Morrisons Distribution Warehouse NORTH • M26 2WX Freehold 01 STRATEGIC LOCATION NEXT TO JUNCTION 2 OF THE M66 AND INVESTMENT JUNCTION 18 OF THE M60 AND M62 SUMMARY

• Extensively refurbished prior to current occupation

• 151,423 sq ft on a 9 acre site (39% site cover) • A new lease has been signed by Wm Morrison Supermarkets Plc from 21st November 2018 to 21st April 2027

• Rental of £625,000 per annum reflecting a low rent of £4.13 psf

• The unit has been partially fitted as a cold store by the tenant

• Freehold

• Offers sought in excess of£7,814,000 , subject to contract and exclusive of VAT, assuming purchaser’s costs of 6.66%

• Attractive Net Initial Yield of 7.50% (based on reversionary rent)

• Low price of £52 psf 2 B622

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O RRO O B J AADD A U 5 8 B 8 5 IL 9 A E E 2 W A Y 621

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E D R A O R R Radcliffe O H T A R O D SW

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S 5 Y R E R E WIGAN Whitefield A N 18/4 U M U 5 A B L D 6 T 3 F 5 M66 0 O A58 6 R A 17 C M60 M66 SWINTON 14 19 A6053

13 A580 A56 Queens Road RADCLIFF E NEW ROAD

A665 A580 12 MANCHESTER B SALFORD U R Y

11 N E W 18/4

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G N I R M60M60

M60

A 6 A 6 7 5 M6 6 M62 7 02 LOCATION 03 SITUATION

The property is located 1.5 miles to the north east of Radcliffe town centre and 1.6 miles to the south west of Bury. It is situated just off Bury Point is located equidistant between Bury and Radcliffe. It Bury Road connecting Radcliffe to Bury. Bury is centrally located 11 miles to the north of Manchester City Centre. is accessed via an estate road at the intersection of Bury Road and Radcliffe Road. Directly to the East is a small industrial estate Bury is a strategic distribution location with excellent connectivity to the national motorway network, being approximately 0.2 miles from the located on Dumers Lane. Dumers Lane industrial estate is home M66 Motorway (Junction 2). With easy access to the motorway via the A58, Rochdale Road, the M66 provides immediate access to both to a mixture of retail manufacturers, self-storage companies and the M60 and M62 (junction 18) to the south. The towns excellent road communications allow a catchment of over 2.5 trade-counter occupiers. To the north east and south is mainly million people to be reached. residential and greenfield land.

Bury Metrolink is located approximately 1.5 miles from the subject property with a travel time of approximately 30 minutes. Bury Interchange is approximately 1.5 miles from the subject property and East Railway is 1.9 miles. is located 23 miles to the south with a drive time of 34 minutes and John Lennon Airport is located 36 miles to the west with a drive time of 52 minutes. For sea freight the port of Liverpool can be reached within 1.15 hours. 04 LOCAL OCCUPIERS

BURY SOUTH BUSINESS PARK

BRACKEN TRADE PARK

TELEFONICA

THUMBS UP PROPOSED RESIDENTIAL DEVELOPMENT SAMBRO BY COUNTYSIDE 05 DESCRIPTION

The property comprises a substantial refurbished warehouse unit located on a self-contained secure site of approximately 9 acres (3.64 ha).

The warehouse has an eaves height of 7.8m with bays accessed via a combination of 16 dock level doors and 1 drive in access door. Internally the warehouse has a concrete floor with profile sheet cladding to the roof and incorporated translucent light panels.

There is a separate two storey office building which has been refurbished to a high standard including perimeter trunking, suspended ceilings, passenger lift and air conditioning. It is accessed via a staircase and a ramp which overlooks the western side of the site.

The yard features a substantial concrete area with parking for 37 trucks and 139 cars and a self-contained detached vehicle maintenance unit. The property has a maximum yard depth of 125m.

The unit has been partially fitted out by the tenant as a cold store. 06 ACCOMMODATION

We understandunderstand that that the the property property provides provides the followingthe following approximate gross internal floor areas:

SQ FT SQ M

Warehouse 141,866 13,180

Offices 6,842 636 GATEHOUSE VMU 2,715 252

Total 151,423 14,068

The officeoffice content content is istherefore therefore approximately approximately 4.5%. 4.5%.

07 SITE 07 SITE WAREHOUSE The site has a total area of approximately 9 acres (3.64 The site has a total area of approximately 9 acres (3.64 hectares), providing a low density of approximately 39%. hectares), providing a low density of approximately 39%.

VMU OFFICES WAREHOUSE

For indicative purposes only 08 TENANCY 09 COVENANTS

A new lease has been signed by Wm Morrison Supermarkets Wm Morrison Supermarkets Plc plc which commences on 21st November 2018, expiring on Registered Company Number: 00358949 21st April 2027, subject to tenant only break options on 21st

April 2021 and 21st April 2024 upon 6 months’ written notice. D&B Rating: 5A1 If either break is exercised there will be a 3 month rent penalty payable by the tenant. If the tenant does not exercise their first 04/02/18 29/01/17 31/01/16 01/02/15 break option, they will receive a 3 month rent free period. Turnover £17,262,000,000 16,317,000,000 16,122,000,000 16,816,000,000

The new rental is £625,000 per annum, which reflects £4.13 Pre-tax Profit £380,000,000 325,000,000 217,000,000 (792,000,000) per sq ft, subject to 9 months’ rent free (to be topped up by Shareholder’s Funds £4,545,000,000 4,063,000,000 3,756,000,000 3,594,000,000 the vendor).

Wm Morrison Supermarkets Plc, trading as Morrisons, is the fourth largest supermarket chain in the UK. The The lease is subject to a schedule of condition. company was founded in 1899 by William Morrison and is listed on the London Stock Exchange, being part of t h e F T S E 1 0 0 I n d e x . T h e M o r r i s o n f a m i l y c u r r e n t l y o w n s a p p r o x i m a t e l y 1 0 % o f t h e c o m p a n y .

Until 2004, Morrisons store locations were primarily focused in the North of England, but with the takeover of Safeway in that year, the company’s presence increased significantly in the South of England, Wales and Scotland. The company has approximately 500 stores across England, Wales and Scotland.

Morrisons originally employed Bury Point to service their supermarket chain, however today the unit serves the convenience shop chain McColls, since signing a supply deal with Morrisons in 2017. McColls, which has 1,300 convenience shops and 350 newsagents across the country, will be exclusively supplied with around 400 Safeway own-brand products. The chain will also benefit from Morrisons’ fresh food offer, including its bakery and sandwiches, as well as benefitting from the Bradford-based supermarket’s corporate purchasing power. The revival of the Safeway brand comes more than 13 years after Morrisons bought the supermarket in a £3bn deal. 10 OCCUPATIONAL MARKET

The North West occupational market has remained buoyant, despite the result of the EU referendum, thanks to the continued growth of online sales which is driving strong occupier demand.

Online retailers have accounted for a significant proportion of take up in the North West since 2016, acquiring a combination of refurbished second-hand and new build stock. There is also a healthy local demand from both distribution and manufacturing sectors, particularly in North and East Manchester close to the M62.

The North West saw one of the highest growth rates in the UK in 2017 with prime rents now at £6.50 per sq ft on Trafford Park. This should see the rents for good quality secondary space rise as a result of the continued demand and lack of supply.

TENANT/ RENT/PRICE DATE ADDRESS SQ FT GRADE PURCHASER PER SQ FT Link 95, Hareshill Business Oct 18 McCormick 95,000 £6.35 A Park, Heywood

T2, Trafford Point, July 18 Globus 98,000 £6.50 A Manchester

July 18 Stakehill 104 Parcel Force 104,000 £4.85 B

The Depot, Belfield Mar 18 93,625 £4.25 B Ashton under Lyne Furnishings

Sigma 110, Mardix Feb 18 110,000 £6.25 A Group

Space 170, Feb 18 TJ Hughes 170,000 £4.17 C Liverpool

Target M62, Jan 18 Toolstation 148,748 £5.15 B Stakehill

Oct 17 Galaxy 173 SCM Home 173,000 £49.13 B

Unit A, Jul 17 Footasylum 143,873 £4.75 B Stakehill Industrial Estate

M1, Feb 17 Kleeneze 101,000 £4.50 B Heywood Distribution Park 11 INVESTMENT COMPARABLES

Aside from some uncertainty caused by the Brexit vote, the North West industrial investment market has remained robust with pricing achieved seen to be above Brexit levels in many cases. Demand has remained very strong for logistics assets due to the continued lack of stock. Those assets that have been sold or are available across the North West, are presenting investors and developers with very good opportunities for rental growth.

TERM DATE PROPERTY BUILT PRICE NIY PURCHASER CERTAIN

The Depot, Ashton 5.75 Quoting Quoting Nov 18 1990’s Under offer Under Lyne years 5.15m 7.25%

1.85 Sept 18 DHL Bardon 1992 £22m 5.50% Oxenwood years

Talke 16, Stoke on May 18 1990s 10 years £12.4m 6.46% Clearbell Trent

Proseat, Stakehill Jan 18 Industrial Estate, 1990s 6 years £6.28m 6.94% UBS M24 2SJ

Buffaload Logistics Dec 17 Ltd, Crewe, 1970s 9.5 years £11.38m 7.00% Atlantic Leaf CW1 6YY

Footasylum Plc, Rochdale Nov 17 Stakehill Industrial 1990 5 years £3.50m 6.20% Council Estate, Middleton 12 TENURE 13 EPC

Target M62, The property is held freehold. The Energy Performance Certificate rating is Sept 17 Stakehill Industrial 1980s 15 years £13.85m 5.25% IM Properties Estate, M24 2RP as follows: C(63).

Combined May 17 Independents Ltd, 1991 5 years £4.90m 7.42% Threadneedle Summit 86, Preston 14 VAT 15 CAPITAL

The property has been elected for VAT ALLOWANCES purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going No Capital Allowances are available. Concern (TOGC). 15 PROPOSAL

Offers sought in excess of£7,814,000 , subject to contract and exclusive of VAT, assuming purchaser’s costs of 6.66%. A purchase at this level will reflect an attractiveNet Initial Yield of 7.50% (based on reversionary rent) and a low price per sq ft of £52.

16 FURTHER INFORMATION

For further information, access to the Data Room or to arrange an inspection please contact:

John Adcock Tom Fairlie [email protected] [email protected] 0203 328 9088 0203 328 9084

John Barton Gary Chapman [email protected] [email protected] 0161 636 9202 0161 636 9202

Dowley Turner Real Estate LLP on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Dowley Turner Real Estate LLP has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all priced and rents are quoted exclusive of VAT. November 2018.