KNOCKMORE INDUSTRIAL ESTATE. Well Located Industrial Investment Moira Road, Lisburn, BT28 2EJ

Transcription

1 KNOCKMORE INDUSTRIAL ESTATE Well Located Industrial Investment Moira Road, Lisburn, BT28 2EJ

2 INVESTMENT SUMMARY The property comprises 10 blocks of industrial and office accommodation of varying sizes, specification and condition measuring 319,949 sq ft of which 34,824 sq ft has been sold off long leasehold. Knockmore Industrial Estate is a long established industrial estate on the outskirts of Lisburn City Centre. This industrial estate is only 2 miles from Lisburn City Centre, 4 miles from the M1 at Sprucefield and a similar distance from the Moira roundabout (Junction 8 M1). The estate provides secure warehousing and offices within a managed environment, protected by cctv. Multi let to a variety of different tenants such as Ford, Bio Chem Research, Decora Blinds, ADE, KME AND Eagle Overseas to name a few. Current gross rent of 801,835 per annum and a net rent of 793,287 per annum. 97.5% occupied and let off low base rents ( 2.81 per sq ft overall) Weighted unexpired lease term of 6.08 years to expiry and 6.00 years to break. Good asset management opportunities to regear leases, refurbish a number of buildings and develop additional accommodation subject to planning. Site measures acres (7.904 ha). The property is held freehold. We are instructed to seek offers in excess of 8,500,000 (Eight Million Five Hundred Thousand Pounds) for our client s freehold interest excluding VAT. A purchase at this level would reflect an attractive net initial yield of 8.75% assuming purchasers costs of 6.68% and a capital value of per sq ft.

3 Boundary for indicative purposes only.

4 LOCATION The City of Lisburn is located some 9 miles west of the City of Belfast and is part of the Belfast Metropolitan Area. The city has excellent road access being adjacent to the M1 motorway which connects Belfast with the west of the Province and the A1 which is the direct link to Dublin and the Republic of Ireland. The city also has the benefit of being on the Belfast to Dublin rail line and some 17 miles from Belfast International Airport at Aldergrove and 13 miles from Belfast City Airport. Lisburn was granted city status in 2002 and is the third-largest city in Northern Ireland. It had a population of 120,165 people in the 2011 Census. On the 1st April 2015 Lisburn & Castlereagh City Council assumed responsibility for the new Council area, following the amalgamation of Lisburn City Council and Castlereagh Borough Council. The Council represents 135,000 residents in approximately 56,000 homes and covers an area of nearly 200 square miles. Lisburn benefits from excellent transport links and has historically been home to Ireland s Linen industry with industrial development remaining a strong sector, focused in Knockmore, Ballinderry and Lissue Industrial Estates. SITUATION The subject property is situated on a prominent corner position on the junction of the A3 Moira Road and Knockmore Road, approximately 1.6 miles from Lisburn city centre and 2.5 miles from the M1 Motorway. The established Knockmore Industrial Estate forms part of the principal industrial area for the city. The estate benefits from excellent accessibility given its proximity to the M1 and the A1 Dual Carriageway which in turn give ease of access to Belfast International and City Airports and the Ports of Belfast, Larne and Warrenpoint. The proposed Knockmore Link Road will give access to the M1 motorway. Occupiers within the immediate area include Coca Cola, Tata Steel, Creative Composites, McAvoy Group, Boomer, ASSA ABLOY and Camlin Group. Coleraine Ballinderry Rd DERRY City of Derry KNOCKMORE INDUSTRIAL ESTATE Moria Rd Ballymena Donegal Antrim M2 Moria Rd OMAGH A4 A5 Dungannon A29 Armagh A3 Belfast International M1 A27 A1 LISBURN Belfast City Blaris Rd Blaris Rd Hillsboro N54 N2 Newry A2 A101 Proposed Knockmore Link Road N53

5 PROPERTY DESCRIPTION The property comprises 10 industrial warehouse and office blocks providing 319,949 sq ft of which 34,824 sq ft has been sold off long leasehold. Block A comprises 58,340 sq ft of industrial accommodation with an extensive marshalling yard and 3 dock levellers. Part of the building comprises a high bay warehouse. Blocks B, C, E, G & J are brick built to 2.5 metres with double skin cladding to side elevation and roof with roller shutters doors and have been generally fitted out to a good standard. The vacant office building adjoining Block A comprises two storeys which have been stripped out to a shell condition. Blocks F & H are similar specification with brickwork to 1.5 metres and asbestos cladding to sides and roof for remainder. Both units are accessed via roller shutter doors to side with both marshalling and parking facilities available surrounding each unit. At the main entrance to the estate there is additional development lands which comprise two dwelling houses and out buildings which would be suitable for redevelopment subject to planning and is available by way of separate negotiation. There is substantial amounts of car parking and yard space within the estate. There is a secure yard beside block H which is currently let to Ford. This yard would also be suitable for development subject to planning. In addition there is a security hut at the entrance with electrically operated gates. The entire site is secured with palisade fencing and is covered by a CCTV system. Coleraine DERRY City of Derry Ballymena Donegal Antrim M2 OMAGH A4 A5 N54 Dungannon A29 Armagh A3 N2 Belfast International BELFAST M1 A27 A1 Newry A2 15 Mins 30 Mins 45 Mins Belfast City N53 Dundalk

6 TENANCY/ACCOMMODATION The property is 97.5% let by floor area to eleven tenants on sixteen leases, however unit H3&4 will be coming vacant on expiry. The investment provides a weighted average unexpired lease term of 6.08 years to lease expiry and 6.00 years to lease breaks. The estate extends to 319,949 sq ft (29, sq m) arranged over ten blocks and is let on the following basis: - BLOCK TENANT AREA (SQ FT) FROM EXPIRY NEXT RENT REVIEW ANNUAL RENT RATEABLE VALUE SERVICE CHARGE INSURANCE COMMENTS A & High Bay W/house Decora Blind Systems 58, Oct Oct Oct ,265 84,300 14,483 7,075 B Killsmullan 27, Jan Jan Feb ,850 60,800 6,733 3,292 Rent is passing at 100,000 pa rising to 131,265 pa 20/10/19. The rent has been topped up. Schedule of condition attached to the lease. Self-storage. Landlord is responsible for repairing of the roof. C Ford Retail 38, Nov Oct Nov ,500 85,100 9,433 4,599 E1, E3a, E4, E5 Ford Retail 24, May Oct Nov ,500 66,200 6,058 2,960 Demise includes 1.14 acre secure compound. E2 ADE Autoparts NI 5, Dec Dec-2023 TBO 15-Dec Dec ,000 TBC 1, E3b Killsmullan 5, Jun Jan Jun ,988 TBC 1, F H3 & 4 H5 H6 H7 Bio Chem Research KME Steelworks EOS Warehousing EOS Warehousing EOS Warehousing 32, Jan May-2023 n/a 34,550 71,600 8,075 3,949 16, Sep Sep-2018 n/a 36,000 33,300 3,994 1,954 Tenant is vacating. 8, Jun Aug-2018 n/a 10,464 16,100 1, Rent is passing at 16,500 pa rising to 17,500 pa 15/12/18 and every year thereafter to a max of 20,000. The rent has been topped up. Rent commencement 1 June Rent free period will be topped up. Inclusive of service charge and insurance. Month to month rolling break. Net rent of 7502 per annum. 8, Apr Aug-2018 n/a 8,000 16,100 2, Month to month rolling break. 8, Aug Aug-2018 n/a 10,464 16,100 1, Inclusive of service charge and insurance. Month to month rolling break. Net rent of 7502 per annum. J DMG , Nov Oct Nov ,500 41,400 3,478 1,698 Sublet to Lowe Refrigeration. G Offices Grd & First Bio Chem Research 32, May May-2023 n/a 66,750 80,450 8,075 3,949 Vacant 7, Oct Oct-2019 n/a 0 Not Rated 1, Offices have been stripped out and derated. TOTAL 285, ,831 70,763 34,578

7 TENANCY/ACCOMMODATION continued The following units have been sold off long leasehold: BLOCK TENANT AREA (SQ FT) FROM EXPIRY NEXT RENT REVIEW ANNUAL RENT RATEABLE VALUE SERVICE CHARGE INSURANCE COMMENTS D Foodco 10, n/a ,500 2,692 Tenant Insures H1 & 2 Nelson Hydraulics 16, Dec Dec-2993 n/a ,550 4,010 Tenant Insures H8 J & T Enterprises H1 & H2 are held under two separate long leasehold interests 7, Dec Dec-2993 n/a ,400 1,937 Tenant Insures Includes small yard area TOTAL 34, ,637 The investment produces a gross rent of 801,835 per annum and after non-recoverable costs a net rent of 793,287 per annum.

8 Knockmore Industrial Estate Moira Road, Lisburn, BT28 2EJ SITE The total site measures acres (7.904 ha) and is broadly rectangular in shape with flat topography. SOLD LONG LEASEHOLD POTENTIAL DEVELOPEMENT SITE BLOCK D OFFICES BLOCK F H8 BLOCK E BLOCK C BLOCK A BLOCK G BLOCK H Potential Development Site H1 H2 30,000 sq ft of Industrial Units * Potential BLOCK B Development Site Available Separately BLOCK J * Subject to planning NOT TO SCALE This plan is published for convenience of identification only and although believed to be correct, its accuracy is not guaranteed and does not form any part of a contract. Area in yellow has been sold off long leasehold. Area in red is a earmarked for potential development.

9 COVENANT STRENGTH The tenants recent accounts and Delphi ratings are summerised below: - BLOCK TENANT EXPERIAN DELPHI SCORE GROSS RENT PA % OF INCOME YEAR END SALES TURNOVER PROFIT/ LOSS TANGIBLE NET WORTH COMMENTS A & High Bay W/house B C, E1, E3a, E4, E5 E2 F & G H3 & H4 H5, H6 & H7 Decora Blinds Systems Limited Killsmullan Very Low Risk 100/ , % 31/12/16 58,826,558 3,953,549 17,347,507 Below Average Risk 78/100 86, % 31/03/17 Not disclosed Not disclosed ( 50,944) Decora Blind Systems was established over 35 years and is a leading manufacturer of window coverings. The tenant operates self-storage units. Ford Retail Very Low Risk 98/ , % 31/12/2016 1,634,526,000 18,303,000 59,173,000 Ford Service Centre. ADE Autoparts NI Bio Chem Research KME Steelworks EOS Warehousing Above Average Risk Below Average Risk 45/100 20, % 30/04/17 Not disclosed Not disclosed ( 118,451) Distributor of automobile components. www. adeautoparts.co.uk 78/ , % 31/12/16 Not disclosed Not disclosed 1,238,304 Kitchen door manufacturer. Very Low Risk 100/100 36, % 31/12/16 Not disclosed Not disclosed 1,287,876 Low Risk 90/100 18, % 31/12/16 Not disclosed Not disclosed 694,654 Precision fabrication services and manufacturer of steel precast concrete moulds. Delivery services and warehouse logistics across the UK, Ireland and Europe J DMG 2010 Maximum Risk 10/100 72, % 31/12/16 Not disclosed ( 24,715) ( 213,342) Sublet to Lowe Refrigeration. Full Experian Reports are available upon request. % OF INCOME BASED ON EXPERIAN RATING 62.21% Very low risk 2.33% Low risk 23.77% Below average risk 2.53% Above average risk 9.16% Maximum Risk

10 ASSET MANAGEMENT Whilst the Estate is nearly fully let we believe the investment offers further asset management opportunities. Potential asset management opportunities include: Let the vacant 7,104 sq ft of office accommodation. Re-let unit H3 & H4 on lease expiry. Regear occupational leases. Construct additional units, car parking and coffee pod on site, subject to planning. Refurbished the older units and relet at higher rents. Construction of Knockmore Link Road will greatly improve access to the motorway network. BLOCK D OFFICES BLOCK F BLOCK E BLOCK C BLOCK A H8 BLOCK G BLOCK H Potential Development Site H1 H2 30,000 sq ft of Industrial Units * Potential Development Site Available Separately BLOCK B BLOCK J ADDITIONAL LANDS An additional plot of land comprising of two houses and out building are available in addition. Price and further details are available on request. * Subject to planning

11 TITLE The property is held freehold. SERVICE CHARGE The service charge budget for 2018 is estimated at 79,402 per annum which equates to a rate of 0.25 per sq ft. Further details are available upon request. PURCHASERS PACK A Purchaser Pack has been produced for prospective purchasers to review due diligence relating to the property. The pack is available upon request or may be accessed with a password at CAPITAL ALLOWANCES The vendor has not claimed any capital allowances during ownership. VAT The property has been elected for VAT. It is envisaged the transaction will be treated as a TOGC. PROPOSAL We are instructed to seek offers in excess of 8,500,000 (Eight Million Five Hundred Thousand Pounds) for our client s freehold interest excluding VAT. A purchase at this level would reflect an attractive net initial yield of 8.75% assuming purchasers costs of 6.68% and a capital value of per sq ft. Note: This excludes the attached developement site which may be aquired separately. ENERGY PERFORMANCE The units have been assessed as follows: - BLOCK TENANT EPC RATING A & High Bay W/house Decora Blinds Systems Limited C68 B Killsmullan C51 C Ford Retail B47 Offices Grd & First Vacant n/a E2 ADE Autoparts NI B47 E3b Killsmullan d D88 E1, E3a, E4, E5 Ford Retail B47 F Bio Chem Research d F126 H3 & 4 KME Steelworks F143 H5,6,7 EOS Warehousing C66 J DMG 2010 C74 G Bio Chem Research B40 Full Energy Performance Certificates are available in the Data Room. CONTACT Gavin Elliott Capital Markets T: T: E: gavin.elliott@cbre.com The Linenhall, Linenhall Street, Belfast, BT2 8BG Robert Ditty Capital Markets T: T: E: robert.ditty@cbre.com T: DISCLAIMER: These particulars are issued by CBRE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. July 2018