Secure Industrial and Office Ground Rent Investment...

Queensway Industrial EstateDunlop Way & Arkwright Way, Scunthorpe, DN16 3RN

Secure Industrial and Office Ground Rent Investment Opportunity

Investment Summary• Strategic location adjacent to A18 Queensway, the town’s southern link road.

• Close proximity to HumberPort, the UK’s largest, multi-purpose ports complex, serving the North of the UK.

• The property consists of two elements, these being Unit 5 Queensway, which comprises a modern warehouse / food production facility of 60,721 sq ft (5,663.14 sq m) and Units 17A – 17K Queensway Court, which comprises 9 detached offices held on long leases.

• Unit 5 Queensway is let to TSC Foods Limited by way of a renewed lease for a term of 10 years from 1 October 2015 at a rent of £172,000 per annum (£2.83 psf).

• Freehold.

• Units 17A – 17K Queensway Court are held on eleven 125 year leases (less 3 days) from 1 January 1990 producing an aggregate ground rent of £57,000 per annum.

• Unit 5 Queensway Industrial Estate

We are instructed to seek offers in excess of £2,030,000 (Two Million and Thirty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser’s costs of 5.80%, a purchase at this level would reflect a net initial yield of 8.00% (assuming the rent free is topped up). This reflects a modest capital value of £33.43 psf.

• Unit 17A- 17K Queensway Court

We are instructed to seek offers in excess of £1,080,000 (One Million and Eighty Thousand Pounds), subject to contract and exclusive of VAT. After allowing for usual purchaser’s costs of 5.80%, a purchase at this level would reflect a net initial yield of 4.99%.

• Although it is envisaged that the two elements will be sold separately, consideration will also be given to offers received for both elements combined.


LocationScunthorpe is the main commercial and administrative centre for North Lincolnshire with a catchmentpopulation of approximately 150,000 people.

The town is situated a short distance to the south of the Humber Estuary, some 50 miles (80km) south east ofLeeds, 20 miles (32km) east of Doncaster, 30 miles (48km) south of Hull and 143 miles (230km) north of London.

The town benefits from excellent transport links, with access to Junction 3 of the M180 approximately 4 miles (6km) south of the town centre via the M181. The M180 provides direct access to Grimsby, theM18 and the national motorway network. In addition, the Humber Bridge is just 15 miles (24km) to thenorth linking the town to Kingston upon Hull and the Humber Ports complex (HumberPort).

HumberPort is the UK’s largest, multi-purpose ports complex, serving the North of the UK. It is the UK’s busiestport complex and 4th busiest in Europe, handling over 85 million tonnes of cargo. Humber-based logisticscompanies ship directly to more than 50 countries with well over 100 shipping lines operating regularly.HumberPort also generates more than 250 rail movements per week – over 25% of the UK’s rail freight traffic.

Situation The property is situated approximately 2.5 miles to the south east of the town centre adjacent to the A18Queensway, which acts as the town’s southern link road, connecting to the west with the M181 and the M18to the south east. Access to the property is from Dunlop Way & Arkwright Way via Brigg Road (A1029),close to its junction with the A18.

Leeds Bradford

Robin Hood

Humberside

3

30

33 32

31

34

36

35

34

36

37

38

37

38

4

152

4

5

43

30

31 3233 34

36

1

27

41

40

39

38

37

6

M1

M1

M1

M18

M18

M62

M62M621

M180 M181

A1(M)

A1(M)

Birstall

Dewsbury

Beverley

Selby

Stocksbridge

Goole

Thorne

Pontefract

Tadcaster

Castleford

Worksop

HemsworthImmingham

Scunthorpe

Wakefield

Barnsley

Rotherham

Grimsby

DONCASTER

HULL

LEEDS

SHEFFIELD

3

A18

M181

M180

M180

A18

A18

A18A18

ASH

BY ROAD

BRIGG ROAD

MESSIN

GH

AM

ROA

D


Key

HumberPortComplex

QueenswayIndustrial Estate

Location DistanceJunction 3 M180 4 MilesHumber Bridge 15 MilesHull 30 MilesDoncaster 20 MilesLeeds 50 MilesHumberside Airport 15 MilesLondon 143 Miles

QueenswayIndustrial Estate

DescriptionThe property consists of two distinct elements, these being;

Unit 5, Queensway Industrial Estate

The property comprises a modern industrial / food production facility of steel portal framed construction,arranged over two bays, with block and facing brick elevations surmounted by profiled metal sheeting,beneath a profiled metal sheet roof.

Internally the tenant has invested heavily in the building which has been fitted out with insulated panelsystems to provide hygiene safe environments for food preparation/processing, together with a variety ofcold and chilled stores. Part of the warehouse remains in use for ambient storage.

Heating within the ambient warehouse is provided by means of gas fired warm air blowers, with lightingvia a mixture of high intensity and fluorescent tube lighting.

To the front of the building are two storeys of office accommodation. This area has been fitted out to includecarpeted floors and suspended ceilings incorporating recessed fluorescent tube lighting. Heating isprovided by means of a hot water radiator system.

Loading is made via 2 level access doors and 4 dock level loading doors.

To the rear of the site is a detached warehouse, which provides ancillary space to the main factory. Thebuilding is of steel portal framed construction, with full height profiled metal sheet elevations, beneath aprofiled metal sheet roof. Loading is made via 2 roller shutter doors.

There are two points of access into the site from Arkwright Way, with the main loading area positioned atthe northern end of the building, with car parking along the eastern boundary adjacent to the offices.

Units 17A-17K Queensway Court

The property comprises 9 detached pavilion style two storey office buildings, accessed from Arkwright Way.The offices were built in 1990 and are of traditional brick construction beneath pitched tiled roofs.

AccommodationCalculated on a gross internal basis, Unit 5 Queensway Industrial Estate provides for a demised floor areaof 60,721 sq ft (5,641.12 sq m). In addition, the tenant has installed a mezzanine floor and an extension tothe first floor offices, which are not currently rentalised. Further information is available upon request.


SITEThe industrial unit is supported on a site of 1.394 hectares (3.444 acres), as edged red on the OS Plan, thusproviding for a site cover of approximately 40%.

The offices are supported on a site of 0.889 hectares (2.196 acres), as shown edged blue on the OS Plan.



Unit Tenant Lease start Lease expiry Annual rent GBPUnit 17A Computerised Training Systems 01/01/1990 28/12/2114 4,061Unit 17B Computerised Training Systems 01/01/1990 28/12/2114 4,061Unit 17C Knight House Strata Holdings Ltd 01/01/1990 28/12/2114 4,061Unit 17D Knight House Strata Holdings Ltd 01/01/1990 28/12/2114 4,061Unit 17E Viscount House Eamonn John Cannon 01/01/1990 28/12/2114 3,173Unit 17F Duchess House Windsor Associates Ltd 01/01/1990 28/12/2114 7,138Unit 17G Regent House Booth & Phipps (Garages) Ltd 01/01/1990 28/12/2114 5,795Unit 17H Princess House Judith Taylor 01/01/1990 28/12/2114 4,579Unit 17I Prince House B E Clarke & R A Noal 01/01/1990 28/12/2114 5,795Unit 17J Sovereign House Windsor Associates Ltd 01/01/1990 28/12/2114 7,138Unit 17K Monarch House Peter Thomas Hatchard 01/01/1990 28/12/2114 7,138

TOTAL 57,000

tenureThe property is held Freehold.

tenanciesUnit 5, Queensway Industrial Estate

The property is let to TSC Foods Limited by way of a renewed lease for a term of 10 years from 1 October 2015at a passing rent of £172,000 per annum (£2.83 psf). The lease is drawn on full repairing and insuring termsand provides for an upwards only rent review at the end of the 5th year to market value. The tenant has beengranted a 9 month rent free incentive, structured as 18 months at half rent, which the vendor will top up.

TSC have been in occupation of the property since 1993. They also own the adjacent building and leasea further two units opposite, thus signalling their commitment to the area.

Units 17A-17K Queensway Court

The offices are held on 11 leases for lease terms 125 years (less 3 days) from 1 January 1990 producingan aggregate ground rent of £57,000 per annum. Rent reviews are 5 yearly and are calculated as 21.15%of the Market Rental Value of the offices.

An estate service charge is also payable by the long leaseholders, which is apportioned on a floor areabasis. Further information can be provided upon request.The ground rents are summarised below:

covenantTSC Foods Limited is the newest member of The Billington Group, which is a growing familyof food and agriculture businesses based in the UK. TSC prides itself on being at the cuttingedge of chilled and frozen food product development. The company specialise in deliveringinnovative added-value chilled and frozen product solutions for Food Service, Retail B2B andExport partners. The business was founded more than two decades ago, producing chilledsoups and sauces for its customers.

Today, the company’s portfolio has expanded to consist of a wide range of products includingrisottos, prepared cooked vegetables, dips, dressings, gravies, marinades, recipe dish, sous videmeats, couscous, fresh pickles & chutneys, sweet sauces and compotes. TSC’s mostrecognisable brand/product is its Glorious! Soups and sauces, which are sold in Morrisons,Asda and Sainsbury’s supermarkets.

The company has a D&B Rating of 4A 1. Further information can be found at www.tscfoods.com

A summary of the tenant’s latest accounts are summarised below:

Year ending Turnover Pre-tax profit Tangible net Net currentGBP GBP worth assets

GBP GBP

31 August 2014 32,322,510 2,285,491 20,518,305 14,223,462

31 August 2013 45,241,000 4,241,000 18,709,000 12,409,000

31 August 2012 44,217,000 3,439,000 15,245,000 9,101,000


EPCThe EPC rating for the TSC Foods unit is C (69). A copy is available upon request.

VATThe property is elected for VAT and it is envisaged that the sale will be treated as a Transfer ofa Going Concern (TOGC).

DATA RoomFurther information is available upon request.

proposalUnit 5 Queensway Industrial Estate

We are instructed to seek offers in excess of £2,030,000 (Two Million and Thirty ThousandPounds), subject to contract and exclusive of VAT. After allowing for usual purchaser’s costs of5.80%, a purchase at this level would reflect a net initial yield of 8.00% (assuming the rent freeis topped up). This reflects a modest capital value of £33.43 psf.

Unit 17A- 17K Queensway Court

We are instructed to seek offers in excess of £1,080,000 (One Million and Eighty ThousandPounds), subject to contract and exclusive of VAT. After allowing for usual purchaser’s costs of5.80%, a purchase at this level would reflect a net initial yield of 4.99%.

Although it is envisaged that the two elements will be sold separately, consideration will alsobe given to offers received for both elements combined.

contactFor further information or to arrange an inspection please contact:

Nick Wales Graham Foxton Henrie WestlakeKnight Frank LLP Knight Frank LLP Knight Frank LLP7th Floor 9 Bond Court 9 Bond CourtFountain Precinct Leeds LeedsBalm Green LS1 2JZ LS1 2JZSheffieldS1 2JA

Tel: 0114 272 9750 Tel: 0113 297 2420 Tel: 0113 297 2420Mob: 07767 291353 Mob: 07717 546786 Mob: 07879 [email protected] [email protected] [email protected]

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 in the particulars or by word of mouth or in writing ("information") as being factually accurate about theproperty, 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 useof, 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 allinformation 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. October 2015. Designed & produced bywww.thedesignexchange.co.uk Tel: 01943 604500.


Secure Industrial and Office Ground Rent Investment...

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