MIXED USE PORTFOLIO OPPORTUNITY COMPRISING OFFICE AND INDUSTRIAL ASSETS THROUGHOUT THE AREA WITH EXCELLENT VALUE-ADD POTENTIAL

FOR SALE TEES PORTFOLIO STOCKTON-ON-TEES EXECUTIVE SUMMARY

• 7 office & industrial assets strategically located on the Teesside regions’ most prominent commercial estates.

• On-going, clearly identifiable asset management opportunities.

• Rental growth potential and improving occupational market.

• Strong occupier mix including North Tees PCT, NHS, Arup, G4S, Sulzer Chemtech and Rexel UK with a total rent roll of £959,149 per annum.

• WAULT of 4.2 years to expiry (2.4 years to break), providing excellent value add potential through lease restructure.

• Offers in excess of £9.14M are sought, reflecting a net initial yield of 9.92% after standard purchaser’s costs at 5.8%.

• The opportunity to purchase individual assets from the portfolio may be entertained.

TEESTEESDALE VALLEY SOUTH PORTFOLIO BUSINESS PARK STOCKTON-ON-TEESTHORNABY PLACE, STOCKTON ON TEES TS17 6SA WEIGHTING BY INCOME WEIGHTING BY PRICE

£40,000 £430,000 £126,534 £1,135,000 £90,000 £970,000

£146,000 £240,750 £1,530,000 £2,145,000

£55,000

£610,000

£260,865 £2,320,000

TOP 5 TENANTS BY INCOME

Tenant Property % of income Creditsafe Rating

Onyx Group Ltd Onyx House 15.2% Low Risk Sulzer Chemtech Ltd Sulzer House 9.4% Very Low Risk

Anderson Barrowcliff LLP Waterloo House 8.7% Very Low Risk

G4S Secure Solutions (UK) Ltd Scotswood House 6.1% Very Low Risk

Rexel UK Ltd Crofton Road 5.7% Very Low Risk

TEESTEESDALE VALLEY SOUTH PORTFOLIO BUSINESS PARK STOCKTON-ON-TEESTHORNABY PLACE, STOCKTON ON TEES TS17 6SA LOCATION

Stockton-on-Tees is situated approximately 250 miles north Stockton-on-Tees is an astutely located commercial centre within both the immediate of , 58 miles north of and 35 miles south of urban conurbation and the wider region of the North East of . It has an . The town is an important sub-regional population of circa 85,000 people and a wider district population of approximately 190,000 centre and is a major focus for retail and leisure activity in the people, with an estimated 350,000 people living within 6 miles of the town centre. area. The Business Park is positioned to the east of the Newcastle Immediate access to the National Rail Network is provided by Thornaby Station, which town centre, within the curve of the . is approximately two to three minutes’ walk from the subject property. Thornaby Station Stockton is positioned at the intersection of the A19 and connects to and the . In turn this provides direct services to

A66 Trunk Road, which provide easy access to the (M), Leeds London’s Kings Cross (2 hours travel time) and Edinburgh (2 hours travel time). A1046 approximately 15 miles to the west. Travelling via the A19, it is possible to connect to Leeds, , and Newcastle A1046 within one hour’s drive time. A178 England Riverside Park Rd MORPETH A1027 A1027 London A1(M) A1046 A696 Newcastle Airport A19 A68 A19 TYNEMOUTH North Riverside Park Rd

Port of Tyne Snowdon Rd Forty Foot Rd North Rd Durham St A69 NEWCASTLE SOUTH Rd A178 SHIELDS A19 UPON TYNE Middlesbrough

Te e A66 s A68 65 A19 SUNDERLAND B rid Hartington Rd g e A A1(M) p 63 A139 p ro ac -LE-STREET h Teesway Rd A690 A1046 MIDDLESBROUGH DURHAM 62 A19 A1032 Newport Rd B6541 Rd A167 A181 Marston Rd A689 A690 61 A1046 Teesside A1305 Heywood St University 60 A688 Crofton Rd A689 B6541 A68 Teesdale South 59STOCKTON A66 Redheugh House A688 B1272 58 DARLINGTON MIDDLESBROUGH A1305 River Tees Waterloo House B1032 A66 A66 A171 Scotswood House 57 Queen’s A66 Stockton Rd 56 Campus Albert Park Durham Tees B6541 Valley Airport Crofton Road Hospital A19 Princeton Dr A19 A1(M) South Onyx House Thornaby A66 A1130 B1032 Sulzer House A684 A135 Teesside Shopping Park Haydock House

A1130

A19

TEESTEESDALE VALLEY SOUTH PORTFOLIO BUSINESS PARK STOCKTON-ON-TEESTHORNABY PLACE, STOCKTON ON TEES TS17 6SA STOCKTON-ON-TEES REGENERATION

There is significant development taking place Additionally, on the northern bank of the On the opposite side of the River Tees on Lane is already a vibrant and popular in Stockton-on-Tees and the surrounding area. River Tees, Dunelm Homes have planning NorthShore, Muse Developments in conjunction hub for business, with a further 33 acres Directly east of , a consent to develop 60 houses and 114 riverside with Stockton Borough Council are currently identified for expansion of the estate, adjacent scheme is underway to bring 117 new homes apartments, increasing critical mass and adding building a £300M mixed use scheme including to the A19 trunk road. Planning consent for a to the city centre. Working in partnership with further vibrancy to the location. Such types of commercial and residential accommodation. mix of B1, B2/B8 and A3 development totalling the Stockton Borough Council and the Homes development are transforming the town centre GVA are involved in advising Muse and we are 340,000 sq ft has recently been granted. and Community Agency, Housing is with new and exciting places for people to aware that the scheme is targeting rents of engaging with the local community to provide live in the heart of Stockton, whilst expanding £17 - £18 per sq ft for Grade A office space on a skills, employment and education opportunities on the local talent pool for the surrounding pre-let basis. The first office building extending to stimulate the on-going development of a business parks. to an area of 43,000 sq ft, has been pre-sold sustainable and vibrant community in the area. to Thirteen Group Housing Association for a price exceeding £165 per sq ft, with the ‘Fusion Hive’, a new innovation centre, also nearing completion.

TEESTEESDALE VALLEY SOUTH PORTFOLIO BUSINESS PARK STOCKTON-ON-TEESTHORNABY PLACE, STOCKTON ON TEES TS17 6SA MARKET COMMENTARY

Offices Industrial Comparable evidence – Lettings The regional offices sector is currently The industrial occupier market throughout the We are aware of the following lettings evidence which is comparable to the subject: benefiting from a trio of positive factors; North East is buoyant. Key areas such as the automotive, manufacturing, distribution and Offices - Occupier demand is improving and corporate offshore sectors have seen significant growth. The best comparable evidence for office lettings is within the subject property, though we are aware requirements are once again focussing on of the following from the surrounding area: the North East / Teesside region, due to The A19 corridor in particular, which acts as the low labour costs and sought after skillsets principal north-south route through Teesside to Achieved Property Size Comments (predominantly engineering, IT, sciences and the Scottish borders, is historically strong and Rent (psf) chemical processing). highly competitive, particularly for distribution Tower House, Let to DTA Consulting Engineers for 5 years from and trade uses. A lack of new development 1,546 £11.65 - The recession saw all speculative through the recession has caused an imbalance Teesdale South. July 2015 – no rent free was granted. development curtailed in the Teesside region. in the net supply/demand position and the Progress House, Fully let to Johnson Matthey PLC for a term This has led to a shortage of good quality availability of good quality, mid-sized to larger 14,150 £11.66 Teesdale Business Park. of 10 years from February 2015. accommodation, which is now driving industrial stock is now becoming restricted. rental growth. Construction costs and land Demand, meanwhile, continues to improve Cedar House, Let to Sanlam Life & Pensions UK Ltd on values have continued to rise and therefore 1,500 £13.42 and asking rental levels are rising as tenant Teesdale Business Park. a new 5 year lease. speculative schemes still do not generate incentives decrease. attractive appraisal outcomes, meaning that this shortage is likely to remain for some time. Rents in the region have been driven up by circa 20% over the last 12 months and there Industrial - Permitted Development Rights allowing are currently no pipeline industrial scheme Achieved conversion from B1 offices use to C3 Property Size Comments proposed in the Teesside region to stem this Rent (psf) dwellinghouses has taken a significant supply / demand imbalance. proportion of low grade to good quality Dated industrial unit on Portrack Lane, under offer to leisure operator with competition for the secondary stock out of the market for good, Unit 1, 20,286 £6.00 space. The landlord withdrew prior to letting as Portrack Retail Park. placing further pressure on the already the agreed rent was felt to be too low. 6 months’ dwindling availability. Teesdale business rent free offer by way of incentive park is host to ’s Stockton Campus and Stockton Riverside College, Same estate as the industrial elements of the Unit 2, subject properties. Fully let to Rinus Roofing 7,168 £5.50 making it an ideal ideal location for this North Tees Industrial Estate. Supplies Limited for a new 10 year term with activity and a number of conversion schemes break at year 5. 3 months’ rent free granted. have already completed. Units A/B Axis 19, Pre-let to AIS of spec build unit, 10 year term 28,000 £6.50 Tyne Tunnel Trading Estate. with no breaks. Record rent on estate.

Agreement for lease signed, due to complete Unit 3 20,000 £5.75 early June. Straight 10y term, achieved 10% Delta Bank Road, Gateshead. above asking rent.

Cherry Blossom Way, Off market transaction, under offer to internet 100,000 £5.50 Sunderland. retailer.

TEES VALLEY PORTFOLIO STOCKTON-ON-TEES INVESTMENT COMPARABLES

Industrial

Price Date Address Description Lease Terms Yield Comments & NIY

Fully let to Rinus Roofing Supplies Ltd for 10 Unit 2, Refurbished 7,168 sq ft unit nearby £450k Relatively new covenant. 3 months’ rent free incentive years with break at year 5 from July 2015 at 8.38% North Tees Industrial Estate. Portrack Lane. Nov 2015 granted on occupation. £5.50 per sq ft.

Modern unit, 16% site coverage in Unit 4, Fully let to DPD Group UK Limited at a rent of £2.9M good location. 33,011 sq ft (+29,998 7.17% Yard was rentalised. Monkton Business Park, Hebburn. £220,000 (£6.66 per sq ft). 8 years unexpired. Sept 2015 canopies).

Calsonic Kansei Unit, Offices are let but not occupied and the tenant is Modern 101,825 sq ft warehouse Fully let to Calsonic Kansei UK Limited, Passing £4.5M Doxford Technology Park, 8.40% seeking to sub-let. Calsonic were unable to find with 36,202 sq ft of offices abutted. rent of £400,000 per annum. 5.5 years U/X. July 2015 Sunderland. alternative space.

Fully let to Hermes Parcelnet Limited with Hermes Parcelnet, Modern 28,220 sq ft unit nearby £1.85M guarantees from Freemans PLC and Grattan 7.25% Site coverage is 21% - rent applied to excess yard areas. Boldon Business Park (A). A19 with large service yard. June 2015 PLC. 6 years U/X.

Offices

Price Date Address Description Lease Terms Yield Comments & NIY

We are aware that the property is under offer above the Building, 36,350 sq ft office building Royal Mail Group plc for 10 years from Nov Currently asking level. The tenant benefits from a 9 mth incentive Doxford International Business constructed in mid 1990s over 3 2012 with tenant break option in Nov 2017 at marketed at 9.00% if they do not break, therefore the effective net initial Park, Sunderland floors, with £390,000pa, reflecting £10.73 sq ft. £4.1M yield equates to 8.4%.

The property is fully let to NHS Property 15,964 sq ft modern office unit, The purchaser offered £1.6M (9.42%), however, this Teesdale House, Services Limited until June 2023. The rent £1.55M located centrally on the 9.72% was reduced by £50k to reflect vendor’s proposed Teesdale Business Park passing equates to £9.99 per sq ft with a fixed June 2015 Teesdale estate timescales to completion. uplift to £13.78 per sq ft. TBO in June 2018.

98,268 sq ft multi-let office on Dunedin House, 62% let to tenants including Secretary of State £4.75M 8.54% Significant capex required throughout common parts the same estate as the subject, Teesdale Business Park for the Environment, Atkins and RBS. August 2014 Triple Net and office suites. constructed 1991.

Mid 1990’s office building on House, 25 years to Environment Agency from June Located on eastern (city centre) edge of rate 1980’s established business park extending £4.135M Skinnerburn Road, 1995 at £350,000 pax (£12 per sq ft) FR & 8% early 1990’s business park. Government tenant. Asking to 26,580 sq ft with garage store of June 2014 Newcastle Business Park I terms with 5 yearly OM reviews (6.25 years UT). price was £3.675M. 6,553 and 195 CPS. Freehold A review of the individual properties comprising the portfolio follows:

TEES VALLEY PORTFOLIO STOCKTON-ON-TEES EXECUTIVE SUMMARY

• An estate of three modern offices extending to 50,355 sq ft with generous parking provision on an attractive Riverside plot.

• Strategically located on Teesdale Business Park, the prime office location on Teesside.

• Multi-let to a strong tenant mix including North Tees PCT, Stockton-on-Tees Teaching NHS, Arup and G4S, with a total rent roll of £628,149 per annum.

• WAULT of 4.1 years to expiry (2.2 years to break), providing excellent asset management potential through lease restructure.

• Newly-refurbished common parts across all three buildings, with excellent potential alternative use value through conversion to residential use.

• Offers in excess of £5.6M are sought for the freehold interest reflecting a net initial yield of 10.60% after deduction of standard purchaser’s costs of 5.8%.

TEESDALE SOUTH BUSINESS PARK REDHEUGH HOUSE • WATERLOO HOUSE • SCOTSWOOD HOUSE THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA SITUATION

Teesdale Business Park is situated to the south Durham University’s Queens Campus and of Stockton town centre on the River Tees Woolfson Research Institute are located on the and extends to over 700,000 sq ft of office, estate, alongside Stockton Riverside College, education, leisure and residential space. It is creating demand for retail and leisure use estimated that 4,500 people are employed alongside residential accommodation, the on the park and it is widely recognised as the conversion potential for which underpins capital commercial heart of Teesside in addition to values across Teesdale Park. being one of the major business centres in the north east. Major occupiers on the park Teesdale South is located at the south eastern include Inland Revenue, Santander, DVLA, Swift edge of Teesdale Business Park, benefitting Insurance, Barclaycard, Siemens, Atkins, the from an attractive vantage point over the River , First Choice Holidays Tees and immediate access from the A66 and plc, Cummins Ltd, Halcrow Group, , Allied A1130. Stockton Town centre is located within Bank and Bond Dickinson solicitors. a short walking distance to the north, with nearby amenities including a café, gymnasium and .

TEESDALE SOUTH BUSINESS PARK THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA REGIONAL ECONOMY &

NEWCASTLE CITY CENTREROYAL MAIL ADMIRAL HOUSE NORTH SHORE DEVELOPMENT CUBIC STOCKTON TOWN CENTRE SANTANDER RBS

NHS ATKINS GLOBAL TEESDALE BUSINESS PARK

CASTLEGATE HM REVENUE & ALLIED BANK SHOPPING CENTRE CUSTOMS SAINSBURYS

DURHAM UNIVERSITY GROSVENOR CASINO MECCA BINGO

BRIDGE ROAD RETAIL PARK RIALTO COURT STUDENT RESIDENTIAL SCHEME A1305

New residential development with consent for 174 dwellings SCOTSWOOD HOUSE

WATERLOO HOUSE

REDHEUGH HOUSE To A19 North & South

To A1 North & South A66

TEESDALE SOUTH BUSINESS PARK THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA ACCOMMODATION

The property provides the following net internal areas: Areas (NIA) Building Floor sq m sq ft Ground 196.95 2,120 First 98.1 1,056

Redheugh House Redheugh Second 244.70 2,634 House Third 244.70 2,634 Total 914.97 9,849 Ground 464.50 5,000 First 464.50 5,000 Waterloo Second 464.50 5,000 House Third 485.50 5,226 Total 1879.00 20,226 Ground 464.50 5,000 First 463.20 4,986 Scotswood Second 491.81 5,294 House Third 464.50 5,000 Total 1884.01 20,280 4,677.98 50,355 Waterloo House Waterloo

Redheugh House Waterloo House Scotswood House Scotswood House Scotswood

TEESDALE SOUTH BUSINESS PARK THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA TENANCY

Tenancy schedule details below:

Redheugh House

Tenant Location Size sq ft Term Comm Break Review End Rent Notes

1 year vendor’s rent, rates and service charge Vacant Part Ground 1,000 - - - - - £12,000 guarantee at £12.00 per sq ft

Reversionary lease out for signing NHS, North Tees Primary Care Trust Part Ground 1,120 10 Years 15/11/2004 N/A N/A 14/11/2014 £14,800 ending 6/4/18

Four M Drywall Ltd Part First 1,115 3 Years 01/01/2016 N/A N/A 31/12/2018 £13,120

Stockton-on-Tees Teaching NHS Part First 1,346 10 Years 07/04/2008 N/A 06/04/2018 06/04/2018 £18,414

Ove Arup and Partners International Ltd Part Second 1,115 5 Years 27/04/2014 27/04/2017 27/04/2019 27/04/2019 £13,200

Tees Active Ltd Part Second / Whole Third 4,153 10 Years 01/03/2010 N/A N/A 28/02/2020 £55,000

£126,534 Waterloo House

Tenant Location Size sq ft Term Comm Break Review End Rent Notes

1 year vendor’s rent, rates and service Vacant Ground Floor 5,000 - - - - - £57,500 charge guarantee at £11.50 per sq ft

Currently Under Offer. Vendor will offer Vacant Part First 3,000 - - - - - £38,400 a 1 year rent. Rates and service charge guarantee which falls away once lease agreed.

Vintage Investments Ltd Paul Adams Part First 2,000 10 Years 04/02/2012 04/02/2017 04/02/2017 03/02/2022 £20,340 Steve Hodgson

Anderson Barrowcliff LLP Second Whole & Attic 5,000 7 Years 01/06/2011 N/A 01/06/2016 31/05/2018 £68,750

Anderson Barrowcliff LLP Part Third 1,100 7 Years 01/06/2011 N/A 01/06/2016 31/05/2018 £14,500

BGP Consulting Ltd Part Third 4,126 10 Years 24/06/2013 24/06/2018 24/06/2018 23/06/2023 £41,260 Liability Partnership

£240,750

TEESDALE SOUTH BUSINESS PARK THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA TENANCY

Scotswood House

Tenant Location Size sq ft Term Comm Break Review End Rent Notes

Plimsol Publishing Ltd Whole Ground 5,000 10 Years 17/12/2011 16/12/2016 17/12/2016 16/12/2021 £76,500

Sayu Ltd Part First 2,669 5 Years 01/10/2012 N/A 01/10/2017 30/09/2017 £35,200

Tenant receives 3 months rent free Tindles LLP Part First 2,317 9 Years 11/06/2011 10/06/2017 11/06/2017 10/06/2020 £30,225 if break not activated.

Washington Inventory Services Limited Part Second 1,200 10 Years 01/12/2011 30/11/2016 01/06/2016 30/11/2021 £13,200

1 year vendor’s rent, rates and service charge Vacant Part Second 300 - - - - - £3,450 guarantee at £11.50 per sq ft.

Plimsol Publishing Ltd Part Second 1,394 10 Years 24/03/2011 16/12/2016 16/12/2016 16/12/2021 £17,500

Rent is 13,145.00 until 20/3/16 Support IT (UK) Ltd Part Second 2,400 10 Years 20/03/2015 20/03/2020 20/03/2020 19/03/2025 £26,290 Vendor will top up

G4S Secure Solutions (UK) Ltd Whole Third Plus Attic 5,000 5 Years 01/09/2015 01/09/2018 01/09/2019 31/08/2020 £58,500 Third consecutive lease on the estate

£260,865

Pricing Allocation We have allocated pricing of £5.6M to this element of the portfolio, equating to a net initial yield of 10.60% after purchaser’s costs of 5.8%.

TEESDALE SOUTH SOUTH BUSINESS BUSINESS PARK PARK THORNABY PLACE, PLACE, STOCKTON STOCKTON-ON-TEES ON TEES TS17 6SA TS17 6SA COVENANT

Shareholder’s Name Year End Turnover PTP Funds Creditsafe Rating

Anderson Barrowcliff LLP 31/03/2015 - - £663,867 90 - Very Low Risk

BGP Consulting Limited 31/03/2015 - - £362,920 71 - Very Low Risk

Four M Drywall Limited 31/12/2014 - - -£122,330 13 - High Risk

G4S Secure Solutions (UK) Limited 31/12/2014 £223.99M -£2.59M £40.82M 55 - Low Risk

North Tees Primary Care Trust Central Government funded

Ove Arup & Partners International Limited 31/03/2014 £497.13M £43.45M £50.07M 83 - Very Low Risk

Plimsoll Publishing Limited 31/12/2014 - - £752,571 75 - Very Low Risk

Sayu Limited 31/03/2014 - - £159,473 95 - Very Low Risk

Stockton-on-Tees Teaching NHS Central Government funded

Support IT (UK) Limited 31/03/2014 - - £257,606 66 - Low Risk

Tees Active Limited Charitable leisure management organisation funded by Stockton-onTees Borough Council

Tindle’s LLP 31/03/2014 - - £88,588 54 - Low Risk

Vintage Investments Limited 28/02/2014 - - -£39,503 56 - Low Risk

Washington Inventory Service Limited 31/03/2014 £6.03M £663,386 -£72,529 60 - Low Risk

TEESDALE SOUTH BUSINESS PARK THORNABY PLACE, STOCKTON-ON-TEES TS17 6SA EXECUTIVE SUMMARY

• Prominent industrial unit located on Teesside’s best performing commercial estate.

• Fully let to the strong covenant of Rexel UK Limited at a low rent passing of £3.85 per sq ft.

• Low site coverage and excellent access to the A1046 and A19.

• Value add potential through lease regear with additional rental upside.

UNITS 1 & 2 CROFTON ROAD PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2QZ SITUATION

The subject property is located to the southern side of the A1046 Portrack Lane, with direct access from Crofton Road to the west. The immediate vicinity features a number of prominent, well-established industrial and trade counter units with a strong tenant mix, including Arco, InBond Limited, Wm Morrisons Distribution, Dickens Self-Storage, Teesside Electrical Supplies and Interflon UK.

A19 North & South

UNITS 1 & 2 CROFTON ROAD

Crofton Road

Portrack Lane

A1046

Malleable Way

UNITS 1 & 2 CROFTON ROAD PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2AD TENANCY / AREA SCHEDULE COVENANT STRENGTH

The property provides the following net internal areas: Rexel UK are a division of the world’s leading business to business distributor of electrical installation supplies. The wider group operates in 37 countries, with a Areas (NIA) network of over 2,100 stores, employing over 28,000 people. Tenant sq m sq ft Term Comm Break Review End Rent The subject property trades as Newey & Eyre, a UK sub-brand of the Rexel group Rexel UK Ltd 1,328.51 14,300 10 years 27/06/2014 27/06/2019 27/06/2019 26/06/2024 £55,000 pa which was established in 1926 with currently over 160 stores and 2,000 employees throughout the country. Newey & Eyres focus on electrical wholesaling and have expanded into producing and selling their own brand Newlec products as well as developing a strong online presence.

The latest accounts information is detailed below:

Shareholder’s Creditsafe Name Year End Turnover PTP Funds Rating

31/12/2014 £811.32M £30.87M £86.81M Rexel UK 87 Limited 31/12/2013 £808.48M £5.49M £86.40M Very Low Risk 31/12/2012 £810.54M £29.99M £63.00M

Pricing Allocation We have allocated pricing of £610,000 to this element of the portfolio, equating to a net initial yield of 8.50% after purchaser’s costs of 5.8%.

UNITS 1 & 2 CROFTON ROAD PORTRACKTEESDALE SOUTH INTERCHANGE BUSINESS BUSINESSPARK PARK THORNABYSTOCKTON-ON-TEES PLACE, STOCKTON TS18 2AD ON TEES TS17 6SA EXECUTIVE SUMMARY

• Modern, high specification office building in a commercially established location extending to 13,126 sq ft and benefiting from high visibility from the A19.

• Fully let to the strong covenant Onyx Group Ltd, with a WAULT of 3.52 years and a total rent roll of £146,000 per annum.

• Used as a work place recovery unit and therefore benefits from extensive security, IT and service infrastructure, a strong tenant covenant who are highly committed to the building, minimal wear and tear and markedly reduce lifetime maintenance costs.

ONYX HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2AD SITUATION

Portrack Interchange Business Park is located two minutes north-east of Teesdale Business Park, and is a principle commercial hub in Teeside combining offices, trade counter, retail and industrial uses. The estate boasts a roster of national commercial occupiers, including Screwfix, B&Q, , Halfords and Hilti.

Being located immediately adjacent to the junction of the A19 and A1046, Portrack Interchange benefits from excellent access to the regional road network including the A1(M), as well as close proximity to Stockton Town centre which boasts nearby amenities including A19 South a café, gymnasium and supermarket.

Onyx House is situated on the north eastern edge of the business park in a secure yard with excellent on-site parking provision equating to A19 North a ratio of one space to 179 per sq ft. The site ONYX HOUSE features a helipad, reflecting the current use of the property. Cheltenam Road

A1046

Sedgefield Way Portrack Lane

ONYX HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2AD H olm e Hou se R oad ACCOMMODATION

The property provides the following net internal areas: Areas (NIA) Floor sq m sq ft Ground 316 3,400 First 452 4,863 Second 452 4,863 Totals 1,220 13,126

TENANCY

The building is fully let to Onyx Group Ltd on full repairing and insuring terms for 10 years from the 16th June 2009, expiring on the 15th June 2019. Passing rent is £146,000 reflecting £11.12 per sq ft.

The lease is guaranteed by Onyx Internet Limited.

ONYX HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2AD COVENANT STRENGTH

Launched in 1994, Onyx has matured into one of the leading providers of IT infrastructure and support services across the UK. Since its inception, the company has grown from a small regional IT company to a national technology provider, working in alliance with a number of internationally recognised technology companies such as Microsoft, Cisco and IBM. Today its five data centres and six workplace recovery facilities are spread across the country from Glasgow to London. In 2013 the company was awarded a five year contract for the management of Edinburgh Airport’s IT infrastructure. Other clients include Kwikfit, Sage and Inverhouse Distillers. Th eoverall group has an annual turnover of £20 million. We have detailed the tenant’s financial information below:

Shareholder’s Year End Turnover PTP Funds Creditsafe Rating

31/12/2014 £2.08M £48,039 £6.32M 66 (B) 31/12/2013 £1.99M £24,999 £6.28M Low Risk 31/12/2013 £1.29M (£1.16M) £6.27M

Pricing Allocation We have allocated pricing of £1.53M to this element of the portfolio, equating to a net initial yield of 9.02% after purchaser’s costs of 5.8%.

ONYX HOUSE PORTRACKTEESDALE SOUTH INTERCHANGE BUSINESS BUSINESSPARK PARK THORNABYSTOCKTON-ON-TEES PLACE, STOCKTON TS18 2AD ON TEES TS17 6SA EXECUTIVE SUMMARY

• Modern office unit with ancillary industrial on highly active commercial estate.

• Fully let to the excellent tenant covenant of Sulzer Chemtech (UK) Limited.

• Low average rent with excellent regear potential.

SULZER HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2SG SITUATION

Sulzer House is located to the northern side of the A1046 Portrack Lane, accessed from Holme House Road to the east. The immediate vicinity features a number of prominent, well-established industrial and trade counter units with a strong tenant mix, including JT Dove, B&G, Pirtek, Toolstation, Hilti, , The Range, Halfords and Stockton Borough Council.

A19 South

A19 North

Cheltenam Road

A1046

SULZER HOUSE

Sedgefield Way Portrack Lane

SULZER HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2AD TENANCY / AREA SCHEDULE COVENANT STRENGTH

The property provides the following net internal areas: Sulzer Chemtech is a global player in the fields of process technology and separation towers, as well as two component mixing and dispensing systems. Areas (NIA) The company is built on innovation and technological breakthroughs in their Tenant Term Comm Break Review End Rent sq m sq ft respective industries, as well as a worldwide manufacturing and service presence. Sulzer Chemtech (UK) Limited 753 8,105 10 years 14/01/2008 - - 13/01/2018 £90,000 pa Sulzer Chemtech operate in a number of industries, including oil & gas, chemical processing, power generation, water, paper, healthcare and offers expertise to any industrial process requiring efficient pumping, mixing and separation technologies and specialised machine maintenance. The Sulzer Group has a worldwide turnover of 3.16 Bn CHF and 15,500 employees.

The latest accounts information is detailed below:

Shareholder’s Creditsafe Name Year End Turnover PTP Funds Rating

31/12/2014 £22.59M £2.89M £3.28M Sulzer Chemtech 89 (UK) 31/12/2013 £23.13M £3.06M £3.38M Very Low Limited Risk 31/12/2012 £19.82M -£35.00k £1.01M

Pricing Allocation We have allocated pricing of £970,000 to this element of the portfolio, equating to a net initial yield of 8.75% after purchaser’s costs of 5.8%

SULZER HOUSE PORTRACKTEESDALE SOUTH INTERCHANGE BUSINESS BUSINESSPARK PARK THORNABYSTOCKTON-ON-TEES PLACE, STOCKTON TS18 2AD ON TEES TS17 6SA EXECUTIVE SUMMARY

• High quality, modern industrial unit located on Teesside’s best performing commercial estate • Fully let to Resapol Limited at a low rent passing of £4.47 per sq ft, presenting excellent opportunities for rental growth • Significant capital expenditure incurred by the tenant, demonstrating their Shareholder’s Creditsafe commitment to the building Name Year End Turnover PTP Funds Rating • Value add potential through lease regear 31/12/2014 £22.59M £2.89M £3.28M Sulzer Chemtech 89 (UK) 31/12/2013 £23.13M £3.06M £3.38M Very Low Limited Risk 31/12/2012 £19.82M -£35.00k £1.01M

HAYDOCK HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2SL SITUATION

Haydock House is located to the northern side of the A1046 Portrack Lane, accessed from Holme House Road to the east. The immediate vicinity features a number of prominent, well- established industrial and trade counter units with a strong tenant mix, including JT Dove, B&G, Pirtek, Toolstation, Hilti, Greggs, The Range, Halfords and Stockton Borough Council.

A19 South

A19 North

Cheltenam Road

A1046

HAYDOCK HOUSE

Sedgefield Way Portrack Lane

HAYDOCK HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2SL TENANCY / AREA SCHEDULE

The property provides the following net internal areas:

Tenant Location Size sq ft Term Comm Break Review End Rent

Resapol Limited Haydock House 8,956 10 years 11/02/08 N/A 11/02/13 11/02/18 £40,000 pa

HAYDOCK HOUSE PORTRACK INTERCHANGE BUSINESS PARK STOCKTON-ON-TEES TS18 2SL COVENANT STRENGTH

Resapol are the leading national independent distributors of construction chemicals in the UK, operating a network of 7 depots and specialising in high quality brand products from a vast range of worldwide manufacturers.

Continued growth in the construction industry alongside an increasing reliance on high performance chemical products has witnessed Resapol expand their accounts, technical sales and marketing division into a new head office location, as well as take on new warehouse space.

The latest accounts information is detailed below:

Shareholder’s Name Year End Turnover PTP Funds Creditsafe Rating

31/12/2014 - - £331.17k 40 Resapol Limited 31/12/2013 - - £144.02k Moderate Risk 31/12/2012 - - £219.25k

Pricing Allocation We have allocated pricing of £430,000 to this element of the portfolio, equating to a net initial yield of 8.80% after purchaser’s costs of 5.8%

HAYDOCK HOUSE PORTRACKTEESDALE SOUTH INTERCHANGE BUSINESS BUSINESSPARK PARK THORNABYSTOCKTON-ON-TEES PLACE, STOCKTON TS18 2SL ON TEES TS17 6SA INVESTMENT CONSIDERATIONS VAT

We consider the following points are of particular relevance when assessing the The property has been elected for VAT investment. and it is envisaged that the transaction will be treated as a TOGC. • Prominent mixed use portfolio of strategically located assets throughout the best commercial estates in Teesside. EPC • Excellent transport links and in close proximity to a well-educated workforce pool and university campus. EPCs available on request. • Strong tenant mix including public sector and blue chip occupiers, with value-add opportunities through lease restructure and break up sales. • Strong likelihood of rental growth throughout the portfolio, with a number of approaching lease efforts affording prospects for near term income development. • Possibility of acquiring individual assets from the portfolio.

FURTHER INFORMATION PROPOSAL Our client is seeking offers in excess of £9.14M (Nine Million, One Hundred and Forty Thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.92% after deduction of standard purchaser’s costs of 5.8%. Luke Symonds Direct Dial: 0191 269 0095 Email: [email protected] Simon Beanland Direct Dial: 0191 269 0512 TEES VALLEY PORTFOLIO Email: [email protected] STOCKTON-ON-TEES Lynsey Underwood GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary Direct Dial: 0191 2690093 permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. Email: [email protected] 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. January 2016.

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