Multi-Let Industrial Estate InvestmentUnits 1-32 Brackmills Industrial Estate, Kilvey Road, Northampton NN4 7EE

INVESTMENT SUMMARY

n The property is excellently located in Northampton’s prime industrial area

n Unbroken 31 unit industrial estate totalling 25,492 sq.m (274,396 sq.ft) on a site of 7.67 hectares (18.95 acres)

n Units are well configured and range from 2,920 sq.ft – 20,211 sq.ft

n Units are arranged in four distinct parts each with its own adopted estate road

n Let to 20 tenants producing a total income of £1,204,451 per annum – low average rent of £4.28 per sq.ft

n Two units vacant totalling 25,000 sq.ft

n WAULT to break 5.57 years and 6.01 years to expiry

n Opportunities to improve rents based on recent lettings on the estate and in close proximity or break up into four smaller industrial estates

n Offers sought in excess of £15,250,000

n Net initial yield 7.40% and a reversionary yield of 8.43%, assuming costs of purchase of 6.73%

n Capital value of £55.58 per sq.ft

LOCATIONNorthampton is 67 miles north west of London, 45 miles south east of Birmingham and 30 miles north east of Oxford. The town lies to the east of the M1 motorway with Junctions 15, 15a and 16 all serving the town.

The town’s main arterial roads include the A45, which leads eastwards towards Wellingborough and south towards Junction 15 of M1. The A4500 Weedon Road leads eastwards from Junction 16 into the town centre. The A508 leads north towards the A14 and south through the town and out to Junction 15.

Northampton’s primary catchment population is just under 475,000. The area is forecast to see significantly above average population growth. The East Midlands Regional Development Plan has allocated 128,000 new homes for the County by 2026.

M1 J15M1 J15A

A45

NORTHAMPTON TOWN CENTRE

SITUATIONThe property is situated on Harrowden Road, Gallowhill Road and Lyveden Road, all off Kilvey Road in the heart of Brackmills Industrial Estate, Northampton’s prime industrial area. The property has immediate access onto A45 dual carriageway, Northampton’s southern ring road, which provides direct access to Junction 15 of M1,

three miles to the south west. The A45 also provides access to the A14 to the east and subsequently the A1. Northampton town centre is three miles to the north.

Brackmills Industrial Estate has the largest concentration of national and regional distribution warehousing in

the UK as a result of its excellent road links and central location within the UK. The estate has attracted major occupiers including Coca Cola, Asda, Travis Perkins, Howdens, Jewson, John Lewis, Decathlon, DHL, Yodel, Wickes, Great Bear and GE Lighting.

ARTGROUP

A45

M1 J15

DESCRIPTIONThe property comprises an industrial estate of 31 units arranged in four distinct parts accessed off Harrowden Road, Kilvey Road, Gallowhill Road and Lyveden Road, all of which are adopted. The units are of steel portal frame construction with a combination of brick and metal profile clad elevations and metal profile clad roofs. The larger units have integral two storey offices to the front elevation. Within the warehouse areas the eaves heights range from 3.75 – 5.85 metres and each unit is accessed via a level access roller shutter door. Externally each unit has car parking and a large yard area to the front elevation.

The estate comprises a mixture of distribution, manufacturing and trade occupiers including many long standing tenants. Unit 5 has been converted into a children’s day nursery and Units 22 and 23 have been converted into a gym both with appropriate planning consents.

SITE AREAThe estate extends to 7.67 hectares (18.95 acres). The property has a site density of 33%.

ACCOMMODATIONThe property extends to a total area of 25,492 sq.m (274,396 sq.ft) with individual unit sizes ranging from 271.27 sq.m (2,920 sq.ft) – 1,877.65 sq.m (20,211 sq.ft). Individual unit sizes are set out on the tenancy schedule.

TENUREThe property is held freehold.

TENANCIESThe property is currently producing an income of £1,204,451 per annum (low average rent of £4.28 per sq.ft). The WAULT to breaks is 5.57 years and to expiries is 6.01 years. 65% of the new lettings/lease renewals agreed in the last 24 months have been for minimum 10 year terms.

The tenant of Units 9-12 is currently paying a fit out rent of £132,698 per annum for works carried out to the unit which the vendor contributed towards. The fit out rent is for a term of 5 years expiring on 11 April 2021.

Unit 8 and Unit 21 are currently vacant.

28

3231

3029

20

12

7

8

9

5

4

1-3

1011

1819

17

16

1514

13

21

27 26 2522

23

24

Units 11 & 12

UNIT TENANTNAME

SIZESq.ft

LEASE STARTDATE

LEASE ENDDATE

WAULT TO EXPIRY

WAULT TO BREAK

NEXT REVIEW

ANNUAL RENT RENT £psf

BREAK ERV £pA ERV £pSF SofC CONTRACTED OUT

EPC RATING

COMMENT

Units 1-3 Photo Corporation (UK) Ltd 15,445 24/06/15 27/06/23 6.86 6.86 01/07/17 £63,000 £4.08 £69,503 £4.50 Yes No U1 - D76

U2 - C68

U3 - E113

Tenant has been in occupation from 2002. Tenant has installed a

mezzanine of 728 sq.ft in Unit 3.

Unit 4 Goaudiovisual Limited 2,963 21/07/16 20/07/21 4.93 1.92 21/07/2021 £17,000 £5.74 20/07/18 £17,037 £5.75 Yes Yes E114 Rent deposit £6,070.88 6 months notice required on the break.

Unit 5 Nurtury (Northants) Ltd 2,949 18/07/10 17/07/20 3.92 3.92 01/07/2015 £15,750 £5.34 £16,957 £5.75 No No C72 Run as a child care nursery. Rent review outstanding.

Unit 7 Western Power Distribution

(East Midlands) PLC.

12,868 14/07/14 13/07/24 7.91 7.91 14/07/2019 £49,500 £3.85 £57,906 £4.50 Yes No C69

Unit 8 VACANT UNIT 12,500 £0 £0.00 £56,250 £4.50 E110

Units 9 & 10 Doosan Industrial Vehicle UK Ltd 26,000 12/04/16 31/03/26 9.62 9.62 12/04/2021 £111,490 £4.29 £110,500 £4.25 Yes No D81 Lease guaranteed by Rushlift Ltd & Rushlift Holdings Ltd.

Units 11 & 12 Doosan Industrial Vehicle UK Ltd 39,474 08/01/16 31/03/26 9.62 9.62 08/01/2021 £165,818 £4.20 £167,765 £4.25 Yes No U11 - D89

U12 - C63

Lease guaranteed by Rushlift Ltd & Rushlift Holdings Ltd.

Fit Out Rent

Units 9, 10, 11

& 12

Doosan Industrial Vehicle UK Ltd 12/04/16 11/04/21 4.65 4.65 £132,698 £132,698 Fit out rent for works carried out to Unit 11 & 12 which were

funded by the Vendor and are to be paid back by the tenant over

a perio of 5 years at an interest rate of 7%.

Unit 13 Northamptonshire Electrical

Wholesalers Ltd

2,920 19/02/15 18/02/20 3.51 3.51 19/02/2018 £15,500 £5.31 £16,790 £5.75 No Yes E102 Rent deposit of £4,603.70 held.

Unit 14 Photo Corporation (UK) Ltd 2,933 30/04/14 27/06/23 6.86 6.86 01/07/2017 £15,000 £5.11 £16,865 £5.75 Yes No E118

Unit 15 Willow Communications Ltd 4,882 01/11/08 31/10/18 2.21 2.21 £26,650 £5.46 £24,410 £5.00 No No E106 Rent deposit of £5,114.84 held.

Unit 16 Falcon Flooring (Towcester) Ltd 4,922 04/01/16 03/01/26 9.39 3.38 04/01/2021 £23,500 £4.77 04/01/2020 £24,610 £5.00 No Yes E112 Tenant has additional break on 4 January 2023. 9 months notice

required on break. Break penalty equivalent to 3 months rent.

Unit 17 KCOM Group Plc 4,910 13/03/01 12/03/26 9.57 4.57 13/03/2016 £23,000 £4.68 13/03/2021 £24,550 £5.00 No No E109 6 months notice required on break. Rent review outstanding.

Units 18,19

& 20

Bluefish Office Products Ltd 37,547 23/06/15 29/04/20 3.70 3.70 £159,375 £4.24 £159,575 £4.25 Yes No U18 - D81

U19 - C70

U20 - D76

Schedule of condition on Unit 18 only.

Unit 21 VACANT UNIT 12,500 £0 £0.00 £53,125 £4.25 C68

Unit 22 Image Gym Ltd 4,945 16/02/14 15/02/24 7.50 7.50 16/02/2019 £22,200 £4.49 £24,725 £5.00 No No C55 Rent deposit £11,100 - this includes Unit 23.

Unit 23 Image Gym Ltd 4,945 16/02/14 15/02/24 7.50 7.50 16/02/2019 £22,200 £4.49 £24,725 £5.00 No No C55

Unit 24 Streamline Panels and

Assemblies Ltd

4,917 28/04/09 27/04/14 0.00 0.00 £23,500 £4.78 £24,585 £5.00 Yes Yes D90 Tenant is holding over.

Unit 25 Ever Flex (UK) Ltd 2,942 19/06/13 18/06/18 1.84 1.84 £17,000 £5.78 £16,917 £5.75 Yes Yes E106 Guarantor Ever-Flex, Inc.

Unit 26 Paul Wickendon t/a Crescent

Autos

2,958 28/08/14 27/08/24 8.03 8.03 28/08/2019 £15,000 £5.07 £17,009 £5.75 Yes Yes C67 Rent deposit of £3,766.59 held.

Unit 27 Automotive Technology (UK) Ltd 2,942 24/07/12 23/07/17 0.93 0.93 £17,000 £5.78 £16,917 £5.75 Yes Yes D78 Rent deposit of £6,286.58 held.

Unit 28 ACS Systems UK Ltd 2,953 21/06/15 20/06/20 3.84 1.84 £17,500 £5.93 20/06/2018 £16,980 £5.75 Yes Yes E122 6 months notice required on the break.

Unit 29 Fablink UK Limited 12,500 23/04/07 22/04/12 0.00 0.00 £56,250 £4.50 £56,250 £4.50 No No D76 Rent deposit of £25,526.98 held. Tenant holding over.

Unit 30 Ainsworth Insulation Supplies 12,416 16/09/14 15/09/29 13.09 8.09 16/09/19 £49,500 £3.99 16/09/24 £55,872 £4.50 Yes Yes D81 Rent deposit of £12,051.71 held. 6 months notice required on

the break.

Unit 31 Midland Filter Products Limited 20,211 01/04/11 31/03/21 4.62 4.62 01/04/2016 £86,000 £4.26 31/03/18 £85,897 £4.25 No Yes D91 Rent deposit of £26,119.93 held. 6 months notice required

on the break. March 2016 break not excercised. Rent review

outstanding.

Unit 32 In 4 Ltd 19,854 25/09/13 24/09/18 2.10 2.10 25/09/2016 £60,000 £3.02 £84,380 £4.25 No Yes D98

Substation G The British Gas Corporation 0 01/02/79 01/02/00 0.00 0.00 £10 £10

Substation E East Midlands Electricity Plc 0 11/11/76 10/11/18 2.23 2.23 £10 £10

TOTAL 274,396 6.01 5.57 £1,204,451 £1,372,814

Company % Income

Term Certain Years

Accounting Year

Turnover £,000

Pre Tax Profit/(Loss)

£,000

Shareholders’ Funds

Photo Corporation (UK) Ltd

6.50% 6.86 31/12/2014 18,939 474 926

Western Power Distribution (East Midlands) Plc

5.0% 8.02 31/03/2016 451,000 206,600 1,006,900

Doosan Industrial Vehicle UK LtdRushlift Ltd (guarantor)

34.0% 9.50 31/12/2015

31/08/2014

19,375

28,575

549

2,071

43,930

11,052

KCOM Group Plc

2.0% 9.57 31/03/2015 347,984 16,693 63,879

Bluefish Office Products Ltd

13.3% 3.81 31/05/2015 18,283 1,061 2,728

COVENANTSSet out below is a summary of the main covenants on the estate.

MARKET COMMENTARYThere is currently an acute shortage of available small unit industrial stock in Northampton. There are now only 15 units available under 30,000 sq.ft in the town. With occupational demand still strong it is likely that this available stock will be taken up in the short term. The result of this has seen rental growth of over 10% over the last 12 months on new lettings on the subject estate and in the immediate vicinity. The only speculative development of small units in the vicinity is at Tungsten Trade Park, which is currently under construction (PC due in February 2017). Quoting rents on the scheme range from £6.50-£10.00 per sq.ft.

Recent comparable evidence in the vicinity includes:

Based on recent evidence our view of ERV for the estate is £1,372,814, showing an increase of 14.3% from the current passing rent.

Address Tenant Areasq.ft

Transaction Type

Transaction Date

Rent £per sq.ft

Unit F8 Weddell Way, Brackmills Industrial Estate

Indica Automotive

13,014 Open Market Letting

February 2016

£4.52

Unit E1 Brackmills Industrial Estate

Eriks Industrial Services

19,297 Open Market Letting

February 2016

£4.52

Unit 15 Grafton Industrial Estate, Northampton

Fox Express 3,908 Open Market Letting

March 2016 £5.98

Unit 5 Grafton Industrial Estate, Northampton

Poldi 5,553 Open Market Letting

April 2016 £5.98

Unit 9 Fleming Close, Wellingborough

Zest Cleland 4,424 Open Market Letting

December 2015

£5.73

Units 25 - 28

Units 22 - 24 Units 1 - 5

SERVICE CHARGEThe service charge for the current year from 1 January 2016 is £25,000 per annum (£0.09 per sq.ft).

VATThe property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC.

EPCsThe ratings for the individual units are set out in the tenancy schedule. Certificates are available on request.

PROPOSALWe are instructed to seek offers in excess of £15,250,000 (Fifteen Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 7.40% and a reversionary yield of 8.43%, assuming usual costs of purchase of 6.73%. The capital value is £55.58 per sq.ft.

FURTHER INFORMATIONThere is further information set out in a dataroom. For access to the dataroom or to arrange an inspection of the estate please contact.

Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Franck Steier Price Ltd

Third Floor, Victoria House

114-116 Colmore Row,

Birmingham, B3 3BD

ANDREW PRICE0121 513 0892andrew.price@fspproperty.co.uk

BEN BLACKWALL0121 513 0893ben.blackwall@fspproperty.co.uk

Units 15 - 17