SECURE MULTI-LET OFFICE FOR SALE & TRADE COUNTER INVESTMENT

BUILDINGS A&B AND UNITS 1&2 FENHAM HOLLAND PARK NE2 4LP BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK NEWCASTLE UPON TYNE NE2 4LP

OFFICE BUILDING A

INVESTMENT SUMMARY

- Central location at Fenham Barracks, situated less than We have been instructed to seek offers in excess of 1 mile from £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) which reflects a net initial yield of 8.23%, based - High quality mixed use development incorporating two on purchaser’s costs of 6.33%. detached office buildings and two semi-detached trade counter units extending to 21,013 ft2 A purchase at this level reflects a capital value in the region of c. £107.00 /ft². - Long leasehold interest with circa 104 years unexpired - Tenants include Integral UK Limited, NP Alliance Limited and Crown Paints Limited - Total passing rent of £196,793 per annum - Weighted Average Unexpired Lease Term of 4.94 years A1

ALNWICK

BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP ASHINGTON

MORPETH A1() LOCATION A696 Newcastle A68 Airport A19 Aberdeen Scotland Port of Tyne Newcastle upon Tyne is the regional capital of the A69 A69 NEWCASTLE SUTH SHIELS North East of and comprises one of the five HEHAM UPON TYNE metropolitan districts which make up the Tyne & Wear Road Rail A68 65 Port of Sunderland Glasgow Edinburgh conurbation. The Tyne & Wear conurbation has a resident A1 63 population of 1,104,800 persons, while the Borough M6 Carlisle A69 NEWCASTLE of Newcastle upon Tyne has a resident population of A1() Port of Seaham A66 62 280,200 (Source: 2011 Census). A19 DURHAM

A1(M) York A181 Leeds A689 A167 A690 61 A19 HARTLEPOOL The City is well served with communications to the rest Manchester M1 Port of Hartlepool of the country, being situated at the hub of the regional Liverpool Sheffield 60 M6 England A688 A689 road network. Rail communications are also excellent, A1(M) M1 being situated on the East Coast Mainline with the Birmingham A68 59 Wales M1 shortest journey time to London of under 2 hours A1(M) A688 58 MIDDLESBROUGH M40 M11 DARLINGTON 40 minutes. The City has an international airport Cardiff A171 M4 A66 A66 Bristol approximately 7 miles to the north west, which provides London 57 A66 daily flights to the main domestic and European centres. 56 urham Tees alley Airport SCOTCH CORNER A19 Newcastle is home to two major Universities with A1() being one of the UK’s leading HOLLAND PARK establishments and part of the 24 strong elite Russell Central Motorway A684 Group, the country’s most highly regarded universities.

A167 Exhibition Park The city has a student population of over 50,000 and has Hunters Moor Heaton Park been voted best place in the UK for students three years Dental Hospital University University running. BBC Broadcasting of Newcastle Library Centre Lloyds upon Tyne The Great North Museum UNIT 2 BMW/Mini Castle Leaes

Barrack Road Royal ictoria The City has proven to be robust as a business location Infirmary Civic Centre UNIT 1 Northumbria University A19 being home to many high profile office occupiers Haymarket Leaes Park including Barclays Bank, Sage Group, PWC, Procter & St James Park A167(M) OFFICE B Eldon Northumberland Holland Park Gamble and Virgin Money. Despite being known as a Garden Street

Eldon Square Laing public sector location the City continues to attract private Art Gallery Science City St James Grey’s sector occupiers, with recent additions including BSkyB, NORTH Monument Monument Manors Eldon Square Theatre Chinatown Shopping Centre Royal DAB Beachcroft and Qubic. The Gate Park OFFICE A NEWCASTLE The North East is the only region in the UK to be a net CITY CENTRE Law Courts Discovery exporter of goods. Museum Quayside Baltic

Life Science Centre River Tyne Newcastle Newcastle College Central Station

A167

Metro Radio Arena Gateshead

GATESHEAD TOWN CENTRE BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

SITUATION

The property is situated at Fenham Barracks, A1(M) St James Park Eldon Square approximately 1 mile west of Newcastle City Science Central RVI Hospital Grey Street Centre. The A187 Barrack Road provides direct access to the city centre and connects to the A167 Central Motorway which is the main HOLLAND PARK Central Station Northumberland Street arterial route into Newcastle City Centre. A167(M) Adjoining occupiers include Lloyds BMW Barrack Road A167(M) Central Motorway Newcastle & Lloyds Newcastle Mini. The location is highly visible and acts as the headquarters for a number of regional functions such as BBC Broadcasting Centre, The Territorial Army and National Blood Transfusion Centre. The RVI Hospital is approximately 400 yards away.

Newcastle City Centre BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

DESCRIPTION

The property comprises two semi-detached industrial trade counter units and two detached two storey office buildings, all with ancillary car parking. TRADE COUNTERS The building comprises two, semi-detached, trade counter units at the north east end of the site. The units are of steel portal frame construction under a double pitched/hipped profiled metal decking roof. The elevations have full height brick and block work cavity walls, incorporating a roller shutter loading door to each unit on the front elevation, with additional personnel doors to the side.

Internally the properties benefit from reinforced concrete floors and a clear eaves height of approximately 6.1 metres (20ft). Each unit has male and female WC facilities, together with a small kitchen area. TRADE COUNTERS OFFICES The property provides two detached office buildings of steel framed construction with brick and block work cavity walls to the elevations under a double pitched, hipped roof covered in artificial slate. The buildings offer a reception area and mixture of open plan and cellular office space and benefit from male, female and disabled WCs. Each building contains an 8 person lift.

The southern office building (known as Office Building A) provides a basement level which contains storage rooms and a staff area. The northern office building (Office Building B) covers only the ground and first floors.

Both offices benefit from raised floors, suspended ceilings and gas fired central heating via radiators. The tenant has installed air conditioning to the first floor of Building B.

20 car parking spaces are demised to Building A and 25 spaces are allocated to Building B.

OFFICE BUILDING B BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

ACCOMMODATION

The property has the following net internal area and gross internal area in accordance with the Code of Measuring Practice 2007 Sixth Edition:

Area Use sq m sq ft

Unit 1 Trade Counter 328.00 3,531

Unit 2 Trade Counter 327.75 3,528

Office Building A Basement Storage 76.84 827 Ground floor 238.78 3,055 offices First floor offices 284.39 3,061

Total 645.01 6,943

Ground floor Office Building B 324.30 3,490 offices First floor offices 327.08 3,521

Total 651.38 7,011

Total 1,952.13 21,013 BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

TENURE TENANCY

Areas Lease Term Annual Rent Address Tenant Lease Expiry Comments (sq ft) Commencement (per annum) (/sq ft) 10 years from £21,250 Unit 1 NP Alliance Ltd 3,531 31/10/2019 The property is held long leasehold 01/11/2009 (£6.02) for a term of 125 years from 02 10 years from £19,000 Unit 2 Crown Paints Ltd 3,528 18/07/2020 November 1995 at a peppercorn 19/07/2010 (£5.39) 10 years from £61,708 Rent Review due on Office Building A Integral UK Ltd 6,943 31/01/2024 rent. The unexpired term is 01/02/2014 (£8.89) 01/02/2019 Office Building B Slater & Gordon 10 years from £24,750 Tenant not in therefore approximately 104 years. 1,770 07/09/2018 Part Ground Floor (UK) LLP 08/09/2008 (£13.98) occupation Office Building B 10 years from £17,090 Rent Review due on Integral UK Ltd 1,720 31/01/2024 Part Ground Floor 01/02/2014 (£9.94) 01/02/2019 Office Building B 3e Consulting 10 years from £52,995 3,521 29/09/2018 First Floor Engineers Ltd 30/05/2008 (£15.05)

Total 21,013 £196,793

The WAULT of the property is 4.94 years to the expiry. BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

COVENANTS

Integral UK Limited (Company No. 05307588) Integral were formed in 1863 under the name Staveley Industries PLC. The company rebranded to Integral UK in 1997 and are the UK’s largest independently-owned mechanical, electrical and fabric property maintenance business, providing maintenance to more than 1,600 commercial and public sector clients in 40,000 locations from 15 offices.

Integral UK Ltd have provided the following financial information:

Pre Tax Profit Shareholder’s Company Year End Turnover (£) (£) Fund (£)

Integral UK Limited 31/12/2014 305,307,000 14,924,000 41,093,000

31/12/2013 237,035,000 12,668,000 29,087,000

31/12/2012 237,098,000 11,094,000 28,327,000

Integral UK Limited has a D&B rating of 5A1

Crown Paints Ltd (Company No. 06624576) Crown Paints is a British paint manufacturer founded in the 1850s and owned by the Hempel Group, a Danish decorating company. There are approximately 130 Crown Decorating Centres throughout the UK and Ireland and employ over 1,250 staff.

Crown Paints have provided the following financial information:

Pre Tax Profit Shareholder’s Company Year End Turnover (£) (£) Fund (£)

Crown Paints Limited 31/12/2014 199,987,000 23,565,000 25,219,000

31/12/2013 193,509,000 21,974,000 24,283,000

31/12/2012 192,670,000 15,720,000 23,002,000

Crown Paints Limited has a D&B rating of 4A1. BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

COVENANTS VAT The property has been elected for VAT and therefore VAT will 3e Consulting Engineers Limited (Company No. 04265276) be payable on the purchase price. It is envisaged the sale 3e was incorporated in 2001 and has offices in Newcastle upon Tyne and Wakefield and deliver engineering projects in the UK and overseas. The company will be dealt with by way of a TOGC. cover a wide range of sectors including residential, education, industrial, leisure and student accommodation. They worked on the recent construction of the new Durham Police Headquarters and the redevelopment of the Rolls Royce pre-production facility in Sunderland. EPC 3e Consulting currently turnover under the threshold for declaring their full financial information. Information regarding the Shareholder’s Funds is as follows: The properties have the following Energy Performance Certificate ratings: Company Year End Shareholder’s Fund (£) Unit 1- D(81) 3e Consulting Engineers Limited 31/08/2014 413,603 Unit 2 - C(54) 31/08/2013 436,644 Office Building A - D(77) Office Building B - D(82) 31/08/2012 371,212 A copy of the EPC’s and Recommendation Report’s NP Alliance Limited (Company No 04334148) can be provided on request. NP Alliance offer wholesale trade of motor vehicle parts and accessories. The company trade from six depots in the North East of England including at Stockton, Ashington, Hartlepool, Chester le Street and Richmond and cover an area from Alnwick in the north to York in the south.

NP Alliance Ltd have reported the following financial information:

Company Year End Turnover (£) Pre Tax Profit (£) Shareholder’s Fund (£) INVESTMENT PROPOSAL NP Alliance Limited 31/12/2014 8,461,013 765,517 1,725,168 We have been instructed to seek 31/12/2013 8,162,319 824,746 1,734,344 offers in excess of £2,250,000 31/12/2012 7,497,868 792,075 1,637,976 (Two Million Two Hundred and Fifty NP Alliance Limited has a D&B rating of 2A2. Thousand Pounds) which reflects Slater & Gordon (UK) LLP (Company No. OC371153) a net initial yield of 8.23%, based on purchaser’s costs of 6.33%. Slater and Gordon is a national solicitors firm with 3,800 staff members across 27 offices in the UK. The company have over 90 years’ experience and offer a broad range of services for both personal and business uses. Within the Newcastle office they concentrate on personal injury claims, clinical/medical negligence and criminal defence cases. A purchase at this level reflects

The Tenant is not currently in occupation of the subject property having relocated to Atlantic Point in Newcastle city centre. a low capital value in the region

Slater & Gordon have provided the following financial information: of c. £107.00 /ft².

Company Year End Turnover (£) Net Tangible Assets (£)

Slater & Gordon (UK) LLP 30/06/2014 90,377,000 65,067,000

30/06/2013 49,076,000 19,228,000 BUILDINGS A&B AND UNITS 1&2 HOLLAND PARK FENHAM BARRACKS NEWCASTLE UPON TYNE NE2 4LP

For further information or to arrange a viewing, please contact:

Dickon Wood MRICS e: [email protected] t: 0191 594 5036 m: 07966 023 924

Douglas Cranston MSc MRICS e: [email protected] t: 0191 594 5023 m: 07867 001 380

Adam Greenwood MRICS e: [email protected] t: 0191 594 5000 m: 07776 858 536

Knight Frank LLP, St Ann’s Quay, 124 Quayside,Newcastle upon Tyne NE1 3BD

Or contact our joint agents:

Gavin Black FRICS e: [email protected] t: 0191 230 2777

Misrep. Notice These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building Gavin Black & Partners, 184 Portland Road, regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. The VAT position relating to the property may change without notice. Jesmond, Newcastle upon Tyne NE2 1DJ Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. April 2016.

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