DIAMOND

PORTFOLIO

A PORTFOLIO OF SIX MODERN TRADE, LOGISTICS & WAREHOUSE UNITS

EXECUTIVE SUMMARY A69 NEWCASTLE  A portfolio of six modern trade, logistics and warehouse units.  Geographically spread across the Midlands, DURHAM and North East. M6  Units date from late 1990’s through to 2014. Nissan Way,  A mix of warehousing, trade counter and advanced A1M manufacturing uses.  All freehold.

 Total floor area 242,920 sqft with units ranging from 21,512 sqft to 67,518 sqft. Sedge eld Way, STOCKTON ON TEES  Let to six tenants with a portfolio AWULT of 6.2 years to expiries and 4.0 years to breaks. M6 M18 MANCHESTER  Total rental income £1,212,056 – an average of only £4.99 per sqft. SHEFFIELD Fields End Business Park,  Significantly reversionary with portfolio ERV of GOLDTHORPE Birch Park, £1,389,535 – an average of £5.72 per sqft and an GILTBROOK increase of almost 15% from the passing rents. STOKE ON TRENT M6 NOTTINGHAM DERBY A1 M1 We are instructed to seek offers in excess of Access 26, LANGLEY MILL £21,425,000 (TWENTY ONE MILLION FOUR LEICESTER HUNDRED & TWENTY FIVE THOUSAND BIRMINGHAM A14 A11 POUNDS)

A purchase at this level will reflect an initial yield of Hawkins Drive, M5 M40 M1 M11 5.30% based on purchaser’s costs of 6.75%. CANNOCK A1M The reversionary yield will be 6.08% based on our ERV.

Underlying capital value of the portfolio of only £88 per sqft. M4 M4 LONDON M25 M3

M5 PORTFOLIO TENANCY SUMMARY

AREA EXPIRY RENT ERV ADDRESS AGE TENANT COMMENTS (SQFT) (BREAK) (£/SQFT) (£/SQFT) Hawkins Drive, 13/07/2036 £165,000 £165,000 New letting. Lease will be subject to a Schedule of Late 1990s 27,692 Creation Wholesale Ltd CANNOCK WS11 0XT (14/07/2026) (£5.95) (£5.95) Condition. Tenant break options at Years 5& 10. Units 1&2, Birch Park, Giltbrook, Late 1990’s Travis Perkins £346,314 £370,285 Two units let on same terms. Both units currently sub 61,714 29/02/2028 NOTTINGHAM NG16 2AR & 2007 (Properties) Ltd (£5.61) (£6.00) let. Unit B3 Access 26, Langley Mill, £160,079 £183,950 Principal & Additional Rents reflect low site cover. 2004 29,433 CCF Ltd 16/09/2024 NOTTINGHAM NG16 4HY (£5.05) (£6.25) Tenant has been in occupation since unit was built. Plot 2, Fields End Business Park, 07/09/2024 £289,828 £371,350 Droves Dale , GOLDTHORPE 2003 67,518 Portwest Clothing Ltd (08/08/2023) (£4.29) (£5.50) S63 9EU Sedgefield Way, Yodel Delivery Network 24/12/2025 £145,000 £175,250 Tenant/business had unit built specifically for its parcel Late 1990’s 35,051 STOCKTON ON TEES TS18 2SG Ltd (24/12/2023) (£4.13) (£5.00) operations. Low site cover. Barmston Court, Turbine Park, Hyperdrive Innovation 27/04/2029 £105,835 £123,700 2014 21,512 Nissan Way SUNDERLAND SR5 3NY Ltd (27/04/2024) (£4.92) (£5.75) £1,212,056 £1,389,535 242,920 (£4.99) (£5.72)

PORTFOLIO ANALYSIS VAT INCOME BY INCOME BY INCOME BY The properties have been elected for VAT and therefore VAT will REGION PROPERTY LEASE EXPIRES be payable. It is intended that the portfolio will be sold as a TOGC.

0-5 yrs 5-10 yrs North East West Midlands Sunderland Cannock 49.1% 37.3% DATAROOM 20.7% 13.6% 8.7% 13.6% There is a dataroom set up to provide further information on each Stockton property. Access can be arranged on request. on Tees 12.0% ANTI MONEY LAUNDERING Giltbrook 28.6% In accordance with Anti Money Laundering Regulations, two Goldthorpe 23.9% forms of identification and confirmation of the source of funding will be required from the successful purchaser.

Yorkshire East Midlands Langley Mill 10 yr+ CONTACT 23.9% 41.8% 13.2% 13.6% For further information or to arrange inspections please contact: ANDREW PRICE 07798 656 360 [email protected]

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements. LOCATION

Cannock is located in South Staffordshire, 18 miles north of Birmingham, 10 miles north east of Wolverhampton, 15 miles south of Stafford and 28 miles south of Stoke on Trent. The A5 runs south of the town providing access 2 ½ miles north west to Junction 12 of the M6 while Junction 11 is 1 mile to the south west. The A5 runs eastwards towards Brownhills and HAWKINS DRIVE, Tamworth. The runs to the south with T7 & 8 both serving the town. The M6 Toll also links CANNOCK WS11 0XT to the M6 westwards and the M42 to the south east. The town has a strong industrial presence focused around the A5 and M6 Toll. Hawkins Drive INVESTMENT SUMMARY is accessed off Watling Street (A5) via Walkmill Lane. In the immediate location are companies such as Ibstock, TJ Edwards and PJH Group. There is also South Staffs Business Park directly  Late 1990’s newly refurbished industrial unit on established park behind the subject property and Lakeside Business Centre to the north on Walkmill Lane. Along the A5 there is a mix of large industrial occupiers such as Finning Cat, Super Smart Service  27,692 sqft and Gestamp as well as a range of national trade counter operators and Wyrley Brook and Linkway Retail Parks. Kingswood Lakeside is a mile to the east where there has been significant  New letting to Creation Wholesale Ltd on a 15 year lease from new build distribution warehousing undertaken over recent years and has attracted occupiers July 2021, tenant option to break at Years 5 & 10 such as Hellerman Tyton, Bidfood and DHL.  Break penalty at Year 5 of £82,500 The Cannock area has a good source of labour and a population of over 6 million within an hour’s drive time.  Rent - £165,000 per annum (£5.95 per sqft)

 ERV - £165,000 (£5.95 per sqft) A5

Kingswood Lakeside

T7

M6 Toll A4601 A5

11A

T8 M6

Taken During Recent Refurbishment 11 M6

M6 Toll

Hawkins Drive

Lakeside Business Centre Wyrley Brook Retail Park

A5 DESCRIPTION

The property is a detached single bay industrial unit with clad elevations and a steel profile roof. The unit has previous been occupied by Rhenus Logistics and DHL. The building has recently undergone significant refurbishment as part of the new letting deal. The unit has two storey brick built offices to one corner of the front elevation.

The refurbishment programme was completed in early July, a summary of the works undertaken are:

 Redecoration of external steel frame to loading bay canopy  Cleaning of warehouse floor  Internal redecoration of warehouse walls  Refurbishment of offices including new ceilings, lighting and carpets

Further details are available on request. There is the provision in the lease for the landlord to replace two dock levellers within 8 months of the commencement of the lease. These works have been authorised but the lead in time means the works are still to be done after the start of the lease.

There are eight dock level loading doors of which six are drawbridge style docking units. Four of the loading doors are served by a canopy.

The unit has an eaves height of 9.0m.

The site is fully palisade fenced and has a single access point from Hawkins Drive. The yard and parking areas are a mix of concrete and brick paving.

The site is 0.61 hectares (1.52 acres) which gives a site density of 36%. ACCOMMODATION

Floor SQM SFT Ground Floor 2,219.2 23,888 First Floor Offices 211.0 2,271 Store Above Offices 142.4 1,533

M6 Toll Ibstock TOTAL 2,572.6 27,692

TJ Edwards Warehousing There is a small mezzanine storage area within the unit which is excluded from the areas above and extends to 51.3 sqm (552 sqft). The canopy which serves four of the loading doors extends to 459.3 sqm (4,944 sqft).

South Staffs Business Park TENURE Freehold. PJH Group TENANCY

LEASE EXPIRY TENANT RENT £/SQFT ERV £/SQFT START (BREAK) Creation 13/07/2036 Wholesale 14/07/2021 (14/07/2026 £165,000 £5.95 £165,000 £5.95 Ltd & 2031)

Notes:  Break penalty at Year 5 of £82,500 + VAT.  Break requires 12 months’ notice.  5 yearly upward only, open market reviews.  Initial half rent for first 12 months. This will be topped up by the vendor.  The lease will be subject to a Schedule of Condition and is in the process of being prepared as the landlord’s works have recently been completed.

Taken During Recent Refurbishment COVENANT Creation Wholesale Ltd The company are a UK wholesaler of hydroponic products including leading brands such as Aptus, Atami, Shogun & Ecothrive. The company was formed in 2017 and has over 20 years of experience in the hydroponics market. The business is purely wholesale dealing direct to businesses such as garden centres, nurseries and universities. The company has grown significantly in the past few years from an original 2,000 sqft unit in Rugeley. The company are moving from a facility on Ridings Park in Cannock due to the need for additional storage space and better loading facilities. The company reported the following figures in their last three years’ of published accounts:

31/07/2020 31/07/2019 31/07/2018 (£000’s) (£000’s) (£000’s) Turnover - - - Pre Tax Profit - - - Total Assets Less Current Liabilities 755 354 142 Shareholders’ Funds 704 353 140

Further information on the company’s trading is available on request.

MARKET COMENTARY

The Staffordshire industrial market has been extremely active over the last 12 months with significant lettings completed in the distribution warehouse sector including a 437,000 sqft letting to ASOS at Fradley Park and a 275,000 sqft letting to AO at G Park, Stoke. Super Smart Services have also acquired three units in Cannock totalling over 425,000 sqft. New build mid box units along the A5 are achieving over £7.00 per sqft, providing headroom for rents on existing stock. Recent comparable letting deals include:

ADDRESS SIZE (SQFT) DATE RENT (£/SQFT) Ore 70, Telford 70,000 Jun 21 £5.95 Core 6, Core 42, Tamworth 21,376 Prelet £7.50 Paget 12, Burntwood 35,891 Jun 21 £6.25 Unit A Vanguard, Tame Park, Tamworth 25,629 Dec 20 £6.50 T49, St Modwen Park, Tamworth 49,825 Jul 20 £7.25

EPC

The building has an EPC rating of C-71. A copy of the certificate is available on request.

Taken During Recent Refurbishment LOCATION

Giltbrook is located 7 miles north west of Nottingham city centre, on the southern edge of Eastwood and 2 miles east of Langley Mill and Heanor. Derby is 13 miles to the south west. The area has excellent road links with the A610 running directly past the subject site and links to Junction 26 of the M1 3 miles to the east. The A610 leads north westwards to Ripley and the UNITS 1&2, A38, 9 miles away. BIRCH PARK, GILTBROOK, NOTTINGHAM Nearby modern industrial developments include Access 26 at Langley Mill where tenants such as DHL, Warburtons and CCF are located and Panattoni Park, a 55 acre site. The scheme was NG16 2AR speculatively developed with three units totalling 715,000 sqft which have been let to Amazon, Hermes and Food Innovations. INVESTMENT SUMMARY The subject property lies directly to the north of the A610 and has direct access to and from the  Two detached industrial units built in the late 1990’s & 2007 from the eastbound side of the road. There are road junctions within ½ mile to the east and west enabling vehicle access to the site from the opposite side of the carriageway.  Unit 1 - 31,712 sqft Unit 2 – 30,002 sqft Under a mile to the east is the Giltbrook Shopping Park, anchored by Nottingham’s Ikea, Next,  Let to Travis Perkins (Properties) Ltd on two 20 year leases from Decathlon, TK Maxx and Pets at Home. Directly to the north of the site is modern residential March 2008 development and further along the A610 St Modwen/Persimmon are developing 150 new homes on the former Beamlight Automotive factory site.  Both units are currently sub let.  Total rent - £346,314 per annum (£5.61 per sqft)  ERV - £370,285 (£6.00 per sqft)

Panattoni Park

M1 Access 26

A610

Giltbrook Shopping Park

Unit 1 26 Access 26

CCF Bid Food

Panattoni Park

Giltbrook Shopping Park

Birch Park A610

To Nottingham & J26 M1 DESCRIPTION The property comprises two modern detached industrial units, Unit 1 was constructed in the late 1990’s, Unit 2 was built in 2007. Both are of steel portal frame construction with eaves heights of 8.1m. The units have brick and clad elevations under profile corrugated steel roofs. There is a security hut at the entrance to Birch Park, this is not demised to either unit and forms part of the wider estate along with the estate road. There is a separate compound at the rear of Birch Park which is in separate ownership and has a right of access along the estate road. Unit 1 The unit is a single bay warehouse with two storey ancillary offices to the front elevation. There is a car park to the front elevation and a main loading yard to the rear with additional loading possible from the northern elevation. In total there are 6 level access loading doors along the rear elevation and two to the side elevation. There are mezzanine offices and double decker storage areas within the main warehouse which were in situ when the original business that occupied the unit was sold to BSS, these are considered a tenant’s fixture and fitting. The current sub tenant has recently vacated the property prior to their break date in September 2021. The head tenant is currently considering options including moving a group company into the unit. The area demised to Unit 1 excludes an area of an electricity substation which was transferred to East Midlands Electricity in February 1998. Unit 2 The unit is a single bay warehouse with two storey integral offices. There is a car park/loading to the side elevation and a main loading yard to the front. In total there are 3 level access loading doors along the front elevation and one smaller door to the side elevation.

There is a small area of additional mezzanine storage within the main warehouse which is a landlord’s fixture. ACCOMMODATION

To Langley Mill We understand the units extend to the following gross internal areas:

UNIT 1 Floor SQM SFT Ground Floor 2,104.1 22,649 1st Floor Warehouse Offices 232.6 2,504 A610 1st Floor Archive Store 46.2 497 Two Storey Front Offices 563.2 6,062 To Nottingham & J26 M1 2,946.1 31,712

UNIT 2 Floor SQM SFT Warehouse 2,357.9 25,380 Ground Floor Offices 214.7 2,311 1st Floor Offices 214.7 2,311 2,787.3 30,002 There is a small mezzanine storage area in the warehouse of Unit 2 which is landlord’s but has been excluded from the above floor areas.

Overall the site extends to 1.50 hectares (3.64 acres) and offers a low site cover of only 39%.

TENURE Freehold.

There is a right of way granted to the owner of the rear plot of land on Birch Park, this is along the access road. The owner of this rear land is obliged to contribute to the estate service charge and also keep the roadway clean. The estate is controlled by the Giltbrook Management Company. The company is responsible for its maintenance and upkeep.

Unit 2 TENANCY COVENANT

EXPIRY Travis Perkins (Properties) Ltd TENANT LEASE START RENT £/SQFT ERV £/SQFT (BREAK) The company is a wholly owned subsidiary of Travis Perkins plc. The company’s Unit 1 principal activity is the management of the Travis Perkins group property portfolio. Travis Perkins 01/03/2008 29/02/2028 £189,387 £5.97 £190,270 £6.00 (Properties) Ltd The company reported the following figures in their last three years’ of published Unit 2 accounts: Travis Perkins 01/03/2008 29/02/2028 £156,927 £5.23 £180,015 £6.00 31/12/2019 31/12/2018 31/12/2017 (Properties) Ltd (£000’s) (£000’s) (£000’s) TOTAL £346,314 £5.61 £370,285 £6.00 Turnover 68,000 92,200 87,300 Pre Tax Profit 31,300 49,500 68,900 Total Assets Less Current Liabilities 302,200 272,500 341,300

Notes: The BSS Group Ltd Unit 1  The property was originally let to Birchwood Group Holdings Ltd. The lease is The company is the guarantor to the lease and are a wholly owned subsidiary of guaranteed by The BSS Group Ltd. There has been a recent assignment of the lease Travis Perkins plc. This company has also been dormant since 2018. to Travis Perkins (Properties) Ltd. Their last published accounts were from December 2017 and reported Shareholders’  There is a Schedule of Condition attached to the lease dated 11 March 2008. Funds of £97.2m.  There is a stated floor area of 32,937 sqft for rent review purposes.  The unit has been sublet to Group Silverline Ltd, the sub tenant has a break option in September 2021 which has been exercised. The sub tenant is paying the passing rent. Unit 2  The property was originally let to Birchwood Group Holdings Ltd. The lease is guaranteed by The BSS Group Ltd. There has been a recent assignment of the lease to Travis Perkins (Properties) Ltd.  There is no stated floor area for rent review purposes.  The unit has been sublet to Reydon Sports plc from 13 March 2017 to 28 November 2027. The tenant has a break clause on 13 March 2023, giving at least 6 months’ prior notice.  There is a Schedule of Condition attached to the sublease which was prepared on 6 February 2017.  The sub tenant’s service charge contribution was initially capped at £5,000 per annum, which is reviewed annually. The sub tenant is paying the passing rent. Unit 2 MARKET COMENTARY The area around Giltbrook has seen significant recent industrial development and demand generated primarily by Panattoni’s scheme a mile away at Langley Mill. There is unsatisfied trade demand in the area which currently is struggling for available and suitable stock. This is reflected around all of the Nottingham junctions and surrounding commercial areas. In April 2021 Urban Logistics REIT committed to a forward funding of new speculative industrial units across two East Midlands locations, Blenheim Park, Nottingham and Optimus Point, Leicester. There will be five units built across the two sites totalling 210,000 sqft. The price paid for the package equates to £109 per sqft. The envisaged quoting rents at Blenheim Park (J26 of M1) will be £6.75 per sqft. Total Park, Access 26, Langley Mill is awaiting planning for a 33,000 sqft and 44,000 sqft unit scheme. Envisaged quoting rents are £6.85 per sqft or £120 per sqft on a freehold basis. Modern smaller trade units around Junction 26 at Giltbrook and Langley Mill are at £7.75 to £8.50 per sqft. Recent comparable letting deals include:

ADDRESS SIZE (SQFT) DATE RENT (£/SQFT)

Unit 1 Tetron Point, Swadlincote 33,197 Q2 21 £6.00

Perseus 60, Wellington Trilogy, Fradley 60,838 Feb 21 £6.75

Glaisdale Parkway, Nottingham 15,762 Dec 20 £6.02

Nottingham 89, Panattoni Park, Nottingham 89,73 Nov 20 £6.50

Unit 2, Tetron Point Swadlincote 28,870 Aug 20 £5.95

Unit 5 Leicester Distribution Park, Leicester 50,643 Jun 20 £6.50

Merlin 70, Wellington Trilogy, Fradley 71,903 Jun 20 £6.75

T49 St Modwen Park, Tamworth 49,825 May 20 £7.25

Unit 1A Derby Commercial Park, Derby 33,269 Jan 20 £6.50

Nottingham 75, Panattoni Park, Nottingham 75,402 Mar 19 £6.95

EPC The buildings have the following EPC ratings- Unit 1 – D-92 Unit 2 – C-73. A copy of the certificates are available on request. LOCATION

Langley Mill is located on the western edge of Nottinghamshire 8 miles north west of the city centre. Derby is 9 miles to the south west. Eastwood and Heanor are 1 mile east and west respectively.

PLOT B3, Junction 26 M1 is 4 miles to the south east and links directly with the A610 dual carriageway which runs directly to the north of the subject property. The A610 links westwards to the A38 at ACCESS 26, ENTERPRISE WAY, LANGLEY MILL, Ripley. Junction 27 of the M1 is 4 miles to the north east.

NOTTINGHAM NG16 4HY The property is part of Access 26 a modern 35 acre industrial park predominantly built in 2003- 4. Longstanding occupiers on the park are Bidfood, DHL and Warburtons. Total Park lies at the INVESTMENT SUMMARY end of Enterprise Way and is a 4 acre development site where two industrial units of 33,000 & 44,000 sqft are planned.  2004 built detached trade unit on established park Other occupiers around the A610 Langley Mill junction include Travis Perkins and Lidl and  Built for tenant. Low site cover. supermarkets. The immediate location has been further strengthened in the recent past by  29,433 sqft Panattoni developing their 715,000 sqft park directly north across the A610 which has secured Amazon, Hermes and Food Innovations to the fully let scheme.  Let to CFF Ltd on an original 15 year lease from November 2004 which has been extended through to September 2024  Rent - £160,079 per annum (£5.05 per sqft)  ERV - £183,950 (£6.25 per sqft)

Panattoni Park

M1

Access 26

Giltbrook A610 Shopping Park

26 Panattoni Park A610

Bid Food

To Nottingham & J26 M1

Total Park DESCRIPTION

The unit was built in 2004 and is a detached industrial/trade counter unit with clad elevations and a steel profile roof. The two bay unit has a small element of ground floor offices and trade counter to one corner along the front elevation and staff facilities and storage above. CCF have been in occupation since the unit was built.

There are two level access roller shutter loading doors fronting onto the yard.

The unit has an eaves height of 7.70m.

The site is fully fenced and has a single access point from the estate road. The concrete yard is partly used by the tenant for open storage and they have erected several storage racks for their operations.

The yard has an approximate depth of 55m.

The site is 0.75 hectares (1.85 acres) which gives a site density of 33%.

ACCOMMODATION

Floor SQM SFT Ground Floor 2,346.7 25,260 Ground Floor Offices/Trade 189.4 2,039 Counter Mezzanine Stores 198.2 2,134 TOTAL 2,734.3 29,433 TENURE Freehold.

Bailey Brook The owner of the common parts of Access 26, including the estate road, reserves the right to Industrial Estate levy a rent charge in respect of costs incurred in maintaining the common parts. No rent has ever been charged to date. The rent charge would be £10 plus 7.69% of costs associated with common part maintenance. All costs can be passed on to the occupational tenant. There is the intention to create a management company (Langley Mill Management Company Ltd) and the landlord of the subject property would be required to become a member.

TENANCY

Bid Food LEASE EXPIRY TENANT RENT £/SQFT ERV £/SQFT START (BREAK) Total Park CCF Ltd 02/11/2004 16/09/2024 £160,079 £5.05* £183,950 £6.25

Notes:  *The Principal Rent passing is £148,500 (£5.05 per sqft) with an Additional Rent currently of £11,579. This reflects the low site cover. The Additional Rent increase at review was on a pro rata basis with the Principal Rent increase.  The original lease was re-geared in 2016 which extended the term through until September 2024.  The fit out of the offices and trade counter are subject to a Licence to Alter and are disregarded for rent review purposes.

COVENANT CCF Ltd The company is a wholly owned subsidiary of Travis Perkins plc and are involved in the marketing and distribution of interior buildings products, specialising in plasterboard, metal studwork and insulation. The Langley Mill unit covers the Nottinghamshire, Derbyshire and Leicestershire region and has seen significant business growth over the last two years. The company reported the following figures in their last three years’ of published accounts:

31/12/2019 31/12/2018 31/12/2017 (£000’s) (£000’s) (£000’s) Turnover 519,600 496,700 469,500 Pre Tax Profit 31,900 23,900 22,000 Total Assets Less Current Liabilities 109,900 96,400 97,100 MARKET COMENTARY

The Langley Mill area has seen significant recent industrial development and demand generated primarily by Panattoni’s scheme. There is unsatisfied trade demand for the town which currently is struggling for available and suitable stock. This is reflected around all of the Nottingham M1 motorway junctions and surrounding commercial areas.

In April 2021 Urban Logistics REIT committed to a forward funding of new speculative industrial units across two East Midlands locations, Blenheim Park, Nottingham and Optimus Point, Leicester. There will be five units built across the two sites totalling 210,000 sqft. The price paid for the package equates to £109 per sqft. The envisaged quoting rents at Blenheim Park (J26 of M1) will be £6.75 per sqft.

Total Park, Access 26 is awaiting planning for a 33,000 sqft and 44,000 sqft unit scheme. Envisaged quoting rents are £6.85 per sqft or £120 per sqft on a freehold basis.

Modern smaller trade units around Junction 26 at Giltbrook and Langley Mill are at £7.75 to £8.50 per sqft.

Recent comparable letting deals include:

ADDRESS SIZE (SQFT) DATE RENT (£/SQFT)

Unit 1 Tetron Point, Swadlincote 33,197 Q2 21 £6.00

Perseus 60, Wellington Trilogy, Fradley 60,838 Feb 21 £6.75

Glaisdale Parkway, Nottingham 15,762 Dec 20 £6.02

Nottingham 89, Panattoni Park, Nottingham 89,73 Nov 20 £6.50

Unit 2, Tetron Point Swadlincote 28,870 Aug 20 £5.95

Unit 5 Leicester Distribution Park, Leicester 50,643 Jun 20 £6.50

Merlin 70, Wellington Trilogy, Fradley 71,903 Jun 20 £6.75

T49 St Modwen Park, Tamworth 49,825 May 20 £7.25

Unit 1A Derby Commercial Park, Derby 33,269 Jan 20 £6.50

Nottingham 75, Panattoni Park, Nottingham 75,402 Mar 19 £6.95

EPC

The building has an EPC rating of C-55. A copy of the certificate is available on request. LOCATION

Goldthorpe is located in the Dearne Valley area of South Yorkshire between the M1 and A1M, 8 miles east of Barnsley, 18 miles north east of Sheffield and 8 miles west of Doncaster. PLOT 2, Junction 37 of the A1M is 4 miles to the east via the A635 which links to Doncaster eastwards and Barnsley to the west. Junction 37 of the M1 is 10 miles to the west while Junction 36 is 9 FIELDS END BUSINESS PARK, DROVES DALE miles to the south west, accessed via the A6195 which also links to Dearne Valley, Bolton upon Dearne 4 miles south of Goldthorpe. ROAD, GOLDTHORPE, S63 9EU Dearne Valley and South Elmsall, to the north, are both similar locations where there are also INVESTMENT SUMMARY established distribution warehousing for the likes of Next, Asda and Superdrug. Other regional distribution centres in the area include ASOS/XPO.  2003 built detached industrial unit The subject property lies at the junction of the A635 and B6098. There are industrial warehouse  67,518 sqft units around this junction with Portwest Clothing having another facility as well as True Refrigeration (run by XPO), Stanton Logistics, Rupert Ingredients and Solar Frames. A mile west  Let to Portwest Clothing Ltd on a reversionary 5 year lease from is Goldthorpe Industrial Estate where Aldi have a regional distribution centre. September 2019  Rent - £289,828 per annum (£4.29 per sqft)

 ERV - £371,350 (£5.50 per sqft) SOUTH ELMSALL

37 A1M A635 A633

M1 BOLTON UPON DEARNE

36

35A To A1M

A635

Stanton Logistics

Office Village @ Fields End

To M1 DESCRIPTION

The detached warehouse unit was built in 2003 and has profile clad elevations and a steel profile roof. The are two storey offices at the western end of the unit.

The warehouse is served by two level access roller shutter doors and four dock level loading doors all of which are along the front elevation. Internally the tenant has fully racked the whole warehouse. The unit has an eaves height of 10.10m.

The site is fully fenced and has a single access point directly off Droves Dale Road. The concrete yard runs the full length of the unit with a separate car park at the western end of the site.

There is a substation on site and a substantial power supply.

The site is 2.03 hecates (5.02 acres) which gives a site density of 30%.

ACCOMMODATION

Floor SQM SFT Ground Floor 5,955.1 64,100 First Floor Offices 317.5 3,418 TOTAL 6,272.6 67,518

TENURE Freehold. TENANCY

LEASE EXPIRY TENANT RENT £/SQFT ERV £/SQFT START (BREAK)

Portwest 07/09/2024 08/09/2019 £289,829 £4.29 £371,350 £5.50 Clothing Ltd (08/09/2023)

A635 Notes:  A reversionary lease was agreed at the end of 2018 extending the term five further years from September 2019.  A subsequent Deed of Variation has moved the break clause back from 2021 to September 2023.  There is a Schedule of Condition which was prepared in June 2014.  The substation is separately let to Yorkshire Electricity Distribution plc for a term of 60 years from 30 October 2006 at a peppercorn rent.

COVENANT Portwest Clothing Ltd The company is a global manufacturer and innovator of workwear, safetywear and PPE. Established in 1904, Portwest claim to be the fastest growing workwear company in the world with a global distribution network and customer service staff in over 130 countries. The company is a family owned business and employs over 4,500 people worldwide. They own four factories in Bangladesh, Myanmar and Ethiopia, giving full control over their exceptional quality, lead times and ethical sourcing.

The two units at Goldthorpe provide their main HQ and main storage facilities. The company are in the process of extending their other property to further increase capacity in the location.

The company reported the following figures in their last three years’ of published accounts:

29/02/2020 28/02/2019 28/02/2018 (£000’s) (£000’s) (£000’s) Turnover 60,770 56,684 51,158 Pre Tax Profit 2,359 1,869 1,682 Total Assets Less Current Liabilities 7,406 5,508 12,019 MARKET COMENTARY

Availability of mid box and good quality warehousing facilities in South Yorkshire is extremely limited and has led to a number of speculative schemes being undertaken. The Dearne Valley has attracted many large scale regional distribution centres with the lies of Next, Asda and Superdrug all having a significant presence in the area. This has been further supported by Panattoni announcing plans for speculative development at their Park, Rotherham where they will build 630,000 sqft and 85,000 sqft units. Aberdeen Standard have also recently committed £110m to forward fund a new Next distribution centre of 779,000 sqft which will link to an existing facility at South Elmsall.

The mid box market is also buoyant in the area with several developers securing occupiers for their recent schemes. Gateway 38 at Barnsley was developed in 2016 and predominantly let to Barnsley MBC, the Council effectively sub let a range of 13-30,000 sqft units during 2017/18 at rents of £5.50 per sqft. The rental tone in the area has now moved on significantly. Ashroyd Business Park is located at Junction 36 of the M1 and was speculatively developed by Network Space. Units range from 21,000 sqft to 94,000 sqft, current quoting rents are £6.25 to £6.50 per sqft.

Recent comparable letting deals include:

ADDRESS SIZE (SQFT) DATE RENT (£/SQFT) Leftfield Park, Pontefract 83,502 May 21 £6.25 Leftfield Park, Pontefract 35,004 May 21 £6.50 Unit 14, Capitol Park, Barnsley 11,784 Prelet £5.95 Unit 15, Capitol Park, Barnsley 11,270 Aug 20 £5.94 Leftfield Park, Pontefract 21,437 Mar 20 £6.25 Bolton Road, Rotherham 97,233 Dec 19 £6.27 Unit 1, Phase 1, Shepcote Lane, Sheffield 45,000 Nov 19 £6.37

EPC

The building has an EPC rating of C-57. A copy of the certificate is available on request. LOCATION

Stockton on Tees is located 2 miles west of , 23 miles south east of Durham and 27 miles south of Sunderland. The town lies between the A1(M) and A19 routes that provide access northwards into Tyneside and southwards towards the M1 and M62.

The A19 runs to the east of the town. There are two main junctions, the first links to the A66 which SEDGEFIELD WAY, leads directly to Middlesbrough and westwards towards . The northern junction (J47) STOCKTON ON TEES TS18 2SG links to the A1046 which provides access through the town’s main industrial and trade areas. Along the A1046 are several retail parks including Stockton Shopping Park and INVESTMENT SUMMARY Interchange Retail Park. Retailers in the area include Asda, B&Q, The Range, B&M, Dunelm, Go Outdoors and Wickes. There is also a national representation of the trade counter operators at  Late 1990’s purpose built parcel delivery unit the likes of Portrack Trading Estate and Lunstrum Trade Park. Trade users in the immediate area  35,051 sqft include Screwfix, Toolstation, Halfords Auto Centre, BSS and PTS.  Let to Yodel Delivery Network Ltd on a 6 ¼ year lease from To the south of Portrack Lane is North Tees Industrial Estate which provides a mix of industrial September 2019 and trade users and links directly onto the A19 road junction.

 Tenant break in December 2023 Sedgefield Way lies to the north of Portrack Lane, accessed from the junction with Holme House  Rent - £145,000 per annum (£4.13 per sqft) Road. The subject site adjoins a Stockton on Tees Borough Council Highways Department depot and is across the road from Dove Builders Merchants.  ERV - £175,250 (£5.50 per sqft)

A19

Portrack Trade Park

Lustram Industrial Estate North Tees Industrial Estate A19 Stockton Shopping Park

Portrack Industrial Estate A1046

Morrisons Regional Distribution Centre

A66 North Tees A19 Industrial Estate

Portrack Industrial Estate

A1046

Lustrum Trade Park

Portrack Stockton Trading Estate Shopping Park

Dynamo Park Canmoor DESCRIPTION

The unit is a late 1990’s purpose built parcel delivery facility which effectively is run as a 24 hour operation. The unit is a single bay with offices to one end elevation.

The warehouse is served by three level access roller shutter loading doors and two raised dock level loading doors along the front elevation. There are small canopies over the loading areas.

The unit has an eaves height of 5.90m.

The site is fully fenced and has a single access point from Sedgefield Way. The car park at the front of the site is separate to the concrete yard which has an additional security barrier at its entrance. The yard runs the full length of the unit. The tenant is currently considering extending the staff car park on to a small area of landscaping to the side of the offices.

The site is 1.12 hectares (2.77 acres) which gives a site density of 27%.

ACCOMMODATION

Floor SQM SFT Warehouse 2,831.2 30,475 Ground Floor Offices 212.6 2,288 Mezzanine Floor/Staff Area 212.6 2,288 TOTAL 3,256.4 35,051

TENURE Freehold. TENANCY

LEASE EXPIRY TENANT RENT £/SQFT ERV £/SQFT START (BREAK) Yodel 24/12/2025 Delivery 29/09/2019 £145,000 £4.13 £175,250 £5.50 (24/12/2023) Network Ltd

Notes:  The lease is guaranteed by Shop Direct Holdings Ltd. The original lease was dated January 2000 and let to Securicor Omega Express Ltd. The latest renewal

Stockton on Tees was agreed in 2019. Borough Council Depot  Break clause requires 6 months’ notice. Portrack Trading Estate

COVENANT Lustrum Trade Park Yodel Delivery Network Ltd Yodel is a national parcel delivery company and one of the largest in the UK with more than 50 sites nationwide. Originally known as Home Delivery Network it rebranded to Yodel in 2010 having acquired DHL’s parcel delivery business. The company work in a variety of sectors and delivers to both businesses and household customers.

The Stockton depot serves a large geographical area stretching northwards to Durham and south into .

The company reported the following figures in their last three years’ of published accounts:

30/06/2020 30/06/2019 30/06/2018 (£000’s) (£000’s) (£000’s) Turnover 430,345 420,599 403,359 Pre Tax Profit (32,299) (67,058) (111,848) Total Equity & Liabilities 198,968 97,456 143,811 COVENANT Shop Direct Holdings Ltd The company reported the following figures in their last three years’ of published accounts:

30/06/2019 30/06/2018 30/06/2017 (£000’s) (£000’s) (£000’s) Revenue 2,013,500 2,003,500 1,948,800 Pre Tax Profit (130,900) (48,300) 43,600 Net Assets (20,100) 199,800 230,900

MARKET COMENTARY

Vacancy rates in the Stockton on Tees market have not moved much in the last 12 months and remains at sub 2%. Rents have grown across the region by 6% in the last year.

In May this year Helios & Northumberland Estates were granted planning permission for a new 2m sqft multi level logistics building to be developed at Wynyard Park. The development is planned to be completed in summer 2022.

The immediate area around Portrack Lane has a strong trade counter presence, units at Portrack Trading Estate are currently achieving £8.00 per sqft.

Recent comparable letting deals include:

ADDRESS SIZE (SQFT) DATE RENT (£/SQFT) Cannon Street, Middlesbrough 21,250 May 21 £5.18 Broomside Lane, Belmont Industrial 46,016 May 21 £5.25 Estate, Durham Unit 22, Rowburn House, Mandale Park, 27,607 Apr 21 £6.00 Durham Unit 24, Gowan House, Mandale Park, 29,922 Apr 21 £6.00 Durham Unit 28, Kent House, Mandale Park, 23,512 Feb 21 £6.00 Durham

EPC

The building has an EPC rating of C-67. A copy of the certificate is available on request. LOCATION

Sunderland is one of the dominant commercial centres in the north east lying 12 miles south east of Newcastle, 7 miles east of Washington and 13 miles north east of Durham. The area has a strong commercial and industrial centre concentrated around the Nissan plant west of the city BARMSTON COURT, centre and A19. TURBINE PARK, NISSAN WAY, SUNDERLAND The city is served by the A19 which leads northwards to Newcastle and southwards into North Yorkshire. Further west at Washington is the A1(M). SR5 3NY The city’s main industrial area is centred between Sunderland and Washington directly to the INVESTMENT SUMMARY west of the A19 at its junction with the A1231, this provides access eastwards into Sunderland city centre and westwards to the A1(M). The area around Nissan has seen significant new  Detached high end industrial unit built in 2014 development in recent years with schemes such as Turbine Business Park and International Advanced Manufacturing Park. Sunderland is one of the UK’s most competitive business locations  21,512 sqft being home to a host of world class companies such as Nissan, Rolls Royce, EDF Energy and BAE Systems. There is a strong skilled work force in the manufacturing sector and low labour costs  Let to Hyperdrive Innovation Ltd on a 10 year lease from April when compared against the UK as a whole. 2019  Tenant break in April 2024 Nissan have just announced plans for a new £1billion “gigafactory” to be built in partnership with Envision which will create 900 jobs at Nissan and 750 at Envision. The car maker has already  Rent - £105,835 per annum (£4.92 per sqft) committed over £430m to new generation, all electric vehicle production in the UK.  Additional solar panel tariff income. The International Advanced Manufacturing Park (IAMP) is a 245 acre site just to the north of the  ERV - £123,700 (£5.75 per sqft) Nissan plant which has the potential for upto 4m sqft of development. Over 625,000 sqft has been developed to date through a JV between and Sunderland City Councils and HBD.

Legal & General have also announced this year their plans to deliver upto 600,000 sqft in a Phase 1 project at their Hillthorn Business Park in Washington.

Turbine Business Park lies directly to the north of the Sunderland Highway (A1231) and south of Nissan and is a 43 acre which has already delivered a 425,000 sq ft warehouse to VANTEC Europe Ltd, a 60,000 innovation centre on behalf of Sunderland City Council, the Tyne & Wear Fire & Rescue HQ and a bespoke 18,500 sqft facility for Brenntag. There are further plots that can accommodate 20-68,000 sqft developments. The subject property lies at the southern end of Turbine Park.

Directly south of the A1231 is Pattinson Industrial Estate where Asda have two large regional distribution centres and to the west of the subject property are Bentall Business Park and Hertburn Industrial Estate. Improved A19 Junction

A19

International Advanced Manufacturing Park

Brenntag

Nissan Test Track

Turbine Business Park

Tyne & Wear Fire & Rescue HQ

A1231 DESCRIPTION International Advanced Manufacturing Park The unit is a detached high end industrial unit built in 2014. The building is part of College’s Future Technology Centre site. The subject unit has two distinct parts and is steel A19 framed with a shallow pitch roof. Internally the industrial A1290 space has been divided into warehousing and manufacturing space. There are also integral two storey offices.

The unit is served by five loading doors along the rear Bentall Busness elevation and a further level access roller shutter door to the A194M Hertburn Park Turbine Park Industrial front elevation. There is full access around the site with EV Estate charging points to one of the side elevations. The unit also A1231 has designated car parking in the wider Future Technology Centre car park. Pattinson Industrial Estate The unit has a minimum working height of 6.5m in the A1M warehouse and 8.0m in the manufacturing area.

The property has solar panels on the roof which were incorporated into the original design. These are a landlord’s fixture but there is no obligation to maintain them for the tenant. The tenant receives the electricity supply for free while the landlord receives tariffs of just over £3,000 per annum currently from nPower.

There is a designated access way to the rear yard behind the Future Technology Centre with access also possible through the Centre’s car park. There is full vehicular access around the site. There are 46 car spaces designated to the subject unit in the car park.

The site is 0.42 hectares (1.04 acres) which gives a site density of 42%. ACCOMMODATION

Floor SQM SFT Ground Floor 1,777.3 19,131 First Floor Offices 221.2 2,381 TOTAL 1,998.5 21,512

TENURE Freehold. The freeholder is liable to contribute to a wider service charge for the Future Technology Centre which is administered by Gateshead College. The allocated car parking is outside the freehold title but rights are granted into perpetuity.

TENANCY

LEASE EXPIRY TENANT RENT £/SQFT ERV £/SQFT START (BREAK) Hyperdrive 27/04/2029 Innovation 28/04/2019 £105,835 £4.92 £123,700 £5.75 (27/04/2024) Ltd

Notes: Regional Distribution Centre  The current rent is £89,960 and increases to £105,835 in April 2023. The vendor will provide a top up to the increased rental figure.  The landlord benefits from additional income from the solar panel tariffs which is A1231 currently c. £3,000 per annum.  The break clause requires 6 months’ notice. Turbine Business Park  The tenant will be granted a three month rent free period if the break clause is not exercised. Turbine Business Park  The tenant has a service charge cap on their contribution. This was fixed at £4,000 Nissan Test Track per annum at the start of the lease and has annual indexed linked increases. Washington Business  There is an rent review at year 5 on an upward only basis to the lower of open Centre market or RPI. COVENANT MARKET COMENTARY

Hyperdrive Innovation Ltd The continued lack of quality space continues to drive rental growth in established industrial areas, The company are involved in pioneering battery technology to non particularly along the A1(M) and A19 corridors. Larger requirements in the region remain unsatisfied due automotive markets and were established in 2012. The patented to the lack of suitable existing buildings. This has led to speculative development and design and build battery management and energy storage systems are installed becoming genuine options for developers now in the North East. The regional market’s robust supply/ into battery packs for clients such as Ocado, JCB and Eaton and demand dynamic has led to industrial rents consistently increasing over the past 5 years by 2-4% per are suited for multiple applications. The company have recently annum. Quoting terms on new build are largely £6.50 - £7.25 per sqft depending upon specification. agreed a significant 10 year development programme with Hitachi. Brenntag prelet a bespoke unit in 2018 on Turbine Business Park. The 18,500 sqft facility stands on a 3.4 The company moved to the subject property in 2019 to double acre site. The tenant agreed a 25 year lease at an initial rent of £285,000 which reflected the low site cover their manufacturing capacity and currently run operations from but still a rent of over £10 per sqft on the unit itself after making an allowance for the surplus land. Sunday 10pm through to Friday 10pm in three daily shifts. The company have a battery supply agreement with Envision, formerly DPD are committing to a new purpose built 60,000 sqft facility at Velocity 194 in Washington . Nissan, so the supply chain is local. Much of the business’s supply chain are all based in the North East. There are 73 staff working on Recent comparable letting deals include: site and the business has not shut down during the pandemic.

It has recently been reported that the company has been bought ADDRESS SIZE (SQFT) DATE RENT (£/SQFT) by a Silicon Valley venture backed by Bill Gates, Robert Downey Jnr 5B Follingsby Park, Gateshead 21,317 Nov 20 £5.86 and Amazon. Turntide Technologies have acquired two North East Unit H, Waterfront Industrial Estate, 22,238 Sep 20 £5.72 businesses and have planned a £100m investment in the region Riverside, Newcastle and sector. 1 Kingsway Court, Team Valley, 17,777 Apr 20 £5.57 Gateshead The company reported the following figures in their last three Unit B Infinity Park, Monkton 16,184 Nov 19 £6.14 years’ of published accounts: Business Park, Hebburn Unit 5 Queensway, Team Valley, 29,946 Sep 19 £6.00 31/03/2020 31/03/2019 31/03/2018 Gateshead (£000’s) (£000’s) (£000’s) Unit A Infinity Park, Monkton 31,524 Jan 19 £6.00 Turnover — — — Business Park, Hebburn Pre Tax Profit — — — Total Assets Less 2,167 2,132 (2,085) Current Liabilities EPC Further company information is available on request. The building has an EPC rating of C-57. A copy of the certificate is available on request.

Franck Steier Price 6 The Old Post Office, Old Square, Warwick, CV34 4RA

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