HIGHLY REVERSIONARY INVESTMENT OPPORTUNITY UNITS 1&2 9-29 RIXON ROAD, NN8 4BA INVESTMENT SUMMARY

Highly reversionary industrial investment.

Established industrial and commercial location in Wellingborough, one of the UK’s primary logistic locations.

Excellent road links with the A45 dual carriageway, linking the M1 to the south and the A14 to the north.

The property is situated adjacent to Stanton Cross, Wellingborough’s principal urban extension and regeneration project.

16,260 sq m (175,031 sq ft) of industrial / distribution accommodation situated on a site extending to 9.94 acres (4.02 hectares).

Income secured to Bushboard Limited on two co terminus leases (inside the 1954 Act) with an attractive WAULT of 10.73 years (8.79 to break).

A low passing rent of £479,457 per annum (£2.73 per sq ft) with an ERV of £670,000 per annum (£3.83 per sq ft).

Next rent review for Unit 1 in October 2020 and, for Unit 2, March 2021.

Established tenant who has been in occupation for over 40 years.

Long term redevelopment potential, subject to the necessary planning consents.

Offers in excess of £7,250,000 subject to contract and exclusive of VAT. This reflects anet initial yield of 6.2% and a reversionary yield of 8.66% (assuming purchaser’s costs of 6.66%) and a low capital value of £41.42 per sq ft. LOCATION SITUATION

Wellingborough is a major industrial, Wellingborough rail station provides direct The property is situated approximately 1 mile to the north east of Wellingborough town centre logistics and distribution centre located services to London St Pancras International, in an established Road Industrial Estate. The property offers a prominent and extensive equidistant between London and Birmingham, with a fastest journey time of approximately site with over 400m frontage to Rixon Road (A510). The A510/A509 provides access to the A45 approximately 13 miles north east of 55 minutes. Several rail freight terminals are via the town’s northern ring road. The property is situated close to Stanton Cross where the first and 40 miles east of Coventry. located nearby, including Corby and Daventry phase of infrastructure is complete providing a spine road link from the A5128 a short distance International Rail Freight Terminal (DIRFT). from the site to the railway station. The next phase (estimated completion 2021) will connect There is direct access to the A45 at the south this road with the A45 junction to the south of the town.

A509 of the town, a dual carriageway link to the M1 Wellingborough sits within the ‘Golden . RD H at Junction 15, (12 miles to west) and the A14 Triangle’. Its excellent connections to the G SIDEGA U (12 miles to north east). The A14 provides a regional and national road network connecting Y UO TE LN WA O THEN . NOR GB dual carriageway link between the A1M (J14) the Midlands to the markets of the South East, IN L A45 L TO and the M1/M6 junction. the North and good labour supply, make it R WE IXON

attractive to occupiers and investors alike. RD A5 . 19 11 3

R

LEICESTER O U

Peterborough N 21 D A444 RD. H

M42 N O O U 17 ED

N S

A6 FI E

8 W A 8 M69 M1 Y A1(M) M5 . 7 T S BIRMINGHAM 2 ON DRIVER WAY M6 14 N 19 A14 AN COVENTRY C TO A45 WELLINGBOROUGH WELLINGBOROUGH 4a M42 3a 16 M45 17 A45 15 NORTHAMPTON STANTON CROSS M40 A5 15a A423 15 A429 A428 A6 Stanton Cross is a major urban extension for Wellingborough being a £1 billion project A361 M1 promoted by Bovis Homes with St. Modwen as commercial partner. It comprises 800 acres to the east of the town and the main railway line. It is set to deliver 3,650 homes, and over 1.5 Banbury 11 A43 Milton 14 million sq ft of industrial office, retail and leisure space creating 3,000 new jobs. Keynes 13 A361 A422 The first phase at Stanton Cross was successfully launched in September 2018. Major 10 A5 infrastructure works and initial housing developments have been completed. The recently A4260 11 Luton constructed railway bridge connects Stanton Cross to the town via the railway station which is A44 9 10 currently being redeveloped. When the next infrastructure phase is complete in 2021 there will A40 A41 9 be a through route from the property and Finedon Road to the A45.

A40 Oxford Stanton Cross’ industrial/distribution space will be focussed on the northern end of the 8a 21 development area adjacent to the Finedon Road Industrial estate. The proposed Trade Park 20 will front the A5128 a short distance from the subject property with the 309,000 sq ft Industrial LONDON Park only a little further to the Northeast. A420 M40 M25

Rugby Leicester

A5199 A5123 A43 Kingsthorpe Spinney Hill Wellingborough A508 A428 Abington A45

A5095 A45 A45 Northampton Bedford Daventry M1 J16 A428 A45 A45 A508 Brackmills

A43 Blaise Pascal House Hardingstone 15 a A509 A45 A43 M1 15 Newport A508 Pagnell London Oxford 14 A510 NORTHERN WAY

UK MAIL CENTRAL AUTO SUPPLIES MERCEDES-BENZ

HOLMES GRAHAM ASTRASEAL

TRAVIS PERKINS A510 RIXON ROAD 9-29 RIXON ROAD

ECOLOGIS

BAM

WELLINGBOROUGH RAIL STATION

JEWSON FED EX HOWDENS

OS SMITH PACKAGING

EFCO BONHAM LILLEY TIMBER DESCRIPTION ACCOMMODATION

The property comprises 2 detached industrial / warehouse units, originally constructed in the late The two units provide the following gross internal floor areas: 1960’s, and extends to approximately (16,260 m²) 175,031 sq ft of steel frame construction under pitched roofs, many of which have recently been recovered by the tenant. The elevations are part Description GIA (m²) GIA (sq ft) brick /part clad. There have been extensions and additions over time. To the front of the main Unit 1 13,257 142,706 building (Unit 1) there is a reception area providing access to offices over ground and two upper floors. The office accommodation has been fitted out to provide a showroom area at ground floor Unit 2 3,003 32,325 with a mix of open plan and cellular offices on the upper floors. Total 16,260 175,031 The original warehouse at Unit 1 has been extended along the eastern flank and is now utilized for a mixture of manufacturing, storage and distribution purposes. Canopied loading is provided to The site extends to 4.02 hectares (9.94 acres) providing a site cover of 40%. the rear and west elevations. There is a surfaced road to the rear of the unit, providing a one way system around the building.

Unit 2 comprises a storage warehouse to the rear and ancillary 2 storey office accommodation to the front elevation. The office element has recently been refurbished by the tenant and is used for training centre and conference facilities. The offices at both units have been clad externally to reflect the tenant’s corporate brand. UNIT 2 There is a secure 150 space car park to the north of the site, extending to approximately 1 acre. UNIT 1

CAR PARKING N TENANCY

The property is let in its entirety to Bushboard Limited on two occupational leases producing a combined passing rent of £479,475 per annum (£2.73 per sq ft). The leases are on tenant full repairing terms subject to schedules of condition. Bushboard Holdings Limited is the guarantor of both leases.

Unit 1 is let for a term of 25 years from 19 October 2000 expiring on the 18 October 2025 and a reversionary lease expiring 18 October 2030. This reversionary lease is to remain within the security of tenure and compensation provisions of the Landlord & Tenant Act 1954, part II (as amended). The passing rent is £382,500 per annum (£2.68 per sq ft), representing approximately 80% of the income.

Unit 2 is let for a term expiring 18 October 2030 with a tenant only break option on 25 March 2021. This lease also remains within the security of tenure and compensation provisions of the Landlord & Tenant Act 1954. The passing rent is £96,975 per annum (£3.00 per sq ft), representing approximately 20% of the income. Unit 2 is intrinsically linked to the business and is in full use by the tenant.

Rent Reversionary Tenant Unit Sq ft Rent (pa) (psf) Start Break Expiry Expiry Bushboard Ltd 1 142,706 £382,500 £2.68 19-Oct-00 - 18-Oct-25 18-Oct-30

Bushboard Ltd 2 32,325 £96,975 £3.00 25-Mar-16 25-Mar-21 18-Oct-30 -

Total 175,031 £479,475

COVENANT INFORMATION

Bushboard is one of the UK’s largest independent manufacturers of kitchen and bathroom work- surfaces, panelling and associated accessories. The company has a manufacturing history dating from the 1930’s with lengthy experience in the production of premium quality work surfaces and currently employs approximately 90 members of staff at the property. Bushboard has invested heavily in research and development to continually launch new and innovative worktops and work surfaces.

In 2016 Bushboard was acquired by USA-based Wilsonart and is now a wholly owned subsidiary of a $1.2billion turnover group, operating in over 100 countries, manufacturing in 16 locations across the world, and employs more than 4,500 worldwide.

Bushboard Limited (company no. 03943217) has a Graydon rating of AAA with only a 0.85% risk of business failure.

Date Dec 18 Dec 17 Oct 16 Sales Turnover £25,728,000 £27,702,000 £25,350,000

Pre Tax Profit/(Loss) £3,025,000 £338,000 £1,947,000

Net Assets £14,378,000 £12,042,000 £7,378,000 INDUSTRIAL & INVESTMENT MARKET

Throughout the ‘Golden Triangle’ the market for industrial and logistics property remains buoyant and shows distinct signs of further improvement given the political stability resulting from the last general election. Stock levels and speculative development both remain limited in certain sectors.

Average wage levels in the town continue to lag behind those in competing centres such as Milton Keynes to the south and Coventry to the east making the area an attractive proposition for companies seeking to relocate.

Recent lettings in the area include: Unit Address Date Size (Sq ft) Rent (psf) Tenant

Stone Circle Road, Northampton Nov 19 228,517 £5.50 KAB Seating

Meteor 90, Northampton Oct 19 88,433 £6.00 Yusen

Panattoni Park, Northampton Jun 19 93,000 £6.50 Eddie Stobart

Kettering Business Park May 19 56,000 £6.50 Salvation Army

Ravens Way, Northampton May 19 22,400 £6.00 DX Group

7 Everett Close, Wellingborough Nov 18 12,018 £6.00 ANO

1 Scotia Close, Northampton Oct 18 19,208 £6.22 Energy Store

4 Wendel Point, Wellingborough May 18 54,192 £6.46 Oasis

4 Kingsthorne Park, Apr 18 34,942 £5.25 Eclipse

There is evidence that the level of capital available for investment in the UK industrial and logistics property sector remains high and following the election the market is expected to see increased activity. Investor interest continues to be underpinned by a constrained supply of stock and increased occupational demand. A shortage of land and the pressure of increased costs on viability is likely to continue to limit supply in the foreseeable future. The potential for strong investor return to the sector is therefore clear. ADDITIONAL INFORMATION

Further information as listed below is available from the agents upon request: - Title Register and Plan - Bushboard’s accounts - Photographs - Schedules of Condition - Leases - Graydon Report - Energy Performance Certificates

TENURE

Freehold.

VAT

We understand the property has been elected for VAT, and therefore VAT will be chargeable. We would envisage the sale to be by way of a Transfer of Going Concern (TOGC).

PROPOSAL CONTACTS

Offers in excess of £7,250,000 For further information, or to arrange a viewing, please contact: subject to contract and exclusive of VAT. This reflects anet initial yield James Rangeley of 6.2% and a reversionary yield of T: 020 3011 4144 [email protected] 8.66% (assuming purchaser’s costs of 6.66%) and a low capital value of Tom Miles David Smith £41.42 per sq ft. T: 020 3011 4344 T: 01604 620 616 [email protected] [email protected]

Important Notice: the agents for itself and for the vendors or lessors of this property for whom it acts, gives notice that the sole purpose of these particulars is to provide outline information on this property to prospective purchasers or tenants (as applicable), who are solely responsible for making their own investigations and seeking independent advice, including the costs of doing so, and forming their own view as to the condition of the property, its fitness for their requirements and the accuracy and completeness of the statements herein. These particulars do not constitute any recommendation or offer to enter into any contract regarding this property. The agents donot guarantee the accuracy or completeness of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations. Rents quoted in these particulars may be subject to VAT in addition. Neither Egerton nor the vendors or lessors of this property accepts any liability or responsibility (whether in negligence or otherwise) for any loss arising from using or relying on these particulars. Any reference herein to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise expressly stated) as to its state or condition or that it is capable of fulfilling its intended function. Neither the agents, its employees or agents has any authority to make, and does not make, any representation or warranty, or to enter into any contract, in relation to the property. All maps and plans produced in this brochure are for indicative purposes only.

JSS: January 2020 © Produced by Barbican Studio: +44(0) 20 7634 9571