V10 DRAFT P O LESTAR PRIME LONG LET INDUSTRIAL INVESTMENT WITH FIXED RENTAL UPLIFTS

Transcription

1 SHEPCOTE LANE P O LESTAR PRIME LONG LET INDUSTRIAL INVESTMENT WITH FIXED RENTAL UPLIFTS

2 SHEPCOTE LANE EXECUTIVE SUMMARY + Prime industrial warehouse benefiting from excellent communications being situated only a short distance from Junctions 33 & 34 of the M1 motorway. + Constructed in 2005, the unit comprises a manufacturing facility, with extensive loading and car parking facilities. + Providing a total of 43, sq m (465,554 sq ft). + Freehold. + Let to Polestar (UK) Print Limited (guaranteed by Polestar Investments Limited) until December 2034 (in excess of 21.5 years unexpired). + Total current rent of 2,615,406 per annum. + The lease benefits from 5 yearly rent reviews to a minimum of 2% per annum compounded. We are instructed to seek offers in excess of 29,083,000, subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 8.50%, assuming purchaser s costs of 5.80%, with the following guaranteed minimum yield profile: + December % + December % + December % + December %

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4 SHEPCOTE LANE LOCATION Sheffield is the principal commercial and administrative centre for South Yorkshire, and is located 33 miles south of Leeds, 39 miles north of Nottingham and 169 miles north of London. 35 The city benefits from excellent road communications being served by Junctions 33 and 34 of the M1 motorway, which in turn links with the M62 to the north, the M18 to the north east and the A1(M) to the east. Sheffield Railway Station provides regular services into London King s Cross (2 hours 20 minutes) and London St Pancras International (2 hours 10 minutes), as well as frequent services to Leeds and Manchester of around 40 minutes and 50 minutes respectively. A61 M1 34 ROTHERHAM M18 1 At a local level the Sheffield Supertram connects the city centre with the northern and southern suburbs. Sheffield City Airport is located close to Junction 34 of the M1 and Manchester, Leeds Bradford and East Midlands Airports are all within a reasonable distance. A61 A57 A M A57 A61 A57 M1 A6102

5 SITUATION The property is located on Shepcote Lane which is less than 1 mile south of Junction 34 of the M1 motorway. Junction 33 of the M1 is within 2.5 miles to the south east. The site is within close proximity to Sheffield City Airport and the Meadowhall Shopping Centre. The area around Shepcote Lane is one of the largest remaining strategic industrial and business space locations in the Lower Don Valley and is still the home to many traditional occupiers including Outokumpu, Parfetts, Menzies, DHL, Unipart Automotive, Betafence and Balfour Beatty Rail. CITY AIRPORT MEADOWHALL SHOPPING CENTRE M1 MOTORWAY A6109 MEADO W HALL ROAD MEADOWHALL SHOPPING CENTRE 34 A631 BAWTRY ROAD A6178 AFTERCLIFFE COMMON A631 SHEPCOTE LANE M1 ARENA A6102 BROUGHTON LANE EUROPA LINK

6 SHEPCOTE LANE SITE The site is broadly rectangular with a total site area of approximately hectares (27.01 acres) refl ecting a low site coverage ratio of approximately 39%. The property is positioned such that it benefits from good circulation and, subject to the necessary consents, could lend itself to future expansion or redevelopment. DESCRIPTION The subject property was developed in 2005 to provide a high tech gravure printing unit with ground and first fl oor office/staff accommodation and extensive loading and car parking facilities. The production area provides the following s p e c i fi c a t i o n; + Steel portal frame with a minimum eaves height of 15m (49 ft) to the underside of the haunch kn per sq m (1,045 lbs per sq ft) uniform distributed fl oor loadings with enhancement to 60 kn per sq m (1,255 lbs per sq ft) in specific areas. + Kingspan KS1000RW Firesafe steel faced cladding to high level elevations and roof with HPS profiled metal sheeting to the lower level elevations. + 10% translucent double skinned GRP roof lights level access loading doors with canopies over. + 7 dock level loading doors with dock shelters. + Provision of a 15 MVA power supply. The offices have the following specification; + Powder coated double glazed windows. + Gas-fired radiator heating system. + Three compartment dado trunking on ground fl oor and 150 mm raised access on first fl oor. + Anti-static carpet tiles to offices. + Suspended ceilings with Category 2 recessed lighting. + 8 person (630 kg) passenger lift. Externally, the property provides for the following; + Full circulation with concrete goods reception/dispatch yards and roadways suitable for 44 tonne HGV s on site car parking spaces. + Lighting to circulation and parking areas sq ft gatehouse. + Secure 2.4m high perimeter fence and gates.

7 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Areas: Description Sq M Sq Ft Warehouse 41, ,282 Offices (Ground) ,049 Offices ( First ) ,049 Boiler/Plant House ,173 Total 43, ,554 TENURE Freehold.

8 SHEPCOTE LANE TENANCY The property is let to Polestar (UK) Print Limited, with a guarantee from Polestar Investments Limited, for a term of 30 years from 25th December 2004, expiring on 24th December 2034, at a current passing rent of 2,615,406 per annum. The rent is subject to five yearly rent reviews to the higher of; (i) the passing rent increased at a rate of 2% per annum compounded annually, (ii) open market rental value or (iii) a notional rent for a warehouse unit of 200,000 sq ft. The next review is on 25th December 2014, where the rent will increase to a minimum of 2,887,619 per annum.

9 COVENANT INFORMATION Polestar are the leading publications printer in the UK producing magazines, newspapers and digital direct mail. As UK market leader they are the only UK printer to offer gravure, web offset and digital direct mail having market share in gravure of 45% and 32% in web offset. They currently employ 1,700 people. Polestar produce the majority of UK newspaper colour supplements and 23 of the UK s top 40 magazine titles including Hello, Cosmopolitan, Top Gear and Country Life, totalling some 40 million magazines per week. In addition to weekly prints Polestar produce annual reports, brochures for the travel and retail industry, forms and stationary, direct mail packs, books and directories. As a company Polestar have under gone significant change in the last decade. The advent of the digital era vastly reduced the worlds consumption of printed material. As a company Polestar have adapted to these changes by closing redundant sites throughout the country and investing over 200m in cutting edge technology and printing machinery in 9 sites throughout the UK. The subject site is Polestar s fl agship and largest printing works and houses one of only two major gravure printers in the UK. In April 2011 the company was sold to Sun European Capital (a subsidiary of Sun Capital, one of the world s largest private equity firms) who injected 20m of equity and settled 90m of net debt. New finance was also put in place which enhanced cashfl ows by 8 million per annum. In addition, in the last 18 months 300m of contracts have been renewed. In November last year Polestar acquired Sir John Madejski s Goodhead print group which was a strategic acquisition to increase its market share, which demonstrates Polestar s dominance in the UK market. For the year ending September 2012 Polestar (UK) Print Limited reported a Turnover of 222m and EBITDA of 34.4m, refl ecting a 14.6% increase from 2011.

10 SHEPCOTE LANE ENVIRONMENTAL An environmental survey has been carried out and is available upon request.

11 EPC The property has an EPC rating of E (119). A copy of the EPC is available upon request. VAT The property is elected for VAT and it is proposed the transaction will be completed by way of a transfer of a going concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 29,083,000 (Twenty Nine Million and Eighty Three Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 8.50%, assuming purchaser s costs of 5.80%, with the following guaranteed minimum yield profile: + December % + December % + December % + December % DATA ROOM An electronic data room has been created, the contents of which include: + Title documents + Occupational lease/occupational documents + Planning information + Energy Performance Certificate + Electronic copy of the sales particulars For access to the data room please contact Tudor Toone. FURTHER INFORMATION For further information or to arrange an inspection, please contact:- Ben Goodberry Tel: Mob: bengoodberry@tudortoone.com Hugh Faith Tel: Mob: hughfaith@tudortoone.com

12 SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT MISREPRESENTATION ACT 1967 TUDOR TOONE LLP, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT: THESE PARTICULARS DO NOT CONSTITUTE, NOR CONSTITUTE ANY PART OF, AN OFFER OR CONTRACT. TUDOR TOONE LLP AND ITS MEMBERS ACCEPT NO LEGAL RESPONSIBILITY FOR ANY STATEMENT OR REPRESENTATION WHETHER WRITTEN, ORAL OR IMPLIED OR WHETHER CONTAINED IN ANY ADVERTISEMENT PARTICULARS OR OTHER MATTERS ISSUED OR ANY CORRESPONDENCE ENTERED INTO BY THEM AND WHETHER MADE IN ANY ANTECEDENT PRESENT OR SUBSEQUENT ENQUIRIES OR NEGOTIATIONS. NEITHER TUDOR TOONE LLP NOR THEIR PRINCIPALS, MEMBERS, AGENTS, SERVANTS OR REPRESENTATIVES HAVE ANY AUTHORITY WHATSOEVER TO MAKE OR GIVE ANY REPRESENTATION OR WARRANTY WHATSOEVER WHETHER WRITTEN OR IMPLIED IN RELATION TO THIS PROPERTY. ANY INTENDING PURCHASER MUST SATISFY HIMSELF BY INSPECTION OR OTHERWISE AS TO THE CORRECTNESS OF ANY ANTECEDENT PRESENT OR SUBSEQUENT STATEMENTS OR REPRESENTATIONS, AND SHOULD NOT RELY UPON THE SAME UNLESS HE HAS SATISFIED HIMSELF ACCORDINGLY. UNLESS OTHERWISE STATED ALL PRICES AND RENTS ARE QUOTED EXCLUSIVE OF VALUE ADDED TAX (VAT). ANY INTENDING PURCHASERS OR LESSEES MUST SATISFY THEMSELVES INDEPENDENTLY AS TO THE INCIDENCE OF VAT IN RESPECT OF ANY TRANSACTION. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT. TUDOR TOONE LLP IS A LIMITED LIABILITY PARTNERSHIP REGISTERED IN ENGLAND AND WALES WITH REGISTERED NUMBER OC REGISTERED OFFICE: 41/43 MADDOX STREET LONDON W1S 2PD. DETAILS PREPARED APRIL 2013.