Multi-Let Industrial Investment Opportunity

Penrhyn Court

Penrhyn Road Knowsley Business Park L34 9AB

Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB

Executive Summary

•  Penrhyn Court is an opportunity to acquire a modern, high specification multi-let industrial investment

•  It benefits from excellent road communications, strategically situated adjacent to both the A580 East Lancashire Road and junctions 4 & 5 of the M57 motorway which lead to the wider regional and national motorway network

•  Situated on a well-established, successful industrial and business park strategically located between to the west and to the east

•  Modern industrial / warehouse accommodation with ancillary offices comprising 10 predominantly detached units extending to 95,170 sq ft (8,841.29 sq m)

•  5 units let (which total a GIA of 43,325 sq ft), 5 units sold on long leases

•  Site of approximately 6.053 acres with a low site coverage of 31%

•  Total net income of £194,730 per annum with a potential ERV of £208,537 per annum

•  We are instructed to seek offers in excess of £2,362,500 (Two Million Three Hundred and Sixty Two Thousand Five Hundred Pounds) representing a Net Initial Yield of 7.75% and a Reversionary Yield of 8.30% (assuming purchaser’s costs of 6.36%) for our clients’ Freehold interest

• A purchase at this level would represent a low capital value of £59 per sq ft (excluding the mezzanine areas) or £55 per sq ft overall Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Location

Knowsley is situated approximately 11 miles east of Liverpool and 29 miles west of Manchester and has a borough wide population of 145,000 increasing to 1,500,000 people in the wider . It is situated immediately to the east of junctions 4 & 5 of the M57 motorway and adjacent to the A580 East Lancashire Road providing immediate access to the regional and national motorway networks. Due to the excellent road communications and its strategic location between Liverpool and Manchester, Knowsley is one of the key industrial / warehousing locations in both and the wider northwest region. The A580 East Lancashire Road links directly to Liverpool and Manchester and the M57 connects to the M62 approximately 5 miles to the south which in turns leads to the M6 and M60

motorways to the east. To the north the M57 connects29 to the M58 providing ease of access to the north Merseyside conurbation. 29 1 3 4 Both John Lennon and Manchester International Airports are within close proximity and combined with the regions rail and freight connections the wider Knowsley conurbation has attracted and retained occupiers such as Jaguar Land Rover, Virgin Media, DHL, Matalan, QVC, Home Bargains and News International.

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M61 M58 4 3 4 19 5 3 17 J5 26 20 16 21 E Walkden aceter 1 14 Wardley 25 7 The Property A580 SALFORD M6 12 24 1 2 3 S S 6 A580 11 Eccles E M57 23 4 10 23 Sc The Property ST HELENS M62 MANCHESTER J4 Knowsley 3 ae ery a A58 22 11 Wallasey 102 10 6 A34 A5058 21A 26 1 A57 27 M62 9 A56 5 ve 5 rr 6 7 4 1 3 2 a 2 21 3 2 1 S e iti a 25 iver Birkenhead A5300 A557 4 26 3 LIVERPOOL 5 E A562 M56 rmir a A56 20 8 6 ey A41 J4 Prestatyn Speke 9 uie ar 4 Manchester 10 Airport NY Liverpool A533 River Mersey John Lennon 11 Airport A557 A34 12 19 5 6 7 M6 8 Ellesmere Port 9 A533 A537 M56 A556 14 A523 A548 10

11 A49 15 NORTHWICH A541 Flint A41 A5119 A5117 A556 A54 A34 12 A533 18 A494 A51 A54 A49 CHESTER A55 Congleton 17 A494 Ruthin A50 A41 A51 A34 A530 A534 M6 A527 Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Situation

Penrhyn Court is prominently located along Penrhyn Road, Knowsley Business Park, immediately to the south of A580 East Lancashire Road which provides direct access to Liverpool in the west and Manchester to the east. Junction 4 & 5 of the M57 are ½ mile to the west. Knowsley Business Park is an established quality business environment, which has seen numerous new developments in recent years. Combined with Knowsley Industrial Park they form one of the largest industrial areas in the country and is home to a diverse range of occupiers. Description

The property comprises a high quality industrial / warehouse development comprising ten units arranged around a central courtyard area. Extending to 95,170 sq ft the estate provides a quality landscaped environment on a self-contained, regular shaped and secure site. The units are of steel portal framed construction under pitched roofs externally fully clad in profiled sheeting incorporating approximately 10% office content. The scheme offers a range of sizes between 5,715 sq ft – 12,155 sq ft arranged as a terrace of three (E1-E3), three detached (A1-A2, C1-C2 & D1-D2) and a standalone unit (B). The specification includes: • 7m clear internal height in units A, B and C • 6.5m clear internal height in units D and E • High quality offices including comfort cooling / heating, carpets, suspended ceiling incorporating light fittings, WC’s and showers • Unit B benefits from a ground source heat pump which contributed to office heating and reduces running costs • 37.5kn / m sq floor loading to warehouse / industrial areas • Generous car parking and concrete yard areas • Each unit provides a first floor area for light storage or potential office expansion Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB

Accommodation Chimney Sta The estate provides a total of 95,170 sq ft (8,841.58 sq m) of accommodation across 10 units ranging in size between 5,715 – 12,155 sq ft. A full breakdown of the floor areas is provided with the tenancy schedule. Five units (Units A1, B, C2, E1, E2) have been sold long leasehold (outlined blue on the OS plan) to tenants leaving 43,235 sq ft over 5 units remaining (Units A2, C1, D1, D2, E3).

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The site extends to a total area of approximately 2.449 ha (6.053 acres) reflecting a low site N

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VILLIERS ROAD Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB

Tenancy

The property comprises ten units, five of which have been sold for a premium on a long leasehold basis. The remaining five are let to four tenants and currently produce a gross income of £194,730 per annum. Current passing rentals reflect between £4.41 psf to £5.24 psf. Based upon our opinion of ERV the estate has a total rental value of £208,537 pa. Each unit has elements of mezzanine space which for the purpose of ERV have not been rentalised. The service charge currently runs at £0.15 per sq ft and further detailed information can be supplied to interested parties. A full breakdown of individual leases can be found on the tenancy schedule below. All leases can be downloaded from our website www.gva.co.uk/9894.

Areas Rent £pa (£psf) ERV £pa (£psf) Term Lease Lease Expiry Unit Tenant Demise Excludes Excludes Comments (Break) Start (Break) Sq M Sq Ft Mezzanine Mezzanine

Expert Tool & Ground Floor 836.12 9,000 Unit A1 250 11/03/2015 10/03/2265 Peppercorn - Unit Sold on a long leasehold for £570,000 Holdings Ltd Mezzanine 85.93 925 Ground Floor 836.12 9,000 Further tenant break on 25/04/2019. Penalty applies if 25/04/2022 39,700 47,250 Unit A2 Portakabin Ltd 9 26/04/2013 break exercised. Outstanding rent review 26/04/2016 (25/04/2016) (4.41) (5.25) Mezzanine 85.93 925 Further rent review on 26/04/2019

Beverston Ground Floor 1,393.50 15,000 Unit Sold on a long leasehold Unit B 250 29/07/2011 28/07/2261 Peppercorn - Engineering Ltd Mezzanine 131.92 1,420 GIA includes Mezzanine level of 1,420 sq ft

Central Electrical Ground Floor 1,040.01 11,195 The tenant has the option to acquire the unit on a 08/12/2023 54,690 58,774 Unit C1 Armature 10 09/12/2013 long leasehold basis at MV or £705,000 on or before (09/12/2018) (4.89) (5.25) Winding Co Ltd Mezzanine 89.18 960 09/03/2017. Review 09/12/2018

Paper 4 Print Ground Floor 1,040.01 11,195 Unit C2 250 09/02/2012 08/02/2262 Peppercorn - Unit Sold on a long leasehold for £600,000 Ltd Mezzanine 89.18 960 Unit D1 Ground Floor 1,300.63 14,000 5 18/01/2030 73,340 73,500 Med imaging Ltd 19/01/2015 Five yearly rent reviews. Tenant break on 19.01.2020 & D2 Mezzanine 133.77 1,440 (2.5) (19/01/2020) (5.24) (5.25) Ground Floor 650.30 7,000 Unit E1 Parkers 250 22/11/2010 21/11/2260 Peppercorn - Unit Sold on a long leasehold Mezzanine 66.88 720 Direct Vehicle Ground Floor 490.05 5,275 Unit E2 250 08/04/2016 07/04/2266 Peppercorn - Unit Sold on along leasehold for £333,000 Glass Ltd Mezzanine 40.87 440 Forlad Ltd (t/a Ground Floor 490.05 5,275 27,000 29,013 Unit E3 10 01/06/2009 31/05/2019 Outstanding rent review Green Thumb) Mezzanine 40.87 440 (5.12) (5.50) TOTAL 8,841.29 95,170 194,730 208,537

Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Further Information Tenant Covenants Gurminder Manak The property is let to a range of covenants as detailed below. 0161 956 4105 Portakabin Limited are a private limited company incorporated in 1961 and are engaged in the development, manufacture and installation of factory engineered buildings for either sale or hire. The company currently operates in seven countries employing over [email protected] 1,600 people and understand they have developed over 50 million sq ft of accomodation. For the year ending 2014 they reported a turnover of £218.9m, pre-tax profits of £29.5m and shareholders’ funds of £173m. Further information can be found at Adam Wildig www.portakabin.co.uk 0161 956 4029 Central Electrical Armature Winding Company Limited are a private limited company incorporated in 1977 and are involved in the [email protected] repair and maintenance of electric motors. For the year ending 31 December 2014 they reported a turnover of £7.8m, pre-tax profits of £233k and have shareholder’s funds of £1.9m. Further information can be found at www.gocentral.co.uk Med Imaging Limited are a private limited incorporated in 1995 and are one of the UK’s leading independent diagnostic imaging specialists within the healthcare industry. They work for both the NHS Trusts and private health organisations across the country. The subject property is their registered head office and for the year ending 31 March 2015 reported shareholder’s funds of £424k. Further gva.co.uk/9894 information can be found at www.medimaging.co.uk Forlad trading as Green Thumb are a private limited company incorporated in 1990 and are involved in landscape services. The lease has the benefit of a personal guarantee. Green Thumb operates from over 200 branches nationwide and undertakes over one GVA million lawn treatments every year. Further information can be found at www.greenthumb.co.uk Norfolk House, 7 Norfolk Street Tenure Capital Allowances Manchester, M2 1DW The property is held Freehold. Capital Allowances may be available by way of separate negotiation. Subject to Contract Proposal June 2016 We are instructed to seek offers in excess of £2,362,500 (Two EPC Million Three Hundred and Sixty Two Thousand Five Hundred Energy Performance Certificates (EPC) are available on request or Pounds) for the freehold interest in the property, subject to can be downloaded from our website at www.gva.co.uk/9894 contract and exclusive of VAT. Or for any other investment A purchase at this level would reflect a Net Initial Yield of 7.75% VAT and a Reversionary Yield of 8.30%, allowing for purchaser’s costs sales please visit: Election to waive exemption for VAT has been made and therefore of 6.36%. VAT will be charged on the purchase price. It is anticipated that A purchase at this level reflects a low capital value of the sale will be treated as a transfer of a going concern subject to £59 per sq ft excluding the mezzanine areas or £55 per sq ft confirmation. gva.co.uk/investment overall. London West End London City Belfast Birmingham Bristol Cardiff Dublin Edinburgh Glasgow Leeds Liverpool Manchester Newcastle

Published by GVA 10 Stratton Street, London W1J 8JR ©2015 Copyright GVA

GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com

GVA is the trading name of GVA Grimley Limited, conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: i.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. ii.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. iii.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. iv.) All rentals and prices are quoted exclusive of VAT. 08449 02 03 04

Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. gva.co.uk/9894

Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB