FAIRCLOUGH HOUSE CHORLEY, LANCASHIRE, PR7 4EX HIGH YIELDING SINGLE LET OFFICE INVESTMENT OPPORTUNITY FAIRCLOUGH HOUSE CHORLEY, LANCASHIRE, PR7 4EX EXECUTIVE SUMMARY • Located in a highly accessible location immediately south of Chorley some 4 miles from Junction 6 of the M61 • Chorley is an established town in Lancashire, approximately 20 miles north west of Manchester and 14 miles south of Preston • Purpose built 36,604 sq ft (3,401 sq m) office building with an additional 5,426 sq ft (504 sq m) provided within a separate industrial unit • Securely let to Debt Free Direct Ltd for a further 4.5 years • Passing rent of £700,356 per annum equating to £16.66 per sq ft overall • Situated on a large site of 3.13 acres (1.27 ha); providing an excellent site coverage of only 13.5% • Freehold • Offer sought in excess of £4,750,000 (Four Million Seven Hundred and Fifty Thousand Pounds) subject to contract, reflecting a net initial yield of 13.83%, after allowing for purchasers costs of 6.58% L A o 673 w e B r O Rivi CHORLEY L T C O H N n U R g R O t C A o M61 n H D S R T e se ADLINGTON r LOCATION v o i D R r K R A6 A 7 3 P BOL TO Chorley, a market town in Lancashire, located in North West N R OA D England, is situated approximately 22 miles (35 km) north west of Manchester, 14 miles (22 km) south of Preston, 10 miles (16 A 6 km) south west of Blackburn and 9 miles (14 km) north of Wigan. The town benefits from excellent transport communications being B 5 4 strategically situated between two of the North West’s main B 0 L 8 A C C H K O motorways, being the M6 (J27) and M61 (J6). The M62 to the R R O L D E 8 Y M B 3 south (M6 junction) and M65 (M61 junction) link the property to A 2 N N Y 5 E C P W H A B E S S Manchester, Wigan, Liverpool, Warrington and the wider region. TE S R R D D R R D N O I T Fairclough House is prominently situated 2 miles (3 km) south A T S of Chorley and close to the centre of Adlington on the A6. There B are excellent transport links, via the local and regional road L A C K network while Adlington train station is within easy walking R O D distance providing regular services between Manchester and B Y P M61 Preston, Chorley Railway Station offers an indirect link to A S S R London, via Manchester or Preston, with a fastest journey time of D approximately 2 hours and 40 minutes. 6 Chorley benefits from a highly skilled workforce; 2.25 million PSTN 30 people within 30 minutes. Major occupiers in the area include; BAE LDS HLL 5 CHL 29 Systems, Pontins, FedEx, CSC, Multipart, Wolseley, NFU Mutual, LPL 29 4 A56 1 3 Chorley Building Society the Headquarters of Northern Trust, and MNCHST Redrow. LEYLAND 28 M65 Chorley benefits from a very high level, above average proportion Buckshaw Village of residents with a degree (38%) and a below UK average figure of residents without qualifications (ONS figures). This is reflected LNDN CHORLEY 8 in the occupational structure of the work place employment and resultant income. M6 M61 1 A666 M66 Chorley has an economically active population with an estimated A673 77.6% of itsM62 population in employment. This is significantly above 21 BURY A58 the North West average (71.6%) and Great Britain (73.9%) (Nomis). 27 2 A6 Horwich BOLTON 20 3 6 A58 19 5 M61 Radcliffe M58 4 4 19 OLDHAM 5 26 3 17 20 1 16 Walkden 15 21 14 Wardley 25 A627 A580 M6 12 SALFORD 24 1 2 3 A6010 23 A580 11 Eccles 23 10 M67 ST HELENS M62 MANCHESTER 3 DESCRIPTION The property comprises purpose built office accommodation on ground and two upper levels located over three wings (the south wing added at a later date). The property was constructed around 1991 and is of steel frame construction with solid floors, suspended ceilings and Cat II lighting. The external walls are of brick / block cavity construction with glazing in the form of continuous bands. The building benefits from two separate main entrances enabling the property to be multi let therefore the floors are easily sub-divisible by floor or by wing or cellular format. The building has undergone a considerable amount of refurbishment externally and the final wing of the building was refurbished in 2006. The internal specification of the building includes the following: • Full air conditioning • Category II lighting • Perimeter trunking • Passenger lift serving all floors A separate industrial unit on the site is constructed with a steel frame and is clad externally with profile metal sheeting and is fitted out as a number of small cellular offices along with storage accommodation. There is also a small gatehouse at the entrance to the site. The properties comprise a total NIA of 42,189 sq ft (3,919 sq m). The main office property comprises 36,604 sq ft (3,401 sq m) and the stand alone industrial building provides a GIA of 5,426 sq ft (504 sq m) and the gatehouse 159 sq ft (15 sq m). The property benefits from 168 car parking spaces, in addition to this there is an unsurfaced overflow car park which provides car parking for a further 57 vehicles providing an excellent ratio of 1:187 sq ft (1:17 sq m). The site extends to 3.13 aces (1.27 ha) providing a low site coverage of 13.5%. THE BUILDING BENEFITS FROM TWO SEPARATE MAIN ENTRANCES ENABLING THE PROPERTY TO BE MULTI LET ESCENT A 6 ACCOMMODATION W 100.6m ES T H O UG The property has been measured in accordance with the RICS Code of Measuring A 6 HT Practice (6th Edition) and comprises the following net internal floor areas: O N R O Description Sq ft Sq m A D Office – Ground 12,850 1,193.78 3 2 Office – 1st 12,502 1,161.52 5 9 Office – 2nd 11,252 1,045.35 Office - Total 36,604 3,401 Storage (GIA) 5,426 504.11 Total 42,030 3,905 2 4 1 7 The property benefits from a gatehouse (159 sq ft) Fairclough 3 96.9m 7 House 3 5 3 7 a 33 2 5 T ST Depot CHURCH ST GABBO PH 6 4 RE E T 96.9m 2 3 1 7 1 3 8 2 ON ERT AND ET STRE 0 2 42,030 SQ FT 3,905 SQ M For indicative purposes only. TENURE ASSET MANAGEMENT Freehold. Upon expiry of the service/storage agreement or prior subject to separate negotiation, the industrial building could be redeveloped to provide additional office accommodation or a small terrace of industrial/trade TENANCY counter uses (subject to planning). The property is let in its entirety to Debt Free Direct Ltd until 17th August 2021. The guarantor is the The southern wing of Fairclough House is not currently AIM listed Fairpoint Group plc. The total current rent is £700,356 per annum. occupied by the tenant. In the medium term this offers the opportunity to re-gear the current lease on the north and The main office property is let on two leases (north & east wings; and south wings). east wings and undertake a refurbishment programme on In April 2016 Debt Free Direct agreed to take the separate adjacent building for use as storage on a the southern wing, re-letting the space and driving value storage/service agreement until 17th August 2021, at a rent of £25,000 per annum which equates to from the property. The building currently benefits from two £4.61 per sq ft. This has allowed them to use the office property more effectively. entrances which will enable the property to be multi let going forward. The property therefore produces a rent of £700,356 per annum which equates to £16.66 per sq ft. COVENANT Since 1997 the principal activity of Debt Free Direct has been the provision of financial assessments and solutions to individuals experiencing personal debt problems. The company have become one of the UK’s largest personal debt advisers . A summary of the last three years of accounts for Debt Free Direct Limited (Company Number: 04160038) is set out below: Fiscal Non Fiscal Non Fiscal Non Consolidated Conso lidated Consolidated GBP GBP GBP 31 Dec 2015 31 Dec 2014 31 Dec 2013 Sales Turnover 8,786,600 12,064,774 15,199,529 Profit/ (Loss) Before Taxes 2,757,994 2,600,899 3,876,878 Tangible Net Worth 16,650,867 13,892,054 12,066,512 Net Current Assets 15,474,609 12,968,778 10,887,202 (Liabilities) The company has a financial strength assessed by Dun and Bradstreet of 4A1. Debt Free Direct is owned entirely by Fairpoint Group plc who are the guarantor to the lease. Fairpoint Group plc changed its name Debt Free Direct Group plc in January 2008. Fairpoint Group plc Plc is an AIM listed company, the company has a current market cap of £6.89 million. A summary of the last three years of accounts for Fairpoint Group plc (Company Number: 04425339) is set out below: Fiscal Non Fiscal Non Fiscal Non Consolidated Conso lidated Consolidated GBP GBP GBP 31 Dec 2015 31 Dec 2014 31 Dec 2013 Sales Turnover 8,786,600 38,324,000 28,357,000 Profit/ (Loss) Before Taxes (5,650,000) 3,449,000 5,874,000 Tangible Net Worth 4,942,000 11,981,000 24,499,000 Net Current Assets 18,119,000 15,444,000 23,677,000 (Liabilities) The company has a financial strength assessed by Dun and Bradstreet of 2A1.