INVESTMENT SALE SOUTH PORTFOLIO. Three high yielding industrial investments within Scotland s Central Belt

Transcription

1 INVESTMENT SALE SOUTH PORTFOLIO Three high yielding industrial investments within Scotland s Central Belt South Street Glasgow Albion Trading Estate South Street Glasgow Forties South Rosyth September 2012

2 SOUTH PORTFOLIO Three high yielding industrial investments within Scotland s Central Belt South Street Glasgow Albion Trading Estate South Street Glasgow Forties South Rosyth INVESTMENT SUMMARY POTENTIAL INCOME BY PROPERTY Attractive portfolio comprising modern multi-let industrial units Three industrial estates within Central Glasgow and Rosyth Europarc Situated in strong positions within well established commercial and industrial locations 103,099 sq ft of industrial accommodation comprising 25 units with a range of sizes from 850 sq ft to 12,500 sq ft Attractive initial yield with reversionary potential through active management Low capital value of only per sq ft Forties South, Rosyth 164,919 per annum South Street, Glasgow 67,475 per annum Albion Trading Estate, Glasgow 265,061 per annum

3 TENANCY SCHEDULE ADDRESS TENANT LEASE EXPIRY TENANT BREAK OPTION REVIEWS PASSING GROSS INTERNAL AREAS (SQ FT) 3A/C Albion Trading Estate, Glasgow William Wilson Limited 17/11/14 45,000 9,055 3B Albion Trading Estate, Glasgow West of Scotland Engineering Ltd 15/12/19 16/12/15 26,000 5,163 3D Albion Trading Estate, Glasgow In Solicitor s hands 20,450 3,893 4A Albion Trading Estate, Glasgow Vacant ERV 49,000 9,806 4B Albion Trading Estate, Glasgow Under Offer 61,400 12,280 5 Albion Trading Estate, Glasgow In Solicitor s hands 63,211 14,049 Unit 1, South Street, Glasgow In Solicitor s hands 6,950 1,028 Unit 2, South Street, Glasgow Mr Andrew Thomas (t/a Smart Oils Ltd) 09/04/13 6,600 1,029 Unit 3, South Street, Glasgow R L Crawford Motor Engineers Ltd 31/08/14 6,600 1,003 Unit 4, South Street, Glasgow Brian Elder Motors Ltd 07/06/12 tacit relocation 6,530 1,005 Unit 5, South Street, Glasgow Danny McGuire (t/a FGA) 30/04/13 6, Unit 6, South Street, Glasgow Danilo Lucchi UK Ltd 31/05/14 6, Unit 7, South Street, Glasgow Danilo Lucchi UK Ltd 31/05/14 6, Unit 8, South Street, Glasgow Kenneth P Scott 31/05/16 7,850 1,119 Unit 9, South Street, Glasgow Margaret Gordon 10/11/15 10/11/13 8,500 1,237 Unit 10, South Street, Glasgow Turbo Tyres Ltd 05/09/15 06/09/13 6,750 1,078 Unit 11, South Street, Glasgow Louise Burns 27/05/17 27/05/15 5, Hoarding, South Street, Glasgow Peel Advertising 02/12/14 1, South Street, Glasgow Long Leasehold from Glasgow Council 28/08/ /08/2010-9,250 1, Forties South, Rosyth HCS Control Systems Limited 10/12/17 11/12/12 33,305 7,500 2, Forties South, Rosyth BEP Supplies Ltd 29/03/12 month to month 20,783 4,890 3, Forties South, Rosyth Vacant ERV 12,500 3,090 4a, Forties South, Rosyth Vacant ERV 12,500 2,830 4b, Forties South, Rosyth Compass Business Installations Ltd 29/05/18 29/05/13 29/05/13 14,195 3,165 4c, Forties South, Rosyth Kitsons Environmental Ltd 13/10/12 month to month 12,716 2,992 4d, Forties South, Rosyth Simon Smail (t/a Sitech Racing) 19/06/16 12,500 3,165 4e, Forties South, Rosyth Autoteknik.com 30/09/18 01/10/13 01/10/15 01/10/13 19,420 4,855 4f, Forties South, Rosyth ISS Facility Services Ltd 03/08/13 21,500 4, (SITE), Forties South, Rosyth Scorpion Site Services (in liquidation) 27/11/16 19/09/09 5, TOTAL 497, ,099

4 A82 A9 A9 DUNDEE A90 ABERDEEN A92 PROPOSAL We are instructed to seek offers in excess of 3,350,000 (THREE MILLION, THREE HUNDRED AND FIFTY THOUSAND POUNDS), exclusive for our client s interest in the above properties A purchase at this level would reflect the following yield profile: PASSING 271, % + IN SOLICITORS HANDS 362, % + UNDER OFFER 423, % + VACANT 497,455 14% A83 Firth of Clyde M77 M80 GLASGOW A76 M9 M8 M74 M90 Firth of Forth ROSYTH EDINBURGH A68 A72 A7 A697 A68 A1 The properties have been elected for VAT and as such the purchase price will attract VAT at the standard rate. However, we anticipate that the transaction will also qualify as a transfer of a going concern (TOGC) VAT All prices, premiums and rents etc. are quoted exclusive of VAT at the prevailing rate. DATA ROOM Interested parties should note that all documentation is held within a data room, access to which can be arranged through the retained agents All Energy Performance Certificates are available in the Data Room It should be noted that the vendors cannot warrant the information provided VIEWING INFORMATION For viewing and further information on this portfolio, please contact: Chris Dougray cdougray@lsh.co.uk Bill Binnie bbinnie@lsh.co.uk IMPORTANT NOTICE Lambert Smith Hampton 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, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Lambert Smith Hampton has any authority to make or give any representation or warranty whatever in relation to this property. Date of Preparation of Details: September 2012.

5 South Street Glasgow

6 LOCATION Glasgow is the commercial and industrial capital of Scotland and the third largest city in the UK, with a resident population of 650,000 persons and a regional catchment in excess of 2 million persons. Glasgow has a dynamic and widely based economy, embracing traditional industries such as manufacturing, engineering, shipping and brewing, along with an expanding financial services sector. The city has excellent road communications, linking to Edinburgh by the M8 motorway and Central / Northern Scotland via the M90 / M80. The M73 / M74 motorways provide access to Southern Scotland and England. The units are prominently located fronting South Street in the Whiteinch area of Glasgow and lies approximately three miles from the city centre. The area is an extremely popular trade location, serving the city centre and west end. The property is in close proximity to the A814 Clydeside Expressway and access to this important arterial route is available at the Northwood roundabout. The Expressway provides easy access to and from the city centre and also to the Clyde Tunnel, which connects the North and South sides of the river. A83 Firth of Clyde M90 M80 M9 GLASGOW M8 M77 M74 A76 VICTORIA PARK DRIVE NORTH A72 Firth of Forth EDINBURGH A7 A68 A697 A68 A1 CROW ROAD A814 Victoria Park SCOTSTOUN ST EDZELL STREET DUMBARTON ROAD SOUTH STREET SQUIRE STREET A814 A739 BALSHAGRAY AVENUE A814 Glasgow City Centre DESCRIPTION The premises form a modern terrace of brick built industrial units with a steel portal frame, set beneath a corrugated pitch roof. Access to the individual units is by means of metal roller shutter doors fronting onto a concrete yard. Internally, the units have the benefit of 3 phase electrical supply and fluorescent lighting. The units have a clear head height of approximately 3.5m (11ft 6in). River Clyde Clyde Tunnel CLYDESIDE EXPRESSWAY South Street Glasgow

7 TENANCIES The estate is let in accordance with the tenancy schedule. Leases are generally held on modern repairing and insuring terms. The current rental income on completion of the current lettings will be 67,475 pa after deduction of the ground rent. Rents range from 6.41 to 7.02 per sq ft. EDZELL STREET NORTHINCH STREET SERVICE CHARGE The service charge budget for the year to 2012 is 8,000. All occupational leases make provision for the recovery of service charge. MANAGEMENT FEES All leases allow for the recovery of a management fee through the service charge. Further details are available on request. TENURE The property is held on 3 long ground leases from the City of Glasgow District Council for a period of 125 years from 1 August The current ground rent payable is 9,250 pa and is subject to upward only review every 5 years to the greater of the open market value or 12.5% of rents receivable. SITE The demise of the subject property is shown outlined red on the adjacent Ordinance Survey extract (not to scale). We calculate the site area to be approximately 0.6 acres. CURLE STREET SOUTH STREET JORDANVALE AVENUE JORDAN STREET South Street Glasgow

8 TENANCY SCHEDULE UNIT TENANT LEASE EXPIRY TENANT BREAK OPTION REVIEWS PASSING GROSS INTERNAL AREAS (SQ FT) 1 2 In Solicitor s Hands Trim Workshops Ltd Mr Andrew Thomas (t/a Smart Oils Ltd) 6,950 1,028 09/04/13 09/12/11 6,600 1,029 3 R L Crawford Motor Engineers Ltd 31/08/14 6,600 1,003 4 Brian Elder Motors Ltd 07/06/12 tacit relocation 6,530 1,005 5 Danny McGuire (t/a FGA) 30/04/13 6, Danilo Lucchi UK Ltd 31/05/14 6, Danilo Lucchi UK Ltd 31/05/14 6, Kenneth P Scott 31/05/16 7,850 1,119 9 Margaret Gordon 10/11/15 10/11/13 8,500 1, Turbo Tyres Ltd 05/09/15 06/09/13 6,750 1, Louise Burns 27/05/17 27/05/15 5, Hoarding Peel Advertising 02/12/14 1,687 Long Leasehold from Glasgow Council 28/08/ /08/2010-9,250 TOTAL 67,475 11, South Street Glasgow

9 Albion Trading Estate South Street Glasgow

10 LOCATION Glasgow is the commercial and industrial capital of Scotland and the third largest city in the UK, with a resident population of 650,000 persons and a regional catchment in excess of 2 million persons. Glasgow has a dynamic and widely based economy, embracing traditional industries such as manufacturing, engineering, shipping and brewing, along with an expanding financial service sector. M77 M80 GLASGOW M9 M8 M90 EDINBURGH Firth of Forth A68 A1 The city has excellent road communications, linking to Edinburgh by the M8 motorway and Central / Northern Scotland via the M90 / M80. The M73 / M74 motorways provide access to southern Scotland and England. The units are prominently located fronting South Street in the Whiteinch area of Glasgow and lies approximately three miles from the city centre. The area is an extremely popular trade location, serving the city centre and west end. The property is in close proximity to the A814 Clydeside Expressway and access to this important arterial route is available at the Northwood roundabout. The Expressway provides easy access to and from the city centre and also to the Clyde Tunnel, which connects the North and South sides of the river. A83 Firth of Clyde A76 M74 VICTORIA PARK DRIVE NORTH A72 A7 A697 A68 CROW ROAD A814 Victoria Park SCOTSTOUN ST EDZELL STREET DUMBARTON ROAD SOUTH STREET SQUIRE STREET A814 A739 BALSHAGRAY AVENUE A814 Glasgow City Centre DESCRIPTION The subjects comprise three modern warehouse units fronting a concrete yard of steel portal frame construction with brick dado wall to approximately 2m, incorporating metal profile sheeting above. Flooring throughout is of reinforced concrete and vehicular access to the units is via large roller shutter doors with separate pedestrian access. The units have the benefit of clear internal height of approximately 6m. River Clyde Clyde Tunnel CLYDESIDE EXPRESSW Albion Trading Estate South Street Glasgow

11 TENANCIES The estate is let in accordance with the tenancy schedule. Leases are generally held on modern repairing and insuring terms. FORE STREET PRIMROSE STREET DUMBARTON ROAD The current rent on completion of the current lettings will be 216,061 per annum. This assumes the outstanding rent free periods have been completed. Rents range from 4.97 to 5.04 per sq ft. This income can be increased by the successful letting of unit 4A. SERVICE CHARGE The service charge budget for the year to 2012 is 18,000. All occupational leases make provision for the recovery of service charge. MANAGEMENT FEES All leases allow for the recovery of a management fee through the service charge. Further details are available on request. EDZELL STREET TENURE SOUTH STREET Heritable interest, the Scottish equivalent of English Freehold. SITE The demise of the subject property is shown outlined red on the adjacent Ordinance Survey extract (not to scale). We calculate the site area to be approximately 2.9 acres. Albion Trading Estate South Street Glasgow

12 . TENANCY SCHEDULE ADDRESS TENANT LEASE EXPIRY TENANT BREAK OPTION REVIEWS PASSING GROSS INTERNAL AREAS (SQ FT) 3A/C William Wilson Limited 17/11/14 45,000 9,055 3B West of Scotland Engineering Ltd 15/12/19 16/12/15 26,000 5,163 3D In Solicitor s hands (Richmonds Plumbing and Heating Merchants Ltd) 20,450 3,893 4A Vacant ERV 49,000 9,744 4B Under Offer 61,400 12,200 5 In Solicitor s hands (Glasgow Housing Association) 63,211 14,049 TOTAL 265,061 54,104 Albion Trading Estate South Street Glasgow

13 Forties South Rosyth Europarc

14 LOCATION Rosyth Europarc is strategically located on the northern shore of the Firth of Forth in Fife, Scotland. The Campus is situated only 20 miles by road from Edinburgh city centre and 15 minutes from Edinburgh International Airport. Immediate access is available to the M90 motorway and onward to the Forth Road Bridge and the national motorway network beyond. Work has began on the 1.5bn Forth Replacement Crossing, which is estimated to have generated some 20m worth of work for sub-contractors and suppliers in the immediate area. Similarly, assembly of the Royal Navy new HMS Queen Elizabeth Aircraft Carrier has commenced, capitalising on local infrastructure, marine engineering expertise and naval tradition. In addition, regeneration of the former Royal Naval base is being undertaken by the Scarborough Muir Group, to create a renewable energy park, creating potentially 3,500 jobs in the immediate area and attracting 500m of inward investment. A83 Firth of Clyde GLASGOW M90 M80 M9 M8 M77 M74 A76 Firth of Forth ROSYTH EDINBURGH A68 A72 A7 A697 A68 A1 Rosyth Town Centre WOOD ROAD HILTON ROAD CASTLE ROAD KING JAMES IV ROAD BARHAM ROAD MILLENNIUM AVE BARHAM ROAD FERRY TOLL ROAD A90 / M90 Perth / Edinburgh Orchardhead Wood KEITH ROAD DEW WAY MILNE ROAD DESCRIPTION The estate comprises a terrace of extensively refurbished traditional warehouse units, together with three modern purpose built warehouses with dedicated yard space. Generally the premises are of steel portal frame construction with profile metal sheeting to walls and pitched roof. Access to the units is gained through metal roller shutter doors. Firth of Forth MURRAY ROAD Forties South Rosyth Europarc

15 TENANCIES The estate is let in accordance with the tenancy schedule. Leases are generally held on modern repairing and insuring terms. The current gross rent is 139,919 per annum, with rents ranging from 3.95 to 4.48 per sq ft. This figure will increase significantly on the letting of the vacant units. SERVICE CHARGE The service charge budget for the year to 2012 is 7,700. All occupational leases make provision for the recovery of service charge. MANAGEMENT FEES All leases allow for the recovery of a management fee through the service charge. Further details are available on request. MILLENIUM AVENUE INNOVA WAY BARHAM ROAD KEITH ROAD VIKING WAY TENURE Heritable interest, the Scottish equivalent of English Freehold. DEW WAY SITE The demise of the subject property is shown outlined red on the adjacent Ordinance Survey extract (not to scale). We calculate the site area to be approximately 5 acres. MURRAY ROAD Forties South Rosyth Europarc

16 TENANCY SCHEDULE UNIT TENANT LEASE EXPIRY TENANT BREAK OPTION REVIEWS PASSING GROSS INTERNAL AREAS (SQ FT) 1 HCS Control Systems Limited 10/12/17 11/12/12 33,305 7,500 2 BEP Supplies Ltd 29/03/12 month to month 20,783 4,890 3 Vacant ERV 12,500 3,090 4a Vacant ERV 12,500 2,830 4b Compass Business Installations Ltd 29/05/18 29/05/13 29/05/13 14,195 3,165 4c Kitsons Environmental Ltd 13/10/12 month to month 12,716 2,992 4d Simon Smail (t/a Sitech Racing) 19/06/16 12,500 3,165 4e Autoteknik.com 30/09/18 01/10/13 01/10/15 01/10/13 19,420 4,855 4f ISS Facility Services Ltd 03/08/13 21,500 4, (SITE) Scorpion Site Services (in liquidation) 27/11/16 19/09/09 5, TOTAL 164,919 37,642 Forties South Rosyth Europarc