Well Let Industrial Investment

Transcription

1 A Bilfinger Real Estate company Well Let Industrial Investment Howard Basford Froghall Lane Guardian Street Warrington WA5 1SJ

2 Executive Summary SCOTLAND Glasgow Edinburgh NORTHERN IRELAND Newcastle Belfast IRELAND Dublin WALES Cardiff Leeds Manchester Warrington Birmingham ENGLAND London Bristol Excellent location just off the A57 and within close proximity to the wider transport network. Freehold industrial unit (13,631 sq ft) used as a car repair centre with large yard area which is let to the NHS and used for additional car parking. Very low site coverage of 13.43% allowing for potential future development. Part let to Howard Basford Limited who are a wholly owned subsidiary of Nationwide Accident Repair Services Plc. Part let to Warrington and Halton NHS Foundation Trust. 9.5 years unexpired (6.5 years to break) to Howard Basford. A year unexpired to the NHS (a further 5 year term agreed in principal on the same terms). Total income of 113,000 per annum. Offers in excess of 1,125,000 (One Million One Hundred and Twenty Five Thousand Pounds), subject to contract and exclusive of VAT. Attractive net initial yield of 9.49% assuming acquisition costs of 5.80%.

3 Location Please click on maps to link to online Bing maps Warrington is one of the North West s prime industrial, logistics and distribution locations, strategically positioned at the heart of the region s motorway network. The town is equidistant from the two major economic centres in the North West region, namely Manchester situated 16 miles to the east and Liverpool, situated 17 miles to the west. Warrington has an urban population of approximately 202,200 (2011 Census) people and approx. 1.3 million people within 12 miles (20 km) of the town centre. The town has excellent road communications, the M62 (Trans Pennine Motorway) serves Liverpool, Manchester and Leeds, the M6 motorway to the east of the town provides links to Birmingham to the south and Preston, Lancaster, Carlisle and Glasgow to the north, whilst the M56 motorway to the south of the town offers access to north Wales and the south Manchester conurbation. Warrington is situated on the West Coast Mainline providing rail services to Glasgow (2 hours 45 minutes) to the north and London Euston (1 hour 52 minutes) to the south. Alternatively Warrington Central and Warrington Bank Quay stations provide local services and connections to Liverpool, Manchester and Crewe. The town is within 30 minutes drive of Manchester International Airport and Liverpool John Lennon Airport.

4 Situation The property occupies a prominent position fronting the northern side of Froghall Lane (A57), approximately 1 mile to the west of Warrington town centre. The A57 provides direct access to the A49, which itself leads to junction 9 of the M62 motorway, approximately 3 miles to the north. The A57 also provides access to Junction 7 of the M65, 6 miles to the west. The property is located at the corner of Froghall Lane and Guardian Street and adjoins Froghall Bridge and the railway line to Newton Le Willows. Traffic using the A57 has an excellent view of the whole site due to the elevated position of the road. The surrounding area supports a variety of uses, generally comprising of car sales centres, residential accommodation and industrial uses. Warrington and Halton Hospital, which employs over 4,100 staff is located within very close proximity along Guardian Street. Other nearby occupiers include, Guardian Medical Centre and Pharmacy, The Cheshire Say Nursery, Lightcliff Honda and VW showrooms, Lia Motors showroom, World of Furniture and B&Q.

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6 Site Plan

7 Description The property comprises an industrial unit, constructed in the 1980 s and subsequently altered in 1996 to its current form providing a motor repair unit. The property is situated on a selfcontained secure site and benefits from over 130 on-site parking spaces as well as a secure compound to the rear. The property includes the following features: Steel portal frame construction Pitched frame incorporating approximately 10% translucent roof lights Part blockwork walls to north, east and west elevations and part profile metal clad elevations above Eaves height of 4.82m (5.93m maximum) Access via four roller shutters Ambraid gas central heating in warehouse External yard area secured with palisade fencing Reception, boardroom, kitchen and w/c s Mezzanine level Suspended ceilings with integral lighting Canopy External buildings used for car valet and canteen

8 Accommodation & Tenancy TThe property has been measured in accordance with the RICS Code of Measuring Practice on a gross internal area basis (GIA) and provides the following floor areas: Use Sq m Sq ft Ground Warehouse ,515 Storage ,121 Office / Reception ,704 Mezzanine Storage Office / Archive ,704 Total 1, ,631 External Wash bay / valet service area ,029 Canteen / Portocabin Total External

9 Site Area The property occupies a site extending to 2.01 acres (0.82 hectares) providing a very low site coverage of 13.43%. The area edged blue (0.55 acres) is let to Warrington and Halton Hospitals NHF Foundation Trust who use this for additional car parking for the local Hospital. They occupy circa 75 car parking spaces. Tenancy The property is let to two separate tenants on effectively FRI terms and currently produces a combined rent of 113,000 per annum. A lease of the warehouse and part of the car park to Howard Basford Limited and guaranteed by Nationwide Crash Repair Centres for a period of 10 years from 12 May 2014 and subject to an upward only rent review in 2019 and a tenant break option on 12 May The current rent is 73,000 per annum. A lease of part of the car park (edged blue on the site plan) to Warrington and Halton Hospitals NHS Foundation Trust for a period of 5 years from 13 August 2010 at a rent of 40,000 per annum. There are tenant and landlord options to break at any time subject to six months notice. We have agreed an agreement in principal to extend the lease for an additional 5 years from lease expiry. Further details can be provided if required. Tenure The property is held freehold. VAT The prices quoted are exclusive but may be subjective to VAT.

10 Covenant Information Howard Basford Limited (tenant) is a north west based automotive repair operator. They are the eighth largest independent bodyshop chain in the UK and operate eight bodyshops, at Accrington, Birkenhead, Crewe, Ellesmere Port, Liverpool, Manchester, Mold and Warrington. They provide automotive repair services to motor insurers, consumers and fleet operators. It also provides mobile repair and tyre services. In February 2014, Howard Basford was purchased by Nationwide Crash Repair Centres Limited (NCRC) (guarantor) a wholly owned subsidiary of Nationwide Accident Repair Services Plc (NARS). NARS provides automotive crash repair and accident administration services to the UK automotive insurance industry. NARS, which floated on AIM in July 2006, is the largest dedicated provider of accident repair services in the UK and has relationships with a large number of motor insurers, including R&SA, Aviva, Equity Red Star and Zurich. It also provides its services to fleet operators. Further information can be found at or Howard Basford have a D&B rating of 1A1 and their accounts for the past three years are as follows. Year Ending 31 Dec 2012 Year Ending 31 Dec 2011 Year Ending 31 Dec 2010 Sales Turnover 16,243,000 16,272,000 18,141,000 Profit / (Loss) 710, , ,000 before tax Tangible Net Worth 1,112, , ,000 Nationwide Crash Repair Centres have a D&B rating of 2A1 and their accounts for the past three years are as follows. Year Ending 31 Dec 2012 Year Ending 31 Dec 2011 Year Ending 31 Dec 2010 Sales Turnover 135,949, ,970, ,216,000 Profit / (Loss) 1,217,000 (7,480,000) 581,000 before tax Tangible Net Worth 3,959,000 2,335,000 7,116,000 Wigan and Halton Hospitals NHS are an NHS Foundation Trust providing first class services at Warrington Hospital, Halton General Hospital and the Cheshire and Merseyside Treatment Centre in the North West of England. Their vision is high quality, safe healthcare and their staff work together to provide excellent health care services across the towns of Warrington, Runcorn (where Halton General Hospital is based), Widnes and the surrounding areas. They are responsible for a budget of around 210 million each year, manage over 4,100 staff and provide access to care for over 500,000 patients. Wigan and Halton Hospitals NHS have a D&B rating of 5A1 and show the following accounts for the previous two years: Year Ending 31 March 2013 Year Ending 31 March 2012 Sales Turnover 190,654, ,784,000 Profit / (Loss) before tax (1,109,000) 926,000 Tangible Net Worth 133,050, ,995,000 Further information can be found at

11 EPC An Energy Performance Certificate (EPC) is available upon request or downloaded from our website Proposal Offers are sought in excess of 1,125,000 (One Million One Hundred And Twenty Five Thousand Pounds), subject to contract and exclusive of VAT. This would reflect an attractive net initial yield of 9.49% assuming acquisition costs of 5.80%. Further information Should you wish to inspect the property or require additional information, please contact: Adam Wildig Gurminder Manak Adam Wildig Direct Dial: Gurminder Manak Direct Dial: Print GVA, Norfolk House 7 Norfolk Street Manchester M2 1DW Save For any other investment sales please visit: gva.co.uk/investment SUBJECT TO CONTRACT October 2014

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