CORNBRASH PARKBUMPERS FARMCHIPPENHAM SN14 6RA

HIGH YIELDING INDUSTRIAL/OFFICE INVESTMENT OPPORTUNITY

A rare opportunity to acquire four detached office buildings and three modern industrial units.

Situated at the heart of the established Bumpers Farm Industrial Estate providing excellent access to Junction 17 of the M4 motorway.

There is very limited availability on Bumpers Farm and other major occupiers include Wickes, Plumbase, Howdens, Capita, Royal Mail, Vectura, Citroën, Screwfix and Pets at Home.

Fully let industrial and office investment with a total area of 36,705 sq ft, split over four office buildings totalling 20,160 sq ft, and three industrial units totalling 16,545 sq ft.

Passing rent of £332,055 per annum.

A WAULT of 3.89 years to expiries, and 2.58 years to lease breaks.

Opportunities to increase the income through active management.

Offers are sought in excess of £3,280,000 (Three Million Two Hundred and Eighty Thousand Pounds) reflecting an attractive net initial yield of 9.50%, and a potential reversionary yield in excess of 10.18%.

Very low capital value of only £87 per sq ft.

Investment Summary

A350

LocationChippenham is a historic market town and third largest centre in Wiltshire. It is located 30 miles east of Bath, 22 miles east of Bristol, 20 miles west of Swindon and 111 miles west of London. The town is located on the M4 Motorway and the town centre is 3 miles south of Junction 17. The town centre is 1 mile east of the junction of A350 and A4 trunk roads, which run north and south and east west of the town respectively.

Chippenham benefits from being on the main railway line between London Paddington and the West Country and the journey time to London is 1 hour 15 minutes.

The combination of accessibility to London and the quality of life in the area have proved very attractive and Chippenham has increasingly become a commuter town over the past decade or so. The train service will further improve following the electrification of the main line, which is scheduled for completion in 2019. This will increase the frequency of trains to London and also reduce the journey time by around 10-15 minutes.

Chippenham has a population of around 305,000 living within a 30 minute drive time which is set to grow by 6% over the next 10 years, this is largely as a result of the plans to build a further 5,000 homes in the town before 2026.

A4

A417

A419

A40

A346

A420

A433

A429

A46

A37

A361A303

A350

A4

A34

A34

A33

A34 A41

A4010

A41

A24A31

M1A1(M)

M40

M4

M4

M5

M3

M4

M25

M25

M25

Heathrow Airport

LONDONReading

Slough

Gloucester

Swindon

Oxford

Newbury

Basingstoke

Guildford

Crawley

Warminster

Bath

Bristol

Hemel Hempstead

Andover

Woking

Cirencester

Abingdon

Marlborough

Marlow

High Wycombe

Aldershot

CHIPPENHAM

SituationThe property is situated at the heart of Bumpers Farm Industrial Estate which is 1.3 miles to the north west of the town centre just off the A350 western bypass at its intersection with the A420 Bristol Road, an arterial road to the town centre and Junction 17 of the M4 Motorway.

Other significant occupiers on Bumpers Farm include Wickes, Pets at Home, Plumbase, Howdens, Capita, Royal Mail, Vectura, Citroën, Screwfix and Meyer.

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B4528 B4528

Derriads Lane

Sheldon Road

Gladstone Road

Har

denh

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Lan

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Malm

esbury Road

Lang

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A420

A350

A350

A420

Chippenham

CHIPPENHAM

Barnwood

Hucclecote

FROGWELL

HARDENHUISH

CEPEN PARK NORTH

Cornbrash Park

DescriptionThe property comprises four detached office buildings, and three modern industrial units.

The office accommodation is arranged over ground and first with traditional brick elevations rising to pitched tiled roofs. Internally the accommodation benefits from suspended ceilings with inset cavity lighting, compartmented under floor trunking, gas fired central heating, double glazing and WCs.

The industrial units were developed in 1994 and are of a steel portal frame construction, with external lower brick and upper metal profile cladding. Ancillary office accommodation is incorporated into the units over ground and upper floors. All units benefit from metal roller shutter doors and Unit 3 has a long secure yard.

The property has a total site coverage of approximately 39%.

AccommodationWe have measured the property in accordance with the latest RICS Code of Measuring Practice and provide the following Gross Internal floor areas:

Demise Use Area sq ft Area sq m

Phase 1 - Unit 1 Office 3,216 298.77

Phase 1 - Unit 2A Office 1,494 138.80

Phase 1 - Unit 2B Office 1,494 138.80

Phase 1 - Unit 3 Office 9,633 894.93

Phase 1 - Unit 4 Office 4,323 401.62

Phase 2 - Unit 1 Industrial 7,483 695.19

Phase 2 - Unit 2 Industrial 4,172 387.59

Phase 2 - Unit 3 Industrial 4,890 454.29

Total 36,705 3,409.98

The site extends to approximately 1.75 acres providing a site cover of 51%.

TenancyThe property is multi-let to nine tenants and has a WAULT of 3.89 years to lease expiry and 2.58 years to lease breaks. The rental income is £332,055 per annum reflecting a low average rent of only £8.99 per sq ft.

Demise Tenant UseArea

(sq ft)Start Date

Break Date

Expiry Date

Next Review Rent

Rent psf ERV ERV psf EPC

Creditsafe Rating Comments

Phase 1 - Unit 1

Fortem Solutions

LimitedOffice 3,216 £37,500 £11.66 £38,592 £12.00 C 54 86/100

Fortem Solutions Ltd. have signed an Agreement for Lease on the basis of a 10

year lease with breaks in years 3, 5 and 7. Rent £30,000pa for year 1 and 2, rising

to £37,500 by year 5. The passing rent will be topped up to £37,500 until the first

break option at the end of the third year.

Phase 1 - Unit 2A Actis Insulations Ltd Office 1,494 05-Apr-19 05-Apr-20 04-Oct-20 £17,000 £11.38 £17,922 £12.00 C 54 81/100

Tenant is in process of moving from Unit 1. Tenant rolling break after 12

months

Phase 1 - Unit 2B API Europe Ltd Office 1,494 23-Apr-18 22-Apr-23 £15,000 £10.04 £17,922 £12.00 B 50 53/100 Mutual rolling break after 12 months

Phase 1 - Unit 3

Hanover Housing

AssociationOffice 9,633 10-Nov-18 09-May-20 £115,596 £11.75 £115,596 £12.00 C 56 47/100

Phase 1 - Unit 4 Siemens plc Office 4,323 25-Dec-91 24-Dec-19 £47,553 £11.00 £51,876 £12.00 C 57 88/100 Dec 19 break notice received

Phase 2 - Unit 1

Disaster Recovery

Services LtdIndustrial 7,483 15-Sep-14 14-Sep-24 15-Sep-19 £35,000 £4.68 £50,510 £6.75 62/100

Phase 2 - Unit 2 I Wall Ltd Industrial 4,172 25-Mar-14 24-Mar-19 24-Mar-29 25-Mar-19 £28,500 £6.83 £29,204 £7.00 E 105 61/100

Phase 2 - Unit 3 Carbon Threesixty Industrial 4,890 07-Dec-17 06-Dec-22 £34,000 £6.95 £34,230 £7.00 D 81 58/100

Licence for air con unit

Hanover Housing

AssociationOther 0 29-Sep-10 08-Apr-17 £1,906 £1,906 Holding over

Total 36,704 £332,055 £353,447

TenureThe property is held long leasehold from the District Council of North Wiltshire for a period of 125 years from 24/02/1989, expiring on 01/12/2113 (94 years unexpired) at a peppercorn rent.

Asset Management Re-gear and lease renewal opportunities

with existing tenants to improve the WAULT.

Further refurbishment opportunities to drive occupancy and rental tone.

Improve the rental tone of the park, as with prime rents in Chippenham for offices are now £18.50 per sq ft and industrial now in excess of £7.50 per sq ft.

Sell off individual units to owner/occupiers.

Continue to drive tenant retention and limit refurbishment capex.

Take advantage of significant tenant demand resulting from the relevant redevelopment and a number of competing industrial estates in the town.

Marketing Commentary Chippenham is a large market town with a large catchment and is home to a number of national and international corporates. These larger occupiers are wedded to the area by their staff and a severe lack of suitable alternative accommodation nearby. Significant occupiers in the town include Wincanton, Europe’s second largest logistics organisation, who have consolidated their headquarters in Chippenham and Siemens Rail Automation who have a large facility adjacent to the station. Good Energy Group PLC are also looking to make the town their UK HQ and have just agreed to take 25,317 sq ft of offices at a rent of £22.00 per sq ft.

Despite the town’s proximity to Bath, Bristol, Reading and Swindon the rental tone is significantly lower in comparatives terms: Bristol £35.00 per sq ft (city centre), Bristol £23.00 per sq ft (business parks), Bath £31.50 per sq ft and £38.50 per sq ft at Reading.

Throughout 2018 and the first quarter of 2019 quoting rents for office space have gradually increased in the South West’s principal business locations, with contributing factors including a diminishing amount of Grade A stock and improved tenant demand, as a result prime office rents in Chippenham are now as high £18.50 per sq ft.

There has also been significant acceleration in industrial rents, and rents in Chippenham have increased to £7.50 per sq ft due to a dramatic reduction in supply and an increased demand for modern well located units. The latest investment transactions in Chippenham are as follows:

Property Date Use Tenant Size (sq ft) Price NIY Capital Value (psf)

Good Energy HQ, Sadlers Mead, Chippenham Marketing Office Good Energy Group Plc 25,317 £8,800,000 6.25% £347

Woods Group HQ,, Bumpers Farm, Chippenham Sept 18 Office / Industrial Wood Group 41,431 £5,750,000 6.01% £138

Chippenham 79, Bath Road, Chippenham Sept 18 Industrial Wincanton 79,178 £9,200,000 5.65% £116

EPCAn Energy Performance Certificate (EPC) can be downloaded from our website.

VATThe property has been elected VAT and therefore it is assumed that the transaction will take place on the basis of a Transfer of a Going Concern (TOGC).

ProposalWe are instructed to seek offers in the excess of £3,280,000 (Three Million Two Hundred and Eighty Thousand Pounds) reflecting a net initial yield of 9.50% and potential reversionary yield in excess of 10.18%, and a very low capital value of only £87 per sq ft.

Richard Howell0117 988 5210 richard.howell@avisonyoung.com

Property refavisonyoung.co.uk/15084

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However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise.3. No person in the employment of Avison Young, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure.4. All prices quoted are exclusive of VAT.5. Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by Avison Young.

June 2019

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