BR ACKMILLS 192BR ACKMILLS INDUSTRIAL ESTATE, SALTHOUSE ROAD,

NORTHAMPTON NN4 7EX

BRACKMILLS 192PRIME LOGIST ICS INVESTMENT OPPORTUNITY

avisonyoung.co.uk024 7663 6888

A rare opportunity to acquire a fully fitted and refurbished logistics facility totalling 192,288 sq ft on one of the Midland’s prime distribution parks.

Northampton occupies a strategic logistics location at the centre of the M1 corridor, benefiting from excellent road communications and a large pool of flexible low-cost labour.

Brackmills Industrial Estate is located immediately adjacent to the A45 dual carriageway, which provides direct access to Junction 15 of the M1 motorway and Junction 13 of the A14 dual carriageway.

Brackmills 192 has been comprehensively refurbished by Goodman and provides the following institutional specification: • 12.5 m clear height with a high bay element of 21 m clear height • 16 dock level and 4 ground level loading doors • Fully fitted warehouse with sprinklers, heating and lighting • 2 x generous yards with depths of 50 m and 30 m • Site area of 11.5 acres, providing a low site cover of 38% and space for a future expansion of the yard or additional parking.

Let on a new 10 year lease to Uniserve Holdings Limited, subject to a tenant’s break option at the end of year 5.

Current passing rent of £1,086,428 pax, reflecting a low rent of £5.65 per sq ft. The rent is subject to an open market review at year 5 if the break is not exercised.

Uniserve Holdings Limited (5A1) is the UK’s leading privately owned logistics and global trade management provider. The tenant is rated 5A1 by D&B with the 2017 accounts reporting a turnover of £206.4 million, pre-tax profit of £4.8 million and shareholders’ funds of £74.6 million.

Freehold.

We are instructed to seek offers in excess of £16,965,000 (Sixteen Million, Nine Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT.

Assuming purchaser’s costs of 6.74%, a purchase at this level reflects an attractive net initial yield of 6.00% and a low capital value of £88 per sq ft.

INVESTMENT SUMMARY

INVESTMENT SUMMARY

COCA COLA

HOWDENSZENETH

DECATHLON

JOHN LEWIS

TUFFNELLS

CLIPPERBLACK & DECKER

STAPLES

M1 J15

A45

TRAVIS PERKINS

TRAVIS PERKINS

GREAT BEAR

BAXTER HEALTHCARE

CYGNIA LOGISTICS

CYGNIA LOGISTICS

CAMELOT GROUP PLC

MISWA

WICKES

DHL

CASWELL ROAD

30M

SUBJECT PROPERTY

OxfordSwindon

BristolCardiff

Ilfracombe

Plymouth

Exeter BournemouthPoole

Salisbury

Southampton Brighton

Folkestone

DoverCanterbury

Colchester

Harwich

IpswichCambridge

Huntingdon

NorwichGreat

Yarmouth

LeicesterTamworth

Sheffield

Nottingham

Mansfield Lincoln

Felixstowe

London

Swansea

Carmarthen

Reading

LutonDunstable

CheltenhamGloucester

Birmingham

Stoke-on-Trent

Wolverhampton

Wrexham

Liverpool

Preston

Manchester

Leeds Kingston upon Hull

Immingham

Holyhead

Peterborough

Northampton

LondonGateway

M11

M3

M40

M25

CanntentetM20

A1(M)

HH

PetteA1(M)

M1

M1

LM1

M62

LivveverpoooolM56

M5

M6

T

M6

M6

A50

mwortmwA38

A14

M4

24

15 25

Mere Way

Danes Camp

Nene Val

ley W

ay

Lon

do

n R

oad

A5123

A43

A4500

LL

A45

15

15a

M1

16

To the M6 The North

To LondonThe South

Bedford

NorthamptonTown Centre

MarriottHotel

M1

A428

Liliput Rd

Casw

ell

Rd

Gowerton Rd

Salthouse R

d

Newport Pagnell Rd

Land

imor

e

Rd

Wooldale RdWooldale

Rd

Wootton Rd

A5123

A508 MMA428

Salthouse Rd

To NorthBirmingham & Leicester

wertonrt Rd

lthouse Rd

ell R

Brackmills192

LOCATION

SITUATION

DESTINATION DISTANCE DRIVE TIMEM1 Junction 15 4.0 miles 8 minsA14 via A43 15.7 miles 26 minsA14 via A45 22.0 miles 29 minsLeicester 41.2 miles 56 minsBirmingham 58.3 miles 1 hr 04 minsCentral London 67.0 miles 1 hr 37 mins

Brackmills Industrial Estate is situated to the south east of Northampton town centre. The property is located approximately 19 miles north of Milton Keynes and 67 miles north west of Central London, both of which are accessed via the M1 motorway at Junction 15.

Northampton occupies a strategic logistics location at the centre of the UK. The town benefits from excellent road communications via the M1 motorway and A45 carriageway, which together provide direct access to the M6, M25, A14 and A1(M).

Northampton has excellent access to the major UK freight, rail and airport terminals. Daventry International Rail Freight Terminal (DIRFT), Birmingham Intermodal Freight Terminal at Birch Coppice and Birmingham International Airport are all located within a 90 minute drive of Brackmills Industrial Estate. The ports of Felixstowe and Harwich are within a 2.5 hour drive via the A45 and A14 dual carriageways.

Located approximately three miles to the south east of Northampton town centre, Brackmills Industrial Estate is recognised as one of the UK’s most established and successful business parks.

Brackmills is situated immediately to the south of the A45 dual carriageway, which provides direct access to Junction 15 of the M1 approximately 4 miles to the south west and Junction 13 of the A14 approximately 22 miles to the north east. Junction 15A of the M1 is also easily accessible via the A5076 and A5123 dual carriageways, approximately 4.5 miles to the west.

Brackmills’ excellent communications and immediate supply of flexible low-cost labour has consistently attracted major occupiers and the estate is now home to over 140 companies employing approximately 11,000 people. Brackmills has been built out by a number of developers over the years, providing a range of styles and sizes of buildings. Major current occupiers on the estate include Howdens Joinery, DHL, Travis Perkins, Decathlon, Great Bear, John Lewis, Dachser and Clipper Logistics. The property occupies a prominent position on Salthouse Road on the eastern side of Brackmills 163, which has recently been let to The Pallet Network.

SAT NAV NN4 7EX

DESCRIPTION

SCHEDULE OF ACCOMMODATION

SPECIFICATION

SITE AREA

SQ FT SQ MHigh Bay Warehouse 47,541 4,416Main Warehouse 114,138 10,603Warehouse Office / Amenities 9,670 898Main Offices (3 Storey) 18,589 1,727Ground Floor Entrance 2,350 218Total (GIA) 192,288 17,864

The property comprises a fully fitted and refurbished modern distribution warehouse, with associated offices, extending to 192,288 sq ft.

The warehouse benefits from minimum 12.5 m clear height to the main warehouse together with a 21 m clear height to the high bay element.

The site extends to approximately 11.5 acres providing a low site cover of 38%.

10 dock levelloading doors

6 d

ock level

load

ing

do

ors

158

CA

R P

AR

KIN

G S

PA

CE

S

12 D

ISA

BL

ED

PA

RK

ING

SPA

CE

S5

0m

30m

102 m

12.5m CLEAR HEIGHT

21m CLEAR HEIGHT

42 m

103 m

12.5 m clear height 21 m clear height to the high

bay element 16 dock level loading doors

with scope for further doors (10 and 6 docks)

4 level access doors

Fully fitted warehouse with sprinklers, heating and lighting.

2 x generous yards (50 m and 30 m)

170 car parking spaces 30 HGV parking spaces Expansion land for additional

yard area or HGV / car parking

TENURE

COVENANTTENANCY

The property is let to Uniserve Holdings Limited on a new 10 year full repairing and insuring lease subject to a Schedule of Condition commencing on 4 May 2018.

The annual rent is £1,086,428 pa (£5.65 psf).

The lease is subject to a tenant only break clause at the end of the 5th year of the term, subject to 6 months prior notice and a break penalty of £271,607.

The lease is subject to 14 months rent free at the start of the lease plus two weeks if the break clause is not exercised.

In the event the break is not exercised, the rent will be reviewed to the higher of rent passing or Open Market Rental Value (OMRV).

Freehold.

The Uniserve group was formed in 1984 and is now the UK’s leading independent logistics and global trade management provider, with Uniserve Holdings employing over 600 people in the UK.

Uniserve Holdings provides domestic and international freight, logistics and fulfilment services throughout the UK and worldwide. The company occupies in excess of 2 million sq ft of warehousing space and operates more than 500 of its own vehicles through which it offers distribution, storage, packing, labelling, palletising, re-packing, pick and pack, hanging garments, specialist handling and associated stock management services.

In conjunction with its industry leading global partnerships with UniAir, UniEurope and UniOcean, the company offers international logistics and import and export services between the UK, Ireland and other parts of Europe through to the Middle East, China, South Asia and the Indian sub-continent.

Uniserve Holdings Limited (company number 02234562) has a Dun & Bradstreet rating of 5A1, which indicates a minimum risk of business failure.

The tenant reported the following accounting information in the past three financial years:

Consolidated GBP 000’s

31 March 2017

Consolidated GBP 000’s

31 March 2016

Consolidated GBP 000’s

31 March 2015Sales Turnover 206,432 156,993 164,062Pre-tax Profit / (Loss) 4,783 4,908 4,953Equity Shareholders Funds 74,631 71,006 66,524

OCCUPATIONAL MARKET COMMENTARY

2018 has seen strong activity in the first quarter which is anticipated to continue throughout the year after a positive 2017. This has been driven by the growth in e-commerce and requirements which have been satisfied directly or via 3PLs.

Brackmills Industrial Estate has witnessed significant rental growth in the last 12 months with a letting of £6.50 psf at Brackmills 163, a second hand grade A building in February 2018 and Liberty Property Group quoting £6.95 psf at Liberty 196, a new speculative facility of 196,000 available in Q1 2019.

The predominant reasons for this are an imbalance of supply and demand and a severe shortage of land on Brackmills Industrial Estate which is the principal factor for any speculative development; this coincides with a sharp increase in land values over the past 24 months.

Below is a list of key lettings on the M1 corridor which includes the following:

ADDRESS SIZE TENANT TERMS DATE

Brackmills 163Gowerton Road Brackmills Industrial EstateNorthampton

163,907 The Pallet Network

10 years£6.50 psf February 2018

Plots 520 & 530Magna ParkMilton Keynes

786,332 H&M20 years

15 year break£6.50

September 2017

RG3Rugby GatewayRugby

180,000 DHL10.5 years

7 year break £6.35 psf

August 2017

Plot 340Magna ParkMilton Keynes

100,247 UK Mail (DHL)

10 years£7.10 psf June 2017

Brackmills PointBrackmills Industrial EstateNorthampton

259,000 Decathlon 20 years£6.25 psf March 2017

Unit BNorthampton Commercial ParkNorthampton

162,000 Amazon 10 years£6.10 psf September 2016

Unit ANorthampton Commercial ParkNorthampton

304,000 Clipper 10 years£6.10 psf March 2016

INVESTMENT MARKET COMMENTARY

The logistics investment market remains highly competitive, with a considerable amount of capital targeting a limited number of core opportunities. This ongoing supply and demand imbalance has driven further yield compression during the first few months of 2018. Investor confidence in well located short income logistics opportunities continues to be underwritten by a compelling occupational market experiencing robust demand, low availability and attractive rental growth.

We highlight below a number of recent short income logistics transactions:

DATE ADDRESS TENANT UNEXPIRED LEASE TERM PURCHASE PRICE NIY CAP VALUE

(PER SQ FT) AREA (SQ FT)

Mar-18 Warth Park, Raunds Exertis 2.0 yrs £21,400,000 5.85% £88.00 224,378

Feb-18 Radar RoadLeicester, LE3 1TX Crown Packaging 9.6 yrs £17,268,000 5.10% £93.00 185,494

Dec-17Wingate Industrial EstateGreat Bank RoadBolton, BL5 3XU

Tesco Stores 4.1 yrs £24,400,000 5.35% £88.67 275,155

Dec-17The Metal CentreWestern WayWednesbury WS10 7BW

Aalco 5.4 yrs £21,000,000 5.13% £95.06 220,897

Nov-17Tongwell StreetEmerald Drive, Milton Keynes

Westcoast 3.5 yrs £12,780,000 4.71% £124.00 103,376

Nov-17Unit 7000Magna Park Lutterworth, LE17 4XH

Culina 7.3 yrs £19,100,000 5.15% £94.47 202,166

Sep-17Prologis ParkRytonCoventry, CV8 3EA

Network Rail 15.0 yrs (5 yr break) £36,146,000 4.89% £119.67 302,038

Jul-17Unit 1A & 1B Alpha ParkSt NeotsPE19 8JJ

Cath Kidson

Hotel Chocolat

6.8 yrs

3.0 yrs£16,290,000 5.03% £73.00 221,801

Jun-17 Dawson RoadMilton Keynes, MK1 1QY Yokohama 3.6 yrs £10,410,000 5.40% £96.00 108,018

May-17

Former Stanley Black & Decker Brackmills Industrial Estate, Northampton

Vacant VP sale to Exeter £13,015,000 – £79.40 163,907

FURTHER INFORMATION

VAT

The property has been elected for VAT and therefore we anticipate the sale will be undertaken as a Transfer Of Going Concern (TOGC).

EPC

EPC Rating E113.

PROPOSAL

We are instructed to seek offers in excess of £16,965,000 (Sixteen Million, Nine Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.00% and a low capital value of £88.00 psf assuming purchaser’s costs of 6.74%.

For further information, or to arrange an inspection, please contact the below joint agents:

Robert Rae T: 024 7663 6888 M: 07860 398 744 E: robert.rae@avisonyoung.com

Peter Keir T: 024 7663 6888 M: 07889 908 267 E: peter.keir@avisonyoung.com

Rob Watts T: 024 7663 6888 M: 07920 904 736 E: rob.watts@avisonyoung.com

George UnderwoodT: 020 3904 0555M: 07545 868 249E: george.underwood@burbagerealty.com

Sophia BellT: 020 3904 1555M: 07745 458 558E: sophia.bell@burbagerealty.com

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT – May 2018

DISCLAIMER: BURBAGE REALTY PARTNERS LTD AND AVISON YOUNG

Burbage Realty Partners and Avison Young Limited on their behalf and for the Vendors or Lessors of this property whose Agents they are, give

notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part

of an offer or contract. 2. Whilst Burbage Realty Partners and Avison Young Limited use reasonable endeavours to ensure that the information in

these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations

of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. Burbage Realty Partners and

Avison Young Limited as such cannot be held responsible for any loss or damage including without limitation, indirect or consequential loss or

damage, or any loss of profits resulting from direct or indirect actions based upon the content of these particulars. 3. No person in the employment

of Burbage Realty Partners and Avison Young Limited has any authority to make any representation or warranty whatsoever in relation to this

property. 4. Unless otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted

exclusive of VAT. Lease details and service ground rent (where applicable) are given as a guide only and should be checked and confirmed by your

solicitor prior to exchange of contracts.

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avisonyoung.co.uk024 7663 6888