Queensway Industrial Estate Dunlop Way & Arkwright Way, Scunthorpe, DN16 3RN. Secure Industrial and Office Ground Rent Investment Opportunity

Transcription

1 Secure Industrial and Office Ground Rent Investment Opportunity

2 Investment Summary Strategic location adjacent to Queensway, the town s southern link road. Close proximity to HumberPort, the UK s largest, multi-purpose ports complex, serving the North of the UK. The property consists of two elements, these being Unit 5 Queensway, which comprises a modern warehouse / food production facility of 60,721 sq ft (5, sq m) and Units 17A 17K Queensway Court, which comprises 9 detached offices held on long leases. Unit 5 Queensway is let to TSC Foods Limited by way of a renewed lease for a term of 10 years from 1 October 2015 at a rent of 172,000 per annum ( 2.83 psf). Freehold. Units 17A 17K Queensway Court are held on eleven 125 year leases (less 3 days) from 1 January 1990 producing an aggregate ground rent of 57,000 per annum. Unit 5 We are instructed to seek offers in excess of 2,030,000 (Two Million and Thirty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser s costs of 5.80%, a purchase at this level would reflect a net initial yield of 8.00% (assuming the rent free is topped up). This reflects a modest capital value of psf. Unit 17A- 17K Queensway Court We are instructed to seek offers in excess of 1,080,000 (One Million and Eighty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser s costs of 5.80%, a purchase at this level would reflect a net initial yield of 4.99%. Although it is envisaged that the two elements will be sold separately, consideration will also be given to offers received for both elements combined.

3 Leeds Bradford LEEDS 1 M Birstall41 40 Dewsbury M Stocksbridge 35 A1(M) M1 Wakefield Castleford Pontefract Barnsley SHEFFIELD M M1 30 Tadcaster Hemsworth M18 Rotherham 3 M62 A1(M) 34 Selby 4 Worksop 36 M18 DONCASTER Queensway Industrial Estate 37 Robin Hood Goole M62 38 HumberPort Complex 6 Thorne 5 1 M181 M ASHBY ROAD Scunthorpe 4 Beverley 5 Key HULL Immingham Humberside BRIGG ROAD Grimsby Location Scunthorpe is the main commercial and administrative centre for North Lincolnshire with a catchment population of approximately 150,000 people. The town is situated a short distance to the south of the Humber Estuary, some 50 miles (80km) south east of Leeds, 20 miles (32km) east of Doncaster, 30 miles (48km) south of Hull and 143 miles (230km) north of London. The town benefits from excellent transport links, with access to Junction 3 of the M180 approximately 4 miles (6km) south of the town centre via the M181. The M180 provides direct access to Grimsby, the M18 and the national motorway network. In addition, the Humber Bridge is just 15 miles (24km) to the north linking the town to Kingston upon Hull and the Humber Ports complex (HumberPort). HumberPort is the UK s largest, multi-purpose ports complex, serving the North of the UK. It is the UK s busiest port complex and 4th busiest in Europe, handling over 85 million tonnes of cargo. Humber-based logistics companies ship directly to more than 50 countries with well over 100 shipping lines operating regularly. HumberPort also generates more than 250 rail movements per week over 25% of the UK s rail freight traffic. Location Junction 3 M180 Humber Bridge Hull Doncaster Leeds Humberside Airport London Distance 4 Miles 15 Miles 30 Miles 20 Miles 50 Miles 15 Miles 143 Miles M180 MESSINGHAM ROAD Queensway Industrial Estate M180 Situation The property is situated approximately 2.5 miles to the south east of the town centre adjacent to the Queensway, which acts as the town s southern link road, connecting to the west with the M181 and the M18 to the south east. Access to the property is from Dunlop Way & Arkwright Way via Brigg Road (A1029), close to its junction with the.

4 Description The property consists of two distinct elements, these being; Unit 5, The property comprises a modern industrial / food production facility of steel portal framed construction, arranged over two bays, with block and facing brick elevations surmounted by profiled metal sheeting, beneath a profiled metal sheet roof. Internally the tenant has invested heavily in the building which has been fitted out with insulated panel systems to provide hygiene safe environments for food preparation/processing, together with a variety of cold and chilled stores. Part of the warehouse remains in use for ambient storage. Heating within the ambient warehouse is provided by means of gas fired warm air blowers, with lighting via a mixture of high intensity and fluorescent tube lighting. To the front of the building are two storeys of office accommodation. This area has been fitted out to include carpeted floors and suspended ceilings incorporating recessed fluorescent tube lighting. Heating is provided by means of a hot water radiator system. Loading is made via 2 level access doors and 4 dock level loading doors. To the rear of the site is a detached warehouse, which provides ancillary space to the main factory. The building is of steel portal framed construction, with full height profiled metal sheet elevations, beneath a profiled metal sheet roof. Loading is made via 2 roller shutter doors. There are two points of access into the site from Arkwright Way, with the main loading area positioned at the northern end of the building, with car parking along the eastern boundary adjacent to the offices. Units 17A-17K Queensway Court The property comprises 9 detached pavilion style two storey office buildings, accessed from Arkwright Way. The offices were built in 1990 and are of traditional brick construction beneath pitched tiled roofs. Accommodation Calculated on a gross internal basis, Unit 5 provides for a demised floor area of 60,721 sq ft (5, sq m). In addition, the tenant has installed a mezzanine floor and an extension to the first floor offices, which are not currently rentalised. Further information is available upon request.

5 SITE The industrial unit is supported on a site of hectares (3.444 acres), as edged red on the OS Plan, thus providing for a site cover of approximately 40%. The offices are supported on a site of hectares (2.196 acres), as shown edged blue on the OS Plan.

6 tenure The property is held Freehold. tenancies Unit 5, The property is let to TSC Foods Limited by way of a renewed lease for a term of 10 years from 1 October 2015 at a passing rent of 172,000 per annum ( 2.83 psf). The lease is drawn on full repairing and insuring terms and provides for an upwards only rent review at the end of the 5th year to market value. The tenant has been granted a 9 month rent free incentive, structured as 18 months at half rent, which the vendor will top up. TSC have been in occupation of the property since They also own the adjacent building and lease a further two units opposite, thus signalling their commitment to the area. Units 17A-17K Queensway Court The offices are held on 11 leases for lease terms 125 years (less 3 days) from 1 January 1990 producing an aggregate ground rent of 57,000 per annum. Rent reviews are 5 yearly and are calculated as 21.15% of the Market Rental Value of the offices. An estate service charge is also payable by the long leaseholders, which is apportioned on a floor area basis. Further information can be provided upon request. The ground rents are summarised below: Unit Tenant Lease start Lease expiry Annual rent GBP Unit 17A Computerised Training Systems 01/01/ /12/2114 4,061 Unit 17B Computerised Training Systems 01/01/ /12/2114 4,061 Unit 17C Knight House Strata Holdings Ltd 01/01/ /12/2114 4,061 Unit 17D Knight House Strata Holdings Ltd 01/01/ /12/2114 4,061 Unit 17E Viscount House Eamonn John Cannon 01/01/ /12/2114 3,173 Unit 17F Duchess House Windsor Associates Ltd 01/01/ /12/2114 7,138 Unit 17G Regent House Booth & Phipps (Garages) Ltd 01/01/ /12/2114 5,795 Unit 17H Princess House Judith Taylor 01/01/ /12/2114 4,579 Unit 17I Prince House B E Clarke & R A Noal 01/01/ /12/2114 5,795 Unit 17J Sovereign House Windsor Associates Ltd 01/01/ /12/2114 7,138 Unit 17K Monarch House Peter Thomas Hatchard 01/01/ /12/2114 7,138 TOTAL 57,000

7 covenant TSC Foods Limited is the newest member of The Billington Group, which is a growing family of food and agriculture businesses based in the UK. TSC prides itself on being at the cutting edge of chilled and frozen food product development. The company specialise in delivering innovative added-value chilled and frozen product solutions for Food Service, Retail B2B and Export partners. The business was founded more than two decades ago, producing chilled soups and sauces for its customers. Today, the company s portfolio has expanded to consist of a wide range of products including risottos, prepared cooked vegetables, dips, dressings, gravies, marinades, recipe dish, sous vide meats, couscous, fresh pickles & chutneys, sweet sauces and compotes. TSC s most recognisable brand/product is its Glorious! Soups and sauces, which are sold in Morrisons, Asda and Sainsbury s supermarkets. The company has a D&B Rating of 4A 1. Further information can be found at A summary of the tenant s latest accounts are summarised below: Year ending Turnover Pre-tax profit Tangible net Net current GBP GBP worth assets GBP GBP 31 August ,322,510 2,285,491 20,518,305 14,223, August ,241,000 4,241,000 18,709,000 12,409, August ,217,000 3,439,000 15,245,000 9,101,000

8 EPC The EPC rating for the TSC Foods unit is C (69). A copy is available upon request. VAT The property is elected for VAT and it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC). DATA Room Further information is available upon request. proposal Unit 5 We are instructed to seek offers in excess of 2,030,000 (Two Million and Thirty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser s costs of 5.80%, a purchase at this level would reflect a net initial yield of 8.00% (assuming the rent free is topped up). This reflects a modest capital value of psf. Unit 17A- 17K Queensway Court We are instructed to seek offers in excess of 1,080,000 (One Million and Eighty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser s costs of 5.80%, a purchase at this level would reflect a net initial yield of 4.99%. Although it is envisaged that the two elements will be sold separately, consideration will also be given to offers received for both elements combined. contact For further information or to arrange an inspection please contact: Nick Wales Graham Foxton Henrie Westlake Knight Frank LLP Knight Frank LLP Knight Frank LLP 7th Floor 9 Bond Court 9 Bond Court Fountain Precinct Leeds Leeds Balm Green LS1 2JZ LS1 2JZ Sheffield S1 2JA Tel: Tel: Tel: Mob: Mob: Mob: nick.wales@knightfrank.com graham.foxton@knightfrank.com henrie.westlake@knightfrank.com Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ("information") as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members' names. October Designed & produced by Tel: