INDUSTRIAL INVESTMENT OPPORTUNITY

UNITS 1&29-29 RIXON ROAD

WELLINGBOROUGH | NN8 4BA

INVESTMENT SUMMARY

n Established industrial and commercial location in Wellingborough, one of the UK’s primary logistic locations.

n Excellent road links being served by the A45 dual carriageway, linking the M1 to the south and the A14 to the north.

n Significant urban expansion to the east of Wellingborough triggering significant investment in infrastructure, new homes and employment.

n The property is in close proximity to Stanton Cross which forms the main part of Wellingborough’s expansion / regeneration.

n 16,260 sq m (175,031 sq ft) of industrial / distribution accommodation situated on a site extending to 9.94 acres (4.02 hectares).

n Income secured to Bushboard Limited on two co terminus leases (inside the 1954 Act) with an attractive AWULT of 13.5 years.

n The property produces a low passing rent of £479,475 per annum (£2.73 per sq ft).

n Established tenant who has been in occupation of the property for over 40 years.

n Long term redevelopment potential, subject to the necessary planning consents.

n Offers in excess of £6,000,000 subject to contract and exclusive of VAT. This reflects a net initial yield of 7.49% (assuming purchaser’s costs of 6.6%).

SIDEGATE LN.

CAN

NO

N S

T.

FINEDON RD.

W

ELL

ING

BOU

OUGH

RD

.A509

A5193

NORTHEN WAY

RIXON RD .

WELLINGBOROUGH

M40

M40

M42

M42

M45

M25

M25M1

M1

M1

M1M6

M5

M42

M69

A1(M)

A1 (M)

CHELTENHAM

BANBURY

RUGBY

STRATTORD-UPON AVON

CIRENCESTER

OXFORD

BIRMINGHAM

WOLVERHAMTON

COVENTRY

LEICESTER

KETTERING

CORBY

WATFORD

HATFIELD

HERTFORD

HIGHWYCOMBE

STALBANS

HEMELHEMPSTEADAYLESBURY

DUNSTABLE

LUTON STEVENAGE

NORTHAMPTON

WELLINGBOROUGH

AMERSHAM

LUTON

A41

A14

A14

A14

A141

A5

A5

A44

A44

A40

A420

A429

A423

A508

A429

A46

A6

A6

A1

A1

A414

A505

A10

BEDFORD

MILTONKEYNES

M6 Toll A444

Wellingborough is a major industrial, logistics and distribution centre located equidistant between London and Birmingham, approximately 13 miles north east of Northampton and 40 miles east of Coventry.

The town is served by the A45 to the south and provides direct dual carriageway access to the M1 at Junction 15, approximately 10 miles to the south west, and the A14 to the north east. The A14 provides direct access to Junction 14 of the A1 (M), approximately 15 miles away. The town is well connected via the A45, A14, A6 and A1, facilitating access to the major regional centres of Coventry, Peterborough, Cambridge and Leicester, the East Coast ports, as well as the wider South East and Midlands.

Wellingborough rail station provides direct services to London St Pancras International, with a fastest journey time of approximately 55 minutes. Several rail freight terminals are located nearby, including Corby and Daventry International Rail Freight Terminal (DIRFT).

The area is considered to be one of the UK’s primary logistic locations as its extensive road network – serving both the South East, Midlands and the North – and excellent labour supply, make it attractive to distribution and warehouse operators.

The property is situated approximately 1 mile to the north east of Wellingborough town centre in an established industrial location on Fendon Road Industrial Estate. The property offers a prominent and extensive site with circa 100M frontage to Rixon Road (A510). The A510 turns into the A509 which provides direct access to the A45. The property is situated adjacent to Stanton Cross which forms the main part of Wellingborough’s expansion / regeneration programme.

Significant urban expansion to the east of Wellingborough (WEAST) is planned which will trigger significant investment in infrastructure and a substantial number of new homes and employment space. Stanton Cross is a major residential led development set to deliver 3,650 homes, employment areas and shopping facilities for Wellingborough. The development, promoted by Bovis Homes, is planned for land to the east of Wellingborough’s train station. It will be the largest growth the town has seen since the 1960s, including new homes, shops, schools, 165 acres of commercial space, a town park, community centre and several major infrastructure projects which are being pursued in the locality to include a fully integrated transport network with the construction of access roads and bridges.

It is anticipated Stanton Cross will create around 300 jobs a year over the construction period. The first phase of Stanton Cross will see the building of a new bridge over the railway line and river, new roads and the first housing areas.

LOCATION SITUATION

STANTON CROSS

FED EXJEWSON

BAM

HOWDENS

ECOLOGIS

EFCO

BONHAM LILLEY TIMBER

UNIT 9-29 RIXON ROAD

WELLINGBOROUGH RAIL STATION

CENTRAL AUTO SUPPLIES MERCEDES-BENZ

TRAVIS PERKINSA510 RIXON ROAD

UK MAIL

HOLMES GRAHAM ASTRASEAL

OS SMITH PACKAGING

A510 NORTHERN WAY

Supply of industrial stock increased in 2015 by 11% and is expected to be increasingly volatile throughout 2016. The occupier market remains robust with take-up in the logistics sector (for units over 100,000 sq ft) reaching 24.1 m sq ft in 2015 which is above the long term average of 22 m sq ft. Prime headline rents in the area for units of over 10,000 sq ft increased from £5.50 psf at Q4 2014 to £6.50 psf at Q4 2015.

RECENT LETTINGS

Unit Tenant Sq Ft Date Rent (psf)

Unit 9, Flemming Close, Wellingborough Zest Cleland Ltd 4,424 02-Dec-15 £5.73

Suite 4 - Morris Close ,Wellingborough DTK Water Ltd 11,828 04-Nov-15 £5.00

Sinclair Drive, Wellingborough The Phoenix Resource Centre 5,937 29-Oct-15 £5.47

Unit 16 Brackmills Industrial Estate, Northampton Falcon Flooring Ltd 4,900 30-Oct-15 £4.80

Unit 22, Tranners Drive, Newport Pagnell Unique Fabrications 10,428 23-Sep-15 £5.50

Unit 8, Queens Park Industrial Estate, Northampton Relay Technical Transport Ltd 13,305 13-Jul-15 £4.75

The “Golden Triangle” and surrounding areas have long been the traditional heartland of the UK logistics market and 2015 has proved no different with the combined East and West Midlands accounting for 38% of all take-up. The average deal size in the Midlands for 2015 was 218,000 sq ft against a national average of 255,000 sq ft. This is a direct impact of the lack of supply for larger units and hence cost conscious occupiers have looked at cheaper locations for BTS units.

The investment market followed occupier trends with a total of £3.12bn transacted in 2015, the second highest year on record and significantly above the long term average of £1.6bn per year. Whilst investor sentiment remains strong it is not envisaged that there will be any significant downward pressure on prime yields currently standing at 4.5%.*

*Savills – Big Shed Briefing – January 2016

RECENT INVESTMENT SALES

Unit Sq Ft Date Sold Price NIY

Park Farm Industrial Estate, Wellingborough 341,320 Q4 2015 £29.20m 5.80%

Grange Park DC7 ,Northampton 341,025 Q4 2015 £35.00m 5.50%

Asda Distribution Centre, Northampton 238,452 Q3 2015 £31.00m 4.70%

Stone Circle Road, Round Spinny Industrial Estate, Northampton 228,967 Q3 2015 £8.45m 8.49%

Units 1, 3 & 4 NDC, Ravens Way, Northampton 207,686 Q3 2015 £11.00m 7.25%

INDUSTRIAL & INVESTMENT MARKET

The property comprises 2 detached industrial / warehouse units, originally constructed in the late 1960’s, and extends to approximately (16,260 m²) 175,031 sq ft of steel frame construction under pitched roofs with part brick / part clad elevations. There have been subsequent extensions and additions over time. To the front of the main building (Unit 1) there is a reception area providing access to offices over ground and two upper floors. The ground floor office accommodation has been fitted out to provide a showroom area.

The original warehouse at Unit 1 has been extended along the eastern flank and is now utilized for a mixture of manufacturing, storage and distribution purposes. Canopied loading is provided to the rear and west elevations. There is a surfaced road to the rear of the unit, providing a one way system around the building. Unit 2 comprises a storage warehouse to the rear and ancillary 2 storey office accommodation to the front elevation. The office element has recently been refurbished by the tenant, and is used for training centre and conference facilities. The offices at both units have been clad externally to reflect the tenant’s corporate brand.

There is a secure car park to the north of the site, extending to approximately 1 acre serving the site with just over 150 parking spaces.

DESCRIPTION ACCOMMODATION

The two units provide the following gross internal floor areas:

Description GIA (m²) GIA (sq ft)

Unit 1 13,257 142,706

Unit 2 3,003 32,325

Total 16,260 175,031

The site extends to 4.02 hectares (9.94 acres) providing a site cover of 40%.

UNIT2

UNIT1

CAR PARKINGN

The property is let in its entirety to Bushboard Limited on two occupational leases producing a combined passing rent of £479,475 per annum (£2.73 per sq ft). The leases are subject to schedules of condition. Bushboard Holdings Limited is the guarantor of both leases. Full details are available on request.

Unit 1 is let for a term of 25 years from 19th October 2000 expiring on the 18th October 2025 with a new reversionary lease for an additional 5 years to commence immediately after and expire on 18th October 2030. This new lease is to remain within the security of tenure and compensation provisions of the Landlord & Tenant Act 1954, part II (as amended). The passing rent is £382,500 per annum (2.68 per sq ft), representing approximately 80% of the income.

Unit 2 is let for a term until 18th October 2030 (approx. 15.5 years remaining) with a tenants only break on 25th March 2021. This lease also remains within the security of tenure and compensation provisions of the Landlord & Tenant Act 1954, part II (as amended). The passing rent is £96,975 per annum (3.00 per sq ft), representing approximately 20% of the income. Unit 2 is intrinsically linked to the business and the tenant has recently invested money in the building.

Tenant Unit Sq Ft Rent (pa)Rent (psf) Start Break Expiry

Reversionary Expiry

Bushboard Ltd 1 142,706 £382,500 £2.68 19-Oct-00 - 18-Oct-25 18-Oct-30

Bushboard Ltd 2 32,325 £96,975 £3.00 25-Mar-16 25-Mar-21 18-Oct-30 -

Total 175,031 £479,475

TENANCY COVENANT INFORMATION

Bushboard is one of the UK’s largest independent manufacturers of kitchen and bathroom work-surfaces, panelling and associated accessories. The company has a manufacturing history dating from the 1930’s and more than 20 years’ experience in the production of premium quality work surfaces and currently employs approximately 90 members of staff at the property. Bushboard has invested over £5M over the last 8 years in research and development to continually launch new and innovative worktops and work surfaces.

Bushboard Limited (company no. 03943217) has a Creditsafe rating of 57(B) Low Risk of business failure.

Date 31/10/2014 31/10/2013 31/10/2012

Sales Turnover £24,369,000 £20,565,000 £20,782,000

Pre Tax Profit/(Loss) £1,801,000 £1,314,000 £1,789,000

Total Assets Less Current Liabilities £9,018,000 £8,341,000 £7,937,000

Shareholders’ Funds £8,788,000 £7,813,000 £7,241,000

(Source: ICC)

The site value is an important indicator of value given the age of the original larger building. There is however a lack of relevant and recent comparable evidence for development land transactions although a 3.27 acre former vehicle workshop site on Pytchley Lodge Road, Kettering sold in April 2015 for £269,113 per acre. In 2012 5 acres of land was sold to Bovis for c£250,000 per acre on Saunders Road to facilitate the bridge infrastructure of the Stanton Cross scheme. We believe these figures give a good reflection of the commercial land values in the local area.

SITE VALUE

Important Notice: JSS Egerton Limited for itself and for the vendors or lessors of this property for whom it acts, gives notice that the sole purpose of these particulars is to provide outline information on this property to prospective purchasers or tenants (as applicable), who are solely responsible for making their own investigations and seeking independent advice, including the costs of doing so, and forming their own view as to the condition of the property, its fitness for their requirements and the accuracy and completeness of the statements herein. These particulars do not constitute any recommendation or offer to enter into any contract regarding this property. JSS Egerton Limited does not guarantee the accuracy or completeness of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein, and prospective purchasers or tenants must not rely on them as statements of fact or representations. Rents quoted in these particulars may be subject to VAT in addition. Neither JSS Egerton nor the vendors or lessors of this property accepts any liability or responsibility (whether in negligence or otherwise) for any loss arising from using or relying on these particulars. Any reference herein to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise expressly stated) as to its state or condition or that it is capable of fulfilling its intended function. Neither JSS Egerton, its employees or agents has any authority to make, and does not make, any representation or warranty, or to enter into any contract, in relation to the property. All maps and plans produced in this brochure are for indicative purposes only.

JSS: April 2016 © Produced by Barbican Studio: +44(0) 20 7634 9574

DATAROOM

PROPOSAL CONTACTS

TENURE VAT

EPC

Access to the dedicated Units 1&2 dataroom can be obtained upon request from JSS Egerton and contains the following documents:

- Freehold and Leasehold Registers and Plans - Service charges - Last 3 years’ accounts/budgets- Certified copies of the leases - Brochure- Bushboard’s audited accounts - Floor plans and other drawings- VAT Registration Certificate(s) - Photographs- Schedule of Condition - Energy Performance Certificates

Freehold. We understand the property has been elected for VAT, and therefore VAT will be chargeable. We would envisage the sale to be by way of a Transfer of Going Concern (TOGC).

The Energy Performance Ratings for the property are as follows:

Unit 1 - C53Unit 2 - E105

For further information, or to arrange a viewing, please contact:

Alex Alban-Moore alexalban-moore@jssegerton.com

Tom Hutchinson tomhutchinson@jssegerton.com

James Rangeley jamesrangeley@jssegerton.com

JSS Egerton

17c Curzon Street, London, W1J 5HUTel: 0207 664 6648www.jssegerton.com

We have been instructed to seek offers in excess of £6,000,000 (Six Million Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 7.49% (assuming purchaser’s costs of 6.6%).