalty of 552,600); Low initial contracted rent of 921,000 ( 4.43 per sq ft); Freehold investment; The subject property plays a central role for the tenant s operations, providing office headquarters for the business, and provides a principal storage facility for their fulfilment process; We are instructed to seek offers in excess of 14,380,000 subject to contract and exclusive of VAT, which reflects a net initial yield of 6.00% and a low capital value of 69 per sq ft. This assumes purchasers costs of 6.73%. Amber Park occupies a strategic location just off Junction 28 of the M1 on the east side of the Motorway at Sutton in Ashfield. The location benefits from excellent road communications as it lies at the intersection of the M1 motorway and the trunk road. The provides direct access westbound to Derby, Burton on Trent, Birmingham and the South West; and Mansfield to the east. Amber Park is located sitting between the key centres of Nottingham 14 miles to the south, Derby 16 miles to the south west, and Sheffield 20 miles to the north. East Midlands Airport is conveniently located 22 miles to the south, adjacent to Junction 24 of the M1 motorway. The airport provides fights to more than 90 destinations worldwide and handles more than 4.5 million passengers a year. East Midlands Airport is the UK s busiest pure cargo airport and second only to Heathrow. It is the home to a number of leading freight operators including DHL, TNT, UPS and Royal Mail.

3 Hilcote B6046 B6027 SHEFFIELD M1 M1 South Normanton Normanton Brook Rd Berristow Ln Castlewood Business Park East Midlands Designer Outlet A515 A619 Chesterfield J29 Matlock A61 Alfreton J28 A6 Belper A52 DERBY Shirebrook A614 Mansfield A617 A60 J27 Hucknall A46 J26 J25 Beeston NOTTINGHAM A1 B6019 J28 Barrow upon Trent A50 East Midlands Airport A42 J24 J23a M1 A46 Loughborough Situation The property is prominently situated on Berristow Lane, the main arterial road through Amber Park, which forms one of Derbyshire s key established industrial locations, along with the neighbouring Castlewood Business Park. Access to Amber Park is provided from the Mansfield Road, connecting with Junction 28 of the M1 Motorway within one mile to the south west. The MacArthur Glen East Midlands Designer outlet is located a short distance from the property on the junction of the B6046 and. The 140,000 sq ft 70 store scheme includes brands such as Nike, Adidas, Levis and M&S. Destination Miles Km Road M1 Motorway (J28) 0.9 1.5 City Nottingham 14 22.5 Derby 16 26 Sheffield 20 32 Birmingham 61 98 Air East Midlands Airport 22 35 The situation of the property suits Alloga UK Limited well due to its excellent access to the UK motorway network via Junction 28 of the M1 Motorway, along with the quality of the available local employee skills. Nearby industrial occupiers include Co-operative Food, Parker Knoll, Diversey and TDG.

ALLOGA UK LTD Amber Park 1 Berristow Lane South Normanton DE55 2FH 4 PRIME REVERSIONARY EAST MIDLANDS LOGISTICS INVESTMENT OPPORTUNITY Description Site The property is a 208,055 sq ft modern distribution warehouse completed in 1997. The warehouse is of steel portal frame construction, with profile steel clad elevations. There is a three storey office to the rear of the property. The building benefits from the following specification: 48 metre self-contained yard 10 Dock level access loading doors 4 Level Access loading doors 11.8 metre eaves height c.250 car parking spaces 20 trailer parking with 7 further HGV spaces The property has substantial tenant fit out, including a high security vault and chilled areas, which are to be fully reinstated at lease expiry. The property will also benefit from a new roof, which is currently under construction, and is due to complete in July 2017. The new roof is being replaced due to the strict requirements of the tenant s operations. Full construction warranties will be made available to the purchaser. The property occupies a site of approximately 12.96 acres (5.24 ha) with a low site density of 37%. Accommodation The property has been measured on a Gross Internal Area basis in accordance with the RICS Property Measurement (1st edition), and provides the following approximate areas: Description sq m sq ft Warehouse & Office 18,551 199,681 First Floor offices 389 4,187 Second floor offices 389 4,187 Total 19,329 208,055 48m

5 Tenure The property is held on a freehold basis. Tenancy The property is currently let in its entirety to Alloga UK Limited (Company number: 03169255), who have been in occupation of the building since it was built in 1997. Alloga UK Limited have entered into a new reversionary agreement for lease on full repairing and insuring terms for a term of 10 years from practical completion of the roof works (estimated July 2017). There is a tenant only break option on the fifth anniversary of the term, subject to 6 months notice, providing 5 years unexpired term certain to break. The tenant is obliged to pay a capital sum of 552,600 if the break option is exercised. The new contracted rent is 921,000 per annum ( 4.43 per sq ft). The rent benefits from an upwards only rent review on the 5th anniversary of the term. There is no rent free period at the commencement of the new lease.

ALLOGA UK LTD Amber Park 1 Berristow Lane South Normanton DE55 2FH 6 PRIME REVERSIONARY EAST MIDLANDS LOGISTICS INVESTMENT OPPORTUNITY Covenant Alloga UK Limited (Company number: 03169255) ( Alloga UK ) is a pre-wholesaling and contract logistics company, with a client list including 20 of the 50 largest blue-chip pharmaceutical companies in the UK, and is the market leader in healthcare pre-wholesaling within the UK. Alloga UK is one of only three specialist pharma prewholesalers in the UK, and has experienced significant growth over the last five years. Today, the company employs 850 employees and has six warehouse facilities, all located in South Normanton, Derbyshire, from which Alloga UK distributes globally. The company is a member of Walgreens Boots Alliance, which is the first global pharmacy-led, health and wellbeing enterprise in the world, employing over 400,000 people across 25 countries, and is the largest retail pharmacy, health and daily living destination in the USA and Europe, and is: The global leader in pharmacy-led, health and wellbeing retail with over 13,200 stores in 11 countries One of the largest global pharmaceutical wholesale and distribution networks with over 390 distribution centres delivering to more than 230,000+ pharmacies, doctors, health centres and hospitals each year in 20 countries One of the world s largest purchasers of prescription drugs and many other health and wellbeing products. THE PHARMACEUTICAL PRE-WHOLESALE MARKET The UK pharmaceuticals market is a highly regulated market, where the stock must be stored under licensed conditions. Furthermore, there are strict regulations that determine the temperature range, and security provisions that certain products must be stored at. Alloga UK is a sophisticated and complex business operating a seamless fulfilment chain of 6 buildings in South Normanton. Due to the sensitive nature of many of the products being handled, Alloga UK have made several investment commitments to the buildings they occupy and would find it both expensive and technically difficult to simply move to a standard logistics unit. ALLOGA UK ACCREDITATION MHRA (Medicines and Healthcare products Regulatory Agency) and Home Office-approved and GDP- compliant, Alloga UK s extensive list of accreditations and licences allows Alloga UK to offer a comprehensive service portfolio designed to optimise client supply chains. The company is also ISO accredited for ISO 9001: 2008 Quality Management Systems, ISO 14001: 2004 Environmental Management Systems, and most recently ISO 22301: 2012 Societal Security - Business Continuity. Alloga UK have a Dun & Bradstreet rating of 4A1, indicating a minimum risk of business failure. The company has produced the following headline figures over the past 3 years demonstrating impressive and consistent sales growth: 31 Aug 15 30 Sep 14 30 Sep 13 Sales Turnover 59,496,000 55,760,000 50,018,000 Pre-Tax Profit 14,677,000 14,269,000 12,438,000 Tangible Net Worth 19,240,000 18,636,000 22,551,000

7 Occupational Market Commentary In the UK, overall, occupational demand for modern and well located logistics facilities remains strong. This is principally being driven by the response to changing consumer shopping patterns and the increased demand for new and expanding e-commerce and discount retailing platforms, as well as a resilience in UK manufacturing particularly in Automotive, Aviation and Pharmaceutical industries. The East Midlands as a whole continues to be one of the UK s strongest performing logistics markets with high levels of take-up and historically low availability driving strong rental growth over the last three years. The following rental comparables below demonstrate rental levels in the immediate location, but wider East Midlands rents are now 6.25-6.50 per sq ft. Address Tenant Size (sq ft) Rent (psf) Term Date Castlewood Business Park, South Normanton Alloga 219,954 4.75 20 (15 TOB) Feb 2016 Castlewood Business Park, South Normanton Parker Knoll 99,201 5.30 20 (15 TOB) Nov 2015 Investment Market Commentary The property presents a modern, institutionally specified and prominently situated logistics unit, let to a strong tenant with good prospects for rental growth. The tenant is wedded to South Normanton as a location due to its proximity to the national motorway network, the robust local employment pool, and the five further warehouses which the tenant occupies in the immediate vicinity. The sector remains competitive for an opportunity of this calibre as set out below: Date Jan 17 Dec 16 Dec 16 Dec 16 Address 5100 Cross Point Business Park, Coventry, CV2 2SZ Wakefield Europort, Express Way, Normanton, WF6 2TZ G2, Grange Park, Northampton NN3 2AY Unit 1, Banbury Cross, Southam Road, Banbury, OX16 2SN Size (sq ft) 146,701 119,997 208,999 238,208 Nov 16 Cosford Lane, Valley Park, Rugby 145,989 Nov 16 Amber Park, South Normanton, Derbyshire, DE55 2DT 187,014 Aug 16 Union Square, Trafford 175,000 Aug 16 Kingston Park, Peterborough 549,787 Aug 16 Trafford Park, Manchester 311,602 Passing Rent (pa) 862,324 5.88 psf 572,660 4.77 psf 1,203,042 5.76 psf 1,222,104 5.13 psf 868,634 5.95 psf 835,000 4.46 psf 1,041,250 5.95 psf 2,474,041 4.50 psf 1,402,209 4.50 psf Unexp Term (years) Tenant Price Initial Yield 8 TNT 14,980,000 5.40% 6.25 One Stop 9,760,000 5.50% 10 10 Yusen Logistics The Entertainer 20,500,000 5.50% 21,300,000 5.37% 5 DHL 15,000,000 5.43% 8 Alloga (UK) Ltd 13,600,000 5.75% 10 Amazon 19,250,000 5.05% 8.7 Amazon 42,900,000 5.60% 1.75 Kelloggs 23,500,000 5.90%

ALLOGA UK LTD Amber Park 1 Berristow Lane South Normanton DE55 2FH 8 PRIME REVERSIONARY EAST MIDLANDS LOGISTICS INVESTMENT OPPORTUNITY VAT The transaction will be considered as a Transfer of a Going Concern (TOGC). Energy Performance Certificate A copy of the Energy Performace Certificate is available upon request. Website Access Details for this opportunity can be downloaded from www.kimmre.com/sales. Transaction Structure It is envisaged that, due to the ongoing works to the roof, the transaction will be subject to a conditional exchange, to be completed on commencement of the new lease. Proposal We are instructed to seek offers in excess of 14,380,000, subject to contract and exclusive of VAT, which reflects a net initial yield of 6.00% and a low capital value of 69 per sq ft. This assumes purchasers costs of 6.73%. Contact Details For further information, or to arrange an inspection of the property, please contact either: Matthew McGrail MRICS e: matthew.mcgrail@kimmre.com t: +44 (0) 20 7952 6102 m: +44 (0) 7870 555725 Mike Needham MRICS e: mike.needham@kimmre.com t: +44 (0) 20 7952 6295 m: +44 (0) 7903 136 242 DISCLAIMER Kimmeridge Real Estate Ltd on its own behalf and for vendors or lessors of this property, whose agent it is, gives 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 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. Publication Date: March 2017. carve-design.co.uk 12813