Cutbush Park Industrial Estate, Lower Earley, Reading RG6 4UT. South East Multi-let Industrial Investment Opportunity

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1 South East Multi-let Industrial Investment Opportunity

2 INVESTMENT SUMMARY Reading is located in Berkshire, some 37 miles west of Central London. Cutbush Park Industrial Estate is a strategically located 1990 s multi-let industrial estate situated close to J11 of the M4 motorway. 8 unit estate (Unit 4 fitted out as an office) providing approximately 27,237 sq ft GIA. Freehold. Let to 6 occupational tenants providing an AWULT of 4.25 years (3.55 years to break). 210,140 per annum excluding rental guarantee ( 262,946 per annum including top up). Approximately 1.53 acres, reflecting a site coverage of 41%. We are instructed to seek offers in excess of 3,300,000 (Three Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level reflects an attractive net initial yield of 7.48% and a capital value of 121 per sq ft, assuming purchaser s costs of 6.48%. CUTBUSH PARK INDUSTRIAL ESTATE B3270 Outlines for indicative purposes only.

3 A329(M) High Wycombe M4 M40 Henley-on-Thames Maidenhead A404(M) READING Wokingham Bracknall Ascot Slough Windsor Watford Rickmansworth M25 J16 J12 M3 Ruislip Uxbridge M1 Harrow Wembley Brent Cross Enfield LONDO J15 M4 Fulham Hounslow Heathrow Richmond Clapham Staines Ashford Kingston Upon Thames Croydon Bro Rainw o Bradmore Way Rushey Way Colmworth Close Odell Close Pavenham Close Danehill y Outbush Cl Cutbush Lane Cutbush Lane Danehill Selsey Way Cutbush Cl Red house Cl Red House Cl Turnbridge Close Cu Pasture Close Wim BASINGSTOKE M3 Fleet Aldershot Woking M25 GUILDFORD J10 J9 Dorking Epsom M25 Sutton J8 Reigate Redhill J7 J6 Bigg Oxted rt h C l o se B3270 B3270 Lower Earley Way B3270 Lower Earley Wa Godalming M23 LOCATION Reading is the principal town of Berkshire and comprises an urban population of some 318,000 people. It is approximately 37 miles west of London, 24 miles south east of Oxford and 23 miles west of Heathrow Airport. Reading is an important regional hub and is considered the capital of the Thames Valley, benefiting from a thriving local economy based on its connections to London Heathrow, Central London and the south east. The town has excellent strategic connections to the national and regional transport network with easy access to the M4 and direct rail access to London Paddington (approximate journey time of 25 minutes). SITUATION Cutbush Park Industrial Estate is situated in Lower Earley, a suburb of Reading forming part of the Wokingham Borough, approximately 6 miles south east of Reading town centre. Access to the estate is via Cutbush Lane and Lower Early Way (B3270), which links with J11 of the M4 to the west and Winnersh Triangle to the east. The immediate surrounding area is predominately residential to the north however a cluster of office buildings adjoin the site immediately to the west and Rushey Way to the north provides out of town retail including an ASDA supermarket and McDonalds.

4 DESCRIPTION SITE SERVICE CHARGE The property comprises a well configured 1990 s estate split into two detached buildings totalling approximately 27,237 sq ft GIA. The estate provides 8 light industrial units centred around two shared car parking and loading areas. The industrial units are of steel portal frame construction with cavity brick and cladding elevations. The units are clad with profiled pvc coated steel. Each unit benefits from an office element with eaves heights of approximately 5.70m (18.70 ft), WC facilities and a roller shutter door with a 5.7m (18.70 ft) clear height. Unit 4 has been fitted out as a single storey office by the tenant. The site is 0.62 ha (1.533 acres) reflecting a site coverage of 41%. TENURE Freehold. PLANNING The permitted use for the estate provides a mixture of B1, B2 and B8 uses under the Town and Country Planning (Use Classes) Act VAT VAT elected. The service charge for the year ending 31st December 2015 was 33,675 ( 1.23 per sq ft). The budget for the year ending 31st December 2016 is 34,350 ( 1.26 per sq ft). EPC Unit 1 D (92), Unit 2 D (84), Unit 3 D (99), Unit 4 E (107), Unit 5 D (94), Unit 6 D (87), Unit 7 E (107), Unit 8 D (98). Outlines for indicative purposes only.

5 TENANCY SCHEDULE The property is let to 6 occupational tenants providing an AWULT of 4.25 years (3.55 years to break). Further covenant information available upon request. The total rent passing is 210,140 per annum exclusive of rental guarantees. The vendor will provide a top up for Unit 5 of 52,806 per annum for 12 months which adjusts the annual income to 262,946 for the purposes of this transaction. The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Areas (GIA). Description Tenant Name GIA (sq ft) Lease Start Expiry Date Next Review Break Option Passing Rent ( pa) Passing Rent ( psf) Comment Unit 1 Lorne Laboratories Limited 3,038 05/07/13 04/07/23 05/07/18 25, Unit 2 Lorne Laboratories Limited 3,017 05/07/13 04/07/23 05/07/18 25, Unit 3 Lower Earley MOT s Limited 3,020 07/08/15 06/08/20 06/08/18 06/08/18 25, Lease subject to a Schedule of Condition. Service charge cap of 6,092. Lease subject to a Schedule of Condition. Service charge cap of 6,074. Mutual break option. Lease outside of the 1954 Act. Rent deposit 50% of rents reserved. Unit 4 Orion Electrotech Limited 3,022 29/09/15 02/07/20 57, Unit has been fitted out for B1 office use. Unit 5 Vacant 6,035 52, Vendor will provide 12 month rent, rates and service charge guarantee. Unit 6 Corniche Capital Limited 3,023 21/08/15 20/08/25 21/08/20 21/08/20 26, Mutual Break. Lease subject to a Schedule of Condition. Lease outside of the 1954 Act. Rent deposit 60% of rents reserved. Unit 7 S Suarez & Vera, Stephen & Helen Belcher 3,057 08/10/09 07/10/19 26, Lease subject to a Schedule of Condition. Unit 8 Able Instruments & Controls Limited 3,025 09/01/15 08/01/20 24, TOTAL 27, ,

6 PROPOSAL We are instructed to seek offers in excess of 3,300,000 (Three Million Three Hundred Thousand Pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level reflects an attractive net initial yield of 7.48% and a capital value of 121 per sq ft, assuming purchaser s costs of 6.48%. If you require any further information or wish to arrange an inspection please contact: Nick Roberts nick.roberts@gva.co.uk Alex Grindrod alex.grindrod@gva.co.uk Bilfinger GVA, 65 Gresham Street, London, EC2V 7NQ September Misrepresentation Act Unfair Contract Terms Act 1977 The Property Misdescriptions Act These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. Design Command D.