MODERN DISTRIBUTION WAREHOUSE INVESTMENT Unit 7, Park, Newnham Drive, Heartlands Business Park, Daventry, NN11 8YG INVESTMENT SUMMARY • Established distribution location. • 2003 built high specification distribution unit of 4,147.47 sq.m (44,643 sq.ft) with a low site cover of 28%. • Let to the substantial covenant of Cummins Ltd. • Current passing rent £221,045 per annum (£4.95 per sq.ft) • Offers sought in excess of £2,390,000 (Two Million Three Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. • A purchase at this price reflects a net initial yield of 8.75% assuming purchaser’s costs of 5.80% and a capital value of £54.00 per sq.ft.

LOCATION Daventry is located approximately 10 miles south of Rugby, 19 miles south east of and 13 miles west of . The town lies to the west of the M1, between Junctions 16 and 18 and in close proximity to the M45 linking westwards to Coventry from Junction 17 of the M1. Daventry is considered one of the principal distribution locations in the UK with DIRFT being the major park.

SITUATION Heartlands Business Park is situated approximately two miles north of Daventry town centre in an established distribution warehouse location. The property fronts onto the corner of Newnham Drive and Drayton Way (A361) which links directly to the A5 and Junction 18 of the M1 to the north and the A45 to the south west.

Surrounding warehouse occupiers include Wetherspoons, CEVA, Wincanton, Netto, Hankook and SMS Recycling. DESCRIPTION SITE AREA The property is accessed off Newnham Drive and comprises a modern detached distribution We understand the building occupies a site of 1.50 hectares (3.70 acres) with a low site warehouse which was constructed in 2003 to a high specification. The property is of steel coverage of approximately 28%. portal frame construction with full height profile metal cladding beneath a profile metal sheet roof. ACCOMMODATION The property has been measured on a gross internal area basis and provides the following The warehouse has an eaves height of 8 metres and a concrete floor. Heating is provided floor areas. by warm air blowers and lighting by sodium light boxes. Within the warehouse there is a single storey canteen, first aid room and toilet block. Loading for the warehouse is via Description Sq.m Sq.ft 3 dock level loading doors and 2 level access loading doors. There is a large canopy Warehouse 3,639.47 39,175 extending on to the service yard. Offices 508.00 5,468 There is a two storey office to the front elevation with brick elevations and double glazed TOTAL 4,147.47 44,643 aluminium windows. Internally the offices have carpeted concrete floors, plastered and painted walls, suspended ceilings incorporating recessed strip lights and perimeter The canopy extends to 446.26 sq.m (4,803 sq.ft) which has not been included in the areas above. trunking. Male and female toilets are on the ground and first floor with a further disabled toilet on the ground floor.

There is a 72 space car park to the front of the property and a large service yard to the side TENURE Freehold. elevation secured by palisade fencing and barrier entry. TENANCY The property is let to Cummins Limited for a term of 15 years from 16 July 2004, expiring 15 July 2019. The lease is held on full repairing and insuring terms subject to five yearly upward only rent reviews. For rent review purposes the assumed gross internal area is 4,105.11 sq.m (44,209 sq.ft). The tenant has an option to break the lease on 16 July 2014, subject to six months notice.

The current rent is £221,045 per annum (£4.95 per sq.ft without apportioning any rental value to the canopy).

The tenant carried out a number of improvements to the property on the commencement of the lease including the installation of palisade fencing around the service yard and a security barrier to the entrance of the service yard. Further information on the improvements is available on request.

The property is sub-let to to TVS CJ Components Limited on a sub-lease expiring on 1 July 2014 at a rent of £221,045 per annum.

COVENANTS Cummins Limited (Co No 00573951) is one of the world’s largest designers and manufacturers of diesel engines. The company operate from eight locations in the UK and Ireland from where they provide sales, FURTHER INFORMATION For further information or viewings please contact: manufacturing, distribution and servicing. The parent company, Cummins Inc, are based in Columbus USA and employ over 40,000 people in 197 countries worldwide. Further information on Cummins Ltd can be found on their website www.cummins.com and a summary of their last three years accounts is set out below.

31/12/2009 31/12/2008 31/12/2007 £’000 £’000 £’000 Turnover 802,436 1,189,535 951,625 Andrew Franck-Steier Pre-tax profit 88,631 184,863 39,637 0121 237 6336 Shareholder’s Funds 343,417 261,330 180,290 [email protected]

Ben Blackwall VAT 0121 237 6331 The property has been elected for VAT and therefore VAT will be payable on the purchase price, it is [email protected] however anticipated that the sale will be dealt with by way of a TOGC. 43 Temple Row B2 5LS PROPOSAL T: 0121 237 6070 F: 0121 237 6100

We are instructed to seek offers in excess of £2,390,000 (Two Million Three Hundred and Ninety Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements Thousand Pounds), subject to contract and exclusive of VAT. Assuming costs of purchase at 5.80% of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a this reflects a net initial yield of 8.75% and a capital value of £54.00 per sq.ft. representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.