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Home , A1 (Newcastle upon Tyne), Bill Quay, Cullercoats, Jarrow, Jesmond, Pelaw

INVESTMENT OPPORTUNITY Glover Network Centre, Washington andFOR NetworkSALE Centre, Jarrow

Two prime multi let industrial estates with excellent reversionary potential INVESTMENT SUMMARY

• Rare opportunity to acquire two prime multi let industrial estates • Low passing rents on both estates giving excellent reversionary potential prominently located within the popular and established industrial areas of Washington and Jarrow • Buoyant occupational market, with a notable shortage of quality units within this size bracket • Comprising 31 modern well specified light industrial units, ranging between 860 sq ft up to 2,950 sq ft and totalling 61,557 sq ft • Substantial further income surplus from both the facilities and utilities charges, averaging £71,500 pa • Glover Network Centre is prominently situated in the immediate vicinity of Nissan UK in Washington and is fully let to 10 tenants with Jarrow • We are instructed to seek offers in excess of £4,000,000 subject to Network Centre 94% let to 17 tenants, producing a total annual rent contract and exclusive of VAT. A purchase at this level reflects a net of £286,936 initial yield of 6.73% reverting to 7.94% after purchaser’s costs of 6.54%, representing a capital value of only £64.98 per sq ft • Low site coverage on both estates with 25% on Glover and 26% on Jarrow, giving generous yard and parking areas • The significant utilities and facilities recharge surpluses add a further 1.68% to the income return Moret YT

Cralington Otterurn Seaton Sluice

Ponteland LOCATION Newcastle itle a

International irort illingwort

Washington and Jarrow are strategically located towns, which form part of the Tneout Silverlink wider conurbation of , the seventh largest in the country, with a ingston Park Retail Gosort population of 1.3 million people. Washington is situated 8 miles south, and Jarrow Sout Gosort 6 miles east of , the commercial and administrative capital Nort Sields ea of the North East. allsend Sout Sields Washington and Jarrow are both situated very close to the A19(M), a key TYNE TUNNE NECSTE arterial route throughout the North of , connecting the to the south Central Station Jarrow to to the north. Glover Network Centre also benefits from eurn immediate access to the A1231 Highway, which connects the A19(M) to the A1(M). Metrocentre Gatesead

The North East is well served by public transport, with Newcastle Central Station, a main station on the East Coast mainline, connecting the city to in

2 hours 50 minutes and Edinburgh in 1 hour 30 minutes. The Metro system comprising 60 stations throughout Newcastle, , Sunderland and M making it the second largest in the UK behind the London underground.

Consett Newcastle international airport serves over 40.8 million passengers annually to 80 SUNERN destinations worldwide. The airport operates via 18 scheduled airlines including M asington Emirates, British Airways, Easyjet and Air France providing daily flights to ura Teesside Sout Sout domestic and international destinations.

Northumberland West Airport Bank Foot Regent Centre Benton Park

Four Lane Ends Palmersville Monkseaton Callerton Kingston Wansbeck South Parkway Park Road Ilford Road

West Jesmond

Haymarket Chillingham Meadow Monument Road Well St James Manors Hadrian Road Percy Main Central Station River Tyne

Gateshead Felling Jarrow Simonside Chichester

Hebburn South Heworth Gateshead Shields Stadium

Fellgate East Boldon Main Bus Interchange Stadium of Light Rail Interchange St Peter’s Ferry (only A+B+C tick ets valid) Sunderland Airport University

Park and Ride Millfield Park Lane INVESTMENT OPPORTUNITY Glover Network Centre SpireFOR Road, Washington, SALE NE37 3ES SITUATION

To Newcastle ewort Gol Clu West To Tne Tunnel Nort Boldon ollings ane

ea ane

George Glover asington Sringwell Road Gol Course Network Centre

M

Springwell NISSN U

CSONIC To Sunderland NSEI VNTEC Road Sire

Glover Network Centre is situated at the very heart of the North East’s industrial market on one of Washington’s newest estates, close to Nissan’s UK manufacturing plant and numerous tier one suppliers to Nissan, including Calsonic Kansei and Vantec.

WASHINGTON The estate is accessed off Spire Road, the main route through To Teesside Sout

Glover Industrial Estate, which gives immediate access to the A1231 M To ura RIVER WEAR Sunderland Highway, which connects the A1(M) to the west and the Sout Pattinson Road A19 to the east.

Glover Network Centre

El Sub Sta

0m 10m 20m 30Eml Sub Sta S P

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DESCRIPTIONE

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Glover Network Centre consists of 12 self contained modern workshop / trade counter units, arranged in 3 terraces around a large shared yard. The units are of steel portal frame construction with part brick, part insulated profile cladding elevations. Each unit has roller shutter access to the warehouse and a separate personnel front door leading to an office / trade counter area. Each unit benefits from a minimum eaves height of 4.3m rising to 5.6m at the apex. Externally, the shared yard provides 53 car parking spaces as well as waste storage areas and cycle store provisions, with the estate secured via an electric gate and perimeter wire fencing and benefitting from an estate wide CCTV system.

Tenure Glover Network Centre is held Freehold. TENANCY SCHEDULE

Lease Information Rent ERV Facilities Unit Tenant Area Lease Unexpired Charge Lease End Term Rent Review Break Rent Rent psf MR psf Start Term

Raymond Whitehead & Richard Post 01/10/2019 1 1,954 01/10/2018 08/10/2021 3 3.00 - £11,724 £6.00 £11,724 £6.00 £2,736 Wright t/a Eagle Archery (6 months notice)

Polar Speed Distribution Limited 28/04/2021 2 1,954 25/12/2016 28/04/2026 9.35 7.55 28/04/2021 £9,770 £5.00 £12,701 £6.50 £2,758 (03155092) (6 months notice)

Mr Mark Thomas Taylor Holding 3 1,954 01/02/2015 31/01/2018 3 - - £9,770 £5.00 £12,701 £6.50 £2,758 and Mrs Helen Taylor t/a DVLC Over

Mr Mark Thomas Taylor Holding 4 2,943 01/02/2015 31/01/2018 3 - - £14,715 £5.00 £18,394 £6.25 £3,759 and Mrs Helen Taylor t/a DVLC Over

Maintest Engineering Limited Holding 5 2,943 30/03/2013 29/03/2016 3 - - £14,715 £5.00 £18,394 £6.25 £3,759 (02842153) Over

Bespoke Metering Solutions 6 2,844 22/06/2017 21/06/2022 3 3.70 - - £17,064 £6.00 £17,775 £6.25 £3,982 Limited

Walker Filtration Limited 26/03/2019 7 2,844 26/03/2017 25/03/2020 3 1.45 - £15,642 £5.50 £17,775 £6.25 £3,982 (01726079)] (3 months notice)

8 2,366 £15,379 £6.50 £3,094 Enspec Power Limited Holding 16/02/2013 15/02/2016 3 - - £22,477 £4.75 (04066153) Over 9 2,366 £15,379 £6.50 £3,094

MZ Clothes Ltd 01/06/2021 10 2,366 01/06/2018 31/05/2023 5 4.64 01/06/2021 £14,196 £6.00 £15,379 £6.50 £3,312 (10649224) (6 months notice)

Electric Vehicle Systems Limited Holding 11 2,844 09/02/2012 08/02/2015 3 - - £14,220 £5.00 £17,775 £6.25 £3,573 (01488531) Over

Conex Data Systems Limited Holding 12 2,844 11/01/2012 10/01/2015 3 - - £14,220 £5.00 £17,775 £6.25 £3,659 (07172568) Over

30,222 £158,513 £191,151 £40,465

Additional Income Each tenant pays a facilities charge currently totaling £40,465. This charge is water are supplied on a central landlord’s meter, with each tenant sub-metered apportioned on a floor area basis and is not reconciled. This makes a substantial and recharged. This account also generates a substantial surplus which has averaged surplus, which has averaged £28,000 pa over the last 3 years. Electricity, gas and £12,000 pa over the last 3 years. INVESTMENT OPPORTUNITY Jarrow Network Centre BerkleyFOR Way, Jarrow, NE31SALE 1SG SITUATION

To Nort

WALLSEND TYNE TUNNE

JARROW

HEBBURN To Port o Tne Sout Sields

and Coast

RIVER TYNE Jarrow Network Centre

Monkton Primrose

Hedworth

To Newcastle Cit Centre

Fellgate Wardley Jarrow Network Centre occupies a position in a well established and popular industrial area on the south bank of the River Tyne, with access to the A19(M) provided via the A185. The area is in a strategic location less than a mile from the A19 dual carriageway and less than 3 miles from the Port of Tyne, the UK’s second largest car exporting port. The estate is accessed via Blackett Street (B1297) which is a key M local route and is equidistant between Jarrow and Hebburn town To ura To Sunderland and Sout Teesside centres. Jarrow Network Centre is well served by public transport, and Sout with two metro stations within a one mile radius.

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15 .

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T m Blackett Street Blackett R E N G M The hite J Lead P O E l

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29 35

DESCRIPTION

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6 2

Jarrow Network centre comprises 19 self-contained modern workshops/trade 1

counter units. The development is arranged via 3 blocks all facing onto a 8

R 1 o

large central shared yard. y a E l I s t ndu s t a

All the units are of steel portal frame construction with part brick, part t e r

insulated profile cladding elevations and roof. Each unit comprises a i a roller shutter entrance to the warehouse and separate personnel door l leading to an office/trade counter area. Internally, each unit benefits from a minimum eaves height of 4.86m rising to 5.92m at the apex. The shared yard provides parking for 63 cars and waste storage. The site is secured by a perimeter fence and electric gate, whilst CCTV is operational throughout the estate.

Tenure Jarrow Network Centre is held on a Long Leasehold basis from Homes England for a term of 125 years from 22nd November 2000 at a peppercorn rent without review, therefore leaving 107 years unexpired. Homes England have confirmed that they would be prepared to sell the freehold. TENANCY SCHEDULE

Lease Information Rent ERV Facilities Unit Tenant Area Lease Start Lease End Term Unexpired Term Rent Review Break Rent Rent psf MR psf Charge Wingate Electrical Plc A 2,633 10/08/2012 09/08/2015 3 Holding Over - £11,190 £4.25 £11,849 £4.50 £3,176 (01153427) B Michael Boak t/a MB Motorsports 1,737 05/02/2014 04/02/2017 3 Holding Over - £7,400 £4.26 £8,251 £4.75 £2,432 Mr Ali Arafat and Mr Abdul Post 01/12/2018 C 1,737 01/12/2017 30/11/2020 3 2.16 - £7,817 £4.50 £8,251 £4.75 £2,432 Chowdhury (6 months notice) Mr William James Ormstong D 1,737 29/09/2011 28/09/2014 3 Holding Over - - £6,514 £3.75 £8,251 £4.75 £2,242 T/A Bills Motorcycles E Jamie Smith T/A JS Autoworx 2,012 15/05/2018 14/05/2021 3 2.60 - - £7,817 £3.88 £9,054 £4.50 £2,432 Libra Seafood Processing Ltd F 2,368 13/09/2018 12/09/2021 3 2.93 - £11,849 £5.00 £10,656 £4.50 £3,686 (04601151) Pace Distribution Ltd G 1,305 14/06/2016 13/06/2019 3 0.68 - £5,546 £4.25 £6,199 £4.75 £1,827 (09904146) H VACANT 1,305 - - £6,199 £4.75 £1,370 North East Signs Limited J 1,734 01/03/2012 28/02/2015 3 Holding Over - £7,370 £4.25 £8,237 £4.75 £2,171 (06302263) Simplex-Turbolo Company K 1,734 4/03/2011 03/02/2014 3 Holding Over - £7,803 £4.50 £8,237 £4.75 £2,889 Limited L Alan Fairbairn Marquees 1,736 12/01/2015 11/01/2018 3 Holding Over - £7,378 £4.25 £8,246 £4.75 £2,430 3 years M Serve You Well Catering Ltd 1,736 19/01/2015 28/02/2018 Holding Over - £7,378 £4.25 £8,246 £4.75 £2,430 41 days CS Event Hire Ltd 3 years N 867 12/01/2015 28/02/2018 Holding Over - £3,684 £4.25 £4,335 £5.00 £1,214 (09381864) 48 days 3 years O Alan Fairbairn 868 13/01/2015 28/02/2018 Holding Over - £2,763 £3.18 £4,340 £5.00 £1,214 47 days North East Autobody & Paint Ltd 02/05/2020 P 2,620 02/05/2017 01/05/2023 6 4.56 02/05/2020 £11,135 £4.25 £11,790 £4.50 £3,641 (10676461) (3 months notice) JSEAS Marine Services Ltd Q 1,737 02/05/2017 01/05/2020 3 1.56 - £7,816 £4.50 £8,251 £4.75 £2,431 (06582491) Crystal Blinds (NE) Ltd R 1,736 01/04/2016 31/03/2021 5 2.48 - £7,817 £4.50 £8,246 £4.75 £2,431 (08056276) Monarch Home Improvements 01/11/2018 S 866 01/05/2016 30/04/2019 3 0.56 - £3,464 £4.00 £4,330 £5.00 £866 NE Limited (05826138) (1 month notice) 3 years T Mr Stephen John Douthwaite 867 01/03/2016 30/06/2019 0.73 - £3,685 £4.25 £4,335 £5.00 £1,569 4 months 31,335 £128,423 £147,303 £42,882

Additional Income Each tenant pays a facilities charge currently totaling £42,882. This charge gas and water are supplied on a central landlord’s meter, with each tenant sub- is apportioned on a floor area basis and is not reconciled. This makes a substantial metered and recharged. This account also generates a substantial surplus which surplus, which has averaged £16,200 pa over the last 3 years. Electricity, has averaged £13,600 pa over the last 3 years. MARKET COMMENTARY

The North East industrial market has performed Annual Date Address Size Tenant Rent Psf Term very strongly over the past 5 years, demonstrating Rent consistent rental growth. This has been driven by the 10 Saltmeadows Trade Park, Sep-18 1,973 TCP Beauty £11,838 £6.00 5* region’s strong advanced manufacturing base and Gateshead increasing demand from 11 Portobello Trade Park, North East Sep-18 3,596 £30,575 £8.50 5 the urban logistics sector. Birtley Fulfilment 3 Earlsway Trade Park, Major manufacturers such as Hitachi, Nissan, Mar-18 1,923 Steam Punk Gin £16,350 £8.50 3 Komatasu and Caterpillar have significant 36A Pallion Industrial Estate, representations in the region and require extensive Mar-18 2,809 Tool Station £17,000 £6.05 10 (break at 5) Sunderland local supply chains to support their ‘just in time’ operations. Dec-17 382 Jedburgh Court, Team Valley 2,538 Mixit Signs £15,500 £6.10 6 (break at 3) 15A Southwick Industrial Estate, Oct-17 3,010 City Autos £18,090 £6.01 5 years Vacancy levels across the region are at historic lows Sunderland for all unit sizes and whilst the market has responded Conex Data Oct-17 4B Glover Industrial Estate 1,470 £12,201 £8.30 3* with an increase in speculative development, this has Communications not been sufficient to meet demand. Rental growth Sep-17 6A Glover Industrial Estate 4,700 Screwfix £27,495 £5.85 10 (break at 5) has been maintained with new schemes having Dysoon Energy achieved rents at £8 psf and above. Sep-17 1B Glover Industrial Estate 4,994 £29,215 £5.85 2 Services Evidence supporting significant growth exists within * Rolling breaks the estates and can be validated and enhanced by the following recent evidence. Annual Date Address Size Tenant Rent Psf Term Rent

Oct-18 37A Court, Jarrow 1,097 Undisclosed £6,406 £5.84 3**

Aug-18 10 Royal Industrial Estate, Jarrow 807 Undisclosed £5,003 £6.20 3 4 West Walpole Street, South May-18 2,001 Undisclosed £9,005 £4.50 3 Shields Feb-18 Unit 11B, Victoria Road, Jarrow 1,250 Undisclosed £6,900 £5.52 1**

Jan-18 Unit 11C, Victoria Road, Jarrow 1,250 Undisclosed £6,900 £5.52 1**

Oct-17 C24 Tyne Tunnel Trading Estate 2,781 Logistics Skills £16,950 £6.09 5

Sep-18 38E Lindisfarne Court, Jarrow 1,098 Undisclosed £5,000 £4.55 3

Sep-18 49A Cuthbert Court, Jarrow 3,000 Undisclosed £18,000 £6.00 3***

Aug-17 C6 Tyne Tunnel Trading Estate 2,781 Core ISL £16,950 £6.09 5

** IRI lease *** Annual breaks (unit has a yard) ASSET MANAGEMENT INITIATIVES

Both estates offer significant reversionary potential, fully VAT evidenced through the comparable transactions set out above. We consider a notable proportion of units Both estates have been elected for holding over on both estates to be under rented, therefore VAT and therefore it as anticipated providing excellent short term reversionary potential. the sale will be treated as a TOGC. We consider the following asset management initiatives EPC pertinent in maximising the full potential of both estates. All EPC’s and recommendation - Initiate discussions with tenants holding over regarding reports are available upon request. new leases at market rent. - Consider potential lease regear or extension with tenants at Jarrow units G, S & T. - Explore possible removal of break clauses and rolling break options to improve overall WAULT. - Purchase the freehold of Jarrow from Homes England who have indicated that they would be willing to sell.

PROPOSAL

We are instructed to seek offers in excess of £4,000,000 subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of6.73% reverting to 7.94% after purchaser’s costs of 6.54%, representing a capital value per sq ft of £64.98. Surpluses on facilities and utilities recharges move the initial yield to 8.41% based on the average of the last 3 years’ expenditure and income. OUR TEAM

Further Information For further information or to arrange an inspection please contact:

Katy Blair Richard Turner Gagan Jagpal Peter Atkinson T: 0191 223 5752 T: 0191 223 5720 T: 0191 223 5709 T: 0191 223 5715 M: 07885 258 201 M: 07747 008 415 M: 07702 681 760 M: 07718 251 493 E: [email protected] E: [email protected] E: [email protected] E: [email protected]

Disclaimer MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in October 2018.

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