ANORD MARDIX (UK) LIMITED

PRIME SINGLE LET INDUSTRIAL INVESTMENT OPPORTUNITY

365 FOUR OAKS ROAD | WALTON SUMMIT | PRESTON | PR5 8AP

KOMMERLING

CIH LTD

FOUR OAKS BUSINESS PARK

HPH LTD

PARCELFORCE

THE ICE CO.

RIBBLE CYCLES

FURLONG FLOORING

CARNFIELD PLACE

LINCOLN PARK

NETWORK RAIL

SLIDERS UK

THYSSENKRUPP

MAN TRUCKS

1

2

3

4

5

6

7

8

9

12

10

13

11

14

2

3

4

5

6810

1112

13

14

9

M6

M65

M61

J30

1

7

ANORD MARDIX

SUMMARY

Detached, single let industrial investment opportunity.

Strategically located in the heart of the North West with excellent access to the M6, M61, M55 and M65 motorways.

Situated on the highly sought-after Walton Summit Industrial Estate, Preston.

The property has been recently refurbished and provides 83,682 sq ft of accommodation.

Let to the excellent covenant of Anord Mardix (UK) Ltd for a term of 10 years from February 2019, subject to an option to break in February 2024.

Passing rent of £441,267 per annum (£5.33 psf).

RPI linked rent review in year 5 (subject to a collar and cap of 1% - 4% pa compounded).

Freehold

We are instructed to seek offers in excess of £6,620,000 (Six Million, Six Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive Net Initial Yield of 6.25% (assuming purchaser’s costs of 6.64%) and low capital value of £79.11 per sq ft.

M60

M6

M6

M74

M8

A1

M90

M40

M62

A1

M5

M5

M4

M61

M1

M20

M25

LOCATION

Preston is the principle administrative centre of Lancashire and represents the North West region’s third largest City after Manchester and Liverpool. Preston was granted City status in 2002 and is situated approximately 33 miles North-West of Manchester and 35 miles North of Liverpool.

The city benefits from excellent road communications, with the M6 motorway accessed via Junctions 29-32 with direct links to the M61, M65 and M55 motorways. Preston Railway Station is nearby and situated on the West Coast Mainline providing regular direct services to Manchester (40 minutes), London (2 hours 15 minutes) and Glasgow (2 hours 18 minutes).

Manchester International Airport, the UK’s third busiest airport, is located 35 miles to the south of Preston. The airport is currently undergoing major £1-billion investment programme to further enhance the offering of the airport.

LEEDS

HULL

SHEFFIELD

LONDON

MANCHESTER

LIVERPOOL

BIRMINGHAM

PRESTON

CARLISLE

GLASGOW

EDINBURGH

NEWCASTLE UPON-TYNE

REGIONAL LOCATION

A59

M6

M56

M56

M58

M61

M60

M60

M62

M62

M6M66

M65

M55

M53

Leyland

Skelmersdale

Northwich

Blackburn

Bury

Rochdale

PRESTON

Southport

Wigan

Stockport

Widnes

Runcorn

Warrington

Blackpool

MANCHESTER

LIVERPOOL

BLACKPOOL

LIVERPOOL

MANCHESTERSt Helens

Chorley

J1 J2

J30

DRIVE TIMES

1 min

2 mins

2 mins

14 mins

32 mins

36 mins

40 mins

45 mins

53 mins

1 hour 50 mins

4 hours 21 mins

J29 M6

J9 M61

J2 M65

J1 M55

Lancaster

Manchester Airport

Manchester

Liverpool Airport

Liverpool

Birmingham

London

ANORD MARDIX

The strategic significance of the location is underpinned by the following approximate drive times:

SITUATION

Walton Summit Industrial Estate is the prime industrial location in Lancashire situated approximately 2.5 miles to the south-east of Preston city centre and provides approximately 250 acres of employment land.

The estate has excellent road communications being strategically situated at the intersection of three major motorways, namely the M6, M61 and M65.

Walton Summit is home to a number of blue-chip occupiers including Thyssenkrupp Aerospace, MAN Trucks, Network Rail, Parcelforce and Yodel amongst many others.

The subject property is situated in a prominent position, accessed from Four Oaks Road, one of the principle estate roads within Walton Summit.

A4

9

B

62

58

S

TA

TIO

N R

OA

D

FOU R

OAKS

RD

BR

IER

LY R

D

K ELLET LN .

A6 BAM

BE R

A6

PR

ESTO

N

RO

AD

A6

M61

M6

J30

J29

J29 M6 J9 M61

Bamber BridgeTrain Station

To Blackburn

To Manchester

To Leyland, Liverpool and the Warrington

To Chorley

To Preston City Centre

To Lancaster& The North

J2 M65

J1 M65

M65

M6

M61N

EW

FIE

LD

RD

OLDFIELD RD

CO

CK

ER

RD

To Preston

WA

LTO

N S

U

MMIT RD

ANORD MARDIX

EXPAN

SION

LAN

D

For indicative purposes only

6 LEVEL

DOCK DOORS

2 LEVEL

LOADING DOORS

DESCRIPTION

The property comprises a modern refurbished self-contained warehouse of steel portal frame construction within 3 bays. The property has the following specifications:

Pitched metal clad roof with approximately 10% roof lights Profile metal clad elevations 8.8m eaves to the underside of haunch (4.2m – 6.25m height to the loading bay) 6 dock level and 2 drive-in loading doors

High quality ground floor office accommodation which has been extensively refurbished Upgraded power supply to provide 800 kVA Extensive, secure service yard with a depth of approximately 46m Separate delineated car parking area for approximately 26 cars

The property sits on an extensive 4.7 acre site and we are aware that planning was approved in 2010 to extend the current warehouse by approximately 19,000 sq ft.

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (7th Edition) on a gross internal basis as follows:

The property has a total site area of 4.7 acres and a site coverage of 40.8%.

TENURE

TENANCY

SQ M SQ FT

WAREHOUSE 7,494.03 80,665

OFFICES 280.24 3,016

TOTAL 7,774.27 83,682

The property is held freehold.

The property is let to Anord Mardix (UK) Limited for a term of 10 years from 19 February 2019, subject to a tenant option to break at the end of the 5th year.

The passing rent is £441,267 per annum (£5.33 psf).

There is a rent review at the end of the 5th year, which is RPI linked (subject to a collar and cap of 1% per annum to 4% per annum compounded).

The property is held on full repairing and insuring terms.

The tenant benefits from a reduced rent of £257,406 per annum for the initial 12 months of the term. Any outstanding rental incentive will be topped up by the vendor. Expansion Land

COVENANT

The Anord Mardix Group is a global leader in critical power solutions for data centres and other large infrastructure and property projects. The company offers over 100 years of experience, having formed following the $48.6M merger between Anord Control Systems and Mardix in 2018. This property is used specifically for the production and assembly of steel based components. It is their only UK facility which undertakes this process and compliments their other UK operations in nearby Blackburn and Kendal.

Anord Mardix (UK) Limited has been granted a D&B rating of 4A2 and has published the following accounts:

31.12.17 (9 Months)

31.03.17 (12 Months)

31.03.16 (12 Months)

Turnover £39,584,944 £53,883,966 £43,616,259

Pre-Tax Profit £2,794,763 £5,229,764 £4,641,459

Tangible Net Worth £15,772,283 £15,145,232 £12,886,205

INVESTMENT MARKET

Sales volumes in the North West are currently well ahead of the 10 year average as investor demand for the region continues to surge.

There remains a significant weight of capital chasing the industrial sector, with investors buoyed by strong occupational fundamentals including record levels of take up, historically low availability rates and a constrained development pipeline.

On average, 260 acres per annum of industrial land has been lost to residential development as local authorities seek to address the housing crisis. The combinations of diminishing stock levels and robust occupational demand has created a positive demand / supply imbalance and a strong rental growth dynamic.

Current investor demand is being driven by sectors offering strong occupational growth and the potential to enhance income terms. The continued structural shift provided by the evolution of online retail, the consolidation of retailers and the automotive push on occupational demand, all set against a backdrop of historically low availability and lack of alternative investment opportunities has resulted in the industrial and logistics market attracting strong potential from a wide range of investors.

By way of comparable evidence, we believe these examples are the most relevant to support our pricing:

ADDRESS SIZE TENANT TERM CERTAIN PRICE YIELD DATE

Trafford Park Road, Trafford Park 42,511 Crown Records

Management 2.1 £3,075,000 5.58% Jun 2019

Link 95, Heywood 95,980 McCormicks Ltd 4.8 £10,385,000 5.50% Jan 2019

Midpoint Park,Minworth 105,750 Part Alliance

Group Ltd 5.0 £12,130,000 5.10% Nov 2018

Fedex UK, Parkhouse East IE, Newcastle-U-Lyme

103,441 FedEx Uk Ltd 2.7 9,500,000 6.00% Sep 2018

George Richards Way, Altrincham 96,500 Gefco Forwarding

UK Ltd 8.0 £7,000,000 5.09% Sep 18

The Enza Building, Warrington 38,060 Roanza Ltd 5.7 £4,925,000 4.76% Apr 18

EPC

The EPC rating is C85. A copy of the Energy Performance Certificate is available upon request.

VAT

FURTHER INFORMATION

The property has been elected for VAT and it is the intention to treat this transaction as a Transfer of a Going Concern (TOGC).

Data site access is available upon request.

PROPOSAL

We are instructed to seek offers in excess of £6,620,000 (Six Million, Six Hundred and Twenty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects a Net Initial Yield of 6.25% (assuming purchaser’s costs of 6.64%) and a low capital value of £79.11 per sq ft.

CONTACT

To discuss the opportunity or to arrange an inspection please contact:

SIMON WOOD 07793 119 21001925 320 520simon@b8re.com

JOHN BURROWS 07921 137 20001925 320 520johnb@b8re.com

MISREPRESENTATION ACT: B8RE act for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person in the employment of all agents has any authority to make or give any representation or warranty in relation to this property. This i-brochure was designed by i-creative.com, July 2019.

For occupational information:

DANNY PINKUS 07971 200 01501772 766 683danny@pinkus.co.uk