Meridian Lightweight Technologies UK Ltd, Castlewood Business Park, Sutton in Ashfield NG17 1JF

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Carol Greer
6 years ago
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1 Prime Modern Single Let Industrial Investment Opportunity Meridian Lightweight Technologies UK Ltd, Castlewood Business Park, Sutton in Ashfield NG17 1JF A development by Clowes Developments (UK) Ltd for Meridian Lightweight Technologies UK Ltd

Investment Summary High quality modern industrial unit completed in 2012. The unit extends to approximately 60,365 sq ft (5,608.1 sq m) GIA. Site area of approximately 2.

Guaranteed by Meridian Lightweight Technology Holdings Inc. Current rent of 318,000 p.a. ( 5.27 psf).

This reflects an attractive net initial yield of approximately 7.25% after allowing for purchasers costs of 5.8%. Location Castlewood Business Park is located in the county of Nottinghamshire.

2 Investment Summary High quality modern industrial unit completed in The unit extends to approximately 60,365 sq ft (5,608.1 sq m) GIA. Site area of approximately 2.94 acres reflecting an overall site coverage of approximately 47%. Freehold. Let to Meridian Lightweight Technologies UK Ltd on a year FRI lease expiring 26th May Guaranteed by Meridian Lightweight Technology Holdings Inc. Current rent of 318,000 p.a. ( 5.27 psf). Offers are invited in excess of 4,145,000 (four million, one hundred and forty five thousand pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of approximately 7.25% after allowing for purchasers costs of 5.8%. Location Castlewood Business Park is located in the county of Nottinghamshire. It occupies a prominent and strategic location adjacent to Junction 28 of the M1 on the east side of the motorway at Sutton-in-Ashfield. It is a prime distribution location, between the key centres of Nottingham 14 miles to the south, Derby 16 miles to the south-west, and Sheffield 20 miles to the north. The Park benefits from excellent road communications. It is located at the intersection of the M1 (Junction 28) and the A38 trunk road, providing swift access to the wider motorway network and the surrounding towns. The A38 provides direct access westbound to Derby, Burton on Trent, Birmingham and the South West; and Mansfield to the east. Castlewood Business Park also benefits from good rail and air transport links. Alfreton railway station is located 2 miles to the west of Junction 28 and provides a direct rail service to London St Pancras with a fastest journey time of 2 hours and 7 minutes. East Midlands Airport is located 23 miles to the south, adjacent to Junction 24 of the M1. Situation Castlewood Business Park is a premier distribution park totalling 112 acres, which upon completion will provide approximately 1.6 million sq ft of industrial/distribution warehousing. Clowes Developments acquired the scheme in Since the aquisition they have completed the infrastructure, servicing and plateuing, allowing them to procure and then quickly deliver occupier requirements. CWC have so far attracted occupiers including Co-Op Food (480,000 sq ft), Midland Aerospace (40,000 sq ft) and now Meridian. The site is accessed off the A38 dual carriageway. The Park s entrance is by way of a traffic light controlled Junction which is approximately 1.5 miles from Junction 28 of the M1. Castlewood Business Park is within an established logistics market, with Amber Park at South Normanton being situated immediately to the north. Notable occupiers in the vicinity include UDG, Aero Matrix, Alliance Healthcare, Diversey, Citi Post, Appliances Direct, TDG and Meridian Packaging. The Renaissance Hotel and a Premier Inn are located in proximity on the north side of the A38. A wide offering of retail, restaurant and leisure facilities are located in proximity at the McArthur Glen East Midlands Outlet Village. THE PROPERTY A low capital value of psf. This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. The plan is based upon Ordnance Survey Map with the permission of the Controller of H M Stationery Crown Copyright.

Description The property comprises a 60,365 sq ft (5,608.1 sq m) GIA high quality, modern, single storey manufacturing facility, which was completed in November 2012.

The floor is made from reinforced concrete, and is designed with a ground floor slab loading capacity of 50kN/m2 in the warehouse area.

3 Description The property comprises a 60,365 sq ft (5,608.1 sq m) GIA high quality, modern, single storey manufacturing facility, which was completed in November The unit is of steel portal frame construction with micro-rib flat panel clad elevations and profiled aluminium sheet roofing. The floor is made from reinforced concrete, and is designed with a ground floor slab loading capacity of 50kN/m2 in the warehouse area. The unit has a low pitched roof with approximately 10% roof lighting. The warehouse also benefits from gas-fired fan heating and halogen spot lighting. The unit has a minimum eaves height of 10 metres (32' 10"). The unit is accessed via three electric level access loading doors, with a clear height of 5 metres (16' 5"), two of which are under canopy. The canopy benefits from a clear height of 5.26 metres (17' 3"). The office accommodation is arranged over the ground floor. The offices benefit from suspended ceilings and category II lighting. The heating and cooling is provided by DX refrigerant ceiling void mounted fan coil units, with the heat pump condensing unit located adjacent to the building. The unit benefits from 55 car parking spaces, and 9 motorbike parking spaces. The image above is a computer generated image illustrating Castlewood Business Park at completion. Accommodation The property has been measured on a Gross Internal Area (GIA) basis in accordance with the RICS Code of Measuring Practice (6th Edition) as follows: Floor Area (sq m) Area (sq ft) Warehouse 5, ,584 Offices ,781 Unit GIA 5, ,365 Re-cycled Material Store * ,161 Loading Canopy * ,678 Total 6, ,204 * Not rentalised.

Tenancy The entire property is let to Meridian Lightweight Technologies UK Limited (Company registration no. 06614978) and guaranteed by Meridian Lightweight Technologies Holdings Inc.

4 Site The scheme extends to approximately 2.94 acres (1.19 hectares) which reflects an overall site coverage of approximately 47%. Tenure Freehold, but subject to the right of way over the common drive as shown in orange on the plan below. Tenancy The entire property is let to Meridian Lightweight Technologies UK Limited (Company registration no ) and guaranteed by Meridian Lightweight Technologies Holdings Inc. from 26th November 2012 for a term of 15 1 /2 years on full repairing and insuring terms. The current rent is 318,000 p.a. and will be reviewed every five years from the commencement of the lease, as a 60,000 sq ft unit, on an upwards only basis to the open market rental value. Tenant Information Meridian Lightweight Technologies UK Limited (Company registration No ) is part of the Meridian Group, a world leader in the design, engineering and production of high quality magnesium die cast components for the global automotive market. They are the world s largest producer of magnesium components, with a client book that is a virtual who s who of the automotive industry. Their clients include Jaguar Land Rover, BMW, Mercedes Benz, VW, Ford, Fiat, DaimlerChrysler and Shanghai General Motors. The company has manufacturing facilities and business development centres in the United Kingdom, United States, Canada, Germany, Italy, France, China and Japan. In early 2010, Meridian Lightweight Technologies received Automotive News PACE award, a prestigious recognition that spotlights automotive suppliers that demonstrate superior innovation, technological advancement and strong business performance. The last 3 years accounts are summarised below: (000 s $CAD) Audited accounts for Meridian Lightweight Technologies Holdings Inc. are available on request. Plant & Machinery None of the systems or equipment has been tested by Cushman & Wakefield and purchasers may wish to make their own investigations to check that they are in working order. Planning 31st December st December 2010 Revenue 414, ,227 Net Income 8,259 10,024 Stockholder s Equity 274, ,626 The subject property has planning for employment uses (B1, B2 & B8), as granted by Ashfield District Council on 11th April Application Reference No: 2012/ st December st December st December 2009 Turnover 25,176,000 18,877,000 14,446,000 Pre-Tax Profit 66,000 25, ,000 Net Worth 2,186,000 2,120,000 2,095,000 Further information on Meridian Lightweight Technologies can be found on their website: The parent company and guarantor is Meridian Lightweight Technologies Holdings Inc. The last two years of accounts are shown opposite. All figures are shown in thousands of Canadian Dollars. This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds.

Investment Comparables Date Property Purchaser Lease Term Price NIY Capital Value psf INVESTMENT SALES GROUP CONTACTS Dec 2012 HobbyCraft, Centrum 100, Burton-upon-Trent LaSalle IM 15 13,720,000 6.

5 Investment Comparables Date Property Purchaser Lease Term Price NIY Capital Value psf INVESTMENT SALES GROUP CONTACTS Dec 2012 HobbyCraft, Centrum 100, Burton-upon-Trent LaSalle IM 15 13,720, % Dec 2012 Brakes Brothers, Grantham Hermes 25 11,250, % Nov 2012 Royal Mail, Peterborough Private 19 12,950, % Jun 2012 West Ferry Printers, Luton Greater Manchester Pensions Fund ,700, % Jun 2012 Chesapeake, Tewkesbury Business Park AJ Mucklow 15 3,950, % 61,38 Dec 2011 Snow & Rock Sports, Guildford Threadneedle 15 5,230, % Meridian Lightweight Technologies UK Ltd, Castlewood Business Park Sutton in Ashfield NG17 1JF Investment Rationale We believe this opportunity is an attractive investment for the following reasons: Strong property fundamentals Modern unit developed to a high standard Strong income security from an established international covenant for approximately 15 years VAT We understand this property has been elected for VAT which will therefore be chargeable on the sale price unless the transaction can be treated as a Transfer of a Going Concern (TOGC). Warranties Warranties will be transferable from the Contractor, Architects and Engineers together with the Sub Contractors with design responsibilities. Capital Allowances We understand that no capital allowances have been claimed for the subject property. Proposal We are instructed to seek offers in excess of 4,145,000 (four million, one hundred and forty five thousand pounds) subject to contract and exclusive of VAT for a freehold interest. A purchase at this level would reflect a net initial yield of 7.25% after allowing for purchaser s costs of 5.8%, and this equates to a capital value of psf. For further information or to arrange an inspection please contact: MIKE BURDEN Tel: Fax: mike.burden@eur.cushwake.com ADAM McMILLAN Tel: Fax: adam.mcmillan@eur.cushwake.com TOM HESP Tel: Fax: tom.hesp@eur.cushwake.com Cushman & Wakefield LLP 43/45 Portman Square London W1A 3BG MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required.

photographs can also be found. The address is: w.cushmanwakefieldinvestmentsales.co.

6 Web Access These property details are available on our website where further information including the legal and title information, environmental survey, EPC, maps, plans and photographs can also be found. The address is: w.cushmanwakefieldinvestmentsales.co.uk/ cw/castlewood Energy Performance Certificate

Azalea Close. Azalea Close. Long Let Warehouse Investment Opportunity. Unit 2. Clover Nook Industrial Estate Alfreton Derbyshire DE55 4QX.

Azalea Close. Azalea Close. Long Let Warehouse Investment Opportunity. Unit 2. Clover Nook Industrial Estate Alfreton Derbyshire DE55 4QX. Clover Nook Industrial Estate Alfreton Derbyshire DE55 4QX Investment Summary Distribution warehouse unit located on Clover Nook Industrial Estate in Alfreton, Derbyshire Situated adjacent to the A38