Freehold Industrial Investment Opportunity Holmethorpe Industrial Estate 37-41 Holmethorpe Avenue, Redhill RH1 2NB
Investment Summary Located on the well-established Holmethorpe Industrial Estate in Redhill Surrey Secure level site of approximately 2.05 acres Comprising five industrial units renovated in 2015, totalling 47,076 sq ft Passing rent 245,633 per annum exclusive, equating to a low average of 4.50 per sq ft with a reversionary rent of 398,070 per annum Offers in excess of 4.5 Million reflecting a low capital value figure of 82.31 per sq ft 41 Holmethorpe Avenue A purchase at this level would reflect a net initial yield of 5.11%, assuming purchaser's costs of 6.75% with a reversionary yield of 8.85% Freehold Good proximity to Central London with excellent road and rail links Good asset management potential with reversionary rents Unit 1-2, 37 Holmethorpe Avenue
Description The industrial units are of steel portal frame construction with pitched roofs and underwent a comprehensive renovation in 2015, with a specification to include the following: New roofs and roof lights New double glazed fenestration External cladding New roller shutter doors Site perimeter palisade fencing Security gates Resurfaced yards and roadways Units 1-4 Minimum eaves height 3.78 m Roller shutter door height 3.20 m 41 Holmethorpe Ave - Internal 39 Holmethorpe Avenue Maximum eaves height 7.57 m Minimum eaves height 3.40 m Roller shutter door height 4.48 m 41 Holmethorpe Avenue Minimum eaves height 4.92 m Roller shutter door height 4.23 m 39 Holmethorpe Ave - Internal 41 Holmethorpe Ave - Internal Location The Investment is situated on the southern side of the established Holmethorpe Industrial Estate, which is strategically located for access to the M25 via Junction 6 (Godstone) and Junction 8 (Reigate). Nearby occupiers include Benchmarx, Tool Station, Howdens, Halfords Autocentre, Yesss Electrical, Screwfix, City Plumbing Supplies, Topps Tiles and Bosch.
Accommodation Schedule Ground Floor First Floor Yard Total GIA Unit 1-2, 37 Holmethorpe Avenue 9,255 sq ft 9,255 sq ft Tenant: Peter Hird & Sons Limited Unit 3, 37 Holmethorpe Avenue 3,705 sq ft 3,705 sq ft Unit 4, 37 Holmethorpe Avenue 3,705 sq ft 3,705 sq ft 39 Holmethorpe Avenue Tenant: Harwoods 41 Holmethorpe Avenue Tenant: Ultrasun (UK) Limited 9,708 sq ft 9,708 sq ft 10,925 sq ft 9,780 sq ft 15,000 sq ft 20,705 sq ft Tenancy Schedule Name Unit 1-2 Peter Hird & Sons Ltd Unit 3 Wild Horse Holdings Ltd Unit 4 Simon Mark Elliott Company Size (sq Lease Break Rent Lease % Rent (incl Rent ERV GIA ERV Comment No ft) Start Date Review Expiry Income top ups) (psf) (pa) (psf) (pa) 01678881 9,255 13/01/2017 13/01/2021 13/01/2022 12/01/2025 85,633 9.25 97,177.50 10.50 Outside L&T Act 10249797 3,705 17/11/2016 16/11/3014 Peppercorn Sold off on 998 year long Lease N/A 3,705 29/11/2016 29/11/3015 Peppercorn Sold off on 999 year long Lease 39 Harwoods 9,708 20/01/2016 N/A N/A 27/01/2018 60,000 6.18 90,000.00* 9.27 Outside L&T Act 41 Ultrasun 03306889 20,705 17/02/2016 N/A 17/02/2021 17/02/2026 100,000 4.80 210,892.50 10.50 Inside L&T (UK) Ltd (GF) Act Lease 6.00 (uppers) 2.50 (yard) subject to a Schedule of Condition Total rental income: 245,633 per annum ERV: 398,070 per annum * currently being marketed via Centro Commercial, SHW and Altus
Covenant Information Peter Hird & Sons Limited are currently the leading specialists within the access platform and lifting industry, with over 30 years of extensive experience, ranging from crane and access hire/sales to training of personnel www.hird.co.uk. In 2016 Peter Hird & Sons recorded a turnover of 9,550,038 and a net profit of 188,945. Formed in 1992, Ultrasun (UK) Limited is one of the leading manufacturers and retailers of sun protection products. Ultrasun produce products which are sold through John Lewis, QVC, Boots and other major retailers www.ultrasun.com/en-gb. In 2016 Ultrasun recorded a turnover of 6,312,869 and a net profit of 503,851.
Asset Management This investment opportunity offers a range of asset management strategies available to the purchaser, to include significant rental uplift proven by the nearby market lettings. Market transactions give evidence to anticipate the ERV to 398,070 per annum. Longer term opportunities include redeveloping the site, subject to planning. VAT The property has been elected for VAT. EPCs Copies of the EPCs are available and can be provided on request. Legal Costs Both parties will be responsible for their own legal costs in this transaction. Tenure The properties are available for sale Freehold, subject to the existing Leases and the associated income. Proposal We are instructed to seek offers in excess of 4.5 Million, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 5.11%, and a Capital Value of 82.31 per sq ft (including the yard to 41 Holmethorpe Avenue)*, assuming usual purchaser s costs of 6.75%. Based on our Estimated Rental Value the asking terms reflect a reversionary yield of 8.84%. For further information, please contact: Paul Harwood paulharwood@centro.plc.uk Morgan Pérez morganperez@centro.plc.uk 020 8401 1000 020 8401 1000 * For full breakdown please see Tenancy Schedule