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Units 1 8 UNITS 1-8 Queensway Queensway Meadows Meadows Industrial Estate, Industrial Estate, Newport Newport NP19 4SP

Investment Considerations • Multi-let to Yearntree Ltd (t/a Deflecto Europe) and Climar Industries Limited. • Part leaseback of Deflecto Europe’s manufacturing and distribution headquarters.

We are instructed to seek offers in excess of £3,150,000 (Three Million One Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.

• 67,136 sq ft (6,237.07 sq m) of recently refurbished industrial premises with future potential for more granular multi-let accommodation.

A purchase at this level would equate to a net initial yield of 7.41%, subject to usual purchaser’s costs of 7.1175% and reflects a capital value of £505.04 per sq m (£46.92 per sq ft).

• New 10 years lease (3rd & 5th year break) to Yearntree Ltd from completion and 5-year lease from 11th May 2020 (tenant break May 2022, 2023 & 2024) to Climar Industries Limited.

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

• Total rental of £250,181 per annum (£40.115 per sq m / £3.73 per sq ft). • Located within easy access of Junction 23a of the M4 motorway. • Major occupiers in the vicinity include Halo Foods, Royal Mail, Amazon, Howdens, Europcar and Storage Giant. • Site area of 1.32 ha (3.26 acres) equating to a site coverage of 38.50%. • Freehold.

Units 1 - 8 Queensway Meadows Industrial Estate, Newport

Location

81 0

The City of Newport is one of South Wales’ primary commercial centres with an approximate resident population of 137,000 with a wider catchment population of 478,000, within a 30-minute drive.

E W AY

0 A4

5 M

SWINDON

NEWPORT

BRISTOL CHANNEL

A350

A4050

A4232

CARDIFF

BRISTOL

WESTON-SUPER -MARE

CHIPPENHAM

BARRY

BRISTOL AIRPORT

A36

BATH

A39

A36

MINEHEAD

A39

BRIDGWATER

UAR

YR OA

S RE

EST

CLEARWATER RD

A48

CARDIFF AIRPORT

A48

BRIDGEND

70 A4

CIRENCESTER

0 30

A47

PORT TALBOT

26 27

0 A40

CHEPSTOW 41 41 40 39 38

A47

GLOUCESTER

A449

CHELTENHAM

MONMOUTH

A465

A4042

The property is well located on the Queensway Meadows Industrial Estate, having the benefit of proximity to Junction 23a of the M4 motorway via A4810 and direct access to the City Centre. ROSS-ON-WYE

Situation

BRECON

ABERGAVENNY

LLISWERRY HIGH SCHOOL

Newport has also seen the development of a new 4,000-person capacity International Convention Centre, which has been built at The Celtic Manor Hotel and Golf Resort, located approximately 4 miles east of the city centre.

MERTHYR TYDFIL

810

CITY OF NEWPORT CAMPUS

Newport has benefited from a number of new developments in recent years, most notably the Friars Walk shopping centre and leisure complex which offers a range of fashion outlets, cafés and restaurants. Both Newport Railway and Bus Stations have recently been substantially improved and accessibility by road into the city from the East has also been significantly enhanced with the completion of the A4810.

SWANSEA

Estuary Road Newport NP19 4SP

GLASTONBURY

A36

SALISBURY

Newport Retail Park and International Sports Village are within close proximity to the property and other adjacent occupiers include Royal Mail, Halo Foods, Howdens and Europcar. St Modwen Park Newport sits along the A4810 within close proximity of the property. This 100 acre strategic site already comprises c.213,000 sq ft of speculatively built industrial accommodation at which Amazon occupied the first unit (48,149 sq ft). The occupier mix within Queensway Meadows Industrial Estate and the surrounding area shows the proven nature of this location for industrial/logistics and trade counter occupiers. The attractive nature of this location is further supported by the St Modwen Park scheme and the presence of other logistics occupiers on this eastern side of Newport such as Tesco and Wilkinson’s.

Description

Units 1 â€“ 3

Unit 4 & 5

The property is split into a number of units which are easily separated and identified upon the aerial plan below. Units 1 â€“ 3, 4&5 and 5a are located around a yard area which has its own gated access from Estuary Road. This secure yard is currently used for logistics deliveries, storage and some parking. Units 6, 7 & 8 are accessed from Estuary Road across a front yard area that is currently used for servicing/deliveries and 44 car parking spaces. The majority of the accommodation was constructed in the 1980â€™s with an extension (Unit 5a) being added in 1999.

This terrace of units are of steel portal frame construction, clad with steel profile sheeting sat on a 2 meter high brick wall perimeter. The floor is of a solid concrete construction and the roof has recently been over clad and benefits from new translucent panels to approximately 5%. Each of the units has a small ground and first floor office with a doubleglazed metal frame window to the first floor front facing elevation. Each unit has a 3.60m wide, 4.6m high roller shutter main access door and additional pedestrian door into a two-storey office, w.c and kitchen facility. The first-floor office within Unit 1 is accessed only from a staircase within Unit 2. The units are all separated by full height solid brick painted walls, with interconnecting sections knocked out for internal access between each unit. These units have a maximum eaves height of 7m.

These end of terrace units are of steel portal frame construction, clad with steel profile sheeting sat on a 2 meter high brick wall perimeter. The floor is of a solid concrete construction and the roof has recently been over clad and benefits from new translucent panels to approximately 5%. The units are currently used as a single storage facility, with four 3.7m wide, 4.5m high roller shutter access doors. These units have a maximum eaves height of 8.25m and are racked, used or storage. There is a knock through internal connecting access constructed into the adjacent unit 6.

7&8 6 5a

4&5 2 1

Unit 5a This unit is of modern steel portal frame construction, clad with steel profile sheeting. The floor is of solid concrete construction and the roof is also steel profile sheeting that has been insulated and lined. The unit is access via two 3m wide and 4.5m high roller shutter doors one facing the yard and another facing a small surfaced area the rear eastern elevation. The unit is racked and used for storage and can also be access through an internal opening from unit 6. This unit has a maximum eaves height of 9m. Addition land to the rear of unit 5a could provide for a further access and yard accommodation from Lee Way, subject to planning.

Unit 6 This end of terrace unit is of steel portal frame construction, clad with steel profile sheeting sat on a 2 meter high brick wall perimeter. The floor is of a solid concrete construction and the roof has recently been over clad, benefitting from new translucent panels to approximately 10%. This unit is currently used as the manufacturing facility, with the main offices and reception to the front elevation. The two storey office has carpet floors, plastered and painted walls with suspended ceilings with recessed VDU lighting and first floor metal glazed windows. In addition to the offices, there is a workshop with mezzanine level above at the front of the unit sat behind the front elevation of two (3.7m wide by 4.5m high) roller shutter doors. The mezzanine is access from a door at first floor level of the office accommodation or from an external metal staircase down onto the manufacturing floor. This unit has a maximum eaves height of 8.25m. There is an internal connecting access into the adjacent units 4&5.

Unit 7 & 8 These two units currently act as a single open plan manufacturing facility for Climar Industries, with a two-storey office, w.c and kitchen facility on the front elevation. The units are of steel portal frame construction, clad with steel profile sheeting sat on a 2-meter-high brick wall perimeter. The floor is of a solid concrete construction and the roof has recently been over clad, benefitting from new translucent panels to approximately 10%. Internally the side elevations are of full height solid brick construction. The office element has plastered and painted walls and ceilings throughout, with surface mounted fluorescent strip lighting. The units can be accessed from four (3.7m wide by 4.5m high) roller shutter doors facing the front elevation and car park, two in each unit and four pedestrian access doors into the offices on the front elevation.

The Site The property extends to approximately 1.32 hectares (3.26 acres) as edged in red & blue upon the Ordnance Survey extract below.

For identification purposes only

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate gross internal floor areas: Unit 1 Warehouse 1st floor office

291.66 sq m 20.70 sq m

(3,139 sq ft) (223 sq ft)

289.45 sq m 27.84 sq m

(3116 sq ft) (300 sq ft)

290.93 sq m 28.22 sq m

(3,132 sq ft) (304 sq ft)

1,185.46 sq m

(12,760 sq ft)

548.64 sq m

(5,906 sq ft)

1,010.82 sq m 181.35 sq m 202.48 sq m 4,077.55 sq m

(10,880 sq ft) (1,952 sq ft) (2,180 sq ft) (43,891 sq ft)

Warehouse 1st floor office Sub Total (GIA)

2010.12 sq m 149.40 sq m 2,159.52 sq m

(21,637 sq ft) (1,608 sq ft) (23,245 sq ft)

Total (GIA)

6,237.07 sq m

(67,136 sq ft)

Unit 2 Warehouse 1st floor office Unit 3 Warehouse 1st floor office Unit 4 & 5 Warehouse Unit 5a Warehouse Unit 6 Warehouse Mezzanine 1st floor office Sub Total (GIA) Unit 7 & 8

Tenure The property is held Freehold

Tenancies The property is to be sold with Units 1 – 6 Queensway Meadows being leased back Yearntree Ltd (t/a Deflecto Europe) and Units 7&8 Queensways Meadows under an existing lease to Climar Industries. Upon completion of the sale, Yearntree Limited will enter into a new lease upon the land and buildings known as Units 1-6 shown edged in blue on the OS Survey Extract. The salient terms of the lease are set out below:

The salient details of the Climar Industries lease of Units 7 & 8 as shown edged in red on the OS Survey Extract are set out below :

Tenant: Yearntree Limited (t/a Deflecto Europe)

Tenant: Climar Industries Limited

Property: Unit 1 - 6 Queensway Meadows Industrial Estate

Property: Unit 7&8 Queensway Meadows Industrial Estate

Term: New 10 year lease on completion of the sale

Term: 11th May 2020 – 10th May 2025

Tenant Break: 3rd and 5th anniversaries of the term, 6 months’ written notice

Rent: Stepped Rent - £57,398 (11th May 2020 – 31st December 2020) - £68,877 (1st January 2021 – 30th April 2022) - £74,617 per annum from 1st May 2022

Rent: £175,564 per annum (£4.00 per sq ft) Rent Review: Open Market on 5th anniversary of the term Repair: Clean, tidy and in good repair and condition (subject to a photographic schedule of condition) Alienation: The tenant will be permitted to assign the whole and sub-let whole or part of their leasehold interest subject to the Landlords consent, not to be unreasonable withheld or delayed. L&T Act: Included

Units

Tenant

Sq m (sq ft)

Rent (per annum exclusive)

1-6

Yearntree Limited

4,077.55 (43,891)

£175,564

7&8

Climar Industries Limited

2,159.52 (23,245)

£74,617 (vendor top up May 2022 rental level)

Total

6,237.07 (67,136)

£250,181

Tenant Break: 6 months’ notice from either 11th May 2022, 11th May 2023 or 11th May 2024 Repair: Clean, tidy and in good repair and condition (tenant not responsible for roof or valley gutters, however the roof has recently been over-clad) L&T Act: Rights excluded

Covenant Information

Deflecto Europe are one of the largest suppliers of office desktop products, manufacturing and supplying across Europe from their head quarter premises in Newport. More recently, Deflecto has diversified into the manufacturing and development of PPE, including SteriTouch® products that has made the business resilient through the COVID pandemic. Yearntree Limited (t/a Deflecto Europe) have a Dun & Bradstreet rating of 2A 2, which represents a lower than average risk of business failure, based on a 2018 turnover of £6,254,295 and a net worth of £2,183,415. Further information can be found at: www.deflecto-europe.com

Climar Industries are a manufacturer and distributor of ColourFence products across the UK. Climar Industries Limited have a Dun & Bradstreet rating of 1A1, which represents a lower than average risk of business failure, based upon a net worth of £980,520. Further financial information can be found at: www.colourfence.co.uk

South Wales Industrial & Logistics Market Commentary Following a challenging but busy first half of the year for the industrial and logistics market, demand continued to increase throughout H2, in particular for logistics and distribution premises. This was a UK wide trend that the South Wales market has benefitted strongly from, in part due to the removal of the Severn Bridge toll, allowing parts of East Wales to be a realistic option for cross geography servicing of the wider region.

In terms of investment market activity, South Wales remained an attractive location for multi-let and single let industrial warehousing throughout 2020. Whilst stock levels were depressed due to the economic challenges faced throughout the year, a number of notable transactions did occur in this attractive sector. Recent transactions include: Property

Despite the increased appeal in the location, South Wales still has a dearth of high-quality new build industrial accommodation. This has allowed supply and demand factors to drive achievable rents on existing stock in accessible locations such as Queensway Meadows, Newport. From a micro location perspective, this compressed market has helped deliver deals such as the letting of the former Atlas Elektronik accommodation (163,970 sq ft) in October 2020 to Urban Myth Films at £4.87 per sq ft. In addition, the lettings of Unit 5 Avana Business Park, Rogerstone extending to 11,000 sq ft completed to Oakland Furnitureland Group Limited at £5.00 per sq ft in November 2020, whilst St Modwen Business Park is quoting £6.95 per sq ft for 30,000 sq ft and £6.50 per sq ft for the 101,000 sq ft for their speculative buildings due for completion in May 2021.

Area (Sq ft)

Tenant

WAULT to Break (years)

Price

NIY

Capital Value £/ psf

Purchaser

The Levels, December Capital 2020 Business Park

81,437

Multi-let

1.75

£6.25m

6.20%

£76.74

Stenprop

November 2020

33,372

Multi-let

2.5

£3.45

6.51%

£103.4

Chancery Gate

Unit 1 November Lakeside, 2020 St Mellons Business Park

30,553

BBC

£2.14

6.00%

£70.00

Private Investor

Fortran Road, St Mellons

October 2020

39,040

Gyrus Medical Ltd

4.3

£3.2

6.35%

£82.00

Private Investor

Queensway Meadows

August 2020

40,585

Halo Foods

6.5

£1.98m

6.93%

£48.78

Private Investor

Stuart Close, Penarth Road, Cardiff

January 2020

73,356

Multi-let

17.00

£4.69m

6.37%

£63.93

Telereal Trillium

West Point, Penarth Road, Cardiff

Date

EPC The properties have all been assessed with either a C or D rating. The certificates can be made available upon request.

Units 1 - 8 Queensway Meadows Industrial Estate, Newport

VAT We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price.

Anti-Money Laundering Regulations In order to discharge its legal obligations, including under applicable anti-money laundering regulations, C&W will require certain information of the successful bidder. In submitting a bid, you agree to provide such information when Heads of Terms are agreed.

Further Information For further information or to arrange an inspection, please contact:

Proposal We are instructed to seek offers in excess of £3,150,000 (Three Million One Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would equate to a net initial yield of 7.41%, subject to usual purchaser’s costs of 7.1175% and reflects a capital value of £505.04 per sq m (£46.92 per sq ft).

Andrew Gibson Cushman & Wakefield T: 07834 449163 E: andrew.gibson@cushwake.com

Important Notice Cushman & Wakefield Copyright 2020. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. Design by Martin Hopkins | 02920 461233 | www.martinhopkins.co.uk January 2021