High yielding industrial investment FOR SALE Livingston OAKBANK West Lothian INDUSTRIAL EH53 0JS ESTATE • 15 year lease to Elliott Group Ltd subject to tenant break option at year 10 at passing rent of £288,000 per annum • 5A1 Dun & Bradstreet rating • 5 yearly rent reviews linked to RPI • Total current passing rent of £297,000 per annum • Substantial site area of approximately 11.28 acres (4.57 ha) • Offers over £3.11M reflecting a net initial yield of c. 9% HIGH YIELDING INDUSTRIAL INVESTMENT WITH GUARANTEED RENTAL GROWTH OAKBANK HIGH YIELDING INDUSTRIAL INVESTMENT INDUSTRIAL WITH GUARANTEED RENTAL GROWTH ESTATE LOCATION DESCRIPTION The former new town of Livingston is strategically located on the M8 The subjects comprise a new build industrial unit corridor approximately 16 miles to the west of Edinburgh and 30 miles and substantial secure open storage site completed east of Glasgow. Livingston has grown to become Lothian’s second largest in August 2011 together with adjacent office building community after Edinburgh, with a population of approximately 59,511 located at the entrance to the site and known as people (2001 census). Projections for the recent census illustrate a significant Paragon House. expected increase in West Lothian’s population. The open storage site forms Elliott Group’s principal The town is a major centre of economic activity attracting electronics and Scottish depot and benefits from perimeter high technology based industries together with engineering, healthcare and fencing, security lighting, CCTV, secure car parking, computer software related businesses. 8 hardcore storage areas, concrete surfaced yard and roadways and newly erected industrial unit Oakbank is situated to the south-east of Livingston town centre. This has (workshop/spray paint building). become an established industrial location with ease of access to the A71 which links with Edinburgh and also providing ease of access to the A899 Paragon House provides office space and site which forms the main distributor road through Livingston and in turn reception area for the Elliott Group Ltd. Paragon connects to the M8 motorway at Junction 3. House is part occupied by Ground Developments Ltd under a separate 12 month rolling lease arrangement. More specifically the site lies on the southern side of the A71 a short distance east of the established Oakbank Industrial Estate. Surrounding occupiers include Farrons, Carillion Energy Services, Intersell Biomedical Ltd, Sunguard Availability Services Ltd, Everwarm Ltd and Encap Drug Delivery. ACCOMMODATION Secure Site This element of the property extends to an area of approximately 11.28 acres (4.57 ha) and contains a newly erected industrial unit, measured in accordance with the RICS Code of Measuring Practice (6th Edition), and estimated to be approximately 1,372.74 sqm (14,776 sqft). Paragon House Ryden have conducted a full measured inspection in accordance with the RICS Code of Measuring Practice (6th Edition). We estimate the areas to be as follows: OCCUPIER BASIS SQ M SQ FT Elliott Group Ltd NIA 168.07 1,809 Ground Equipment Hire NIA 138.48 1,491 TOTAL NIA 306.55 3,300 TENURE Outright ownership (Scottish equivalent of English freehold). 150.1m 71 in A Dra L Twr L Twr in Dra L Twr T r a v C Stonemasonry Works L Twr L Twr Mast L Twr 161.2m L Twr SL L Twr L Twr 0m 25m 50m 75m Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449. Plotted Scale - 1:1849 Broxburn M9 Uphall A89 M8 Dechmont OAKBANK A89 Uphall Station Edinburgh New Houstoun Bonnington INDUSTRIAL Business Park M8 ESTATE East Calder LIVINGSTON A71 LIVINGSTON WEST LOTHIAN Kirknewton EH53 0JS Glasgow Balerno A705 Seafield A70 Mid Calder Bellsquarry A71 Polbeth West Calder TENANCY The secure site, together with office space within Paragon House, is Established Industrial Location held on a 15 year lease to Elliott Group Ltd expiring 3 August 2026. There is a tenant only break option in year 10. Elliott Group Ltd retain a full repairing and insuring obligation over the secure site PROPOSAL and an internal repairing obligation over the office accommodation. We are instructed to seek offers in excess of £3.11M exclusive of The initial passing rent under the Elliott Group Ltd lease is VAT for the benefit of our client’s outright ownership interest. £288,000 pa and subject to 5 yearly rent reviews to the greater A purchase at this level would provide a net initial yield of circa of open market rental value or the percentage increase in the All 9.00% after deduction of purchaser’s costs of 5.8%. Items Retail Price Index. VAT The remaining office accommodation within Paragon House is held We understand the subjects are elected for VAT and accordingly on a 12 month rolling lease arrangement by Ground Developments VAT will be charged on the purchase price. It is anticipated the sale Ltd. The rent attributed to this element of the property amounts could be treated by way of a Transfer of a Going Concern (TOGC). to £9,000 per annum. The total current passing rent of the subjects is therefore VIEWING AND FURTHER INFORMATION £297,000 per annum. For further information or to arrange a viewing please contact the sole selling agents, Ryden LLP. COVENANT Elliott Group Ltd are the UK operating company of the Algeco Contact: Nick Armstrong Scotsman Group, a leading global business services company Email: [email protected] focused on modular space and secure storage solutions. The Contact: David Fraser Algeco Scotsman Group operate in over 26 countries throughout Email: [email protected] Europe, Middle East, China and North America. The company has also recently announced the acquisition of Eurobras Group, the leading provider of modular buildings in Brazil. Elliott Group Ltd have a Dun & Bradstreet rating of 5A1 representing minimum risk of business failure for their latest accounts filed on 31 December 2010. The company reported a tangible net worth of £150,145,000 and turnover of £135,329,000. Further information can be found at www.elliottuk.com. Ryden is a limited liability partnership registered in Scotland. Messrs Ryden for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants 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; (iii) no person in the employment of Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property. May 2012..