HIGHLY REVERSIONARY MULTI-LET INDUSTRIAL INVESTMENT FOUR OAKS BUSINESS PARK, WALTON SUMMIT, PRESTON PR5 8AP

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1 HIGHLY REVERSIONARY MULTI-LET INDUSTRIAL INVESTMENT FOUR OAKS BUSINESS PARK, WALTON SUMMIT, PRESTON PR5 8AP

2 PROPERTY INVESTMENT Multi let industrial estate extending to 293,150 sq ft on a site of 12.5 acres Steel portal frame construction with fully clad elevations 4 units ranging in size from 10,000 sq ft to 115,000 sq ft High yielding Investment with significant reversion Multi let to 4 tenants with a WAULT to break of over 5 years Total passing rent of 765,957 per annum reflecting a low passing rent of 2.61 psf SIZE ACRES (SQ FT) 293, % of the space is let on a concessionary short term lease at 1.00 psf EAVES (MAX) 8.0M TO APEX (MAX) 10.25M Nottingham Rehab lease (39% of income) is backed by NHS contracts FDC lease is significantly underwritten by tenant operating The Pallet Networks Northern Hub Contract LOCATION Walton Summit is the prime industrial distribution location within West Lancashire RENT PA 765,957 AV RENT PSF 2.61 WAULT (EXP) 7.59 YEARS WAULT (BRK) 5.14 YEARS Direct motorway access to the M6, M61 and M65 Preston is a key growth City currently experiencing substantial infrastructure investment PRICING WALTON SUMMIT MOTORWAYS MAJOR OCCUPIERS 250 ACRE BUSINESS PARK M6, M61, M65 DHL, THYSENKRUPP, IVECO Our client is seeking offers in excess of PRICE 8,750,000 NIY 8.27% CAP VAL Psf

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4 PRESTON WALTON SUMMIT Preston is the administrative centre of Lancashire and is located 29 miles north west of Manchester and 35 miles north of Liverpool. The new deep water port at Liverpool 2 is easily accessed via the M6 and M58, providing access to international markets. High Speed mainline train services are available direct from Preston to London Euston and Scotland. TRAVEL DISTANCE M6 JUNCTION 29 MILES 0.5 Walton Summit is situated at the axis of three motorways (M6, M61 and M65) all within 1 mile providing rapid access to regional and national markets and a wide labour catchment. Walton Summit is an established distribution location, major occupiers include: Alliance Healthcare British Car Auctions DAF / Iveco DHL Global Logistics Parcelforce ThyssenKrupp Vernon Carus Yodel M65 JUNCTION 2 M61 JUNCTION 9 WARRINGTON M62/M6 INTERCHANGE LIVERPOOL - DOCKS MANCHESTER BIRMINGHAM GLASGOW In addition Amazon recently opened a regional distribution centre in Leyland (3 miles) and Waitrose have a Northern distribution hub in Chorley (4 miles).

5 Lancaster & The North A583 A582 M A6 Preston A582 A583 Leyland M6 M / Chorley 8 A M61 A59 A677 Blackburn M A666 Darwen M65 Bolton A676 8 A56 M66 1 A6 Preston Rd J29 J1 J30 M6 Walton Summit Rd Brierly Rd A6 Preston Rd Four Oaks Rd M61 J2 M65 J9 PR5 8AP Skelmersdale M58 26 Wigan 5 A6 A666 3 M60 M6 Manchester St Helens M62 2 Liverpool

6 FOUR OAKS BUSINESS PARK The estate comprises a substantial multi let industrial unit with yard areas and separate car parking. The estate provides 293,150 sq ft on a regular shaped site of approximately 12.5 acres. Construction of the original unit started in the 1980 s and continued through the 90 s. The unit has been subdivided to provide 3 tenants with accommodation ranging from 67,000 to 115,000 sq ft. The smallest unit is 10,114 sq ft which is detached from the main building. The main unit is of steel portal frame construction with fully clad elevations. The roof has metal sheet cladding incorporating roof-lights. Approximately a third of the roof was replaced in Four Oaks Business Park is a secure site with a security lodge and 24 hour access to a one way road system circling the estate. Self-contained secure site CCTV security system 15 x Dock level and 6 x drive-in loading access Mix of eaves heights from 6.25 to 8.0m under haunch and 8.0 to 10.25m to the apex Independent car parking from HGV access areas

7 M6 M61 Four Oaks Rd M6 J29 Church Rd Four Oaks Rd M65 Tramway Ln M61 J9 - M65 J2 M65 J1 Maps data 2016 Google, Imagery 2016 DigitalGlobe, Getmapping PLC, Infoterra Ltd & Bluesky, Landsat, The GeoInformation Group

8 ACCOMMODATION The property provides a gross internal floor area of 293,150 sq ft as outlined below. TENANT AREA SQ FT TOTAL BOSAL WAREHOUSE & OFFICES 67,522 67,522 NOTTINGHAM REHAB WAREHOUSE OFFICES 93,872 6, ,149 FDC WAREHOUSE OFFICES 109,763 5, ,365 FDC ECM WAREHOUSE 10,114 10,114 TOTAL 293,150 Nottingham Rehab have agreed an option to lease the hatched area. If Nottingham Rehab do not exercise this option, the space will be leased to FDC Holdings. The accommodation schedule above reflects the option space being within FDC s demise. The option area extends to 23,250 sq ft. BOSAL NRS ECM

9 TENANCY The property is multi-let to 4 tenants in accordance with the tenancy schedule detailed below. The investment has a WAULT of 7.6 years to expiry and 5.1 years to break. The current passing rent is 765,957 per annum reflecting a low overall rate of 2.61 per sq ft. TENANT ACCOMMODATION SIZE (SQ FT) RENT (PSF) RENT (PA) START EXPIRY BREAK NOTES NOTTINGHAM REHAB LTD MAIN WAREHOUSE & OFFICES 100, ,447 18/08/ /8/ YEAR LEASE WITHOUT RENT REVIEW FDC (HOLDINGS) LTD MAIN WAREHOUSE & OFFICES 115, ,259 31/12/ /12/ /12/2020 RENT INCREASES ANNUALLY AT 2% PER ANNUM. SCHEDULE OF CONDITION. SERVICE CHARGE CAP. BOSAL AUTOMOTIVE & INDUSTRIAL COMPONENTS LTD MAIN WAREHOUSE & OFFICES 67, ,522 01/12/ /11/2018 ROLLING BREAK, 12 MONTHS NOTICE. SCHEDULE OF CONDITION SIMON WILSON T/A ECM PRINT FINISHERS STAND ALONE UNIT 10, ,729 28/02/ /02/ k PA INCLUSIVE OF SERVICE CHARGE. RENT ASSUMES SERVICE CHARGE OF 0.62 IN LINE WITH THE CURRENT BUDGET TOTAL 293, ,957

10 OCCUPATION BY FLOOR AREA ECM BOSAL 23% Significant reversion through tenant paying 1.00 psf ECM 4% Readily lettable detached unit BOSAL NRS NRS 34% 4A1 covenant whose occupation is supported by an NHS contract FDC FDC 39% Lease underwritten by operation of TPN contract

11 COVENANT INFORMATION NOTTINGHAM REHAB LTD FDC (HOLDINGS) LTD BOSAL AUTOMOTIVE & INDUSTRIAL COMPONENTS LTD Company No Company No Company No NRS Healthcare is the UK s leading provider of Community Equipment, Wheelchair & Clinical Services to the NHS and Local Authorities. nrshealthcare.com A logistics and haulage firm specialising in next day pallet delivery and partner of TPN (The Pallet Network). fdcholdings.co.uk Bosal are part of a large European manufacturing group who supply a comprehensive range of automotive parts. bosal.co.uk YEAR END 31/03/2015 YEAR END 31/03/2015 YEAR END 31/12/14 % OF INCOME 39.2% % OF INCOME 46.9% % OF INCOME 8.8% TURNOVER 134,615,000 TURNOVER TURNOVER 7,243,000 PRE-TAX PROFIT 4,857,000 PRE-TAX PROFIT PRE-TAX PROFIT 1,034,300 NET WORTH 24,097,000 NET WORTH 2,879,000 NET WORTH 1,924,500 D&B RATING 4A1 D&B RATING 2A3 D&B RATING N2 SIMON WILSON T/A ECM PRINT FINISHERS ECM Print Finishers are a local firm that provide materials for printing shops. They have been trading for 5 years. N/A % OF INCOME TURNOVER PRE-TAX PROFIT NET WORTH D&B RATING 5.1% n/a n/a n/a n/a

12 INDUSTRIAL MARKET The distribution market in the North West is experiencing strong levels of demand in good distribution locations. Take up within this sector was extremely strong during 2014 & 2015 and is forecast to continue. Supply in the secondary market is tight. Two adjacent units on Walton Summit provide the only major vacancies on the estate. Summit 86, a refurbished unit next door to Four Oaks, is being marketed at 4.50psf. Alpha also adjoining the site has just been bought to the market and is proposed to be refurbished when the current lease expires in June. The quoting rent is also 4.50 psf. With a lack of new development in the area vacancy rates will remain low indicating good prospects for rental growth. CURRENT MARKET CONDITIONS RENTAL VALUES DEMAND SUPPLY TAKE UP RECENT LETTINGS IN AND AROUND WALTON SUMMIT SUMMIT 86 AMAZON ROYAL MAIL ALPHA 86,000 sf 170,000 sf 170,000 sf 131,000 sf 4.50 psf Quoting Rent 4.50 psf 5.00 psf 4.50 psf Quoting Rent The quoting rent on the only new comparable large specultative building in the area is 5.75 psf which is at Revolution Chorley and extends to 180,000 sq ft. NOTABLE INVESTMENT TRANSACTIONS ADDRESS SIZE (SQ FT) PRICE ( ) NIY (%) CAP VAL (PSF) WAULT DATE CROSSLEY PARK, STOCKPORT 304,711 10,800, YEARS 01/2016 WARTH INDUSTRIAL ESTATE, BURY 262,398 9,500, YEARS 12/2015 OLD MILL INDUSTRIAL ESTATE, PRESTON 102,150 4,150, YEARS 05/2015 OAKHILL TRADING ESTATE, WORSLEY 338,043 16,000, YEARS 07/2015 WARDLEY INDUSTRIAL ESTATE, WORSLEY 130,792 5,175, YEARS 06/ BRIERLEY ROAD, WALTON SUMMIT 144,000 7,825, YEARS 06/2014 THYSENKRUPP, WALTON SUMMIT 147,000 7,290, YEARS 06/2014

13 PURCHASE RATIONALE Asset with strong fundamentals; location and specification Bosal s short term concessionary lease is highly reversionary Further reversion potential following refurbishment as evidenced by adjacent unit quoting 4.50 per sq ft Current ERV is arguably 3.50 per sq ft Low capital value of c. 30 per sq ft The unit is the largest on the estate providing an advantage for securing larger lettings

14 TENURE Freehold VAT The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). EPC C72 Full certificate available upon request

15 PROPOSAL Our client is seeking offers in excess of 8,750,000 subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 8.27% and a Capital Value of psf assuming usual purchaser s costs of 5.80% CONTACT IMPORTANT NOTICE Zaman Roberts and Aherne Property Consultants 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. Photography taken January 2016, published March 2016.