MODERN DISTRIBUTION WAREHOUSE INVESTMENT YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU

MODERN DISTRIBUTION WAREHOUSE INVESTMENT YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU

INVESTMENT SUMMARY Freehold. Distribution warehouse/ production facility located south east of York. Located on an established and expanding business park with excellent road access to the A1(M), the M1 and wider motorway network. Total floor area 59,242 sq.ft (5,504 sq.m). Low site cover of 33%. Let to York Mailing Limited (Current turnover 32m) - the tenant has been in occupation for 22 years. Approximately 5.5 years unexpired term. The rental income will be topped up to 245,000 per annum ( 4.14 per sq.ft). Offers in excess of 2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. Net Initial Yield 9.21%, based on the topped up rent and after allowing for purchaser s costs of 6.38%. Capital value 42 per sq.ft. 2

LOCATION York is located in North Yorkshire and is one of England s finest and most beautiful historic cities. A61 A19 A168 A170 A64 It is strategically located 25 miles (40 km) north east of Leeds, 21 miles (34 km) east of Harrogate and 200 miles (322 km) north of London. York is home to many diverse businesses but has a strong reputation for its economic strength in science and technology. Built on a foundation of academic excellence in these fields, the expanding York University and York Science Park is now home to over 100 companies. York Railway station provides direct rail services to Leeds, Manchester, Newcastle and London Kings Cross, the latter of which has a fastest journey time of 1 hour 50 minutes. SITUATION The subject property is situated off Brinkworth Rush, adjacent to Airfield Business Park, approximately 6 miles (9.6 km) south east of York City centre. Brinkworth Rush, in turn becomes Halifax Way as it passes through the Airfield Business Park. Halifax Way links to Elvington Lane and joins with the A64 to the north providing access to the A1(M) and linking with the M1 one junction south. The property is in close proximity to the Yorkshire Air Museum and adjoining airfield and is surrounded by specialist industrial and trade counter occupiers. These include Intelsius (DGP Group), Sheppee International, Barratt Precision Tubes, Wilsden Steel and J Wedgewood & Sons. A65 M65 M66 Manchester M60 A646 A6 A629 A628 A59 A65 Bradford A61 Harrogate Leeds 1 Huddersfield M1 M1 A1 (M) Wakefield A64 A59 A1 (M) A1 Sheffield M1 A19 YORK A19 A19 A1041 M18 Doncaster A638 A1 (M) A64 A631 A166 A1079 YORK MAILING M180 A156 A614 A63 Scunthorpe A15 A1079 A15 M180 A1103 A46 A1035 Hull Grimsby A46 A180 A1173 G lenshire Glenshire B1228 ELVINGTON LANE B1228 HALIFAX WAY YORK MAILING (PART OF YM GROUP) BRINKWORTH RUSH BRINKWORTH RUSH Hunter Dr ELVINGTON LANE ELVINGTON LANE WHELDRAKE LANE WHELDRAKE LANE 3

DESCRIPTION The property consists of a 45,225 sq ft (4,204 sq m) main production facility which is linked to an 11,522 sq ft (1,070 sq m) warehouse annexe and single storey office block. The tenant has installed a temporary warehouse on the southern elevation to provide both additional storage and access for deliveries. The main warehouse is divided by a full height blockwork wall separating the large printing facility and warehouse storage area. The property benefits from the following specification: Eaves height: Main Warehouse 7.7m Annexe 6.0m Front and rear access via roller shutter doors. Heating to warehouse. Large rear yard. Staff car park. CCTV and security lighting. Translucent roof lights in main warehouse and annexe. The office specification includes comfort cooling, suspended ceilings, recessed lighting, double glazing, perimeter trunking and a floor to ceiling height of 2.62m. The tenant has been in occupation of the property for over 22 years. They have undertaken a number of building improvements, including the installation of a two-storey mezzanine office block within the warehouse, a workshop facility and a printer control room. They have also upgraded the lighting within the Annexe to LED and have a programme to improve the lighting to the main warehouse within the next 12 months. 4

ACCOMMODATION We have been provided with the following Gross Internal Areas (GIA): GIA UNIT DESCRIPTION Sq ft Sq m Ground Main Warehouse 45,255 4,204.4 Ground Rear Warehouse 11,522 1,070.4 Ground Offices 2,465 229.0 TOTAL 59,242 5,503.8 Temporary Structure* 2,827 262.7 * Tenant improvement SITE AREA The property is situated on a total site area of approximately 4.18 acres (1.69 ha) providing a low site cover of 33%. TENURE The property is held freehold. 5

TENANCY The property is let in its entirety to York Mailing Limited on a full repairing and insuring lease expiring 24th March 2023 (5.5 years unexpired). The current passing rent amounts to 222,490 per annum, equating to 3.76 per sq. ft. The tenant has recently re-geared their lease, demonstrating further commitment to the unit. From 25th March 2018 the tenant has the benefit of 3 months rent free. From 23rd June 2018 until the end of the lease the rent will be increased to 245,000 per annum ( 4.14 per sq.ft). The vendor proposes to top up the rent to 245,000 per annum until June 2018. The web offset printer in the main warehouse is the newest and highest specification printer of its kind in the whole of the UK and is valued at 11m. York Mail group produces approx. 75% of all flyers in the UK. This facility is integral to the York Mailing Group (YM Group) who also occupy the adjacent building with separate ownership. This site is the head office of York Mailing and they employ 90 staff on the site, typically they operate 24 hours a day, 6 days a week. In a normal week this facility can produce over 30 million leaflets ready for distribution to clients and stores across the country. 6

COVENANT INFORMATION For almost two decades York Mailing Limited, which are part of the YM Group, has been supporting major retailers and leading supermarkets with time-sensitive promotional materials, designed to drive footfall to stores. These retailers include Marks and Spencer, Tesco, Specsavers, Asda and Homebase. York Mailing Limited are the largest member of the YM Group. YM Group are the largest print provider in the UK and produce approximately 75% of all leaflets for the UK market. They produce marketing material for the top retailers in the country. YM Group has a combined turnover of circa 104m. YORK MAILING LIMITED 31/05/16 (000 s) 31/05/15 (000 s) 31/05/14 (000 s) Sales Turnover 32,623 36,135 39,255 Profit / (Loss) Before Taxes 1,929 763 ( 453) Shareholder Funds 8,213 13,475 12,689 7

ENERGY PERFORMANCE CERTIFICATES (EPC S) Energy Performance Certificates can be viewed via the data room, access to which is available upon application. VAT The property has been elected for VAT, therefore VAT will be payable on the purchase price. However, it is anticipated that the sale of the property will be structured as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 9.21%, based on the topped up rent and after allowing for purchaser s costs of 6.38% and a capital value of 42 per sq.ft. 8

Further Information For further information or to arrange an inspection, please contact: Andy Byrne Tel: +44 (0)207 870 3566 Mobile: +44 (0)7779 611 765 Email: andy@jonesrealty.co.uk Owain Jones Tel: +44 (0)207 870 3561 Mobile: +44 (0)7767 422 169 Email: owain@jonesrealty.co.uk 83 Baker Street, London, W1U 6AG MISREPRESENTATION ACT 1967 Conditions under which particulars are issued: Jones Realty for themselves and for the vendor of this property, whose agents they are give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to this property is to be relied on as a statement or representation of fact. 3. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor does not make or give, and neither Jones Realty nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescription Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2017.