INVESTMENT FOR SALE ESTABLISHED BUSINESS IN AN AFFLUENT SOUTH MANCHESTER LOCATION
INVESTMENT SUMMARY A high specification, multilet office park totalling 35,204 sq ft, located in the affluent south Manchester town of Cheadle. Strategically located 1.5 miles from the M60 (Manchester Orbital Ring Road), 8 miles south of Manchester City Centre and 6 miles east from Manchester Airport. Fully let to 4 tenants with a total rental income of 473,443 per annum reflecting a low average rent of 13.45 per sq ft. AWULT of 7.4 years (no breaks) with 86% of the income having an overall Dun & Bradstreet Business Risk rating of LowModerate. High car parking provision with limited ongoing capital expenditure required. Opportunity to acquire for a low investment value which is under pinned by a strong vacant possession value. Future potential for the sale of individual units or the opportunity to purchase sold off units back into the ownership. Freehold. Offers are sought in excess of 4,935,000 exclusive of VAT ( 140 per sq ft capital value). Based on purchaser costs of 6.59% this reflects a Net Initial Yield of 9% with a potential reversionary yield of 9.70%.
LOCATION Cheadle forms part of the Greater Manchester conurbation and is located 8 miles south of Manchester City Centre and 3 miles west of Stockport. Cheadle, together with its neighbour Cheadle Hulme, have a resident population in excess of 40,000. J2 CHEADLE MANCHESTER CITY CENTRE CHEADLE HEATH M60 STOCKPORT RD A560 COUNCILLOR LANE BIRD HALL LN DRINKSWAY J1 WOOD ST EDGELEY KING ST WEST EDGELEY RD MERICAN WAY Stockport Station HERCULES STOCKPORT TOWN CENTRE WELLINGTON RD STH BRAMHALL LN Manchester has the second largest urban population and the largest business centre outside London. As such it is recognised as the financial and administrative capital of the North West. It is located approximately 34 miles east of Liverpool, 44 miles west of Leeds, 87 miles north of Birmingham and 207 miles northwest of central London. STOCKPORT RD CHEADLE GOLF COURSE CHEADLE ROAD DEMMINGS RD ADSWOOD RD The City benefits from an excellent transport infrastructure, with the M60 orbital motorway connecting directly with the M56, M67 and M62 motorways. In addition, both the M56 and M62 subsequently link with the M6 motorway. As a consequence, approximately 60% of the UK s population is within a two hour drive time. VIEW AERIAL CHEADLE HULME TRAIN STATION BRAMHALL LN
MANCHESTER CITY CENTRE A6 STOCKPORT TOWN CENTRE J1 M60 A6 HAZEL GROVE J2 STOCKPORT TRAIN STATION CHEADLE STOCKPORT ACADEMY MORRISONS EDGELEY ROAD CHEADLE HEATH POLICE STATION RAILWAY LINE BIZ SPACE HERCULES BIRD HALL LANE A B2 B1 C2 C1 D E F ORION BUSINESS NO. 1 SQUARE SITE ENTRANCE THALES GROUP BACK TO LOCATION CHEADLE HULME
SITUATION Hercules Business Park is situated between Cheadle and Cheadle Hulme and is accessed via Bird Hall Lane. Heading immediately north, via the A560, leads swiftly to Junction 2 of the M60 orbital motorway which in turn provides access to the M56 and the wider national motorway network. The immediate surrounding buildings are characterised by office, industrial and trade counter uses with companies including Thales, Bosch, Landis+Gyr, Biz Space, Emcor, DAI and Panalpina World Transport situated in the vicinity. A Morrisons and Lidl supermarket s are within walking distance whilst Cheadle Heath Police Station is 0.5 miles to the north of Hercules Park. Beyond the immediate commercial surrounds are affluent residential suburbs, including various schools, parks, golf clubs and sports clubs. Nearby leisure and retail amenities includes Cheadle High Street (5 minute drive), Cheadle Hulme Shopping Centre (5 minute drive), Cheadle Royal (Sainsbury s, John Lewis), David Lloyd and De Vere Hotel are all located a 10 minute drive away. SUPPLIED BY MAG
DESCRIPTION A LET LET SOLD Hercules Business Park, served by a private estate road, totals 8 selfcontained detached and semidetached buildings of which 4 have been sold off to owner occupiers. B1 B2 SOLD SOLD C2 There are 4 buildings remaining in the ownership totalling 35,204 sq ft (22,343 sq ft sold off). The site totals approximately 1.84 hectares (4.547 acres). The park also benefits from an outside communal area which provides tenants with a popular amenity space. In terms of the individual demises, the buildings are of a steel portal frame construction, brick elevations under a composite roof. The buildings are arranged over ground and 1st floors and due to the communal entrances can be subdivided to provide separate selfcontained accommodation within each property. A B1 B2 C1 C2 D E F LET TO WOODCROFT VETERINARY GROUP LET TO THERMOTECH SOLUTIONS LTD SOLD TO SANTIAGO HOLDINGS, T/A CARE IN MIND SOLD TO BALLYCLARE LIMITED SOLD TO BALLYCLARE LIMITED SOLD TO LINDNER REAL ESTATE LIMITED LET TO DSG FINANCIAL SERVICES LIMITED LET TO WNS GLOBAL SERVICES (UK) LTD E LET F LET C1 SOLD D BUILDING SPECIFICATION Grade A specification Raised access floors Air conditioning system Suspended ceilings and recessed lighting Double glazed aluminium windows Open plan offices Fitted kitchenette Eight person (630 kg capacity) passenger lift DDA compliant Secure on site car parking at an excellent ratio of 1:250 sq ft Each building has their own designated car parking
TENANCY & RENTAL INCOME Hercules Business Park currently benefits from a total rental income of 473,443 per annum and an Average Weighted Unexpired Lease Term of 7.4 years (no breaks). The service charge is currently running at 0.55 per sq ft per annum. TENANT DEMISE TYPE AREA (SQ FT) RENT PA ( ) RENT SQ FT ( ) ERV ( ) ERV SQ FT ( ) LEASE START NEXT REVIEW EXPIRY Woodcroft Veterinary Group Unit A Lease 10,725 144,788 13.50 152,831.25 14.25 28/06/2018 28/06/2023 27/06/2033 Use of 43 car parking spaces. Rent free period to be topped up by the vendor. Change of use from offices (B1) to veterinary hospital practice (D1). Thermotech Solutions Ltd Unit B1 Lease 5,331 66,638 12.50 75,966.75 14.25 02/11/2017 01/11/2022 Unit subject to option to purchase up to 3rd year of the term at 640,000 + VAT with annual RPI compounded increases. 640,000 is a NIY of 9.9%, 120 per sq ft capital value. Care in Mind Unit B2 Sold Off (Freehold) Ballyclare Limited Units C1 and C2 Sold Off (Freehold) Lindner Real Estate Limited Unit D Sold Off (Freehold) DSG Financial Services Limited Unit E Lease 8,340 108,003 12.95 118,845.00 14.25 13/07/2015 13/7/2020 12/07/2025 DSG to be entitled to an additional 8 months rent at the commencement of the 6th year Landlord to topup. Rent review to RPI (compounded annually), collared and capped at 2 and 5% respectively. WNS Global Services (UK) Ltd Unit F Lease 10,808 154,014 14.25 154,014.00 14.25 22/07/2010 21/07/2020 TOTAL 35,204 473,442 13.45 501,657.00 22,343 sq ft sold off freehold.
COVENANTS & INCOME ANALYSIS WOODCROFT VETERINARY GROUP (07013686) D&B Overall Business Risk: LowModerate THERMOTECH SOLUTIONS LTD (08596374) D&B Overall Business Risk: ModerateHigh Woodcroft Veterinary Group are part of Vet Partners Limited who have over 1,500 employees within the group working in over 150 sites across the UK. Vet Partners provide centralised support tailored to individual practice requirements in areas from HR to finance, IT and marketing. Woodcroft Veterinary Group operate a caring and high standard professional service from 7 accredited veterinary practices. Their new unit at Hercules is due to be fitted out to an A+E standard veterinary practice with an element of emergency surgery, serving the current smaller practices within the Woodcroft umbrella. The fit out will include an MRI scanner, extensive Xray area and technical emergency surgery theatres together with front of house facing reception and recovery zones for the animals. Further information www.woodcroftvets.com Thermotech design, install and maintain air conditioning, HVAC systems, fire protection systems and fire sprinkler systems. Client s stretch across a variety of industries, including Boots, Waitrose, Sony, Adidas and Savills. Further information www.thermotechsolutions.co.uk Thermotech Turnover Pretax Profit Net Worth Net Assets 31/03/2017 11,461,866 710,470 ( 1,548,995) 2,019,762 31/03/2016 6,425,158 ( 98,117) ( 247,198) 597,000 31/03/2015 ( 486,656) 758,169 Woodcroft Turnover Pretax Profit Net Worth Net Assets 30/06/2017 ( 242,901) 1,082,661 31/05/2016 6,119,251 786,732 ( 336,505) 1,092,245 DSG FINANCIAL SERVICES LIMITED (02313903) D&B Credit Score (2A2 Lower Than Average Risk of Business Failure) D&B Overall Business Risk: LowModerate Operating across 3 primary locations with the head office located at Hercules, DSG Financial Services is an independent motor finance provider, working with the UK's major motor dealer groups for more than 25 years. Clients include Ford, Renault and Lookers. Further information www.dsgfs.com 31/05/2015 5,721,728 889,263 ( 143,846) 1,380,154 WNS GLOBAL SERVICES (UK) LTD (02292251) D&B Credit Score (5A1 Minimum Risk of Business Failure) D&B Overall Business Risk: LowModerate WNS is a global Business Process Management leader who offer services around the world to key industries including banking and financial services, healthcare, insurance, manufacturing, media and entertainment, consulting and professional services, retail and consumer packaged goods, telecom, shipping and logistics, travel and leisure, and utilities. WNS delivers an entire spectrum of BPM services in customer interaction services, finance and accounting, human resource, research and analytics, technology solutions and industryspecific processes. Globally WNS employee more than 35,000 employees across 53 delivery centres located in China, Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, UK and US. Further information www.wns.com DSG Turnover Pretax Profit Net Worth Net Assets 31/03/2017 10,064,029 1,063,454 2,131,015 2,381,144 31/03/2016 1,328,252 1,328,252 31/03/2015 1,132,987 1,132,987 WNS Turnover Pretax Profit Net Worth Net Assets 31/03/2017 36,474,000 26,997,000 44,118,000 44,126,000 31/03/2016 47,375,000 3,642,000 14,786,000 17,138,000 31/03/2015 52,181,000 8,073,000 25,958,000 28,170,000
SOUTH MANCHESTER OFFICE MARKET Over the course of the past 24 months the out of town office market has seen a marked enhancement with tenant and investor appetite continuing to improve. As the economy has recovered, vacancy rates in the sub market have slowly decreased, assisted further by the rapidly increasing rents in Manchester City Centre, together with the complete lack of speculative development within the south Manchester office sector. Permitted development and change of use strategies have further eroded the available supply. As it stands, capital values for out of town offices are still often below the cost of construction and this is before a developer has been able to source adequate land with relevant permissions and in situ infrastructure. In terms of rental values, across the majority of schemes in the south Manchester market, the amount of rent free incentives offered has reduced significantly whilst the lack of options for occupiers have put an upward pressure on rents. The following comparable schemes provide an indication of the positive sentiment within the market and suggest strong reversionary and rental growth potential at Hercules (average rent of 13.45 per sq ft). ASSET MANAGEMENT POTENTIAL In addition to improving upon the undoubted low passing rental tone of the estate and regearing the WNS Global Services Ltd demise, the amenity space at the front of the estate offers possible future development potential. Totaling 0.45 acres, the area is designated as a Bowling Green and was part of the planning obligation when the Business Park was granted planning and subsequently developed. Subject to the necessary negotiations with the local planning authorities, due to the proximity to Bird Hall Lane, there is the potential to develop on part of the site for a range of uses including, convenience retail, nursery or additional business space purposes. DATE BUILDING TENANT AREA (SQ FT) RENT (PER SQ FT) March17 Altitude Business Park, Wythenshawe Bowmer and Kirkland 5,562 17.28 April17 Jackson House, Sale Sesame Services Ltd 14,430 14.50 May17 Hamilton House, Altrincham Hitachi Data Systems 2,589 16.04 May17 Station House, Altrincham Matillion 5,506 16.50 May17 Kingsley Hall, Wythenshawe Dnata 2,620 14.50 August17 Manchester Green, Styal Greenmotion Car Rental 4,404 17.50 August17 Kings Court, Wilmslow ICO 7,125 19.50 Sep17 One Didsbury Point, Didsbury Carrier Travel 8,255 18.00 Sep17 Manchester Green, Styal Assetz Capital 14,687 17.50 Sep17 4M, Manchester Airport CAF Rail 4,375 22.00 Oct17 Altitude Business Park, Wythenshawe EMCOR Group 5,317 17.50 Nov17 St John s House, Altrincham Daly International (UK) Ltd 3,436 19.40 Dec17 MIOC, Styal XRite 3,164 17.50 Feb18 Sale Point, Sale Taylor Edwards Financial Mgt 4,644 14.50 March18 Charter House, Altrincham Detail 2 Recruitment 2,324 14.95 March18 Chadsworth House, Handforth OTH 2,706 15.00 March18 4 Station Road, Cheadle Hulme Broadcom 1,848 14.95
FURTHER INFORMATION TENURE The freehold interest of Hercules Park, including the remaining 4 units are offered for sale. VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale can be treated as a Transfer of Going Concern (TOGC). EPC Available upon request. PRICE Offers are sought in excess of 4,935,000 exclusive of VAT. Based on purchaser costs of 6.59% this reflects a Net Initial Yield of 9% with a potential reversionary yield of 9.70%. CONTACT For more information please contact King Street Commercial: MATTHEW COX 0161 850 0498 matt@kingstreetcommercial.com TED MURRAY 0161 850 0497 ted@kingstreetcommercial.com IMPORTANT NOTICE. King Street Commercial gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. Published July 2018. 0161 387 7252