PRIME FREEHOLD DISTRIBUTION INVESTMENT MICHELDEVER LOWFIELDS BUSINESS PARK, ELLAND HX5 9DA
INVESTMENT SUMMARY Highly specified, modern distribution warehouse strategically positioned within 5 minutes of J24 M62. Let to the substantial covenant of Micheldever Tyre Services Limited with an unexpired lease term of 10.8 years expiring 30th April 2026. Built in 2002 and totalling 122,430 sq ft on a site of 2.27ha (5.609 acres), providing 45% site cover. Rent passing of 612,000 per annum, reflecting 5.00 per square foot. Forming part of the highly successful Lowfields Business Park with other occupiers including SCS, Decorative Panels Group, Terberg DTS UK, Sungard, Lesjofors, Radicon, and Suma Wholesale Foods. Future potential to cross dock the warehouse due to the current configuration of the unit on the site. Offers in excess of 8,600,000 (Eight Million Six Hundred Thousand Pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 6.73% after purchaser costs of 5.80% and a capital value of 70.24 per sq ft.
Harrogate York A6025 LOCATION Bury M65 Bradford Rochdale M62 Manchester M621 Huddersfield Leeds A1 (M1) M1 M60 Stockport Macclesfield M6 Chesterfield Sheffield M1 M18 Goole Doncaster Retford J24 A629 A629 ELLAND J24 M62 B6114 Elland is a highly connective town lying one mile north of Junction 24 of the M62 with direct access via the A629 (Calderdale Way) dual carriageway. The motorway provides access to the national motorway network with Leeds and Bradford being situated 18 miles (28.8km) and 9 miles (14.4km) respectively to the east and Manchester 29 miles (46.4 km) to the west. SITUATION Lowfields Business Park is one of the most successful industrial and office parks on the M62 corridor. The Park has grown over the course of the last decade and now provides over 1.2 million sq ft of industrial and distribution units as well as office space. Occupiers include SCS, Decorative Panels Group, Terberg DTS UK, Sungard, Lesjofors, Radicon, and Suma Wholesale Foods DESCRIPTION The property is a modern detached warehouse built in 2002 and comprises steel portal frame construction with self-contained office accommodation (13.8%). The tenants have installed their own bespoke freestanding storage and racking area incorporating three mezzanine levels with goods hoist. This structure is a tenant s improvement and was built independently of the property. The remaining specification includes: 12 loading bays with dock levellers Pitched composite panel roof with 15% roof lights Eaves height up to 10m Load-bearing capacity of 50 kn/m2. Concrete surfaced service yard and car parking areas to the front and rear of the unit Integral office space over three storeys with air conditioning, lift and canteen
ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following gross internal areas: Description Area (Sq M) Area (Sq Ft) Warehouse 8,479.10 91,268 Loading Docks 1,321.44 14,223 Office & Ancillary 1,573.59 16,937 Total 11,374.13 122,430 SITE The property occupies a site of approximately 2.27ha (5.609 acres) which reflects a low site cover of 45%. TENURE Freehold TENANCY The property was let to Micheldever Tyre Services Limited for a term of 10 years from 27th November 2009. By way of a reversionary lease the term has been extended for an additional 6 years expiring on 30th April 2026, thereby providing an unexpired term of 10.8 years. The current passing rent is 612,000 per annum equating to 5.00 per sq ft with 5 yearly open market, upwards only rent reviews. A rent free period of 10 months was given at the re-gear, of which 3 months equivalent was to be reinvested into the property for agreed the works. The residue of the rent free will be topped up by the vendor.
COVENANT Micheldever Tyre Services Limited (Company Number 1817398) Micheldever Tyre Services Ltd are experts in automotive care supplying tyres and automobile services throughout the UK. Founded in 1972 the group has 59 retail sites and an established distribution network of 15 warehouses around the UK, the Elland site forms the northern distribution hub providing access to the M6, M1, and M62 motorways. Brands within the group include Micheldever Tyre and Auto Services, Protyre and Blandford Tyres and Exhausts. The group s most recent acquisition was Tyreland in 2011. The latest trading figures for Micheldever are as follows: 31/03/2014 000 s 31/03/2013 000 s 31/03/2012 000 s Sales 331,152 325,193 334,811 Gross Profit 73,499 65,547 64,434 Pre Tax Profit 6,080 5,007 (651) Shareholders Funds 42,097 37,601 33,764 Further information can be found at: www.micheldever.co.uk
EPC The unit has an EPC rating of C. The certificate is available on request. VAT The property is elected for VAT. PRICING We are instructed to seek offers in excess of 8,600,000 (Eight Million Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.73% and a capital value of 70.24 per sq ft after purchaser costs of 5.80%. FURTHER INFORMATION If you require any further information, please do not hesitate to contact: ABID JAFFRY ajaffry@lsh.co.uk T: 0161 242 7099 M: 07836 264427 BEN ROBERTS broberts@lsh.co.uk T: 0161 242 8002 M: 07720 496509 Further information on the property can be obtained from: www.lshinvestmentsales.co.uk ALEX PERRATT aperratt@lsh.co.uk T: 0161 242 7017 M: 07736 617544 6th Floor 3 Hardman Street, Spinningfields, Manchester M3 3HF T: +44 (0)161 228 6411 F: +44 (0)161 228 7354 www.lsh.co.uk Misrepresentation Act 1967: 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 ena 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. Lambert Smith Hampton: July 2015 Produced By: Barbican Studio +44 (0)20 7634 9574