GeoPost UK Limited Network 46, Camp Road, Swinderby, Lincoln LN6 9BJ

20 Year Forward Commitment Industrial Investment Opportunity

INVESTMENT SUMMARY

▶ A new purpose built distribution warehouse withintegratedofficeaccommodationinan established commercial location

▶ Located in Swinderby on the A46, 7 miles to the east of the A1 at Newark-on-Trent

▶ The completed development will have a target area of 43,000 sq ft of high specificationindustrialaccommodation withtwostoreyoffices

▶ Pre-let to GeoPost UK Limited (D&B 5A1 rating) on a new 20 year FRI lease

▶ A target rent of £352,600 per annum reflecting£8.20 per sq ft

▶ Upwardonlyfiveyearlyrentreviews throughout the term

▶ Site area of 4.07 acres (1.65 hectares) providing an extremely low site cover of 24%

▶ Practical Completion is due in April 2016

▶ Freehold

We have been instructed to seek offers in excess of £5,550,000 for the freehold interest, subject to contract and exclusive of VAT.

Apurchaseatthislevelwouldreflectanet initial yield of 6.00% assuming usual purchaser’s costs of 5.80% based on a site purchase followed by a balancing payment on Practical Completion.

3

M1

15

M180

30

A1(M)

M1

31

29

25

4

34

M18

M18

ROBIN HOOD

LINCOLN

SWINDERBY

SHEFFIELD

NEWARK-ON-TRENT

GAINSBOROUGH

GRIMSBY

BOSTON

WORKSOP

MANSFIELD

NOTTINGHAM

MARKETRASEN

GRANTHAM

SLEAFORD

CHESTERFIELD

MELTONMOWBRAY

SPALDING

DONCASTER

DERBY

LOUGHBOROUGH

ROTHERHAM

BARNSLEY

A46

A46

A15

A15

A57

A17

EASTMIDLANDS

A1

A1

To Peterboroughand Cambridgev

LOCATIONThe property sits in an established commercial location in Swinderby, Lincolnshire on the A46, 7 miles to the east of the A1 trunk road. The property is located adjacent and to the south of the A46, 8 miles to the north east of Newark-on-Trent and 8 miles to the south west of Lincoln. The A46 is a major trunk road running east-west providing quick access to Lincoln and Grimsby to the east and the A1, Nottingham, the M1 and the national motorway network to the west. Newark-on-Trent and Lincoln are key commercial centres within the East Midlands providing a ready source of employment.

Newark North Gate train station, 8 miles to the west, provides direct services to London Kings Cross in a journey time of 1 hour 25 minutes, Nottingham in 48 minutes and Peterborough in 27 minutes.

East Midlands Airport, 40 miles to the south west, is the UK’s second busiest airport for freight traffic, behind Heathrow,andisamajorcargohubforcompaniessuchasDHL,TNTand the Royal Mail. The airport handles circa 40% of the

UK’s pure freight and circa 30% of the UKs pure mail with up to310,000tonnesofcargoperyearoperatingflights24hrsa day.

Swinderby’s relatively central UK location and strong transport links have been attractive to occupiers such as Danwood,UKMail,TurbineEfficiency,JamesDawsonandWirtgen. Occupiers have also been attracted by the close proximity of a large workforce.

NETWORK 46The GeoPost development forms part of Network 46, a 73 acre business park which is capable of delivering design and build commercial opportunities of up to 630,000 sq ft.

The property is also adjacent to the Swinderby Industrial Estate,amodern2006builtindustrialestatecomprisingfiveindustrial units totalling 18,166 sq m (195,539 sq ft). The estate is fully let with occupiers including Danwood, Turbine EfficiencyLimitedandUKMailLimited.

SITUATIONThe GeoPost site sits along the northern boundary of Network 46 situated off Camp Road, half a mile south of the A46. Its close proximity to the A46 allows easy access to Lincoln 8 miles to the north east and Newark-on-Trent 8 miles to the south west.

Witham St Hughs Business Park is located to the east ofCampRoadprovidingamixofoffice,industrialandstorageaccommodation attracting a range of local and national occupiers including Cargill, Frontier and Game.

Witham St Hughs, a residential area to the east benefitsfrom local amenities including a school, a supermarket and restaurants. Swinderby is situated adjacent to and north of the A46.

HILSEA

WITHAMST HUGHSNetwork 46

WITHAMST HUGHSBUSINESS

PARKSWINDERBYINDUSTRIAL

ESTATE

GEOPOSTUK LTD

A46

MOOR LANE

CAMP ROAD

TO LINCOLN

>

< TO NEWARK-ON-TRENT

NEW

ARK

ROA

D

COLLINGHAM ROAD

FOR INDICATIVE PURPOSES ONLY

SWINDERBY

SAT NAV: LN6 9BJ

88

A1(M)

M11

M180

M6

M1

M62

A1(M)

M6

M25

M40M5

A1(M)

OXFORD

NORWICHPETERBOROUGH

MANCHESTER

IPSWICH

LIVERPOOL

SWINDERBY

GLOUCESTER

NOTTINGHAM

LEICESTER

YORK

SHEFFIELD

HULLLEEDS

BIRMINGHAM

LONDON

KING’S LYNN

FELIXSTOWE

120 MIN

S

180 MINS

60 MIN

S

N̂ N̂ N̂

Warehouse• Steelportalframe

• Floorloadingcapacityof30KN/m2

• Clearworkingheightof6mtounderside of haunch

• T5lighting

• 15%rooflights

• A 3m canopy over the dock loading area with a minimum clear height of 5.53 m

• Gas fired continuous radiant heating system

Office• Twostoreyofficeaccommodationover groundandfirstfloors

• SuspendedceilingswithLG7lighting

• Comfortcoolingandheatingsystem

• HighqualityWCs,showersandlocker rooms with disabled facilities

• 3phasepowersupply

• Firealarmsystem

External• 30levelentryloadingdoors3.8mhigh

• 2levelentrydoors5.4mhigh

• 4docklevelloadingdoors

• 10HGVparkingspaces

• 63vanparkingspaces

• 90carparkingspaces

• Cycleracksandshelters

• Fueltank

• CCTV

• Externallighting

• Landscaping

On expiry of the lease the tenant will be required to reinstate a number of items including the data wiring and access control, fuel tank and pump set and vehicle wash equipment as evidenced in the Licence to alter. Further information is available upon request.

On completion the purchaser will be furnished with assignable warranties from the main contractor; architect and structural engineer.

Proposed Part South Eastern Elevation

Proposed Part North Eastern Elevation

FOR INDICATIVE PURPOSES ONLYPROPOSED DEMISE BOUNDARY

SITE AREAThe site comprises 4.07 acres (1.65 hectares) providing an extremely low site cover of 24%.

TENUREFreehold.

DESCRIPTIONOncecompletedtheunitwillcompriseahighspecification,steelportalframedistributionfacilitywithancillaryoffices.Thetenant,GeoPostUKLtd,willusethebuildingasaparceldeliveryandcustomercollectioncentre.Itwillbenefitfromthefollowingspecification:

ACCOMMODATION Accommodation Area (m sq) Area (sq ft)

Warehouse 3,417 36,780

TwoStoreyOffice 578 6,220

Total 3,995 43,000

TENANCYThe property will be let in its entirety to GeoPost UK Ltd (DPDGroup Ltd) on a new 20 year, full repairing and insuring lease,withfiveyearlyupwardonlyrentreviews.

The target rent will be £352,600 per annum based on the GIA of the building being 43,000 sq ft multiplied by £8.20 per sq ft.

The five yearly upwards only rent reviews are to be to thehigherof:

i) the rent immediately before the rent review date

ii) the market rent for the premises on the review date

iii) the Notional Rent (as the case may be) on the review date.

The Notional rent at review shall be the product of (A x B) x Cwhere:

A is the market rent per sq ft of the Notional Premises.

B is the GIA of the premises

C is a multiplier of 1.62

The review is based on a hypothetical term of 10 years and the rent review specification assumes the building is equalin size, age and quality as the subject property and includes 10%officeaccommodation,8meaves,4 levelaccessdoorsand occupying a 45% site cover.

TENANT COVENANTGeoPost UK Ltd (No. 732993) is a parcel delivery company which is wholly owned by La Poste, the second largest courier company in Europe. In March 2015 La Poste announced GeoPost, and its subsidiaries in the UK, will be rebranding as DPD Group to help accelerate its growth internationally.

In 2014 DPD Group delivered more than 864 million parcels across 230 countries. The company intends to grow its share in home delivery via its interactive technology, Predict, and its Pickup branded parcel shop network. This has led to expansion in multiple purpose built distribution warehouse facilities across the UK.

GeoPost UK Ltd has a Dun and Bradstreet rating of 5A1, representing a minimum risk of business failure. The last three financialaccountsaresummarisedbelow:

Fiscal Fiscal Fiscal Non-consolidated Non-consolidated Non-consolidated GBP (000’s) GBP (000’s) GBP (000’s) 29 Dec 2013 30 Dec 2012 01 Jan 2012

Sales Turnover 492,252 396,592 328,738

Profit/(Loss) 90,058 52,925 52,570 Before Taxes

Tangible Net Worth 55,257 62,901 55,463

Network 46

Swinderby Industrial Estate

GeoPost

Witham St Hughs

Witham St Hughs Business Park

MARKET COMMENTARY

OccupationalTheMidlandsoccupationalmarketgenerallybenefitsfromalimitedsupplyofavailableaccommodationandanimprovedoccupierconfidenceandgrowth.SwinderbyIndustrialEstateandWithamStHughsBusinessParkhavebothbeenthebeneficiariesofthismarketdynamicandarefullylethavingexperiencedlimitedvoidperiods.AcrossthewiderLincolnshireregionlimitedsupply of industrial land also exists which has created an attractive number of recent enquiries for Network 46. Recent letting evidence can be seen in the following lettings at Swinderby IndustrialEstate:

Unit Tenant Area (sq ft) Term Lease Start Lease Expiry Break Option Rent (pa) Rent (psf)

Unit4,SwinderbyIndustrialEstate TurbineEfficiencyGroupLimited 20,338 5years Dec-14 Dec-19 - £120,000 £5.90

Unit 5, Swinderby Industrial Estate UK Mail Ltd 10,073 5 years Jul-14 Jul-17 Jul-15 £55,000 £5.46

InvestmentIn a market characterised by limited supply and considerable demand, 2015 has seen further improved pricing for industrial stock particularly prime assets let to strong covenants on long lease terms. The investment market has continued to improve primarily as a result of the general improved occupational market conditions, referred to above, providing investors with further confidenceofrentalgrowthintheshort/mediumterm.Prime20yearindustrialinvestmentstockisgeneratingyieldprofilesofcirca5.00-5.25%asdemonstratedbytherecentEuroCarParts,BirchCoppiceandSmurfitKappa,MarkhamValeinvestmentsales.

Date Address Building Summary Tenant Price (£m) Net Initial Yield Comments

Sept-15 GeoPost Stonebridge Industrial Estate, Liverpool * 69,197 sq ft GeoPost UK Ltd £8.83 c.5.00% Under Offer * 25 years to expiry * £467,080 pax (£6.75psf)

Sept-15 GeoPost Stoke, Stoke-on-Trent * 59,925 sq ft GeoPost UK Ltd £8.00 c.5.00% Under Offer * 25 years to expiry * £446,411 pax (£7.45psf)

Aug-15 MarkhamVale,Chesterfield *100,250sqft SmurfitKappa £8.83 5.00% PurchasedbyAviva * 20 years to expiry * £467,165 pax (£4.66psf)

Aug-15 MarkhamVale,Chesterfield *52,734sqft GouldAlloys £5.13 5.80% PurchasedbyAviva * 20 years to expiry * £315,000 pax (£5.97psf)

Jul-15 Orion Park, Dagenham * 65,746 sq ft GeoPost UK Ltd £17.14 4.17% Purchased by Eyre Estate * 25 years to expiry * £756,079 pax (£11.50psf)

Jun-15 Sky Park, Exeter * 59,869 sq ft GeoPost UK Ltd £8.73 5.30% Purchased by Eyre Estate * 25 years to expiry * £489,389 pax (£8.10psf)

DEVELOPMENT TIMETABLEConstructionprogrammebegins: September2015 AnticipatedPracticalCompletion: April2016

PLANNING SUMMARYThe adopted local plan is the North Kesteven Adopted Local Plan 2007. This allocates the Network 46 Business Park under the terms of policy E1 as Employment land for business, industry and warehousing.

Planning consent for the development was granted by North Kesteven District Council on 18th May 2015. Further information is available on request.

VENDOR SUMMARY / THE DEVELOPERThe development will be undertaken by the LPA Receiver in partnership with Graftongate, the Development Manager.

Graftongate is a privately owned property development and investment company focussed on the business space markets, working in partnership with occupiers, landowners and investors. Formed in 2000 withofficesinLondonandBirmingham,Graftongatehasastrongtrackrecord in planning, pre-letting and speculative development, totalling over 7 million sq ft of new space. Notable pre-let buildings delivered for majorcorporateoccupiersinclude:Amazon;Beiersdorf;Bentley;Co-op;Costco; IKEA; John Lewis; Parcelnet.

Please note that due to the nature of the Vendor, limited warranties or representations can be provided with regards to any information contained within this marketing material and purchasers should therefore satisfy themselves in this regard. Further detail is available on request.

EPCThe Developer will ensure an Energy Performance Certificate with aminimum rating of C is provided.

VAT/TOGCWe understand the Vendor has waived the election to tax and therefore VAT is applicable to the purchase. The property is capable of being sold as a TOGC.

CGI Indictative site layout

PROPOSALWe have been instructed to seek offers in excess of £5,550,000 for the freehold, subject to contract and exclusive of VAT.

Apurchaseatthislevelwouldreflectanet initial yield of 6.00% assuming usual purchaser’s costs of 5.80% based on a site purchase followed by a balacing payment on Practical Completion.

MISREPRESENTATIONCLAUSECushman&Wakefieldgivesnoticetoanyonewhomayreadtheseparticularsasfollows:1.Theseparticularsarepreparedfortheguidanceonlyofprospectivepurchasers.Theyareintendedtogiveafairoveralldescriptionofthepropertybutarenotintendedtoconstitutepartofan 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 tothefactthatalterationshavebeencarriedoutorthataparticularuseismadeofanypartofthepropertythisisnotintendedtobeastatementthatanynecessaryplanning,buildingregulationsorotherconsentshavebeenobtainedandthesemattersmustbeverifiedbyanyintendingpurchaser.7.Descriptionsof 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 September 2015 Brochure by Mango 020 7060 4142

Further Information

Charles Howard Tom Coaker James Bladon charles.howard@cushwake.com tom.coaker@cushwake.com james.bladon@cushwake.com 020 3296 2098 020 3296 2163 0121 697 7258 07810 631 409 07894 814 327 07789 398 061

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