stop multi-let-industrial-investment-calne - Singer Vielle Sales

Multi-Let Industrial Investment

9 Harris Road | Porte Marsh Industrial Estate | Calne | Wiltshire | SN11 9PT

£400,000

subject to contract

EXCHANGED

Summary

  • To be sold by clicktopurchase® online AI auction - 6th December, 11:00am
  • Established commercial location

  • Multi-let and fully income producing

  • Low passing rents (£4.73 per sq ft overall)

  • Active management opportunities

  • Freehold

  • Offers in excess of £400,000, subject to contract

  • 7.0% Net Initial Yield

  • Low capital value of £64 per sq ft

Location

Calne is a North Wiltshire town located approximately 145 km (90 miles) west of London, 53 km (33 miles) east of Bristol, 31 km (19 miles) south-west of Swindon and 9.6 km (5 miles) east of Chippenham.

The town benefits from good road communications being in close proximity to the A350 which provides a direct link to Junction 17 of the M4 Motorway some 16 km (10 miles) to the north. The town is also accessed via the A3102 from the north and south. Bristol Airport is approximately 64 km (40 miles) to the west.

Situation

The property is situated in an established commercial location on the Porte Marsh Industrial Estate, the primary commercial area of Calne. The A3102 is less than 0.8 km (0.5 miles) to the north and the town centre is approximately 1.6 km (1 mile) to the south. Access to the property is via Harris Road.

The Porte Marsh Industrial Estate attracts a wide range of businesses and occupiers including Fabrinet UK, BIL Group, Par Foods and Buildbase.

The property benefits from being less than 0.8 km (0.5 miles) from a new Tesco Superstore which opened in November 2017, creating 200 jobs in the town. In addition, David Wilson Homes is in the process of developing Weston Meadow, a new 80-home residential scheme on Oxford Road, only few hundred metres from the subject property.

Description

The property comprises an industrial building which has been sub-divided into a terrace of 5 warehouse units.

The building is of steel portal frame construction with concrete block work to its lower elevations and steel profiled cladding above, under a pitched steel sheet insulated roof.

Internally, the units are designed to provide warehouse space on ground floor together with ancillary office accommodation at first floor level. The minimum eaves height is approximately 4 metres with a maximum height to pitch of approximately 5.5 metres.

Each unit benefits from a roller shutter door with a service yard and car parking provided.

The property includes Units 6-8 Harris Road, a separate industrial terrace which has been sold off on a long lease.

Accommodation

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

Units 1-2    
Ground Floor 198.71 sq m 2,139 sq ft
First Floor 98.29 sq m 1,058 sq ft
Sub-Total 297.00 sq m 3,197 sq ft
     
Unit 3    
Ground Floor 80.36 sq m 865 sq ft
First Floor 14.21 sq m 153 sq ft
Sub-Total 94.57 sq m 1,018 sq ft
     
Unit 4    
Ground Floor 80.17 sq m 863 sq ft
First Floor 30.56 sq m 329 sq ft
Sub-Total 110.74 sq m 1,192 sq ft
     
Unit 5    
Ground Floor 79.43 sq m 855 sq ft
First Floor (Tenant’s) 13.75 sq m 148 sq ft
Sub-Total 93.18 sq m 1,003 sq ft
     
TOTAL 595.49 SQ M 6,410 SQ FT

A set of floor plans is available to download and the measured survey report will be assigned to a purchaser at a cost of £795 + VAT.

Rateable Value

Accommodation Rateable Value
Units 1-2 £11,250
Unit 3 £5,100
Unit 4 £4,200
Unit 5 £4,050

The 2018/19 Uniform Business Rate is 48.0 pence per pound for rateable values below £51,000.

Site

We estimate the site area to be approximately 0.267 hectares (0.66 acres).

A Sitecheck Search was carried out by Landmark in November 2018 which concluded that “no significant contaminant linkage has been identified and any liabilities from contaminated land are unlikely. No further action is required”. A copy of this report is available to download.

Tenure

Freehold.

Tenancies

The property is currently fully let to 4 tenants under 5 occupational lettings in accordance with the attached tenancy schedule.

A purchaser will benefit from a total income of £29,600 per annum (£50.88 per sq m / £4.73 per sq ft overall).

Units 6-8 Harris Road has been let on a 125 year lease from 8th October 2015 at a peppercorn rent.

Market Commentary

The supply of industrial buildings similar in size to the subject units in Calne is very limited with a healthy level of demand. The subject property is let at a significant discount to rents in surrounding areas such as Chippenham and Melksham where we understand rents for similar size units are currently in the region of £8.50 per sq ft. Therefore, we believe that the subject property offers good prospects for rental growth.

A purchase at the asking price reflects a low capital value of £64 per sq ft.  In May 2017, an industrial/warehouse unit in close proximity to the subject property on Clarke Avenue, Porte Marsh Industrial Estate totalling 454 sq m (4,886 sq ft) was sold at £77 per sq ft, demonstrating that the investment value is largely underpinned by the vacant possession value.

Service Charge

The tenants are required to contribute towards an estate service charge. The Service Charge Accounts and Service Charge Budget are available to download.

Covenants

Units 1,2 & 3 – DMN UK Limited

For the year ending 31st December 2017, DMN UK Limited (Co. No. 03617220) has reported Shareholders’ Funds of £359,104.

The company is a wholly owned subsidiary of DMN Machinefabriek Noordwykerhout BV, a company registered in Holland and established in 1950. In 1998 DMN bought the business from Westinghouse Systems and became the owner of the products, changing the brand name to DMN-WESTINGHOUSE.

DMN-WESTINGHOUSE has been designing and manufacturing rotary valves, diverter valves and other related components for the bulk solids handling industry for more than 40 years. DMN-WESTINGHOUSE offers tailor-made solutions to the global food, dairy, plastics, (petro) chemical, pharmaceutical, mineral, power and biomass industries.

DMN are an international company with five sales offices and two production facilities, employing 140 people worldwide. For further information see www.dmnwestinghouse.com.


Unit 4 – N Smith & J Smith, t/a Team Schemes

Team Schemes is a family business formed in 1974 which prints and embroiders all types of clothing. For further information see www.teamschemes.com.


Unit 5 – South West Auto Trimming Limited

For the year ending 31st August 2018, South West Auto Trimming Limited (Co. No. 09838861) has reported Total Net Assets of £67,527.  A rent deposit of £1,637.85 (including interest) is held persuant to the terms of the letting.

A family run business with over 20 years’ experience in vehicle trimming and upholstery, the company specialises in classic and custom vintage & veteran cars, campers, vans, lorries, boats, bikes and planes. For further information see www.swautotrimming.co.uk.

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 excess of £400,000 (Four Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 7.0% and a capital value of £64 per sq ft, assuming purchaser's costs of 3.88%.

Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.

Investment Considerations

  1. An opportunity to acquire a freehold industrial investment;

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

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

  4. The property offers a purchaser a number of opportunities to actively manage and enhance the passing rents;

  5. A purchase at the asking price will provide an investor with an attractive net initial yield with potential to significantly improve;

  6. A purchase at the asking price reflects a low capital value;

  7. An attractive lot size to an investor.

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

Whitehead Monckton  
Robert Coombe robertcoombe@whitehead-monckton.co.uk +44 (0) 162 269 8008
Angelina Milon angelinamilon@whitehead-monckton.co.uk +44 (0) 162 269 8000
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