Wakefield · WF1 5PQ FOR SALE – High Yielding Retail ...

Navigation Yard · Calder Vale Road Wakefield · WF1 5PQFOR SALE – High Yielding Retail Warehouse/Office Investment

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Investment Summary• High yielding retail warehouse/office investment within the busy Yorkshire city of

Wakefield.

• Situated within an established industrial and trade counter location immediately to the south of the city centre.

• Location is five minutes’ drive from the M1 via Junctions 39 & 40.

• The investment comprises of a substantial retail warehouse and yard together with two adjoining office buildings as well as yard space and car parking.

• The properties comprise of a total area of 21,544 sq ft (2,001.55 sq m).

• Circa 80% of the income is secured through the warehouse tenant, GNG Group Yorkshire Plc, by way of a newly re-geared lease expiring in 2026.

• Total site area of circa 1.77 acres providing low site cover of 28%.

• Numerous opportunities for asset management.

• Offers in excess of £925,000 which reflects an attractive net initial yield of 10.1% after standard purchasers costs of 5.8% have been deducted.

• Purchase price would reflect a low capital value of £42.06 per sq ft.

Investment Summary Location & Description Accommodation & Tenure

Tenancy & Covenant Information

Planning, Asset Management Opp & Comparable Invest Sales

Proposal, VAT, EPC &Further information

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LocationWakefield is a historic market city in West Yorkshire, which by virtue of its excellent road links has grown to become one of the most established out of town commercial locations in the north of England. The city is located 12 miles south of Leeds, 25 miles north of Sheffield and 38 miles east of Manchester. The area is strategically located at the intersection of the M1 and M62 motorways and therefore provides excellent access to the national motorway network and the major conurbations of Manchester and Leeds.

The property is prominently situated just off the A638 Doncaster road on the southern edge of the city centre in an established commercial area favoured by trade counter operators including Travis Perkins, Dixon & Hall and Plumbcare. The property is within a five minute drive of the M1 via Junctions 39 & 40, which in turn provide easy access to the M62. Wakefield Westgate Railway Station forms part of the East Coast mainline with frequent services between London King’s Cross and Edinburgh.

DescriptionThe property comprises of a modern warehouse unit together with two self-contained period office buildings situated on a self-contained site.

The warehouse building consists of a steel portal frame with 5.5m eaves, brick and insulated steel clad elevations and roof with ancillary offices. The unit has the benefit of two loading doors (one at each end providing entry and exit loading) plus a secure yard to the rear and parking for 33 cars to the front. The tenant has carried out significant improvements to the building in recent years, hence their recent commitment to remain in the unit.

Euro House is an impressive single storey Grade II listed office building constructed of ashlar stone under a slate slated roof. The property benefits from 5 car parking spaces to the front and provides cellular office space within. Unit 2, which adjoins Euro House, is a period office building built of brick under a slate roof with offices over two levels. There are 8 car parking spaces demised to the front of the building.





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AccommodationThe properties have been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprise of the following areas:

Tenant Description Area Sq M Area Sq FtGNG Group Yorkshire Plc Warehouse 1,613.34 17,366

Offices 134.71 1,450Sub Total 1,748.05 18,816

Pretty Green Energy Ltd Offices 129.90 1,398The Conservation Volunteers Offices 123.60 1,330

Sub Total 253.50 2,728Total 2,001.55 21,544

TenureThe property is held freehold.





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TenancyThe property is let in accordance with the tenancy schedule below. All three of the leases are contracted outside of the security of tenure provisions of The Landlord and Tenant Act 1954:

Unit Rental Rent PSF Rent Review Tenant Leases (All LTA 54 excluded)

Tenant Breaks Comments

Warehouse £79,968 PA £4.25 psf Upwards only to OMV on 12/4/19 and 12/4/22

GNG Group Yorkshire Plc*

10 year and 2 months FRI lease from 22/2/16

12/4/19 and 12/4/22 with 6 months notice

Initial rent £65,000 PA rising to £79,968 on 11/4/16**

Euro House Offices £10,000 PA £7.15 psf N/A Pretty Green Energy Ltd

5 year FRI Lease from 5/7/13

N/A

Office 2 £9,200 PA £6.91 psf N/A The Conservation Volunteers

3 year FRI Lease from 8/9/15

Rolling break on 6 months notice after 8/9/16

TOTAL: £99,168 PA N/A

Covenant InformationGNG Group Yorkshire Plc were incorporated in May 2010 and trade as The Memory Foam Warehouse. They are a leading UK manufacturer of quality and innovative foam based products in the healthcare, sports, safety and home furnishings sectors. They have occupied the warehouse since April 2011.

Pretty Green Energy Ltd were incorporated in July 2010 and provide renewable energy solutions including heat pumps, solar, voltaic panels and biomass systems. The tenant has been in occupation since July 2013.

The Conservation Volunteers were formed in the 1950’s and are a registered charity who support local groups, foundations and trusts with work within the community and lifeskills training. They’ve occupied the property since September 2006.

* GNG have given a 6 month rent deposit – held until the group shows pre tax proꢀts of 380,000. In addition 4 group subsidiary companies act as guarantor to the lease. These companies are GNG Foam Converters Ltd, GNG Sport Ltd, Komꢀ (UK) Ltd and Little Mattress Company Ltd. **NB Vendor will top up rent and rent free.





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PlanningThe warehouse property currently has consent for manufacture of beds with ancillary retail within Class B1 (C) of the Town and Country Planning Use Class Order.

We understand that both ofꢀce properties have consent for use as ofꢀces within Class B1 of the Town and Country Planning Use Class Order. Interested parties should seek veriꢀcation of this from the local planning authority.

Asset Management OpportunitiesThe investment provides numerable opportunities for asset management going forward, mainly:

Longer term redevelopment for alternative uses, subject to planning

Ongoing lease management

Potential to improve the RV’s through a programme of refurbishment

Comparable Investment SalesMagnet retail showroom and warehouse (11,227 sq ft) at Lockwood Road, Huddersfield, HD1 3QB – let to Magnet Ltd at £55,000 PA with 4 years unexpired sold for £591,000 June 2014 reflecting a 8.8% net yield and a capital value of £52.64 psf.

Caldene Business Park, Mytholmroyd, HX7 5QJ – 78,825 sq ft multi let modern industrial park sold for £4.7m January 2015 equating to 9.1% NIY and a capital value of £59.62 psf.

Cummins Ltd, Old Mill Lane, Hunslet, Leeds, LS10 1TL – 24,725 sq ft modern industrial warehouse let to Cummins Ltd at £118,350 PA sold for £1.19m October 2013 equating to a gross yield of 9.9% gross (9.4% net) and a capital value of £48.12 psf.





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Subject to Contract and Exclusive of VAT © Lambert Smith Hampton [02 2016] 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 partof 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, ꢀxtures or ꢀttings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or ꢀnancial 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 speciꢀcation 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.

ProposalWe are instructed to seek offers in excess of £925,000 for our client’s freehold interest. A purchase at this level would provide a net initial yield of 10.1%, assuming that standard purchasers costs of 5.8% have been deducted.

The vendor will top up the outstanding balance of any rent free periods granted to the tenants by way of an equivalent reduction in the purchase price upon completion.

VATThe property is elected for VAT. It is anticipated that the sale will be treated as a TOGC.

Energy Performance CertificateThe properties have EPC ratings as follows. Full copies of the EPC’s are available upon request.

GNG Group Yorkshire Plc – D (90)

Pretty Green Energy Ltd – E (102)

The Conservation Volunteers – D (89)

Further informationFor further information please contact

Jon Tully - Lambert Smith Hampton Director - Capital Markets Tel 0191 338 8314 Mobile 07957 823909 Email [email protected]

Or our joint agents

Steve Molloy – Walker Singleton Director Tel 01484 477 635 Mobile 07802 615834 Email [email protected]





Wakefield · WF1 5PQ FOR SALE – High Yielding Retail ...

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