HOTTER SHOES 2 PEEL ROAD SKELMERSDALE LANCASHIRE WN8 9PT PRIME FREEHOLD INDUSTRIAL INVESTMENT

HOTTER SHOES 2 PEEL ROAD SKELMERSDALE LANCASHIRE WN8 9PT PRIME FREEHOLD INDUSTRIAL INVESTMENT

2 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Investment Summary Prime industrial unit located on the established Pimbo industrial estate in Skelmersdale Excellent communications being in close proximity to Junction 5 of the M58 motorway and 4 miles from Junction 26 of the M6 The unit was significantly re-developed in 2003 with further extension works in 2015 and totals 158,699 sq ft (excluding mezzanines) with an eaves height of 6 metres HQ building for Hotters Shoes including design functions, back of house, manufacture and distribution Hotter are currently investing over 700,000 re-roofing the property following their long term commitment to the building Site area of 8.85 acres (3.58 hectares) providing a site coverage of approximately 37.7% Freehold Single let to Beaconsfield Footwear Limited for a term of 15 years and 6 months from 5th January 2016, expiring 4th July 2031 Current passing rent of 493,000 per annum which equates to just 3.11 psf overall, excluding mezzanine accommodation Estimated rental value of 553,987 per annum, which equates to 3.50 psf overall We are seeking offers in excess of 7,150,000, subject to contract and exclusive of VAT A purchase at this level reflects a net initial yield of 6.51%, and a reversionary yield of 7.32%, after allowing purchaser s costs of 5.80% For further information or to arrange an inspection, please contact: Mark Powell Chris Jones Tel: 07825 077724 Tel: 07957 138004 Email: mp@christopherdee.co.uk Email: cj@christopherdee.co.uk

3 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Skelmersdale Skelmersdale was the North West s first new town designated in 1961 and is recognised as the principal economic focal point for the West Lancashire region. The town is situated strategically on the M58 motorway between Liverpool and Manchester. The M58 links with the M6 approximately 4 miles to the east at junction 26. As one of the new towns built in the 1960s, Skelmersdale enjoys the benefit of a purpose built road system linking well planned industrial estates directly onto the motorway. Transport communications include: LIVERPOOL MANCHESTER GLASGOW LONDON 20 MILES 30 MILES 205 MILES 212 MILES Skelmersdale has a resident population of approximately 40,000 people with major employers in the town including the Co-Operative Bank, Asda, Proctor & Gamble, Great Bear, DHL and Matalan. Skelmersdale was the North West s first new town designated in 1961 and is recognised as the principal economic focal point for the West Lancashire region.

4 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT <<< TO Liverpool M58 AERIAL SHOT? M58

5 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT SKELMERSDALE Mill Ln WN8 9PT Situation 4 Ferny Knoll Rd Gillibrands Rd B5312 Nipe Ln Southway Tanhouse Rd Ormskirk Rd Digmoor Pimbo Rd Digmoor Rd Peel Rd Pimbo Rd Clay Brow Rd 5 Chequer Ln Pimbo Ln Mill Ln Up Holland M58 Tower Hill Rd The unit is strategically located approximately 250 metres from Junction 5 of the M58 motorway and 4 miles from Junction 6 of the M6. The Port of Liverpool is 14 miles to the south west, where construction is underway on the new post Panamax container port (Liverpool2), which will be capable of bringing some of the world s largest container ships into the North West region. The first terminal opened in December 2015 with the second terminal opening within weeks. Liverpool2 can accommodate 95% of the global container vessel fleet, and will enable the Port of Liverpool to house two 13,500 TEU post-panamax vessels simultaneously. This creates the capacity to handle the next generation of container ships and empowers the Port of Liverpool to be the UK s national gateway and transhipment hub for Ireland. Atlantic Container Line (ACL) has chosen the Port of Liverpool as the UK port of call for its new five-strong fleet of the world s largest RORO/container ships (CONROs) after a review of potential schedules, market potential and opportunities for its North Atlantic Services. ACL has the five new G4 CONRO vessels currently under construction in China, each with container capacity of 3,800 teu containers. RE-ROOF IN PROGRESS COMPLETION JULY 2016

6 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Description The property was fully re-furbished in 2003 and is of steel portal frame construction, providing a modern distribution warehouse together with two storey ancillary office accommodation to the front and side elevation. Internally the property benefits from the following specification: Internal eaves height of approximately 6 metres to the haunch. 2 dock levellers and 5 drive in doors. Floor slab loading of 50kN/m2 (UDL) with a rack leg load of 90kN. One 8 person (630 kg) passenger lift serving all office floors. Air conditioning to office accommodation. Security gatehouse at the HGV entrance to the site. 119 car parking spaces located to the front of the property. Externally the property benefits from a generous yard area to the side and rear of the unit. A new roof system is being installed and is due to be completed in July 2016

7 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Accommodation The property provides the following gross internal accommodation: Sq M Sq Ft Warehouse 11,357.39 122,251 Mezzanine 1 2,938.03 31,625 Mezzanine 1 460.61 4,958 Ground Floor Offices 1,507.43 16,226 First Floor Offices 1,528.06 16,448 Design Centre 350.61 3,774 Total 18,142.14 195,282 The site extends to approximately 8.85 acres (3.58 hectares), providing a site coverage of 37.7%. EPC A 0-25 B 26-50 C 51-75 D 76-100 E 101-125 F 126-150 G over 150 88 This is how energy efficient the building is.

8 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Tenure The property is held Freehold. The approximate extent of the Freehold ownership is shown edged red on the site plan. Tenancy The property is let to Beaconsfield Footwear Limited for a term of 15 years and 6 months from 5th January 2016, expiring 4th July 2031. The initial rent of 493,000 per annum is reviewed upwards only every 5 years to the open market rental value. The next reviews are 5th July 2021 and 5th July 2026.

9 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT ESTIMATED RENTAL VALUE We believe that the agreed rent of the subject property is at a very comfortable level at 311 psf overall (excluding the mezzanine accommodation) and should provide investors with good future rental growth potential. We are of the view the ERV on the building, in isolation, is in the region of 3.50 psf based on comparables. We would highlight the following rental comparables. Address Tenant Date Size (sq ft) Rent/Price ( psf) Onyx, Runcorn B&M Q1 2015 350,000 4.75 Central Park, Trafford Park Norbert Dentressangle Q3 2015 268,000 5.50 Boulevard Industry Park, Speke IAC Q3 2015 150,000 5.25 Midpoint 18, Middlewich Optima Logistics Q4 2014 185,000 4.75 Pro Logis 380, Crewe AO Logistics / Wincanton Q4 2014 380,000 4.75 XL, Skelmersdale DHL Q3 2014 472,000 4.25 Appleton, Warrington South The Hut Q3 2014 105,000 5.00 Estuary Park, Speke Johnson Controls Q2 2014 151,770 5.35 Omega North, Warrington Hermes wparcelnet Q4 2013 153,580 5.35 Omega North, Warrington Brake Brothers Q3 2013 198,000 5.15

10 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT LYTHAM ST. ANNE S Rent (psf) - Achieved Rent (psf) - Quoting Speculative Units Under Construction A565 A583 PRESTON A59 A582 LEYLAND A6 31 M6 30 A677 BLACKBURN 29 29/1 12/1 3 M65 4 28 8 A6119 5 A666 6 7 ACCRINGTON A56 RAWTENSTALL A646 A6033 A565 LIVERPOOL WALLASEY SOUTHPORT FORMBY A552 A565 1 BIRKENHEAD 2 3 A41 BUSINESS PARK M53 A561 LIVERPOOL INTERNATIONAL 4 5.35Q 6.25 A59 G-PARK, SKELMERSDALE A59 5 6 7 A570 ORMSKIRK 7 Q 5.75 4.75 1 8 3 M58 M57 A57 4 5 A580 2 LIVERPOOL JOHN LENNON 6/1 ELLESMERE PORT SKELMERSDALE LOGISTICS A5209 27 NORTH, BOLTON 3 4 A570 A5300 M56 5 OMEGA SOUTH, WARRINGTON 5.50 Q 6.25 A570 7 WIDNES RUNCORN A562 26 M6 Q 6.25 Q 6.25 25 A57 A49 9 10/21A M62 8 WARRINGTON 12 24 ST HELENS CHORLEY WIGAN 22 A533 A56 M6 M61 A58 21 11 A58 A676 M62 A50 A57 20A M56 8 7 9/20 10 11 M6 MANOR HOUSE, RUNCORN 4.83 6 BOLTON 5 TRAFFORD PARK, A579 MANCHESTER u/o 5.95 Q 6.25 A580 HEYWOOD DISTRIBUTION PARK Q 6.00 4 Q 6.25 19 A556 3 2 12/1 15/1 11 10 9 BURY A56 8 A560 A58 16 2 A5081 7 1 A6 6 6 17 5 3 2 3 18/4 5 A6010 4/1 19 A6010 A34 19 MANCHESTER MANCHESTER WILMSLOW ROCHDALE A6 M60 20 M627 (M) A635 A57 STOCKPORT M60 25 26 27 A6 A523 23 21 M62 KINGSWAY OLDHAM BUSINESS PARK, ROCHDALE 20 21Q 5.75 22 24 M67 AIRPORT CITY, MANCHESTER u/o 5.95 Q 6.25 A6018 22 ASHTON-UN Q 6.25

11 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Covenant Status Beaconsfield Footwear Limited (Company number: 00641365), was incorporated in 1959 as a family shoe company and has grown into providing world- class products. The Hotter Comfort Concept brand was founded in the early 1990s by Beaconsfield Footwear. With a mission to make shoes as comfortable as slippers, the brand designs and manufactures a collection of stylish shoes with hidden comfort features including super soft and breathable leathers, lightweight and flexible soles, cushioning underfoot and wiggle room for toes. They have invested heavily to create one of the most advanced shoe making facilities in the world, with the state of the art facility, Hotter make more shoes per year than any other shoe maker in the UK (a pair every 20 seconds). Hotter currently operate a multi channel retail function with Mail Order, www.hotter.com and from approximately 74 stores in the UK and over 200 independent retailers. The company has recently moved into the US market, selling its shoes via a home shopping catalogue andwww.hotterusa.com. US customers are served via Hotter s onsite call centre with shoe shipped direct from its warehouse to customers from California to Washington. A summary of Beaconsfield Footwear Limited accounts is set out below. Beaconsfield Footwear Limited 1st February 2015 26th January 2014 27th January 2013 Turnover 96,058,000 88,694,000 74,960,000 Pre-Tax Profit 8,155,000 10,039,000 8,671,000 Net Assets 30,438,000 23,349,000 14,422,000 VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a Transfer of a Going Concern.

12 PRIME FREEHOLD INVESTMENT HOTTER SHOES, 2 PEEL ROAD, SKELMERSDALE, LANCASHIRE WN8 9PT Proposal We are seeking offers in excess of 7,150,000 for our client s freehold interest. A purchase at this level reflects a 6.51% net initial yield, and a reversionary yield of 7.32% after deducting purchase costs at 5.8%. For further information or to arrange an inspection, please contact: Mark Powell Tel: 07825 077724 Email: mp@christopherdee.co.uk Chris Jones Tel: 07957 138004 Email: cj@christopherdee.co.uk Christopher Dee LLP 40 Peter Street Manchester M2 5GP MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee LLP nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Designed and Produced by Ask 0161 976 1836. March 2016.