FREEHOLD NEW WAREHOUSE INVESTMENT FOR SALEBLU, 1 FEATHERSTONE ROAD, WOLVERTON MILL, MILTON KEYNES, MK12 5TH

Investment Summary

• Golden Triangle location in established commercial area of Wolverton Mill, Milton Keynes

• Excellent access to the road network for both A5 and M1

• Newly constructed 31,568 sq ft single let warehouse - BREEAM Excellent and EPC ‘A’ rating

• New 10 year lease to Funrise International Limited, with parent company guarantee from Matrix Holdings Limited

• Parent company turnover $1.4bn HKD

• Income of £267,750 per annum

• Subject to 5 yearly RPI linked reviews with a cap and collar of 2% and 4%

• Offers are sought in excess of £4,375,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting a net initial yield of 5.75% assuming purchaser’s costs of 6.56%. This reflects a capital value of £138.60 per sq ft

• Minimum reversionary yield of 6.34% at rent review in year 5 and an equivalent yield of 6.19%.

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2 HoursLocationMilton Keynes was designated a New Town in 1967, and since then has become one of the fastest growing towns with a population that has quadrupled from 60,000 in 1967 to 264,500 in 2016. It is forecasted to grow a further 16% by 2026. The MK population growth has outstripped the UK by 11% since 2001. The current workforce is young and dynamic with 49% of the population under 35 years old. The latest Irwin Mitchell Powerhouse Report (Nov 2018) entitled ‘The Brexit Economy’ reports that Milton Keynes was the second fastest growing economy in Q2 2018, with annualised GVA growth of 3.1%. In addition to strong growth in output, Milton Keynes also saw employment expand by 1.7%, the fifth strongest growth amongst the 46 towns and cities analysed.

Milton Keynes benefits from a fantastic infrastructure network with the M1 and A5 at either end of the town. Approximately 30% of the country’s population can access Milton Keynes within a 90 minute drive time. It has direct rail services to London, Birmingham and Scotland. London Luton Airport is located approximately 22 miles south east of Milton Keynes being the fifth busiest airport in the UK. London Heathrow, Gatwick & Birmingham International Airports are also within easy reach.

Milton Keynes is located at the heart of the strategically important ‘Oxbridge Growth Corridor’ and is expected to benefit further from substantial government investment. This will deliver the Varsity Rail Line and the Expressway Road between Oxford and Cambridge by 2031 and 2030 respectively with the potential for 1 million new homes by 2050. This area currently contributes £90 billion a year to the UK Economy and is forecast to grow to £250 billion by 2050. The Oxbridge Growth Corridor is home to world class universities, with Cambridge and Oxford currently ranked at 1 and 2 globally. Over 3.3m live along the corridor, a similar figure to Silicon Valley USA, with 60% of people educated to degree level in Oxford and Cambridge, almost double the UK average.

Milton Keynes’ engineering, financial and professional service businesses benefit from 25% higher productivity per worker than the UK average. The Oxbridge Growth Corridor sits adjacent to ‘Motorsport Valley’, a high-density cluster of 4,300 hi-tech R&D businesses which are responsible for over £9bn in worldwide sales turnover.

CLICK BELOW TO VIEW OXBRIDGE GROWTH CORRIDOR MAPS:BY ROAD

Milton Keynes Centre 4 milesA5 1 mileM1 Junction 14 7 milesLondon 55 milesM25 32 miles

BY RAILLondon Euston 34 minutesBirmingham Airport 43 minutesGatwick Airport 85 minutes

SituationBLU is located fronting Featherstone Road on the Wolverton Mill employment area of Milton Keynes which benefits from excellent access to the A5 dual carriageway via the Abbey Hill interchange. The estate is approximately 4 miles northwest of Central Milton Keynes with Junction 14 of the M1 motorway 7 miles to the east. Nearby tenants include ByBox Field Distribution, Fossil UK, St Johns Ambulance, HF Chocolates and Aston Martin, GM Distribution and Cleveland Cables.

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FOSSIL UK

API TECHNOLOGIES CORPORATION

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HF CHOCOLATES

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CLEVELANDCABLES

BLU

RIDGEWAYCENTRE

ASTON MARTIN

FOSSIL UK

API TECHNOLOGIES CORPORATION

GM DISTRIBUTIONBYBOX

ACTION STORAGE SYSTEMS

DescriptionBLU is a state of the art new headquarters production/warehouse development built to the highest environmental performance standards. Two storey Grade ‘A’ air-conditioned office space fed by a Photovoltaic array on the roof is located on the front elevation with WCs on both floors and kitchen at first floor. The warehouse has a floor loading of 50 kN/m2. The vendor is installing an additional loading door as landlord’s works under the terms of the new letting, thereby giving two loading doors in total. The building benefits from all mains services including water, drainage, gas and three phase power. 62 car spaces are located to the side of the unit. A secure fenced yard is situated to the rear of the unit.

PRODUCTION / WAREHOUSE

OFFICES/ANCILLARY Secure service yard

with lorry parking

160 kVA

power supply

62 car parking

spaces

2 storey fully

fitted offices

BREEAM Excellent

specification

Air conditioning to

offices and core area

2 ground level access

loading doors

6.1m min eaves

height rising to 8.2m

Photovoltaic array

generating 25KW

The specification is as follows:

Energy Performance CertificateNon-Domestic Building

Certificate Reference Number:0490-0033-1789-1929-5092

1 Featherstone RoadWolverton MillMILTON KEYNESMK12 5TH

This certificate shows the energy rating of this building. It indicates the energy efficiency ofthe building fabric and the heating, ventilation, cooling and lighting systems. The rating iscompared to two benchmarks for this type of building: one appropriate for new buildings andone appropriate for existing buildings. There is more advice on how to interpret this informationin the guidance document Energy Performance Certificates for the construction, sale and letof non-dwellings available on the Government's website atwww.gov.uk/government/collections/energy-performance-certificates.

Energy Performance Asset Rating

Technical Information Benchmarks

Main heating fuel: Grid Supplied ElectricityBuilding environment: Mixed-mode with Mechanical VentilationTotal useful floor area (m2): 3117Building complexity (NOS level): 4Building emission rate (kgCO2/m2 per year): 13.51

Primary energy use (kWh/m2 per year): 97.97

Buildings similar to thisone could have ratings asfollows:

If newly built

If typical of theexisting stock

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice. The areas stated below are on a Gross Internal Area basis.

Sq ft Sq m

Production/Warehouse 27,027 2,511

Ground Floor Office 2,272 211

First Floor Office 2,269 210

TOTAL 31,568 2,933

SiteThe property has a site area of 0.718 hectares (1.77 acres) giving a site cover of approximately 38%.

TenureFreehold

TenancyThe property is let to Funrise International Limited on a new full repairing and insuring lease from 01 May 2019 for a term of 10 years. There is a 6 month rent deposit of £133,875 plus VAT. There is also a parent company guarantee from Matrix Holdings Limited. The lease is within the security of tenure provisions of the Landlord and Tenant Act 1954. There is a stepped rent for the first five years of the term as follows:

Year 1 - £142,375 paYear 2 - £170,000 paYear 3 - £191,250 paYear 4 - £212,500 paYear 5 - £267,750 pa

The vendor will top the rent up to £267,750 per annum from completion. The rent will be reviewed 5 yearly subject to RPI linked uplifts with a collar and cap at 2% and 4% per annum. The minimum rent following rent review will therefore be £295,617 per annum.

Tenant Covenant Founded in 1987, Funrise is a global innovator and industry leader in the design, manufacturing, marketing and distribution of toys and games worldwide.

Funrise is headquartered in Van Nuys, California, with additional U.S. offices and showrooms in Minneapolis, and Bentonville, with international offices in Canada, Mexico, United Kingdom, France, Spain, Australia and Hong Kong. Funrise is a wholly-owned subsidiary of Matrix Holdings Limited. The company was previously located in Milton Keynes at Crownhill Business Centre.

For further information : www.funrise.com / www.matrix.hk.com

Recent financial performance is as follows:

31/12/2017 £ GBP

31/12/2016 £ GBP

31/12/2015 £ GBP

Sales / Turnover 1,165,436 990,269 476,335

Profit / (Loss) Before tax 48,439 26,224 16,689

Net Current Assets (Liabilities) 111,098 60,934 32,467

Tangible Net Worth 138,420 101,813 85,850

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BLU

Guarantor Matrix Holdings Limited was established in 1979, with its headquarters office in Kowloon Hong Kong. It is a Bermuda registered company. Matrix is a well established manufacturer of plastic, die-cast and plush toys with production including mold making, manufacturing and design. Matrix has over a successful business relationship with McDonalds for over 16 years. The company employs over 16,000 people with production and warehouse floor space in excess of 2.15m sq ft in China, Vietnam and Hong Kong.

Matrix Holdings Limited has reported the following recent financial performances. The figures are reported in HKD $’000:

2017 HKD $'000 2016 HKD $'000

Revenue 1,434,008 1,247,218

Gross Profit 469,284 449,285

Profit for the year attributable to the owners of the company 112,670 122,654

Net Assets 1,027,558 980,182

As at 25 April 2019, 100 HKD = £9.90 GBP [source: xe.com]

Milton Keynes Industrial MarketSupply shortages of large distribution space curtailed take-up in and around Milton Keynes in 2018. Total requirements stand at 10.494m sq ft as at December 2018 with requirements for >50,000 sq ft sheds at record levels. Available supply was at 3.05m sq ft as at December 2018 reflecting an 8% availability rate, however around 574,250 sq ft of this space is in a single building at Gazeley’s Altitude at Magna Park. Given the level of unsatisfied requirements, we consider that the 3.1% prime rental growth seen over the last year is likely to be repeated in 2019. Prime Milton Keynes’ industrial rents over the last 5 years showed an average of 5.7%pa growth with good secondary rents achieving 7.4%pa over the same period. (Source: Bidwells Research).

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Industrial Investment Transactions Recent transactions include:

Address Date Yield Price Area (sq ft) AWULT expiry (break) Tenant(s) Purchaser

BLU, 1 Featherstone Road, Wolverton Mill Available 5.75% £4.375m 31,568 10 years Funrise International Ltd Available

Knowl Piece, Hitchin 4/2019 4.87% £5.15m 68,392 7 years JAS Bowman & Sons Ltd Private High Net Worth

Link 10, Napier Way, Crawley 4/2019 4.47% £3.47m 11,818 15 years Rentokill Initial Plc Vane Real Estate Capital

Barberry 65, 100 Grosvenor Road, Birmingham 1/2019 4.67% £9.04m 65,710 10 years Mayflex UK Ltd M&G Real Estate

A&B Kingston Gateway, Kingston, MK 12/2018 4.53% £25.3m 178,773 9 years Culina Logistics Ltd & MacFarlane Group UK Ltd Aberdeen Standard

2 Eastman Way, Hemel Hempstead 8/2018 4.91% £7.9m 41,292 9.5 years 66 Books Ltd CIFCO

Michigan Drive, Tongwell, MK 7/2018 2.8% NIY* £12m 112,000 10 years Royal Mail Plc LondonMetric Property Plc

Precedent Drive, Rooksley, MK 12/2017 5.4% £6.05m 55,773 8.9 years Hitachi Power Tools UK Ltd Private Investor

Mill Park, Wolverton, MK 12/2017 4.94% £16.83m 147,134 10 years (5.8 years)ByBox Field Support, Aston Martin Lagonda, Grafton Merchanting GB

M&G Real Estate

Unit A, Tongwell Street, Tongwell, MK 11/2017 4.71% £12.78m 103,644 8.5 years (3.75 years) Westcoast Ltd Shell Pension Trust

*Outstanding rent review

VATWe understand that the property is elected for VAT. It is assumed that the transaction will be structured as a transfer of a going concern.

Capital AllowancesThe benefit of any unclaimed capital allowances are available to the purchaser.

Proposal Our client is seeking offers in excess of £4,375,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting a net initial yield of 5.75% assuming purchaser’s costs of 6.56%. This reflects a capital value of £138.60 per sq ft, a minimum reversionary yield of 6.34% at rent review in year 5 and an equivalent yield of 6.19%.

Further Information Should you have any queries or wish to make a site inspection, please contact:

Saul Western DD: 020 7297 6275 saul.western@bidwells.co.uk

Lucy Young DD: 020 7297 6278lucy.young@bidwells.co.uk

Bidwells25 Old Burlington Street London W1S 3AN

Tel: 020 7493 3043bidwells.co.uk

Important noticeBidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: Nothing contained in these particulars or their contents or actions, both verbally or in writing, by Bidwells LLP form any offer or contract, liability or implied obligation to any applicants, viewing parties or prospective purchasers of the property to the fullest extent permitted by law and should not be relied upon as statements or representative of fact. No person in the employment of Bidwells LLP or any joint agents has authority to make or give any representation or warranty whatever in relation to this property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only, may not be to scale and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP has not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. All rentals and prices are quoted exclusive of VAT unless otherwise stated.Prospective purchasers will be asked to produce identification of the intended Purchaser and other documentation in order to support any conditional offers submitted to the vendors. Bidwells LLP accepts no liability of any type arising from your delay or other lack of co-operation. We may hold your name on our database unless you instruct us otherwise.OS licence no. ES 100017734. © Copyright Bidwells LLP 2017. Bidwells LLP is a limited liability partnership registered in England and Wales (registered number OC 344553). Registered office is Bidwell House, Trumpington Road, Cambridge CB2 9LD where a list of members is available for inspection. Your statutory rights are not affected by this notice. May 2019