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PROMINENT MULTI-LET INDUSTRIAL ESTATE HERITABLE INVESTMENT OPPORTUNITY

Cumbernauld

Wardpark

CumbernauldWardpark

CumbernauldWardpark

Investment Summary

• Prominent multi-let industrial estate located within Central Scotland, easily accessible from both Glasgow and Edinburgh

• Situated either side of the recently upgraded M80 Motorway, providing almost immediate access to Junction 6 and the wider UK motorway network

• Established commercial location, home to Cumbernauld Airport and Westway Retail Park, where occupiers include B&Q, Halfords and Currys

• Multi-let industrial estate totalling 829,851 sq ft, comprising 73 units ranging from 1,937 sq ft to 72,944 sq ft, providing occupiers with occupational flexibility

• Let to 53 tenants by way of 60 occupational leases, providing a diverse annual rental income stream totalling £2,531,943 per annum*, equating to a low overall average rent of £3.66 per sq ft, approximately 40% below current prime industrial headline rents within Glasgow

• A weighted average unexpired lease term of 4.04 years to expiry and 2.75 years to break

• High levels of tenant retention with approximately 30% of the income having had a presence on the estate for over 15 years

• Opportunities to add value through asset management, including the letting of vacant units, driving rental tone and selling off units to owner occupiers at pricing premiums to investment value

• Heritable Interest (Scottish equivalent of Freehold)

• We are instructed to seek offers in excess of £24,000,000 (Twenty Four Million Pounds) which equates to a net initial yield of 9.93%, assuming purchaser’s costs of 6.26%, a reversionary yield of 11.93% upon the letting of the currently vacant units at our opinion of ERV and a low capital value of £28.92 per sq ft

*Assuming vendor top up as indicated in the tenancy schedule.

Situation Wardpark Industrial Estate is located approximately 3 miles north east of Cumbernauld town centre and lies immediately adjacent to the M80 trunk road, which separates Wardpark North from Wardpark South. The estate can be accessed from Junction 6.

The locality is home to some higher value land uses, most notably Westway Retail Park, a nine unit 330,000 sq ft modern retail warehouse park developed in 2007. Its occupiers include B&Q, Currys and Halfords.

Wardpark North

Westway Retail Park

Cumbernauld Airport

Napier Road

Napier Road

Wyndford Road

Wyndford Road

Tollpark Road

Tollpark Place

Castlecary Road

Castlecary Way

Wardpark Road

A8011

Dunns Wood Road

Napier Place

Napier Road

M80 Junction 6

Glasgow

Stirling/Edinburgh

Wardpark South

M80

M80

M80

Castlecary Road

CommunicationsCumbernauld is located approximately 13 miles north east of Glasgow, 14 miles south of Stirling and 39 miles west of Edinburgh. Due to its central location, the town benefits from excellent transport links.

Road

Substantial upgrading to the A80 and M80 was completed in September 2011 and has further enhanced Cumbernauld’s accessibility, with the latter bisecting Wardpark North and Wardpark South providing direct access to Glasgow to the west and Stirling to the east.

Distance by Road

Destination Approximate Distance

Glasgow 13 miles

Edinburgh 39 miles

Falkirk 12 miles

Stirling 14 miles

Rail

Cumbernauld Station offers regular services to Glasgow with a quickest journey time of 28 minutes. Direct services also operate to numerous towns located within Central Scotland and Edinburgh is accessible in an approximate journey time of 1 hour 15 minutes.

Air

Cumbernauld is located within a 35 minute drive of the international airports at Edinburgh and Glasgow, which both provide frequent flights to major UK, European and global cities. Small private aircraft can also be accommodated at Cumbernauld’s own airport, which is situated immediately to the west of the estate.

Economy

North Lanarkshire benefits from a strong local economy with a diverse employment dynamic incorporating both traditional production and manufacturing industries, along with modern businesses such as electronics, call centres and service sector industries.

Cumbernauld is recognised as a substantial business and industrial location with five principal industrial estates totalling circa 6 million sq ft, providing accommodation for approximately 750 units. Major occupiers in the town include Cummins, Barr Soft Drinks, Siemens and Bunzl.

FALKIRK

LIVINGSTON

DUNFERMLINE

GLASGOW

EDINBURGH

GLASGOWGlasgow

Edinburgh

F I R T HO F

F O R T HRiver Clyde

LochLomond

PE

NT

LA

ND

HI L

LS

EDINBURGH

STIRLING

MOTHERWELL

HAMILTON

KILMARNOCK

EASTKILBRIDE

PAISLEY

Cumbernauld

Armadale

Airdrie

PortGlasgow

Bellshill

Coatbridge

Kilsyth

Helensburgh

Garelochhead

Dunoon

Skelmorlie

Greenock

Clydbank

WestKilbride

Millport

Rothesay

M80

M74

M80

M90

M876

M77

M8

A80

A73

A71

A7

A68

A72

A77

A71

A8 A82A78

A78

A82

A83

A81

A84 A9

A91

A891

A977

A706

A702

A703

A199

A92

A720

A811

A811A809

A726 A725A737

M8

M9

M9T R O S S A C H SN A T I O N A L

PA R K

C LY D E M U I R S H I E LR E G I O N A L PA R K

RIVER KELVIN

CASTLECARY RD

FOREST RD

B

816

NAPIER RD

NAPIER RD

WYN

DFORD RD

OKI WAY

TO

LLPARK RD

CUMBERNAULDAIRPORT

WESTERWOOD GOLF COURSE

WARDPARKNORTH

WARDPARKSOUTH

ABRONHILL

WARDPARKEAST

CUMBERNAULD HOUSE PARK

A8011

NAPIER PL

BLACKTHORN RD

EASTFIELD RD

B816

M80 JUNCTION 6

GLASGOW

M80

CASTLECARY

CARRICKSTONE

STIRLING/EDINBURGH

Cumbernauld

Wardpark

Cumbernauld Cumbernauld is located in the core of Scotland’s Central Belt and has a population in excess of 50,000 (Census 2011). It is Scotland’s third New Town, was established in 1956 and is the largest town in the North Lanarkshire region.

CumbernauldWardpark

CASTLECARY ROAD

CASTLECARY ROAD

FOR

EST RO

AD

NAPIER ROAD

NAPIER ROAD NAPIER ROAD

WYN

DFO

RD R

OA

D

WYNDFORD ROAD

CASTLECARY ROAD

TOLLPARK ROAD

CASTLECARY WAY

NAPIER PLACE

NA

PIER

COURT

NA

PIER W

AY

DUNCAN MACINTOSH ROAD

OKI WAY

NAPIER PARK

WARDPARK ROAD DUNNS WOOD ROAD

WA

RD

PAR

K PLA

CE

TOLL

PARK

PLA

CE

EASTFIELD ROAD

ST. AND

REWS

DR

IVE

M80

M80 Junction 6

M80

WARDPARKNORTH

WestwayRetail Park

Cumbernauld Airport

Glasgow

Stirling/Edinburgh

WARDPARKSOUTH

2

4

6

1-3

5-7

8 4

9 7

59 57

61 55

53

29-43

45-47 19

5

18-20

16

111

3-7 21-23

25-29 35-39

31-33

30-32

40-42

38

36

1

13

15-1719-212325

2729 3331 35 37 11 9

7

539

4514

14

4

10

8

6

4

2

43

41 3

34-36

12-20

2-10

1-7

2-10

9

1517

12-1423

25-27

15-17 9-13

1-3 5-7

Wardpark Site Plan

Occupied by way of Long leasehold interest

Buildings in ownership

AccommodationWardpark Industrial Estate provides a total gross internal area of 829,851 sq ft and units range from 1,937 sq ft to 72,944 sq ft, with an average unit size of approximately 11,368 sq ft. A schedule of floor areas, as provided by the vendor, are set out within the tenancy schedule.

TenureThe estate is held by way of a number of Heritable Interests (Scottish equivalent of English Freehold) further details of which are provided within the data room.

EPCEnergy Performance Certificates are available for all units, providing EPC ratings ranging from C(32) to G(183) and as set out in the tenancy schedule. Further information, including recommendation reports are available within the data room.

Wardpark Industrial Estate Wardpark Industrial Estate comprises 73 industrial units and provides 829,851 sq ft of accommodation.

The units are suited to a wide range of occupiers and are suitable for distribution, manufacturing and warehouse uses, with several units benefiting from self-contained yard areas.

The wide range of units at Wardpark provides its tenants with occupational flexibility, along with the ability to grow within the estate. This has been evidenced by the ability of the property to retain its occupiers.

SpecificationUnits within Wardpark are typically of steel portal frame construction, with block work lower and steel profile sheeting upper elevations. The majority of units have ancillary office accommodation, roller shutter/loading doors and gas powered heating.

Estate ChargeThe common services and maintenance within Wardpark are undertaken by way of a dedicated estate charge, the primary services of which relate to security and landscaping.

The estate charge budget for the year ending 27th February 2017 is £176,818, equating to circa £0.21 per sq ft and the account is budgeted and reconciled annually.

The current estate charge and insurance shortfall is approximately £54,819 per annum, entirely accounted for by currently vacant units.

The current estate charge budget and previously reconciled accounts are provided within the data room.

CumbernauldWardpark

Tenancy Schedule

UnitFloor Area

(sq ft) Tenant

Lease Start

Lease Expiry

Break Date

Review Date

Passing rent (pa)

Passing rent psf (pa)

EPC Comments

1 Tollpark Road 9,358 Howden Joinery Properties Ltd 17/02/06 16/02/21 17/02/16 £37,000 £3.95 C(39) SoC*. Guarantee from Howden Joinery Ltd.

3 Tollpark Road 7,756 Vacant E(75)

5 Tollpark Road 6,248 Screwfix Direct Ltd 12/10/15 11/10/25 12/10/20 12/10/20 £31,240 £5.00 E(78) SoC.

7 Tollpark Road 6,182 Polyglass (GB) Ltd 26/09/07 25/09/17 £25,000 £4.04 D(50) SoC.

9 Tollpark Road 4,626 International Doors & Windows (Aberdeen) Ltd

27/04/07 27/08/17 £14,000 £3.03 E(75)

11 Tollpark Road 4,645 Dessian Products Ltd 27/05/05 27/05/16 £20,000 £4.31 F(86)

Tenant right to relocate to larger premises within the estate at any time during lease period. Lease length must be greater than 3 months and at a rent of at least £4.00 psf, with an incentive of half rent up to 12 months.

13 Tollpark Road 4,656 Vacant E(78)

15/17 Tollpark Road 4,288 Evander Glazing & Locks Ltd 03/08/11 02/08/21 £20,368 £4.75 F(93) Fixed rental increase on 03/08/2016 to £21,440 pa.

19/21 Tollpark Road 4,307 Thomas Hancock & Co Ltd 17/02/12 16/02/17 £19,381 £4.50 F(96) Personal guarantee from Daniel Dunko.

23 Tollpark Road 2,134 Vacant D(46)

25 Tollpark Road 2,161 Technology Supplies International Ltd

22/01/15 21/01/25 22/01/20 22/01/20 £10,697 £4.95 F(87) SoC.

36 Tollpark Road 23,340 Spaceright Europe Ltd 16/01/15 15/01/20 08/03/17 £80,000 £3.43 E(71) SoC. Tenant paying £40,000 pa until 15/01/2017. Vendor to top up.

38 Tollpark Road 33,409 Spaceright Europe Ltd 06/03/07 05/03/20 06/03/17 £77,000 £2.30 E(78)

40-42 Tollpark Road 72,944 Thomson Pettie Ltd 02/03/09 01/03/19 £200,596 £2.75 G(109) SoC.

27 Tollpark Place 2,122 Coronet Cleaning & Hygiene Services Ltd

20/05/13 19/05/23 20/05/18 20/05/18 £10,213 £4.81 C(42)SoC. Break penalty of £5,106 payable by tenant which is disregarded if the tenant buys/leases another property from the landlord within the estate.

29 Tollpark Place 2,135 Futuro Fashion Ltd 10/06/13 09/06/18 09/06/16 £10,141 £4.75 E(68) Tenant has not activated their option to break.

31 Tollpark Place 2,125 Advanced Doors Ltd 05/12/11 04/12/16 £10,094 £4.75 E(80) SoC.

33 Tollpark Place 2,150 Prestige Garment Solutions Ltd 20/09/13 19/09/18 £10,213 £4.75 E(69)

35 Tollpark Place 2,125 Industrial & Domestic Coating Services Ltd

02/03/15 01/03/20 01/03/18 £10,625 £5.00 F(95) Tenant paying £5,312.50 pa until 01/07/2016. Vendor to top up.

37 Tollpark Place 2,142 Virgin Media Wholesale Ltd 14/07/99 13/07/25 14/07/20 14/01/20 £10,500 £4.90 D(56) SoC.

39 Tollpark Place 6,219 Thomson Pettie Ltd 01/09/15 30/06/16 £20,212 £3.25 F(83)

41 Tollpark Place 9,365 Vacant E(76)

43 Tollpark Place 10,889 Service Metals (North) Ltd 01/05/14 30/04/24 01/05/19 01/05/19 £49,000 £4.50 F(96) SoC.

45 Tollpark Place 12,512 Jungheinrich UK Ltd 08/09/88 07/09/18 £46,950 £3.75 F(97)

2-6 Tollpark Place 37,104 Thomson Pettie Ltd 17/08/15 01/03/19 17/08/16 £120,588 £3.25 E(79) SoC. Tenant paying £60,294 pa until 16/08/2016. Vendor to top up.

TenanciesWardpark is let by way of 60 leases to 53 tenants and provides a gross annual rent roll of £2,531,943 per annum. The vendor will top up current rent frees and stepped rents where indicated below.

*SoC: Schedule of Condition. **Tacit relocation is the Scottish equivalent of holding over.

8 Tollpark Place 12,431 Bunzl Retail & Healthcare Supplies Ltd

25/03/02 02/02/23 02/02/18 03/02/18 £40,000 £3.22 E(73) Fixed rental increase on 02/02/2018 to £47,250 pa.

10 Tollpark Place 12,271 Premier Laboratory Systems Ltd 20/05/02 19/05/17 £46,750 £3.81 E(63)

14 Tollpark Place 24,858 Bott Ltd 20/12/10 19/12/20 £94,460 £3.80 E(71) SoC.

1 Napier Court 2,000 MEL (Dust & Fume Control) Ltd 30/10/09 29/10/19 £9,500 £4.75 F(90)

2 Napier Court 1,990 Vacant D(60)

3-7 Napier Court 5,952 Vacant E(72)


9 Napier Court 1,967 Inline Packaging Systems Ltd 18/12/14 31/12/19 01/01/17 £9,810 £4.99 F(87) SoC.

10 Napier Court 1,990 Vacant F(82)

11 Napier Court 1,969 Masonry Solutions Ltd 17/12/10 16/12/15 £9,845 £5.00 E(71) Lease running on tacit relocation**.

12 Napier Court 1,937 Alfa Scozia Ltd 01/11/12 31/10/16 £9,687 £5.00 E(76)

14 Napier Court 1,976 Vacant E(62)

15 Napier Court 1,966 Bridon Contracts Ltd 19/12/14 18/12/19 18/12/17 01/07/16 £9,830 £5.00 F(83)

16 Napier Court 1,960 VES Holdings Ltd 30/05/15 29/05/18 £9,810 £5.01 F(85) SoC.

17 Napier Court 1,972 Janice Campbell t/a Vogue Scotland

01/09/12 31/08/17 £9,761 £4.95 E(76)

18-20 Napier Court 3,963 SRL Traffic Systems Ltd 14/10/13 13/10/18 14/10/16 £16,843 £4.25 F(100) Rent free period from 14/10/2016 to 13/04/2017.

21-23 Napier Court 4,219 S & A Christie Ltd 30/03/12 29/03/22 30/03/17 30/03/17 £17,931 £4.25 D(47) SoC.

25-29 Napier Court 6,281 Stella Wholesale Ltd 02/03/16 01/03/21 £28,265 £4.50 D(48)Rental deposit of £8,479.50. Tenant paying £14,132.50 until 02/03/2017. Vendor to top up.


31-33 Napier Court 4,217 Neat Heat 02/03/06 01/03/16 £17,000 £4.03 E(76) Rental deposit of £4,993.75. Lease running on tacit relocation.

34/36 Napier Court 4,219 Futuro Fashion Ltd 24/12/14 23/12/19 £21,095 £5.00 F(84) SoC. Rent paid monthly.

35-39 Napier Court 6,269 Thermaflow Ltd 02/03/06 01/03/16 £23,000 £3.67 E(76) Rental deposit of £6,576.25. Lease running on tacit relocation.

1-7 Napier Place 26,500 Vacant E(68)

2-20 Napier Place 71,072 Cummins Ltd 12/11/15 11/11/20 12/11/18 £241,645 £3.40D(57) and

E(69)

SoC. Tenant paying £120,822.50 pa until 11/05/2017. Break penalty of £60,411.25 payable by tenant. Vendor to top up.

5 Napier Road 10,436 Kaefer C & D Ltd 18/07/13 17/07/23 18/07/18 £44,353 £4.25 F(92)SoC. Tenant paying £22,176.50 pa until 17/07/2016. Vendor to top up.

9-13 Napier Road 14,002 Teledyne Ltd 24/12/92 27/02/26 28/03/21 28/02/21 £56,008 £4.00 G(183) Rent free period from 28/02/2016 to 14/07/2016. Vendor to top up.

15-17 Napier Road 22,782 Bunzl UK Ltd 25/02/00 31/03/20 30/09/16 £92,500 £4.06 G(116)Tenant paying £46,250 pa until 01/04/2016. Break penalty determined by sliding scale. Vendor to top up.

UnitFloor Area

(sq ft) Tenant

Lease Start

Lease Expiry

Break Date

Review Date

Passing rent (pa)


EPC Comments

19/23 Napier Road 19,006 Bunzl UK Ltd 01/04/10 31/03/20 30/09/16 £72,500 £3.81C(32) and

C(41)

Tenant paying £36,250 pa until 01/04/2016. Break penalty determined by sliding scale. Vendor to top up.

25-27 Napier Road 13,721 Helistrat Group Holdings Ltd 13/05/15 12/05/20 13/05/18 £51,400 £3.75 E(76) SoC. 3 month rent free period if break not exercised.

29-39 & 41-43 Napier Road

50,766 Balfour Beatty WorkSmart Ltd 20/10/08 19/10/18 £218,000 £4.29 C(37) SoC. Tenant option to extend lease for 5 years from 19/10/2018.

45-47 Napier Road 12,684 Zepf Technologies UK Ltd 01/07/04 30/06/19 £46,800 £3.69 E(65) SoC. Tenant paying £23,400 pa until 30/06/2016. Vendor to top up.

53 Napier Road 10,981 The TPS Healthcare Group Ltd 01/10/01 30/09/16 £40,580 £3.70 F(87)

55 Napier Road 10,976 The TPS Healthcare Group Ltd 01/10/01 30/09/16 £40,820 £3.72 F(89)

57 Napier Road 9,401 MTS Nationwide Ltd 01/03/14 29/02/24 01/03/19 01/03/19 £37,604 £4.00 F(85) SoC. Tenant paying £18,532 pa until 29/02/016. Vendor to top up.

59 Napier Road 9,410 Food and Drink Hub (Scotland) Ltd

09/04/12 08/04/22 08/04/17 £35,288 £3.75 C(44) SoC.

61 Napier Road 15,560 Food and Drink Hub (Scotland) Ltd

01/10/13 30/09/21 01/10/17 £60,684 £3.90 C(35) SoC. Tenant paying £30,342 pa until 01/10/2017. Vendor to top up.

1-3 Napier Way 4,118 Trane (UK) Ltd 31/01/02 31/01/17 £17,500 £4.25 E(61)

4 Napier Way 4,210 SLT Handling Services Ltd 14/12/02 13/12/16 £16,950 £4.03 E(72) Lease running on tacit relocation.

5-7 Napier Way 4,222 The Scottish Wildlife Trust 19/06/01 18/06/21 19/06/16 £17,945 £4.25 D(49)

8 Napier Way 4,097 Vacant D(50)

7 Duncan McIntosh Road

2,153 Deko Scotland Ltd 28/11/03 27/11/18 £11,850 £5.50 E(80)

9 Duncan McIntosh Road

2,260 Revival Radio Ltd 18/01/06 18/01/16 £9,500 £4.20 E(77) Lease running on tacit relocation.

1-3 Wardpark Place 24,853 Batleys Pet Products Ltd 09/10/95 08/10/20 £74,300 £2.99 D(47)

2 Wardpark Place 18,742 Vacant C(44)

4 Wardpark Place 18,722 Vacant G(103)

5-7 Wardpark Place 24,870 William Wilson Ltd 08/02/07 07/02/22 08/02/17 08/02/17 £80,000 £3.22 D(52) SoC.

6 Wardpark Place 24,948 Vacant C(41)

4 Dunnswood Road (Site)

- Brodie Label Services Ltd 11/11/67 11/11/67 11/11/33 £1,000 - Occupied by way of long leasehold interest.

14 Dunnswood Road

9,941 Logan Inglis Ltd 10/08/00 09/08/20 £55,000 £5.53 F(84)

Telecoms Site - Thus plc 02/05/97 01/05/22 02/05/17 £2,312 -

Totals 829,851 £2,531,943

Tenancy Schedule Continued

UnitFloor Area

(sq ft) Tenant

Lease Start

Lease Expiry

Break Date

Review Date

Passing rent (pa)


EPC Comments

<2.5 years

2.5 - 5 years

5 - 7.5 years

>7.5 years

29%

56.5%

17%

9.5%

8.6%

13.5%3.7%

8.1%

10%

44%

Cummins Ltd

Balfour BeatyWorkSmart Ltd

Thomson Pettie Ltd

Bott Ltd

Bunzl

Other Tenants

Income Analysis

Rents

The estate is let at an average rent of £3.66 per sq ft on the let space, as broken down more specifically by unit size below.

Weighted Average Unexpired Lease Term Wardpark provides a weighted average unexpired lease term of 4.04 years to expiry and 2.75 years to break.

Vacancy There are currently 15 vacant units within the estate, representing a vacancy rate of approximately 17% by floor area.

OccupiersTenants within the estate include a varied range of national and local occupiers, therefore providing a broad and diverse income stream.

Income by Top 5 TenantsThe largest contributor to the passing rent is currently Thomson Pettie Ltd, accounting for 13.5%. This increases to over 43% for the top five occupiers.

£ (psf )

Years

<5,0000

1

2

3

4

5

0

1

2

3

4

5

£4.54

4.04

2.75

£4.22

£3.46£3.66

5,000 - 10,000

To expiry To break

>10,000

Unit size (sq ft)

All

£ (psf )

Years

<5,0000

1

2

3

4

5

0

1

2

3

4

5

£4.54

4.04

2.75

£4.22

£3.46£3.66

5,000 - 10,000

To expiry To break

>10,000

Unit size (sq ft)

All

Average Rent by Unit Size

WAULT

CumbernauldWardpark

Despite having a WAULT of 2.75 years (to breaks) Wardpark consistently and successfully retains its occupiers, with approximately 30% of the passing income having had a presence on the estate for in excess of 15 years

Bunzl UK Ltd & Bunzl Retail & Healthcare Supplies Ltd

Bunzl are an international distribution and outsourcing group with operations across the Americas, Europe and Australasia.

Dun & Bradstreet provide Bunzl UK Ltd with a credit rating of 4A1 and Bunzl Retail & Healthcare Supplies Ltd with a credit risk rating of 3A1 and the most recently available financial information for the tenants are set out below:

Bunzl UK Ltd

Fiscal Non consolidated GBP 31 Dec 2014 (000’s)



Sales Turnover 589,174 560,498 562,419

Profit / (Loss) Before Taxes

31,339 23,897 22,568

Tangible Net Worth 29,031 21,039 33,358

Net Current Assets (Liabilities)

21,236 16,213 28,998

Bunzl Retail & Healthcare Supplies Ltd




Sales Turnover 373,220 366,169 359,216


15,264 13,832 10,388



6,759 11,427 14,310

Tenant CovenantsFurther information on the most significant contributors to the passing rent is set out below:

Cummins Ltd

Cummins Ltd design, manufacture, service and sell diesel engines and related technology globally. They have 600 company-owned and independent distributor facilities and more than 7,200 dealer locations in over 190 countries and territories.

Dun & Bradstreet provide the tenant with a credit rating of 5A1 and the most recently available financial information for the tenant is set out below:




Sales Turnover 1,506,057 1,414,033 1,596,434


199,515 200,750 260,787



268,037 261,940 257,966

Balfour Beatty WorkSmart Ltd

Balfour Beatty WorkSmart Ltd delivers business process outsourcing services including accounts, payroll, expenses, HR and

IT to the Balfour Beatty Group operating companies and their clients.

Dun & Bradstreet provide the tenant with a credit rating of N1 and the most recently available financial information for the tenant is set out below:




Sales Turnover 41,132 37,480 -


(4,071) (3,581) -

Tangible Net Worth (15,852) (2,991) 50


(15,161) (3,819) (1,985)

Thomson Pettie Ltd

Thomson Pettie are an engineering subcontractor, providing a wide range of metal fabrications to markets through a range of techniques in three UK locations.


Fiscal Non consolidated GBP

31 Mar 2015

Fiscal Non consolidated GBP

31 Mar 2014

Sales Turnover 10,368,737 3,805,357

Profit / (Loss) Before Taxes 225,691 70,567

Tangible Net Worth 967,939 763,413


376,942 116,596

Bott Ltd

The Bott Group is a global manufacturer and supplier of workshop equipment, in-vehicle equipment and workplace systems across Germany, the UK and Hungary.


Fiscal Non consolidated GBP 31 Dec

2014


2013


2012

Sales Turnover 36,461,502 29,093,806 26,313,992


3,722,697 2,591,287 1,923,988

Tangible Net Worth 14,276,039 12,383,251 11,184,679


5,044,628 4,181,258 4,206,715

CumbernauldWardpark

Glasgow Industrial Occupational Market

Rents & Rental Growth

Prime headline rents in Glasgow currently stand at £6.00 per sq ft, below many of the UK’s other regional industrial markets and therefore providing significant room for future growth. As such Cushman & Wakefield Research anticipate rental growth of 8.3% in Glasgow between now and 2020.

Letting Dynamics & Development

The market is currently experiencing strong levels of activity, particularly for smaller units and as such landlords are increasingly able to dictate letting terms, pushing for longer leases and higher rents. Although we have seen development activity in some UK regions this has not been mirrored in and around the Glasgow area, despite the backdrop of a very buoyant occupational market. Soaring build costs are proving to be a significant inhibitor to development, and with a lack of available new stock occupiers are turning to the good secondary accommodation to satisfy their occupational requirements.

Availability rates continue to decrease and are currently estimated to be below 10%.

Wardpark & Local Occupational MarketHeadline rents within Wardpark Industrial Estate currently average £3.66 per sq ft, having increased from £3.38 per sq ft in 2007 and crucially remain 39% below prime headline rents within the wider Glasgow industrial market.

Passing rents within the estate range from £2.30 to £5.53 per sq ft, with a typical upper rental tone now established at £5.00 per sq ft, which demonstrates the reversionary potential of the asset.

The macro and micro occupational markets in which Wardpark sit therefore strongly underpin and support the asset management initiatives we believe are available to a purchaser.

In addition, we are aware that a tenant has made an offer on their unit equating to £45 per sq ft capital value, demonstrating the potential to maximise returns through owner occupier acquisitions.

Prime UK Headline Industrial Rents

Glasgow Industrial Rental Growth

National Industrial Occupational MarketThe national industrial occupational market continues to be constrained by a lack of good quality accommodation and whilst there is some evidence of increasing speculative development, this has not been witnessed throughout all the UK regions.

Demand significantly outstrips supply in most locations with new units being taken by occupiers quickly. This continued supply and demand imbalance is therefore maintaining upwards pressure on rents and capital values across both the prime and secondary markets. This is evidenced across all of the UK’s regional industrial markets as highlighted below.

£0

£2

£4

£6

£8

£10

£12

£14

£16

Heathro

wBris

tol

Birmingham

Edinburgh

Man

cheste

r

Cardiff

Glasgow

Leeds

Nottingham

Newcastl

e

£5.75

£6.00

£6.25

£6.50

£6.75

2017 2019 202020182016

CumbernauldWardpark

UK Commercial Property Investment Market

Transactional Volumes and Returns

2015 transactional volumes within the UK commercial real estate market were 4% ahead of 2014 levels at £62bn, resulting in the highest annual total ever recorded.

UK Transactional Investment Volumes: 2010-2015

02011

30

10

20

40

60

50

2013 2014 201520122010

Year

£bn

0Retail

4

2

10

8

6

14

12

20

18

16

IndustrialOfficeAll Property

Sector

%

UK Multi-let Regional Industrial Investment The market continues to demonstrate robust investor demand for multi-let industrial assets. This is derived from a diverse group of investor types, with many widening their investment criteria and moving up the risk curve due to a lack of prime available stock and the sector’s ability to deliver increasingly attractive returns. The market has been underpinned further by buoyant occupational markets and the diverse and resilient income streams generated by multi-let industrial investments have attracted investors looking to drive rents and value through asset and tenant management initiatives.

Opportunities to acquire large regional multi-let industrial investments are rare, but recent and relevant transactions include:

Comparable Investment Transactions

Property Address GIA (sq ft)WAULT (yrs)(to breaks)

PurchasePrice

NIYCapital Price

(per sq ft)Purchaser Date

Parkview Industrial Estate, Hartlepool

190,973(32 units)

2.16 £4.86m 9.23% £25.45South Street

CapitalJan-16

Roseland Business Park, Newark

360,881(27 units)

3.00 £12.75m 8.89% £35.33Private Overseas

InvestorDec-15

Baillieston Distribution Centre, Glasgow

176,764(34 units)

4.10 £5.80m 8.06% £32.81Rockspring &

Caisson JVDec-15

Millshaw Park, Leeds463,400

(27 units)5.50 £22.70m 7.25% £48.99 Schroders Jul-15

Old Dalby Industrial Estate, Melton Mowbray

531,383(18 units)

2.45 Q. £12.59m Q. 9.25% Q. £24.00 Prop Co Under OfferIPD Property Returns: 2015

The 12 months to December 2015 represented another strong year for the industrial sector as IPD total returns hit 17.31%, comparing favourably with 13.8% across all sectors.

CumbernauldWardpark

Asset ManagementWardpark provides a host of asset management opportunities, more particularly:

• Improving the rental income within the estate by:

- Letting the currently vacant units

- Improving the rental tone within the estate, most notably within units let at historic and modest rental levels

- Undertake refurbishment and reconfiguration of units to achieve higher rents

• Pursue ongoing lease re-gear and restructure discussions with tenants to improve Wardpark’s WAULT

• Pursue ongoing discussions with occupiers, taking advantage of the estate’s flexibility to expand their presence on the estate

• Sell off individual units to owner occupiers at a pricing premium to investment value

Prospective purchasers would have the opportunity to continue several ongoing conversations with various tenants with regards to lease re-gears and occupiers looking to expand into vacant units, of which further detail can be provided on request.

VAT & TOGCWardpark is subject to an option to tax and as such VAT will be payable upon the purchase price. However, it is anticipated that the transaction will be treated as the transfer of a going concern (TOGC).

Data RoomFurther information is available within the data room and access can be provided via Cushman & Wakefield or Inglis Howie.

Proposal We are instructed to seek offers in excess of £24,000,000 (Twenty Four Million Pounds) which equates to a net initial yield of 9.93%, assuming purchaser’s costs of 6.26%, a reversionary yield of 11.93% upon the letting of the currently vacant units at our opinion of ERV and a low capital value of £28.92 per sq ft.

Investment Rationale

UK Commercial Real Estate: Investment Safe Haven

Due to recent global, political and economic instabilities and the strong performance of UK commercial real estate against other asset classes, the UK commercial property investment market has continued to be viewed as a safe haven for investment by investors. This is evidenced by the IPD All Property Index return for the 12 months to December 2015 at 13.8%, in stark contrast to the -4.2% returned by the FTSE 100 Index and -24.3% by the Bloomberg Commodity Index.

UK Commercial Property vs Other Asset Classes

20%13.80%

-4.20%

-24.30%

CommoditiesFTSE 100Property

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

UK

Germany

Nordics

France

Periphery

Benelux

Rest of Europe

CEE

34%

22%11%

11%

9%

6%

4%3%

Investors continue to target UK commercial real estate and as such the UK accounted for 34% of all European commercial property investment in 2015. Cushman & Wakefield Research shows that there has been an increasing amount of global capital targeting the UK, with the strongest investment volume growth present within the UK regions.

European Commercial Property Investment: 2015

CumbernauldWardpark

Jonathan McManus

0141 248 3822

07540 651 383

[email protected]

Scott Howie

0141 248 2055

07973 693 090

[email protected]

Further Information For further information, access to the data room or to arrange an inspection please contact:

Jeremy Beckett

020 7152 5341

07771 815 145

[email protected]

James Lawlor

020 7152 5339

07912 798 744

[email protected]

Juliet Kelly

020 7152 5347

07808 012 853

[email protected]

MISREPRESENTATION CLAUSE Cushman & Wakefield and Inglis Howie gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute

part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or

otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed

that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars

to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of

a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in March 2016.

04658 / 020 7355 2500 / taylerreid.co.uk

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