BASINGSTOKE THE LODDON CENTRE, WADE ROAD BASINGSTOKE, RG24 8FL

PRIME FREEHOLD MULTI LET SOUTH EAST INDUSTRIAL ESTATE BASINGSTOKE THE LODDON CENTRE, WADE ROAD BASINGSTOKE, RG24 8FL

INVESTMENT SUMMARY Basingstoke, the largest town in Hampshire, is a thriving commercial area with excellent transport connections to both the M3/M4. The town has a well-established industrial market with a clear lack of stock coupled with robust occupier demand. Rare opportunity to acquire a prime freehold industrial estate on Daneshill Industrial Estate, a prime warehousing location in Basingstoke. Total floor area of 113,062 sq ft in 11 units with sizes ranging from 4,926 sq ft to 18,414 sq ft. Multi let to a combination of national and local tenants with lease expiries ranging from 2019 to 2036. AWULT of 3.5 years to break and 6.3 years to expiry. Two vacant units providing asset management opportunity in the short term. Total passing rent of 780,795 per annum (inclusive of guarantees and top ups) reflecting 6.91 per sq ft overall. We are instructed to seek offers in excess of 9,750,000 (Nine Million, Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of approximately 7.50% (including rental guarantees and top ups) after allowing for purchaser s costs of 6.69%. Low capital value per sq ft of 86. BASINGSTOKE THE LODDON CENTRE, WADE ROAD, BASINGSTOKE, RG24 8FL

LOCATION Basingstoke is a major commercial centre within the South East and the largest town within Hampshire. The town is strategically positioned approximately 48 miles (77 km) south west of London, 17 miles (27 km) south of Reading and 32 miles (51 km) north east of Southampton. The town has excellent transport connections being located adjacent junctions 6 and 7 of the M3, the main link between London and the South Coast. The M3 also links Basingstoke to the M25. The M4 motorway (junction 11) lies 15 miles (24 km) to the north via the. The and the provide direct routes to Reading and Newbury respectively. Basingstoke is served by regular train services to London Waterloo with a fastest journey time of 45 minutes. The town also benefits from regular services to Reading (18 minutes) and Southampton (22 minutes). Heathrow and Gatwick Airports are located 38 miles (61 km) to the north east and 62 miles (99 km) to the east respectively. M5 M32 Bristol A37 Shepton Mallet A371 A4 A39 Yate M4 A359 A303 M5 Bath A36 Stroud A4 A433 A350 A350 A350 A429 A36 A417 Chippenham Melksham Trowbridge Warminster A303 M4 A354 A429 Cirencester A419 A36 A40 Swindon 8 A436 Marlborough Amesbury Salisbury A436 A36 A303 Witney A420 Andover M4 A34 A34 M3 A34 A303 Winchester Eastleigh Oxford A4142 Abingdon Didcot Newbury A40 BASINGSTOKE M3 A31 M40 A418 Reading Alton A3 Aylesbury A31 A4010 High Wycombe M40 A272 A404 1 A413 Maidenhead Slough M4 Windsor Bracknell Camberley Farnborough A3 Haslemere M3 M25 M25 Woking Guildford A41 A272 M1 St Albans A3 A40 A4 Heathrow Airport M25 M1 A406 LONDON Epsom M25 Croydon Gatwick A24 Airport Crawley M23 Horsham A23 The town has a strong economy centred on banking, education, manufacturing, distribution and financial services. Major occupiers in the town include Sony, Adidas, De La Rue, Motorola and IBM. CARPENTERS DOWN SITUATION The Loddon Centre is located within the well-established Daneshill Industrial Estate, one of the largest estates in Basingstoke. POPLEY WAY ABBEY ROAD POPLEY WAY DANESHILL INDUSTRIAL ESTATE WADE ROAD GREAT BINFIELDS ROAD Junction 6 of the M3 is situated 1.6 miles (2.5 km) south of the property, which is easily accessed via the. The is also located immediately to the north enhancing connectivity to the surrounding area. Daneshill Industrial Estate forms a key part of Basingstoke s trade and industrial offer, housing national occupiers including Travis Perkins, Booker, Jewson, Boots, Basepoint Business Centre, Lidl and Mars Drinks amongst others. OAKRIDGE ROAD RINGWAY NORTH JEFFERSON ROA D S HAKESPEARE ROAD OAK RIDGE ROAD VIVIAN ROAD NORM HILL RINGWAY EAST FARADAY ROAD GRESLEY RD WADE ROAD STROUDLEY ROAD GREAT BINFIELDS ROAD SUBJECT PROPERTY SHERBORNE RD CHAPEL HILL VYNE ROAD NORDE N C L BASINGSTOKE CHURCHILL WAY EAST QUEEN MARY AVENUE BASING VIEW NORM HILL GRESLEY ROAD CHURCHILL WAY EAST ARMSTRONG ROAD BASING ROAD SWING SWANG LANE REDBRIDGE LANE BASING ROAD REDBRIDGE LN THE ST PRIME FREEHOLD MULTI LET SOUTH EAST INDUSTRIAL INVESTMENT

DESCRIPTION The Loddon Centre was constructed in the mid 1980 s and comprises eleven industrial units arranged as three terraces and two solus buildings. The estate provides a total gross internal area of 113,062 sq ft (10,503.8 sq m), with individual units ranging from 4,926 sq ft (457.6 sq m) to 18,414 sq ft (1,710.7 sq m). Each unit is of steel frame construction with part brick/profile metal clad walls, below pitched profile metal clad roofs incorporating translucent roof panels. The units benefit from clear eaves heights ranging between 5.2m and 5.8m, up and over doors and ground/first floor offices. The estate is well configured, with ample car parking and the units are serviced to either front or back. The total site area is 5.6 acres (2.27 hectares), which reflects a site density of approximately 41%. A K B C D E F There are approximately 231 marked on site car parking spaces. J I H G BASINGSTOKE THE LODDON CENTRE, WADE ROAD, BASINGSTOKE, RG24 8FL

Basingstoke Station Access Self Storage Booker Jewson Bentelier Distribution Mars Drinks Boots Travis Perkins Baseport Business Park Intec Business Park Kingsland Business/ Industrial Park SUBJECT PROPERTY Chineham Shopping Centre PRIME FREEHOLD MULTI LET SOUTH EAST INDUSTRIAL INVESTMENT

TENANCY The property is let to 9 tenants in accordance with the tenancy schedule below providing a current rental income of 780,795 per annum ( 6.91 per sq ft overall), inclusive of rental guarantees and top ups as set out in the below schedule. The AWULT to expiry is 6.3 years and to break is 3.5 years. Unit Tenant Area Rent Lease Start Sq Ft Sq M p.a psf Lease Expiry Unit A Loddon Power Ltd 12,140 1,127.8 89,000 7.33 21/11/16 20/11/36 21/11/21 21/11/31 D79 6 months rent free to be topped up by vendor. Rent deposit held of 106,800 inc. VAT. Unit B PDI (Europe) Ltd 5,044 468.6 38,250 7.58 29/09/16 28/09/26 29/09/21 28/09/21 C73 5 months rent free expiring 24/05/2017 to be topped up by vendor. Schedule of condition Unit C Testbourne Ltd 4,948 459.7 35,950 7.27 18/12/13 17/12/23 18/12/18 17/12/18 C73 Rent deposit held of 10,784 ex VAT. Outside of L&T Act 54. Option to renew 18/12/2023. Unit D Vacant 4,926 457.6 36,945 7.50 - - - - C73 Vendor to provide 12 month rent/rates/service charge guarantee. Unit E Cotton Graphics Ltd 5,018 466.2 36,830 7.34 15/09/14 14/12/19 - - C73 Option to renew 15/12/2019. Rent deposit held of 26,520 inc VAT. Outside of L&T Act 54. Photographic schedule of condition. Unit F TLI Group Ltd 11,357 1,055.1 83,100 7.32 20/10/15 19/10/20-20/10/18 D78 Rent deposit held of 49,860 inc. VAT. Outside of L&T Act 54. 4 months rent free from 20/10/2019 if the tenant does not exercise break. Photographic schedule of condition. Next Rent Review Break Option EPC Comments Unit G Anglian Windows Ltd 11,671 1,084.3 80,808 6.92 17/10/14 16/10/24 17/10/19 17/10/19 D81 Service charge cap. Photographic schedule of condition. Unit H Vishay Measurements Group UK Ltd 10,584 983.3 70,875 6.70 27/01/14 26/01/20 27/01/19 - D81 Outside of L&T Act 54. 6 months rent free expiring 26/07/2017 due to tenant not exercising break to be topped up by vendor. Photographic schedule of condition. Unit I Videlio Media Ltd 11,159 1,036.7 77,710 6.96 19/04/16 18/04/26 19/04/21 19/04/21 D81 Guarantor of Videlio. Outside of L&T Act 54. Half rent of 38,855 p.a. expiring 18/11/17 to be topped up by vendor. Photographic schedule of condition. Unit J Vacant 17,801 1,653.8 115,707 6.50 - - - - D84 Vendor to provide 12 month rent/rates/service charge guarantee. Unit K Habitech Ltd 18,414 1,710.7 115,620 6.28 21/04/15 20/04/25 21/04/20 21/04/20 D84 Rent rises to 120,244 in April 2018. Outside of L&T Act 54. Photographic schedule of condition. Totals 113,062 10,503.8 780,795 6.91 The floor areas have been measured on a GIA basis (Gross Internal Area) in accordance with the RICS Code of Measuring Practice (6th Edition). TENURE UNIT A UNIT B UNIT C UNIT D (Vacant) UNIT E UNIT F Freehold. STROUDLEY ROAD SERVICE CHARGE There is a service charge which relates to the upkeep of the estate. The budget for the year ending 30th June 2017 is 50,015 representing 0.44 per sq ft. THE LODDON CENTRE MAIN ENTRANCE WADE ROAD UNIT K UNIT J (Vacant) STROUDLEY ROAD UNIT I UNIT H UNIT G BASINGSTOKE THE LODDON CENTRE, WADE ROAD, BASINGSTOKE, RG24 8FL

COVENANT INFORMATION The property is let to a combination of national, regional and local occupiers with 40% of the income having a minimum risk of business failure* and a further 54% having a lower than average risk of business failure. Tenant Company Number % of rent D&B Rating Risk of Business Failure Loddon Power Ltd 9966341 15% N/A Accounts due 25/10/17 (rent deposit held) PDI (Europe) Ltd 3758669 6% 2A1 Minimum Testbourne Ltd 1413864 6% B4 High (rent deposit held) Cotton Graphics Ltd 7815842 6% C2 Lower than Average (rent deposit held) TLI Group Ltd 318301 14% 2A2 Lower than Average (rent deposit held) Anglian Windows Ltd 2540020 14% 5A2 Lower than Average Vishay Measurements Group UK Ltd 2593388 12% 2A1 Minimum Videlio (Guarantor to Videlio Media Ltd) 3519324 7% 5A1 Minimum Habitech Ltd 5840057 20% 2A2 Lower than Average (rent deposit held) *This is inclusive of Loddon Power ultimately backed by Carron Energy Ltd. The four largest occupiers by rental contribution are: Loddon Power Ltd Loddon Power Limited is undertaking a 10m fit out of Unit A, transforming it into a reserve power plant. The company is a subsidiary of Apus Energy Ltd, which is ultimately backed by Carron Energy Ltd (D&B - 2A1). They are working with funding partners to establish a series of similar plants across the country as part of the UK s transition to a low carbon sustainable energy system. The location of this unit is important to the company as it is one of a few sites that is adjacent both a gas supply and a grid power line of circa 33,000 kv allowing them to create power and sell it back into the grid efficiently. TLI Group - D&B rating of 2A2 TLI Group is a utility infrastructure consultancy and construction company, operating extensively within the utilities sector in the UK and Ireland. They design, build and service overhead power lines, electrical substations and Telecom Networks. 31/12/15 31/12/14 31/12/13 Sales Turnover 22,452,881 20,067,162 16,662,703 Pre-tax Profit (Loss) ( 859,840) 1,247,139 289,208 Tangible Net Worth (Liabilities) 8,377,513 9,517,127 8,486,592 Net Current Assets (Liabilities) 4,699,054 5,221,861 4,824,649 Anglian Windows Ltd - D&B rating of 5A2 Anglian Windows is a national company with a number of centres in London and 13 regionally. The company sells, manufactures and installs a wide range of home improvement products including windows, doors, conservatories and roofing items. 02/04/16 28/03/15 29/03/14 Sales Turnover 214,386,000 229,549,000 229,154,000 Pre-tax Profit (Loss) ( 7,077,000) 4,357,000 10,739,000 Tangible Net Worth (Liabilities) 49,981,000 60,626,000 65,477,000 Net Current Assets (Liabilities) 46,590,000 51,913,000 59,907,000 Habitech Ltd - D&B rating of 2A2 Habitech is a distributor of home entertainment and home automation products. The company also offers support and training to the product lines that they sell. 30/09/15 30/09/14 30/09/13 Tangible Net Worth (Liabilities) 1,921,974 1,739,635 1,241,820 Net Current Assets (Liabilities) 1,673,570 1,684,386 1,179,037 PRIME FREEHOLD MULTI LET SOUTH EAST INDUSTRIAL INVESTMENT

OCCUPATIONAL MARKET Basingstoke is an established South East industrial centre that has attracted numerous international, national and local occupiers due to its strategic location and strong transport links to London and the South of England. In June 2016 the supply of industrial space within Basingstoke was at a record low. This shortage of supply has been created by a lack of new land zoned for industrial development combined with the loss of commercial space to higher value uses such as the Lilly Industries site on Kingsclere Road, which is earmarked for residential conversion. Within Basingstoke the current level of availability for 5,000 sq ft + units amounts to only 350,000 sq ft the equivalent to approximately one year of take up. This has been caused by rising demand, created from occupiers seeking better value compared to London and other South East centres, combined with the shortage of supply. Prime rents within the town are being quoted at 9.95 per sq ft on Kier s new scheme Logistics City, which is set for practical completion in August 2017. Recent letting evidence from within the estate includes Loddon Power Ltd acquiring Unit A in October 2016 on a 5 year term with 6 months rent free paying 7.50 per sq ft. This sets the rental tone for units in the 10,000 15,000 sq ft size range. The recently agreed renewal with PDI (Europe) Ltd on Unit B for a 10 year term (break in year 5) with 5 months rent free at 7.50 per sq ft provides evidence for 5,000 sq ft units. In addition, the newly vacant Unit D is now being marketed at a quoting rent of 8.25 per sq ft with a view to push rents on within the centre. The recent letting to Travis Perkins along Stroudley Road in July 2016 on a 15 year lease (mutual break in year 10) with 18 months rent free at 7.40 per sq ft demonstrates rental levels being achieved for high quality refurbished space around 20,000 sq ft. BASINGSTOKE THE LODDON CENTRE, WADE ROAD, BASINGSTOKE, RG24 8FL

INVESTMENT MARKET The multi-let industrial market remains favoured by investors due to the compelling occupational story with low voids and rental growth prospects. This combined with a lack of quality stock available in the market has led to competitive bidding on attractive multi-let investments despite economic uncertainty since the UK Referendum vote. Recent examples of industrial transactions are highlighted in the below schedule. Building Town/City Date Area (sq ft) AWULT (years) Price NIY CV (psf) MXL Centre Banbury U/O 127,305 7.6 c. 11.31m c. 6.25% c. 89 Kings Business Park Bristol U/O 59,673 4.4 c. 5.30m c. 6.25% c. 88 Dunhams Court Letchworth Jan-17 72,294 6.8 6.73m 5.96% 93 Woodside Park Industrial Estate Dunstable Jan-17 262,114 2.3 24.00m 6.00% 91 Nimbus Park Dunstable Jan-17 139,103 5.8 15.63m 5.45% 112 Perth Trading Estate Slough Jan-17 131,056 4.7 19.05m 5.10% 144 IO Centre Avonmouth Jan-17 104,350 2.9 9.26m 6.32% 89 Tongwell Industrial Estate Milton Keynes Dec-16 133,822 3.8 10.00m 6.65% 80 Royce Road Industrial Park Crawley Sep-16 72,767 4.2 10.53m 5.66% 145 Liberty Industrial Park Bristol Feb-16 131,818 3.7 7.57m 6.65% 57 Units 1-17 Eldonwall Trading Estate Bristol Jan-16 100,418 3.4 7.45m 6.42% 74 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). DATA ROOM There is a legal data room for the property which contains key tenancy information, service charge information, title documents and EPC s. Access to it can be obtained on request. PRIME FREEHOLD MULTI LET SOUTH EAST INDUSTRIAL INVESTMENT

PROPOSAL We are instructed to seek offers in excess of 9,750,000 (Nine Million, Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of approximately 7.50%, (including rental guarantees and top ups) and a capital value of 86 per sq ft, assuming purchaser s costs of 6.69%. FURTHER INFORMATION Should you require further information or wish to view the property, please contact either: Julian Gallagher Tel: 020 7493 3330 Mob: 07941 413 299 Email: jgallagher@lewisellis.co.uk John Ellison Tel: 020 7493 3330 Mob: 07889 437 236 Email: jellison@lewisellis.co.uk James Elkington Tel: 020 7493 3330 Mob: 07810 722 459 Email: jelkington@lewisellis.co.uk BASINGSTOKE THE LODDON CENTRE, WADE ROAD, BASINGSTOKE, RG24 8FL Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. February 2017.