Unit 9 Stone Way Lakesview International Business Park Hersden, CT3 4GP

Modern South East industrial investment opportunity let to a strong covenant INVESTMENT SUMMARY

We are instructed to seek offers in excess of £960,000 (Nine Hundred and Sixty Thousand Pounds) , subject to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 7.14 % assuming purchaser’s costs of 5.71 %

Investment Summary

• A modern South East industrial property • The lease benefits from an unexpired term of • The tenant recently chose not to exercise its situated to the east of 5.50 years break option, demonstrating it’s commitment • Located on an established business park with • Total passing rent of £72,500 per annum to the property direct access onto the A28 equating to £6.71 psf assuming £1.00 psf on • Site area of 0.97 acres (0.39 ha) providing an • Well specified unit comprising 6,109 sq ft yard overage exceptionally low site cover of 11% (568 sq m) • Let to Viridor Waste Management Limited who • Freehold benefit from a strong Dun & Bradstreet rating of 5A1 Chatham Isle of Westgate-on-Sea A28 Margate Sheppey A249 Rainham Hempstead Newington A299 A28 Broadstairs Sittingbourne M2 Sarre Teynham Faversham A299 A256 M2 A249 Milstead A28 HHeHerHersHersdHersdeHersden M20 M2 CanterburyCCaCanCantanterburyteterterbterbuterburterbury Wingham Hollingbourne Doddington Ash Maidstone Sandwich Bay Leaveland A2 A256 A229 Otterden Place

A28 Aylesham Challock Deal A2 A256 M20

A229 A28 Little Chart Wye Stelling Minnis Kingsdown Hawkenbury A2 Ashford Elham Smarden DoverDDoovoveover Alkham Frittenden Bethersden Lyminge Hawkinge A20 70 A20 Shadoxhurst M20 LOCATION Aldington A229 FolkestoneFFoololkolkeolkesolkestolkestoolkestonolkestone Bonnington A259

Location Situation Anderson te 8 Tyre Services rga 2 Hersden is located in the county of Kent 5.5 miles The Property is situated on the established Ma A east of Canterbury, 21 miles north of Folkstone and Lakesview International Business Park on the ry 67 miles south east of London. Hersden lies outskirts of Hersden. The Property is positioned off bu ter adjacent to the A28. The town lies inbetween Claremont Way which runs through the centre of an C Flexspace Canterbury and Margate, approximately 6 miles the Business Park and provides direct access to the Exchange House from the A2 which is one of the major arterial roads A28. The A28 is the main arterial road linking ay W in the county, leading to Dover 20 miles to the Ashford to the west, via Canterbury and Margate to ow arr Sp south and Junction 7 of M2 motorway 12 miles to the east. Bryant Cars the north. This in turn leads to the M25 and wider Hornby Hobbies Lakesview International Business Park is spread ay national motorway network. W over 50 acres providing a mixture of industrial, as C m l ho a Canterbury West railway station lies approximately office and warehouse accommodation. It is ideally T r e 5.5 miles west of the Property and provides access situated in the heart of Kent and provides a range m o n to London St Pancras in approximately 55 minutes. of unit sizes and facilities attracting local, regional Robins t

It also provides a direct service to London Victoria, and national occupiers. Occupiers on the estate Packaging MattressNextDay W Canterbury a London Charing Cross and Ashford International. include Hornby Hobbies and UK Stone Imports. The y

tenant, V iridor, benefits from business relationships UK Stone DB Specialist with other occupiers on the Park. Imports Ltd Joinery Ltd Rye ay Commercials W ne Sto Lakesview International Unit 9 Stone Way Business Park

a

E to DESCRIPTION F C

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Y 0 A J W E

The Property comprises a 6,109 sq ft detached industrial unit with two storey office ON T G accommodation and extensive yard provision. Built in 2008 and benefiting from a S

modern specification, it is of steel frame construction with profiled sheet steel elevations. It has a pitched roof with profiled sheet steel and translucent panels. The 9 Property benefits from the following specification: • 3 roller shutter loading doors • 2 vehicle maintenance pits • Eaves height of 24ft (7.32m) • Exceptionally large and secure fenced yard with CCTV facilities • Provision for 21 lorry parking bays and 32 separate car parking spaces • Two storey open plan offices with suspended ceilings and double glazed windows • Disabled passenger lift and WC facilities

Site Area The total site area is 0.97 acres (0.39 ha) providing an exceptionally low site cover of 11% .

Tenure Freehold. Title number K928405.

TENANCY & COVENANT INFORMATION

Tenancy Occupational Market Commentary The Property is let in its entirety to Viridor Waste Management Limited on a Full Repairing Robust occupational demand and lack of supply in Kent continues to drive industrial and Insuring lease for a term of 15 years commencing 18 April 2008, expiring on 17 April rental tone upwards. Canterbury has seen industrial rents achieving between £8.00 - 2023. The tenant has recently chosen not to exercise its April 2018 break option £9.00 psf for modern well specified industrial units, as demonstrated by the letting of demonstrating its commitment to the Property and therefore providing approximately Units 1&2 at Altira Park to Sunstone IP Systems at £8.00 psf on a 12 year term. The 5.50 years unexpired . Property provides quality accommodation at a discount to these levels, albeit with strong prospects of rental growth. The passing rent of £72,500 per annum equates to £6.6 1psf. This assumes £1.00 psf is applied to the yard overage. The lease benefits from a rent review on 18 April 2018 to the higher of open market rent or the current passing rent. Investment Market Commentary The industrial sector has proven to be one of the most attractive sectors over the last 18 Covenant Information months due to the compelling fundamentals of a strong occupational market and good rental growth prospects. This, along with limited speculative development and a lack of Viridor Waste Management Limited (Company Number: 00575069) is a subsidiary of the good quality availability, has helped drive yields to historic lows. FTSE 250 company Pennon Group plc. The company is a waste management and Area Lease Price NIY Cap Val recycling firm that operates over 320 facilities across the UK and has grown to be one of Date Tenant Town the UK’s leading recycling companies. The Property serves an important role as a vehicle (sq ft) length (£) (%) (psf) CSC Computer maintenance and vehicle storage facility for the Kent district fleet. August 2017 24,343 Aylesford 10 years £3,000,000 5.35% £123 Sciences Limited Viridor Waste Management Limited has a Dun & Bradstreet Rating of 5A1 representing a Inchcape Estates April 2017 10,740 Chartham 8 years £1,420,000 5.63% £132 ‘minimum risk of business failure’. Limited t/a Audi A summary of the tenant’s last three years of accounts is set out below:

Year 31 March 2016 (£000’s) 31 March 2015 (£000’s) 31 March 2014 (£000’s) Turnover £37,883 £411,512 £387,753 Pre-Tax Profit £32,942 £15,025 -£19,003 Net Worth £206,871 £220,239 £113,962 Estate Charge There is an estate charge for the Property totalling £1,537.40 (£0.25 psf) for the year ending 2017. This is fully recoverable from the tenant.

VAT We understand the Property has been elected for VAT. It is anticipated the transaction will be treated as a Transfer of a Going Conce rn ( TOGC).

EPC Rating An Energy Performance Certificate has been undertaken dated November 2017 providing a rating of C65 . Further information is available on request.

Web Access www. cushwakesales. com/c w/lakesview PROPOSAL

We are instructed to seek offers in excess of £960,000 (Nine Hundred and Sixty Thousand Pounds) , subject to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 7.14 % assuming purchaser’s costs of 5.71 %

Cushman & Wakefield LLP Tom Coaker Russell Nimmo Luke Blythe 43-45 Portman Square E: tom. coaker@ cushwake. com E: russell. nimmo@ cushwake. com E: luke. blythe@ cushwake. com London W1H 6LY T: 020 7152 5357 T: 020 7152 5859 T: 020 7152 5959 M: 07894 814 327 M: 07726 947 276 M: 07793 808 510

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. November 2017 Production by PlusArt Limited 0115 972 4000