15 Year Single-Let Industrial Sale and Leaseback with RPI Linked Rent Reviews Reflex Labels, Smith Way, , Wakefield, West , WF5 9JZ avisonyoung.co.uk/15904 Reflex Labels, Smith Way, Ossett, Wakefield, , WF5 9JZ

Investment Summary

• Sale and leaseback opportunity in an established industrial location in West Yorkshire, within 1 mile (1.6 km) of J40 of the M1.

• A detached industrial building of 3,602 sq m (38,776 sq ft)

• Upon completion the property will be let to Reflex Labels Limited, with a parent company guarantee from The Reflex Group Limited, a well-established labelling product supplier with a group turnover close to £115 million per annum.

• The tenant has traded very strongly through the Covid-19 pandemic and supplies industries which have not been adversely affected by the pandemic or lockdown.

• The property will be let on a 15 year full repairing and insuring lease, subject to a tenant only break option after year 10.

• The commencing rent will be £164,798 per annum (equating to a low £4.25 per sq ft), with 5 yearly Rent Reviews in accordance with the Retail Price Index, subject to a cap of 4.00% and a collar of 2.00% per annum.

• Freehold.

• O ffers are sought in excess of £2,300,000 (Two Million Three Hundred Thousand Pounds) reflecting a Net Initial Yield of 6.67% (assuming purchaser’s costs of 7.34%) and a capital value of £59.32 per sq ft.

• At this purchase price and based upon the mid- point of the potential increase at rent review, the running yield will increase to 7.74% in 2026 and 8.97% in 2031. Reflex Labels, Smith Way, Ossett, Wakefield, West Yorkshire, WF5 9JZ

Location A38 The Metropolitan County of West Yorkshire has a population of c. 2.2 million people and covers an area of 783 sq miles (2,029 sq km). West Yorkshire M1 includes the major cities of , and Wakefield and has two of the BURTON A650 UK’s major motorways running through it, with the M1 running north to south UPON TRENT and M62 running east to west. Ossett is located centrally within West Yorkshire, approximately 3.5 miles (5.6 km) west of Wakefield City Centre. Leeds City centre is approximately 9.5 miles A444 (15.3 km) to the north. M1 A38 A650A50 M6 TOLL LEICESTER A638 A444 M42 M1

B6129SUTTON A5 A6 COLDFIELD HINCKLEY Stapleton Ln Kirkby Rd J40 OSSETT M1 A638 NUNEATON M6 A5 AshbyA638 Rd BARWELL Shilton Rd BIRMINGHAM M1 Reflex Labels Reflex Labels M1

B6129 M6A642 SOLIHULL COVENTRY Moat Way Church Ln A638 Mill St A47 A14 Hinckley Rd The Common RUGBY M42 Barwell Ln A636 Millner A423 Ashby Rd Way A47 J40 M40 OSSETT A435 A642 M1 A47 ROYAL M1 LEAMINGTON SPA Reflex Labels, Smith Way, Ossett, Wakefield, West Yorkshire, WF5 9JZ

Situation Communications The property is situated on Smith Way, which is the main Air commercial and industrial location in the town of Ossett. Road Train It benefits from convenient access to the A638, which The property lies 0.75 miles (1.2 km) Wakefield Westgate Railway Station Leeds Bradford Airport is provides access to the M1 via J40, 0.75 miles (1.2 km) to west of J40 of the M62., which is 4 miles (6.4 km) away from the approximately 19 miles (30.5 km) to the east of the property. The M1 connects with the M62, connects to the M62, approximately 4 property and is on the main line the north and provides regular approximately 4 miles (6.4 km) to the north. miles (6.4 km) to the north. Smith between Edinburgh and London domestic and international flights. The area around Smith Way is the main established Way connects to the A638, which gives (along with Leeds). industrial location in Ossett, which is popular with the direct access to Wakefield City Centre. bed and mattress industries, along with nearby . Local occupiers include Killgerm Group, Simpson Packaging, Sleep Kings, Assa Abloy and Hartwell Manufacturing. Reflex Labels, Smith Way, Ossett, Wakefield, West Yorkshire, WF5 9JZ

Description The property comprises a production building with integral two storey office block, an adjoining warehouse and a separate two storey office building. The main production area is of steel portal frame with brick cladding to the elevations and a pitched profile metal clad roof incorporating approximately 10% roof lights. The eaves height is 4.00m. Loading access is via two ground level doors to the rear elevation. The main building includes an integral two storey office building. To the rear of the main building is an additional warehouse of steel frame construction with part brick cladding and part profile metal cladding to the remainder of the elevations and roof. There are a further two ground level loading doors to the front elevation of the warehouse. The main building and warehouse are connected internally. Externally there is a car park providing 24 spaces to the front of the property. A wide gated access road to the side of the building leads to a tarmac yard to the rear of the property. The site has recently been comprehensively refurbished including redecorating and reconfiguring the integral office section, resealing the warehouse floor, new wiring, cabling and ducting in the main building, creation of the client showroom and a new access way between the main building and warehouse. To the front of the site is an additional two storey office building of brick construction. This building has not been refurbished and is not currently used but will be included within the lease to allow for future expansion. Area The property has been measured in accordance with the RICS Property Measurement, 2nd edition and provides the following areas:

Description Sq M Sq Ft

Main Building 2,713.4 29,207

Warehouse 559.1 6,018

2 storey office building 330.0 3,551

Total 3,602.4 38,776

Site Area The total site area is approximately 0.59 ha (1.47 acres). The site plan is provided for identification purposes only and we recommend interested parties should consult a Title Plan. Reflex Labels, Smith Way, Ossett, Wakefield, West Yorkshire, WF5 9JZ

Tenure Covenant information The property is held freehold under Title number WYK400119. Reflex Labels was established in 2002 and produces a range of label Tenancy information and packaging products to a broad range of highly recognised brands across a wide variety of customer sectors. The principal activity of the The property will be let upon completion to Reflex Labels Ltd (Company Number: 03708517) for a business is the manufacturing of self-adhesive labels and associated products / services to term of 15 years at a total rent of £164,798,000 per annum (£4.25 per sq ft). the UK food processing industry; however the company services many other sectors including healthcare, pharmaceuticals and hospitality. The lease will be subject to a tenant only break option on the 10th anniversary of the term, and 5 yearly RPI linked rent reviews with a collar and cap of 2% and 4% respectively. The lease will Reflex Labels Limited has the following financial highlights: be held FRI, with repairing obligations subject to a schedule of condition.

The lease will be guaranteed by The Reflex Group Limited. Year to Date Turnover Pre Tax Profit Shareholder’s Funds 29/02/2020 £62,267,000 £6,049,000 £17,366,000 28/02/2019 £59,322,000 £3,837,000 £14,944,000 28/02/2018 £55,828,000 £2,694,000 £14,478,000

The lease will be guaranteed by The Reflex Group Limited, who have the following financial highlights:

Year to Date Turnover Pre Tax Profit Shareholder’s Funds 29/02/2020 £114,171,000 £1,383,000 £25,177,000 28/02/2019 £105,269,000 £2,004,000 £23,734,000 28/02/2018 £86,112,000 £3,499,000 £21,395,000

The Reflex Group Limited has traded strongly through the Covid-19 pandemic and supplies its products to industries which have been largely unaffected, even benefitted, from the pandemic.

Half year management accounts are available upon request.

Market commentary The West Yorkshire industrial market is focussed around the main motorway network with the prime estates being located in the Wakefield district and in particular off J41 of the M1. A lack of supply in the area has led to upward pressure on both rental and freehold values in recent years.

The subject property is located within 1 miles (1.6 km) of J40. The Ossett submarket is popular with both regional and national occupiers and recent lettings on similar properties range between £4.00 per sq ft and £5.00 per sq ft. Reflex Labels, Smith Way, Ossett, Wakefield, West Yorkshire, WF5 9JZ For further information please contact: Energy Performance Certificates For further information or The property has an EPC rating of C64. A copy of the EPC is available upon request. to arrange a viewing please contact: VAT VAT will be payable upon completion of the transaction as the sale cannot be treated as a Transfer of a Going Concern. James Yates Director Proposal 07983 586654 [email protected] We are instructed to seek offers in excess of £2,300,000 (Two Million Three Hundred Thousand Pounds) reflecting an attractive Net Initial Yield of 6.67% and capital value of £59.32 per sq ft, Alex Darlington assuming purchaser’s costs of 7.34%. Associate 07904 630147 [email protected]

Property ref avisonyoung.co.uk/15904 January 2021

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