FAREHAM DELTA PARK CONCORDE WAY SEGENSWORTH PO15 5RL

PRIME HQ DISTRIBUTION INVESTMENT OPPORTUNITY INVESTMENT CONSIDERATIONS

Modern warehouse / distribution Highly specified unit extending to Attractive unexpired term of 13.5 years Site area extending to 6.18 acres investment strategically located in 151,559 sq ft (14,080 sq m). to expiry and 8.5 years to break. (2.5 hectares). Segensworth at Junction 9 of the M27 motorway. The tenant has recently signed a Upwards only OMV rent review due on Freehold. reversionary lease committing them to 25th October 2022. Well established south east location the building until 24th October 2032. We are instructed to seek offers in with outstanding transport links to the There is a tenant break option on 24th Prime headline rents on the south coast excess of £22,800,000 (Twenty Two UK motorway network, Southampton October 2027. are now £10.00 per sq ft. Million, Eight Hundred Thousand Airport and the busy sea ports of Pounds), subject to contact and Southampton and Portsmouth. Let to CooperVision Manufacturing Strong occupier market fundamentals exclusive of VAT. A purchase at this Limited (D&B 5A1) at a passing rent of against a backdrop of low supply level reflects anet initial yield of 5.25%, The property, constructed in October £1,277,800 per annum reflecting a low provide excellent rental growth assuming purchaser’s costs of 6.64% and 2006, is the tenant’s European HQ and £8.43 per sq ft. prospects. a low capital value of £152 per sq ft. sole distribution facility.

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL Colden A3 Common A32 East Meon Romsey M3 Chandler’s Ford Upham A335 A27 Corhampton LOCATION A3090 B3037 Eastleigh Fair Oak B2177 Fareham is an affluent market town in the county of Hampshire at the north west M27 Southampton Bishop’s Airport Waltham B2150 tip of Portsmouth Harbour. Segensworth is strategically located on the outskirts of B3354 Nursling Fareham next to Junction 9 of the M27 motorway. This motorway forms the main link Waltham M271 A3057 Clanfield Chase road between the cities of Southampton, located 9 miles (14 km) to the north west A36 Hambledon A27 and Portsmouth, located 12 miles (19 km) to the south east. The M27 motorway is well A326 A334 Shedfield Horndean Totton A33 Hedge End connected to the rest of the UK road network providing excellent access to the M3 A3024 A32 SOUTHAMPTON motorway at Southampton and the A3 (M) trunk road at Havant. Central London is M27 Wickham A3025 located approximately 80 miles (129 km) to the north east. Ashurst A3051 A326Marchwood Bursledon North Waterlooville DELTA PARK Boarhunt A3(M) Southampton Airport is located next to Junction 5 of the M27 motorway A3 approximately 10 miles (16 km) north west of Segensworth with a drive time of 17 Hythe B2177 Park Gate M27 minutes. The airport provides regular domestic and internal flights throughout the UK Fareham B3056 A27 Havant A27 and Europe. A326 Titchfield A27 By rail, Segensworth benefits from three mainline stations including Southampton Fawley M275 Parkway, Fareham and Portsmouth & Southsea providing frequent and direct train PORTSMOUTH B3055 Beaulieu B3334 services to London Waterloo with a fastest journey time of 1 hour 20 minutes. Calshot

Lee-On The ports of Southampton and Portsmouth are amongst the busiest in the UK and are The-Solent Gosport conveniently located approximately 9 miles (14 km) to the north west and 11.1 miles B3054

(17 km) to the south east with drive times of 22 minutes and 15 minutes respectively. Norleywood Southampton is owned by ABP and has the busiest cruise terminal and second largest container port in the UK handling some 89 million tonnes of cargo in 2016. Cowes

PRIME HQ DISTRIBUTION INVESTMENT OPPORTUNITY M27 SOUTHAMPTON

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AD CON B RO COR A ZON DE R ABA W N BR A E Y S W A LLIS RD

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SUBJECT PROPERTY M27

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL AY

W 27 A M27 LEY E T SOUTHAMPTON I H W ON R LIS ISE OL M SITUATION 9 LEAFY LANE Delta Park is located in Segensworth North, which together with Segensworth East

and West form a major and well established industrial and distribution location on the

E V south coast. The site is prominently located on the south side of Concorde Way and I R D C B S L A ’ A27 O A K NC D D situated less than 1 mile (1.6 km) from Junction 9 of the M27 motorway. A A27 OR Y O DE BE E D MPTON WAY E PL T R E CRO S A TY W R O C ’S A L E D Y C RI R VE TELF WA DE C ON Notable occupiers include GMK, Ceva Logistics, DHL, Gemalto, TUV SUD, Safran, CO OR R A27 D L D E I A27 W E D D A T AY O N

T WAY R A Porvair and Yodel. L N L E O Z Y P M27 PORTSMOUTH A E A B L R A E K R T I B

E F NU 27 H VE LE A A ITT A WH R W S

OUTH M A27 C R D O SUBJECT PROPERTY O R B N AM A R DESCRIPTION D U C P N O T ON E ON RD L R Z W D A AY E E W AB N

A N ROAD L A PTO R The property, which was designed and built as the tenant’s European HQ in October SOUTHAM D Y B BE E ER N

ITH A

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2006, comprises a large single storey warehouse/distribution unit with internal three Y

E

L

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storey ancillary offices, staff car parking for 165 vehicles and loading yard at the rear A D H

R N N W E O S M W M with parking for a further 101 vehicles. A U H S L R U E L G D N IS B E R R T N O U S S A N

A E P W D L

2 O O W

7 R The building is of steel portal frame construction with profiled metal clad elevations N A

T Y D H R R O O S A O D and a composite profiled metal roof. The warehouse benefits from the following A D U T B H AR A N specification:- M E A S P

2 W RES T NGAC 7 A LO O L L N I S R R O A E O D • 8.1m minimum eaves height. N A A D L

Y BARNE E S WAL L • 10m maximum eaves height. A LIS E R T 2 OA I 7 D H D R W K R A • Six canopy level access doors with flexibility to incorporate another three. P D L E I F

A H 2 C • Floor loading of 50 KN/sq m. 7 T I

T • Yard depth of 48m. • Heating to ambient warehouse by direct gas fired air handling units. • Enhanced sprinkler system. • Heightened internal security area to facilitate international customer freight distribution. The offices benefit from a high specification with raised floors and suspended ceilings equipped with comfort cooling and heating. The offices are situated at the front of the building fronting onto Concorde Way and benefit from the following specification:- • 13 person / 1000 kg passenger lift providing DDA access. • LG3 lighting. • Suspended ceilings. • 2.7m floor to ceiling clearance. • Carpet covered raised floors with 150mm clear void. The site extends to approximately 6.18 acres (2.5 hectares) providing a building footprint of approximately 46%.

PRIME HQ DISTRIBUTION INVESTMENT OPPORTUNITY TENURE The property is held freehold.

TENANCY The property is let on full repairing and insuring terms to CooperVision Manufacturing Limited by way of an original lease from 25th October 2006 and expiring 24th October 2021. A reversionary lease was signed on 6th April 2018 committing the tenant for a further 11 years, commencing on 25th October 2021 and expiring on 24th October 2032. There is a tenant break option to determine the lease on 24th October 2027. The unexpired lease term is 13.5 years to expiry and 8.5 years to break.

The current passing rent is £1,277,800 per annum reflecting a low £8.43 per sq ft. There are two upwards only OMV rent reviews on 25th October 2022 and 25th October 2027.

ACCOMMODATION

Description Area (sq ft) Area (sq m) GF Warehouse 116,988 10,868.59 GF Reception 958 89.00 GF Staff Canteen 1,933 179.57 GF Office 5,849 543.42 FF Office 12,915 1,199.85 SF Office 12,915 1,199.85 Total 151,559 14,080.29

The floor areas have been measured on a GIA basis (Gross Internal Area) in accordance with the RICS Code of Measuring Practice (6th Edition).

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL COVENANT INFORMATION Established in 1980, CooperVision is one of the world’s leading manufacturers of soft contact lenses and related products. The company is marketed in 100 countries globally, with major distribution centres in the UK, USA and Belgium and employs over 11,000 people. Clients include Boots, Specsavers and Vision Express.

CooperVision Manufacturing Limited is part of The Cooper Companies Inc. a Global Medical Device Company that publicly trade on the NYSE Euronext. CooperVision is one of the largest manufacturers of soft contact lenses in the world and in 2011 celebrated a milestone achieving over $1 billion in global sales and a 25% market share.

The wider CooperVision business is very committed to the south coast employing a substantial local workforce and occupying several other buildings in Southampton (Mountpark), Hamble and Chandlers Ford which are used for product manufacturing, packaging and research & development. Delta Park is solely used as the European HQ for product distribution with approximately 160 million lenses a month supplied to Europe, the Far East and USA.

CooperVision Manufacturing Ltd has a Dun & Bradstreet rating of 5A1 representing a ‘minimum risk’ of business failure and has reported the following financial information over the previous 3 years:-

31 Oct 2018 31 Oct 2017 31 Oct 2016 (£000’s) (£000’s) (£000’s) Sales Turnover 195,096 187,856 183,252 Profit (Loss) Before Tax 16,053 18,008 13,782 Tangible Net Worth 282,048 290,751 221,118

PRIME HQ DISTRIBUTIONWELL INVESTMENT SECURED PRIME OPPORTUNITYRETAIL INVESTMENT OCCUPATIONAL MARKET The occupational outlook across the south coast industrial and logistics region remains positive. Landlords continue to experience robust tenant demand against a backdrop of low supply resulting in strong rental growth in recent years which is expected to continue.

Developers are taking advantage of the supply/demand imbalance with notable recent developments including Mountpark, Southampton (Quoting rents £10.00 psf), Velocity, Havant (Quoting rents £9.50 psf), Alpha Park, Chandlers Ford (Quoting rents £9.50 psf) and South Central, Nursling (Quoting rents £9.75 psf). Prime headline rents now stand at £10.00 psf as evidence below:

Area Rent Address Date Tenant Lease Term (sq ft) (psf)

Reliant Close, April Confidential 40,233 £9.57 10 year lease Chandlers Ford 2018

Alpha Park, Apr Charles Kendall 44,888 £10.00 10 year lease Chandlers Ford 2018 Freight

Mountpark, Nov Paul Murray Plc 48,579 £9.44 15 year lease Southampton 2017

Mountpark, Nov Berendsen UK 64,285 £9.50 25 year lease Southampton 2017

Mountpark, Sept 15 year lease CooperVision 102,590 £9.00 Southampton 2017 (TBO year 10)

Alpha Park, Aug DX Network 19,414 £9.50 10 year lease Chandlers Ford 2017 Services

South Central, Aug John Lewis 49,695 £9.00 15 year lease Nursling 2017

Station 1, Faraday Jun Proptech 24,690 £9.00 15 year lease Business Park 2017 Portsmouth

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL INVESTMENT MARKET Investor sentiment within the logistics sector remains strong and is forecast to outperform both offices and retail over the next three years (2019-2022). UK investors remain attracted by long-term income returns with overseas investors waking up to the opportunity that the logistics sector offers to help them outperform their benchmarks.

Investment opportunities in the south coast region are few and far between and are highly contested. Average yields for the wider south east have been driven down to 4.25% on the back of strong rental growth expectations. Prime yields for south coast industrial stand at 4.50%. Set out below are a number of comparable recent investment transactions:

Unexpired Area CV Date Property Tenant Term Price NIY (Sq ft) (psf) (Break)

Gatwick Welland Q1 2019 South, Medical, 212,082 14 £45.75m 3.50% £215 Crawley Tesco

Kingston Gateway, Culina & Q4 2018 178,773 9 £25.3m 4.53% £142 Milton Mcfarlane Keynes

First Point, Q4 2018 Amazon 415,065 10 £37.95m 4.86% £91 VAT Doncaster The property is elected for VAT and it is proposed that the sale will be treated as FormaPlex, Q3 2018 FormaPlex 39,851 8 £6.85m 4.62% £172 a Transfer of Going Concern (TOGC). Portsmouth

Harris Harris EPC Q2 2018 Transport, 110,000 10 £8.6m 4.90% £78 Transport Eastleigh The unit has an EPC rating of 82 (Band D). A copy of the EPC can be found in the data room. Hatfield Q1 2018 Business Royal Mail 77,226 9 £17.5m 4.21% £227 Park, Hatfield DATA ROOM There is a data room for the property which contains key tenancy information and Swan Valley, Eddie Q1 2018 172,928 13 £19.9m 4.75% £115 title documents. Access to the data room can be provided on request by Lewis Northampton Stobart Ellis.

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL PROPOSAL FURTHER INFORMATION We are instructed to seek offers in excess of Should you require further information or wish to view the property, please contact either: £22,800,000 (Twenty Two Million, Eight Hundred Thousand Pounds), subject to contact and exclusive of Julian Gallagher David Kos VAT. A purchase at this level reflects anet initial yield of Tel: 020 7493 3330 Tel: 020 7493 3330 5.25%, assuming purchasers costs of 6.64% and a low Mobile: 07941 413299 Mobile: 07709 813267 capital value of £152 per sq ft. Email: [email protected] Email: [email protected]

FAREHAM | DELTA PARK, CONCORDE WAY, SEGENSWORTH | FAREHAM | PO15 5RL

Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions 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; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. January 2020