WELL LET CARE HOME INVESTMENT OPPORTUNITY Excess of 19 years unexpired and benefits from Fixed Annual Rental Increases

ROSE LODGE CARE HOME

CARERS WAY, , , DL5 4SE BURNHILL WAY

FUTURE DEVELOPMENT SITE GARAGE

THE WORX

VILLAGE SAINSBURY’S CORAL OPTICIAN LOCAL

PUBLIC HOUSE

TO A176 & A1(M)

JUBILEE MEDICAL GROUP

BURN LANE

CARER’S WAY

ROSE LODGE CARE HOME

ROSE LODGE CARE HOME NEWTON AYCLIFFE INVESTMENT SUMMARY

• An opportunity to acquire a care home investment situated in Newton Aycliffe, County Durham, purpose built in 2003 offering 54 en-suite bedrooms

• Let to Countrywide Care Homes (2) Limited on a 30 year FRI lease expiring on 10 June 2037 (in excess of 19 years unexpired) at a current rent of £403,422 pa.

• Lease benefits from annual uplifts based upon fixed increases of 2% pa.

• Run by highly regarded operator and management team with the home generally having 100% occupancy.

• Sister company, Maria Mallaband Care Group are one of the UK market leaders in the care home industry having over 80 care homes across the UK;

• Offers in excess of £5,000,000 (Five Million Pounds) subject to contract, which offers a purchaser an attractive net initial yield of 7.57% rising to 7.72% in October 2018, based upon purchasers costs of 6.59%.

• In addition, the fixed annual rental increases create an attractive running yield profile as outlined below:

Year Yield Year Yield October 2019 7.88% October 2028 9.41% October 2020 8.03% October 2029 9.60% October 2021 8.19% October 2030 9.79% October 2022 8.36% October 2031 9.99% October 2023 8.52% October 2032 10.19% October 2024 8.70% October 2033 10.39% October 2025 8.87% October 2034 10.60% October 2026 9.05% October 2035 10.81% October 2027 9.23% October 2036 11.03%

ROSE LODGE CARE HOME NEWTON AYCLIFFE TO NEWCASTLE & SCOTLAND

A68 ROSE LODGE Bishop CARE HOME Auckland A689 A689 60 A167

Newton Aycliffe LOCATION A1(M) A19 59 A68 A688 MIDDLESBOROUGH Stockton-on-Tees A167

A66

DARLINGTON A67

A66 “Newton Aycliffe has a population of 25,964, A66(M) A66 17% of which are over the age of 65, which lies TO M62 & M1 above the UK average of 16%.” A172 A19 D A O J60 A1(M) R E B G U D R I N Newton Aycliffe is a well located town in the south of County Richmond R H

I

D L I L Durham, sitting to the west of the A1(M). County Durham benefits

A1M W

A from its position between major Midland and Scottish cities having

Y

experienced both demographic and business growth in recent years. A

1

6

7 L ROAD AL Newton Aycliffe has a population of 25,964, 17% of which are over the H Northallerton S R E age of 65, which lies above the UK average of 16%.

L B Y B A Y O C W A is approximately 7 miles to the south, Middlesbrough BURNB L WAW L A19 U I R 19 miles to the east, with Durham and Newcastle upon Tyne being D N H Y LLD LANEL N A E R located approximately 13 miles and 32 miles to the north respectively. A W I MIDDRI D F N U DGE R E B M N A E H E WOO D Intercity rail services are provided from Darlington Station enabling R GGREENFI A1(M) Thirsk quick access to and from the major cities on the east coast line. A61

ROSE LODGEY Newcastle upon Tyne can be reached within 30 minutes, Leeds within A CARE HOME W BBURN L U 1 hour and London’s Kings Cross within 2 hours 25 minutes. Durham IL R H N N LLA Tees Valley International Airport is less than 12 miles away. R A U N B E A168

NTRAL AV CE E

RipoNEWTn ON AYCLIFFE E TOWN CENTRE N A61 A S L T ROSE LODGE E N L PHP R CARE HOME H U E BBU N Bridlington S NEWTON AYCLIFFE ON WAY A1(M) J59 A1(M)

A64

A59 Driffield Harrogate A166

A61 York

A658 A614 A65 A1079

A64

A660 A1035 A61 A1079 Leeds A19 14 A650 Bradford A58 44 A658 Airport 13 Shipley A6120 Beverley A587 A64 45 A59 12 Aldbrough A614 A583 M55 32 A671 Leeds 3 1 Bradford 47 4 11 A59 10 46 M6 9 M62 A165 Blackpool A6 8 A610 A583 A666 M65 Selby Cottingham 45 A63 A1(M) A63 38 31 7 A164 A603 M621 44 A63 A584 Preston 6 M606 A63 Hull A646 37 Heddon 30 Blackburn 26 28 A58 29 A19 Brough 5 A646 30 A59 29 Halifax 29 3 4 32a A582 1 M62 31 36 Rawtenstall M1 32 M62 Leyland Goole 28 M65 25 33 34 35 A681 Wakefield Barton-uoon-Humber A56 A644 8 24 23 Southport M6 Chorley Huddersfield A628 A1 A666 1 A58 A642 M66 A576 6 A56 A629 Rochdale M62 38 Horwich Bury 21 A58 5 Scunthorpe 27 2 1 5 Bolton 20 M181 M180 3 38 Ormskirk 6 A58 19 M1 A1(M) 2 Grimsby Barnsley 3 M58 Wigan 5 M61 37 M180 4 3 4 37 4 19 Oldham A635 5 26 3 17 20 16 Doncaster 1 21 Bolton upon Walkden 15 22 1 A627 A695 Deane 14 25 36 Ashton- A616 36 A633 7 M6 A580 Salford Under-lyne 12 24 1 2 A6010 A628 3 23 A635 6 M62 A580 11 A630 M57 23 M18 4 10 Bootle St Helens 35 Manchester 24 3 A629 3 M67 Wallasey 22 Rotherham 102 11 A6 25 10 6 A34 M1 34 A5058 M62 21A 26 A631 1 9 A56 5 27 5 6 7 1 4 2 33 32 2 21 3 2 1 3 A553 Warrington Birkenhead Liverpool M60 32 A5300 A557 4 A57 Sheffield A60 3 5 A562 31 Widnes 20 8 Manchester A41 A56 7 6 Airport A6 Norton Lees Prestatyn Speke 9 A57A57 Llandudno 4 10 A6102 Heswall Liverpool A533 Benlech River Mersey John Lennon 11 A61 Rhyl Airport A523 A540 A34 Hollyhead A55 A557 Colwyn Bay 12 M6 19 5 6 A547 M53 7 Rhuddlan 8 Ellesmere Port A547 A533 A537 A623 30 A55 Holywell 9 A619 Anglesey A55 M56 A556 Beaumaris Buxton 10 14 A537 Llangefni A548 B5381 Llanfairfechan St. Asaph A49 A61 A548 11 A537 A55 15 Macclesfield A525 Flint Northwich A6 M1 A60 A541 A473 A41 A548 A5117 Chesterfield Bangor A5119 A556 A54 A34 A617 12 A533 18 Denbigh A54 A487 A544 A494 A51 Chester A49 A513 A5 A523 A53 Congleton A55 Llanrwst 17 A494 Ruthin A50 A470 A41 A51 A34 A530 A5 A534 M6 A527

A470 A534 A534 A53 A5 A494 16 Nantwich A500 A500 Wrexham A41 A49 A520 A34 A5 A51 Stoke

Corwen A5 On-trent Llangollen A525

15 A50 A51 A34 A520 A53

A519 Stone

A5013 A51 A518 A34 A41 A519 14 Stafford A518 B5405 SITUATION

“Approximately 1 mile north west of Newton Aycliffe the property lies within a village complex”

The property is situated CARER’S WAY approximately 1 mile north west of Newton Aycliffe town centre off Burn Lane which provides direct access into the town centre with the surrounding road network also providing easy access onto the A689 and A167 which both lie within close proximity.

The property lies within a village complex comprising various healthcare practices such as a pharmacy and GP surgery, together with various retail units, a Sainsbury’s local, and a public house. The surrounding area predominantly comprises residential uses.

ROSE LODGE BURN LANE CARE HOME NEWTON AYCLIFFE DESCRIPTION

Developed in 2003 the property offers a high quality purpose built care/nursing home facility.

Designed to allow flexibility the property is of traditional brick construction under a pitched roof. Internally it offers:-

• 54 en–suite bedrooms • Numerous lounge and dining areas • On site café and bar • Dementia–friendly coffee shop opened in 2016. • Garden and patio areas • External parking

Full details of the property can be found on the company’s web page www.mmcgcarehomes.co.uk

ROSE LODGE CARE HOME NEWTON AYCLIFFE THE SITE

“Developed in 2003 the property offers a high quality purpose built care/nursing home facility”

Site

The property occupies a site of 0.363 acres (0.147 hectares).

Tenure

The property is held Long Leasehold for a period of 120 years from 22 November 2002 at a peppercorn rent.

ROSE LODGE CARE HOME NEWTON AYCLIFFE TENANCY

The property is let to Countrywide Care Homes (2) Limited on a 30 year Full Future uplifts are outlined below: Repairing and Insuring lease from 11th June 2007 at a current rent of £403,422 pa. In addition the property benefits from annual rental uplifts based upon 2% per annum Year £/pa increases with the next increase being October 2018 when the rent increases to 14 October 2018 £411,490 £411,490 pa. 14 October 2019 £419,720 The lease was subject to deed of variation in 2011 when Countrywide Care took 14 October 2020 £428,115 assignment when the rent was rebased. There is also a photographic schedule of 14 October 2021 £436,677 condition. 14 October 2022 £445,410 14 October 2023 £454,319 14 October 2024 £463,405 14 October 2025 £472,673 14 October 2026 £482,127 14 October 2027 £491,769 14 October 2028 £501,605 14 October 2029 £511,637 14 October 2030 £521,869 14 October 2031 £532,307 14 October 2032 £542,953 14 October 2033 £553,812 14 October 2034 £564,888 14 October 2035 £576,186 14 October 2036 £587,710

Under the terms of the lease the tenant provides full management accounts to the landlord. Copies of these can be supplied to interested parties.

ROSE LODGE CARE HOME NEWTON AYCLIFFE TENANT COVENANT

Countrywide Care Homes (2) Limited are 100% owned by Countrywide Care Homes Countrywide Care Homes (2) Limited have a D&B rating of 2A1 (minimum risk of Limited , who also own AAG Homes, Countrywide Belmont Limited and Countrywide failure). The company employs over 550 people and reported for the year ending Care Homes (3) Limited. 30th April 2016 the following financial figures

Countrywide Care Homes were founded in 2011 to provide high quality and Year Turnover Pre Tax Profit Shareholders Funds affordable care for the elderly. It was set up to take over the running of a number of care homes within the Southern Cross Healthcare portfolio. 2017 £16,278,348 £856,694 £5,913,611 2016 £14,689,178 £104,679 £5,026,917 Despite being relatively new the company is a sister company to Maria Mallaband 2015 £13,378,225 £151,530 £4,491,532 Care Group which has been providing specialist care since 1996. The company is still family owned and is recognised as one of the UK’s leading independent care suppliers. The company run over 80 care homes in the UK. Both businesses were Countrywide Care Homes (2) Limited is 100% owned by Countrywide Care Homes founded by Phil Burgan who is CEO and Chairman to both companies. Limited, who for the year ending 30th April 2016 reported a turnover of over £50m.

Countrywide Care Homes operate around 30 properties around the UK and further MMCG which employs over 1,700 people across the UK achieved a turnover of £56m information can be found at www.mmcgcarehomes.co.uk which is a shared web for the year ending 30th April 2016. platform with it’s sister company, Maria Mallaband Care Group.

ROSE LODGE CARE HOME NEWTON AYCLIFFE EPC

The property has an EPC rating of B.

FURTHER VAT INFORMATION The property is not elected for VAT.

Proposal

We are seeking offers in excess of £5,000,000 (Five Million Pounds), subject to contract, which offers an attractive net initial yield of 7.57%, rising to 7.72% in Contacts and further information 2018 and over 8% in 2020, net of purchasers costs of 6.59% Should you require further information or wish to inspect the property In addition, the fixed annual rental increases create an attractive running yield please call. Additional information can be downloaded at our data site profile as outlined below: www.gva.co.uk/13856.

David Winterbottom Simon Beanland T 0161 956 4103 T 0191 269 0512 Year Yield M 07836 225 552 M 07885 459 270 October 2018 7.72% E [email protected] E [email protected] October 2019 7.88% Matt Jones Lynsey Underwood October 2020 8.03% T 0161 956 4101 T 0191 269 0093 October 2021 8.19% M 07904 629 605 M 07767 477 027 October 2022 8.36% E [email protected] E [email protected] October 2023 8.52% October 2024 8.70% October 2025 8.87% October 2026 9.05% October 2027 9.23% October 2028 9.41% October 2029 9.60% 0161 834 7187 0191 261 2361 October 2030 9.79% gva.co.uk/13856 gva.co.uk/13856 October 2031 9.99% October 2032 10.19% October 2033 10.39% Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These October 2034 10.60% particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any October 2035 10.81% person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. February 2018. October 2036 11.03% RB&Co 0161 833 0555. www.richardbarber.co.uk