A Bilfinger Real Estate company

Units 1 & 2,A1Business Park

High Yielding Industrial Investment Property

Knottingley Road,Knottingley,WF11 0BU

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Investment Summary• Twoindustrialunitsextendingto76,344 sq ft

• Totalrentpassingof£239,042.50

• AssetManagementopportunities

• Fixed rental increases

• Freehold

• Offersaresoughtinexcessof£2,260,000

• Attractivenetinitial yield of 10%

• Attractivecapital value of £29.60 per sq ft

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Location & SituationLocation

Knottingley is located in West Yorkshire in the north ofEngland,Thetownhasanassociationwiththemanufacturingofglass,withArdaghGlass,StolzeFlaconnageandAlliedGlasshavingproductionfacilitiesinthearea.Leedsislocated20 miles to the North, Wakefield is located 10 miles to theWestandDoncaster17milestotheSouth.

A1 Business Park, is located adjacent to the junction oftheA645andA612,providingexcellentvehicularaccesstoboththenationalmotorwaynetworkandthesurroundingregionaltowns.

TheA645,wasuntilrecentlythemainA1greatnorthroad, and still provides direct access to both the A1(M)andM62motorways.Junction33oftheM62issituatedapproximately1miletothesouth,andfromthisintersection,theA1(M)iswithineasyreach.

Situation

A1 Business Park occupies a prominent position adjacenttotheA1(M),withdirectaccesstotheM62viaJunction33someonemiletothesouthviatheA645.ThebusinessparkisgenerallymadeupofsimilarindustrialbuildingswithseveralofficebuildingsandfamilypubandhotelfrontingontotheA645.

Thesurroundingareas,haveingeneralperformedwellwithindustrialdevelopmentduetotheproximityoftheM62/A1(M)andconsequentlythenationalmotorwaynetwork.InparticularJunction32isthehomeofNormantonIndustrialEstate,alsoknownasWakefieldEuroportwhichistheregionspremierindustrialanddistributionhub.

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

DescriptionUnit 1 – A1 Football Factory Limited

Thebuildingisofsteelportalframeconstructionoveraconcretefloorwithpartbrickwork,partsteelprofilesheetelevationsandsteelprofilesheetcladroofincorporatingtranslucentroofpanels.

Thefactory/warehousehasbeenfittedoutwith4indoor3G5a-sidefootballpitchesandworkisduetocommenceshortlyonachildren’ssoftplayfacility.Thesinglestoreyofficeareaisfittedoutasareceptionandcaféareaandislicensedtosellalcoholicdrinks.Theareahasasuspendedceilingandconcretefloorwithdoubleglazedaluminiumframedwindows.

Thebuildinghasaneavesheightof7.1metres,andisletviasuspendedsodiumlighting.

Loadingintotheunitisbywayof2groundlevelmanualrollershutterdoors,underacanopy.Externally,thereisasecureconcreteyardarea,withasinglepointofaccessandaseparatecarparkwith45spaces.Thesecureyardiscurrentlybeingusedasanoverflowcarpark.

Unit 2 – Meyer Timber Limited

Thebuildingisofsteelportalframeconstructionoveraconcretefloorwithpartbrickwork,partsteelprofilesheetelevationsandsteelprofilesheetcladroofincorporatingtranslucentroofpanels.

Thefactory/warehouseareahasloadingbywayof2groundlevelmanualrollershutterdoors.Externally,thereisasecureconcreteyardarea,withasinglepointofaccessandcarparkingfor16spaces.

Thebuildinghasaneavesheightof7.1metres,andisletviasuspendedsodiumlighting.

Thesinglestoryofficeaccommodationbenefitsfromasuspendedcellingwithasurfacemountedcoolingunit,carpetedfloorsanddoubleglazedaluminiumframedwindows.Heatingisprovidedbysurfacemountedradiatorswhichsitaboveperimetertrunking.Ithasbeenpartitionedtocreatevariousofficeareas,kitchenetteandcomsroom.

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Site & TenureSite

Unit1-A1FootballFactoryLimited

Thebuildingsitsonasiteofapproximately2.73acres,providingasitecoverofapproximately44%.

Unit2-MeyerTimberLimited

Thebuildingsitsonasiteofapproximately1.57acres,providingasitecoverofapproximately34%.

Tenure

Thepropertiesareheldfreehold.

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

TenancyUnit 1 – A1 Football Factory Limited

Unit1islettoA1FootballFactoryLimitedbywayofanFRIleasefromthe16thofJanuary2014expiringonthe15thofJanuary2019.Accordinglythereiscirca4.25yearsunexpiredleaseterm.

Therentstepsuponthefollowingbasis:

The tenant has fitted out the premises in accordance withanindoorfootballbusiness;theworksareinlinewithalicencetoalterwhichcanbedownloadedviathemarketingwebsite.

ThevendorwilltopuptherenttotheJanuary2016upliftof£131,642.50.

Unit 2 – Meyer Timber Limited

Unit2islettoMeyerTimberLimitedbywayofanFRIleasefromthe7thofJuly1997expiringonthe6thofJuly2022.Accordinglythereiscirca7.8yearsunexpiredleaseterm.Thecurrentpassingrentis£107,400perannumwhichequatesto£4.53persq.ft.

TheleaseissubjecttoanupwardsonlyrentreviewinJuly2017.Year Rent

(per annum)Rent

(per sq ft)

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

We have measured the properties in accordance with the RICS Code of Measuring Practice (6th Edition) and can report the following Gross Internal Areas:

Unit 1 - A1 Football Factory Limited

Unit 2 - Meyer Timber Limited

Area (sq ft) Area (sq m)

Warehouse 50,274 4,670.61

Offices 2,383 221.39

Total 52,657 4,892

Area (sq ft) Area (sq m)

Warehouse 22,300 2,071.74

Offices 1,387 128.23

Total 23,687 2,199.97

Accommodation

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Covenant StatusUnit 1 – A1 Football Factory

Limited

ThetenantisanewlyestablishedlimitedcompanywhostartedtradinginMarch2014.Assuchtheyhavenosubstantialtradingfigures,buthavehoweverprovidedarentaldepositof£30,000.

A1 Football Factory Limited have spent in the region of£50,000fittingoutthebuilding.Theyhireout5asidepitchesandholdfootballcoachingsessions.Theyhavepurchasedchildren’ssoftplayequipmentandareintheprocessofinstallingittodiversifyintothedaytimesoftplayoffer.

Formoreinformationpleasevisit:http://www.a1footballfactory.com/

Unit 2 – Meyer Timber Limited

Meyer Timber Limited are a timber supplier to the UK constructionindustrywhoalsohaveanumberofsupplypartnersworldwide.TheyhaveatotalofsevenwarehousesthroughouttheUKwiththemostnorthernbasedinGrangemouth,ScotlandandthemostsoutherninSouthamptonEngland.Thetenanthasthefollowingfinancialheadlines:

MeyerTimberLimitedhaveaCreditsaferatingof83/100indicatingverygoodcreditworthinessandanInternationalscoreofAindicatingaverylowriskofbusinessfailure.

Formoreinformationpleasevisit:http://www.meyertimber.com/

Yearto date

Turnover Pre-tax Profit

Shareholder’sFunds

31/12/2013 £105,169,000 £1,978,000 £20,199,000

31/12/2012 £109,980,000 £1,010,000 £19,954,000

31/12/2011 £106,567,000 - £1,023,000 £32,122,000

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

VAT/EPCVAT

ThepropertiesareelectedforVATandthereforeweenvisagethatthesalewillbetreatedasasaleofaTOGC.

EPC

Unit1-D-78

Unit2-C-65

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Webelievethatthereispotentialforthepurchasertoexplorethefollowingassetmanagementpossibilities:

•Breakupthetwounits.

•

•Improvingtenantcovenantwilldriveyieldcompression.

•

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Theownersofadjacentinvestmentpropertyanddevelopmentlandhaveindicated,thattheymaysellgivingthepotentialforbuildingcriticalmassoftheestate.Furtherinformationisavailableuponrequest.

Benefitfromrentalincreases.

Asset Management

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

ProposalWe have been instructed to seek offers in excess of £2,260,000.

A purchase at this level reflects a net initial yield of 10%afterallowingforpurchasecostsof5.8%and an attractive capital value of £29.60 sq ft. Thefixedrentalincreasesin2017and2018onUnit1willshowareversionaryyieldof10.98%and12.20%respectively.

Investment Summary Location Situation Description Site Tenure Tenancy Accommodation Covenant VAT/EPC Asset Management Proposal

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

Furtherinformation

GVACity Point,First Floor,29KingStreet,Leeds, LS1 2HL

London West EndLondon CityBelfastBirminghamBristolCardiffDublinEdinburghGlasgowLeedsLiverpoolManchesterNewcastle

PublishedbyGVA10StrattonStreet,LondonW1J8JR©2014CopyrightGVA

GVAisthetradingnameofGVAGrimleyLimitedandisaprincipalshareholderofGVAWorldwide,anindependentpartnershipofpropertyadvisers operating globally gvaworldwide.com

Units 1 & 2, A1 Business Park, Knottingley Road, Knottingley, WF11 0BU

GVAGrimleyLimitedConditionsunderwhichParticularsareissuedGVAGrimleyLimitedforthemselves,foranyjointagentsandforthevendorsorlessorsofthispropertywhoseagentstheyare,givenoticethat:1.)Theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasesorlessorsanddonotconstitute,norconstitutepartof,anofferorcontract.2.)Alldescriptions,dimensions,referencestoconditionandnecessarypermissionforuseandoccupation,andotherdetails,aregiveningoodfaithandarebelievedtobecorrectbutanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem.3.)NopersonintheemploymentofGVAGrimleyLimitedoranyjointagentshasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtothisproperty.4.)AllrentalsandpricesarequotedexclusiveofVAT.ReproducedbycourtesyoftheControllerofHMSO.CrownCopyrightreserved.LicenceNo774359.Ifapplicable,withconsentofChasEGoad,Cartographers,OldHatfield,GeographersA-ZMapCoLtdand/orTheAutomobileAssociation.Foridentificationpurposesonly.October2014.