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LINDUM JV PROPERTY

Food Projects. LINDUM JV PROPERTY. FOOD PROPERTY MARKET OVERVIEW. Food Projects. Food Industry Fact Box. It is the country’s largest manufacturing sector It generates a turnover of £74 billion It has a gross value added of £22.7 billion

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LINDUM JV PROPERTY

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  1. Food Projects LINDUM JV PROPERTY FOOD PROPERTY MARKET OVERVIEW

  2. Food Projects Food Industry Fact Box • It is the country’s largest manufacturing sector • It generates a turnover of £74 billion • It has a gross value added of £22.7 billion • It accounts for 14% of the UK’s total manufacturing gross value added • It exports £13.2 billion of products • It directly employs around 410,000 people • It comprises 6,745 enterprises

  3. Food Projects English Farming and Food Partnerships (EFFP) 70 senior agri-food executives surveyed in May 2010 • 90% increasingly confident • 70% ready to invest significant sums • 21% would be pumping in more than £5million • 50% would be pumping in between £500k and £5 million • 83% confident they can raise cash or already have cash reserves

  4. Food Projects Industrial Property Sector Overall Picture: • Little speculative development • Large regional variations – London and South East -v- rest of UK • Good value second hand stock – but still relatively scarce • ‘Odd’ bargain to be had • Investment market yields much higher, (better returns required) • Reversionary value of property a greater consideration • Longer lease periods being requested

  5. Food Projects Supply Factors • Low interest rates • Banks less keen to lend; higher equity required • Land still in relatively few hands • Planning uncertainty/delays • Empty Business Rates 6. Landowners keen to receive income rather than capital receipts • Banks do not wish to realise further losses

  6. Food Projects Tenure Options 1. Freehold • Leasehold 3. Lease with option to buy 4. Sale and Leaseback 5. Joint Ventures eg spv holds asset, reduced rent, more flexible terms

  7. Food Projects Food Sector – Specific Considerations • Location • Alternative uses – reversionary value • Covenant Strength – investors/banks view on sector 4. High level of fit out • Opportunities to rationalise portfolio, consider valuable sites 6. Asset -v- means of production

  8. Food Projects Wardentree Court, Plot 6

  9. Food Projects Property Procurement Opportunities • Joint Ventures 2. Funding Streams • Strategic Property Reviews • Bullet/Deferred payments

  10. Food Projects TAX ALLOWANCES/CONSIDERATIONS • IBA’s nearly phased out (2012) • Capital Allowances - investment allowance £100k Integral -v- Non-integral 10%→8% 20%→18% 5 categories Electrical Roller shutter doors, motors/elec Aircon/space heating Ironmongery (mechanical parts) Lift Door entry systems Cold water External solar shading • Enhanced Capital Allowances -100% Rain water harvesting Qualifying heating systems

  11. Food Projects ANY QUESTIONS?

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