QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

15 YEAR INDUSTRIAL SALE AND LEASEBACK WITH FIXED RENTAL INCREASES QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

I Investment Summary

> Well-specified industrial HQ sale and leaseback.

> Strategically located on Salmon Fields, within close proximity to the A627 which leads to Junction 20 of the M62 Motorway and Junction 21 of the M60 orbital motorway.

> Comprises a detached industrial unit extending to a gross internal area of 48,122 sq ft.

> 4.4 acre site (1.78 hectares) with low site cover of 23%.

> A new 15 year lease to Quantum Profile Systems Limited subject to a tenant break option in year 10.

> Initial rent of £209,000 per annum (£4.34 per sq ft).

> 5 yearly rent reviews with fixed increases to 2.25% per annum compounded.

> Freehold.

> We have been instructed to seek offers in excess of £2,500,000 (Two Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT.

> A purchase at this level would reflect a net initial yield of 7.86%, a reversionary yield of 8.78% and a capital value of £51.95 per sq ft after allowing for purchaser’s costs at 6.39%. QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

M QUANTUM HOUSE A I Location I Situation A M Royton is a principal town within the Quantum House is on Salmon Fields, an Metropolitan Borough of Oldham which established industrial location in Royton, forms part of Greater Manchester. The approximately 2 miles north east of Oldham M M town sits approximately 7 miles north east town centre. The property is located within A of Manchester city centre, 36 miles north close proximity to the A663, which links A A east of Liverpool and 27 miles south west of directly to junction 21 of the M60 orbital M Leeds. Given the strategic location between motorway via the A627 dual carriageway. A Manchester and Leeds, Oldham is a well- The A627 in turn provides access to A A A connected and established industrial location. Junction 20 of the M62 motorway. MANT M Royton is situated 4 miles south east of There are various manufacturing, A T Junction 20 of the M62 and 3.5 miles north distribution and business units on Salmon A A of Junction 22 of the M60, providing access Fields, with occupiers including Best Food M A to the national motorway network. Logistics and Polyflor Limited. Salmon Fields A M Business Park, an established office Car Miles Time location with occupiers such as M&C Energy A Oldham 2 6 mins Group, Schneider Electric and Ryder & Manchester City Centre 8 18 mins Dutton sit to the west of the site. To the North of the site is Newbank Garden Centre, Manchester Airport 20 30 mins Booths Garden Centre and high density Leeds 35 45 mins Shaw Rd residential housing. A(M) Manchester International Airport is situated Laurel Trading Estate is approximately 0.5 Turf Ln approximately 20 miles south west and miles west which includes occupiers such A accessed via the M60 and M56 motorways. as Screwfix and Topps Tiles. The town is well served by public transport, benefitting from frequent Metrolink and QUANTUM HOUSE A bus services. Salmon Fields Higginshaw Ln

A

Oldham Rd QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

NE Car Park LA RF TU I Description I Site Constructed in the 1980’s, the property comprises Quantum House sits on a self-contained site and Tank a single storey detached industrial unit with integral two extends to 4.4 acres (1.78 hectares), providing a low storey office accommodation. The site also incorporates site cover of approximately of 23%. Quantum House, Tank car parking, yard, landscaped areas and a number the outbuildings and hard standing areas account of outbuildings. for approximately 50% of the total site area, with the remainder being landscaped. The unit is of steel portal frame construction with part Quantum House brickwork, part profile metal cladding under a pitched To the east, north and west of the site there are four

roof, incorporating translucent roof panels. There is ancillary out-buildings currently used as storage and 12 El a mezzanine running along eastern flank of the building an adjoining compressor house which is accessed Sub Sta Salmon Fields within the warehouse. via the warehouse. Business Village The warehouse specification includes: The site is secured by a gated entrance/exit which

also includes a security barrier. There is a tarmacadam 5 > Eaves height of 5.5 metres 7 car parking area for 65 cars. > Loading bay height of approximately 4.4 metres > 2 roller shutter doors > LED and fluorescent strip lighting I Accommodation Industrial

Estate 4 > Gas radiant heating and ceiling fans We have measured the property in accordance with the The office content accounts for approximately 23% RICS Code of Measuring Practice (6th Edition) and can of the accommodation. The ground floor offices are report the following gross internal floor areas: sublet to AutoKontrols Limited and comprise open Unit GIA (Sq M) GIA (Sq Ft) plan offices and storage extending to 3,906 sq ft. The first floor offices are used by Quantum Profile Warehouse/Production 3,444.20 37,073 Systems Limited. The accommodation provides open Offices 1,026.44 11,049 plan offices, boardroom, meeting room and a staff Total 4,470.64 48,122 kitchen/breakout area. In addition to the above there is a mezzanine and four The office specification includes: outbuildings extending to the following floor areas: > Suspended ceiling Mezzanine 265.93 2,862 > Recessed lighting External Storage 116.87 1,258 > Gas central heating > Air conditioning QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

I Tenancy The property will be let to Quantum Profile Systems Limited on FRI terms for a term of 15 years, subject to a tenant option to break in year 10. The initial rent will be £209,000 per annum (£4.34 per sq ft) and is subject to 5 yearly rent reviews equating at 2.25% per annum compounded. Part of the offices (3,906 sq ft) is sub-let to AutoKontrols Limited on a 3 year lease from 1 April 2018 at £34,000 per annum (£8.70 per sq ft).

I Covenant Quantum Profile Systems Limited (Company No.04057656) is a leading manufacturer of specialist building materials to the contract flooring, house building, joinery and off site markets. The principal activity of the company is the manufacture of stair nosings, flooring trims, cavity closers and wood composite plastic products. Quantum House is the company’s headquarters and is used for manufacturing and distribution. Summary trading information for Quantum Profile Systems Limited is as follows :

31/12/2017 31/12/2016 31/12/2015 Turnover £10,685,156 £10,447,508 £10,183,717 EBITDA £805,994 £701,168 £638,639 Pre-Tax Profit £373,706 £256,405 £221,311 Shareholder’s Funds £1,258,341 £1,025,001 £913,938 Further information is available at the Company’s website: https://www.quantumprofilesystems.com I Tenure The property is held freehold under title GM854005. QUANTUM HOUSE SALMON FIELDS I ROYTON I OLDHAM I OL2 6JG

I EPC The warehouse, part ground and first floor offices have an EPC rating C. Part of the ground floor offices have an EPC rating D. Energy Performance Certificates are available on request. I VAT The property has been elected for VAT. I Proposal We have been instructed to seek offers in excess of £2,500,000 (Two Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.86%, a reversionary yield of 8.78% and a capital value of £51.95 per sq ft after allowing for purchaser’s costs at 6.39%.

© Lambert Smith Hampton Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility I Contacts on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to Scott Gemmell Lawrence Vaughan Ben Roberts VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these 0161 242 8001 0161 242 7077 0161 242 8002 particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification [email protected] [email protected] [email protected] or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. August 2018. carve-design.co.uk 13647