investment sale

INdustrial investment 2 Brunel Way, Segensworth East, , , PO15 5TX industrial Investment 2 Brunel Way, Segensworth East, Fareham, Hampshire, PO15 5TX

LOCATION AND SITUATION M4 READING LONDON M25 Fareham is an established commercial location situated Newbury M4 between the cities of and , in the BRACKNELL heart of the south Hampshire conurbation. The town has a M25 district population of around 107,000 inhabitants and there are M3 estimated to be circa 945,000 people living within 20km of the Andover BASINGSTOKE GUILDFORD M23 town centre. A3 M3 CRAWLEY Winchester The property is located to the west of Fareham town centre, on the Segensworth East industrial estate. Segensworth is a substantial Fareham industrial area accommodating a mixture of international, M27 national and local companies involved in manufacturing, high SOUTHAMPTON BRIGHTON technology, logistics and distribution. Chichester WORTHING PORTSMOUTH The location benefits from excellent road communications. BOURNEMOUTH Junction 9 of the M27 motorway can be accessed within 1.6km (1 mile) via the A27 Southampton Road. The M27 provides a ISLE OF WIGHT direct link to Portsmouth (18 km/11 miles) and the A3(M)/A3 (20 km/12½ miles) to the east, and to Southampton (12 km/7 miles) DESCRIPTION and the M3 motorway (17 km/11 miles) to the west. The property, constructed in 1989, comprises a detached purpose built warehouse unit of steel portal frame construction The property is prominently situated on the Segensworth East with profile steel clad elevations under a profiled steel panel estate, on the north-eastern side of the junction of Brunel Way roof, incorporating intermittent roof lights. The warehouse has and Barnes Wallis Road, immediately south of the main railway a clear span of circa 56 metres width, with an eaves height line. Occupiers in the immediate vicinity include Palmer & of approximately 9 metres. The property benefits from four Harvey, Elta Fans, Southern Gas and Percival Aviation. electrically operated steel roller shutter doors, each 3.7 metres wide and 4.8 metres high. Two storey office accommodation is contained within the front elevation of the building. This provides administrative offices, kitchen and WC facilities, staff rest rooms and associated ancillary areas. The first floor offices are fitted with suspended ceilings incorporating recessed lighting and carpeted floors.

Externally, the property benefits from a secure service yard to the rear, which contains additional ancillary accommodation and a vehicle wash. There is separate car parking to the front providing approximately 28 car parking spaces. A mobile telecommunications mast and associated base station have been erected in the north-west corner of the site.

The site area is approximately 1.14 hectares (2.8 acres), providing a low site cover ratio of approximately 31%.

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Titchfield Park

industrial Investment 2 Brunel Way, Segensworth East, Fareham, Hampshire, PO15 5TX

ACCOMMODATION The approximate gross internal floor areas of the property are as follows:

Gross Internal Area Floor sq m sq ft Warehouse 3,295 35,467 Loading Area 34 366 Offices 223 2,400 Total 3,552 38,233

PLANNING Planning permission was granted on 10th May 1989 for the “erection of storage warehouse with offices and workshop”. TENANCY AND CURRENT INCOME The property is let on full repairing and insuring terms incorporating an upward only rent review as follows: Lease Expiry Current Income Tenant Guarantor Term Rent (Tenant Break £pa £psf £psm Review Option) Crown Records Crown Worldwide 10 years from 24.01.2015 23.01.2020 £225,000 £5.88 £63.34 Management Limited Holdings Ltd 24.01.2010 (23.01.2015) Approximately 25% of the warehouse area is sub-let to Pickfords Limited.

The telecommunications mast located in the north-west corner of the site was previously sub-let to O2 (UK) Limited. The sub- lease expired in January 2010 and the sub-tenant is effectively “holding over” pending the agreement of a new sub-lease.

Copies of the lease, the sub-leases and related documentation are available on request.

TENANT COVENANT Crown Records Management Limited (Company No. SC162101) has been providing records management services since 1983 and currently operates from over 30 locations throughout the UK, employing approximately 250 people.

The Company is a division of Crown Worldwide Group, which was established in 1965. Crown Worldwide Group, based in Hong Kong, has grown to become one of the largest private companies in the field of document storage, operating across 50 countries from over 200 management centres. The Group employs over 4,000 full time staff plus a large number of contract personnel. The company entered the UK market in 2007 with the purchase of the records management business of Pickfords.

The last reported accounts for the company are for the year ended 31st December 2008. These accounts record a turnover of £22.37 million and a pre-tax loss of £17.911 million. The accounts state an operating profit of £1.432 million and comment that “…the loss reported in the financial statement is due to foreign exchange impact of the loan denominated in US dollars.” We understand the loan referred to is an intra-group loan relating to the purchase of the former Pickfords records management Note: The extent of the property shown edged red is approximate and shown for indicative purposes only. A plan showing the Legal Title can be provided business. upon request. All the tenant’s obligations under the lease are guaranteed by its parent company, Crown Worldwide Holdings Limited (Hong Kong Company No. 0059765). For the year ending 31st December 2008 the company reported a sales turnover of HK$ 3.26 billion (£273.7 million) and pre-tax profits of HK$ 237 million (£19.90 million) - sterling comparisons based on an April 2010 exchange rate of £1: HK$ 11.91.

Copies of the most recent accounts for the tenant and its guarantor are available on request. Further information can be found at the company’s website: www.crownrms.com.

TENURE The property is held long leasehold from Hampshire County Council for a term of 125 years from 20th June 1989 at a peppercorn rent, without review. There are approximately 104 years unexpired.

VAT The property is elected for VAT and VAT will therefore be chargeable on the purchase price if it is not possible to arrange this transaction as the transfer of a going concern.

PROPOSAL Offers are invited in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at the asking terms would reflect a net initial yield of 9.46%, after allowance for costs of acquisition calculated at 5.75% of the price.

FURTHER INFORMATION

For further information or to arrange an inspection to view, please contact Matthew Joyce or Christopher Eccles at:

Griffiths Eccles LLP 23 Princes Street, London, W1B 2LU

tel: 020 7499 0550 fax: 020 7290 3669

email: [email protected] email: [email protected]

web: www.griffithseccles.com

SUBJECT TO CONTRACT EXCLUSIVE OF VAT

INVESTMENT l DEVELOPMENT l ASSET MANAGEMENT 23 Princes Street, London, W1B 2LU Telephone: +44 (0)20 7499 0550 Fax: +44 (0)20 7290 3669

NOTICE Griffiths Eccles LLP for themselves and for the vendors or lessors of this property for whom they act, give notice that (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract. (ii) Griffiths Eccles LLP cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements or fact or representations and must satisfy themselves as to their accuracy; (iii) rents quoted in these particulars may be subject to VAT in addition; (iv) Griffiths Eccles LLP will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and (v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements. (vi) no employee of Griffiths Eccles LLP has any authority to make or give any representation or warranty or enter into any contract whatever in relation to this property; (vii) the information contained in these Particulars has been prepared as at April 2010.

Adrian Gates Brochures 07710 316991