prime multilet investment opportunity
PRIME MULTILET INVESTMENT OPPORTUNITY BRACKMILLS BUSINESS PARK | RHOSILI ROAD | NORTHAMPTON | NN4 7PN
INVESTMENT SUMMARY n Located on Brackmills Industrial Estate, Northampton. n Prominent location at the entrance to one of the Midlands premier industrial estates. n Tenants include Howdens Joinery and Stertil UK Ltd. n Fully let estate totalling approximately 80,604 sq ft (7,488.29 sq m). n Average weighted unexpired term of 4 years 1 months. n Freehold. n A site area of approximately 4.86 acres. n A site density of 38%. n Total rent - £380,923 pa. n We are instructed to quote a price of £4,770,000 (four million, seven hundred and seventy thousand pounds) which would show a net initial yield of 7.5% after allowing for normal acquisition costs of 6.58%.
PAGE 2
LOCATION Northampton is located approximately 67 miles north of London, 20 miles north of Milton Keynes, 57 miles west of Cambridge and 33 miles south-east of Coventry. The property is located on Brackmills Industrial Estate which is regarded as Northamptonshire’s principal industrial estate.
A6
A42 A42
A38
M6
A44
A605
Kettering
A1(M)
A142 A142
A14 A14
A1
NORTHAMPTON
Newmarket A14
Cambridge Bedford A421
M40 A43
Banbury
A5095 A11
M11
A1
A5
NOR
Milton Keynes
A45
Stevenage Stanstead
A40
A417
Oxford
Cirencester
M40
A1(M) A1(M) Hertford
Hemel Hempstead
High Wycombe
M25
A414 A505 A414 Hatfield
M1
A34
Maidenhead Slough
A40
Reading A436
LILIPUT ROAD
MERCURY DRIVE
Harlow
M11
SALTHOUSE ROAD
M25
RHOSILI ROAD
A12
A420
Swindon
Northampton is conveniently located for air travel with good access via the M1 motorway to Luton 35 miles to the south, East Midlands 34 miles to the north, Birmingham 48 miles to the north-west and Heathrow 66.6 miles to the south.
A41
A428
BRACKMILLS INDUSTRIAL ESTATE
15
A419
Aylesbury
MPT ON
M1
Luton A34
A428
THA
A505 A505
A44 A40
RHOSILI ROAD NORTHAMPTON NN4 7PN
A141 A141
A45
A423
A46 Stratford upon-Avon A429
The A508 runs through the town and also connects with the M1 motorway Junction 15 about 1.5 miles to the south. The A14 lies to the north of Northampton, providing access to the east coast ports of Harwich and Felixstowe. Northampton also has good rail communications with London Midland and Virgin Train services providing access into London Euston station with a fastest journey time of approximately 50 minutes.
M45
A46
Warwick
A14
A1122
A1139 A1139
Corby
Coventry
BirminghamA45 Rugby A452 A452
Peterborough
A47
M69 M1 A5
BRACKMILLS BUSINESS PARK
A47
A606
Hinckley
M6
A15 A15
A1
Leicester
M42
Road communications in the area are excellent with the A45 road running just to the south of the town, connecting with the M1 motorway at Junction 15, about 1.5 miles to the west.
A607 A607
A46 A46
M4
M4
Heathrow
A41
TO
A12
LONDON Richmond
M
1
J
Dartford
KILVEY ROAD
CASWELL ROAD
A20
CASWELL ROAD
Staines
M4
ROAD DISTANCES:
AIRPORTS DISTANCES:
DESTINATION
MILES
DESTINATION
MILES
M1 Junction 15
1.5
East Midlands
56.6
A14 via A43
15.7
Birmingham
46.8
A14 via A45
22.0
Luton
37.9
Central London
67.0
Heathrow
66.6
Birmingham
58.3
Gatwick
104.0
Leicester
41.2
PAGE 3
DACHSER
GREAT BEAR
HOWDENS SOLUTIONS GROUP
2.8 Miles to Northampton 15.7 Miles to A14
PML
BAXTER
DALEPAK CLIPPER ART GROUP
DECATHLON HARVEY NICHOLS
TURBO TECHNICS
WICKES WICKES
A45
YODEL
BRITISH PEPPER & SPICE
TRAVIS PERKINS
COUNTRY LION
JOHN LEWIS
MISWA CHEMICALS LTD
JOHNSON & STARLEY
JOHN LEWIS
FESTO
TECHNICOLOUR
1.5 Miles to M1 J15
DACHSER
IPSL BARCLAYCARD
SITUATION The property is situated on the Brackmills Industrial Estate to the south-east of Northampton. Brackmills is the largest industrial estate in Northampton. The estate has attracted major occupiers including Travis Perkins, Coca Cola, John Lewis, and Barclaycard. The subject property is situated to the front of the estate on a highly prominent corner site, at the junction of Caswell Road and Rhosili Road. The A45 forms a ring road to the southern boundary of Northampton town centre and provides direct access to the M1.
PAGE 4
DESCRIPTION The property comprises an industrial estate made up of four units over two terraces. The units benefit from main road frontage onto Rhosili Road and Caswell Road immediately at the entrance of the wider Brackmills Industrial Estate.
C D
The buildings are arranged in a courtyard format and are constructed of steel portal frames with pitched roofs with part brick and profile clad elevations. The buildings benefit from a minimum eaves height of 6 m. Externally the site benefits from a central car parking area and yard areas to the rear of the individual units, access to the site is via an electronically operated sliding gate. We set out below the accommodation.
B A
UNIT
SQ FT
SQ M
A
17,237
1,601.36
B
19,696
1,829.82
C
28,566
2,653.86
D
15,105
1,403.30
TOTAL
80,604
7,488.29
A
Stertil UK LTD
B
Concorde Tyre & Exhaust Centres LTD
C
Daisy IT Services LTD
D
Howden Joinery Corporate Services LTD
NOT TO SCALE PAGE 5
TENANCY SCHEDULE UNIT
TENANT
AREA
RENT
LEASE START
LEASE
NEXT RENT REVIEW
NEXT BREAK
EPC
COMMENTS
A
Stertil UK Ltd
17,237
£76,585 pa (£4.44 psf)
25/03/2014
24/03/2024
25/03/2019
24/03/2019
D82
Tenant only break on 6 months’ notice
B
Concorde Tyre & Exhaust Centres Ltd
19,696
£90,000 pa (£4.56 psf)
17/04/2014
16/04/2024
17/04/2019
N/A
C69
Rent deposit equivalent to 6 months
C
Daisy IT Services Ltd
28,566
£127,696 (£4.47 psf)
29/07/2013
28/07/2018
N/A
N/A
C68
Original lease in the name of Pheonix IT
D
Howden Joinery Corporate Services Ltd
15,105
£77,500 pa* (£5.13 psf)
25/12/2013
24/12/2022
25/12/2018
N/A
C59
Guarantee from Howden Joinery Group Plc.
80,604
£380,923
Total Weighted Average
4 years 1 months
3 years 1 months
* In addition to the annual rent on unit D, there are various wayleave / licence for which rent is payable. Total additional rent is £9,142.20 pa.
PAGE 6
COVENANT STATUS Set out below is financial information relating to the tenants and / or guarantors in respect of the various units.
UNIT A
YEAR ENDING
Stertil UK Ltd (company number 01103855)
31 DEC 2014
31 DEC 2013
31 DEC 2012
£’000s
£’000s
£’000s
Net worth
3,828,143
3,126,649
2,471,328
Turnover
15,854,658
15,157,948
13,854,386
Pre-tax profit
888,316
865,155
806,376
UNIT B
YEAR ENDING
31 AUG 2014
31 MAR 2013
31 MAR 2012
£’000s
£’000s
£’000s
Concorde Tyre and Exhaust Centre (company number 07554616)
Net worth
(1,465,784)
(466,475)
(73,703)
Turnover
-
-
211,853
Pre-tax profit
-
-
(73,705)
UNIT C
YEAR ENDING
31 MAR 2015
31 MAR 2014
31 MAR 2013
£’000s
£’000s
£’000s
Daisy IT Services Ltd (company number 01466217)
Net worth
8,447
6,435
7,375
Turnover
106,204
125,680
128,589
Pre-tax profit
3,033
(20,619)
11,308
UNIT D
YEAR ENDING
27 DEC 2014
28 DEC 2013
29 DEC 2011
£’000s
£’000s
£’000s
Howden Joinery Corporate Services Ltd (company 01767386)
Net worth
(18,372)
(25,619)
(34,150)
Turnover
49,211
48,861
44,183
Pre-tax profit
380
1,760
(333)
YEAR ENDING
27 DEC 2014
28 DEC 2013
29 DEC 2012
£’000s
£’000s
£’000s
Net worth
291,500
258,000
108,800
Turnover
1,090,800
956,500
887,100
Pre-tax profit
188,800
133,900
112,100
We are advised that there is a guarantee from Howden Joinery Group Plc (company number 02128710) whose figures are as follows:
PAGE 7
TENURE The property is freehold.
SITE The site is approximately 4.86 acres (38% site density).
VAT The property is elected for VAT and this will be applicable on the purchase price.
PROPOSAL We are instructed to see offers in excess of £4,770,000 (four million, seven hundred and seventy thousand pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 7.5%, after allowing for purchaser’s costs of 6.58%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact either of the following:
PETER KEIR
TOM KIMBELL
[email protected]
[email protected]
020 7493 2180
024 7663 6888
07889 908 267
07920 005 471
Avison Young for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as general outline only for the guidance of intended purchasers or lessees, and do not constitute part of; an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Avison Young has any authority to make or give any representation or warranty whatever in relation to this property SEPTEMBER 2016
PAGE 8
INVESTMENT SUMMARY n Located on Brackmills Industrial Estate, Northampton. n Prominent location at the entrance to one of the Midlands premier industrial estates. n Tenants include Howdens Joinery and Stertil UK Ltd. n Fully let estate totalling approximately 80,604 sq ft (7,488.29 sq m). n Average weighted unexpired term of 4 years 1 months. n Freehold. n A site area of approximately 4.86 acres. n A site density of 38%. n Total rent - £380,923 pa. n We are instructed to quote a price of £4,770,000 (four million, seven hundred and seventy thousand pounds) which would show a net initial yield of 7.5% after allowing for normal acquisition costs of 6.58%.
PAGE 2
LOCATION Northampton is located approximately 67 miles north of London, 20 miles north of Milton Keynes, 57 miles west of Cambridge and 33 miles south-east of Coventry. The property is located on Brackmills Industrial Estate which is regarded as Northamptonshire’s principal industrial estate.
A6
A42 A42
A38
M6
A44
A605
Kettering
A1(M)
A142 A142
A14 A14
A1
NORTHAMPTON
Newmarket A14
Cambridge Bedford A421
M40 A43
Banbury
A5095 A11
M11
A1
A5
NOR
Milton Keynes
A45
Stevenage Stanstead
A40
A417
Oxford
Cirencester
M40
A1(M) A1(M) Hertford
Hemel Hempstead
High Wycombe
M25
A414 A505 A414 Hatfield
M1
A34
Maidenhead Slough
A40
Reading A436
LILIPUT ROAD
MERCURY DRIVE
Harlow
M11
SALTHOUSE ROAD
M25
RHOSILI ROAD
A12
A420
Swindon
Northampton is conveniently located for air travel with good access via the M1 motorway to Luton 35 miles to the south, East Midlands 34 miles to the north, Birmingham 48 miles to the north-west and Heathrow 66.6 miles to the south.
A41
A428
BRACKMILLS INDUSTRIAL ESTATE
15
A419
Aylesbury
MPT ON
M1
Luton A34
A428
THA
A505 A505
A44 A40
RHOSILI ROAD NORTHAMPTON NN4 7PN
A141 A141
A45
A423
A46 Stratford upon-Avon A429
The A508 runs through the town and also connects with the M1 motorway Junction 15 about 1.5 miles to the south. The A14 lies to the north of Northampton, providing access to the east coast ports of Harwich and Felixstowe. Northampton also has good rail communications with London Midland and Virgin Train services providing access into London Euston station with a fastest journey time of approximately 50 minutes.
M45
A46
Warwick
A14
A1122
A1139 A1139
Corby
Coventry
BirminghamA45 Rugby A452 A452
Peterborough
A47
M69 M1 A5
BRACKMILLS BUSINESS PARK
A47
A606
Hinckley
M6
A15 A15
A1
Leicester
M42
Road communications in the area are excellent with the A45 road running just to the south of the town, connecting with the M1 motorway at Junction 15, about 1.5 miles to the west.
A607 A607
A46 A46
M4
M4
Heathrow
A41
TO
A12
LONDON Richmond
M
1
J
Dartford
KILVEY ROAD
CASWELL ROAD
A20
CASWELL ROAD
Staines
M4
ROAD DISTANCES:
AIRPORTS DISTANCES:
DESTINATION
MILES
DESTINATION
MILES
M1 Junction 15
1.5
East Midlands
56.6
A14 via A43
15.7
Birmingham
46.8
A14 via A45
22.0
Luton
37.9
Central London
67.0
Heathrow
66.6
Birmingham
58.3
Gatwick
104.0
Leicester
41.2
PAGE 3
DACHSER
GREAT BEAR
HOWDENS SOLUTIONS GROUP
2.8 Miles to Northampton 15.7 Miles to A14
PML
BAXTER
DALEPAK CLIPPER ART GROUP
DECATHLON HARVEY NICHOLS
TURBO TECHNICS
WICKES WICKES
A45
YODEL
BRITISH PEPPER & SPICE
TRAVIS PERKINS
COUNTRY LION
JOHN LEWIS
MISWA CHEMICALS LTD
JOHNSON & STARLEY
JOHN LEWIS
FESTO
TECHNICOLOUR
1.5 Miles to M1 J15
DACHSER
IPSL BARCLAYCARD
SITUATION The property is situated on the Brackmills Industrial Estate to the south-east of Northampton. Brackmills is the largest industrial estate in Northampton. The estate has attracted major occupiers including Travis Perkins, Coca Cola, John Lewis, and Barclaycard. The subject property is situated to the front of the estate on a highly prominent corner site, at the junction of Caswell Road and Rhosili Road. The A45 forms a ring road to the southern boundary of Northampton town centre and provides direct access to the M1.
PAGE 4
DESCRIPTION The property comprises an industrial estate made up of four units over two terraces. The units benefit from main road frontage onto Rhosili Road and Caswell Road immediately at the entrance of the wider Brackmills Industrial Estate.
C D
The buildings are arranged in a courtyard format and are constructed of steel portal frames with pitched roofs with part brick and profile clad elevations. The buildings benefit from a minimum eaves height of 6 m. Externally the site benefits from a central car parking area and yard areas to the rear of the individual units, access to the site is via an electronically operated sliding gate. We set out below the accommodation.
B A
UNIT
SQ FT
SQ M
A
17,237
1,601.36
B
19,696
1,829.82
C
28,566
2,653.86
D
15,105
1,403.30
TOTAL
80,604
7,488.29
A
Stertil UK LTD
B
Concorde Tyre & Exhaust Centres LTD
C
Daisy IT Services LTD
D
Howden Joinery Corporate Services LTD
NOT TO SCALE PAGE 5
TENANCY SCHEDULE UNIT
TENANT
AREA
RENT
LEASE START
LEASE
NEXT RENT REVIEW
NEXT BREAK
EPC
COMMENTS
A
Stertil UK Ltd
17,237
£76,585 pa (£4.44 psf)
25/03/2014
24/03/2024
25/03/2019
24/03/2019
D82
Tenant only break on 6 months’ notice
B
Concorde Tyre & Exhaust Centres Ltd
19,696
£90,000 pa (£4.56 psf)
17/04/2014
16/04/2024
17/04/2019
N/A
C69
Rent deposit equivalent to 6 months
C
Daisy IT Services Ltd
28,566
£127,696 (£4.47 psf)
29/07/2013
28/07/2018
N/A
N/A
C68
Original lease in the name of Pheonix IT
D
Howden Joinery Corporate Services Ltd
15,105
£77,500 pa* (£5.13 psf)
25/12/2013
24/12/2022
25/12/2018
N/A
C59
Guarantee from Howden Joinery Group Plc.
80,604
£380,923
Total Weighted Average
4 years 1 months
3 years 1 months
* In addition to the annual rent on unit D, there are various wayleave / licence for which rent is payable. Total additional rent is £9,142.20 pa.
PAGE 6
COVENANT STATUS Set out below is financial information relating to the tenants and / or guarantors in respect of the various units.
UNIT A
YEAR ENDING
Stertil UK Ltd (company number 01103855)
31 DEC 2014
31 DEC 2013
31 DEC 2012
£’000s
£’000s
£’000s
Net worth
3,828,143
3,126,649
2,471,328
Turnover
15,854,658
15,157,948
13,854,386
Pre-tax profit
888,316
865,155
806,376
UNIT B
YEAR ENDING
31 AUG 2014
31 MAR 2013
31 MAR 2012
£’000s
£’000s
£’000s
Concorde Tyre and Exhaust Centre (company number 07554616)
Net worth
(1,465,784)
(466,475)
(73,703)
Turnover
-
-
211,853
Pre-tax profit
-
-
(73,705)
UNIT C
YEAR ENDING
31 MAR 2015
31 MAR 2014
31 MAR 2013
£’000s
£’000s
£’000s
Daisy IT Services Ltd (company number 01466217)
Net worth
8,447
6,435
7,375
Turnover
106,204
125,680
128,589
Pre-tax profit
3,033
(20,619)
11,308
UNIT D
YEAR ENDING
27 DEC 2014
28 DEC 2013
29 DEC 2011
£’000s
£’000s
£’000s
Howden Joinery Corporate Services Ltd (company 01767386)
Net worth
(18,372)
(25,619)
(34,150)
Turnover
49,211
48,861
44,183
Pre-tax profit
380
1,760
(333)
YEAR ENDING
27 DEC 2014
28 DEC 2013
29 DEC 2012
£’000s
£’000s
£’000s
Net worth
291,500
258,000
108,800
Turnover
1,090,800
956,500
887,100
Pre-tax profit
188,800
133,900
112,100
We are advised that there is a guarantee from Howden Joinery Group Plc (company number 02128710) whose figures are as follows:
PAGE 7
TENURE The property is freehold.
SITE The site is approximately 4.86 acres (38% site density).
VAT The property is elected for VAT and this will be applicable on the purchase price.
PROPOSAL We are instructed to see offers in excess of £4,770,000 (four million, seven hundred and seventy thousand pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 7.5%, after allowing for purchaser’s costs of 6.58%.
FURTHER INFORMATION For further information or to arrange an inspection, please contact either of the following:
PETER KEIR
TOM KIMBELL
[email protected]
[email protected]
020 7493 2180
024 7663 6888
07889 908 267
07920 005 471
Avison Young for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as general outline only for the guidance of intended purchasers or lessees, and do not constitute part of; an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Avison Young has any authority to make or give any representation or warranty whatever in relation to this property SEPTEMBER 2016
PAGE 8
