South Coast Freehold Industrial Estate Investment Opportunity Total Accommodation 5,926 sq m (63,792 sq ft) Site Area 4.40 AcresFOR SALE

Skill Centre, Limberline Spur, Portsmouth P03 5LF

INVESTMENT SUMMARY

• Vibrant South Coast City benefiting from excellent communications via road, rail and sea

• Attractive regional occupational market conditions, where there is an acute shortage of supply

• Situated in a well established industrial location 1.5 miles from the M27/A27

• Total accommodation of approximately 5,926 sq m (63,729 sq ft)

• Sale and leaseback of Block C

• Total site area of approximately 4.40 acres, with a site coverage of approximately 33%

• Opportunity to develop further units on the site (stp)

• Freehold

• We have been instructed to quote a price of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT • A purchase at this level reflects a gross yield of 8.54%, allowing for graduated purchasers costs of 6.54%

Block C

Block A

LOCATIONPortsmouth lies within the county of Hampshire, approximately 19 miles south east of Southampton, 50 miles west of Brighton and 70 miles South of London.

The city benefits from excellent road communications with the M27/A27, the main South Coast route, located directly north linking with the M3 to the west and the A3(M) to the east. Both the M3 and A3(M) provide fast access north towards London and the wider national motorway network.

The Skill Centre is situated within an established industrial location on Limberline Spur which is accessed from Norway Road via Gunstore Road. It is approximately 1.5 miles from the M27/A27 South Coast trunk road.

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THE SKILL CENTRE

M27/A27

EASTERN ROAD A2030

NORWAY ROAD

Papertech Block E

Access Road

Block B

Block C

Bloc

k D

Block A

1

2

3

4

5

6

7

Bloc

k D

Access Road

Unit Size sq m

Size sq ft

Gross Passing Rent pa

Net ERV* pa

Block A 1,632 17,564 £96,516 £128,728Block B 528 5,679 £30,600 £48,437Block C 3,269 35,182 £176,000 £176,000

Block D 499 5,367 £45,060 £45,203

Total 5,928 63,792 £348,176 £398,368

Yards Plan No.

Sizesq ft

Gross Passing Rent pa

Net ERV* pa

Valna 1 21,960 inc. in Block ASpare Boxes 2 3,600 £6,000 £9,000

Jim Scaffolding 3 2,000 £2,400 £5,000

Easy Access 4 3,000 inc. in Block B income

Barhills (associated Yard) 5 3,170 inc. in Block B

incomeSmart Auto (associated Yard) 6 3,250 inc. in Block D

incomeBM Scaffolding 7 2,222 £7,200 £5,555

Total 39,202 £15,600 £19,555

Grand Total £363,776 £417,923

For the full accommodation schedule, please see the following tables.

* The suggested ERV is based on a net receivable rent (not the gross rents that are currently payable). This excludes usual tenants outgoings which we have assumed will be borne by the tenant including a full repairing and ensuring responsibility.

ACCOMMODATION SUMMARYDESCRIPTIONThe Skill Centre comprises of four blocks, which has been divided into 19 units providing a total of 5,926 sq m (63,792 sq ft). The rest of the site is used as yard space, which has been let to various occupiers. Block E has been sold off Freehold.

The site extends to approximately 4.40 aces, which excludes Block E, but includes the land to the north of the site which is held on a long lease and marked as Access Road on the plan below. At present the site coverage is 33%.

The property is currently owned by our client BP Logistics Ltd, who operate their warehousing and logistics business from Block C. It is proposed that they lease back these units as part of the transaction.

TENANCIES

Block C

It is proposed that the current owner, BP Logistics Limited, will enter into a new effectively full repairing and insuring lease (limited by a schedule of condition) on Block C for a term of 10 years with a five year tenant only break option and open market (upward only) rent review at an initial rent of £176,000 per annum exclusive (£5.00 per sq ft). The tenant will have the right to sublet in part.

Remainder

We understand that there are no formal leases in place. Therefore, the current tenants have protection under the Landlord and Tenant Act 1954.

In terms of the remaining occupiers, we understand that the landlord is currently responsible for all roofs. Block C will be the responsibility of BP Logistics Ltd.

The tenants of Blocks A/B/C are responsible for their own utilities. The landlord is responsible for the utilities of Block D.

All tenants are responsible for their business rates.

There are shared WC facilities on site for Units 3/4/8/9/10 and the yards.

We understand the landlord maintains the site which is currently not recoverable from the tenants.

It is assumed that the new owner will embark on a rationalisation of the tenancies.

Block C

Valna’s Yard

ACCOMMODATION SCHEDULES

Block A

Unit Tenant Unit Size sq m

Unit Size sq ft EPC Yard Size

sq ftGross Passing

Rent paGross Rent

psfNet ERV*

psfNet ERV*

pa

Unit 1 J Gardner t/a Southern Spray Centre 289 3,111 TBC £14,400 £4.63 £5.75 £17,886 Unit 2 A and B Motors 557 5,994 TBC £24,480 £4.08 £5.75 £34,464 Unit 3a Baker Trayte Marine 133 1,427 TBC £9,360 £6.56 £6.00 £8,562 Unit 3b Aztec Equipment 99 1,064 TBC £6,000 £5.64 £6.00 £6,386 Unit 4 Permatic Systems 307 3,310 TBC £14,676 £4.43 £5.75 £19,031 Unit 5 Valna 247 2,658 TBC £27,600 £5.75 £15,285

Associated Yard (No 1 on plan) 21,690 £1.25 £27,113

Total 1,632 17,564 £96,516 £128,728

Block A Valna Yard

ACCOMMODATION SCHEDULES cont.

Block B

Unit Tenant Unit Size sq m

Unit Size sq ft EPC Yard Size

sq ftGross Passing

Rent paGross Rent

psfNet ERV*

psfNet ERV*

pa

Unit 6a/6b Rowland Plant & Services 395 4,250 TBC £7,800 £1.84 £5.75 £24,440 Unit 6c Barhills (offices) 133 1,429 TBC £15,600 £6.00 £8,572

Associated Yard (No 5 on plan) 3,170 £2.50 £7,925 Unit 7 EasyAccess (No 7 on plan) TBC 3,000 £7,200 £2.50 £7,500

Total 528 5,679 £30,600 £48,437

Road between Blocks A and CBlock B Block B

ACCOMMODATION SCHEDULES cont.

Block C

Unit Tenant Unit Size sq m

Unit Size sq ft EPC Yard Size

sq ftGross Passing

Rent paGross Rent

psfNet ERV*

psfNet ERV*

pa

Unit 8 BP Logistics LimitedUnit 8a Sub Let to London Removals 521 5,613 TBCUnit 8b Sub Let to Interior Systems 286 3,081 TBCUnit 8c Sub Let to Interior Systems 517 5,563 TBCUnit 8d BP Logistics 958 10,307 TBCUnit 8e BP Logistics 526 5,660 TBCUnit 8f Sub Let to Papertech 461 4,958 TBC

Total 3,269 35,182 £176,000 £5.00 £5.00 £176,000

Road between Blocks A and CBlock BBlock C Block C

ACCOMMODATION SCHEDULES cont.

Block D

Unit Tenant Unit Size sq m

Unit Size sq ft EPC Yard Size

sq ftGross Passing

Rent paGross Rent

psfNet ERV*

psfNet ERV*

pa

Unit 9a DT (Paul Thomas & Steve Dickens) 100 1,074 TBC £6,000 £5.59 £6.00 £6,442 Unit 9b NGW (Andrew McClelland) 100 1,074 TBC £6,000 £5.59 £6.00 £6,442 Unit 10 Rovertech (Simon Greenwood) 55 590 TBC £3,000 £5.09 £6.00 £3,537 Unit 10a RB Tyres 77 823 TBC £6,000 £7.29 £6.00 £4,941 Unit 10b Urban Autos 90 964 TBC £6,000 £6.22 £6.00 £5,783 Unit 10c Benjamin Ground Works 50 533 TBC £4,800 £9.01 £6.00 £3,197 Unit 10d Smart Auto 29 310 TBC £13,260 £6.00 £1,860

Associated Yard (car sales) (No 6 on plan) 3,250 £4.00 £13,000

Total 499 5,367 £45,060 £45,203

Road between Blocks A and CBlock BBlocks B & C Entrance

ACCOMMODATION SCHEDULES cont.

Other

Units Tenant Unit Size sq m

Unit Size sq ft EPC Yard Size

sq ftGross Passing

Rent paGross Rent

psfNet ERV*

psfNet ERV*

pa

Additional YardsNo 7 on plan BM Scaffolding - TBC 2,222 £7,200 £3.24 £2.50 £5,555 No 3 on plan Jim Scaffolding - TBC 2,000 £2,400 £1.20 £2.50 £5,000 No 2 on plan Spare Boxes TBC 3,600 £6,000 £1.67 £2.50 £9,000

Total 7,822 £15,600 £19,555

Smart Auto Yard Block E

VIEWINGS Prospective purchasers are requested to contact the agent prior to viewing the property. In addition they are requested not to make contact with tenants in the first instance.

CONTACT For further information please contact the sole agents Flude Commercial:

Mark Minchell m.minchell@flude.com01243 929136 Sebastian Martins.martin@flude.com 01243 929135

Flude Commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.

Papertech

Access Road

TENUREThe indicative area outlined in red is held freehold. The area highlighted red has been sold off on a freehold to Papertech Europe Limited, the current occupier. The land highlighted in green is held on a long lease from Portsmouth City Council for a term of 999 years from 18 October 1994 at a peppercorn rent.

PROPOSALWe are instructed to quote a price of £4,000,000 (Four Million Pounds), subject to contract. A purchase at this level reflects a gross yeild of 8.54%, allowing for graduated purchasers costs of 6.54%.

Our client has indicated that they would consider selling the entirety of the shares in the company that owns the property, and which is the sole asset of the company. There would be a stamp duty saving in this regard.

VATWe understand that VAT will be applicable on the sale. It is anticipated that the matter can be dealt with by way of Transfer of Going Concern (TOGC).