GUARANTEED REVERSION TO 8.13% IN 2020 LOW CAPTIAL VALUE OF 36.70 PSF
* 3.5 MILES *Palmer Capital and SEDCO Capital recently purchased the Eddie Stobart distribution hub for 31.75m reflecting a net initial yield of 5%.
INVESTMENT SUMMARY Sherburn in Elmet is strategically located close to Junction 42 of the offering excellent access to the national motorway network Moor Lane Trading Estate is a traditional industrial estate to the east of Leeds and it is one of Yorkshire s most prominent distribution parks with notable occupiers including Sainsbury s, Eddie Stobart, Debenhams and Legal & General (Modular Homes) Detached distribution hub extending to a gross internal area of 253,352 sq ft (23,537.1 sq m) The site comprises 12.15 acres (4.91 hectares) Let entirely to Esterform Packaging Limited for a further 12 years Current rent passing of 695,000 per annum ( 2.74 psf) Fixed Rental Uplifts every five years with rent rising to 805,695 per annum in 2020 and 934,021 per annum in 2025 Freehold Offers sought in excess of 9,300,000 (Nine Million Three Hundred Thousand Pounds) reflecting an attractive net initial yield of 7.00% and the following running yield profile assuming purchaser s costs at 6.69%: 2020-8.13% 2025-9.43% A purchase at this level reflects a low capital value of 36.70 psf.
TADCASTER NELSON M65 BURNLEY ACCRINGTON BLACKBURN BINGLEY BRADFORD M606 HALIFAX 1 LEEDS SHERBURN IN ELMET CASTLEFORD DARWEN WAKEFIELD BOLTON M61 M66 HUDDERSFIELD ROCHDALE OLDHAM M60 MANCHESTER ASHTON-UNDER-LYNE M60 M67 GLOSSOP SALE STOCKPORT P BARNSLEY DONCASTER 8 LOCATION Leeds is Yorkshire s principal financial centre benefiting from a catchment population of approximately 1.3 million people. Leeds is well located at the centre of the northern motorway network sitting immediately to the north of the intersection of the (J42) and (J27 and J29) Motorways, being linked via the 1. It is located approximately 35 miles (56 km) north of Sheffield, 44 miles (71 km) north east of Manchester and 194 miles (312 km) north of London. The East Coast Mainline offers regular connections from Leeds to London Kings Cross in approximately 2 hours 12 minutes. A69 NEWCASTLE B1222 MOORE LANE Sherburn-in-Elmet B1222 BISHOPDYKE ROAD A66 A1 (M) A19 SHERBURN-IN-ELMET DRIVE TIME * M6 MANCHESTER LEEDS YORK A1 (M) LIVERPOOL SHEFFIELD HULL B1222 A162 SHERBURN INDUSTRIAL AREA SHERBURN AERO CLUB LEEDS 18 MILES 30 MINS SHEFFIELD 42 MILES 55 MINS M6 A1 South Milford HULL 53 MILES 60 MINS LEICESTER MILFORD MANCHESTER 61 MILES 84 MINS CARDIFF BIRMINGHAM COVENTRY M50 NORTHAMPTON BRISTOL LONDON M4 M5 M3 M25 M23 SOUTHAMPTON A6 A1 (M) M40 M25 1 A14 A12 M2 M20 FOLKSTONE DOVER ROAD NEW GREAT NORTH ROAD J42 A63 MAIN STREET A162 A63 MAIN ROAD NEWCASTLE 99 MILES 1 HR 48 MINS LIVERPOOL 91 MILES 1 HR 53 MINS LONDON 193 MILES 3 HR 45 MINS DOVER 260 MILES 4 HR 32 MINS *Approximate drive times
SITUATION The property is situated off Moxon Way on Moor Lane Trading Estate. The property is adjacent to Sherburn Distribution Park which is a key distribution hub for companies including Sainsbury s, Debenhams, DHL, Eddie Stobart and Kingspan. The next phase at Sherburn has commenced being developed by Glen Grool. This will form a 7 acre logistic and manufacturing park with outline planning permission for 1.25m square foot. The estate is one mile outside of Sherburn in Elmet and convenient for a workforce travelling by car or rail. The site is located in an excellent location benefiting from congestion-free access to the national motorway network via junction 42 of the, which is only 3.5 miles (5.6 km) away via the A63 and A162. DESCRIPTION The property comprises a single storey warehouse/ industrial facility together with two storey office accommodation constructed in phases. The building is of steel portal frame construction with brickwork and profile metal sheet elevations. The roof is formed of a mixture of steel and asbestos cladding with integrated roof lights. The industrial element has a height of 5.5 7.5 metres to the underside of the haunch. The warehouse is heated, sprinklered and lit with energy efficient T5 lighting. Loading is via 18 ground level roller shutter doors. The office accommodation is carpeted, heated, and benefits in parts from air conditioning. A canteen and staff facilities are also provided. Externally there is a large concrete service yard surrounding the property which provides 360 degree access around the building. The entire site is fenced and benefits from a security gatehouse barrier at the entrance. The property sits on a site extending to 12.15 acres (4.91 hectares) providing a site cover of 48%. CONNECTION CAR: 5 minutes from Junction 42 of the RAIL: 5 minutes from East Coast Mainline freight access at Yorkshire Rail Hub PORTS: Ports of Hull, Grimsby and Immingham are within 1 hour HGV drive time PLANE: 45 minutes from Leeds Bradford Airport and Doncaster Sheffield Airport
ACCOMMODATION We have been provided with the following areas by the vendor and understand them to be as follows: Accommodation Sq M Sq Ft Warehouse 21,516.6 231,603 Offices 1,513.6 16,292 External Workshop 506.9 5,457 Total 23,537.1 253,352 TENANCY The property is let to Esterform Packaging Ltd on a full repairing and insuring lease for a term of 15 years from 28th August 2015 providing an unexpired lease term of approximatively 12 years term certain. The current rent passing is 695,000 pa, which equates to 2.74 psf. The rent increases every fifth anniversary reflecting 3% pa compounded. The next rent review is in August 2020 where the rent is set to increase to 805,695 pa. There is a further rent review in August 2025 where the rent is set to increase to 934,021 pa. There is a schedule of condition attached to the lease. TENURE Freehold. COVENANT Esterform Packaging Limited Company Registration Number 03627281 Esterform Packaging Limited was established in 1999 and its principal business is the manufacture and distribution of plastic containers and PET preforms. Esterform customers include a wide range of household names in the beverage, food and household markets including Britvic, Highland Spring and Innocent in addition to a number of smaller brands and trade fillers. In February 2015 the company acquired Constar UK, who formerly occupied the subject property. This acquisition together with that of Able Industries Ltd in 2001 and Pet Plas Packaging Ltd in 2005, means Esterform has grown to become the UK s largest independent converter of PET with a wide range of customers in different sectors. The acquisition of Constar UK together with a recent investment of 8 million by Esterform into state of the art manufacturing technology will take the group s overall capability from 1.5 billion PET preforms and containers to in excess of 3 billion units. The subject property is used for warehousing and distribution. Esterform Packaging Ltd reported the following results over the last three years: 30/09/2017 30/09/2016 30/09/2015 Turnover 76,591,000 61,986,000 72,647,000 Pre-Tax Profit - 111,000 191,000 5,853,000 Total Net Worth 7,665,000 8,127,000 7,454,00
VAT The property is elected for VAT and it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). DATAROOM EPC The property has been rated grade C(72). The EPC is available in the dataroom. For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/sherburn PROPOSAL Offers sought in excess of 9,300,000 (Nine Million Three Hundred Thousand Pounds) reflecting an attractive net initial yield of 7.00% and the following running yield profile assuming purchaser s costs at 6.69%: 2020-8.13% 2025-9.43% A purchase at this level reflects a low capital value of 36.70 psf. For further information or to make arrangements for viewing please contact: Alex Butler 020 7543 6722 alex.butler@allsop.co.uk Jonathan Butcher 020 7543 6755 jonathan.butcher@allsop.co.uk Ronnie Morgan 020 7543 6808 ronnie.morgan@allsop.co.uk Chris Riley 0113 244 2001 chris@rypartnership.co.uk Miles Youdan 0113 244 2001 miles@rypartnership.co.uk allsop.co.uk www.rypartnership.co.uk Misrepresentation Act: 1. Allsop LLP and RY Partnership on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and RY Partnership is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or RY Partnership nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: Command D - www.commandhq.co.uk 10.18