Nexus Industrial Randles Road, Knowsley L34 9HX

B5194

M57

Prominent North West Multi-Let Industrial J4 and Office Investment

Investment summary

Investment Summary Proposal • multi-let industrial and office investment • One vacant unit comprising 23,319 sq ft. the Offers are sought in excess of £9,443,000 (Nine opportunity with development land vendor will provide a 12 month rent, rates and Million, Four Hundred and Forty Three Thousand service charge guarantee Pounds) for the freehold interest, subject to • Located in a prime north West commercial area contract and exclusive of vat. between and • WAULT of approximately 5.48 years (3.99 years to break) a purchase at this level reflects a Net Initial Yield • Prominently situated adjacent to Junction 4 of of 9.20% , assuming purchaser’s costs of 6.69% the m57 motorway • site area of 11.44 acres providing a low site and a low capital value of £49 per sq ft. coverage of 37% • the Property comprises 13 industrial units totalling this assumes £150,000 per acre has been 149,194 sq ft, 7 office units totalling 35,253 sq ft and • Freehold attributed to the 2.16 acres of development land. an additional 2.16 acres of development land • Opportunity to improve the income profile • total passing rent of £895,087 per annum through letting the vacant unit, lease re-gears (including a rent guarantee and a top up) which and taking advantage of the potential for higher equates to £3.18 per sq ft on the industrial and value uses on the adjoining land, subject to £11.95 per sq ft on the offices planning M65 M55 Leeds A5208 Knowsley Business Bradford M1 Blackpool Estate Preston Blackburn S B oun dary Southdene Rd M65 Halifax Nexus . N M62 Industrial M d R 5 e Knowsley Business A5208 8 t Rochdale a Estate Huddersfield g r MANCHESTER M66 o M61 Bolton M1 o M L OO A580 ERP M58 M6 LIV

Knowsley Business Liverpool 2 Manchester Estate B5202 A580 A580 J4 Liverpool Peak District Ran M62 M60 S dle B5194 M57 s Rd Stockport National Park t o Scho ol Lane n M Knowsley Business Centre M56 e 6 b 2 M53 r Knowsley Mersey i Gateway d g e M57

L a n Macclesfield e M53 LOCatIOn Chester

Location Situation Knowsley is located approximately 7 miles (12 km) north east of Liverpool, 27 miles (44 nexus Industrial forms part of the larger established Knowsley Business estate, an km) west of manchester and is one of the main industrial areas of the north West. industrial area to the north east of Knowsley town centre. the Property is adjacent (and benefits from direct access) to the m57 via Junction 4, and the a580 (east Lancs road) the town benefits from an excellent road network between Liverpool and manchester via school Lane. the Property is bounded by randles road to the south, the m57 to the and regional centres including and Bolton. Knowsley is situated adjacent to the west and school Lane to the east and north. m57 which connects with the m62 to the south and the m58 to the north. the m62 is the primary west-east trans-Pennine motorway connecting Liverpool with the major regional the Property is surrounded by a mix of industrial, office and business space units along cities of manchester and Leeds, providing direct access to Liverpool’s orbital route, the randles road. Key occupiers on Knowsley Industrial estate include matalan, makro, B&m a5058 . this links with the m6, one of the major national north to south and toyota. motorways running from Carlisle to Birmingham. Knowsley offers good rail communications with West Kirby station less than 3 miles to the north, providing frequent services to Liverpool Lime street with a journey time of 18 minutes. Liverpool Lime street provides regular train services across the uK, with journey times to London of 2 hours 20 minutes, Birmingham of 1 hour 38 minutes and manchester of 32 minutes. The property is adjacent the region has Intermodal rail Freight hubs in , Chester and Crewe, with planning permission granted for a further hub at Port salford, where road enabling works are under way to facilitate the development of this new multi modal facility. (and benefits from direct access) to John Lennon airport is approximately 10 miles (16 km) south of Knowsley and serves over 80 national and international destinations. the M57 via Junction 4 DesCrIPtIOn

nexus Industrial, Knowsley provides well presented industrial and ancillary office accommodation either side of randles road. the Property comprises 13 industrial units totalling 149,194 sq ft (13,860 sq m) and 7 office units totalling 35,253 sq ft (3,275 sq m). units 1-6 provide a terrace of industrial units with direct frontage to randles road. the units provide modern refurbished accommodation ranging in size from 5,774 sq ft to 23,319 sq ft with a secure shared yard to the rear. the eaves heights range from 4.95m in units 2-5, to 10.50m in units 1 and 6, and some benefit from front and rear roller shutter loading doors. ancillary office accommodation is provided to the front of the units. to the north of randles road, units 7-13 provide high bay industrial space with eaves heights of 12.95m. the tenants fully occupy their respective units which have been extensively fitted out to meet business requirements. a shared yard is positioned to the front of the units providing ample parking and loading facilities. unit 9-11, which is single let, also benefits from a self-contained yard and loading area to the rear. t

n unit 1, which is currently vacant, comprises 23,319 sq ft of refurbished e industrial accommodation benefitting from a generous yard area m

d and an eaves height of 10.50m. p n o the office accommodation is located in a single terrace fronting l a e L randles road. the offices are fully let separately to the v industrial accommodation and provide well presented single e storey accommodation with suspended ceilings, air D conditioning and perimeter trunking. shared car parking is provided to the west of the Property, with additional demised car parking for Delphi (uK) Holdings Ltd to the east.

Site the property provides a total site area of 11.44 acres (4.63 ha), providing a low site coverage of 37%, excluding the development land. the addit ional development land totals 2.16 ac res (0.87 hectares). KEY Industrial

Office DeveLOPment sIte & InFrastruCture

Development Land Future infrastructure the property provides additional development land totalling 2.16 acres (0.87 ha). the north West is currently going through a significant transformation phase with works this site, hatched blue on the earlier Promap, benefits from excellent prominence to the on the mersey Gateway Project and Liverpool 2 underway. Furthermore, Hs2 is likely to Junction 4, m57 roundabout with access currently provided from randles road. play a key role in the process of revitalising Liverpool City and the rest of the region. Outline planning consent was granted for the development of a mixed use scheme in June 2011 to include a 110 bed hotel (use Class C1), a 56,000 sq ft business unit (use Class The Mersey Gateway Project B1) and a 1,600 sq ft retail/restaurant unit (use Classes a1, a3, a4 & a5). Further mersey Gateway, a new six-lane toll bridge, will open in autumn 2017. the bridge is information is available on request. approximately 1 mile to the east of the silver Jubilee Bridge, which connects Widnes and a Purchaser may wish to explore alternative options, subject to the usual planning the Central expressway in runcorn to the eastern Bypass and speke road in Widnes. this consents, and explore the potential for an additional access to be granted from the will offer a major new transport route reducing congestion and greatly improving the link B5194, school Lane to the north of the Property. between the north West and the rest of the united Kingdom.

Knowsley Development Pipeline Liverpool 2 Knowsley’s locational and industrial dominance is creating increased development the is one of the uK’s largest ports by tonnage handled. the port is potential, with a number of schemes both under construction and with planning being extended by the building of an in-river deep water container terminal at seaforth permission. this investment will assist in the fundamental repositioning of Knowsley Dock, named Liverpool 2. the new development will be able to accommodate 95% of all Industrial estate from traditional manufacturing, towards more modern industrial and global container vessels, enabling the Port of Liverpool to house two 13,500 teu post- logistics. Panamax vessels simultaneously. Liverpool 2 is situated 7 miles to the west. Further information, including a plan of the surrounding schemes, is available on this considerable infrastructure investment will benefit the wider north West region and request. in particular the Knowsley industrial market. Furthermore, a package of works worth £6.7m has recently been announced by Knowsley Council to improve access and connectivity across Knowsley Business Park. tenure & tenanCy

Tenancy Tenure the Property is let to 6 tenants on 9 leases and provides a weighted average unexpired lease term of 5.48 years to Freehold. expiries and 3.99 years to breaks. the property produces a passing rent of £895,087 per annum (including a 12 month rent guarantee on unit 1 and a rental top-up on units 2, 6 and 9-11). this equates to £3.18 per sq ft on the industrial and £11.95 per sq ft on the offices.

Rent Industrial Tenant Area (sq ft) Start Date Break Date End Date Rent (pa) Rent ( psf) Comments Review

vendor to provide a 12 month rent, rates and service charge unit 1 vacant 23,319 £69,957 £3.00 guarantee. 1,615 sq ft currently let on an all inclusive licence to CeD Fabrications Ltd expiring 02/12/2016 tenant currently enjoying a 50% rent concession until 08/01/2017. unit 2 mortons Dairies Ltd 8,184 09/09/2016 08/09/2019 08/09/2021 £32,736 £4.00 vendor to top up to £32,736. schedule of Condition. Break option subject to 6 months’ notice unit 3 CeD Fabrications Ltd 8,144 06/03/2015 03/10/2018 £32,576 £4.00 schedule of Condition unit 4 & 5 CeD Fabrications Ltd 13,352 04/10/2013 03/10/2018 £43,394 £3.25 schedule of Condition. Outside Lta 1954 tenant currently enjoying a 50% rent concession until 31/12/2016. unit 6 tuff X Processed Glass Ltd 5,774 01/10/2016 30/09/2017 £21,652 £3.75 vendor to top up to £21,652. schedule of Condition units 7, 8, 12 & 13 - High Bay tuff X Processed Glass Ltd 48,008 23/11/2010 22/11/2020 £146,100 £3.04 tenant currently enjoying a rent concession until 31/01/2017. units 9, 10 & 11 - High Bay the Quality moving Group Ltd 42,413 01/02/2016 01/02/2021 31/01/2026 £127,500 £3.01 vendor to top up to £127,500. rent steps to £150,000 pa from 01/02/2018 Total 149,194 £473,915 £3.18

Rent Office Tenant Area (sq ft) Start Date Break Date End Date Rent (pa) Rent ( psf) Comments Review

rent steps down to £24,195 04/11/2020. Car Park Delphi (uK) Holdings Ltd 04/11/2015 04/11/2020 04/11/2020 03/11/2025 £46,639 Break option subject to 12 months’ notice 3 month rent free if break on 04/11/2020 not exercised. rent step nexus Hse, a2, a3, a4, B1 & B2 Delphi (uK) Holdings Ltd 22,257 04/11/2015 04/11/2020 04/11/2020 03/11/2025 £155,799 £7.00 to £178,056 04/11/2020. Break option subject to 12 months’ notice nexus Hse, a2, a3, a4, B1 & B2 Delphi (uK) Holdings Ltd 04/11/2015 03/11/2020 £77,690 Fit Out rent Offices B3 tuff X Processed Glass Ltd 4,784 23/11/2010 22/11/2020 £42,500 £8.88 rent steps down to £49,272 pa for 12 months if 25/12/2017 break not exercised. rent from 25/12/2019 then to be £82,120 pa Offices C Capita Business services Ltd 8,212 25/12/2015 25/12/2017 24/03/2021 £98,544 £12.00 schedule of Condition. Outside Lta 1954. Break option subject to 3 months’ notice Total 35,253 £421,172 £11.95 COvenants & asset manaGement Over 70% of the income secured against covenants with a minimum risk of business failure

Covenant the Property benefits from a diverse mix of income and is let to national and regional covenants with over 70% of the income secured against covenants with a ‘minimum risk Asset Management Opportunities of business failure’. Further information is detailed below:

Tenant Covenant Income % Comment undertake a proactive marketing campaign to let unit 1, the last remaining vacancy, which has been Delphi manufactures and markets electronic assembly equipment refurbished and is therefore immediately lettable Delphi (uK) 5a 1 34 such as reflow and curing ovens, solder paste equipment and stick Holdings Ltd lead. Capita are the uK's leading provider of business process Capita Business approach tuff X Processed Glass to extend their occupation of unit 6 beyond their current lease expiry 5a 1 12 management and integrated professional support service services Ltd solutions. CeD Fabrications are a national manufacturer of commercial CeD Fabrications catering equipment. they have two other units in accrington and re-gear CeD Fabrications’ leases on units 3, 4 & 5 ahead of the October 2018 lease expiries and 2a 1 9 Ltd in sandwich, Kent. they have recently been acquired by tournus approach them with regard to expanding their occupation equipment, increasing their international presence. the Quality Headquartered at nexus, the Quality moving Group Ltd provide moving Group 1a 1 16 furniture storage and removals service for a commercial and appr oach Capita with regards to removing their forthcoming break option in December 2017 Ltd domestic customer base. mortons Dairies morton Dairies are a family run business. the company 1a 2 4 Ltd is expanding and has recently acquired three new depots. explore the potential for higher value uses on the prominent adjoining development land, tuff X Processed tuff X Processed Glass Ltd, headquartered at nexus, provide including hotel, trade counter or other roadside uses, subject to planning 1a 3 25 Glass Ltd toughened safety glass for a uK customer base. marKet COmmentary

North West Occupational Market Knowsley Occupational Market Service Char ge Commentary Commentary the service charge budget of £110,345 for the year ending the north West is one the most successful and dynamic 31 august 2017 equates to £0.39 per sq ft (£4.16 per sq m) Knowsley Industrial Park is one of the largest industrial regions outside of the south east. the region benefits from on the industrial and £1.49 per sq ft (£16.05 per sq m) on parks in europe and has excellent road, rail, air and sea excellent proximity to growing markets, a rising population transport connections, providing easy access to Liverpool, the offices. of over 7 million people and continued investment into the manchester, the rest of the uK and beyond. region’s infrastructure. EPC Rating the merseyside industrial and logistics market continues to the weight of demand for, and limited supply of, industrial be very strong, driven by the aforementioned energy Performance Certificates have been stock in the north West region has led to increasing infrastructure improvements highlighted above, but also undertaken on all units providing (ePC) ratings upward pressure on industrial rental levels and reducing the continuing growth of the Jaguar Land rover from B(46) to D(88). Further information is available incentives on good quality accommodation. the region manufacturing plant at nearby speke and a good supply of on request. remains one of the most space constrained markets in the a cost effective and skilled labour force. uK, with limited choice on existing buildings across all size VAT ranges. strong occupier interest has remained throughout With an acute shortage of modern industrial units in the 2016, with major logistics transactions and continued Knowsley area, rental levels on build to suit opportunities the Property is elected for vat, which is payable upon demand for multi-let accommodation in the region’s are expected to be in the order of £5.75 psf, with rents on the purchase price although the sale may be treated dominant locations. older secondary accommodation approaching £4.00 psf as a transfer of Going Concern. as demonstrated within the subject estate. across the north West, demand for warehousing of all sizes remains strong, particularly for sub 25,000 sq ft units, as parcel and logistics operators target flexible recent multi-let occupational transactions include: networks and business growth from smes continues. Date Property Size (sq ft) Rent pa ( psf) units D1& D2 Penrhyn £73,340 Prime headline rents on multi-let stock across the north Jan 2015 14,000 West are now approaching £7.00 psf, with the region also Court, Knowsley (£5.24) £466,818 seeing the strongest rise in secondary rents of any uK Jan 2015 Geopost Ltd, Knowsley 69,467 (£6.72) region over the last few years. Prime industrial land values have increased to nearly £500,000 per acre. recent multi-let investment transactions include:

Size Capital Date Property Price Yield Investment Market (sq ft) Value (psf) throughout 2016 demand for ind ustrial investment nov units a-D & K, Wakefield 141,277 £6.12m 9.00% £43.33 opportunities across the north West region continues to 2016 41 Industrial Park June Penrhyn Court, be driven by general occupier confidence, supply and 43,325 £2.26m 7.75% £52.16 demand imbalance and rental growth. Well located assets 2016 Knowsley Business Park Jan Globe Industrial Park, on motorway junctions with mo dern, well presented 543,983 £14.54m 9.00% £26.73 specifications remain highly attractive to investors. 2016 manchester Dec matalan, Knowsley 277,811 £42.38m 6.30% £88.64 nexus provides an excellent opportunity for investors to 2015 (single let) acquire a well-specified industrial estate in an established location, with limited supply of competing space. PrOPOsaL

Offers are sought in excess of £9,443,000 (Nine Million, Four Hundred and Forty Three Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 9.20% assuming purchaser’s costs of 6.69% and a low capital value of £49 per sq ft. This assumes £150,000 per acre has been Web Access attributed to 2.16 acres (0.87 ha) of additional land. www.cushwakesales.com/cw/nexusindustrial

Cushman & Wakefield LLP Charles Howard Tom Coaker Craig Barton Simon Marshall 43/45 Portman square e: charles. howard@ cushwake.com e: tom. coaker@ cushwake.com e: craig. bar ton@ cushw ake.com e: simon. marshall@ cushwake.com London W1a 3BG t: 020 7152 5364 t: 020 7152 5357 t: 0161 455 3712 t: 0161 235 7641 m: 07810 631 409 m: 07984 814 327 m: 07747 008 460 m: 07909 718 235 november 2016 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. Production by Plusart Limited 0115 972 4000