PIPE CENTER. FOR SALE Prime Single-Let Trade Counter/Industrial Investment

Transcription

1 FOR SALE Prime Single-Let Trade Counter/Industrial Investment Pipe Center, Unit 31 New York Way, New York Industrial Estate, Newcastle upon Tyne NE27 0QF

2 Investment Summary Situated in an established industrial location, approximately 8 miles east of Newcastle city centre Strategically located on New York Industrial Estate, with excellent access to the A19 A modern high specification trade counter/industrial unit extending to 17,804 sq ft Let to Wolseley UK Limited (D&B rating of 5A1) on a 15 year lease until 18 October 2020, therefore providing an unexpired term of 4.30 years Passing rent of 89,250 per annum, equates to 5.01 per sq ft Long Leasehold interest with circa 110 years unexpired We are instructed to seek offers in excess of 1,055,000 (One Million and Fifty Five Thousand Pounds) for our client s interest. A purchase at this price reflects a net initial yield of 8.00% assuming purchaser s costs of 5.80%. A purchase at this level equates to a capital value of per sq ft. Pipe Center Investment Summary

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4 Location The property is located in the North East of England within an established commercial area which incorporates Silverlink Retail Park, Cobalt Business Park and New York Industrial Estate. New York Industrial Park is very well situated being located adjacent to the A19, affording easy access to the main road networks to the north and south. The A19 link has been significantly improved since the second vehicle tunnel was completed in Newcastle city centre is situated 8 miles to the west with Whitley Bay and Tynemouth only 3 miles to the east. Newcastle International Airport provides regular direct flights throughout Europe including up to 14 daily flights to London. The area is also well served by the national railway network including a direct service from Newcastle Central Station to Edinburgh to the north and York, Leeds and London to the south. In response to the increased development at Cobalt Business Park and subsequent new employment this has created, there is now an extensive bus network, serving the area which also links into the local Metro service. Pipe Center, Unit 31 New York Way, New York Industrial Estate, Newcastle upon Tyne NE27 0QF Newcastle International Airport A696 NORTH A1 A1 NEWCASTLE UPON TYNE COBALT BUSINESS PARK A19 A19 WALLSEND GATESHEAD THE SILVERLINK NORTH A1058 COAST ROAD ATMEL NEWCASTLE A19 A1058 A194(M) Pipe Center New York Way NE27 0QF NEW YORK INDUSTRIAL PARK Pipe Center New York Way NE27 0QF Tyne Tunnel A19 WASHINGTON TYNE TUNNEL A1231 SILVER FOX WAY SILVERLINK A191 Silverlink Retail Park JARROW MIDDLE ENGINE LANE A19 A1300 TYNEMOUTH NORTH SHIELDS SOUTH SHIELDS A1018 SUNDERLAND SILVER FOX WAY A1058 COAST ROAD ROUTE 19 NORHAM ROAD B1316 TYNEMOUTH NORHAM ROAD Pipe Center Location

5 Ford Component Manufacturing Victor Products CRM Group Jaycare Elanders PTS Wolseley UK Limited Next Dalesman Virgin Media Ramage Transport SILVER FOX WAY Situation A191 New York Industrial Park is situated a short distance north of the A1058 Coast Road and can be accessed via the A191, which in turn is accessed directly from the A19. A mixed commercial area, New York Industrial Park comprises a combination of light industrial buildings, hi-tech / starter office units and also a number of car showrooms. Occupiers in the near vicinity include Victor Products, PTS Group, Virgin Media, Jaycare, Eurograph Quick Hydraulics and Unika. Pipe Center Situation

6 Description The subject property comprises a modern, detached industrial unit of steel portal frame construction with cavity blockwork and profile metal sheet elevations beneath a curved profile roof. Internally the building benefits from a large open warehouse area with a 3.2 tonne crane running the full length and covering a width of 19m and a height of 5.56m. There is an up and over shutter door at its southern elevation providing access to the unit from a yard/ loading area. The warehouse has a solid concrete floor and an eaves height of 7m. Heating to the warehouse is provided by a gas-fired air blower system with lighting provided by high density lighting. The property benefits from two storey office accommodation at the properties western end. The office accommodation at ground level contains a trade counter which has an independent access from the car park. The remainder of the office accommodation is of good specification and arranged on a carpet covered floor with painted plaster walls and suspended ceilings. There are WCs on both the ground and first floors. The tenant has installed a mezzanine level covering a large portion of the building and provides a vital storage area. The property has car parking spaces at its western elevation and a concrete yard to the south, secured by a steel palisade fence. There is an external storage shed extending to 690 sq ft within the yard that was installed by the tenant. Accommodation The property has been measured in accordance with the RICS Property Measurement (1st Edition) 2015 and provides the following Gross Internal Area:- Accommodation Sq M Sq Ft Ground Floor 1, ,556 First Floor Offices ,248 Total 1, ,804 Site The property occupies a regular shaped site of approximately ha (0.924 acre) with a site coverage of 41%. Property Pipe Center Description I Accommodation I Site

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8 Tenure The property is held long leasehold for a term of 125 years (less five days) from 24 August 2001 at a rent of a peppercorn. Therefore an unexpired term of circa 110 years. Tenancy The property is fully let to Wolseley UK Limited (Company No: ) on a 15 year lease from 19th October 2005, expiring on the 18th October 2020, at a passing rent of 89,250 per annum. The lease is drafted on full repairing and insuring terms. The current rent of 89,250 per annum, equates to 5.01 per sq ft. Covenant Status Wolseley UK Limited (Company No ) Wolseley UK is the UK operating company of Wolseley Plc, the world s largest heating and plumbing distributor and also a world leading distributor of building products to the professional market. Wolseley Plc originated in Ripon, still employing over 3,000 people in the town. The company now has almost 800 branches across the UK serviced by four regional distribution centres. The company is organised into trading brands that service different customer groups. Many of these brands are market leaders with outstanding reputations for supplying professionals in the construction market. The recognised brands include: Pipe Center, Plumb Center, Parts Center, Climate Center and Drain Center. Pipe Center occupies the property as their only trade counter in the North East. The closest Pipe Center is in Stockton-on-Tees to the south, Edinburgh to the north and Carlisle to the west. Wolseley UK Limited represents a strong covenant with a FAME QuiScore of 95/100 Secure and a D&B rating of 5A1. The last three years of accounts are as follows:- Year End Turnover ( ) Pre Tax Profit (Loss) ( ) Shareholders Funds ( ) 31/07/2015 1,852,197,000 59,556, ,149,000 31/07/2014 1,758,046,000 84,382, ,837,000 31/07/2013 1,630,934,000 (143,638,000) 618,349,000 Pipe Center Tenure I Tenancy I Covenant Status

9 Occupier Markets The industrial market in the North East of England has endured a heightened performance within the last 24 months, as positive market sentiment continues to increase. Demand continues to outweigh supply, whilst the manufacturing and distribution sectors continue to strengthen within the North East as Nissan increase their production levels. With supply levels low, and little speculative development underway, rents are expected to rise. Industrial take up in the North East totalled 2.2m sq ft in 2015, down only 200,000 sq ft from the previous year. With very little existing stock available we are now seeing consistent rental growth in all unit sizes and in all locations across the region. UK Land Estates is on site developing an 11,000 sq ft unit at Queens Court, Team Valley, which is being marketed at a rent of 8.25 per sq ft. Further to this there have been two lettings at Portobello Trade Park in Gateshead, following completion of the scheme at the end of last year. The lettings achieved represent headline rents of 6.00 and 6.50 per sq ft, respectively. Other significant letting transactions in the near vicinity of note are as follows: Property Date Tenant Unit 2 Easter Park, Cramlington Unit S4, Tyne Tunnel Industrial Estate Part Unit A4, Tyne Tunnel Industrial Estate Unit 75 Colbourne Avenue, Cramlington June 2016 Crestways Commercial Ltd Headline Rent (psf) Size (sq ft) ,367 May 2016 Nitelites Ltd ,587 Jan 2016 Nov 2015 Northern Clothing Company Ltd Advanced Electronics Ltd , ,069 VAT The property has been elected for VAT and it is envisaged that the transaction will be treated as a TOGC. EPC The unit has been assessed with a rating of C (65). Details can be provided on request. Proposal We are instructed to seek offers in excess of 1,055,000 (One Million and Fifty Five Thousand Pounds) for our client s interest. A purchase at this price reflects a net initial yield of 8.00% assuming purchaser s costs of 5.80%. A purchase at this level equates to a capital value of per sq ft. Pipe Center Occupier Markets I VAT I EPC

10 Pipe Center, Unit 31 New York Way, New York Industrial Estate, Newcastle upon Tyne NE27 0QF Contact: For further information or to arrange a viewing, please contact: Misrep. Notice These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. July Designed & produced by ref:957 Adam Greenwood MRICS e: adam.greenwood@knightfrank.com t: m: Dickon Wood MRICS e: dickon.wood@knightfrank.com t: m: Knight Frank LLP St Ann s Quay 124 Quayside Newcastle upon Tyne NE1 3BD