Amazon UK Services Ltd Foundry Point | Industrial Estate

“Last Mile Delivery” Investment Opportunity FOUNDRY LANE | | | WA8 8TZ SECURED TO THE UNDOUBTED COVENANT OF AMAZON UK SERVICES LTD 1

Investment Summary

• Well let distribution warehouse investment opportunity

• Located in the heart of the North West with excellent access to the M57 and M62 Motorways and within 20 minutes’ drive from junction 21A of the M6

• Situated in a prominent location on the established Halebank Industrial Estate

• Recently refurbished to excellent specification providing 48,932 sq ft (4,545 sq m)

• A new lease to Amazon UK Services Ltd for a term of 5 years with effect from 22 June 2018. There is a break option upon expiry of the 3rd year

• Low passing rental of £216,432 per annum (£4.42 per sq ft)

• Amazon UK Services Ltd provide an undoubted covenant with a Dun & Bradstreet Rating of 5A1

• Freehold

• We are instructed to seek offers in excess of £2,465,000 (Two Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT

• A purchase at this level reflects an attractive net initial yield of 8.25% after purchaser’s costs of 6.37%

• Low capital value of £50.37 per sq ft 2

New Mersey Crossing Key

• • Eddie Stobart • Widnes Business Park TO M56 • Croda Europe • Scania • Travis Perkins • MCL Group RIVER • Prime Industries

A562 MERSEY • NRG Automation • Brenntag

3MG Multi-Model Gateway • Tarmac

AMAZON

TO M62 / 3

Location

Widnes is an industrial town in the , approximately 14 miles east of Liverpool, 7 miles west of and 26 miles south-west of Manchester.

The town benefits from excellent transport infrastructure as detailed below: Road Widnes is located within 4 miles of the intersection of the M62 and M57 motorways, with Junction 21a of the M6 motorway within 7 miles, making it an excellent strategic distribution location in which to serve the North West of and wider UK area. The connects Liverpool to Leeds via the M60 orbital motorway. Air Liverpool John Lennon Airport is within 5 miles of Widnes. It is a hub for Europe’s two largest low cost airlines, Easyjet and Ryanair, handling over 4.95 million passengers in 2017. There are regular scheduled flights to domestic and European destinations, as well as charter flights, to over 60 destinations. Rail Railway Station is approximately 10 minutes to the south of Widnes, situated on the West Coast Mainline (served by Virgin Trains) with an approximate journey time of 2 hours to Euston. M6 A1(M) Furthermore, Widnes station provides regional and local services with approximate journey times of 24 minutes to Liverpool and 30 minutes to Manchester.

M62 Sea M56 WIDNES The is ranked among Britain’s major container ports and is the country’s major gateway M6 M1 for trade with the United States and Canada, serving more than 100 global destinations. The Seaforth Container Terminal handles nearly 700,000 TEUS (20ft container units) a year and has recently benefitted M54 M42 from £400m worth of investment to create a new deep sea container terminal known as Liverpool2.

M5 M1 M40

M4

M3 M25 4 RESTON BLACBURN Drive Times

M62 / M57 Interchange 8 MINUTES J12 M56 12 MINUTES

Liverpool Airport 14 MINUTES CHORLEY M62 / M6 Interchange 20 MINUTES

Liverpool City Centre 25 MINUTES ROCHDALE BURY Manchester 30 MINUTES

BOLTON 30 MINUTES 8 Port of Liverpool 35 MINUTES WIAN OLDHA Birmingham 1 HOUR, 40 MINUTES London 3 HOURS, 30 MINUTES

AMAZON MANCHESTER A8 ASHTON Infrastructure Improvements ST HELENS THE NEW MERSEY GATEWAY PROJECT A Port of Liverpool A new 6 lane toll bridge over the STOCORT WARRINTON between the towns of Widnes and Runcorn, providing a valuable and fast link between the LIVERPOOL MANCHESTER SHIP CANAL M56 and M62 motorways and also from Widnes / A WIDNES Runcorn to / South Liverpool. S Manchester R Airport LIVERPOOL2 Liverpool RUNCORN John Lennon Peel Ports’ new deep water container terminal, Airport accommodating 95% of the global container vessels fleet. Liverpool 2 now enables the Port of Liverpool to house 2 Post Panamax vessels ELLESERE simultaneously, creating the capacity to handle the ORT next generation of container ships and enables the

Port of Liverpool to be the UK’s National gateway and trans-shipment for .

DEESIDE 5

TO M57M62 TO M56

A562 Road Hale

A562 TO LIVERPOOL Ditton Road

Hale Road

Foundry Ln

AMAZON

Halebank Road Hale Road

Foundry Ln

Situation

The property fronts on to Foundry Lane within the highly established with outline consent for a total of 2.7M sq ft of new buildings rising eventually Halebank Industrial Estate to the West of Widnes Town Centre. The to 3.5M sq ft. The highly successful 3MG is a unique piece of infrastructure property benefits from immediate access on to the A562 expressway with unrivalled features including access to UK deep sea ports via rail and providing a direct and fast link to the M62/M57 interchange to the North and road infrastructure. Liverpool City Centre to the West. Access to the M56 to the South has been greatly improved by the completion of the New Nearby occupiers include Eddie Stobart (who are currently constructing their new immediately to the East of the property. Head Quarters in Widnes), Tesco, Travis Perkins, Brenntag UK, Tarmac, Univar, NRG Automation, Croda and Scania amongst many others. The property is situated immediately adjacent to the Mersey-MultiModal Gateway (3MG), providing 530,000 sq ft of existing distribution warehousing 6

Description

The property comprises a modern, detached warehouse facility on a self-contained site. The property has recently been extensively refurbished to an excellent specification as follows: 47m average • Steel portal frame construction with profile sheet metal clad elevations • Pitched metal roof incorporating approximately 10% translucent panels • Eaves height of 7m • Lit and heated throughout • Two electrically operated level access loading doors • Good quality, two storey office accommodation within the envelope of the building

The property is situated on a secure, fully fenced and gated site. An extensive, concrete service yard is located to the rear of the property, with segregated staff and visitor parking available to the front. Both the service yard and parking areas benefit from separate vehicle access points from Foundry Lane.

Accommodation

The property has been measured in accordance with the RICS code of measuring properties (6th edition) and provides the following gross internal area:

Description Area (sq m) Area (sq ft)

Warehouse 4,112.09 44,262 GF Office 218.67 2,354 FF Office 215.12 2,316 Total Area 4,545.89 48,932

Site

The site extends to approximately 2.49 acres providing a site cover of approximately 45%. 7

Tenancy

The property is let to Amazon UK Services Ltd for 5 years with effect from 22 June 2018, at a passing rental of £216,432 per annum (£4.42 per sq ft).

The lease is held on FRI terms, subject to a Schedule of Condition.

The tenant benefits from an option to break on 22 June 2021, subject to giving 9 months prior written notice.

The tenant benefits from a rent free period until 28 November 2018 which will be topped up by the vendor.

Tenure

The property is held Freehold. 8

Covenant Status

Amazon UK Services Ltd is a UK subsidiary of the largest internet based retailer in the world.

Amazon UK Services Ltd (company number: 3223028) have a Dun and Bradstreet rating of 5A1. The company reported the following accounts:

31.12.2017 31.12.2016 31.12.2015 12 Months 12 Months 12 Months (000’s) (000’s) (000’s)

Turnover £1,987,697 £1,462,008 £946,458

Pre-Tax Profit £72,379 £24,265 £48,510

Tangible Net Worth £1,089,995 £479,902 £256,978 9

Investment Market Commentary

The North West industrial investment market had a very strong H1 2018, with a post-recession record of over £450m transacted (a 26% uplift on H1 2017). The North West industrial market continues to see unprecedented levels of investor demand, driven by strong occupational dynamics, a shortage of new development to meet ongoing market requirements and the continued growth of online retail.

Comparable transactions of note include:

Size Term Address Tenant Price Yield Date (sq ft) Certain

Walthew House Lane, Quoting Quoting Martland Park, 34,492 Wigan One 3.0 Under Offer £2.75m 7.18% Wigan

The Enza Building, Leacroft Road, 38,060 Roanza Ltd 5.5 £4.92m 4.76% Apr 18 Warrington

Unit 1, Point 5, Walker Park, 26,576 LH Safety Ltd 3.7 £1.70m 6.54% Jan 18 Blackburn

Footasylum, Stakehill Industrial Estate, 143,873 Footasylum 4.7 £10.33m 6.20% Nov 17 Middleton

Norton Healthcare, , 21,034 Norton Healthcare 5.0 £1.92m 6.75% Jun 17 Runcorn

Corrie Way, Bredbury Industrial Estate, 46,290 Brady Corporation 3.2 £3.26m 7.20% Jun 17 Bredbury 10

EPC

The property has an EPC rating of D(78).

VAT

The property has been elected for VAT and it is anticipated that the transaction will be by way of a Transfer of a Going Concern (TOGC).

Proposal

We have been instructed to seek offers in excess of £2,465,000 (Two Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive Net Initial Yield of 8.25% (assuming purchase costs of 6.37%) and a low capital value of £50.37 per sq ft.

Further Information

For further information or to arrange a viewing please contact: