KNOWSLEY L33 7RX

INDUSTRIAL INVESTMENT FOR SALE

SUGARICH, DEACON PARK, MOORGATE ROAD

KNOWSLEYSUGARICH

KNOWSLEYSUGARICH

Investment Summary

Strategically located in Knowsley, one of the prime industrial areas in the North West of England.

Excellent labour demographics and transport infrastructure.

Modern 3,684 m2 (39,654 ft2) industrial unit constructed in 2003.

Low site cover of only 34%.

Let to Factory Services UK (trading as SugaRich) until 30 November 2018 (7 years unexpired).

The passing rent is £186,695 per annum (£4.71 per ft2).

We are seeking offers in excess of £1,750,000 (One Million Seven Hundred and Fifty Thousand Pounds), Subject to Contact

and Exclusive of VAT.

A purchase at this level refl ects a net initial yield of 10%, assuming usual purchaser’s costs of 5.8%.

This refl ects a low capital value of £44 per ft2.

LOCATION

Knowsley is situated approximately 17 kms (11 miles) east of Liverpool and 47 kms

(29 miles) west of Manchester. Knowsley is one of the main industrial areas in

Merseyside and benefi ts from excellent access to the regional motorway network,

including the M57, M58, M6, M62 and Manchester Orbital M60 motorway.

Knowsley Industrial Park is situated on the north side of the A580 East Lancashire

Road, which provides direct access to junction 33 of the M6 and connects Liverpool

City Centre to the west with Manchester City Centre to the east. Knowsley Industrial

Park is one of the largest Industrial Parks in Europe, at almost 485 ha (1,200 acres)

the Park and its sister, Knowsley Business Park, are home to almost 600 companies

including QVC, Jaguar, Kodak, Vertex, Makro, St Ivel, Movianto, Allen Logistics, Delphi

and Liverpool FC.

Knowsley is considered to be a prime Industrial Park in the North West of England.

SITUATION

Deacon Park is situated on the north side of the A580 East Lancashire Road, within

the heart of Knowsley Industrial Park. To access the property from the M57 motorway,

exit at junction 4 onto the A5207 Moorgate Road, the property can be accessed via

the gated entrance to Deacon Park on the right hand side. Alternatively you can take

the next right at the roundabout onto South Boundary road and Deacon Park is on

the right hand side and is again accessed through a gated entrance.

The park is fully fenced and gated providing 24 hour security and has well maintained

landscaping and common areas.

M53

LIVERPOOL

MANCHESTER

WARRINGTON

RIVER MERSEY

A580A59

A6

11/15

WIDNES

ST HELENS

RUNCORN

1/6

7

M58

A565

A58

M62

11

12

M6

WIGAN

BOLTON

A57

A50

M569/20

10/21A

A56

A580 12/2

1/14

M62

M63

12 9

A34

A57

A5058

A561

BIRKENHEAD

A41

ELLESMEREPORT

26

23

M61

21

5

FORMBYORMSKIRK

LIVERPOOLJOHN LENNONAIRPORT

MANCHESTER

WILMSLOW

6

M6

To Birminghamand the south

To Leeds, M1and Hull

A49

A54

A556

NORTHWICH

WINSFORD

A54

A34

A55A5117

A533

A54

CHESTER

To Preston

M57

5

4SUGARICH

KNOWSLEYSUGARICH

KNOWSLEYSUGARICH

LIVERPOOL

SOUTH and M62

NORTH

A580 EA

ST L

AN

CS R

OA

D

MOORGATE ROAD

A

5028 SOUTH BOUNDARY ROAD

M57 JUNCTION 4

DEMOGRAPHICS

Knowsley forms part of Merseyside which has a population of 1,360,000 people and is one of the largest industrial centres in the Country. Knowsley contributes 151,300 people to the

total population. Merseyside benefi ts from a good supply of a low cost labour force. The latest data for the area suggests that there are currently 35,500 unemployed people actively

seeking work, ranking the centre 2nd in terms of the most people available for employment.

Combining the workforce characteristics highlighted, PMA have created a logistics labour index, in which Merseyside ranks No.2 of the 53 industrial PROMIS centres.

This score suggests that Liverpool has favourable local workforce characteristics for industrial and distribution operators.

DESCRIPTION

The property comprises a detached self-contained industrial facility of steel framed construction built in 2003.

The specifi cation of the unit comprises the following:

9.5 metre eaves height

4 ground level loading doors

Metal profi le clad elevations and roof with translucent roof panels

Substantial concrete surfaced yard

Separate car park to the front of the site

Detached self-contained offi ce building

HGV weighbridge

Self-contained perimeter fencing and secure gated entrance

The property is situated within Deacon Park which benefi ts from 24 hour manned security lodges at 2 separate barrier entrances, one off Moorgate Road and another off South

Boundary Road.

The property sits on a site extending to approximately 1.06 ha (2.63 acres) providing a low site cover of approximately 34%.

KNOWSLEYSUGARICH

KNOWSLEYSUGARICH

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th

Edition) and provides the following gross internal fl oor areas:

M2 Ft2

Warehouse 3,469.4 37,345

Offi ce 214.5 2,309

Total 3,683.9 39,654

TENURE

The property is held under a lease from 1 March 1956 for 999 years less 42 days at a passing

rent of a peppercorn without any reviews.

TENANCY

The property is let entirely to Factory Services UK Limited on a 15 year full repairing and

insuring lease from 1 December 2003. The lease is subject to a guarantee from Tramar D & M

Limited. There are therefore over 7 years remaining unexpired.

The passing rent is £186,695 per annum refl ecting £4.71 per ft2. The rent is subject to upwards

only rent reviews on 5th anniversary of the term.

There is an estate charge for Deacon Park which is fully recoverable from the existing tenant.

This covers all security and maintenance costs associated with the common areas within

Deacon Park.

The current service charge for the year ending December 2011 is £0.31 per ft2.

KNOWSLEYSUGARICH

FINANCIAL STRENGTH

Factory Services UK Limited trade as SugaRich. They are the UK leader in the recycling of

surplus food products and has extensive experience in formulating quality feeds for the

livestock industry. The business now incorporates Tramar, AB Nutrition and Acorn feeds.

It has been the forefront of the industry for well over 20 years and the SugaRich team

boasts nearly 150 years of combined experience in both the independent and corporate

sector. Their clients include: Mr Kipling, Allied Bakeries, Walkers, Siverspoon, Nestle,

Cadbury’s, Warburtons and McVities amongst many others.

They design and build tailor-made food surplus installations. They also collect and

replace full containers using its locally based national fl eet of specialist and general

purpose vehicles. The surplus food is then transported to SugaRich’s national network of

reprocessing centres. All SugaRich’s former food stuff end up as farm animal feed, after

processing the foods they are blended to the required animal feed formulation and then

sieved and ground to create a free fl owing meal. We have highlighted in the table below

the most recent reported fi nancial accounts for the tenant:

Factory Services UK Limited (company no. 05383180)

30/04/2010(*) 31/05/2009 31/05/2008 Turnover £19,205,000 £23,477,000 £22,562,000

Pre-Tax Profi ts £673,000 £1,317,000 £1,988,000

Net Worth £2,551,000 £2,066,000 £1,119,000

* These accounts refl ect an 11 month accounting period

More information about the tenant can be found on their website www.sugarich.co.uk

The guarantor is Tramar D&M Limited (company no. 01189427) and their most recent

accounts are summarised below:

30/04/2010 (*) 30/06/2009 30/06/2008 Turnover £12,918,000 £18,457,000 £20,878,000

Pre-Tax Profi ts £584,000 £676,000 £134,000

Net Worth £2,089,000 £1,665,000 £1,177,000

* These accounts refl ect an 10 month accounting period

VAT

We understand the property is elected for VAT and therefore VAT will be payable on the transaction. It is envisaged that the sale could be treated as a Transfer of a Going Concern

(TOGC).

PROPOSAL

We are seeking offers in excess of £1,750,000 (One Million Seven Hundred and Fifty Thousand Pounds), Subject to Contact and Exclusive of VAT. A purchase at this level refl ects

a net initial yield of 10%, assuming usual purchaser’s costs of 5.8%. This refl ects a low capital value of £44 per ft2.

FURTHER INFORMATION

If you require any further information or wish to view the property please contact:

© Crown Copyright 2011. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659.

This plan is published for the convenience of identifi cation only and although believed to be correct is not guaranteed and it does not form any part of any contract.

MISREPRESENTATIONS ACT 1967 & DECLARATION

Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and

do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith

and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of

each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to this property.

Subject to Contract. Exclusive of VAT. Semptember 2011.

James PorteousTel: 0161 238 7408

Email: james.porteous@eu.jll.com

Adam RobertsTel: 0161 828 6456

Email: adam.roberts@eu.jll.com

Andrew HilbourneTel: 0161 238 6284

Email: andrew.hilbourne@eu.jll.com

KNOWSLEYSUGARICH