REVERSIONARY INDUSTRIAL INVESTMENT UNIT 1, FIRST AVENUE, FORGE LANE, MINWORTH, BIRMINGHAM B76 1BA

Transcription

1 REVERSIONARY INDUSTRIAL INVESTMENT UNIT 1, FIRST AVENUE, FORGE LANE, MINWORTH, BIRMINGHAM B76 1BA

2 INVESTMENT SUMMARY Prime Midlands distribution location Excellent access to, M42 and Toll Well-configured distribution unit Self-contained site with secure yard Totalling a gross internal area of 104,558 sq ft (9,713.7 sq m) Let to the strong covenant of Kuehne + Nagel Limited for a further 5.25 years Freehold Substantial reversion The property currently produces 381,000 per annum, reflecting a low rent of only 3.64 per sq ft ( per sq m) Seeking offers of 4,500,000 (Four Million Five Hundred Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 8.00% after purchaser s costs of 5.80%

3 84.1m Redcar Westmoreland Middlesbrough Tees Side Brotton Brough Whitby mbleside Darlington Richmond Great Ayton Windermere Catterick LOCATION El Sub Sta Leyburn Northallerton Scalby Minworth is a prime midland s distribution location. Scarborough Pickering Filey Located approximately 9km Ripon (5.6 miles) north east of Birmingham city centre, 180km (113 miles) northwest of London and 120km (75 miles) south of Manchester. Norton Harrogate Bridlington Lancaster Birmingham international airport is approximately 8km (5 Driffield miles) to the south Keighley of the property whilst East York Midlands international Hornsea airport is approximately 56km (35 miles) to the Pocklington north east. Bradford Leeds Market Beverley Blackburn Excellent road communications, with 3 motorways within a 7km Weighton Warehouse 5 (4 miles) radius the property. Kingston Withernsea Preston 2 upon Hull Approximate drive times of 20 minutes to Birmingham, 565 Goole 2 hours Immingham 15 minutes Rochdale Humberside Bury to Manchester and 3 hours to London. Scunthorpe Grimsby Huddersfield 58 Bolton million people can be reached within 4.5 hours HGV drive Cleethorpes Barnsley Brigg Warehouse time, ranking Birmingham 12th in terms Doncaster of access to population. Caistor rpool Manchester Gainsborough El Sub Sta The city 0 benefits from a district population of 977,087, and an Market Stockport Rasen Louth Mablethorpe urban area population of Runcorn Sheffield 2,383,081 within 20km (12.5 Retford miles). Macclesfield Wragby Sutton-on-Sea M56 Major employers in the area include Jaguar Land Rover, Cadbury Schweppes, BMW, GKN, Chesterfield J Sainsbury, Royal Mail and Tradeteam. Lincoln Horncastle Ingoldmells ster Skegness Newarkon-Trent n th Whitchurch Leominster Hereford Telford Kidderminster Gloucester Cheltenham M42 Gloucester 0m 10m 20m 30m Nottingham Coningsby Wells next Ashbourne the Sea Ordnance Survey Crown Copyright All rights reserved. Sleaford Licence number Plotted Scale - 1:1450 Sheringham Boston Hunstanton Holt Stone Derby Toll M42 Cromer Grantham Holbeach Walmley Long Fakenham T1 Sutton Aylsham N. Walsham Spalding 9 King's Lynn Minworth I.E Wisbech Norwich E. Dereham Toll Tamworth M1 Swaffham Curdworth Sutton M42 First Norwich Coldfield Avenue Wymondham Leicester Peterborough Downham Minworth Market Minworth Chatteris Attleborough Beccles Prologis Park Brandon Thetford Birmingham Diss Bungay Worcester Cheltenham Coventry Warwick M40 Banbury Witney Oxford M40 Rugby M1 Northampton Milton Keynes Aylesbury Huntingdon Castle Vale FIRST AVENUE SELCO WAY Ely St Neots Bedford Cambridge 5 Castle Bromwich Luton Biggleswade Letchworth Stevenage Bishop's Stortford Hatfield Cambridge Mildenhall Newmarket Bury St Edmunds Haverhill Braintree Stansted Withams 4a Sudbury A12 4 Castle Vale MAYBROOK ROAD lndustrial Estate 1250 Ipswich M42 Works FIRST AVENUE Sloping masonry Halesworth Stowmarket 8 Harwich Colchester Tiptree Felixstowe Clacton-on-Sea West Mersea A446 SITUATION The subject property is located on First Avenue, close to the junction with Forge Lane and the entrance to Maybrook Industrial Estate. The A38 Kingsbury Road dual carriageway provides direct access to Birmingham City Centre. Opposite the property on the southern side of the A38 lies Midpoint, a 65 acre distribution park developed by Prologis. Nearby occupiers include Cadbury Schweppes, Webasto, Hozelock, GKN Driveline and The Pallet Network. Hemsby Great Yarmouth Leiston Walton on the Naze Frinton-on-Sea Lowestoft Kessingland Southwold Aldeburgh Woodbridge

4 Toll/M42 Toll JT3 ProLogis-Midpoint Minworth Industrial Estate A38 Dual Carriageway Birmingham &, J5

5 DESCRIPTION The property comprises a well-configured 2 bay steel portal frame unit constructed in 1979 on a secure self-contained site. Internally the property benefits from a profile clad roof with 10% translucent roof lights, sodium spotlights, a concrete screed floor and an eaves height of 8.2 m rising to 11.3 m at the pitch with elevations which are part brick/ part profiled steel sheeting. Loading is provided by way of 6 dock level loading bays and 7 level access loading doors with canopies. Office accommodation is provided to the front of the unit over 2 storeys while a further single storey office and reception block has been constructed by the occupier to the north west of the unit. Externally the property benefits from palisade fencing, a gatehouse and security barriers. In addition to the yard surrounding the unit further parking is provided to the east of the property accessed from First Avenue. The site benefits from excellent roadside frontage with First Avenue running along the perimeter to both the south and west. SITE The site extends to an area of approximately acres (2.122 hectares), reflecting a site cover of approximately 46%. ACCOMMODATION The property was measured in October 2010 by Plowman Craven in accordance with the RICS Code of Measuring Practice (6th edition) and we report the areas as follows: Sq Ft Sq M Warehouse 101,517 9,431.2 Office Ground 1, Office First 1, Total 104,558 9,713.7 TENANCY The property is let to Kuehne + Nagel Limited on full repairing and insuring terms from 25th December 1984 until 24th December 2019 at a rent of 381,000 per annum, reflecting a low rent of only 3.64 per sq ft. The lease is subject to 5-yearly upward-only reviews, with the next review due 25th December COVENANT Kuehne + Nagel Limited are a large-scale food and beverage distributor providing customers with a comprehensive range of integrated logistics and transport services throughout the UK and worldwide. The last 3 years audited accounts are as follows: PLANNING 31 Dec s The property benefits from consent within Class B8 of the Town and County Planning (Use Classes) Order The site is not zoned under Birmingham City Council s Unitary Development Plan (adopted September 2004). ENVIRONMENTAL 31 Dec s 31 Dec s Sales Turnover 937, , ,906 Profit/(Loss) Before Taxes 26,959 22,271 26,644 Tangible Net Worth 21,776 20,940 14,340 A Phase I Environmental Assessment was undertaken by CBRE in October In summary, CBRE consider the risk evaluation to the site to be Low. A letter of reliance can be provided in respect of the report. TENURE Freehold.

6 MARKET COMMENTARY The West Midlands recorded the highest level of industrial take-up across all the UK s regions in In total, 14.3m sq ft of floor space was either let or sold, with the mid-box and logistics sector accounting for 48% of total take-up. As a result of improved occupier demand but a dearth of recent development, the West Midlands has one of the most acute shortages of grade A stock in the UK. The most severe shortage is in the mid-box (50-100,000 sq ft) and logistics (>100,000 sq ft) sectors, where only four new buildings totalling 579,673 sq ft remain on the market (two of which are currently under construction). On a micro level, Minworth s connectivity has created an environment for strong property performance, underpinned by robust land values; as recently evidenced by the sale of 14 acres for over 525,000 per acre. The site will accommodate a purpose built dotcom distribution facility on a freehold basis and a 102,750 sq ft speculative warehouse. The quoting rent will be 5.95 per sq ft. Forge Lane itself is a well-established industrial location within Minworth, offering well-configured units with excellent access to the A38 dual-carriageway. We are of the opinion that it is well placed to take advantage of the demand being seen in the north east of Birmingham for industrial stock; particularly from the automotive and manufacturing sector where supply-side occupiers need to be able to fulfil just in time requirements. Against this backdrop, both prime and secondary rents in Minworth and Birmingham have increased during the last 12 months and we are therefore of the opinion that the Rent Review in December 2014 provides an opportunity for significant rental growth over and above the current level of 381,000 pa ( 3.64 per sq ft). Recent activity in Minworth has ranged from per sq ft. In the long term, the site provides the potential for wholesale redevelopment which would allow headline rents to push on towards 6.00 per sq ft. Recent letting transactions of note include: EPC & VAT The property has an EPC rating of F 150. A full EPC is available on request. The property has been elected for VAT. PROPOSAL We are instructed to seek offers of 4,500,000 (Four Million Five Hundred Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 8.00% after purchaser s costs of 5.80% CONTACT For further information and appointment to inspect please contact: Hugh White E: hugh.white@bnpparibas.com T: M: Oliver D souza E: oliver.dsouza@bnpparibas.com T: M: Date Address Size (sq ft) Term (Break) Rent (sq ft) Tenant Rent Free Q Unit 6 Kingsbury Business Park, Minworth 41, yrs (4) 5.25 GBA Services 12 months Q Centurion 120, Centurion Park, J10 M42 119,262 6 yrs (3) 5.50 Aldi UK 3 months Q Emperor Point, Centurion Park, J10 M42 179, yrs (10) 4.75 Speedy Hire 18 months Q Unit 2 Birch Coppice, J10 M42 168, yrs (10) 5.75 DAU Draexlmaier 6 months Q Unit 5 Bromford Gate, Birmingham 52,937 5 yrs 5.75 Dunlop 3 months Q H200 Edison Rd, Hams Hall 41,414 5 yrs (3) 6.00 Plastic Omnium Nil Q Unit 3 Kingsbury Business Park, Minworth 29, yrs (3,6,9) 5.25 Flomatik Network Services 6 months Q Unit 3 Highway Point, Coleshill 120, yrs (15,20) 5.50 Sertec 18 months Q H128 Faraday Avenue Hams Hall, Coleshill 127, yrs (6) 5.50 Syncreon 4 months Oliver Forster E: oliver.forster@bnpparibas.com T: M: Adam Ramshaw E: aramshaw@lsh.co.uk T: M: Q Unit 1 Kingsbury Business Park, Minworth 35, yrs (5) 4.75 Webasto Roof Systems 6 months Q Unit 7 Kingsbury Business Park, Minworth 70, yrs (5) 4.50 Webasto Roof Systems 6 months MISREPRESENTATION CLAUSE: Lambert Smith Hampton Group Limited (LSH) and its subsidiaries and BNP Paribas Real Estate (BNPPRE) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH and and BNPPRE or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH and BNPPRE has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH and and BNPPRE or their employees or agents, LSH and BNPPRE will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH and BNPPRE. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH and BNPPRE shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. Design & Print: Barbican Studio September 2014