Industrial / Warehouse Investment Opportunity Hydrogarden Limited, 2 Progress Way, Binley Industrial Estate, CV3 2NT INDUSTRIAL WAREHOUSE INVESTMENT Hydrogarden Limited 2 Progress Way Binley Industrial Estate Coventry CV3 2NT

INVESTMENT SUMMARY

>> Detached industrial/warehouse and >> Hydrogarden Limited are a leading office investment on an established and supplier of hydroponic equipment and thriving business park. have been established for 24 years. They have an Experian credit rating of >> Very prominently positioned on Binley 100 indicating very low risk and for year Business Park at the corner of Herald ending 2019 had a turnover of £29.3 Way and Progress Way. million, pre-tax profit of £995,930 and a >> Freehold three bay steel portal frame net worth of £6.1 million. industrial warehouse with two storey >> We are instructed to seek offers in glazed offices to the front extending in excess of £2,700,000 (Two Million total to 40,593 sq. ft. GIA. Seven Hundred Thousand Pounds) >> Let to Hydrogarden Limited on a new 3 subject to contract, which reflects a net years lease with a tenant break option initial yield of 7.48% after allowing for at year 2 on giving 6 months notice at a purchasers’ costs of 6.41% and £66.51 2 rent of £215,000 per annum equating to per sq. ft. £5.30 per sq. ft. overall. INDUSTRIAL WAREHOUSE INVESTMENT Hydrogarden Limited 2 Progress Way Binley Industrial Estate Coventry CV3 2NT

LOCATION TO MANCHESTER LEEK Coventry is located within the West LOCATION DISTANCE & NORTH , approximately 20 miles east of STOKE-ON-TRENT Birmingham 20 miles Birmingham, 24 miles south west of Leicester and 95 miles northwest of London. The City MARKET DRAYTON Leicester 24 miles M6 forms part of the “Golden Triangle” for OSWESTRY UTTOXETER Nottingham 55 miles TO LEEDS logistics in the UK with excellent road STAFFORD M1 & NORTH BURTON-UPON-TRENT communications, providing direct access to Manchester 80 miles EAST the M6 and the M69 motorways and access Liverpool 93 miles LICHFIELD to the M40 and M42 motorways via the A46 M54 SHREWSBURY TELFORD TAMWORTH and A45, Birmingham to Coventry trunk London 95 miles M6 TOLL roads, respectively. WOLVERHAMPTON WALSALL M69 BRIDGNORTH M6 NUNEATON Coventry train station provides regular M1 Connectivity DUDLEY intercity links to London, Birmingham and STOURBRIDGE BIRMINGHAM M6 Manchester, with the fastest journey time by Birmingham Int. Airport (by car) 20m SOLIHULL COVENTRY train to London Euston approximately 65 LUDLOW KIDDERMINSTER M42 RUGBY Birmingham New Street (by train) 32m minutes. Birmingham International Airport is WARWICK 20 minutes drive time to the west of East Midlands Airport (by car) 46m M5 REDDITCH LEOMINSTER Coventry, providing access to domestic and WORCESTER London Euston (by train) 1h 05m M40 international destinations. STRATFORD-UPON-AVON TO LONDON & SOUTH EAST M1 Manchester Picadilly (by train) 1h 59m GREAT MALVERN Coventry is the 9th largest city in EVESHAM and the 12th largest in the UK. It is HEREFORD LEDBURY additionally the second biggest city in the M50 West Midlands area, after Birmingham, with TO BRISTOL TO & SOUTH WEST LONDON a population of 329,810 and is home to 3 ROSS-ON-WYE 35,000 businesses. D

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6 E 4 LAN A ES JAM ST SITUATION

The property is prominently position on the corner of Herald Way and Progress Way in the heart of Binley Business Park. Extremely well located, three miles east of Coventry City centre and close to the A46 linking directly to the M69, M6, M1 (north) and the A45, M40 and M1 South.

There are a wide range of facilities in the immediate vicinity, including a Morrisons Supermarket, TGI Fridays, Costa Coffee Drive Thru, Premier Inn, McDonalds and B&Q. Nearby occupiers include Saint Gobain, SFM, Caldwell, Auric, GAP Plant and Tool Hire and Hermes.

4 INDUSTRIAL WAREHOUSE INVESTMENT Hydrogarden Limited 2 Progress Way Binley Industrial Estate Coventry CV3 2NT

Externally there is a concrete yard to the side of the property with a greenhouse installed by the tenant together with rear access to Herald Way.

DESCRIPTION

The property comprises a detached To the front is a two-story office building warehouse with two story offices, which has been extensively refurbished and generous yard and ample car parking. The provides; warehouse has three bays of steel portal >> Extensive aluminium frame double frame construction with brick elevations glazing and high levels of natural light and profile clad roofs. The warehouse has fluorescent strip lighting and heating via gas >> Large reception area fired blowers with eaves heights ranging The yard is fully secured with a gate and metal palisade fencing. >> Generous floor to ceiling height of from 5 metres to 7.8 metres. over 3m There are 3 roller shutter doors to Herald >> Suspended ceilings with LED lighting Way benefitting from internal HGV level loading (currently not used) and 2 further >> Solid carpeted floors, perimeter trunking level access roller shutters doors to the yard and central heating and front of the property. >> Male, Female and Disabled WC’s There is a mezzanine installed in part of the >> Kitchen and staff welfare areas warehouse providing additional storage. There is an integral two story warehouse office block which has separate access from To the front is tarmacadam surfaced car To the Herald Way frontage is additional the car park and is fitted out as a showroom park areas providing 44 spaces including loading bays which is currently used for / kitchen, meeting room with Male and 4 EV charging bays. 10 further car spaces. 5 Female WC’s. INDUSTRIAL ACCOMMODATION WAREHOUSE INVESTMENT The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate gross internal floor areas. Hydrogarden Limited 2 Progress Way DESCRIPTION SQ M SQ FT Binley Industrial Estate Coventry CV3 2NT Warehouse 2657.2 28,601 Warehouse Mezzanine 204.6 2,203 GF Warehouse Offices 94.1 1,013 FF Warehouse Offices 88.5 953 GF Main Offices 335.9 3,615 FF Main Offices 390.9 4,208 Total 3,771.2 40,593

SITE

The site extends to a total area of approximately 1.45 acres.

TENURE

The property is held freehold.

6 INDUSTRIAL TENANCY WAREHOUSE INVESTMENT The property is to be let on a new full repairing and insuring lease to Hydrogarden Hydrogarden Limited Limited on a 3 years term with a tenant break 2 Progress Way option at year 2 on giving 6 months notice Binley Industrial Estate at a rent of £215,000 per annum equating to Coventry CV3 2NT £5.30 per sq ft overall. The lease will be subject to a photographic schedule of condition and will be contracted out of sections 24 to 28 of the Landlord and Tenant Act 1954 relating to security of tenure.

COVENANT

Established in 1996 Hydrogardens Limited Experian rate the company as 100 which is a very low risk score and their most recent has become the UK’s leading manufacturer accounts are summarised below; and distributor of hydroponic equipment Year End Turnover Pre-tax Profit Net Worth and services. Selling only to the trade, the company has an impressive brand line-up Dec 2017 £25,061347 £1,660,947 £5,668,184 providing everything required to grow plants Dec 2018 £27,299,013 £206,516 £5,464,491 indoors or in nutrient poor conditions including growing plants without soil. The company Dec 2019 £29,337,873 £995,930 £6,060,980 has performed very well during the recent 7 lockdown and has seen sales expand. Further details can be provided on request. INDUSTRIAL M6 OCCUPATIONAL MARKET A444

WAREHOUSE C1 GROVELANDS IE Coventry is one of the most important INVESTMENT Coventry industrial and warehouse markets in the UK HI PROLOGIS Park Hydrogarden Limited and sits in the heart of the “Golden Triangle” SHILTON Coventry £5.50 psf 2 Progress Way at the centre of the UK’s motorway network. LONGFORD Binley Industrial Estate £6.50 psf KERESLEY M69 Coventry CV3 2NT With a total stock of 80 million square feet M6 of accommodation net absorption during the last 12 months hasA45 totalled 1.5million Unit 1 vespa point B GROVELANDS IE square feet and a low vacancy rate of 4.9%. central boulevard Coventry Despite the economic shock of the Covid 19 £7.15 psf £5.50 psf pandemic, rental growth remains strong and PICKFORD according to Costar is currently at 3.5% for GREEN A45 the last 12 months. EDGWICK

A444 A46

A4114 BISHOPSGATE GREEN A4600 2 PROGRESS WAY A45 Coventry COVENTRY CITY CENTRE £5.30 psf

BINLEY A46 A4114

BINLEY WOODS WHITLEY A444 UNIVERSITY Leofric Business Park OF WARWICK A45 BRANDON Progress Close, Coventry FINHAM BURTON GREEN A46 £6.50 psf LEEDS 96 MILES WOLSTON LIVERPOOL MANCHESTER 93 MILES 80 MILES BAGINTON COVENTRY AIRPORT A45

Recent letting transactions include; A46 A423

NOTTINGHAM SHREWSBURY 55 MILES Leofric Business Park Progress Close, Coventry 56 MILES From June 20. 15 years lease to Socotec Limited on 47,000 sq. ft. at a rent equating to £6.50 per sq ft. LEICESTER 23 MILES COVENTRY HI Prologis Park BIRMINGHAM Coventry 17 MILES NORTHAMPTON From Sept 20. 10 years lease with tenant break at year 5 to UK Flooring Direct on 56,000 sq. ft. at a rent equating to £6.50 per sq ft. 29 MILES Unit 1 Vespa Point Central Boulevard From March 20. 10 years lease with tenant break at year 5 to Network Rail Infrastructure Limited on 19,975 sq. ft. at a rent equating to BRISTOL £7.15 per sq ft. 80 MILES LONDON 86 MILES C1 Grovelands Ind. Est. Coventry From August 2019. 10 years lease with tenant break at year 5 to Arnold Laver Timberworld on 26,140 sq. ft. at a rent equating to £5.50 per sq ft.

Unit B Grovelands Ind. Est. Coventry 8 From June 2019. 10 years lease with tenant break at year 5 to KRM Limited on 22,759 sq. ft. at a rent equating to £5.50 per sq ft. INDUSTRIAL INVESTMENT MARKET WAREHOUSE INVESTMENT The warehouse and distribution sector continues to be the most sought after property investment market in the UK and has provided consistently strong returns from both capital Hydrogarden Limited and rental growth. 2 Progress Way Binley Industrial Estate Key investment transactions include; Coventry CV3 2NT

Holymoor Way, RUBERY APR 2020 – 12 years remaining to Aquapak Polymers at a rent of £351,600 equating to £6.38 psf. Sold for £5.50 million reflecting a yield of 6.00%.

4 Martins Close, NOTTINGHAM OCT 2020 – 1 year lease to BSS Group at a rent of £185,000 pa equating to £4.56 psf. Sold for £2.35 million reflecting a yield of 7.30%.

U3-8 Witton Park, BIRMINGHAM JAN 2020 – 3 years remaining to Hauck Heat Treatment Limited at a rent of £161,221 pa equating to £4.86 psf. Sold for £2.25 million reflecting a yield of 6.75%.

Herald Way. COVENTRY 12 Stafford Park, TELFORD MAY 2020 – 4 years remaining to Ozbox UK Limited at a rent of £102,000 equating to DEC 2019 – 3 years remaining to NG Services at a rent of £165,090 equating to £3.75 9 £5.07 psf. Sold for £1.49 million reflecting a yield of 6.40%. psf. Sold for £2.24 million reflecting a yield of 6.73%. INDUSTRIAL VAT WAREHOUSE INVESTMENT The property is elected for VAT however it is anticipated that the transaction will be Hydrogarden Limited treated as a transfer of a going concern 2 Progress Way (TOGC). Binley Industrial Estate Coventry CV3 2NT EPC

The property has on EPC Rating of D94. A copy of the certificate is available upon request.

CAPITAL ALLOWANCES

We understand that there are no remaining capital allowances available to the purchaser.

PROPOSAL

We are instructed to seek offers in excess of £2,700,000 (Two Million Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 7.48% after allowing for purchasers’ costs of 6.41% and £66.51 per sq ft.

10 INDUSTRIAL further information WAREHOUSE INVESTMENT For further information or to arrange an inspection please contact:

Hydrogarden Limited MK2 Real Estate Ltd Mark Johnson Ross Cuthbert Mark Rooke 2 Progress Way One Seven Two 0121 214 1977 0121 214 1975 0121 214 1972 Binley Industrial Estate Edmund Street 07748 105 812 07891 863 364 07985 877 578 Coventry CV3 2NT Birmingham B3 2HB [email protected] [email protected] [email protected]

IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. 11 Designed and produced by Diablo: www.diablodesign.co.uk December 2020