Well Secured Industrial Investment Opportunity

WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY

Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD Lotus Lightweight Structures Ltd

enter Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY

investment summary • Located close to the M1 in the heart of the East Midlands core manufacturing and distribution area. • Situated on the A45 facilitating direct access to the national motorway network. • Well specified accommodation offering 5,193.42 sq m (55,902 sq ft) of warehouse and office accommodation. • Let to the internationally renowned automotive company Lotus (Lotus Lightweight Structures Ltd) for a term of 15 years from October 2014, with a mutual break option at 1 April 2022 providing an unexpired term of 6.2 years. • The property is Lotus and Aston Martin’s sole chassis anodising facility. • The tenant has recently injected £200,000+ of investment in the plant. • Current reversionary rent of £249,264 per annum (£4.46 per sq ft), with fixed rental uplifts in 2019 and 2024 rising to £274,813. • We are instructed to seek offers in excess of £2,770,000 (Two Million Seven Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this price reflects an attractive Net Initial Yield of 8.50% after deducting purchasers’ costs of 5.80% and equates to £49.55 per sq ft overall. • Attractive guaranteed reversionary yield of 8.93% in 2019, and 9.38% in 2024 via the stepped rental uplifts. investment summary aerial location site description accommodation tenancy covenant further information Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY

the property

investment summary aerial location site description accommodation tenancy covenant further information Sywell Road, Park Farm Industrial Estate,

Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY A location 6 d Roa ton ugh Wellingborough is a major industrial and distribution centre located midway between London and Bro

Birmingham, approximately 12 miles north east of Northampton and the M1 motorway.

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communications via the A14, A6 and A1, facilitating access to the major regional a s y 9 ti R o p o n a a Roa r centres of Coventry, Peterborough, Cambridge and Leicester, the East Coast ports, as well as the d h d T wider South East and Midlands. Wellingborough rail station provides direct services to London St Pancras International, with an average journey time of approximately 55 minutes, and oad Nottingham, with an average journey time of approximately 1 hour. Several rail freight terminals are e R s ad Redho u o located nearby, including Corby and Daventry International Rail Freight Terminal (DIRFT). R A6 k c i A519 M1 w d A5013 A453 r A518 a A51 The area is considered to be the UK’s primary logistics location as its extensive road networkA1 - H A34 A607

A41 serving both the South East, Midlands and the North - and excellent labour supply make it A519 9 23 d

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A421 g n i MILTON KEYNES Clifton d 15 d Royston o investment summary aerial location site description accommodation tenancy covenant further informationP Bletchley Flitwick Buckingham

Stevenage Luton

ST. ALBANS

LONDON Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY site The property extends to approximately 3.56 acres, as shown edged in red on the plan below, and provides a site cover of approximately 42%.

investment summary aerial location site description accommodation tenancy covenant further information Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY

description The property comprises a secure, self-contained warehouse constructed in the mid 1980’s, providing industrial and ancillary office accommodation totalling approximately 5,193.42 sq m (55,902 sq ft).

The warehouse consists of a steel portal frame structure with a mix of composite panel / brick cladding, offering two level access and one dock level loading doors, and separate office accommodation to the front of the building. The warehouse benefits from a minimum clear eaves height of approximately 5.60 meters. More recently the over £200,000 of capital expenditure has been injected into the premises to improve operating systems and the installation of a new roof.

The property benefits from a generous loading yard with HGV parking, and c60 dedicated car parking spaces to the front of the unit.

The warehouse is the only automotive aluminium anodising facility in the UK manufacturing every Lotus and Aston Martin car chassis. The building has been extensively fitted out by the tenant during their time in occupation with continuous tecnology upgrades.

accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following Gross Internal Areas:

Sq m Sq ft Warehouse 4,321.58 46,517 Office 871.89 9,385 Total 5,193.42 55,902 investment summary aerial location site description accommodation tenancy covenant further information Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY tenancy The property is let in its entirety to Lotus Lightweight Structures Limited on a Full Repairing and Insuring lease for a term of 15 years from 2 October 2014, with a mutual break option 1 April 2022 providing an unexpired term of 6 years and 2 months. The current rent passing is £249,264 per annum (£4.46 per sq ft), rising to £261,727.20 (£4.68 per sq ft) on 2 October 2019, and then £274,813.56 (£4.92 per sq ft) on 2 October 2024.

The occupational lease is guaranteed by Group Lotus PLC.

Lotus is a British manufacturer of famous sports and racing cars, and for the highly successful Team Lotus in Formula One. The Guarantor, Group Lotus Plc recently received an £83m Lotus designs and builds race and production automobiles of light weight and fine handling characteristics, with facilities in investment by parent company Lotus Cars Ltd. This injection the United Kingdom, United States, China, and Malaysia. is for general operations throughout Group Lotus Plc which includes Lotus Lightweight Structures Ltd. The Lotus The company was formed in 1952 by Colin Chapman. In 1959 The Lotus Group of Companies was formed, this was made Lightweight Structures Ltd facility is vital to both their, and up of Lotus Cars Limited and Lotus Components Limited, which focused on road cars and competition car production. The Aston Martin’s operation as there is no other alternative in company found success on and off the road throughout the 50s’s, 60s’ and 70s’ with several Formula One Championships the UK. and critical sales in the Elite, the Elan and the Europa which saw the British car maker teaming up with Ford. Later, success continued with the Lotus Esprit, which was to prove one of the company’s longest lived and most iconic models. Their last 3 year accounts are set out below:

The 80s’ saw an agreement between Lotus and Toyota to share intellectual property and applied expertise, and later the Lotus Lightweight Structures Ltd appointment of a new Chairman. In 1986, Group Lotus companies was sold to General Motors. GM later sold the company to Italian businessman Romano Artioli, who also owned Bugatti. 31 Mar 2015 31 Mar 2014 31 Mar 2013 Turnover £4,755,000 £8,190,000 £13,385,000 Today, Lotus is owned by DRB-HICOM through its subsidiary Proton, a Malaysian car company listed on the Kuala Lumpur Pre Tax Profit -£1,832,000 -£1,361,000 -£2,467,000 Stock Exchange. They acquired the company from former owner Romano Artioli in 1996. Shareholders’ Funds -£10,120,000 -£8,288,000 -£6,927,000 In 2004 a strategic relationship was established between the now Lotus Lightweight Structures Ltd and Aston Martin to supply anodized chassis parts. The two companies worked jointly to construct an anodizing process specifically to address Group Lotus PLC (Guarantor) bonding strengths and quality. In 2009 Lotus signed a 10 year occupational lease for the facility at Wellingborough. In 2014 Lotus agreed to a new 15 year reversionary lease. 31 Mar 2015 31 Mar 2014 31 Mar 2013 Turnover - - - As well as anodizing their own Lotus chassis, they continue to serve Aston Martin and BCW Engineering (supplier to Aston Pre Tax Profit -£902,000 -£2,120,000 -£287,104,000 Martin). Both Lotus and Aston Martin are set to increase production throughout 2016 and thereafter to meet huge demand from growing overseas markets. Shareholders’ Funds £91,750,000 £9,066,000 £11,186,000

Credit Safe score them 58/100, low risk.

investment summary aerial location site description accommodation tenancy covenant further information Sywell Road, Park Farm Industrial Estate, Wellingborough, NN8 6XD Lotus Lightweight Structures Ltd WELL SECURED INDUSTRIAL INVESTMENT OPPORTUNITY vat We understand the property has been opted to tax and it is therefore envisaged the transaction will be conducted as a Transfer of a Going Concern. proposal We are instructed to seek offers in excess of £2,770,000 (Two Million Seven Hundred and Seventy Thousand Pounds) subject to contract and exclusive of purchasers costs at 5.8%. A purchase at this level would reflect an attractiveNet Initial Yield of 8.50% and a guaranteed reversionary yield of 8.93% in 2019 and 9.38% in 2024. This reflects a low capital value of £49.54 per sq ft. epc The building has an EPC Rating of C71. viewing For more information or to arrange an inspection please contact:

Gavin Quinn Mark Frampton DD: 020 7911 2558 DD: 0207 911 2181 M: 07960 425411 M: 07769 931 761 E: [email protected] E: [email protected]

gva.co.uk/9578

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agents and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agents nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. February 2016. RB&Co 0161 833 0555. www.richardbarber.co.uk investment summary aerial location site description accommodation tenancy covenant further information