Wholesale District, Nottingham, NG2 3JJ

Wholesale District | Clarke Road | Nottingham NG2 3JJ

INVESTMENT OPPORTUNITY• Well let market opportunity providing

accommodation totalling 35,806 sq ft

• Rare opportunity to acquire a large site close to Nottingham City Centre

• Excellent transport links; close to J25 of the M1

• Attractive initial yield of 9% with scope to improve upon letting of vacant units

• Current passing rent of £200,978

• Low capital value of £59 per sq ft

• Offers in excess of £2.1m

Location

Nottingham is the commercial and administrative centre for the East Midlands. The population of the Nottingham/Derby metropolitan area is estimated to be 1,543,000.

The property is located in a mixed use area of predominantly warehouse/trade counter accommodation sandwiched between the 2 principle trunk roads, A60 and A612, on the north bank of the River Trent approximately ¾ mile south of Nottingham City centre.

The Wholesale District is located at the end of Clarke Road, just off Meadow Lane which is accessed via the A60 London Road providing a rare opportunity within minutes of Nottingham City Centre. It offers convenient access to the south of Nottingham via the A60 and its ring road system providing access to M1 Junction 25 which is 10 minutes to the West. The rear secondary access point is on to Meadow Lane, running east/west, a major arterial route, along which Nottingham County football ground is also located. It is immediately adjacent to the Lady Bay Retail Park where the principle tenants are The Range, Staples, SCS, Hobbycraft and Poundworld.

Other nearby occupiers of note include Royal Mail, a local authority works department, the City’s waste incineration plant and Yess Electrical.

Description The development which was built in 1993 is on a site of approximately 4 acres and comprises an L shaped configuration of warehouse units together with a single storey former administration block /café at the entrance around a central car parking and loading area. The warehouses have an eaves height of 6m

The units are of modern portal framed construction clad with Plastisol coated corrugated sheeting with front and rear roller shutter doors, front canopies above mainly glazed ground floor frontages. Administrative offices are located at first floor in most of the units.

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition). The accommodation extends to 35,806 sq ft across 33 units that vary in size.

Tenure The property is held under a long lease from Nottingham City Council for a term of 125 years from 25 March 1993 at a peppercorn (103 years unexpired).

Tenancy The property is fully let in accordance to the schedule on the next page.

While the majority of tenants are market traders, uses have now broadened to include B1, B2 and B8 use classes.

The leases are largely drawn on tenant internal repairing terms with the landlord maintaining the foundations, frame and external cladding of the units.

Covenant

70% of the rental income is derived from 4 tenants under leases running until at least 2019 with 39% being paid by Total Produce.

Total Produce Ltd A significant company headquartered in Spalding and incorporated in 2006 and employing 320 people. According to their accounts to 31/12/13 they had a Turnover of £82.4m, made a Pre Tax Profit of £1.46m and had Shareholders Funds of £18.7m. They are part of Total Produce Plc registered in Ireland with a Turnover of €2.6 billion.

RW Fletcher & Son A small fruit and vegetable company incorporated in 1993 with shareholders funds of £9,000.

RM Flowers Ltd Similarly was incorporated in 1988 and has shareholders funds of £208,000.

Plumbline Ltd A supplier and fitter of plumbing and heating appliances incorporated in 1996 with shareholders funds of £206,000.

%70


OF THE RENTAL INCOME IS DERIVED FROM 4 TENANTS: • RM FLOWERS LTD • RW FLETCHER & SON • TOTAL PRODUCE LTD • PLUMBLINE LTD

Nottingham City Centre

City Ground

River TrentMeadow Lane

A6005A6008A6200

A453

A612

A6011

A52

A606

A60

A52

Junction 25

Junction 24

A453

A609

Trent Bridge

M1

M1

location map

Clarke Road

Incinerator Road Royal

Mail

Meadow LaneStadium

Meadow Lane

River Trent

Lady BayRetail Park

A6011

A6011

London Road

A6011

A6011

A6514

A6005


Unit No TenantArea sq ft

Passing rent (£ p.a.)

Rent per sq ft

Lease Start Date

Next Review Expiry Break

Unit 1 R W Fletcher & Son Limited 1,223 7,032 £5.75 09/05/2014 - 28/09/2019 -

Unit 2/3 R W Fletcher & Son Limited 2,442 14,042 £5.75 29/09/2012 - 28/09/2019 -

Unit 4-7 R M Flowers Limited 4,844 19,733 £4.07 29/09/2012 29/09/2018 28/09/2022 -

Unit 8/9 Totally Brewed Ltd 2,442 14,652 £6.00 05/01/2015 - 04/01/2020 -

Unit 10 Vacant 1,198 - - - - - -

Unit 11 Intervend (UK) Ltd 884 5,250 £5.94 09/12/2014 - 08/12/2017 -

Unit 12 Creative Roots Landscaping Ltd 884 5,250 £5.94 09/12/2014 - 08/12/2017 09/12/2016

Unit 13/14 Vacant 1,800 - - - - - -

Unit 15 Solution Supplies Limited 900 5,000 £5.56 10/10/2014 - 09/10/2017 -

Units 16-23 Total Produce Ltd 12,438 77,675 £6.24 08/04/2014 - 07/04/2019 -

Unit 24 Plumbline Ltd 1,556 11,139 £7.16 28/02/2014 28/02/2019 27/02/2024 28/02/2019

Unit 25 Plumbline Ltd 1,556 11,139 £7.16 28/02/2014 28/02/2019 27/02/2024 28/02/2019

Unit 26 Albert L Robinson (Nottingham) Ltd 1,536 9,216 £6.00 29/09/2012 - 28/09/2017 -

Admin 1 Nigel Cosway t/a Nottingham Wholesale Packaging 163 2,312 - 01/08/2013 - 31/07/2016 -

Admin 2W A G Bland, D Bland, R Bland, D Bland and A R Musson t/a Bland Brothers

163 1,110 - 29/09/2003 - 28/09/2012 Holding Over

Admin 3 Clive Palethorpe 364 2,011 - 19/05/2014 - 18/05/2017 -

Admin 4 Dean Ward (trading as Flower Pot Men) 875 4,917 £5.62 01/01/2014 - 31/12/2016 -

Café Dean Ward 538 4,000 - 05/12/2014 - 04/01/2016 -

Storage G Walker - 5,000 - 29/09/2009 - 28/09/2015 -

CPP 2 Peter R Foster - 1,500 - 29/12/1995 -Determinable on 1 months notice

-

Substation Substation - - - 30/11/1994 - 26/11/2119 -

Total rent £200,978

Tenancy Schedule


Service Charge A general service charge (Approx. 57p/sq ft) is payable in respect of the maintenance and upkeep of the common areas of the site (save for units admin 1 & 4)

A higher charge (an additional £3.67) is levied to wholesale operators to allow for the additional services including waste disposal and cleaning.

The annual service charge is approximately £100,000 per annum with a 1st April anniversary.

VATIt is expected the transaction will take place as a TOGC.

EPC Available on request.

site mapFigures denote unit number

1

Entrance

2/3 4/5 6

A1

A2

26

7 8/9 10 11 12

16

17

18

19

20

21

13/14

15

22

23

24/25

A4

A3

A5

Jonathan Brierley

T: 0113 323 7401 M: 07710 130 468 E: [email protected]

John Steadman


Ted Hustler


IMPORTANT NOTICE. These particulars do not constitute either the whole or any part of an invitation, offer or contract in relation to the property described in the particulars. Steadman Brierley has no authority to make or give any representation or warranty, express or implied, on behalf of any party in relation to the property. Whilst the particulars are given in good faith, intending purchasers or tenants must satisfy themselves independently as to the accuracy of all matters on which they intend to rely. All negotiations are subject to contract. March 2015

Further Information

For further information or to make arrangements to view the premises please contact:

ProposalWe have been instructed to seek offers in excess of £2,100,000 (Two Million One Hundred Thousand Pounds) subject to contract for our client’s long leasehold interest. A purchase at this price would show an investor 9% with scope to increase upon letting of vacant units, net of purchaser’s costs at 5.8%.


Wholesale District, Nottingham, NG2 3JJ

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