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ICS House10-14 Hall Road, Heybridge, Maldon, Essex, CM9 4LA
Well Secured South East Investment
INVESTMENT SUMMARY• Well let South East Investment
• 74,792 sq ft of office and industrial accommodation
• Let to the excellent covenant of Rockwell Automation Limited until 26th June 2027
• Mutual break options in June 2020 and 2024
• Passing rent of £375,000 per annum with a fixed uplift to £394,125 per annum in June 2022
• Potential for residential conversion subject to obtaining planning consent
• Seeking offers in excess of £ 3,680,000 subject to contract and exclusive of VAT
• Net Initial Yield of 9.55% assuming 6.6% purchaser’s costs
• Low capital value of £49.20 per sq ft
ICS House10-14 Hall Road, Heybridge, Maldon, Essex, CM9 4LA
LOCATIONMaldon is located on the Blackwater Estuary which is on the east coast of Essex approximately 43 miles north east of London via the A12, 10 miles to the east of Chelmsford City Centre via the A414 and approximately 20 miles south of Colchester via the A12. Maldon is 5 miles from the A12, providing access to the M25, M11, London and the East Coast ports.
The nearest train stations to Maldon are Witham and Chelmsford. They provide direct services to London Liverpool Street with the fastest journey time of ca. 30 minutes.
Maldon is a historic maritime and market town on the banks of the River Blackwater with a population of 21,462 people. The Maldon district has a population of 61,600 people.
(Source-National Statistics 15)
533356 58
60
57
10
25
7
8
2
30
29
28
12
15 17
18
19
25
30
2627
26 276
9
5
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31
A120
A10
A131
A414
A130
A131
A120 A133
A2
A13
A12
A127
A130
A12
A12
A120
A14
A120
A10
A12
M25
M25
M11
R Blackwater
R Stour
ThamesR
The NazeStansted
Airport
Brightlingsea
ChippingOngar
Manningtree
Hadleigh
Coggeshall
Epping
Buntingford
Ware
StanstedMountfitchet
CanveyIsland
Grain
Burnham-on-CrouchSouthminster
Frinton-on-Sea
West Mersea
Wivenhoe
Witham
Kelvedon
Halstead
Saffron Walden
Haverhill
GreatDunmow
Royston
Grays
Rayleigh
South Woodham Ferrers
Brentwood
Ilford
Billericay
Dartford
Braintree
Tilbury Sheerness
Sudbury
Harlow
Bishop’sStortford
Clacton-on-Sea
Southend-on-Sea
Felixstowe
BasildonDagenham
Ipswich
Felixstowe
HarwichColchester
Chelmsford
Maldon20
22
24
29
8a
A1071
A414
A134
A137
A1060
A113
A1017
A1124
A128
A133
SITUATIONThe property is located on Hall Road and Colchester Road in Heybridge, which is 1 mile to the north of Maldon town centre. There are several industrial estates nearby, including Blackwater Trading Estate and Causeway Industrial Estate. Occupiers include Werner UK, Fiberweb Geosynthetics, Brooks Bros and Eurotec.
Hall Road is situated on the edge of a industrial area within the town which comprises a mixture of modern and secondary industrial accommodation.
Further along Hall Road, Redrow developed “The Lakes”, an exclusive residential development consisting of 125 houses (mix of 3/4/5 bedrooms).
Diagonally opposite is the Bentalls Shopping Centre where occupiers include ASDA, WH Smith and a Post Office.
The proposed Blackwater Retail Park development comprising 75,000 sqft is scheduled for completion in Q1 2018. Aldi, Costa, Home Bargains, Next and Sports Direct have already signed up for the scheme.
STATION ROAD
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A414
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HALL ROADLA KE RISE
STOCK CHASE
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INDUSTRIALESTATES
DEPOT
MUSEUM
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INDUSTRIALESTATE
THE BENTALLSCOMPLEX
TESCO
HOLLOWAY ROAD
HARVE
ST W
A Y
HEYBRIDGE
MALDON
Blackwater Trading Estate
Causeway Industrial Estate
Bentalls Shopping Centre
Hall Road DevelopmentProposed Blackwater Retail Park
DESCRIPTIONThe property comprises a 5 storey Grade II listed converted mill office building together with two separate warehouse units dating back from the 1970’s.
The office building is of traditional brick construction under a timber framed slate roof. The building was renovated in 1987 and it provides good quality open plan office accommodation over ground and 3 upper floors with storage space in the attic accessed through a large reception area. The timber roof beams and supporting steel pillars of the mill building have been retained as a design feature of the offices. The offices are fitted out to a good specification including:
• Raised floors• Full height timber framed double glazed windows• Excellent ceiling heights• 2x10 persons passenger lifts• Male and female WC facilities are provided on each
floor within the service core.
The two warehouse units provide production/workshop space and provide eaves heights of approximately 19 ft. The units are of block and brick construction with part mezzanine storage.
The tenant has been in occupation of these building since 1982 and these buildings are an integral part of their business as it provides them with research, development and testing facilities.
SITEThe site extends to 0.61 hectares (1.49 acres) which equates to a site cover of approximately 55%.
ACCOMMODATIONThe properties comprise a total of 74,792 sq ft of gross internal floor space.
These areas have been provided by the vendor:
Office Building
Ground floor Reception/Offices 9,052First Floor Offices 9,655Second Floor Offices 9,655Third Floor Offices 9,655Fourth Floor Storage 5,371Total 43,388
Warehouse Unit 1 (Testing Facility)
Ground Floor Production/Offices 21,141First Floor Offices 1,077Mezzanine Floor Storage 1,774Total 23,992
Warehouse Unit 2 (Vacant)
Ground Floor Storage 6,264Mezzanine Floor Storage 1,148Total 7,412
Ward Bdy
CR
CRChelmer and Blackwater Navig
4.9m
2.7m
3.2m
3.1m
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To
GP
SPRING LANE
HALL ROAD
THE STREET
El Sub Sta
Warehouse
4
Warehouse
Warehouse
3
Eastwood
Villas
4044
9
48
7
1 to 10
110
56
1
210
PH
PO
5a
Wave BridgeCourt
42
Myrtle
HeybridgeCentre
Factory
Riverside House
Navigation
Council Depot
1and2
to
Place
14
5.2m
BridgeWave
El Sub Sta
Depot
House9
TENURE The property is held on a freehold basis.
TENANCY The property is let on a full repairing and insuring lease to Rockwell Automation Limited expiring 25th June 2017. A reversionary lease has extended the term to 25th June 2027. The annual rent is £375,000 which equates to a low overall rent of £5.01 per sq ft. There is a fixed uplift on 25th June 2022 to £394,128 per annum. The reversionary lease is contracted outside the Landlord and Tenant Act 1954 part II.
There are mutual options to determine the lease on the 23rd June 2020 and on the 23rd June 2024 with 9 month prior written notice.
Between June 2017 and June 2022 the tenant has the option, at its own cost, to remove the warehouses and the rent reduces by £25,000 per annum. If completed after June 2022 the rent would be reduced by £26,275 per annum.
COVENANT INFORMATIONRockwell Automation Limited was historically known as Industrial Control Services Group Limited and was acquired
in 2007 by Rockwell Automation Limited for $110 million.
Rockwell Automation Limited is a subsidiary of Rockwell Automation Canada and Rockwell European Holdings Limited, companies incorporated in the UK and Canada. The ultimate parent company and controlling entity is Rockwell Automation Inc., which is incorporated in Delaware, USA. The principal activity of the company is provision of electronic automation and control equipment and solutions for industrial application acting as a sales and marketing agent, manufacturer and assembler.
In 2015, Rockwell Automation Limited reported a turnover of £61.409 million, pre-tax profits of £16.233 million and Net Assets of £55.794 million.
OPPORTUNITYThe tenant has occupied this site since 1982 and further committed themselves to this property by signing a reversionary lease for a further 10 years. The buildings were purpose built for the tenant enabling them to utilise the offices for R&D and the warehouses for product testing. The tenant employs a skilled workforce of around 120 staff, many of whom live locally.
Alternatively the site would suit a redevelopment subject to obtaining the necessary planning consent. The vendor has commissioned a scheme comprising 32 flats and 19 houses all of which are a mix of 3 and 4 bedrooms. Further details upon request.
1 mile northwest of the subject property Maldon District Council granted planning permission in December 2016 for 1138 homes, a 120 bed care home, a primary school and open space to be built in the North Heybridge Garden Suburb. Earlier in the year the council granted planning permission for 245 homes in the same suburb.
EPCThe properties provide the following EPC ratings:
Office Building: D-78Warehouse Unit 1: D-96Warehouse Unit 2: D-83
A copy of the full report is available upon request.
VATThe property is elected for VAT and it is envisaged that the property will be sold as a Transfer of Going Concern.
PROPOSALWe are instructed to seek offers in excess of £3,680,000 for our client’s freehold interest subject to contract and exclusive of VAT.
A purchase at this level would reflects a net initial yield of 9.55% assuming purchasers costs of 6.6% and an overall low capital value of £49.20 per sq ft.
INSPECTIONS & FURTHER INFORMATIONFor further information or to arrange an inspection please contact either:
Anthony FriedmanDDI: 0207 112 8572M: 07966 471127 E: anthony@parkdales.co.uk
Steve OrzelDDI: 0207 112 8571M: 077737 45660E: steve@parkdales.co.uk
Misrepresentation Act 1967 & Declaration
Parkdales Limited gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed
in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these
matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact.
February 2017