South Bersted Industrial Estate, Bognor Regis PO22

Established South East Multi Let Industrial Investment Opportunity Castlegrove Business Park, Durban Road South Bersted Industrial Estate, Bognor Regis PO22 9QT Click to Enter > Executive Location Description, Tenancy, Tenure, Investment VAT, EPC, Proposal & Summary Site Tenancy Schedule Market Further Information

PRINT SAVE Executive Summary Well established South East industrial estate of 8 units totalling 6,535 sq m (70,342 sq ft).

Long Leasehold interest until 3001 at a peppercorn.

Fully let to six Tenants.

Total rental income of £402,066 per annum reflecting a low rate of £5.71 psf offering excellent prospects for growth.

Average weighted unexpired lease term of 2.43 years to lease expiries (1.12 years to break).

Offers in excess of £5,030,000 subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.50% net of acquisition costs of 6.59%.

Castlegrove Business Park, Durban Road, South Bersted Industrial Estate, Bognor Regis, West Sussex PO22 9QT Executive Location Description, Tenancy, Tenure, Investment VAT, EPC, Proposal & Summary Site Tenancy Schedule Market Further Information

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A4130

1 A40 Henley- Maidenhead Uxbridge A406 on-Thames Slough Location A3 A40 7 29 6 74 A4 4 1 A34 3 S 2 S Windsor A4 LONDON M4 Reading 14 Richmond 14 13 A329(M) 13 HEATHROW Bognor Regis is located in the county of West Sussex on the south coast of England. The town is approximately 11Km S 12 Hungerford S 10 Bracknell Staines 1 Kingston A4 11 upon Thames (7 miles) south – east of Chichester, 40Km (25 miles) east of Portsmouth and 120km (74 miles) south of London. Newbury 11 A232 Sutton Croydon 3 A338 Camberley A34 M25 Epsom A340 3 10 A2 The town benefits from good transport communications being located on the A29 which provides direct access to the A27 A338 Kingsclere A3 4 Woking 9 4 2 A339 A2 A23 A343 9 S A331 7 Leatherhead Caterham dual carriageway which runs across the south coast from Brighton in the east to Portsmouth in the west. The A27 also A3 S Basingstoke 5 8 6 6 M3 Aldershot 23 A3 Dorking Oxted provides access to the A23 and A24 trunk roads which lead to the M23 and M25 motorways. Bognor Regis has a direct rail A339 Whitchurch A25 Reigate Redhill Andover 7 Guildford Farnham A31 A2 A2 2 8 4 service to London Victoria (1 hour 50 mins). A2 Godalming A305 87 East 7 A303 Alton GATWICK 9 9 Grinstead 2 A 10 A264 A343 A34 Crawley 3 N A30 A3 M3 New

64 D Alresford A2 A31 11 M23

A 2 A3 Haslemere 9 A3

O Horsham Liphook

R Winchester A272 A2

81 10 A275 The Property A2 A264 Y Haywards 11 83 Billingshurst E Heath D N OA A D A272 R C P Romsey A272 L O S U B&Q I 12 A Z E A23 H R H B R R 9 13 A273 Eastleigh Midhurst A2 IS B H Pulborough H G 14 L R A S E S 4 86 A275 Y O N 9 4 R Sainsburys 2 3 4 5 A2 Hurstpierpoint V 2 A2 O R AD E A 2 O 7 1 A3 1 SOUTH DOWNS A A2 A334 83 D SOUTHAMPTON 8 A3(M) NATIONAL PARK A27 Lewes 3 Lyndhurst M27 9 Havant A2 Arundel A3 10 Tesco 11 7 A27 37 Hove Hythe 5 Chichester A2 Y Fareham 12 12 Brighton A 9 RD W Fawley Littlehampton SHOREHAM A259 CHA Brockenhurst OR 29 Gosport A2 A A35 59 Lymington CH Portsmouth ICH church EST New Milton Cowes Ryde BOGNOR REGIS ER R Selsey OAD Newport Freshwater C O E L U Sandown LY A3020 E 9 N R 2 E A305 A A V V Bognor Regis A 5 Shanklin E D N A War Memorial N U O O Ventnor E R Hospital D N R R O O G H FELPHAM WAY T W HO A T H H A

P W E V A E Y N E S E IV Y L R Y A Situation I R N D O D A W A E I D N R A D M D O O A R T A O C R O I H R A V D P The subject property is located on Durban Road within the established D R N L R O U O P Chichester E D F PE H R F A T G B University South Bersted Industrial Estate approximately a mile north of the town O O W N G H A N R O OR L M R O A centre. It is a well established industrial estate that was developed in the 6 A 6 D H

1 P 2 L 1970s and 1980s. The town benefits from major national and regional B E

F Bognor Regis Butlins Family employers including Respironics, John Wiley & Sons and Parker SSD. A Football Club Entertainment Resort Bognor Regis Rail new Rolls Royce motor car factory of 330,000 sq ft has been constructed at the foot of the A29.

PRINT SAVE Description Site

The property comprises eight separate lightweight industrial units built in the late 1970s incorporating ancillary We calculate the area of the site to be approximately 1.28 hectares (3.16 acres) office accommodation.

The units are of steel portal frame constructed with the main warehouses having pitched truss roofs with a mixture of profile metal/corrugated asbestos cladding incorporating 10% translucent roof lights.

PRINT SAVE Tenancies

The property is fully let to six tenants on six leases in accordance with the following Tenancy Schedule. The total income is currently £402,066 per annum reflecting a low overall rent of £5.71 psf. This currently provides for an average weighted unexpired lease term of 2.43 years to lease expiries (1.12 years to lease breaks). Tenure

Held on a long leasehold interest for a term of 999 years from 14 August 2002 at a peppercorn.

Tenancy Schedule

Floor Area Expiry Rent Passing Unit Tenant Start Rent Reviews Comments sq m sq ft (break) £ pa £ psf Apollo Inks and Coatings 14 740 7,969 2-Mar-05 01-Mar-20 £39,850 £5.00 International Ltd Tenant has option to extend a further 6 months. Limited 15/16 World of Books Ltd 1,508 16,232 9-Nov-17 8-Nov-18 £97,392 £6.00 repairing liability. Schedule of ingoing condition. Eaton Power Solutions (Rolling Break Rolling 12 month break clause. Outside the L&T Act 13 & 13A 2,128 22,901 1-Oct-12 £139,135 £6.07 Ltd Clause) 1954. £27,489 16A Regis Gymnastics CIC 365 3,927 16-Feb-14 15-Feb-22 £7.00 Outside the L&T Act 1954. (agreed at 2/18 RR) Guarantor: Regal Beloit Corporation PLC. Rolling Regal Manufacturing Rent reviews in 2020, 31-Oct-24 break clause requires 6 months’ notice and £85,000 12 1,618 17,414 1-Jan-14 £85,850 £4.93 Limited 2023 linked to RPI (30-Nov-18) penalty. Schedule of ingoing condition. Tenant’s option to renew lease. Outside the L&T Act 1954 Mutual break option on 6 months’ notice. 16B Butlins Skyline Ltd 176 1,900 20-Feb-17 31-Jan-20 £12,350 £6.50 Rent deposit. Outside the L&T Act 1954 TOTAL 6,535 70,342 £402,066

PRINT SAVE Investment Market

The industrial investment market has enjoyed strong demand in recent months with investors favouring well located South East industrial estates that offer a solid income stream with good tenant retention rates such as the subject property.

Below are some recent transactions in this sector providing evidence of current pricing levels:-

WAULT to Number Size expiries Rent £pa Capital Date Property of Price NIY (Sq Ft) (WAULT (£psf) Value (psf) Tenants to break) Mar-18 Loverock Road, 36,425 7 4.7 yrs £192,171 £2,540,000 7.11% £70 Reading (3.4 yrs) (£5.28)

Jan-18 Molly Millar’s Bridge, 21,868 3 4.6 yrs £162,850 £2,450,000 6.25% £112 Wokingham (3.1 yrs) (£7.45) Dec-18 Centurion Court, 24,163 9 2.5 yrs £165,734 £2,450,000 6.36% £101 Milton Keynes (2.5 yrs) (£6.89) Jul-17 Downlands Industrial Estate, 211,004 3 7.9 yrs £1,469,485 £24,350,000 5.65% £115 Worthing (6.5 yrs) (£6.96) Jul-17 Apex Park, 31,266 3 7.7 yrs £143,810 £2,025,000 6.68% £65 Hailsham (4.0 yrs) (£4.60) Apr-16 The Loddon Centre, 113,062 9 6.3 yrs £780,795 £11,880,000 6.16% £105 Basingstoke (3.5 yrs) (£6.91) Mar-17 Cherrycourt Way Industrial Estate, 119,708 15 2.5 yrs £548,382 £8,600,000 5.58% £72 Leighton Buzzard (2.5 yrs) (£4.81) Feb-17 Riga Wharf, 33,657 5 2 yrs £177,235 £2,310,000 7.25% £67 Gloucester (2 yrs) (£5.27) Nov-16 Cutbush Park, 27,237 4 4.2 yrs £210,140 3,200,000 6.17% £117 Reading (4.2 yrs) (£7.71)

VAT PRINT SAVE The property has been elected for VAT purposes and therefore VAT will be applicable to be sale. It is intended to treat the sale and purchase as a Transfer of a Going Concern (TOGC). EPC Proposal We are instructed to seek offers in excess of £5,030,000 (Five Million and Thirty Thousand Pounds) EPCs are available to view on the microsite. for the long leasehold interest subject to contract and exclusive of VAT. A purchase at this level would Further Information / Documentation reflect a net initial yield of 7.50%, net of acquisition costs of 6.59%. This investment can also be combined with a further industrial estate in Newhaven, details are For further details please contact the joint agents. Alternatively, there is information to view on the available from the joint agents. microsite at http://property.shw.co.uk/Castlegrove-Business-Park

Jonathan O’Conor Nick Bradbeer T: 020 7344 6937 T: 01273 876220 M: 07913 239 895 M: 07850 605 770 [email protected] [email protected]

Chris Bampton Charles Bramly T: 020 7344 6616 T: 01273 876219 M: 07825 603 211 M: 07803 742 153 [email protected] [email protected]

COLLIERS INTERNATIONAL PROPERTY ADVISORS UK LLP SHW 50 George Street, One Jubilee Street, London, W1V 7GA Brighton, East Sussex T: 020 7935 4499 BN1 1GE www.colliers.com/uk Tel: 01273 876200

March 2018

MISREPRESENTATION ACT DISCLAIMER Colliers International and SHW gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International and SHW has any authority to make any representation or warranty whatsoever in relation to this property. Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no. 4195561. Registered office: 50 George Street, London W1V 7GA. Designed and produced by Creativeworld. Tel 01282 858200. April 2018.

Castlegrove Business Park, Durban Road, South Bersted Industrial Estate, Bognor Regis, West Sussex PO22 9QT