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R E V E R S I O N A R Y M U L T I - L E T I N D U S T R I A L I N V E S T M E N T O P P O R T U N I T Y

STUKELEY MEADOWS INDUSTRIAL ESTATE

ST. MARGARET’S WAY, STUKELEY MEADOWS INDUSTRIAL ESTATE, HUNTINGDON PE29 6EB

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TOWER FIELD PARK

STUCKLEY ROAD RETAIL PARK

ONE LEISURE PARK

STUKELEY MEADOWS

INDUSTRIAL ESTATE

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INVESTMENT CONSIDERATIONS

• Modern industrial estate located centrally within Stukeley Meadows Industrial Estate, Huntingdon

• Excellent access to the A141, A1 and A14

• Strong trade occupier line up, with tenants including; Howden Joinery, Eurocell Building Plastics and Kent Blaxill & Co Limited

• The estate comprises 8 units arranged in 2 terraces, providing a total area of 29,125 sq ft

• Fully let to 7 tenants, with a total passing rent of £186,395 per annum, equating to £6.40 psf overall

• Units 5&6 under offer at £7 psf, demonstrating the excellent reversionary potential

• WAULT of 5.2 years to expiries and 4.4 years to breaks

• Site area of approximately 1.87 acres providing a low site cover of 36%

PROPOSAL

We are instructed to seek offers in excess of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT for the freehold interest. A purchase at this level reflects a Net Initial Yield of 5.83% and a Reversionary Yield of 6.15%, assuming purchaser’s costs of 6.42%.

DATA ROOM

For further information, please access the data room via the following link:

https://datarooms.allsop.co.uk/register/huntingdon

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Huntingdon is a market town in East Anglia situated on the River Ouse. The town is located 18 miles (29 km) north west of Cambridge, 19 miles (31 km) south of Peterborough, 69 miles (111 km) north of London and 38 miles (61 km) east of Northampton.

Huntingdon is situated on the A14 dual carriageway which is the key link road between Felixstowe in the east and Birmingham to the

west. The A14 also connects Huntingdon to the A1(M), 3 miles (4.8km) to the west, which is a key north south arterial link.

The town benefits from a quick and regular rail service to London Kings Cross with a fastest journey time of 45 minutes. Luton and Stansted Airports are 41 miles (66 km) and 54 miles (87km) respectively to the south.

LOCATION

SITUATION

The property is situated approximately 1 mile (1.6 km) north of Huntingdon town centre on the junction of St Margarets Way and Stonehill with access being directly off Stukeley Road and the A141.

The property sits centrally within the wider Stukeley Meadows Industrial Estate, approximately 500m north of Stukeley Retail Park and 1 mile south of Towerfields Leisure Park. Stukeley Meadows forms the primary trade location in Huntingdon attracting a large number of national occupiers including: Howdens (subject property), Halfords, Screwfix, Wickes, Ford and Dunelm.

POND CL

PROVENCE RD

PARKWAY

OSPREY CL

CROMWELL DR

KINGFISHER WAY WERTHEIM WAY

A141

A14

A14

A14

A14

S

T MARGARETS WAY

STANTON WAY

BLACKSTONE RD

B1044 STUKELEY ROAD

ERMINE ST

SALON WAY

WERTHEIM WAY

WERTHEI

M W

AY

STONEHILL

A141

Bath

A148

A149

A1

A66

A19

A19

Cardiff

Newport

Swansea

CheltenhamGloucester

Weston-super-Mare

TorquayPlymouth

Oxford

Milton Keynes

Reading

Maidenhead

Swindon

Aylesbury

High Wycombe

Basingstoke

Guildford

London

Birmingham

Crawley

Maidstone

RoyalTunbridge Wells

Chelmsford

Colchester

Ipswich

Northampton

Bedford

Cambridge

Norwich Great Yarmouth

Lowestoft

King’s Lynn

Newmarket

Bury St Edmunds

Thetford

StevenageLuton

Leicester

Coventry

Worcester

Telford

Stoke-on-Trent

Wrexham

Colwyn Bay

Derby

EAST MIDLANDSAIRPORT

Nottingham

Manchester

Sheffield

LeedsBradford

York

Liverpool

Preston

BlackburnBurnley

Harrogate

MiddlesbroughDarlington

Hartlepool

Durham

Newcastleupon Tyne

EdinburghGlasgow

Falkirk

Stirling

Aberdeen

Perth

Dundee

Inverness

Exeter

Southampton

PortsmouthBournemouth Brighton

Eastbourne

Southend-on-Sea

DoverFolkestone

Kingston upon Hull

Scarborough

Grantham

Skegness

Doncaster Grimsby

ScunthorpeBarnsley

Carlisle

Dumfries

SalisburyWinchester

Newport

M53

M57

M55

M62M62

M61

M56

M56

M65

M18

M62

M180

M62

M1

A1(M)

A1(M)

M6

M6

M5

M5

M4

M25

M23

M20

M40

M40

M4

M3

A4

M3

M1

M1

M1

M1

M1

M1

M6

M11

M25

A1(M)

A1(M)

A1

A1 A14

A1(M)

M25M4

M5

Chester

Southport

Blackpool

M6

M6

Sunderland

L u t o nA i r p o r t S t a n s t e d

A i r p o r t

H e a t h r o wA i r p o r t

HUNTINGDON

Peterborough

Maps are not to scale - for identification purposes only

Maps are not to scale - for identification purposes only

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DESCRIPTION

The property comprises two high quality single storey terraces of four trade/industrial units totalling 29,125 sq ft (2,705.80 sq m). The units are of steel portal frame construction with full height brick and blockwork elevations beneath pitched roofs with integrated roof lighting. The external elevations are part brick, part steel clad. Each unit has a single overhead sectional roller shutter door with separate pedestrian access and fire escape doors to the rear.

Internally the units benefit from concrete slab flooring, office and w/c facilities to front elevations and minimum eaves of 4.75m. The individual tenants have fitted out their units to suit their own requirements.

Externally, two concrete service yards are provided between the two terraces and to the rear of units 5-8 with access from St Margarets Way. The yard areas provide good circulation space as well as approximately 45 car parking spaces.

SITE

The property has a site area of 1.87 acres (0.76ha) providing a low site coverage of approximately 36%.

TENURE

Freehold

12.8m

ST MARGARETS W

AY

1

6

5 to 8

LB

9

1

2

6

Phoenix Court

2

3

21

4

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1025

Maps are not to scale - for identification purposes only

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The property comprises eight units let to seven tenants on FRI leases. Total passing income is £186,395 per annum, reflecting a low average rent of £6.40 psf.

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides a Gross Internal Area (GIA) of 29,125 sq ft.

TENANCY

WAULT

The WAULT to break is 5.2 years to expiries and 4.4 years to breaks.

SERVICE CHARGE

The service charge budget is £18,265 per annum which equates to a rate of £0.63 psf. Further details are available in the data room.

UNIT NO. TENANT AREA

(SQ FT)LEASE START

LEASE EXPIRY BREAK NEXT

REVIEWRENT

(PA) RENT (PSF)

ERV (PA)

ERV (PSF)

WAULT (EXP)

WAULT (BRK) COMMENTS

1 Kent Blaxill & Co Ltd 3,038 07/04/2014 06/04/2024 06/04/2019 06/04/2019 £18,800 £6.19 £21,266 £7.00 5.9 0.8 Break option subject to 6 months notice.

Schedule of Condition.

2 Eurocell Building Plastics Ltd 3,197 13/11/2015 12/11/2020 £22,300 £6.98 £22,379 £7.00 2.5 2.5

Schedule of Condition. Service Charge Cap of £2,031 p.a. subject to increase in line with RPI.Tenant can assign to Eurocell Group Limited without consent provided Eurocell Group Limited is not of a lesser financial standing and notice of assignment is given.

3 RDR Aerospace Ltd 2,360 05/02/2018 04/02/2023 05/02/2020 £15,750 £6.67 £16,520 £7.00 4.7 1.7Break option subject to 6 months notice - £3,750 penalty.£3,750 rent deposit.

4 Blue Web Retail Ltd 5,647 01/11/2013 31/10/2018 £30,870 £5.47 *£32,053 £7.00 0.4 0.4

Area includes 1,424 sq ft mezzanine. Unoccupied. Tenant vacating on expiry. Currently marketing at £7.25 psf for warehouse with £1.80 psf (25% of rent) on the mezzanine.

5&6 Howden Joinery Properties Ltd 8,944 New

lease tbc10 years from

start date 5 yearly £62,700 £7.00 £62,700 £7.00 10.0 10.0Guarantor: Howden Joinery Ltd. Renewal agreed at £62,700pa, initial 8m at half rent. Vendor to top up.

7 Decoris Furniture Ltd 2,966 17/11/2014 16/11/2019 £17,975 £6.06 £20,762 £7.00 1.5 1.5Schedule of Condition.Guarantor: Arthurs Services Ltd.Rent Deposit £4,494.

8 Hire or Buy Group Ltd 2,973 05/12/2012 04/12/2021 05/12/2018 £18,000 £6.05 £20,811 £7.00 3.5 3.5

29,125 £186,395 £6.40 £196,491 £6.75 5.2 4.4

*ERV assumes 0.25% on mezzanine.

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ASSET MANAGEMENT INITIATIVES

INVESTMENT MARKET TRANSACTIONS

The current income profile provides the opportunity to renew up to 57% of the income within a 24 month period. Given the under-rented nature of the investment, this will provide the ability to significantly enhance the rent roll in the short term.

Two of the tenants have break options within the next 24 month period providing the purchaser with the opportunity to extend the term certain and add value through removal of these break options.

Unit 4 is unoccupied which provides the purchaser with the opportunity to increase the rental tone through a new letting. This will enhance total income whilst adding value through increasing the overall term certain.

DATE ADDRESS AREA (SQ FT) WAULT PRICE (£M) NIY CAP VAL £PSF

Under Offer Units 10-15 Petersfield Business Park, Petersfield 26,718 7.3 £3.822m 5.00% £143

Apr-18 Access 4:20, New Hythe Business Park, Aylesford 47,856 9.3 £7.96m 4.60% £166

Apr-18 Doranda Way Industrial Park, West Bromwich 152,311 3.4 £14.68m 5.18% £96

Apr-18 Sky Business Park, Egham 27,960 3.7 £6.525m 4.55% £233

Apr-18 Mill River, Enfield 93,786 2.3 £18m 4.00% £192

Jan-18 Quarry Wood Portfolio 191,216 5.8 £26.5m 5.05% £139

Dec-17 Boundary Way, Hemel Hempstead 61,776 3.8 £13.2m 4.40% £226

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ADDITIONAL INFORMATIONVAT

The property is VAT elected. It is therefore assumed the purchase will be treated as a Transfer of a Going Concern.

EPC

Available upon request.

PROPOSAL

We are instructed to seek offers in excess of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT for the freehold interest. A purchase at this level reflects a Net Initial Yield of 5.83% and a Reversionary Yield of 6.15%, assuming purchaser’s costs of 6.42%.

DATA ROOM

For further information, please access the data room via the following link:

https://datarooms.allsop.co.uk/register/huntingdon

CONTACT DETAILSFor further information, or to arrange inspections, please contact:

Important Notice

The information contained in this document has been compiled by Savills (UK) Limited and Allsop LLP from various sources and includes material which may have been provided by various sources but which has not been verified or audited. This document also contains confidential material proprietary to Savills (UK) Limited and Allsop LLP. Whilst every care has been made to ensure the information contained within is accurate, no representation is made or warranty given in respect of such information. No reliance may be placed for any pur-poses whatsoever on the contents of this document or its completeness. No representation or warranty, express or implied, is given and no responsibility, liability is or will be accepted by or on behalf of Savills (UK) Limited and Allsop LLP or by any of its directors or employees or any other person as to the accuracy, completeness or correctness of the information contained in this document or any other oral information made available and any such liability is expressly disclaimed.

In this document references to Savills are references to Savills (UK) Limited. Savills (UK) Limited is a UK private limited company registered in England with Company No. 2605138 and registered office at 33 Margaret Street, London W1G 0JD, UK. Savills (UK) Limited is a member of the Savills plc group of companies.

© 2018 Savills (UK) Limited. All rights reserved. Designed by Savills Marketing: 020 7409 8834 | June 2018

GUY SCOTT PLUMMER +44 (0) 20 7543 6726 +44 (0) 7815 960 990guy.scott-plummer@allsop.co.uk

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JAMES SALMON+44 (0) 20 7543 6880+44 (0) 7720 400 306 james.salmon@allsop.co.uk

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