FREEHOLD SOUTH EAST INDUSTRIAL WAREHOUSEWITH FUTURE RESIDENTIAL DEVELOPMENT POTENTIAL

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE

■ Well located industrial warehouse in Brentwood, a major commercial centre strategically located on the A12 providing direct access to Junction 28 of the M25 and Central London.

■ The property comprises a single let, single storey 3 bay industrial warehouse extending to 48,362 sq ft (4,493.0 sq m) Gross Internal Area.

■ The property is let to Macarthys Laboratories Ltd (rated 5 A1 by Dun & Bradstreet) until 24 December 2030, with a mutual break option on 24 December 2025, therefore providing approximately 15.1 years to lease expiry and 10.1 years to lease break.

■ The total rent is £365,000 per annum reflecting £7.55 per sq ft.

■ Freehold

■ Future residential development potential, subject to planning.

■ The property is situated on a site of approximately 2.20 acres with a site cover of 47%.

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE2

We are instructed to seek offers in excess of £4,800,000 (Four Million Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a Net Initial Yield of 7.19%, allowing for purchaser’s costs of 5.80%, representing a Capital Value of £99 per sq ft.

INVESTMENT SUMMARY

BRENTWOOD TOWN CENTRE

RIVER THAMES

IFDS

A1023

KINGS ROAD

BT

CREST NICHOLSON RESIDENTIAL DEVELOPMENT

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE3

CENTRAL LONDON

BRENTWOOD STATION

UNIT G | HUBERT ROAD | BRENTWOODESSEX | CM14 4JE

M25

M25

J28

A12

BRENTWOOD STATION CAR PARK

HUBERT ROAD

The property is located in Brentwood, an affluent commuter town in Essex, located in the north east quadrant of the M25 motorway, approximately 20 miles north east of Central London and 12 miles west of Chelmsford.

Brentwood is an affluent commuter town located 1.4 miles from Junction 28 of the M25, London's Orbital Motorway.

MINUTESS

LONDON LIVERPOOL STREET

35MILES

M25 JUNCTON 28

1.4

50 MILES

100 MILES

150 MILES

200 MILES

250 MILES

Distances are approximate

The town benefits from excellent transport links with Junction 28 of the M25 motorway being situated approximately 1.4 miles south west. The A12, which runs through Brentwood, provides a direct route to Central London.

Brentwood Station is located 1.5 miles from the property with direct services to London Liverpool Street with a journey time of approximately 35 minutes. Stansted Airport is easily accessible via the M25 / M11 motorways with a travelling time of approximately 40 minutes. In addition, Brentwood will have a station on the Crossrail line, linking Heathrow Airport in the west to Shenfield in the east.

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE4

BRENTWOOD

LOCATION

The property is located at the southern end of Hubert Road, which is in Brentwood's principal industrial area, just half a mile east of Brentwood town centre.

Hubert Road is situated off the A1023, the main arterial road running through Brentwood and provides direct access to the M25, London's Orbital Motorway, via Junction 28 and the A12 both within 1.5 miles.

To the west of the property is a Crest Nicholson residential development providing approximately 400 dwellings set within a landscaped area adjacent to Brentwood Train Station.

Neighbouring occupiers include; BT, International Financial Data Services, Formula One Autocentres, Edmundson Electrical, Care co, Bakers Labels and Group Tyre.

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE5

SITUATION

UNIT G | HUBERT ROAD | BRENTWOODESSEX | CM14 4JE

Tank

El Sub Sta

DepotF2

Warehouse

B2

ouse

Warehouse

Boardman Place

6 to 21

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:937

The property was constructed in the 1980’s and comprises a detached single storey three bay industrial warehouse with ancillary office accommodation. The property is set within a rectangular site with concrete yard areas to the north, east and south of the building. The building is of a steel portal frame construction under a pitched roof and provides clear internal eaves height of 6.4m.

The property originally had five roller shutter loading doors to the north elevation, however two have been blocked up by the tenant. In the centre of the northern yard area adjacent to the building is a covered loading bay with a 4ft high loading platform.

The secure site has two vehicle entrances, one to the north which has its own manned gatehouse and one to the south east corner of the site. The property has approximately 50 car parking spaces.

Internally the property has been fitted out by the tenant to suit their occupational requirements.

ACCOMMODATIONThe property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following approximate Gross Internal Floor Area.

TENUREFreehold.

EPCThe property has an Energy Performance Certificate rating of D-84.

SITE The property occupies a site of approximately 2.20 acres (0.89 hectares) and has a site cover of approximately 47%.

For indicative purposes only

GROSS INTERNAL AREADESCRIPTION SQ FT SQ M

Warehouse 40,917 3,801.3

Ground Floor Offices 3,677 341.6

First Floor Offices 3,651 339.2

Gatehouse 117 10.9

TOTAL AREA 48,362 4,493.0

Covered Canopy 1,799 167.1

OVERALL TOTAL AREA 50,161 4,660.1

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE6

DESCRIPTION

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE7

TENANT AREA (SQ FT) AREA (SQ M) LEASE START EXPIRY DATE BREAK OPTION RENT (PA) RENT (PSF) WAULT (TERM CERTAIN) COMMENTS

Macarthys Laboratories Ltd

(620024)48,362 4,493 29/09/1999 24/12/2030

24/12/2025 (Mutual) £365,000 £7.55 15.1 years

(10.1 years)

The tenant has been granted four months’ rent free which will be

topped up by the Vendor.

The property is let in its entirety to Macarthys Laboratories Ltd (company no. 620024), trading as Martindale Pharma, on a Lease expiring 25 December 2020, with a tenant option to determine the lease on 25 December 2015. The tenant has exercised the option to determine and the current lease will come to an end on 25 December 2015. The tenant has then entered into a Reversionary Lease, on Full Repairing and Insuring terms, for a term of 15 years commencing on 25 December 2015 at a passing rent of £365,000 per annum (reflecting £7.55 per sq ft). The Reversionary Lease has been contracted Outside of the Landlord and Tenant Act 1954.

The Reversionary Lease has upward only rent reviews at the 5th and 10th years of the term. There is a mutual break option on 24 December 2025 on 9 months' written notice. The Landlord's ability to exercise their break option is subject to the demolition or reconstruction of the premises or a substantial part of it. The tenant has been granted a four month rent free period from 25 December 2015 which will be topped up by the Vendor.

We understand the property is let in accordance with the below tenancy schedule;

TENANCY

31/12/2014 31/12/2013 31/12/2012

TURNOVER £67,095,000 £69,367,000 £67,947,000

PROFIT / (LOSS) BEFORE TAXES £14,267,000 £17,439,000 £8,354,000

TANGIBLE NET WORTH £62,865,000 £54,411,000 £42,235,000

NET TANGIBLE ASSETS (LIAB.) £53,511,000 £43,829,000 £33,729,000

MACARTHYS LABORATORIES LIMITED (Company No: 620024)

Macarthys Laboratories Limited is a manufacturer and distributer of speciality pharmaceuticals and services for healthcare professionals in the UK and Worldwide.

The tenant has recently won an NHS contract which they run from the building. Martindale Pharma have two further sites in Romford and employ over 300 employees across the three sites.

Macarthys Laboratories Limited has a Dun & Bradstreet rating of 5 A1 which represents a minimum risk of business failure based on a Tangible Net Worth of £62,865,000.

Macarthys Laboratories Limited has produced the following most recent accounts:

We are of the opinion that the covenant would be viewed favourably in the current market.

COVENANT

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE8

The industrial investment market has proved incredibly competitive during the last 18 months. Prime stock remains in short supply, however when there have been opportunities they have been hotly contested, with competitive bidding environments helping achieve premium prices.

This has been especially true for prime assets located in Greater London and the South East as investor sentiment towards location, risk and vacancy risk improves.

There have been several recent comparable transactions of note, a number of which are highlighted below:BC

DATE ADDRESS TENANT SIZE (SQ FT)

WAULT (TO EARLIEST EXPIRY) PRICE NET INITIAL

YIELDCAPITAL VALUE

(PER SQ FT)

Under Offer Snodland, Maidstone Norbert Dentressangle 77,841 5.0 years £6.92m 6.10% £89

Under Offer Cardinal Distribution Park, Huntingdon Co-Operative 98,747 4.0 years £9.36m 5.40% £95

October 2015 140 London Road, Brentwood Allen Ford Accident Repair Ltd(Car dealership) 19,701 13.5 years £3.66m 6.50% £186

August 2015 15-16 Hickman Avenue, Highams Park, Chingford Proportion London Limited 57,600 4.0 years £6.29m 5.20% £109

August 2015 Unit 4, 500 Purley Way, Croydon John Heath & Co Limited 96,985 6.5 years £9.45m 6.20% £97

July 2015 Lexicon House, Midleton Industrial Estate, Guildford Access Plus Marketing 30,775 3.8 years £4.90m 5.71% £156

April 2015 Burnt Mills Industrial Estate, Watkins Close, Basildon Activair (UK) Ltd 37,958 4.7 years £3.54m 6.51% £93

April 2015 Unit 1, Crossways Business Park, Dartford Colour Con Ltd 20,215 5.0 years £2.40m 6.16% £119

UNIT G | HUBERT ROAD | BRENTWOOD | ESSEX | CM14 4JE9

INVESTMENT MARKET

Knight Frank LLP 55 Baker Street London W1U 8AN

Will Gubb

T 020 7861 1595M 07436 153573E will.gubb@knightfrank.com

Victoria Player

Knight Frank LLP 55 Baker Street London W1U 8AN

T 020 7861 1514M 07720 695954E victoria.player@knightfrank.com

Nick Cripps

Knight Frank LLP 55 Baker Street London W1U 8AN

T 020 7861 1532M 07767 418956E nick.cripps@knightfrank.com

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows:- 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. November 2015.

VATWe understand the property has been elected for VAT and hence anticipate the sale will be undertakenas a transfer of a going concern (TOGC).

CAPITAL ALLOWANCESFurther information is available on request.

INVESTMENT PROPOSALWe are instructed to seek offers in excess of £4,800,000 (Four Million Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client's Freehold interest.

A purchase at this level reflects a Net Initial Yield of 7.19%, allowing for purchaser’s costs of 5.80%, reflecting a Capital Value of £99 per sq ft.

For additional information or to arrange an inspection please contact:

FURTHER INFORMATION