PRIME SOUTH EAST WAREHOUSE INVESTMENT AB Inbev, Chiltern Park, Boscombe Road, Dunstable LU5 4LT
PRIME SOUTH EAST WAREHOUSE INVESTMENT INVESTMENT SUMMARY Modern industrial unit in the south east in the established distribution location of Dunstable. Let to the strong covenant of AB Inbev UK. Offers in excess of 6,750,000. 9.77% net initial yield. LOCATION The property is situated on Chiltern Park the premier distribution and warehousing location for Dunstable, one mile from Junction 11 of the M1 Motorway. Access to the motorway is via the A505 dual carriageway. TRAVEL Luton Airport 8 miles London Heathrow 38 miles Stansted Airport 57 miles Luton Central and Luton Airport Parkway to: London St Pancras 30 minutes City of London 35 minutes London Euston 40 minutes Tilbury 62 miles London Gateway 66 miles Southampton 100 miles Felixstowe 113 miles Stansted 57 miles SITUATION Chiltern Park is the prime distribution and industrial location in Dunstable with major occupiers in the vicinity including Superdrug, Cinram, WH Smith, DHL, Sainsbury s and Sports World. The property sits adjacent to Prologis Park where 2 major new distribution warehouses are to be developed totalling approximately 670,000 sq.ft. Prologis has so much confidence in the location that they have recently committed to speculatively build 310,000 sq.ft adjacent to this property scheduled for completion mid 2014. INFRASTRUCTURE The recent widening of the M1 along with the proposed Junction 11a and northern Dunstable bypass (A5 M1) will improve traffic flow in the area and improve journey times in the locality. In addition the Luton Dunstable Busway (due for completion on 25 September 2013) which will be a fully automated tramway linking Luton, Dunstable and Houghton Regis will dramatically improve local transportation links in the area, with a stop in very close proximity to the property.
DESCRIPTION The property comprises a modern two bay detached warehouse constructed in the early 1990 s and extended in 1998. The building is of steel portal frame construction with part block, part steel clad elevations under a pitched profile clad roof. The salient specification details are as follows: 11.1 metre eaves height Floor loading of 65 KN/sq m 6 dock level loading doors 2 level access loading doors under canopy Well specified two storey office accommodation with comfort cooling Substantial yards to north and south elevations ACCOMODATION We have measured the property in accordance with the latest RICS Code of Measuring Practice and the Gross Internal Floor areas are as follows:- DESCRIPTION AREA SQM AREA SQFT Offices - Ground Floor 384.08 4,134 Offices - First Floor 384.08 4,134 Warehouse 9,810.20 105,595 Canopy 249.66 2,687 TOTAL 10,827.98 116,551 SITE AREA The property is lies on a site of 2.36 Ha (5.82 acres) TENURE The property is held freehold TENANCY The property is let to AB Inbev UK Limited (company number 03982132) on an overriding Lease for a term commencing on 21 June 2010 and expiring on 26 June 2017. The current passing rent is 698,000 per annum. The Original Lease dated 25 June 1992 between Abbeygate Developments (Dunstable) Limited and Whitbread Plc which was for a term of 25 years from 24 June 1992. This was assigned to AB Inbev UK Limited and Sovereign Partners Limited (company number 02933709) on 6 November 2012 and is now effectively an underlease. Sovereign Partners Limited are in occupation of the property. They are a company involved in the supply and distribution of disposable containers to the food and beverage market with key clients including Eat, Stena Line, Yo Sushi and Prezzo.
COVENANT AB Inbev UK Limited is the UK entity of AB Anheuser-Busch InBev, the largest brewer in the world. Popular brands include Budweiser, Stella Artois, Becks, Lowenbrau, Boddingtons and Bass. AB Inbev UK Limited reported the following financial figures for the last two years:- YEAR ENDED 30/12/2011 000s Accounts for Sovereign Partners are available on request 01/01/2011 000s Turnover 1,235,488 1,461,844 Pre-tax Profit (4,462) (33,891) Shareholders Funds 248,577 276,264 INVESTMENT MARKET COMMENTARY There are a number of recent comparable investment transactions that we consider worthy of highlighting. These can be summarised as follows: ADDRESS TRANSATION DATE SIZE (SQFT) UNEXPIRED TERM PRICE YEILD TENANT COMMENTS Bursom Industrial Estate, Beaumont Leys, Leicester Under Offer 122,279 8 years unexpired 5.00m 8.75% Walkers Snack Foods Late 1980s build. Unit 1 Meridian Business Park, Leicester Under Offer 97,232 3 years to break 5.20m 8.25% Boden 1985 built unit. Trentham Lakes, Stoke on Trent July 2013 64,434 8 years 3.90m 7.42% Portmeirion Group UK Ltd Modern unit. Crystal Drive, Oldbury May 2013 129,685 7 years unexpired 7.96m 8.60% Cadbury Ltd Mid 1980s build. Eurohub, Corby February 2013 278,189 4 years unexpired 10.50m 9.75% Wincanton Logistics 1999 build. Magna Park, Lutterworth December 2012 181,600 7 years unexpired 10.25m 8.25% VWR 1992 build. Olympus Park, Quedgeley, Gloucester November 2012 110,657 4.5 years unexpired 5.35m 9.28% Severn Glocon Modern unit. Brinklow 80, Standing Way, Milton Keynes July 2012 180,185 7 years unexpired 4.80m 8.35% Clipper Logistics Modern unit.
PLANNING The property has hours of use restrictions by virtue of the original planning permission with the following restrictions. Weekdays, there are to be no heavy goods movements between the hours of 11pm and 6 am, Saturdays between 6pm and 6am and Sundays between 6pm and 9am. VAT The property has been elected for VAT purposes however it is anticipated that the sale will be handled by way of a TOGC. PROPOSAL We are instructed to seek offers in excess of 6,750,000 which reflects a net initial yield of 9.77% after deduction of usual purchaser s costs of 5.80% EPC The property has a rating of C - 52. A copy of the EPC is available on request. PRO LOGIS PARK For further information or if you wish to arrange an inspection please contact: Andrew Franck-Steier DD: 0121 513 0891 M: 07798 647 640 andrew.franck-steier@fspproperty.co.uk Ben Blackwall DD: 0121 513 0893 M: 07798 647 836 ben.blackwall@fspproperty.co.uk Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function.