Freehold Industrial Investment - Ta m w o r t h Strongs Plastics, Silica Road, Amington Industrial Estate, Tamworth, B77 4DT
INVESTMENT SUMMARY Tamworth benefits from excellent road communications at the junction of the A5 & M42. The Amington Industrial Estate is an established warehouse location close to the M42/A5 interchange. Strong s Plastics are a successful privately owned manufacturing business. A modern steel portal framed building of 21,566 sqft with a secure yard and 7.4m clear eaves. Freehold. LOCATION Tamworth is an established and thriving Midlands town situated 18 miles north east of Birmingham, 30 miles west of Leicester and 25 miles north of Coventry. The town has a population of approximately 74,500 with a total estimated catchment of approximately 425,000. (Census 2001) Tamworth has excellent road communications lying adjacent to the A5 (London to Holyhead Trunk Road) and immediately to the west of the M42 motorway. Junction 10 of the M42 intersects with the A5 on the south side of the town centre and this provides a hub for major distribution facilities for Britvic, Carcoustics, Safeway, Heidelberg, NYK Logistics and Megacarrier at Centurion Park & Relay Park. The M6 Toll Road lies 5 miles to the west via the A5. The M42 provides access to the national motorway network leading directly to the M6 motorway (Junction 4) 10 miles to the south and the M1 motorway (Junction 23A) 22 miles to the north east. Tamworth main line railway station provides rail services to London (Euston) with an approximate journey time of 1 hour 40 minutes. Birmingham International Airport is reached via the M42 and is approximately 15 miles to the south of Tamworth. Just under 10 years unexpired (no tenant break options). A rent passing of 100,000 pa ( 4.64 psf) offering sound growth potential. 1,110,000 and 8.5% NIY & 55 psf, subject to contract.
SITUATION The property is situated on the east side of Silica Road close to its junction with Sandy Way approximately 2 miles east of Tamworth town centre and 1.5 miles northwest of Junction 10 of the M42 motorway /A5 dual carriageway (Centurion Park & Relay Park), which can be accessed via the B580 (Pennine Way). The surrounding area is predominantly light industrial. Nearby warehouse occupiers include RBS Bank (Kestrel House), Heidelberg, Britvic, Stormking, Madewell Products, Apollo and the Sandy Hill Business Park. Pennine Way (B580) Market Place Centurion & Relay Park Arts Centre Town Centre Retail
DESCRIPTION & ACCOMMODATION The property comprises a modern steel framed building with profile metal and brickwork elevations on a site of circa 1.23 acres (36% footprint site cover). The front portion of the building comprises ancillary offices and a reception area with the warehouse behind. The warehouse has a clear eaves height of approximately 7.4m. The property is internally fitted out to the tenant s specification to allow for polymer fabrication. The offices are arranged over ground and first floors, with suspended ceilings, fluorescent lighting and central heating. We understand from our client that the property provides the following approximate gross internal areas: Description sq m sq ft Warehouse Ground 1,634.56 17,594 Warehouse Mezzanine 133.82 1,440 Offices Ground 121.62 1,309 Offices First 113.62 1,223 Total 2,003.62 21,566
TENURE & TENANCY Freehold. The property is let to Strong s Plastic Products Limited (company no: 01877530) by way of a reversionary lease expiring on 20 th September 2023. The rent passing of 100,000 per annum equates to 4.64 per sq ft and there are no further rent reviews. The lease is drawn on full repairing and insuring terms and is subject to a schedule of condition.
TENANT Strong s Plastic Products Ltd (company no: 01877530) are a UK based specialist manufacturer of bespoke emergency and service vehicle backs. See strongs.co.uk. Strong s are regarded as one of Europe's foremost high grade polymer fabricators, with a worldwide customer base. The business is entirely owned by two Directors / family members. Summary figures for the business are set out below, under Section 444 of the Companies Act 2006 the company opted to submit abbreviated accounts for 2012*. Date to 30-Apr-12 30-Apr-11 30-Apr-10 30-Apr-09 30-Apr-08 Turnover * 3,420,000 2,802,000 2,992,000 2,747,000 Pre Tax Profit * 200,000 351,000 355,000-206,000 Shareholder's Funds 724,000 780,000 623,000 396,000 122,000 RENTAL VALUE The rent passing of 100,000 pa was originally set in 2005, but the reversionary lease dated 17 th December 2013 held the rent passing at the same level in return for a new unbroken lease term expiring September 2023 with a 6 month rent free period. In our view, the rent passing of 4.64 per sq ft offers a sound base for future rental growth. PRICE 1,110,000, subject to contract and exclusive of VAT, reflecting a net initial yield of 8.5% after assuming purchaser s costs at 5.80%.
FURTHER INFORMATION Contact: Telephone: Mobile: Email: Jonathan Pugh 0207 486 9441 / 0203 174 1251 07884 310 995 jonathan@bakerpughmclean.com DECLARATION Misrepresentation Act 1967: Baker Pugh McLean (BPM Investment Consultants Ltd) for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BPM nor any person in their employment has any authority to make or give any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quote exclusive of VAT. Property Misdescriptions Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Date & Status: January 2014 - Final. 6