Tokenspire Business Park

MULTI LET INDUSTRIAL INVESTMENT

TOKENSPIRE BUSINESS PARK ENTER HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

INVESTMENT SUMMARY

• Prominent Multi-let Industrial Investment opportunity comprising Beverley’s dominant industrial estate • Located on the A1174 (Hull Road) less than 1 mile from Beverley town centre • The property extends to 313,246 sq ft on a site of 24.43 acres, reflecting a low site coverage of 29% • Freehold • The estate provides two substantial development sites as well as significant frontage land offering future redevelopment opportunities • Currently let to 33 tenants with a passing rent of £825,800 per annum, with an WAULT of 1.24 years to break and 2.13 years to expiry • Strong history of tenant retention. • Opportunity to benefit from significant reversion of £1,198,356 p.a. through the letting of vacant space and rent reviews / lease renewals with existing tenants • Offers are sought in excess of £10,750,000 (Ten Million Seven Hundred and Fifty Thousand Pounds) • A purchase at this level reflects the following: • Net Initial Yield of 7.19% • Reversionary Yield of 10.43% • Equivalent Yield of 10.04% • Capital Value of £34 per sq ft, assuming £325,000 per acre for the development/overage/ compound land

TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

BEVERLEY TOWN CENTRE

B1230

MINSTER WAY A164/M62

TOKENSPIRE BUSINESS PARK

DEVELOPMENT SITE 1 C. 2.15 ACRES A1174 HULL ROAD

DEVELOPMENT SITE 2 C. 0.66 ACRES

A65 A614 A166 A166 Harrogate A1237

LOCATION A59 47 A59 A682 YORK A614 A165 46 A1M A1237 A1079 Pocklington A64 TOKENSPIRE A65 A61 A56 45 A682 BUSINESS PARK Beverley is a historic and prosperous market town located approximately 8 miles A64 45 A6068 A629 Market A1035 14 A660 Weighton north of Kingston upon Hull, 32 miles South East of York, 56 miles East of Leeds 44 A19 13 A1079 A59 12 A650 A658 A6120 Beverley A165 A671 A6120 43 and 93 miles North East of Manchester. A614 Minster A1174 11 BRADFORD LEEDS A164 Way 47 10 A647 46 M65 9 7 Selby A666 3 2 A63 A1079 3 4 45 7 44 6 M621 5 A63 38 A629 2 1 43 KINGSTON UPON HULL A646 1 27 6 A63 BLACKBURN A63 M606 28 7 37 Beverley is the County Town of the East Riding of Yorkshire and has a resident A646 26 29 A63 5 A53 42 29 A56 M62 30 31 population in the region of 30,800 persons. A58 25 41 Wakefield 32 33 A644 34 35 24 M62 A628 40 23 A15 1 A58 22 Huddersfield A1 M66 39 M62 A180 The town benefits from excellent road communications with the A164 and A63 ROCHDALE A629 21 BURY A58 M1 2 M161 20 5 M180 SCUNTHORPE 5 A58 3 19 38 2 linking to Junction 38 of the M62 approximately 14 miles to the west. The A1174 Barnsley M61 A1(M) 3 4 19 OLDHAM 38 4 4 M180 3 17 20 37 GRIMSBY 16 provides access to the Port of Hull which is one of the UK’s busiest deep sea 21 22 A629 14 Wardley DONCASTER M18 A627 37 36

12 SALFORD A628 A46 1 2 3 foreign trading ports. The Port handles in excess of 1.5 million cubic metres of 3 A6010 23 A15 35 11 Eccles 36 A159 10 M67 2 A16 24 3 3 A46 M62 MANCHESTER 35 Timber every year. Rotherham A18 A6 34 A631 Bawtry 6 A34 25 1 34 26 A56 5 27 A1103 33 Hemswell Cliff 4 3 2 3 2 1 A631 A631 A630 32 A631 4 M60 SHEFFIELD M56 5 Beverley’s main train station is situated an 8 minute drive (1.5 miles) from 8 6 A6 31 Peak District A57 A15 A46 A16 Manchester A6102 Airport National Park Tokenspire Business Park with services across the UK. By train, Hull is only a 15 A34 A523 19 A61 A1 M6 30 A623 A537 A6 A158 minute journey with Leeds and Manchester Piccadilly accessible in 1.5 hours and A556 A619 A537 B 29 1 2 A537 Chesterfield 4 MACCLESFIELD 8 Lincoln A158 2.5 hours respectively. A A6 A619 A614 1 D A6020 6 A A60 4 A34 O R A533 E A G 29a A1 A158 103 D WAY 18 A1 A54 RI 5 NGE 035 B A513 RA L 35 G L 10 A523 A53 A U A61 5 H W Congleton Mansfield Humberside Airport is the closest airport to Beverley, located 23 miles to the 103 A6 O A C O A16 ONS D TITU HA 17 A50 E TION HILL LL A34 N A534 south of Tokenspire Business Park (30 minute drive) with international and A A1 W A515 28

A A15 L M6 Y A527

A A60

L E 1 N A1 D 1 SITUATION 7 A53 domestic flights. Robin Hood Airport is 45 miles to the south west and Leeds N 6 4 4 A6097 E OO M 16 S A523 K A500 W

O 27 BEVERLEY R W L A500 A520 G E I S NO N Nuneaton O C E

Bradford is situated 69 miles to the West. D R 74 M A46 A52 O 1 5 F A51 A34 O

3 A38 T A1 O A6 A52

0 Stoke R R 1 Tokenspire26 Business Park is Beverley’s O L A AD on-TrentA THE RACECOURSE N E BEVERLEY 4 74 17 A11 A1 dominant business park and enjoys a

BEVERLEY A1174 STATION

prominent position fronting the A1174 (Hull

A WEEL 1

0 D 7 A 9 O R Road) less than 1 mile from Beverley town AD O N R O T BALD ING W K E L N A TOKENSPIRE W centre. Access to the estate has improved BEVERLEY & EAST OAD RIDING GOLF CLUB TE R BUSINESS PARK GA ELD 30 K B12 greatly with the recent completion of the L ON AY G L W R A E N T E Minster Way (Beverly Southern Bypass) A S N 1 I 0 4 7 M 9 6 1 4 6 A 1 which connects the A164 to the business A

WOODMANSEY

park providing speedy links to the M62 A AY 11 W 74

E R H AT TE UL ADG INS L O A164 M R BR O motorway. 30 A B12 D

A 10 79

A LO 1 NG 1 L 74 O L N AN G E THEARNE LA NE

A TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

DESCRIPTION

Tokenspire Business Park comprises a multi-let business park constructed in phases over a number of years with the earlier units dating from the 1960’s/1970’s and with the later units being constructed as late as the 2000’s.

The estate is fully self-contained and secured and consists of 49 units set out in a combination of terraces and detached industrial units, several storage compounds and 2 interlinked office blocks to the front of the site. There are 2 potential development sites and further development could be constructed on elements of the car park, particularly to the front of the site.

Tokenspire Business Park stands on a regular shaped site extending to approximately 24.43 acres (9.89 hectares) which represents a very low site coverage of 29%. Tokenspire Business Park provides a range of industrial and warehouse units ranging in size from starter units of 391 sq ft up to stand alone warehouse units of up to 47,874 sq ft.

Due to the phased nature of construction of the estate, the specification of individual units varies dependant upon the age of unit, with eaves heights ranging from approximately 3.3m to up to 8.3m.

At the front of the estate there are two purpose-built office blocks which are connected by a link block. These units are provided with suspended ceilings, integral fluorescent lighting, perimeter trunking and ceiling mounted comfort cooling.

A number of the industrial units are being used for retail or quasi-retail purposes with other units having been converted to use as offices and one unit being used as a dance school.

There are 2 open storage areas which have been fully fenced and secured.

To the front of the estate is a small residential bungalow which is let and occupied by site’s full-time security employee. The presence of this employee on site full time is a major benefit to the security of the estate which is gated at night and has resulted in there being virtually no issues in relation to the security of the estate.

ACCOMMODATION

The property has been measured in accordance with the RICS Code 21 & 21A of Measuring Practice 5th Edition 9A 14 Development site 1 8B 8A C. 2.15 acres and extends to 313,246 sq ft (29,101 5A 6A

sq m) as detailed in the tenancy 1C 1A 1B schedule. The property has a total 15 site area of approximately 24.43 1D 4A 2 3A acres (9.89 hectares) creating a 2A 23 Potential 12 Development 3 very low site coverage of 29%. Site ESS 22 11 4 36 24 4B S 35 D 4.6m Reflex House 10 TENURE 4C 25 9 D 5 Freehold. Development site 1

C. 0.66 acres 6 C 8 Unit 30 (shown edged blue on 34 7 the estate plan) has been sold to Compound 33 39 Compound 33A Unit 38/39 Additional Parking Fabrics UK Ltd and is excluded 38 Bungalow 32 from the title. Rights of access 37 have been granted to unit 30 and 31 in return unit 30 pays a fair portion towards the cost of estate services.

H THE PROPERTY HAS U L L R O A A TOTAL SITE AREA D i OF APPROXIMATELY Lake 24.43 ACRES (9.89 Dunwood House HECTARES)

1 TOKENSPIRE BUSINESS PARK7

HULL ROAD, BEVERLEY HU17 OTB Orinoco Barn Rose The HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

TENANCIES

The property is let to 33 tenants and provides a total rental income of £825,800 per annum. A number of the units are subject to schedules of conditions and service charge caps as detailed on the tenancy schedule and within service charge section to follow. Rents for the industrial units on the estate are relatively low ranging from £1.05 per sq ft to £6.65 per sq ft. The estate has historically enjoyed high occupancy levels and excellent tenant retention with a number of Individual tenancy details are shown on the tenancy schedule. tenants having occupied for a considerable period of time.

Unit Name Tenant Name Floor Lease Term Start Date Next Review Passing ERV per Comments Area Years (Expiry) (Break) Rent annum (Rent psf) (ERV psf) Unit 1 Alexander Ellis Ltd 11,227 2 30/09/2016 £20,350 £36,487 (29/09/2018) (£1.81) (£3.25) Unit 2 Alexander Ellis Ltd 5,264 2 30/09/2016 £8,913 £17,108 (29/09/2018) (£1.69) (£3.25) Units 2a The East Yorkshire Beer Company Ltd 1,891 3 12/01/2017 £7,500 £7,564 (11/01/2020) (£3.97) (£4.00) Unit 3 Alexander Ellis Ltd 7,961 2 30/09/2016 £8,337 £24,281 (29/09/2018) (£1.05) (£3.05) Unit 3a Crossfit Barbaric Ltd 2,177 2 02/02/2018 02/03/2019 £6,582 £7,619 Rent increases to £7,500 on 02/03/2019. (26/02/2020) (£2.99) (£3.50) Unit 4 JDM Joinery Ltd 3,932 5 01/08/2018 (01/08/2021) £12,000 £12,000 Outside of the ‘54 act. 2 month deposit held. (31/07/2023) (£3.05) (£3.05) Unit 4a John Robert Marlow and 11,774 5 27/02/2015 27/02/2018 £27,000 £35,322 2018 rent review outstanding. Brian Paul Gell (26/02/2020) (£2.29) (£3.00) Unit 4b AJ Shutters 3,506 5 07/09/2018 (07/09/2021) £12,000 £12,000 Subject to schedule of condition. Rent paid monthly in advance. (06/09/2023) (£3.42) (£3.42) Outside of the ‘54 act. 2 month rent deposit held. Unit 4c Vacant 3,817 £12,000 (£3.15) Units 5,9 & 10 Kevin Parsons t/a TK Stairs 31,440 6 01/01/2016 £57,000 £86,460 Fixed service charge of £13,200 p.a (19/02/2022) (£1.81) (£2.75) Units 5a,6a & 8b Roses Of Beverley Ltd 5,029 6 25/12/2013 25/12/2016 £15,000 £17,601 2016 rent review outstanding. (24/12/2019) (£2.98) (£3.50) TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

Unit 6 Vacant 9,620 £33,670 Lease in place to Breton Machinery at £25k p.a. but in (£3.50) administration. Lease not yet disclaimed. Units 7 & 7c Aflex Cables Ltd 2,188 6 01/11/2007 £9,300 £9,846 Tenant holding over. (31/10/2013) (£4.25) (£4.50) Unit 7a Club Vits Ltd 3,557 3 01/08/2013 £14,000 £16,006 Tenant holding over. (31/07/2016) (£3.94) (£4.50) Unit 7b L.M.B. Ltd 1,721 6 27/07/2007 £7,100 £7,744 Tenant holding over. (26/07/2013) (£4.13) (£4.50) Unit 7e Oracle Taps Ltd 1,872 3 21/05/2018 £5,000 £5,000 Subject to schedule of condition. Rent paid monthly in advance. (20/05/2021) (£2.67) (£2.67) Outside of ‘54 act. Unit Part 7d Site Office 593 £1,779 Currently used as site office. (£3.00) Unit 7f The Arts Garage 2 Ltd 3,101 5 15/10/2014 15/10/2017 £7,500 £10,853 2017 rent review outstanding. (14/10/2019) (£2.42) (£3.50) Unit 8 QDOS Entertainment (Pantomimes) 9,804 3 04/01/2015 £30,630 £30,588 Ltd (28/09/2018) (£3.12) (£3.12) Unit 8a Mark Gavin Thatcher & Julie Hunt 801 3 06/11/2017 £4,000 £4,000 (05/11/2020) (£4.99) (£4.99) Unit 9a JRC Express Ltd 4,197 5 01/07/2016 01/07/2019 £9,500 £12,591 (30/06/2021) (01/07/2019) (£2.26) (£3.00) Unit 11 Logs for Sale Ltd 12,325 5 15/12/2016 £25,000 £36,975 (14/12/2021) (£2.02) (£3.00) Unit 12 Lloyds Removals Ltd 12,140 5 24/06/2016 £27,000 £36,420 (23/06/2021) (£2.22) (£3.00) Unit 14 QDOS Entertainment (Pantomimes) 8,334 9 13/02/2017 13/02/2022 £25,000 £39,587 Ltd (12/02/2026) (13/02/2020) (£3.00) (£4.75) Unit 15 QDOS Entertainment (Pantomimes) 7,903 2 21/06/2018 £18,000 £18,000 Outside of the ‘54 act. Subject to schedule of condition. Unit re- Ltd (30/06/2020) (£2.27) (£2.27) quires refurbishment. Unit 21 Beverley Light Haulage Ltd 3,009 5 26/09/2013 £16,500 £16,500 (24/09/2019) (£5.48) (£5.48) Unit 22 AJMC Trading LLP 5,412 3 14/06/2017 £17,000 £27,060 (13/06/2020) (£3.14) (£5.00) Unit 23 N A Heath Contracting Ltd 2,305 3 15/05/2014 £12,000 £12,000 Tenant holding over. (14/05/2017) (£5.21) (£5.21) TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

Unit 24 Vacant 3,917 2 £19,585 (£5.00) Unit 25 East Riding of Yorkshire Council 5,212 6 28/02/2012 £23,125 £26,060 Tenant holding over. (27/02/2018) (£4.44) (£5.00) Unit 30 Fabrics (UK) Ltd 90 01/01/2010 (31/12/2099) Unit 31 & 32 TAPCO Europe Ltd 22,974 12 15/02/2011 £90,344 £103,383 (14/02/2023) (£3.93) (£4.50) Unit 33 Compound Cottage Industrys Ltd 9,805 3 16/02/2017 £6,000 £6,470 (15/02/2020) (£0.74) (£0.79) Unit 33a Com- J Murphy & Sons Ltd 8,096 6 20/07/2009 £4,000 £5,014 Tenant holding over. pound (30/06/2016) (£0.64) (£0.80) Unit 34 Active Day Care Hull Ltd 3,851 10 12/07/2017 12/07/2022 £22,000 £22,000 (11/07/2027) (12/07/2022) (£5.71) (£5.71) Unit 35 Sargent Electrical Services Ltd 23,917 5 20/05/2016 (31/07/2019) £60,000 £107,626 Service charge cap £8,271.03, subject to annual RPI increases. (19/05/2021) (£2.51) (£4.50) Unit 36 QDOS Entertainment (Pantomimes) 47,874 17 16/10/2001 £108,124 £155,591 Ltd (16/10/2018) (£2.29) (£3.25) Unit 37 Tokenspire Construction Ltd 391 6 01/10/2012 £2,600 £3,128 Service charge cap £141 (fixed). (30/09/2018) (£6.65) (£8.00) Unit 38 & 39 Sargent Electrical Services Ltd 23,787 9 01/08/2010 01/08/2016 £83,595 £107,042 Service charge cap £8,460.35, subject to annual RPI increases. Rent (31/07/2019) (£3.51) (£4.50) review outstanding. Unit 38 & 39 Car Sargent Electrical Services Ltd 0.43 £25,000 Tenant constructed additional car parking area (with Hardcore) at parking acres their cost. This arrangement needs to be formalised with the future landlord. The Bungalow Paul Lowery 753 6 01/10/2012 £1,200 £1,506 (30/09/2018) (£1.59) (£2.00) Cafe L. Beeley & V. Slattery 5 19/09/2010 £1,600 £1,600 Tenant holding over. (18/09/2015) Unit 21 - Yard Mark Legard 6 01/10/2012 £1,000 £1,600 (30/09/2018) Reflex House - Nite Direct Marketing Ltd 3,670 3 23/06/2014 £20,000 £25,690 Tenant holiding over. Block C + D (27/02/2018) (£5.45) (£7.00) 313,246 £825,800 £1,198,356 TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

ERV

Tokenspire Business Park is let off relatively modest rents ranging from £1.05 psf and £6.65 psf. We estimate that the estate has an ERV of £1,198,356 p.a. with individual ERV’s for industrial units ranging from £2.27 psf up to £8.00 psf. A full breakdown of ERV, on a unit by unit basis is shown on the tenancy schedule.

TENANTS COVENANTS

The estate is generally let to local and regional covenants with a spattering of national covenants.

The table below sets out covenant information for all those tenants who are responsible for in excess of £25,000 per annum income.

Company Tangible net D&B % of Tenant Year end Turnover Pre-tax profit No worth rating income Kevin Parsons 04764861 2016 - - £409,247 A2 7.11% t/a TK Stairs

Qdos Entertainment 03017503 2017 £72,964,142 £1,984,063 £8,273,862 3A1 20.44% Ltd

Logs for Sale 09450633 2017 - - £23,945 F2 3.12% Ltd Sargent Electrical 03316790 2016 £15,372,225 £2,777,549 £8,801,998 3A1 14.18% Services Ltd TAPCO Europe 03926923 2016 £12,486,255 £19,324 (£2,958,073) N2 10.80% Ltd Lloyds 03382554 2017 - - £4,913 H3 3.24% Removals Ltd

OCCUPATIONAL MARKET

Due to Beverley’s relatively fragmented ownership, Tokenspire Business Park represents the only major business park in single ownership.

The majority of competing industrial accommodation is located off Swinemoor Lane which is also the home for a number of car showrooms, retail and roadside units.

Vacancy rates within Beverley are low and rents for new build units off Swinemoor Lane are now seeking rents in excess of £6.67 per sq ft.

SERVICE CHARGE

The budgeted service charge for the current financial year is £201,280 which breaks back to a charge of approximately 0.61 per sq ft.

We estimate the shortfall of service charge recovery is as follows:

1. Units which are subject to a service charge cap at £15,672 per annum

2. Vacant units £4,827 per annum

Total shortfall is therefore currently £20,499.

Electricity on the estate is provided by the landlord and recharged to the tenants by way of sub-metering.

Water on the estate is provided from the estate’s own bore hole. TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB HOME ACCOMMODATION INVESTMENT SUMMARY TENANCIES AERIAL ERV/TENANTS COVENANTS LOCATION OCCUPATIONAL MARKET/SERVICE CHARGE MULTI LET INDUSTRIAL INVESTMENT DESCRIPTION FURTHER INFORMATION

ASSET MANAGEMENT OPPORTUNITIES VAT

• Opportunity to develop sites either for open storage or for newly constructed buildings. We understand that the property has been elected for • Letting of vacant units. VAT which will therefore be chargeable on the sale. It PROPOSAL • Long term redevelopment of older buildings to front of the site to a higher value use. is envisaged that the transaction will be by way of a We are instructed to seek offers of£10,750,000 • Increase low rents through lease renewals and rent reviews. transfer of a going concern (TOGC). (Ten Million Seven Hundred and Fifty • Extend WAULT with agreement of new leases with tenants currently holding over. Thousand Pounds) subject to contract assuming • Surplus car parking to the front of the site gives opportunity for redevelopment with a purchaser cost of 6.78%. A purchase at this greater emphasis on trade use. DATA ROOM ACCESS level would reflect the following:

A dedicated data room has been created for Net Initial Yield 7.19% the purpose of this disposal which includes comprehensive information in relation to title, Reversionary Yield 10.43% occupational documents, standard enquiries and Equivalent Yield 10.04% EPC’s. Access to this information can be arranged on request.

FURTHER INFORMATION

For further information or to arrange an inspection please contact:

Mark Williams Oliver Rowe Kipp Harden DD: 0161 819 8220 DD: 0161 819 8212 DD: 0161 507 4714 M: 07891 810250 M: 07920 299049 M: 07384 253556 E: [email protected] E: [email protected] E: [email protected]

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agents and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agents nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. August 2018. RB&Co 0161 833 0555. www.richardbarber.co.uk TOKENSPIRE BUSINESS PARK HULL ROAD, BEVERLEY HU17 OTB