For Sale Fully Let Trade Counter Investment Opportunity producing a net income of 107,500 per annum exclusive
Investment summary Trade counter investment opportunity located in a well established industrial estate. Extends to approximately 37,698 sq ft with car parking on a self contained site of 1.42 acres. Occupies a corner position with frontage onto Duncrue Crescent and backs onto Dargan Road. Fully let to 6 separate tenants including City Electrical Factors and E McIntyre & Sons. Currently producing a net rental income of 107,500 per annum. WAULT of 6.14 years to expiry and 5.37 years to the break. We are seeking offers in the region of 1,150,000 exclusive (One Million, One Hundred and Fifty Thousand Pounds Sterling), subject to contract and exclusive of VAT. An offer at this level reflects the following yield profile (assuming purchasers costs of 5.89%):- Net Initial Yield 8.82% Reversionary Yield 10.18% The asking price reflects an attractive capital value of 30.52 per square foot.
Location Northern Ireland s population of approximately 1.8 million people is one of Europe s youngest and fastest growing with over 40% age 29 and under and almost 60% under the age of 40. Belfast has a resident population of approx. 281,000 persons which represents 15.5% of Northern Ireland s total population of 1.81 million. The wider Belfast metropolitan area has a population extending to approx. 650,000 of the Northern Ireland population (approx 36%). Over 60% of Belfast s total population are of working age. It is also a young city, with 18.6% of the population under 16 years old (2011 census). Situation Situated in one of Belfast s most sought after logistics/ industrial locations, the property occupies a highly prominent location within the Duncrue area. There are a large number of major companies that are located in the area. Belfast city centre is located approximately 1.5 miles away. The property is within close proximity to the Port s major RoRo and Container terminals and benefits from excellent road links to the M2 motorway via Dargan Road and the Fortwilliam interchange. The Duncrue area comprises of a mixture of showroom, warehouses, business units and offices. For Indicative Purposes Only Description The subject investment comprises a purpose built trade counter park totalling 37,698 sq ft. The park consists of 6 units of steel portal frame construction with cladded elevations and roof incorporating translucent roof lights. Internally each unit benefits from powder floated concrete floors, 3 phase power supply, WC, facilities, showroom area, trade counter, office accommodation and the majority of the units benefitting from additional mezzanine storage. Externally the units benefit from aluminium double glazed trade counter entrance, electronic roller shutter access to warehouse and external security lighting. There is communal car parking for the benefit of all the tenants. Externally the site is bounded by perimeter fencing and a gated entrance. For Indicative Purposes Only
Site Area We estimate the site area to be approximately 1.42 acres. Tenancies The property is currently let to six separate tenants on effective full repairing and insuring terms by way of a service charge (c. 0.35 per sq ft). Copy leases are available on request. Area (Sq Ft) Lease Details Rent (per annum) Floor Tenant Ground First Overall EPC Lease Length (yrs/days) Lease Start Lease Expiry Next Review Earliest Break Passing Overall psf Comments Unit 1 Electrical & Allied Distributors Ltd 6,248 3,257 9,505 D90 5 15.03.2017 14.03.2022-14.03.2022 30,000 3.16 Unit 2 Engine & Truck Ltd 2,913 1,335 4,248 D86 10 01.02.2017 31.01.2027 01.02.2022 31.01.2027 17,500 4.12 12 months rent free from commencement (topped up by vendor). Rent increases to 18,500 pa in Year 3, 19,500 pa in Year 4 and 20,000 pa in Year 5. Unit 3A PCM Engineering Services Ltd 7,187 1,859 9,046 C56 5 01.12.2016 20.11.2021-20.11.21 20,000 2.21 Rent topped up to 20,000 pa by vendor. Rent increases to 26,000 pa in Year 3, 30,000 pa in Year 4 and 32,000 pa in Year 5. Unit 3B Sykes Bathrooms Ltd 4,838 764 5,602 C73 10 01.09.2014 31.08.2024 01.09.2019 31.08.2024 22,000 3.93 Rent increases to 24,000 pa in Year 5. Unit 4 E McEntyre & Sons Ltd 4,547 1,230 5,777 E103 5 01.03.2017 28.02.2022-28.02.2022 25,000 4.33 Unit 5 City Electrical Factors 3,500 0 3,500 C67 25 07.01.2000 06.01.2025 07.01.2020 06.01.2020 21,000 6.00 Total 37,678 135,500 * The above leases provide for a weighted average unexpired lease term (WAULT) of 6.14 years to expiry and 5.37 years to the break. Tenure The property is held Long Leasehold for a term of 99 years from 1 May 1982 Belfast City Council, subject to an annual ground rent of 28,000 per annum, effective from 1 May 2017 subject to a 7 yearly review pattern to market rent. Taking account of the ground rent payable, the current net income is 107,500 per annum.
Title Title and contract are available for inspection at the offices of King & Gowdy Solicitors, 298 Upper Newtownards Road, Belfast, BT4 3EJ. Contact: Colin Gowdy Tel: 028 9065 9511 Email: cdg@king-gowdy.co.uk Value Added Tax We understand the property has been elected for VAT and it is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC). Proposal We are seeking offers in the region of 1,150,000 exclusive (One Million, One Hundred and Fifty Thousand Pounds Sterling), exclusive of VAT and subject to contract. An offer at this level would reflect a capital value of 30.52 psf and the following yield profile (assuming purchasers costs of 5.89%):- Net Initial Yield 8.82% Reversionary Yield 10.18% Contacts For further information or to arrange a viewing, please contact: Douglas Wheeler Martin McCloy Ian Harbinson 028 9026 9202 028 9026 9236 028 9026 9257 dwheeler@lsh.ie mmccloy@lsh.ie iharbinson@lsh.ie Subject to Contract and Exclusive of VAT Lambert Smith Hampton January 2017 Lambert Smith Hampton Clarence House 4/10 May Street Belfast BT1 4NJ 028 9032 7954 Disclaimer: 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 enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant 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.