HUNTINGDON 1

UNIT 3, CARDINAL DISTRIBUTION PARK, FREEHOLD DISTRIBUTION GODMANCHESTER, HUNTINGDON PE29 2XR INVESTMENT FOR SALE HUNTINGDON 2

INVESTMENT SUMMARY

▶ Prime freehold distribution warehouse ▶ Very tight supply in Eastern Region for ▶ Highly reversionary passing rent of ▶ Should the property become available with excellent access to the A14. distribution units and growing demand £1,157,572 per annum equating to only to rent, based on an estimated rent of ▶ Established distribution location to the due to accessibility to Port of Felixstowe, £4.60 per sq ft. £6.00 to £6.25 per sq ft the potential south of Huntingdon, adjacent to the East, North, Midlands and London. ▶ If available today we estimate the reversionary yield would be: A1307 (old A14) / A1198 interchange. ▶ Well specified logistics unit totalling quoting rent would range from £6.00 to ▶ Huntingdon in the Eastern region is 251,932 sq ft (23,405.3 sq m) on a self- £6.25 per sq ft. ERV REVERSIONARY a desirable logistics destination for contained site with security gatehouse. ▶ We are instructed to seek offers in excess (£ PSF) YIELD (%) occupiers. ▶ 4.38 hectares (10.82 acres). of £22,830,000, subject to contract and £6.00 6.2 ▶ Substantial improvements to the A14 ▶ Let to DHL Supply Chain Limited (D&B exclusive of VAT. £6.25 6.45 between Cambridge and the A1 have 5A1) for a term of 10 years from 25 May ▶ A purchase as this level reflects anet improved the congestion in this section 2017 expiring 24 May 2027 with a tenant initial yield of 4.75% and a capital value of the A14. The Property’s accessibility is break option on 24 May 2022. Contracted of £90.62 per sq ft, after purchaser’s costs now greatly improved with direct access outside the 1954 L&T Act. of 6.8%. on the A1307 leading to the A14 East to Felixstowe. HUNTINGDON 3

COMTEC AR PACKAGING

CO-OP TRIM ACOUSTICS

EAST TO FELIXSTOWE ▲

JUNCTION 24 CAMBRIDGE SOUTH WEST TO A428 ▲ SERVICES

NEW A14 WEST TO BIRMINGHAM ▶ A1307 JUNCTION 23

A1198

CAMBRIDGE COBURN SLIDING DISPLAY SMITH SYSTEMS TECHNOLOGY & NEPHEW

CAMBRIDGE BAXI TRAINING SHELL PFS SENSORS CENTRE SCARBOROUGH

YORK M6 A(M)

M LEEDS 4 M6 BRADFORD HULL M6 LOCATION

HUDDERSFIELD M66 M6 M6 ROADS M 8 M M6 M DONCASTER MANCHESTER CITY DISTANCE (MILES) DRIVE TIME M6 A(M) SHEFFIELD London (M25) 56 1 hr 2 mins MANCHESTER M 6 Birmingham 85 1 hr 28 mins Milton Keynes 40 50 mins Sheffield 116 2 hr 6 mins Leeds 132 2 hr 21 mins STOKE-ON-TRENT NOTTINGHAM Manchester 164 2 hr 59 mins M6 A EAST MIDLANDS PORTS M NORWICH DISTANCE (MILES) DRIVE TIME LEICESTER WOLVERHAMPTON Port of Felixstowe 85 1 hr 35 mins HUNTINGDON Harwich International Port 92 1 hr 42 mins BIRMINGHAM BIRMINGHAM M6 Port of Ipswich 71 1 hr 27 mins COVENTRY A M  A NORTHAMPTON M A8 CAMBRIDGE AIRPORTS A8 M DISTANCE (MILES) DRIVE TIME B E D F O R D MILTON IPSWICH Heathrow 80 1 hr 31 mins KEYNES M FELIXSTOWE A(M) East Midlands 80 1 hr 26 mins M  STANSTED HARWICH LUTON London Stansted 42 46 mins LUTON M OXFORD London Luton 49 57 mins

M RAIL BRISTOL M LONDON READING LONDON M M HEATHROW CITY TILBURY Huntingdon is on the London to Peterborough mainline, BRISTOL with a journey time of approximately 60 minutes. M M

M M M ASHFORD CARDINAL PARK

DOVER GATWICK Cardinal Park extends to approximately 42.5 acres. Other occupiers on the park include: Coop, AR Packaging, Comtec M SOUTHAMPTON Cable Accessories, Trim Accoustics, Coburn Sliding Systems, PORTSMOUTH Cambridge Display Technology, Smith & Nephew and Baxi Training. HUNTINGDON 5 A1(M)

B1090 A141

SITUATION GREAT STUKELEY

A1307 ▶ The Property is prominently located just off the A1307 (old B1040 A14)

HARTFORD A1123 ▶ Huntingdon is the largest market town in Cambridgeshire B1044 A1123 with Godmanchester being one mile to the south. A141 B1514 WYTON ST IVES A14 HUNTINGDON

▶ Substantial improvements to the A14 between Cambridge HUNTINGDON and the Huntingdon costing £1.5bn allow goods to be B1514 transported much more efficiently across the country. A1 BRAMPTON GODMANCHESTER HEMINGFORD ▶ Accessibility is now greatly improved with direct access on to A1307 GREY the A1307 leading to the A14 East to Felixstowe and West to the M1, M6 and Midlands via the A1198. A1043 ▶ Immediate population of 25,000 and wider catchment of 185,000. A14 A1198 ▶ The Property lies 16 miles north-west of Cambridge, 24 miles BUCKDEN south of Peterborough, 85 miles east of Birmingham, 56 miles north of London and 84 miles west of Felixstowe Port. A14

▶ Access to London via the uncluttered M11 and A1 are also seen as benefits over the often congested M1.

A14 IMPROVEMENT SCHEME

The new £1.5bn Cambridge to Huntingdon road improvement scheme has significantly reduced drive times from the region to the rest of the UK. Occupiers now have the best of both worlds, being close to the ports and still being able to access the wider distribution network. The A14 provides a vital road corridor between the West Midlands and East Anglia and is of local, regional, national and international significance. HUNTINGDON 6 HUNTINGDON 7

DESCRIPTION ACCOMMODATION

The Property was developed in two parts, with half built The Property has been measured SCHEDULE OF AREAS: in 1991 and then extended by Kingspark in 2000. by Plowman Craven. The benefit of the measured survey can FLOOR AREA AREA Specification: be made assignable to the (SQ M) (SQ FT) purchaser. The Property has been Warehouse 22,468.8 241,852 ▶ Steel portal frame in two equal clear spans measured in accordance with the Ground Floor Offices 387.7 4,173 ▶ 10m eaves RICS Code of Measuring Practice (6th Edition) on a Gross Internal First Floor Offices 459.6 4,947 ▶ Profile steel cladding to elevations and roof Area (GIA) basis : Second Floor Offices 89.2 960

▶ Inner blockwork to 2.25m TOTAL 23,405.3 251,932

▶ 10% roof lights Additional Area (Excluded): Canopy 1,009 10,862 ▶ Floor loading of 50kN per sq m (1,045lbs per sq ft)

▶ 10 tailgate loading doors with electrically operated dock Levellers to the North elevation

▶ 6 sectional lift ground level loading doors to the South elevation

▶ Loading yard with parking and circulation on both north and south sides

▶ Loading bay canopy 15 metres deep

▶ Lighting and emergency lighting provided to the warehouse

▶ Separate parking for 196 cars (including 58 doubled up)

▶ Parking for 19 trailers

▶ Two storey office block clad in tinted glazed curtain walling

▶ Offices fully fitted with gas fired central heating, raised access floors with carpets, suspended ceilings with recessed lighting HUNTINGDON 8 HUNTINGDON 9

TENANCY

The unit is entirely let to DHL Supply Chain Limited for a term 10 years from 25 May 2017 expiring 24 May 2027 with a tenant break option on 24 May 2022 subject to 6 months notice. If the break is not exercised the tenant benefits from 2 months rent free.

Passing rent is £1,157,572 per annum (equating to only £4.60 per sq ft).

The lease is drafted outside of the security of tenure provisions of the Landlord and Tenant 1954 Act on a full repairing and insuring basis.

There is an upwards only rent review to Market Rent is on 25 May 2022 assuming a hypothetical term of 10 years from the review date on the same terms as the current lease with the benefit of two break options exercisable at the end of the 3rd and 5th year. TENANT COVENANT

DHL Supply Chain limited (co number: 00528867) has a Dun and Bradstreet rating of 5A1, ESTATE SERVICE CHARGE and presents a low risk of business failure.

Its latest set of accounts are shown below. There are two estate management companies on Cardinal Park and this unit straddles both. The total estate management 31-12-2019 31-12-2018 31-12-2017 charge for the last year was £46,229.06 equating to just over (£000’s) (£000’s) (£000’s) 18 pence per sq ft. Full service charge information available Sales Turnover 3,034,233 3,271,825 3,150,192 in the Dataroom. Profit (Loss Before Taxes) 135,494 3,865 78,899

Tangible Net Worth 398,687 361,749 436,046

Net Current Assets (Liabilities) 425,159 378,914 424,236 HUNTINGDON 10

OCCUPATIONAL MARKET

There has been a fundamental change in the dynamic Prime rents in the Golden Triangle are at £7.25–7.50 per Breaking this down, 45% were between 100,000–200,000 of the logistics and industrial market across the Eastern sq ft for units of over 100,000 sq ft. Rents for comparable sq ft in size, 22% 200,000–300,000 sq ft and 11% 300,000– Region in recent years. The Golden Triangle is gradually grade A units in the Eastern Region have only recently 400,000 sq ft. 22% of transactions involved units over losing its unchallenged status as the go-to location for big reached £6.00 per sq ft and whilst this does not seem a 500,000 sq ft in two transactions, the most recorded in any sheds, as online retail is reshaping the geography of the big differential, for larger units, this offers a considerable year demonstrating the rising occupier demand for larger logistics market. To establish quicker and more efficient saving to bottom line property costs. units. delivery service into stores and customers, companies are now focussing their final mile delivery centres closer to There is a compelling case for the availability of labour Demand has stemmed from a diverse mix of tenants. major population centres. in the Eastern Region, which has been a major factor for Food manufacturers accounted for the largest proportion numerous operators choosing to take space along the of take-up at 34%, followed by 3PLs at 31% and online This has made occupiers begin to question their logistics A1 and A14 corridors. retailers at 13% with the balance spread evenly across requirements, with the Eastern Region now benefitting other industries. from the resultant fallout, as it can provide many of the The COVID-19 crisis has seen a notable increase in solutions to their problems. demand for larger requirements and 2020 saw a record-breaking year for take-up across the Eastern Region with a staggering 3.8m sq ft of transactions of units > 100,000 sq ft.

RECENT LETTING TRANSACTIONS

DATE ADDRESS TENANT AREA RENT TERMS (SQ FT) (PSF)

Under offer G385, Gateway, Peterborough Confidential 386,453 £6.00 20 year lease

Q1 2021 MPS 4, Magna Park, Lutterworth Movianto 98,844 £6.75 10 year lease

Q1 2021 Magna 425, Magna Park, Lutterworth Primark 425,952 £6.50 5 year lease on second hand unit

Q1 2021 G226, Gateway, Peterborough MH Star 227,234 £6.00 15 year lease (break at year 10)

Bespoke 15 year pre-let for last mile warehouse. Q1 2021 Plot 112, Gateway, Peterborough Amazon UK 121,000 c. £18.00 16 acres with triple deck car park.

Q4 2020 Huntingdon 129 FedEx 129,375 £6.25 15 year lease on refurbished second hand unit

Q4 2020 Port One Logistics Park, Gt Blakenham FDS Logistics 143,000 £6.25 20 year lease

Q4 2020 Kingston 189, Peterborough Taylor Wimpey 189,382 £5.50 10 year lease

Q2 2019 SP147, Suffolk Park, Bury St Edmunds Unipart Logistics 147,000 £5.95 25 year lease (break at years 15 & 20) HUNTINGDON 11

INVESTMENT COMMENTARY

Given the level of uncertainty and volatility the global The sector had been experiencing increasing demand in Despite Brexit and the various national lockdowns that Covid pandemic has placed on the economy, the recent years due to the growth in e-commerce, however, have proved difficult for many other sectors, the logistics importance of supply chains and the need for the logistics the pandemic has caused many companies to significantly sector has continued to perform strongly, both in terms property sector has never been so apparent. increase their capacity due to the boom in online of occupiers still able to operate their businesses and shopping. with heightened investor demand, driving yields down for logistic assets.

PROPERTY TENANT AREA LEASE TERMS DATE PRICE PURCHASER (SQ FT) (YIELD)

Park Farm, Wellingborough Booker Retail Partners GB Ltd 267,375 6 years to expiry May 2021 £30.75m (5.36%) Confidential

Royal Mail, Peterborough Royal Mail Group 207,161 10 years to expiry May 2021 £22.08m (3.9%) Exchanged

Manton Lane, Bedford AF Blakemore 164,850 20 years to expiry March 2021 £27.5m (3.79%) CBREGi

Royal Mail, Wakefield Royal Mail 215,728 4 years to expiry March 2021 £26m (4.05%) Kennedy Wilson

Hubbard Products Futura Park, Ipswich 80,000 20 years to expiry March 2021 £11.6m (4.5%) BMO Real Estate Partners (Guarantor: Daikin Europe NV)

Restore PLC, Coventry Restore PLC 146,521 3.6 years to expiry Dec 2020 £17.1m (4.72%) Hines Global REIT

Lease expiry in 2021. Weston Avenue, West Thurrock Marks and Spencer 250,000 Dec 2020 £38m (4.35%) Mirastar REIM Annual fixed uplifts

Victoria Plum, Doncaster Victoria Plum 277,232 4.25 years to expiry Dec 2020 £24.75m (4.72%) Exeter

02/2030 lease expiry. Marsh Leys, Bedford Sainsburys 432,746 Nov 2020 £90.5m (3.52%) BlackRock Rent review RPI linked (2/4%)

Stratton Business Park, Biggleswade CEF 115,952 25 years to expiry June 2020 £33.7m (4.16%) Aberdeen Standard Investments HUNTINGDON 12 HUNTINGDON 13

TENURE SITE FURTHER INFORMATION

Freehold. 4.38 hectares (10.82 acres), giving a site cover of 53%. EPC

The tenant operates the site as one direction with Available on request and via the data room. a separate in and out. 27 33 12 K ISBY AVE NUE a 1 14

1 20 VAT

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D A O R 2 2 The Property is elected for VAT. It is assumed this transaction IT T T CARDINAL WA 1 E 1 3 P Y will be dealt with by way of a transfer of a going concern. 1 1

2 0 3 1

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21 RATEABLE VALUE

PE 8 TT IT 3 R 9 OA D 1 The Rateable Value for the Property is £849,005.

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31 a

E O H S N E V DATA ROOM A 1 5 R 4 Access can be granted upon request. 7 1

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T WAY

R AML / KYC COHO

Prospective purchasers will be asked to produce identification of the intended Purchaser and other documentation in order to

CENT support any conditional offers submitted to the vendor. Bidwells

URI O 8 N WAY 9 LLP accepts no liability of any type arising from your delay or 1 1

A other lack of co-operation.

G U MC ES T E R W AY

Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved. HUNTINGDON 14

ASSET MANAGEMENT CONTACTS

▶ If DHL do not exercise the break clause, implement Should you have any queries or wish to make an inspection, please contact: 2022 rent review and increase rental income with 5 years remaining on the lease.

▶ If DHL decides to vacate, secure dilapidations settlement, refurbish and re-let to maximise rental value in supply constrained market.

James Keys Lucy Young Saul Western [email protected] [email protected] [email protected] 07771 997374 07880 005802 07899 061889

Bidwells PROPOSAL 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 ▶ We are instructed to seek offers in excess of bidwells.co.uk £22,830,000, subject to contract and exclusive of VAT. ▶ A purchase as this level reflectsa net initial yield of 4.75% and a capital value of £90.62 per sq ft, after purchaser’s costs of 6.8%. ▶ Should the property become available to rent, based on an estimated rent of £6.00 to £6.25 per sq ft the potential reversionary yield would be:

IMPORTANT NOTICE ERV REVERSIONARY Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: (£ PSF) YIELD (%) Nothing contained in these particulars or their contents or actions, both verbally or in writing, by Bidwells LLP form any offer or contract, liability or implied obligation to any applicants, viewing parties or prospective purchasers of the property to the fullest extent permitted by law and should not be relied upon £6.00 6.2 as statements or representative of fact. No person in the employment of Bidwells LLP or any joint agents has authority to make or give any representation or warranty whatever in relation to this property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only, £6.25 6.45 may not be to scale and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP has not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. All rentals and prices are quoted exclusive of VAT unless otherwise stated.

Prospective purchasers will be asked to produce identification of the intended Purchaser and other documentation in order to support any conditional offers submitted to the vendors. Bidwells LLP accepts no liability of any type arising from your delay or other lack of co-operation. We may hold your name on our database unless you instruct us otherwise.

OS licence no. ES 100017734. © Copyright Bidwells LLP 2017. Bidwells LLP is a limited liability partnership registered in England and Wales (registered number OC 344553). Registered office is Bidwell House, Trumpington Road, Cambridge CB2 9LD where a list of members is available for inspection. Your statutory rights are not affected by this notice. June 2021 www.cube-design.co.uk (Q4774)