INVESTMENTOPPORTUNITYGESTAMP TALLENT LIMITED QUADRANT POINTCANNOCKSTAFFORDSHIREWS11 1LT

MODERN WAREHOUSE 10 YEARS UNEXPIRED

Investment summary

•Modern industrial and trade counter property let to a strongcovenant with a long unexpired term.

• Five modern buildings extending to 165,100 sq ft GIA.

• Located in Cannock, within close proximity to J11 of M6 andT7 of M6 Toll Road

• The tenant supplies BMW, Bentley, Ford, GM and Porsche

DESCRIPTION

• Fully let to Gestamp Tallent Limited on 3 co-terminus FRI leases with a WAULT of circa 10 years.

• Total current passing rent of £796,956 per annum equating to£4.83 per sq ft.

• Freehold.TENURE

• Offers sought in excess of £10,760,000 reflecting anattractive net initial yield of 7.00% after allowing forpurchaser’s costs of 5.80%.

PROPOSAL

SITUATIONThe property is situated on the Avon Road(A4601) which links to the A460 WolverhamptonRoad, approximately 0.5 miles from Cannocktown centre and 1.5 miles from J11 of the M6 andT7 of the M6 Toll Motorways. The junction withthe A5 Watling Street is approximately 0.5 milesdistant providing a quick link through to J12 of theM6 and T7 of the M6 Toll.

The site sits between the ThyssenKrupp TallentLtd main Midlands manufacturing premises andthe successful Cedars Business Centre. Nearbyoccupiers include Motorhouse Ltd, RhenusLogistics, CAT Finning, Tarmac and DHL.

COMMUNICATIONCannock railway station is managed by LondonMidland and provides regional services fromRugeley Trent Valley to Birmingham New Street(with a journey time of 41 minutes). Nationalconnections are available at Birmingham NewStreet. Travel time to London Euston is 120minutes via Birmingham New Street.

Birmingham International Airport is easilyaccessed via the M6 Toll Road and is locatedapproximately 26 miles (42 km) to the south-east of Cannock. Passenger throughput in 2014was in excess of 9.7 million, making Birminghamthe seventh busiest UK airport. However, theairport is the sixth in terms of internationalpassengers. Alternatively, East Midlands Airportis 41 miles (66 km) to the north-east.

Location Cannock is located 11 miles (17 km)

north-east of Wolverhampton, 15miles (24 km) to the north-west ofBirmingham, and 73 miles (117 km) south ofManchester. Cannock lies to the north ofthe West Midlands conurbation on the M6, M42,M54, A34 and A5 roads, and to the southof Cannock Chase.

The town has excellent road communicationsbeing strategically located close to Junction 11 ofthe M6 motorway and junctions T7 and T8 ofthe M6 Toll. The A5 links Cannock to Brownhillsand Tamworth and the A34, A462 and A460provides connections to Walsall, Stafford,Rugeley and Wolverhampton.

Cannock is one of themain commercial andindustrial centres inStaffordshire andbenefits from excellentcommunication linksbeing located at theheart of the nationalmotorway network.

M6

M6

M6

M6 Toll

M6 Toll

M54 BROAD LANE

LICHFIELD ROAD

LITTLEW

ORTH R

GORSEY LANE

JONES LANE

HIL L STREET

HE

DN

ESFO

RD

RO

AD

POTAL POOL ROAD

CO

CK

SPA

RRO

W LANE

B5012

NEW ROAD

VICARAGE ROAD

CA

NN

OCK R

OAD

PY

E G

RE

EN

RO

AD

STATI ON

STR

EET

WARST

ON

E R

OA

D

WOOD RO

AD

A

NE

CH

URC H L

AN

E

BR

ADB

URY LANE

BELT ROAD

A5

A34

A449

A449

A34

A34

A460

A460

A5A4601

A4601

1

11

2

12CANNOCK

BIRMINGHAMAIRPORTRRT

M6 Toll

M6 Toll

M42

M42M54

M40

M40

M69

M6

M5

M5

M6

M6

M42

A41

A41

A41

A41

A34

A38

A38A51

A34

A34

A34

A51

A38

A45

A47

A42

A458

A442

A442

A442

A449

A456

A38

A448

A448

A441

A441

A448

A435

A435

A458

A449

A449

A454

A454

A449

A453

A452

A461

A491

A491

A511

A4177

A4114

A4600

A513

A

A5

A5

4

3

2

1

8

9

10

10A

11

12

3

4512

13

14

9

10

11

23

3A

4

5

6

7

7A

3

2

1

7

6 5

CANNOCK

BIRMINGHAMBIRMINGHAM

DUDLEYDUDLEY

KIDDERMINSTERKIDDERMINSTER

WOLVERHAMPTONWOLVERHAMPTONSUTTON

COLDFIELDSUTTON

COLDFIELD

WALSALLWALSALL

STAFFORDSTAFFORD

TELFORDTELFORD

BURTON UPON TRENT

BURTON UPON TRENT

TAMWORTHTAMWORTH

REDDITCHREDDITCH

NUNEATONNUNEATON

COVENTRYCOVENTRY

A449

A518

A518

A460

A518

A515

A515

A

A444A511

A5

A444

LANGDALE DRIVE

WE

LL

ING

TO

N D

RIV

E

LEAMIN

GTON

CLOSE

CARLISLE R

OAD

LONGFORD ROAD

LON

GFO

RD RO

AD

MOSSWOOD STREETLANGDALE

DRIV

E

A4601

A5

A5A4601

QUADRANT POINT

WOLVERHA

MPTO

N ROAD

WOLVERHAMPTON ROAD

WOLVERH

AMPTO

N ROAD

WATLING S

TREET

WATLING

STREET

M6

CUSHMAN & WAKEFIELD 4

Quadrant Point is an ‘L’ shaped site comprisingfive modern industrial buildings accessed fromAvon Road. To the front of the property are carparking areas providing 65 spaces together withextensive landscaping to the road frontage.

QP1 AND QP2 - MAIN INDUSTRIAL UNITSQP1 built in 2003 and QP2 in 2005 are modernindustrial buildings with ancillary offices. Built ofsteel portal frame construction. The units haveprofile metal clad walls and roofs incorporatingpart translucent roof panels. The internal eavesheight is 7m with painted concrete flooring andlit by sodium lighting and heating via gas-firedblowers.

QP1 and QP2 are connected by an electricallyoperated roller shutter door with QP1 havingtwo additional roller shutter door access pointsto the front elevation. QP2 is accessed via tworoller shutter doors to the side elevation fromthe existing tenant’s own manufacturing site.

Both QP1 and QP2 benefit from internal twostorey office pods which also provide works WCand canteen accommodation. In addition QP1 hasan external glazed two storey office buildinglocated to the front of the unit and incorporatesthe main reception area. The offices are doubleglazed with air conditioning, carpeted floors andsuspended ceilings with recessed lighting.

ARDEN HOUSEThe property is an octagonal shaped two storeystorage building which was previously used as anoffice. Specification includes wooden flooring,part suspended ceilings and WCs.

AVON HOUSEThe property is an octagonal shaped, singlestorey building with extensive external glazing,fitted out to provide showroom accommodationtogether with an office, kitchen and WC.

UNIT 1 QUADRANT POINTA trade counter unit of steel portal frameconstruction with part glass frontage and metalprofile clad walls and roof. The property has asolid floor, suspended ceilings and eaves height of6m. To the rear are two roller shutter doors,WCs, kitchen and first floor office and meetingroom space.

SITEThe property is situated on a site with an area ofapproximately 5.2 acres (2.1 hectares).

Description

The property has been measured in accordance with the RICS Code ofMeasuring Practice on a Gross Internal Area basis as follows;

GESTAMP TALLENT LTD QUADRANT POINT

CANNOCKWS11 1LT

Accommodation

TENANCIESThe properties are fully let to Gestamp TallentLimited on 3 separate FRI leases, which all co-terminously expire on 14th October 2025 (10 years unexpired).

CUSHMAN & WAKEFIELD 6

UNIT TENANT LEASESTART LEASE EXPIRY SIZE

(SQ FT)RENT (PERANNUM)

RENT (PSF)

RENTREVIEW REVIEW BASIS

QP1 & QP2 Gestamp Tallent Limited 15/05/2005 14/10/2025 156,092 £719,450 £4.61 15/10/2015 5 yearly, upwards only rent review

Arden House Gestamp Tallent Limited 16/12/2013 14/10/2025 2,000 £13,906 £6.95 16/12/2018 5 yearly, upwards only rent review

Avon House and Unit 1 Gestamp Tallent Limited 16/07/2014 14/10/2025 7,058 £63,600 £9.01 16/07/2019 5 yearly, upwards only rent review

Total £796,956

10 YEARSUNEXPIRED

QP1 –

Warehouse

5,216 sq m

(56,145 sq ft)

TENUREThe property is held Freehold.

QP2 –

Warehouse

9,281 sq m

(99,897 sq ft)Arden House –

Office

186 sq m

(2,000 sq ft)

Avon House –

Warehouse

100 sq m

(1,079 sq ft)

Unit 1

Quadrant Point –

Warehouse

555 sq m

(5,979 sq ft)

GESTAMP TALLENT LTD QUADRANT POINT

CANNOCKWS11 1LT

Gestamp TallentLimited – CompanyNo. 00452916

Gestamp TallentLimited is a leadingdeveloper of chassisand suspensionproducts and systemsfor the globalautomotive industry.

The company wasoriginally established in1948 and now hasproduction and designfacilities in America,Belgium, India, Chinaand the UK. Theproducts are targetedat the high volumepassenger, sport utilityand light commercialvehicles market withcustomers including:Land Rover, BMW, Fordand Honda.

Gestamp Tallent LimitedAccount Summary is setout below.

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

CUSHMAN & WAKEFIELD 8

31 DEC2011 (£)

31 DEC2012 (£)

31 DEC2013 (£)

Turnover £452,590,000 £410,559,000 £419,354,000

Pre-Tax Profit £14,975,000 £24,812,000 £20,951,000

Net Worth £85,138,000 £104,752,000 £121,160,000

Tenant covenants

Investment marketThe industrial investment market remains in astrong position with high levels of demand from avariety of different investors, both domestic andinternational. This weight of capital combined withevidence of rental growth in key locations hasfurther enhanced industrial as one of the mostsought after investment classes. Where primestock can’t be acquired, investors are having tobroaden their horizons and look further up the risk curve in order to release capital.

On the supply side, 2015 continues to widen thesupply/demand equilibrium as the appetite for bothprime and secondary assets remains strong whilstsupply remains comparatively low. This lack ofstock is particularly acute for lot sizes of £10m and larger.

Long unexpired Lease term to a

secure internationalcovenant.

Highlyprominent site

on the roundaboutwith easy access to

the M6

Tenanthighly involved inthe automotiveindustry supplyingBentley, BMW, Ford, GM, Porsche. Honda,Jaguar and many

more.

InvestmentRationale

DATE ADDRESS SIZESQ FT

PASSINGRENT(AV. PSF)

UNEXPIREDTERM(YEARS)

TENANT PURCHASER PRICE INITIALYIELD

CAPVAL PSF

Apr-15 Brackmills,Northampton 170,228 £4.93 9 Travis

Perkins London Metric £14,400,000 5.5% £84.56

Feb-15 William NadinWay, Swadlincote 240,000 £4.95 10 Clipper

LogisticClipstoneLogistic REIT £16,760,000 6.70% £69.83

Oct-14Redfearn Park,Tyseley,Birmingham

220,767 £4.55 7ThyssenKrupp,Mereway

PrivateCharitableTrust

£15,100,000 6.28% £68.40

Oct-14

ColthamDevelopmentsDistributionCentre, CenturionPark, Tamworth

180,000 £4.92 14SpeedyAssetServices

Cordea Savills £12,000,000 6.75% £66.67

Sept-14

Vector Point,Merse Road,North MoonsMoat, Redditch

152,771 £4.81 10IntierAutomotiveLogistics

Moorpark £9,450,000 7.35% £61.86

Aug-14 Unit 3, Logix Park,Hinckley 98,000 £5.44 10.7 Armstrong

Logistics Aviva £7,745,000 6.50% £79.03

Aug-14 DHL Langley Mill,Nottingham 255,680 £4.21 10 DHL Tritax Assets

Ltd £17,530,000 6.50% £68.56

2005 built modernindustrial units

CUSHMAN & WAKEFIELD 10

GESTAMP TALLENT LTD QUADRANT POINT

CANNOCKWS11 1LT

Proposal Offers are sought in

excess of£10,760,000 (TenMillion, SevenHundred andSixty ThousandPounds), subject to contract andexclusive of VAT. A purchase at thisprice reflects a netinitial yield of7.00%, assumingstandard purchaser’scosts of 5.80%.

EPC RATINGEnergy Performance Certificates are as follows:

QP1: 71 – CQP2: 71 – CArden House: 107 – EAvon House: 73 – CUnit 1: 34 – B

VATWe understand the property has been electedfor VAT which will therefore be chargeable onthe sale price unless the transaction can betreated as a Transfer of a Going Concern(TOGC).

WEB ACCESSwww.cushmanwakefieldinvestmentsales.co.uk/cw/quadrantpoint

Offers in excess of

£10,760,000

www.cushmanwakefieldinvestmentsales.co.uk

Mike BurdenE: mike.burden@eur.cushwake.comT: +44 (0) 20 7152 5086

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 in good faith, are set out as a general guide onlyand 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 or warranty whatever in relation to this property. (3) This property is offered subject tocontract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be 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 regarding pollution 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

TeamOUR

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

September 2015

Nicholas DufeuE: nick.dufeu@eur.cushwake.comT: +44 (0) 20 7152 5230

Rory TurnerE: rory.turner@eur.cushwake.comT: +44 (0) 207 152 5205