UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NE12 8EW

On behalf of

FOR SALE PRIME SINGLE-LET INDUSTRIAL INVESTMENT UnitOne INVESTMENT SUMMARY BALLIOL BUSINESS PARK, LONGBENTON NE12 8EW

• Situated in an established commercial location, approximately 4 miles north of

• Strategically located on Balliol Business Park, with excellent access to the A1 & A19

• A detached industrial unit extending to 40,235 ft2

• Long Leasehold Interest with circa 130.5 years unexpired

• Let to Royal Mail Group Limited (D&B rating of 5A1) on a 5 year lease until 30th November 2021, therefore providing an unexpired term of 4.69 years (2.69 years to break)

• Rack rent of £213,000 per annum, equating to £5.29/ft2

We are instructed to seek offers in excess of £2,426,000 (Two Million, Four Hundred and Twenty Six Thousand Pounds) for our client’s interest. A purchase at this price reflects anet initial yield of 8.25% assuming purchasers’ costs of 6.37% and offers a capital value of £60.30/ft2

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 1 LOCATION

The City of Newcastle upon Tyne is located 451 km (280 miles) north of London and 175 km (109 miles) south of Edinburgh with direct connections to the A1(M), A19 and A69 which provides access onto the M6. UnitOne A19 North A1 North Newcastle upon Tyne is the principal commercial centre in Tyne & Wear and is the regional capital of the North East of and seventh largest city in the country.

Newcastle Necastle nternational Racecourse Newcastle is a major transport hub on the UK rail network with direct Airport access to all major centres of population. The east coast mainline has a travel time of 2 hours and 50 minutes to London and less than 1 hour 30 Great North Road minutes to Edinburgh. A1 A188 uorum B6918 A19 Balliol Newcastle International Airport Business Park A188 Cobalt is the North East’s major airport A189 Rising Sun Country Park and offers regular scheduled A696 Longbenton A191 services to many major UK and Four Lane international destinations and is A191 Ends A19 to Scotland A1058 Tyne Tunnel within 9 miles. A1 A188 & South Glasgo Balliol Business Park is located Edinurgh Necastle United A189 A186 at Longbenton, which is 4 miles Gol Course Heaton A191 Newcastle upon Tyne to the north of Newcastle upon A167 Carlisle Ton Moor A1058 StocktononTees Tyne city centre adjacent to the A188 Benton Lane, which is A19 North A1 Leeds approximately 2 miles equal North A186 Manchester distance between the A1 and the Newcastle Liverpool Nottingham A19, both key road networks that Upon Tyne Birmingham provide access north / south in Newcastle Necastle ales England the region and onto the national nternational Racecourse Airport Cardi London motorway networks. Bristol

Great North Road A1 A188 uorum B6918 A19 Balliol Business Park A188 Cobalt A189 Rising Sun Country Park A696 Metro Longbenton A191 Four Lane A191 Ends A19 to A1058 Tyne Tunnel A1 A188 & South Gosforth UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW Necastle United A189 A186 Gol Course Heaton A191 Wallsend 2 A167 Ton Moor A1058

Jesmond A186 Newcastle Upon Tyne Byker

Gateshead To A1(M) and A19 Junction A188

Country Style Foods Greggs Plc Quorum Business Park Vocare A188

Greggs Plc

Leica Biosystems Greggs Plc Activ Technology UnitOne

Laing O’Rouke

Molekula Ltd Communisis

To Newcastle City Centre

Gosforth Business Park Ringtons

For illustrative purposes only UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 3 SITUATION

Balliol Business Park is a well-established industrial and station (within 1 mile). Four Lane Ends metro station links to office park with a number of well specified buildings Newcastle Central Station, Newcastle International Airport throughout. The estate is predominately industrial and access to the wider National Rail Network. throughout with office buildings towards the entrance to the estate. Quorum Business Park is situated on the opposite side of Benton Lane and comprises a Grade A office park built in Occupiers on Balliol include Greggs, Ringtons, Communisis, 2008 extending to almost 1 million square feet with blue Leica, Molekula Ltd, Vocare and Laing O’Rourke. chip occupiers such as Balfour Beatty, Convergys, Sitel, British Engines, Home Group and Tesco Bank. Balliol Business Park is served by numerous public transport modes. There is a dedicated bus service which runs between the business park and Four Lane Ends metro UnitOne

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 4 DESCRIPTION

The warehouse has a solid concrete floor and an eaves height of 5.35m. The tenant has installed a number of mezzanine levels, providing storage areas which amount to a further 2,742 ft2 of space. Externally the property has c. 54 car parking spaces at its north elevation and a concrete yard to the east, secured by a steel palisade fence. The yard is accessed from both the car park and the access road from within the business park.

The subject property comprises a modern, detached industrial unit of steel portal frame construction with cavity brick, blockwork and profile metal sheet clad elevations beneath a pitched profile sheet roof. The office elevation comprises a mixture of brickwork, pre-fabricated metal cladding and aluminium powder coated glazing.

Internally the building benefits from office accommodation to the front elevation set over two floors. There is a double height reception/entrance area, leading to a mixture of cellular and open plan office space, all to a modern specification. The remainder of the building is warehouse, providing production area, distribution and storage. The warehouse has two up and over shutter doors to its eastern elevation providing access to the external yard.

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 5 ACCOMMODATION SITE

The property has been measured in accordance with the RICS Code The property occupies a regular shaped site of approximately 0.965 ha (2.384 acres) of Measuring Practice (6th Edition) and provides the following Gross with a site coverage of c. 36%. Internal Area:

2 2 M FT El Sub Sta FooFBtbsridges

Burnbank House Ground Floor Warehouse 2,994.39 32,231

Ground Floor Offices 351.96 3,788

First Floor Offices 391.62 4,215

TOTAL 3,737.97 40,234 UnitOne

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 6 TENURE

The property is held long leasehold for a term of 150 years from 30th July 1997 at a rent of a peppercorn. Therefore providing an unexpired term of c. 130.5 years.

TENANCY

The property is fully let to Royal Mail Group Limited (Company No: 04138203) sharing with their group company, Romec Enterprises Limited, on a 5 year lease from 1st December 2016, expiring on the 30th November 2021, at a passing rent of £213,000 per annum. Romec Enterprises Limited are a wholly owned Royal Mail Group Company. There is a tenant only break option at the third anniversary of the term subject to six months written notice. The tenant will benefit from four months rent free if they do not serve the break option.

The lease is drafted on full repairing and insuring terms subject to a Schedule of Condition dated 13 August 2002. The lease is also outside of the Landlord and Tenant Act 1954.

The current rack rent of £213,000 per annum, equates to £5.29/ft2.

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 7 COVENANT STATUS

Royal Mail Group Limited (Company No. 04138203) The last three years of accounts are as follows:

Royal Mail Group Limited is the principal trading entity of Royal Mail Plc, a postal service company in the , originally established in 1516. The Turnover Pre-Tax Profit Royal Mail Group Ltd operated under Royal Mail for Company Year End Shareholder’s Funds (£) (£) (£) letters and Parcelforce Worldwide for parcels. General Logistics Systems is a Dutch, British owned logistics company based in Amsterdam, operating through 42 27/03/2016 7,675,000,000 99,000,000 4,093,000,000 European countries and is a subsidiary of Royal Mail. Royal Mail 29/03/2015 7,772,000,000 415,000,000 3,667,000,000 Group Limited Up until 2015, Royal Mail has been a public service, operating as a government department. Following 30/03/2014 7,782,000,000 1,519,000,000 2,132,000,000 the Postal Services Act 2011, the majority of the shares in Royal Mail were floated on the London Stock Company Year End Exchange in 2013. The UK Government initially retained a 30% stake in Royal Mail, however it sold its remaining shares in 2015.

Romec operate from the subject property and were formed in 1989 and stands for Royal Mail Engineering & Construction. It was established to deliver facilities maintenance services to the business and as of 2016 is wholly owned by Royal Mail. As well as facilities management, Romec through ‘Serious Engineering’ also handle the manufacturing of a wide range of sheet metal and fabricated equipment including racking frames, trolleys, fabricated support frames, tables and enclosures.

Romec also supplies various other industries including; food automation, defence, marine, oil & gas, chemical, amongst others.

Royal Mail Group Limited represents a strong covenant with a Dun & Bradstreet rating of ‘5A1’.

UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 8 VAT EPC

The property is not elected for VAT therefore VAT will not The unit has been assessed with a rating of C (68). be charged on the purchase price. Details can be provided on request.

CONTACT

Douglas Cranston e: [email protected] t: 0191 594 5023 m: 07867 001 380

Dickon Wood e: [email protected] t: 0191 594 5036 m: 07966 023 924

Adam Greenwood e: [email protected] t: 0191 594 5000 m: 07776 858 536

Charles Hobart PROPOSAL e: [email protected] t: 0207 861 1212 We are instructed to seek offers in excess of £2,426,000 m: 07825 608 962 (Two Million, Four Hundred and Twenty Six Thousand Pounds) for our client’s interest. A purchase at this price reflects anet initial yield of 8.25% assuming purchasers’ costs of 6.37%. A purchase at this level equates to a capital value of £60.30/ft2. Knight Frank LLP, St Ann’s Quay, 124 Quayside, Newcastle upon Tyne NE1 3BD

Misrep. Notice 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 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). 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. 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. 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 2017. Designed & produced by www.creativestreakdesign.co.uk Ref: CSD1064