SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

StewartMontrose

Chartered Surveyors Property Investment Consultants 0161 935 8245

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY

High Yielding multi-let investment comprising 444,639 sq ft (41,308 sq m) of accommodation.

Prime location at the junction of the A580 and M57. M62 – 6 miles, M58 – 3 miles, M6 – 10 miles. Situated on the established Knowsley Industrial Park, one of the largest employment areas in the UK.

Situated on the thriving Knowsley Industrial Park where there is a huge amount of industrial activity on the back of its strategic location, growth in the Port, growth of companies such as JLR, QVC, Home Bargains, B&M etc.

Good quality affordable accommodation with excellent occupational history.

Site of circa 27 acres in total including a development plot of 6.3 acres.

Current rental income of £1,254,245 pa reflecting low rentals of only circa £2.50psf on the industrial accommodation and £4.75 psf on the office accommodation.

ERV of £1,402,643

Offers in the region of £11,000,000 reflecting an attractive net initial yield of 11.73% and a capital value of only £22.61 psf excluding the value of the surplus development land.

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

LOCATION

Liverpool is the sixth largest city in the UK and is the commercial and administrative centre for the County of Merseyside. The County has a residential population of 1.5m, with 6.5m people within one hour’s drive.

The is located 212 miles (340 kms) north west of London, 98 miles (157 kms) north west of Birmingham, and 32 miles (52 kms) west of Manchester.

The Liverpool City Region has undergone a renaissance in the last 10 years with significant investment due in part to the international recognition the city received being European Capital of Culture 2008. Recent developments include Grosvenor’s Shopping Centre, The Met Quarter, the new cruise liner facility, and Convention Centre at Kings Dock, Liverpool John Lennon Airport, The Port of Liverpool and the automotive sector. More than £3 billion has been invested within the city centre and surrounding area in recent years.

Major employers include Matalan, Home Bargains, QVC, Royal Sun Alliance, Santander, Bibby Line, Jaguar Land Rover, B & M Bargains, Home Shopping Group, Princes Foods, John West, United Biscuits amongst others.

MOORGATE POINT, MOORGATE ROAD,

KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

COMMUNICATIONS

Liverpool benefits from excellent communications. Sea Port of Liverpool is ranked among Britain’s major Road containers ports and handles nearly 700,000 TEUS (20 The Merseyside region is served by the following ft container units) a year. The Port anticipates attracting motorways: the World’s largest container vessels to the proposed in river deep water terminal due to open in 2015. The M57, M56, M62, M58 and M6 making it an excellent £300M Liverpool2 Container terminal will almost double strategic distribution location in which to serve the North container capacity at the Port and allow it to handle two West of England and beyond. The M62 motorway 280m mega post-panamax vessels simultaneously and connects Liverpool to Leeds via the M60 orbital will accommodate 95% of global container vessels. This motorway. will remove the need for goods to be transhipped to smaller feeder vessels from larger ports in Europe. Connectivity within the region is will be further enhanced by the construction of the new Mersey Crossing which Goods will be able to be transported directly into the will provide a state of the art toll bridge linking the A57, heart of the UK from around the globe making it Widnes to Runcorn and Speke. Construction work has cheaper, quicker and more efficient. Particularly from now started on the bridge, which is due to open in 2017. the Far East, the cost comparison based on a 40 ft container of textiles delivered to Manchester from Hong Air Kong is £300 cheaper than shipping via Southampton. Liverpool John Lennon Airport handled over 4 million passengers in 2013 and currently offers flights to This development will also open up the Liverpool City approximately 60 different locations across the UK and Region to businesses based throughout the UK Europe. The growth of the airport has led to recent particularly in the Midlands, Yorkshire, Leicestershire facilities to include a new multi-storey car park, and Scotland. enhanced leisure facilities, together with a Hilton hotel.

Rail Liverpool has major railway connections with the mainline station being Liverpool Lime Street which is served by Virgin Trains as well as regional and local trains, with approximate journey times of 40 minutes to Manchester, 1 hour 30 minutes to Birmingham and 2 hours 7 minutes to London Euston.

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

M65 N M6

SOUTHPORT

M61 M66 SITUATION DRIVE TIMES

MOORGATE POINT Knowsley is situated approx. 17 kms (11 miles) east Distance Time M58 M60 of Liverpool and 47 kms (29 miles) west of miles mins MANCHESTER Seaforth M6 M602 Manchester. Knowsley is one of the main industrial M6 J23 10 12 Container A580 Port areas in Merseyside and benefits from excellent Liverpool and Docks 8 15 M57 East Lancashire Rd M62 LIVERPOOL M60 access to the regional motorway network including Manchester 26 48 BIRKENHEAD M62 the M57, M58, M62, M6 and Manchester’s Orbital Mersey WARRINGTON Leeds 53 78 M60 motorways. A561 M56 Runcorn Bridge Birmingham 95 121 MANCHESTER M53 RUNCORN AIRPORT LIVERPOOL Glasgow 185 230 JOHN LENNON Knowsley Industrial Park is situated on the north side AIRPORT M56 of the A580 East Lancashire road, which provides London (M25 Jct 15) 200 244 M6 direct access to Jct 23 of the M6 and connects Source: wwwtheaa.com Liverpool city to the West with Manchester city centre CHESTER to the East. Moorgate Point is situated with significant frontage onto County Rd Knowsley Industrial Park is one of the largest Moorgate Road, which provides direct access to industrial parks in Europe. At almost 1,200 acres Junction 4 of the M58 Motorway and the A580 (East A5208 (485 hectares) the Park and its sister, Knowsley Lancs Road), both of which are immediately to the Knowsley Industrial Park Business Park, are home to almost 600 companies. south of the property. Major occupiers located at Knowsley include: South Boundary Rd

A5208 Perimeter Rd • B&M Bargains

MOORGATE POINT • QVC Moorgate • Jaguar Road Hornhouse Lane Cooper’s Lane • DHL • Home Bargains A5207 J5 A580 • Vertex

A580 M6/MANCHESTER • Toyota East Lancashire Rd • SIG LIVERPOOL • Liverpool Football Club SAT NAV: L33 7YQ J4 • Matalan • Stoves / Glen Dimplex M57

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

TO LIVERPOOL

NORTH AND M58 M57

JUNCTION 4 SOUTH AND M62 MOORGATE POINT MOORGATE ROAD

DEVELOPMENT LAND

A580 EAST LANCS ROAD KNOWSLEY INDUSTRIAL PARK

HORNHOUSE LANE

SOUTH BOUNDARY ROAD

COOPER’S LANE

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

DESCRIPTION Unit 7 is a separate detached terrace of 5 industrial units, each with their own roller shutter loading door, The property consists of a large refurbished and separate pedestrian access and an eaves height of 5.0 modernised warehouse complex comprising a secured metres (16 feet). site of 10 industrial units with a detached office block split into larger suites and an enterprise Centre at first The two storey office block is located to the front of the floor level of smaller suites. site being of concrete framed structure with asphalt flat The main warehouse building is a mixture of steel roof throughout. The majority of office space has been portal and steel truss construction with concrete floors, extensively refurbished comprising suspended brick elevations and a multi-pitched roof incorporating ceilings, Cat 2 type lighting, perimeter trunking and glazed roof lights covered in a mixture of asbestos and central heating. There are 120 car parking spaces steel roof sheets. which are adjacent to the offices together with an overspill car park for a further 87 cars. The main warehouse has been subdivided to provide 6 units with gas fired heating and full access loading doors together with one dock level. The eaves height DEVELOPMENT LAND of the main warehouse varies between 7.6 metres (25 feet) – 7.8 metres (25’ 7” sq ft) and it benefits from a A further 6.3 acre development site to the rear of the full sprinkler system with the exception of Unit 4. The property is included within the sale and is shown on the warehouse is fully racked as part of the landlords attached site plan. We consider this has a modest specification. value of £150,000 per acre.

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

SITE AREA The total site area is 27.3 acres including a 4 acre lorry park with associated car parking and the additional 6.3 acres of development land. ACCOMMODATION

The property provides a total of 444,639 sq ft (41,308 sq m) of accommodation which can be broken down as follows:

Industrial Accommodation 408,098 sq ft (37,914 sq m) Office Accommodation 32,573 sq ft (3,026 sq m) Offices (Enterprise Centre) 3,968 sq ft (368.63 sq m)

A full breakdown of the accommodation is provided within the enclosed tenancy schedule.

The property provides a total density of only 37%. TENURE We understand that the property is held on a 999 year Unit 1 leasehold from 31 January 2005 at a peppercorn rent. Unit 3

Moorgate Road TENANCY The estate is multi-let to 13 tenants as per the attached tenancy schedule. The passing rent is Offices Unit 5a

Unit 2 currently £1,254,245 per annum Lorry Park Unit 5b

Development Land The leases are on effective full repairing and insuring terms (subject to a schedule of condition) through a Unit 4 service charge.

Unit 7a-d

MOORGATE POINT, MOORGATE ROAD,

KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY TENANCY SCHEDULE

Gross Rent Rent ERV £ ERV £ Description Use Tenant Name Area Sq Ft Lease Start Lease Expiry Breaks Comment £ pa £ psf pa psf

Unit 1 Impact Safety Glass Ltd 27,900 23/04/2004 22/04/2014 75,000 £2.69 83,700 £3.00 Lease renewal in negotiations. Effectively FRI terms subject to a Schedule of condition. Industrial Tenant was in occupation previously. Service charge cap of £0.60 psf. Effectively FRI terms Units 2 & 3 Industrial Kammac Plc 137,250 21/08/2014 20/08/2017 325,000 £2.37 343,125 £2.50 subject to a schedule of condition. K&A Logistic Solutions Limited Effectively FRI terms subject to a schedule of condition. Break subject to 3 months notice. Mutual break any time after 5a & 5b Industrial (surety - Tailored Recruitment 199,250 26/09/2014 25/09/2017 498,125 £2.50 498,125 £2.50 Outside L&T Act. Unit is fully racked (provided by the landlord). 26/9/2015 Services Limited) JJ Smith & Co (Woodworking Effectively FRI terms subject to a schedule of conditon.Limited service charge liability on Unit 4 Industrial 31,499 02/02/2001 01/02/2021 02/02/2016 (6 months notice) 92,500 £2.94 102,372 £3.25 Machinery) Ltd roof / rainwater goods of £1657+RPI Effectively FRI terms subject to a schedule of condition. Existing tenant still in occupation Unit 7A Industrial Total Outsource Inc. 2,422 16/12/2009 15/12/2012 20,500 £8.46 10,899 £4.50 holding over paying a rent of £20,500 pa. Unit 7B Industrial Muni- Serv (Hire) Ltd 2,422 14/05/2009 13/05/2014 10,315 £4.26 10,899 £4.50 Effectively FRI terms subject to a schedule of condition. Service charge cap of £1.70 psf.Effectively FRI terms subject to a schedule of condtion. Unit 7C Industrial TNT Post UK Ltd 2,500 19/03/2014 18/03/2016 10,000 £4.00 11,250 £4.50 Outside L&T Act Unit 7D & E Industrial Enterprise Liverpool Ltd 4,855 10/10/2008 09/10/2015 113,275 £4.53 21,848 £4.50 Effectively FRI terms subject to a Schedule of condition. Outside the L&T Act.

Land Land Enterprise Liverpool Ltd 91,260 £27,000 Lease for units 7D and E includes this 4 acre surfaced lorry and car park.

Suite 1 Office 3501 Travel Limited 451 01/08/2012 31/07/2013 2,351 £5.21 2,706 £6.00 Effectively FRI terms subject to a schedule of condition. Annual Licence, rolling over.

Break subject to 3 montice notice subject to a rent penalty of £5,271.35. If the tenant does 01/09/2014 - 30/11/2014. not break up until 30/11/2014 they are granted a rent free period from 01/12/2014 - Suite 2a Office A4E Ltd 4,809 29/05/2012 01/05/2018 45,686 £9.50 28,854 £6.00 Any time after 01/04/2016 28/02/2015. Outside the L&T Act. Effectively FRI terms subject to Schedule of condition. Service charge cap of £9,730 plus RPI.

Effectively FRI terms subject to Schedule of condition.Tenant in occupation, lease agreed Suite 2b Office Corporate Mobile Connections Ltd 1,851 14/02/2014 13/02/2017 9,718 £5.25 11,106 £6.00 waiting to be signed. Lease subject to 11 months rent free period. Lease outside L&T Act.

Suite 3 Vacant 5,245 0 £0.00 31,470 £6.00 Fully refurbished. Not currently in rating list. Office Suite 4 Vacant 5,432 0 £0.00 32,592 £6.00 Fully refurbished. Not curretnly in rating list. Office New letting in legals for a 3 year term at a pepercorn rent. Effectively FRI terms subject to a Suite 5a Kammac Plc 137 TBC 0 £0.00 822 £6.00 Office schedule of conditon. Under refurbishment at the tenants cost. Suite 5b - 5c Kammac Plc 429 TBC 0 £0.00 2,574 £6.00 As above Office Suite 5d Office Kammac Plc 194 TBC 0 £0.00 1,164 £6.00 As above Suite 5e Office Kammac Plc 404 TBC 0 £0.00 2,424 £6.00 As above Suite 5f Office Kammac Plc 1,846 TBC 0 £0.00 11,076 £6.00 As above

Suite 6 Office Vacant 6,318 £0.00 37,908 £6.00 Fully refurbished Suite 7a & 7b Office Ardent Credit Services Ltd 5,457 19/01/2014 18/01/2019 20/01/2017 25,500 £4.67 32,742 £6.00 Effectively FRI terms subject to a schedule of condition. Break subject to 6 months notice. Lease outside the L&T Act.

8x 1 year agreements in place on all inclusive rentals as follows, £2,039 p.a (Cheshire Distribution), £2,400 p.a (Merseychem), £3,000p.a (Tyrell Electrical), £1,440 p.a. Enterprise Centre Office Various 3,968 26,275 £6.62 33,728 £8.50 (Merseyside Heating & Plumbing), £1,440 p.a. (Golfpro Direct), £2,040 p.a. (Taybros logistics), £5,340 (Integral UK Ltd), £6,300 (Carlisle Security Services) £8,000 (Catch 22). Total gross income is £32,239.52. Serivce charge shortfall of £5,964.37pa.

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MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

SERVICE CHARGE ASSET MANAGEMENT The total 2014 service charge budget is £314,040 and All of the previous has resulted in the region being able to attract new occupiers and facilitate the growth of We consider that there are a number of inherent is made up of 3 separate schedules. The service existing occupiers. This is evidenced by a number of recent transactions as follows:- asset management opportunities, which include: charge provides for the maintenance of the common plant and machinery such as sprinklers, fabric repair • Let the void space Date Property Size Occupier Price / Comment and maintenance, 24 hour on site security, landscaping Sq Ft Rent • Improve the existing signage and branding of and cleaning together with an on-site landlords Per Sq the estate Ft • Improve the weighted average unexpired terms management team. The service charge runs below the July 14 The Bear, 105,000 Express Gifts £2.75 High bay second-hand distribution CAPS contained within the occupational leases that Widnes units. through proactive re-gear and lease renewals on are applicable forthcoming lease expiries June 14 Pimbo Point, 109,000 Victorian £2.50 Low eaves former manufacturing Skelmersdale Plumbing facility • Develop out site to the rear

INDUSTRIAL MARKET May 14 The Hive, 150,000 Johnson Controls £5.35 New purpose built distribution Speke facility COMMENTARY - MERSEYSIDE 2014 Switch Point, 150,000 KTC Edibles £10.00 Old low eaves manufacturing facility ENERGY PERFORMANCE Aintree

The Merseyside industrial market continues to be very 2014 DBR, Aintree 105,000 IDR Logistics £1.75 Old low eaves manufacturing facility CERTIFICATE active both in the manufacturing and distribution 2014 XL 400,000 DHL £4.25 Modern distribution facility An Energy Performance Certificate has been sectors, driven by a number of factors as follows:- Skelmersdale commissioned and is available on request. -

• Growth of the Port of Liverpool with a new deep sea 2014 Fallows Way, 95,000 Liverpool Football £3.00 Second-hand distribution facility Huyton Club container terminal currently under construction due for completion in 2016. 2013 Jupiter, 148,000 Toyota £4.15 Modern distribution facility Knowsley • A £300m investment for the construction of a new Mersey Crossing bridge between Runcorn and 2013 The Cube 500,000 B&M Bargain £4.25 New purpose built distribution facility Widnes which is now committed and underway, due 2013 29 Lees Road, 85,000 Baker Hughes £2.50 Second-hand former manufacturing for completion in 2017. Knowsley facility

• The continuing growth of production at the Jaguar Big Rack, 425,000 B&M Bargains £1.50 Second-hand former manufacturing Knowsley facility Land Rover Halewood Plant, Speke creating a spin off supplier and storage contract.

• An extensive and relatively congestion free motorway The above transactions show the strength and depth This confidence in the market has resulted in a network system. in the market for all types of industrial accommodation developer commencing on a speculative scheme of in Merseyside from new build modern distribution units two new buildings in Knowsley, Venus 100 (110,000 sq • A good supply of cost effective and skilled labour to older former manufacturing facilities. ft) and Venus 200 (200,000 sq ft) that should force. commence next year.

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 www.jpmrealestate.co.uk www.jolivetgroup.com SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

VAT

We understand that the property has been elected for VAT. As such it is anticipated a sale will be handled as a Transfer of a Going Concern. PROPOSAL

We are instructed to seek offers in the region of £11,000,000 (Eleven Million Pounds), for the entire property and site subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 11.73% and a capital value of £21.61 psf after assuming a modest £150,000 per acre for the development land assuming purchaser’s costs at 5.8%. CORPORATE SALE

A corporate aquisition is possible. Further information is available on request. CONTACT

To discuss the opportunity or to arrange an inspection, please contact the joint agents.

Simon Wood T: 01925 320 520 E: [email protected]

StewartMontrose Andrew Stewart T: 0161 935 8245 These particulars do not form part of any contract. The Joint Agents nor any of their directors, Chartered Surveyors E: [email protected] employees or agents is authorised to give or make any warranty or representation on behalf of any Property Investment Consultants party. Whilst information and particulars are given in good faith, intending purchasers or tenants must satisfy themselves independently as to the accuracy of all matters on which they intend to rely. 0161 935 8245 Andrew Littler T: 01942 252 803 All negotiations are subject to contract. Subject to Contract. October 2014 E: [email protected]

MOORGATE POINT, MOORGATE ROAD, KNOWSLEY, LIVERPOOL L33 www.jpmrealestate.co.uk www.jolivetgroup.com