ALLIANCE INVESTMENTS
Commercial Property
Investment Strategy
,Table of Contents
Executive summary......................................................................................................................2
Valuation......................................................................................................................................3
Investment...................................................................................................................................3
Valuation report..........................................................................................................................3
Introduction.................................................................................................................................3
Purpose of Valuation......................................................................................................................................4
Basis of Value..................................................................................................................................................4
Extent of investigation and information sources..........................................................................4
Information sources table...............................................................................................................................4
Property description.....................................................................................................................4
Tenant and Lease information......................................................................................................5
Best Comparables.........................................................................................................................0
Comparable analysis findings.......................................................................................................2
Map and Key showing 5 best comparables...................................................................................3
Yield Comparables table...............................................................................................................0
Top 5 comparables – (Yield analysis)............................................................................................0
comparison – map distribution.....................................................................................................2
Comparable Yield averages..........................................................................................................3
Calculation of Value......................................................................................................................4
Material uncertainty.....................................................................................................................4
Investment report........................................................................................................................5
Introduction.................................................................................................................................5
Economic analysis.........................................................................................................................5
International economic Overview................................................................................................5
Domestic economic Overview......................................................................................................6
East Midlands -Overview.............................................................................................................7
Economic outlook.........................................................................................................................8
Logistics market analysis....................................................................................................8
National........................................................................................................................................8
Regional – East Midlands..............................................................................................................9
East-Midlands Golden triangle....................................................................................................10
Sectoral analysis.........................................................................................................................10
Emerging technology in industrial warehousing...............................................................11
Autonomous Mobile Robots (AMRs)............................................................................................................11
ERP solutions.................................................................................................................................................11
Energy saving methods – (sustainability)....................................................................................11
1
,Scenario analysis..............................................................................................................12
Most likely scenario....................................................................................................................12
Best case scenario......................................................................................................................12
Worst case scenario....................................................................................................................12
Calculation of Worth..................................................................................................................13
Best Case Scenario......................................................................................................................13
Worst Case Scenario...................................................................................................................14
Explicit Valuation..........................................................................................................................................14
Conclusions and recommendations............................................................................................14
Competition sources...................................................................................................................18
(WORD COUNT – 3996 excluding titles, executive summary, contents page, tables, sub
headings, graphs, appendix, bibliography)
Executive summary
This report presents two separate reports both valuation 07/03/2022 conducted by Alliance
Investment LTD presenting a series of comparable evidence, market research, valuations and
recommendations for the subject investment property (Tesco Grocery Kilsby Rail Freight of
Daventry International Rail Freight Terminal (DIRFT), Stephenson Way, Crick, CV23 8YH).
Throughout the reports Alliance Investments will clearly outline the following.
2
, Valuation
Introducing the subject investment property highlighting key amenities and features
associated with the site.
Outlined Assumptions/ Special assumptions
Assessing the properties value and income with the purpose of a 10 Year holding
period
Collating comparable evidence and data to analyse and best determine the Rent and
Yield averages.
Taking the top 5 Lease and Yield comparables and identifying key amenities and
features which determine why they are a good example to compare.
Rent determination averages came to £6.00 per SQFT,
Average rent of 3,776,111.72pa
Average floorspace of 505,520 SQFT
Average lease term of 10.6 years
Yield averages came to 4.96%
Average Capital value at £107.63
Average sale price £71,911,970
Applying the averages to the subject investment site to best determine an
approximate value
Providing a calculation of value at ££119,302,491
Investment
Conducting a series of Economic and industrial market analysis
Analysis has been conducted for (International, National and Domestic markets)
providing an in-depth market and economic overview
A series of scenarios determining probable outcomes with additional advice and
recommendations for the client.
Explicit valuation showing a market value of worth at £146,519,938
Presenting our findings in a Valuation and calculation of worth showing the Net
present value and Internal rate of return.
Worst case: -£6,536,114 and 4%
Best case:£11,093,785.61 and 8.12%
Most Likely: £0 and 7%
Explicit valuation: £144,451,878
Finally presenting conclusions and recommendations
Valuation report
Introduction
This report has been prepared by Alliance Investments Limited on behalf of a potential
anonymous international buyer dated (07/03/2022).
3
Commercial Property
Investment Strategy
,Table of Contents
Executive summary......................................................................................................................2
Valuation......................................................................................................................................3
Investment...................................................................................................................................3
Valuation report..........................................................................................................................3
Introduction.................................................................................................................................3
Purpose of Valuation......................................................................................................................................4
Basis of Value..................................................................................................................................................4
Extent of investigation and information sources..........................................................................4
Information sources table...............................................................................................................................4
Property description.....................................................................................................................4
Tenant and Lease information......................................................................................................5
Best Comparables.........................................................................................................................0
Comparable analysis findings.......................................................................................................2
Map and Key showing 5 best comparables...................................................................................3
Yield Comparables table...............................................................................................................0
Top 5 comparables – (Yield analysis)............................................................................................0
comparison – map distribution.....................................................................................................2
Comparable Yield averages..........................................................................................................3
Calculation of Value......................................................................................................................4
Material uncertainty.....................................................................................................................4
Investment report........................................................................................................................5
Introduction.................................................................................................................................5
Economic analysis.........................................................................................................................5
International economic Overview................................................................................................5
Domestic economic Overview......................................................................................................6
East Midlands -Overview.............................................................................................................7
Economic outlook.........................................................................................................................8
Logistics market analysis....................................................................................................8
National........................................................................................................................................8
Regional – East Midlands..............................................................................................................9
East-Midlands Golden triangle....................................................................................................10
Sectoral analysis.........................................................................................................................10
Emerging technology in industrial warehousing...............................................................11
Autonomous Mobile Robots (AMRs)............................................................................................................11
ERP solutions.................................................................................................................................................11
Energy saving methods – (sustainability)....................................................................................11
1
,Scenario analysis..............................................................................................................12
Most likely scenario....................................................................................................................12
Best case scenario......................................................................................................................12
Worst case scenario....................................................................................................................12
Calculation of Worth..................................................................................................................13
Best Case Scenario......................................................................................................................13
Worst Case Scenario...................................................................................................................14
Explicit Valuation..........................................................................................................................................14
Conclusions and recommendations............................................................................................14
Competition sources...................................................................................................................18
(WORD COUNT – 3996 excluding titles, executive summary, contents page, tables, sub
headings, graphs, appendix, bibliography)
Executive summary
This report presents two separate reports both valuation 07/03/2022 conducted by Alliance
Investment LTD presenting a series of comparable evidence, market research, valuations and
recommendations for the subject investment property (Tesco Grocery Kilsby Rail Freight of
Daventry International Rail Freight Terminal (DIRFT), Stephenson Way, Crick, CV23 8YH).
Throughout the reports Alliance Investments will clearly outline the following.
2
, Valuation
Introducing the subject investment property highlighting key amenities and features
associated with the site.
Outlined Assumptions/ Special assumptions
Assessing the properties value and income with the purpose of a 10 Year holding
period
Collating comparable evidence and data to analyse and best determine the Rent and
Yield averages.
Taking the top 5 Lease and Yield comparables and identifying key amenities and
features which determine why they are a good example to compare.
Rent determination averages came to £6.00 per SQFT,
Average rent of 3,776,111.72pa
Average floorspace of 505,520 SQFT
Average lease term of 10.6 years
Yield averages came to 4.96%
Average Capital value at £107.63
Average sale price £71,911,970
Applying the averages to the subject investment site to best determine an
approximate value
Providing a calculation of value at ££119,302,491
Investment
Conducting a series of Economic and industrial market analysis
Analysis has been conducted for (International, National and Domestic markets)
providing an in-depth market and economic overview
A series of scenarios determining probable outcomes with additional advice and
recommendations for the client.
Explicit valuation showing a market value of worth at £146,519,938
Presenting our findings in a Valuation and calculation of worth showing the Net
present value and Internal rate of return.
Worst case: -£6,536,114 and 4%
Best case:£11,093,785.61 and 8.12%
Most Likely: £0 and 7%
Explicit valuation: £144,451,878
Finally presenting conclusions and recommendations
Valuation report
Introduction
This report has been prepared by Alliance Investments Limited on behalf of a potential
anonymous international buyer dated (07/03/2022).
3
