On behalf of A D Rodger & R N Phillips Esq, Joint LPA Receivers

High Yielding Multi Let Industrial Investment

Kitty Brewster Industrial Estate, Blyth, Northumberland gva.co.uk

Executive Summary Location & Situation • Kitty Brewster is strategically located

adjacent to a major junction of the A189 spine road dual carriageway and close to the A19 and A1(M).

• Forms part of the well established popular Blyth Riverside Business Park

• 10,154.2 sq mtrs (109,300 sq ft) on 6.28 acres (2.54 h.a.), total site coverage of 40%.

• Fully let to Baric Systems Ltd, Hamilton Brimer, Ashington Fabrication Co Ltd, Volvo Group Ltd , NMC and D Conway.

• Strong demand with pre let development under construction adjacent.

• 66% income guaranteed by the excellent covenant of Colfax Corporation.

• Rent roll of £265,647.38 pa let off low base rents providing excellent opportunity for growth.

• Fixed stepped rents on 33% initial income.

• Low capital value of just £21.87 per sq ft.

• Offers in excess of £2,390,000 exclusive of VAT reflecting an attractive 10.5% net initial yield, after purchasers’ costs at 5.8%.

Blyth is located on the east coast of Northumberland approximately 15 miles north of Newcastle upon Tyne and 6 miles south east of Morpeth. It is the largest town in Northumberland with a population of 31,800 people (Census:2001) historically having been developed as a major sea port for the export of coal traditionally with heavy industry being represented in the area.

Blyth has excellent road links with the A189 spine road dual carriageway linking with the A19 providing access to Ashington to the north and Sunderland, Hartlepool, Stockton and Middlesbrough to the south via the Tyne Tunnel.

Kitty Brewster estate is strategically located adjacent to a major junction of the A189 spine road dual carriageway, which provides direct access to the A19 linking to the A1(M). Kitty Brewster is part of the larger Blyth Riverside Business Park with neighbouring occupiers including Carillion, Burberry, Ferguson Transport, Drager, Flexible Engineering Solutions, Omega Plastics, Hire Torque Ltd, Colpitts, RSL Building Supplies, Amber RTM and Northumberland County Council. Other occupiers on the estate include Travis Perkins, Plumb Centre, Jewson and Howdens Joinery. In addition there is a large ASDA and retail park nearby. Immediately to the north of the subject site is a brand new 16,000 sq ft industrial unit currently under construction and pre let to Deardata (Archiving, Scanning & Shredding), illustrating the occupational demand/developer confidence in the area.

Description & Accommodation

The property comprises a complex of industrial buildings surrounding a substantial surfaced yard area together with an adjacent self contained detached warehouse, totalling 10,154.2m² (109,300 sq ft) on 6.28 acres (2.54 h.a.) reflecting a total site coverage of approximately 40%. West Side At the entrance to the site there is a part single, part two-storey office building of brickwork construction under pitched and flat roofs. Adjoining the office building is a substantial workshop of steel portal frame construction having profiled metal cladding to the walls and pitched roof, eaves height approximately 8M. Adjacent is a two bay warehouse of similar construction, eaves height approximately 8M. In addition there is a small workshop with a mono pitch roof and profiled metal decking over, with brick/blockwork elevations. East Side

On the opposite side of the yard there is a modern steel framed building with profiled asbestos cement cladding to the walls and pitched roof, eaves height approximately 5M. Towards the centre of the yard is a further detached unit with pitched roof and circa 5M eaves.

In the centre of the substantial surfaced yard area is a canopy covering four fuel tanks.

Tenure

Freehold .

Tenancy Details (See overleaf )

Covenant Information Colfax Corporation is a multinational business specializing in positive displacement and centrifugal technologies, engineering, manufacturing, distributing and supporting pumps and systems for key markets worldwide. These include commercial marine, defense, industrial, lubrication, oil and gas and power generation. The company’s latest turnover figure is $542,000,000 and is given the maximum credit rating of 100 by Creditsafe (1 being the least and 100 being the highest possible).

Hamilton Brimer Ltd and Baric Systems Ltd are subsidiaries of Colfax Corporation and both are principally involved with design and manufacturing worldwide.

Volvo Group Ltd deals with the sale and marketing of Volvo Truck and Bus products, parts, services and ancillary equipment. Latest accounts show the company reported a turnover of £356,000,000 pretax profits of £9,000,000 and shareholders funds of £102,000,000. Creditsafe has given a rating of 97 representing minimal risk.

Northumbria Coaches is involved with coach and bus hire. We understand they are a newly established company and therefore no accounts information is available.

We were unable to obtain accounts information for D Conway.

VAT The property has been elected for VAT.

Proposal We are instructed to seek offers in excess of £2,390,000 (Two Million Three Hundred & Ninety Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest.

A purchase at this level would reflect a net initial yield of 10.5% allowing for purchaser’s costs of 5.8% and a low capital value of £21.87 per sq ft.

Tenancy Details The estate is multi let in accordance with the below tenancy schedule

Unit Building Area

Sq ft Tenant Lease Terms Rent Comments

Office 4,715 (NIA)

Hamilton Brimer Ltd 10 years 1/4/2011 expiring 31/3/2021 Stepped rent over first 4 years, open market rent review after 5 years

Nil 1st year Rent commencement 1/4/2012 at £7,500p.a. Fixed increases in April 2013 to £17,863p.a., April 2014 to £22,649pa and April 2015 to £31,649pa. Open market review after 5 years. Guarantor: Colfax Corporation

1 Industrial 31,030 (GIA)

Ashington Fabrication Co Ltd (being assigned to Baric Systems Ltd)

10 years 1/1/2004 expiring 31/12/2013.

£43,793.53 (£1.41/sqft)

Reversionary rent

2,3 & 4 Industrial 35,575 (GIA)

Baric Systems Ltd 9 years 8 months from 25/7/2011 expiring 31/3/2021. Stepped rent over first 3 years, with open market rent review after 5 years

£87,750pa (£2.47/sq ft)

Fixed increases in July 2012 to £89,700 pa, July 2013 to £92,137pa, July 2014 to £97,851pa. Guarantor: Colfax Corporation.

5 Industrial 10,704 (GIA)

Volvo Group Ltd 3 years 2 months from 30/7/2009 expiring 1/10/2012

£39,000pa (£3.64/sq ft)

Tenant has requested lease renewal.

6 Industrial 1,578 (GIA)

Northumbria Coaches (NMC)

3 years from 1/6/2010 expiring 31/5/2013

£5,400pa (£3.42/sq ft)

7 Industrial 25,698 (GIA)

Wm Coulthard (being assigned to Baric Systems Ltd)

10 years from 7/4/2009 subject to open market rent review after 5 years

£88,500pa (3.44/sq ft)

Tenant break option 7/4/2012. Guarantor: Colfax Corporation

Container in Yard

Container - D Conway 5 years from 1/7/09 expiring 30/6/14

£1,203.85pa

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TOTALS

109,300 Sq Ft

£265,647.38 pa

08449 02 03 04

gva.co.uk

A is the trading name of GVA Grimley Limited. GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents 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 intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The

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