HIGH QUALITY WELL SECURED WAREHOUSE INVESTMENT OPPORTUNITY 2 JAMES STREET BELLSHILL, ML4 3LU

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1 HIGH QUALITY WELL SECURED WAREHOUSE INVESTMENT OPPORTUNITY 2 JAMES STREET BELLSHILL, ML4 3LU

2 2 JAMES STREET, BELLSHILL, ML4 3LU 2 INVESTMENT SUMMARY High quality refurbished single let warehouse unit with large secure yard and car parking Prime well established industrial and distribution location strategically positioned between the M74 and M8 Motorways Total Gross Internal Area (for rent review purposes) of 52,857 sq.ft (4,911 sq.m) Well secured to HSS Hire Service Group Limited on FRI terms (subject to Schedule of Condition) expiring on 22 November 2026 HSS Hire Service Group Limited have a D&B rating of 4A1 Passing rent of 264,285 per annum ( 5.00 per sq.ft) with 5 yearly upward only rent reviews to OMV The property sits on a substantial site of approximately 4.26 acres equating to 28% site cover Offers in excess of 3.5m, NIY 7.12% after allowing for purchaser s costs based on LBTT A purchase at this level equates to an attractive capital value rate of per sq.ft

3 2 JAMES STREET, BELLSHILL, ML4 3LU 3 LOCATION Bellshill is located in North Lanarkshire within Scotland s Central Belt, strategically positioned between the M74 and M8 motorways at the heart of the Golden Triangle. It is approximately 12 miles to the south east of Glasgow and 38 miles to the west of Edinburgh. Due to its excellent location within Scotland s wider road network, Bellshill is a prime distribution and industrial location in Scotland. The links the M8 and M74 motorways, providing access to Righead Industrial Estate. The A8/M8 motorway links Bellshill to both Glasgow and Edinburgh and the M74 motorway links it to the South of Scotland and England. A 500m Motorway Improvement Project has recently been completed including a new all-purpose A8 between Baillieston and Eurocentral, a new section of the M8 motorway between Baillieston and Newhouse, the upgrading of the M8 between Easterhouse and Baillieston and the upgrading of various junctions including the M8 Shawhead Junction (J7A) and the M74 Raith Interchange Junction (J5). Further details can be found at 2 JAMES ST J26 M8 J25 J2 J3 M77 A82 A739 Newton Mearns J24 A814 J1 M77 J22 Thorniebank A77 GLASGOW 1A Carmunnock A726 A803 A730 2 J13/1 A74 M80 Cambuslang A749 East Kilbride 2A A80 A89 Stepps M8 A8 3 3A J4 A724 J8/2 Uddingston M73 2 JAMES ST A89 A8 M8 A752 Birkenshaw M74 J5 Hamilton Coatbridge Airdrie J7A A775 Bellshill J6 A721 Motherwell A723 TO SOUTH AND CARLISLE > Chapelhall J7 J6 J6A TO EDINBURGH > J7 SITUATION The subject property is located on James Street, adjacent to the junction with Earn Avenue, within Righead Industrial Estate. Righead is one of central Scotland s prime industrial and distribution locations. Surrounding occupiers include Scania, Saint Gobain, BSS, Cromwell, Screwfix, Plumbstore, Morrisons Regional Distribution Centre, Arco, DHL and Howdens.

4 2 JAMES STREET, BELLSHILL, ML4 3LU 4 RAITH INTERCHANGE (J5) M74 NORTH TO GLASGOW SOUTH TO M74 J5 MAN DHL THE PROPERTY TNT SAINT GOBAIN EDMUNDSON ELECTRICAL DAF JAMES STREET PLUMB STORE CROMWELL DINGBRO HOWDENS TOOLSTATION ARCO PLUMBASE SCREWFIX WARBURTONS EURO CAR PARTS NATIONWIDE PLATFORMS GREGGS SCANIA MERCEDES BENZ ATS MORRISONS SUPERMARKET PLC HILTON HOTEL NORTH TO M8 J7A STRATHCLYDE BUSINESS PARK WM GRANT DISTILLERS

5 2 2 JAMES STREET, BELLSHILL, ML4 3LU 5 DESCRIPTION In 2016/17, the property was substantially refurbished with main works including elevation masonry and cladding repairs, new industrial coating of elevation cladding, new perimeter fire escape doors, new glazed aluminium entrance doors, new mechanical loading doors, overhaul of existing windows, refurbishment of internal offices, installation of new LED lighting and relaying of the entire service yard, car park and entrance to the property. These works followed on from the previous tenant (Pepsico), in 2015, replacing the roof with a new Kingspan insulated roof with gutters. The subjects comprise a double bay, high quality warehouse unit incorporating office and staff accommodation. The property is of steel portal frame construction with brick and profile metal sheet infill walls under a pitched profile metal sheet roof, incorporating translucent roof panels. The property benefits from a large service yard which is accessed from James Street via a security gate and there is provision for 16 car spaces as well as a customer collection area. The site is secured by steel palisade perimeter fencing. The warehouse area is accessed via 6 drive-in electric roller shutter doors and 2 dock levellers are positioned at the eastern end of the building. The warehouse has a concrete floor, LED lighting and an internal eaves height to underside of haunch of 5.3 metres with a clear internal height of 7.2 metres. ACCOMMODATION We have measured the property in accordance with the RICS code of Measuring Practice (6th Edition) and the property extends to the following Gross Internal Areas: Area Sq.Ft Sq.M Warehouse Area 48,573 4,513 Office/Staff/Canteen 3, Transport Office Total 52,291* 4,858 *Please note the agreed floor area for rent review purposes is stated in the lease as 52,857 sq.ft The property sits on a site of approximately 4.26 acres (1.73 hectares) and provides a site coverage of 28%. TENURE Heritable Interest. n Way 2 TENANCY The property is let to HSS Hire Service Group Limited on FRI terms (subject to Schedule of Condition) commencing on 23 November 2016 for 10 years and expiring on 22 November The current passing rent is 264,285 per annum ( 5.00 per sq.ft) with 5 yearly upward only rent reviews to open market value, the next review being on 23 November The tenant was granted a 7.5 month rent free period by way of half rent ( 132, pa) for 15 months from 12 May Our client will top up any outstanding rent free period from a date of sale. Office and staff accommodation is situated along the western elevation of the building and includes perimeter trunking, suspended ceilings, recessed lighting, electric wall mounted heating with canteen and toilet facilities. 1 There is a free standing modular porta cabin situated to the west of the warehouse which provides ancillary staff accommodation. This is tenant fit-out and therefore the tenant will be responsible for its removal at lease expiry. 4

6 2 JAMES STREET, BELLSHILL, ML4 3LU 6 TENANT COVENANT HSS Hire Service Group Limited is the UK s leading provider of tools, equipment and related services in the UK and Ireland. The company operates from over 265 locations with around 3,200 employees. The company has approximately 37,000 live accounts and service a large and diverse customer base from large blue chips to small local trades and individual customers. Over the last 3 years, the company reported the following financial performance: Year Y/e 31 Dec 2016 Y/e 26 Dec 2015 Y/e 31 Dec 2014 Turnover m m bn Pre-Tax Profit ( 17.75m) ( 2.73m) 17.67m Tangible Net Worth 18.05m 37.51m 53.86m The company have a Dun and Bradstreet rating of 4A1. EPC The property has an EPC rating of B. A copy of the EPC can be supplied to interested parties. CAPITAL ALLOWANCES Any available Capital Allowances will be passed over for the benefit of a qualifying purchaser. VAT The property is elected for VAT. VAT will be payable on the purchase price, however it is anticipated that a sale will be enacted by way of a Transfer of a Going Concern (TOGC). INVESTMENT PROPOSAL We are instructed to seek offers in excess of 3.5m exclusive of VAT for the Heritable Interest which reflects a net initial yield of 7.12% after purchaser s costs based on LBTT. A purchase at this level equates to an attractive capital value rate of per sq. ft. FURTHER INFORMATION / VIEWING For further information or viewing, please contact the sole selling agents: Ian Dougherty Tel: ian.dougherty@ryden.co.uk Derek Archer Tel: derek.archer@ryden.co.uk Ryden is a limited liability partnership registered in Scotland. Messrs Ryden for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property. July 2017.