INVESTMENT OPPORTUNITY

Redcastle Ltd and Nikken UK Ltd1 Deltic Avenue, Rooksley, Milton Keynes, Buckinghamshire MK13 8LD

Multi-let Warehouse and Office Facility– Fully let to Redcastle Ltd and Nikken UK Ltd

• Offers sought in excess of £2,675,000 (TwoMillion, Six Hundred and Seventy-FiveThousand Pounds) reflecting an attractive netinitial yield of 10.72% having allowed forpurchaser’s costs of 5.8%. This represents a lowcapital value of £40.54.

Proposal

• An industrial warehouse facility measuringapproximately 65,987 sq ft (GIA)

• Strategically located within close proximity ofMilton Keynes town centre

• Site area of 4.57 acres with a low site density of 33%

• Various asset management opportunities andexcellent redevelopment potential

• Fully let to two tenants, Redcastle Ltd andNikken UK Ltd, expiring 1st August 2018 and 4th July 2018 respectively

• Weighted average unexpired lease term of 1.2 years to breaks and 2.8 years to expiries

• Very low passing rent of £303,278 per annumequating to £4.60 per sq ft

• Freehold

Description Tenure & Tenancy

INVESTMENT SUMMARY

LocationMilton Keynes is strategically located in

Buckinghamshire between London, 54 miles (86.9

km) to the south east, Birmingham, 73 miles (117.5 km)

to the north west and Northampton, 21 miles (33.8

km) to the north. Milton Keynes has a population of

229,941 (census 2011) and is considered one of the

UK’s main distribution and manufacturing centres with

the expansion of Blakelands, Tongwell, Stacey Bushes,

Denbigh West, Brinklow and Magna Park.

SituationThe property is located within the Rooksley area of

Milton Keynes, approximately 2 miles to the north

west of Milton Keynes town centre. The property is

situated on the north west end of Deltic Avenue,

which is in close proximity to the A5 trunk road and

A509. Junction 14 of the M1 is easily accessible via

the A509 and is approximately 4.5 miles (7 km) to

the east. Milton Keynes Railway Station is 1 mile

(1.6 km) to the south east of the property.

Surrounding uses comprise predominantly industrial,

retail warehousing and residential. Local occupiers

include B&Q, Go Outdoors, Aldi, Pets at Home,

Hobbycraft, Halfords, ABB and Hitachi.

CommunicationThe town benefits from excellent road transport

links, with Junctions 13 & 14 of the M1 and the A5,

providing direct links to London, the Midlands and

the north of England.

Milton Keynes Central Train Station also benefits

from strong connectivity to London, with a

journey time of approximately 32 minutes and a

frequency of 8 trains an hour. The station provides

direct trains to Birmingham in 55 minutes and

Northampton in 15 minutes.

Milton Keynes is well served by airports, with

London Luton located 27 miles to the south east,

London Heathrow 55 miles to the south, London

Stansted 55 miles to the east and Birmingham

Airport 64 miles to the north west.

GROVEWAY

V6

14

DANSTEED WAY

B4034

MONKS WAY

CHILDS WAY

STANDING WAY

A422

A509

A5

A4146

BRICKHIL

L S

TR

EE

T

M1

To M

1

Junction 9

To M

1

Junction 15

To N

ortha

mpto

n

&

the

North

To L

uton

& Lon

don

MILTONKEYNESMILTONKEYNES

TOWN CENTRETOWN CENTRE

Brinklow

Magna Park

Tongwell

Blakelands

WELLER

’S

AU

CTIO

NS

GO

OUTDOORS

PETS AT

HOME

HOBBY

CRAFT

HALFORDS

SMYTHS

TOYS

ABB

NEVES

SOLICITORS LLP

REDCASTLE LTD

NIKKEN DELTIC

AV

ENU

E

PRECEDENT DRIV

E

BRILL PLA

CE

W

ALKHAMPTON AVENUE

V6

DANSTEED WAY (H

4)

FORRABURY AVENUE

STREA

THA

M PLA

CE

A5

A509

PATRIOT D

RIVE

NORTH LOUGHTONVALLEY PARK

M40M1

A1(M)M11

M4

M2

M5

A423 A5

A43

A508

A428A6

A1

A428

A11

A14A143

A131

A140

A12

A133

A120

A12

A404

A413

A5

A34

A420

A40

A41

A429A46

A429A417

A419

A48

A449A49

A44

A44

A12

A

1

14

10

9

7

4

1

9

216

11

10

7

6 27

14

16

1

12

211

4

8

9

13

1517

WATFORDWATFORD

HEMELHEMPSTEAD

HEMELHEMPSTEAD

LUTONLUTON

HERTFORDHERTFORD

BLETCHLEYBLETCHLEY

HITCHINHITCHIN

MILTON KEYNESMILTON KEYNES

NORTHAMPTONNORTHAMPTON

COLCHESTERCOLCHESTER

OXFORDOXFORD

CAMBRIDGECAMBRIDGE

GLOUCESTERGLOUCESTER

LONDONLONDON

IPSWICHIPSWICH

LOCATION

Nikken UK Ltd &Redcastle Ltd

SITUATION

3

A509

54 6 8 9 10

M1

A5

MILTON KEYNESTOWN CENTRE

7

V6

1 HItachi

2 GO Outdoors

3 Aldi

4 Pets at Home

5 Hobby Craft

6 Next

7 Dwell

8 Halfords

9 Comet

10 B&Q

11 ABB

12 Prodrive

13 Milton KeynesDevelopmentCorporation

14 Wellers Auctions

21

1211 1413

Within close proximityof Milton KeynesCentral RailwayStation

Low site density of 33%

DESCRIPTION

The subject property comprises an

interconnected detached warehouse with

ancillary offices. In total, the building equates

to approximately 65,987 sq ft (6,130 sq m)

GIA with an office provision of 35%.

The warehouse is of a steel framed

construction with metal clad elevations

under a flat roof. The unit provides a clear

eaves height of 5.5m, with 2 full height

loading doors and 5 dock levellers.

Internally, the unit benefits from fluorescent

strip lighting, gas air blowers and

translucent roof panels.

The office is arranged over 2 floors and is

situated with high roadside prominence,

facing the car parking provision. The office

is part metal and part glazed clad with metal

framed windows. Internally, the office

benefits from suspended ceilings, with

recessed fluorescent lighting, gas central

heating, double glazing, attractive reception

area, canteen and WC facilities on both

floors.

SiteThe property occupies a self-containedsecure site of approximately 4.57 acres(1.85 hectares) and has a low site densityof 33%.

Total

GIA

6,130.39 sq m

(65,987 sq ft)

First Floor

within

Office Block –

Offices

554.04 sq m

(5,964 sq ft)

Ground Floor

within

Office Block –

Offices

454.77 sq m

(4,895 sq ft)

First Floor

within

Warehouse –

Offices

494.84 sq m

(5,326 sq ft)

Ground Floor

Warehouse –

Plant

38.28 sq m

(412 sq ft)

ACCOMMODATION

The property has been measured in accordance with the RICS code of measurement practice on a GIA basis as follows:

TenancyThe property is let on two separate leases to Redcastle Ltd and Nikken UK Ltd as follows:

* This is the earliest break date and is a rolling break thereafter. This is tenant only.** This is the earliest break date and is a rolling break thereafter. This is mutual.

Both tenancies have been excluded from the Landlord & Tenant Act 1954.

Both tenants repair liabilities have been documented by separate schedules of condition.

TenureThe property is held Freehold.

Asset management opportunity with reversionary rent

Ground Floor

within

Warehouse –

Offices

674.86 sq m

(7,264 sq ft)

Ground Floor –

Warehouse

3,913.60 sq m

(42,126 sq ft)

Premises Area (sq ft) Income Tenant Start date Break Expiry ReviewRateableValue

Warehouseand Office

43,071 £149,432 Redcastle Limited 02/08/2013 03/02/2017* 01/08/2018 n/a £164,000

Office 22,916 £153,846 Nikken UK Ltd 05/07/2013 05/07/2016** 04/07/2018 n/a £108,000

Total 65,987 £303,278 WAULT 1.2 WAULT 2.8

TENANT COVENANTS

Nikken UK LtdNikken has specialised in the Wellness Industry since 1975

and, since its conception 39 years ago, has expanded its

range to meet modern demand.

In 1989, Nikken first opened an office in the United States and

subsequently spread into Canada and New Mexico. In 1996,

Nikken opened their European offices in Milton Keynes and,by the end of the 1990s, they had expanded into Germany,

the Netherlands, Spain, Finland, France and Ireland.

Today, Nikken operates in over 40 countries and offers a

wide range of wellness products.

Nikken UK Ltd (Registration No: 03151671) has reported the

following financial results:

Further information can be found on their website:

www.nikken.eu

Nikken UK Ltd has an Experian credit rating of 60 and

represents a ‘below average risk’ of business failure.

Redcastle LimitedRedcastle Limited is a subsidiary held by the Arcadia group

and is used primarily for property investment purposes.

Redcastle utilises the property for international distribution

for both Topshop and Topman to global locations including

Russia, Vietnam, Mexico, Panama, New Zealand and Europe.

Redcastle Limited (Registration No: 03194733) has reported

the following financial results:

Redcastle Limited has an Experian credit rating of 100 and

represents a ‘very low risk’ of business failure.

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

Nikken UK Ltd 31/12/2012 (£) 31/12/2013 (£) 31/12/2014 (£)

Turnover £31,952,000 £27,795,000 £20,733,000

Pre-Tax Profit £275,000 £187,000 -£1,254,000

Total Net Worth £8,144,000 £5,690,000 £2,936,000

RedcastleLimited

25/08/2012 (£) 31/08/2013 (£) 30/08/2014 (£)

Turnover £337,768,000 £227,590,000 £206,281,000

Pre-Tax Profit -£9,858,000 -£39,099,000 -£999,000

Net Worth £274,035,000 £312,455,000 £311,008,000

International distribution hubfor Topshop and Topman

The industrial market continues to receive strong

investor demand from a combination of UK

institutions, foreign investors and property

companies. This demand, combined with a shortage

of good quality stock, has resulted in continued

yield compression over the last 18 months, with a

ripple effect from London to the prime and good

secondary regional locations as investors are

looking to up the risk curve. This hardening of

yields is being driven by the weight of money and

tangible evidence of rental growth in key centres

around the UK. Outlined below are some relevant

investment transactions.

Well located industrial building

with a limited Grade A supply in

South-East UK

InvestmentRationale

Low passing rent of £4.60 psf offers

scope for growth with nearby prime

rents of £6.50 psf in Milton Keynes

Various asset management

opportunities through refurbishing

and re-letting the building

Low site coverage of 33% with

future redevelopment potential

AddressSize Sq ft

TermYears

Rentpsf

Date Price YieldCap Valpsf

International Greetings, Newport Pagnell, Milton Keynes 222,566 10.4 £5.39 U/O £19.10m 5.94% £85.82

Units 3,5 & 7 Delaware Drive, Milton Keynes 94,194 Vacant n/a Sep-15 £4.50m n/a £47.88

Amscan, Brudenell Drive, Milton Keynes 111,445 2 £5.63 Aug-15 £10.10m 5.82% £90.63

Bunzl, Unit A, Interlink Park, Bardon 76,184 4.5 £5.01 Jul-15 £6.25m 5.77% £82.04

K&N, Arlington Business Park, Theale 96,580 3 £7.70 Apr-15 £10.70m 6.60% £110.79

Triumph Motorcycle Works, Jacknell Road, Hinckley 182,014 4 £4.28 Mar-15 £9.50m 7.75% £52.19

P&O Unit, Magna Park, Lutterworth 122,231 6 £4.99 Jan-15 £11.51m 5.10% £94.17

Maidstone Road, Kingston, Milton Keynes 24,258 Vacant n/a Jan-15 £1.63m n/a £67.19

Massmould, Bradbourne Drive, Milton Keynes 52,532 11 £5.33 Dec-14 £3.80m 6.90% £72.34

3D Michigan Drive, Milton Keynes 50,500 Vacant n/a Feb-14 £2.20m n/a £43.50

Units 2/3 Java Park, Milton Keynes 51,000 Vacant n/a Feb-14 £3.30m n/a £64.70

Served as international distribution

hub for Arcadia

Attractive capital value per sq ft of

£40.54

INVESTMENT MARKET

We are seeking offers in excess of £2,675,000 for our client’s freehold interest in the property,subject to contract. A purchase at this pricereflects a net initial yield of 10.72%, having allowed for purchaser’s costs of 5.8%. Thisrepresents a low capital value of £40.54.

EPC RatingThe property has an EPC Rating as follows:

Warehouse: C-65

Office: D-87

VATWe understand the property has been elected for VAT, which

will therefore be chargeable on the sale price unless the

transaction can be treated as a Transfer of a Going Concern

(TOGC).

Web Accesswww.cushmanwakefieldinvestmentsales.co.uk/cw/miltonkeynes

PROPOSAL

October 2015

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 ingood 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 any representation orwarranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars shouldbe 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 regardingpollution 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

Richard PeaceE: richard.peace@cushwake.comT: +44 (0) 207 152 5283

Nicholas DufeuE: nick.dufeu@cushwake.comT: +44 (0) 207 152 5230

Ben SleathE: ben.sleath@cushwake.comT: +44 (0) 207 152 5366

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

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