PRIME DISTRIBUTIONINVESTMENT OPPORTUNITY

MANOR PARK

RUNCORN

CHESHIRE

WA7 1SE

ORIGIN

DARESBURYEXPRESSWAY (A558)DARESBURYEXPRESSWAY (A558)

INVESTMENT SUMMARYPrime distribution warehouse investment opportunity.

Located in the heart of the North West on the established Manor Park Industrial Estate.

Strategic location between Warrington and Runcorn close to J11 of the M56 motorway.

A modern distribution unit providing 131,960 sq ft (12,273.93 sq m).

Separate additional yard area of 2.13 acres (0.86 ha).

Let to Rehau Ltd on two FRI leases expiring on 23rd October 2028.

Rental of £645,000 per annum (£4.89 per sq ft) for the main building and £50,000 per annum (£23,474 per acre) for the site.

The total rental is £695,990 per annum.

5 yearly rent reviews to the OMRV or CPI, whichever is the greater. The rent is capped and collared at 1% and 3% per annum.

Strong covenant of Rehau Limited, for the year ending 2014 they reported a turnover of £90.96M pre-tax profits of £2.87m and net worth of £15.82m.

Freehold.

We are instructed to seek offers in excess of £10,525,000 (Ten Million Five Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 6.25% after purchasers cost of 5.8%.

INVESTMENTSUMMARY

LOCATIONManor Park is a prime 300 acre (116 ha) office and industrial park located adjacent to the A558 which

provides easy access to J11 and J12 of the M56 motorway.

The Park is situated between Manchester (30 miles) to the east and Liverpool (20 miles)

to the west. Warrington is situated 4 miles north while Chester is 17 miles south west.

The park has excellent accessibility to the M56, which connects with J20 of the M6

motorway 6 miles east and J11 of the M53 motorway approximately 8 miles west.

Manchester International and Liverpool John Lennon Airports are situated within

25 minutes’ drive. Rail communications are equally good, with Runcorn and Warrington Stations

providing West Coast Intercity connections both within 5 miles of the Park.

The areas success has been proven by the location of a significant number of occupiers, including Eddie

Stobart, DHL/NHS, Lidl, UK Mail, Kuehne & Nagel, Howdens Joinery, Rehau, Fresenius, Matthew Clark

and most recently B&M Bargains.

Road communications within the region will be further enhanced by the completion

of the Mersey Gateway project which comprises a new 6 lane toll bridge over the River

Mersey between the towns of Runcorn and Widnes. This will provide a valuable and fast link between the

M56 and M62 motorways and also from Widnes/Runcorn to Speke/South Liverpool. The bridge is due

to be completed in 2017. Further inforomation can be provided at www.merseygateway.co.uk.

Manor Park is now recognised as one of the premier industrial locations in the North West of England.

DRIVE TIMES

Junction 11 M56 5 mins

Runcorn Train Station 5 mins

Liverpool Airport 15 mins

Manchester Airport 25 mins

Chester City Centre 31 mins

Liverpool City Centre 38 mins

Manchester City Centre 43 mins

LIVERPOOL2 PORT

MERSEY GATEWAY PROJECT

LOCATION

1

18

115

10

27

3

12

Birkenhead

Wallasey

Runcorn

Speke

ST HELENS

WARRINGTON

MANCHESTER

LIVERPOOL

WIGAN

BOLTON

BURY

Liverpool John Lennon

Airport

River Mersey

ManchesterAirport

Port of Liverpool

Widnes

A49

A533

A540

A5119 A5117

A557

A562

A557

A533

A533

A537

A56

A580

A580

A5300

A5058

A58

A58

A56

A34

A556

A556

A54

A41

A41

Walkden

M6

M58 M61

M62

M62M57

M53 M56

7

7

7 6

6

5

5

3 3

8

8

9

6

6

6

54

3

2

3

2

6

11

10

12

1

15

21A

1

4

4

1

3

3

2

2

15

5

7

9

9

23

22

21

20

19

10

10

11

12

14

11

11

14

1617

19

10

24

25

26543

Bootle

LOCATION

SITUATIONThe property is situated in a prominent position fronting onto Blackheath Lane close to its junction

with the Daresbury Expressway (A558).

Dining

Store

DOOR

DOCK LEVELLER

DOCK LEVELLER

DOCK LEVELLER

DOCK LEVELLER

DOCK LEVELLER

DOCK LEVELLER

DOCK LEVELLER

RAM

P DO

WN

Fork

Lift

Cha

rge

Disabled Parking

Disabled Parking

Disabled Parking

Disabled Parking

Disabled Parking

BRAC

ING

LiftM

aleM

ale

Entrance Foyer

Entrance to

office

11 Lockers

Urinal

WCWC

UP

WCWC

Ground Floor Plan

8650

S1S1

S1S1

S1S1

S1

SS1

S1S1

S1S1

S1S1

S1

S1S1

S1S1

S1

S1S1

S1S1

S1

S1S1

S1S1

S1

S1S1

S1S1

S1

E/E

E/E 500910

500910

Male WCOffice 3

Office 1 Office 2

Breakout Room

Female

WC

Door spec to be 2XGG

aluminum door & frame

4841

910

1336

910

268

5535

3896

0

1136

5

17870

Canopy

Daresbury ParkHotel

E VENWOOD CL

EASTGATE RD

EASTG

ATE RD

DARESBURY EXPRESS WAY

BLACKHEATH LN

CH

ESTE

R LN

LIVERPOOL

M6

WARRINGTON

SITUATION

DESCRIPTIONThe property is a striking building comprising a modern detached single bay warehouse of steel portal frame construction beneath a steel barrel vaulted roof. It has been constructed to a high specification which is summarised below:-

Warehouse• Eaves height of 12.6m to the underside of haunch• Unique barrel vaulted insulated metal clad roof incorporating translucent roof panelling• Only 10 internal columns to the warehouse area• 7 dock level loading doors and 2 level access drive in doors• Internal dispatch office to the rear elevation overlooking the yard• Heating, lighting and sprinklers throughout the warehouse

Offices• Two-storey office accommodation to the front of the building• Fully heated, lit and air conditioned throughout providing open plan and cellular accommodation• Male, female and disabled WC’s on the ground floor• A single 8 person passenger lift to first floor level

External• Secure 2.4m high palisade fencing to the perimeter • Extensive concrete yard area providing a 50m depth• Separate delineated car parking areas

Storage Land In addition there is a secure concreted yard of 2.13 acres (0.86 ha) adjacent to the property which is linked to the main warehouse yard together with separate secure access off Greenwood Drive. The yard

is fully lit and secured by way of perimeter fencing and a barrier entry system.

DESCRIPTION

ACCOMMODATIONThe property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition)

and provides the following gross internal floor areas:

Description Area (sq m) Area (sq ft)

Warehouse 11,352.60 122,154

Offices (Ground) 314.31 3,382

Offices (First) 314.31 3,382

Total 11,991.22 128,918

Canopy 282.71 3,042

Overall Total 12,273.93 131,960

The property is on a site totalling 6.58 acres (2.66 ha) providing a site cover of only 45%.

The additional open storage area provides a total of 2.13 acres (0.86 ha).

TENUREThe property is held freehold.

ACCOMMODATION

TENANCYThe property is let to Rehau Limited for a term of 15 years with effect from 24 October 2013 subject to FRI terms and upwards only rent reviews at the end of the 5th and 10th years assessed to the open market rental value and capped and collared to reflect 1% and 3% per annum. The current rent is £645,990 per annum (£4.89 per sq ft).

In addition the adjacent secure yard area is let to Rehau Limited for a coterminous term (expiring 23rd October 2028 on FRI terms and subject to 5 year upwards only rent reviews (on the same basis). The current rent is £50,000 per annum (£23,474 per acre).

The total rental is therefore £695,990 per annum.

There have been various works, in particular to the warehouse loading area, carried out on behalf of the tenant which are covered by a license for alterations and are subject to full reinstatement. Further information can be made available.

TENANTS COVENANTRehau Limited (Company No. 0722004)Rehau is the premium worldwide brand for Polymer based innovations and systems in building solutions, automotive and industry. They employ over 19,000 employees worldwide with approximately 12,000 in Europe and 500 in the UK and Ireland across 170 locations worldwide. Further information can be found at www.rehau.com.

The company has a D&B rating of 3A1 representing a minimum risk of business failure and based on a tangible net worth of £12,540,625. They have published the following accounts:

31/12/2014 31/12/2013 31/12/2012

Turnover 90,964,495 80,173,655 77,287,142

Pre-tax profit 2,877,109 (644,669) (860,528)

Tangible Net Worth 15,823,926 14,904,006 15,751,251

TENANCY

INDUSTRIAL MARKET COMMENTARYThe distribution market in the North West is experiencing significant demand for good distribution

buildings. Take up within this sector was extremely strong during 2014, which stood at over 4.5m sq ft for

buildings over 100,000 sq ft throughout the region. Take-up for H1 2015 was at approximately 3m sq ft, a

significant rise on H1 2014.

D&B transactions in the region have been recently signed including The Hut (670,000 sq ft) at Omega,

Travis Perkins (630,000 sq ft) at Omega, Asda (600,000 sq ft) at Omega, MBDA (100,000 sq ft) at Bolton,

Aldi (440,000 sq ft) at Bolton, B&M Bargains (500,000 sq ft) at Speke and Johnson Controls (150,000 sq ft)

at Speke. Most recently Poundland (350,000 sq ft), Nicepak (395,000 sq ft) at Wigan, Exertis (543,000 sq ft)

at Burnley and Dunelm (525,000 sq ft) at Stoke.

Existing stock for buildings over 100,000 sq ft has fallen to only 5m sq ft.

The strength of the North West distribution market has resulted in a return to confidence in speculative

development with a number of buildings of between 95,000 sq ft to 400,000 sq ft planned and on site.

Quoting rentals are between £5.50 per sq ft and £6.25 per sq ft.

This area of the region has benefited hugely from the growth and continued success of the major car plants

in the area being Jaguar Land Rover at Speke where the popular Evoque is built and Vauxhall Motors where

the Astra is built. This has led to a massive boost in automotive supply chain which is set to continue with

the investment into the plant at Speke and the soon to be launched Electric Car at Vauxhall.

Major infrastructure works in the region will support the growth in the distribution sector over the

forthcoming decade including the Liverpool 2 Container Port which will double the handling capacity at the

Port and also permit direct entry to larger vessels from Asia into Liverpool, rather than the redistribution

of goods onto smaller vessels at Rotterdam. The new Mersey Gateway Bridge is also due to be completed

in 2017 which will provide faster links to the region including linking the M56 and M62 with south Liverpool.

INDUSTRIALMARKET

COMMENTARY

ESTIMATED RENTAL VALUEWe believe that the agreed rent of the subject property is at a very comfortable level at £4.89 per sq ft

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 £5.25 per sq ft based on comparables.

We would mention 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 ParkNorbertDentressangle Q3 2015 268,000 £5.50

Boulevard Industry Park, Speke IAC Q3 2015 150,000 £5.25

Midpoint 18, MiddlewichOptima Logistics Q4 2014 185,000 £4.75

Pro Logis 380, CreweAO 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, SpekeJohnson Controls Q2 2014 151,770 £5.35

Omega North, WarringtonHermes wParcelnet Q4 2013 153,580 £5.35

Omega North, Warrington Brake Brothers Q3 2013 198,000 £5.15

ESTIMATEDRENTAL VALUE

FURTHER INFORMATION

FURTHERINFORMATION