INVESTMENT OPPORTUNITY

Orbital ParkAshford, Kent, TN24 0GA

Multi-let Industrial/Warehouse Investment – Fully let to Meggitt Properties Plc andMicheldever Tyre Services Limited

• Offers sought in excess of £4,650,000 (Four Million, Six Hundred and Fifty ThousandPounds) reflecting an attractive net initial yieldof 8.5% having allowed for purchaser’s costs of5.8%. This represents a low capital value of£66 psf.

Proposal

• An industrial/warehouse facility, let to two strongcovenants, measuring approximately 70,299 sq ft(GIA).

• Strategically located within close proximity ofAshford town centre and Junction 10 of the M20.

• Site area of 4.32 acres with a low site density of36%.

• Fully let to two strong covenants, MeggittProperties Plc and Micheldever Tyre ServicesLimited, expiring 16th May 2017 and 30thNovember 2021 respectively.

• Passing rent of £418,060 pa (£5.95 psf).

• Weighted average unexpired lease term of 1.4 years to breaks and 3.0 years to expiries.

• Freehold.

Description Tenure & Tenancy

INVESTMENT SUMMARY

NEWTOW

N ROAD

FAIRVIEW DRIVE

KIN

GSN

OR

TH

RO

AD

M20

WA

TERB

RO

OK

AV

RO

MN

EY M

ARSH

RO

AD

OSBORNE ROAD

A292

THE LO

NG

BARRO

W THE

BOULEVARD

CANTERBURY ROAD

CHURCH ROAD

BO

YS

HALL ROAD

EARLS WORTH ROAD

NORMAN ROAD

WHITFIELD

ROAD

BOND ROAD

CH

RISTC

HU

RC

H ROAD

HIG

HFIE

LDR

OA

D

CROWBRID

GE

ROAD

MONUMENT WAY

10

WILLIAM HARVEY HOSPITAL

A2042

A2070

RUCKINGE DYKE

WHITEWATER DYKE

ASHFORDASHFORD

ASDASUPERSTORE

KENT CHAMBER OF COMMERCE

ASHFORDDESIGNER

OUTLET

TO L

ONDO

NDO

VER

WILLESBOROUGH

SEVINGTON

TOWN CENTRETOWN CENTRE

A420

A346

A34

A339

A33

A3

A24

A22

A404

A413A12

A10

A232

A40

A418

A127

A13

A20

A31

A229

A21

M40

M25

M4

M3M25

M20 M2

M11

A22

A21

A228

03

A

A34

M23

12

12

1

11

1A

13

4

6A

21A

4

6

8A

15

1

8

6

10

9 5 7

10

13

2

5

7

GUILDFORDGUILDFORD

SLOUGHSLOUGHMAIDENHEADMAIDENHEAD

READINGREADING

CROYDONCROYDON

TWICKENHAMTWICKENHAM

WEMBLEYWEMBLEY

WATFORDWATFORD

HEATHROWAIRPORT

1

H OOWWA RRPPOORRTAIRR TAI TOOR

HEEEAAAAAATTTTHHRRROOAATTTHHHHRRRRTTTHHHAIRRRPPOORRRTAIAIIRAA

MAIDSTONEMAIDSTONE

OXFORDOXFORD

CRAWLEYCRAWLEY

LONDONLONDON

ROYALTUNBRIDGE

WELLS

ROYALTUNBRIDGE

WELLS

CANTERBURYCANTERBURY

FOLKESTONEFOLKESTONE

CHELMSFORDCHELMSFORD

SOUTHEND-ON-SEASOUTHEND-ON-SEA

ASHFORDASHFORD

SWINDONSWINDON

NEWBURYNEWBURY

DOVERDOVERLOCATION

LocationAshford is located in Kent at the south edge of theNorth Downs, 53 miles (85.3 km) south-east ofCentral London, 20 miles (32.2 km) south-east ofMaidstone and 21 miles (33.8 km) west of the Portof Dover. The Port of Dover is the world’s busiestpassenger port with 16 million travellers, 21 millionlorries, 2.8 million cars and motorcycles and 86,000coaches passing through each year. AshfordInternational Rail Station provides direct trains viathe Eurostar to Paris in under two hours.

The 2011 census revealed that the borough ofAshford saw the largest population growth in Kent,with records showing a 14.6% rise to approximately118,000 inhabitants.

Key DevelopmentsAshford has exceptional travel connections,especially with the high speed train link to London,which makes it an appealing location for businesses. The regeneration and expansion of Ashford willprovide more jobs, shops, community, educationaland leisure facilities, which will help Ashford tobecome more competitive and better able toattract new businesses and opportunities.

Opposite the subject property, Crest Nicholson arecurrently building Finberry, a collection of cottagesand family homes. The development promises toinclude 1,100 houses and 70,000 square metres ofbusiness floorspace, together with mixed usecommunity facilities, access roads, footpaths, cycleroutes, landscaping and public open space.

Construction began on Chilmington Green in 2015,comprising a development that will provide around5,750 new homes arranged in three distinctiveneighborhoods, as well as retail, community, socialand recreational facilities. Chilmington Green willboast its own high street, a secondary school, fourprimary schools, a park and extensive areas of greenspace. It is expected to provide over 1,000 new jobsfor the local area. Barratt Homes are among theconsortium in place to develop the project.

Stanhope are planning to redevelopElwick Place in Ashford Town Centre,which represents over £75 million worthof investment.! The planning applicationsinclude a new six-screen boutique cinema,a 60-bed family hotel, restaurants andcafés, homes, car parking and a space forevents and community uses.

HOBBS PARKER

PC WORLD

TK M

AXX

BMW

MCDONALDS

ORBIT

AL P

ARK

A2070

THE BOULEVARD

THE

LONG B

ARRO

W

HALL AVENUE

RTH ROAD

GLADSTONE

FOSTER ROAD

MO

NUM

ENT W

AY

COMMUNICATION

SituationThe subject property is situated on Ashford’s premier estate,Orbital Park, which is located within 1 mile from Junction 10 of theM20. Orbital Park is a strategic national and international, businessand industrial location, situated within the Channel Tunnel corridorand an area designated for significant commercial expansion.

Ashford town centre and Ashford International rail station areboth approximately 1!miles to the north via Newtown Road.

Surrounding occupiers on Orbital Park include Premier Inn, BP Travel, Kent Pharmaceuticals, Euro Car Parts, BMW, Mercedes Benz, Volkswagen, Chrysler and McDonald’s.

CommunicationAshford is well served by road transportation links withJunction 10 of the M20 being less than a mile away from theproperty, providing direct access to the M25 and M26national motorway network, the Channel Tunnel and ports tothe south. Ashford International rail station is within one mileand provides a high speed link to London St Pancras andEurope.

Train services to Ashford International take approximately 37 minutes from London St Pancras, 60 minutes from LondonVictoria, and 78 minutes from Charing Cross.

Eurostar trains from Ashford International provide high speedservices to major continental European cities, including Lille(56 mins), Brussels (100 mins) and Paris (112 mins). TheChannel Tunnel rail link at Folkestone allows fast vehicularaccess with an estimated journey time to Calais of 35 minuteswith up to 4 shuttles per hour. Additionally, there arefrequent ferry services from the port of Dover, which islocated within a 20-minute journey time.

Ashford is well served by airports, with London Gatwick andLondon City airports both within 60 miles.

Meggitt andMicheldever

7 8 9 10

A207

0

1 BMW

2 CCL Label

3 Connect 10 BusinessPark

4 Keel Toys

5 Ashford Retail Park

6 Ashford AmbulanceService

7 Volkswagen

8 Nissan

9 Orbital MarketingServices Group

10 Mercedes Benz

11 Skoda

12 Maruwa Europe

13 Honda

14 Volkswagen

15 Toyota

16 Ashford Trade Centre

17 Premier Inn

11 12 13 14 15 16 17

M20 (J10)

1 2 3 5 64

SITUATIONDOVER

LONDON

Low site coverage of 36%

DESCRIPTION

The subject property was constructed in 1999and comprises a single storey detachedindustrial/warehouse building, split into twoseparate self-contained units.

The building is of a steel portal frameconstruction, with brickwork elevations and adouble pitched roof, covered in lined profilemetal sheeting incorporating translucent rooflighting. Two storeys of office accommodationhave been incorporated into the front of thebuilding, including solid concrete floors laidwith carpet, suspended ceilings, recessedlighting, and ceiling mounted air conditioning.

The Meggitt unit is used primarily for high levelmanufacturing and has the following features:

• 6m eaves

• Ancillary office space over two floors (17% content)

• 2 level access doors

• New recently fitted 5 tonne crane (tenant fitout)

• Secure perimeter fencing

• Hi-tech demonstration room

SiteThe property is situated on a site with anarea of approximately 4.32 acres (1.76 hectares). The overall site coverage is 36%.

The Micheldever unit is used primarily forconducting MOTs and the storage of tyres withthe following features:

• 6m eaves

• 2 level access doors

• 1 dock leveler

• Ancillary office space on ground floor (8% content)

• Additional mezzanine space fitted by tenant

Total GIA6,531 sq m

(70,299 sq ft)

Micheldever Tyre Services Ltd –

Ground Floor Office

167 sq m(1,800 sq ft)

Micheldever Tyre Services Ltd –

Ground FloorWarehouse1,848 sq m

(19,887 sq ft)

Meggitt Properties Plc –Ground Floor

Extension144 sq m

(1,554 sq ft)

ACCOMMODATION

The property has been measured in accordance with the RICS code of measurement practice on a GIA basis as follows:

TenancyThe property is let on two separate FRI leases to Meggitt Properties Plc and Micheldever Tyre ServicesLimited as follows:

* 6 months’ notice required for tenant to break.

TenureThe property is held Freehold.

Very well entrenched tenants withrealistic opportunities to regear

Meggitt Properties Plc –Ground Floor

Production Area3,596 sq m

(38,705 sq ft)

Meggitt Properties Plc –

Ground & First FloorOffices

776 sq m(8,353 sq ft)

TenantArea

(sq ft)Income Start date Break Expiry

RentReview

Meggitt Properties Plc 48,612 £280,000 17/05/2005 - 16/05/2017 -

Micheldever TyreServices Ltd

21,687 £138,060 01/12/2006 01/12/2016* 30/11/2021 01/12/2016

Total 70,299 £418,060 WAULT 1.4 WAULT 3.0

TENANT COVENANTS

Meggitt Properties PlcMeggitt Properties Plc is a subsidiary of Meggitt Plc,a!British!engineering!business specialisingin!aerospace!equipment. It is listed on the!London StockExchange!and is a constituent of the!FTSE 100 Index.

Meggitt Properties Plc (Registration No: 00236045) hasreported the following financial results:

Further information can be found on their website:www.meggitt.com

Meggitt Properties Plc has an Experian credit rating of 100and represents a ‘below average risk’ of business failure.

Micheldever Tyre Services LimitedThe Micheldever Group is the largest independent wholesaler,distributor and retailer of tyres in the UK. Selling six milliontyres nationwide (20% of the total UK market).

Micheldever Tyre Services Ltd (Registration No: 01817398)has reported the following financial results:

Further information can be found on their website:www.micheldevergroup.co.uk

Micheldever Tyre Services Ltd has an Experian credit ratingof 100 and represents a ‘very low risk’ of business failure.

The lease to Micheldever Tyre Services Ltd was assignedfrom Tyreweb Limited in June 2009.

PlanningThe subject units benefit from Use Classes B1, B2 and B8.

MeggittProperties Plc

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

Turnover - - -

Pre-tax Profit £15,712,000 £36,646,000 £78,817,000

Total Net Worth £409,556,000 £418,371,000 £462,326,000

Micheldever TyreServices Limited

31/03/2012 31/03/2013 31/03/2014

Turnover £334,811,000 £325,193,000 £331,152,000

Pre-tax Profit -£651,000 £5,007,000 £6,080,000

Total Net Worth £7,837,000 £15,436,000 £23,707,000

M&G, Standard Life, L&G and BlackRock are all major shareholders in Meggitt Plc

The industrial market continues to receive stronginvestor demand from a combination of UKinstitutions, foreign investors and propertycompanies. This demand, combined with a shortageof good quality stock, has resulted in continuedyield compression over the last 18 months with aripple effect from London to the prime and goodsecondary regional locations as investors arelooking up the risk curve. Outlined below are somerelevant investment transactions.

Well located industrial building withlimited supply in South East UK

InvestmentRationale

Low site coverage of 36%

Both tenants well entrenched to theproperty

Opportunity to asset manage byregearing leases

Attractive net initial yield

AddressSize Sq ft

TermYears

Rentpsf

Date Price YieldCap Valpsf

XPO Logistics, Vantage Point, Maidstone ME6 5SL 77,841 5 £5.74 Oct-15U/O – quoting£6.00m

7.00% £77.00

Units A-D & H, Foster Road, Ashford TN24 0SH 82,010 3.7 £5.76 Oct-15U/O – quoting£6.75m

6.61% £82.00

Amscan, Brudenell Drive, Milton Keynes, MK10 0DA 111,445 2 £5.63 Aug-15 £10.01m 5.82% £89.82

Units 9-11, Saracen Close, Gillingham, ME8 0QN 33,354 2.5 £5.85 Jun-15 £2.50m 7.85% £74.95

Activair UK, Watkins Close, Basildon, SS13 1TL 37,957 4.8 £6.43 Apr-15 £3.55m 6.51% £93.53

Units A1-3 & B1 Regent Park, Princes Risborough, HP27 9PX

29,232 6.7 £8.57 Feb-15 £3.20m 7.40% £109.47

St. Johns Court, Ashford, TN24 0SG 52,837 3.6 £4.97 Jan-15 £3.75m 6.63% £70.97

P2P Mailing, Festival Way, Basildon, SS14 3WB 62,162 9 £5.07 Dec-14 £4.77m 6.25% £76.73

Manor Royal Industrial, Crawley, RH10 9TN 51,861 4 £6.27 Jul-14 £4.48m 6.86% £86.38

Strong tenant covenants

INVESTMENT MARKET

EPC RatingThe Micheldever Tyre Services Ltd unit has been given an EPCrating of E-104.

An EPC has been commissioned for the Meggitt Properties Plcunit and will be available shortly.

VATWe understand the property has been elected for VAT whichwill therefore be chargeable on the sale price, unless thetransaction can be treated as a Transfer of a Going Concern(TOGC).

Web Accesswww.cushmanwakefieldinvestmentsales.co.uk/cw/orbitalpark

PROPOSAL

We are seeking offers in excess of £4,650,000 (FourMillion, Six Hundred and Fifty Thousand Pounds)for our client’s freehold interest in the property subject tocontract. A purchase at this price reflects a net initialyield of 8.5% having allowed for purchaser’s costs of5.8% and a capital value of £66 psf.

November 2015

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced ingood faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation orwarranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars shouldbe deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regardingpollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.

Production by PlusArt 0115 972 4000

Richard PeaceE: richard.peace@cushwake.comT: +44 (0) 207 152 5283

Nicholas DufeuE: nick.dufeu@cushwake.comT: +44 (0) 207 152 5230

Ben SleathE: ben.sleath@cushwake.comT: +44 (0) 207 152 5366

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

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