High Yielding Well Let Investment Opportunity

Convergys, Unit 2, Stakehill Industrial Estate, Middleton, Manchester, M24 2UG

INVESTMENT CONSIDERATIONS ■ Well located within a popular and established industrial estate.

■ Excellent motorway communications to the M62.

■ Freehold

■ The property provides an industrial unit currently utilised as a call centre with a gross internal area (GIA) of 27,094 sq ft (2,517.1 sq m) and a large separate site of 1.78 acres which provides parking for circa 250 cars.

■ Let to Convergys Intelligent Contact Limited on a new 10 year FRI lease without breaks.

■ D&B 4A1 rated covenant.

■ Re-based rent of £235,000pa.

■ Tenant have recently spent c.£1m on refurbishing the property.

■ We are instructed to seek offers in excess of £2,200,000 (Two Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This shows an attractive net initial yield of 10% after allowing for purchaser’s costs of 5.8%.

Convergys, Unit 2, Stakehill Industrial Estate, Middleton, Manchester, M24 2UG

LocationThe property is located on the Stakehill Industrial Estate approximately 1.5 miles (2.3 km) to the south of the M62 at Junction 20, close to Middleton on the outskirts of Manchester. The estate benefits from a direct dual carriageway link to the A627(M) which connects to the M62 and the national motorway network. The M62 connects Leeds to Liverpool as well as the M1 and the M6 with a journey time of approximately one hour to both.

Mills Hill Mainline Station is approximately 2.5 miles (4 km) to the south and provides train services to Manchester Victoria. Manchester Airport is approximately 23 miles (37km) to the south.

SituationThe property is located in the north east corner of the estate on Stakehill Lane. The car park is situated to the east of the property a short walk from the main call centre building and is accessed from Finlan Road with frontage onto Bentley Avenue.

Stakehill Industrial Estate is recognised as one of the premier industrial and distribution locations in the north west of England, extending to approximately 200 acres and providing over 2.5m sq ft of industrial and distribution space. Nearby occupiers on the estate include Dunlop GRC, Proseat, Sykes Distribution, Booker Wholesale, Tesco and Aldi.

Mills Hill

Castleton

ManchesterGolf Course

North ManchesterGolf Course

Tandle HillCountry Park

Castle HawkGolf Course

Boar

shaw

Lane

Stakehill Lane

Bentley Avenue

Whitbrook Way

Boswell

Way

Touche t Hall Road

Finlan Road

Shaw Road

B6195 Middleton Road

B6195 Haigh Lane

Burnley Lane

Stree

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Gre

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ane

Stanycliffe Lane

Brookl and

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Clough RdBoarshaw Rd

Wood Street

Win

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Bowness Road

Langley Lane

Hareshill Road

Pils

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A671 R

ochdale Road

A671 O

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A663 Broadway

A664 R

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A664 Manchester Road

A664

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A664

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A669 Middleton Road

A669 Oldham Road

A6046 M

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A6046 H

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A604

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Old

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A604

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A663

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A627 Chadderton Way

M62

A627(M)

A627(M)J19

J20

J3

J2

J1

A627(M)

SYKES

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M62 1.5miles

WINCANTON

Outline for indicative purposes only.

Description The property comprises an industrial unit of steel portal frame construction with brick elevations and a pitched steel profile clad roof. Internally the property provides two large rooms of open plan office accommodation currently used as call centres as well as a number of smaller ancillary offices and training rooms. There is a modern reception area and a canteen with a commercial kitchen.

The open plan offices benefit from a fully raised floor and recently upgraded lighting and air handing system with ceiling mounted recessed air conditioning units. The smaller offices have perimeter trunking and good natural light.

In addition within the ownership there is a separate car park located close to the subject property which provides space for approximately 250 cars.

TenancyThe property is let on a FRI lease to Convergys Intelligent Contact Ltd with a guarantee from Convergys Holdings (UK) Ltd. The landlord has agreed to grant a simultaneous surrender of the existing lease and grant a new lease for a period of 10 years on a full repairing and insuring basis subject to a schedule of condition at a rent of £235,000 pa.

There is an upwards only rent review in year 5 to market rent with a cap on the increase to no more than 2.5% of the passing rent. The tenant has a six month rent free period which the vendor will ‘top up’.

SiteThe property is on a site area of 1.14 acres with a site coverage of approximately 55%. The car parking site extends to 1.78 acres.

CovenantConvergys Intelligent Contact Ltd is part of Convergys Corporation, the second largest Business Process Outsourcing provider in the industry. It has 125,000 employees working in more than 150 service centres in 31 different countries. It primarily provides customer service, technical supports and sales services from its numerous call centres.

The tenant has a D&B rating of 4A1 and a minimum risk of business failure.

The company provided the following set of accounts over the last three years:

31 May 2012 31 May 2013 31 December 2013

Turnover 55,125,942 64,453,992 46,794,507

Pre-Tax Profit 4,850,580 5,902,348 2,829,250

Total Net Worth 20,990,459 19,194,256 21,479,623

132.0m

El Sub Sta

1

7

20 to 28

11

LB

10

Stakehill

12to

15

11

Farm

Industrial Estate

110

122

106

116

134

132

2

ElSubSta

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1688

CAR PARK

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

AccommodationThe property provides the following approximate Gross Internal Areas (GIA):

Description Sq Ft Sq m

Call Centre 14,744 1,369.76

Offices 6,871 638.34

Canteen 5,050 469.16

Kitchen 429 39.86

Total 27,094 2,517.11

Area Spaces

Car Park 1.78 250

*Areas provided by the vendor.

*

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP 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 vendor/lessor does not make or give, and neither Allsop LLP nor any of its 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 vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor 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. Design: CommandD www.commandHQ.co.uk 05.15

Alex Butler020 7543 6722alex.butler@allsop.co.uk

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

Mark Dansky020 7543 6813mark.dansky@allsop.co.uk

Dom Ketteringham020 7543 6833dominic.ketteringham@allsop.co.uk www.allsop.co.uk

Proposal We are instructed to seek offers in excess of £2,200,000 (Two Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This shows an attractive net initial yield of 10% after allowing for purchaser’s costs of 5.8%.

EPCA copy of the Energy Performance Certificate is available on request.

VATWe understand the property is elected for VAT which will be chargeable on the purchase price. We would expect the transaction to be treated as a transfer of a going concern (TOGC).

TenureFreehold