Castlehill. Industrial Park. High Quality Multi-let Industrial Estate Investment For Sale. Bredbury Stockport SK6 2SU

Transcription

1 Castlehill Industrial Park High Quality Multi-let Industrial Estate Investment For Sale Bredbury Stockport SK6 2SU

2 Introducing Castlehill Industrial Park, Bredbury, Stockport, SK6 2SU... A high quality multi-let industrial estate investment. Located at the heart of the established Bredbury Industrial Estate, one of south Manchester s principal estates Immediate access to junction 25 of the M60 providing connectivity to Manchester city centre, Manchester Airport and the motorway network Currently 100% occupied by 6 tenants on 9 leases A modern secure, self-contained estate comprising 9 units totalling approximately 145,962 sq ft Freehold with full recovery of service charge expenditure 100% occupied by 6 tenants on 9 leases having an AWULT of 5.5 years to expiry and 4.5 years to breaks Total current income of 711,553 per annum, reflecting only 4.87 per sq ft average Offers sought in excess of 8,500,000 subject to contract & exclusive of VAT showing an initial yield of 7.91% net of normal acquisition costs and a capital value of 58 per sq ft For further information or access to the data room please contact: Chris Dudhill on or cd@christopherdee.co.uk or Mark Powell on or mp@christopherdee.co.uk

3 The location provides rapid access to Manchester airport, 8km (5 miles) to the south west and beyond. Stockport Metropolitan Borough is one of the 10 boroughs forming the Greater Manchester conurbation and is a major administrative and commercial centre. Home to over 285,000 people, the town is located 10km (6 miles) south east of Manchester city centre at the junction of the M60 Motorway and the A6 which run through it. Access to the regional and national motorway network is immediate. Stockport has a railway station that offers frequent Virgin West Coast Mainline services to Manchester (8 minutes) and London Euston (2 hours), CrossCountry services to Birmingham (80 minutes) and Bristol (170 minutes) together with regional and local suburban and commuter services provided by Transpennine and Northern Rail. Bredbury is served by a local station that is part of this commuter network. Bredbury is a suburban town in the north east of Borough that sits immediately to the east and north of junction 25 of the M60 motorway, providing rapid access to Manchester airport, 8km (5 miles) to the south west and beyond.

4 The park is surrounded by complimentary industrial and trade uses Castlehill Industrial Park sits at the heart of the long-established and fully developed Bredbury Industrial Estate, which extends to 90 hectares (222 acres) and is one of the largest industrial areas of the south Manchester conurbation. The Park is accessed directly from Horsfield Way, which leads to Bredbury Park Way, one of the principal spine roads of the Estate that in turn leads to the M60 junction. It is surrounded by complimentary industrial and trade uses and is immediately opposite Grosvenor Business Park where occupiers include Egan Reid and Annixter. Other major occupiers within Bredury Industrial Estate include Hilti Group, Robinsons Brewery, Allied Bakeries, Leggatt Freightways, Mondi Packaging, Snickers Workwear, Osram, Kerryfresh and Smiths News.

5 Castlehill Industrial Park is a modern, low density, self-contained and secure estate within the larger Bredbury Estate. Castlehill Industrial Park provides a total of 13,560 sq m (145,962 sq ft) of gross internal accommodation Developed in the early 1990s, the Park was originally designed as a single stand-alone unit, a pair of semi-detached units and a terrace of 4 units, all arranged around a generous central circulation and delivery area together with ample parking both adjacent to the units and around the perimeter of the site, for over 300 vehicles. More recently, both the single unit and one of the semi-detached units have been divided to create two units. In its current configuration, the Park provides 9 units, in a good range of sizes from 7,300 to 26,000 sq ft. The units offer clear, open floorspace with an eaves height of 6.2m (21 feet). All the units are of steel portal frame construction with profiled metal clad roofs incorporating roof lights and part brick, part profiled metal clad elevations. Each has electrically operated level access loading doors facing the central delivery areas and high quality, two storey, offices to the front of the building. We calculate the site extends to approximately 3.1 hectares (7.65 acres), providing a built density of 44%.

6 Tenure Freehold The Park is fully let on 9 full repairing and insuring leases to 6 tenants. The aggregate income of 711,553 per annum reflects an overall average rent of only 4.87 per sq ft The aggregate income of 711,553 per annum reflects an overall average rent of only 4.87 per sq ft, although individual unit rents range from per sq ft. We calculate that the average weighted unexpired lease term is 5.5 years to lease expiry and 4.5 years to earliest lease breaks. Copies of the lease documentation can be downloaded from the data room.

7 Castlehill Industrial Park Tenancy Schedule Investment Summary Location Unit Tenant Sq M Sq Ft Lease Start Term (Yrs) Next Situation Break Review Expiry Rent Description Accommodation 1A Darlington EMS Limited 2, , Dec Dec-17 Tenancies w 20-Dec , B 2 3A T: James Walker Townson Ltd G: James Walker Group Ltd Pilkington s Manufacturing Ltd Watkins & Sole Transport) Ltd Further Information Contact Castlehill Industrial Park provides a total of 13,560 sq m (145,962 sq ft) of gross internal accommodation The Park is fully let on linked) 9 full & 2 repairing months and insuring leases to rent 6 deposit tenants. View Tenancy Schedule 2, , Feb Feb Feb-21 The aggregate income of 711,553 per annum reflects an overall average rent of only 4.87 per Subject sq ft, although to capped individual service unit rents 114,300 range from per charge sq ft. (index linked) & rent deposit of 50,000 We calculate that the average weighted unexpired lease term is 5.5 years to lease expiry and 4.5 years to earliest lease breaks. 1, , Jun Jun-18 65, Copies of the lease documentation can be downloaded from the data room. * Mutual break date and every 6 months thereafter 3B Surgichem Limited 1, , Jul Jan-15 * 17-Jul-18 58, subject to 3 months notice. Subject to a Schedule of Condition. Ex-L & T Act 1954 Rent ( PST) 2, , Oct Oct Oct Oct-21 90, Wyndeham Print Direct Ltd 1, , May Nov-18 60, Print Direct Limited 1, , Nov Nov-18 64, Print Direct Limited 1, , Nov Nov-18 96, Surgichem Limited , May May-17 44, Total 13, , , Comments Rent payable until 17-Jan-15 58,417 pa. Vendor to top up to 116,834 pa. Subject to a Schedule of Condition, capped service charge (index Break subject to 6 months notice & 6 months rent penalty. Subject to a Schedule of Condition View Tenant s Covenants

8 Castlehill Industrial Park Tenant Information Investment Summary Location Darlington EMS Ltd (Co no: ) Darlington EMS, incorporated in 2009, is a family owned business that specialises in the manufacture and provision of electronic components and services, including circuit boards, wiring harnesses and panel builds. For reporting purposes, Darlington EMS is a small company and has delivered the following statements for the last 3 trading years: Year Ending 31 July July July , , ,619 James Walker Townson Ltd (Co no: )/James Walker Group Ltd (Co no: ) Incorporated in 1989, James Walker Townson is part of the James Walker Group that stands as surety to the lease. It specialises in the manufacture and supply of high performance sealing products to industry across the world from 11 sites in the UK, and 40 spread among Europe, Asia, Australasia, South Africa and the USA. James Walker Group has reported the following financial results for the past 3 years: Situation Pilkington s Manufacturing Ltd (Co no: ) Description Incorporated in 2010, Pilkington s is the UK distribution arm of Rovese SA, a Polish based manufacturer of high quality wall and flooring tiles, headquartered in Bredbury. Accommodation The most recent abbreviated results show the following results: Tenancies Year Ending 31 Dec 2012 Further 31 Information Dec 2011 Contact ( 872,244) ( 468,326) On 11 January 2013 the shareholding in the owning company was purchased by Rovese SA, who have subsequently indicated their willingness to support the company for the Castlehill foreseeable future. Industrial Park provides a total of Surgichem 13,560 Ltd (Co sq no: m ) (145,962 sq ft) of gross internal accommodation Surgichem was incorporated in 1985 and specialises in the supply of medication management and storage systems both in car homes and the wider community. For the past 3 trading years the company has reported the following results: Year Ending Turnover 7.627m 6.629m 5.819m (published in July 2014) would indicate that the sale will not be blocked by the CMA. Watkins & Sole Transport Ltd (Co no: ) Incorporated in 1982, Watkins & Sole are specialists in airfreight transportation. Based at Heathrow they also operate from Bredbury, Birmingham and Bristol. They have reported the The Park is fully let on 9 full repairing and insuring leases to 6 tenants. following results for the last 3 trading years: Year Ending 2011 View 2013 Tenancy 2012 Schedule Turnover 6.798m 7.128m 6.852m Pre-tax The Profit aggregate income of 711,553 per annum reflects an overall average rent ( 0.029m) of only 4.87 per ( 0.040m) sq ft, although ( 0.047m) (Loss) individual unit rents range from per sq ft m m 232,792 We calculate that the average weighted unexpired lease term is 5.5 years to lease expiry and 4.5 years to earliest lease breaks. Wyndeham Print Direct Ltd (Co no: )/Print Direct 1987 Ltd (Co no: ) Copies of the lease documentation can be downloaded from the data room. Print Direct 1987 Ltd is a wholly owned, non-trading subsidiary of Wyndeham Print Direct Ltd, one of the UK s leading web offset continuous printers. For the past 3 trading years Wyndeham Print Direct has reported View the following Tenant s results: Covenants Year Ending 31 March March March 2011 Pre-tax Profit (Loss) 0.935m 0.923m 0.992m Year Ending 31 Dec Dec Dec 2010 Turnover m m m 2.147m 1.212m 0.517m Turnover 6.204m 6.435m 7.000m Pre-tax Profit (Loss) m m m m m m Currently a wholly owned subsidiary of BUPA, the sale of the share capital of Surgichem by BUPA to Omnicell Inc for 12.3m was agreed in December 2013 but is subject to investigation by the Competition and Markets Authority. Provisional findings Pre-tax Profit (Loss) ( 0.649m) ( 0.601m) (0.413m) 4.346m 5.057m 5.596m

9 VAT Offers sought in excess of 8,500,000, reflecting an attractive net initial yield of 7.91% The property has been elected for VAT and VAT is therefore payable on the purchase price. It is anticipated, however, that the sale will be treated as the transfer of a going concern and, if so, VAT will not be payable. EPCs A full suite of EPCs can be viewed within the dataroom. Proposal We have been instructed to seek offers in excess of 8,500,000, subject to contract and exclusive of VAT. A purchase at this price will show an initial yield of 7.91% net of normal acquisition costs of 5.8%.

10 Castlehill Industrial Park a high quality multi-let industrial investment opportunity