UNIT 41, CONEYGRE INDUSTRIAL ESTATE, BURNT TREE, TIPTON, WEST MIDLANDS Freehold Investment For Sale
Investment Summary Let to Kwik Fit Properties Ltd on a lease expiring 2029. Net initial yield of 7.1%. Two minimum uplifts. Reversion to a minimum of 8.2% in 2009 and 9.5% in 2014. Lease guaranteed by Kwik Fit Holdings Ltd. Stamp duty exempt disadvantaged area. Location Tipton is located in the West Midlands. West Bromwich is 4.6 miles to the north-west and Dudley is 1.5 miles to the north-east. Situation The subject property is situated on Burnt Tree, close to the roundabout at the junction of the A4213 and A461. Description The accommodation is arranged on ground floor only and trades as a tyre fitting depot with 5 fitting bays each having their own roller shutter doors with an eaves height of approximately 4.4m (14.5 ft). There is a yard utilised for parking and vehicle circulation. Part of the accommodation has been sublet. We have been advised by a client that the measured area is as follows; Ground Floor 479.5 sq m (5,160 sq ft) Tenure We have been advised that the property is held freehold. 2
Tenancy The property is let in its entirety to Kwik Fit Properties Ltd with a guarantee from Kwik Fit Holdings Ltd. The term is from 24 th February 1999 expiring on 24 th February 2029, therefore having an unexpired term of approximately 25 years. The passing rent is 34,778 per annum, exclusive of rates. The lease provides for five yearly upward only rent reviews on full repairing and insuring terms. The rent reviews are to the higher of the open market rental value or 3% per annum compound for the next two reviews. Subsequent reviews are to open market rental value. The minimum rental profile is as follows; December 2009 December 2014 40,317 pa 46,739 pa We have been informed that the tenant is not in occupation and part of the property has been sub-let to J B Langford & Co Ltd. Covenant Kwik-Fit Holdings Ltd Kwik-Fit Properties Ltd Turnover 1,902,000 45,370,179 Pre-tax Loss 90,044,000 30,830,684 Net Assets 150,387,000 37,874,821 Source: Financial Statements for the year ended 31 December 2002. Stamp Duty Exempt We have been informed that stamp duty is not payable on this property as the property qualifies for Disadvantaged Area Stamp Duty Exemption. However, we do advise prospective purchasers to make their own enquiries to satisfy themselves. VAT The property has been registered for Value Added Tax. It is anticipated that the purchaser will be treated as a Transfer of Going Concern. 3
. Price The freehold interest of the property can be acquired for a price of 485,000, subject to contract and exclusive of VAT, reflecting a net initial yield of 7.1 % assuming costs at 1.75%. The yield profile is as follows; February 2009 to a minimum of 8.2% February 2014 to a minimum of 9.5% Contact Information David Baroukh or Alex Bard David Baroukh Associates 6 Wimpole Street London W1G 8AL Telephone: 020 7323 1010 Facsimile: 020 7323 6600 E-mail: david@dbaprop.co.uk alex@dbaprop.co.uk Subject to contract and Exclusive of VAT Misrepresentation Clause David Baroukh Associates for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satis fy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of David Baroukh Associates has any authority to make or give any representation or warranty whatever in relation to this property. All maps are for identification purposes only and should not be relied upon for accuracy 4
UNIT 41, CONEYGRE INDUSTRIAL ESTATE, BURNT TREE, TIPTON, WEST MIDLANDS 5