DERWENT HOUSE LILLYHALL BUSINESS PARK WORKINGTON CA14 4HS INVESTMENT SUMMARY

• Modern, high quality warehouse, located on Lillyhall Business Park, Workington PROMINENTLY SITUATED ON LILLYHALL BUSINESS PARK • Unit built in 2008 and extending to 46,500 sq ft

• Let to ACCO UK LIMITED (trading as Derwent – The Cumberland Pencil Company)

• Tenant has been in occupation since 2008 and MODERN AND HIGH has recently entered into a new 10 year lease QUALITY WAREHOUSE from 6 June 2019

• Headline rent of £195,300 per annum, reflecting £4.20 per sq ft

• Derwent has historically been based in Cumbria, LOW HEADLINE RENT with the subject property purpose built for the OF £4.20 PER SQ FT tenant in 2008

• Site extending to 3.54 acres (1.43 hectares) providing a low site coverage of 30%

• Long Leasehold (114 years unexpired term) A NEW 10 YEAR LEASE FROM JUNE 2019 • Offers are sought in excess of £2,450,000 (Two Million Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 7.50%, assuming purchaser’s costs of 6.37%, and a low capital value of £53 per sq ft

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS A595 A595 WHITEHAVEN

BRIDGEFOOT BLACKWOOD ROAD

BLACKWOOD ROAD

JUBILEE ROAD

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS LOCATION A69 CARLISLE J43

SILLOTH A595

Workington is located in West Cumbria, approximately THURSBY 33 miles south west of Carlisle and 51 miles north of Barrow in Furness. A596

The town benefits from excellent road links with the A66 M6 connecting to Junction 40 of the M6, approximately A595 35 miles to the east. Workington Port is located 1 mile from the town centre and has recently seen significant CALTHWAITE infrastructure investment.

MARYPORT DISTANCE DRIVE TIME (MILES) (MINS) WORKINGTON 2.5 6 A596 BASSENTHWAITE PENRITH WORKINGTON PORT 3.3 12 A66 A66 J40 A66 WHITEHAVEN 6.5 13 WORKINGTON A595 A66 CARLISLE 33 54 DERWENT THRELKELD M6 MOTORWAY 37.5 47 LILLYHALL BARROW IN FURNESS 51 92 LANCASTER 85 98 A595

M6 WHITEHAVEN A591

FOR INDICATIVE PURPOSES ONLY

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS SITUATION

SALTERBECK A595 Lillyhall Industrial Estate is one of Cumbria’s major strategic DERWENT WINSCALES employment sites and has attracted a significant number of commercial occupiers. The estate extends to 40 ha (98 acres), with mixed use commercial and educational occupiers. There HIGH are approximately 100 businesses on the estate, including the HARRINGTON A596 £11m Lakes College Campus. A597

In 2013, a further £7m educational facility, Britain’s Energy Coast Construction Skills Centre at Lillyhall, was opened on the Lakes Campus site. A595 HARRINGTON Nearby occupiers include Eddie Stobart, who occupy a 500,000 ambient warehouse adjacent to the subject A597 property, together with other occupiers including Stagecoach, LILLYHALL Arnold Clarke and Energus. There are also a number of car dealerships, including brands such a KIA, Skoda and Vauxhall.

A595 DISTINGTON

FOR INDICATIVE PURPOSES ONLY

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS DESCRIPTION

The property comprises a modern distribution unit constructed BLACKWOOD ROAD in 2008 specifically for the tenant. The property provides the following specification:

• Pitched roof

• Steel portal frame construction

• Concrete slab

• 2 level loading doors

• Two storey office accommodation

• Separate parking

• Secure, gated yard

FLOOR AREA

sq m sq ft

Warehouse 1,517 16,332 BLACKWOOD ROAD Production 1,905 20,512

FOR INDICATIVE PURPOSES ONLY Ground Floor Office 385 4,142

Plant Room 126 1,351 SITE EPC 1st Floor Office 387 4,163 The site has a total area of approximately 3.54 acres (1.43 ha) The property has an EPC rating of B (31). Total 4,320 46,500 providing a site coverage of 30%. A copy is available upon request.

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS TENANCY

The property is let on an FRI basis to ACCO UK Ltd (t/a Derwent – The Cumberland Pencil Company).

Acco UK Ltd have been in occupation since 2006 and have recently agreed to simultaneously surrender the original 15 year lease and enter into a new 10 year term from 6 June 2019 at a headline rent of £195,300, reflecting £4.20 per sq ft. The lease benefits from an upward only rent review in year 5.

The tenant will benefit from 15 months rent free from lease commencement to be topped up by the vendor.

COVENANT

ACCO Brands Corporation is an American manufacturer of office products, with brands including Rexel, Cambridge and Derwent.

ACCO UK Limited was created in 1992 from the integration of ACCO Europe and Rexel Ltd. The company is now the UK’s largest manufacturer of office products.

Rexel acquired The Derwent Cumberland Pencil Company in 1980, which specialised in the manufacturing of pencils and other stationery. Derwent have been based in Cumbria since 1916.

ACCO (UK) Ltd has a current Dun & Bradstreet Credit Rating of N2 indicating a lower than average risk of failure.

Company Reg: 00197754 31/12/2017 31/12/2016 31/12/2015

Turnover £47,751,000 £54,751,000 £60,527,000

Pre-Tax Profit (£6,047,000) £1,729,000 £1,392,000

Shareholders Funds £12,903,000 £18,127,000 £28,477,000

Further information can be found on their company website: www.accobrands.com

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS TENURE

Long Leasehold for a term of 125 years from 4 May 2008, providing an unexpired term of 114 years, at a rent of £1 per annum. VAT

The property is VAT elected. It is therefore assumed the purchase will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL

Offers are sought in excess of £2,450,000

(Two Million Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 7.50%, assuming purchaser’s costs of 6.37%, and a low capital value of £53 per sq ft. FURTHER INFORMATION

Further information to include Energy Performance Certificates are available upon on request.

DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS CONTACT

To arrange an inspection please contact:

HENRY BUNTING [email protected] 0203 328 9093

GERAINT DAVIES [email protected] 0203 328 9100

Dowley Turner Real Estate LLP on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Dowley Turner Real Estate LLP has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. June 2019. DERWENT HOUSE | LILLYHALL BUSINESS PARK | WORKINGTON | CA14 4HS