INVESTMENT OPPORTUNITY Units 11 & 12 Pioneer Court FOR SALE. Morton Palms Business Park, Darlington DL1 4WD. For Sale - Out of Town Office Investment

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1 INVESTMENT OPPORTUNITY Units 11 & 12 Pioneer Court FOR SALE Morton Palms Business Park, Darlington DL1 4WD For Sale - Out of Town Office Investment 1

2 INVESTMENT SUMMARY Two storey office building extending to an area of 7,482 sq ft Located adjacent to the, with excellent connectivity to the wider Tees Valley region Well established office park home to several household names including Bellway Homes Let to Riverstone Management Limited, part of the global corporation Fairfax, and MediPro Ltd Riverstone Management have taken their third lease out on the same premises Total income of 82,012 per annum with an opportunity for rental growth on Unit 12 Pioneer Court has 100% occupancy Unit 11 and Unit 12 are available separately for 461,300 and 288,700 respectively Offers for the whole are sought in excess of 750,000 (Seven Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 10.37% after deducting costs of 5.40% A purchase at this level reflects a low capital value of only 100 per sq ft 2

3 A167 A167 LOCATION GLASGOW M6 ABERDEEN EDINBURGH CARLISLE A69 A1 MANCHESTER LIVERPOOL M6 NEWCASTLE M1 M1 M4 YORK SHEFFIELD BIRMINGHAM BRISTOL LEEDS Road Rail MIDDLESBROUGH M1 Darlington M40 M11 LONDON A68 A696 Newcastle International Airport A69 Prudhoe Consett A68 NEWCASTLE Crook Bishop Auckland A688 A694 A691 A1 A1 A692 A693 DURHAM A690 A68 DARLINGTON Gateshead Blyth Morton Palms Business Park A690 Tynemouth South Shields A181 A689 SUNDERLAND Seaham Peterlee Stockton-on-Tees Durham Tees Valley Airport A172 North East North Portfolio Hartlepool A174 MIDDLESBROUGH A171 To and Newcastle A68 Whessoe Rd DARLINGTON A167 To North and South A167 B6279 B6280 Darlington Haughton Rd Haughton Le Skerne Yarm Road Pioneer Court A1150 Great Burdon B6279 To Middlesbrough Little Burdon A67 Location Morton Palms Business Park is located 2.5 miles east of Darlington town centre, adjacent to the which connects it to Middlesbrough 14 miles to the east and the A1 (M) 4.5 miles to the west. Darlington station is one of the main stations on the East Coast mainline, with a journey time to London Kings Cross of 2 hours and 30 minutes and Newcastle Central Station of 30 minutes. Daily scheduled flights operate to various UK and European destinations from both Durham Tees Valley Airport and Newcastle International Airport. Situation Pioneer Court was the second phase of the development at Morton Palms Business Park, constructed in There are 12 units centred around an estate road and car park with occupiers on the park including Bellway, ADG Architects, Aedis, Samsung and Home Office. Pioneer Court is accessed via the main estate road, Alderman Best Way, connecting it instantly to the and Yarm Road. Due to its excellent infrastructure links the area acts as a commercial and leisure hub with nearby occupiers including a Morrisons superstore, B&Q and Premier Inn as well as commercial occupiers such as Cummins, Saisei and Whessoe Engineering. 3

4 7 8 Pioneer Court Pioneer House DESCRIPTION Units 11 & 12 Pioneer Court comprise a detached, two storey office building of steel portal frame construction with part block part curtain wall cladding. The units feature expansive double glazing that have been incorporated to the front and rear elevations and have been split into two semi-detached own front door units. Parking is provided to the front of each unit as well as elsewhere on the estate. Internally the ground floor of each unit provides an entrance area alongside office space, staff facilities with disabled WC incorporating a shower and understair cupboard. Access to the first floor of each unit is via a dog-leg staircase or the 8 person passenger lift which is shared between the two units. The first floor of both Units 11 and 12 provide further office accommodation as well as male and female WCs. The office accommodation in both units is high specification for space of this size, with carpeted raised access floors, wall mounted panel radiators, and suspended ceilings with recessed LG3 lighting. Extensive glazing means that the office space provides plenty of natural light. 4

5 TENURE Tenure Tenancy The property is held on a long leasehold for 150 years from 21 November The sale will be by way of the grant of a new underlease for the term less 10 days. Tenant Lease Start Lease Expiry Term Rent (per annum) Rent per sq ft Car Parking Riverstone Management Limited 24/03/ /03/ years 47, spaces MediPro Ltd 15/09/ /09/ years 35, spaces 7

6 ACCOMMODATION The property has been measured in accordance with IPMS3 and comprises the following areas: Description Sq M Sq Ft Unit ,741 Unit ,741 Total ,482 6

7 COVENANT STRENGTH INVESTMENT RATIONALE Riverstone Management Limited Company Number: Riverstone Management Limited is a subsidiary of the Riverstone Group, a global corporation that provides insurance and reinsurance services as well as assisting companies specializing in the management of legacy run-off portfolios. They are part of the Fairfax Financial a global corporation with a turnover of over $9.2 billion. Riverstone acquired Brit Insurance in 2012, who had been the original occupiers on the park with the only other Riverstone branches in the UK being situated in London and Brighton Turnover 27,905,000 24,883,000 24,794,000 Pre-Tax Profit 37,000 12,000 16,000 Shareholder s Funds 681, , ,000 Consistently well let business park in excellent location Very little high quality own front door stock in wider Darlington area The Riverstone Management renewal builds on the rental tone of psf set on the Bellway Homes letting in 2016 increasing the reversionary potential of Unit 12 MediPro Ltd Company Number: MediPro are a training centre who provide clinical education for people already in or looking to join the medical profession. They cover medical professionals in a wide variety of industries such as offshore, diving, military, emergency and paramedic disciplines. They also provide clinical services and are one of the few independent ambulance providers in the North East, as well as selling various pieces of medical and safety equipment Turnover Pre-Tax Profit Shareholder s Funds 20,293 16,

8 Offers for the whole are sought in excess of 750,000 (Seven Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 10.37% after deducting costs of 5.40% PROPOSAL Unit 11 is available in excess of 461,300 reflecting a Net Initial Yield of 9.75% after deducting costs of 4.52% Unit 12 is available in excess of 288,700 reflecting a Net Initial Yield of 11.75% after deducting costs of 3.16% VAT The sale will be treated as a Transfer of Going Concern (TOGC). Capital Allowances No unclaimed capital allowances remain available. EPC Units 11 and 12 have an Energy Performance Certificate rating of B(40). Richard Turner Tel: richard.turner@cushwake.com Gagan Jagpal Tel: gagan.jagpal@cushwake.com Peter Atkinson Tel: peter.atkinson@cushwake.com Katy Paxton Tel: katy.paxton@cushwake.com Disclaimer MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in May 2018 Designed & produced by Ref: CSD1191 8