EBDC INVESTMENT FOR SALE. A multi-let distribution and business centre investment opportunity 1 mile from J28 M1

Transcription

1 INVESTMENT FOR SALE SOUTH NORMANTON J28 M1 DERBYSHIRE DE55 2DT A multi-let distribution and business centre investment opportunity 1 mile from J28 M1

2 INVESTMENT SUMMARY Multi-let distribution and business centre Main complex split into 6 units with dock level and ground level loading doors Additional detached unit and 2 storey office building Unrestricted 24/7 use 24/7 manned security in gatehouse and CCTV system Total site area of acres (7.43 Hectares) providing a site cover of 21% Excellent strategic distribution location 1 mile from J28 M1 giving immediate access to the Midlands and the Northern region via the M1 and A38 Major occupiers nearby include: Norbert J28 Dentressangle, UDG, Co-op, Alliance Healthcare, East Midlands Designer Outlet The property extends to approximately 175,806 sq ft (16,333 sq m) with 142 car parking spaces High calibre occupiers with 26% of the income 5A1 Well managed estate Current passing rent of 487,187 per annum Freehold ERV of 558,640 pa Additional development land with commercial UDG LTD and residential potential of 5.80 acres Potential for additional development or long term redevelopment Offers are sought in excess of 6,150,000 (Six Million One Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, reflecting the following yield profile: Net Initial Yield of 7.49% Reversionary Yield of 8.59% Allowing 1,400,000 for the additional land, the price reflects the following yield profile on the income: Net Initial Yield of 9.54% Reversionary Yield of 10.94% The above yields allow for purchaser s costs of 5.80% A38 to Derby and Birmingham A38 M1 UDG LTD M1 UDG LTD UDG LTD

3 MANCHESTER SOUTH NORMANTON J28 M1 DERBYSHIRE DE55 2DT LOCATION The property is located in South Normanton, Derbyshire, approximately one mile from J28 of the M1, accessed via the A38 dual carriageway onto the South Normanton industrial area. The proximity to the M1 provides superb access to the region linking with the A38, A50, M6, M42 and M18. City Distance Time Nottingham 15 miles 30 mins Derby 16 miles 25 mins Sheffield 25 miles 45 mins East Midlands Airport 24 miles 28 mins Robin Hood Airport 40 miles 60 mins Birmingham 55 miles 75 mins Leeds 59 miles 75 mins Immingham Port 77 miles 90 mins M miles 150 mins M54 MANCHESTER A52 Newcastle- 15 Under-Lyme A50 A34 A M60 SHEFFIELD A34 Macclesfield A M A38 Ashbourne A50 24 EAST MIDLANDS M6 M1 22 Cannock M6(T) 11 A616 A6 A61 A515 A523 A53 A6 Matlock Leek STOKE-ON-TRENT Stafford Buxton Uttoxeter A515 A38 Chesterfield A42 Rotherham Mansfield A52 NOTTINGHAM DERBY M42 M6 (T) LEICESTER 23 A1(M) 34 SITUATION The property is situated on the successful and established South Normanton Industrial Area, approximately 1 mile from J28 M1 giving excellent connectivity to London, the Midlands, Yorkshire and the North.

4 DESCRIPTION comprises four distinct elements. The main premises being a 3 bay warehouse divided to create 6 units ranging from 6,000 sq.ft. up to 43,000 sq.ft. The premises are of steel portal frame construction with brick and blockwork elevations surmounted by composite paneling to eaves and covering the pitched roof. Key features of the main building include the following: Eaves height of 5.5m Concrete floor slab 15 dock level loading doors 3 level access doors (2 additional level access doors) Sprinkler system Warehouse heating and lighting throughout 3 phase power supply Unrestricted 24 hour use Attached to the main warehouse premises is a two-storey office building providing accommodation that is attached to the main warehouse building. Key features include: Open plan suites Suspended ceiling with inset lighting Air-conditioning cassette units Secondary glazing to the first floor suite Perimeter trunking and sockets to columns Dedicated WC and kitchen facilities to each floor Shared reception There is a detached warehouse/workshop unit of 19,763 sq.ft. located to the rear of the site, with two level access loading doors, heating, lighting, WCs and sprinkler installation. The fourth element is a compound of 0.9 acres providing surface storage land.

5 DEVELOPMENT LAND Adjacent to the business centre, accessed from Ball Hill, is a plot of land comprising 3.5 acres upon which planning had been secured for commercial development, but there is certainly potential for residential development. The land is currently vacant. In addition to the 3.5 acre development plot there are a number of smaller plots within the business park totalling 2.30 acres. The additional development land totals 5.80 acres. TENURE Freehold. TENANCY DETAILS Accommodation Tenant Unit Size Rent Rent ERV ERV Lease Lease Expiry (sq. ft.) p.a. per sq.ft. per sq.ft. p.a. Commencement (Break) Unit 1 Grangers International Ltd 24,199 poa poa poa poa 02/06/ /06/2017 (mutual on 01/06/2016) Unit 1a Equip Outdoor Technologies UK Ltd 24,876 poa poa poa poa 01/03/ /02/2018 Unit 2 Alliance Healthcare (Distribution) Ltd 43,389 poa poa poa poa 01/11/ /04/2017 (01/05/16) Unit 3 Furniture Transport Solutions Ltd 20,187 poa poa poa poa 01/06/ /05/2018 (mutual 01/06/2016) Unit 3a Equip Outdoor Technologies UK Ltd 26,446 poa poa poa poa 05/01/ /02/2018 Unit 4 Ground Equip Outdoor Technologies UK Ltd 4,940 poa poa poa poa 11/04/ /02/2018 Unit 4 First Vacant 5,831 poa poa Unit 5 Equip Outdoor Technologies UK Ltd 6,175 poa poa poa poa 02/06/ /02/2018 Unit 6 Burrows Recovery Ltd 19,763 poa poa poa poa 28/03/ /03/2016 Compound Morrison Utility Services 0.9 poa poa 29/01/ /03/2016 (30/11/17) Total 175, , ,640 WAULT 2.0 years (1.62 years) The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition).

6 MARKET COMMENTARY Address Size Terms The Big Cheese, 142,500 sq.ft. January 2015 Cotes Park Let to SIG plc for a Industrial Estate, term of 10 years with Alfreton tenant only break after 5 years at 3.75 psf. Oakham House, 90,090 sq.ft. April 2014 Lower Oakham 10 year lease to Way, Mansfield Capita with rent review after year 5, at 3.20 psf. Unit 1, 25,000 sq.ft. March 2014 West Way, 10 year lease to Clover Nook Permaroof, 5 year Industrial Estate, tenant only break Alfreton option, at 4.00 psf. Former NYK 109,736 sq.ft. January 2014 Premises, 10 year lease with Common Road, 5 year tenant break Huthwaite, option, let to Celebrity Nottinghamshire Furniture Group at 2.78 psf. West 28, 69,970 sq.ft. December 2013 Bramble Way, Let to 360 Metals Cotes Park 10 years lease, 5 year Industrial Estate, break option at Alfreton 3.50 psf. KEY C Existing Buildings D FUTURE DEVELOPMENT PLOTS Unit A Unit B Unit C Unit D Unit E Unit F Unit G TOTAL 5,500 sq ft 3,700 sq ft 4,700 sq ft 4,900 sq ft 6,400 sq ft 11,000 sq ft 3,700 sq ft 39,900 sq ft (2.30 acres approx) B E Unit 6 Entrance Unit 4 Unit 5 Development Land 3.50 acres (1.41 ha) A Compound/Yard Unit 3 Unit 3A Unit 2 Unit 1 Unit 1A F Housing Ball Hill Housing Gatehouse G

7 COVENANTS Alliance Healthcare (Distribution) Ltd (Co. No ) has a Dun & Bradstreet rating of 5A 1 which is the highest rating and represents a minimum risk of business failure. The main financial highlights are below: Year Ending 31 March 2014 ( ) 31 March 2013 ( ) 31 March 2012 ( ) Turnover 3,207,000,000 3,072,000,000 2,813,000,000 Pre-Tax Profit/(Loss) 114,000, ,000, ,000,000 Tangible Net Worth 224,000, ,000, ,000,000 Equip Outdoor Technologies UK Ltd,, now known as Lowe Alpine UK Ltd, (Co. No ) has a Dun & Bradstreet rating of 2A 2 which represents a lower than average risk of business failure. The main financial highlights are below: Year Ending 31 Jan 2014 ( ) 31 Jan 2013 ( ) 31 Jan 2012 ( ) Turnover 9,627,629 7,682,717 5,837,789 Pre-Tax Profit/(Loss) 633, ,360 (308,098) Tangible Net Worth 1,846,965 1,152, ,915 Morrison Utility Services (Co. No ) has a Dun & Bradstreet rating of 5A 1 which is the highest rating and represents a minimum risk of business failure. The main financial highlights are below: Year Ending 31 March 2014 ( ) 31 March 2013 ( ) 31 March 2012 ( ) Turnover 518,395, ,227, ,184,000 Pre-Tax Profit/(Loss) 19,323,000 22,162,000 18,204,000 Tangible Net Worth 116,842, ,019,000 85,418,000 Burrows Recovery Ltd (Co. No ) has to the year ending 30 Sept 2013 a tangible net worth of 1,183,374. Furniture Transport Solutions Ltd (Co. No ) has to the year ending 31 March 2014 a tangible net worth of 125,445 Grangers International Ltd (Co. No ) has a Dun & Bradstreet rating of 2A 1 which represents a minimal risk of business failure. The main financial highlights are below: Year Ending 30 Sept 2013 ( ) 30 Sept 2012 ( ) 30 Sept 2011 ( ) Turnover 10,007,982 9,236,708 8,180,430 Pre-Tax Profit/(Loss) 976, , ,307 Tangible Net Worth 3,504,968 2,979,386 2,211,722

8 SOUTH NORMANTON J28 M1 DERBYSHIRE DE55 2DT VAT The property has been elected for VAT. The sale will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL Offers are sought in excess of 6,150,000 (Six Million One Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, reflecting the following yield profile: Net Initial Yield of 7.49% Reversionary Yield of 8.59% Allowing 1,400,000 for the additional land, the price reflects the following yeild profile on the income: Net Initial Yield of 9.54% Reversionary Yield of 10.94% The above yields allow for purchaser s costs of 5.80%. EPC CONTACT EPC's are available upon request. For further information please contact: FURTHER INFORMATION A data room containing all legal and property related information is available on request from CPP. An Argus valuation CVL file or Excel spreadsheet containing a detailed tenancy schedule can be obtained from CPP on request. Sean Bremner, MRICS Partner Roger Haworth, MRICS Partner Commercial Property Partners DD: M: E: DD: M: E: Quantum House, 3-5 College Street, Nottingham, NG1 5AQ +44 (0) (0) sean@cppartners.co.uk +44 (0) (0) roger@cppartners.co.uk MISREPRESENTATION ACT These particulars do not constitute part of an offer or contract. All descriptions, dimensions, reference to condition and necessary permission for use and occupation and other details contained herein are for general guidance only and prospective purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves as to their accuracy. Neither Commercial Property Partners, nor its employees or representatives have any authority to make or give any representation or warranty or enter into any contract in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function and prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Prices/rents quoted in these particulars may be subject to VAT in addition. a) These particulars were prepared from preliminary plans and specifications before the completion of the properties and are intended only as a guide. They may have been changed during construction and final finishes could vary. Prospective purchasers should not rely on this information but must get their solicitor to check the plans and specifications attached to their contract. b) We have not made any investigations into the existence or otherwise of any issues concerning pollution of land, air or water contamination and the purchaser is responsible for making his own enquiries in this regard. Designed and produced by Tel: June