20 Year RPI Linked Industrial Headquarter Sale & Leaseback Reflex Labels, 29 Moat Way, Barwell, LE9 8EY avisonyoung.co.uk/15383 Reflex Labels, 29 Moat Way, Barwell, LE9 8EY

Investment Summary

• Sale and leaseback opportunity in an established industrial location of that is within close proximity to Junction 2 of the M69. • A 5,782.71 sq m (62,245 sq ft) detached industrial building on a large site of 1.08 hectares (2.68 acres) providing a site cover of approximately 53%. • Upon completion the property will be let to Reflex Plus Limited, with a parent company guarantee from The Reflex Group Limited, a well-established labelling product supplier with a group turnover close to £115 million per annum. • The tenant has traded very strongly through the Covid-19 pandemic and supplies industries which have not been adversely affected by the pandemic or lockdown. • The property will be let on a 20 year full repairing and insuring lease, subject to a tenant only break option after year 15. • The commencing rent will be £327,000 per annum (equating to a low £5.25 per sq ft), with 5 yearly Rent Reviews in accordance with the Retail Price Index, subject to a cap of 4.00% and a collar of 2.00% per annum. • Freehold. • Offers are sought in excess of £4,750,000 (Four Million, Seven Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 6.40% (assuming purchaser’s costs of 7.58%) and a capital value of £76.31 per sq ft. • At this purchase price and based upon the mid- point of the potential increase at rent review, the running yield will increase to 7.42% in 2026 and 8.60% in 2031.

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Location A38 Leicestershire is located at the heart of the UK and benefits from easy access to regional, national and international markets. Its connectivity offers businesses direct access to a large, high quality workforce of circa 371,200 BURTON economically active people within Leicestershire alone – c.4.4% higher than the UPON TRENT national average. The property is located in Barwell, a town and in southwest Leicestershire, approximately 3 miles (4.82 km) north-east of the market town A444 of and 12 miles (19.3 km) south-west of the city of Leicester. M1 Barwell is served by the A47 which provides access north-east to Leicester and A38 south-west to Hinckley/the A5 Trunk Road, and the A447 Trunk Road which A50 links to Hinckley/north to the A551 Trunk Road. M6 TOLL LEICESTER A444 Reflex Labels M42

SUTTON A5 A6 COLDFIELD HINCKLEY Stapleton Ln Kirkby Rd M6 A5 Ashby Rd BARWELL Shilton Rd BIRMINGHAM M1 Reflex Labels M6 SOLIHULL Moat Way Church Ln Mill St A47 A14 Hinckley Rd The Common RUGBY M42 Barwell Ln A423 Ashby Rd A47 A435 M40 A47 ROYAL LEAMINGTON SPA Reflex Labels, 29 Moat Way, Barwell, LE9 8EY

Situation Communications The property is situated on Moat Way, which is the main Air commercial and industrial location in the town of Road Train Barwell. It benefits from convenient access to the A447 The property lies approximately 4.5 Hinckley Railway Station is located Birmingham Airport is approximately approximately 0.7 miles (1.1 km) to the west of the miles (7.2 km) north-west of J2 of the 3.3 miles (5.3 km) to the south of the 24 miles (38.6 km) to the south-west, property, which provides quick access via the B4669 to M69 Motorway, midway between property which is on the Cross Airport is 24 miles Junction 2 of the M69 approximately 4.5 miles (7.2 km) Leicester and Coventry. The M69 Country Birmingham to (38.6 km) to the north and Coventry to the south-east of the property. itself connects directly with the M1 Peterborough line. There are Airport is 18 miles (28.9 km) to the south-west. Moat Way is an established industrial location and and M6 providing excellent access to national rail links to Birmingham occupiers include a range of local, regional and national the national motorway network. New Street and Leicester directly businesses including Red Gorilla, Day Labels, Crowfoots from Hinckley, with journey times of Carriers and Bachmann Europe. approximately 35 minutes and 17 minutes respectively. Reflex Labels, 29 Moat Way, Barwell, LE9 8EY

Description The property comprises a steel portal frame industrial building developed in the 1990s with ancillary offices, car parking and yard areas. The building benefits from steel profile sheet clad elevations to the industrial areas and full height brickwork elevations to the office element. The building is configured as two distinct industrial/production areas, incorporating two storey office accommodation laid out in an “L” shape fronting Moat Way. The basic specifications are as follows: • Clear eaves height of circa 5.8m to 6.3m • Concrete floors • Halogen lighting • Gas blower heaters • Five level access roller shutter doors • Two storey offices with carpeted floors, suspended ceilings and air conditioning • 10% roof lights Area The property has been measured in accordance with the RICS property measurement, 2nd edition and provides the following areas:

Description Sq M Sq Ft

Ground Floor Warehouse 4,815.97 51,839

Ground Floor Reception/Offices 274.43 2,954

First Floor Offices 692.31 7,452

Total 5,782.71 62,245

Site Area The site is approximately 1.08 hectares (2.68 acres) providing a low site cover of c.53%. Reflex Labels, 29 Moat Way, Barwell, LE9 8EY

Tenure Covenant information The property is held Freehold under Title Number LT106867. Reflex Labels produce a range of label and packaging products to a broad range of highly recognised brands across a wide variety of Tenancy information customer sectors. The company was established in 2002 and has grown year on year since then. The principal activity of the business is the manufacturing The property will be let upon completion to Reflex Plus Ltd (Company Number: 00021592) for a of self-adhesive labels and associated products / services to the UK food processing term of 20 years at a total rent of £327,000 per annum (£5.25 per sq ft). industry; however the company supplies many other sectors including healthcare, pharmaceuticals and hospitality. The lease will be subject to a tenant only break option on the 15th anniversary of the term, and 5 yearly RPI linked rent reviews with a collar and cap of 2% and 4% respectively. The lease will Reflex Plus Limited has the following financial highlights: be held FRI, with repairing obligations subject to a schedule of condition. Year to Date Turnover Pre Tax Profit Shareholder’s Funds The lease will be guaranteed by The Reflex Group Limited. 29/02/2020 £3,076,000 -£2,184,000 -£197,000

28/02/2019 £2,737,000 -£736,000 £2,090,000

28/02/2018 £2,787,000 £116,000 £2,874,000

The lease will be guaranteed by The Reflex Group Limited, who have the following financial highlights:

Year to Date Turnover Pre Tax Profit Shareholder’s Funds

29/02/2020 £114,171,000 £1,383,000 £25,177,000

28/02/2019 £105,269,000 £2,004,000 £23,734,000

28/02/2018 £86,112,000 £3,499,000 £21,395,000

The Reflex Group Limited has traded strongly through the Covid-19 pandemic and supplies its products to industries which have been largely unaffected, even benefitted, from the pandemic.

Half year management accounts are available upon request.

Market commentary The East Midlands industrial market remains one of the best performing sub-markets in the industrial sector and strong levels of demand from occupiers wishing to be located close to the heart of the UK’s motorway network has resulted in an upward pressure on rental values over recent years. Although the full impact of the Coronavirus crisis is yet to be realised, Leicester's good connectivity and high quality industrial stock continued to attract interest throughout 2020. Reflex Labels, 29 Moat Way, Barwell, LE9 8EY For further information please contact:

Energy Performance Certificates For further information or The property has an EPC rating of D98. The certificate is available upon request. to arrange a viewing please contact: VAT VAT will be payable on the purchase price as the sale cannot be treated as a Transfer of a Going Concern. Alex Darlington Associate Proposal 07904 630147 [email protected] We are instructed to seek offers in excess of £4,750,000 (Four Million, Seven Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 6.40% (assuming purchaser’s costs of 7.58%) James Yates and a capital value of £76.31 per sq ft. Director 07983 586654 [email protected]

Property ref avisonyoung.co.uk/15383 January 2021

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