ON THE INSTRUCTIONS OF A. RODGER ESQ AND R. N. PHILLIPS ESQ HIGH YIELDING INDUSTRIAL INVESTMENT OF INTEREST TO INVESTORS, DEVELOPERS & OWNER OCCUPIERS CROSSLEY PARK CROSSLEY ROAD HEATON CHAPEL STOCKPORT SK4 5BF
WELLINGTON ROAD NORTH CROSSLEY ROAD LOUVOLITE CROSSLEY PARK MCVITIES BISCUITS M60 AND STOCKPORT TOWN CENTRE 2 MILES WFEL LTD DISCOVERY PARK WEST COAST MAIN LINE INVESTMENT SUMMARY SITUATED WITHIN THE STOCKPORT CONURBATION CLOSE TO JUNCTION 1 OF THE M60 MOTORWAY SUBSTANTIAL COMPLEX OF 343,452 SQFT TOGETHER WITH OPEN STORAGE LAND EXCELLENT OPPORTUNITIES TO IMPROVE INCOME THROUGH REFURBISHMENT AND LETTING OF VACANT ACCOMMODATION; REDUCING SERVICE CHARGE/ INSURANCE/RATES SHORTFALLS 13.89 ACRE SITE OFFERING MEDIUM TERM REDEVELOPMENT OPPORTUNITIES OFFERS IN EXCESS OF 3,350,000 (THREE MILLION, THREE HUNDRED AND FIFTY THOUSAND POUNDS) REPRESENTING A NET INITIAL YIELD OF 12.4% AND A REVERSIONARY YIELD IN EXCESS OF 26.8% LOW CAPITAL VALUE OF 9.75 PER SQFT APPROXIMATE CURRENT GROSS INCOME 645,335.64 WITH POTENTIAL ERV OF 949,540.51
LOCATION MACRO LOCATION Stockport is located in the north west of England approximately 7 miles south east of Manchester city centre, 32 miles west of Sheffield and 38 miles east of Liverpool. It forms part of the Greater Manchester area and benefits from excellent transport communications. The town is situated immediately to the south of the M60 motorway which forms part of Manchester s ring road. Rail services run direct to Manchester Piccadilly station and to London Euston. The fastest journey time to London Euston is 1 hour 55 minutes and to Manchester Piccadilly it is 12 minutes. Stockport is located approximately 9 miles north east of Manchester Airport which provides flights to both domestic and international destinations. 12 M62 A57 Flixton 7 A580 Eccles 10 M56 16 A56 2 Altrincham 18 17 19 M60 Salford Sale M602 A56 A560 6 3 A576 M60 3 A5103 65 MANCHESTER Manchester Airport A538 2 Didsbury 20 3 2 Cheadle A34 Middleton 2 Newton Heath 21 M60 Failsworth A57 Reddish 1 27 22 23 24 M67 25 Stockport A523 Denton MICRO LOCATION Crossley Park Industrial Estate is situated on Crossley Road, immediately off the Wellington Road North dual carriageway. It is situated in the Heaton Chapel District of the town being approximately 6.7 km (4.2 miles) south of Manchester city centre and 3.2 km (2 miles) north of Stockport town centre. The immediate surrounding area is a mix of residential and commercial with other major occupiers including McVities Biscuits, WFEL Limited and Louvolite. The estate has excellent motorway connections with junctions 1 and 27 of the M60 orbital motorway being within 1.5 miles. The M60 provides connections for the M56, M67 and M62 and general access around the conurbation. THE SITE HEATON MOOR A5145 M60 HEATON CHAPEL 1 B5169 26 Stockport Rail Station B5167 26 M60 Merseyway Shopping Centre SOUTH REDDISH STOCKPORT 26
WFEL LTD LOUVOLITE DISCOVERY PARK WEST COAST MAIN LINE CROSSLEY PARK MCVITIES BISCUITS CROSSLEY ROAD WELLINGTON ROAD NORTH DESCRIPTION The property offers a substantial industrial complex of approximately 343,452 sqft developed on a site of approximately 13.89. The complex has been sub-divided providing a mixture of warehouse, office and open storage accommodation: The building is essentially of brick construction under steel truss roofs. Elements of the complex have been refurbished having metal profile clad elevations. Eaves height of the warehouses is between 4.35m and 5.45m Offering a range in sizes and specification, the complex offers flexible accommodation appealing to a wide occupational market Approximately 1.63 of open storage and secure compound area to the rear of the site Separate two storey offices have been provided offering generous small suites ranging between 200 sqft and 3,320 sqft. Specification includes perimeter trunking, part suspended ceilings and carpeted floors 24 hour security lodge controlling access into the estate (facility provided and also used by adjoining occupiers who contribute to the cost of running) is situated at the front of the estate
ACCOMMODATION Individual units have been measured on a Gross Internal Area (GIA) basis in accordance with the RICS Code of Measuring Practice (6th Edition) and provide an approximate total floor area of 343,452 sqft with units ranging in size from 206 sqft to 122,698 sqft. A full breakdown of the floor areas is provided on the tenancy schedules overleaf. I DISCOVERY PARK H ENTRANCE 6 F B A C G D E 4D 4E 4C 4 4B 4A 3 2A 2B 2C 2D/E 1B/C 1A Crossley Road
Discovery Park Crossley Park SITE AREA The property occupies a site of approximately 13.89. We are of the opinion the site offers excellent medium term redevelopment opportunities. TENURE The estate is held predominantly freehold with a small area of land being long leasehold for a term of 999 years from 5 July 1996. (This area is shown tinted red on the ordnance survey plan above).
TENANCY DETAILS The property is let in accordance with the tenancy schedule below currently producing a gross income of 629,090.87 per annum following completion of the lettings of units 3 and 4D. All leases are drawn generally on full repairing and insuring terms via service charge contribution, although a number of leases are subject to a schedule of condition or service charge cap as highlighted on the next page. There are currently 26 agreements with a mixture of leases and licences. UNIT SIZE (SQ FT) TENANT LEASE DETAILS RENT ( PER SQFT) ERV EXPIRY (BREAK) COMMENTS 1A 8,718 Bramall Construction Ltd 5 yrs from 05/11/2007 30,450 (3.49) 30,450 (3.49) 04/11/2012 Lease subject to schedule of condition. 1B & 1C 26,062 The Furnishing Service Ltd 15 yrs from 21/01/2008 66,945.54 (2.57) 78,186 (3.00) 20/01/2023 (20/01/2015) Rent increases 21 Jan 2012 to 73,461.04. Lease subject to schedule of condition. Break subject to 6 months notice. Rent review 21/01/2013 & 2018 2A 25,154 Ford Retail Ltd 6 yrs from 22/12/2009 85,000 (3.38) 85,000 (3.38) 21/12/2015 (22/12/2012) Break subject to 12 months notice. Lease subject to schedule of condition. 2B 25,362 The European Van Company Ltd (guaranteed by Alvan BVbg of Laconjastraat) 3 yrs from 30/09/2008 60,000 (3.38) 60,000 (3.38) 29/09/2011 Tenant not in occupation. 2C 18,872 Senator Textile Services Group Ltd (guaranteed by B J Crossley) 5 yrs from 03/12/2007 63,750 (3.40) 63,950 (3.40) 02/12/2012 Lease subject to schedule of condition. 2D & 2E 37,982 B2B1 Point Solutions Ltd 9 yrs from 20/10/2006 129,000 (3.40) 129,000 (3.40) 19/10/2015 (20/10/2012) Break subject to 6 months notice. Rent review 19 Oct 2011. 3 62,682 Selnec Preservation Society (charity) Licence Agreement 8,000 (0.12) 94,023 (1.50) Occupied by charity on licence agreement. Rolling 3 month break. Unit 4D 2,696 Under Offer to Manchester Community Transport Limited 7 years 13,175 (4.88) 13,480 (5.00) 2018 (2013) Tenant s break anytime after 2013 on 12 months notice. Unit 4E 2,416 Senator Textile Services Group Ltd (guaranteed by B J Crossley) Unit 4F(1) 1,200 Senator Textile Services Group Ltd (guaranteed by B J Crossley) 10 yrs from 22/04/2010 9 yrs, 6 months, 24 days from 29/09/2010 5,250 (2.17) 6,000 (5.00) 12,080 (5.00) 6,000 (5.00) 4 A-C 122,698 Vacant 184,047 (1.50) 21/04/2020 (02/12/2013) 21/04/2020 (02/12/2013) Rent increases 31/12/2012 to 10,269 pa and subject to review 22/04/2015. Break subject to 6 months notice. Rent review 22/04/2015 Unit 6 1,678 Vacant 5,034 (3.00) Pt 1st Flr Rm 1 206 Fallowfield Vechile Deliveries Ltd 2 yrs, 7 months, 15 days from 16/05/2010 500 (2.42) 500 (2.42) 30/12/2012 Landlords break at anytime on 3 months notice. Pt 1st Flr Rm 2 251 Jonathan Monk 6 yrs, 1 month, 22 days from 11/07/2008 1,050 (4.18) 1,050 (4.18) 01/09/2014 Tenant has given notice to terminate on 25/10/11.
UNIT SIZE (SQ FT) TENANT LEASE DETAILS RENT ( PER SQFT) ERV EXPIRY (BREAK) COMMENTS Land & Offices 3-6 Crossley Park 820 Fallowfield Vehicle Deliveries Ltd 6 yrs from 31/12/2006 27,294 30,000 30/12/2012 Rent deposit of 8,017.61 Rooms 7 & 7a 434 TSL Projects Ltd 6 yrs, 4 months, 9 days from 24/04/2008 4,150 (9.56) 4,150 (9.56) 01/09/2014 Rooms 8-14 & 16 2,901 Vacant 8,703 (3.00) Offices 21 & 22 3,320 Condense Heat Ltd 5 yrs from 01/05/2007 21,487 (6.47) 21,487 (6.47) 30/04/2012 Tenant s service charge fixed at 3,450 pa. Land A 0.46 Manchester Community Transport Ltd 10 yrs from 14/07/2008 30,000 30,000 13/07/2018 (14/07/2013 Tenant s break subject to 12 month notice. Also landlord s break at anytime after 14/07/2013 subject to 12 months notice. Rent reviews 14/07/2013 and 2018. Land B 1.07 SNM Pipelines Ltd 6 yrs from 27/03/2007 48,317.30 48,317.30 26/03/2013 Tenant pays service charge. Land C & Parking Space 0.05 Bramhall Construction Limited 4yrs, 2 months & 16 days from 20/08/08 3,000 3,000 Notice running to expiry 25/09/11. Land D & E 0.1 Jonathan Monk 4 yrs, 9 months and 14 days from 19/11/2009 4,800 4,805 01/09/2014 Land F 0.15 Stonewood Construction Ltd 6 yrs, 2 months, 30 days from 03/06/2008 4,750 4,750 01/09/2014 Tenant s break on 6 months notice or landlords on 3 months. No service charge paid. Land G 0.05 Shane Potter 5 yrs from 07/05/2010 3,000 3,000 06/05/2015 (07/05/2012) Tenant s break on 6 months notice or landlord s on 3 months on or anytime after 2012. Land H 0.15 LAR Ltd 3 yrs, 24 days from 07/10/2008 9,000 9,000 30/10/2011 (anytime on 3 Landlord s break on 3 months notice. 5 Parking Space Scott Patrick Gilligan 6 yrs from 20/05/2008 3,000 3,000 19/05/2014 Mast 1 N/A Telecom Securicor Cellular Radio Ltd 10 yrs from 27/10/2000 3,388.86 3,388.86 N/A Mast 2 N/A National Grid Wireless Ltd 14 yrs, 11 months, 3 days from 27/10/2000 6,339 5,450.41 N/A Mast 3 N/A Orange PCS Ltd 20 years from 24/06/2003 7,688.94 7,688.94 23/06/2023 (every 3 months) Rent review every 3 years to RPI increase. TOTALS 343,452 645,335.64 949,540.51
SERVICE CHARGE There is a service charge for the estate paid by the majority of tenants for the repair and maintenance of estate roads, landscaping and provision of the gate house and 24 hour security. The current service charge budget is running at approximately 211,111 pa equating to 0.41p psf for the warehouse and 3.00 psf for the office accommodation for the period 2011-2012. The management company which controls the adjacent Discovery Park, pay 46.99% towards the cost of common repairs and the gatehouse/security. Based upon the above rates, the service charge shortfall because of vacant accommodation and service charge caps is approximately 95,000. Other landlord shortfalls because of vacant space: Insurance 31,352 Rates 80,000* * Many units do not currently have assessments; costs of empty rates are therefore estimated. Full service charge information can be supplied to interested parties. ESTIMATED RENTAL VALUE Based upon our opinion of the estimated rental values we believe the property offers significant reversionary potential with the current rental value for the estate being in the order of 949,540.51 per annum. In addition there are opportunities to improve rental values through the refurbishment/upgrading of the accommodation and through creating improved yard areas to the some of the units. VAT VAT will be payable on the purchase price at the current standard rate. Purchasers are advised that it may be possible to treat the transaction as a TOGC dependent upon vendor and purchaser status.
PROPOSAL We have been instructed to seek offers in excess of 3,350,000 (Three Million, Three Hundred and Fifty Thousand Pounds) which reflects an attractive net initial yield of 12.4% net of purchaser s costs at 5.8% and based on a net rent of 438,983.64 per annum after deducting service charge, insurance and rate shortfalls. Based upon our opinion of the estimate rental value, the opportunity offers a reversionary yield in excess of 26.8%, net of purchaser s costs at 5.8%. FURTHER INFORMATION For further information on the property or to arrange access for a viewing please do not hesitate to contact: DAVID WINTERBOTTOM 0161 956 4103 david.winterbottom@gva.co.uk GURMINDER MANAK 0161 956 4105 gurminder.manak@gva.co.uk GVA is the trading name of GVA Grimley Limited. GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission 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 satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. JULY 2011. DESIGNED AND PRODUCED BY ALEXANDER MACGREGOR LTD. WWW. ALEXANDERMACGREGOR.CO.UK