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Home , Dover, Flete, Folkestone, Manston Airport, Margate, Ramsgate

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CUMMINS LIMITED COLUMBUS AVENUE | MANSTON BUSINESS PARK | | CT12 5BF

SOUTH EAST WAREHOUSE AND DISTRIBUTION UNIT COLUMBUS AVENUE 2

ESTABLISHED DISTRIBUTION LOCATION

EXCELLENT ACCESSIBILITY TO 3 PRIMARY

100% LET TO 5A2 COVENANT

LOW CAPITAL VALUE OF £43.70 PSF

INVESTMENT SUMMARY

High specification distribution warehouse located on Let in its entirety to Cummins Ltd until 19 December 2021 We have been instructed to seek offers for the freehold the established Manston Business Park interest in excess of £7,870,000 (Seven million eight Unexpired term of 1.9 years hundred and seventy thousand pounds), subject to Strategically situated with excellent accessibility to Cummin’s covenant rated 5A2 by Dun & Bradstreet, contract and exclusive of VAT. ports at Ramsgate, and Folkstone as well as the with turnover in 2018 of £2.41bn M2 motorway via the A299 A purchase at this level reflects a net initial yield of 10.00% Low current passing rent of £839,370 per annum, and an attractive capital value of £43.70 psf assuming Freehold reflecting a low average rent of £4.66 per sq ft standard purchaser’s costs of 6.67%. Total floor area of 180,021 sq ft (GIA) Highly reversionary, estimated rental value in excess of £5.00 per sq ft YORK

LEEDS BRADFORDBRADFORD

HUDDERSFIELD

DONCASTERDONCASTER

MANCHESTER

ROTHERHAROTHERHAMM LIVERPOOL

SHEFFIELD

MACCLESFIELD

CHESTERFIELD M6 LILINCOLNN COLCOL N

MANSFIELD M1

LEEK CREWE ALFRETON NEWNENEWARD-ON-TRENTW A R D -ON - T REN T

HUCKNALL ASHBOURNE SSTOKE-ON-TRENT OKE-ON-T REN T DENBY

NOTNONOTTINGHAT T I N GHA M M1

DERBY G RANTHAM

LONG EATON

M6

BURTON UPON TRENT STANFORD

MELTON LOUGHBOROUGH MOWBRAY

M1

CANNOCK LANGHAM LICHFIELD

STAMFORD M54 M6 TOLL TTAMWORTHA MWORTMWORT H LEILELEICESTERI C EST E R

WOLVERWOLVERHAMPTONH AMPTOAMPTO N WWALSALA LSALL SUTTON COLDFIELD M42 M69 PEPETERBOROUGHT ERBOROUERBOROU G H

HINCKLEY

DDUDLEYU D LEY B ROMWROMROMWICHW ICH NUNEATON M6 B IRMIIRMINGHANGHNGH A M CORBY M1 M6 STOURBRIDGE A1 (M) M42 M6 CCOVENTRYOVE N TRY K ETTERING KIDDERMINSTER SOLSOSOLIHULL I H U L L RRUGBU GBY M42 M40 HHUNTINGDONU N TINGDON M45 REDREDDITCHD ITC H

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M5 ROYAROYA L LELEAMINGTOA MIN G T O N DAVENTRY M1 SPA NORTHAMPTONNORTHAMPTON ST NEOTS 14 13 WORCWORCESTERE S TER CAMBRIDGECAMBRIDGE

STRATFORD-UPON-AVON OAKLEY BRADFIELD M11 ST CLARE 11 BEDFORDBEDFORD GREAT TOWCESTER SANDY MALVERN M40 M1 KEMPSTON

EVESHAM NEWPORT 10 PAGNELL BIGGLESWADE

BANBURY 14 9 MILTON ROYSTON M1 KEYNES SHEFFORD SUDBURY 13 HENLOW SAFFRON M50 12 WALDEN 10 BUCKINGHAM

9

HITCHIN HALSTEAD LEIGHTON M11 BUZZARD A1(M)

CHELTENHAM B ICESTER STEVENAGESTEVENAGE 11 7 LUTONLUTON B ISHOP’S 8a GREAT B RAINTREE GLOUCESTER STORTFORD 8 DUNMOW WOODSTOCK 10

9 AYLESBURYAYLESBURY WARE SAWBRIDGEWORTH WELWYN WITHAM M5 GARDEN CITY HERTFORD M1 4 HARLOW HEMEL HATFIELD HODDESON OXFORDOXFORD HEMPSTEAD 8 ST ALBANS 3 M11 7 A1(M) 7 CHELMSFORD 1 CIRENCESTER 21 22 6 20 WALTHAM EPPING M25 19 23 24 25 ABBEY M40 AMERSHAM 26 27 5 FARINGDON ABINGDON WATFORD 18 BARNET ENFIELD M25 CHEPSTOW LOUGHTON

HIGH 4 WYCOMBEWYCOMBE 17 3 BRENTWOOD 2 WICKFORD NEWPORT 4 M1 28 3 M4 1 DIDCOT M40 PINNER M48 MALMSBURY 2 M4 GERRARDS 22 CROSS 29 BASILDON 15 16 1 20 16 16 SWINDON HENLEY-ON-THAMES SOUTHEND-ON-SEASOUTHEND-ON-SEA M49 17 M4 15 COLUMBUS AVENUEMAIDENHEAD UXBRIDGE M25 3 19 17 SLOUGH M25 18a 1 18 8 7 9 6 15 M32 5 4 3 2 30 19 WINDSOR 14 2 HOUNSLOW M5 CHIPPENHAM MANSTON 14 13 READING BRISTOL M4 1 20 BUSINESS 12 13 HEERNESS 10 MARLBOROUGH BRACKNELL 2 HUNGERFORD M4 1 PARK LOCATION11 WOKINGHAM NEWBURY ASCOT 12 1 MARGATMARGATEE BATH 3 MELKSHAM 11 2 Manston BusinessCROWTHORNE Park is located approximately WEYBRIDGE6 miles CROYDON A28 21 DEVIZES 3 A299 PEWSEY west of Ramsgate, 30 miles north east of Ashford and 4 M20 INTERNATIONALINTERNATIONAL CAMBERLEYC AMBERLEY 3 A299 RAMSGATE TROWBRIDGE M2 5 75 miles east of London. M3 WOKING 10 M25 A28 4 4 A249 M25 3 FARNBOROUGH 9 M26 2a 6 M2 7 5 7 A2 TheBASINGSTOKEBASINGSTOK Park 5offersE excellent accessibility to the Channel S EVENOAKS M3 6 8 Ports of Ramsgate (6 ALDERSHOTmiles), Dover (19 miles) and Folkstone M25 FROME GUILDFORD A256 22 (24 miles). The is ’s busiest port, WELLS WARMINSTER ANDOVER FARNHAM M20 8 A28 handing in excess of £119 billion of trade equating to A229 17% of the UK’s trade in goods. GODALMING M23 A2 23 ASHFORDASHFORD GLASTONBURY 9 ROYAL 9 TUNBRIDGE 10 10 Manston is well connected by road being located WELLS DOVER M3 approximately 20 miles east of the M2 (J7) which is accessed CRAWLEYCRAWLEY M5 9 WILTON SALISBURY directly via the A299 dual HASLEMERcarriageway.E To the south east, 11 A21 WINCHESTER the A28 connects with the M20 (J9). These routes provide A2070

11 distributors and manufacturers with important links A259 SHAFTSBURY betweenPETERSFIELD the Ports, London and the wider UK. 13 EASTLEIGH STALBRIDGE M271 4 14 is located approximately 5 YEOVIL 2 3 5 1 7 miles east of Manston Business Park and provides a M27 SOUTHAMPTONSOUTHAMPTON direct service2 to London St Pancras International with an 8 CREWKERNE approximate3 journey time of 1 hour 15 minutes. It benefits CHARD 9 HYTHE HAVANT from access4 to Southeastern’s high speed rail line, the 10 11 ARUNDEL ’s12 departures and arrivals are serviced at Ashford BEAMINSTER International. WORTHING

GOSPORT B OGNOR REGIS LYMINGTON COWES The major London airports of Heathrow, Stansted and Not to scale. Indicative only. Gatwick are all withinSELSEY a 100 mile radius of the Park. Kent LYME REGIS POOLE International Airport is situated to the south east of the BOURNEMOUTH NEWPORT property. In 2019, RiverOak Strategic Partners bought the BEMBRIDGE airport for £16.5 million. The new owners intend to re-open ISLE OF WIGHTWIGHT the airport in the spring of 2022 for short haul and cargo WEYMOUTH flights. SWANAGE DRIVING DISTANCES: RAIL (Ramsgate Station): PORTS: M2(J7) 19 miles Ashford International 35 mins Ramsgate 6 miles M20 (J7) 38 miles Stratford International 55 mins Dover 20 miles M26 (J2a) 45 miles St Pancras International 75 mins Folkstone 27 miles M25 (J5) 55 miles COLUMBUS AVENUE 4

SITUATION 1

The property is situated on Manston Business Park, a modern Business Park in East Kent providing an excellent distribution location to the South East by road and rail, and internationally 2

via the south east’s sea ports. The locations accessibility and 10 connectivity has attracted a number of established occupiers including Wahl UK, Rowe Atlantic, Spiralift Services, Cantium, Cohline (UK) Ltd and Cummins’ European Headquarters. M I 3 N E Situated to the north of the A299, Manston Business Park is S V 11 T A E accessed via the B2190. The property is situated to the north R S U

R B of the Business Park off the main estate road, Columbus O A 7 M D U Avenue. 4 L

6 O 9 C To the south of the property, Elevation Space comprises Rowe 5 INV Atlantic’s HQ and 20 business units let to SMEs. ICT A W AY The Business Park has become a regional enterprise hub through Manyweathers Properties’ development of 150 8 E light industrial workshop units “The Oaks” and V A S U “Maple Leaf”. These units have all either B M been let or purchased off plan, U L O successfully attracting an array C of local business, SMEs and 12 owner occupiers to the business park. B2190 WESTGATE-ON-SEA B2190 SPITFIRE WAY

A28

WESTWOOD INDUSTRIAL CUMMINS 1 Subject Property 7 Invictus Way ESTATE LTD A229 2 Cummins Limited 8 The Oaks WOODCHURCH 3 Wahl UK 9 Maple Leaf

9 0 4 Elevation Space 10 Cohline UK A229 B 2 1 OLD MANSTON 5 Rowe Atlantic 11 Heli Charter Limited A6140 6 Invictus Products 12 Summit Aviation A229 A253 MANSTON BUSINESS PARK MONKTON RAMSGATE M2 MINSTER RiverOak Strategic Partners have set out By 2024, they predict that 680,000 M2 plan to reopen Manston Airport for short passengers and 170,000 tonnes of cargo A229 haul and cargo flights by Spring 2020. will fly from the airport.

B2190

1 COLUMBUS AVENUE

7 2 10 5 9 6 4 8

12 11 3

1 Kent International Airport 7 The Oaks 2 Summit Aviation 8 Wahl UK 3 Cohline UK 9 Invictus Products 4 Maple Leaf 10 Invictus Way 5 Rowe Atlantic 11 Cummins Limited 6 Elevation Space 12 Heli Charter Limited COLUMBUS AVENUE 6

DESCRIPTION

Developed in 2006, the property provides a purpose built, two bay, high specification distribution warehouse with ancillary office accommodation totalling an area of 180,021 sq ft (GIA). The building has been developed to an institutional standard to include the following specification:

Steel portal frame with a minimum working height of 10 metres 9 dock level and 2 surface level access electrically operated loading doors Three storey office accommodation incorporating raised floors and suspended ceilings Large service yard extending to over 42 metres 300 car parking spaces and separate parking for HGVs

Further to the base specification the Landlord provided an enhanced specification which is rentalised by way of an ‘additional rent’ as detailed in the tenancy section. The enhanced specification includes the following:

Lighting in the warehouse accommodation An operations office totalling 1,600 sq ft within the warehouse Concrete pad crane foundations Heating and ventilation systems in the warehouse accommodation Office link covered walkway VRF heating and cooling system to the offices

Further works undertaken by the tenant include a full sprinkler system to the warehouse roof and two enclosed links connecting the property with their existing facility opposite. The property is accessed via a dedicated access road off Columbus Avenue which runs around the perimeter of the building to the service yard. COLUMBUS AVENUE 7

ACCOMMODATION SITE

The property has been measured in accordance with the RICS Property Measurement The site totals approximately 8.55 acres (3.46 hectares), reflecting a site cover (1st Edition) 2015 and comprises the Gross Internal Areas (GIA) shown in the table below: of approximately 44%.

Use Floor Area (sq ft) Area (sq m) 3rd 5,510 511.9 Office 2nd 5,354 497.4 1st 5,354 497.4 Industrial Ground 163,803 15,217.8 Total 180,021 16,724.5

El Sub Sta

Warehouse

Tks

El S ub Sta

El Sub Sta

Factory

Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved COLUMBUS AVENUE 8

TENANCY TENANT’S COVENANT

The property is let to Cummins Limited (00573951) on a full repairing and insuring Cummins is one of the largest designers, lease for a term of 15 years commencing 20th December 2006 and expiring 19th manufacturers and distributors of diesel December 2021. and alternative fuel engines in the world. They have been operating in This provides an unexpired term of 1.9 years. the UK for over 50 years and currently The total current rent is £839,370 per annum, comprising an annual rent of £770,850 employ over 58,000 people worldwide, per annum plus an ‘additional ent’ of £68,520 per annum to reflect the Landlord’s approximately 5,000 of them in the UK. enhancements to the base specification. This reflects a low overall passing rent of £4.66 per sq ft. Cummins have been located in The lease is contracted inside the Landlord and Tenant Act 1954. Manston for almost 20 years and occupy the adjacent, interconnected The tenant has been located in Manston for almost 20 years. They also occupy the distribution unit on Manston adjacent distribution/warehouse building which is connected to the property via two Business Park. They are one of the interconnecting linkways. UK’s major distributors, 70% of products produced are exported further promoting the importance of Manston’s proximity to the Ports of Ramsgate, Folkstone and Dover

The company has a Dun & Bradstreet credit rating of 5A2 and a summary of the financial accounts for the tenant for the last three years are set out below:

Year End 31/12/2018 (£’000s) 31/12/2017 (£’000s) 31/12/2016 (£’000s)

Sales/Turnover £2,410,676 £1,881,633 £1,502,923

Profit/(Loss) Before £244,774 £140,299 £138,653 Taxes

Tangible Net Worth £357,327 £340,111 £384,063 COLUMBUS AVENUE 9

INVESTMENT MARKET

The distribution and warehouse sector has fared extremely well despite the political and economic environment faced over the past few years. The market has been underpinned by a strong occupational story which has remained buoyant throughout the last 18 months. This is a direct result of the combination of the evolving nature of the retail market towards online sales, a structural shift in demand and an acute under-supply of suitable accommodation in the sector. As such, occupational demand for small units and larger distribution/storage units have increased as occupiers seek to facilitate local last mile and multinational distribution chains. In the current market, there continues to be a significant weight of money targeting the sector, in particular for those assets that benefit from strong property fundamentals and excellent connectivity. The table below depicts some of the most recent and comparable transactions.

Cap Value WAULT Date Property Size (sq ft) Price (£m) Yield (%) Comment (£ per sq ft) (breaks) Omega Boulevard, Capitol Park, Dec-19 85,489 £5,938,000 6.80% £69 2 Let to Croda Chemicals Doncaster

Aug-19 New Era Estate, 298,600 £17,800,000 9.00% £60 2 Let to Wiley

Mar-19 SIRFT, Europa Way, Sheffield 335,000 £23,465,000 n/a £70 n/a Vacant

Jan-19 Cribbs Causeway Centre, Bristol 423,000 £23,500,000 8.01% £56 2 Tenant vacated with 2 years left on lease.

Sep-18 Drayton Industrial Estate, Daventry 89,688 £8,150,000 5.75% £91 2.5 Let to Cummins Limited.

Apr-18 14 Invicta Way, Manston 97,400 £4,300,000 n/a £44 n/a Vacant. Acquired by owner occupier Wahl UK.

EPCs

The property’s EPC rating is E(110). The certificate and recommendation report is available upon request.

PLANNING

The property benefits from planning consent for use B1, B2 and B8 of the and Country Planning Order 1987. 10

VAT ANTI-MONEY CONTACT LAUNDERING For further information or to arrange an inspection, please contact one of the following:

The property is elected for VAT The purchaser will be required to purposes and it is anticipated that provide information as required and the sale will be treated as a transfer requested in our to comply with our of a going concern. Anti-Money Laundering policy.

Jonnie Ray Tim Cuzens Ryan Meader [email protected] [email protected] [email protected] 0207 534 0994 0207 534 0992 0207 534 0995 PRICING 07917 647 652 07900 263 493 07585 446 354

We have been instructed to seek offers for the freehold interest Misrepresentation Act 1967. Cortex Partners, for themselves and the vendors of the property whose agents they are, give notice that: 1 These particulars are a general outline only for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract; 2 in excess of £7,870,000 (Seven million eight hundred and seventy Cortex Partners cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions of use and occupation and other details contained herein and therefore prospective purchasers must not rely on them as statements of factor representations and must satisfy themselves as to thousand pounds), subject to contract and exclusive of VAT. accuracy; 3 Cortex Partners or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property; 4 Rents and prices quoted may be subject to VAT in addition; 5 Cortex Partners will not be liable in negligence or otherwise for any loss arising A purchase at this level reflects a net initial yield of 10.00% and an from the use of these particulars; 6 No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn; 7 Cortex Partners have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water attractive capital value of £43.70 psf assuming standard purchaser’s contamination. The purchaser is responsible for making their own enquiries in this regard; 8 All maps are for illustrative purposes only. January 2020 costs of 6.67%. www.cube-design.co.uk (Q4280)