FREEHOLD SECURELY LET WAREHOUSE INVESTMENT WARBURTONS LTD, 16-18 BRUNEL WAY, THETFORD, NORFOLK IP24 1HP

2

Investment SummaryWarehouse investment located on one of

Thetford’s main industrial estates close to

the A11.

The site provides 1.114 hectares (2.75

acres) and has a low site cover of 21%.

The property comprises 2,542.80 sq m

(27,371 sq ft)

Recently over sheeted roof

Let entirely to Warburtons Ltd

(5A1 covenant with a turnover of over

£½ billion) until November 2027 - 9 years

unexpired

Total income of £130,000 per annum

(£4.25 per sq ft for the warehouse, based on

£25,000 per acre for the additional yard area

assuming 40% site cover)

Offers in excess of £1,530,000 for the

freehold interest, subject to contract and

exclusive of VAT. This reflects a net initial

yield of 8%, based on standard purchaser's

costs of 6.11%

Low capital value rate of £55.89 per sq ft

BRUNEL WAY THETFORD

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BRUNEL WAY THETFORD

Location Thetford is the third largest town in Norfolk, with a

population of about 24,340 (2011 Census), showing

growth of circa 14.5% since the 2001 Census. The town is

situated close to the Norfolk/Suffolk border and lies about

29 miles to the south west of Norwich, 35 miles north east

of Cambridge and 80 miles north east of London.

Thetford has comprehensive transport links. It is adjacent

to the A11 dual carriageway, which was fully dualled in

December 2014. It links Norwich with Newmarket,

Cambridge (via the A14) and London (via the M11).

The town has a train station on the Ely-Norwich railway line

and is served by regular trains to Norwich, Ely, Cambridge,

Peterborough, Manchester and Liverpool with connecting

trains to London Liverpool Street. Stansted Airport is

located approximately 55 miles to the south west.

The economic boost to the area as a result of the dualling

of the A11 is anticipated to exceed £600 million and

Thetford is one of the towns that has seen significant

benefit from the completion of the road. Thetford was

awarded Growth Point Status in 2006 and is anticipated to

grow by 66% to 2021, having been earmarked for 6,000

StanstedStanstedStansted

IpswichIpswichIpswich

NorwichNorwichNorwich

LutonLutonLuton

PeterboroughPeterboroughPeterborough

ElyElyEly

NewmarketNewmarketNewmarket

FelixstoweFelixstoweFelixstowe

HarlowHarlowHarlow

A14

A14

A12

A11

A11

A11A17

A142

HuntingdonHuntingdonHuntingdon

A12HarwichHarwichHarwich

LONDONHeathrow

M25

A1

A1

A10

A1MM11

M25

M1

CambridgeCambridgeCambridge

A1065

Bury St. EdmundsBury St. EdmundsBury St. Edmunds

BrandonBrandonBrandon

LakenheathLakenheathLakenheath

A134

A134

A1101

THETFORDTHETFORDTHETFORD

A148

A1101

King’s LynnKing’s LynnKing’s Lynn

MildenhallMildenhallMildenhall

ThetfordThetfordThetford

Fison WayFison WayIndustrial EstateIndustrial Estate

Fison WayIndustrial Estate

Brunel WayBrunel WayIndustrial Industrial

EstateEstate

Brunel WayIndustrial

Estate

A11

A1066

A11

MUNDFORD ROAD

BRUNEL WAY

FISON WAY

new homes and 5,000 new jobs. In order to

facilitate this growth, large scale inward

investment was planned, both private and grant

funded, with the regeneration of the station,

bus station and riverside leisure area. These

latter two projects have been implemented;

the new bus station opened in February 2015

and the riverside redevelopment is complete

and provide a new The Light cinema,

Travelodge hotel and five restaurants/bars.

Thetford will also benefit from the formation in

2016 of the Cambridge Norwich Tech Corridor.

The partnership was formed to help promote

business and innovation along the A11 link

road between the two cities, with the aim of

stimulating £500m of new investment. The

corridor is home to 23,838 digital tech jobs

and is aimed at building upon the sector

specialisms of software, data management,

financial services, agri-tech, biotech and

health/life sciences.

Situation Brunel Way is an established industrial estate on the

north side of Thetford and situated on the west side of

Mundford Road and west of Fison Way Industrial Estate.

Both estates are within a short distance of, and are

signposted from, the A11, which gives access to the

national motorway network.

The property fronts the north side of Brunel Way about

200 metres to the west of the intersection with

Mundford Road. The estate enjoys a high

occupancy rate and nearby occupiers include

Century Logistics, opposite the property,

Team KnowHow, Star Transport and Wiser

Recycling. Also on Mundford Road are a

selection of car showrooms with

representation from KIA, Ford, Nissan and

Volvo as well as TNT and Brewers.

Not to scale, for indicative purposes only.

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BRUNEL WAY THETFORD

Description The property comprises a warehouse with two storey

offices to the front. The unit is of steel framed

construction with cavity wall infill under pitched roofs which

have recently been over sheeted. The front offices are of

cavity wall construction under a flat roof.

The tenant occupies the unit for the distribution of bread

which is baked off site and delivered daily from this unit. In

order to suit its requirements, the tenant has refurbished

part of the warehouse and the floor has been raised to

enable the creation of nine dock level loading doors along

the rear elevation and recent roof works undertaken by the

tenant (for which they received a contribution from the

landlord) include new Plasticol roof sheets, roof lights and

guttering. The rear wall to the building has also been

moved in to create a loading canopy.

Part of unit 18 has not been fitted out and is used for

general storage. In this section the eaves height is 3.3

metres (10’10”). Where the floor has been raised by the

tenant the eaves height reduces to 2.11 metres (6’11”).

The offices are functional and have a mix of suspended

and plastered ceilings, a mix of Category 2 and fluorescent

strip lighting, some perimeter data trunking and are heated

by gas fired central heating with radiators.

View of offices

Front elevation Rear elevation

View of warehouse

35

Site The site has car parking for

around seven cars to the front.

The rear yard has been divided

to provide extensive car, van and

lorry parking. The main yard is

concrete covered and fenced

and there is also a lower area with

ramped access to the north west

corner. The owner of Unit 20 has

a right of way as per the hatched

area of the plan.

The total site area extends to

approximately 1.114 hectares

(2.75 acres) and has a low site

cover of just 21%.

Tank

Tanks

Tanks

El S

ub

Sta

5

22 to 24

7

10

11

32

3

12 to 14

18

20

16

16a

Track

Legend

Site The site has car parking for

around seven cars to the front.

The rear yard has been divided

to provide extensive car, van and

lorry parking. The main yard is

concrete covered and fenced

and there is also a lower area with

ramped access to the north west

corner. The owner of Unit 20 has

a right of way as per the hatched

area of the plan.

The total site area extends to

approximately 1.114 hectares

(2.75 acres) and has a low site

cover of just 21%.

Accommodation The property provides the following approximate

gross internal area:

Tenure The property is held freehold as shown edged red

on the plan. The subject property has a right of way

over part of the front of the adjoining Unit 20, as

shown green on the OS plan and the adjoining Unit

20 has a right of way over the subject property, as

per the hatched area on the plan.

Description Sq m Sq ft

Ground Warehouse 2,062.85 22,205

Ground Office 257.51 2,772

First Office 222.44 2,394

Total 2,542.80 27,371

BRUNEL WAY THETFORD

Right of Way in favour of adjoining Unit 20

Right of Way in favour of subject property

Yard Yard Rear car/truck park

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Tenant Covenant The Warburtons family opened their first grocery shop in 1870 and the company is still a private

family-owned business, actively managed by the fifth generation of Warburtons. It is the largest

family-owned bakery business in the country and employs around 4,500 people across 12

bakeries and 14 depots across the UK.

Now recognised as Britain's favourite bakery brand, Warburtons has doubled in size in the last

decade alone to become a £500 million plus -a-year business. This means that more than a

quarter of all bakery products consumed in the UK is produced by Warburtons. During the last

decade, they have reportedly invested over £400m into the business, to build new and upgrade

their bakeries.

They deliver to 18,500 retail customers each week, a number which has grown by more than

1,000 in the last year alone. It produces more than 2 million products a day. Its products

account for a quarter of the total wrapped bakery market, which is worth more than £2.8 billion

a year.

The subject property operates 352 days a year and services 870 outlets throughout East

England, covering south to Malden, west to Bedford and Spalding and to Norfolk’s north and

east coasts.

D&B rating: 5A1 Year to 30/09/2017 Year to 4/09/2016 Year to 26/09/2015

Sales Turnover £524,697,000 £526,253,000 £551,467,000

Pre-Tax Profit £20,670,000 £34,632,000 £38,715,000

Tangible Net Worth £407,570,000 £365,909,000 £367,765,000

Net Current Assets £176,188,000 £166,787,000 £131,833,000

Tenancy The property is let on a single full repairing and

insuring lease to Warburtons Ltd for a term of

5 years from 19th May 2016, expiring 18th May

2021 at a rent of £130,000 per annum, which is

subject to a photographic schedule of

condition. The lease is excluded from security

of tenure provisions of the Landlord and

Tenant Act 1954. The rent reflects £4.25 per

sq ft for the warehouse, based on £25,000 per

acre for the additional yard area, assuming

40% site cover.

The tenant has completed a reversionary lease

with no reviews, on expiry of the existing lease,

which expires on 19 November 2027. This

included a contribution from the landlord for

roof works undertaken to the property.

Under a Licence to Alter dated July 2013, the

tenant undertook extensive internal and

external works described above. The license

includes tenant reinstatement provisions.

There are two schedules of condition, which

will be qualified by a new schedule of condition

to reflect recent roofing works.

BRUNEL WAY THETFORD

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BRUNEL WAY THETFORD

Thetford Industrial Market Thetford has an industrial heritage and grew rapidly from the

20th century boosted by the relocation of businesses from bomb -

damaged London in the 1950s. Manufacturing remains the most

important sector to the local economy, accounting for 23.4% of jobs.

Established industrial estates are typically located close to the A11

and include Brunel Way Industrial Estate, Fison Way Industrial Estate,

Roman Way Industrial Estate and Telford Way Industrial Estate.

To the north of Brunel Way estate, Pigeon Investment Management

own Thetford Enterprise Park, which extends to about 17.81 hectares

(44 acres), has potential to provide 52,940 sq m (570,000 sq ft) of

B1and B2 space and also a hotel. The site could provide around 1,500

jobs once fully developed. Adjacent to the site is Kingsfleet, where

construction is due to commence in the next month. Pigeon obtained

planning permission in 2016 for up to 5,000 homes, three primary

Date Address Area Sq ft Price £ NIY % Tenant Unexpired Term Purchaser ........ (£ per sq ft) Certain (Years)

Sept 2018 16-18 Brunel Way, Thetford 27,371 £1,530,000 8.00% Warburtons Ltd (5A1) 9.0 Quoting Terms

....... (£55)

July 2018 Gipping Lane, Stowmarket 192,003 £9,075,000 8.00% Bosch Lawn & Garden Ltd 5.8 (TBO) Threadneedle

...... (£47)

July 2018 Olympus Close, Ipswich 21,600 £2,250,000 5.88% Multi- let (15) AWULT 2.36 Local Authority

.............. (£104) (TBO)

May 2018 A&B, Homerfield Road, Haverhill 29,052 £2,200,000 7.00% Radford Group & 10 & 5 Private

...... (£75) Cambridge Nanotherm

Feb 2018 20-25 Kingsway, Norwich 14,271 £1,500,000 5.82% Multi- let (6) AWULT 2.93 Local Authority

...... (£105) (TBO)

schools, open space, significant employment areas,

community and healthcare facilities. The development will

lie alongside the A11 dual carriageway, midway between

Cambridge and Norwich. Phase one has been sold by the

Crown Estate and Kilverstone Estate to housebuilder Hopkins

Homes, and new homes will be on sale in Spring 2019.

As a result of the continuing investment in the region,

including the dualling of the A11, the promotion of the

Cambridge Norwich Tech Corridor partnership and other

activity, there is healthy demand for industrial/ warehouse

units. Rents typically range from £4 per sq ft to £4.75 per sq ft

for good quality second hand space. At Burrell Way Trade Park,

a refurbished warehouse providing 35,967 sq ft is on the

market at a quoting rent of £180,000 pa (£5 per sq ft).

Eastern Region Investment Market Recent investment transactions in the Eastern Region include:

Should you have any queries or

wish to make a site inspection,

please contact:

Darryl Stevenson

DD: 020 7297 6277

darryl.stevenson@bidwells.co.uk

Saul Western

DD: 020 7297 6275

saul.western@bidwells.co.uk

Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

October 2018

Further Information

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BRUNEL WAY THETFORD

EPC Rating The EPC rating for the property is C73.

A copy is available upon request.

VAT We understand that the property is elected

for VAT. We anticipate that the transaction

will be structured as a TOGC.

Proposal Our client is seeking offers in excess

of £1,530,000 for its freehold interest,

subject to contract and exclusive of VAT.

A purchase at this level would reflect a

net initial yield of 8% based on standard

purchaser’s costs of 6.11%. This reflects a

low capital value rate of £55.89 per sq ft.

Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

bidwells.co.uk

IMPORTANT NOTICE

Bidwells LLP act for themselves and for the vendors of this property, whose

agents they are, give notice that:

Nothing contained in these particulars or their contents or actions, both

verbally or in writing, by Bidwells LLP form any offer or contract, liability or

implied obligation to any applicants, viewing parties or prospective

purchasers of the property to the fullest extent permitted by law and should

not be relied upon as statements or representative of fact. No person in the

employment of Bidwells LLP or any joint agents has authority to make or give

any representation or warranty whatever in relation to this property. Any

areas of measurements or distances are approximate. The text, photographs

and plans are for guidance only, may not be to scale and are not necessarily

comprehensive. No assumptions should be made that the property has all

necessary planning, building regulation or other consents. Bidwells LLP has

not carried out a survey, nor tested the services, appliances or facilities.

Purchasers must satisfy themselves by inspection or otherwise. All rentals

and prices are quoted exclusive of VAT unless otherwise stated. Prospective

purchasers may be asked to produce identification of the intended Purchaser

and other documentation in order to support any conditional offers

submitted to the vendors. Bidwells LLP accepts no liability of any type arising

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