RAYNHAM ROAD BISHOP’S STORTFORD, INDUSTRIAL ESTATE CM23 5PB

REVERSIONARY SOUTH EAST MULTI LET ESTATE WITH DEVELOPMENT & ASSET MANAGEMENT OPPORTUNITIES INVESTMENT SUMMARY

•  Unique opportunity to acquire an established multi – let industrial estate in a core South East market 1 MILE FROM M11 MOTORWAY •  Situated off the A1250 Dunmow Road being 1 mile from Junction 8 of the M11

•  Multi let estate comprising of 26 industrial and trade counter units totalling 101,374 sq ft (GIA), with unit FULLY LET INDUSTRIAL AND sizes ranging from 1,626 sq ft to 13,996 sq ft TRADE COUNTER ESTATE •  29% of the estate (by floor area) was constructed since 2010

•  Fully let to 18 tenants with a headline rent of£794,225 per annum, reflecting a low average rent of £7.83 per sq ft 37% OF THE ESTATE •  The estate has an average weighted unexpired lease CONSTRUCTED SINCE 2010 term of approximately 6.7 years to expiry and 3.3 to tenant break options

•  Strong tenant line up to include a number of trade FUTURE REPOSITIONING occupiers, including Edmundson Electrical, Screwfix AND REDEVELOPMENT and ITAB Prolight UK Ltd OPPORTUNITY •  Prominent site totalling approximately 9.43 acres, reflecting a low site density of 31.8%

•  Immediate asset management opportunities and LOW HEADLINE RENT longer term development OF £7.83 PSF •  Freehold

Offers are sought in excess of £12,400,000 (Twelve Million, Four Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 6.00%, assuming purchaser’s costs of 6.71%, and a capital value of £122 per sq ft.

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB STANSTED AIRPORT

ß M11 (JUNCTION 8)

LONDON à

A1250

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB M42 LEICESTER A1 A47 A47 M6 A5 HINCKLEY A1065 A134 A141 A140 Birmingham Hams Hall Rail A6 A43 Airport Freight Terminal M1 A10 CORBY A11 BIRMINGHAM M6 M69 A605 A1(M) LOCATION KETTERING M5 M42 COVENTRY A14 A141 A1066 RUGBY DIRFT A14 A11 A143 M42 A508 A43 M45 A134 A140 A435 A14 A10 A14 A6 BURY ST STRATFORD- J16 A428 CAMBRIDGE EDMUNDS Bishop’s Stortford is strategically located in the county of M40 A423 A428 UPON-AVON A5 J15 A14 in the South-. The town is A46 A1 part of the M11 expansion corridor and well positioned to A429 M1 M11 A134 benefit from the large population pool of North A43 BANBURY IPSWICH A44 MILTON A505 and the thriving economic corridor between London and KEYNES A10 A12 A14 Cambridge. There are over 11.2 million people living within A421 A6 RAYNHAM ROAD INDUSTRIAL ESTATE A44 A5 60 minutes, increasing to more than 23 million within two A120 London Airport STEVENAGE BRAINTREE hours travel time. CHELTENHAM A120 A41 A418 A1(M) Stansted Airport Bishop’s Stortford benefits from excellent road A429 A10 M11 A40 M1 A12 OXFORD A418 A41 communications being directly adjacent to the M11 WELWYN motorway (Junction 8) which in turn connects to the M25 GARDEN CITY A413 (Junction 27) to the south and the A14 dual carriageway, A420 M40 M25 A10 A419 M25 to the north. A34 SWINDON A127 LONDON London Gateway Bishop’s Stortford rail station provides frequent rail A13 SOUTHEND-ON-SEA services to London Liverpool Street with a fastest journey A4 M4 READING M4 time of 38 minutes. Hourly rail services run from Stansted A4 City Airport M3 A2 to Cambridge, Peterborough and the Midlands. MARLBOROUGH A33 A249 is conveniently located 3.5 M2 M25 miles from Raynham Road and is key to the economy of A34 A331 MAIDSTONE A21 the region. It is the UK’s fourth busiest airport currently M3 A303 A22 A28 A2 serving around 170 destinations in 37 countries across the A31 M20 A3 globe, with annual passenger numbers in excess of 22.6 CRAWLEY SALISBURY million per annum. A2070 WINCHESTER A23 FOLKSTONE A36 A272 A354 A3

SOUTHAMPTON

MILES BRIGHTON A26 PORTS HASTINGS MILES RAIL JOURNEY TIME (MINS) BISHOP’S STORTFORD TRAIN STATION 1.3 LONDON GATEWAY 48 STANSTED AIRPORT 8 M11 (JUNCTION 8) 1.7 HARWICH / FELIXTOWE 55 TOTTENHAM HALE (VICTORIA LINE) 24 M25 (JUNCTION 27) 19 CAMBRIDGE 29 CAMBRIDGE 27 AIRPORTS MILES LONDON LIVERPOOL STREET 38 LONDON 35 LONDON STANSTED 4 32 LONDON LUTON 35

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB HOWLETT LANGLEY END NEWPORT

DEBDEN GREEN WIDDINGTON

STOCKING SITUATION PELHAM M11 HENHAM

BROXTED

RAYNHAM ROAD INDUSTRIAL ESTATE IS SITUATED OFF PATMORE THE A1250 DUNMOW ROAD BEING 1 MILE FROM JUNCTION HEATH STANSTED 8 OF THE M11 AND 8 MINUTES’ DRIVE FROM STANSTED AIRPORT. THE ESTATE IS ALSO APPROXIMATELY 1 MILE Stansted Airport AWAY FROM BISHOP’S STORTFORD TOWN CENTRE AND ALBURY MAINLINE RAILWAY STATION. END A120 A120 BAMBER’S The site is bounded to the south east by Raynham Close, which GREEN was constructed in the early 1990’s and is home to a number BISHOP’S A120 of trade operators including Plumb Centre, Sally Hair & Beauty, STORTFORD J8 Toolstation Station and City Electrical Factors Ltd. Residential A1250 dwellings border the three other boundaries to the estate. RAYNHAM ROAD INDUSTRIAL ESTATE The wider estate also includes a number of high profile MUCH automotive operators including Motor Parts Direct and HADHAM A1060 Stortford Performance Tyres. More recently, Gu Puds, the A1184 leading desert manufacture has opened a new 100,000 sq GREAT ft manufacturing facility nearby, creating 100 new jobs and LITTLE CANFIELD HALLINGBURY boosting the local economy.

M11 B1383 A1184 To á A120 CAMBRIDGE

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BISHOP’S STORTFORD M11

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A1060 RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB DESCRIPTION MODERN SECTION ORIGINAL ESTATE

Raynham Road Industrial Estate is a large, well established multi- There is a modern section of Raynham Road, which was constructed in The remainder of the estate comprises of 20 industrial buildings, let estate comprising a range of industrial and trade counter units. 2010 and comprises of six modern industrial and trade units, totalling totalling 63,688 sq ft (GIA) and amounting to 63% of the total The estate provides a total of 101,374 sq ft (9,418 sq m) (GIA) of 37,686 sq ft and amounting to 37% by floor area. area. The units are of various ages and range in size between accommodation and currently comprises of 26 units. 1,626 sq ft and 13,996 sq ft (GIA). A number have been refurbished, The units benefit from the following specification: however there are further opportunities to enhance value through There is an additional cleared 1.028-acre plot providing an “oven ready” • Steel portal frames refurbishment and reconfiguration. plot for future development, subject to planning. • Pitched roof with profiled steel external sheets The units benefit from the following specification: The estate is fully managed and features dedicated service yards, • Insulated roof with 10% translucent rooflights car parking and landscaping. • Brick cavity wall elevations • Eaves height within the warehouse of 6.5 metres • Pitched steel profile sheeting roof • Floor loading capacity of 30kN/sq m • GRP translucent roof light sheets • Electronically operated sectional loading doors

• Modern fully fitted office accommodation • Steel roller shutter loading doors.

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB PLAW HATCH CLOSE

CHURCH MANOR SITE

PLAW HATCH CLOSE The site is broadly rectangular and totals approximately Phase 2 – hard standing 1.028 acre site provides 9.43 acres (3.82 hectares), reflecting a low site coverage future redevelopment options, subject to planning of circa 31.8%. 11-12 PLAW HATCH CLOSE

PHASE 2 SITE SERVICE CHARGE 13-14

The service charge on the park is currently £0.37 per sq RAYNHAM ROAD 6 ft. Additional information will be provided on the data site. 4-5

15-16 3

RAYNHAM ROAD

RAYNHAM ROAD 2

1 38

39 RAYNHAM ROAD RAYNHAM ROAD 40

20-21

36-37 22-23 RAYNHAM ROAD

32

S T 30 25 O 29 KEY R 28 T F O R D H Unit sold off freeholdA L RAYNHAM CLOSE L P A Phase 2 site R K For indicative purposes only

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB TENANCY SCHEDULE

The property is let to 18 tenants in accordance with the below tenancy schedule and benefits from an AWULT of 6.7 years to expiries and 3.3 years to break options.

The total headline rent of £794,225 per annum is well diversified with approximately 64% of the headline income generated by the top 5 tenants.

HEADLINE HEADLINE AREA LEASE BREAK RENT LEASE INSIDE SCHEDULE OF EPC UNIT TENANT RENT RENT COMMENTS (GIA) START DATE REVIEW EXPIRY 54 ACT CONDITION RATING (PAX) (PSF) Unit 1 Edmundson Electrical Limited 5,946 08/11/2010 08/11/2020 07/11/2025 £59,460 £10.00 Yes No C Unit 2 Screwfix Direct Ltd 5,900 10/12/2014 09/12/2019 10/12/2019 09/12/2024 £33,576 £5.69 Yes No B Tenant’s break on 6 months notice Tenant’s break on 6 months notice. Unit 3 Clearwater Technology Ltd 7,690 01/12/2016 01/12/2021 29/11/2021 30/11/2026 £59,712 £ 7.76 No No Rent Deposit - £5,972 Profile Lighting Services Ltd Tenant’s break on 6 months notice. Unit 4/5 12,550 18/04/2011 17/04/2021 18/04/2021 17/04/2026 £114,802 £9.15 Yes No C (now ITAB Prolight UK Ltd) Rent Deposit - £23,053 Profile Lighting Services Ltd Tenant’s break on 6 months notice. Unit 6 5,600 06/02/2012 17/04/2021 18/04/2021 17/04/2026 £49,025 £8.75 No No C (now ITAB Prolight UK Ltd) Rent Deposit - £9,843 Additional Land at Rye Street Coachworks Stansted Limited 0 05/07/2013 18/05/2020 £5,000 n/a Yes No n/a 12 Raynham Road Additional Land - Mutual rolling break date on or after Rye Street Coachworks Limited 0 16/09/2015 16/03/2019 15/09/2020 £30,000 n/a No No n/a PLOT A 16/09/2018 on 6 months notice Additional Land - Glyn Hopkin Ltd 0 10/12/2015 10/06/2019 09/12/2020 £28,500 n/a No No n/a Landlord’s rolling break on 6 months notice PLOT B Reversionary lease dated 05/07/2013 Units 11/12 Rye Street Coachworks Stansted Limited 6,987 19/05/2010 18/05/2020 £45,500 £6.51 Yes No F to commence 18/05/2020 to expire on 04/07/2028 Tenant’s break on 6 months notice. Units 13/14 Rye Street Coachworks Limited 13,996 05/07/2013 05/07/2023 22/06/2021 04/07/2028 £91,000 £6.50 Yes No D Rent Deposit - £8,029 Tenant’s break on 6 months notice and Units 15/16 Decormax Ltd & Grant Westfield Ltd 9,806 31/05/2013 31/05/2020 31/05/2018 30/05/2023 £54,000 £5.51 No Yes D a break penalty of £7,083 plus VAT Units 17-19 Virgin Media c/o GVA Grimley LLP £0 n/a Freehold sold off Mutual break subject to 6 month’s notice. Units 20/21 Global Natural Stone Ltd 3,406 09/02/2017 09/02/2020 09/02/2020 08/02/2022 £12,000 £3.52 No Yes D Rent Deposit - £6,001 WJ, MR & JW Worby T/A Globe Tooling & Units 22/23 3,298 08/08/2016 01/03/2019 08/02/2022 £12,000 £3.64 No Yes G Mutual break subject to 6 month’s notice Leisure Products WJ, MR & JW Worby T/A Globe Tooling & Unit 24 £0 D Freehold sold off Leisure Products WJ, MR & JW Worby T/A Globe Tooling & Mutual break right at any time on or after Unit 25 1,626 08/08/2016 31/12/2017 25/03/2018 £12,000 £ 7. 38 No No D Leisure Products 31/12/2017 on 1 month’s notice Unit 26/27 David Dowling Ltd £0 n/a Freehold sold off Unit 28 Bedford Transmissions Ltd 1,939 01/01/2015 31/12/2020 £12,000 £6.19 No Yes Unit 29 UT AND LG Ltd 1,857 02/09/2014 01/09/2019 £12,500 £6.73 No No D Rent Deposit - £6,259 Unit 30 MPS Horticultural Limited 1,857 07/12/2013 06/12/2019 £12,000 £6.46 No No C Anthony Park & lloyd Richards c/o Park Unit 31 £0 No n/a Freehold sold off Richard Properties Unit 32 Lerson Fabrication Limited 1,939 12/09/2008 11/09/2018 £12,700 £6.55 No Yes D Unit 33 Flare Lighting Ltd £0 n/a Freehold sold off Unit 34/35 Mr Robert Gregory £0 No n/a Freehold sold off Units 36/37 Indifit Ltd 3,922 11/06/2014 11/06/2018 10/06/2020 £27,500 £ 7.01 No Yes D Tenant’s break on 6 months notice Unit 38 Marrey Tableware Ltd 3,973 27/09/2014 26/09/2019 26/09/2019 25/09/2024 £30,950 £ 7.79 Yes No D Tenant’s break on 6 months notice Unit 39 Ensinger Limited 3,966 22/12/2015 22/12/2018 22/12/2020 21/12/2025 £35,000 £8.83 Yes No D Tenant’s break on 6 months notice Tenant’s break on 6 months notice. Unit 40 Intelligent Communication Solutions Ltd 5,116 28/05/2015 28/05/2020 28/05/2020 27/05/2025 £45,000 £8.80 Yes No D Rent Deposit - £22,518 Electricity Substation Eastern Electricity Board 0 24/06/1965 23/06/2064 £0 £0.00 n/a

Total 101,374 £794,225 £ 7.83

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB ASSET MANAGEMENT

REDEVELOPMENT / RECONFIGURATION

As demonstrated on units 1 - 6, there is an opportunity to reposition the estate by demolishing original existing stock and building out new industrial trade counter units to satisfy tenant demand.

Phase 2, a 1.028 acre site, provides “oven ready” development options.

REFURBISHMENT

Continue refurbishment programme of the original units to maximise rental values.

LEASE RE-GEARS

There are 21 separate lease events (expiry / breaks) in the next 5 years, providing an opportunity to increase the rental tone and average weighted unexpired term through lease re-gear and renewals.

TENANT RETENTION

The estate is fully let to several long-standing occupiers. The range of unit sizes and potential redevelopment options demonstrates the flexibility for tenants on the estate and thus providing excellent tenant retention prospects.

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB INVESTMENT MARKET

There remains a significant weight of capital chasing the industrial sector with investors buoyed by strong occupational fundamentals including record levels of take up, historically low availability rates and a constrained development pipeline. The combination of these factors, together with the on-going reduction of industrial land across the South East and London due to increased take-up for higher value uses and infrastructure projects, is maintaining a positive demand / supply imbalance which is driving strong rental growth.

Prime South East and Inner M25 industrial estate yields have dipped below 4% in the first half of 2017, demonstrating the continuing confidence and demand in the sector.

Comparable investment transactions are summarised as follows:

DATE PROPERTY AREA (SQ FT) TERM CERTAIN PRICE NIY PURCHASER

Under Offer Cliffe Industrial Estate, Lewes 190,629 5.36 c.£23.4M c.5.20% TBC

Under Offer Odhams Trading Estate, 125,476 3.80 c.£26.5M 3.97% M&G

Under Offer SG1 Industrial Estate, Stevenage 79,799 3.20 c.£13.2M 4.40% Lothbury

Aug 17 Carvers Trading Estate, Southampton 51,346 3.70 £7.09M 4.90% CBRE GI

Aug 17 Lodge Farm Trade Park, Northampton 173,243 2.75 £10.2M 6.00% Royal London

Jun 17 City Park Industrial Estate, Welwyn Garden City 202,336 4.00 £27.7M 5.36% L&G

Jun 17 Watford Trade Park, Watford 28,525 12.90 £8.65M 4.40% Morden College

Jun 17 Boundary Park, Hemel Hempstead 75,611 6.70 £14.0M 4.33% College

May 17 Motorway Industrial Estate, Stevenage 60,808 5.45 £7.16M 5.40% DTZ I

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB TENURE

The property is held freehold, albeit six industrial units have been sold off.

VAT

The property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).

DATA SITE

Appropriate information to be made available in due course, to include Environmental phase 1 report.

PROPOSAL

Offers are sought in excess of:

£12,400,000

(Twelve Million, Four Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects aNet Initial Yield of 6.00%, assuming purchaser’s costs of 6.71%, and a capital value of £122 per sq ft.

RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB CONTACT

To arrange an inspection please contact:

DAVID EMBUREY [email protected] 020 3328 9104 07720 841 750

TOM HOMAN [email protected] 020 3328 9095 07500 044 615

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 www.howard-ventures.com 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 prices and rents are quoted exclusive of VAT. October 2017. RAYNHAM ROAD INDUSTRIAL ESTATE | BISHOP’S STORTFORD | CM23 5PB