FREEHOLD INDUSTRIAL INVESTMENT AND DEVELOPMENT LAND GIPPING WAY, STOWMARKET IP14 1EY

Transcription

1 FREEHOLD INDUSTRIAL INVESTMENT AND DEVELOPMENT LAND GIPPING WAY, STOWMARKET IP14 1EY

2 Investment Summary Important acre town centre industrial investment with development land Extensively refurbished single let 192,003 sq ft production and warehouse facility fully let to Bosch Lawn & Garden Ltd on FR&I terms with a lease expiring 01/01/2028 giving 9.8 years unexpired (5.8 years to break) with a rent review at year 5 Lease guaranteed by Robert Bosch Gmbh (turnover 73bn December 2016) Rental income of 615,000 per annum exclusive, reflecting 3.20 per sq ft overall on the unit let to Bosch 7.36 acres of additional development land with partial A1 planning consent We are instructed to seek unconditional offers in excess of 9,000,000 subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.00% and a low capital value of per sq ft on the Bosch facility and a capital value of 1,800,000 for the development land, assuming purchaser s costs of 6.68% 2

3 A1 A47 Peterborough King's Lynn A47 Norwich A146 STOWMARKET TOWN CENTRE STOWMARKET Torno Industrial Estate A14 Northampton M1 Luton A1(M) A1(M) A14 Cambridge Bishop's Stortford A14 M11 Stansted Bury St Edmunds A120 Colchester A12 STOWMARKET A14 A12 A140 Ipswich Harwich Lowestoft Felixstowe River Gipping IPSWICH ROAD GIPPING WAY NEEDHAM ROAD A1308 River Gipping Needham Road Industrial Estate NEEDHAM ROAD A1120 J50 M40 M25 LONDON Location Stowmarket is in Suffolk located on the A14 (J49 / J50) between Bury St Edmunds to the north west and Ipswich to the south east, both of which are within approximately 13 miles. Cambridge is 42 miles to the west and London approximately 89 miles south west. Stowmarket s location benefits from the strategic positioning between the port of Felixstowe 27 miles to the south east and the M11 motorway 40 miles to the west. Proximity to the A14 and major motorways provides easy access to 75% of the UK s population within a 4.5-hour drive time. Stowmarket has a district population of 99,600 (2015) and a resident population of 128,000 within a 10 mile radius. Stowmarket Railway Station is within a 10 minute walk and is served by Greater Anglia trains with a connection to Cambridge in just over an hour, and to London Liverpool Street in a fastest journey time of 1 hour 18 minutes. Situation The property occupies a highly visible and prominent site with direct access via Gipping Way (A1308), which runs north to south, through the centre of Stowmarket. Situated south of the A14 the site is accessed by car from Junction 49 or Junction 50 approximately 2 miles away. The site is less than 0.5 miles away from Stowmarket Railway Station providing access by foot in under 10 minutes. Stowmarket s main shopping and retail streets are Ipswich Street and Bury Street which run parallel to Gipping Way just 100m to the west. Key retailers include; Boots the Chemist, Argos, Asda Superstore, Carphone Warehouse, Holland & Barrett, One Stop, Barnards Volkswagen and Hughes. B&M Bargains is located directly opposite the site on Gipping Way. Between the Bosch facility and development site C are two new trade counter units let to Wickes and Travis Perkins. On the south westerly side of Gipping Way, opposite the site, is a public car park and to the south sits residential. 3

4 Description The subject property comprises an industrial facility let to Bosch Lawn & Garden Ltd, together with four development sites. The Bosch facility consists of a production, research and testing warehouse and adjoining office. The facility is of steel portal frame construction with corrugated metal clad elevations under a pitched roof. The roof has been extensively replaced on the majority of the building. The facility benefits from the following specification: Roof and guttering replaced on the entirety of the production and warehouse portion of the building Recently re-clad exterior High specification fit-out with significant investment from the tenant Suspended ceilings VRF air conditioning CAT2 recessed modular lighting throughout with an LED upgrade in progress Recently re-clad exterior 3 compartment trunking and 6 compartment service pole power provisions Additional staff facilities such as WCs and a canteen are available on site. Development sites A, B, C and D are a mixture of greenfield, scrubland and hardstanding. Site C benefits from outline planning consent for Class A1 usage. 4

5 129 GIPPING WAY FB Weir Pond CR 24 Current scheme showing proposed A1 retail (Site C) NAVIGAT El Site The total site area extends to approximately 6.66 hectares (16.44 acres). This is made up as follows: House Sheringham Court Car Park 4 El Sub Sta FB C River Gipping A B IRON FOUNDRY ROAD SL Site hectares acres A Tank H4 0 H1 B The C D Bosch ROAD Warehouse ED & Ward Bdy Masts Total Tanks 17 to 22 Previous residential scheme Iron Foundry Road is adopted by Suffolk Country Council Wickes and Travis Perkins are required to pay a fair and reasonable proportion of the costs of repair relating to the road leading from Iron Foundry Road which services Site C, Wickes, and Travis Perkins, as this is not adopted LB Canopy Office Tks El Sub Sta Tks Tks Tanks El Sub Sta 28a SL SL 27 28b A B 116 Works Tank Chy C A 1308 BRIDGE STREET D Tanks Tk Sta El Ward Bdy Tanks Tanks Drain Posts FB 5

6 A B C D View from north west of the site, showing Wickes and Travis Perkins View from south east of the site, showing Gipping Way and Bosch Development Sites A - D Sites A - D fall within the Industrial Commercial Corridor in the Stowmarket Area Action Plan, which actively encourages mixed use development. Site C benefits from existing outline planning consent for the development of two A1 retail units comprising 43,760 sq ft as well as parking, servicing and landscaping (MSDC Ref. 0396/17). In recent times the neighbouring units let to Wickes and Travis Perkins were granted consent for trade counter and retail usage within Class A1 and Suis Generis (MSDC Ref. 0885/15). Sites A, B and C have in the past had outline planning consent for a residential development scheme (MSDC Ref. 1170/06). Options to Purchase Site A - has an Option to Purchase by Mototechniks Limited at a value of 250,000 which expires 12/11/2018. Site C - had an Option to Purchase at a value of 1,000,000 by Robottom Developments Limited which expired on 30/11/2017. Robottom Developments Limited are currently seeking to renew this option. 6

7 Accommodation The Bosch facility has been measured to provide the following GIA areas: Description sq m sq ft Ground Warehouse 14, ,351 Ground Office 2,115 22,765 Other - (Canopy / Stores) 918 9,887 Total 17, ,003 Tenure Freehold. Tenancy The Bosch facility is let on full repairing and insuring terms to Bosch Lawn and Garden Ltd (company number: ) from 01/01/2018 for a term of 10 years expiring on 01/01/2028, with a tenant only break at year 6 subject to 12 months notice. The passing rent is 615,000 per annum exclusive ( 3.20 per sq ft overall) with an upward only open market rent review at year 5. The lease is outside of the Landlord and Tenant Act 1954 Part II. The lease is subject to a photographic schedule of condition. Robert Bosch Gmbh (the parent corporation incorporated in Germany) provide a guarantee to the lease. 37

8 Covenant Information Bosch Lawn & Garden Ltd has a Dun & Bradstreet Rating of 2A 1. Their latest set of financial accounts are set out below: Bosch Lawn and Garden Limited ( 000s) ( 000s) ( 000s) Sales Turnover 127, , ,035 Profit / (Loss Before Taxes) 4,374 (15,578) (502) Tangible Net Worth 5,460 (6,076) 1,645 Net Current Assets (Liabilities) 20,574 3,486 12,884 Robert Bosch Gmbh, the guarantor, has a Dun & Bradstreet Rating of 5A 1. Below is the financial summary based on balance sheet according to German HGB accounting standards. Robert Bosch Gmbh (EUR 000s) (EUR 000s) (EUR 000s) SalesTurnover 73,129,000 70,607,000 48,951,000 Profit / (Loss Before Taxes) 3,367,000 4,489,000 3,351,000 Net Current Assets (Liabilities) 18,480,000 16,891,000 17,351,000 8

9 Investment Comparables Date Address Size (sq ft) Price NIY Tenant Term Years Purchaser... (per sq ft) (Break) December 2017 Units 1-4 Venture Park, Stirling Way, Peterborough, PE3 8YD 115,327 3,810, % Greencore Food To Go Ltd. 3.2 to expiry Stenprop Ltd... ( 33.04) Bartec Auto Ltd. (0.7) Glass Systems Ltd. Not to scale, for indicative purposes only August 2017 Deeside Industrial Estate, Parkway Deeside, Flintshire, CH5 2NS 174,129 9,000, % Mondi Consumer Salmon Harvester... ( 51.96) Good Packaging UK Ltd Properties Ltd July 2017 Storeys Bar Rd, Peterborough, PE1 5YS 182,000 5,700, % Walstead Investments Ltd. 4 AEW UK REIT... ( 31.32) May 2017 RDC House, Springwood Dr, Braintree, CM7 2YN 351,167 14,450, % RDC 6.5 Aberdeen Asset ( 41.15) Management May 2017 Sywell Distribution Centre, Wellingborough Road, 291,557 9,500, % Premium Warehousing Ltd 10 Local Authorities Mutual... Northampton, NN6 0BN ( 32.58) (2.5) Investment Trust March 2017 Needham Rd, Stowmarket, IP14 2QP 199,671 11,500, % XPO Logistics 11.5 Bracknell Forest Borough... ( 57.59) Council... March 2017 Vulcan Way, New Addington, CR9 0DB 64,130 3,130, % Alliance Healthcare 1.5 Private... ( 48.80) (Distribution) Ltd. March 2017 Crownhill Business Centre, Vincent, Milton Keynes, MK8 0AB 112,732 8,450, % Multi-let on 13 leases. AWULT of 4.99 Northumberland... ( 74.96) (3.96) Estates

10 Further Information Should you have any queries or wish to make a site inspection, please contact: Richard Walden DD: richard.walden@bidwells.co.uk Andrew Groves DD: andrew.groves@bidwells.co.uk Bidwells 25 Old Burlington Street London W1S 3AN Tel: EPC The warehouse facility has been given an EPC rating of C62. The office facility has been given an EPC rating of C64. VAT The property is elected for VAT. It is assumed this transaction will be structured as a transfer of a going concern. Proposal We are instructed to seek unconditional offers in excess of 9,000,000 subject to contract and exclusive of VAT for our client s freehold interest of the whole. This reflects a net initial yield of 8.00% on the Bosch facility, and a low capital value of per sq ft, assuming purchaser s costs of 6.68%. This assumes the following development site values: Site Value A 250,000 B 300,000 C 1,000,000 D 250,000 Total 1,800,000 February

11 Bidwells 25 Old Burlington Street London W1S 3AN Tel: bidwells.co.uk IMPORTANT NOTICE Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: Nothing contained in these particulars or their contents or actions, both verbally or in writing, by Bidwells LLP form any offer or contract, liability or implied obligation to any applicants, viewing parties or prospective purchasers of the property to the fullest extent permitted by law and should not be relied upon as statements or representative of fact. No person in the employment of Bidwells LLP or any joint agents has authority to make or give any representation or warranty whatever in relation to this property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only, may not be to scale and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP has not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. All rentals and prices are quoted exclusive of VAT unless otherwise stated. Prospective purchasers may be asked to produce identification of the intended Purchaser and other documentation in order to support any conditional offers submitted to the vendors. Bidwells LLP accepts no liability of any type arising from your delay or other lack of co-operation. We may hold your name on our database unless you instruct us otherwise. OS licence no. ES Copyright Bidwells LLP Bidwells LLP is a limited liability partnership registered in England and Wales (registered number OC ). Registered office is Bidwell House, Trumpington Road, Cambridge CB2 9LD where a list of members is available for inspection. Your statutory rights are not affected by this notice.