PRIME REVERSIONARY SINGLE LET INVESTMENT Selling on behalf of A C Wright & S J Hunt - Joint LPA Receivers
INVESTMENT SUMMARY Strategically situated in an established industrial location, with easy access to the A48(M) providing direct links to Junctions 29 and 30 of the M4 motorway. Two modern detached industrial units of 58,107 sq ft (C1) and 9,087 sq ft (C2). Situated on a site of approximately 3.6 acres with a low site coverage of 38%. Unit C1 benefits from front and rear access together with 10 dock level loading doors. Tenant s FRI leases with 5.6 years unexpired. Low passing rents of 200,000 per annum ( 3.44 per sq ft) and 40,000 per annum ( 4.40 per sq ft), providing excellent rental growth prospects. Secure self contained site with potential to sub-divide. Freehold. We are seeking offers in excess of 2,800,000 (Two Million, Eight Hundred Thousand Pounds) for our client s freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 8.05% and a low capital value of 41.67 per sq ft. 02
CARMARTHEN CHELTENHAM GLOUCESTER A1(M) OXFORD LOCATION Cardiff, which has a population of approximately 346,000, is the capital city of Wales and is located 146 miles west of Central London, 40 miles west of Bristol and 42 miles east of Swansea. Cardiff is the heart of commercial activity in Wales and is the base of the Welsh Government. SWANSEA M4 CARDIFF NEWPORT M5 TAUNTON M5 BRISTOL BATH M4 SWINDON SALISBURY NEWBURY BASINGSTOKE M3 M40 READING M4 M3 M25 M25 LONDON M25 M25 GUILDFORD M23 CRAWLEY CARDIFF GATE BUSINESS PARK J30 M4 SITUATION PENTEYN RD PENTEYN DR PENTEYN RD EASTERN RD A48 CARDIFF GATE RETIAL PARK AVENUE BUSINESS PARK LINK RD PENTWYN BRID GE RD A48 A48 (M) PENTWYN DRIVE CROESCADARN ROAD PENTWYN DRIVE PENTWYN ROAD The subject property is located on Avenue Industrial Estate in Pentwyn, approximately 5 miles north east of Cardiff city centre. The estate is strategically located in close proximity to the A48 (M), which provides dual carriageway access to Junctions 29 and 30 of the M4 motorway. The estate is accessed from Croescadarn Close via an estate road. UNITS 1 & 2 A4232 Avenue Industrial Estate is an established industrial location surrounded by mixed uses including, industrial, office, car showroom, retail, leisure and residential. Nearby commercial occupiers include RSR, Waitrose (supermarket), Stratstone Jaguar (dealership), Panasonic, Boots (distribution unit), The Village Inn and Spire Hospital. A48 EASTERN AVE 03
DESCRIPTION C1 & C2 Avenue Industrial Estate comprise modern detached industrial units totaling 67,194 sq ft across two buildings. Externally, there is dedicated on site car parking and loading yard areas with internal service roads. The site is enclosed with security fencing and a gated entrance. Unit C1 Constructed in 2002/2003, the specification includes; Steel frame Profile sheet cladding incorporating roof lights Internal eaves height of 8m 10 electric roller shutter dock level loading doors High quality, two storey office accommodation with air conditioning, suspended ceilings, recessed lighting and carpeted floors Unit C2 Constructed in 1980, the specification includes; Steel frame Profile sheet cladding incorporating roof lights Internal eaves height of 4.85m 1 roller shutter dock level loading door 1 loading door with ramp access Ground floor ancillary offices 04
Def 5 a Units C1 & C2 Units C1 and C2, Avenue Industrial Estate, Pentwyn, Cardiff, CF23 8HE Depot Issues SITE 3 to 4 The site extends to an area of approximately 1.46 hectares (3.60 acres), with a site coverage of 38%. 8 TENURE El Sub Sta Tank Freehold. Boro Const, Asly Const & ED Bdy Mast TENANCIES Def 0m 10m 20m 30m Ordnance Survey Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Crown Copyright. Unit Tenant Size (sq ft) C1 Morgard Court Ltd (on assignment from Gardvenus Ltd) Lease Start Lease Expiry Rent Review 58,107 16/01/2013 15/01/2023 16/01/2018 Current Rent (pa) 200,000 ( 3.44 per sq ft) C2 Morgard Court Ltd (on assignment from Gardvenus Ltd) 9,087 16/01/2013 15/01/2023 16/01/2018 40,000 ( 4.40 per sq ft) Total 67,194 240,000 05
COVENANT Morgard Court Ltd are trading as Gardners, established in 1976. Gardners are a digital print provider, being one of the largest super wide printers in the UK. Their latest filed accounts are summarised as follows. Year End Turnover Pre Tax Profit Shareholders Funds 31/07/2015 9,876,849 22,944 31,877 31/07/2014 11,079,641 260,589 243,786 31/07/2013 11,585,212 278,527 230,567 Gardners fully occupy both units and have recently made substantial investment into new plant and machinery. ENERGY PERFORMANCE CERTIFICATE Unit C1 has an energy performance rating of C74. Unit C2 has an energy performance rating of D77. Further details are available on request. VAT We understand the property is elected for VAT. It is anticipated that the sale can be treated as a Transfer of Going Concern (ToGC). 06
MARKET COMMENTARY The industrial property market has continued a steady improvement in 2016/2017 with particular activity in urban logistics, the energy and trade counter sectors. Around 5 million sq ft of industrial floor-space was taken up in Wales in 2016, of which circa 3 million sq ft (60%) involved units over 50,000 sq ft and take-up was 38% higher than in 2015. At the end of 2016, there was 10.8 million sq ft of floor-space available across Wales, a decrease of 5% over 12 months. The M4 Motorway corridor across south east wales remains the prime industrial and logistics location with increased rents and capital values. There is a notable shortage of new industrial floor space and new speculative development across South Wales is limited. Logistics activity has focused on parcel delivery points from 10,000 to 60,000 sq ft within the M4 corridor, between Cardiff and Newport. The subject property is well suited for its current manufacturing use however, it is also suitable for the logistics sector with its key property attributes including dock level loading, good eaves height (8m), secure yard/parking and a strategic location providing easy access to the national road network. The only speculative new build in South Wales of circa 50,000 sq ft is St Modwen s Unit 1, Celtic Business Park in Newport. This unit has recently been let to Amazon on a new 10 year lease at a rent equating to 5.50 per sq ft. 07
PROPOSAL We are seeking offers in excess of 2,800,000 (Two Million, Eight Hundred Thousand Pounds) for our client s freehold interest, subject to contract and exclusive of VAT. VIEWING AND FURTHER INFORMATION Viewing strictly by prior appointment with the sole agent: A purchase at this level reflects a net initial yield of 8.05% after deducting usual purchaser s costs of 6.43% and a low capital value of 41.67 per sq ft. JLL Justin Millett Jennie Howells One Kingsway, Cardiff CF10 3AN 029 2072 6006 justin.millett@eu.jll.com 029 2072 6021 jennie.howells@eu.jll.com Crown Copyright 2017. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law Copyright. Jones Lang LaSalle IP Inc May 2017. All rights reserved.