S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

P R I M E L O N G L E T I N D U S T R I A L I N V E S T M E N T W I T H F I X E D R E N T A L U P L I F T S

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S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

EXECUTIVE SUMMARY

+ Prime industrial warehouse benefi ting from excellent communications being situated only a short distance from Junctions 33 & 34 of the M1 motorway.

+ Constructed in 2005, the unit comprises a manufacturing facility, with extensive loading and car parking facilities.

+ Providing a total of 43,251.38 sq m (465,554 sq ft).

+ Freehold.

+ Let to Polestar (UK) Print Limited (guaranteed by Polestar Investments Limited) until December 2034 (in excess of 21.5 years unexpired).

+ Total current rent of £2,615,406 per annum.

+ The lease benefi ts from 5 yearly rent reviews to a minimum of 2% per annum compounded.

We are instructed to seek offers in excess of £29,083,000, subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 8.50%, assuming purchaser’s costs of 5.80%, with the following guaranteed minimum yield profi le:

+ December 2014 9.38%

+ December 2019 10.36%

+ December 2024 11.44%

+ December 2029 12.63%

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S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

LOCATION

Sheffi eld is the principal commercial and administrative centre for South Yorkshire, and is located 33 miles south of Leeds, 39 miles north of Nottingham and 169 miles north of London.

The city benefi ts from excellent road communications being served by Junctions 33 and 34 of the M1 motorway, which in turn links with the M62 to the north, the M18 to the north east and the A1(M) to the east.

Sheffi eld Railway Station provides regular services into London King’s Cross (2 hours 20 minutes) and London St Pancras International (2 hours 10 minutes), as well as frequent services to Leeds and Manchester of around 40 minutes and 50 minutes respectively.

At a local level the Sheffi eld “Supertram” connects the city centre with the northern and southern suburbs.

Sheffi eld City Airport is located close to Junction 34 of the M1 and Manchester, Leeds Bradford and East Midlands Airports are all within a reasonable distance.

M18

M1

M13332

31

1

34

35

M1

A61

A61

A61 A57

A57A57

A6102

A630

ROTHERHAM

SHEFFIELDPOLESTARSHEFFIELD

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SITUATION

The property is located on Shepcote Lane which is less than 1 mile south of Junction 34 of the M1 motorway. Junction 33 of the M1 is within 2.5 miles to the south east. The site is within close proximity to Sheffi eld City Airport and the Meadowhall Shopping Centre.

The area around Shepcote Lane is one of the largest remaining strategic industrial and business space locations in the Lower Don Valley and is still the home to many traditional occupiers including Outokumpu, Parfetts, Menzies, DHL, Unipart Automotive, Betafence and Balfour Beatty Rail.

M1

34

A631 BAWTRY RO

AD

A6178

AFTE

RCLIF

FE C

OMMON

A631

SHEP

COTE LA

NE

A6102 BROUGHTON LANE

A6109 MEADOW

HAL

L ROA

D

EUROPA LINK

SHEFFIELD ARENA

MEADOWHALLSHOPPING CENTRE

POLESTARSHEFFIELD

POLESTARSHEFFIELD

MEADOWHALLSHOPPING CENTRE

M1MOTORWAY

SHEFFIELDCITY AIRPORT

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S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

SITE

The site is broadly rectangular with a total site area of approximately 10.93 hectares (27.01 acres) refl ecting a low site coverage ratio of approximately 39%.

The property is positioned such that it benefi ts from good circulation and, subject to the necessary consents, could lend itself to future expansion or redevelopment.

DESCRIPTION

The subject property was developed in 2005 to provide a high tech gravure printing unit with ground and fi rst fl oor offi ce/staff accommodation and extensive loading and car parking facilities. The production area provides the following specifi cation;

+ Steel portal frame with a minimum eaves height of 15m (49 ft) to the underside of the haunch.

+ 50 kN per sq m (1,045 lbs per sq ft) uniform distributed fl oor loadings with enhancement to 60 kN per sq m (1,255 lbs per sq ft) in specifi c areas.

+ Kingspan KS1000RW Firesafe steel faced cladding to high level elevations and roof with HPS profi led metal sheeting to the lower level elevations.

+ 10% translucent double skinned GRP roof lights.

+ 10 level access loading doors with canopies over.

+ 7 dock level loading doors with dock shelters.

+ Provision of a 15 MVA power supply.

The offi ces have the following specifi cation;

+ Powder coated double glazed windows.

+ Gas-fi red radiator heating system.

+ Three compartment dado trunking on ground fl oor and 150 mm raised access on fi rst fl oor.

+ Anti-static carpet tiles to offi ces.

+ Suspended ceilings with Category 2 recessed lighting.

+ 8 person (630 kg) passenger lift.

Externally, the property provides for the following;

+ Full circulation with concrete goods reception/dispatch yards and roadways suitable for 44 tonne HGV’s.

+ 229 on site car parking spaces.

+ Lighting to circulation and parking areas.

+ 200 sq ft gatehouse.

+ Secure 2.4m high perimeter fence and gates.

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ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Areas:

Description Sq M Sq Ft

Warehouse 41,089.41 442,282

Offi ces (Ground) 840.68 9,049

Offi ces (First) 840.68 9,049

Boiler/Plant House 480.61 5,173

Total 43,251.38 465,554

TENURE

Freehold.

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S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

TENANCY

The property is let to Polestar (UK) Print Limited, with a guarantee from Polestar Investments Limited, for a term of 30 years from 25th December 2004, expiring on 24th December 2034, at a current passing rent of £2,615,406 per annum.

The rent is subject to fi ve yearly rent reviews to the higher of; (i) the passing rent increased at a rate of 2% per annum compounded annually, (ii) open market rental value or (iii) a notional rent for a warehouse unit of 200,000 sq ft.

The next review is on 25th December 2014, where the rent will increase to a minimum of £2,887,619 per annum.

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COVENANT INFORMATION

Polestar are the leading publications printer in the UK producing magazines, newspapers and digital direct mail. As UK market leader they are the only UK printer to offer gravure, web offset and digital direct mail having market share in gravure of 45% and 32% in web offset. They currently employ 1,700 people.

Polestar produce the majority of UK newspaper colour supplements and 23 of the UK’s top 40 magazine titles including Hello, Cosmopolitan, Top Gear and Country Life, totalling some 40 million magazines per week. In addition to weekly prints Polestar produce annual reports, brochures for the travel and retail industry, forms and stationary, direct mail packs, books and directories.

As a company Polestar have under gone signifi cant change in the last decade. The advent of the digital era vastly reduced the worlds consumption of printed material. As a company Polestar have adapted to these changes by closing redundant sites throughout the country and investing over £200m in cutting edge technology and printing machinery in 9 sites throughout the UK. The subject site is Polestar’s fl agship and largest printing works and houses one of only two major gravure printers in the UK.

In April 2011 the company was sold to Sun European Capital (a subsidiary of Sun Capital, one of the world’s largest private equity fi rms) who injected £20m of equity and settled £90m of net debt. New fi nance was also put in place which enhanced cashfl ows by £8 million per annum. In addition, in the last 18 months £300m of contracts have been renewed. In November last year Polestar acquired Sir John Madejski’s Goodhead print group which was a strategic acquisition to increase its market share, which demonstrates Polestar’s dominance in the UK market.

For the year ending September 2012 Polestar (UK) Print Limited reported a Turnover of £222m and EBITDA of £34.4m, refl ecting a 14.6% increase from 2011.

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S H E P C O T E L A N E S H E F F I E L D

P O L E S T A R

ENVIRONMENTAL

An environmental survey has been carried out and is available upon request.

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PROPOSAL

We are instructed to seek offers in excess of £29,083,000 (Twenty Nine Million and Eighty Three Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 8.50%, assuming purchaser’s costs of 5.80%, with the following guaranteed minimum yield profi le:

+ December 2014 9.38% + December 2019 10.36% + December 2024 11.44% + December 2029 12.63%

DATA ROOM

An electronic data room has been created, the contents of which include:

+ Title documents + Occupational lease/occupational documents + Planning information + Energy Performance Certifi cate + Electronic copy of the sales particulars

For access to the data room please contact Tudor Toone.

FURTHER INFORMATIONFor further information or to arrange an inspection, please contact:-

Ben Goodberry Tel: 020 7495 5550 Mob: 07799 038 391 Email: bengoodberry@tudortoone.com

Hugh Faith Tel: 020 7495 5550 Mob: 07824 810 910 Email: hughfaith@tudortoone.com

EPC

The property has an EPC rating of E (119). A copy of the EPC is available upon request.

VAT

The property is elected for VAT and it is proposed the transaction will be completed by way of a transfer of a going concern (TOGC).

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MISREPRESENTATION ACT 1967

TUDOR TOONE LLP, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT:

THESE PARTICULARS DO NOT CONSTITUTE, NOR CONSTITUTE ANY PART OF, AN OFFER OR CONTRACT.

TUDOR TOONE LLP AND ITS MEMBERS ACCEPT NO LEGAL RESPONSIBILITY FOR ANY STATEMENT OR REPRESENTATION WHETHER WRITTEN, ORAL OR IMPLIED OR WHETHER CONTAINED IN ANY ADVERTISEMENT PARTICULARS OR OTHER MATTERS ISSUED OR ANY CORRESPONDENCE ENTERED INTO BY THEM AND WHETHER MADE IN ANY ANTECEDENT PRESENT OR SUBSEQUENT ENQUIRIES OR NEGOTIATIONS.

NEITHER TUDOR TOONE LLP NOR THEIR PRINCIPALS, MEMBERS, AGENTS, SERVANTS OR REPRESENTATIVES HAVE ANY AUTHORITY WHATSOEVER TO MAKE OR GIVE ANY REPRESENTATION OR WARRANTY WHATSOEVER WHETHER WRITTEN OR IMPLIED IN RELATION TO THIS PROPERTY.

ANY INTENDING PURCHASER MUST SATISFY HIMSELF BY INSPECTION OR OTHERWISE AS TO THE CORRECTNESS OF ANY ANTECEDENT PRESENT OR SUBSEQUENT STATEMENTS OR REPRESENTATIONS, AND SHOULD NOT RELY UPON THE SAME UNLESS HE HAS SATISFIED HIMSELF ACCORDINGLY.

UNLESS OTHERWISE STATED ALL PRICES AND RENTS ARE QUOTED EXCLUSIVE OF VALUE ADDED TAX (VAT). ANY INTENDING PURCHASERS OR LESSEES MUST SATISFY THEMSELVES INDEPENDENTLY AS TO THE INCIDENCE OF VAT IN RESPECT OF ANY TRANSACTION.

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT.

TUDOR TOONE LLP IS A LIMITED LIABILITY PARTNERSHIP REGISTERED IN ENGLAND AND WALES WITH REGISTERED NUMBER OC 305 411. REGISTERED OFFICE: 41/43 MADDOX STREET LONDON W1S 2PD.

DETAILS PREPARED APRIL 2013.

SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT

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