high yielding single let industrial investment llantarnam park, cwmbran ...
HIGH YIELDING SINGLE LET INDUSTRIAL INVESTMENT
LLANTARNAM PARK, CWMBRAN NP44 3HB
Investment Summary • Freehold • Located in Llantarnam Park, Cwmbran, one of the premier commercial locations on the M4 Corridor. • Strategically located just 3 miles north of Junctions 25, 25A and 26 of the M4. • The property comprises a well specified industrial warehouse of 56,550 sq ft with integral offices set within a generous site of 4.55 acres and a low site cover of 29%. • Let to Zodiac Seats UK Ltd at a current rent of £228,544 per annum (£4.04 per sq ft). • Zodiac Seats are a global company and have a D&B Rating of 5A1. • Unexpired term of just under 2.5 years to break and just under 10 years to expiry. • There is a strong occupational story with the tenant in full occupation and having invested heavily in refurbishing the offices in the last 12 months. They have a large presence on the estate including the adjacent unit, which is circa 110,000 sq ft.
Seeking offers in excess of £2,160,000, reflecting an attractive Net Initial Yield of 10% and a low Capital Value of £38 per sq ft. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
A465
5
A46
Tredegar
2 A404
Raglan A4
6 A46
0 A47
1 A4
A4
19
32
M
24
8
27 A4
8
23
29
A48
50 A40
16
20 15
17
19
18
2
Avonmouth
M3
19
CARDIFF
20
BRISTOL
M5
A4
7
Weston-Super-Mare
8
A3
A3
70
A3
Barry
21
M4
2
Cardiff Airport
VE
M4
23
A48
PAIG HOUSE
22
NEWPORT
28
N
R
A48
M4
A4
33
4 26 25a 25
ER
M5
A468
Caerphilly
70
Chepstow
PAIG HOUSE
30
M4
V SE RI
61
Newbridge
Pontypridd
34
8
A4
Usk Cwmbran
For identification purposes only
21
BRISTOL CHANNEL M5
Situation
Ty Coch Lane
The town has a strong retail presence comprising the Cwmbran Shopping Centre (ranked 32nd in UK, 3rd in Wales), which is a regionally dominant shopping centre owned by M&G, together with the foodstore provision (Sainsbury’s, Asda, Morrison’s) and Cwmbran Retail Park, which is owned by UBS. Major retailers include House of Fraser, Marks & Spencer and Primark. The business space for the town is located primarily to the south of the town centre at Llantarnam Park.
7 A46
9 A46
A 40
The town is strategically located with Junctions 26, 25 and 25a of the M4 motorway approximately 4 miles to the south, with access being provided via the A4051 and A4042 respectively. There is a regular direct train service to Cardiff and Newport with respective journey times approximately 30 minutes and 10 minutes.
0
Pontypool
Ysrad Mynach
35
37
Monmouth
A4
Ebbw Vale
5 A46
Cwmbran is located 6.5 miles north of Newport, 16 miles north east of Cardiff 465 and 14 miles south ofAAbergavenny. It Aberdare sits within Torfaen, which is a county A40 borough of South Wales within the 59 historic boundaries Neathof the affluent SWANSEA County. Torfaen has Tonypandy Monmouthshire A405 8 a population of 91,000 and is the 3rd most densely41populated county in 41 Wales. Cwmbran has a population Tonyrefail 40 of approximately 39 47,250 and was established in 194938as the only “new Llantrisant town” development in South Wales. 36
Abergavenny
M4 9
Location
0 A47
A4
49
059
WE FIGHT ANY CLAIM
22
SAT NAV : NP44 3HB
SPRINGBOARD BUSINESS INNOVATION
Llantarnam Business Park is regarded as one of the premier commercial locations on the M4 Corridor. Its easily accessible from the M4 being located only 3 miles north of Junction 26, 25 and 25A of the M4 motorway and accessed via the A4042. Llantarnam Park also offers a range of ancillary services including retail and hotel and Cwmbran Town Centre is just 1 mile to the north of the Park providing a good selection of retail and leisure.
EZITRACKER (UK) SPEAR (EUROPE) LLANTARNUM INDUSTRIAL PARK PARKWAY HOTEL & SPA
ra Cwmb e
n Driv
Llantarnam Park is a popular mixed-use business destination including a strong presence of companies in the aeronautical, electronic, software and high tech sectors. Major occupiers include Concordia, Electrospark, South Wales Police, Torfaen Council and Hyder Consulting.
NAGRA KUDELSKI
XUBER
LAKESIDE PARK
COOPER CONTROLS PAIG HOUSE
Ty C
oc
hL
an
e
KESTREL HOUSE
The subject property is situated in a prominent location on Lakeside Close at its junction with Llantarnam Parkway, which is the main road running through the business Park. The tenant also occupies the adjacent 110,000 sq ft industrial unit, Kestrel House as well as three other units in the business park.
Description The property comprises a well specified industrial warehouse of steel portal frame construction with profile steel clad elevations beneath a pitched roof. The property comprises an open warehouse area with a clear internal eaves height of 8.7m and integral 2 storey offices. The unit sits on a generous site of 4.55 acres (low site cover of 29%), which is predominantly used for car parking by the tenant. The property has an EPC Rating of C65 (a copy of the report is available on request). There is a strong occupational story with the tenant, Zodiac Seats, who are involved with the manufacture and assembly of airline seats. They have been in occupation for 15+ years. The subject property, Paig House, is occupied by the production/manufacturing element of their business with the adjacent Kestrel House also occupied by the tenant and used for the assembly element. They are also in occupation of 3 other units in Llantarnam Park, comprising circa 50,000 sq ft in total and are used for R&D, stores and a small element of production. We understand that the tenant is committed to the building and the location demonstrated by the term certain at the adjacent Kestrel House being circa 10 years which coincides with the lease expiry of the subject property which is also in 2025. The is further demonstrated by the tenants recent investment into the subject property by extensively refurbishing the offices with further investment already earmarked to upgrade the lighting in the warehouse. Given the lack of recent development across the M4 corridor the subject property remains one of the more modern units of this size, in the region, and compares favourably to its competition.
Convenant Profile
Accommodation The unit comprises 56,550 sq ft (5,253.7 sq m). In addition there is a small detached Energy Centre to the rear of the property occupied by the switch rooms and a workshop comprising 1,378 sq ft (127.9 sq m). The property has been measured in accordance with the RICS Code of Measuring Practise on a Gross Internal Basis. The property sits on a site of 4.55 acres and has a low site cover of 29%.
Tenure Freehold
Tenancy The property is let to Zodiac Seats UK Ltd on a 12 year 6 month FRI lease from 12th June 2013 expiring 11th December 2025. The lease is subject to 5 yearly upward only rent reviews and a tenant only break option on 11th June 2018 subject to 6 months notice and a break penalty of £57,136. The current rent is £228,544 per annum (£4.04 per sq ft).
Zodiac Seats UK Ltd is an industry leader in the design and development of First and Business Class aircraft seating, cabin furniture, monuments, bar & stowage units; supplying to the world’s major airlines and OEMs. The UK company is part of Zodiac Aerospace which has its headquarters in France and has circa 35,000 employees across 100 sites worldwide. Zodiac Seats UK Ltd has a Dun & Bradstreet rating of 5A1, the highest achievable rating.
Financial Summary
Sales Turnover
Fiscal Fiscal Fiscal Non consolidated Non consolidated Non consolidated GBP GBP GBP 31 Aug 2014 31 Aug 2013 31 Aug 2012 (000’s) (000’s) (000’s)
215,350
175,326
86,872
Profit / (Loss) Before Taxes
35,377
15,044
1,946
Tangible Net Worth
55,740
47,814
40,093
Net Current Assets (Liabilities)
55,860
49,262
37,390
VAT The property is elected for VAT and it’s anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).
Investment Considerations
Proposal
• Freehold.
We are seeking offers in excess of £2,160,000, Subject to Contract and Exclusive of VAT, reflecting an attractive Net Initial Yield of 10%, after deducting standard purchaser’s costs of 5.8%, and a low Capital Value of £38 per sq ft.
• Llantarnam Park is regarded as one of the premier commercial locations on the M4 Corridor. Strategically located just 3 miles north of J26, 25 and 25A of the M4. • Well specified industrial warehouse comprising 56,550 sq ft, with a clear eaves height of 8.7m. • Zodiac Seats are a large multi national company and the tenant has a D&B rating of 5A1, the highest achievable rating. • In the last financial year ending 31st August 2014 they produced a Turnover of £215,350,000, a Pre Tax Profit of £35,377,000 and a Net Worth of £55,740,000. • Zodiac Seats have a large presence at Llantarnam Park including the adjacent 110,000 sq ft unit. Zodiac Seats have been in occupation for over 15 years. They are in full occupation and have recently carried out a significant refurbishment of the offices. • The property is rack rented but with a lack of modern competing stock there are strong prospects for rental growth.
Further Information For further information or to arrange a viewing please contact either:
• The quoting price of £2,160,000 offers an attractive net initial yield of 10% and a low capital value of £38 per sq ft which is in line with vacant possession value. • The short income profile offers the opportunity to add value once the break has either passed or been removed.
Gareth Lloyd Tel: 02920 440 141 [email protected] Rob Jones Tel: 02920 440 128 [email protected] Subject to Contract & Exclusive of VAT
February 2016
Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or Lambert Smith Hampton in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. Photography: February 2016
Design by Martin Hopkins Partnership, Cardiff. Tel: 029 2046 1233 www.martinhopkins.co.uk
LLANTARNAM PARK, CWMBRAN NP44 3HB
Investment Summary • Freehold • Located in Llantarnam Park, Cwmbran, one of the premier commercial locations on the M4 Corridor. • Strategically located just 3 miles north of Junctions 25, 25A and 26 of the M4. • The property comprises a well specified industrial warehouse of 56,550 sq ft with integral offices set within a generous site of 4.55 acres and a low site cover of 29%. • Let to Zodiac Seats UK Ltd at a current rent of £228,544 per annum (£4.04 per sq ft). • Zodiac Seats are a global company and have a D&B Rating of 5A1. • Unexpired term of just under 2.5 years to break and just under 10 years to expiry. • There is a strong occupational story with the tenant in full occupation and having invested heavily in refurbishing the offices in the last 12 months. They have a large presence on the estate including the adjacent unit, which is circa 110,000 sq ft.
Seeking offers in excess of £2,160,000, reflecting an attractive Net Initial Yield of 10% and a low Capital Value of £38 per sq ft. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
A465
5
A46
Tredegar
2 A404
Raglan A4
6 A46
0 A47
1 A4
A4
19
32
M
24
8
27 A4
8
23
29
A48
50 A40
16
20 15
17
19
18
2
Avonmouth
M3
19
CARDIFF
20
BRISTOL
M5
A4
7
Weston-Super-Mare
8
A3
A3
70
A3
Barry
21
M4
2
Cardiff Airport
VE
M4
23
A48
PAIG HOUSE
22
NEWPORT
28
N
R
A48
M4
A4
33
4 26 25a 25
ER
M5
A468
Caerphilly
70
Chepstow
PAIG HOUSE
30
M4
V SE RI
61
Newbridge
Pontypridd
34
8
A4
Usk Cwmbran
For identification purposes only
21
BRISTOL CHANNEL M5
Situation
Ty Coch Lane
The town has a strong retail presence comprising the Cwmbran Shopping Centre (ranked 32nd in UK, 3rd in Wales), which is a regionally dominant shopping centre owned by M&G, together with the foodstore provision (Sainsbury’s, Asda, Morrison’s) and Cwmbran Retail Park, which is owned by UBS. Major retailers include House of Fraser, Marks & Spencer and Primark. The business space for the town is located primarily to the south of the town centre at Llantarnam Park.
7 A46
9 A46
A 40
The town is strategically located with Junctions 26, 25 and 25a of the M4 motorway approximately 4 miles to the south, with access being provided via the A4051 and A4042 respectively. There is a regular direct train service to Cardiff and Newport with respective journey times approximately 30 minutes and 10 minutes.
0
Pontypool
Ysrad Mynach
35
37
Monmouth
A4
Ebbw Vale
5 A46
Cwmbran is located 6.5 miles north of Newport, 16 miles north east of Cardiff 465 and 14 miles south ofAAbergavenny. It Aberdare sits within Torfaen, which is a county A40 borough of South Wales within the 59 historic boundaries Neathof the affluent SWANSEA County. Torfaen has Tonypandy Monmouthshire A405 8 a population of 91,000 and is the 3rd most densely41populated county in 41 Wales. Cwmbran has a population Tonyrefail 40 of approximately 39 47,250 and was established in 194938as the only “new Llantrisant town” development in South Wales. 36
Abergavenny
M4 9
Location
0 A47
A4
49
059
WE FIGHT ANY CLAIM
22
SAT NAV : NP44 3HB
SPRINGBOARD BUSINESS INNOVATION
Llantarnam Business Park is regarded as one of the premier commercial locations on the M4 Corridor. Its easily accessible from the M4 being located only 3 miles north of Junction 26, 25 and 25A of the M4 motorway and accessed via the A4042. Llantarnam Park also offers a range of ancillary services including retail and hotel and Cwmbran Town Centre is just 1 mile to the north of the Park providing a good selection of retail and leisure.
EZITRACKER (UK) SPEAR (EUROPE) LLANTARNUM INDUSTRIAL PARK PARKWAY HOTEL & SPA
ra Cwmb e
n Driv
Llantarnam Park is a popular mixed-use business destination including a strong presence of companies in the aeronautical, electronic, software and high tech sectors. Major occupiers include Concordia, Electrospark, South Wales Police, Torfaen Council and Hyder Consulting.
NAGRA KUDELSKI
XUBER
LAKESIDE PARK
COOPER CONTROLS PAIG HOUSE
Ty C
oc
hL
an
e
KESTREL HOUSE
The subject property is situated in a prominent location on Lakeside Close at its junction with Llantarnam Parkway, which is the main road running through the business Park. The tenant also occupies the adjacent 110,000 sq ft industrial unit, Kestrel House as well as three other units in the business park.
Description The property comprises a well specified industrial warehouse of steel portal frame construction with profile steel clad elevations beneath a pitched roof. The property comprises an open warehouse area with a clear internal eaves height of 8.7m and integral 2 storey offices. The unit sits on a generous site of 4.55 acres (low site cover of 29%), which is predominantly used for car parking by the tenant. The property has an EPC Rating of C65 (a copy of the report is available on request). There is a strong occupational story with the tenant, Zodiac Seats, who are involved with the manufacture and assembly of airline seats. They have been in occupation for 15+ years. The subject property, Paig House, is occupied by the production/manufacturing element of their business with the adjacent Kestrel House also occupied by the tenant and used for the assembly element. They are also in occupation of 3 other units in Llantarnam Park, comprising circa 50,000 sq ft in total and are used for R&D, stores and a small element of production. We understand that the tenant is committed to the building and the location demonstrated by the term certain at the adjacent Kestrel House being circa 10 years which coincides with the lease expiry of the subject property which is also in 2025. The is further demonstrated by the tenants recent investment into the subject property by extensively refurbishing the offices with further investment already earmarked to upgrade the lighting in the warehouse. Given the lack of recent development across the M4 corridor the subject property remains one of the more modern units of this size, in the region, and compares favourably to its competition.
Convenant Profile
Accommodation The unit comprises 56,550 sq ft (5,253.7 sq m). In addition there is a small detached Energy Centre to the rear of the property occupied by the switch rooms and a workshop comprising 1,378 sq ft (127.9 sq m). The property has been measured in accordance with the RICS Code of Measuring Practise on a Gross Internal Basis. The property sits on a site of 4.55 acres and has a low site cover of 29%.
Tenure Freehold
Tenancy The property is let to Zodiac Seats UK Ltd on a 12 year 6 month FRI lease from 12th June 2013 expiring 11th December 2025. The lease is subject to 5 yearly upward only rent reviews and a tenant only break option on 11th June 2018 subject to 6 months notice and a break penalty of £57,136. The current rent is £228,544 per annum (£4.04 per sq ft).
Zodiac Seats UK Ltd is an industry leader in the design and development of First and Business Class aircraft seating, cabin furniture, monuments, bar & stowage units; supplying to the world’s major airlines and OEMs. The UK company is part of Zodiac Aerospace which has its headquarters in France and has circa 35,000 employees across 100 sites worldwide. Zodiac Seats UK Ltd has a Dun & Bradstreet rating of 5A1, the highest achievable rating.
Financial Summary
Sales Turnover
Fiscal Fiscal Fiscal Non consolidated Non consolidated Non consolidated GBP GBP GBP 31 Aug 2014 31 Aug 2013 31 Aug 2012 (000’s) (000’s) (000’s)
215,350
175,326
86,872
Profit / (Loss) Before Taxes
35,377
15,044
1,946
Tangible Net Worth
55,740
47,814
40,093
Net Current Assets (Liabilities)
55,860
49,262
37,390
VAT The property is elected for VAT and it’s anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).
Investment Considerations
Proposal
• Freehold.
We are seeking offers in excess of £2,160,000, Subject to Contract and Exclusive of VAT, reflecting an attractive Net Initial Yield of 10%, after deducting standard purchaser’s costs of 5.8%, and a low Capital Value of £38 per sq ft.
• Llantarnam Park is regarded as one of the premier commercial locations on the M4 Corridor. Strategically located just 3 miles north of J26, 25 and 25A of the M4. • Well specified industrial warehouse comprising 56,550 sq ft, with a clear eaves height of 8.7m. • Zodiac Seats are a large multi national company and the tenant has a D&B rating of 5A1, the highest achievable rating. • In the last financial year ending 31st August 2014 they produced a Turnover of £215,350,000, a Pre Tax Profit of £35,377,000 and a Net Worth of £55,740,000. • Zodiac Seats have a large presence at Llantarnam Park including the adjacent 110,000 sq ft unit. Zodiac Seats have been in occupation for over 15 years. They are in full occupation and have recently carried out a significant refurbishment of the offices. • The property is rack rented but with a lack of modern competing stock there are strong prospects for rental growth.
Further Information For further information or to arrange a viewing please contact either:
• The quoting price of £2,160,000 offers an attractive net initial yield of 10% and a low capital value of £38 per sq ft which is in line with vacant possession value. • The short income profile offers the opportunity to add value once the break has either passed or been removed.
Gareth Lloyd Tel: 02920 440 141 [email protected] Rob Jones Tel: 02920 440 128 [email protected] Subject to Contract & Exclusive of VAT
February 2016
Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or Lambert Smith Hampton in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. Photography: February 2016
Design by Martin Hopkins Partnership, Cardiff. Tel: 029 2046 1233 www.martinhopkins.co.uk
