INDUSTRIAL INVESTMENT FOR SALE» OFFERS OVER 3,180,000 (7.50% NIY)» RARE OPPORTUNITY TO ACQUIRE A PRIME, SINGLE-LET INDUSTRIAL INVESTMENT

Transcription

1 INDUSTRIAL INVESTMENT FOR SALE» OFFERS OVER 3,180,000 (7.50% NIY)» RARE OPPORTUNITY TO ACQUIRE A PRIME, SINGLE-LET INDUSTRIAL INVESTMENT

2 EXECUTIVE SUMMARY Rare opportunity to acquire a prime, single-let industrial investment Prime new build industrial investment opportunity located at ABZ Business Park Designed and built to an exceptionally high specification Unexpired term of 11.4 years Let entirely to Exova (UK) Limited who command a Dun & Bradstreet rating of 5A1 Rent to be topped up to 252,844 per annum Next RPI uplift in August 2024 Energy efficient building with an EPC rating of A We are instructed to seek offers in excess of 3,180,000 (THREE MILLION ONE HUNDRED AND EIGHTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial yield of 7.50% after allowing for purchasers costs of 5.99% including LBTT (Land Building and Transactions Tax)

3 Aberdeen is Scotland s third largest City and the administrative centre for north east Scotland. The City is also considered the oil capital of Europe, being the major centre for North Sea Oil related activities. The population of Aberdeen City is in the order of 222,793 with the regional population of circa 446,660. By 2035 the population of Aberdeen City is projected to be over 271,000, an increase of 20%. INTERNATIONAL AIRPORT DYCE STATION AWPR A947 WESTHILL KINGSWELLS RAILWAY STATION HARBOUR PARK AND RIDE AIRPORT ROAD INTERNATIONAL BUSINESS PARK INTERNATIONAL AIRPORT Aberdeen is the principal administrative hub for Aberdeen city and shire, as well as being widely recognised as the energy capital of Europe and home to the UK s Oil and Gas industry where daily production is around 200,000 barrels of oil and gas per day. The crude oil price per barrel fluctuates between $61 & $64 as of March 2018 which is a marked increase from the low level of 2014 at $28/barrel. There are two universities in Aberdeen, these are the University of Aberdeen and Robert Gordon University with these two institutions being the two largest employers outside of the oil industry. Aberdeen is located on the north-east coast of Scotland approximately 125 miles north of Edinburgh and 145 miles north east of Glasgow. The nearest cities to Aberdeen are Dundee (66 miles) to the south and Inverness (105 miles) to the north west. INTERNATIONAL AVENUE DYCE DRIVE WELLHEADS DRIVE AWPR SITE OF NEW EXHIBITION & CONFERENCE CENTRE (DUE FOR COMPLETION 2019) STONEHAVEN PORTLETHEN

4 ABZ BUSINESS PARK ABZ Business Park is a major mixed use commercial development extending to 54 acres. The park provides an attractive mixture of modern, high quality offices, functional industrial etc. Situated adjacent to Aberdeen International Airport which has already attracted global oil and gas technology companies, the park occupies a key location with direct road connection to the Airport itself, in addition to this, it directly accesses Dyce Drive which provides excellent links to the A96, Wellheads Drive and the proposed Aberdeen Western Peripheral Route (AWPR). The AWPR is due to complete Autumn 2018 and will improve links from the north and south of Aberdeen to the airport. KIRKHILL INDUSTRIAL ESTATE WESTERN PERIPHERAL ROUTE DYCE AIRPORT PREMIER INN MARRIOTT MOXY HOTEL PARK AND RIDE AIRPORT LINK ROAD INTERNATIONAL BUSINESS PARK ABZ BUSINESS PARK WELLHEADS DRIVE DYCE DRIVE A96 CITY CENTRE (APPROX 20 MINS DRIVE) SITE OF NEW EXHIBITION & CONFERENCE CENTRE (DUE FOR COMPLETION 2019)

5 ABZ Business Park is located approximately six miles to the North West of Aberdeen city centre, providing a prime location with space to grow for expanding companies. SITUATION ABZ Business Park is situated in the heart of the north east s key commercial and industrial hub, with the surrounding area serving headquarters for companies including BP, Halliburton, Wood Group PSN, Aker Solutions, Emerson and Schlumberger. The Park has immediate access to the trunk road network lying 600m from the A96 Aberdeen to Inverness route with onward links to the major national motorway network. Its accessibility from all directions will be further enhanced upon delivery of the Aberdeen Western Peripheral Route (AWPR) in Autum 2018, which will further increase capacity and improve journey times. A Park and Ride facility is planned adjacent to the AWPR/ A96 junction and there is access both north and south by train from Dyce Station and a regular bus service that operates from Aberdeen Airport to the city centre. Aberdeen Airport handles more than 3.5m passengers and 4,000 tonnes of freight annually with connections to all major UK airports and European destinations, such as Amsterdam, Copenhagen, Dublin, Frankfurt, Paris and Stavanger. Safe routes for pedestrian and cyclists are available in all key connections to ABZ Business Park from rail and bus stations to Aberdeen International Airport.

6 DESCRIPTION...is a new build industrial premises comprising of a rectangular detached warehouse and office building, with secure yard, on a site which totals 1.19 acres (0.48 hectares) whilst also benefiting from 35 dedicated car parking spaces to the front of the office. The warehouse is of a steel portal frame design with concrete floor, profiled metal sheet cladding held under a profiled metal sheet clad roof, incorporating translucent panels for natural light. The eaves height is 7 metres and access to the warehouse is provided via two electrically operated roller shutter doors. The doors measure approximately 5m in width and 5m in height. There is a 3-phase power supply to the unit. The office accommodation is arranged over ground and first floor to the front of the unit. The space provides high quality, open plan accommodation that is fully DDA compliant with staff tea prep and WC facilities over both floors. The office space has been constructed to the following specification: VRV air conditioning Suspended ceilings Raised access flooring CAT 2 lighting Carpeted flooring Fully operational platform lift ACCOMMODATION We have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition) and would estimate the following approximate gross internal areas: Area Size (Sq M) Size (Sq Ft) Office Ground Floor 318 3,423 Office First Floor 289 3, ,167 1, ,701 Workshop Total In addition to the physical space there is a private, dedicated yard along the side elevation which extends to 0.43 acres (0.17 ha).

7 TENANCY INFORMATION The subject property is let to Exova (UK) Limited with the original lease from 29 August 2014 with expiry due 28 August The initial rent is 225,713 per annum with the rent reviewed every 5 years on a RPI basis, capped and collared at 5% and 2% respectively, compounded annually, with the next rent review due 28 August We have analysed the rent using the adopted lease formula and assumed a minimum RPI uplift of 2% until the next review resulting in the rental profile below: Year Rent (per annum) RPI % ,205 Min. 2% ,809 Min. 2% , % ,887 Min. 2% ,844 Min. 2% Based on the assumptions made in the table above the vendor will top-up the rent from 225,713 per annum to the anticipated 2019 rent of 252,844 per annum until the review date in August The lease is held on Full Repairing & Insuring terms. COVENANT Exova PLC, to which Exova (UK) Limited is a subsidiary, was acquired in June 2017 by Element Materials Technology which brings together two of the world s leading testing companies to create a single global testing organisation. The combined company, which is majority owned by Bridgepoint, an international private equity firm, now has more than 6,200 employees and will operate in the future as Element Materials Technology. The new Element Group will consist of 200 laboratories located in more than 30 countries. This latest acquisition by Element follows a period of significant growth for the business, helping it to become the fastest growing independent materials testing and product qualification company in the world. It is expected that the combined group will deliver in excess of 500m in annual revenues and serve more than 40,000 customers worldwide. 31 Dec Dec Dec 2014 Turnover / Sales 91,300,000 75,000,000 67,000,000 Tangible Net Worth 35,800,000 43,500,000 53,700,000 Profit (Losses) before Taxes 25,200,000 8,900,000 10,500,000

8 TENURE The subject properties are held on a heritable title (Scottish equivalent of English Freehold). EPC The subjects have an EPC Rating of A. VAT Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be treated as a TOGC. We are instructed to seek offers in excess of 3,180,000 (THREE MILLION ONE HUNDRED AND EIGHTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show a net initial yield of 7.50% on the topped up rent after allowing for purchasers costs of 5.99% including LBTT (Land Building and Transactions Tax). April 2018 LEGAL COSTS Each party will be responsible for their own legal costs incurred in connection with the transaction. VIEWING & FURTHER INFORMATION Please contact the sole selling agents: Sheridan Property Consultants Edinburgh Office: 37 One 37 George Street Edinburgh EH2 2HN London Office: 2nd Floor 91 Wimpole Street London W1G OEF Sheridan Property Consultants for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate. Stewart Sheridan stewart@sheridanproperty.co.uk Graeme Millar graeme@sheridanproperty.co.uk Cathal Keane cathal@sheridanproperty.co.uk Noel Tiffney noel@sheridanproperty.co.uk