PORTF OLIO€¦ · The portfolio provides guaranteed rental uplift on the tenanted units with 55%...

P O R T F O L I O

THE

TWO PRIME NEWLY CONSTRUCTED MULTI-LET INDUSTRIAL INVESTMENTS

Mere Grange, J7 M62, St Helens, Merseyside, WA9 5GG

Tunstall Arrow, James Brindley Way, Stoke-on-Trent, ST6 5GF

Mere GrangeJ7 M62

St HelensMerseyside

WA9 5GG

Tunstall Arrow James Brindley Way

Stoke-on-Trent ST6 5GF

INVESTMENT SUMMARY• Opportunity to acquire a prime portfolio of two newly

constructed industrial estates.

• Located in excellent strategic locations within the North West region of England.

• A total of 11 detached, self-contained industrial units constructed to an institutional specification.

• Gross Internal Area of 289,035 sq ft (26,862 sq m) with unit sizes ranging from 10,200 sq ft to 51,412 sq ft.

• Let to 7 different tenants with 24 month rental guarantees provided on the 4 recently completed vacant units (31% of total area).

• Substantial AWULT of 17.49 years (14.69 years to break) on the tenanted units providing a secure rental stream.

• 100% of the tenants are deemed as having a Minimum Risk (89%) or Lower than Average Risk (11%) of business failure.

• Total Headline Rent of £1,792,089 per annum, which equates to £6.20 per sq ft overall.

• 55% (by income) of the tenanted units are subject to fixed or CPI-linked rental uplifts.

• Both investments are held freehold.

• We are instructed to seek offers in excess of £31,100,000 (Thirty One Million One Hundred Thousand Pounds)subject to contract and exclusive of VAT.

• A purchase at this level reflects a net initial yield of 5.40% (assuming purchasers costs of 6.77%) and a capital value of £107.60 per sq ft.

P O R T F O L I O

THE

2 3

no.1

no.2

PORTFOLIO OVERVIEW

P R O P E R T Y S U M M A RY

Town Estate Post Code Tenure No Units

Area(sq ft)

Headline Rent Rent (£psf)

% Portfolio(by area)

AWULT (expiry)

AWULT(break)

St Helens Mere Grange WA9 5GG FH 6 161,905 £1,024,106 £6.33 56% 22.01* 20.52*

Stoke-on-Trent Tunstall Arrow ST6 5GF FH 5 127,130 £767,983 £6.04 44% 14.91 11.37

Total FH 11 289,035 £1,792,089 £6.20 100% 17.49* 14.69*

*Tenanted units

4 5

P O R T F O L I O

THE

The portfolio is underpinned by strong covenants with 100% of the tenanted income secured against companies with a ‘Minimum Risk’ or ‘Lower than Average Risk’ of business failure as defined by Dun and Bradstreet.

T E N A N T D & B R AT I N G S

COVENANT ANALYSIS

The portfolio provides a secure long-term income stream with an AWULT of 17.49 years to expiry (14.69 years to break) on the tenanted units.

T E N A N T E D I N CO M E P R O F I L E

The portfolio provides guaranteed rental uplift on the tenanted units with 55% of the income subject to fixed or index linked reviews.

R E N T R E V I E WS

Opportunity to acquire a prime portfolio of two newly constructed

industrial estates.

£00-4 Years 5-9 Years 10-14 Years 15-19 Years 20-24 Years 25+ Years

£100,000

£200,000

£300,000

£400,000

£500,000

£600,000

£700,000

£800,000

£900,000

£1,000,000Total Income to Expiry (pa)

Total Income to Break (pa)

Years

Tota

l Inc

ome

(pa)

Lower than Average Risk

11%

Minimum Risk

89%

OMR

45%

FixedUpli�

19%

IndexLinked

36%

Unit 2 Tunstall Arrow

INDUSTRIAL OCCUPATIONAL MARKETUK

The industrial market has gone through significant structural changes in the UK over recent years, which has resulted in new drivers of demand for industrial space including the growth in e-fulfilment. The resilience in demand for industrial space has been prominent in units in and around densely populated areas, where occupiers are using these buildings to service these areas.

At the same time as robust levels of demand for industrial floorspace, the market is suffering from a shortage of supply. MSCI reported an all industrial vacancy rate of 6.5% at June 2018, unchanged on June 2017 reflecting a low level of overall supply but significantly lower than five years earlier where at June 2013 it stood at 11.0%.

These historically low vacancy rates (the last time rates were lower was at June 2003) are reflective of the fact that there has been an extended period of limited new speculative development, particularly in smaller and medium sized units, and this has created a severe supply and demand imbalance across many core markets. At mid-2018 there were estimates of approximately 9.9 million sq ft of industrial and logistics floorspace speculatively under construction nationally, and of this only 2.7 million sq ft was under construction in units below 100,000 sq ft.

Limited new supply coming onto the market has resulted in strong rental growth for standard industrial units over the last few years and as such rents have outperformed other commercial sectors. Over the last three years (2015-2017) the industrial market recorded rental growth of 4.5% pa, higher than both the office (4.3% pa) and retail (1.3% pa) sectors, and standard industrial rents recorded growth of 5.0% pa over this period.

Looking forward, the industrial market is forecast to continue to outperform the other commercial sectors over the next five years. Predictions are that all industrial rents will grow on average 4.0% pa over the next five years (2018-2022), higher than both the retail and office segments over this period (1.0% pa and 1.9% pa respectively). We believe that, within the industrial market, SME units will be the best sub-sector performer, with forecasts of average rental growth of 4.7% pa over the next five years.

P O R T F O L I O

THE

The industrial market is forecast to continue to outperform the other commercial sectors

over the next five years.

6 7

N O R T H W E ST

The North West is one of the most successful and dynamic regions in the UK. The region benefits from excellent proximity to growing markets, a rising population of over 7 million people and continued investment into the region’s infrastructure.

Large projects such as Liverpool 2, the new deep-water terminal at The Port of Liverpool, The Mersey Gateway Project between Runcorn and Widnes and the proposed new Terminal 1 at Manchester Airport will only drive economic development and increase demand in the region’s industrial market.

Occupational take-up on multi-let estates across the North West is resulting in reduced levels of availability, increased rental growth and reduced incentive packages for tenants. Prime headline rents across the region are now firmly established at £7.25psf - £7.50 psf.

Occupier demand has been particularly strong for new build medium units (10,000 – 50,000 sq ft) as highlighted by the following transactions:

Date Address Size(sq ft)

Tenant Rent (£psf) Term (Break)

Q3 2018 K55 Kingsway, Rochdale 55,000 Nobilia Kitchens £6.5020

(10)

Q3 2018 Unit F2/E Multiply Logistics North, Bolton 20,344 Rijo42 £7.2515

(10)

Q2 2018 Unit 2 Alpha, Airport City, Manchester 17,500 Move Online Retail £7.50 10

Q1 2018 Unit F2/A Multiply, Logistics North, Bolton 44,000 Hardscape £6.60 15

Q1 2018 C5 Revolution, Logistics North, Bolton 27,000 Vaclensa £7.00 10

Q1 2018 K35 Kingsway, Rochdale 35,000 Gemalto £6.50 12

Q1 2018 Unit B/C Aurora, Stockport 21,660 Aeroco £7.25 10

Q1 2018 Unit 5 & 6 Alpha, Airport City, Manchester 52,282 Thomas Cook £7.00 10

Q4 2017 713 Cavendish Avenue, Birchwood Park, Warrington 21,619 BiSN £7.25 10

Q3 2017 Unit H/J Aurora, Stockport 19,200 Baumuller £7.2510 (5)

Q2 2017 712 Cavendish Avenue, Birchwood Park, Warrington 17,537 Werfen £7.00 10

Q1 2017 711 Cavendish Avenue, Birchwood Park, Warrington 13,965 Bathgate Flooring £7.50 10

P O R T F O L I O

THE

The North West industrial investment market has been particularly buoyant, with transactions during 2017

standing at £818m; 2018 has continued this trend

8 9

INDUSTRIAL INVESTMENT MARKETOver the last few years, industrial & logistics has become the property asset class of choice for many investors, capped in 2017 by record annual transactional volume of £7.5bn and sector leading annual returns of 19.6%. 2018 picked up where 2017 left off, with £2.2bn of industrial property transacted in Q3 2018, the third strongest quarter on record. Demand (relative to trend) has been particularly strong in the UK regions, with £960m transacting in Q3, 81% above average.

The North West industrial investment market has been particularly buoyant, with the total value of North West industrial transactions during 2017 standing at £818m, comfortably a post-recession record. H1 2018 has continued this trend, which saw £453m transacted, a post-recession record.

Investor demand for multi-let investments has been largely driven by a positive occupational market, low void rates, strong tenant demand and the opportunity for further rental growth. This has proven extremely attractive to a broad spectrum of investors. We would refer to the following multi-let transactions:

Date Property No. of Units

Total Size AWULT(to break)

Rent (£pa)(£psf)

Price NIY Cap Val (£psf)

On Market Apollo Park, Crewe

5 125,749 £839,554(£6.68)

Quoting£14,600,000

5.50% £114

u/o Nimbus Park,Dunstable

9 157,742 4.96 £1,133,484(£7.19)

Quoting £21,236,000

5.00% £135

Aug 18 Quantum Park, Manchester

2 45,387 2.60 £747,341(£10.45)

£9,000,000 4.95% £198

Jul 18 Gateway 36, Barnsley

5 140,600 18.25 £802,870(£4.84)

£16,800,000 4.74% £119

Apr 18 Doranda Way,West Bromwich

4 152,311 3.40 £822,067(£5.40)

£14,860,000 5.18% £98

Apr 18 Olympic Court, Salford

5 108,639 5.88 £532,718(£4.90)

£10,870,000 4.59% £100

Oct 17 Stag IE,Altrincham

24 80,909 4.60 £475,080(£5.89)

£75,000,000 5.89% £93

Jul 17 Broadfield BP, Heywood

9 269,058 3.10 £1,439,872(£5.35)

£24,510,000 5.50% £91

Units 201 & 203 Mere Grange

Unit 2 Tunstall Arrow

P O R T F O L I O

THE

10 11MERE GRANGE, ST HELENS, WA9 5GG

MERE GRANGE

Phase 1

A570

MERE GRANGE, J7 M62, ST HELENS, WA9 5GG

INVESTMENT SUMMARY• A 100% prime industrial estate, which on completion will

comprise 6 modern detached units constructed to a high specification.

• An excellent strategic location, 2 miles from St Helens town centre, 1 mile from J7 of the M62 and only one junction from Omega Warrington.

• Total floor area of 161,905 sq ft, with individual unit sizes ranging from 18,595 sq ft to 51,412 sq ft.

• Phase 1 completed in July 2018, with Phase 2 completing in March 2019 and Phase 3 in November 2019.

• Phases 2 and 3 are pre-let (2 units - 44% of floor area) whilst 24 month rental guarantees are provided on the recently completed Phase 1 (4 units – 56% floor area).

• Total rent of £1,024,106 per annum with passing rents ranging from £5.95 psf - £6.50 psf.

• ERV of £1,039,530 per annum (£6.25 psf - £6.50 psf).

• The tenanted units are let to strong covenants with a substantial AWULT of 22.01 years (20.52 years to break) offering a secure rental stream.

• 100% of the tenanted units benefit from CPI linked rent reviews (2% - 4%), with Phase 2 benefiting from annual rental uplifts (paid annually).

• Freehold.

Consented ResidentialDevelopment Site

Units 201 & 203 Unit 204

Phase 2

Phase 3

ST HELENSSt Helens is located at the heart of the North West region, approximately 11 miles north west of Warrington, 12 miles east of Liverpool and 26 miles west of Manchester.

The town has good road communications with J23 of the M6 motorway 5 miles to the east, accessed via the A580 East Lancashire Road, whilst J7 of the M62 lies 4 miles to the south, accessed via the A570 St Helens Linkway.

Warrington railway station is just 9 miles to the south east of the property providing regular West Coast main line services to Glasgow (2 hours 45 minutes) to the North and London (1 hour 52 minutes) to the South. Air communications are also excellent with Liverpool John Lennon and Manchester Airport only 15 miles and 29 miles respectively.

DEMOGRAPHICS

LIVERPOOL MANCHESTER

Perfectly located less than 20 minutes drive from the northern powerhouses of

Liverpool and Manchester.

Over 5 million passengers pass through Liverpool John Lennon Airport

each year.

5 million

Key contributor to the Liverpool City Region’s

£29.5 billion economy.

£

LIVERPOO

L

EC

ON

OM Y £

Access to a workforce of over 3.4 million within a one hour drive and 65% of the UK population within

a 4 hour drive.

3.4 million WORKFORCE

19.2% of the working age population work in the logistics

and distribution sector.

19.2%

Home to multi-national organisations including Tata Steel, Sainsbury’s

Distribution, Co-Op Distribution, NGF and Pilkington.

HOME TO MULTI-NATIONAL ORGANISATIONS

A557

ST HELEN

S LINKW

AY

A5

70

ST H

ELEN

S LIN

KWAY

A58

A58

A58

A57 WARRINGTON RD

A57

A57

A57

A570

A58

A58

A58

A57

E A S T L A N C A S H I R E R O A D

E A S T L A N C A S H I R E R O A D

Newton-le-Willows

Haydock

St Helens

Warrington

Eccleston

Prescot

HuytonWhiston

Newton-le-Willows

Haydock

St Helens

Warrington

Eccleston

Prescot

HuytonWhiston

M62

M62

A580

M6

M57

LIVERPOOL

MANCHESTER

TO WIDNES, RUNCORN& LIVERPOOL AIRPORT

7

6

2

8

M60 &MANCHESTER

23

Eccleston ParkGolf Club

Grange ParkGolf Club

Blundells HillGolf Club

Gemini Retail Park

Omega North

Haydock LaneIndustrial Estate

Co-OperativeDistribution Centre

Haydock CrossIndustrial Estate

EurolinkBusiness Park

Haydock ParkRacecourse

M62

M6

1021a

MERE GRANGE

Omega South

17

220

22

35

20

26

20a

4 7

23

1211 10

8

56

6

7

12

98

5

10

16

3

7

17

18

19

32

6

4930

14

104

3

2 13

24

26

18

7

5

8

9

14

12

2

2

4

3

110

21a

M6

M53

M56

M56

M58

M61

M60

M60

A580

M62

M6 M66

M65

M55

A54

A50

A530

A41

A51

A49

A556

A537 A537

A55

A58

A59

A59

A565

A58

A58

A57

A57

Accrington

Rawtenstall

Chorley

Darwen

Lytham St Anne's

Formby

Leyland

SkelmersdaleOrmskirk

Cheadle

Northwich

Frodsham

Congleton

Kirkby

Sandbach

Macclesfield

Sale

Altrincham

Wilmslow

Knutsford

Blackburn

Bury

Rochdale

MiddletonOldham

Bolton

Preston

Blackpool

Southport

Crosby

Wigan

Bootle

WidnesRuncorn

St HelensWallasey

Birkenhead

EllesmerePort

Warrington

Chester

MERE GRANGE Manchester

Liverpool

PORT OFLIVERPOOL

GLASGOW EDINBURGH

MANCHESTER

NEWCASTLEUPON TYNE

LONDON

BIRMINGHAM

CARDIFF

LIVERPOOL

LEEDSST HELENS

MERE GRANGE, J7 M62,

ST HELENS, WA9 5GG

St Helens is located at the heart of the North West region,

situated 5 miles to the west of Jct 23 of the M6


Phase 2

Phase 3

A570St HelensLinkway

Phase 1

MERE GRANGE

Jct 7 M62

A570

B5204 Elton Head Road

WincantonCo-operative

Distribution Centre

Linkway Distribution Park

Consented ResidentialDevelopment Site

St Helens

SITUATIONMere Grange fronts on to the A570 dual carriageway which is the main arterial route to St Helens town centre, 2 miles to the north and to J7 of the M62 motorway, just 1 mile to the south, providing easy access to both Manchester and Liverpool City Centres as well as the wider North West region. The property is strategically located just minutes from the M6/M62 interchange and within 30 minutes of both Manchester and Liverpool airports.

The 575 acre Omega site is situated just one junction away, at J8 of the M62. This is considered the prime industrial location in the region and has secured occupiers including Brake Brothers (220,000 sq ft), Hermes (150,000 sq ft), Asda (600,000 sq ft), Travis Perkins (630,000 sq ft), The Hut Group (650,000 sq ft), Plastic Omnium (260,000 sq ft) and Amazon (357,000 sq ft) amongst others. The proximity of Mere Grange to Omega reinforces the quality of the location for industrial occupiers.

Other nearby occupiers include Wincanton/Co-Op Distribution, Premier Inn, Eddie Stobart/McBrides and Pilkington Group Ltd amongst others.


DESCRIPTION

Mere Grange will comprise a newly constructed industrial estate of 6 high quality, detached industrial units situated in a well landscaped environment.

Each unit is self-contained and constructed to an excellent specification including:

8m – 10m eaves height (depending on unit)

EAV

ES

Unit sizes ranging from 18,595 sq ft to 51,412 sq ft

(161,905 sq ft overall)

UNIT SIZES

Steel portal frame construction

STEEL FRAME2 - 7

LOADINGDOORS

Phase 1 - 1 dock level door Phase 2 - 4 dock level doors

DOCK LEVEL DOORS

Secure, gated service yards (depths range between

25m – 40m)

SECURE YARDS

High quality ground and first floor office accommodation

QUALITY OFFICES

Dedicated parking for staff and customers

P

3 phase electricity supply and mains gas

GAS

& ELECTRICITY

Practical CompletionPhase 1: July 2018

Phase 2: March 2019Phase 3: November 2019

18/19

16 17

Between 2 and 7 level access loading doors

MERE GRANGE, ST HELENS, WA9 5GG

Unit 201

Unit 204

Units 202 & 204

Access to super-fast

broadband

TENANCY SCHEDULEThe property is fully income producing, currently let to 2 different tenants and a 24 month rental guarantee provided on the vacant accommodation. The total income on this basis is £1,024,106 pa reflecting £6.33 psf overall. The tenanted units have a substantial AWULT of 22.01 years to expiry (20.52 years to break).

SERVICE CHARGE A full service charge will be administered across the estate. The budgeted service charge for 2018/19 is 17.29 pence psf. A service charge budget is available upon request.

TENUREThe property is held Freehold.

Unit Tenant GIA (sq ft) Term Rent Review Rent (£pa) Rent (£psf) ERV (£pa) ERV (£psf) Comment

201 Vacant 26,358 24 month guarantee

n/a £171,327 £6.50 £171,327 £6.50 24 months rental, rates, insurance and s/c guarantee provided by vendor.







Phase 2 Synergy Health Managed Services Limited

51,412 25 years from PC Annual CPI linked reviews

(2% - 4%)

£305,901 £5.95 £321,325 £6.25 Exchanged Agreement for Lease. 11.68 months rent free (topped up). Held on FRI terms. Service charge cap of £0.22 psf (reviewed annually).

Phase 3 EPDL Ormazabal Limited 20,000 15 years from PC (Break at Year 10)

5 Yearly CPI linked reviews

(2% - 4% per annum)

£130,000 £6.50 £130,000 £6.50 Exchanged Agreement for Lease. 6 months rent free (topped up).Held on FRI terms. Guaranteed by Mairana XXI SL.

Total 161,905 £1,024,106 £1,039,530


25m

27m

27m

29m

THE SITE

Units 201 & 203

201

203

202

204

Phase 2(Synergy)

Phase 3(Ormazabal)

For information purposes only.

OCCUPATIONAL MARKET COMMENTARYSt Helens is a strong industrial and manufacturing centre which initially centred around the glass, pharmaceutical and textile industry. It has since diversified to become both a manufacturing and distribution centre with a proliferation of SME businesses and national/international companies.

Demand to the south of the town centre is particularly strong due to its proximity to the M62, attracting occupiers from surrounding towns such as Widnes, Warrington and Liverpool due to the excellent transport infrastructure, which have been further enhanced following the recent completion of the Mersey Gateway Bridge.

There is very little land available for development of SME and mid-range units in the prime areas around Haydock and Warrington so the delivery of units at Mere Grange will help St Helens attract occupiers from outside the borough that it has traditionally been unable to, due to the lack of new-build stock.


P O R T F O L I O

THE


TENANT COVENANTSynergy Health Managed Services Ltd

Synergy Health Managed Services Limited provides a range of sterile linen and laundry management services to hospitals and other healthcare providers throughout the UK including NHS trusts, private hospitals, ambulance trusts and healthcare and community trusts.

The Company has a Dun & Bradstreet Rating of 4A1 and has published the following accounts:

31.03.201812 Months

31.03.201712 Months

31.03.201612 Months

Turnover £41,485,000 £38,749,000 £37,020,000

Pre-Tax Profit £4,717,000 £3,919,000 £5,513,000

Tangible Net Worth £27,414,000 £26,290,000 £24,989,000

EPDL Ormazabal Ltd

Ormazabal is the leading provider of personalised solutions to electrical utilities and to electrical end users. It also provides renewable energy systems based on its own technology. The Company was founded in 1967 with a workforce of over 2000 people across more than 20 countries.

EPDL Ormazabal Ltd has a Dun & Bradstreet Rating of 1A2 and has published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.201512 Months

Turnover £6,507,212 £6,204,163 -

Pre-Tax Profit (£30,674) (£101,192) -


A guarantor is provided by Mairana XXI SL, who are registered in Spain and has a Dun & Bradstreet Rating of 5A2. They have published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.2015 12 Months

Turnover €3,288,192 €4,091,928 €5,117,637

Pre-Tax Profit (€5,123,909) €1,982,604 (€14,658,950)

Shareholder Equity €237,468,140 €242,871,737 €241,361,044 St Helens has become both a manufacturing and distribution centre with a proliferation of SME

businesses and national/international companies

TUNSTALL ARROW

James Brindley Way

TUNSTALL ARROW, JAMES BRINDLEY WAY, STOKE-ON-TRENT, ST6 5GF

INVESTMENT SUMMARY• A 100% prime, newly constructed industrial estate, comprising

5 modern detached units constructed to a high specification.

• Strategically located just 5 minutes from the A500, providing excellent dual-carriageway access to J15 and J16 of the M6.

• Total floor area of 127,130 sq ft, with individual unit sizes ranging from 10,200 sq ft to 40,705 sq ft.

• Fully let/pre-let to 5 different tenants producing a total passing rent of £767,983 per annum with passing rents ranging from £5.50 psf to £6.50 psf.

• ERV of £788,355 per annum (£6.00 - £6.50 psf).

• Unit 1 (29% of rental income) is subject to fixed rental uplifts.

• Substantial AWULT of 14.91 years (11.37 years to break) offering a secure rental stream.

• Freehold.

P O R T F O L I O

THE

22 23TUNSTALL ARROW, STOKE-ON-TRENT, ST6 5GF

Units 1 & 2 Unit 4

Ceramic Valley Enterprise Zone is the most successful in the

Country for securing jobs

SECURING JOBS

STOKE-ON-TRENTStoke-on-Trent is the largest commercial area in Staffordshire, located in the North Midlands, approximately 43 miles south of Manchester, 45 miles north of Birmingham, 35 miles west of Derby and 163 miles north west of London.

The town benefits from an excellent strategic location, benefitting from one of the UK’s largest labour pools and being within a 1 hour drive time of many of the UK’s major cities including Manchester, Liverpool, Chester, Birmingham, Sheffield, Derby, Wolverhampton, Nottingham and Leicester.

Transport communications are excellent with 90% of the UK population within 4 hours or less. The town is served by both the M6 Motorway and also the A50, which provides fast dual carriageway access West-East between Stoke / M6 and Derby / Nottingham / M1.

Stoke-on-Trent railway station is located on the West Coast Main Line providing fast and frequent rail services to Manchester (40 minutes), Birmingham (50 minutes) and London (just 90 minutes). The proposed HS2 access will bring London and Europe ever closer.

Four international airports are all located within an hours drive of Stoke-on-Trent. These are Manchester, Birmingham, East Midlands and Liverpool John Lennon all of which fly daily across Europe and beyond enabling international business to flourish.

DEMOGRAPHICS

Perfectly located less than 20 minutes’ drive from the northern powerhouses of

Liverpool and Manchester

Home to multi-national organisations including JCB, Jaguar Land

Rover, Amazon and Michelin

HOME TO MULTI-NATIONAL ORGANISATIONS

M6

M6

M6

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Apedale Community Country Park Wolstanton

Golf Club

GrangePark

BurslemPark

BurslemGolf Course

Sneyd HillPark

CentralForestPark

WolstantonWolstanton

Burslem

Dunkirk

Bignall End

Park End

Miles Green

Broad Meadow

Porthill

Stanfield

Dunkirk

Bignall End

Park End

Miles Green

Broad Meadow

Porthill

Stanfield

STOKE-ON-TRENT

MANCHESTER

BIRMINGHAM

TUNSTALL ARROWTolke Industrial

Estate

Parkhouse WestIndustrial Estate

High CarrBusiness Park

Parkhouse EastIndustrial Estate

LongbridgeIndustrial Estate

LymedaleBusiness Park

TunstallTunstall

17

20

153

5

2020a

4 78

23

1211 10

56

6

7

12

98

5

10

16

3

7

16

17

18

19

15

2 13

24

267

5

8

9

14

12

2

4

3

110

21a

M6

M53

M56

M56

M58

M60

A580

M62

A52

A51

A525

A49

A53

A41

A515

A523

A50

A518A51

A53

A54

A50

A530

A534

A500A534

A41

A51

A495

A49

A556

A537

A623

A537

A55

A628

A565

A58

A58

A57

A57

A483

A5

FormbySkelmersdale

Ormskirk

Cheadle

Northwich

Frodsham

LeekBiddulph

Congleton

Kidsgrove

Kirkby

Oswestry

Nantwich

Wrexham

UttoxeterStone

Sandbach

Macclesfield Buxton

Sale

Altrincham

Wilmslow

Knutsford

OldhamWigan

WidnesRuncorn

St Helens

Stoke-on-Trent

EllesmerePort

Warrington

Newcastle-under-Lyme

Crewe

Chester

TUNSTALL ARROW

Manchester

Liverpool

PORT OFLIVERPOOL

GLASGOW EDINBURGH

MANCHESTER

NEWCASTLEUPON TYNE

LONDON

BIRMINGHAM

CARDIFF

LIVERPOOL

LEEDS

STOKE-ON-TRENT

TUNSTALL ARROW, JAMES BRINDLEY WAY,

STOKE-ON-TRENT, ST6 5GF

Stoke-on-Trent is the largest commercial area in Staffordshire, located in the North Midlands


Access to a workforce of over 3 million within a one hour drive

and 90% of the UK population within 4 hours drive.

3 million

4 international airports within a 1 hour drive time.

4 airports

17.7% of employment in manufacturing, transportation

and storage.

WORKFORCE

17.7%

TUNSTALL ARROW

A500

Newfields Industrial Estate

Lidl

Tunstall

James Brindley Way

A527 Reginald Mitchell Way JCB

Churchill China

Phase 2 Industrial Development Land

SITUATIONTunstall Arrow is situated within Tunstall, 6 miles north of Stoke-on-Trent, in a prominent position fronting on to James Brindley Way providing a direct link with the A500 dual carriageway just 5 minutes to the west. The A500 links to Junction 15 and Junction 16 of the M6 motorway. This also interconnects with the A50 dual carriageway providing a major East – West link with the A38 and M1 motorway.

Tunstall Arrow is located within the Ceramic Valley Enterprise Zone which brings significant benefits to occupiers, including up to £275,000 of business rates saving over a 5 year period.

Nearby occupiers include Churchill China Plc, JCB, Air Liquide and Smyths News amongst many others.


Tunstall Arrow is well situated with the A500

dual carriageway being just 5 minutes to the west

DESCRIPTION

Tunstall Arrow comprises a newly built, highly specified business park of 5 detached industrial units with generous yards, set within a high-quality landscaped environment.

Each unit is self-contained and constructed to an excellent specification including:

8m – 10m eaves height (depending on unit)

EAV

ES

Sizes from 10,200 sq ft to 40,705 sq ft

(127,130 sq ft overall)

UNIT SIZES

Modern steel portal frame construction

STEEL FRAME 2x LOADING

DOOR

Units 1,2 & 4 benefit from additional dock level loading doors

DOCK LEVEL DOORS

Secure, gated service yards (depths range between 28m - 41m)

High quality fully fitted ground and first floor offices

QUALITY OFFICES

Dedicated parking to each unit

P

3 phase power supply and gas connection

GAS

& ELECTRICITY

28 29

Two level access loading doors to each unit

TUNSTALL ARROW, STOKE-ON-TRENT, ST6 5GF

Access to super-fast broadband

Unit 5

SECURE YARDS

Unit Tenant GIA (sq ft) Term Rent Review Rent (£pa) Rent (£psf) ERV (£pa) ERV (£psf) Comment

1 Q-railing Europe Holdings GmbH, UK Branch

40,705 15 Years wef 17/08/2018

5 yearly (fixed uplifts compounded at

3% pa)

£223,878 £5.50 £244,230 £6.00 6 months rent free at start of lease (topped up). Held on FRI terms.

2 DHL International (UK) Limited

35,315 15 Years from lease completion

(Break at Year 10)

5 yearly upward only (OMV)

£211,890 £6.00 £211,890 £6.00 Agreement for lease currently in legals. 15 months rent free at start of lease (topped up). Held on FRI terms.

3 Boels Rental Limited 10,200 15 Years from lease completion

(Break at Year 10)


£66,300 £6.50 £66,300 £6.50 6 months rent free at start of lease (topped up). Held on FRI terms.

4 Pramac-Generac UK Limited

20,458 15 Years wef 28/09/2018

(Break at Year 10)


£132,977 £6.50 £132,977 £6.50 Guarantee from PR Industrial SRL. 6 months rent free at start of lease. Rent £127,906 pa (£6.25 psf) in Years 1 & 2 (both topped up). Held on FRI terms.

5 SG Fleet Solutions UK Limited

20,452 15 Years from lease completion

(Break at Year 10)


£132,938 £6.50 £132,938 £6.50 Agreement for Lease currently in legals. 6 months rent free at start of lease. Rent £127,825 pa (£6.25 psf) in Years 1 & 2 (both topped up). Held on FRI terms.

Total 127,130 £767,983 £788,335


THE SITE

26m Turning Circle

26m Turning Circle

26m Turning Circle

26m Turning Circle

21m Turning Circle

TENUREThe property is held Freehold.

SERVICE CHARGE A full service charge will be administered across the estate. The budgeted service charge for 2018/19 is 16.91 pence psf. A service charge budget is available upon request.

TENANCY SCHEDULEThe property is fully let to 5 different tenants, producing a total income of £767,983 per annum with passing rents ranging from £5.50 psf to £6.50 psf (overall rate of £6.04 psf). The Estate has a substantial AWULT of 14.91 years to expiry (11.37 years to break).

The property is fully let to 5 different tenants, producing a total income of £767,983 per annum

UNIT 1

UNIT 2 UNIT 3

UNIT 4

UNIT 5

Unit 2

For information purposes only.

TENANT COVENANTQ-railing Europe Holdings GmbH, UK Branch

Q-railing, headquartered in Emmerich am Rhein, Germany, is one of the most dynamic and fast-growing railing system providers in the world today, with projects ranging from private houses to office buildings and from concert halls to major sports arenas. The Company was formed in 1980 and operates from 16 countries across the world.

Q-railing Europe Holdings GmbH, UK Branch has a Dun & Bradstreet Rating of A1 and has published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.201512 Months

Turnover £12,101,726 £12,039,799 £9,895,450

Pre-Tax Profit £1,738,950 £1,897,038 £2,307,072

Net Assets £1,395,511 £1,535,735 £1,826,638

DHL International (UK) Ltd

The Deutsche Post and DHL form the world’s leading mail and logistics group with 360,000 people in over 220 countries and territories worldwide. The company delivers 1,394,000,000 parcels per year using 97,165 vehicles and 250 dedicated aircraft.

DHL International (UK) Ltd has a Dun & Bradstreet Rating of 5A1 and has published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.201512 Months

Turnover £943,132,000 £765,690,000 £711,138,000

Pre-Tax Profit £17,657,000 £15,066,000 £15,756,000


Boels Rental Ltd

Boels Rental is one of the most renowned rental companies in Europe where the rental of machines, tools, units and catering and event equipment is concerned. The company was founded in 1977 and has grown to more than 400 branches in 11 countries.

Boels Rental Limited has a Dun & Bradstreet Rating of 2A1 and has published the following accounts:

31.12.20178 Months

30.04.201712 Months

30.04.201612 Months

Turnover £11,362,550 £15,752,871 £15,389,645

Pre-Tax Profit £569,099 £945,825 £946,165



Pramac-Generac UK Ltd

Pramac, established in 1966, produces and sells power generation systems and material handling equipment primarily under the Pramac and Lifter by Pramac brands. The company, which is headquartered in Siena, Italy, sells into over 180 countries through a broad distribution network, and has a workforce of over 700 employees across its 5 manufacturing plants and 16 commercial branches worldwide.

Pramac-General UK Ltd has a Dun & Bradstreet Rating of 1A2 and has published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.201512 Months

Turnover £10,545,381 £8,960,255 £8,694,100

Pre-Tax Profit £262,582 (£53,883) £3,366

Tangible Net Worth £904,295 £693,650 £747,533

A guarantor is provided by PR Industrial SRL, who are registered in Italy and has a Dun & Bradstreet Rating of 3A1. They have published the following accounts:

31.12.201712 Months

31.12.201612 Months

31.12.201512 Months

Net Sales €126,892,000 €103,617,000 €89,483,000

Pre-Tax Profit €5,617,000 €3,035,000 €3,212,000

Tangible Net Worth €16,407,000 €12,452,848 €10,830,004

SG Fleet Solutions UK Limited

SG Fleet, established in 1986, is a leading international mobility solutions provider, specialising in fleet management and leasing, and salary packaging services. The Company has a presence across United Kingdom, Australia and New Zealand, employing over 700 staff and managing over 140,000 assets.

SG Fleet Solutions UK Limited has a Dun & Bradstreet Rating of 2A1 and has published the following accounts:

30.06.201715 Months

31.03.201612 Months

31.03.201512 Months

Turnover £20,376,213 £51,526,767 £51,267,641

Pre-Tax Profit £1,266,348 £2,736,425 £2,015,037


STOKE-ON-TRENT INDUSTRIAL MARKETStoke-on-Trent has a strong manufacturing and distribution heritage which was originally founded on the back of the pottery and coal mining industries. Although the ceramics sector still plays a big part in the city, the area has diversified and now hosts a range of national and many SME businesses. The North Staffordshire conurbation, made up of Stoke-on-Trent and its neighbouring town Newcastle-under-Lyme, is excellently located with a central location served via the M6 Motorway, A50, A500 and A34 dual carriageways. There is a significant undersupply of quality modern warehouse and manufacturing facilities in North Staffordshire, particularly in the sub 50,000 sq ft market. For modern schemes, demand completely outstrips supply as proven by the attraction and success of Tunstall Arrow. This under supply is likely to continue and we predict will lead to further rental growth in the market.

P O R T F O L I O

THE

34 35

FURTHER INFORMATIONEnergy Performance CertificatesEnergy Performance Certificates are available upon request. All EPCs have an ‘A’ Rating.

VATThe properties are elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC).

Data RoomThere is a marketing data room for the portfolio with key tenancy information, title documents, construction documents and EPCs. Access can be obtained (on request) via B8RE.

ProposalWe are instructed to seek offers in excess of £31,100,000 (Thirty One Million One Hundred Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 5.40% (assuming purchasers costs of 6.77%) and a capital value of £107.60 per sq ft.

Further informationShould you require further information or wish to view the properties please contact either:

Simon Wood John BurrowsB8 Real Estate B8 Real Estate07793 119210 07921 13720001925 320520 01925 [email protected] [email protected]

MISREPRESENTATION ACT: B8RE act for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person in the employment of all agents has any authority to make or give any representation or warranty in relation to this property. November 2018.

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Operating across the Northern Powerhouse region, Network Space is a commercial property developer, investor and manager specialising in the industrial warehouse sector.

It creates and nurtures exceptional industrial property for local, national and international organisations, providing the best environments in which to prosper. The company’s mission is to create property that is fit for the future and will deliver sustainable long-term value for all involved.

P O R T F O L I O

THE

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