Download pdf - WHINBANK PARK INDUSTRIAL ESTATE - Allsop...INVESTMENT CONSIDERATIONS Whinbank Park Industrial Estate forms part of the Aycliffe Business Park, the second largest industrial estate

HIGHLY REVERSIONARY MULTI-LET INDUSTRIAL INVESTMENT WITH DEVELOPMENT POTENTIAL

WHINBANK PARK INDUSTRIAL ESTATEAYCLIFFE BUSINESS PARK, NEWTON AYCLIFFE, COUNTY DURHAM, DL5 6AY

Outline for indicative purposes only.

INVESTMENT CONSIDERATIONS

■ Whinbank Park Industrial Estate forms part of the Aycliffe Business Park, the second largest industrial estate in the North East region, situated adjacent to Jct 59 of the A1(M).

■ Aycliffe Business Park is a key component of the North East economy extending to almost 1,000 acres and is the home of 500 companies employing 10,000 people.

■ The estate benefits from 24/7 on-site security, a major attraction to local occupiers.

■ Freehold.

■ Total site area of 18.78 acres (7.60 hectares) with 7.63 acres (3.1 Hectares) of potential development land.

■ The estate comprises 90 units with a total floor area of 285,239 sq ft (26,499.6 sq m) with individual unit floor areas ranging from 145 - 57,487 sq ft.

■ The estate is let to a total of 47 individual tenants and is currently 98% occupied.

■ WAULT: 3.51 years to expiry (2.24 to breaks).

■ The total contracted rent is £780,515 p.a., equating to £2.40 psf on industrial accommodation and £7.32 psf on office accommodation.

■ The total Net Operating Income (NOI) is £702,752 p.a.

■ Industrial accommodation has achieved sustained rental growth of late with significant additional short term reversion.

■ The property offers a purchaser numerous asset management opportunities including:

• refurbishment and letting vacant units

• negotiating the removal of tenant break options

• relocating tenants within the extensive ownership

• extending existing lease terms

• development sites

INVESTMENT CONSIDERATIONS

■ We are instructed to seek offers in excess of £7,000,000 (Seven Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 9.40% and a low capital rate of £24.54 psf.

WHINBANK PARK INDUSTRIAL ESTATEAYCLIFFE BUSINESS PARK, NEWTON AYCLIFFE, COUNTY DURHAM, DL5 6AY HIGHLY REVERSIONARY MULTI-LET INDUSTRIAL INVESTMENT WITH DEVELOPMENT POTENTIAL

Tees Port

Port of Sunderland

Port of Tyne

Tees Valley

Port of Hartlepool

A66

A19

A66

A69

A19

A19A68

A1

A1

A689A177A688

A691

A690

A167

A694

A693

A174

A1(M) HARTLEPOOL

DARLINGTON

BISHOPAUCKLAND

NORTHALLERTON

BARNARDCASTLE

NEWCASTLEUPON TYNENEWCASTLEUPON TYNE

MIDDLESBROUGHMIDDLESBROUGH

SUNDERLANDSUNDERLAND

DURHAMDURHAMPETERLEE

NEWTON AYCLIFFENEWTON AYCLIFFE

COMMUNICATIONSNewton Aycliffe is situated adjacent to A1(M), the main north/south link road serving the region. The A1(M) provides a direct link to major centres including Newcastle upon Tyne (31 miles) and Edinburgh (136 miles) to the north and Leeds (63 miles) and London (250 miles) to the south.

Intercity rail services are available from Darlington station providing quick access to major cities on the East Coast Main Line. Newcastle upon Tyne and Leeds can be reached in 30 minutes and one hour respectively. There are 3 direct rail services to London Kings Cross each hour with a fastest journey time of 2 hours and 21 minutes.

Newton Aycliffe is well served by airports with Newcastle International Airport located 37.9 miles to the north and Durham Tees Valley Airport located only 11.1 miles to the south east. The town benefits from easy access to some of the UK’s busiest east coast ports including Teesport and the Port of Tyne.

ROAD LINKS

A1(M) 2.0 miles

M6 55.9 miles

M1 60.7 miles

M62 70.0 miles

PORTS

Teesport 21.6 miles

Port of Hartlepool 24.6 miles

Port of Sunderland 31.0 miles

Port of Tyne 32.7 miles

AIRPORTS

Tees Valley Airport 11.1 miles

Newcastle Airport 37.9 miles

Leeds/Bradford Airport 60.4 miles

Edinburgh Airport 162 miles

RAIL

Durham 15 min

Middlesbrough 26 min

Newcastle upon Tyne 30 min

London Kings Cross 141 min


J59

A1(M

)

To Newton AycliffeTown CentreNewton

AycliffeStation

ToDurham &

Spennymoor

Aycliffe Village

ToDarlington

HeighingtonStation

To A6072

COATHAM AVENUE

GURNEY WAY

LEASIDE

LEASIDE NORTH

HORNDALE AVENUE

HILTO

N RO

AD

ELDO

N RO

AD

FULBECK RO

AD

WA

LWO

RTH RO

AD

BURTREE ROA

D

WO

OD

HA

M RO

AD

DURH

AM

WA

Y NO

RTH

HO

WD

EN RO

AD

GRO

AT D

R

GROAT AVENUE

REDWORTH WAY

HORNDALE AVENUE

DURHAM WAYWHITWORTH AV

HURWORTH ROAD

WH

INBA

NK RO

AD

PRESTON

ROA

D

WH

ITWO

RTH D

R

BEAUMONT WAYREMBRANDT WAY

CUMBRIE WAY WELBURY WAY

CA

RLBURY ROA

D

AN

GELS C

L

PRESTON ROAD

WHINFIELD DRMEN

HA

M W

AY

HOLLIN WAY

HEIGHINGTON LANE

GRINDON WAY

LON

G T

ENS

WA

Y

HEIGHINGTON STREET

STATION ROAD

NORTHFIELD WAY

STC

UTHBERT’S W

AY

B6448

DURH

AM

WA

Y SOUTH

A1

67

B6444

B6444

MILLENNIUM WAY

STA

ND

REW

S W

AY

KETTON WAY

RIDGE WAY

SPRING RD

forrest park

AYCLIFFE BUSINESS PARK Aycliffe Business Park, extending some 400 hectares (980 acres), is home to over 500 companies employing over 10,000 people and is the largest employment location in County Durham. (Source: ABPC, 2017)

Major national occupiers include Gestamp Tallent, Hitachi Rail Europe, EBac, Tekmar, Husqvarna and Lidl. Engineering and manufacturing remain at the core of Aycliffe Business Park, however dozens more SMEs from the services and leisure sectors have come to the park in recent years. The result is a dynamic and a vibrant employment hub catering for a wide range of occupiers.

The recently constructed £82 million Hitachi Rail Europe plant in Aycliffe has significantly enhanced the location and now employs over 1,100 people. Key projects include the assembly of Class 800 trains for Great Western Railway and Class 385 trains for ScotRail; the company has also recently been shortlisted for the £2.75bn HS2 rolling stock contract which may contribute towards a significant anticipated increase in staff numbers and on-site investment.

Newton Aycliffe hosts a significant volume of off-shore contractors and manufacturers. Sub-sea and cable protection specialist Tekmar Energy Limited

have been awarded multimillion pound contracts to supply TekLink cable protection systems (CPS), cable hang-off clamps (HOC) and cable joint protection products for the Hornsea ONE Project. The scheme will become one of the world’s largest offshore windfarms once operational in 2020, comprising 174 Siemens 7MW turbines.

Car components manufacturer Gestamp Tallent employs over 1300 people at its Aycliffe plant. The company produce chassis structural and body components for the likes of Jaguar, Landrover, Volvo, Ford , BMW, Nissan and Honda, recorded a turnover of £517.6m in 2017.

Stiller Warehouse and Transporting are long established in Aycliffe. Their 22 acre Aycliffe site stores goods and parts for local businesses and national brands including Gestamp and 3M. The company is investing £2m in a new 50,000 sq. ft. distribution centre and creating up to 25 new jobs on their site. This follows a recent acquisition by the company of a 70,600 sq. ft. modern warehouse unit on Grindon Way in Aycliffe in March 2017 at a rent of £3.25 per sq. ft.

Husqvarna UK Limited recently produced its 1 millionth robotic lawnmower at their unit on the park.

Outline for indicative purposes only.


Durham County Council’s commitment to the Park is evident in the preparatory ground and infrastructure works being carried out at Forrest Park, which will be a 52 hectare addition to Aycliffe Business Park. The Local Enterprise Partnership has invested £13m to provide power as well as access into the scheme. It will target large scale manufacturing and distribution occupiers, including potential rail freight interchange. Business Durham report that the site could see the creation of an estimated 3,200 jobs and deliver a Gross Value Added (GVA) boost of £495 million over the next twenty years.

TENANCIESThe scheme is let in accordance with the Schedule of Accommodation and Tenancies.

In summary the estate provides:

Contracted Rent (£ p.a.) £780,515

Landlord Service Charge Liability £66,635

Landlord Rates Liability £10,776

Landlord Insurance Liability £352

Net Operating Income £702,752

SERVICE CHARGEThe service charge is apportioned on a weighted floor area basis.

The following table sets out the service charge expenditure apportions by use class;

Year End Expenditure 2018

Industrial £186,650

Office £86,668

Total £273,318

© Crown Copyright, ES 100004106. For identification purposes only.

WHITWORTH AVENUE

CarPark

REDWORTH WAY

WH

INBA

NK

ROA

D

COATHAM AVENUE

FULB

ECK

ROA

D

WILLOWTREE CARAVAN STORAGE

L

SECURITYOFFICE

3C

4C

25

26

27

31

32A

W HOWARD TRANSPORT

YARD 2: AYCLIFFE SELF STORAGE YARD 1:FULLBECK

32B 32C

BLOCK A

BLOCK B

WORKSHOPS

201816 1917 21

2322

2 - 4

10 11 12

9

8

7C 7B 7A

13 14 - 15 24A 24B24D

24C

1C

1 5

6

YARD 3:DAVECLARK SITE

The site area totals 18.78 acres (7.60 hectares), providing a low site coverage of 36%.

The Caravan Storage site totals 3.36 acres (1.40 hectares) and may lend well to future re-development, subject to vacant possession.

The industrial income is let at very modest levels with 65% of leases commencing in the previous 3 years. The Estate is therefore particularly well placed for future rental growth.

Additional lease documentation is available in the Allsop Marketing Data Room.

TENUREFreehold.

Industrial Office Car Parking Caravan Park

70%

ACCOMMODATION TYPE

■ INDUSTRIAL INCOME■ OFFICE INCOME■ EXTERNAL STORAGE INCOME

6%

24% 64%

10%

■ >7 YEARS■ 3-7 YEARS■ <3 YEARS

26%

UNEXPIRED TERM


INCOME ANALYSIS

■ LOW RISK■ AVERAGE RISK■ HIGH RISK

COVENANT STRENGTH

75%

12%

13%


Demise Tenancy Information Rent Management Landlord Liabilities

Comments

Unit Area (Sq M)

Area (Sq Ft)

Tenant Lease Start

Lease Expiry

Rent Review

Break Net Operating

Income (£ pa)

Contracted Rent

(£ pa)

Contracted Rent

(£ psf)

Service Charge (£ pa)

Rateable Value (£ pa)

Insurance(£ Pa)

Total Landlord Liabilities (£ pa)

INDUSTRIAL ACCOMMODATION

B1-B4, 2C, & L 5,340.7 57,487 Techwax Ltd 01/04/16 31/03/26 01/04/21 31/03/20 £135,000 £135,000 £2.35 £37,367 £64,800 £4,299 Open Market Rent Review subject to a cap of 12% of the rent payable prior to the Rent Review.

1C 60.5 651 Fox Gas 01/11/12 31/10/15 £1,653 £1,653 £2.54 £423 £2,700 £49

3C & 4C 99.7 1,073 Interiors4you NE Limited 01/10/16 30/09/21 01/10/19 £3,000 £3,000 £2.80 £697 £6,450 £80 Fixed Rent Increases on 01/10/2019 to £3,500 pa

B5 1,884.1 20,280 Parkin & Denwood ltd 11/08/17 10/08/20 £35,490 £35,490 £1.75 £13,182 £28,500 £1,517

B6 922.2 9,927 Filrite Limited 01/04/17 31/03/20 £27,000 £27,000 £2.72 £6,453 £15,000 £742

Units 7A-B & 8 2,359.7 25,400 Trinity Kitchens NE Ltd 08/01/18 07/01/28 £50,802 £50,802 £2.00 £16,510 £36,500 £1,899

Unit 7C 464.5 5,000 Revolution Power Ltd 01/02/16 31/01/21 £17,700 £17,700 £3.54 £3,250 £9,500 £374 Rent paid monthly in advance

Unit 9 1,715.6 18,467 Stiller Warehousing & Distribution Limited

02/01/17 01/01/18 £29,750 £29,750 £1.61 £11,050 £26,250 £1,381 Holding Over. Lease renewal in progress

Unit 10 363.3 3,910 Beer Express Limited 01/12/16 30/11/21 £10,000 £10,000 £2.56 £2,542 £8,800 £292 Rent paid monthly in advance

Unit 11 363.3 3,910 Red-D-Arc Limited 01/10/16 30/09/19 £10,000 £10,000 £2.56 £2,542 £9,200 £292

Units 12-15 1,594.8 17,166 Fabtech Limited 01/05/16 30/04/19 £41,200 £41,200 £2.40 £11,158 £24,250 £1,284 Rent paid monthly in advance

Unit 16 111.5 1,200 Dee Dees Café 01/09/14 01/10/17 £3,120 £3,120 £2.60 £780 £4,750 £90 Holding Over. Rent paid monthly in advance

Unit 17 101.7 1,095 Quality Hydraulics Limited 01/04/16 31/03/21 01/04/18 31/03/19 £3,285 £3,285 £3.00 £712 £4,250 £82 Stepped Rent: Y1-£3,011, Y2-£3,285, Y3-£3,559, Y4-£3,833, Y5-£4,106. Rent paid monthly in advance

Unit 18 105.9 1,140 Resinance Flooring Limited 01/04/17 31/03/20 £3,990 £3,990 £3.50 £741 £4,400 £85 Rent paid monthly in advance

Unit 19 113.1 1,217 William Howard Trading 01/04/17 31/03/20 £4,550 £4,550 £3.74 £791 £4,550 £91 Rent paid monthly in advance

Unit 20 139.4 1,500 Multi-Surface Fabrications Limited 01/07/17 30/06/20 £4,425 £4,425 £2.95 £975 £2,360 £112

Unit 21 140.7 1,514 HB Technologies Limited 01/11/15 31/10/20 30/04/19 £4,550 £4,550 £3.01 £984 £113 Stepped Rent: Y1-2-£4,350, Y3-5-£4,550. Tenant break option subject to 3 months notice

Unit 22 929.0 10,000 PRD Warehouse Services Ltd 01/07/17 30/06/20 £30,000 £30,000 £3.00 £6,500 £16,750 £748

Unit 23 759.9 8,180 Multi-Surface Fabrications Limited 01/07/17 30/06/20 £24,130 £24,130 £2.95 £5,317 £12,890 £612 Rent paid monthly in advance

Unit 24A 599.2 6,450 Custom Finishes Limited 15/09/17 14/09/20 £19,350 £19,350 £3.00 £4,193 £482 Year 1 Rent: £9,675 pa, to be topped up by the Vendor to the contracted rent of £19,350 pa.

Unit 24B 571.4 6,150 Denholm Industrial Services Limited

01/06/17 31/05/22 £15,045 £15,045 £2.45 £3,998 £10,750 £460 Stepped Rent: 01/06/2017-30/11/2017 - £7,522.50, 01/12/2017 - 30/05/2018 - £15,045, 01/06/2018 - 30/07/2018 - £7,522.50, 01/08/2018 - 31/05/2022 - £15,045.

Unit 24C 380.9 4,100 Mill Masters International Limited 27/03/17 14/06/21 £12,300 £12,300 £3.00 £2,665 £307

Unit 24D 778.7 8,382 Mill Masters International Limited 15/06/16 14/06/21 £25,146 £25,146 £3.00 £5,448 £20,750 £627 Rent paid monthly in advance

Unit 25 103.7 1,116 Allan Sangster Electrics 01/04/16 31/08/20 £1,785 £1,785 £1.60 £725 £7,000 £83 Rent paid monthly in advance

Unit 26 185.8 2,000 Vacant 01/04/13 31/03/18 -£4,152 £41,687 £1.60 £1,300 £5,800 £150 +£4,152 Open fronted storage unit.

Unit 27, 32C & Yard

2,414.2 25,986 Fulbeck Limited 01/03/15 01/04/18 £41,687 £2,100 £1.50 £29,241 £25,500 £1,943 Lease renewal ongoing,

Unit 31 130.1 1,400 Commercial Vehicle Services 03/08/17 02/02/18 £2,100 £9,000 £1.48 £910 £4,850 £105 Rent paid monthly in advance

Unit 32A 563.6 6,067 Parnaby Removals UK Ltd 19/10/17 18/10/18 £9,000 £25,200 £2.31 £3,944 £9,400 £454 Holding Over. Lease renewal in progress

Unit 32B 1,014.5 10,920 Roman Limited 01/09/15 31/08/20 £25,200 £10,000 £7,098 £15,500 £817 Lease renewal in progress. Proposed 3 year term

Yard 2 Aycliffe Storage Limited 03/08/15 02/08/18 £10,000 £3,785 £2,400 Initial Service Charge of £2,400 subject to annual RPI indexed increase. Rent paid monthly in advance

Yard 3 David Clark 03/08/15 02/08/25 £3,785 £15,000 £757 Initial Service Charge of £756.70 subject to annual 3% increases.

Caravan Storage Park

Willowtree Limited 25/09/15 03/08/18 03/08/21

03/08/2003/08/22

£15,000 £2,167 £2,000 £36,500 Service Charge Cap: £2,000 pa. Tenant break option: 03/08/2020, subject to 6 month notice period Landlord break option: 03/08/2022, subject to 9 month notice period

Lorry Parking Space

Bio Marsh Environmental Limited

£2,167

SUB-TOTAL 24,311.6 261,688 £618,057 £622,210 £2.40 £186,650 £417,950 £19,570 £4,152

TENANCY SCHEDULE

TBC


Demise Tenancy Information Rent Management Landlord Liabilities

Comments

Unit Area (Sq M)

Area (Sq Ft)

Tenant Lease Start

Lease Expiry

Rent Review

Break Net Operating

Income (£ pa)

Contracted Rent

(£ pa)

Contracted Rent

(£ psf)

Service Charge (£ pa)

Rateable Value (£ pa)

Insurance(£ Pa)

Total Landlord Liabilities (£ pa)

OFFICE ACCOMMODATION

BLOCK A

Ground 768.7 8,274 HB Technologies Limited 01/11/15 31/10/20 30/04/19 £27,652 £58,100 £7.02 £30,448 £25,500 £619 £30,448 Tenant break option (30/04/2019) subject to 3 month notice period.

GA1 71.5 770 Management Suite -£4,942 £2,834 £4,400 £58 £4,942

GA2 & 5 83.1 894 Capture Films 01/10/14 30/09/17 £4,812 £4,812 £5.38 £3,290 £6,100 £67 Holding Over

GA3,4 & 6 124.6 1,341 C&P Interiors 01/09/14 31/08/17 £4,800 £4,800 £3.58 £4,935 £6,100 £100 Holding Over

W1 (Workshop) 46.5 500 Thelectronics Ltd 01/10/16 30/09/19 £2,045 £3,885 £7.77 £1,840 £2,700 £37 £1,840

W2 (Workshop) 78.0 840 None Stop Vinyl Records 01/04/16 31/03/19 £1,309 £4,400 £5.24 £3,091 £2,900 £63 £3,091 Rent deposit held: £450

FA1-2 36.3 391 Special Touches Limited 01/12/16 30/11/17 £4,017 £5,456 £13.95 £1,439 £1,050 £29 £1,439 Holding Over

FA3 27.0 291 William Robinson 01/04/16 31/03/19 £1,257 £2,328 £8.00 £1,071 £3,150 £22 £1,071

FA4 27.9 300 Vacant -£1,919 £1,104 £1,700 £22 £1,919

FA5-8 & 10 137.0 1,475 Morses Club Plc 27/10/17 26/10/19 £7,111 £12,539 £8.50 £5,428 £8,825 £110 £5,428

FA9 53.9 580 Platinum Property Services 01/01/15 31/12/18 £4,930 £4,930 £8.50 £2,134 £3,350 £43 £0

FA11 13.5 145 Lead Talent Resourcing Limited 15/02/17 14/02/18 £916 £1,450 £10.00 £534 £920 £11 £534

FA12 13.5 145 GE Telecom Ltd 14/10/15 13/04/16 £771 £1,305 £9.00 £534 £920 £11 £534

FA13 13.5 145 Hawk Shield Security Limited 01/10/16 31/03/17 £916 £1,450 £10.00 £534 £910 £11 £534 Holding Over

FA14 40.7 438 Vacant -£2,879 £1,612 £2,650 £33 £2,879

FA15 49.9 537 KHK People Development Limited

01/02/16 31/01/19 £2,324 £4,300 £8.01 £1,976 £3,200 £40 £1,976

FA16 22.1 238 Vacant -£1,593 £876 £1,500 £18 £1,593

FA17-20 53.9 580 Vacant -£4,391 £2,134 £4,750 £43 £4,391

FA21-22 60.4 650 KHK People Development Limited

01/10/16 31/01/19 £2,158 £4,550 £7.00 £2,392 £3,400 £49 £2,392

BLOCK B

GB1-5 & FB5-6

152.7 1,644 Communicators 01/03/15 28/02/18 £19,431 £19,431 £11.82 £6,050 £15,700 £123 Tenant rolling break option subject to 3 month notice period.

FB1 29.6 319 Tees Vale Ltd 01/08/15 31/07/16 £1,076 £2,250 £7.05 £1,174 £2,650 £24 £1,174 Holding Over

FB2-3 43.5 468 Multi-Surface Fabrications Limited

01/07/17 30/06/20 £2,022 £3,744 £8.00 £1,722 £1,975 £35 £1,722

FB4 18.6 200 Diamond Cleaning 01/01/15 31/12/18 £1,700 £1,700 £8.50 £736 £1,200 £15

FB7 24.2 261 MultiSurface Fabrications Limited

01/02/16 31/01/19 £1,650 £2,610 £10.00 £960 £2,050 £20 £960

FB8 105.7 1,138 Hillman 01/10/14 30/09/17 £9,665 £9,665 £8.49 £4,188 £7,300 £85 Holding Over

FB9 35.6 383 Vacant -£2,522 £1,409 £2,325 £29 £2,522

FB10 56.1 604 Nims Freight Services Limited 01/02/16 31/01/19 £2,377 £4,600 £7.62 £2,223 £3,550 £45 £2,223

SUB-TOTAL 2,188.0 23,551 £84,694 £158,305 £7.32 £86,668 £120,775 £1,761 £73,611

TOTAL 26,499.6 285,239 £702,752 £780,515 £2.77 £273,318 £538,725 £21,331 £77,763

WHITWORTH AVENUE

CarPark

REDWORTH WAY

WH

INBA

NK

ROA

D

COATHAM AVENUE

FULB

ECK

ROA

D

CARAVAN STORAGE PARK• Let to Willowtree Limited

• Landlord Break Option: August 2022

• Lease Expiry: July 2025

• Current income is significantly reversionary

• Medium term site redevelopment opportunity

• Additional on-site car parking with potential to consolidate parking areas and increase space provision

• Site Area: 3.36 Acres (1.14 Hectares)

TECHNOLOGY COURT • 47 units let to 19 individual tenants

• 92% Occupied with significant and immediate asset management potential

• WAULT: 1.43 years to expiry (0.88 to breaks)

• Potential to provide additional car parking to the rear of the building

• Potential to improve existing plant equipment and significantly decrease service charge budget

• Total Floor Area: 23,551 sq ft (2,188.0 sq m)

YARD AREA • Vacant possession possible from

August 2020

• Dual access site from Whitworth Avenue and Fulbeck Road

• Unit 26 is vacant and offers immediate redevelopment potential

• Medium term site redevelopment potential

• Site Area: 2.12 Acres (0.86 Hectares)

ASSET MANAGEMENT


MIDDLESBROUGH£3.25 - £3.75

MIDDLESBROUGH£3.25 - £3.75

DURHAM£4.50 - £4.75

DURHAM£4.50 - £4.75

NEWTON AYCLIFFE£2.40

NEWTON AYCLIFFE£2.40

TEAM VALLEYTRADING ESTATE

£5.50 - £5.75

TEAM VALLEYTRADING ESTATE

£5.50 - £5.75 WASHINGTON£4.25 - £4.75

WASHINGTON£4.25 - £4.75

PETERLEEBUSINESS PARK

£3.25 - £3.50

PETERLEEBUSINESS PARK

£3.25 - £3.50

MARKET COMMENTARYAycliffe Business Park continues to benefit from supply chain opportunities predominately linked to manufacturing sectors and this has underpinned demand on the estate. Take-up levels have proved consistently strong over recent years, whilst at the same time, there has been very little speculative development on the estate or indeed the wider region.

Speculative development remains difficult primarily due to the costs associated and lack of gap funding, and as a result, landlords have been improving existing secondary space to capitalise on strong demand.

Examples include M7 Real Estate’s refurbishment of older industrial stock in 2016. This resulted in successful lettings to the likes of Vantec Europe (50,000 sq. ft), Ceva Logistics (20,000 sq. ft) and PWS (29,000 sq. ft).

The supply and demand dynamics across all of the size ranges has fuelled rental growth on the Park and this is anticipated to continue, particularly for secondary assets.

Examples of recent transactions below and support strong reversionary potential on Whinbank Park Industrial Estate.

Property Date Size (Sq. Ft.)

Term Rent (psf)

Comments

2 Maple Way, Aycliffe Business Park

July ‘17 5,000 3 years £5.00 Modern semi-detached unit with min 6.4m eaves. Let to Cam-Tech Limited.

3 Maple Way, Aycliffe Business Park

May ‘17 5,018 6 years £4.75 Modern semi-detached unit with min 6.4m eaves. Tenant break at year 3. Let to Radius-Plus Limited.

Hurworth Road, Aycliffe Business Park

Sept ‘16 6,545 5 years £3.50 Secondary industrial space built in 1980’s. Two storey offices, parking and shared yard. Occupier – Confidential

4 Redworth Way, Aycliffe Business Park

Aug ‘17 15,000 10 years £3.50 Lease subject to break options in years 3 and 5. 1980’s secondary unit let to Schlegel

J372 Durham Way South, Newton Aycliffe Industrial Estate

March ‘17 25,000 5 years £3.75 Detached 1980’s secondary unit. Lightly refurbished. Tenant break year 3. Let to the Centre for Process & Innovation.

2-5 Central Park, Aycliffe Business Park

Lease Agreed

48,247 10 years £4.15 Lease agreed with PWS Distributors Ltd subject to completion of landlord’s works (expected March 2018)

COMPARABLES


INDUSTRIAL RENT ANALYSISRental values achieved on refurbished secondary (1980s/1990s) accommodation. Sample unit size approx. 5,000 sq ft.

Misrepresentation Act: 1. Allsop LLP and Naylors on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Naylors is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or Naylors nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Naylors are a trading name of Naylors Properties (Northern) Limited. Design: Command D - www.commandHQ.co.uk 02.18

For further information or to make arrangements for viewing please contact:

Guy Scott Plummer020 7543 [email protected]

Tom Dales020 7543 [email protected]

Chris Donabie01912 111 [email protected]

Fergus Laird01912 111 [email protected] www.naylors.co.uk

PROPOSAL

We have been instructed to seek offers in excess of £7,000,000 (Seven Million Pounds) for Whinbank Park Industrial Estate, subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 9.40% and a low capital rate of £24.54 psf.

DATA ROOMFor further information, please register to the Allsop Marketing Data Room on the following link: https://datarooms.allsop.co.uk/register/whinbankpark

EPCFurther information is available on the Allsop Marketing Data Room.

VATThe property is elected for VAT and it is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).