216 SPRINGFIELD ROAD, CM2 6BN

C H E L M S F O R D

BUSY BEES

PRIME LONG LET DAY NURSERY INVESTMENT OPPORTUNITY WITH OVER 23.7 YEARS UNEXPIRED SUBJECT TO FIVE YEARLY FIXED RENTAL UPLIFTS OF 2.5% P.A. COMPOUNDED

PRIME LONG LET DAY NURSERY INVESTMENT OPPORTUNITY WITH OVER 23.7 YEARS UNEXPIRED SUBJECT TO FIVE YEARLY FIXED RENTAL UPLIFTS OF 2.5% P.A. COMPOUNDED

INVESTMENT CONSIDERATIONS

■ Well located in the affluent south east City of Chelmsford

■ Comprehensively redeveloped in 2016 to provide a 6,060 sq ft nursery with large outdoor play area and 10 car parking spaces

■ Let to the Dun and Bradstreet rated 5A1 covenant of Busy Bees Nurseries Limited

■ Long unexpired lease term of 23.7 years (no breaks)

■ Passing rent of £132,000 per annum reflecting £21.78 psf

■ 5 yearly fixed rental increases of 2.5% p.a. compounded

■ 0.4 acre site with low site coverage of approximately 22%

■ Freehold

We are instructed to seek offers in excess of £2,475,000 (Two Million Four Hundred And Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. An acquisition at this level would provide the following yield profile after allowing for purchaser’s costs of 6.38%.

Net Initial Yield 5.01%23 September 2021 5.67%23 September 2026 6.42%23 September 2031 7.26%23 September 2036 8.22%

C H E L M S F O R D

BUSY BEES

LOCATION

Chelmsford is an affluent City in the county of Essex, within London’s commuter belt. The City is positioned 30 miles (48.2 km) north east of Central London, 21 miles (33.8 km) south of Colchester and 16 miles (25.7 km) east of Harlow.

Chelmsford benefits from excellent road and rail networks connecting it to Central London and the south east. The A12 dual carriageway provides access to the M25 motorway (Junction 28) within 12 miles (19.3 km) to the south-west. The A414 provides access to the M11 and Harlow to the east, with the A130 providing access to Braintree to the north and Basildon to the south.

Chelmsford Railway Station benefits from outstanding high speed connections to London Liverpool Street with a fastest journey time of 34 minutes. During peak times there are 7 trains per hour to London Liverpool Street. Chelmsford Railway Station is the second busiest station in the East of England; in 2013, £3.2m was committed to a programme of major improvements. The first phase of improvements to the public realm around the station entrance has been completed and includes a new ticket hall and retail units. The final phase, Mill Yard Gateway pedestrian access enhancement, is due to complete in April 2018.

London Stansted Airport is located 20 miles (32.2 km) to the north and can be accessed by car within 35 minutes. London City Airport, serving around 50 destinations at present, can also be reached within 45 minutes.

CHELMSFORD

J27J25J23

J21

J20

J19

J16

J15

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A127

A40

A21

A3

A414

A130

A414

A12

A12

A130

A13

A13

A10

A41

A41A404

A413

A1

A322

A316

A2

A2

A20

A23

A23

A3

A3

A309

M11

M11

M11 M25

M25

M25

M25

M25

M25

M25

M25

M1

M1

M1

M10

M40

M40

M4

M4

M4

M3

M3

M3

M23

M26

M20

M20

M20

M2

A1(M)

Heathrow

StanstedAirport20 Mins

HarlowHertford

Epping ChippingOngar

Hatfield

Enfield

Chigwell

Romford

BillericayWickford

Brentwood

Basildon

HemelHempstead

St Albans

Watford

Wembley

HarrowBrentCross

HighWycombe

Staines

Slough

Windsor

Weybridge

RedhillDorkingGuildford Reigate

Woking

Dartford

Bromley

Gravesend

Shoreham

Croydon

Biggin Hill

Sevenoaks

Epsom

Sutton

Swanley

LONDON

B1137

SPRIN

GFIELD

ROAD

A10

09

AR

BOU

R LA

NE

LAWN

LN

VICTORIA RD

VIC

TOR

IA R

D S

B1006

B10

08

B10

06

CH

ELM

ER V

ALL

EY R

D

SPRING FIELD GREEN

SANDFORD RD

SPRIN

GFIELD

PAR

K LA

NEW

HA

RF RD

BEEL

EIG

H L

INK

KINGSTON AVE

HIL

L R

D

SPRINGFIELD PARK ROAD

SPRINGFIELD PARK AVE

QU

EEN

S R

D

H OFFMANNS WAY

NEW ST

DUKE ST

VIADUCT R

D

ST

UM

P LAN

E

NEW

DU

KES

WAY

WATERL OO

LA

NE

A13

8A

138

A13

8A

138

CH ELMER VILLAGE WAY

A1060

A1060

CoronationPark

LionmedeRecreation

Ground

CentralPark

Rive

r Che

lmer

ChelmsfordCathedral

ChelmsfordStation

TOWNCENTRE

Riverside Ice& Leisure Centre

ChelmerVillageRetailPark

PRIME LONG LET DAY NURSERY INVESTMENT OPPORTUNITY WITH OVER 23.7 YEARS UNEXPIRED SUBJECT TO FIVE YEARLY FIXED RENTAL UPLIFTS OF 2.5% P.A. COMPOUNDED

DEMOGRAPHICS

The total population within the Chelmsford primary catchment area is 410,000 with an estimated shopping population of 262,000. The City is projected to see above average growth in population over 2016-2021.

The Chelmsford area contains a significantly above average proportion of adults of working age categorised within the most affluent AB social group ranking 30 out of 200 PROMIS centres on the PMA Affluence Indicator in 2011. Furthermore, level of car ownership in Chelmsford is significantly above average within a particularly high proportion of 2 car households.

DEVELOPMENT IN CHELMSFORD

BEAULIEU

Beaulieu is a large scale mixed use development situated just 1.7 miles (2.7 km) to the north east of the property. This joint venture between L&Q and Countryside will provide 3,600 new homes as well as retail, leisure and office accommodation. Also included in the plans are primary and secondary schools, as well as a brand new railway station.

BOND STREET SHOPPING CENTRE

Opened in September 2016, this scheme includes a 120,000 sq ft John Lewis department store as well as 20 other retail units, an Everyman Cinema and an extensive food and beverage offering.

CROSSRAIL SHENFIELD STATION

Situated a 20 minute drive to the south of Chelmsford (12 minutes by train), Shenfield Station will become the eastern terminus of the new Elizabeth Line in December 2019. With 12 services per hour to central London, this will further cement the areas reputation as an excellent commuting location.

C H E L M S F O R D

BUSY BEES

SITUATION

The property is situated on Springfield Road (B1137) at the junction with Brookhurst Close in a predominantly residential area, a short walk from Lionmede Recreation Ground to the south. Chelmsford town centre is situated a 10 minute walk to the east of the property,

Chelmsford Railway Station is a 20 minute walk (6 minute drive) to the east, with regular bus services running along Springfield Road to and from Chelmsford City Centre.

DESCRIPTION

The building was comprehensively redeveloped in 2016 to provide a three storey and part single-storey day nursery.

Vehicular access is from Springfield Road with a total of 10 car parking spaces provided, a bike storage unit is also located to the western frontage of the building.

Access is gained through secure doors to the reception and the nursery which has been subdivided to separate the varying age groups. The ground floor comprises the reception, kitchen, office, WCs as well as nursery accommodation for babies and pre-school children. The second floor comprises nursery accommodation for toddlers and WCs. The third floor comprises staff accommodation and storage.

The property has been fitted out to a high standard in Busy Bees’ Corporate Style and benefits from a large outdoor playground. The nursery is registered for a capacity of 102 children.

38.7m

37.8m

BROOK

SPRINGFIELD ROAD B

1137

HURST CLOSE

DALRYMPLE CLOSE

Tennis Courts

6

1

216289

218

12

291

216a

214

ChildrensNursery

0m 10m 20m 30m

Busy Bees, 216 Springfield Road, Chelmsford CM2 6BN

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:674

© Crown Copyright, ES 100004106. For identification purposes only.

PRIME LONG LET DAY NURSERY INVESTMENT OPPORTUNITY WITH OVER 23.7 YEARS UNEXPIRED SUBJECT TO FIVE YEARLY FIXED RENTAL UPLIFTS OF 2.5% P.A. COMPOUNDEDC H E L M S F O R D

BUSY BEES

COVENANT

BUSY BEES NURSERIES LIMITED – (03454787)

Dun and Bradstreet Rated 5A1Busy Bees is the largest childcare provider in the UK, having been established for over 33 years. The company now operates from over 340 sites across the UK providing nearly 28,500 places.

Busy Bees acquired Leapfrog (88 nurseries) in 2007, TLC (9 nurseries) in 2008, Early Years Childcare (9 nurseries) in 2011, Just Learning (71 nurseries) in 2012, Kinder Nursery Group (12 nurseries) in 2014 and Caring Daycare (12 nurseries) in 2014, Kids 1st (12 nurseries) in 2015, Bush Babies and Positive Steps in 2016. In 2017 they acquired Treetops Nurseries (61 nurseries).

Further information can be found at www.busybeeschildcare.com

31 Dec 2016 31 Dec 2015 31 Dec 2014

Turnover £48,647,000 £48,317,000 £34,060,882

Pre-Tax Profit £3,086,000 £6,543,000 £4,722,845

Total Net Worth £57,139,000 £53,912,000 £46,852,491

ACCOMMODATIONThe property provides the following approximate floor areas. Floor plans are available in the dataroom.

GIA NIAFloor Sq Ft Sq M Sq Ft Sq M

Ground 3,810 354.0 3,586 333.1

First 1,464 136.0 1,354 125,8

Second 786 73.0 726 67.5

Total 6,060 563.0 5,666 526.4

SITE AREAThe site extends to approximately 0.4 acres (0.162 hectares).

TENANCYThe property is let to Busy Bees Nurseries Limited on a 25 year lease (no breaks) from 23 September 2016 expiring 22 September 2041 at a rent of £132,000 pa, reflecting £21.78 psf. The rent is subject to fixed uplifts equal to 2.5% pa compounded, receivable 5 yearly.

TENUREThe property is held freehold.

PRIME LONG LET DAY NURSERY INVESTMENT OPPORTUNITY WITH OVER 23.7 YEARS UNEXPIRED SUBJECT TO FIVE YEARLY FIXED RENTAL UPLIFTS OF 2.5% P.A. COMPOUNDEDC H E L M S F O R D

BUSY BEES

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 02.18

PROPOSALWe are instructed to seek offers in excess of £2,475,000 (Two Million Four Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. An acquisition at this level would provide the following yield profile after allowing for purchaser’s costs of 6.38%.

Net Initial Yield 5.01% 23 September 2021 5.67%23 September 2026 6.42%23 September 2031 7.26%23 September 2036 8.22%

VATThe property has not been elected for VAT.

EPCThe property has an EPC rating of B45, a copy of which is available in the dataroom.

DATAROOMFor access to the Dataroom please use the following link:https://datarooms.allsop.co.uk/register/BusyBeesChelmsford

Lottie Hayward020 7543 6750lottie.hayward@allsop.co.uk

Andy Pointon020 7543 6720andy.pointon@allsop.co.uk

Ciaran McGivney020 7543 6888ciaran.mcgivney@allsop.co.uk

For further information or to make arrangements for viewing please contact:

www.allsop.co.uk