Unit 9 Stone WayLakesview International Business ParkHersden, Kent CT3 4GP

Modern South East industrial investmentopportunity let to a strong covenant

• A modern South East industrial propertysituated to the east of Canterbury

• Located on an established business park withdirect access onto the A28

• Well specified unit comprising 6,109 sq ft(568 sq m)

• The lease benefits from an unexpired term of5.50 years

• Total passing rent of £72,500 per annumequating to £6.71 psf assuming £1.00 psf onyard overage

• Let to Viridor Waste Management Limited whobenefit from a strong Dun & Bradstreet ratingof 5A1

• The tenant recently chose not to exercise itsbreak option, demonstrating it’s commitmentto the property

• Site area of 0.97 acres (0.39 ha) providing anexceptionally low site cover of 11%

• Freehold

Investment Summary

INVESTMENT SUMMARY

We are instructed to seek offers in excess of £960,000 (Nine Hundred andSixty Thousand Pounds), subject to contract and exclusive of VAT for ourclient’s freehold interest. A purchase at this level reflects an attractive NetInitial Yield of 7.14% assuming purchaser’s costs of 5.71%

Canterbury

A28

Stone Way

Thomas Way

Sparrow W

ay

Clarem

ont W

ay

MattressNextDayCanterbury

DB SpecialistJoinery Ltd

Hornby Hobbies

RyeCommercials

UK StoneImports Ltd

RobinsPackaging

BryantCars

ExchangeHouse

Flexspace

AndersonTyre Services

Lakesview InternationalBusiness Park

Unit 9 Stone Way

MargateLocationHersden is located in the county of Kent 5.5 mileseast of Canterbury, 21 miles north of Folkstone and67 miles south east of London. Hersden liesadjacent to the A28. The town lies inbetweenCanterbury and Margate, approximately 6 milesfrom the A2 which is one of the major arterial roadsin the county, leading to Dover 20 miles to thesouth and Junction 7 of M2 motorway 12 miles tothe north. This in turn leads to the M25 and widernational motorway network.

Canterbury West railway station lies approximately5.5 miles west of the Property and provides accessto London St Pancras in approximately 55 minutes.It also provides a direct service to London Victoria,London Charing Cross and Ashford International.

SituationThe Property is situated on the establishedLakesview International Business Park on theoutskirts of Hersden. The Property is positioned offClaremont Way which runs through the centre ofthe Business Park and provides direct access to theA28. The A28 is the main arterial road linkingAshford to the west, via Canterbury and Margate tothe east.

Lakesview International Business Park is spreadover 50 acres providing a mixture of industrial,office and warehouse accommodation. It is ideallysituated in the heart of Kent and provides a rangeof unit sizes and facilities attracting local, regionaland national occupiers. Occupiers on the estateinclude Hornby Hobbies and UK Stone Imports. Thetenant, Viridor, benefits from business relationshipswith other occupiers on the Park.

CanterburyCCaCanCantCanteCanterCanterbCanterbuCanterburCanterburyCanterbury

Ashford

Maidstone

Chatham

FolkestoneFFoFolFolkFolkeFolkesFolkestFolkestoFolkestonFolkestone

DoverDDoDovDoveDover

Ramsgate

Margate

AshWingham

Littlebourne

Upstreet

Chartham

Challock

Bethersden

Shadoxhurst

Little Chart

Frittenden

Smarden

Hollingbourne

HawkenburyStelling Minnis

Lyminge

Kingsdown

Deal

Sandwich Bay

Broadstairs

Westgate-on-SeaReculverHerne Bay

Whitstable

Aylesham

LeavelandOtterden Place

Doddington

Milstead

FavershamTeynham

Sittingbourne

NewingtonHempstead

Rainham

Isle ofSheppey

Wye

Aldington

Bonnington

Elham

AlkhamHawkinge

Sarre

HersdenHHeHerHersHersdHersdeHersdenWickhambreaux

SturryBlean

Chestfield

M20

M20

M20 M2

M2

M2

A2070

A2

A2

A2

A28

A28

A28

A20

A28

A28

A299

A249

A249

A229

A229

A229

A299

A256

A256

A256

A259

Dover

Hersden

FolkestoneLOCATION

The Property comprises a 6,109 sq ft detached industrial unit with two storey officeaccommodation and extensive yard provision. Built in 2008 and benefiting from amodern specification, it is of steel frame construction with profiled sheet steelelevations. It has a pitched roof with profiled sheet steel and translucent panels. TheProperty benefits from the following specification:

• 3 roller shutter loading doors

• 2 vehicle maintenance pits

• Eaves height of 24ft (7.32m)

• Exceptionally large and secure fenced yard with CCTV facilities

• Provision for 21 lorry parking bays and 32 separate car parking spaces

• Two storey open plan offices with suspended ceilings and double glazedwindows

• Disabled passenger lift and WC facilities

Site AreaThe total site area is 0.97 acres (0.39 ha) providing an exceptionally low site coverof 11%.

TenureFreehold. Title number K928405.

DESCRIPTION

STONE WAY

9

a

10

C to E

G

F

J

TenancyThe Property is let in its entirety to Viridor Waste Management Limited on a Full Repairingand Insuring lease for a term of 15 years commencing 18 April 2008, expiring on 17 April2023. The tenant has recently chosen not to exercise its April 2018 break optiondemonstrating its commitment to the Property and therefore providing approximately5.50 years unexpired.

The passing rent of £72,500 per annum equates to £6.61 psf. This assumes £1.00 psf isapplied to the yard overage. The lease benefits from a rent review on 18 April 2018 to thehigher of open market rent or the current passing rent.

Covenant Information Viridor Waste Management Limited (Company Number: 00575069) is a subsidiary of theFTSE 250 company Pennon Group plc. The company is a waste management andrecycling firm that operates over 320 facilities across the UK and has grown to be one ofthe UK’s leading recycling companies. The Property serves an important role as a vehiclemaintenance and vehicle storage facility for the Kent district fleet.

Viridor Waste Management Limited has a Dun & Bradstreet Rating of 5A1 representing a‘minimum risk of business failure’.

A summary of the tenant’s last three years of accounts is set out below:

Estate ChargeThere is an estate charge for the Property totalling £1,537.40 (£0.25 psf) for the yearending 2017. This is fully recoverable from the tenant.

VATWe understand the Property has been elected for VAT. It is anticipated the transactionwill be treated as a Transfer of a Going Concern (TOGC).

EPC RatingAn Energy Performance Certificate has been undertaken dated November 2017 providinga rating of C65. Further information is available on request.

Web Accesswww.cushwakesales.com/cw/lakesview

Occupational Market CommentaryRobust occupational demand and lack of supply in Kent continues to drive industrialrental tone upwards. Canterbury has seen industrial rents achieving between £8.00 -£9.00 psf for modern well specified industrial units, as demonstrated by the letting ofUnits 1&2 at Altira Park to Sunstone IP Systems at £8.00 psf on a 12 year term. TheProperty provides quality accommodation at a discount to these levels, albeit with strongprospects of rental growth.

Investment Market CommentaryThe industrial sector has proven to be one of the most attractive sectors over the last 18months due to the compelling fundamentals of a strong occupational market and goodrental growth prospects. This, along with limited speculative development and a lack ofgood quality availability, has helped drive yields to historic lows.

Year 31 March 2016 (£000’s) 31 March 2015 (£000’s) 31 March 2014 (£000’s)

Turnover £37,883 £411,512 £387,753

Pre-Tax Profit £32,942 £15,025 -£19,003

Net Worth £206,871 £220,239 £113,962

Date TenantArea (sq ft)

TownLeaselength

Price (£)

NIY(%)

Cap Val (psf)

August 2017CSC ComputerSciences Limited

24,343 Aylesford 10 years £3,000,000 5.35% £123

April 2017Inchcape EstatesLimited t/a Audi

10,740 Chartham 8 years £1,420,000 5.63% £132

TENANCY & COVENANT INFORMATION

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of acontract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4)Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or watercontamination. Interested parties are advised to carry out their own investigations if required.

November 2017 Production by PlusArt Limited 0115 972 4000

Cushman & Wakefield LLP43-45 Portman SquareLondon W1H 6LY

Tom CoakerE: tom.coaker@cushwake.comT: 020 7152 5357M: 07894 814 327

Russell NimmoE: russell.nimmo@cushwake.comT: 020 7152 5859M: 07726 947 276

Luke BlytheE: luke.blythe@cushwake.comT: 020 7152 5959M: 07793 808 510

PROPOSAL

We are instructed to seek offers in excess of £960,000 (Nine Hundred andSixty Thousand Pounds), subject to contract and exclusive of VAT for ourclient’s freehold interest. A purchase at this level reflects an attractive NetInitial Yield of 7.14% assuming purchaser’s costs of 5.71%