FINDEL PLC, 1 MOLLISON AVENUE, ENFIELD EN3 7XQ

LONG LET DISTRIBUTION WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

LOCATED WITHIN THE M25

1 MOLLISON AVENUE 01

A PRIME DISTRIBUTION WAREHOUSE

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SUMMARY- Prime distribution warehouse located

in one of London’s premier industrial locations.

- Excellent connectivity being situated in close proximity to Junction 25 of the M25 motorway.

- The property is situated in a prominent location fronting Mollison Avenue to the south and the M25 to the north.

INVESTMENT SUMMARY

DESCRIPTION- A high quality HQ warehouse building

purpose built for Findel plc.- The unit was developed in 1994 and

totals 144,748 sq ft with an eaves height of 8.75 metres.

- Low site density of 49% considering its inner M25 location.

TENANCY AND TENURE- Fully let to Findel plc on a lease expiring

28th September 2028.- Unexpired term of approximately

12 years.- Total current passing rent of £1,218,322

per annum equating to £8.42 per sq ft.- Rent reviews in 2018 and 2023 with a

minimum uplift of 2.5% per annum compounded.

- Freehold.

PROPOSAL - Offers sought in excess of £21,740,000

reflecting an attractive net initial yield of 5.25% after allowing for purchaser’s costs of 6.75%.

- A purchase at this level produces a minimum reversionary yield of 5.94% in 2018 and 6.72% in 2023.

- This equates to a low capital value of £150 per sq ft.

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STRATEGICALLY POSITIONED

TESCO

YODEL

ICELANDJJ FOOD

JOHN LEWIS

WALTHAM CROSS

ENFIELD LOCK

04

OCADO

THE DELTA GROUP

SAINSBURY’S

REYNOLDS DELIVERY

ABBEY ROAD

M25 JUNCTION 26

M25KELVIN HUGHES

MOLLISON AVENUE

MOLLISON AVENUEA1055

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M25 JUNCTION 25

A1055

A1010

HERTFORD ROAD

SQ PROFESSIONAL

WINSTONE CHURCHILL WAY

ELANORE CROSS RD

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WALTHAM CROSS

ENFIELDLOCK

THEOBALDSGROVE

TURKEYSTREET

LEE VALLEY WHITEWATER CENTRE

LOCATIONEnfield is situated 12 miles north of Central London and is considered one of London’s premier distribution locations. Its strategic position makes it very well placed to service London via the A10 and A406 (North Circular) and also has excellent access to the national motorway network via the M25 to the M11, A1 (M) and M1. It is estimated that just under 90% of the UK’s population are accessible within a 4.5 hour drive time.

Luton Airport and London Stansted are both situated approximately 30 miles to the north west and north east respectively with Heathrow approximately 40 miles to the south west. Enfield Lock railway station (1.5 miles) provides regular services to London Liverpool Street with journey times of 27 minutes.

SITUATIONThe unit is strategically located directly south of the M25, in a prominent position to the north of Mollison Avenue, with proximity to both Junction 25 (2 miles) and Junction 26 (5 miles) which provides access to the wider motorway network. The A10 dual carriageway links the property with Central London (14 miles) and the A406 North Circular (6 miles) to the south. As such, this prime location attracts a range of national and international occupiers including Iceland, Yodel, John Lewis, Tesco, JJ Foods and Sainsbury’s.

MO

LLIS

ON

AV

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M25

A1(M)

M25

J25 J26

A1(M)

M1

M1 M11

M11

A10

A10

A10

A414

A1

A406

A406A40

A312

A41

A406

A12

A414 A414

A414

A602 A10

A120

M25

LUTON

HARPENDEN

LUTONAIRPORT

ST ALBANS

STEVENAGE

HARLOW

BISHOP’SSTORTFORD

HERTFORD

EPPING

LEE VALLEYREGIONAL PARK

WATFORD

HARROW

WEMBLEY LONDON

STANSTEDAIRPORT

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DESCRIPTIONThe property was constructed in 1994 and comprises a modern purpose built distribution warehouse. The asset is of steel portal frame construction under a pitched roof of profiled steel. Internally, the elevations are cavity brickwork to 2.5 metres with profiled metal cladding thereafter. Additionally, within the main warehouse there is a flammables store, ancillary offices and locker/ rest rooms. To the front of the building, facing Mollison Avenue, is the reception and office accommodation which is arranged over two floors and provides direct access to the warehouse behind.

SPECIFICATIONThe unit benefits from the following specification:

WAREHOUSE_ 20 dock level loading doors

_ 4 level access loading doors

_ Eaves of 8.75 metres

_ Translucent GRP roof lights

_ Sprinkler System

_ Gas powered heaters

_ Tenant installed mezzanine across part of the warehouse

OFFICE_ Raised Floors

_ Suspended Ceilings

_ Passenger Lift

_ Gas central heating

_ Meeting/ board rooms

_ Canteen

EXTERNAL_ Maximum yard depth of 39m

_ 24 hour security gatehouse

_ 96 car parking spaces

_ Secure yard

_ CCTV

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A PURPOSE BUILT WAREHOUSE

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SITEThe property is situated on a broadly rectangular site with an area of approximately 6.80 acres (2.75 hectares). The overall site coverage is approximately 49%.

TENANCYThe property is let to Findel plc on a 20 year lease expiring 28th September 2028, therefore leaving approximately 12 years unexpired. The passing rent is £1,218,322 per annum reflecting £8.42 per sq ft.

The lease is subject to 5 yearly rent reviews, which are to the higher of the Reviewed Rent or the Indexed Rent (as outlined below):

Reviewed Rent: Open market reviews on a hypothetical term of 10 years

Indexed Rent: 2.5% compounded annually

The next review is on 29th September 2018 with a further review in 2023. Based on the review clause at the next review in 2018 there will be a minimum rental uplift to £1,378,420 pa.

The lease is protected under the provisions of the Landlord and Tenant Act 1954.

TENUREFreehold.

ACCOMMODATIONThe property has been measured in accordance with the RICS property measurement standards (2015) and comprises of the following approximate areas, measured on a GIA basis:

UNIT SQ M SQ FT

Main Warehouse 11,720.2 126,155

Offices (Ground & First Floor) 1,208.7 13,010

Loading Bay 474.1 5,103

Pump Room 44.6 480

TOTAL 13,447.6 144,748

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For indicative purposes only, not to scale

TENANT COVENANTFindel plc was established in Greater Manchester in 1955 and has grown into a leading general merchandise supplier to the home and education sectors. The company is split into two main arms; Findel Education Resources which retails direct to schools across the UK and is the UK’s leading educational resource supplier and Express Gifts which offers a range of products direct to the consumer.

Today, Findel provides 25,000 different products to 3.7 million clients and caters for early years through to higher education. On average the company delivers nearly 9 million parcels per year.

The company is seeing an increased percentage of products being sold through the online and home shopping arms. Online purchasing is also becoming more important in the education sector where Findel is pioneering the technology with local authorities.

Findel plc has an Experian risk score of 100 out of 100 which represents a Very Low Risk company. The company has reported the following results:

27/03/2014 25/03/2015 25/03/2016

Turnover £468,232,000 £481,418,000 £410,601,000

Pre-Tax Profit £5,649,000 -£1,719,000 -£1,680,000

Net Worth £21,311,000 £32,493,000 £31,553,000

PLANNINGThe subject unit benefits from planning for Use Classes B1 (C) or B8.

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INVESTMENT MARKETThe Greater London industrial investment market has shown its continued resilience in light of the EU Referendum vote with strong demand from a number of investors. The draw of London and the increasing tenant demand from e-commerce in ‘last mile’ locations, with associated rental growth, are proving key drivers for continued investor appetite.

Furthermore, many industrial sites are being converted to higher value alternative uses which is further increasing the supply and demand imbalance. This is providing a platform for the trend of rental growth to continue in years to come, which ensures the investment case for Greater London industrial remains highly attractive for investors.

Below is a list of key investment transactions in the Greater London area:

ADDRESS DATE AREA (SQ FT) UNEXPIRED TERM PRICE INITIAL YIELD CAPITAL VALUE (PSF)

Charlie Bingham, 2 McNichol Drive, Park Royal Aug-16 23,938 6.5 years £5,500,000 4.43% £245

TNT, Capacity Dartford, Bob Dunn Way, Dartford Apr-16 132,715 20 years £32,245,000 4.48% £243

Leap New Co, Acton Lane, Park Royal Jan-16 44,019 15 years £11,000,000 4.75% £250

Allport Cargo, 13 Hayes Road, Southall Dec-15 105,486 10 years £21,900,000 4.90% £208

Rygor Commercials, Bedfont Aug-15 22,312 14.8 years £6,220,000 4.75% £279

Geopost, Orion Park, Dagenham Jul-15 65,746 25 years £17,690,000 4.17% £269

Isis Reach Distribution Centre, Belvedere Jun-15 350,000 11 years £41,000,000 4.78% £117

OCCUPATIONAL MARKETEnfield is considered one of London’s premier industrial locations with strong access to the South East and rest of the UK owing to its proximity to the M25 and M1. The area is experiencing an acute lack of available stock with strong demand from a combination of retailers, food and drink distributors and 3PL’s as the ecommerce sector continues to grow.

Looking forward, there is a shortage of land supply further restricting future development opportunities. Prime rents in Enfield are considered to be in the region of £10.00 per sq ft with good prospects of rental growth looking forward.

Below is a list of key rental transactions:

ADDRESS DATE AREA (SQ FT) TENANT RENT (PSF) RENT (PER ANNUM) LEASE LENGTH

Imperial, Innova Park, Enfield Jun-16 76,000 Tzatziki Foods £9.75 £741,000 Confidential

Brantwood Road, Tottenham Jun-16 65,000 Bestway Cash and Carry £9.50 £617,500 10 years

Unit 2, Enfield Distribution Park, Enfield May-16 50,000 Cooks Delight £9.50 £475,000 15 years

Navigation Park, Enfield Mar-16 47,630 Camden Brewery £9.95 £473,919 15 years

Unit 1, Enfield Distribution Park, Enfield Mar-16 45,000 DFS £9.95 £447,350 15 years

Mollison Avenue, Enfield Dec-15 97,951 Yodel £9.25 £906,047 15 years

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Misrepresentation Act 1967: Cushman & Wakefield for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give Cushman & Wakefield nor any person in their employment any authority to make or give, any representation or warranty whatever in relation to this property. 5. Computer Generated Images are for indicative purposes only and do not necessarily represent the finished design specification. Finance Act 1989: Unless otherwise stated all prices and rents are quote exclusive of VAT. Property Misdescriptions Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2016.

JASON WINFIELD020 7152 5920jason.winfield@cushwake.com

RICHARD WADHAM020 7152 5923richard.wadham@cushwake.com

RORY TURNER020 7152 5205rory.turner@cushwake.com

CONTACT

BUILDING SURVEYWatts have undertaken a Building Condition Survey which provides an estimate of capital expenditure requirements over the next 10 years. A Letter of Reliance for this report will be available to the purchaser.

ENVIRONMENTALRamboll Environ have carried out a Phase I Environmental Review of the site and concluded that in its ongoing use it has a “low risk in terms of the potential for ground contamination”. A Letter of Reliance for this report will be available to the purchaser.

EPCEnergy Performance Certificate: C 66

VATThe property is registered for VAT purposes. The intention is to sell the property by way of a transfer of a going concern (TOGC).

PROPOSALOffers are sought in excess of £21,740,000 (Twenty One Million Seven Hundred and Forty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this price reflects a net initial yield of 5.25% (assuming purchaser’s costs of 6.75%) and low capital value of £150 per sq ft.

A purchase at this level produces a minimum reversionary yield of 5.94% in 2018 and 6.72% in 2023.

FURTHER INFORMATION