stop Multi-Let Industrial / Trade Counter Investment - Singer Vielle Sales

Multi-Let Industrial / Trade Counter Investment

Units 1a-1c & Unit 2 Mansard Close | Westgate Industrial Estate | Northampton | NN5 5DL

£2,870,000

subject to contract

SOLD

Summary

  • Fully income producing

  • Established commercial location

  • Secure Income

  • Active management opportunities

  • £2,870,000, subject to contract

  • 7.5% Net Initial Yield

  • £68 per sq ft Capital Value

  • Significant discount to vacant possession value

Location

Northampton is located approximately 106 km (66 miles) north west of Central London, 88 km (55 miles) south east of Birmingham, 59 km (37 miles) south of Leicester and 88 km (55 miles) west of Cambridge.

The town benefits from good road communications with Junction 15 of the M1 Motorway approximately 6.4 km (4 miles) to the south, accessed via the A45, Junction 15a some 6.4 km (4 miles) to the south-west and Junction 16 approximately 8 km (5 miles) to the west, accessed via the A4500. The M1/M6 Motorway Interchange is approximately 29 km (18 miles) to the north-west.

In addition, the town is connected to the national railway network with a fastest journey time to London Euston of 55 minutes. Direct rail connections are also provided to other regional centres including Birmingham, Nottingham and Milton Keynes. London Luton Airport is approximately 61 km (38 miles) to the south-east and Birmingham International Airport is approximately 72 km (45 miles) to the north-west.
Northampton is located at the heart of the UK, with unrivalled national and international transport links. The town has been identified by Government as a key area for economic growth and was singled out in a recent Experian report as the best place in the UK to do business, the only place in the country to score 19 out of a possible 20 points across four critera: Number of start-ups, rate of insolvencies, level of financial health and business turnover. Northampton has also recently been rated in the UK’s top ten places to work based on factors including average house price, wage and available jobs. (Source: www.northamptonez.co.uk).

Situation

The property is situated on the established Westgate Industrial Estate, immediately adjacent to the A4500 (Weedon Road) which in turn links directly with the M1 Motorway some 6.4 km (4 miles) to the west. Northampton town centre is 2.4 km (1.5 miles) to the east. Access to the property is via Mansard Close, at its junction with Gambrel Road.

The property is situated immediately adjacent to an Audi car dealership, Argos and Homebase. Other occupiers in the immediate vicinity include Newey & Eyre, Dulux, Halfords, Matalan, Hobbycraft, Wickes and Sainsbury’s.

In addition, the property is adjacent to Sixfields Retail Park where occupiers include Next, Boots, M&S Simply Food, Poundworld and First Choice. The property is also within short walking distance from the Sixfields Leisure Park which is home to occupiers including Cineworld, Nuffield Health, Bella Italia, Pizza Hut, T.G.I Friday’s, Chiquito, McDonald’s and Frankie & Benny’s.

Description

The property comprises two 1980’s warehouse buildings, each of steel portal frame with corrugated steel sheeting over block work elevations.

Unit 1 has been subdivided into three individual units, each having their own yard area. Units 1a & 1b are situated at the corner of Mansard Close and Gambrel Road and benefit from a drive-in loading door to the front and automated roller shutter doors. The warehouse area has an eaves height of approximately 4.73 metres with a maximum height of 6.5 metres. A mezzanine floor has been added to the warehouse. Both units have a front yard for parking and loading. Trade counter accommodation is provided to the front of the premises.

Unit 1c is of a similar specification as Units 1a and 1b. The unit also benefits from a two storey office building of brick construction which interlinks with the warehouse, providing trade counter accommodation the front of the premises. The warehouse benefits from an automated roller shutter loading bay door.

Unit 2 is a detached unit situated at the end of Mansard Close and comprises two interlinked bays of steel frame construction and part clad in profile steel sheeting. A mezzanine floor has been installed by the tenant and there are two manually operated loading doors situated at its northern elevation. There are two storey offices to the front and a substantial yard area to the front and southern elevations which is heavily secured by a tall perimeter fence, accessed by an electric sliding gate, in keeping with the current use of the unit for vehicle recovery.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Gross Internal Areas;

Unit 1A
Ground Floor Warehouse 412.57 sq m 4,441 sq ft
  Offices 234.76 sq m 2,527 sq ft
First Floor Offices 22.76 sq m 245 sq ft
Total   670.09 sq m 7,213 sq ft
Mezzanine   23.41 sq m 252 sq ft
       
Unit 1B
Ground Floor Warehouse 673.06 sq m 7,245 sq ft
       
Unit 1C
Ground Floor Warehouse 654.20 sq m 7,042 sq ft
  Offices 66.89 sq m 720 sq ft
First Floor Offices 68.56 sq m 738 sq ft
Total   789.65 sq m 8,500 sq ft
Mezzanine   245.81 sq m 2,646 sq ft
       
Unit 2
Ground Floor Warehouse 1,563.14 sq m 16,826 sq ft
  Offices 182.36 sq m 1,963 sq ft
       
Total   1,745.50 sq m 18,789 sq ft
       
       
TOTAL   3,878.30 sq m 41,747 sq ft

A set of floor plans is available to download and the measured survey report is available for assignment to a purchaser.

Rateable Value

Accommodation Rateable Value
Unit 1a & b £57,000
Unit 1c £34,000
Unit 2 £37,750

The Uniform Business Rate is 48 pence per pound for 2015/2016.

Site

We estimate the site area to be approximately 0.85 hectares (2.09 acres).

A Phase I Environmental Risk Assessment was carried out by WSP in September 2016 which concluded that “the site represents a low/medium risk with respect to potential contaminated land liability issues” and “no further contaminated land assessment work is considered necessary for the current ongoing commercial use of the site”. A copy of the report is available to download and is available for assignment to a purchaser.

Tenure

Freehold. 

Tenancies

The property is fully let to 3 tenants in accordance with the attached tenancy schedule.

A purchaser will benefit from a total income of £229,320 per annum.

Capital Value

The investment value is a significant discount to the vacant possession value, as evidenced by the recent sale of a unit on the same estate to an owner-occupier. In July 2016 Unit 2B Mansard Close, immediately opposite the subject property, totalling approximately 1,560 sq m (16,800 sq ft) was sold at a figure equating to £840 per sq m (£78.00 per sq ft).

Market Commentary

According to Knight Frank’s ‘Midlands – H1 2016’ report, prime headline rents in Northampton for units up to 50,000 sq ft are currently £6.25 per sq ft and prime headline rents for units over 50,000 sq ft are £6.00 per sq ft. The report comments that despite the EU Referendum there is still optimism in the market and deals have completed since the end of June 2016. It also states that the regional outlook is that stock levels are expected to diminish and landlords are set to benefit from rental increases at rent review / lease renewal. Following a period of sustained rental growth over the last two years, rental growth in secondary areas is anticipated.

In the Midlands, which is historically the dominant UK region accounting for 38% of national take-up, c.6m sq ft of industrial space was taken in H1 2016, up 33% on the same period last year. (Source: Knight Frank Logic: UK Overview – H1 2016)

Due to the distinct shortage of industrial/warehouse properties in Northampton, we believe the subject property offers good prospects for future rental growth.

Covenants

Edmundson Electrical Limited, (Co. No. 02667012) has reported the following figures:

  31st December 2014 31st December 2013
Turnover £1,159,115,000 £1,093,411,000
Pre-Tax Profits £66,518,000 £58,066,000
Shareholders’ Funds £340,551,000 £324,289,000

The principle activity of the Company is the wholesale distribution of electrical products. Serving the country from over 250 locations, their customer base includes electrical contractors & engineers, industrial companies, facilities management, government agencies, local authorities, power generation, utilities, construction, panel builders, oil, gas, petrochemical, export markets, food industries, hotels/leisure, retail, air conditioning, heating & ventilation, refrigeration, security and fire prevention. The ultimate parent undertaking is Blackfriars Corporation, an American company incorporated in the State of Delaware. For further information please visit www.edmundson-electrical.co.uk.


Speedy Asset Services Limited (Co. No 6847930) has reported the following figures:

  31st March 2015  31st March 2014
Turnover  £345,878,000  £323,394,000
Pre-Tax Profits  £12,689,000  £8,436,000
Shareholders’ Funds £69,348,000 £58,547,000

The Company is the UK’s leading tools, equipment and plant hire business and is part of Speedy Hire PLC, the UK’s largest hire provider founded in 1977 with 3,800 employees in more than 220 trading locations serving over 50,000 customers. Speedy Hire PLC is listed on the London Stock Exchange with a market capitalisation of £195 million. For further information please visit http://investors.speedyservices.com.


Cowan Recovery Limited, (Co. No. 01339144) has reported the following figures:

  31st December 2015  31st December 2014
Turnover £9,051,440 £7,733,878
Pre-Tax Profits £449,306 £221,060
Shareholders’ Funds  £1,060,974  £714,931

The principal activity of the company is the recovery and transportation of vehicles.

Cowan’s of Hemel Hempstead was established in 1972 by Mike Cowan to provide a 24 hour breakdown and recovery service for cars and light vans in the public domain and motoring organisations. Cowan’s rapidly established a reputation for prompt response times, excellent customer services and expertise in its field. In 1977 the company moved to Newport Pagnell and quickly replicated the reputation it had made for itself in the light vehicle sector, particularly on police contracts. Cowan Recovery Ltd (CMG) changed its trading name to CMG Rescue Services in the late 1990’s. Their fleet of more than 100 vehicles allows them to cater for everything from a roadside breakdown to major multi-vehicle incidents. The company’s team consists of around 60 operational staff, along with 16 Control Centre operatives and some 16 employee’s dealing with finance and administration roles within the business. For further information please visit http://cmg-org.com.

VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers in the region of £2,870,000 (Two Million, Eight Hundred and Seventy Thousand Pounds), subject to contract, reflecting a net initial yield of 7.5% and a capital value of £738 per sq m / £68 per sq ft, assuming standard purchaser’s costs of 6.43%.

Investment Considerations

  1. An opportunity to acquire a freehold industrial/trade counter investment;

  2. The property is multi-let and fully income producing;

  3. The property is situated in an established commercial location;

  4. The property benefits from secure income;

  5. The property provides asset management opportunities, including a potential break-up of the property on a unit-by-unit basis;

  6. The property may lend itself to future potential alternative uses, subject to obtaining the necessary planning consents;

  7. The capital value is at a significant discount to the vacant possession value;

  8. A purchase at the asking price will provide an investor with an attractive net initial yield;

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
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Carter Lemon Camerons LLP  
Chris Picardo chrispicardo@cartercamerons.com +44 (0)20 7406 1000
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