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12PP TDG MOTHERWELL

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					Prime Distribution Warehouse
                    Investment Opportunity




   TDG Ltd, Condor Glen, Eurocentral, Scotland
                                                                        Key
                                                                        1   TDG                      9    Morrisons
                                                                        2   Scottish Power           10   Next
                                                                        3   Warburtons               11   Scottish & Southern Energy
                                                                        4   Lathams                  12   LAGTA
                                                                        5   British Bakeries         13   News International
                                                                        6   Wincanton                14   DSV
                                                                        7   SIG                      A    Maxim Office Development
                                                                        8   DHL                      B    Dakota Hotel

           10                                                  5
                                                                                         4
                     11                                 6
                                                    8                                        3
                                                                       7                         2

                                                                                                                                        1

                           A

M8

                                                                                                               9                        14
                                            B

EDINBURGH 35 MILES



                          Eurocentral Interchange
                                                                                                                                   12



                                                            GLASGOW 15 MILES
                                                                                                                                   13




                                                                                                           Aerial View of Eurocentral
                                                           TDG Ltd, Condor Glen, Eurocentral, Scotland
Investment Summary

í Eurocentral is Scotland’s premier distribution location,
  fronting on to the M8 motorway in the heart of the
  Central Belt.

í Located just 24 km (15 miles) east of Glasgow and
  56 km (35 miles) west of Edinburgh.

í Modern, purpose built distribution warehouse and
  storage facility, extending to 30,600 sq m
  (330,000 sq ft).

í The lease will be for a term of 18 years on Full
  Repairing and Insuring terms to TDG (UK) Ltd with a
  surety from TDG Ltd.

í Commencing rent of £1,467,475 per annum, to be
  reviewed to a minimum of 2.50% per annum
  compound increases every 5 years.

í Offers are invited in excess of £16,800,000 (Sixteen
  Million, Eight Hundred Thousand Pounds)
  exclusive of VAT for our client’s heritable interest which
  reflects an attractive initial yield of 8.26% and a
  minimum equivalent yield of 9.77% after allowing for
  purchaser’s costs of 5.75%, subject to contract.

í A purchase at this level reflects a low capital value of
  £51 per sq ft.
Location
Eurocentral is Scotland’s premier distribution location, situated approximately
24 km (15 miles) east of Glasgow and 56 km (35 miles) west of Edinburgh.
The nearest towns are Coatbridge to the north-east, Airdrie to the north and
Motherwell to the south-east.

Eurocentral benefits from excellent transport links. Located on the
A8/M8 Glasgow to Edinburgh main arterial route, the site has its own
dedicated four-way separated grade junction providing direct access to and
from the motorway. The M73/M74 interchange is situated 5 km (3 miles) to
the west via the A8/M8.


  Town                    Distance               Drive Time
  Glasgow                 15 miles               14 minutes
  Edinburgh               35 miles               31 minutes
  Aberdeen                146 miles              3 hours
  Inverness               176 miles              3 hours 45 minutes
  Carlisle                89 miles               1 hour 40 minutes
  Manchester              209 miles              3 hours 45 minutes
  Birmingham              288 miles              5 hours
  London                  403 miles              7 hours

Eurocentral is served by the Greater Glasgow Rail Network linking Glasgow
with Lanarkshire providing regular services to stations close to Eurocentral
(Holytown, Coatbridge and Bellshill). The closest rail station is Coatbridge,
approximately 10 minutes’ drive.

Edinburgh and Glasgow Airports are approximately 30 minutes’ drive from
Eurocentral. Scotland’s principal air freight terminal, Prestwick, is situated
approximately 72 km (45 miles) south-west and provides passenger and air
freight transportation worldwide.

Eurocentral is the location of Scotland’s first Channel Tunnel railfreight terminal.
The Euroterminal provides a domestic and European intermodal rail freight
service, operated by DB Schenker Rail (UK) Ltd.

444,600 people reside within 15 minutes’ drive time of Eurocentral and over
1.5 million people reside within 45 minutes’ drive time.
                                                                      TDG Ltd, Condor Glen, Eurocentral, Scotland
                                                                                                                                Situation
                                                                                                                                Eurocentral extends over an area of 263
                                                                                                                                hectares (650 acres) and has attracted
                                                                                                                                numerous established commercial occupiers
                                                                                                                                to its office and industrial accommodation,
                                                                                                                                including News International, YELL, Scottish
                                                                                                                                Power, NCR, Laing O’Rourke, Cisco, TDG,
                                                                                                                                Next, DHL Freight, Headlam, Morrisons,
                                                                                                                                Auto Trax, Wincanton, Warburtons, TRAC
                                                                                                                                International, City Link, British Bakeries and
                                                                                                                                Sheffield Insulation Group. Several other
                                                                                                                                design and builds are ongoing demonstrating
                                                                                                                                the high demand for units in this location.

                                                                                                                                The ongoing speculative development of
                                                                                                                                Maxim Park also lies on the frontage land of
                                                                                                                                Eurocentral adjacent to the M8 motorway.
                                                                                                                                Maxim Park comprises 10 ‘Very Good’
                                                                                                                                BREEAM rated, contemporary office buildings
                                                                                                                                totalling over 70,235 sq m (756,000 sq ft) of
                                                                                                                                space, overlooking attractive parkland and
                                                                                                                                water features. The development is being built
                                                                                                                                in a single phase, with completion due in Q4
                                                                                                                                2009.

                                                                                               Plot   A1 (1.88       acres)     As part of the Maxim development, a variety of
                                                                                               Plot   A2 (3.36       acres)     new on-site amenities are to be provided
                                                                                                                                including the completed Dakota Hotel, an on-
                                                                                               Plot   A3 (2.02       acres)
                                                                                                                                site nursery and 1,858 sq m (20,000 sq ft) of
                                                                                               Plot   B1 (0.89       acres)
                                                                                                                                retail and leisure provision. All staff based at
                                                                                               Plot   B2 (3.51       acres)
                                                                                                                                Eurocentral will benefit from these new facilities.
                                                                                               All plot sizes are approximate

                                                                                                                                The property has the benefit of a railhead
í Key                                                                                                                           connection and is situated on the southern
Office                           Production Distribution                                                                        boundary of Eurocentral. Other occupiers
         Maxim Office Park              Centralpoint            Future Phases/Plots C1, C3   Former Enterprise Zone             include Next, Wincanton, DHL, Morrisons and
                                                                                                                                News International.
         Europoint Office Park          Available Plots/Units   Occupied                     Hotel & Leisure
Description
The property comprises a purpose built high quality distribution centre of
approximately 30,600 sq m (330,000 sq ft) within a self-contained site
bounded by steel palisade perimeter fencing. The property offers modern
warehouse accommodation and a mix of single and two-storey office
accommodation together with security gatehouse. The property was originally
constructed in 1995 with a further extension to the warehouse and offices
added in 2000 and 2004 respectively.

The building is of a steel portal frame construction with steel profile cladding
to elevations and roof and benefits from the following features:

– 47 dock level loading doors

– 6 ground level loading doors

– Clear height to underside of haunch 9.40 metres, maximum height under
  the portal frame 13.64 metres

– Modern office/staff accommodation and canteen facility

– Sprinkler system

– Floor loading capacity of 37.5 kN/sq m and point loading of 6 tonnes

– Secure site with 24 hour security and CCTV cameras

– Car parking for 258 cars

– Extensive yard area with 122 trailer parking spaces, gatehouse and
  fuelling area

– Canopy along north and south elevations

– Dedicated rail connection to Eurofreight Terminal
TDG Ltd, Condor Glen, Eurocentral, Scotland
   Accommodation
    The property has been measured on a Gross Internal Area basis in accordance with the RICS Code
    of Measuring Practice (6th Edition) and provides the following areas:
     Demise                 Use                          Sq M            Sq Ft
     Ground Floor           Warehouse                   27,834        299,598
     Ground & First Floor   Offices/Staff/Amenities      2,142         23,063
     Canopy                 Warehouse Canopy               640          6,889
                            Totals                      30,616        329,550

    The site extends to 7.6 hectares (18.75 acres) giving the property a site coverage of 40%.

    Tenure
    Absolute Ownership (Freehold).


    Tenancy
    The property will be let to TDG (UK) Ltd, with a surety from TDG Ltd, on a new 18 year Full Repairing
    and Insuring lease subject to 5 yearly upwards only rent reviews.
    The lease is to contain a personal provision allowing TDG to insure the building under their Group
    Insurance policy if they desire. Upon an assignment the insurance provision will revert back to the
    Landlord.

    The commencing rent will be £1,467,475 per annum which reflects £4.50 per sq ft on the
    warehouse/offices and £2.25 per sq ft on the canopy area. The lease will be subject to minimum
    increases equivalent to 2.50% per annum compound or Open Market Value based on units no
    smaller than 50,000 sq ft of a similar age and specification, whichever is higher.

    On the basis of the minimum increases, the rent will increase as follows:
        Date                         Rent
        Commencing                   £1,467,475
        2014                         £1,660,313
        2019                         £1,878,492
        2024                         £2,125,341

    The lease shall incorporate a Photographic Schedule of Condition. Various TDG/Argos fixtures and
    fittings are to be excluded form the Landlord’s specification including racking & integral sprinkler
    system, office furniture, security and IT/communication systems.
Covenant Information
TDG is one of Europe’s major logistics companies with over 85 years of experience in freight
forwarding, supply chain management, third party contract logistics and chemical logistics.
The business serves a ‘blue chip’ client base including Kellogg’s, Coca Cola, Argos, Sainsbury’s,
Kimberly Clarke, Akzo Nobel and Tesco. The business operates from over 130 locations, in 9
countries, employing a workforce of over 7,000.

In October 2008, TDG plc (listed on the London Stock Exchange) was acquired by DouglasBay
Capital plc (formerly LIT plc, listed on AIM and backed by the alternative asset manager, Laxey Partners)
for approximately £206m.

The business has a strong and well capitalised balance sheet; through specialisation in certain key
areas and on value added services, the business has maintained high profitability and backed by
DouglasBay the company is expanding further geographically.

TDG Ltd (formerly TDG plc) reported for the year ended 31st December the following financial results:

                               Year Ended
                      2008            2007            2006
   Turnover           £733.1m         £669.5m         £531.3m
   EBITDA             £42.9m          £35.6m          £34.3m
   Pre-tax Profits*   £21.6m          £15.7m          £14.4m
   Net Worth          £151.1m         £171.0m         £156.2m
* This excludes exceptional items in 2008

TDG (UK) Ltd, the principal UK business, reported for the year ended 31st December the following
financial results:
                               Year Ended
                      2008            2007            2006
   Turnover           £510.4m         £478.3m         £407.5m
   Pre-tax Profits    £2.5m           (£1.8m)         £7.4m
   Net Worth          £148.6m         £41.5m          £47.8m


Copies of the full accounts, an explanatory note and presentation document are available on request
and further information is available on DouglasBay at www.douglasbaycap.com and on TDG at
www.tdg.eu.com
                                                                                TDG Ltd, Condor Glen, Eurocentral, Scotland
Occupier Market Commentary
The Scottish industrial market remains active and in the West of Scotland the low supply of available property has seen prime Scottish distribution rents reaching £5.50 per sq ft on medium
to large size units.
In terms of comparable lettings we are aware of the following:
             Date               Address                                           Tenant                            Area (Sq Ft)      Term (Years)    Rent (Per Sq Ft)
             July 2009          Artemis, Eurocentral                              Under Offer                       71,700            5               £5.25                (New lease)
             July 2009          Pegasus, Eurocentral                              Mentholatum (Under Offer)         64,635            15              £5.50                (New lease)
             Sep 2008           Apollo, Eurocentral                               Wincanton                         53,434            15              £5.50                (New lease)
             Aug 2008           Unit K1, Starlaw Business Park, Livingston        Hylatech                          36,200            10              £5.50                (New lease)
             July 2008          Vista Point, Hamilton International, Hamilton     Kuehne + Nagel                    50,000            10              £5.50                (New lease)
             July 2008          Athena, Eurocentral                               Trac International                41,267            15              £5.50                (New lease)
             March 2008         8 Langlands Business Park, East Kilbride          Sainsbury’s Supermarket Ltd       209,813           15              £5.25                (New lease)
             Jan 2008           Pharos, Brittain Way, Eurocentral                 James Latham plc                  40,200            17              £5.50                (New lease)
             May 2007           Somervell Street, Cambuslang                      Tradeteam Ltd                     135,540           20              £5.28                (Rent review)
             April 2007         Unit 1, J4M8, Bathgate                            Scottish Courage                  150,146           20              £5.42                (Rent review)
             Feb 2007           21 Coddingham Crescent, Eurocentral               Ossain Retail Group               164,782           17              £5.25                (New lease)




Investment Market Commentary
The UK distribution/logistics sector of the market has been one of the most active in 2009, attracting private investors, overseas investors, property companies and UK and overseas
institutional investors. Notable recent transactions include:

             Date               Property Name / Address                         Tenant                          Term Certain       Price             NIY      Capital Value (Per Sq Ft)
             July 2009          Normanton Industrial Estate                     Asda                                17             £16.900m*         8.00%            £50.44
             May 2009           Greenford                                       Kuehne + Nagel                      14             £15.385m          7.83%            £115.68
             May 2009           Polar Park, Heathrow                            Metropolitan Police Authority       19             £9.610m           7.83%            £160.03
             May 2009           Meir Park, Stoke                                Co-Op                               10             £10.500m          8.28%            £55.26
             April 2009         Amber Park, South Normanton                     Unidrug Distribution Group          16             £9.100m           8.25%            £49.40
             Mar 2009           Innova Park, Enfield                            Iceland Foods                       18             £24.500m          7.60%            £100.28
             Mar 2009           Sainsbury’s Distribution, East Kilbride         Sainsbury’s                         14             £12.950m          8.00%            £64.75
             Jan 2009           The Triangle, Coventry                          Sainsbury’s TU Clothing             15             £13.500m          8.30%            £48.56
             Jan 2009           Waltham Point, Waltham Cross                    Sainsbury’s                         15             £40.000m          8.20%            £77.97

* The above is the stated quoting price prior to the vendor requesting offers – we understand the vendor is considering offers substantially in excess of the quoting price.
VAT
We understand the property, at the time of sale, will be elected for
VAT purposes.


Proposal
We are instructed to seek offers for our client’s heritable interest in excess of
£16,800,000 (Sixteen Million, Eight Hundred Thousand Pounds)
exclusive of VAT. A purchase at this level would provide a Net Initial Yield of
8.26% after acquisition costs of 5.75%.

Adopting the minimum uplift of 2.50% per annum compounded every 5 years,
provides the following running yield profile and a minimum equivalent yield of
9.77%.

 Rent Review Date             Minimum Yield
 Commencing                   8.26%

 2014                         9.35%

 2019                         10.57%

 2024                         11.96%
                                                                                                          TDG Ltd, Condor Glen, Eurocentral, Scotland




Further Information
Further information and arrangements for viewing can be obtained from the                                                                                 A copy of this marketing brochure and other information is available via the
sole agents:                                                                                                                                              following web link:
                                                                                                                                                          www.gvagrimley.co.uk/capitalmarkets/eurocentral.xml
GVA Grimley, 206 St Vincent Street, Glasgow G2 5SG
                                                                                                                                                          An Energy Performance Certificate (EPC) is available to purchasers.
Campbell Docherty                                                              Martyn Brown
Tel: 0141 305 6314                                                             Tel: 0141 305 6338
Email: campbell.docherty@gvagrimley.co.uk                                      Email: martyn.brown@gvagrimley.co.uk


GVA Grimley, 10 Stratton Street, London W1J 8JR


Neil Dovey                                                                     Daniel Dix
Tel: 020 7911 2168                                                             Tel: 020 7911 2146
Email: neil.dovey@gvagrimley.co.uk                                             Email: daniel.dix@gvagrimley.co.uk



Misrepresentation Clause

Messrs GVA Grimley Limited for themselves and for the vendors or lessors of this property whose agents they are give notice that:
(i) The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract.
(ii) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers
     or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them.
(iii) No person in the employment of Messrs GVA Grimley Limited has any authority to make or give any representation or warranty whatever in relation to this property.
(iv) All rentals and prices are quoted exclusive of VAT.
All plans and maps provided with the particulars are for identification purposes only. Location and Street Plans have been reproduced by courtesy of the Controller of HMSO.
Crown Copyright Reserved. Licence No. 774359.                                                                                                                                                         July 2009
TDG Ltd, Condor Glen, EuroCentral, Scotland

				
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