NORTH MANCHESTER • M26 2W XMorrisons Distribution Warehouse

Freehold

• Extensively refurbished prior to current occupation

• 151,423 sq ft on a 9 acre site (39% site cover)

• A new lease has been signed by Wm Morrison Supermarkets Plc from 21st November 2018 to 21st April 2027

• Rental of £625,000 per annum reflecting a low rent of £4.13 psf

• The unit has been partially fitted as a cold store by the tenant

• Freehold

• Offers sought in excess of £7,814,000, subject to contract and exclusive of VAT, assuming purchaser’s costs of 6.66%

• Attractive Net Initial Yield of 7.50% (based on reversionary rent)

• Low price of £52 psf

01 INVESTMENT SUMMARY

STRATEGIC LOCATION NEXT TO JUNCTION 2 OF THE M66 AND

JUNCTION 18 OF THE M60 AND M62

STRATEGIC LOCATION NEXT TO JUNCTION 2 OF THE M66 AND

JUNCTION 18 OF THE M60 AND M62

02 LOCATIONThe property is located 1.5 miles to the north east of Radcliffe town centre and 1.6 miles to the south west of Bury. It is situated just off Bury Road connecting Radcliffe to Bury. Bury is centrally located 11 miles to the north of Manchester City Centre.

Bury is a strategic distribution location with excellent connectivity to the national motorway network, being approximately 0.2 miles from the M66 Motorway (Junction 2). With easy access to the motorway via the A58, Rochdale Road, the M66 provides immediate access to both the M60 and M62 (junction 18) to the south. The towns excellent road communications allow a Greater Manchester catchment of over 2.5 million people to be reached.

Bury Metrolink is located approximately 1.5 miles from the subject property with a travel time of approximately 30 minutes. Bury Interchange is approximately 1.5 miles from the subject property and East Lancashire Railway is 1.9 miles. Manchester Airport is located 23 miles to the south with a drive time of 34 minutes and Liverpool John Lennon Airport is located 36 miles to the west with a drive time of 52 minutes. For sea freight the port of Liverpool can be reached within 1.15 hours.

M60

M60

M62

M66

M61

M62M6

A666

A58

A580

A580

BOLTON

SWINTON

SALFORD MANCHESTER

ROCHDALE

WIGAN

14

17

5

12

13

11

7

18/4

3

19

Radcliffe

Whitefield

Queens RoadQueens Road

Bury BURY

B

URY

RO

AD

RAD

CLIFFE R

OAD

PARKHILLS ROAD

B

621

9A58 BO

LT

O

N ROAD A5

8 JUBILEE WA Y

A5 8 ROCHDALE ROAD

A56

MA

NC

HEST

ER R

OA

D A

56

B622 2

A56 P E EL WAY

A6053 D

UMERS LANE

M

66

M6

6

M60

BU

RY NEW

RO

AD

A56

A6053

RADCLIFFE NEW ROAD A665

RINGLEY ROAD A667

A56

A58

A58 ROCHDALE ROAD

CRO

FT L

ANE

PIL

SWORTH

RO

AD

M66

M66

M60

3

2

18/4

03 SITUATIONBury Point is located equidistant between Bury and Radcliffe. It is accessed via an estate road at the intersection of Bury Road and Radcliffe Road. Directly to the East is a small industrial estate located on Dumers Lane. Dumers Lane industrial estate is home to a mixture of retail manufacturers, self-storage companies and trade-counter occupiers. To the north east and south is mainly residential and greenfield land.

04 LOCAL OCCUPIERS

SAMBRO

TELEFONICA

THUMBS UP

BRACKEN TRADE PARK

PROPOSED RESIDENTIAL DEVELOPMENT

BY COUNTYSIDE

BURY SOUTH BUSINESS PARK

05 DESCRIPTIONThe property comprises a substantial refurbished warehouse unit located on a self-contained secure site of approximately 9 acres (3.64 ha).

The warehouse has an eaves height of 7.8m with bays accessed via a combination of 16 dock level doors and 1 drive in access door. Internally the warehouse has a concrete floor with profile sheet cladding to the roof and incorporated translucent light panels.

There is a separate two storey office building which has been refurbished to a high standard including perimeter trunking, suspended ceilings, passenger lift and air conditioning. It is accessed via a staircase and a ramp which overlooks the western side of the site.

The yard features a substantial concrete area with parking for 37 trucks and 139 cars and a self-contained detached vehicle maintenance unit. The property has a maximum yard depth of 125m.

The unit has been partially fitted out by the tenant as a cold store.

06 ACCOMMODATIONWe understand that the property provides the following

SQ FT SQ M

Warehouse 141,866 13,180

6,842 636

VMU 2,715 252

Total 151,423 14,068

WAREHOUSE

WAREHOUSE

OFFIC

ES

VMU

For indicative purposes only

The office content is therefore approximately 4.5%.

07 SITEThe site has a total area of approximately 9 acres (3.64 hectares), providing a low density of approximately 39%.

GATEHOUSE

06 ACCOMMODATIONWe understand that the property provides the following approximate gross internal floor areas:

SQ FT SQ M

Warehouse 141,866 13,180

Offices 6,842 636

VMU 2,715 252

Total 151,423 14,068

The office content is therefore approximately 4.5%.

07 SITEThe site has a total area of approximately 9 acres (3.64 hectares), providing a low density of approximately 39%.

08 TENANCYA new lease has been signed by Wm Morrison Supermarkets plc which commences on 21st November 2018, expiring on 21st April 2027, subject to tenant only break options on 21st April 2021 and 21st April 2024 upon 6 months’ written notice. If either break is exercised there will be a 3 month rent penalty payable by the tenant. If the tenant does not exercise their first break option, they will receive a 3 month rent free period.

The new rental is £625,000 per annum, which reflects £4.13 per sq ft, subject to 9 months’ rent free (to be topped up by the vendor).

The lease is subject to a schedule of condition.

09 COVENANTSWm Morrison Supermarkets Plc

Registered Company Number: 00358949

D&B Rating: 5A1

04/02/18 29/01/17 31/01/16 01/02/15

Turnover £17,262,000,000 16,317,000,000 16,122,000,000 16,816,000,000

Pre-tax Profit £380,000,000 325,000,000 217,000,000 (792,000,000)

Shareholder’s Funds £4,545,000,000 4,063,000,000 3,756,000,000 3,594,000,000

Wm Morrison Supermarkets Plc, trading as Morrisons, is the fourth largest supermarket chain in the UK. The company was founded in 1899 by William Morrison and is listed on the London Stock Exchange, being part of the FTSE 100 Index. The Morrison family currently owns approximately 10% of the company.

Until 2004, Morrisons store locations were primarily focused in the North of England, but with the takeover of Safeway in that year, the company’s presence increased significantly in the South of England, Wales and Scotland. The company has approximately 500 stores across England, Wales and Scotland.

Morrisons originally employed Bury Point to service their supermarket chain, however today the unit serves the convenience shop chain McColls, since signing a supply deal with Morrisons in 2017. McColls, which has 1,300 convenience shops and 350 newsagents across the country, will be exclusively supplied with around 400 Safeway own-brand products. The chain will also benefit from Morrisons’ fresh food offer, including its bakery and sandwiches, as well as benefitting from the Bradford-based supermarket’s corporate purchasing power. The revival of the Safeway brand comes more than 13 years after Morrisons bought the supermarket in a £3bn deal.

10 OCCUPATIONAL MARKETThe North West occupational market has remained buoyant, despite the result of the EU referendum, thanks to the continued growth of online sales which is driving strong occupier demand.

Online retailers have accounted for a significant proportion of take up in the North West since 2016, acquiring a combination of refurbished second-hand and new build stock. There is also a healthy local demand from both distribution and manufacturing sectors, particularly in North and East Manchester close to the M62.

The North West saw one of the highest growth rates in the UK in 2017 with prime rents now at £6.50 per sq ft on Trafford Park. This should see the rents for good quality secondary space rise as a result of the continued demand and lack of supply.

DATE ADDRESS TENANT/ PURCHASER SQ FT RENT/PRICE

PER SQ FT GRADE

Oct 18 Link 95, Hareshill Business Park, Heywood McCormick 95,000 £6.35 A

July 18 T2, Trafford Point, Manchester Globus 98,000 £6.50 A

July 18 Stakehill 104 Parcel Force 104,000 £4.85 B

Mar 18 The Depot,Ashton under Lyne

Belfield Furnishings 93,625 £4.25 B

Feb 18 Sigma 110, Blackburn

Mardix Group 110,000 £6.25 A

Feb 18 Space 170, Liverpool TJ Hughes 170,000 £4.17 C

Jan 18 Target M62, Stakehill Toolstation 148,748 £5.15 B

Oct 17 Galaxy 173 SCM Home 173,000 £49.13 B

Jul 17 Unit A, Stakehill Industrial Estate Footasylum 143,873 £4.75 B

Feb 17 M1, Heywood Distribution Park Kleeneze 101,000 £4.50 B

11 INVESTMENT COMPARABLESAside from some uncertainty caused by the Brexit vote, the North West industrial investment market has remained robust with pricing achieved seen to be above Brexit levels in many cases. Demand has remained very strong for logistics assets due to the continued lack of stock. Those assets that have been sold or are available across the North West, are presenting investors and developers with very good opportunities for rental growth.

DATE PROPERTY BUILT TERM CERTAIN PRICE NIY PURCHASER

Nov 18 The Depot, Ashton Under Lyne 1990’s 5.75

yearsQuoting 5.15m

Quoting 7.25% Under offer

Sept 18 DHL Bardon 1992 1.85 years £22m 5.50% Oxenwood

May 18 Talke 16, Stoke on Trent 1990s 10 years £12.4m 6.46% Clearbell

Jan 18Proseat, StakehillIndustrial Estate,M24 2SJ

1990s 6 years £6.28m 6.94% UBS

Dec 17Buffaload LogisticsLtd, Crewe,CW1 6YY

1970s 9.5 years £11.38m 7.00% Atlantic Leaf

Nov 17Footasylum Plc, Stakehill Industrial Estate, Middleton

1990 5 years £3.50m 6.20% Rochdale Council

Sept 17Target M62, Stakehill Industrial Estate, M24 2RP

1980s 15 years £13.85m 5.25% IM Properties

May 17Combined Independents Ltd, Summit 86, Preston

1991 5 years £4.90m 7.42% Threadneedle

12 TENUREThe property is held freehold.

14 VATThe property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).

13 EPCThe Energy Performance Certificate rating is as follows: C(63).

15 CAPITAL ALLOWANCES

No Capital Allowances are available.

15 PROPOSALOffers sought in excess of £7,814,000, subject to contract and exclusive of VAT, assuming purchaser’s costs of 6.66%. A purchase at this level will reflect an attractive Net Initial Yield of 7.50% (based on reversionary rent) and a low price per sq ft of £52.

John Bartonjohn@bcrealestate.co.uk0161 636 9202

John Adcock john.adcock@dtre.eu0203 328 9088

Dowley Turner Real Estate LLP on its 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. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them.3. No person in the employment of Dowley Turner Real Estate LLP has any authority to make any representation or warranty whatsoever in relation to this property.4. Unless otherwise stated, all priced and rents are quoted exclusive of VAT. November 2018.

Tom Fairlietom.fairlie@dtre.eu0203 328 9084

Gary Chapmangary@bcrealestate.co.uk0161 636 9202

16 FURTHER INFORMATIONFor further information, access to the Data Room or to arrange an inspection please contact: