Investment Sale Unit 1 Kingfisher Way, Hinchingbrooke Business Park, Huntingdon PE29 6FJ Long Leasehold Industrial Investment
Executive Summary Modern, single let industrial property located at junction 23 of the, approximately 2 miles from it s junction with the A1. 4,715.36 sq m (50,757 sq ft) facility used for food processing and production. Site area of 3.48 acres providing a site coverage of approximately 29%. Let to Kitchen Range Foods Limited for a period of 25 years expiring 28 September 2020. Total passing rent of 312,160 per annum, comprising a base rent of 290,243 per annum ( 61.55 per sq m/ 5.72 per sq ft), plus 21,917 per annum ( 4.65 per sq m/ 0.43 per sq ft) to reflect enhanced specification. Tenant has extended the unit to provide a cold store of approximately 736.63 sq m (7,929 sq ft). Long leasehold interest of 999 years expiring 24 December 2995. We are instructed to seek offers in excess of 3,688,000 (three million six hundred and eighty eight thousand pounds) for the long leasehold interest, subject to contract, which reflects an attractive net initial yield of 8% after allowing for purchasers costs at 5.8%, and a low capital value of 782.12 per sq m ( 72.66 per sq ft).
B645 A1(M) A1 A1 B1090 1 A428 1 A1123 A1198 A428 M11 23 Kingfisher Way 1 Parkway Hitchingbrooke Hospital 1 B1044 Spitfals Way Stukeley Rd Ermine St St Peter s Rd Crown Copyright 2012. All rights reserved. Not to scale. Location Huntingdon is the market town of West Cambridgeshire and is situated approximately 32 km (20 miles) north west of Cambridge, 29 km (18 miles) south of Peterborough and 97 km (60 miles) north of London. The town adjoins the trunk road to the east of it s junction with the A1(M). The provides access across the country most noticeably to the eastern ports of the UK at Felixstowe, 140 km (87 miles) and Harwich 164 km (102 miles), together with the intersection of the M1, M6 and located approximately 77 km (48 miles) to the west. The town benefits from a regular rail service to London King s Cross with a fastest journey time of approximately 1 hour. In addition London Stansted Airport is located approximately 74 km (46 miles) to the south east and Luton Airport some 76 km (47 miles) to the south west. Huntingdon has an urban area population of approximately 30,000 and a District population of around 155,000. CACI data based on the 2001 census indicates an affluent population with 20.61% categorised as wealthy executives and 17.77% as flourishing families compared to the national average of 8.6% and 8.88% respectively. Situation Hinchingbrooke Business Park is located adjacent to the and lies within 2 miles of junction 14 of the A1. The Park is a modern, high quality estate and one of the town s principal employment areas. The Park is approached via a slip road from the west bound between junctions 23 and 22. The Business Park extends to approximately 37 acres accommodating a number of uses including industrial, offices, R&D, a day nursery and hotel. Other occupiers include Anglian Water, Cambridge & Peterborough NHS Foundation Trust and Marriott, which operates the 4 star, 150 room hotel. Description The property was constructed in 1995 to comprise a single building for manufacture, R&D of food products together with offices. The building is of steel portal frame construction with a mix of brick and profile metal clad external elevations under a pitched roof. The production area benefits from 10% roof lights having an eaves height of approximately 7.2 metres (23.5 feet). The unit benefits from 4 level access doors together with two dock level loading doors. The floor loading capacity of the production area is 36 kn/sq m. The warehouse is fitted out as a food processing and production facility. The production area has been extensively fitted to meet the tenant s specific requirements which include three production lines. To the front of the property is a two storey office block incorporating open plan office accommodation, meeting rooms, kitchen facility, male & female W.C s/changing rooms and a staff rest area. There are a total of 122 car parking spaces located to the front and side of the unit. Additional spaces could be provided within the service yard. The tenant has extended the property to provide a dedicated cold store to the rear of the production facility. The cold store extends to approximately 736.63 sq m (7,929 sq ft) with an eaves height of 9 metres (29.5 feet). The service road is located to the north side of the unit, providing access to the hard standing areas to the rear and south of the property.
Stukeley Meadows Industry Estate Huntingdon Ermine Business Park Huntingdon Rail H 1 Hinchingbrooke Business Park
Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following gross internal area (GIA). Description Sq M Sq Ft Offices 1,513.72 16,294 Production Unit 3,201.64 34,463 Total 4,715.36 50,757 The above areas exclude the tenant s cold store comprising approximately 736.63 sq m (7,929 sq ft). Site The property occupies a rectangular site of approximate 1.41 hectares (3.48 acres). Site cover totals approximately 29%, excluding the tenant s additions. Tenure Long leasehold. The lease is subject to 5 yearly upward only rent reviews with the next review due 29 September 2015. At review the enhancement rent is increased by the same proportion as the base rent. Covenant Kitchen Range Foods Limited has been established for over 30 years and specialises in the production of a range of sweet and savoury products, supplying frozen food to many national and international multiple retailers. The company is part of Moy Park Holdings (Europe) which is in turn owned by Marfrig Alimentos SA. Credit Safe provide Kitchen Range Foods Limited with a rating of 93 very good credit worthiness. Planning The local planning authority is Huntingdonshire District Council. The property was constructed following the grant of reserved matters approval ref: 94/01542/REM (dated 6 February 1995) for the erection of a building for manufacture, R&D of food products with offices, store, service yard, estate roads and landscaping. EPC The property has an EPC Rating of 57 (C). Tenant Name Company No. Year To Turnover Pre-Tax Profit Shareholder Funds Kitchen Range Foods Ltd 1004539 31/12/2010 30,484,000 1,795,000 11,789,000 31/12/2009 32,068,000 1,364,000 9,961,000 27/12/2008 30,696,000 877,000 9,155,000 A 999 year term from 25 December 1996, expiring 24 December 2995. Rents due under the headlease are one red rose if demanded and the service charge. The long leaseholder contributes to the estate service charge, which is reclaimed from the occupational tenant. The long leaseholder is a shareholder in Hinchingbrooke Business Park Management Company Limited which both owns the freehold of Hinchingbrooke Business Park and administers the estate service charge. Tenancy The property is let in it s entirety to Kitchen Range Foods Limited for a term of 25 years from 29 September 1995, expiring in September 2020. The current passing rent totals 312,160 per annum. The rent comprises a base rent of 290,243 per annum ( 61.55 per sq m/ 5.72 per sq ft) and a fit out payment of 21,917 per annum ( 4.65per sq m/ 0.43 per sq ft) which reflects works carried out by the landlord at the commencement of the lease.
Market Commentary The strategic location of Huntingdon at the junction of the A1 and has led to the town becoming a major centre for manufacturing and distribution facilities. More traditional industrial and warehouse facilities are located within the Stukeley Meadows Industrial Estate to the east of the and Ermine Business Park, located off the 1. Stukeley Meadows extends some 34 hectares (84 acres) and is home to over 100 companies including Bright Instrumental Company, Munters and TT Plastics. Other major employers located in the area include Dairy Crest, Fisher Foods and Knowles Transport. Take up in Huntingdon over the last 5 years has been focused in the 50-100,000 sq ft size band, making up approximately 33% of all space let. VAT The property has been elected for VAT. It is intended that the sale will be undertaken as a TOGC. Proposal We are instructed to seek offers in excess of 3,688,000 (three million six hundred and eighty eight thousand pounds) for the long leasehold interest, subject to contract, which reflects an attractive net initial yield of 8% after allowing for purchasers costs at 5.8%, and a low capital value of 782.12 per sq m ( 72.66 per sq ft). Contacts Lambert Smith Hampton 6 Wellbrook Court Girton Road Cambridge CB3 0NA Andrew McGahey 01223 814265 amcgahey@lsh.co.uk Further information on the property can be obtained from: Subject to Contract and Exclusive of VAT Lambert Smith Hampton March 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.