MULTI-LET INDUSTRIAL INVESTMENT. Units 1-7 Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW

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1 MULTI-LET INDUSTRIAL INVESTMENT Units 1-7 Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW

2 Havant - Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW Investment Summary Multi-let, high yielding industrial investment in an established location 1.5 acres 21,452 sq ft of industrial buildings Asset management and development potential Held on two separate ground leases from Havant Borough Council Net rental income of 114,528 per annum Reversionary to 132,142 pa. Offers sought in excess of 1,000,000 (One Million Pounds), subject to contract and exclusive of VAT High net initial yield of 10.83% assuming purchaser s costs of 5.75% Reversionary to 12.50%. Low capital value of 47/ sq ft Low site cover at 33% 2

3 Location Havant - Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW The properties are located in Havant in the County of Hampshire, approximately 11 miles west of Chichester, 7.5 miles east of Portsmouth and 79 miles south of London. Havant town is situated on the A27 which provides access along the South Coast as well as to the A3 (M) and M27 to the west. Southampton International Airport is located 23 miles to the west and Havant railway station provides regular direct train services to London Waterloo in approximately 1 hour 20 minutes. Situation The site is situated on Southmoor Lane which runs adjacent to the A27 and is approximately 1 mile south of Havant town centre, 1 mile east of it s junction with the A3 (M) and 4.5 miles east from the M27 Motorway. The properties are within close proximity to Langstone Technology Park which provides approximately 650,000 sq ft of multi let office and industrial accommodation. Local occupiers of note include SSE, Coopers Fire, Faruno, Interlink Express, Apollo, Nationwide Crash Repairs and Lewmar. 3

4 Havant - Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW Description Beaver Industrial Estate comprises a terrace of five industrial units (Units 1-5), situated to the north side of the estate road, and two further semi-detached units (Units 6-7) to the eastern end of the estate road. The buildings are of steel framed construction, with brick and blockwork infill walls and metal profile cladding, under pitch metal clad roofs. Unit 28 is a substantial detached, steel framed, brick and metal profiled clad industrial unit with ancillary offices, under a pitched corrugated asbestos roof. To the west of the site is staff car parking, and to the east of the site is a secure yard with palisade fencing providing further car parking. 4

5 Accommodation and Tenancies Units 1-7 Beaver Industrial Estate Units Tenant Lease Type Unit 28 and land to the rear of 2 Southmoor Lane Sq Ft Term Start Date Expiry Review Rent Rent psf EPC Experian credit score 1&2 Future Fire Solutions Ltd FRI 2, /03/ /03/2019 n/a 15, E /100 Comments Fixed rent increase to 16,000 pa in March Schedule of condition. Rent Deposit Security Deed. 3 Haydan Contstruction Ltd FRI 1, /03/ /03/2018 n/a 7, E /100 Schedule of condition. 4 Mr Manghan T/A The Coffee Co FRI 1, /11/ /11/2018 n/a 9, E 108 n/a Schedule of condition. 5 Protool manufacturing Ltd FRI 1, /01/ /01/ /01/2018 8, G /100 6 Protool manufacturing Ltd FRI 1, /01/ /01/ /01/ , E /100 7 Protool manufacturing Ltd FRI 1, /01/ /01/ /01/ , E /100 Total 9,714 71, Ground Rent Payable ( 13,752) Net Rent 58,098 Tenants break option 30/07/18 New insulated roof installed Tenants break option 30/07/18 New insulated roof installed Tenants break option 30/07/18 Units Tenant Lease Type Sq Ft Term Start Date Expiry Review Rent Rent psf EPC Experian credit score 28 Aegina Technologies Ltd FRI* 11, /09/ /09/2022 n/a 80, F /100 Rear of 28 Nationwide Crash Repair Centres Ltd FRI 7,750 Site Area 5 17/12/ /12/2021 n/a 10, D /100 Total 90,250 Ground Rent Payable ( 33,820) Net Rent 56,430 Comments Schedule of condition. *Roof excluded from repairing obligations. Lease for hard surfaced car park, subject to annual rolling breaks. 5

6 5 Havant - Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW SOUTHMOOR LANE SS 20m 30m El Sub Sta Works 2a ESS Tank (cov) Tenure The properties are held by way of two long leasehold interests: Beaver industrial estate is held on a long leasehold for a term of 125 years (less three days) from 25 March 1981 (88.7 years unexpired). The ground rent is 13,752 pa, which is calculated as 18% of the rack rental value of the properties. The rent reviews are every three years of the term. Unit 28 is held on a long leasehold for a term of 99 years from 1 September 1971 (53.1 years unexpired). The ground rent is currently 33,820 pa which is calculated as the rack rental value of the land excluding any buildings. The next rent review is in Rental Levels The most recent lettings at Beaver Industrial Estate were in Rental levels for industrial accommodation have improved significantly in the last 2 years within the region and there is evidence of lettings for small units at in excess of 10 psf. Based upon an ERV of 9 psf for the units at Beaver Industrial Estate this would increase the net income to 132,142 pa and give a reversionary net yield of 12.50%. VAT The properties are elected for VAT; it is proposed they be sold by way of a Transfer of Going Concern (TOGC). 6

7 Further information All inspections must be arranged through the sole selling agents. Russell Miller Marcus Chuter Proposal Offers are sought in excess of 1,000,000 (One Million Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 10.83%, assuming purchaser s costs of 5.75% and a low capital value of 47/ sq ft. Vail Williams LLP Savannah House 3 Ocean Way Ocean Village Southampton SO14 3TJ Dataroom Supporting documentation including Energy Performance Certificates relating to the properties is available in the Data room for access please contact Liz Dixon on ldixon@vailwilliams.com MISREPRESENTATION ACT 1967 Vail Williams as for the vendors themselves give notice that: 1) These particulars do not constitute an offer, or contract or any part thereof. 2) The statements contained in the particulars are made in good faith but are issued without responsibility on the part of Vail Williams or vendors and are not to be relied upon as statements or representations of fact. 3) Intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements made herein. 4) The vendor does not make or give, nor is Vail Williams or its staff authorised to give, any representation or warranty in respect of the property. 5) All negotiations are subject to contract and exclusive of VAT unless otherwise specifically stated. October Havant - Beaver Industrial Estate and 28 Southmoor Lane, Havant, Hampshire, PO9 1JW