Amazon UK Services Ltd Foundry Point Halebank Industrial Estate

Transcription

1 Amazon UK Services Ltd Foundry Point Halebank Industrial Estate FOUNDRY LANE WIDNES CHESHIRE WA8 8TZ Last Mile Delivery Investment Opportunity SECURED TO THE UNDOUBTED COVENANT OF AMAZON UK SERVICES LTD

2 1 Investment Summary Well let distribution warehouse investment opportunity Located in the heart of the North West with excellent access to the M57 and M62 Motorways and within 20 minutes drive from junction 21A of the M6 Situated in a prominent location on the established Halebank Industrial Estate Recently refurbished to excellent specification providing 48,932 sq ft (4,545 sq m) A new lease to Amazon UK Services Ltd for a term of 5 years with effect from 22 June There is a break option upon expiry of the 3rd year Low passing rental of 216,432 per annum ( 4.42 per sq ft) Amazon UK Services Ltd provide an undoubted covenant with a Dun & Bradstreet Rating of 5A1 Freehold We are instructed to seek offers in excess of 2,465,000 (Two Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT A purchase at this level reflects an attractive net initial yield of 8.25% after purchaser s costs of 6.37% Low capital value of per sq ft

3 2 New Mersey Crossing Silver Jubilee Bridge Key Tesco Eddie Stobart TO M56 Widnes Business Park Croda Europe A562 RIVER MERSEY Scania Travis Perkins MCL Group Prime Industries NRG Automation Brenntag 3MG Multi-Model Gateway Tarmac AMAZON TO M62 / LIVERPOOL

4 3 Location Widnes is an industrial town in the Borough of Halton, approximately 14 miles east of Liverpool, 7 miles west of Warrington and 26 miles south-west of Manchester. The town benefits from excellent transport infrastructure as detailed below: Road Widnes is located within 4 miles of the intersection of the M62 and M57 motorways, with Junction 21a of the M6 motorway within 7 miles, making it an excellent strategic distribution location in which to serve the North West of England and wider UK area. The M62 motorway connects Liverpool to Leeds via the M60 orbital motorway. Air Liverpool John Lennon Airport is within 5 miles of Widnes. It is a hub for Europe s two largest low cost airlines, Easyjet and Ryanair, handling over 4.95 million passengers in There are regular scheduled flights to domestic and European destinations, as well as charter flights, to over 60 destinations. M6 A1(M) Rail Runcorn Railway Station is approximately 10 minutes to the south of Widnes, situated on the West Coast Mainline (served by Virgin Trains) with an approximate journey time of 2 hours to London Euston. Furthermore, Widnes station provides regional and local services with approximate journey times of 24 minutes to Liverpool and 30 minutes to Manchester. WIDNES M56 M6 M54 M62 M42 M1 Sea The Port of Liverpool is ranked among Britain s major container ports and is the country s major gateway for trade with the United States and Canada, serving more than 100 global destinations. The Seaforth Container Terminal handles nearly 700,000 TEUS (20ft container units) a year and has recently benefitted from 400m worth of investment to create a new deep sea container terminal known as Liverpool2. M5 M40 M1 M4 M3 M25

5 4 PRESTON BLACKBURN Drive Times M65 M62 / M57 Interchange J12 M56 8 MINUTES 12 MINUTES CHORLEY Liverpool Airport M62 / M6 Interchange 14 MINUTES 20 MINUTES BURY ROCH Liverpool City Centre Manchester 25 MINUTES 30 MINUTES M58 26 WIGAN BOLTON M Manchester Airport Port of Liverpool Birmingham London 30 MINUTES 35 MINUTES 1 HOUR, 40 MINUTES 3 HOURS, 30 MINUTES Port of Liverpool M53 LIVERPOOL 5 7 River Mersey ELLESMERE PORT M AMAZON A Liverpool John Lennon Airport A580 Speke M6 ST HELENS M62 7 WIDNES RUNCORN 12 M A WARRINGTON M62 MANCHESTER SHIP CANAL 12 1 M6 MANCHESTER Manchester Airport M6 Infrastructure Improvements THE NEW MERSEY GATEWAY PROJECT A new 6 lane toll bridge over the River Mersey between the towns of Widnes and Runcorn, providing a valuable and fast link between the M56 and M62 motorways and also from Widnes / Runcorn to Speke / South Liverpool. LIVERPOOL2 Peel Ports new deep water container terminal, accommodating 95% of the global container vessels fleet. Liverpool 2 now enables the Port of Liverpool to house 2 Post Panamax vessels simultaneously, creating the capacity to handle the next generation of container ships and enables the Port of Liverpool to be the UK s National gateway and trans-shipment for Ireland. DEESIDE

6 5 TO M57/M62 TO M56 TO LIVERPOOL A562 Hale Road A562 Ditton Road Hale Road Foundry Ln Halebank Road Hale Road AMAZON Foundry Ln Situation The property fronts on to Foundry Lane within the highly established Halebank Industrial Estate to the West of Widnes Town Centre. The property benefits from immediate access on to the A562 expressway providing a direct and fast link to the M62/M57 interchange to the North and Liverpool City Centre to the West. Access to the M56 to the South has been greatly improved by the completion of the New Mersey Gateway Bridge immediately to the East of the property. The property is situated immediately adjacent to the Mersey-MultiModal Gateway (3MG), providing 530,000 sq ft of existing distribution warehousing with outline consent for a total of 2.7M sq ft of new buildings rising eventually to 3.5M sq ft. The highly successful 3MG is a unique piece of infrastructure with unrivalled features including access to UK deep sea ports via rail and road infrastructure. Nearby occupiers include Eddie Stobart (who are currently constructing their new Head Quarters in Widnes), Tesco, Travis Perkins, Brenntag UK, Tarmac, Univar, NRG Automation, Croda and Scania amongst many others.

7 6 Description 47m average The property comprises a modern, detached warehouse facility on a self-contained site. The property has recently been extensively refurbished to an excellent specification as follows: Steel portal frame construction with profile sheet metal clad elevations Pitched metal roof incorporating approximately 10% translucent panels Eaves height of 7m Lit and heated throughout Two electrically operated level access loading doors Good quality, two storey office accommodation within the envelope of the building The property is situated on a secure, fully fenced and gated site. An extensive, concrete service yard is located to the rear of the property, with segregated staff and visitor parking available to the front. Both the service yard and parking areas benefit from separate vehicle access points from Foundry Lane. Accommodation The property has been measured in accordance with the RICS code of measuring properties (6th edition) and provides the following gross internal area: Description Area (sq m) Area (sq ft) Warehouse 4, ,262 GF Office ,354 FF Office ,316 Total Area 4, ,932 Site The site extends to approximately 2.49 acres providing a site cover of approximately 45%.

8 7 Tenancy The property is let to Amazon UK Services Ltd for 5 years with effect from 22 June 2018, at a passing rental of 216,432 per annum ( 4.42 per sq ft). The lease is held on FRI terms, subject to a Schedule of Condition. The tenant benefits from an option to break on 22 June 2021, subject to giving 9 months prior written notice. The tenant benefits from a rent free period until 28 November 2018 which will be topped up by the vendor. Tenure The property is held Freehold.

9 8 Covenant Status Amazon UK Services Ltd is a UK subsidiary of the largest internet based retailer in the world. Amazon UK Services Ltd (company number: ) have a Dun and Bradstreet rating of 5A1. The company reported the following accounts: Months (000 s) Months (000 s) Months (000 s) Turnover 1,987,697 1,462, ,458 Pre-Tax Profit 72,379 24,265 48,510 Tangible Net Worth 1,089, , ,978

10 9 Investment Market Commentary The North West industrial investment market had a very strong H1 2018, with a post-recession record of over 450m transacted (a 26% uplift on H1 2017). The North West industrial market continues to see unprecedented levels of investor demand, driven by strong occupational dynamics, a shortage of new development to meet ongoing market requirements and the continued growth of online retail. Comparable transactions of note include: Address Size (sq ft) Tenant Term Certain Price Yield Date Walthew House Lane, Martland Park, Wigan 34,492 Wigan One 3.0 Quoting 2.75m Quoting 7.18% Under Offer The Enza Building, Leacroft Road, Warrington Unit 1, Point 5, Walker Park, Blackburn Footasylum, Stakehill Industrial Estate, Middleton Norton Healthcare, Preston Brook, Runcorn Corrie Way, Bredbury Industrial Estate, Bredbury 38,060 Roanza Ltd m 4.76% Apr 18 26,576 LH Safety Ltd m 6.54% Jan ,873 Footasylum m 6.20% Nov 17 21,034 Norton Healthcare m 6.75% Jun 17 46,290 Brady Corporation m 7.20% Jun 17

11 10 EPC The property has an EPC rating of D(78). VAT The property has been elected for VAT and it is anticipated that the transaction will be by way of a Transfer of a Going Concern (TOGC). Proposal We have been instructed to seek offers in excess of 2,465,000 (Two Million Four Hundred and Sixty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.25% (assuming purchase costs of 6.37%) and a low capital value of per sq ft. Further Information For further information or to arrange a viewing please contact: