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The Flamingo Industrial Portfolio

High Yielding Sale and Leaseback Portfolio with annual RPI Indexation

INVESTMENT SUMMARY

PRICING SUMMARY

All three assets are located in theEast of England, a key area for

horticultural output

Flamingo Horticulture Ltd, the newly consolidated company, will provide a guarantee on

all leases

Flamingo Flowers Ltd, part ofFlamingo Horticulture, is

a multi-national market leader withinthe flower and vegetable industry

Offers in the region of £13,000,000 reflecting a net initial yield of 9.00%

after allowing for purchaser’s cost of 7.70%

Exceptionally low site cover of 28% providing future development potential

At a purchase price of £13,000,000,this investment would provide

reversionary yields of:2021: Min 9.46% Max: 10.43%2026: Min 9.94% Max: 12.09%2031: Min 10.45% Max: 14.02%

Initial rent of £1,259,859 pa reflecting£2.58 per sq ft across the three

properties

On completion the properties will be let to Flamingo Flowers Ltd, for a

term of 20 years subject to a tenant only break option in year 10

Freehold Capital Value of approximately £26.60 sq ft

A superb opportunity to acquirethree substantial flower processingfacilities totalling 488,585 sq ft

(45,391 sq m)

Subject to 5 yearly RPI linked rent reviews compounded annually,

collared at 1% pa and capped at 3% pa

02

Property TenantTerm (years)

Break(years)

Size(sq ft)

Rent(psf)

Rent (pa)

Site Area(acres)

Great North Road, Sandy,SG19 2AG Flamingo

Flowers Ltd(Guaranteed by

FlamingoHorticulture Ltd)

20 10 123,409 £3.25 £401,079 12.55

Stone Gate, Weston,Spalding, PE12 6HR

20 10 254,391 £2.20 £559,660 15.40

Rangell Gate, Low Fulney,Spalding, PE12 6EW

20 10 110,785 £2.70 £299,120 11.55

Total 488,585 £2.58 £1,259,859 39.50

A1M

19

19

164A

31

21A

19

A170A170

M6

M6 M1

M1M5 M40

M4

M5

M3 M20

A1A1

A11A11

A55A55

A458A458

A30A30

A38A38

A74M

M74

M8

M90M9

A76A76

A1A1

A68A68

A702A702

A90A90A9A9

A96A96

A17A17

A52A52

A5A5

LONDONLONDON

DOVERDOVER

LIVERPOOLLIVERPOOL

BIRMINGHAMBIRMINGHAM

NOTTINGHAMNOTTINGHAM

SHEFFIELDSHEFFIELD

LEEDSLEEDS

NEWCASTLENEWCASTLECARLISLECARLISLE

FELIXSTOWEFELIXSTOWE

PORTSMOUTHPORTSMOUTHSOUTHAMPTONSOUTHAMPTON

AYRAYR

EDINBURGHEDINBURGH

ABERDEENABERDEEN

INVERNESSINVERNESS

PETERBOROUGHPETERBOROUGH

LINCOLNLINCOLN

PORTFOLIO SUMMARY

Great North Road,Sandy

Weston,Spalding

Low Fulney,Spalding

Great North Road, Sandy

Weston, Spalding

Low Fulney, Spalding

03

Since its inception, the Flamingo buisness has steadily expanded and today isa multinational market leader in the cut flower and premium vegetableindustry. Today, Flamingo Flowers is one of the largest global suppliers offresh cut flowers, sourcing and processing a total of c.780m stems per annumprimarily for the UK and continental European markets. It has been steadilyincreasing its market share with large UK supermarkets such as Tesco andMarks & Spencer (with whom it has had a relationship for over 20 years).

The business has witnessed strong sales growth, having grown its sales from£280m in 2013 to £324m in 2015 through increasing its market share with keycustomers and gaining new clients (including Waitrose). In addition,profitability has increased with EBITDA rising from £10.2m to £15.5m drivenby higher revenue on a reduced cost base.

The company was acquired in 2015 by an affiliate of Sun European PartnersLLP (“Sun Capital”), a leading private equity firm with over $9bn of capitalunder management. Sun Capital has changed the company’s name toFlamingo Horticulture post acquisition and completed the separation withJames Finlay Limited, a division of the Swire Group (the previous owners).Sun Capital sees substantial upside in growing Flamingo Horticulture’s steadyand defensible revenue stream through offering new higher margin productsto its current customers, improving agronomical practices on its farms,reducing costs and through making investments in its UK operations toimprove efficiency and profitability.

Business Operations at the PropertiesThe three subject properties comprise Flamingo’s main flowerprocessing sites, and are therefore critical to the operational success ofthe business. Flowers are brought to the properties from differentlocations around the world, predominantly from their global farmingoperations. The sites service their core flower contracts with Tesco andMarks & Spencer, in addition to some ancillary contracts such as hamperarrangement and distribution.Operations on-site include cutting, preparation, branding, packing andoutbound distribution to clients.

GuarantorFlamingo Horticulture Limited (company no: 09709586) will act as guarantorto all three leases. This entity was newly created for the purchase and nowacts as Group company, consolidating all of the Flamingo entities below it.Below we present the summary financials.

(1) FY15 net assets include Sun Capital acquisition debt

TenantThe tenant will be Flamingo Flowers Limited (company No: 02921420), whichis a subsidiary of Flamingo Horticulture Limited. Further information regardingthe tenant is available on request.

Further information on the business can be found at www.flamingo.net

Flamingo Flowers LtdCompany No.: 02921420

2015

Turnover £170.3m

Pre-tax Profit £4.5m

Current Assets £32.4m

EBITDA £8.3m

COVENANT INFORMATION

Flamingo Horticulture LtdCompany No.: 09709586

2013 2014 2015

Sales £280.2m £293.8m £323.5m

Growth N/A 4.9% 10.1%

Gross Profit £36.8m £38.2m £46.7m

Margin 13.1% 13.0% 14.4%

EBITDA £10.2m £11.6m £15.5m

Margin 3.6% 3.9% 4.8%

Net Assets (1) £62.0m £68.2m £31.0m

Company Overview

04

BARTFORDROAD

SANDYROAD

BEDFORD ROAD

TH

OR

NC

OTE R

D

BEDFORD ROAD

NORTHILL ROAD

B

COLESDENROAD

BA

RTFO

RD

RO

AD

CHURCH END

BRICKHIL

L DRIV

E

PUTNOE L

N

B660

B66

0

WENTWORTH DRIVE

MILE ROAD

LONDO

N R

OAD

A5134

CARDINGTON ROAD

BEDFORD ROAD

A4280

A421

A421

A

A421

A6

A1

A1

A428

HIG

H

SOU

THILL R

OA

D

HILL LANE

B6

58

BEDFORD

BEDFORD PARK

GREAT BARFORD

LITTLE BARFORD

SANDY

RAF TEMPSFORD

BEDFORD

GREAT BARFORD

LITTLE BARFORD

RAF TEMPSFORD

SANDY

FLAMINGOFLOWERS

LOCATION AND SITUATIONThe subject property is located in a prominent positionon the A1, with London approximately 52 miles to thesouth and Peterborough 31 miles to the north. The sitealso has access to the wider motorway network with theM25 (38 miles) to the south, the M1 (30 miles) to thewest via the A421 and the M11 (19 miles) to the east viathe A428.

In closer proximity, Sandy is situated 1.5 miles to thesouth with St. Neots approximately 6 miles to the northwhich has an established industrial market.

DESCRIPTIONThe site comprises one main building and severalsmaller buildings on a flat rectangular shaped site. Themain building consists of a 7 bay steel profiled cladproduction facility, which was constructed in phasesbetween the 1970s - 2000s, with varying eaves heightsdependent on the age of the building and theoperational requirement of the occupier. The majority ofthe building is used as a production facility, either withambient temperature or insulated with ‘white walling’providing a temperature controlled environment. Thereare modern offices and canteen facilities on the firstfloor. Specification as follows:

Warehouse:

• 16 dock level loading bays

• 4 level access loading bays

• Sodium and fluorescent strip lighting

Office:

• Perimeter trunking

• Floor to ceiling ‘buzz bars’

• Air conditioning

• Wall mounted radiators

• Suspended ceilings

• Fluorescent strip lighting

COMMUNICATIONSandy railway station is situated within a short drive ofthe property and provides regular services to London(48 minutes) as well as throughout the region. Thesubject property also boasts excellent connectivity to anumber of airports, including Luton which is 30 miles tothe south west and London Stansted 48 miles to thesouth east. London Heathrow, England’s largest andbusiest airport, is situated 60 miles to the south. Theproximity of these airports is important to the occupieras they rely on air freight services for the delivery ofstock from Africa in particular.

FLAMINGO FLOWERS LTDGREAT NORTH ROAD, SANDY SG19 2AG

SANDY RAIL STATION

05

06

The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on a Gross Internal Area basis as follows:

SITEThe property is situated on a site with an area of approximately 12.55 acres (5.08hectares). The overall site coverage ratio is approximately 23%.

The areas hatched blue on the plan are temporary structures which are leased from a thirdparty and therefore do not form part of the sale or measurements above.

TENANCYUpon completion of the sale, the property will be let to Flamingo Flowers Ltd with aguarantee from Flamingo Horticulture Ltd for a term of 20 years subject to 5 yearly RPIlinked 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 atenant only break option in year 10.

There are no repairing covenants within the proposed lease.

Low Site Coverage of 23%

ACCOMMODATION & TENANCY

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.

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

06

A16

A16

A151

B1180

KNIGHT ST

CH

UR

CH

ST

RE

ET

SURFL

EET

RO

PIN

CH

BE

CK

RO

AD

W Elloe Ave

ark

B1173

HALMER GATE

ER ROAD

SPA

LD

ING

DR

OV

E

RA

NG

ELL G

AT

E

B11

73

PINCHBECK

SPALDING

LOW FULNEY

WESTON

MOULTON

SPALDING

PINCHBECK

WESTON

MOULTON

LOW FULNEY

LOCATION AND SITUATIONSpalding is an historic market town and expandingcommercial centre on the banks of the River Wellandand the administrative centre for South Holland DistrictCouncil. The town and the surrounding area holdregional importance as an established location forspecialists’ bulb and flower growing, fruit and foodprocessing, with associated industries supporting localagriculture, storage and distribution.

The property is situated in a prominent location on theA151 bypass, approximately 4 miles to the north east ofSpalding town centre. The A16 is situated 2 miles to thewest of the site and is an arterial road in the East ofEngland, with Peterborough (20 miles) to the south andBoston (16 miles) to the north.

DESCRIPTIONThe subject property was built in various stages from1960s-1990s with the site comprising 3 main buildingsnumbered 1 to 3 on the map (overleaf). Dependent onage, the buildings are built using a combination of brickand steel frame construction, with varying eavesheights. There are a total of 14 loading doors.

Building 1 comprises a number of different bays andinternally they serve as various flower processingspaces, together with workshops, small offices andsecurity gate office. To the south-west elevation there isa single storey ‘tunnel’, which provides a weatherprooflink to the whole terrace, including the hamper sectionwhich comprises 2 bays and is located the other side of

the weatherproof tunnel. This area is used for coldstorage, packaging and distribution, which arecompartmentalised and ‘white walled’. In addition, thehamper section also provides offices at ground and firstfloor level and a staff canteen, which is a recent additionto the building. Specification includes: suspendedceiling, inset fluorescent strip lighting, wall mountedradiators, wall mounted a/c units and raised floors.

Building 2 located to the south-western edge of the site,was built in the 1990s and comprises a rectangularbuilding of steel frame construction with profiled steelcladding under a pitched roof. There is a 12.31m deepcanopy covering the 9 loading doors and internally thebuilding provides a mixture of cold and ambient stores.

In a prominent location on the western corner of the siteare offices (Building 3), which operated as their officeHQ. The building was constructed in the 1980s and is ofbrick block construction. The building is vacant at themoment and provides further long term assetmanagement potential.

COMMUNICATIONSpalding railway station is located in Spalding towncentre and provides services to commercial centressuch as Peterborough (22 mins), Lincoln (1 hour) andDoncaster (1 hour 30 mins). Peterborough is a major railinterchange and provides numerous services across thecountry via Great Northern and Virgin East Coastservices. Direct services include London (51 mins),Birmingham (1 hour 46 mins) and Newcastle (2 hours).

FLAMINGO FLOWERS LTDSTONEGATE, WESTON, SPALDING PE12 6HR

FLAMINGOFLOWERS

SPALDING RAIL STATION

07

08


The main warehouse and flower processing facility has been measured in accordance with the RICS Code of Measuring Practice 6thEdition on a Gross Internal Area basis as follows:


TENANCYUpon completion of the sale, the property will be let to Flamingo Flowers Ltd with aguarantee from Flamingo Horticulture Ltd for a term of 20 years subject to 5 yearly RPIlinked reviews, annually compounded, collared at 1% pa and capped at 3% pa. The initialpassing rent is £559,660 per annum reflecting £2.20 per sq ft. There will be a tenantonly break option in year 10.


A Site Area of Approximately15.40 acres (6.23 hectares)

We have not measured the office building and nor has it been rentalised.

The numbers in the table correspond with the plan below.


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

08

A16

A16

A151

B1180

KNIGHT ST

CH

UR

CH

ST

RE

ET

SURFL

EET

ROAD

PIN

CH

BE

CK

RO

AD

W Elloe Ave

ygate Park

B1173

HALMER GATE

INSOVER ROAD

SPA

LD

ING

DR

OV

E

RA

NG

ELL G

AT

E

B11

73

PINCHBECK

SPALDING

LOW FULNEY

WESTON

MOULTON

SPALDING

PINCHBECK

WESTON

MOULTON

LOW FULNEY

LOCATION AND SITUATIONSpalding is an historic market town and expandingcommercial centre on the banks of the River Wellandand the administrative centre for South HollandDistrict Council. The town and the surrounding areahold regional importance as an established locationfor specialists’ bulb and flower growing, fruit andfood processing, with associated industriessupporting local agriculture, storage and distribution.

The subject property is situated off Rangell Gate inclose proximity to the Al6, which provides directaccess to Boston (16 miles) to the north andPeterborough (20 miles) to the south. Low Fulney ispositioned approximately 2 miles south-east from thecentre of Spalding and comprises a number ofdifferent plant growing and conditioning facilities.Occupiers include: Butters Group, Opperman Plantsand West Nurseries Ltd.

DESCRIPTIONThe site comprises two flower processing facilitiesseparated by an access road. The buildings are of amixture of steel frame and brick construction, withprofiled metal cladding. The majority of the site wasconstructed in the 1960s-1970s with more modernstructures being added in the early 2000s.

Building 1 provides a mixture of cold and ambienttemperature storage, with three main loading doors.

Offices are provided at 1st floor level which benefitsfrom suspended ceilings, floor to ceiling buzz barsand recently installed LED lights. To the north ofBuilding 2 there is a single storey portacabin(Building 3), which is used as additional officeaccommodation. It benefits from double glazedwindows, ceiling mounted lights and a solid floor.

Building 2 provides further flower processingaccommodation, which is part arranged as ambienttemperature and part as cold storage. There are 4bays which are all of the same construction. There is afurther building to the west elevation, which servesfor distribution with five dock level loading doors.There are a number of ancillary buildings, which aregenerally small in scale around the site, as well as atemporary structure.

Staff car parking is provided to the north of the siteand provides approximately 147 spaces.

COMMUNICATIONSpalding railway station is located in Spalding towncentre and provides services to commercial centressuch as Peterborough (22 mins), Lincoln (1 hour) andDoncaster (1 hour 30 mins). Peterborough is a majorrail interchange and provides numerous servicesacross the country via Great Northern and Virgin EastCoast. Direct services include London (51 mins),Birmingham (1 hour 46 mins) and Newcastle (2hours).

FLAMINGOFLOWERS LTD, RANGELL GATE, LOW FULNEY, SPALDING PE12 6EW

FLAMINGOFLOWERS

SPALDING RAIL STATION

09

10

The property has been measured in accordance with the RICS Code of Measuring Practice on a Gross Internal Area and Net InternalArea as follows:


The area hatched blue on the plan is a temporary structure which is leased from a thirdparty and therefore does not form part of the sale or measurements above.

TENANCYUpon completion of the sale, the property will be let to Flamingo Flowers Ltd with aguarantee from Flamingo Horticulture Ltd for a term of 20 years subject to RPI linkedreviews, annually compounded, collared at 1% pa and capped at 3% pa. The initialpassing rent is £299,120 per annum reflecting £2.70 per sq ft. There will be a tenantonly break option in year 10.


A Site Area of Approximately11.55 acres (4.67 hectares)



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.

10

11

Flower processing at Weston

Offices at Low Fulney Flower processing at Low Fulney

High bay racking at Weston

11

EPC RatingEnergy Performance Certificates are as follows:

Sandy:

• Offices & Distribution: C – 73

• Workshop & Packaging: E – 122

Weston: C – 54

Low Fulney: C – 73

VATThe sale can not be treated as a Transfer of a Going Concern andtherefore we have assumed purchaser’s costs to be 7.70%.

Capital AllowancesWe understand that all capital allowances have been claimedhistorically.

PlanningThe subject properties benefit from Use Class B2.

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

PROPOSAL

Offers are sought in the region of £13,000,000 (Thirteen MillionPounds), subject to contract and exclusive of VAT. A purchase at this pricereflects a net initial yield of 9.00%, and a minimum and maximumreversionary 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.

12

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 ageneral 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) Thisproperty 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 anyservices 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 owninvestigations if required.

Production & Photography by PlusArt Limited 0115 972 4000

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

Rory TurnerE: [email protected]: +44 (0) 207 152 5205

Andy DickensE: [email protected]: +44 (0) 207 152 5030

Ben SleathE: [email protected]: +44 (0) 207 152 5366

Adam McMillanE: [email protected]: +44 (0) 207 152 5332

CONTACTS

13

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