BLAYDON TRADE PARK I & II, , , NE21 5AB

Trade Park Investment Opportunity BLAYDON TRADE PARK I & II, BLAYDON, NEWCASTLE UPON TYNE, NE21 5AB

Trade Park Investment Opportunity

INVESTMENT SUMMARY LOCATION & SITUATION

• Two prominent trade parks located next to the A1 Western Bypass. Blaydon is located approximately four miles to the west of Newcastle Upon Tyne and • The property comprises two trade estates totalling 61,464 sq ft (5,710.2 sq m) five miles north west of . The town benefits from good road communications with the A1 Western Bypass running to the north, connecting to Junction 34 of the Gross Internal Area across five terraces. A1(M) motorway to the south east. • WAULT of 3.48 years to lease expiries and 2.16 years to lease breaks. Blaydon Trade Park is located on the southern side of Chainbridge Road, approximately • Freehold. 1.5 miles west of the MetroCentre. Access is gained off Toll Bridge Road and the site is • Passing rent, including rental top-ups, equates to £380,916 per annum highly visible from the A1 Western Bypass bridge and has good access to the A1 both (£6.20 per sq ft). north and south. The premises are less than a mile east of Blaydon town centre, which • 26% of the income has been secured within the last 12 months. benefits from a range of shopping facilities and a bus station. • Offers in excess of £4,350,000, Subject to Contract and exclusive of VAT. • Net Initial Yield of 8.28% assuming purchaser’s costs of 5.80%. • Capital Value of £71 per sq ft. Subject to Contract & Exclusive of VAT

A6085 A191

A6085

A189 A1

Armstrong Works A695 Arco A695 Lindab Fiat Corus Royal Mail A695 Blaydon Petersen Trade, Stainless Windows Rigging & Doors Limited A1114 A1

A694 BLAYDON TRADE PARK I & II, BLAYDON, NEWCASTLE UPON TYNE, NE21 5AB

Trade Park Investment Opportunity

DESCRIPTION SITE

The property comprises a multi let industrial estate of 18 units developed in two The site comprises approximately 3.83 acres (1.55 hectares) which represents a site stages in 2003 and extended in 2008. The estate totals a Gross Internal Area of density of approximately 37%. 61,464 sq ft (5,710.2 sq m). The units are of steel portal frame construction with metal clad elevations. There is an extensive shared parking facility at the front of the units. The units benefit from a single roller shutter door at the front and an eaves height of between 3.65m – 6.0m. Internally the units have been fitted out to the tenant’s PHASE I PHASE II specification.

ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following approximate Gross Internal Floor Area. Gross Internal Area Description Sq ft Sq m Unit 1, Blaydon Trade Park I 3,488 324.0 Unit 2, Blaydon Trade Park I 3,488 324.0 Unit 3, Blaydon Trade Park I 3,488 324.0 Unit 4, Blaydon Trade Park I 3,488 324.0 Unit 5, Blaydon Trade Park I 4,650 432.0 Unit 6, Blaydon Trade Park I 4,650 432.0 Unit 7, Blaydon Trade Park I 3,488 324.0 Unit 8, Blaydon Trade Park I 2,325 216.0 For indicative purposes only. Unit 9, Blaydon Trade Park II 3,119 289.8 Unit 10, Blaydon Trade Park II 3,774 350.6 TENURE Unit 11, Blaydon Trade Park II 3,774 350.6 Unit 12, Blaydon Trade Park II 3,674 341.3 The property is held Freehold. Unit 13, Blaydon Trade Park II 3,535 328.4 Unit 14 & 15, Blaydon Trade Park II 4,836 449.3 Unit 16, Blaydon Trade Park II 2,906 270.0 SERVICE CHARGE Unit 17, Blaydon Trade Park II 2,898 269.2 The estate is managed via two service charge budgets for Blaydon I and Blaydon II. Unit 18, Blaydon Trade Park II 3,883 360.7 For 2015 the budgets equate to £21,800 per annum and £23,850 per annum Total 61,464 5,710.0 equating to approximately £0.75 per sq ft and £0.74 per sq ft respectively. BLAYDON TRADE PARK I & II, BLAYDON, NEWCASTLE UPON TYNE, NE21 5AB

Trade Park Investment Opportunity tenancy The estate is multi-let producing a total rent, including stepped rental top-ups, of £380,916 per annum reflecting an average rent across the estate of £6.20 per sq ft. The estate benefits from a weighted average unexpired lease term of 3.48 years to lease expiries and 2.16 years to lease breaks.

Unit Tenant Unit Size Rent (£ per Rent Start Expiry Next Review Break Comments EPCs Sq Ft annum) (psf) Date Date Date Date Unit 1 Blaydon Trade Park Phase I Nixon & Hope Property Ltd 3,488 £25,420 £7.29 15/02/2013 14/02/2023 15/02/2018 15/02/2018 Break requires 3 months notice. E Unit 2, Blaydon Trade Park Phase I Northern Stationery (UK) Ltd 3,488 £25,850 £7.41 01/02/2014 31/01/2024 01/02/2019 01/02/2019 Break requires 6 months notice. C Unit 3, Blaydon Trade Park Phase I CR Services Ltd 3,488 £17,500 £5.02 22/10/2014 21/10/2019 22/04/2016 Break requires 3 months notice.C Schedule of Condition. Unit 4, Blaydon Trade Park Phase I The Wood Idea (Flooring 3,488 £26,153 £7.50 01/01/2007 31/12/2016 C & Doors) Ltd Unit 5 Blaydon Trade Park Phase I WREV Ltd 4,650 £27,900 £6.00 06/02/2013 05/02/2018 Fixed rental increase to £27,900 C on 18th August 2015. Vendor to top-up to this level. Unit 6, Blaydon Trade Park Phase I Your Home Improvements 4,650 £23,150 £4.98 20/10/2014 19/10/2024 20/10/2019 20/10/2019 Fixed rental increase to £23,150 C NE Limited on 20th October 2015. Vendor to top-up to this level. 6 months notice required on break. Unit 7, Blaydon Trade Park Phase I Kevin Scott 3,488 £19,200 £5.51 07/06/2010 06/06/2015 Prohibited use within class A1. C Unit 8, Blaydon Trade Park Phase I R Lord and Co (Newcastle) Limited 2,325 £15,000 £6.45 13/11/2009 12/11/2019 Prohibited use within class A1. C Schedule of Condition. Unit 9, Blaydon Trade Park Phase II Profix Installations (North East) 3,119 £21,850 £7.01 16/01/2006 15/01/2016 Restriction of not more than 20% D Limited of the internal area being used for retail or offices. Unit 10 Blaydon Trade Park Phase II Norland Wools Ltd 3,774 £17,000 £4.50 19/09/2014 18/09/2015 Let on a Tenancy Agreement. G Unit 11 Blaydon Trade Park Phase II Pringle Contracts (Northern) Ltd 3,774 £13,936 £3.69 23/01/2015 22/01/2020 Stepped rental increases to £13,936 C on 23rd January 2017. Vendor to top up to this level. Unit 12 Blaydon Trade Park Phase II Vacant 3,674 £20,207 £5.50 Vendor to provide 12 month G rental guarantee. Unit 13, Blaydon Trade Park Phase II Up North Catering and Leisure Ltd 3,535 £20,550 £5.81 31/08/2005 30/08/2015 - Unit 14 & 15, Blaydon Trade Park Phase II M & S Supplies (Liverpool) 4,836 £33,850 £7.00 09/02/2007 08/02/2017 Prohibited use within class A1. B Limited Unit 16, Blaydon Trade Park Phase II Andrew Kerr 2,906 £15,950 £5.49 08/08/2011 07/08/2016 Rent deposit of £3,000 held. B Unit 17, Blaydon Trade Park Phase II Thomas Tulip (t/a Tulip's 2,898 £15,950 £5.50 13/10/2010 12/10/2015 Rent deposit of £7,500 held. B MOT Centre) Unit 18, Blaydon Trade Park Phase II Rixonway Kitchens 3,883 £27,200 £7.00 06/04/2006 05/04/2016 C Adv Hoarding, Blaydon Trade Vivid Outdoor Media (UK) Ltd - £5,000 - 25/03/2013 24/03/2025 25/03/2017 15/03/2017 Outside L&T Act 1954. Park Phase I Adv Hoarding, Blaydon Trade Vivid Outdoor Media (UK) Ltd £4,250 - 24/03/2025 25/03/2017 25/03/2017 HOT’s agreed for a co-terminous Park Phase I lease to expire on 24 March 2025. Outside L&T Act 1954. Break requires 3 months notice. Adv Hoarding, Blaydon Trade Vivid Outdoor Media (UK) Ltd - £5,000 - 25/03/2013 24/03/2025 25/03/2017 15/03/2017 Outside L&T Act 1954. Break Park Phase II requires 3 months notice. Store at rear of 13 Blaydon Trade Vacant - - Park Phase II Substation, Blaydon Trade Park II Northern Electric - £0 - 07/02/2005 06/02/2065

61,464 £380,916 £6.20 BLAYDON TRADE PARK I & II, BLAYDON, NEWCASTLE UPON TYNE, NE21 5AB

Trade Park Investment Opportunity covenant The estate benefits from a diverse tenant mix, with approximately 40% of the passing income secured to the following tenants: Nixon & Hope Property Limited, M & S Supplies (Liverpool) Limited, R Lord & Co (Newcastle) Limited, The Wood Idea (Flooring/Doors) Ltd, Rixonway Kitchens and Northern Stationery (UK) Limited.

Nixon & Hope Property Limited (07766821) trades R Lord & Co (Newcastle) Limited (01014434) was Rixonway Kitchens (01382317) was incorporated in as Floors2Go, one of the UK’s biggest wood flooring incorporated in 1971 and is involved in the hiring and 1978 and is a family company involved in kitchen design specialists. The company currently operates 40 stores sale of heavy tooling products. The company trades from and manufacture who for the year ending February 2014 nationwide. 10 locations in the North East and in the year to April reported turnover of £35,147,000, a pre-tax profit of 2014 had a net worth of £809,909. £685,000 and net worth of £17,559,000.

M & S Supplies (Liverpool) Limited (01626787) is the leading supplier of hair and beauty products in the North of . The company was incorporated The Wood Idea (Flooring/Doors) Ltd (SC407421) is an Northern Stationery (UK) Limited (061444418) in 1982 and trades from 10 locations. In the year established business operating for over 25 years in the was established in 1991 and is involved in the sale to May 2014 the company reported a turnover of manufacture and supply of wooden products such as and distribution of office supplies and equipment. £6,747,386. laminate flooring, doors and staircases. BLAYDON TRADE PARK I & II, BLAYDON, NEWCASTLE UPON TYNE, NE21 5AB

Trade Park Investment Opportunity

VAT We understand that the property is registered for VAT which will be chargeable on the sale price unless the transaction can be treated as a Transfer of a Going Concern (TOGC).

PROPOSAL We are instructed to seek offers in excess of £4,350,000, Subject to Contract and exclusive of VAT, which reflects a Net Initial Yield of 8.28% assuming purchasers costs of 5.80%.

FURTHER INFORMATION For further information or to arrange an inspection please contact either of the following: Will Gubb Dickon Wood Knight Frank LLP Knight Frank LLP T: +44 (0) 207 861 1595 T: +44 (0) 191 594 5036 M: 07436 153573 M: 07966 023924 [email protected] [email protected] Gareth James Mason Knight Frank LLP Knight Frank LLP T: +44 (0) 207 861 5128 T: +44 (0) 207 861 1214 M: 07918 561499 M: 07920 087969 [email protected] [email protected]

Knight Frank LLP, 55 Baker Street, London, W1U 8AN

Subject to Contract & Exclusive of VAT Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ("information") as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members' names. March 2015. Designed & produced by www.thedesignexchange.co.uk Tel: 01943 604500.