FREEHOLD MULTI-LET INDUSTRIAL ESTATE LONLAS BUSINESS PARK, NEATH, SA10 6RP

Transcription

1 FREEHOLD MULTI-LET INDUSTRIAL ESTATE, SA10 6RP

2 INVESTMENT CONSIDERATIONS Well located industrial estate only 1 mile from Junction 44 of the M4 motorway. Multi-let to a range of occupiers, including over 50% let to Neath Port Talbot County Council. Low rents from 1.67 ft 2 upwards, with the opportunity to refurbish/re-let at at significantly higher values. Range of unit sizes, offering good scope for asset management. Longer term alternative use potential given the proximity of residential on two sides. 2.75m reflects an attractive net initial yield of 9.4%. Reversion to over 10% upon letting the two vacant units.

3 LOCATION Lonlas Business Park, is located just off Junction 44 of the M4 Motorway, approximately 6 miles northeast of Swansea and 2 miles from Neath town centre. The M4 provides easy access to Cardiff, Bridgend and all parts of South Wales, while the A465 Heads of the Valleys Road provides good links to Merthyr, the South Wales Valleys and the M50. SITUATION The business park is situated off Lucy Road which connects with the A4230. This links directly to Junction 44 of the M4 motorway, approximately 1 mile to the west. The surrounding area is predominantly residential in nature, while mainline railway services and local valley trains are available in Neath. DESCRIPTION The business park comprises two terraces of industrial units, a large warehouse which has been sub-divided to create Lonlas Village Workshops and a separate small industrial unit to the front of the estate. Built in the 1960 s the units are generally of steel portal frame construction with brick elevations. A number of units have been refurbished and benefit from profiled coated metal cladding and coated metal roof sheets. The majority of the units have either single or two storey office accommodation at the front and we understand that all main services are available. The total site area is approximately 2.60 hectares (6.42 acres). TENURE Freehold, subject to the occupational leases. Units 7, 13 and 14 have previously been sold on a freehold basis.

4 TENANCIES The estate is let to a range of occupiers as set out in the following tenancy schedule. UNIT TENANT AREA LEASE LEASE BREAKS NEXT RENT RENT RENT COMMENTS SQ FT START EXPIRY REVIEW (p.a) (psf) 1 Vacant 2, Exempt from vacant business rates 1 April March Skewen Tyre & Auto 6,318 08/04/ /04/ , Centre Ltd 3 Vacant 5, , 5 & 6 Stadium Accidental Repair 17,923 03/09/ /09/ /09/ /09/ , Rent increases on 03/09/09 to Centre Ltd 52,250 pa ( 2.92 psf) 8 Clarke Coatings (UK) Ltd 5,812 22/07/ /07/ /07/ /07/ , Lease guarantee from C R Clarke & Co (UK) Ltd 9 P & H (1925) Ltd 5,914 02/01/ /01/ /01/ , Rent review outstanding 10 & 11 Ralph & Doherty Building 11,600 12/06/ /06/ , Contractors Ltd 12 Alan John Harris 5,864 31/01/ /01/ /01/ /01/ , /16/17/18 Neath Port Talbot County 71,943 05/05/ /05/ /05/ , Rent review outstanding Council Unit sub-let by the council to a range of undertenants. TOTAL 133, ,085

5 SERVICE CHARGE The current service charge budget for the estate is 24,700 ( ), which equates to approximately 0.17 ft². Each tenant is directly responsible for mains services - further details are available upon request. We understand that all leases allow for full recovery of this estate service charge, which allows for maintenance of all common parts. ESTIMATED RENTAL VALUE The passing rent is currently 273,085 per annum exclusive which equates to a low average rent of 2.05 ft². The most recent letting on the estate is the letting of units 4,5 & 6 to Stadium Accident Repair in September 2008, at a headline rent of 2.92 psf after a concessionary rent in year 1. Other lettings in the area include: Seaway Parade Industrial Estate, Port Talbot 4,551 ft 2 industrial unit let to Robert Price Builders Merchant in May New 3 year FRI lease at 4.21 ft 2. Pipehouse Wharf, Morfa Road, Swansea 2,819 ft 2 industrial unit let to Swansea Sea School in May New 5 year FRI lease with 3 year break at 4.55 ft 2. VAT We understand the property is elected for VAT and hence the sale can be treated as a transfer of a going concern (TOGC).

6 PROPOSAL We have been instructed to seek offers of 2,750,000 (Two Million Seven Hundred and Fifty Thousand Pounds) for our client s freehold interest in the above property, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.4%, assuming purchasers costs at 5.75%. FURTHER INFORMATION For further information or to arrange an inspection, please contact the sole agents; Jonathan Phillips King Sturge LLP Haywood House Dumfries Place CARDIFF CF10 3UE Tel: Fax: jonathan.phillips@kingsturge.com Crown Copyright All rights reserved. Promap licence number King Sturge licence number This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. MISREPRESENTATION CLAUSE. The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the Property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property. Subject to Contract Exclusive of VAT January 2009