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STAPLETONS TYRE SERVICESCYGNET PARK, PETERBOROUGH, PE7 8JA

SALE & LEASEBACK20 YEARS UNBROKEN

WITH CPI UPLIFTS

Investment Summary• Prime logistics facility constructed in 2005 which extends to 181,975 sq ft (16,906 sq m)

• Located at Cygnet Park, Peterborough, close to Junction 17 of the A1(M) Motorway, which provides excellent links around the South East, Midlands and East Anglia

• Upon completion of the sale, STAPLETON’S (TYRE SERVICES) LIMITED will enter in to a new 20 year lease without break. The lease will be guaranteed by EUROPEAN TYRE ENTERPRISE LIMITED, the UK topco

• The passing rent will be £900,000 per annum (equating to £4.95 per sq ft) which will be reviewed on a 5-yearly basis in-line with CPI, subject to a collar and cap of 1.00% - 3.00% per annum compounded

• Stapleton’s (Tyre Services) Ltd are one of the UK’s largest tyre distributors with a turnover of in excess of £300m. The tenant has a D&B rating of 4A1 and the guarantor has a D&B rating of 5A1

• Site area extending to approximately 2.99 ha (7.39 acres), providing a site coverage of approximately 40%

• Freehold

ProposalOffers are invited in excess of £15,900,000 which reflects an attractive NIY of 5.25%, assuming purchaser’s costs of 7.73%. This reflects a price of £87 per sq ft.

A purchase at this level will reflect a minimum yield of 5.52% in 2024 given the CPI collar provided (i.e. 1.00% pa), or a yield of 6.09% in 2024 given the CPI cap (i.e. 3.00% pa).

STAPLETONS TYRE SERVICES Cygnet Park • Peterborough • PE7 8JA2

HotpointBookerCoca-ColaChiltern Cold StorageXPO LogisticsJewsonMercedes-BenzKelway (CDW)Plot 2 Opus ParkMastercardDeafblindHarvester

Dobbies Garden CentreBella ItaliaChiquitosFrankie & Benny’sNews CorporationPremier InnMcDonaldsBrewers FayreToby CarveryKrispy CremeKFC

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17

1216

15

11

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18

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21

20 19

2

6

1

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4

3

7

8

9

14

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For Indicative Purposes Only

STAPLETONSTYRE SERVICES

A15

A126

0

A1139

A1139

A15

A1260

A1260

A15

7

CLUB ROW

Junction 3

< A1(M)

1

2

34

5

22

23

10

11

6

12

A47

A605

A16

A1175

A14A1

A1

A15

A47

A1139

A141A1(M)

Wisbech

Wittering

Huntingdon

Corby

St Neots

PETERBOROUGH

Kettering

DownhamMarket

Welingborough


CAMBRIDGE

Spalding

King’sLynn

Banwell

March

Chatteris

Ely

Bedford

Transport Links

Rail Road Air Sea

London King’s Cross Central London Luton Airport Felixstowe 50 mins 85 miles 60 miles 97 miles

York Cambridge Stansted Airport Harwich 1 hr 10 mins 35 miles 65 miles 111 miles

Leeds Leicester East Midlands Airport 1 hr 30 mins 42 miles 59 miles

Birmingham Birmingham 1 hr 45 mins 75 miles

LocationPeterborough is an established cathedral city within Cambridgeshire, being one of the largest cities within the South East region. The city is situated approximately 85 miles north east of London, 35 miles north of Cambridge and 75 miles east of Birmingham.

The city is situated east of the A1(M) Motorway, which provides an excellent north-south route along the East of England, down to the M25 and London in a southbound direction, and providing connections to Yorkshire, Lincolnshire and the North East in a northbound direction. The A47 provides access to Junction 21 of the M1 to the west, whilst the A47 eastbound provides access to East Anglia.

Peterborough Railway Station is situated on the East Coast Mainline which allows direct access to London King’s Cross with a journey time of approximately 50 minutes. Northbound services run regularly to destinations such as York (1 hr 10 min), Leeds (1 hr 30 min) and Newcastle (2 hr 25 min). Furthermore, the station is served the Cross Country operated Birmingham to Peterborough line which provides services to Leicester (55 min) and Birmingham (1 hr 45 min).

Peterborough is well served by local airports including Luton Airport which is approximately 60 miles to the south west and Stansted Airport which is approximately 65 miles to the south east. The A14 East West dual carriageway, which connects to the A1(M), provides access to the deep water ports of Felixstowe and Harwich.

A1(M)

M11

M40

M4

M3 M20

M25

M25

M5

M5 M1

M1

M6

A1(M)

A1(M)

NORTHAMPTON CAMBRIDGE

CHELMSFORD

COLCHESTER

READING

CRAWLEY

OXFORD

NOTTINGHAM

CHELTENHAM

WOLVERHAMPTON

LIVERPOOL

NORWICH

SHEFFIELD

LONDON

PETERBOROUGH

BRISTOL

MANCHESTER

BIRMINGHAM

GRANTHAM

BOSTON


A1139

^ A1(M)

Courtesy Google

SituationCygnet Park comprises a commercial development situated to the south of Peterborough, close to Junction 3 of the A1139 Fletton Parkway. The dual carriage way acts as a city centre ring road running from the south west of the city connecting to the A1(M) and around anti-clockwise to the north east of the city centre.

Southern Peterborough is an established distribution location with a number of other substantial developments in close proximity to the subject property. Kingston Park, which is located one junction east of Cygnet Park, is the Prologis scheme which is part developed out and includes occupiers such as Amazon (550k sq ft), Debenhams (730k sq ft) and Willis & Gambier (190k sq ft). In addition, Ikea operate out of a distribution facility of approx. 1m sq ft nearby.

Roxhill are currently on-site and promoting their Peterborough Gateway scheme which is located due west of the subject property at J1 of the A1139. The developer has planning permission for 5 million sq ft of prime logistics and distribution on the 180-acre site.

Tower LaneIndustrial

Estate

A1(M)

Peterborough

KingstonPark

Peterborough


PeterboroughGateway

WOODSIDE ROAD

A45

A605

A1139

A

1139

A11

39

A1

A1260

A47

A4

7

A

47

A47

A16


DescriptionThe property comprises a prime detached logistics facility which was constructed in 2005, and which was subsequently extended by the previous owner occupier in 2012.

Constructed with a steel portal frame, the building provides a 6-bay warehouse with additional 3 storey concrete framed office building. Within one of the bays there are a number of concrete floor mezzanine structures allowing storage on three levels.

The specification includes:

13.5m clear working eaves height

12 dock-level loading doors

2 level access loading doors

Fully racked

Extensive yard and car parking (128 spaces)

Separate HGV gated entrance

Fully sprinklered with water storage tank

Fully self-contained site with secure perimeter fencing

The offices were recently refurbished by the occupier at considerable expense which includes new conference and meeting room facilities, air conditioning, new partitioning and suspended ceilings. A new racking system was recently installed at a cost of approx. £1m.


AccommodationThe building provides the below approximately floor areas:

PART FLOOR DESCRIPTION GIA (SQ FT) GIA (SQ M)

Main Warehouse Ground Distribution 97,147 9,025.3

Three Storey Block Ground Tyre Storage 22,982 2,135.1

Offices 5,472 508.4

First Tyre Storage 19,720 1,832.1

Offices 8,538 793.3

Second Tyre Storage 28,115 2,612.0

TOTAL 181,875 16,906.0

Plowman Craven are currently measuring the building in accordance with the RICS Code of Measuring Practice (6th Edition) and the new International Property Measurement Standards (IPMS). A copy of the survey can be assigned to the purchaser.

Operation The building operates as one of 2 main large distribution facilities for Stapleton’s wholesale business who also operate a number of other smaller distribution units around the country.

The building has capacity for 330,000 tyres which are sourced from around the globe and subsequently distributed to wholesale customers as well as individual branches. The building provides a separate entrance and trade counter for customers to both purchase tyres as well as store seasonal use tyres on-site.

Path and Cycle Path

PHORPRES WAY

CLUB WAY

El Sub Sta

El Sub Sta

El Sub Sta

Shelter

A1

El Sub Sta

Tank

11b

A3

B1

A2 B2

Gas Gov

FLETTON PARKWAY

0m 25m 50m 75m

This plan is published for convenience of identification.Any site boundaries shown are indicative only and

should be check against Title Deeds.

ES753998

Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 10 0022432. Plotted Scale - 1:2500

A1139

For Indicative Purposes Only

N

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Site AreaThe site extends to approximately 2.99 ha (7.39 acres).

Site coverage is approximately 40%.

LeasebackUpon completion of the sale, the property will be let to Stapleton’s (Tyre Services) Limited for a term of 20 years without break.

The lease will be guaranteed by European Tyre Enterprise Limited (ETEL), the UK top-co.

The passing rent will be £900,000 per annum, equating to £4.95 per sq ft overall. The rent will be reviewed in-line with the Consumer Price Index (CPI), subject to a collar of 1.00% and a cap of 3.00%, compounded annually and effective 5-yearly.

The tenant will have the automatic right to extend their lease for a term of 10 years on a maximum of two occasions.

TenureThe property is held freehold.


Covenant Information

Tenant

Stapleton’s (Tyre Services) Ltd are one of the UK’s largest and leading tyre distributors, with in excess of 80 years’ experience specialising in the passenger car, 4x4 and van tyres sector. Capabilities include tyre warehousing and distribution for the specialist tyre retail trade and the car dealership sector.

The business employs over 1,000 people at 11 strategic locations across the UK, supported by a nationwide fleet of 400 delivery vehicles.

Sales turnover has increased year on year for the past 3 years, with headline figures from the most recent accounts being:

31 MAR 2018 31 MAR 2017 31 MAR 2016

Sales Turnover £305,091,000 £272,547,000 £266,913,000

Pre-tax Profit (Loss) £8,069,000 £6,753,000 £826,000

Total Net Worth £21,131,000 £14,703,000 £9,424,000

The business has a Dun & Bradstreet rating of 4A1, representing a ‘minimum risk’ of business failure.

Guarantor

European Tyre Enterprise Limited (ETEL) are the UK holding company which has control over the group’s subsidiaries, as well as providing funding and central support services. The business was acquired in 1994 by the Japanese Itochu Corporation, which subsequently purchased the Kwik Fit business in 2011. The principal activities of the group are the wholesale, distribution and retail sale of of passenger and commercial vehicle tyres alongside servicing activities and automotive repair, including brakes, exhausts, MOT testing, and air conditioning recharge.

ETEL incorporates a UK distribution fleet of over 450 vehicles from a national network of 11 locations, around 750 UK centres and 300 mobile vehicles serving five million retail customers a year.

Under the ETEL there are a number of brands, including the following of note:

31 MAR 2018 31 MAR 2017 31 MAR 2016

Pre-tax Profit (Loss) £4,252,000 £30,787,000 £10,680,000

Total Net Worth £393,198,000 £389,776,000 £358,530,000

ETEL has a Dun & Bradstreet rating of 5A1, representing a ‘minimum risk’ of business failure.


Peterborough is centrally located and as such benefits from ease of access to markets, suppliers, labour, the UK motorway network and ports. The city has attracted major national and international retailers and distributors, particularly in the “Big Box” market. Indeed, take-up in Peterborough has been dominated by buildings of over 100,000 sq ft during the last 5 years, accounting for approx 75% of all take-up.

Take-up over the last two years has been strong in Peterborough in particular, with 2018 alone

witnessing a number of key deals of over 100,000 sq ft, including at Peterborough Gateway which is Roxhill’s 180 acre logistics park located by J1 of the A1139. Here, recent lettings to Coloplast (135,000 sq ft), DSV (300,000 sq ft), E-Leather (230,000 sq ft) and Urban Outfitters (700,000 sq ft) have proved healthy demand for the location, which is situated two junctions west of the subject property.

Further to this, Kingston Park (Prologis) has proven popular over the last few years which

has seen it attract occupiers such as Amazon (550,000 sq ft), Debenhams (730,000 sq ft) and Dart Products Europe (190,000 sq ft).

Peterborough has a total industrial stock of c. 19 million. Currently there is 385,000 sq ft of industrial space under construction and due to complete in Q1 2019, all of which has been listed as pre-let or purpose built at Gateway Peterborough.

Prime industrial rents in Peterborough stand at c.£6.00 per sq ft.

Investment Transactions PROPERTY ADDRESS DATE TENANT SIZE(SQ FT) PURCHASE PRICE NIY CAP PRICE PSF TERM CERTAIN REVIEW

Dunlop Aircraft Tyres, Birmingham Under Offer Dunlop Aircraft Tyres Ltd 293,303 c. £17.2m c. 4.75% c. £58 25.00 years RPI (2% - 4%)

Hovis, Erith & Stratford Under Offer Hovis 307,583 c. £35.22m c. 4.75% c. £115 20.00 years RPI (2% - 4%)

Pallex, Bardon On market Pallex International Ltd 222,384 Q.£21m 5.65% £95 16.00 years RPI (1% - 4%)

Leeds Road, Huddersfield On market Poundstretcher 385,481 Q.£29m 5.30% £75 25.00 years RPI (2% - 3.5%)

First Point, Doncaster Dec 2018 Amazon 415,065 £37.95m 4.86% £91 10.00 years CPI (1% - 3%)

Grimethorpe, Barnsley Dec 2018 Symphony Group 490,000 £43.50m 4.80% £89 16.00 years RPI (0% - 4%)

Brookfields Park, Rotherham Oct 2018 Thetford 82,942 £7.875m 5.54% £95 10.00 years Fixed (2.5%)

Appleton, Warrington Aug 2018 Eddie Stobart 164,048 £26.125m 4.35% £159 17.60 years Fixed (1.5%)

DC420 Eddie Stobart Ltd, Jan 2018 Eddie Stobart Ltd 172,928 £19.90m 4.75% £115 15.00 years RPI (1% - 3%) Northampton (Levi Strauss sublease)


Peterborough Industrial Market

EPCThe property has an Energy Performance Certificate rating of C57. A copy of the certificate is available upon request.

Legal CostsEach party is to bear their own costs.

VATThe property is elected for VAT and therefore VAT will be payable on the purchase price and SDLT on the gross purchase price.

Capital AllowancesThere are no transferable allowances.

Proposal

Offers are invited in excess of £15,900,000 which reflects an attractive NIY of 5.25%, assuming purchaser’s costs of 7.73%. This reflects a price of £87 per sq ft.

A purchase at this level will reflect a minimum yield of 5.52% in 2024, given the CPI collar provided (i.e. 1.00% pa), or a yield of 6.09% in 2024 given the CPI cap (i.e. 3.00% pa).


CYGNET PARK, PETERBOROUGH, PE7 8JA

FURTHER INFORMATION

DAVID HAYNES ANDY DICKENS JASON PICKERING SHAUN GALVIN [email protected] [email protected] [email protected] [email protected] 020 7152 5373 020 7152 5030 020 7152 5131 01992 780036 07733 123 318 07793 808 030 07702 137 380 07885 561 634

43-45 Portman Square London W1H 6LY

MISREPRESENTATION CLAUSE Cushman & Wakefield and their joint agents give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in January 2019. Brochure by Mango 020 7060 4142

The Rotunda 1 Old London Road Hertford SG13 7LA

STAPLETONS TYRE SERVICES - Cushman & WakefieldDobbies Garden Centre Bella Italia Chiquitos Frankie &...

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