Multi-let industrial investment

Transcription

1 GVA James Barr Multi-let industrial investment Units 1-8 Oakbank Park Way Oakbank Industrial Estate Livingston EH53 0TH gva.co.uk/7710

2 High Yielding, Multi-let Industrial Investment Modern, multi-let industrial investment 4.41 Years Weighted Average Unexpired Lease Term 8 Units providing a Gross Internal Area of 76,573 sq ft Various asset management opportunities Net passing rent of 275,858 p.a. exclusive Offers in excess of 2,440,000 exclusive Attractive Net Initial Yield of 10.69% Low capital rate of sq ft

3 Livingston is located in the heart of central Scotland and has developed into one of the country s most successful former New Towns. It has a population of approximately 50,000 and a catchment in excess of 700,000. Livingston is located just 15 miles from Edinburgh and 30 miles from Glasgow. It lies adjacent to the M8 motorway and benefits from excellent access to the wider Scottish motorway network via Junctions 3 & 3A. It is a popular location for a variety of businesses and industries. Edinburgh International Airport lies within 15 minutes drive time to the east, with Glasgow Airport being approximately 45 minutes to the west. Oakbank Park Way is situated on the south east of Livingston town centre and within Oakbank Industrial Estate. The Estate lies adjacent to the Oakbank Roundabout, connecting to both the A71 (Calder Road) and A899 dual carriageway (Livingston Road) which in turn provides access to Junction 3 of the M8 motorway. Description The subjects comprise a modern, multi-let industrial estate, originally completed in It provides 8, high quality industrial units arranged in 3 separate blocks on a site of 4.78 acres. Parking is provided to the front of each unit, with circulation, loading and additional parking provided to the rear of the units within a common yard. Each of the blocks is of steel portal frame construction with insulated metal wall and roof cladding. Internally, natural light is provided by translucent roof panels. Each unit provides an element of two storey office accommodation. Generally the warehouse accommodation benefits from suspended gas fired heaters and sodium lighting units. Vehicular access is via roller shutter doors to the rear.

4 Site area 4.78 acres (1.93Ha) Unit 4 Unit 5 Unit 6 Unit 7 and 8 Tenure Two long leasehold interests granted by West Lothian Council, and expiring 30 November The annual ground lease rents are based on 19.50% of the Gross Turnover exclusive of VAT. The Gross Turnover is defined within the leases as the aggregate in pounds sterling of all rents, sums of money or other consideration received by the Tenants in return for the letting(s) of the subjects let. Unit 3 Unit 2 Unit 1 The current total ground rent passing is 68,882 per annum. Accomodation and sub-tenancy schedule The accommodation extends to approximately 76,573 sq ft (7, sq m) and is arranged in 8 units. The subjects are let on 6 occupational sub-leases, drafted on Full Repairing and Insuring terms, with some sub-leases being subject to Schedules of Condition. The current gross sub-rent is 344,740 per annum. The current ground rent is 68,882 per annum and therefore the current net sub-rent is 275,858 per annum.

5 Accomodation and sub-tenancy schedule No Sub-tenant Name Area (sq ft) Lease Start Next Review Break Option Expiry Date Unexpired Lease Term Current Rent pa Rent per sq ft Comments Unit 1 The Conveyor Belt Company (Scotland) Ltd 6,168 01/11/ /11/ /10/ , Schedule of condition Unit 2 Serita Teeside Ltd 4,876 21/09/ /09/ , Year 2 rent is 12,000. Year 3 rent is 15,000. Year 4 rent is 16,500. Year 5 rent is 20,000. The sub-lease is guaranteed by G.A.G.T Foods Ltd. The sub-tenant is not in occupation and is in substantial arrears. The guarantor is currently being persued by the Landlord. Unit 3 Alex Nangle (Electrical) Ltd 7,500 03/09/ /09/ , Unit 4/5 MW Encap (Holdings) Ltd 24,100 03/09/ /09/2017 _ 01/06/ , Unit 6 MW Encap (Holdings) Ltd 13,453 09/02/ /09/2017 _ 01/06/ , Schedule of condition. Unit 7/8 Carillion Energy Services Scotland Ltd 20,476 14/11/ /11/ , Schedule of condition. Sub-tenant is part of Carillion Energy Group. 76, ,740 Ground Leases from West Lothian Council 30/11/ , % of gross turnover. Net income 275,858 Notes: Ground lease 1: MID85979 (Units 1 5) Lease Start 01 Dec 1996 Expiry 30 Nov 2095 Ground lease 2: MID85978 (Units 6 7/8) Lease Start 10 Sept 1999 Expiry 30 Nov 2096 There is also a SP Distribution (Scottish Power) lease on site for sub-station.

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7 Sub-tenant convenants MW Encap (Holdings) Ltd ( ) is part of Encap, a global contract manufacturing and development organisation and the world s number one company for liquid and semi-solid oral drug capsule products. As of 30 April 2013 MW Encap (Holdings) Ltd reported a turnover of 7,530,325 and a pre-tax profit of 1,291,111. The company reported net assets of 4,591,941 and total assets of 5,561,977. For further information please see A Dun & Bradstreet report is available on request. Carillion Energy Services Scotland Ltd (SC102827) is part of Carillion Energy Services Ltd, which is part of Carillion PLC. Carillion Energy Services are a modern business driving the emerging green agenda. They work with local authorities, housing associations and the private sector and government departments to make better use of energy and water resources. As of 31 December 2013 Carillion Energy Services Scotland Ltd reported a turnover of 16,407,000 and a pre-tax profit of 979,000. The company reported net assets of 86,000 and total assets of 4,574,000. For further information please see A Dun & Bradstreet report is available on request. The Conveyor Belt Company (Scotland) Ltd (SC302705) is an established operator in the conveyor belt sector. They provide belts, servicing and inspections for a variety of industries. As of 31 March 2013 the company reported net assets of 20,545 and total assets of 481,298. As a small business, account information is limited and turnover and profit information is unavailable. For further information see: www. theconveyorbeltco.co.uk Alex Nangle (Electrical) Ltd (SC111872) is a privately owned, family run specialist electrical parts distributor which was established in As of 30 September 2013 the company reported net assets of 604,136 and total assets of 1,468,161. As a small business, account information is limited and turnover and profit information is unavailable. For further information see Service charge The common areas of the estate are managed by way of a service charge which currently equates to 0.35 per sq ft. EPC Unit Unit 1 Unit 2 Unit 3 Unit 4/5 Unit 6 Unit 7/8 EPC Rating E D E G G E A copy of the EPC certificates is available on request. VAT The property has been elected for VAT purposes and VAT is payable over and above the purchase price however, we envisage that any sale will be conducted by way of a Transfer of a Going Concern (TOGC). Proposal We are instructed to seek offers in excess of 2,440,000 exclusive in respect of our client s long leasehold interest. A purchase at this level would reflect a Net Initial Yield of 10.69% after making an allowance for standard purchaser costs of 5.80%. It would also equate to an attractive capital rate of per sq ft, this represents excellent value when compared to current industrial property build costs which are in the order of 60 per sq ft.

8 London West End London City Belfast Birmingham Bristol Cardiff Dublin Edinburgh Glasgow Leeds Liverpool Manchester Newcastle Published by GVA 10 Stratton Street, London W1J 8JR 2014 Copyright GVA GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com Viewing is strictly by appointment only. For further information please contact: Graeme Davies graeme.davies@gvajb.co.uk Will Sandwell will.sandwell@gvajb.co.uk Disclaimer Notice: The accuracy of any description, dimensions, references to condition, necessary permissions for the use and occupation and other details contained herein is not guaranteed and is for general guidance only. Prospective purchasers or tenants must not rely on them as statements of fact and must satisfy themselves as to their accuracy. Neither GVA James Barr nor any of their employees, nor their joint Agents has any authority to make or give representation or warranty or enter into any contract whatever in relation to the property. Rents or Prices quoted in these particulars may be subject to VAT in addition. The information provided is presumed to be correct at the time of print March gva.co.uk/