Stapleton s Tyre Services Telford Way, Wakefield 41 Industrial Estate, Wakefield, WF2 0XW

Transcription

1 Stapleton s Tyre Services Telford Way, Wakefield 41 Industrial Estate, Wakefield, WF2 0XW Industrial Sale and Leaseback Opportunity Let to Stapleton s Tyre Services with Guarantee from European Tyre Enterprise Limited

2 INVESTMENT SUMMARY Well specified distribution warehouse investment measuring 91,446 sq ft, located on Wakefield 41, a prime distribution/logistics park location adjacent to Junction 41 of the Motorway and /M62 intersection Stapleton s Tyre Services key northern distribution hub serving over 1,000 different garages and stores across Yorkshire and Lincolnshire Freehold Sale and Leaseback to Stapleton s (Tyre Services) Limited (Tenant) & Guaranteed by European Tyre Enterprise Limited (D&B 5A1 based on tangible net worth of 367,452,000) A new 15 year full repairing and insuring lease from completion with tenant break options at the 5th and 10th anniversary of the lease Initial rent of 297,500 pa equating to 4.50 per sq ft ( 1.50 per sq ft on mezzanine) 5 yearly upward only rent reviews which are index linked to RPI with a collar of 1% per annum and a cap of 3% per annum We have been instructed to seek offers in excess of 3,690,000 (Three Million, Six Hundred and Ninety Thousand Pounds), subject to contract. A purchase at this level reflects a net initial yield of 7.50%, assuming purchaser s costs of 7.46% and a low capital value of 40 per sq ft

3 BURNLEY M66 A646 A6033 BRADFORD M62 A6036 M62 HUDDERSFIELD LEEDS HALIFAX WAKEFIELD 41 A638 M62 WAKEFIELD A1 A19 8 M61 M60 A629 A635 DONCASTER 8 M6 M56 MANCHESTER M60 A6 A628 A616 A61 8 SHEFFIELD LOCATION Location Strategically located at the intersection of the and M62 Motorways, Wakefield provides excellent access to the national motorway network and connects with the major conurbations of Leeds, Sheffield and Manchester. The ports of Humberside and Liverpool are easily accessible. Wakefield is located 9 miles south of Leeds, 25 miles north of Sheffield and 38 miles east of Manchester. The city also benefits from high quality rail links, being situated on the East Coast Mainline and benefiting from a fastest journey time to London of 1 hour 58 mins. Leeds Bradford Airport is located approximately 17 miles to the north west, with Robin Hood (Doncaster) and Manchester airports also within easy reach. Located under 11 miles from Leeds, which, as of 2011, was the UK s third largest city and is expected to grow to 930,000 by 2033, Wakefield is well placed to capitalise on the growth of Leeds as a business destination and attract new businesses and jobs from outside the district. In percentage terms, Manufacturing and Transport & Distribution employment in Wakefield was at 20.5% in 2011, which is above the North & Scotland Market Area average of 14.0%. Wakefield 41 extends to approximately 230 acres and is one of the region s dominant distribution hubs. It is an established industrial distribution and office location that has seen substantial regeneration and development. With its excellent proximity to the motorway network, it houses a number of significant occupiers including Coca-Cola, Card Factory, Morrisons and Polestar. The property is situated on Telford Way which is accessed via the primary estate road Kenmore Road. In turn Kenmore Road provides access to the A650 to the south. The A650 is a main arterial route providing direct access from the through to the city centre. ORD ROAD BRADFORD ROAD 41 MOOR KNOLL LANE ROYSTON HI L FALL LANE A650 LAWNS LANE LINGWELL GATE LANE Stapleton s Tyre Services LINGWELL GATE E LANE LANE Wakefield B6135 M62 POTOVENS LANE LOFTHOUSE LEEDS ROAD LEEDS ROAD B6135 OUTWO Wakefield 41 The subject property is situated on Wakefield 41 Industrial Park, Yorkshire s premier distribution centre and is located on the A650 Wakefield Road, less than 1 mile from Junction 41 of the and approximately 2.5 miles south of the /M62 interchange. Wakefield city centre lies approximately 2 miles south west. POTOVENS LANE A650 LEEDS ROAD

4 LONDO N LEEDS & YORK Stapleton s Tyre Services

5 DESCRIPTION The property was constructed in the 1990s and has been occupied by Stapleton s Tyre Services for the past 20 years, with many of the staff there today having been there since initial occupation. The committed workforce and fundamental positioning of Wakefield 41 industrial estate is essential to Stapleton s operations in the Yorkshire and Lincolnshire markets. More than 100,000 tyres are transported on a monthly basis to the likes of Sheffield, Hull, Leeds, York, Doncaster, Grimsby and Lincoln. The building comprises a well specified warehouse of steel portal frame construction with the following attributes: Minimum eaves height to haunch of 11m 4 level access loading doors, and a further 6 dock levellers Yard depth of 34 metres Secure external yard UPS power system 3 phase power supply Roller shutter door access Accommodation The building can be summarised on a Gross Internal Area basis as follows: Floor Use Area (sq m) Area (sq ft) Ground Warehouse Office 4, ,356 1,541 First Storage Office 1, ,215 1,554 Second Storage 1,211 13,036 Third Storage ,744 Total GIA 8,495 91,446 Tenure Freehold. Site The property is situated on a site with an area of approximately 3.17 acres (1.28 hectares). Planning The subject units benefit from Use Classes B1, B2 and B8. Occupied by Stapleton s Tyre Services for the past 20 years IDEAL BATHROOMS The plan is for indicative purposes only YPO

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7 TENANCY Tenancy A new 15 year full repairing and insuring lease to Stapleton s Tyre Services guaranteed by European Tyre Enterprise Ltd. The lease will be subject to tenant only break options at the 5th and 10th anniversary of the term commencement. The initial rental will be 297,500 per annum which equates to an annual rent of 4.50 per sq ft ( 1.50 psf on mezzanine). The lease will be subject to rent reviews at 5 year intervals linked to RPI with a collar of 1% per annum and a cap of 3% per annum. Based off the initial rental of 297,500 the minimum and maximum rental at review may rise as follows: Years Minimum Rent pa/ Reversionary Yield Maximum Rent pa/ Reversionary Yield ,500/NA 297,500/NA ,675/8.47% 344,884/9.35% ,625/8.91% 399,815/10.84% Tenant Covenant Stapleton s (Tyre Services) Limited Stapleton s has more than 75 years experience as one of the UK s largest distributors of passenger cars, 4x4 and van tyres. Employing over 1,000 people at 9 strategic locations across the UK, the Company is a national leader in tyre warehousing and distribution for the specialist tyre retail trade and the car dealership sector. Stapleton s (Tyre Services) Limited (Registration No: ) has reported the following financial results: Year Ending Turnover Pre-Tax Profit Net Assets 31 Mar ,592,000 2,792,000 10,289, Mar ,962,000 12,348,000 7,709, Mar ,447,000 7,075,000 24,520,000 Stapleton s (Tyre Services) Ltd has an Experian credit rating of 87 and represents a below average risk of business failure. Guarantor Covenant European Tyre Enterprise Limited In 1994 Stapleton s was acquired by the Japanese Itochu Corporation who fully integrated Stapleton s into European Tyre Enterprises Ltd. Combined with many of Stapleton s traditional values, Itochu s acquisition and investment has seen Stapleton s become the market leader. In June 2011, Itochu also completed the acquisition of Kwik Fit. European Tyre Enterprise Limited specialises in the wholesale, distribution and retail of passenger and commercial vehicle tyres, as well as automotive repair and servicing activities. European Tyre Enterprise Limited (Registration No: ) has reported the following financial results: Year Ending Turnover Pre-Tax Profit Net Assets 31 Mar ,554, ,452, Mar ,956, ,619, Mar ,050, ,817,000 European Tyre Enterprise Ltd has an Experian credit rating of 100 and represents a below average risk of business failure.

8 INVESTMENT MARKET The industrial property investment market continues to receive strong investor demand from a combination of UK institutions, foreign investors and property companies in light of the UK Brexit vote. Take-up of large industrial space increased by 4% in the second quarter of Lettings totaling 10m sq ft were completed during the quarter a rise on Q1 and above the five-year quarterly average. Combined with a shortage of good quality stock, this demand has resulted in continued yield compression over the last 18 months with a ripple effect from London to the prime and good secondary regional locations as investors are looking up the risk curve. Outlined below are some relevant investment transactions: Investment Rationale Strong tenant and guarantor covenant Prime distribution/logistics location Date Address Town Size Sq ft Term Years Rent psf Price Yield CV psf Tenant has been located on site for over 20 years Oct 16 Designer Contracts, Telford Way Industrial Estate Kettering 109, m 6.25% 68 Aug 16 H&M, Road One Winsford 105, m 7.15% 5 Jul 16 FHC Manor Park Runcorn 171, m 6.75% 67 Jul 16 Callaway Gold Europe Ltd, South Marston Business Park Swindon 100, m 6.53% 81 Jun 16 Krone UK Headquarters, Peckfield Business Park Leeds 21, m 6.65% 60 May 16 Co-op, Drum Park Durham 270, m 6.20% 64 Apr 16 Mezines, Telford Way, Wakefield 41 Wakefield 103, m 6.60% 61 RPI increases High yielding asset with low capital value psf Well specified unit suitable for various occupiers

9 PROPOSAL We are seeking offers in excess of 3,690,000 (Three Million, Six Hundred and Ninety Thousand Pounds) for our client s freehold interest in the property subject to contract. A purchase at this price reflects a net initial yield of 7.50% having allowed for purchaser s costs of 7.46%, and a low capital value of 40 psf. Capital Allowances EPC Rating VAT Web Access Any unclaimed capital allowances will be made available to the purchaser. Energy Performance Certificate: C 72 It is unlikely the sale can be treated as a Transfer of a Going Concern and therefore we have assumed purchaser s costs to be 7.46%.

10 OUR TEAM Cushman & Wakefield LLP 43/45 Portman Square London W1A 3BG Adam McMillan Tel: Ben Sleath Tel: Richard Brooke Tel: October 2016 MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Photography & Production by PlusArt Limited