High Yielding Office Investment - For Sale

Loftus House mellersh & harding Colima Avenue, Enterprise Park, Sunderland, SR5 3XB Investment Summary

• Modern detached oce building.

• Freehold.

• Established business location with occupiers including The Secretary of State, Balfour Beatty, TSB, NHS, Taylor Wimpey and BGL Group.

• Total net internal area of 1,835.4 sq m (19,757 sq ft).

• Entirely let to RTC North Limited on a 10 year lease commencing 29th March 2016, subject to an upwards only rent review and tenant break in March 2021.

• Passing rent of £156,328 pax reflecting a conservative level of £7.91 psf.

• Seeking o†ers of £1,500,000 (One Million Five Hundred Thousand Pounds) subject to contract. A purchase at this level will reflect an attractive net initial yield of 9.80% assuming purchaser’s costs of 6.10% and a value of £76 psf.

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 2 EVANS SALAMANDER NISSAN HALSHAW PUMPS CAR PLANT RENAULT HELENA AVANT TAYLOR SAFE BIOSCIENCES HOMES WIMPEY KAIL STORE MCDONALD’S KFC

SA

HYLTON RIVERSIDE RETAIL PARK: Loftus House PETS AT HOME ARGOS ALDI B+M COSTA MATALAN POUNDLAND PEACOCKS CARD FACTORY

NEW WEAR CROSSING OPENING SPRING 2018

NHS TSB BRASHER FUSION PREMIER DW SPORTS SAINSBURY’S AND CONTACT INN FITNESS BERGHAUS CENTRE

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 3 Location

Sunderland is a major City within the North East of and is WASHINGTO located approximately 12 miles south east of . N R D D The City has a population of approximately 275,506 (2011 Census) HYLTON R N SOUTHWICK and a catchment population of 420,268 (2011 Census). Loftus House A19 INDUSTRIAL ESTATE lies close to the A19 trunk road that links and to RIVERSIDE RD D N R CRAIGAVON RD the north of Newcastle via the Tyne . TOW CASTLE

WESSINGTON WAY

HYLT D O N PA R R K There are direct trains from Sunderland to Newcastle with a fastest RD RD E L A1231CH T journey time of 19 minutes. There are also direct train services S A BER BEA C to King’s Cross from Sunderland with a journey time of TIM N R ER O T T T CET approximately 3 hours and 20 minutes. Major employers within L Y H FAW NEW the Sunderland area include Nissan, Sunderland University, TSB, N WAY RIVER WEAR O WEAR T GRANGE RD and Asda Group plc. G CROSSING RINGWAY N SI F ES Loftus House E W R A AVE R M Sunderland is currently benefitting from an extensive regeneration Y OLI B C O A programme, with over £1bn of investment scheduled by 2024. T L N

THE BROADWAY A1231

PALLION

INDUSTRIAL ESTATE

NEWCASTLE A19 A184 A184 A1018

A19

A1 A194(M) A1 A1231 A1290 ANGEL OF Loftus House THE NORTH A1231 A1231 SUNDERLAND 65 A1231 WASHINGTON

A1(M) A690 A1018 64 A19

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 4 Situation

Sunderland Enterprise Park was developed as part of the Sunderland Enterprise Zone in the 1990’s and is located two miles to the north west of the City Centre. Wessington Way is the main route into the City Centre north of the River Wear from the A19. The premises are situated approximately half a mile from the A19. Other occupiers on the Park include TSB, Taylor Wimpey, Brasher & Berghaus and the NHS. Local amenities include DW Sports Fitness, McDonalds and the Hylton Retail Park with occupiers including Costa Coffee, Aldi and Argos.

Sunderland Enterprise Park has regular bus services to the City Centre, with a bus stop directly opposite Loftus House.

Sunderland City Council started construction on the new £118m Wear Crossing development in early 2016 and it is set to complete in June 2018. Situated between the Queen Alexandra and Hylton Bridge, the crossing will be in close proximity to the subject property. The bridge will directly benefit the Sunderland Enterprise Park by significantly reducing journey times into the City Centre.

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Not to scale. For indicative purposes only. LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 5

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Loftus House comprises a modern two storey building of From measurements taken on site we calculate the steel frame construction with external brick faced cavity approximate Net Internal floor areas to be as follows:- walling. To the main entrance on the southern elevation, this is supplemented with glass curtain walling which creates a two storey atrium reception/entrance area. Ground Floor Reception 33.6 sq m 362 sq ft Ground Floor Oces 901.5 sq m 9,704 sq ft The building provides open plan oces with perimeter trunking, suspended mineral fibre ceilings, recessed lighting, First Floor Oces 900.3 sq m 9,691 sq ft comfort cooling and throughout. There Total 1,835.4 sq m 19,757 sq ft are male and female toilets on each floor with ground floor disabled facilities and a small shower room. There is an 8 person lift and on site parking for 80 cars (1:247 sq ft). The total site area is approximately 0.53 Hectares (1.31 Acres).

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 6 Tenure Tenancy Tenant’s Covenant

The property is held freehold. Loftus House is entirely let to RTC North Limited RTC North originated as the Regional Technology on a 10 year full repairing and insuring lease Centre (RTC) for the North East and Cumbria – one commencing on 29th March 2016, at a rent of of a network of twelve centres set up by National £156,328 per annum reflecting £7.91 per sq ft. The Government in 1987. tenant was granted 12 months rent free spread over the first 2 years of the lease. The vendor will “top up” Specialising in the commercialisation of new the rent to £156,328 per annum from completion. products and services, RTC work with individuals, There is an upwards only rent review and a tenant’s businesses and the public sector to help create option to determine the lease on the 29th March more innovative and vibrant economies. RTC help 2021 subject to 6 months notice. organisations with all stages of the innovation and intellectual property commercialisation process and RTC North sublet part of the 1st floor currently use this expertise to support their partners accommodation to Northern Housing Consortium at a National and European level. Limited. In line with RTC’s business model as a partner for growing businesses, they are able to RTC’s board of directors includes leaders from sublet part of the building on flexible tenancies. some of the North East’s principal companies and organisations including: Nissan, Northumbrian Water, Accenture UK, , and Tait Walker.

For the year ended 31st March 2016 RTC North Limited reported Shareholder funds of £1,921,807 a 5.9% increase on 2015’s Shareholder funds of £1,815,077. RTC North has a Creditsafe rating of 68/100 which represents a Low Risk of business failure.

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 7 Rental Commentary

The initial rent of £156,328 pax reflects a conservative level of only £7.91 psf. Recent rental transactions include the following:

Date Address Tenant Rent pa Rent psf Area (net internal)

February 2017 Waterside House, Sunderland Enterprise Park The Secretary of State £335,000 £9.12 36,718 sq ft November 2016 Tyne River House, Gateshead Teleperformance Limited £423,080 £14.10 29,999 sq ft September 2016 Rapier House, Sunderland Enterprise Park Taylor Wimpey UK Limited £95,000 £10.55 9,996 sq ft May 2015 Riverside House, Sunderland Enterprise Park Lloyds Banking Group £213,000 £7.50 28,400 sq ft

LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 8 Loftus House

Colima Avenue, Sunderland Enterprise Park, Sunderland, Tyne And Wear SR5 3XB VAT

The property has been elected for VAT and the sale of the property will be dealt with as a Transfer of a Going Concern (TOGC).

EPC

The property has an EPC rating of D (90). A full EPC is available on request.

PROPOSAL

We are instructed to seek o†ers of £1,500,000 ( One Million, Five Hundred Thousand Pounds) for our clients freehold interest in the above property subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 9.80% assuming purchaser’s costs of 6.10% and a capital value of £76 psf.

FURTHER INFORMATION

Should you require any further information or wish to make an inspection, please do not hesitate to contact the sole mellersh agents. & harding MISREPRESENTATION ACT 1967 Mellersh & Harding LLP for themselves, hereby give notice that: (i) These particulars do not constitute any part of an o†er or contract. (ii) Mellersh & Harding LLP accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or 020 7522 8500 other matters issued by any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations. (iii) Neither Mellersh & Harding LLP nor their principals, www.mellersh.co.uk agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property. (iv) Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied Jeremy Waterworth David Mundy himself accordingly. (v) Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Ta x Direct Dial: 020 7522 8504 Direct Dial: 020 7522 8513 (VAT). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction. Mobile: 07471 356565 Mobile: 07880 740507 NOTE. The enclosed plans are based upon the Map with the sanction of the Controller of H M Stationery Oce (Crown Copyright Reserved), Chas E Goad Limited, Geographia Limited and Email: [email protected] Email: [email protected] Geographers A-Z Map Co Limited, where applicable. These plans are published for the purposes of identification only and, although believed to be correct, their accuracy is not guaranteed and they do not form any part of any Contract. Details prepared May 2017 9