High Yielding Distribution / Warehouse Investment Opportunity. Lester Road Little Hulton Manchester M38 0PT

Transcription

1 High Yielding Distribution / Warehouse Investment Opportunity Lester Road Little Hulton Manchester M8 0PT

2 Executive Summary The property lies at the heart of the regions motorway network with 20 million consumers and 0% of UK business within a two hour drive of the location Junction of the M motorway is within mile of the property. Freehold property of approximately 0,2 sq ft. The property is let to Littlewoods Retail Limited (Dun & Bradstreet 5A2), a wholly owned subsidiary of Shop Direct whose HQ is based in Liverpool on a recently renewed 5 year lease expiry November 208 at an annual rent of 750,000 per annum. The property is an integral part of the company s distribution network. The company operates four distribution centres, with the national distribution centre based at Shaw, Oldham with other facilities at Chadderton (returns) and Wrexham (third party site) together with the subject property. Littlewoods have occupied the unit since 998. The rent was reduced from,050,000 at the recent lease renewal. Offers in excess of 7,0,000 (Seven Million, Six Hundred and Sixty Thousand Pounds) which offers an attractive net initial yield of 9.25% net of purchaser s cost at 5.8%. The purchase price reflects a low capital value of 2.20 per sq ft. We believe the property is reversionary and therefore offers a purchaser excellent opportunity for future rental growth performance.

3 B Preston A M5 Blackburn A5 9 J M 5 A580 t Helens 7 2 Widnes A557 A M M M Wigan A Warrington A5 M A50 M A580 Bolton Littlewoods A58 M M2 8 M A5 M A Manchester M02 M5 5 A58 Manchester Airport A A Oldham 27 A52 M2 Littlewoods Manchester Road West Lester Road M2 Miles 2 9 A5 M5 A55 A57 A59 Northwich A57 A57 Macclesfield A5 A55 8 A5 A ARTIST S IMPRESSION Location B99 PLODDER L ANE H I GHFIELD ROAD B99 PLO D DER LANE The property is located in Little Hulton within the district of Salford at the heart of the Greater Manchester region approximately 9 miles north west of Manchester,.5 miles south of Bolton and 7 miles north west of Salford. The town has the M running to the east with junction and of the motorway belt being within a 0 minute drive. Salford has an immediate population of 20,000 persons with a catchment of over 2.5million within a 0 mile drive. MANCHESTER ROAD Littlewoods L E STER RD M Little Hulton MANCHESTER ROAD A5082 CLEGG S LANE A575 WORSLEY ROAD

4 Situation The site lies at the heart of the region s motorway network with 20 million consumers and 0% of UK business within a two hour drive. The property is situated on Lester Road which is accessed off the Manchester Road West. The connects with junction of the M motorway mile north. The M2 via the M is miles south, providing easy access to key ports in Liverpool and Hull. The M (junction 2a) is within a 20 minute drive providing access to Scotland and the Midlands. Adjacent to the property is Logistics North, a development by Harworth Estates which is a new 250 acre logistics park where Aldi have chosen it to accommodate their new 50,000 sq ft facility. Development of this site is due to commence during 20 eventually providing in excess of,000,000 sq ft of industrial accommodation. ARTIST S IMPRESSION Adjacent Logistics North Development Estimated Drive Times Cities Miles Time Ports M0, Mcr Orbital mins Liverpool 5 mins Mcr City Centre 9 2 mins Hull 02 hr mins Warrington 20 2 mins Immingham hr 5 mins Liverpool 2 5 mins Southampton 2 hrs 9 mins Leeds 8 mins Felixstowe 25 hr mins Birmingham 95 hr 2 mins London, M hr 5mins

5 Description The property offers a substantial selfcontained distribution facility developed in the late 970s and extended in the 980s. In summary the specification includes: Steel portal frame construction with eaves height ranging between 8.m to 8.8m External metal and brick clad elevations beneath a full insulated pitch roof 8 dock level and level access loading doors with canopies over loading areas Heating (gas blowers) and sodium lighting and sprinklers (warehouse 2 only) Integral offices to both Warehouse and Warehouse 2 Security gatehouse with barrier entry system Fully enclosed site with perimeter fencing Extensive yard areas allowing parking for over 0 HGV s and staff car parking for over 50 vehicles with substantial landscaped areas. Separate vehicle / garage / workshop facility

6 Path (um) 95.m El Sub Sta Issues Shaft (disused) 7 57 CARRFIELD AVENUE a 2 a 9 El Sub Sta 7 2 7a CLOUDS Site Area The site extends to a total area of approximately acres (8.279 ha) reflecting a site coverage of 27%. 99.7m WHARTON L Scrap Yard Towngate Business Centre Depot Track Graveyard 92.0m Track Depot Carrfield Close 85.2m Tank CARRFIELD GROVE Path (um) 0m 50m 00m 50m 5a Crown Copyright 20. All rights reserved. Licence number Plotted Scale - :258

7 Accommodation The measurements below which are calculated on a gross internal basis have been agreed between landlord and tenant at the recent lease renewal. The property provides a total approximate area of 0,2 sq ft (0,79.7 sq m) split as set out below. Warehouse Area Sq Ft Sq m Warehouse 2,,88.20 Mezzanine 8, Offices 2, TOTAL,77 2,52 Warehouse 2 Area Sq Ft Sq m Warehouse 9,0 8,92.0 Ancillary Offices/Store 7,2,0.0 Mezzanine Storage,90,85.70 First Floor Offices 2,829 2,07.50 Offices/Conference 25,0 2,29.0 TOTAL 78,05,57.50 Ancillary Accommodation Area Sq Ft Sq m Vehicle Depot, Pump House Stores, Security Hut Boiler Room 8, TOTAL 7,,09.2 Market Commentary In the North West the distribution market remains buoyant and there continues to be healthy levels of take up in both prime and secondary markets. Prime rents for distribution are c per sq ft and we believe these rents will be quoted on the adjoining development site. Comparable properties at Warrington, Trafford Park, Winsford, Ellesmere Port and Crewe are obtaining rents in the order of per sq ft. A schedule of evidence can be provided to interested parties. TOTAL 0,2 0,79.7

8 Tenure The property is freehold. Tenancy The property is let to Littlewoods Retail Limited for a term of five years from 7 November 20 on full repairing insuring terms at a current rent of 750,000 per annum ( 2.27 per sq ft). Tenant Covenant Littlewoods Retail Limited was established in 9 being a household name in consumer retailing both on the high street, catalogues and more recently with their online offering. For the year ending 0 June 20 the company reported a tangible net worth of 25,000,000 and a D&B rating of 5A2. The ultimate holding company is Shop Direct who are a leading multi brand digital retailer with annual sales of.7bn. Their digital department stores include VERY.co.uk, Littlewoods. com, ISME.com, Woolworths.com, Kandco.com, which receive an average of 800,000 website visits every day. The Group supply over 800 famous brands distributing from their fulfilment centres over 25 million parcels each year to their customers. Further information on the tenant can be found at www. shopdirect.com. In addition there is a copy of the D&B report on the website

9 VAT Election to waive exemption for VAT has been made and therefore VAT will be charged on the purchase price. It is anticipated the sale will be treated as a transfer of a going concern. Proposal EPC Copy of EPCs for the property can be provided to interested parties or downloaded from our website We are seeking offers in excess of 7,0,000 (Seven Million, Six Hundred and Sixty Thousand Pounds) which offers a purchaser an attractive net initial yield of 9.25% net of purchaser s costs at 5.8%. We believe the opportunity offers excellent prospects for future rental growth with the building being let off an extremely low basis. In addition the rate reflects a low capital value of 2.20 per sq ft. Further information Should you wish to inspect the property or require additional information, please contact: David Winterbottom Direct Dial: david.winterbottom@gva.co.uk Gurminder Manak Direct Dial: gurminder.manak@gva.co.uk For any other investment sales please visit: gva.co.uk SUBJECT TO CONTRACT April 20

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