The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield

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The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
The Flamingo Industrial Portfolio

High Yielding Sale and Leaseback
Portfolio with annual RPI Indexation
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
A superb opportunity to acquire
     three substantial flower processing
       facilities totalling 488,585 sq ft
                  (45,391 sq m)

      All three assets are located in the
       East of England, a key area for
              horticultural output

     On completion the properties will be
       let to Flamingo Flowers Ltd, for a
     term of 20 years subject to a tenant                                  INVESTMENT SUMMARY
          only break option in year 10

                                                   Flamingo Horticulture Ltd,
     Initial rent of £1,259,859 pa reflecting
                                                the newly consolidated company,
                                                                                  PRICING SUMMARY
         £2.58 per sq ft across the three
                                                   will provide a guarantee on            Offers in the region of
                     properties
                                                             all leases                 £13,000,000 reflecting a
                                                                                        net initial yield of 9.00%
                                                                                   after allowing for purchaser’s cost
                                                                                                 of 7.70%
       Subject to 5 yearly RPI linked rent        Exceptionally low site cover
         reviews compounded annually,               of 28% providing future       At a purchase price of £13,000,000,
     collared at 1% pa and capped at 3% pa          development potential            this investment would provide
                                                                                          reversionary yields of:
                                                                                      2021: Min 9.46% Max: 10.43%
                                                                                     2026: Min 9.94% Max: 12.09%
         Flamingo Flowers Ltd, part of                                               2031: Min 10.45% Max: 14.02%
            Flamingo Horticulture, is
                                                           Freehold                        Capital Value of
     a multi-national market leader within
                                                                                      approximately £26.60 sq ft
       the flower and vegetable industry
02
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
PORTFOLIO SUMMARY
Great North Road, Sandy

                                                                                                                        INVERNESS                     A96

                                                                                                                                                 ABERDEEN

                                                                                                                                                            A90
                                                                                                                                           A9

                                                                                                                                                M90
                                                                                                                                     M9
                                                                                                                                                  EDINBURGH
                                                                                                                                           M8
                                                                                                                                                                                                          Weston,
                                                                                                                                                                   A1
                                                                                                                                     M74 A702                                                             Spalding
                                                                                                                           AYR                              A68
                                                                                                                                     A76
Weston, Spalding                                                                                                                               A74M

                                                                                                                                                                             NEWCASTLE
                                                                                                                                    CARLISLE
                                                                                                                                                       19

                                                                                                                                                                        A1M
                                                                                                                                                                                A170
                                                                                                                                                       M6
                                                                                                               Great North Road,                                                                            Low Fulney,
                                                                                                               Sandy                                          LEEDS                                         Spalding
                                                                                                                                                              19
                                                                                                                                   LIVERPOOL
                                                                                                                                           A55                      SHEFFIELD               LINCOLN
                                                                                                                                                              M6              M1
                                                                                                                                                                                              A52
                                                                                                                                                                    NOTTINGHAM
                                                                                                                                                                                       A1           A17
                                                                                                                                                      A458                    21A

                                                                                                                                                                                              PETERBOROUGH
                                                                                                                                                 BIRMINGHAM                     19
                                                                                                                                                                                                      A11
                                                                                                                                                                   4A
Low Fulney, Spalding                                                                                                                                                    16             A5
                                                                                                                                                                                      M1
                                                                                                                                                                   M5         M40                              FELIXSTOWE

                                                 Term      Break     Size     Rent      Rent       Site Area
Property                        Tenant                                                                                                                                   M4
                                                (years)   (years)   (sq ft)   (psf)     (pa)        (acres)                                                                                LONDON
Great North Road, Sandy,                                                                                                                                                        M3                    M20      DOVER
                               Flamingo           20        10      123,409   £3.25   £401,079       12.55
SG19 2AG                                                                                                                                          M5
                              Flowers Ltd
Stone Gate, Weston,                                                                                                                               SOUTHAMPTON
                            (Guaranteed by        20        10      254,391   £2.20   £559,660      15.40                          A30      31                                       PORTSMOUTH
Spalding, PE12 6HR                                                                                                                       A38
                               Flamingo
Rangell Gate, Low Fulney,   Horticulture Ltd)     20        10      110,785   £2.70   £299,120       11.55
Spalding, PE12 6EW

Total                                                               488,585   £2.58   £1,259,859    39.50

                                                                                                                                                                                                                            03
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
COVENANT INFORMATION
     Company Overview
     Since its inception, the Flamingo buisness has steadily expanded and today is   Guarantor
     a multinational market leader in the cut flower and premium vegetable           Flamingo Horticulture Limited (company no: 09709586) will act as guarantor
     industry. Today, Flamingo Flowers is one of the largest global suppliers of     to all three leases. This entity was newly created for the purchase and now
     fresh cut flowers, sourcing and processing a total of c.780m stems per annum    acts as Group company, consolidating all of the Flamingo entities below it.
     primarily for the UK and continental European markets. It has been steadily     Below we present the summary financials.
     increasing its market share with large UK supermarkets such as Tesco and
                                                                                     Flamingo Horticulture Ltd
     Marks & Spencer (with whom it has had a relationship for over 20 years).                                                    2013            2014      2015
                                                                                     Company No.: 09709586
     The business has witnessed strong sales growth, having grown its sales from     Sales                                    £280.2m       £293.8m      £323.5m
     £280m in 2013 to £324m in 2015 through increasing its market share with key
     customers and gaining new clients (including Waitrose). In addition,            Growth                                      N/A             4.9%      10.1%
     profitability has increased with EBITDA rising from £10.2m to £15.5m driven     Gross Profit                              £36.8m           £38.2m   £46.7m
     by higher revenue on a reduced cost base.                                       Margin                                     13.1%           13.0%     14.4%
     The company was acquired in 2015 by an affiliate of Sun European Partners       EBITDA                                    £10.2m           £11.6m    £15.5m
     LLP (“Sun Capital”), a leading private equity firm with over $9bn of capital
     under management. Sun Capital has changed the company’s name to                 Margin                                      3.6%            3.9%      4.8%
     Flamingo Horticulture post acquisition and completed the separation with        Net Assets (1)                            £62.0m           £68.2m   £31.0m
     James Finlay Limited, a division of the Swire Group (the previous owners).      (1) FY15 net assets include Sun Capital acquisition debt
     Sun Capital sees substantial upside in growing Flamingo Horticulture’s steady
     and defensible revenue stream through offering new higher margin products       Tenant
     to its current customers, improving agronomical practices on its farms,         The tenant will be Flamingo Flowers Limited (company No: 02921420), which
     reducing costs and through making investments in its UK operations to           is a subsidiary of Flamingo Horticulture Limited. Further information regarding
     improve efficiency and profitability.                                           the tenant is available on request.

     Business Operations at the Properties
     The three subject properties comprise Flamingo’s main flower                     Flamingo Flowers Ltd
                                                                                                                                                 2015
     processing sites, and are therefore critical to the operational success of       Company No.: 02921420
     the business. Flowers are brought to the properties from different               Turnover                                              £170.3m
     locations around the world, predominantly from their global farming
     operations. The sites service their core flower contracts with Tesco and         Pre-tax Profit                                            £4.5m
     Marks & Spencer, in addition to some ancillary contracts such as hamper          Current Assets                                            £32.4m
     arrangement and distribution.                                                    EBITDA                                                    £8.3m
     Operations on-site include cutting, preparation, branding, packing and
     outbound distribution to clients.
                                                                                                                                                                       Further information on the business can be found at www.flamingo.net

04
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
FLAMINGO FLOWERS LTD
GREAT NORTH ROAD, SANDY SG19 2AG

                                                             Warehouse:
LOCATION AND SITUATION                                                                                                                                                                                                                                                                                                                     A428

The subject property is located in a prominent position      • 16 dock level loading bays
on the A1, with London approximately 52 miles to the         • 4 level access loading bays                                                                                                                                                                                                                                                 LITTLE BARFORD

                                                                                                                                                                                                        60
south and Peterborough 31 miles to the north. The site

                                                                                                                                                                                                      B6
                                                             • Sodium and fluorescent strip lighting
also has access to the wider motorway network with the
M25 (38 miles) to the south, the M1 (30 miles) to the        Office:                                                                                                                                                                                                             COLESDEN
                                                                                                                                                                                                                                                                                   ROAD

                                                                                                                                                                                               60
west via the A421 and the M11 (19 miles) to the east via

                                                                                                                                                                                             B6
                                                             • Perimeter trunking                                                                                                                                                                                                                            FLAMINGO
the A428.
                                                             • Floor to ceiling ‘buzz bars’                                                                                                                                                                                                                  FLOWERS
In closer proximity, Sandy is situated 1.5 miles to the

                                                                                                                                                                                                                                        BA R O
                                                                                                                                                                                                                                                                                                                                  A1

                                                                                                                                                                                                                                          RT A
                                                             • Air conditioning

                                                                                                                                                                                                                                            FO D
                                                                                                                                                                                                                                               RD
south with St. Neots approximately 6 miles to the north                                                                                                                                                                                                                        A421
                                                                                                                                                                                                             CHURCH END
which has an established industrial market.                  • Wall mounted radiators                                                                                                                                                                                                                                                          RAF TEMPSFORD
                                                                                                                                                                                                                                                                                                                                               RAF TEMPSFORD
                                                                                                                                                                            WENTWORTH DRIVE

                                                             • Suspended ceilings                                                                                                                                                                                        GREAT BARFORD

DESCRIPTION
                                                                                                                                                        E
                                                                                                                                                   IV
                                                                                                                                               R
                                                                                                                                           D                                            LN

                                                             • Fluorescent strip lighting                                B
                                                                                                                          R
                                                                                                                           IC
                                                                                                                                KH
                                                                                                                                     IL
                                                                                                                                       L

                                                                                                                                                                            PU
                                                                                                                                                                              TN
                                                                                                                                                                                O
                                                                                                                                                                                    E

                                                                                                                                           BEDFORD PARK

The site comprises one main building and several                                                                                                                                                                                                                                            BART
                                                                                                                                                                                                                                                                                                FO
                                                                                                                                                                                                                                                                                             ROA RD
                                                                                                                                                                                                                                                                                                 D

smaller buildings on a flat rectangular shaped site. The
main building consists of a 7 bay steel profiled clad
                                                             COMMUNICATION                                                                                     A4280
                                                                                                                                                                                                             A421
                                                                                                                                                   BEDFORD
production facility, which was constructed in phases         Sandy railway station is situated within a short drive of                                                                                                            ORD
                                                                                                                                                                                                                                      ROAD                                        BEDFORD ROA
                                                                                                                                                                                                                                                                                              D
                                                                                                                                                                                                                              BEDF                                     SANDY

between the 1970s - 2000s, with varying eaves heights        the property and provides regular services to London                                                                                                                                                      ROAD

                                                                                                                                                              LO
                                                                                                                                                                                         CARDINGTON

                                                                                                                                                                N
                                                             (48 minutes) as well as throughout the region. The                                                                                                                                                                                                                        SANDY

                                                                                                                                                                 D
dependent on the age of the building and the                                                                                                                                                ROAD

                                                                                                                                                                   O
                                                                                                                A

                                                                                                                                                                    N
                                                                                                                                                                                                                                                                                                                                                               B

                                                                                                                                                                     RO
                                                                                                                                                                       A
                                                                                                                                                                        D
operational requirement of the occupier. The majority of     subject property also boasts excellent connectivity to a                                       MILE ROAD                        A513
                                                                                                                                                                                                 4
                                                                                                                                                                                                                                                                                                                                           SANDY
                                                                                                                                                                                                                                                    NO
                                                                                                                                                                                                                                                                                                                                        RAIL STATION
the building is used as a production facility, either with   number of airports, including Luton which is 30 miles to                                                                                                                                 RT

                                                                                                                                                                                                                                                                                                               RD
                                                                                                                                                                                                                                                         HIL
                                                                                                                                                                                                                                                            L

                                                                                                                                                                                                                                                                                                               E
                                                                                                                                                                                                                                                                RO

                                                                                                                                                                                                                                                                                                            OT
                                                                                                                                                                                                                                                                  AD

                                                                                                                                                                                                                                                                                                          NC
ambient temperature or insulated with ‘white walling’        the south west and London Stansted 48 miles to the                                              A421                                                                                                                                                                          A1

                                                                                                                                                                                                                                                                                                        OR

                                                                                                                                                                                                                                                                                                                                B65
                                                                                                                                                                                                                                                                                                      TH

                                                                                                                                                                                                                                                                                                                                   8
providing a temperature controlled environment. There        south east. London Heathrow, England’s largest and                                                                                                                                                                  BEDFORD ROAD

                                                                                                                                                                                                                          SO
are modern offices and canteen facilities on the first       busiest airport, is situated 60 miles to the south. The

                                                                                                                                                                                                                            UT
                                                                                                                                                                                                                              HIL
                                                                                                                                                                                                                                 L
                                                             proximity of these airports is important to the occupier

                                                                                                                                                                                                                                 RO
floor. Specification as follows:

                                                                                                                                                                                                                                   AD
                                                             as they rely on air freight services for the delivery of
                                                                                                                                                             A6
                                                             stock from Africa in particular.                                                                                                                                                                                                                       HILL LANE

                                                                                                                                                                                                              HIG
                                                                                                                                                                                                                H                                                                                                                                                  05
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
ACCOMMODATION & TENANCY
     The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on
     a Gross Internal Area basis as follows:

           Demise                                               Area (sq m)                       Area (sq ft)

     1     Main Warehouse                                          9,979                           107,408

     2     Distribution Warehouse                                    611                             6,574

     3     Workshop                                                 540                              5,814

     4     Nissen Hut                                               336                              3,613

           Total                                                   11,466                          123,409

     5     Glasshouse                                               2,263                           24,356

           Total                                                   13,729                           147,765

     The Glasshouse has not been included in our measurements and has not been rentalised.
     The numbers in the table above correspond with the plan below.

     SITE
     The property is situated on a site with an area of approximately 12.55 acres (5.08
     hectares). The overall site coverage ratio is approximately 23%.
     The areas hatched blue on the plan are temporary structures which are leased from a third
     party and therefore do not form part of the sale or measurements above.

     TENANCY
     Upon completion of the sale, the property will be let to Flamingo Flowers Ltd with a
     guarantee from Flamingo Horticulture Ltd for a term of 20 years subject to 5 yearly RPI
     linked reviews, annually compounded, collared at 1% pa and capped at 3% pa.
     The initial passing rent is £401,079 per annum reflecting £3.25 per sq ft. There will be a
     tenant only break option in year 10.
     There are no repairing covenants within the proposed lease.

     Low Site Coverage of 23%

                                                                                                                 06
06
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
FLAMINGO FLOWERS LTD
STONEGATE, WESTON, SPALDING PE12 6HR

                                                                                                                                                                                         RO
                                                             the weatherproof tunnel. This area is used for cold
LOCATION AND SITUATION

                                                                                                                                                                                     ET
                                                                                                                                                                                  LE
                                                             storage, packaging and distribution, which are

                                                                                                                                                                                RF
                                                                                                                                                                              SU
Spalding is an historic market town and expanding            compartmentalised and ‘white walled’. In addition, the
commercial centre on the banks of the River Welland          hamper section also provides offices at ground and first                                                                                                                                      FLAMINGO
and the administrative centre for South Holland District     floor level and a staff canteen, which is a recent addition                                                                                                                                   FLOWERS

                                                                                                                                                       EET
Council. The town and the surrounding area hold              to the building. Specification includes: suspended

                                                                                                                                                    STR
regional importance as an established location for           ceiling, inset fluorescent strip lighting, wall mounted             KNIGHT ST                                                                           A16

                                                                                                                                                RCH
specialists’ bulb and flower growing, fruit and food         radiators, wall mounted a/c units and raised floors.

                                                                                                                                             CHU
processing, with associated industries supporting local                                                                     PINCHBECK
                                                             Building 2 located to the south-western edge of the site,
agriculture, storage and distribution.
                                                             was built in the 1990s and comprises a rectangular
The property is situated in a prominent location on the      building of steel frame construction with profiled steel                                        B1180
A151 bypass, approximately 4 miles to the north east of      cladding under a pitched roof. There is a 12.31m deep                                                                                                                                           WESTON

Spalding town centre. The A16 is situated 2 miles to the     canopy covering the 9 loading doors and internally the
west of the site and is an arterial road in the East of      building provides a mixture of cold and ambient stores.
England, with Peterborough (20 miles) to the south and

                                                                                                                                                                         AD
                                                             In a prominent location on the western corner of the site

                                                                                                                                                                     K RO
                                                                                                                                                                                                                                                   A151
Boston (16 miles) to the north.

                                                                                                                                                                 HBEC
                                                             are offices (Building 3), which operated as their office                                                                                                                                                 MOULTON

                                                                                                                                                             PINC
                                                             HQ. The building was constructed in the 1980s and is of
DESCRIPTION                                                  brick block construction. The building is vacant at the       ark                                                   W Elloe
                                                                                                                                                                                           Ave

                                                             moment and provides further long term asset
The subject property was built in various stages from        management potential.
1960s-1990s with the site comprising 3 main buildings
numbered 1 to 3 on the map (overleaf). Dependent on
                                                             COMMUNICATION                                                                           SPALDING

                                                                                                                                                                                        3
age, the buildings are built using a combination of brick                                                                                                                                                           TE

                                                                                                                                                                                      17
                                                                                                                                                                                                                  GA

                                                                                                                                                                                    B1
                                                                                                                                                                                                     E        R
                                                                                                                                                                                                   LM
and steel frame construction, with varying eaves                                                                                AD            SPALDING                                           HA

                                                                                                                                                                                                                                 RA N
                                                                                                                              RO
                                                             Spalding railway station is located in Spalding town          ER
                                                                                                                                             RAIL STATION
heights. There are a total of 14 loading doors.

                                                                                                                                                                                                                                     GEL
                                                                                                                                                                                                                                              LOW FULNEY
                                                             centre and provides services to commercial centres

                                                                                                                                                                                                                                        L
                                                                                                                                                                                                                                       GAT
Building 1 comprises a number of different bays and          such as Peterborough (22 mins), Lincoln (1 hour) and                                                                                                          A16

                                                                                                                                                                                                                                          E
internally they serve as various flower processing           Doncaster (1 hour 30 mins). Peterborough is a major rail
spaces, together with workshops, small offices and           interchange and provides numerous services across the

                                                                                                                                                                                                          E
security gate office. To the south-west elevation there is   country via Great Northern and Virgin East Coast

                                                                                                                                                                                                       ROV
                                                                                                                                                                                                     GD
a single storey ‘tunnel’, which provides a weatherproof      services. Direct services include London (51 mins),
                                                                                                                                                                                                 LDIN
link to the whole terrace, including the hamper section      Birmingham (1 hour 46 mins) and Newcastle (2 hours).
                                                                                                                                             3

                                                                                                                                                                                              SPA
                                                                                                                                         B117

which comprises 2 bays and is located the other side of

                                                                                                                                                                                                                                                                                07
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
ACCOMMODATION & TENANCY
     The main warehouse and flower processing facility has been measured in accordance with the RICS Code of Measuring Practice 6th
     Edition on a Gross Internal Area basis as follows:

           Demise                                               Area (sq m)                    Area (sq ft)

     1     Main Warehouse                                          18,401                        198,067

     2     Flower Processing Facility                              5,233                         56,324

           Total                                                   23,634                        254,391

     3     Office (Vacant)                                          794                           8,331

           Total                                                   24,428                       262,722

     We have not measured the office building and nor has it been rentalised.
     The numbers in the table correspond with the plan below.

     SITE
     The property is situated on a site with an area of approximately 15.40 acres (6.23
     hectares). The overall site coverage ratio is approximately 38%.

     TENANCY
     Upon completion of the sale, the property will be let to Flamingo Flowers Ltd with a
     guarantee from Flamingo Horticulture Ltd for a term of 20 years subject to 5 yearly RPI
     linked reviews, annually compounded, collared at 1% pa and capped at 3% pa. The initial
     passing rent is £559,660 per annum reflecting £2.20 per sq ft. There will be a tenant
     only break option in year 10.
     There are no repairing covenants within the proposed lease.

     A Site Area of Approximately
     15.40 acres (6.23 hectares)
                                                                                                                                      08
08
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
FLAMINGO FLOWERS LTD,
RANGELL GATE, LOW FULNEY, SPALDING PE12 6EW

                                                                                                                                                                                              D
                                                          Offices are provided at 1st floor level which benefits
LOCATION AND SITUATION

                                                                                                                                                                                        A
                                                                                                                                                                                      RO
                                                                                                                                                                                   T
                                                          from suspended ceilings, floor to ceiling buzz bars

                                                                                                                                                                                  E
                                                                                                                                                                               LE
                                                                                                                                                                             RF
Spalding is an historic market town and expanding         and recently installed LED lights. To the north of

                                                                                                                                                                           SU
commercial centre on the banks of the River Welland       Building 2 there is a single storey portacabin
and the administrative centre for South Holland           (Building 3), which is used as additional office
District Council. The town and the surrounding area       accommodation. It benefits from double glazed

                                                                                                                                                    EET
                                                                                                                                                 STR
hold regional importance as an established location       windows, ceiling mounted lights and a solid floor.                     KNIGHT ST                                                                   A16

                                                                                                                                                RCH
for specialists’ bulb and flower growing, fruit and
                                                          Building 2 provides further flower processing

                                                                                                                                             CHU
food processing, with associated industries                                                                                 PINCHBECK
                                                          accommodation, which is part arranged as ambient
supporting local agriculture, storage and distribution.
                                                          temperature and part as cold storage. There are 4
The subject property is situated off Rangell Gate in                                                                                                                                                               FLAMINGO
                                                          bays which are all of the same construction. There is a                                         B1180

close proximity to the Al6, which provides direct                                                                                                                                                                  FLOWERS                         WESTON
                                                          further building to the west elevation, which serves
access to Boston (16 miles) to the north and              for distribution with five dock level loading doors.
Peterborough (20 miles) to the south. Low Fulney is       There are a number of ancillary buildings, which are

                                                                                                                                                                      AD
                                                                                                                                                                  K RO
positioned approximately 2 miles south-east from the      generally small in scale around the site, as well as a                                                                                                                           A151

                                                                                                                                                              HBEC
                                                                                                                                                                                                                                                            MOULTON
centre of Spalding and comprises a number of              temporary structure.

                                                                                                                                                          PINC
different plant growing and conditioning facilities.
                                                          Staff car parking is provided to the north of the site
Occupiers include: Butters Group, Opperman Plants                                                                   ygate
                                                                                                                          Park
                                                                                                                                                                              W Elloe
                                                                                                                                                                                        Ave

                                                          and provides approximately 147 spaces.
and West Nurseries Ltd.

DESCRIPTION                                               COMMUNICATION                                                                               SPALDING

                                                                                                                                                                                     3
                                                                                                                                                                                                            TE

                                                                                                                                                                                   17
                                                                                                                                                                                                          GA

                                                                                                                                                                                 B1
                                                                                                                                     SPALDING                                                     ER
                                                                                                                                                                                                LM
                                                          Spalding railway station is located in Spalding town                  AD                                                            HA

                                                                                                                                                                                                                         RA N
                                                                                                                              RO
The site comprises two flower processing facilities                                                                     OV
                                                                                                                           ER       RAIL STATION
                                                                                                                    INS

                                                                                                                                                                                                                             GEL
                                                          centre and provides services to commercial centres                                                                                                                          LOW FULNEY
separated by an access road. The buildings are of a

                                                                                                                                                                                                                                L
                                                                                                                                                                                                                               GAT
                                                          such as Peterborough (22 mins), Lincoln (1 hour) and
mixture of steel frame and brick construction, with                                                                                                                                                                A16

                                                                                                                                                                                                                                  E
                                                          Doncaster (1 hour 30 mins). Peterborough is a major
profiled metal cladding. The majority of the site was
                                                          rail interchange and provides numerous services
constructed in the 1960s-1970s with more modern

                                                                                                                                                                                                      E
                                                          across the country via Great Northern and Virgin East

                                                                                                                                                                                                   ROV
structures being added in the early 2000s.

                                                                                                                                                                                                 GD
                                                          Coast. Direct services include London (51 mins),
Building 1 provides a mixture of cold and ambient         Birmingham (1 hour 46 mins) and Newcastle (2                                                                                       LDIN
                                                                                                                                             3

                                                                                                                                                                                          SPA
                                                                                                                                         B117

temperature storage, with three main loading doors.       hours).
                                                                                                                                                                                                                                                                      09
The Flamingo Industrial Portfolio - High Yielding Sale and Leaseback Portfolio with annual RPI Indexation - Cushman & Wakefield
ACCOMMODATION & TENANCY
     The property has been measured in accordance with the RICS Code of Measuring Practice on a Gross Internal Area and Net Internal
     Area as follows:

              Demise                                               Area (sq m)                 Area (sq ft)

     1        Building 1 (GIA)                                       5,876                       63,252

     2        Building 2 (GIA)                                        4,174                      44,926

     3        Office (NIA)                                            242                         2,607

              Total                                                  10,292                      110,785

     The numbers in the table correspond with the plan below.

     SITE
     The property is situated on a site with an area of approximately 11.55 acres (4.67
     hectares). The overall site coverage ratio is approximately 22%.
     The area hatched blue on the plan is a temporary structure which is leased from a third
     party and therefore does not form part of the sale or measurements above.

     TENANCY
     Upon completion of the sale, the property will be let to Flamingo Flowers Ltd with a
     guarantee from Flamingo Horticulture Ltd for a term of 20 years subject to RPI linked
     reviews, annually compounded, collared at 1% pa and capped at 3% pa. The initial
     passing rent is £299,120 per annum reflecting £2.70 per sq ft. There will be a tenant
     only break option in year 10.
     There are no repairing covenants within the proposed lease.

     A Site Area of Approximately
     11.55 acres (4.67 hectares)
                                                                                                                                       10
10
Flower processing at Weston      High bay racking at Weston

 Offices at Low Fulney        Flower processing at Low Fulney

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                                                        11
PROPOSAL

     Offers are sought in the region of £13,000,000 (Thirteen Million
     Pounds), subject to contract and exclusive of VAT. A purchase at this price
     reflects a net initial yield of 9.00%, and a minimum and maximum
     reversionary yield of 9.44% and 10.43%, assuming purchaser’s costs of 7.70%.
     This reflects a low capital value of approximately £27 per sq ft.
     EPC Rating                                        VAT                                                                Planning
     Energy Performance Certificates are as follows:   The sale can not be treated as a Transfer of a Going Concern and   The subject properties benefit from Use Class B2.
     Sandy:                                            therefore we have assumed purchaser’s costs to be 7.70%.
                                                                                                                          Web Access
     • Offices & Distribution: C – 73                  Capital Allowances                                                 www.cushmanwakefieldinvestmentsales.co.uk/cw/flamingo
     • Workshop & Packaging: E – 122                   We understand that all capital allowances have been claimed
     Weston: C – 54                                    historically.

     Low Fulney: C – 73
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CONTACTS

Cushman & Wakefield LLP                                   Rory Turner                                               Ben Sleath
43/45 Portman Square                                      E: rory.turner@cushwake.com                               E: ben.sleath@cushwake.com
London W1A 3BG                                            T: +44 (0) 207 152 5205                                   T: +44 (0) 207 152 5366

                                                          Andy Dickens                                              Adam McMillan
                                                          E: andy.dickens@cushwake.com                              E: adam.mcmillan@cushwake.com
                                                          T: +44 (0) 207 152 5030                                   T: +44 (0) 207 152 5332

August 2016
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 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 or warranty 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 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 & Photography by PlusArt Limited 0115 972 4000                                                                                                                                                                             13
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