SOUTH EAST MULTI-LET

INDUSTRIAL ESTATE

INVESTMENT

Sandhurst Industrial Estate• Vulcan Close • Vulcan Court • Vulcan Way Sandhurst, Berkshire GU47 9DB

• Unique proposition to acquire a 7.49 acre industrial estate in the affluent town of Sandhurst.

• 33 unit scheme comprising predominately warehousing, totalling 81,822 sq ft GIA.

• A range of unit sizes let to a mix of national and local occupiers.

ProposalOur client is seeking offers in excess of

£13,800,000 (Thirteen million, eight

hundred thousand pounds), subject to

contract and exclusive of VAT. A purchase

at this level reflects a net initial yield of

6.10%, assuming purchase costs of 6.72%.

Investment Summary • Low site density of approximately 30%.

• Freehold.

• Current rental income of £898,774.60.

• Significant asset management opportunities to drive rental tone and consider alternative uses in the future, subject to necessary planning consents.

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 2

SandhurstIndustrialEstate

YATELEY LAKES

LAKESIDEBUSINESSPARK

LOCALRETAILPARADE

RESIDENTIAL

RESIDENTIAL

RESIDENTIAL

RESIDENTIAL

Situation Sandhurst Industrial Estate is situated to the south of Sandhurst town centre in an established industrial and business park location that attracts local and regional last mile operators and trade/workshop tenants.

The immediate surrounding area comprises a mix of residential, retail and industrial uses with the Lakeside Business Park located immediately to the south west with Yateley Lakes and Blackwater River beyond. To the north, bound by a railway line, is a local retail parade. To the west is a proposed residential-led scheme being developed by Bloor Homes that will create 108 new homes, a community building and public open space that will see the development of the 26 acre site.

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 3

A33

A40

4

A4

A4

A4

M

40

M4

M4

A3

A3M25

M25

M3

M3

A322

A322

A329M

MAIDENHEADSLOUGH

HIGH WYCOMBE

PADDINGTON

WATERLOOTO BRISTOL& SOUTH

WALES

TO NEWBURY

TO SOUTHAMPTON

TO OXFORD

READING

SANDHURST

HEATHROWAIRPORT

BRACKNELL

WOKINGHAM

FARNBOROUGH

WOKING

BASINGSTOKE

LONDON

J12

J11

J10

J10

J7J12

J4BJ15

J1AJ16

J3

J4a

J6

J8/9

Location Sandhurst is located in south east England, some 33 miles west of Central London. The historic town is well known for the Royal Military Academy Sandhurst, the British Army’s initial officer training centre. The town is well positioned in between the M3 and M4 motorway, approximately 13.5 miles north east of Basingstoke, 6 miles south of Bracknell, 4.6 miles north of Farnborough and 10.5 miles south east of Reading.

TransportRoad – The estate is accessed from Swan Lane which leads south to the B3272 (Reading Road) and onto the A30, providing access to junction 4a of the M3, approximately 3.75 miles to the south and connecting to the wider UK motorway network.

Rail – Sandhurst railway station is located within half a mile of the estate providing services every hour in both directions along the North Downs Line from Reading to Guildford, Redhill and Gatwick Airport. Fleet and Farnborough railway stations provide regular services into London Waterloo with journey times of approximately 45 minutes.

Air – Heathrow, Gatwick and Southampton airport are all within easy reach of the subject property, with Heathrow 17 miles to the east. Blackbushe private airport is located 1 mile to the south.

Vulcan CloseLocated to the north west of the estate, and comprises a mix of industrial, yard, and office uses. Unit 4C comprises a multi-let, 2 storey office. Tenants include Axis Parcel Service Ltd, Fudge Animation Studios Limited and a number of smaller office occupiers.

Vulcan CourtA terrace of 6 warehouse units located towards the north west of the estate and all of a similar construction with roller shutter doors. Tenants include Axis Parcel Service Ltd, Surtees Groundworks and The Cherished Car Company.

Vulcan Way Comprises the units along the southern boundary of the estate as well as the north-east section. Units 1 and 2 benefit from a prominent road frontage along Swan Lane. Tenants include Halfords Autocentre, Royal Mail, Ustore and a number of motor trade and freight transport related tenants.

Description Sandhurst Industrial Estate comprises a multi-let light industrial estate with units dating from the 1960s to 1990s. There are 33 units on the estate with a total GIA of 81,822 sq ft (7,602 sq m). The units vary in specification and range in size from circa 800 sq ft to 7,000 sq ft. The site provides an area of approximately 7.49 acres (3.03 hectares) which represents a low site cover of approximately 30%.

The estate can be separated into 3 distinct areas:

24

24

22

10a 86

161820

1214

7b

7a1

7e

7d

7c

9

3a

2

1

4C

VULCAN CLOSE

VULCAN WAY

4a,b,d

4

VULC

AN C

OURT

1

2

3

4

7

56

89

3

33

5

3b

10b

4b

Sub-sta�on

N

•

•

•

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 4

Vulcan Way, Unit 8, Royal Mail Group Limited

Unit 2 Vulcan Close, Axis Parcel Service Limited Unit 1 Vulcan Way, Vacant

Unit 1 Vulcan Close, Axis Parcel Service Limited

5

VULCAN CLOSE

Unit Tenant UseSize sq ft

£psfAnnual Rent

Lease Start

Lease End

Break Clause

Next Review

Comments

1 Axis Parcel Service Ltd Warehouse 2,004 £10.23 £20,500.00 30/09/16 29/09/22 30/09/19Tenant occupied since 1997. Rent deposit £12,300 (£10,250 plus VAT).

2 Axis Parcel Service Ltd Warehouse 2,395 £7.93 £19,000.00 28/04/17 28/09/22 28/04/20 Schedule of condition.

3A T Jennings TA Autospec Car Sales Yard 4,190 £2.63 £11,000.00 13/06/17 12/06/20

Storage land. Agreement for lease for a new lease agreed with tenant of 10a Vulcan Way. New 10 year lease with 5 year break. Rent £12,000 p.a. Under offfer. Anticipated completion 1st Sepember 2018.

3B Vision Cars Ltd Yard 4,090 £2.32 £9,500.00 23/06/14 28/09/19 Storage Compound.

4 Berkshire Specialist Cars Ltd Office 1,663 £18.04 £30,000.00 09/12/13 08/12/23 09/12/19New 5 year lease agreed with 2.5 year break at a rent of £30,000p.a.

4A Aspire Network Solutions Ltd Office 525 £13.71 £7,200.00 12/04/15 23/06/20 Tenant occupied since 2007. Schedule of condition.

4B Sandhurst Bodyworks Limited Warehouse 851 £11.67 £9,929.60 29/09/15 28/09/20 29/09/18 Tenant occupied since 1977.

4C, Suite 1

Chartreuse Calculations Ltd Office 471 £12.74 £6,000.00 27/11/15 24/12/20 Rent deposit £1,800.(£1,500 plus VAT)

4C, Suite 2

Fudge Animation Studios Ltd Office 1,414 £12.73 £18,000.00 01/06/16 23/06/21 01/06/19 01/06/18Rent increases to £20,000pa in June 2019 & to £21,000pa in June 2020. Rent deposit £5,400 (£4,500 plus VAT).

4D Aspire Network Solutions Limited Office 994 £9.10 £9,045.00 12/04/15 23/06/20 Tenant occupied since 2007. Schedule of condition.

Estate Subtotals Warehouse 5,250 £140,174.60

Office 5,067

Yard 8,280

Tenancy scheduleThe estate comprises 33 units, let to 30 tenants on 37 leases. The current passing rent is £898,774.60. The property has been measured in accordance with the RICS code of Measuring Practice 6th Edition and provides a total Gross Internal Floor Area of 81,822 sq ft (7,602 sq m).

•

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 6

•

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 7

VULCAN COURT

Unit Tenant UseSize sq ft

£psfAnnual Rent

Lease Start

Lease End

Break Clause

Next Review

Comments

1 Axis Parcel Service Ltd Warehouse 1,566 £8.30 £13,000.00 25/12/16 24/12/22 25/12/19 Tenant occupied since 2010. Schedule of condition.

2The Cherished Car Company Limited

Warehouse 1,553 £9.98 £15,500.00 25/12/16 24/12/19 Tenant occupied since 2000.

3 Modular Machine Guarding Limited Warehouse 1,554 £9.01 £14,000.00 25/12/16 24/12/19 25/12/18 Tenant occupied since 2005.

4The Cherished Car Company Limited

Warehouse 1,553 £8.37 £13,000.00 29/09/17 28/09/20Tenant occupied since 2010. Three month rolling break clause after 29th March 2018. Schedule of condition.

5Dolby Medical Home Respiratory Care Ltd

Warehouse 1,162 £11.45 £13,300.00 26/03/15 25/03/20 Tenant occupied since 2012. Schedule of condition.

6 Tru-Lawn Limited Warehouse 1,165 £10.60 £12,350.00 25/03/17 24/03/22 25/03/20Tenant already served notice to break in March 2020. Tenant in unit 8 wishes to take the unit when available. Rent deposit £3,087.50.

7RA Accident Repair Specialists Ltd and JR Miles and JP Rose

Yard 2,026 £1.97 £4,000.00 13/12/14 12/12/22 12/12/19 13/12/20Storage Compound, no building. To be assigned to Miles Accident Repairs Limited.

8Surtees Groundworks Contractors Limited

Yard 9,487 £1.79 £17,000.00 24/06/15 23/06/18Storage Compound, no building. Lease renewal agreed for 5 yr term @ £17k pa.

9 Hambridge Limited Yard 2,000 £2.50 £5,000.00Vendor to lease Storage Compound, no building. Propose sale and leaseback, 10 year lease. Break clause to be agreed. Under offer.

Estate Subtotals Warehouse 8,553 £107,150.00

Yard 11,487

•

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 8

VULCAN WAY

Unit Tenant Use Size sq ft

£psf Annual Rent

Lease Start

Lease End

Break Clause

Next Review

Comments

1 Vacant Warehouse 6,883 £70,000.00 12 month rental guarantee. Proposal with gym operator.

2 Halfords Autocentres Limited Warehouse 5,612 £7.13 £40,000.00 06/11/03 05/11/33 06/11/18 25/03/19 Rent deposit £12,000 (£10,000 plus VAT).

3/ 3A Ustore (Sandhurst) LtdWarehouse 4,209

£2.75 £60,000.00 01/07/18 31/06/30 30/06/24 01/07/22Under offer. 6 year tenant break subject to 3 month rent penalty.

Yard 17,588

4 Acorn Plating Limited Warehouse 6,182 £7.89 £48,750.00 04/08/08 03/08/1810 Yr renewal agreed at passing rent. Tenant occupied since 1998. Engrossments issued.

5RA Accident Repair Specialists Ltd and JR Miles and JP Rose

Warehouse 2,547 £9.57 £24,375.00 13/12/14 12/12/22 12/12/19 13/12/20Tenant occupied since 2010. Rent deposit £11,112. To be assigned to Miles Accident Repairs Limited including new 6 month rent deposit.

6 Red Care IT Ltd Office 3,150 £6.98 £22,000.00 25/03/16 24/03/21 24/06/19 25/03/19 Rent deposit £4,400 plus VAT. Personal guarantee.

7AAuto Options Direct Ltd & Mr R Colman

Car showroom 2,047 £10.78 £22,061.00 01/02/15 01/02/20FRI excluded lease. Tenant expressed interest to renew for further 5 years.

7B, C & D

Vulcan Motors Ltd Warehouse 6,220 £11.60 £72,169.00 01/02/14 28/02/25 20/01/22 20/03/22 FRI excluded lease. In occupation since 2000.

7E Tru-Lawn Ltd Warehouse 2,113 £10.44 £22,061.00 01/05/18 09/11/18 Short term licence to occupy.

8 Royal Mail Group Limited Warehouse 7,077 £7.35 £52,000.00 01/04/09 24/03/19 Tenant occupied since 1988.

9 Andy Crane Transport LimitedOffice 967

£1.89 £78,000.00 25/12/13 24/12/28 25/12/23 25/12/18Large haulage yard c/w ancillary office building. Tenant occupied since 1998.

Yard 40,333

10A Martin Weller ta/Perfect Paint Warehouse 4,677 £6.12 £28,638.00 01/02/09 31/01/19Schedule of condition. Terms agreed for lease renewal. 10 year lease, 5 year break. £38,000 per annum. Under offer.

10B Sarah Liscoe Warehouse 1,319 £5.69 £7,500.00 13/04/18 12/07/18New lease agreed on 6 year term at current rent. Under offer.

12 Sycamore Press Limited Warehouse 1,297 £11.75 £15,246.00 09/12/10 28/09/20 09/12/19 Tenant occupied since 2001.

14,16 & 18

Sandhurst MOT Centre Limited Warehouse 5,189 £9.52 £49,400.00 02/01/16 24/03/26 02/01/19Tenant occupied since 2001. Rental increase 02/01/2019 to £54,750 p.a.

20 Home Wood Fire Places Ltd Warehouse 1,282 £11.12 £14,250.00 21/10/16 20/10/21 21/10/19 Rent deposit £5,700 (£4,750 plus VAT).

Continued overleaf

Unit 7a Vulcan Way, Auto Options Direct Limited Unit 8 Vulcan Way, Royal Mail Group Limited 9

Unit Tenant Use Size sq ft

£psf Annual Rent

Lease Start

Lease End

Break Clause

Next Review

Comments

22Ambulance & Medical Support Services (UK) Limited

Warehouse 840 £11.90 £10,000.00 20/12/12 17/02/21 20/02/19Stepped rent increase to £10,250 in Feb 2019 and to £10,500 in Feb 2020. Tenant occupied since 2010. Rent deposit £2,700 plus VAT. Schedule of condition.

24 Biju Thomas & Jaison Joseph Warehouse 1,341 £11.19 £15,000.00 30/10/15 24/12/30 30/10/20Rent deposit £4,500 plus VAT – to be topped up by tenant in September 2018.

Estate Subtotals Office 4,117 £651,450.00

Car showroom 2,047

Warehouse 56,788

Yard 57,921

Total Office 9,184

Car showroom 2,047

Warehouse 70,591

Yard 77,688 £898,774.60

Planning It is assumed that there are no outstanding planning issues preventing the current uses of the properties from being within Use Classes B1, B2, B8 or having Sui Generis use.

Tenure The estate is held freehold.

Vulcan Way

Vulcan Way

Unit 5, Vulcan Way, RA Accident Repair Specialists Limited

Vulcan Way entrance

Sandhurst Industrial Estate • Sandhurst, Berkshire GU47 9DB 10

11

VULCAN COURT

Date Address Size (sq ft) Term certain (years)

Price Capital value per sq ft

NIY

Jan 2018Gateway 25, Western Avenue, West Thurrock

95,539 4 £14.755 m £165 4.25%

Jan 2018Quarry Wood, Aylesford Portfolio

191,216 5.8 £26.5 m £139 5.05%

Dec 2017 Focal Point, Crawley 71,063 6.9 £17.2 m £242 3.15%

Dec 2017The Birches, East Grinstead

383,991 3.7 £64.97 m £169 4.75%

Aug 2017 Carvers, Ringwood 51,340 3.7 £7.06 m £138 4.93%

Mar 2017Babbage Rd and Motorway Industrial Estate, Stevenage

60,808 3.2 £7.1 m £117 5.43%

Mar 2017 MXL Centre, Banbury 127,305 7.6 £12.88 m £101 5.50%

Market CommentaryThere remains a significant weight of money in the market for industrial opportunities which has supported investment activity and compressed pricing due to limited supply. Driven by strong fundamentals and rental growth forecasts, in particular for the ‘last mile’ delivery sector, the market continues to look attractive versus other sectors. The combination of these factors, along with a reduction of available industrial land, has seen investment yields compress substantially.

Vulcan Court Swan Lane

ContactsFor further information, access to the dataroom or to arrange an inspection, please contact:

Richard Dawtreyrdawtrey@vailwilliams.com020 3589 005807881 588 526

Toby Yates tyates@vailwilliams.com020 3589 008907881 500 995

Hugo Langloishlanglois@vailwilliams.com020 3589 005007771 542 132

EPCEnergy Performance Certificates are available within the dataroom.

VATWe understand the property is elected for VAT and that the transaction will be treated as a transfer of going concern (TOGC).

Misrepresentation Act 1967 – Vail Williams for themselves and for the vendors or lessors of this property, whose agents they are, give notice that: 1. The particulars are set out as a general outline only for the guidance of intended purchasers or lessees and do not constitute nor constitute part of an offer or contract. 2. All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants 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 Vail Williams has any authority to make any representation or warranty whatsoever in relation to this property. Finance Act 1989 – Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction.

Proposal Our client is seeking offers in excess of £13,800,000 (Thirteen million, eight hundred thousand pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.10%, assuming purchase costs of 6.72%.