Well Secured Distribution Warehouse Investment Opportunity

L’Oréal, Lakeview Drive, Sherwood Park,Annesley, Nottinghamshire NG15 0DT

Investment Summary• Strategically located on Sherwood Park,

one of the most successful business parksin the UK, adjacent to Junction 27 of theM1 motorway.

• Built in 2006, comprises a high specificationdistribution warehouse with ancillary officesover two floors of approximately 11,711.23 sq m (126,059 sq ft) GIA.

• Entirely let to L’Oréal UK Ltd and usedto supply their luxury brands to the UKand Ireland.

• Let on a 15 year FRI lease until 1st June2021.

• Current passing rent of £752,797 pa (£5.97 per sq ft) rising to a rent of£831,148 pa from June 2016.

• Long leasehold, held on a 999 yearpeppercorn lease from 25th December1995.

• Offers are invited in excess of £8,330,000(Eight Million,Three Hundred andThirty Thousand Pounds) subject tocontract and exclusive of VAT whichprovides an attractive net initial yield of8.50%, and a reversionary yield of 9.38% inJune 2016, after allowing for purchaser’sacquisition costs of 6.3%.

LocationThe property is located on Sherwood Park, asuccessful mixed use business park, commanding astrategic location at the heart of the UK. Situatedapproximately 11 miles north-west of Nottingham andwithin 1⁄4 mile of Junction 27 of the M1 motorway.

In addition Sherwood Park is strategically located just13 miles from East Midlands Airport. The airportoffers regular flights to over 90 destinations and iscurrently the UK’s primary pure freight airport usedby operators such as DHL, TNT, UPS and Royal Mail.Sherwood Park has rail connections at Annesley,linking it to Central Nottingham Station where railservices to London Euston take approximately 13⁄4 hours.

The Park’s location enables occupiers to access alarge, skilled labour force in the local area. Around 1 million people live within a 12 mile radius of thePark itself and a number of major conurbations arelocated within commuting distance. These includeMansfield (6 miles), Nottingham (11 miles) and Derby(20 miles).

This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. This plan is based upon Ordnance Survey Map with thepermission of the Controller of H M Stationery © Crown Copyright.

JUNCTION 27M1 MOTORWAY

THE PROPERTY

Sherwood ParkSherwood Park totals approximately 67 hectares (165 acres) and is widely considered to be the mostattractive and successful former Enterprise Zonewithin the UK. Created in 1995, the Park was masterplanned by the Government Agency, EnglishPartnerships. The Enterprise Zone status expired inNovember 2005. The Government has announcedthat Regional Development Agencies (RDAs) willclose at the end of March 2012. Economicdevelopment and regeneration will in future be led byLocal Enterprise Partnerships.

Approximately 6,500 people are employed atSherwood Park in a mix of over 2 million sq ft ofhigh quality office, industrial and warehouseaccommodation.

Sherwood Park provides an outstanding businesslocation given its central location within the UK,excellent transport links, high quality buildings andattractive greenbelt surroundings. These factorsprovide some explanation behind why SherwoodPark has attracted a range of strong tenantsincluding:

• L’Oréal• Rolls Royce• Eddie Stobart• Holiday Inn• Promotional Logistics

(Prolog)• Homeserve• E.On• East Midlands

Electricity • Tsubakimoto• Derbyshire Police

Authority• Eve Telecom

• Autofill• Icon Serviced Offices• Nottinghamshire

County Council • One Click Technologies• Perot Europe • Polestar• SPS Aerostructures• Pendragon plc• Parkside Steel • Surepak• Turbine Surface

Technologies• Zeppelin Systems

Prolog

TTS/Boots

Tsubakimoto

ParksideSteel

Polestar

Jena Tech

Surepak

FlextabEurope

L’Oreal

TurbineSurface

Technologies

PrologPhase 4

Prolog Phase 6

PrologPhase 2

PrologPhase 1

PrologPhase 5

Stobart

JUNCTION 27M1 MOTORWAY

DescriptionThe property was purpose built for L’Oréal in 2006 and comprises a modern detached distributionfacility with ancillary offices totalling approximately126,059 sq ft (11,711.23 sq m) GIA. The property isof steel portal frame construction arranged in twobays, with profile steel cladding under a profile sheetroof which incorporates translucent panels. The unithas been fitted out to a high quality specification bythe Landlord for L’Oréal and the fit-out has beenrentalised.

Externally, the site has a tarmac covered parking andcirculation area with low level landscaping, a concreteservice yard and loading area and a grassed buildingapron. At the rear of the building there are twosprinkler tanks and a kiosk containing a dieselpowered pumping system. The site is surrounded by acoated steel wire fence with a security gate andaccess barriers. There is an area of expansion land tothe south of the property with an opportunity todevelop approximately 43,518 sq ft (4,043 sq m) GIA.

The property has been measured in accordance withthe RICS Code of Measuring Practice (6th Edition)and provides the following approximate gross internalfloor areas:

SpecificationThe property benefits from the following high qualityspecification:

• Steel portal framed construction providing aminimum clear internal height to the underside ofthe portal haunch of around 10.5 metres (34.4 ft)

• Concrete ground floor slab with a designed UDL of50 kN per sq m (1,000 lb per sq ft)

• Fluorescent tube lighting within the warehouse

• High level hot air blowers

• 6 dock leveller and 2 surface level loading bays

• Sprinkler system and foam fire suppressioninstallation

• Office specification includes aluminium frameddouble glazing, suspended ceilings with recessedlighting, gas-fired central heating, carpeted raisedaccess floors and an 8-person lift

• Extensive secure concrete service yard and asegregated car park for 78 cars and bike storage

• CCTV

• External lighting

• Secure perimeter fence

The tenant has installed a substantial racking system.

Site AreaThe property is situated on a broadly rectangularshaped site of approximately 6.107 acres (2.472 hectares) providing a site density of 47%.

Description Area (sq m) Area (sq ft)

Ground Floor Warehouse 10,835.00 116,627

Ground Floor Office/Ancillary 275.26 2,963

First Floor Office/Ancillary 600.97 6,469

Total 11,711.23 126,059

N

* Approximate Area for Future Expansion.

EXPANSIONLAND *

This plan is published for convenience of identification. Any boundaries shown are indicative onlyand should be checked against the Title Deeds. This plan is based upon Ordnance Survey Map withthe permission of the Controller of H M Stationery © Crown Copyright.

TenureThe property is currently held on a 999 yearpeppercorn lease from 25th December 1995.

The purchaser will be granted a new sub-underleasefor the remainder of the 999 year term less 1 year,at an annual rent of £100.

TenancyThe entire property is let to L’Oréal (UK) Ltd on a fullrepairing and insuring lease for a term of 15 yearscommencing on 2nd June 2006 and expiring on 1st June2021. The current rent passing is £752,797 equating to£5.97 psf, and with an increase to £831,148 on thetenth anniversary in June 2016 (£6.59 psf).

The tenant has the right to expand the premises by43,518 sq ft (4,043 sq m) GIA at their own cost.

Covenant InformationWith over a century of expertise in the manufactureof cosmetics, L’Oréal consists of 27 global brands withproducts sold in 130 countries. L’Oréal specialise inthe development of products in five key areasincluding hair care, hair colour, skincare, make-up andfragrances. In 2011 the group achieved €20.3 billionconsolidated sales.

L’Oréal (UK) Ltd has been present in the UK for 75 years. They have 4 distribution centres in the UKlocated in Manchester, Bury, Sherwood Park andLlantrisant. More information can be found atwww.loreal.co.uk

The tenant, L’Oréal (UK) Ltd (company number:00271555) has a D&B rating of 5A1 and reported thefollowing financial results between 2008 and 2010:

Year to31st

December2010 (£s)

31stDecember2009 (£s)

31stDecember2008 (£s)

Turnover 774,475,000 745,770,000 730,066,000

Pre-Tax Profit 107,014,000 93,180,000 74,042,000

Net Worth 78,267,000 (29,314,000) 44,876,000

Plant & MachineryNone of the systems or equipment in the propertyhave been tested by Cushman & Wakefield LLP andpurchasers may wish to make their own investigationsto check that they are in working order.

Capital AllowancesWe understand that there are no transferable capitalallowances available.

VATThe property has been elected for VAT purposes,although the sale of the property cannot be treated asa transfer of a going concern (TOGC), as thepurchaser will be granted a new sub-underlease forthe remainder of the 999 year term, less 1 year and atan annual rent of £100. Therefore VAT will be chargedon the purchase price.

Purchaser’s notional cost are increased to reflectSDLT payable on the VAT element for the purchaseprice. Therefore normal purchaser’s costs areincreased to 6.3%.

ProposalWe are instructed to seek offers for the longleasehold in excess of £8,330,000 (Eight Million,Three Hundred and Thirty Thousand Pounds),subject to contract and exclusive of VAT.

A purchase at this level would reflect an attractive netinitial yield of 8.5% and a reversionary yield of9.38% in June 2016 assuming purchaser’s costs of6.3%.

CAPITAL MARKETSGROUP CONTACTS

L’Oréal, Lakeview Drive,Sherwood Park, Annesley,Nottinghamshire NG15 0DTFor further information or to arrange an inspection please contact:

MIKE BURDENTel: 020 7152 5086Email: mike.burden@eur.cushwake.com

RICHARD PEACETel: 020 7152 5283Email: richard.peace@eur.cushwake.com

EMMA DAWESTel: 020 7152 5890Email: emma.dawes@eur.cushwake.com

Cushman & Wakefield LLP43/45 Portman SquareLondonW1A 3BG

www.cushmanwakefield.com

July 2012MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors orlessors of this property whose agents they are, give notice that: (1) The particulars are producedin good faith, are set out as a general guide only and 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 anyrepresentation or warranty whatever in relation to this property. (3) This property is offeredsubject to contract 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 goodcondition or that any services or facilities are in working order. (5) Unless otherwise stated, noinvestigations have been made regarding pollution or potential land, air or water contamination.Interested parties are advised to carry out their own investigations if required.‘Cushman & Wakefield declare that a partner of C & W has a personal interest in the subjectproperty’.

www.cushmanwakefieldinvestmentsales.co.uk/cw/loreal

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The EPC can be downloaded fromwww.cushmanwakefieldinvestmentsales.co.uk/cw/loreal and click ‘keydocumentation’ tab