prime multi-let industrial estate...

Prime Multi-Let Industrial Estate InvestmentNimbus Park, Porz Avenue, Dunstable, LU5 5WZ

INVESTMENT SUMMARY

n The property is excellently located within the established industrial

area of Woodside Estate

n Modern 8 unit industrial estate totalling 12,922.98 sq.m (139,103 sq.ft)

n Unit sizes range from 8,551 sq.ft – 28,891 sq.ft

n Fully let producing a total income of £909,018 per annum –

low average rent of £6.53 per sq.ft

n WAULT to breaks 5.8 years and 8.8 years to expiries

n Significant reversionary potential based on recent letting evidence

n Offers sought in excess of £13,100,000

n Net initial yield 6.50% and a reversionary yield of 6.91%, assuming

costs of purchase of 6.72%

LOCATIONDunstable is an established commercial centre with a urban population of approximately 50,000 rising to 680,000 within a 12 mile radius. The town is located 35 miles north of central London, 5 miles west of Luton and 19 miles north of Watford.

The town benefits from excellent transport links with Junction 11 of the M1 motorway 2 miles east of the town centre. Additionally the northern Dunstable bypass, linking the A5 to a new junction of the M1 (Junction 11a) will lead directly to the main industrial areas of the town via the Woodside Link Road. The works connecting the link road to Junction 11a are scheduled for completion in early 2017. Works to widen the M1 between Junctions 10 and 13 have also considerably improved traffic flow in the area.

The town also has seen a significant upgrade to its transportation network with the opening of the Luton Dunstable Guided Busway, a fully automated tramway linking Luton, Dunstable and Houghton Regis.

Luton Airport is approximately 8 miles south east and Luton Central mainline railway station has a fastest journey time to London St Pancras of 21 minutes.

M1 J11A

Woodside Link Road

SITUATIONNimbus Park is situated within Dunstable’s prime industrial area of Woodside Estate, which extends to over 100 acres to the east and north east of Dunstable town centre. The park fronts onto Porz Avenue, a dual carriageway running along the northern boundary of the estate

connecting to Boscombe Road to the west and the new Woodside Link Road to the east. The town centre is 1 mile to the south west and both Junctions 11 and the new Junction 11a are both 1 ½ miles to the east.

Major occupiers in the vicinity include Superdrug, Aryzta Healthcare, WH Smith, DPD, Hermes, Whitbread, Amazon, Brakes, Lantec and 4XP.

WHITE LION RETAIL PARK

Poynters Road

Woodside Link RoadA505 Luton Road

M1 J11A M1 J11

DESCRIPTIONNimbus Park comprises a modern development, built in 2000, of eight industrial units arranged in three terraces. The property is accessed both directly off Porz Avenue to the south and off a side road off Porz Avenue to the east of the park.

The units are of steel portal frame construction with metal clad elevations and roofs. Each unit has integral two storey offices to the front elevations. Units 2-4 have one level access door to the front elevation, Units 1, 5 and 6 have two level access doors and Unit 7 and 8 have two level access loading doors and one dock level loading door.

Internally the units have eaves heights ranging from 7.75 metres to 8.50 metres. The office accommodation is fitted out to a modern specification with suspended ceilings, recessed light and air conditioning.

Parking is provided to the front of each unit with additional car parking to the eastern boundary and northern boundaries of the site.

Unit 5 is currently being refurbished as part of the new letting on this unit.

SITE AREAThe site extends to 4.03 hectares (9.95 acres). The property has a site density of 32%.

ACCOMMODATIONThe property extends to a total area of 12,922.98 sq.m (139,103 sq.ft) with individual unit sizes ranging from 794.41 sq.m (8,551 sq.ft) to 2,684.11 sq.m (28,892 sq.ft). Individual unit sizes are set out in the tenancy schedule.

6

3

1

2 8

7

Nimbus Park

Car Park

4

5

TENUREThe property is held freehold. There is a right of way for the neighbouring occupier, Whitbread, across the eastern access road highlighted in blue on the site plan, subject to a contribution towards the maintenance of the road.

TENANCIESThe property is currently producing an income of £909,018 per annum (average rent £6.53 per sq.ft). The WAULT to breaks is 5.8 years and to expiries is 8.8 years.

UNIT TENANTNAME

SIZESq.ft

LEASE STARTDATE

LEASE ENDDATE

WAULT TO EXPIRY

WAULT TO BREAK

NEXT REVIEW ANNUAL RENT

RENT £psf

ERV £pA ERV £pSF

BREAK DATE SofC CONTRACTED OUT

EPC RATING

COMMENT

Unit 1 Betterstore Self Storage Properties III Limited

20,357 24-Oct-07 23-Oct-32 16.19 16.19 24/10/2017 £123,462 £6.06 £147,588 £7.25 No No D77 Assigned with AGA from Betterstore Self Storage Properties I Ltd in June 2014. Unit fitted out as a self storage facility with 2 mezzanine floors.

Unit 2 Annodata Ltd 14,347 02-Sep-04 01-Sep-14 0.00 0.00 None due £87,230 £6.08 £104,016 £7.25 No No D82 Tenant holding over. S25 served for a new 10 year lease at £101,591 per annum (£7.00 per sq.ft). FRI with rent review on expiry of 5th year of the term. Tenant has confirmed it wants to renew. Tenant has installed a mezzanine of 4,483 sq.ft.

Unit 3 TA Hydronics Limited

12,127 19-Dec-04 18-Dec-19 3.34 3.34 25/12/2014 £73,839 £6.09 £87,921 £7.25 19/12/2014 No No D83 Lease guaranteed by IMI Kynoch Ltd. Rent review outstanding.

Unit 4 Iron Mountain (UK) Ltd

8,551 25-Mar-04 24-Mar-19 2.60 2.60 £74,588 £8.72 £64,133 £7.50 No No D90 Fixed uplifts 22/04/2017 to £72,768 per annum and 22/04/2018 to £74,588 per annum. Vendor to top up to 22/04/2018 fixed increase of £74,588 per annum. Tenant has installed a mezzanine of 4,448 sq.ft.

Unit 5 UNDER OFFER - Arjo.Med.Aktiebolag Ltd

13,285 31-Oct-16 30-Oct-26 10.21 10.21 31/10/2021 £96,316.00 £7.25 £96,316 £7.25 31/10/21 No No C64 Existing tenant vacanting on expiry. Lease in place to Box-IT Document Soluations expiring 31 October 2016. Current rent £90,629.50 per annum (£6.67 per sq.ft). Dilapidations settled with tenant refurbishing the property. New FRI lease agreed with ArjoHuntleigh UK Branch of Arjo.Med.Aktiebolag Ltd. 6 months rent free. 9 months notice required on break. Vendor to top rent up to new agreed rent of £98,448 per annum.

Unit 6 Electroversal Limited

18,217 22-Sep-14 21-Sep-29 13.10 5.10 22/09/19 £117,500 £6.45 £132,073 £7.25 21/09/2021 No No C52 6 months notice required on break. Tenant has installed a mezzanine of 3,779 sq.ft.

Unit 7&8 Magna Seating (UK) Ltd

52,219 11-Aug-15 10-Aug-25 8.99 3.78 11/08/2020 £336,083 £6.44 £334,202 £6.40 29/05/2020 No No C72 Break penalty £28,006.92. 6 months notice required on break. Tenant has installed a mezzanine of 2,023 sq.ft.

TOTAL 139,103 8.78 5.82 £909,018 £966,248

MARKET COMMENTARYThe Dunstable industrial market is characterised by its limited supply. There is currently under 9 months supply of available stock in the market, although this is dominated by Grade C stock. Take up to date in 2016 is approximately 765,000 sq.ft with 93,500 sq.ft currently under offer. Take up is dominated by units under 20,000 sq.ft and on refurbished/modern stock there is evidence of rental growth of up to 10% in the last 12 months.

The market continues to attract inward investment with 71% of the take up in 2016 from occupiers who are new to the region. The majority have relocated from north London locations where supply is severely constricted by redevelopment for alternative uses.

Taking into account recent letting evidence on the park we are of the opinion that the ERV for the estate is £966,248 per annum which reflects an average rent of £6.95 per sq.ft.

Annodata Ltd(Co. No. 2246366)

30/06/2015(£’000s)

30/06/2014(£’000s)

30/06/2013(£’000s)

Turnover 65,162 53,481 47,982

Pre Tax Profit (Loss) 6,250 5,259 699

Shareholders’ Funds 9,049 6,086 3,401

IMI Hydronic Engineering Ltd(Co. No. 2945254)

31/12/2015(£’000s)

31/12/2014(£’000s)

31/12/2013(£’000s)

Turnover 6,472 7,296 7,414

Pre Tax Profit (Loss) 61 281 263

Shareholders’ Funds 700 633 637

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

Betterstore Self Storage Properties III Ltd & Betterstore Self Storage Properties I LtdThe company trade as Storage King with 24 locations across the UK including seven serviced office centres. Betterstore is a Guernsey registered company. The company has undertaken a significant fit out to the unit including installing two mezzanine levels of storage accommodation.

Annodata LtdAnnodata Ltd is a leading national provider of communications, managed print and IT solutions with nine locations in the UK. The company’s clients include local councils, NHS, schools and commercial organisations. The company’s unit on the estate is used for storage and distribution of printing and scanning equipment. A summary of the company’s last three years accounts is set out below.

IMI Hydronic EngineeringIMI Hydronic Engineering is part of the global engineering group IMI Plc, a FTSE 100 company with revenues of over £1.5 billion. The company is a leading provider of green solutions for indoor climate control. A summary of the company’s last three years accounts is set out below.

Iron Mountain (UK) Ltd (Co. No. 1478540)

31/12/2014(£’000s)

31/12/2013(£’000s)

31/12/2012(£’000s)

Turnover 150,519 164,715 182,816

Pre Tax Profit (Loss) 31,732 23,495 21,520


Magna Seating (UK) Ltd (Co. No. 1478540)

30/06/2015(£’000s)

30/06/2014(£’000s)

30/06/2013(£’000s)

Turnover 24,598 31,754 47,034

Pre Tax Profit (Loss) (3,176) (4,539) (4,133)

Shareholders’ Funds (42) 3,134 (327)

ARJO.MED.AKTIEBOLAG Ltd (Co. No. 4565910)

31/12/2014(£’000s)

31/12/2013(£’000s)

31/12/2012(£’000s)

Turnover 106,512 108,271 96,987

Pre Tax Profit (Loss) 2,175 9,032 3,302


Iron Mountain (UK) LtdThe company is a leading global records management, data protection and data restoration organisation. The company is part of Iron Mountain Incorporated, a NYSE listed company with revenues of over $3 billion and 1,100 facilities in 37 countries. In UK over 85% of the FTSE 100 companies employ Iron Mountain as their information management partner. A summary of the company’s last three years accounts is set out below.

Magna Seating (UK) LtdThe company is a leading designer of seating systems for the global automotive industry. The company’s UK base is at the subject property. Globally the company employs 152,000 employees in 29 countries and 309 locations. The company manufacture and distribute vehicle seats at the property, mainly supplying seats for the Vauxhall Vivaro van which is manufactured at the Vauxhall plant in Luton (three miles from the property). A summary of the company’s last three years accounts is set out below.

ARJO MED AKTIEBOLAG Ltd t/a ARJO HuntleighARJO Huntleigh is a global provider of healthcare equipment, technical services and assessment services to the healthcare industry. The company employ over 750 in the UK and the company’s head office is already in Dunstable. The unit on the estate will be used for the laundry of hospital bedding and associated garments. A summary of the company’s last three years accounts is set out below.

Electroversal LtdThe company specialises in the repair and refurbishment of electronic office equipment and are based at the subject property. The company reported abbreviated accounts showing shareholder’s funds of £496,859 for 2015.

SERVICE CHARGEThe service charge for the current year from 1 January 2016 is £61,200 per annum (£0.44 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 £13,100,000 (Thirteen Million One Hundred Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 6.50% and a reversionary yield of 6.91%, assuming usual costs of purchase of 6.72%.

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 [email protected]

BEN BLACKWALL0121 513 [email protected]

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