SIGNIFICANT HIGH YIELDING MULTI-LET … quality affordable accommodation with excellent occupational history. Site of circa 27 acres in total including a development plot of 6.3 acres

MOORGATE POINT, MOORGATE ROAD,KNOWSLEY, LIVERPOOL L33 7XW

SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY

www.jpmrealestate.co.ukwww.jo l ivetgroup.com

StewartMontrose

0161 935 8245

Chartered SurveyorsProperty Investment Consultants

INVESTMENT SUMMARY

High Yielding multi-let investment comprising 444,639 sq ft (41,308 sq m) of accommodation.

Prime location at the junction of the A580 and M57. M62 – 6 miles, M58 – 3 miles, M6 – 10 miles.Situated on the established Knowsley Industrial Park, one of the largest employment areas in the UK.

Situated on the thriving Knowsley Industrial Park where there is a huge amount of industrial activityon the back of its strategic location, growth in the Port, growth of companies such as JLR, QVC, Home Bargains, B&M etc.

Good quality affordable accommodation with excellent occupational history.

Site of circa 27 acres in total including a development plot of 6.3 acres.

Current rental income of £1,254,245 pa reflecting low rentals of only circa £2.50psf on the industrial accommodation and £4.75 psf on the office accommodation.

ERV of £1,402,643

Offers in the region of £11,000,000 reflecting an attractive net initial yield of 11.73% and a capital value of only £22.61 psf excluding the value of the surplus development land.





Liverpool is the sixth largest city in the UK and is thecommercial and administrative centre for the County ofMerseyside. The County has a residential populationof 1.5m, with 6.5m people within one hour’s drive.

The Liverpool City Region is located 212 miles (340kms) north west of London, 98 miles (157 kms) northwest of Birmingham, and 32 miles (52 kms) west ofManchester.

The Liverpool City Region has undergone arenaissance in the last 10 years with significantinvestment due in part to the international recognitionthe city received being European Capital of Culture2008. Recent developments include Grosvenor’sLiverpool One Shopping Centre, The Met Quarter, thenew cruise liner facility, Liverpool Arena andConvention Centre at Kings Dock, Liverpool JohnLennon Airport, The Port of Liverpool and theautomotive sector. More than £3 billion has beeninvested within the city centre and surrounding area inrecent years.

Major employers include Matalan, Home Bargains,QVC, Royal Sun Alliance, Santander, Bibby Line,Jaguar Land Rover, B & M Bargains, Home ShoppingGroup, Princes Foods, John West, United Biscuitsamongst others.

LOCATION

MOORGATE POINT, MOORGATE ROAD,KNOWSLEY, LIVERPOOL L33 7XW www.jpmrealestate.co.uk

www.jo l ivetgroup.com



Liverpool benefits from excellent communications.

RoadThe Merseyside region is served by the followingmotorways:

M57, M56, M62, M58 and M6 making it an excellentstrategic distribution location in which to serve the NorthWest of England and beyond. The M62 motorwayconnects Liverpool to Leeds via the M60 orbitalmotorway.

Connectivity within the region is will be further enhancedby the construction of the new Mersey Crossing whichwill provide a state of the art toll bridge linking the A57,Widnes to Runcorn and Speke. Construction work hasnow started on the bridge, which is due to open in 2017.

AirLiverpool John Lennon Airport handled over 4 millionpassengers in 2013 and currently offers flights toapproximately 60 different locations across the UK andEurope. The growth of the airport has led to recentfacilities to include a new multi-storey car park,enhanced leisure facilities, together with a Hilton hotel.

RailLiverpool has major railway connections with themainline station being Liverpool Lime Street which is served by Virgin Trains as well as regional and localtrains, with approximate journey times of 40 minutes toManchester, 1 hour 30 minutes to Birmingham and 2hours 7 minutes to London Euston.

SeaPort of Liverpool is ranked among Britain’s majorcontainers ports and handles nearly 700,000 TEUS (20ft container units) a year. The Port anticipates attractingthe World’s largest container vessels to the proposed inriver deep water terminal due to open in 2015. The£300M Liverpool2 Container terminal will almost doublecontainer capacity at the Port and allow it to handle two280m mega post-panamax vessels simultaneously andwill accommodate 95% of global container vessels. Thiswill remove the need for goods to be transhipped tosmaller feeder vessels from larger ports in Europe.

Goods will be able to be transported directly into theheart of the UK from around the globe making itcheaper, quicker and more efficient. Particularly fromthe Far East, the cost comparison based on a 40 ftcontainer of textiles delivered to Manchester from HongKong is £300 cheaper than shipping via Southampton.

This development will also open up the Liverpool CityRegion to businesses based throughout the UKparticularly in the Midlands, Yorkshire, Leicestershireand Scotland.

COMMUNICATIONS


A580

N

M6

M6

M62

M62

M57

M58 M60

M56

M56

M6

M53

M66M61

M65

M602

M60

SOUTHPORT

MANCHESTER

MANCHESTERAIRPORT

LIVERPOOL

BIRKENHEAD

CHESTER

East Lancashire Rd

LIVERPOOL JOHN LENNON

AIRPORT

RUNCORN

WARRINGTON

SeaforthContainer Port

Mersey Tunnels

A561

MOORGATE POINT

Runcorn Bridge

A5208

A5208

A5207

M57

J4

A580

A580

Perimeter Rd

South Boundary Rd

Moorgate Road Hornhouse Lane

Cooper’s Lane

East Lancashire Rd

SAT NAV: L33 7YQ

County Rd

Knowsley Industrial Park

LIVERPOOL

J5

M6/MANCHESTER

MOORGATE POINT

Knowsley is situated approx. 17 kms (11 miles) eastof Liverpool and 47 kms (29 miles) west ofManchester. Knowsley is one of the main industrialareas in Merseyside and benefits from excellentaccess to the regional motorway network includingthe M57, M58, M62, M6 and Manchester’s OrbitalM60 motorways.

Knowsley Industrial Park is situated on the north sideof the A580 East Lancashire road, which providesdirect access to Jct 23 of the M6 and connectsLiverpool city to the West with Manchester city centreto the East.

Knowsley Industrial Park is one of the largestindustrial parks in Europe. At almost 1,200 acres(485 hectares) the Park and its sister, KnowsleyBusiness Park, are home to almost 600 companies.Major occupiers located at Knowsley include:

SITUATION DRIVE TIMESDistance Time

miles mins

M6 J23 10 12

Liverpool and Docks 8 15

Manchester 26 48

Leeds 53 78

Birmingham 95 121

Glasgow 185 230

London (M25 Jct 15) 200 244

Source: wwwtheaa.com



Moorgate Point is situated with significant frontage ontoMoorgate Road, which provides direct access toJunction 4 of the M58 Motorway and the A580 (EastLancs Road), both of which are immediately to thesouth of the property.


• B&M Bargains• QVC• Jaguar• DHL• Home Bargains• Vertex• Toyota• SIG• Liverpool Football Club• Matalan• Stoves / Glen Dimplex


MOORGATE ROADMOORGATE POINT

HORNHOUSE LANE

M57

SOUTH AND M62

NORTH AND M58

JUNCTION 4

TO LIVERPOOL

A580 EAST LANCS ROAD

COOPER’S LANE

SOUTH BOUNDARY ROAD

KNOWSLEY INDUSTRIAL PARK

DEVELOPMENT LAND





The property consists of a large refurbished andmodernised warehouse complex comprising a securedsite of 10 industrial units with a detached office blocksplit into larger suites and an enterprise Centre at firstfloor level of smaller suites.

The main warehouse building is a mixture of steelportal and steel truss construction with concrete floors,brick elevations and a multi-pitched roof incorporatingglazed roof lights covered in a mixture of asbestos andsteel roof sheets.

The main warehouse has been subdivided to provide6 units with gas fired heating and full access loadingdoors together with one dock level. The eaves heightof the main warehouse varies between 7.6 metres (25feet) – 7.8 metres (25’ 7” sq ft) and it benefits from afull sprinkler system with the exception of Unit 4. Thewarehouse is fully racked as part of the landlordsspecification.

Unit 7 is a separate detached terrace of 5 industrialunits, each with their own roller shutter loading door, separate pedestrian access and an eaves height of 5.0metres (16 feet).

The two storey office block is located to the front of thesite being of concrete framed structure with asphalt flatroof throughout. The majority of office space has beenextensively refurbished comprising suspendedceilings, Cat 2 type lighting, perimeter trunking andcentral heating. There are 120 car parking spaceswhich are adjacent to the offices together with anoverspill car park for a further 87 cars.

DESCRIPTION

DEVELOPMENT LANDA further 6.3 acre development site to the rear of theproperty is included within the sale and is shown on theattached site plan. We consider this has a modestvalue of £150,000 per acre.


The total site area is 27.3 acres including a 4 acre lorrypark with associated car parking and the additional 6.3acres of development land.

SITE AREA

TENURE

TENANCY

ACCOMMODATIONThe property provides a total of 444,639 sq ft (41,308sq m) of accommodation which can be broken downas follows:

Industrial AccommodationOffice AccommodationOffices (Enterprise Centre)

A full breakdown of the accommodation is providedwithin the enclosed tenancy schedule.

The property provides a total density of only 37%.

We understand that the property is held on a 999 yearleasehold from 31 January 2005 at a peppercorn rent.

The estate is multi-let to 13 tenants as per theattached tenancy schedule. The passing rent iscurrently £1,254,245 per annum

The leases are on effective full repairing and insuringterms (subject to a schedule of condition) through aservice charge.



408,098 sq ft (37,914 sq m)32,573 sq ft (3,026 sq m)3,968 sq ft (368.63 sq m)

Unit

1

Unit

2

Unit

5a

Unit

5bOffic

es

Unit 4

Lorry Park

Development Land

Unit 7a-d

Moor

gate

Roa

d

Unit

3




TENANCY SCHEDULE


Description Use Tenant Name Area Sq Ft Lease Start Lease Expiry Breaks Gross Rent £ pa

Rent £ psf

ERV £ pa

ERV £ psf Comment

Unit 1 Industrial Impact Safety Glass Ltd 27,900 23/04/2004 22/04/2014 75,000 £2.69 83,700 £3.00 Lease renewal in negotiations. Effectively FRI terms subject to a Schedule of condition.

Units 2 & 3 Industrial Kammac Plc 137,250 21/08/2014 20/08/2017 325,000 £2.37 343,125 £2.50 Tenant was in occupation previously. Service charge cap of £0.60 psf. Effectively FRI terms subject to a schedule of condition.

5a & 5b IndustrialK&A Logistic Solutions Limited (surety - Tailored Recruitment

Services Limited)199,250 26/09/2014 25/09/2017 Mutual break any time after

26/9/2015 498,125 £2.50 498,125 £2.50Effectively FRI terms subject to a schedule of condition. Break subject to 3 months notice. Outside L&T Act. Unit is fully racked (provided by the landlord).

Unit 4 Industrial JJ Smith & Co (Woodworking Machinery) Ltd 31,499 02/02/2001 01/02/2021 02/02/2016 (6 months notice) 92,500 £2.94 102,372 £3.25 Effectively FRI terms subject to a schedule of conditon.Limited service charge liability on

roof / rainwater goods of £1657+RPI

Unit 7A Industrial Total Outsource Inc. 2,422 16/12/2009 15/12/2012 20,500 £8.46 10,899 £4.50 Effectively FRI terms subject to a schedule of condition. Existing tenant still in occupation holding over paying a rent of £20,500 pa.

Unit 7B Industrial Muni- Serv (Hire) Ltd 2,422 14/05/2009 13/05/2014 10,315 £4.26 10,899 £4.50 Effectively FRI terms subject to a schedule of condition.

Unit 7C Industrial TNT Post UK Ltd 2,500 19/03/2014 18/03/2016 10,000 £4.00 11,250 £4.50 Service charge cap of £1.70 psf.Effectively FRI terms subject to a schedule of condtion. Outside L&T Act

Unit 7D & E Industrial Enterprise Liverpool Ltd 4,855 10/10/2008 09/10/2015 113,275 £4.53 21,848 £4.50 Effectively FRI terms subject to a Schedule of condition. Outside the L&T Act.

Land Land Enterprise Liverpool Ltd 91,260 £27,000 Lease for units 7D and E includes this 4 acre surfaced lorry and car park.

Suite 1 Office 3501 Travel Limited 451 01/08/2012 31/07/2013 2,351 £5.21 2,706 £6.00 Effectively FRI terms subject to a schedule of condition. Annual Licence, rolling over.

Suite 2a Office A4E Ltd 4,809 29/05/2012 01/05/2018 01/09/2014 - 30/11/2014. Any time after 01/04/2016 45,686 £9.50 28,854 £6.00

Break subject to 3 montice notice subject to a rent penalty of £5,271.35. If the tenant does not break up until 30/11/2014 they are granted a rent free period from 01/12/2014 - 28/02/2015. Outside the L&T Act. Effectively FRI terms subject to Schedule of condition. Service charge cap of £9,730 plus RPI.

Suite 2b Office Corporate Mobile Connections Ltd 1,851 14/02/2014 13/02/2017 9,718 £5.25 11,106 £6.00 Effectively FRI terms subject to Schedule of condition.Tenant in occupation, lease agreed waiting to be signed. Lease subject to 11 months rent free period. Lease outside L&T Act.

Suite 3 Office Vacant 5,245 0 £0.00 31,470 £6.00 Fully refurbished. Not currently in rating list.

Suite 4 Office Vacant 5,432 0 £0.00 32,592 £6.00 Fully refurbished. Not curretnly in rating list.

Suite 5a Office Kammac Plc 137 TBC 0 £0.00 822 £6.00 New letting in legals for a 3 year term at a pepercorn rent. Effectively FRI terms subject to a schedule of conditon. Under refurbishment at the tenants cost.

Suite 5b - 5cOffice

Kammac Plc 429 TBC 0 £0.00 2,574 £6.00 As above

Suite 5d Office Kammac Plc 194 TBC 0 £0.00 1,164 £6.00 As aboveSuite 5e Office Kammac Plc 404 TBC 0 £0.00 2,424 £6.00 As aboveSuite 5f Office Kammac Plc 1,846 TBC 0 £0.00 11,076 £6.00 As above

Suite 6 Office Vacant 6,318 £0.00 37,908 £6.00 Fully refurbished

Suite 7a & 7b Office Ardent Credit Services Ltd 5,457 19/01/2014 18/01/2019 20/01/2017 25,500 £4.67 32,742 £6.00 Effectively FRI terms subject to a schedule of condition. Break subject to 6 months notice. Lease outside the L&T Act.

Enterprise Centre Office Various 3,968 26,275 £6.62 33,728 £8.50

8x 1 year agreements in place on all inclusive rentals as follows, £2,039 p.a (Cheshire Distribution), £2,400 p.a (Merseychem), £3,000p.a (Tyrell Electrical), £1,440 p.a. (Merseyside Heating & Plumbing), £1,440 p.a. (Golfpro Direct), £2,040 p.a. (Taybros logistics), £5,340 (Integral UK Ltd), £6,300 (Carlisle Security Services) £8,000 (Catch 22). Total gross income is £32,239.52. Serivce charge shortfall of £5,964.37pa.

MOORGATE POINT, MOORGATE ROAD,KNOWSLEY, LIVERPOOL L33






INDUSTRIAL MARKET COMMENTARY - MERSEYSIDE

Date Property Size

Sq Ft Occupier Price /

Rent Per Sq Ft

Comment

July 14 The Bear, Widnes

105,000 Express Gifts £2.75 High bay second-hand distribution units.

June 14 Pimbo Point, Skelmersdale

109,000 Victorian Plumbing

£2.50 Low eaves former manufacturing facility

May 14 The Hive, Speke

150,000 Johnson Controls £5.35 New purpose built distribution facility

2014 Switch Point, Aintree

150,000 KTC Edibles £10.00 Old low eaves manufacturing facility

2014 DBR, Aintree

105,000 IDR Logistics £1.75 Old low eaves manufacturing facility

2014 XL Skelmersdale

400,000 DHL £4.25 Modern distribution facility

2014 Fallows Way, Huyton

95,000 Liverpool Football Club

£3.00 Second-hand distribution facility

2013 Jupiter, Knowsley

148,000 Toyota £4.15 Modern distribution facility

2013 The Cube

500,000 B&M Bargain £4.25 New purpose built distribution facility

2013 29 Lees Road, Knowsley

85,000 Baker Hughes £2.50 Second-hand former manufacturing facility

Big Rack, Knowsley

425,000 B&M Bargains £1.50 Second-hand former manufacturing facility

The total 2014 service charge budget is £314,040 andis made up of 3 separate schedules. The servicecharge provides for the maintenance of the commonplant and machinery such as sprinklers, fabric repairand maintenance, 24 hour on site security, landscapingand cleaning together with an on-site landlordsmanagement team. The service charge runs below theCAPS contained within the occupational leases thatare applicable

The Merseyside industrial market continues to be veryactive both in the manufacturing and distributionsectors, driven by a number of factors as follows:-

• Growth of the Port of Liverpool with a new deep seacontainer terminal currently under construction duefor completion in 2016.

• A £300m investment for the construction of a newMersey Crossing bridge between Runcorn andWidnes which is now committed and underway, duefor completion in 2017.

• The continuing growth of production at the JaguarLand Rover Halewood Plant, Speke creating a spinoff supplier and storage contract.

• An extensive and relatively congestion free motorwaynetwork system.

• A good supply of cost effective and skilled labourforce.

The above transactions show the strength and depthin the market for all types of industrial accommodationin Merseyside from new build modern distribution unitsto older former manufacturing facilities.

This confidence in the market has resulted in adeveloper commencing on a speculative scheme oftwo new buildings in Knowsley, Venus 100 (110,000 sqft) and Venus 200 (200,000 sq ft) that shouldcommence next year.

All of the previous has resulted in the region being able to attract new occupiers and facilitate the growth ofexisting occupiers. This is evidenced by a number of recent transactions as follows:-

We consider that there are a number of inherent asset management opportunities, which include:

• Let the void space• Improve the existing signage and branding of the estate

• Improve the weighted average unexpired terms through proactive re-gear and lease renewals on forthcoming lease expiries

• Develop out site to the rear

An Energy Performance Certificate has beencommissioned and is available on request. -

SERVICE CHARGE ASSET MANAGEMENT

ENERGY PERFORMANCECERTIFICATE



VATWe understand that the property has been elected forVAT. As such it is anticipated a sale will be handled asa Transfer of a Going Concern.

PROPOSALWe are instructed to seek offers in the region of£11,000,000 (Eleven Million Pounds), for the entireproperty and site subject to contract and exclusive ofVAT.

A purchase at this level would reflect a net initial yieldof 11.73% and a capital value of £21.61 psf afterassuming a modest £150,000 per acre for thedevelopment land assuming purchaser’s costs at5.8%.

CORPORATE SALEA corporate aquisition is possible. Further informationis available on request.

CONTACTTo discuss the opportunity or to arrange an inspection,please contact the joint agents.

Simon Wood

Andrew Stewart

Andrew Littler

These particulars do not form part of any contract. The Joint Agents nor any of their directors,employees or agents is authorised to give or make any warranty or representation on behalf of anyparty. Whilst information and particulars are given in good faith, intending purchasers or tenantsmust satisfy themselves independently as to the accuracy of all matters on which they intend to rely. All negotiations are subject to contract. Subject to Contract. October 2014

T: 01925 320 520E: [email protected]

T: 0161 935 8245E: [email protected]

T: 01942 252 803 E: [email protected]


StewartMontrose

0161 935 8245

Chartered SurveyorsProperty Investment Consultants

Documents

SIGNIFICANT HIGH YIELDING MULTI-LET … quality affordable accommodation with excellent occupational history. Site of circa 27 acres in total including a development plot of 6.3 acres