CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG

EXECUTIVE SUMMARY

• A detached chilled distribution warehouse facility providing a gross internal floor area of 130,524 sq ft (12,126 sq m).

• Well located within the Midlands industrial and distribution heartland.

• Situated between Junctions 1 & 2 of the M5 motorway providing easy access to the Midlands and national motorway network.

• Let to Cadbury UK Limited.

• 85 m deep yard and low site density of approximately 30%.

• A passing rent of £725,000 per annum equating to £5.55 psf.

• Offers are sought in excess of £9,400,000 (Nine Million Four Hundred Thousand Pounds) subject to contact and exclusive of VAT.

• A purchase at this level reflects a net initial yield of 7.23% after allowing for standard purchasers costs and a low capital value of £71.46 psf.

LOCATION

The property is located in the established industrial and distribution location of Oldbury, West Midlands, 6 miles north-west of Birmingham city centre, 1.5 miles south-west of West Bromwich and 10 miles south-east of Wolverhampton. The property benefits from being 1.5 miles from Junction 1 and Junction 2 of the M5 motorway, approximately equidistantly providing two options for motorway access. The M5 links to the Midlands motorway network via the M42 and M6 which in turn lead to the M40, M6 toll and the National motorway network. Therefore the location is considered to be of strategic importance for freight distribution benefiting from excellent road links and access to the rest of the UK.

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG www.mk2.co.uk

CRYSTAL 24

Birmingham 6Wolverhampton 10Coventry 30Leicester 50Manchester 83

SHREWSBURY

WOLVERHAMPTON

STAFFORD

STOKE-ON-TRENT

LICHFIELD

BIRMINGHAM

COVENTRY

WORCESTER

HEREFORD

TO BRISTOL& SOUTH WEST

TOLONDON

TO LONDON& SOUTH EAST

TO MANCHESTER& NORTH WEST

TO LEEDS& NORTH

EAST

OSWESTRY

MARKET DRAYTON

TELFORD

BRIDGNORTH

LUDLOW

LEOMINSTER

ROSS-ON-WYE

LEDBURY

GREAT MALVERN

KIDDERMINSTER

STOURBRIDGEDUDLEY

WALSALL

BURTON-UPON-TRENT

UTTOXETER

TAMWORTH

NUNEATON

SOLIHULL

REDDITCH

EVESHAM

STRATFORD-UPON-AVON

WARWICK

RUGBY

LEEK

M6

M6

M6 TOLL

M69

M1

M42

M40

M5

M50

M54

M1

M1

MILES

M5 J1 1.7M5 J2 2.2M6 J7 5.5M6 J9 6.2

DUDLEY ROAD EAST

DUDLEY ROAD

A4034

KELVIN WAY

TRIN

ITY

WAY

A41

A41 BIRMINGHAM ROAD

KEN

RIC

K W

AY

TELF

ORD

WA

Y

KENRICK WAY

OLDBURY ROAD

SOHO WAY

A457

A4030

A457

A457

A40

34

A40

34

WO

LVERHAMPTON

ROAD

W’TO

N RD

CR

YSTA

L DR

A457

M5

M5

2

1

OLDBURY

SMETHWICK

CRYSTAL 24

SITUATION

The property is situated off Crystal Drive on Sandwell Business Park next to the M5 motorway and is highly visible when travelling in either the north or south direction. There are two points of access to the park from either the A4031 or the A457 and both providing fast access to the M5 motorway. The location has attracted major occupiers including LINAK, APIC UK Limited, Sandwell Metropolitan Borough Council, Hill Hire Plc, DHL, Plum Centre, DPD (UK), AHA Pharmaceuticals, STAX, James Lister and Sons and of course Cadbury.

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG www.mk2.co.uk

DESCRIPTION

The property is of steel portal frame with full height metal cladding elevations. The pitched roof is of profile sheet panels, incorporating translucent roof lights and is lined throughout. The warehouse includes an highbay element with an approximate eaves height of 18.5m. This part is chilled with the tenant having recently installed new chiller plant.

The loading bay area comprises 18 dock levellers and 1 level access door with a substantial trailer loading canopy running the length of the elevation. The yard has a minimum depth of 46m and a maximum of 85m with 32 trailer parking spaces. Metal palisade fencing provides for additional secure trailer parking and storage. Within the yard is a separate vehicle maintenance and refuelling facility.

There is ample car parking area to the east elevation and substantial expansion land to the south (rear) elevation providing the ability to extend the property.

In addition to the warehouse is a two-storey detached office building which the tenant has recently refurbished to include suspended ceilings, recess lighting and central heating.

ACCOMMODATION

The property provides the following approximate Gross Internal Areas.

DESCRIPTION SQ M SQ FT

High Bay Area 4,182 45,016

General Warehouse Area 4,043 43,519

Loading Bay 2,182 23,488

Office (Ground) 770 8,288

Office (First) 611 6,577

Vehicle Maintenance Unit 255 2,745

Chiller & Plant Rooms 83 893

Total 12,126 130,524

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG www.mk2.co.uk

SITE

The site extends to approximately 3.86 hectares (9.54 acres) providing a low site cover of approximately 30%.

TENANCY

The property is let in its entirety to Cadbury UK Ltd on Full Repairing and Insuring terms for 35 years from 24 September 1985 with upward only rent reviews every 5 years. The passing rent is £725,000 per annum (£5.55 psf).

COVENANT INFORMATION

Established approximately 200 years ago Cadbury is one of the best known sweet and confectionary makers in the world. The company operates in over 60 countries and generated nearly $4 billion in revenues for 2015.

In 2010 Cadburys were acquired by Kraft Foods for £11.5 billion and re-branded as Mondelez International, a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; and Trident gum. Mondelez International is a member of the Standard and Poor’s 500, NASDAQ 100 and Dow Jones Sustainability Index.

In April 2016 Mondelez International announced the launch of a strategic e-commerce partnership with Alibaba Group, the worlds largest online and mobile commerce company, enabling Mondelez International to expand its reach and penetration in the Chinese market.

The key Cadbury UK Limited account details post restructuring are as follows;

31 DEC 2014 31 DEC 2013 31 DEC 2012

Turnover £143,452,000 £153,438,000 £139,090,000

Pre-tax Profits £99,278,000 £86,784,000 £138,777,000

Net Worth £282,603,000 £186,143,000 £694,855,000

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG www.mk2.co.uk

OCCUPATIONAL MARKET

Throughout the West Midlands demand for distribution warehouse continues to grow whilst the acute shortage of available accommodation is made worse by the ever reducing level of standing stock. With occupiers having little choice than build to suit options, rents have continued to rise where prime rents have achieved £6.50 psf. This lack of supply will have further positive impact on rental growth with quoting rents in the region now being at £6.75 per psf. Recent market lettings include the following:

Property Size (sq ft) Tenant Rent (psf) Grade Comments

Black Velet, Hams Hall, Coleshill 178,517 The Works £6.30 New Pre let wef 2/2016, under construction

DC1 Midpoint, Minworth 127,500 Syncreon Automotive UK Ltd £6.60 New Pre let wef 03/2015

DC3 Midpoint Minworth 237,134 Biffa Waste Services £5.85 Second hand Rent review wef 12/2014

Plot 2 Birch Coppice Business Park, Dordon 152,500 UPS £6.15 New Open marketing letting wef 09/2014

DC4 Bromford Gate, Bromford Lane, Erdington 86,207 Claires Accessories £5.75 Second hand Rent review wef 12/2014

APC Unit, Central Gate, St Stephens Street 237,132 Royal Mail £5.75 Second hand Rent review wef 12/2014

Bullsey, Black Country New Road, Wednesbury 184,000 Dormole Ltd t/a Toolbank £5.50 New Pre let wef 11/2015, under construction

Unit 6 Parkway Industrial Estate, Wednesbury 134,500 Aalco Metals Ltd £5.25 Second hand Open market letting wef 03/2015

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG www.mk2.co.uk

MK2 Real Estate LimitedMaddox House117 Edmund StreetBirmingham B3 2HJ

Mark RookeT: 0121 2141972M: 07985 877578 E: mrooke@mk2.co.uk

Mark JohnsonT: 0121 2141977M: 07748 105812E: mjohnson@mk2.co.uk

FURTHER INFORMATIONFor further information or to arrange an inspection please contact;

IMPORTANT INFORMATION

1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

Designed and produced by Diablo: www.diablodesign.co.uk April 2016

TENURE

The property is held freehold.

EPCThe property has an EPC rating of D82. A copy of the certificate is available upon request.

VATThe property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that subject to qualification the sale will be treated as a TOGC.

CAPITAL ALLOWANCE Further information is available upon request.

PROPOSALWe are instructed to seek offers in excess of £9,400,000 (Nine Million Four Hundred Thousand Pounds) subject to contact and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.23% and a low capital value of £71.46 psf after allowing for standard purchasers costs.

Subject to contract.