Investment Sale Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ. Prime Industrial Investment Opportunity

Transcription

1 Investment Sale Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ Prime Industrial Investment Opportunity

2 Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ Investment Summary Located on Trafford Park, Manchester; a prime industrial location in the UK. J built, high specification, self contained distribution warehouse benefiting from 12 metre eaves, 6 dock loading doors and 2 level access doors. A5081 A5081 Comprising a total area of 62,563 sq ft (5, sq m). Barton Dock Road Norbert Dentressangle Long leasehold interest with 944 years unexpired at a peppercorn rent. DHL Kuehne & Nagel Adidas Let to UTi Worldwide (UK) Limited for a further 6 years at a passing rent of 326,650 per annum. ICOPAL Secured against the excellent covenant of UTi Worldwide Inc. Think Money Kellogg s Kellogg s Biffa Low passing rent of only 5.22 per sq ft providing excellent prospects for growth. Offers are sought in excess of 3,860,000 (Three Million Eight Hundred and Sixty Thousand pounds) equating to a net initial yield of 8.00% after allowing for purchasers costs of 5.8%. The property is held in an SPV, which can be made available to the purchaser. Further details can be provided on request.

3 Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ A676 A58 A627 A56 A666 M61 A663 A56 A665 A580 A580 A576 A62 A5081 A57 M62 A5103 A34 A57 A560 A56 M56 A34 A635 A57 A6010 A6 A627 A670 M67 A627 A6 A6018 A57 A Humphrey Urmston Park Church Rd Barto n Rd B158 Lostock Rd Crofts Bank Rd Barton Rock Rd B5 211 Barton Dock Rd 9 Stretford Rd Park Way A5081 Barton Rd B5213 Urmston L n 8 7 Village Way A5081 A5181 Mosley Rd A5181 A5181 Trafford Park Derbyshire Ln A5145 Wharfside Way Stretford Edge Ln A56 Chester Rd A56 A5014 Crown Copyright All rights reserved. Not to scale. Location Manchester is acknowledged as the capital of the North of England and is the largest English financial centre outside of London. The city is located approximately 55km (34 miles) east of Liverpool and 77km (48 miles) south west of Leeds, 130km (81 miles) north west of Birmingham and 309km (192 miles) north west of London. Trafford Park is one of the largest industrial estates in Europe and is considered a primary focus for a wide variety of businesses both locally and nationally. Trafford Park is a substantial employment area and has a large range of companies involved in manufacturing, storage, distribution and retail. Trafford Park is strategically situated 1.28km (0.8 miles) from Jct 9 of the motorways, providing excellent access to the national motorway network. Regular rail services direct to London Euston are available from Manchester Piccadilly with a journey time of approximately 2 hours and 7 minutes. Key to the economy in the region is Manchester Airport; the UK s largest regional airport outside London. Currently serving 22 million passengers, Manchester Airport provides direct flights to 220 destinations worldwide. It is also a strategic hub with the Manchester Freight Terminal being the UK s largest regional freight terminal and is within 1 mile of the property. Situation Merlin Park is prominently situated along Barton Dock Road, one of the main estate roads through Trafford Park. Situated just a short distance from Parkway (A5081), the property is ideally located just 0.8km (0.5 miles) from Junction 9 of the and 5.6km (3.5 miles) from Jct 2 of the 2. Parkway (A5081) also provides further access to the A56 Chester Road at Old Trafford which has a direct link into Manchester City Centre which lies within approximately 5.6 km (3.5 miles). The Metrolink extends to the eastern fringe of Trafford Park. Trafford Park attracts a mixture of local and national occupiers including Kellogg s, Wincanton, Proctor & Gamble and Excel Logistics. The immediate area of Merlin Park is enhanced by the Trafford Centre, a 1.8 million sq ft shopping Centre surrounded by occupiers such as Asda supermarket, B & Q and a regional sports complex. The park also benefits from the largest rail freight terminal in the north west of England, which is situated just 1 mile from the property. The terminal handles over 100,000 containers per annum with point of access to the whole of the UK and mainland Europe. Description The property comprises a high specification industrial unit totalling approximately 62,563 sq ft (5, sq m). Constructed in 2007, the property provides a single storey warehouse unit with additional first floor office accommodation. The warehouse is of steel portal frame construction with profiled steel sheeting to the elevations, beneath a pitched metal roof. The warehouse has a clear eaves height of approximately 12 metres, floor loading of 65 KN per sq metre, 3 phase electricity and with 6 dock level loading doors and two level access doors. Externally, the property benefits from a large yard area for loading and includes a delineated car parking area. Site The site is regular in shape and extends to approximately 1.24 hectares (3.07 acres). The yard area provides ample loading areas, HGV storage and 66 car parking spaces. The site is secured by high mesh fencing at the perimeter and benefits from access off The Merlin Park estate.

4 Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ Accommodation The property provides the following approximate gross internal floor areas: Unit Demise Sq M Sq Ft Unit 1 Warehouse 5, ,673 Unit 1 Ground floor offices ,445 Unit 1 First floor offices ,445 Total 5, ,563 Tenure The property is held long leasehold for a term of 950 years commencing on 1st January 2006 at a peppercorn rent from Merlin Trafford Park Limited. Tenancy The property is let in its entirety to UTi Worldwide (UK) Ltd by way of a 10 year lease from 10 April The lease is drafted on full repairing and insuring terms. The tenant recently agreed to remove their 2013 break, securing a further 6 years term certain until lease expiry in In exchange, the tenant will benefit from a half rent for 12 months (to be topped up by the vendor). Upon expiry of the half rent period the rent will be 326,650 per annum ( 5.22 per sq ft). The tenant also provided a guarantor to the lease of UTi Worldwide Inc., a company with total assets in excess of $2 billion. Covenant UTi Worldwide (UK) Limited (Co. No ) was incorporated in 1989 and their principle operation is freight forwarding, supply chain management and logistics for air transport activities. We provide a summary of their most recent financial information as follows: YTD Turnover Pre Tax Profit Net Worth 31/01/ ,265,243 ( 3,158,381) ( 30,090) 31/01/ ,072,909 ( 2,546,991) ( 498,628) The guarantor is UTi Worlwide Inc. (Co. No ) who provide excellent covenant strength and we provide a summary of their most recent financial information as follows: YTD Revenue $000 s Net Income $000 s Total Assets $000 s 31/01/2011 $4,549,773 $69,903 $2,112,705 31/01/2010 $3,567,522 $41,114 $1,937,546 Rental Market Commentary During 2011, the national industrial and distribution market witnessed an active year with strong demand across all size ranges of buildings. Take up nationally was 101m sq ft and broadly in line with 2010 which represented a significant increase of approximately 18% on Throughout 2011, the supply of grade A space continued to tighten, falling to its lowest level in five years. Unit 1 Merlin Park comprises a high specification high bay warehouse in Manchester s prime business location. The availability of similar grade A accommodation in the north west has taken a dramatic decline in the last 12 months, by approximately 40% throughout the region reflecting continued take up of space from the occupier sector and the complete dearth of new development, but also the limited amount of good quality second hand space that has come to the market. The property benefits from being detached, having a dedicated self contained yard and separate car parking facility. This combined with a mix of dock loading and level access entry doors and excellent eaves height conforms to all the requirements of current occupiers. The availability of good quality development land within Trafford Park itself is extremely limited, with the last two remaining plots of land having been recently acquired by owner occupiers. The only prospect of new development for industrial space in Trafford Park is the demolition of existing buildings to release further land. In terms of competing buildings there is only one building of a similar specification currently available which is at Centenary Way, Trafford Park which is on the market at 5.75 per sq ft. The rental cycle for industrial accommodation in Manchester peaked in 2007 at 6.25 per sq ft. The subject property has recently had the rent rebased to 5.22 per sq ft and consequently we believe that the property offers excellent prospects for rental growth in the short term due to the lack of competing grade A stock in the market. Furthermore the IPD UK Property Model forecast, anticipates rental growth for the Manchester Industrial sector to equate to an annual equivalent of 2.2% per annum from 2012 to 2016.

5 Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ Investment Commentary The industrial investment market is showing strong demand for quality modern buildings in prime distribution areas. We have highlighted the notable transactions below: Address Date Area Lease Terms Price Yield (NIY) Purchaser Comments Unit 1 Broadway 21, Oldham Broadway Business Park, Manchester Feb ,348 sq ft Prologis Park, Coventry Nov ,500 sq ft Expiring January years unexpired 9.0m 7.75% South African Private 3.52m 8.00% UK Institution Passing rent equated to 4.00 per sq ft Let to Palm recycling Environmental Our client obtained a phase I environmental survey in May 2010 which awarded the property a low risk classification. An energy performance certificate for the property is attached. VAT We understand the property is elected for VAT and it is anticipated the sale will be treated as a TOGC. Railths Land Estate, Aberdeen Sep ,470 sq ft Selco Unit, Omega Park Birmingham Macfarlane Unit, Trafford Park, Manchester July 2011 March ,964 sq ft 40,017 sq ft 4 years unexpired 20 years unexpired Expiring Nov m 6.95% 3.91m 6.73% 2.57m 8.00% BRT Properties Ltd Hilltop Properties F&C Reit Asset Management Opus 9, Wednesbury Jan ,000 sq ft Break Jan m 8.90% UK Institution Let to Siemans Plc Let to Selco at a rent equating to 7.35 per sq ft Rent passing equated to 5.45 per sq ft Passing rent equated to 5.50 per sq ft Proposal Offers are sought in excess of 3,860,000 (Three Million Eight Hundred and Sixty Thousand pounds) equating to a net initial yield of 8.00% after allowing for purchasers costs of 5.8%. The property is held in an SPV, which can be made available to the purchaser. Further details can be provided on request.

6 Unit 1 Merlin Park, Barton Dock Road, Trafford Park, Manchester M32 0SZ Contacts For further information and to arrange an inspection please contact:- Lambert Smith Hampton Lambert Smith Hampton United Kingdom House 6th Floor 180 Oxford Street 3 Hardman Street London W1D 1NN Spinningfields Manchester M3 3HF Charlie Lake Abid Jaffry clake@lsh.co.uk ajaffry@lsh.co.uk Nick Lloyd nlloyd@lsh.co.uk Additional information on the property can be obtained from: Subject to Contract and Exclusive of VAT Lambert Smith Hampton May 2012 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.

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