newton aycliffe industrial estate

AYCLIFFE BUSINESS PARK, , DL5 6DE

KEY REGIONAL MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY 1 NEWTON AYCLIFFE INDUSTRIAL ESTATE investment summary

• Newton Aycliffe Industrial Estate forms part of the Aycliffe Business Park which is the second largest industrial estate in the North East region.

• Aycliffe Business Park is a key component of the North East economy extending to 672 acres and is the home of 250 companies employing 8,000 people.

• Aycliffe Business Park has recently been boosted by Hitachi Trains decision to build a new 450,000 sq ft facility on the Park.

• The industrial estate has excellent communication links being situated adjacent to jct 59 of the A1(M).

• The investment offering comprises 84 units with a total gross internal floor area of 658,007 sq ft with individual unit floor areas ranging from 1,046 sq ft – 56,107 sq ft.

• The estate includes development sites totalling 18.85 acres.

• The estate is let to a total of 47 tenants with 19 vacant units.

• The total rent reserved under the leases is £1,744,041 pax (£3.17 per sq ft). We consider the current ERV of the 84 units to be £2,125,424 pax (£3.23 per sq ft).

• The tenants are mix of local, regional and national companies.

• The property offers a purchaser numerous asset management opportunities including: • refurbishment and letting vacant units • negotiating the removal of tenant break options • relocating tenants within the extensive ownership • extending existing lease terms • development sites

• e We hav been instructed to seek offers in excess of £17,000,000 (Seventeen million pounds) for Newton Aycliffe Industrial Estate and the development sites. The pricing represents £16,250,000 (Sixteen million two hundred and fifty thousand pounds) on the rental income reflecting a net initial yield of 10.14% and a reversionary yield of 12.36% and £750,000 (Seven hundred and fifty thousand pounds) for the development sites. The yields assume full purchasers costs at 5.8%.

2 3 NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE locationA697 the estate A1 A189 location newton aycliffe industrial estate

Newton Aycliffe is located in the county of Intercity rail services are provided from Newton Aycliffe Industrial Estate forms part A key component of the North East of Durham approximately 6 milesMorpeth north of station which enables quick access of the wider Aycliffe Business Park which economy is the manufacturing Darlington and 13 miles south of Durham. to and from major cities on the main East Coast is the second largest industrial estate in the sector which accounts for 11.4% of total The town has a resident population of 29,000 A189Main Line. and Leeds North East of England. The estate is located employment. Major regional manufacturers (Great Aycliffe Town Council 2007). The can be reached in 30 minutes and one hour approximately 1.5 miles south of Newton include Nissan whose plant in Blyth population within 10 miles of the townA1 is respectively. There are 3 direct rail services to Aycliffe town centre and less than one mile manufactured a record 480,000 vehicles 311,000 (2001 Census). Kings Cross each hour with a fastest North West of junction 59 of the A1(M) via in 2011. The regions automotive supply A696 journey time of 2 hours and 19 minutes. the A167 dual carriageway. The estate is chain has benefited from this increase in Newton Aycliffe benefits from excellent road Ponteland also served by a number of the principal productivity including businesses in Newton communications with the A1(M) located Newton Aycliffe is well served by airports local bus routes. Aycliffe. The regional economy has been immediately to the east of the town, which is withA19 Newcastle International Airport located A1 further enhanced by the resumption of the main north/south link road serving the 32 miles to the north and Durham The Aycliffe Business Park has a total site steel production at the Redcar Steelworks. region. The A1(M) provides a direct link to Airport located only 13 miles to the south east. area of 672 acres and is home to in excess of Regionally based companies such as major centres such as Newcastle upon Tyne The town also benefits from easy access to 250 companies employing over 8,000 people. A68 Rolls Royce and Caterpillar have recently (31 miles) and Edinburgh (136 miles)A69 to the some of the UK’s busiest east coast ports such The business park is therefore an important announced substantial increased investment NEWCASTLE UPON TYNE north and Leeds (63 miles) and London (250 as Teesport and the Port of Tyne. component of the economy of the North East of at their plants in Sunderland and . miles) to the south. England. Major occupiers at Aycliffe Business Gateshead Park include Husqvarna, Ineos ChloroVinyls, Aycliffe Business Park has recently been Tetley and Lidl who have a regional distribution boosted by the news that Hitachi Trains A19 warehouse on the southern part of the have agreed to construct a new 450,000 sq ft A1 65 SUNDERLAND Business Park. facility on the Park. The building will be used to construct and maintain a new generation 64 of intercity trains for the Great Western and 63 East Coast mainlines. It is expected that the plant will generate approximately 500 direct jobs and numerous indirect jobs within the NEWCASTLE supply chain. It is anticipated that a number NEWCASTLE UPON TYNE of these supplier organisations will require A69 AYCLIFFE 62 BUSINESS representation on the Aycliffe Business Park. SUNDERLANDA68 GR EEN PARK FIE The new facility is expected to be completed

Durham L S D WA T

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H by 2015/2016.

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E A167 R

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DURHAM NEWTON ’ S

W A68 AYCLIFFE AY The Aycliffe Business Park is also the home

E LAN FE A167 LIF 61 AYC of the substantial Ineous ChloroVinyls OL B HO 6 SC 4 60 4 3 Plant which employs over 400 people and A1(M) W DURHAM

Spennymoor ROAD PRESTON WINBANK 59 generates an annual turnover of £150M.

MIDDLESBROUGH A

A688 Y The Park also boasts the UK headquarters A19 RO A66 DARLINGTON Bishop NEWTON AD of Husqvarna who are the world’s largest Auckland AYCLIFFE producer of outdoor power products. 60 A167 A689

HIGHINGTON LANE B6444 A177 Billingham ON S T

HIG HIN GT S

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PROPOSED W

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HITATCHI Y RAIL SITE 59 A1(M) B6444 A688 A68 Stockton-on-Tees

A67 A66 )

A167 (M 1 A DARLINGTON

A67 9 5 M1 J LEEDS 57 DARLINGTON A66 LEEDS A171 Whitby

56 4 5 A19 A172 NEWTON AYCLIFFE INDUSTRIAL ESTATE 02 estate plan 01

: Coatham Avenue 09 3 Units Total Floor area 76,498 sq ft : Northfield Way To Newton Aycliffe : Redworth Way Town Centre 01 27 Units 05 6 Units Total Floor area 138,292 sq ft CUTHBE ST Total Floor area 104,227 sq ft Newton

NOR THFIELD WAY R Aycliffe T’S Station GROA WAY

HORNDALE AVENUE TD EL R

HORNDALE AVENUE D LEASIDENORTH

ON GROATAVENUE

R ODNROAD HOWDEN WAY OA RIDGE LEASIDE H D IL TO GURNEY WAY RO N

AD : Leaside COATHAMAVENUE 10 7 Units WA B6448 Total Floor area 15,528 sq ft L DU

ROAD WOR HURWOR TH REDWORTHWAY RHA BUR FULB : Hurworth Road TH : Central Park MW TR

PRESTON BRADBURY ROAD RO EC WOODH

02 E 06 10 Units A 9 Units AD YN ER RO K ORTH Total Floor area 78,183 sq ft O Total Floor area 79,686 sq ft AD AM AD

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OAD WH RO I NB AD AN WH KR WHITWORTHAV DURHAM WAY IT OAD WO A167 RT C HD

AR To R LBUR

UHMWAY DURHAM Durham & BEAUMONT WAY

REMBRANDTWAY YR O AD : Burtree Road

SOUTH 11 2 Units

PRESTONROAD CUMBIE WAY WELBURYWAY Total Floor area 5,300 sq ft AN GE Cumbie Way ME WHINFIELDDR Beaumont Way

: L : NHAM HOLLIN W AY SC

S

03 L 07 7 Units P KETTON WAY 2 Units + open storage land

R WA I To A6072 STATIO N

Total Floor area 36,271 sq ft N ROA G

Y Total Floor area 18,020 sq ft

D RO AD Aycliffe Village B6444 ONS TREET EIGH INGT HEIGHINGTON LANE H

S WAY

Heighington EW Station S W YA

T GRINDON WAY

O GNOL NE ST ANDR : Development St Andrews 12 Proposed Hitachi Church Sites and Long Rail Site Occupational Leases Whinfield Drive MILLENN : IUM WA Y : Angels Close and See pages 20 – 21 04 4 Units 08 Durham Way South Total Floor area 16,346 sq ft 5 Units Total Floor area 102,053 sq ft

To Darlington

The Sleep Inn A1(M) For indicative purposes only J59 6 7

NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE 01 northfield way hurworth road 02

DESCRIPTION ACCOMMODATION DESCRIPTION ACCOMMODATION • The units at Northfield Way comprise warehouse/ • The 27 units have a total gross internal floor area • There are a total of 9 units which comprise • The 10 units have an approximate total gross trade counter properties arranged in 6 terraces. of 138,292 sq ft and individual unit floor areas a mixture of semi-detached and terraced internal floor area of 78,183 sq ft and individual unit • The units are of steel portal frame construction with range from 3,094 sq ft – 20,963 sq ft warehouse buildings which are of steel frame floor areas range from 3,108 sq ft – 31,710 sq ft. part brick and part profile metal clad elevations. construction with part red brick and part profile metal clad elevations. • Each building has an internal eaves height ASSET MANAGEMENT OPPORTUNITIES ASSET MANAGEMENT OPPORTUNITIES of approximately 5.5m and an up and over • Carry out a refurbishment of units 7-9 to enhance • Each unit has an internal eaves height of • Let vacant unit 2. loading door. letting prospects. approximately 6m and has the benefit of a loading • Convert the short term flexi lease on unit 14 to a door which is accessed via a shared loading yard. • Shared service yards lie to the front and rear of • Consider individual unit sales. longer term occupational lease. each unit. Loading is via the rear service yard. • Let vacant units. • To the front of each unit there is a two storey • Improve length of leases by removing tenant integral amenity block which provides offices, • A single storey amenity block is provided to the break options and extending lease terms. • Improve length of leases by removing tenant WC’s and staff facilities. front of each unit and provides offices, WC’s and break options and extending lease terms. • Consider individual unit sales. staff facilities. • Externally there is dedicated car parking for each building. • Good reversionary prospects for units 3-5, 10, 11 and 14 based on recent lettings.

27 Units 10 Units Total Floor area 138,292 sq ft Total Floor area 78,183 sq ft

11

10 5 9 4 Units 21-24 14 13 Units 1 17-20

Units

13-16

Units 9-12 5-8 3 Units

1-4 Units 2

Northfield Way Hurworth Road

Unit 28 25 Unit 26

= u/o for sale

8 9 NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE 03 cumbie way whinfield drive 04

DESCRIPTION ACCOMMODATION DESCRIPTION ACCOMMODATION • There are a total of 7 units which comprise • The 7 units have an approximate total gross • There are a total of 4 warehouse units which are a • The four units have an approximate total gross a mixture of semi-detached and terraced internal floor area of 36,271 sq ft. Individual unit mixture of terraced and semi-detached buildings. internal floor area of 16,346 sq ft. Individual unit warehouse buildings which are of steel frame floor areas range from 3,000 – 9,000 sq ft. • The units are of steel portal frame construction sizes range from 3,210 sq ft – 4,963 sq ft. construction with profile metal clad elevations. with red brick elevations. • Each of the units has an internal eaves height of ASSET MANAGEMENT OPPORTUNITIES • Loading access to each unit is via a concertina ASSET MANAGEMENT OPPORTUNITIES approximately 6m and a sectional up and over • Carry out a refurbishment of unit 703B loading door to the front elevation. • Carry out a refurbishment of unit I703B to loading door. to assist letting. • Internally the units have an approximate assist letting. • Internally the buildings have an integral amenity • Undertake discussions with tenants to extend minimum eaves height of 5m. • Consider sales to owner occupiers. block comprising offices, WC’s and staff facilities. leases and remove options to break. • Located to the front of each unit is a small • Negotiate the removal of the tenant break option • Externally there is dedicated car parking for • Consider individual unit sales. integral amenity block which incorporates offices on unit 702A. each building. and WC facilities. • Conclude letting of unit I702B.

7 Units 4 Units Total Floor area 36,271 sq ft Total Floor area 16,346 sq ft

Cumbie Way

Cumbie Way

10 11 I702B I703B Car I702A Park I702D

8 5 6 7

9 Durham Way South PLOT F Whinfield Drive

= u/o for sale

10 11 NEWTON AYCLIFFE INDUSTRIAL ESTATE 05 redworth way

DESCRIPTION ACCOMMODATION • There are a total of 6 modern detached and • The six buildings have an approximate total gross semi-detached warehouse buildings. internal floor area of 104,227 sq ft. Individual unit • The units are all of steel portal frame sizes range from 9,296 sq ft – 37,454 sq ft. construction with profile metal clad elevations incorporating translucent roof lights. ASSET MANAGEMENT OPPORTUNITIES • The average eaves height for each unit is • Let units 4 and 5 or consider owner occupier sales. approximately 6m and loading access is via roller • Negotiate the removal of tenant only options to shutter doors. break and agree re-gears of existing leases. • Each unit incorporates an integral amenity block • Progress discussions with the tenant of units 6 which provides offices, WC’s and staff facilities. and 7 about taking more accommodation. • Externally there are shared loading and car • Low passing rentals and good reversionary potential. parking areas.

6 Units Total Floor area 104,227 sq ft

Redworth Way

6 3 4 2 7

5

12 13 NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE 06 central park beaumont way 07

DESCRIPTION ACCOMMODATION DESCRIPTION ACCOMMODATION • Central Park comprises a large detached • Central Park has a total gross internal floor area • The accommodation comprises 2 detached industrial • Unit G700 has a gross internal floor area of warehouse building arranged in 7 bays, a two storey of 79,686 sq ft. The warehouse bays offer units buildings and a separate open storage yard. 18,020 sq ft. detached office building and a single storey gate ranging from 6,680 sq ft – 56,107 sq ft. • Unit G512 is a single storey factory facility with house. The main warehouse has been subdivided brick elevations and loading doors to the side ASSET MANAGEMENT OPPORTUNITIES internally to provide multi-let accommodation. ASSET MANAGEMENT OPPORTUNITIES and rear elevations. • Consider sales of the units to owner occupiers/ • The warehouse building is of steel portal frame • Refurbish and relet the vacant offices and gatehouse. • Unit G700 is a detached warehouse with part local private investors. construction with part red brick and part profile • Conclude the lease renewal on unit 2. red brick and part profile metal clad elevations. • Redevelopment of unit G512. metal clad elevations. The roof has a profile Located to the front of the property are two metal sheet covering incorporating translucent • Negotiate the removal of the rolling break option • Explore removal of tenant break option on in the Stiller Warehousing leases. loading doors. The property benefits from a unit G700. roof lights. secure yard at the rear and a two storey amenity • Each loading bay has the benefit of a roller • Good reversionary prospects for units 2 and 3-6 block to the side. • Document RPI linked rent review on unit G710. based on the recent letting of unit 7. shutter door which leads onto a large shared • Unit G710 is a tarmac surfaced open storage site. loading yard. • Internally the main warehouse has an eaves height of 4.9m in unit 6 rising to 8.5m in units 3-5. • A telecoms mast is located on the site.

9 Units 2 Units + open storage land Total Floor area 79,686 sq ft Total Floor area 18,020 sq ft G700

Beaumont Way

PLOT H North Durham Way

G710 PLOT E

(option to purchase)

G512 = option to purchase

14 15 NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE 08 angels close and durham way south coatham avenue 09

DESCRIPTION ACCOMMODATION DESCRIPTION ACCOMMODATION • The property comprises five modern detached • The five units have a total gross internal floor • The buildings at Coatham Avenue comprise 3 • The three units at Coatham Avenue have a warehouse buildings constructed in the 1990’s. area of 102,053 sq ft with individual unit floor detached warehouse buildings which are all of combined gross internal floor area of 76,498 sq ft. • The units are of steel portal frame construction areas ranging from 11,806 sq ft – 33,120 sq ft. steel frame construction. The individual floor areas range from 19,509 sq ft – with part brick and part profile clad elevations • Units C693 and C694X have part red brick and 29,283 sq ft. under pitched roofs. ASSET MANAGEMENT OPPORTUNITIES part profile metal clad elevations. Unit C692 has • Each of the units has a minimum eaves height • Conclude letting of unit 1 Angels Close. part red brick and part block work elevations. ASSET MANAGEMENT OPPORTUNITIES of 6m, translucent roof lights and their own • Removal of the tenant break option on unit J732 • Each of the buildings benefits from a single storey • Negotiate the removal of tenant break options in dedicated service yard and car parking area. Durham Way South. brick built amenity block and loading door access 2012 and 2014 to improve the length of income. • The units all have the benefit of sectional up and • Negotiate lease extensions with the long to the main warehouse area. • Good reversionary prospects for units C692 and over loading doors. established tenants in units 2,3 and 6 Angels Close. • Externally the buildings all have the benefit of C694 based on the letting of unit C693. • Located to the front of each of the units is an large yard/car parking areas. integral amenity block which incorporates offices, male and female WC’s and staff facilities.

5 Units Durham Way South 3 Units Total Floor area 102,053 sq ft Welbury Way Total Floor area 76,498 sq ft

1 Angels Close 4 C692

2

Coatham Avenue

3 J732 C693 C694

16 17 NEWTON AYCLIFFE INDUSTRIAL ESTATE NEWTON AYCLIFFE INDUSTRIAL ESTATE 10 leaside burtree road 11

DESCRIPTION ACCOMMODATION DESCRIPTION ACCOMMODATION • There are a total of 7 units which comprise • The 7 warehouse units have a total gross internal • The units comprise two adjoining workshop • The two units have an approximate gross internal a mixture of semi-detached and terraced floor area of 15,528 sq ft with individual unit floor buildings with part red brick and part profile floor area of 5,300 sq ft with the individual units warehouse buildings. The units are of steel frame areas ranging from 1,631 sq ft – 2,753 sq ft. metal clad elevations. having a floor area of 2,600 sq ft and 2,700 sq ft. construction with part red brick and part profile • Loading access is to the front of the property. metal clad elevations. ASSET MANAGEMENT OPPORTUNITIES • The property incorporates offices, staff facilities ASSET MANAGEMENT OPPORTUNITIES • Each unit has the benefit of a concertina loading • Consider individual unit sales. and WC’s. • Negotiate either a sale or a lease extension with door which leads out to a shared loading yard. • Let units 14 and 21. the tenant of unit E465B (1). • The individual units incorporate WC’s and • Improve security of income by negotiating the • Consider sale of unit E465B (2) to either the translucent roof lights. removal of tenant break options and extending tenant or a local private investor. existing leases.

7 Units Warren Road 2 Units Total Floor area 15,528 sq ft Total Floor area 5,300 sq ft

14

15 Woodham Road 5 17 Burtree Road

Leaside

E465B 1 & 2

19 20 21 Car Park

Gurney Way

18 19 NEWTON AYCLIFFE INDUSTRIAL ESTATE 0212 development site & long occupational lease 01

DEVELOPMENT SITES LONG OCCUPATIONAL LEASES To Newton Aycliffe • There are 8 development sites with a • There are 3 properties/parcels of development total site area of 18.85 acres with the individual land which have been sold to occupiers on a

A ST Town Centre

CUTHBE sites ranging from 0.65 acres – 4.56 acres. long leasehold basis. The properties/parcels of • A number of the sites are prominently development land are located on St Cuthberts Way,

Newton R Rembrandt Way and Carlbury Road. T’S positioned being visible from the A167 Aycliffe NOR THFIELD WAY

WAY

GROA dual carriageway. Station

TD • The sites may be suitable for a variety of HORNDALE AVENUE EL R employment uses subject to planning.

HORNDALE AVENUE D LEASIDENORTH

ON GROATAVENUE

R B ODNROAD HOWDEN WAY OA RIDGE LEASIDE H Plot Name Area (acres) D IL TO GURNEY WAY RO N C Plot A Northfield Way 4.56

AD Plot B Land next to A167 2.81 COATHAMAVENUE

WA Plot C St Cuthbert's Way 0.65 H B6448 L DU

ROAD WOR HURWOR TH G REDWORTHWAY

RHA Plot D Durham Way North 4.56 (50% may be undevelopable) BUR FULB TH MW TR

PRESTON BRADBURY ROAD RO D Plot E Beaumont Way / Durham Way South 2.15 (option to purchase element 4.01 acres) EC WOODH E A AD YN ER RO K Plot F Cumbie Way 0.82 ORTH O AD AM AD

R

OAD WH Plot G Car Park at Langton Business Park 1.56 RO I NB AD Plot H Central Park Land 1.74 AN WH KR WHITWORTHAV DURHAM WAY

IT TOTAL 18.85 OAD WO A167 RT C HD E AR To R LBUR

UHMWAY DURHAM Durham & BEAUMONT WAY REMBRANDTWAY YR Spennymoor : : : : O A Northfield Way B Land next to A167 C St Cuthbert’s Way D Durham Way Nth AD 1.85 ha / 4.56 acres 1.14 ha / 2.81 acres 0.26 ha / 0.65 acres 1.85 ha / 4.56 acres F SOUTH 50% may be undevelopable PRESTONROAD CUMBIE WAY WELBURYWAY AN GE ME WHINFIELDDR L NHAM HOLLIN W AY SC

S L

P KETTON WAY To A6072 R WA I STATIO N N ROA G

Y

D RO AD Aycliffe Village B6444 ONS TREET EIGHINGT HEIGHINGTON LANE H

S WAY

Heighington EW Station S W YA

T GRINDON WAY O GNOL NE ST ANDR LET UNTIL 30/6/2019 St Andrews Proposed Hitachi Church Rail Site E : Beaumont Way F : Cumbie Way G : Car Park at H : Central MI LLENNIUM WA Y Durham Way Sth 0.33 ha / 0.82 acres Langton Park Land 0.86 ha / 2.15 acres 0.63 ha / 1.56 acres 0.72 ha / 1.74 acres

To Darlington

DEVELOPMENT LAND

PROPERTIES LET ON LONG The Sleep Inn OCCUPATIONAL LEASES A1(M) For indicative purposes only J59 20 21 NEWTON AYCLIFFE INDUSTRIAL ESTATE tenancy schedule

RENT ANALYSIS Unit No Address Tenant Area (sq ft) Rent Rent psf Start Date Expiry Date Review Date Break Date Comments

M711A-D Northfield Way No 1-4 Landfall Management Ltd 20,963 £70,000 £3.34 01/04/2008 31/03/2013 – Units 1 & 2 u/o to Samwon Tech (UK) Ltd – reversionary lease of 5 years from 1/4/2013 @ £39,375 pa 01 (£3.50 psf) plus 6 months rent free. Units 3 & 4 u/o to Landfall Managements Ltd – reversionary lease of 5 years from 1/4/2013 @ £33,145 pa (£3.50 psf) plus 6 months rent free. As part of the 2 deals the landlord is making a contribution towards the repair of the roof. M710D Northfield Way No 5 Manissa Ltd 5,712 £17,000 £2.98 07/01/2010 15/02/2014 – Contracted outside 1954 Act. M710C Northfield Way No 6 Manissa Ltd 3,814 £13,500 £3.54 16/02/2009 15/02/2014 – Contracted outside 1954 Act. M710B Northfield Way No 7 VACANT 7,362 – – – – – M710 Northfield Way No 8 VACANT 3,815 – – – – – M714A Northfield Way No 9 VACANT 5,700 – – – – – M714B Northfield Way No 10 VACANT 3,814 – – – – – M714C Northfield Way No 11 VACANT 3,814 – – – – – M714D Northfield Way No 12 HPAS Ltd 7,628 £32,500 £4.26 25/03/2009 24/03/2015 – Tenant paying rent monthly by agreement. M713D Northfield Way No 13 VACANT 7,600 – – – – – M713C Northfield Way No 14 VACANT 5,721 – – – – – M713B Northfield Way No 15 & Darlington Training Ltd 3,800 £14,300 £3.76 07/03/2012 31/12/2017 – Annually from Contracted outside 1954 Act. 6 months notice on break. 31/12/2012 M713A Northfield Way No 16 Shildon & Darlington Training Ltd 3,814 £13,350 £3.50 02/03/2012 01/03/2017 – 01/09/2014 Schedule of Condition. Contracted outside 1954 Act. 6 months notice on break. M726A Northfield Way No 17 Sofa So Good NE Ltd 5,721 £18,593 £3.25 28/02/2011 27/02/2016 – 27/02/2014 Schedule of Condition. Contracted outside 1954 Act. Contracted rent £17,163 pa rising to £18,593 pa from 28/02/2014. Rent being topped up to £18,593 pa until 28/02/2014. Rent deposit £4,648.32. Tenant paying rent monthly by agreement. M726B Northfield Way No 18 Great North Air Ambulance Service Trading Co. Ltd 3,814 £12,000 £3.15 12/03/2012 11/03/2017 – Schedule of Condition. Rent rises to £10,900 on 12/3/2013 and £12,000 on 12/3/2014. Vendor topping up rent to £12,000 pax. M726C&D Northfield Way No 19, 20 Great North Air Ambulance Service Trading Co. Ltd 11,442 £36,000 £3.15 02/06/2010 01/06/2015 – Schedule of Condition. M725D Northfield Way No 21 Great North Air Ambulance Service Trading Co. Ltd 5,721 £17,500 £3.06 05/02/2010 04/02/2015 – Schedule of Condition. M725C Northfield Way No 22 Great North Air Ambulance Service Trading Co. Ltd 7,628 £23,000 £3.02 31/10/2008 30/10/2013 – Schedule of Condition. Contracted outside 1954 Act M725B Northfield Way No 23 Seventy One Group Ltd 3,814 £12,000 £3.15 12/08/2005 11/08/2010 – Holding Over. Engrossments issued for new 5 year lease to Hayward Home Appliances Ltd at £12,400 pa. Reduced rent of £11,333 pax in year 1. M725A Northfield Way No 24 VACANT 3,814 – – – – – M738 Northfield Way No 25 Mitie Technical Facilities Management Ltd 3,229 £13,000 £4.03 21/10/2010 20/10/2015 – Annually from Contracted outside 1954 Act. 4 months notice on break. 21/10/2012 M739 Northfield Way No 26 K G Rodway Insulation Ltd 6,458 £21,000 £3.25 01/01/1999 31/12/2018 – Tenant pays rent monthly. M742 Northfield Way No 28 Wartsila UK Ltd 3,094 £12,000 £3.88 01/11/2007 31/10/2017 01/11/2012 6 months notice on break. LND Northfield Way LND Adj to No 17 Vodafone Ltd (4238) £6,550 – 21/12/2005 20/12/2020 21/12/2014 Mutual break Schedule of condition. Landlord must provide 18 months notice to exercise the break and the tenant anytime from 12 months notice. The landlord can only exercise the break if the intention is to redevelop. Tenant can 21/12/2010 only exercise the break if the site becomes unusable. Tenant pays rent annually. Contracted rent of £5,575 pax but landlord receives additional rent based on the tenants site sharing agreements. 02 K720B Hurworth Road No 1 VACANT (u/o for sale at £255,000) – – – – – – Under offer for sale at £255,000. K720A Hurworth Road No 2 VACANT – 24 Month Rental/Rates/SC Guaranteee 10,545 £34,271 £3.25 – – – The vendor is to provide a 24 month rent, rates and service charge guarantee. K21A-C Hurworth Road No 3-5 Chinatool Automotive Systems Ltd 31,710 £95,130 £3.00 20/04/2009 19/04/2014 20/04/2012 Schedule of Condition on Unit 4 + roof of Unit 5. Rent deposit £27,944.44 K751 Hurworth Road No 9 Precision Toolroom Services & Machinery Ltd 6,368 £23,880 £3.75 01/04/2012 31/03/2017 – Tenant paying rent monthly by agreement. K752 Hurworth Road No 10 DSM N.E. Ltd 3,108 £10,900 £3.51 18/01/2011 17/01/2014 – Break option subject to 6 months notice. Schedule of Condition. Contracted outside 1954 Act. Contracted rent £10,000 pa rising to £10,900 pa on 18/01/2013. Vendor topping up rent to £10,900 pa until 18/01/2013. K753 Hurworth Road No 11 D & S Moulds & Repairs Ltd 6,427 £21,000 £3.27 01/03/1997 28/02/2002 – Tenant Holding Over under the 1954 Landlord and Tenant Act. K756 Hurworth Road No 13 Fab Shop Ltd 3,108 £12,500 £4.02 01/04/2010 31/03/2015 – Schedule of Condition. K757 Hurworth Road No 14 Soretrac (Short Term All inclusive Lease) 6,372 £12,000 £1.88 23/01/2012 22/07/2012 – Monthly L&T break option can be exercised at any time on one months notice. Schedule of Condition. Rent inclusive of SC and Insurance. Tenant paying rent monthly. 03 I800 Cumbie Way No 5 Doriflon Ltd 9,000 £31,500 £3.50 01/01/1988 31/12/2012 – I801 Cumbie Way No 6 VACANT 6,136 – – – – – I802 Cumbie Way No 7 North East Laboratory Supplies Ltd 3,045 £12,000 £3.94 01/01/2008 31/12/2017 01/01/2013 Contracted outside of 1954 Act. Tenant paying rent monthly by agreement. I803 Cumbie Way No 8 Heritage Design Projects Ltd 3,045 £12,950 £4.25 01/10/2009 30/09/2015 – Tenant paying rent monthly by agreement. I804 Cumbie Way No 9 AC Door Systems Ltd 3,045 £11,400 £3.74 01/12/2011 30/11/2016 – Rent deposit £2,175. Contracted outside of 1954 Act. Contracted rent £9,186 pa rising to £9,951 pa on 01/12/2012, £10,717 pa on 01/12/2013 and £11,400 pa on 01/12/2014. Vendor topping up rent to £11,400 pax until 01/12/2014. I805 Cumbie Way No 10 T & S Bespoke Kitchens Ltd 9,000 £29,300 £3.26 17/03/2008 16/03/2013 – Rent deposit £5,500. I806 Cumbie Way No 11 VACANT 3,000 – – – 04 I702A Whinfield Drive Goodyear Dunlop Tyres UK Ltd 3,210 £12,840 £4.00 28/10/2009 27/10/2014 Schedule of Condition. Tenant paying rent monthly by agreement. I702B Whinfield Drive VACANT 4,963 – – – – – U/O for a term of 5 years. Rent £13,000 year 1, £14,000 year 2, £15,000 year 3, £15,000 year 4 and £16,000 year 5. Six months rent-free period from completion. I703B Whinfield Drive VACANT 4,963 – – – – – I702D Whinfield Drive VACANT (u/o for sale at £87,000) – – – – – – Under offer for sale to GBP Enterprises Ltd at £87,000 22 23 NEWTON AYCLIFFE INDUSTRIAL ESTATE tenancy schedule

RENT ANALYSIS Unit No Address Tenant Area (sq ft) Rent Rent psf Start Date Expiry Date Review Date Break Date Comments 05 D784 Redworth Way No 2 The Rugby Group plc 18,539 £49,000 £2.64 01/04/1988 31/03/2013 – Underlet to Northern Corrugated Cases ltd until 28/2/2013 at £49,000 pa. Contracted outside 1954 Act. D785 Redworth Way No 3 Appletree Joinery Products Ltd 14,784 £40,656 £2.75 19/05/2010 18/05/2015 – 19/05/2013 Schedule of Condition. 6 months notice on break. Break penalty of £9,240. Rent rises to £40,656 pa on 19/05/2013. The vendor is to top up the rent to £40,656 until 19/5/2013. D786 Redworth Way No 4 VACANT – 24 Month Rental/Rates/SC Guaranteee 14,858 £44,574 £3.00 – – – The vendor is to provide a 24 month rent, rate and service charge guarantee. D787 Redworth Way No 5 VACANT 37,454 – – – – – D788 Redworth Way No 6 Appletree Joinery Products Ltd 9,296 £27,888 £3.00 28/10/2011 27/10/2016 – 27/12/2014 Schedule of Condition. Rent rises to £27,888 on 28/12/2014. The vendor is to top up the rent to £27,888 until 28/12/2014. Break on 6 months notice + penalty £5,810. D789 Redworth Way No 7 Appletree Joinery Products Ltd 9,296 £27,888 £3.00 18/06/2010 17/06/2015 – 17/06/2013 Schedule of condition. Rent rises to £27,888 pa on 18/06/13. The vendor is to top up the rent to £27,888 until 28/6/2013. Break on 6 months notice + penalty £5,810. 06 CPO Central Park Offices VACANT 4,175 – – – – – GFO1 Central Park Offices GRD FL OFF1 Stiller Warehousing & Distribution Ltd 970 £4,000 £4.12 19/05/2010 18/05/2013 – Monthly L&T break operable at any time on one months notice. Schedule of Condition. Internal repairing. Rent inclusive of SC & Insurance. Tenant paying rent monthly by agreement. 2 Central Park, Durham Way Nth Tyne Tees Packaging Ltd 10,708 £21,500 £2.01 06/10/2005 05/10/2010 – Quarterly Rolling L&T break operable quarterly. Schedule of Condition. Tenant is holding over. 3-6 Central Park, Durham Way Nth Stiller Warehousing & Distribution Ltd 56,107 £79,600 £1.42 01/12/2010 30/11/2013 – 6 monthly Tenant paying rent monthly by agreement. 7 Central Park, Durham Way Nth BTS Fabrications Ltd 6,680 £16,000 £2.40 10/01/2012 09/01/2015 – Contracted outside of 1954 Act. The tenant has an option to purchase the property anytime between 10/10/2012 and 09/01/2015. If the option is exercised between 10/10/2012 and 09/01/2013 the option price is £105,000, if the option is exercised between 10/01/2013 and 09/01/2014 the option price is £115,000 and if the option is exercised between 10/01/2014 and 09/01/2015 the option price is £125,000. 08GHSE Central Park, Durham Way Nth Gatehouse VACANT 1,046 – – – – – TELCOM Central Park, Durham Way Nth TELCOM Everything Everywhere Ltd 0 £4,978 – 24/09/2001 23/09/2011 – New lease agreed. 15 years from 24/9/2011 at £5,000 pa. 3 yearly rent reviews based on RPI (2% collar, 4% cap). T break option 5th & 10th year or anytime if they loose their licence. Landlord Break option at anytime after the 5th year of the term. Awaiting signature. 07 G700 Beaumont Way Primex Plastics Ltd 18,020 £69,250 £3.84 01/08/2008 31/07/2023 01/08/2013 01/08/2018 6 months notice on break. G512 Beaumont Way/Durham Way South VACANT (option to purchase) – – – – – Option to purchase in favour of Creditscale Ltd. Option period expires 14/7/2012 price £180,000 G710 Beaumont way Cemex UK Operations Ltd SITE £7,400 – 01/04/2008 31/03/2023 01/04/2013 Tenant insures at own cost. RPI link uplifts at rent review. Minimum rental uplift on 01/04/2018 01/04/2018 to £8,650 pa.

1(J807) Angels Close VACANT – 24 Month Rental/Rates/SC Guarantee 16,485 £66,500 £4.00 – – – The vendor is to provide a 24 month rent, rate and service charge guarantee. Under offer. 5 year lease. 08 TBO year 3, £66,500 pa. Solicitors instructed. 2(J808) Angels Close Senstronics Ltd 11,806 £59,000 £5.00 01/04/1999 31/03/2014 – Rent deposit £13,208 3(J809) Angels Close Senstronics Ltd 33,120 £157,000 £4.74 01/08/1999 31/07/2014 – Rent deposit £34,075 6(J810) Angels Close Trifast plc 17,142 £76,908 £4.49 11/12/1998 10/12/2013 – J732 Durham Way South Mears Ltd 23,500 £70,500 £3.00 01/03/2009 29/02/2016 01/03/2014 28/02/2013 & Schedule of Condition. Rent penalty £17,625 if 2013 break exercised. Notice on break 6 months. 28/02/2014 09 C692 Coatham Avenue DPE Automotive Ltd 19,509 £63,405 – 21/11/2011 21/11/2016 – Vendor to top up rent until 21/09/2012. SC capped at £3,170 pa. C693 Coatham Avenue Premo Fabrications Ltd 27,706 £54,412 £1.96 02/12/2009 01/12/2014 – Schedule of Condition. C694X Coatham Avenue Palram DPL Ltd 29,283 £73,208 £2.50 04/05/2011 03/05/2016 – 04/05/2014 Schedule of condition. 6 months notice on break. 1 month rent free if break not exercised. SC capped at £3,660.40 pa. 10 B716 Leaside No 5 Aycliffe Occupational Health Services Ltd 2,400 £10,000 £4.17 10/06/2004 09/06/2014 – Assignment and 2 year lease extension in solicitors hands. B724 Leaside No 14 VACANT 1,631 – – – – – B724 Leaside No 15 Carl Bell, Graham Duggen & Paul Dent 1,631 £5,710 £3.50 28/10/2011 28/10/2016 – 27/10/2014 Rent deposit £1,427.50. Contracted outside 1954 Act. 6 months notice on break. Current rent £4,900 rising to £5,465 pa on 28/10/2012 and £5,710 pa on 28/10/2013. Vendor topping up rent to £5,710 until 28/10/2013. B724H Leaside No 17 Stephen Taylor 1,697 £5,500 £3.24 10/02/2012 09/02/2015 – Schedule of Condition. Contracted outside 1954 Act. Rent rises to £4,500 on 10/02/2013 then £5,500 on 10/02/2014. Rent deposit £1,000. Tenant paying rent monthly by agreement. Vendor to top up rent to £5,500 pa until 10/02/2014. B656E Leaside No 19 Eldon Tyres Ltd 2,708 £11,700 £4.32 18/08/2008 17/08/2013 – Schedule of Condition. Contracted outside 1954 Act. Tenant paying rent monthly by agreement. B656D Leaside No 20 Eldon Tyres Ltd 2,753 £11,700 £4.25 19/04/2007 18/04/2017 19/04/2012 Contracted outside 1954 Act. Tenant paying rent monthly by agreement. B656C Leaside No 21 VACANT 2,708 – – – – – 11 E465B(1) Burtree Road C R Atkinson & Sons Ltd 2,600 £7,800 £3.00 13/12/2007 12/12/2012 – Contracted outside of 1954 Act E465B(2) Burtree Road Sowells Associates Ltd 2,700 £9,000 £3.33 26/03/2012 25/03/2017 – Contracted outside of 1954 Act. Fixed rental increases to £8,400 on 26/3/2013 and £8,600 on 26/3/2014 and £9,000 on 26/3/2015 until expiry. Vendor to top up rent to £9,000 pa until 26/03/2015. 12 F650 Carlbury Road Clee Hill Plant Ltd SITE £15,750 – 30/09/1967 31/12/2046 01/10/2028 Site 310 ft x 140 ft. Rent review upwards only to open market rental value of the site. H657 Rembrandt Way Robert Pickersgill & Peter Bulloch 820 £1,100 – 30/06/1970 31/12/2046 30/06/2030 LAND St Cuthberts Way Howarth Ltd 538 £150 £0.28 01/05/1999 30/04/2019 01/05/2014 Annual L&T break operable at any time on providing 12 months written notice. Rent reviews linked to RPI. 658,007 £1,744,041

Excluded from the above tenancy schedule are a number of properties and parcels of land which have been sold off on long leases for a term in excess of 990 years. A number of these leases generate a rent of £1 pa. 24 25 NEWTON AYCLIFFE INDUSTRIAL ESTATE details

tenure market commentary vat dataroom

The ownership of the estate is part freehold The total take up of industrial space across the The property has been elected for VAT. It is Access to an online data room containing relevant and part virtual freehold. The virtual freehold North East of England for 2011 was 4.1m sq ft anticipated that the sale will be treated as title, tenancy and legal information, together with element is held under 4 separate leases which is an increase of 9% on 2010 and is the a Transfer of a Going Concern (TOGC) and a Circle file is available upon request. which are all for a term of 999 years from highest level for five years. Approximately 77% accordingly VAT will not be payable subject to 1 September 2004 at a rent of £1.00 per of the 2011 take up involved buildings with a the status of the purchaser. annum. The leases all contain an option floor area of less than 100,000 sq ft. The most to purchase the freehold at any time after significant letting to take place during 2011 was the 25th year of the term on providing the the pre-let of 343,000 sq ft to Clipper Logistics energy performance landlord with 6 months written notice and at Wynward Park, Stockton at a rent in the payment of a premium of £100. order of £4.50 psf. certificates A copy of the Energy Performance Certificates for The availability rate of industrial/warehouse each of the units listed on the tenancy schedule accommodation at the end of 2011 across the tenants covenant can be downloaded from the following website: North East region stood at 9.1%. This compares The estate is let to a total of 47 tenants. favourably with the UK availability rate at the end www.newtonaycliffe-epc.co.uk The companies are a diverse mix of local, of 2011 which amounted to 10.2%. regional and national companies many of whom have been based at Newton Aycliffe Prime headline rental levels have remained Industrial Estate for a number of years. broadly unchanged throughout 2011. The highest Financial information for each of the tenants headline rents being achieved across the region is available upon request. are in Newcastle/Gateshead where prime rents stand at £6.00 psf for a grade A building of less than 20,000 sq ft. Within the smaller regional service charge centres such as Durham and Stockton prime headline rentals levels for grade A space are in Under the terms of the four long leasehold the order of £4.50 – £4.75 psf. interests the tenant is responsible for administering and implementing the service At the Newton Aycliffe Industrial Estate occupier charge for the whole of the Aycliffe Business demand has remained robust. The vendors have Park. The cost of the service charge is then successfully let 228,500 sq ft and sold 121,500 sq recovered from the individual freeholders ft of warehouse and office space during the past on the Aycliffe Business Park and the 12-18 months. The transactions have involved occupational tenants outlined in the tenancy buildings ranging from 2,000 sq ft to 50,000 sq ft. schedule. Good occupier interest is also being shown in a number of the vacant buildings on the estate. A separate service charge is levied in relation to the units at Central Park. Headline rents at Newton Aycliffe Industrial Estate range from £2.50 – £4.00 psf which compares The service charge is currently generating a favourably with other established industrial surplus of £9,238.56. Further information is locations across the North East of England. available upon request. estimated rental value

We believe that the estimated rental value of the Newton Aycliffe Industrial estate is £2,125,424 pax which reflects a low base rent of £3.20 psf. This figure is based on headline market rents across the estate of £2.50 – £4.00 psf. Further information is available upon request.

26 27 investment considerations proposal

• Opportunity to acquire a strategic muli-let We have been instructed to seek offers in industrial estate holding within a business excess of £17,000,000 (Seventeen million park of significant regional economic pounds) for Newton Aycliffe Industrial Estate importance. and the development sites. The pricing represents £16,250,000 (Sixteen million two • Growing regional manufacturing / hundred and fifty thousand pounds) on the automotive base. rental income reflecting a net initial yield of • Excellent spread of unit sizes providing 10.14% and a reversionary yield of 12.36% and numerous asset management opportunities. £750,000 (Seven hundred and fifty thousand pounds) for the development sites. The yields • Low rental base of £3.17 per sq ft providing assume full purchasers costs at 5.8%. excellent reversionary potential.

• Low capital value of £24.70 per sq ft.

• Highly attractive yield profile.

For further details please contact

David Hawksley Telephone 020 7409 7828 [email protected] Fax Number 020 7491 9121 Peter Flanders [email protected] John Blackwell [email protected]

Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection. (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in impact01622 833880/ www.impact-im.co.uk (E0484/WH) the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is June 2012