stop ground-lease-investment-opportunity-bolton - Singer Vielle Sales

Industrial Estate Ground Lease Investment Opportunity

Tonge Bridge Industrial Estate | Tonge Bridge Way | Bolton | BL2 6BD

£1,900,000

subject to contract

SOLD

Summary

  • Multi-Let Ground Lease Investment Opportunity

  • Highly secure investment. Rent payable based upon the rental value of the land.

  • Average Weighted Unexpired Lease Term – 67 years

  • Established commercial location

  • VAT free

  • Offers in the region of £1,900,000, subject to contract

  • 5.0% net initial yield

Location

Bolton is within Greater Manchester and is located approximately 19 km (12 miles) north-west of Manchester, 56 km (35 miles) north-east of Liverpool and 72 km (45 miles) south-west of Leeds.

The town benefits from good road communications with Junctions 3,4 & 5 of the M61 Motorway all approximately 4.8 km (3 miles) to the south. The M62 Motorway is approximately 16 km (10 miles) to the south-east and the M6 Motorway is located 21 km (13 miles) to the west. In addition, the town is connected to the national rail network with a fastest journey time to London Euston of 2 hours 30 minutes. Regular rail services to Manchester Piccadilly take a mere 20 minutes. Manchester International Airport is approximately 32 km (20 miles) south of Bolton and handles around 19 million passengers a year, flying to around 200 destinations.

Situation

The subject property is situated in an established commercial location on the Tonge Bridge Industrial Estate, approximately 3.2 km (2 miles) to the north-east of Bolton town centre.

Access to the property is via Tonge Bridge Way which leads directly onto the A579 (Bury Road). The A666 is less than a mile to the west and provides direct access to the M61 Motorway.

Tonge Bridge Industrial Estate provides a variety of workshop and industrial units.

Description

The property comprises numerous plots of land, let on 26 ground leases, which form the majority of the Tonge Bridge Industrial Estate, plus a further plot of land on the south side of Tonge Bridge Way. There are various industrial units on each plot.

Rateable Value

According to the Valuation Office website (www.voa.gov.uk) the rateable values for the plots appear to be as follows (note that in some instances it has been difficult to definitively attach rateable values listed online against the ground lease plots. Purchasers are recommended to make their own enquiries):

Address Description Total Area (Sq M) Rateable Value
Unit 4, Tonge Bridge Way Workshop & Premises 550.5 £25,000
8, Tonge Bridge Way Cold Store 148.8 £10,250
10, Tonge Bridge Way Workshop & Premises 132.1 £7,500
12, Tonge Bridge Way Workshop & Premises 51.7 £3,350
14, Tonge Bridge Way Workshop & Premises 193 £10,750
16, Tonge Bridge Way Workshop & Premises 250.9 £12.250
18, Tonge Bridge Way Workshop & Premises 38.4 £3,350
19, Tonge Bridge Way Workshop & Premises 163.8 £10,500
20, Tonge Bridge Way Workshop & Premises 231.8 £13,000
21, Tonge Bridge Way Workshop & Premises 103.5 £6,800
23, Tonge Bridge Way Land used for storage 1,556 £5,300
25, Tonge Bridge Way Workshop & Premises 75.7 £4,900
27, Tonge Bridge Way Workshop & Premises 75.7 £4,900
29, Tonge Bridge Way Workshop & Premises 74.5 £5,200
31-33, Tonge Bridge Way Workshop & Premises 89.6 £6,300
35, Tonge Bridge Way Workshop & Premises 75.4 £4,850
37, Tonge Bridge Way Workshop & Premises 75.4 £4,850
39, Tonge Bridge Way Workshop & Premises 45.2 £3,000
41, Tonge Bridge Way Workshop & Premises 44.87 £2.900
43, Tonge Bridge Way Workshop & Premises 45.2 £2,900
45, Tonge Bridge Way Workshop & Premises 223.2 £11.250
47, Tonge Bridge Way Land used for storage 1,161.4 £4,900
49, Tonge Bridge Way Offices & Premises 399.8 £30,000
51, Tonge Bridge Way Workshop & Premises 946 £31,000
53/55, Tonge Bridge Way Workshop & Premises 987.9 £41,750
57/61, Tonge Bridge Way Vehicle repair workshop 1,086.4 £45,500
63, Tonge Bridge Way Workshop & Premises 81.5 £9,200
65,67 & 69, Tonge Bridge Way Warehouse & Premises 355.7 £16,750


The 2017/18 Uniform Business Rate is 47.9 pence per pound for rateable values of £51,000 and above, and 46.6 pence per pound for rateable values below £51,000.

Site

We estimate the site area to be approximately 2.16 hectares (5.34 acres).

Tenure

The property is held on a part Freehold and part Long Leasehold basis.

Tenancy

The property is multi-let on 26 ground leases, plus an electricity sub-station lease, in accordance with the attached Tenancy Schedule. The total current passing rent is £100,997.04 per annum. The Average Weighted Unexpired Lease Term is 67 years.

Rent is payable based upon the rental value of the land, excluding the buildings.

Data Room

Please note that the legal package available is the one provided in the data room. This is available for purchasers to review. Questions may be raised with the seller’s solicitor but no further documentation is available.

Please note that the title documents relating to the long leasehold interests included in the sales pack are the only title documents relating to such interests held by the seller and offers are invited on the strict basis that prospective buyers are aware of and accept that the seller has no further title documents to disclose.

Covenants

Please refer to the Tenancy Schedule for further information. The company accounts for each tenant are also available to download, where available.

VAT

The property has not been opted to tax. Therefore, VAT will not be payable by a purchaser.

Proposal

We are instructed to seek offers in the region of £1,900,000 (One Million, Nine Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 5.0%, assuming purchaser’s costs of 5.95%.

Investment Considerations

  1. A multi-let ground lease investment opportunity offering a highly secure investment given the rent payable is based upon the rental value of the land;

  2. Average weighted unexpired lease term of 67 years;

  3. Established commercial location;

  4. VAT free investment.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Joelson +44 (0) 207 580 5721
Michael Friend michael.f@joelsonlaw.com
Andrew Clissold andrew.c@joelsonlaw.com
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