UNIT BROADOAK - Edwards & Co. · a 30 year lease expiring 24 March 2019 (3.5 years unexpired) Rent...

EXECUTIVE SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION TENURE/TENANCY/EPC/VAT COVENANT STATUS PROPOSAL

UNITBROADOAKINDUSTRIALPARK

1ASHBURTON ROAD WEST

TRAFFORD PARKMANCHESTER M17 1RW

HIGH BAY INDUSTRIAL INVESTMENT



Industrial Investment, located on Trafford Park

62,391 sq ft high bay distribution unit

Freehold

Let to Kerry Logistics UK Limited by way of a 30 year lease expiring 24 March 2019 (3.5 years unexpired)

Rent passing £234,000 per annum, reflecting £3.75 per sq ft

EXECUTIVE SUMMARY

Offers are sought in excess of £2,600,000 (Two Million Six Hundred Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level would reflect a Net Initial Yield of 8.5%, after allowing usual purchasers costs of 5.8%.

EXECUTIVE SUMMARY


1115

61

1021A

291

121

115

41

10 14

M56

M53

M6

M6

M6

M6

M61

M65

M65

M66 M62

M67

M6

M55

M58

M57

M60

M62

M62

M602

12

11

11

10

75

2

3

4

44

4

5

5

5

6

67

89

10

11

12

13

14

8

6

7

1

3

9

9

1011

14

1617

19

19

20

20

21

21

22

20

21

22

23

24

25

26

27

28

30

29

31

32

19

18

17

16

15

14

87 6

6

5

54

3 3

3

3

2

3

3

3

41

3

2

1

22

27 2625

24

23

12

98

765

4

3

2

1

M606M621

M1A1(M)

M18

A1

A1(M)

A1(M)

A1(M)

A1

A1(M)

A66(M)

M1

M1

M1M62

M62

M62

M181

M180

M180

38

37

36

34

33 32

32

31

30

35

36

38

29 30

31

28

44

45

46

3232a

47

45

44

26

25

24

23

37

33

Shipley

38

37

36

35

6

51

3

4

5

2

34

Wigan

Bolton

Chorley

Leyland

Bury

Atherton

SalfordAgecroft

Stockport

Glossop

Peak District

Rochdale

Blackburn

BurnleyPreston

Ormskirk

Southport

Blackpool

Manchester

Oldham

Huddersfield

Halifax

Warrington

Widnes

Ellesmere Port

Birkenhead

BootleSt Helens

Macclesfield

Congleton

Stoke-on-trent

Stone

Stafford

Crewe

Nantwich

Wrexham

NorthwichNorthwich

Liverpool

Flint

Holywell

Rhyl

Rhuddlan

Ruthin

St. Asaph

Llandudno River Mersey

LiverpoolJohn Lennon

Airport

ManchesterAirport

Chester

Prestatyn

Bradford

Leeds

Hull

Scunthorpe

Grimsby

Doncaster

York

Bridlington

Rotherham

Sheffield

Harrogate

Thirsk

Ripon

Northallerton

Stockton-on-Tees

BishopAuckland

Hartlepool

Richmond

Wakefield

Barnsley

Chesterfield

Buxton

Middlesborough

Darlington

BeverleyAldbrough

Heddon

Driffield

Cottingham

Brough

Goole

Selby

A5117

A55

A41

A41

A557

A557

A533

A533

A533

A5058

A580

A580

A580

A58

A56

A6

A6

A6

A56

A59

A59

A59

A6A583

A583

A587

A584

A671

A58

A58A666

A666

A646

A681

A646

A629

A644

A6010

A635

A627

A6018A628

A523

A5300

A56

A56

A556A537

A537

A537

A513

A53

A34

A34

A56

A57

A34

A34A534A530

A34

A525

A519

A519

A518

A518

A51

A51

A41

A5013

B5405

A53

A51

A51

A49

A534 A534

A41A500

A500

A527

A50

A53

A523

A623

A520

A520A34

A34

A54

A41

A51

A54

A540

A553

A49

A49

A556

A494

A50

A58

A64

A61

A58

A63

A19

A166

A1079

A64

A64

A614

A614

A1079

A165

A164

A63

A63A63

A19

A1035

A610

A660

A658A650

A65A658

A61

A61

A61

A168

A19

A59

A603

A61

A6102

A617

A61

A619

A60

A60

A57 A57

A57

A616

A695

A629

A631

A633

A630

A642A628

A635

A66A66

A67

A68A688

A689

A68

A66

A19

A167

A167

A19A172

LeedsBradfordAirportManchester is the largest business centre

outside London and is recognised as the financial and administrative capital of the North West. It is located approximately 34 miles east of Liverpool, 44 miles west of Leeds, 87 miles north of Birmingham and 207 miles north-west of central London.

The City benefits from an excellent motorway infrastructure, with the M60 Orbital motorway connecting directly with the M56, M67 and M62 motorways. In addition, via both the M56 and M62, this subsequently links with the M6. As a consequence, approximately 60% of the UK’s population is within a two hour drive time.

There are two mainline rail stations; Piccadilly and Victoria, which provide direct trains to London, Birmingham, Edinburgh and Glasgow, as well as a host of regional and national destinations. Via Piccadilly, a fastest journey time to London of 2 hours 8 minutes can be achieved.

Manchester International Airport is approximately 10 miles south of the City centre and, in 2014, was the third largest airport in the UK in terms of passenger numbers and the 22nd busiest in Europe. It provides flights to over 200 worldwide destinations.

LOCATION

LOCATION


1


intu TraffordCentre

Eccles

Patricroft

TraffordPark

Bartonupon Irwell

Barton Road

Village Way

Lostock RoadCrofts Bank

Chill Factore

Centenary Way

B5211Park Way

A5081

B5211

9

10

Ashburton Road West

B5214

TraffordBoulevard

Barton Road

A57Liverpool

Road

Trafford Park is the North West’s prime industrial estate and is situated 3 miles south west of Manchester City Centre. One of the largest estates in Europe, it extends to over 1,700 acres and provides over 9 million sq m of business space. It is home to over 1,330 businesses employing over 35,000 people.

Occupiers on the estate include Kellogg’s, Adidas, Wincanton, Proctor & Gamble, DHL, Allied Mills and Cargill PLC.

It is also an important leisure hub, with The Trafford Centre, Manchester United and the Chill Factore amongst the facilities.

Media City (home to both BBC and ITV) is located to the north of Trafford Park.

The Park benefits from excellent transport links for freight handling and shipping;

Road: Direct access to the motorway network is achieved via junctions 9 and 10 of the M60 motorway and junction 2 of the M602 motorway. The subject property is situated on Ashburton Road West, close to the A5081 Park Way and within 1.5 miles of junction 9 of the M60.

Rail: Manchester International Freight Terminal (MIFT) is the largest rail freight terminal in the North West and currently handles in excess of 100,000 containers per annum. MIFT is located approximately 1.5 miles from the subject property.

Sea: Port Salford is a £138 million project to develop the UK’s first tri-modal (served by road, rail and short-sea shipping) inland port facility. Via the The Manchester Ship Canal it will link Manchester to the Port of Liverpool and ‘Liverpool2’, a new deep-water terminal which will be able to accommodate 95% of the global container vessels. Port Salford is within 3 miles of the subject property.

Air: Manchester International Airport is within 10 miles and, as well as three passenger terminals, it provides a freight terminal which currently handles approximately 100,000 tonnes of import and export freight and mail annually.

SITUATION

SITUATION


1


The property was constructed in the 1950’s and comprises a steel frame unit with part brick and part profile clad elevations beneath a single span roof. It has the benefit of four loading doors, allowing for the loading of goods at multiple points along the main elevation of the unit. Over time the unit has been entirely re-clad and, in 2007, the roof was substantially refurbished and overlaid with profile cladding.

Internally it has a substantial racking system which includes electronic guidance for the fork lift trucks.

The office element has been fitted out by the tenant to a high standard including; suspended ceiling, floor boxes for IT and comms, air conditioning and glass partitioned cellular offices.

From here the tenant runs its international freight handling operation.

The warehouse unit benefits from a substantial minimum eaves height of 11.4 m, which provides very efficient accommodation for storing and handling goods. It is therefore ideal for distribution purposes.

By way of example, the subject property has a cubic capacity of 66,078 m³.

An identically sized unit with a typical eaves height of 7 metres has a much lower cubic capacity of only 40,574 m³.

Accordingly, the subject unit offers 63% more storage accommodation than a standard unit.

40,574 m3

66,078 m3

7m eaves height

11.4m eaves height

DESCRIPTION

DESCRIPTION


��

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate areas:

Unit Sq.m Sq.ft

Main warehouse(Ground floor office)

5,280.21(531.07)

56,836(5,716)

First floor office 516.12 5,555

Total 5,796.33 62,391

ACCOMMODATION

ACCOMMODATION

In addition, the site extends to 2.38 acres (0.96 hectares)

1

9

3a

2a

1a

4b

5b

BroadoakBusiness

Park

101014

2

ACCESS

EXIT


TenancyKerry Logistics UK Limited originally occupied the property by way of a full repairing and insuring lease for a term of 15 years from 25 March 1989, subject to three yearly rent reviews. The lease incorporated a schedule of condition.

However, the tenant has entered two subsequent Deed of Variations to extend the term; firstly in 1994 to extend the lease to 25 years and to change the rent review frequency to five yearly, and secondly in 2000 to further extend the term to 30 years. Consequently, the lease now expires on 25 March 2019.

By virtue of a further Deed of Variation in 2009 the roof is excluded from the tenant’s repairing obligations.

The current passing rent is £234,000 per annum, which reflects a very modest £3.75 per sq ft.

TenureThe property is held freehold.

EPCA copy of the EPC is available on request.

VATVAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a transfer of a going concern.

TENURE/TENANCY/EPC/VAT

TENURE/TENANCY/EPC/VAT


1


Kerry Logistics UK Limited (Company No. 1571804) provides global freight services, from pickup in the UK to delivery anywhere in the world. A market leader in Asia to Europe trade, Kerry Logistics (UK) offers a truly nationwide service for both sea and air imports, covering all major conurbations in the UK.

Their sea freight offices have direct links to HM Revenue and Customs at all major ports together with two air freight offices at the main airfreight hubs in the UK.

The company reported the following figures in their most recent accounts:

Financial Year 31 Dec 2013 31 Dec 2012

Turnover £69,594,354 £79,006,336

Pre Tax Profits £2,214,793 £3,357,098

Total Net Assets £6,921,931 £19,611,800

COVENANT STATUS

COVENANT STATUS

The tenants parent company is Kerry Logistics Network Ltd, listed on the Hong Kong Stock Exchange.

Their 2014 Annual Report stated a Turnover of HK$21,115,249,000, a Pre-Tax Profit of HK$2,317,313,000and Shareholders Equity of HK$14,670,789,000.

Applying the current exchange rate of HK$1=£0.083 (as at 16 June 2015), this reflects the following figures; a Turnover of £1.75bn, a Pre-Tax Profit of £192m and Shareholders Equity of £1.2bn.


PROPOSAL

Offers are sought in excess of £2,600,000 (Two Million Six Hundred Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level would reflect a Net Initial Yield of 8.5%, after allowing usual purchasers costs of 5.8%.

For further information or to arrange an inspection, please contact:

Martin HamerTel: 07792 00 44 67Email: [email protected]

MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupationand other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenantsmust not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee and Edwards & Co nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents ad prices quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. September 2015. Designed and produced by Studio eNaR – studioenar.co.uk

Chris BathurstTel: 07957 138 003Email: [email protected]

Mark BoltonTel: 07775 973 636Email: [email protected]

PROPOSAL

UNIT BROADOAK - Edwards & Co. · a 30 year lease expiring 24 March 2019 (3.5 years unexpired) Rent...

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