HEADQUARTERS STRETTON GREEN DISTRIBUTION PARK, LANGFORD WAY, APPLETON, WARRINGTON, WA4 4TZ

Transcription

1 PRIME FREEHOLD DISTRIBUTION INVESTMENT WITH FIXED ANNUAL UPLIFTS HEADQUARTERS STRETTON GREEN DISTRIBUTION PARK, LANGFORD WAY, APPLETON, WARRINGTON, WA4 4TZ

2 INVESTMENT SUMMARY BLUE GROUP DX DELIVERED EXACTLY EUROFORM PRODUCTS RJ EDWARDS & SON CARE INDUSTRIAL SERVICES EDDIE STOBART LOGISTICS FLEX LIMITED Distribution HQ adjoining the M56. Established location in Warrington on the Stretton Green Distribution Park. Warehouse, office and distribution yard totalling 164,048 sq ft (GIA). Site of approximately acres, providing a low site cover of just 20%. Includes land for future expansion. Freehold. Let to Eddie Stobart Ltd with a guarantee from the Stobart Group Ltd. 15 years unexpired term with fixed annual uplifts. The current rents passing totals 1,21,292 pa which equates to 4.55 psf on the warehouse element. CURRIE SOLUTIONS IRON MOUNTAIN WARRINGTON MAXI HAULAGE DPD PROCOMM SITE SERVICES TRAVIS PERKINS PRICING Offers sought in excess of 21,650,000, subject to contract and exclusive of VAT. A purchase at this level would produce a net initial yield of 5.25%, assuming purchase costs of 6.75%. f Runcorn 5 miles M56 M6 J20 1/2 mile g

3 LOCATION Warrington is one of the UK s key industrial and logistic locations at the heart of the North West region, equidistant between Manchester and Liverpool. The town is one of the fastest growing in the UK, fuelled by a strong and dynamic local economy with the population having more than doubled over the last 50 years. It now has an Urban Area population of around 160,000 with approximately 1.4 million people within a 20km (12 miles) radius. LOCATION Liverpool Manchester Chester Preston Leeds Birmingham London DISTANCE 20 miles 21 miles 22 miles 0 miles 60 miles 78 miles 192 miles Unrivalled road communication sitting at the intersection of the M62/M6 and M56/M6 motorways. Providing excellent access to macro locations. Strong rail connectivity with two mainline train stations in the town; Warrington Bank Quay and Warrington Central. These provide a regular service to London Euston (fastest journey time of 1 hour 48 minutes); Manchester (25 minutes) and Liverpool (25 minutes). Warrington is situated conveniently for both Manchester Airport (10 miles to the south east) and Liverpool John Lennon Airport (1 miles to the west). The port of Liverpool is 17 miles to the west and one of the busiest container ports in the UK. 1 2 Bebington Blackpool 4 M5 4 7 Ellesmere Port 4 5 LIVERPOOL 5 JOHN LENNON 8 AIRPORT Ormskirk M M6 M55 PRESTON Leyland Kirkby M6 27 LIVERPOOL M62 Runcorn M56 Blackburn 8 M61 Wigan Northwich CHESTER Chorley Nantwich M M62 M Darwen 18 Clitheroe Padiham Bury Bolton M M60 M WARRINGTON Crewe Nelson 8 10 Burnley Accrington Rawtenstall 20 M60 Skipton 21 1 Keighley 22 M62 Macclesfield Halifax MANCHESTER MANCHESTER INTERNATIONAL AIRPORT Leek Ilkley Otley Brighouse 24 2 Buxton Bingley Shipley BRADFORD Huddersfield STOKE-ON-TRENT Newcastle- Under-Lyme Harrogate M Batley 41 Dewsbury Matlock Ashbourne LEEDS BRADFORD AIRPORT LEEDS M1 7 SHEFFIELD Chesterfield

4 M M56 SITUATION The property is situated to the south east of Warrington on Stretton Green Distribution Park at Appleton. The property adjoins the M56 Motorway, with access approximately 1.5 miles to the east at its intersection with the M6 (Junction 20) and the M56 (Junction 9).

5 DESCRIPTION WAREHOUSE SPECIFICATION: VEHICLE MAINTENANCE UNIT: DISTRIBUTION YARD: The property comprises a modern distribution warehouse facility with a two storey office block, a distribution yard, a vehicle maintenance unit and development land for future expansion m eaves height Steel portal frame construction Ancillary two storey office Secure concrete yard with gate house High bay sodium lighting 8 up and over dock level loading doors 4 roller shutter doors Parking for around 60 cars Steel portal frame 4 roller shutter doors Inspection pit Two storey office OFFICE SPECIFICATION: Steel frame with concrete floors Double glazed aluminium windows Cat II lighting Predominantly open plan Air conditioned Large concrete distribution yard with flood lighting Vehicle wash Refuelling facility Parking for over 200 cars DEVELOPMENT LAND Predominantly grassed Helicopter landing pad Overflow car parking

6 ACCOMMODATION The property provides the following Gross Internal Areas, measured in accordance with the RICS Measuring Code of Practice (6th Edition). USE GIA (sq m) GIA (sq ft) Distribution Warehouse Warehouse 12, ,54 Office (1st Floor) 279.6,007 Office (Ground) ,009 Vehicle Maintenance Unit Warehouse ,679 Office (1st Floor) Office (Ground) Head Office Office (1st Floor) ,02 Office & Canteen (Ground) ,118 TOTAL: 15, ,048 SITE The site extends to approximately acres (7.119 hectares), providing a site cover of only 20%.

7 TENURE Freehold - subject to two principal occupational leases. TENANCY The property is let on two identical leases: Lease 1 The distribution warehouse and Vehicle Maintenance Unit (VMU) - 66,877 pa Lease 2 HQ office building, distribution yard and expansion land - 549,415 pa The principle terms of the leases are: Tenant: Surety: Eddie Stobart Ltd Stobart Group Ltd Term: 20 years from 17 July 201 Basis: Reviews: (15 years remaining) Full repairing and insuring (subject to a Schedule of Condition) Fixed annual increases equivalent to 1.5% per annum Total Rent: 1,21,292 pa ANALYSIS OF INCOME Lease 1 incorporates a site of 7.10 acres and the rent equates to approximately 4.55 psf on the distribution unit. Lease 2 incorporates a site of acres and the rent equates to just under 11 psf on the office element, 40,000 per acre on the distribution yard and just under half that rate for the expansion land.

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9 COVENANT INFORMATION Eddie Stobart is a leading logistics and supply chain organisation in the UK. From its headquarters in Warrington, operating some 2,200 vehicles,,800 trailers and 24 distribution centres throughout the UK and Europe, Eddie Stobart provides its services to a range of national and international customers. Since its repositioning in April 2014, Eddie Stobart has focused on growing a balanced portfolio to include E-Commerce, Manufacturing, Industrial & Bulk, Retail and Consumer. Eddie Stobart Ltd (Co. No ) has a Dun & Bradstreet rating of 5A1, representing a minimum risk of business failure and for the last three years ending 0th November, reported the following results: Sales Turnover Profit/Loss (before tax) 2016 ( 000 s) 2015 ( 000 s) 2014 ( 000 s) 480, ,579 28,610 22,256 1,799 2,990 Net Assets 44,57 18, The Stobart Group Ltd (Co No 9117) is an infrastructure and support services business which owns and manages a range of key infrastructure sites and operates business divisions delivering critical support services to the energy, aviation and rail sectors. The Stobart Group is listed on the London Stock Exchange (LSE: STOB) and with more than 1,000 employees the group revenue for the year ending 28 February 2017 was million, with underlying EBITDA of 5.0 million and a net worth of 290.5m. The Stobart Group has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure.

10 OCCUPATIONAL MARKET Occupational demand for well located logistic facilities remains strong, driven by the response to changing consumer patterns and the increased demand for the expanding e-commerce. Industrial rents in Warrington grew by over 7% last year, with rents averaging 5.50 psf and new distribution achieving headline rents of around 7.50 psf. Prime land values are around 450,000 per acre with open storage rents circa 40,000 pa an acre. INVESTMENT MARKET The strong occupational story in the UK industrial and logistic market has continued to attract investor demand with 2017 seeing a record volume of 7.5 billion and sector leading returns of 19.6%. Highlighted below are a number of comparable investment transactions. Date Property GIA (sq ft) Term Rent Price Yield Comment April 2018 Ronza, Warrington 8, yrs 250,000 ( 6.57) 4.925m 4.75% Review to OMV. April 2018 Grandstand, Warrington 47,674, yrs (.2 yrs bk) 274, ,500 ( 5.77) 8.9m 4.90% 2 units with reviews to OMV. Jan 2018 Eddie Stobart, Swan Valley, Northampton 185, yrs 1,010,000 ( 5.89) 20.0m 4.7% Reviews 5 yearly to RPI, c&c 1%-%. Dec 2017 Amazon, Logistics North, Bolton 58, yrs 2,04,895 ( 5.70) 44.22m 4.% Reviews 5 yearly to CPI, c&c 1%-2.5%. Dec 2017 Travis Perkins, Apex Business Park, Bedford 10, yrs 649,86 ( 6.25) 15.8m.86% Review 5 yearly to CPI, c&c 2% 4% Oct 2017 Network Rail, Ryton Coventry 02,08 15 yrs (Bk yr 5) 1,887, m 4.95% TBO in 5 years. Review to OMV.

11 VAT The property is elected for VAT and it is therefore expected that any sale be treated by way of a Transfer of a Going Concern (TOGC). EPC The property has an Energy Performance Certificates rating of C(54). A copy of the EPC is available on request. PROPOSAL We are instructed to seek offers in excess of 21,650,000 (Twenty One Million Six Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would produce a net initial yield of 5.25%, assuming purchase costs of 6.75%. FURTHER INFORMATION For further information, access to the data room or to arrange an inspection of the property please contact: Tim Morgan T: M: E: tjm@hsmuk.com Tom Larkin T: M: E: tml@hsmuk.com MISREPRESENTATION ACT 1967 DISCLAIMER - Messrs Hoddell Stotesbury Morgan Limited ( ) trading as HSM, for themselves and for the vendors of this property whose agents they are give notice that:- (i) the particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchaser should not rely upon them a statement or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of HSM has any authority to make or give any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) HSM has not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers must undertake their own enquiries and satisfy themselves in this regard. Date: June 2018.