WEST MIDLANDS AMBULANCE SERVICE NHS FOUNDATION TRUST IBSTOCK ROAD, COVENTRY, CV6 6JR SECURE INVESTMENT OPPORTUNITY

Transcription

1 WEST MIDLANDS AMBULANCE SERVICE NHS FOUNDATION TRUST IBSTOCK ROAD, COVENTRY, CV6 6JR SECURE INVESTMENT OPPORTUNITY

2 INVESTMENT SUMMARY > > Modern warehouse / hub facility let to a very strong tenant with 16 years unexpired with good rental growth prospects. > > Prominently positioned on Ibstock Road in Coventry within ½ mile of Junction 3 of the M6 Motorway. > > Gross Internal Area of 19,104 sq ft on a site of 1.6 acres providing a low developed density of 27%. > > Let to West Midlands Ambulance Service NHS Foundation Trust on a 20 years lease from 24th May 2013 at a rent of 126,966 pa. > > We are instructed to seek offers in excess of 2,100,000 (Two Million One Hundred Thousand Pounds) subject to contract, which reflects a net initial yield of 5.69% after allowing for purchasers costs of 6.30%. > > Freehold, single bay steel portal frame unit, constructed in 2013 and fitted out as an ambulance station service hub on a secure site with 95 vehicle parking spaces. > > Operating as a key ambulance hub for the Coventry area, the West Midlands Ambulance Service NHS Foundation Trust for the year ending 2016 had an income of million and net assets of 52.7million.

3 LIVERPOOL 93 MILES MANCHESTER 80 MILES LEEDS 96 MILES TO MANCHESTER & NORTH WEST LEEK STOKE-ON-TRENT SHREWSBURY 56 MILES BIRMINGHAM 17 MILES BRISTOL 80 MILES NOTTINGHAM 55 MILES LEICESTER 23 MILES COVENTRY NORTHAMPTON 29 MILES LONDON 86 MILES OSWESTRY SHREWSBURY LUDLOW MARKET DRAYTON TELFORD WOLVERHAMPTON BRIDGNORTH M54 KIDDERMINSTER M6 DUDLEY STOURBRIDGE UTTOXETER STAFFORD LICHFIELD WALSALL BIRMINGHAM BURTON-UPON-TRENT M6 TOLL M6 SOLIHULL M42 TAMWORTH NUNEATON COVENTRY M6 M1 M69 RUGBY TO LEEDS & NORTH EAST M1 LOCATION DISTANCE (MILES) CONNECTIVITY (H:M) LEOMINSTER HEREFORD WORCESTER GREAT MALVERN LEDBURY M5 EVESHAM REDDITCH WARWICK M40 STRATFORD-UPON-AVON TO LONDON & SOUTH EAST M1 Birmingham 20 Leicester 24 Birmingham International Airport (by car) 0:20 London Euston (by train) 1:05 M50 TO BRISTOL & SOUTH WEST TO LONDON London 95 Manchester Picadilly (by train) 1:59 ROSS-ON-WYE LOCATION Coventry is located within the West Midlands, approximately 20 miles east of Birmingham, 24 miles south west of Leicester and 95 miles northwest of London. The city forms part of the Golden Triangle for logistics in the UK with excellent road communications, providing direct access to the M6 and the M69 motorways and access to the M40 and M42 motorways via the A46 and A45, Birmingham to Coventry trunk roads, respectively. Coventry train station provides regular intercity links to London, Birmingham and Manchester, with the fastest journey time by train to London Euston approximately 65 minutes. Birmingham International Airport is 20 minutes drive time to the west of Coventry, providing access to domestic and international destinations. Coventry is the 9th largest city in England and the 12th largest in the UK. It is additionally the second biggest city in the West Midlands area, after Birmingham, with a population of 329,810 and is home to 35,000 businesses.

4 M6 VICARAGE LN TO BIRMINGHAM CHURCH LN CHURCH LN A444 A444 COVENTRY RD JCT3 A444 LONGFORD RD BLACKHORSE RD B4113 A444 COVENTRY CITY CENTRE BEDWORTH RD IBSTOCK RD M6 WEST MIDLANDS AMBULANCE SERVICE NHS FOUNDATION TRUST TO LONDON GRANGE RD SITUATION The property is prominently situated on Ibstock Road approximately 4 miles to the North of Coventry City Centre and within ½ mile of Junction 3 of the M6 motorway. The immediate vicinity is mainly industrial with Sheffield Insulation Group, Eye Box and Stair Craft located nearby. Further along Ibstock Road are a number of motor trade properties including a Listers Volkswagon Van Centre and XL Accident and Repair.

5 SL SL galvanised 2.4m high soft landscaping to pe rim eter macadam finishes to car parking areas ste el fe ncing De f gas storage h PP BEDWO RTH ROAD m high 2.95 tank fuel Petrol tank 2.95m high Outline of proposed new ambulance hub building ge oil stora CK tyre storage IBSTO AMBULANCES Refuse store hig gas, petrol, compressor storage compressor m FW 95 CAR PARKING SPACES (inc. 26 emergency vehicle spaces) C co ated SL perimeter - co lou r: gr FW g to steel fencin een m high galvanised steel fencing to perimeter SL m SN Refer to drawing for detailed floor plans SN IBSTOCK ROAD hatched 1.5m wide pedestrian walkway AMBULANCES AMBULANCES hatched 1.5m wide pedestrian walkway 2.4m high PPC coated steel fencing to perimeter - colour: green Proposed Block Plan 1: ROAD ORTH BEDW macadam finishes to car parking areas soft landscaping OFFICE ENTRANCE m 92.9 hatched 1.5m wide pedestrian walkway automatic sliding entrance gate EXIT m wide pedestrian footpath soft landscaping drop kerbs to existing pavement to create new49.91 access and exits SN PEDESTRIAN ENTRANCE SITE ENTRANCE new drop kerbs to existing pavement to create new access and exits new cycle store automatic sliding entrance gate IBSTOCK ROAD SN Proposed Site Plan at Ground Floor Level 1:200 revisions P Initial Planning Issue - (dr MC/ ch LP) P Revised following comments from planning department - (dr RM/ ch LP) DESCRIPTION N Do not scale off drawing. Check all dimensions on site and advise any discrepancies before commencing work. All figured dimensions are millimetres unless otherwise stated. Location plans subject to Crown Copyright. Built in 2013, the property comprises a single bay warehouse hub with integral two story offices. The property is of steel portal frame construction with an approximate clear eaves height of 6.6 metres. The external envelope is metal cladding under a profile metal sheet roof incorporating translucent rooflights. dr = drawn by, ch = checked by The warehouse is fitted out to the Ambulance service specification to provide; >> Painted concrete floor >> Sodium lighting and ambi-rad heaters >> Eight overhead sectional electrically operated vehicular doors >> Vehicle Wash Bay & Workshop >> Ancillary store rooms and staff facilities. bryantpriestnewman The offices are centrally heated with cassette air conditioning units, carpeted solid floors, suspended ceilings and integral lighting. There are double glazed aluminium windows to the elevations with a lift serving the first floor together with Male, Female and Disabled WCs. The offices have been configured to the ambulance service requirements providing training rooms, staff rooms locker rooms and changing rooms with showers. IBSTOCK ROAD COVENTRY PROPOSED SITE PLAN AND PROPOSED BLOCK PLAN drawing scale VARIOUS revision P1 date drawn by MC checked by LP b r y a n t p r i e s t n e w m a n l t d a r c h i t e c t s 3 mary street b i r m i n g h a m B 3 1 U D t: f: w w w.bryantpriestnewman.com mail@bryantpriestnewman.com Externally there is a large concrete yard to all sides of the property with tarmacadam surfaced car park areas providing 95 spaces including 26 for emergency vehicles. In addition, there is a cycle store, refuse area and a fuel tank. The site is fully secured by metal palisade fencing and security gates.

6 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate gross internal floor areas. DESCRIPTION SQ M SQ FT Warehouse / Workshop / Washbay / Staff Rooms ,983 Ground Floor Offices / Staff Rooms ,292 First Floor Offices ,829 Sub Total ,104 For the purposes of the rent review any rental value attributed in excess of 17,717 sq ft GIA is to be disregarded. The site extends to a total area of approximately 1.6 acres providing for a low site cover of 27%. TENURE Freehold.

7 TENANCY DETAILS The property is let on full repairing and insuring terms to the West Midlands Ambulance Service NHS Foundation Trust on a 20 years lease from 24th May 2013 providing 16 years unexpired term without break at an initial rent of 126,966 per annum. The rent is reviewed upward only every five years to the Open Market Rental Value of the premises assuming either a B1, B2 or B8 use or as ambulance station service hub. The next rent review is due on 24th May TENANT COVENANT INFORMATION West Midlands Ambulance Service NHS Foundation Trust, serves a population of 5.6million people covering an area of around 5,000 sq miles in Shropshire, Herefordshire, Worcestershire, Staffordshire, Warwickshire, Coventry, Birmingham and Black Country conurbation. As the regions emergency ambulance service the Trust responds to around 3,000, 999 calls each day employing 4,000 staff and operating from 15 new fleet preparation hubs and a network of over 40 community ambulance stations. The trust also carries out approximately 1,000,000 nonemergency patient journeys each year. The trust is a non-profit making organisation and their most recent accounts are summarised below; YEAR INCOME SURPLUS (DEFICIT) NET ASSETS / TAX END 000 s 000 s PAYERS EQUITY 000 s ,883 (433) 52, ,838 3,537 52, ,061 2,499 46,695 Further details can be provided on request.

8 OCCUPATIONAL MARKET Demand for well located, good quality B1, B2 and B8 space has increased significantly over the previous 2-3 years with a noticeable reduction in available units. Take up of logistics space in 2016 was the largest on record with the UK Logistics Availability Rate now at its lowest level. Coventry has been a particular hot-spot with sharp increases in rental levels combined with a reduction in tenant s incentives. This has led to greater levels of speculative development such as Lyons Park, Imperial Park and Carbon 103. Recent transactions include the following; LYONS PARK, BROWNS LANE COVENTRY - OML from Feb years lease to Christies Lights on 45,000 sq. ft. at a rent of 292,500 pa equating to 6.50 per sq ft. U4 TACHBROOK PARK, LEAMINGTON SPA - OML from Sept years lease to Four Graphics on 11,680 sq. ft. at a rent of 81,760 equating to 7.00 per sq ft. UNIT E, LYONS PARK, BROWNS LANE, COVENTRY OML from Jan years lease to Impression Technologies on 32,280 sq. ft. at a rent of 201,750 pa equating to 6.25 per sq. ft. PLOT 3 HIGHLANDS PARK, STIRLING ROAD, SOLIHULL - OML from April years lease to Blink Medical on 13,382 sq. ft. at a rent of 107,056 per annum equating to 8.00 per sq ft. Based on the above, we are of the view that the rental level for this property is 6.50 per sq ft on 17,717 sq ft. In addition, however, assuming a standard developed density of 40% there is 0.5 acres of additional land to be rentalised. Adopting a storage land rate of 25,000 per acre our view on Estimated Rental Value for the property is 127,660 per annum suggesting an uplift at the next rent review. Longer term we are of the opinion that the property would easily be converted to a Car Showroom providing a premium rent subject to planning. INVESTMENT MARKET OVERVIEW The warehouse and distribution sector continues to provide strong returns and is a leading investment sector and thus is competitively sought after. Relevant investment transactions are set out opposite: VOLVO CAR DEALERSHIP, GRANGE LANE, STOURBRIDGE - May years lease to Volvo Car UK Limited at a rent of 99,725 equating to 15.67psf. Sold for 1.75million reflecting a yield of 5.34%. UNIT 3 WILTON DRIVE, TOURNAMENT FIELDS, WARWICK - Nov years lease to Eagle Burgmann Industries at a rent of 140,000 pa equating to 9.54 per sq ft. Sold for 2.1million reflecting a net initial yield of 6.24%. BICESTER DISTRIBUTION PARK, BICESTER Nov years remaining to DPD Logistics. Sold for 3.15million reflecting a net initial yield of 5.9%. UNIT 302 RELAY PARK, RELAY DRIVE, TAMWORTH JUNE - Let to Schenker Ltd at 5.07 per sq ft until September 2017 was sold for 4,650,000 reflecting a net initial yield of 5.65%.

9 EPC The property has an EPC rating of B26. A copy of the certificate is available upon request. VAT PROPOSAL The property is elected for VAT however it is anticipated that the transaction will be treated as a transfer of a going concern (TOGC). We are instructed to seek offers in excess of 2,100,000 (TWO MILLION ONE HUNDRED THOUSAND POUNDS) subject to contract and exclusive of VAT, which reflects a net initial yield of 5.69% after allowing for purchasers costs of 6.30%. For further information or to arrange an inspection please contact; Mark Johnson mjohnson@mk2.co.uk Mark Rooke mrooke@mk2.co.uk MK2 Real Estate Ltd Maddox House, 117 Edmund Street, Birmingham B3 2HJ Tel: info@mk2.co.uk IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal ( information ) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.these matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: JUNE 2017