FREEHOLD SECURELY LET WAREHOUSE INVESTMENT WARBURTONS LTD, BRUNEL WAY, THETFORD, NORFOLK IP24 1HP

Transcription

1 FREEHOLD SECURELY LET WAREHOUSE INVESTMENT WARBURTONS LTD, BRUNEL WAY, THETFORD, NORFOLK IP24 1HP

2 Investment Summary Warehouse investment located on one of Thetford s main industrial estates close to the. The site provides hectares (2.75 acres) and has a low site cover of 21%. The property comprises 2, sq m (27,371 sq ft) Recently over sheeted roof Let entirely to Warburtons Ltd (5A1 covenant with a turnover of over ½ billion) until November years unexpired Total income of 130,000 per annum ( 4.25 per sq ft for the warehouse, based on 25,000 per acre for the additional yard area assuming 40% site cover) Offers in excess of 1,530,000 for the freehold interest, subject to contract and exclusive of VAT. This reflects a net initial yield of 8%, based on standard purchaser's costs of 6.11% Low capital value rate of per sq ft 2

3 A1 Luton M25 M1 Peterborough A1 A1M A14 A17 Huntingdon Cambridge Harlow M25 LONDON Heathrow Brunel Way Industrial Estate BRUNEL WAY A10 Ely M11 A1066 MUNDFORD ROAD A A142 Stansted King s Lynn A148 A1065 Lakenheath Brandon Mildenhall 01 Newmarket A12 Fison Way Industrial Estate FISON WAY A134 A14 THETFORD Bury St. Edmunds Felixstowe Harwich Ipswich Norwich A12 Location Thetford is the third largest town in Norfolk, with a population of about 24,340 (2011 Census), showing growth of circa 14.5% since the 2001 Census. The town is situated close to the Norfolk/Suffolk border and lies about 29 miles to the south west of Norwich, 35 miles north east of Cambridge and 80 miles north east of London. Thetford has comprehensive transport links. It is adjacent to the dual carriageway, which was fully dualled in December It links Norwich with Newmarket, Cambridge (via the A14) and London (via the M11). The town has a train station on the Ely-Norwich railway line and is served by regular trains to Norwich, Ely, Cambridge, Peterborough, Manchester and Liverpool with connecting trains to London Liverpool Street. Stansted Airport is located approximately 55 miles to the south west. The economic boost to the area as a result of the dualling of the is anticipated to exceed 600 million and Thetford is one of the towns that has seen significant benefit from the completion of the road. Thetford was awarded Growth Point Status in 2006 and is anticipated to grow by 66% to 2021, having been earmarked for 6,000 Situation Brunel Way is an established industrial estate on the north side of Thetford and situated on the west side of Mundford Road and west of Fison Way Industrial Estate. Both estates are within a short distance of, and are signposted from, the, which gives access to the national motorway network. The property fronts the north side of Brunel Way about 200 metres to the west of the intersection with new homes and 5,000 new jobs. In order to facilitate this growth, large scale inward investment was planned, both private and grant funded, with the regeneration of the station, bus station and riverside leisure area. These latter two projects have been implemented; the new bus station opened in February 2015 and the riverside redevelopment is complete and provide a new The Light cinema, Travelodge hotel and five restaurants/bars. Thetford will also benefit from the formation in 2016 of the Cambridge Norwich Tech Corridor. The partnership was formed to help promote business and innovation along the link road between the two cities, with the aim of stimulating 500m of new investment. The corridor is home to 23,838 digital tech jobs and is aimed at building upon the sector specialisms of software, data management, financial services, agri-tech, biotech and health/life sciences. Mundford Road. The estate enjoys a high occupancy rate and nearby occupiers include Century Logistics, opposite the property, Team KnowHow, Star Transport and Wiser Recycling. Also on Mundford Road are a selection of car showrooms with representation from KIA, Ford, Nissan and Volvo as well as TNT and Brewers. Not to scale, for indicative purposes only. Thetford 3

4 Description The property comprises a warehouse with two storey offices to the front. The unit is of steel framed construction with cavity wall infill under pitched roofs which have recently been over sheeted. The front offices are of cavity wall construction under a flat roof. The tenant occupies the unit for the distribution of bread which is baked off site and delivered daily from this unit. In order to suit its requirements, the tenant has refurbished part of the warehouse and the floor has been raised to enable the creation of nine dock level loading doors along the rear elevation and recent roof works undertaken by the tenant (for which they received a contribution from the landlord) include new Plasticol roof sheets, roof lights and guttering. The rear wall to the building has also been moved in to create a loading canopy. Part of unit 18 has not been fitted out and is used for general storage. In this section the eaves height is 3.3 metres (10 10 ). Where the floor has been raised by the tenant the eaves height reduces to 2.11 metres (6 11 ). The offices are functional and have a mix of suspended and plastered ceilings, a mix of Category 2 and fluorescent strip lighting, some perimeter data trunking and are heated by gas fired central heating with radiators. Front elevation View of warehouse Rear elevation View of offices 4

5 Yard Yard Rear car/truck park Site Track Accommodation The site has car parking for around seven cars to the front. The rear yard has been divided to provide extensive car, van and lorry parking. The main yard is concrete covered and fenced and there is also a lower area with ramped access to the north west corner. The owner of Unit 20 has a right of way as per the hatched area of the plan. Tanks Tanks 18 16a 16 Tank El Sub Sta 12 to The property provides the following approximate gross internal area: Description Sq m Sq ft Ground Warehouse 2, ,205 Ground Office ,772 First Office ,394 Total 2, ,371 Tenure The total site area extends to approximately hectares (2.75 acres) and has a low site cover of just 21% to Legend Right of Way in favour of adjoining Unit 20 Right of Way in favour of subject property The property is held freehold as shown edged red on the plan. The subject property has a right of way over part of the front of the adjoining Unit 20, as shown green on the OS plan and the adjoining Unit 20 has a right of way over the subject property, as per the hatched area on the plan. 35

6 Tenancy The property is let on a single full repairing and insuring lease to Warburtons Ltd for a term of 5 years from 19th May 2016, expiring 18th May 2021 at a rent of 130,000 per annum, which is subject to a photographic schedule of condition. The lease is excluded from security of tenure provisions of the Landlord and Tenant Act The rent reflects 4.25 per sq ft for the warehouse, based on 25,000 per acre for the additional yard area, assuming 40% site cover. The tenant has completed a reversionary lease with no reviews, on expiry of the existing lease, which expires on 19 November This included a contribution from the landlord for roof works undertaken to the property. Under a Licence to Alter dated July 2013, the tenant undertook extensive internal and external works described above. The license includes tenant reinstatement provisions. There are two schedules of condition, which will be qualified by a new schedule of condition to reflect recent roofing works. Tenant Covenant The Warburtons family opened their first grocery shop in 1870 and the company is still a private family-owned business, actively managed by the fifth generation of Warburtons. It is the largest family-owned bakery business in the country and employs around 4,500 people across 12 bakeries and 14 depots across the UK. Now recognised as Britain's favourite bakery brand, Warburtons has doubled in size in the last decade alone to become a 500 million plus -a-year business. This means that more than a quarter of all bakery products consumed in the UK is produced by Warburtons. During the last decade, they have reportedly invested over 400m into the business, to build new and upgrade their bakeries. They deliver to 18,500 retail customers each week, a number which has grown by more than 1,000 in the last year alone. It produces more than 2 million products a day. Its products account for a quarter of the total wrapped bakery market, which is worth more than 2.8 billion a year. D&B rating: 5A1 Year to 30/09/2017 Year to 4/09/2016 Year to 26/09/2015 Sales Turnover 524,697, ,253, ,467,000 Pre-Tax Profit 20,670,000 34,632,000 38,715,000 Tangible Net Worth 407,570, ,909, ,765,000 Net Current Assets 176,188, ,787, ,833,000 The subject property operates 352 days a year and services 870 outlets throughout East England, covering south to Malden, west to Bedford and Spalding and to Norfolk s north and east coasts. 6

7 Thetford Industrial Market Thetford has an industrial heritage and grew rapidly from the 20th century boosted by the relocation of businesses from bomb - damaged London in the 1950s. Manufacturing remains the most important sector to the local economy, accounting for 23.4% of jobs. Established industrial estates are typically located close to the and include Brunel Way Industrial Estate, Fison Way Industrial Estate, Roman Way Industrial Estate and Telford Way Industrial Estate. To the north of Brunel Way estate, Pigeon Investment Management own Thetford Enterprise Park, which extends to about hectares (44 acres), has potential to provide 52,940 sq m (570,000 sq ft) of B1and B2 space and also a hotel. The site could provide around 1,500 jobs once fully developed. Adjacent to the site is Kingsfleet, where construction is due to commence in the next month. Pigeon obtained planning permission in 2016 for up to 5,000 homes, three primary schools, open space, significant employment areas, community and healthcare facilities. The development will lie alongside the dual carriageway, midway between Cambridge and Norwich. Phase one has been sold by the Crown Estate and Kilverstone Estate to housebuilder Hopkins Homes, and new homes will be on sale in Spring As a result of the continuing investment in the region, including the dualling of the, the promotion of the Cambridge Norwich Tech Corridor partnership and other activity, there is healthy demand for industrial/ warehouse units. Rents typically range from 4 per sq ft to 4.75 per sq ft for good quality second hand space. At Burrell Way Trade Park, a refurbished warehouse providing 35,967 sq ft is on the market at a quoting rent of 180,000 pa ( 5 per sq ft). Eastern Region Investment Market Recent investment transactions in the Eastern Region include: Date Address Area Sq ft Price NIY % Tenant Unexpired Term Purchaser... ( per sq ft) Certain (Years) Sept Brunel Way, Thetford 27,371 1,530, % Warburtons Ltd (5A1) 9.0 Quoting Terms... ( 55) July 2018 Gipping Lane, Stowmarket 192,003 9,075, % Bosch Lawn & Garden Ltd 5.8 (TBO) Threadneedle... ( 47) July 2018 Olympus Close, Ipswich 21,600 2,250, % Multi- let (15) AWULT 2.36 Local Authority... ( 104) (TBO) May 2018 A&B, Homerfield Road, Haverhill 29,052 2,200, % Radford Group & 10 & 5 Private... ( 75) Cambridge Nanotherm Feb Kingsway, Norwich 14,271 1,500, % Multi- let (6) AWULT 2.93 Local Authority... ( 105) (TBO) 37

8 Further Information Should you have any queries or wish to make a site inspection, please contact: Darryl Stevenson DD: darryl.stevenson@bidwells.co.uk Saul Western DD: saul.western@bidwells.co.uk Bidwells 25 Old Burlington Street London W1S 3AN Tel: EPC Rating The EPC rating for the property is C73. A copy is available upon request. VAT We understand that the property is elected for VAT. We anticipate that the transaction will be structured as a TOGC. Proposal Our client is seeking offers in excess of 1,530,000 for its freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8% based on standard purchaser s costs of 6.11%. This reflects a low capital value rate of per sq ft. October

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