multi-let commercial complex -...
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FOR SALE
MULTI-LET COMMERCIAL COMPLEX
13,049 SQ M (140,408 SQ FT) on a site of 2.5 HECTARES (6.2 ACRES)
1 TENNANT AVENUE | COLLEGE MILTON | EAST KILBRIDE | G74 5NA
LOCATION East Kilbride is ranked the 6th largest settlement in Scotland with a population of approximately 74,000 and a catchment population of approximately 1.7 million. 80% of Scotland’s industry and 75% of its population is within a 50 mile radius of the town.
East Kilbride is situated approximately 9 miles south east of Glasgow, forming part of the Greater Glasgow conurbation, and six miles west of Hamilton.
The town is accessed via junction 5 of the M74 motorway, via the A725 East Kilbride Expressway, which in turn links to the M8 giving access to central Scotland’s motorway network at the Baillieston interchange where the M8, M73 and M74 motorways converge.
East Kilbride also benefits from the recently completed Glasgow Southern Orbital (GSO) road, which links the town and the wider Lanarkshire area to the M77, linking Glasgow City Centre with Ayrshire to the south.
QUEENSWAY
A726
TENNANT AVENUE
INVESTMENT RATIONALE• Multi-let industrial/warehouse and office facility located within a popular mixed commercial area
• Well located within East Kilbride, offering quick access to the motorway network
• 80% of Scotland’s industry is within a 50 mile radius of East Kilbride
• Economic rents and variety of accommodation for maximum letting flexibility
• Asset management initiatives to enhance existing income
• Current net income of £168,250 per annum
• Asking price of £1,040,000, exclusive of VAT
• Attractive net initial yield of 15.35%
• Very low capital value of £7.40 sq ft, which is significantly below reinstatement value
JOHN MCDONALDGROUP
KONE CRANES
INLAND REVENUE
SCOTBEEF
LINDE MATERIAL HANDLING
COCA-COLA ENTERPRISES
BURNS STEWARTDISTILLERS
GSO
A726
JEWSON
QUEENSWAY RETAIL PARK
OFFICE AREA
PALISADE FENCE
WAR
EHOU
SE
AREA
YARD
119m
91m
COVERED LOADING
BAY
TRAILER
PARKING
GA
RA
GE
SITE
ENTRANCE
TEN
NA
NT
AVE
NU
E
SITUATIONThe property is located on Tennant Avenue within the established College Milton Industrial Estate which lies approximately 1 mile west of East Kilbride town centre via the Queensway (A726), a main arterial route in the town.
The surrounding area is predominantly industrial with nearby occupiers including Travis Perkins, Kone Cranes, Linde Material Handling and Coca-Cola Schweppes. There is a mix of retail and quasi-retail uses in the immediate vicinity including Queensway Retail Park, fast food drive-thru outlets and car showrooms.
DESCRIPTIONThe subjects comprise a large self-contained warehouse with two storey offices and detached garage set within a landscaped site and secured by perimeter steel palisade fencing with barrier access.
OFFICESAlong the southern elevation there are two storey offices providing modern accommodation. This has been sub-divided to provide smaller business centre style suites, offering the following:-
• Glazed reception foyer• Shared conference room and canteen facilities• Mixture of open plan cellular offices• Heating and lighting• Key fob security entry system• WCs
WAREHOUSE AREAThe warehouse area is of steel portal framed construction, which was extended in the 1990s. The specification incudes:-
• 12 electric roller shutter doors providing access to a secure loading bay on the western elevation, which in turn has 5 dock levellers providing vehicular access to the warehouse area• Gas fired warm air blowers• High density sodium lighting• A range of eaves heights measured between 4.60m and 4.89m• Sprinkler system
YARD AREASExternally the subjects benefit from a generous yard along the western elevation and main car parking to the front of the offices along with southern elevation.
There is also a yard to the rear of the warehouse extension, to the front of the vehicle repair workshop.
VEHICLE REPAIR WORKSHOP/ GARAGE• Vehicle inspection pits• Heating and lighting• Six ground level vehicle doors• WCs
SITE PLAN
LOCAL MARKET ANALYSISWe provide the following analysis of the industrial market in East Kilbride, using data provided by CoStar.
Letting Information East Kilbride Industrial Market
Total Stock (sq ft) 30,356,426
Current Availability (sq ft) 3,262,244
Vacancy Rate 10.75%
Average Asking Rent £4.06 sq ft (5 year average is £3.82 sq ft)
Sales Information
Asking Price (5 year average) £30.00 sq ft
Sale Price (5 year average) £19.00 sq ft
Average Yield (last 12 months) 8.20% NIY
This implies that the subjects offer rents at a c.25% discount to the market average in East Kilbride at a price that represents a c.63% discount to the 5 year average sales price.
ACCOMMODATIONWe have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition) on a gross internal basis as follows:-
Warehouse 108,319 sq ft (10,063 sq m)
Loading Bay 17,604 sq ft (1,635 sq m)
Offices* 8,681 sq ft (806 sq m)
Vehicle Repair Workshop 5,804 sq ft (539 sq m)
TOTAL 140,408 sq ft (13,049 sq m)
*As they are let on a room-by-room basis, offices have been measured on a Net Internal Area basis. For the avoidance of doubt the reception area has been excluded from our calculations. We calculate that the property sits on a site of 6.2 acres (2.5 ha) or thereby.
TENUREHeritable (Scottish equivalent of English Freehold).
(Now let to Scottish Water)
Unit TenantArea Gross Rent
Lease/Licence StartLease/Licence
Expiry(Break Option)
Break Notice Period CommentsNIA/GIA(sq ft) £ p.a. per sq ft
OFFICE SUITES
Conference Room (Suite 23) Ground Floor
N/A 514 N/A N/A Communal facilities. Potential to convert to lettable office suite.
Kitchen/Dining Area (Suite 18)Ground Floor
N/A 906 N/A N/A Communal facilities. Potential to convert to lettable office suite.
Open Areas N/A 870 N/A N/A Communal facilities. Potential to convert to lettable office suite.
Suite 1, 1st Floor Vacant 483 £0.00 £0.00 Rateable Value is £3,300 p.a. Quoting rent is £8,400 p.a. all inclusive.
Suite 2, 1st Floor Kardex Systems UK Ltd 334 £4,440 £13.29 Jul-12 31/07/2016
Suites 3 & 4, 1st Floor + 2 car spaces Cameron Logistics Ltd 334 £6,300 £18.86 30/11/2015 Two month rolling break
Suite 5, 1st Floor Vacant 170 £0.00 £0.00 Rateable Value is £1,250 p.a. Quoting rent is £3,300 p.a. all inclusive.
Suite 6, 1st Floor Jendagi UK Ltd 547 £6,000 £10.97 Sep-13 31/03/2016 One month rolling break Relocated from Suite 3. Tenant has served Notice to Quit. Expiry date is 30/06/2015.
Suite 7, 1st Floor VTS Glasgow Ltd 168 £3,000 £17.86 Apr-14 31/03/2016 Two month rolling break Relocated from Suite 1.
Suites 8 & 9, 1st Floor + 2 car spaces & Storage Area within Main Warehouse
Storm Controls Ltd 1,376 £15,000 £10.90 pre-2010 27/08/2016
Suite 10, 1st Floor Central Air Conditioning Ltd
349 £5,280 £15.13 Mar-14 31/03/2016 Two month rolling break
Suites 11, 12, 13, 1st Floor + Garage and parking
Hamilton Industrial Services Ltd
Total = 6,377Suite 11 = 179Suite 12 = 359Suite 13 = 35Garage = 5,804
£62,500 £9.80 28/08/2013 27/08/2016 Three month rolling break From 28/08/2015 rent increases to £65,000 p.a. Tenant has been in occupation since before 2010.
Suites 24, 25, 26, Ground Floor Vacant Total = 682Suite 24 = 335Suite 25 = 223Suite 26 = 124
£0.00 £0.00 Rateable Value is £2,600 p.a. Quoting rent is £7,200 p.a. all inclusive.
TENANCIES COMMENTARY TENANCIESThe subjects have been sub-divided and is multi-let in line with the tenancy schedule provided below. The tenants pay all-inclusive rents which includes; rent, rates, insurance, service charge and utilities. This effectively equates to a rate of £6.00 sq ft for the offices and £0.50 sq ft for the warehouse/industrial areas.
NON-RECOVERABLESThe offices are occupied under licenses on an all-inclusive basis.
The service charge which includes utilities for this financial year is budgeted at £115,000.
TENANCIES COMMENTARY (cont.)
Unit TenantArea Gross Rent
Lease/Licence StartLease/Licence
Expiry(Break Option)
Break Notice Period CommentsNIA/GIA(sq ft) £ p.a. per sq ft
Suite 33, Ground Floor & Store 2 containers & generator & 1 car space
SPIE Matthew Hall 174 £6,600 £37.93 pre-2010 18/02/2013 Occupying under tacit relocation.
Suite 38, Ground Floor Vacant 149
Suite 39, Ground Floor Vacant 249
YARD AREAS
Yard Area & Parking for Trailer John Mackie (Transport) £1,200 pre-2010 1 month rolling licence.
Yard Parking for 2 Trailers DMM Transport Ltd £780 pre-2010 1 month rolling licence.
PARKING AREAS
Parking for 1x Bus Frazer Bell £2,160 30/04/2015 Two months rolling break Holding over.
Parking for 2x Buses Starliner Travel £2,160 31/11/2015 Two months rolling break
WAREHOUSE AREA
Suite 28, 29, 31, 36, 37, Ground Floor & Part Main Warehouse
Dexters Total = 29,248W/house = 28,065Suite 28 = 95Suites 29-31 = 194 Suites 36 & 37 = 894
£100,000 £3.42 Aug-10 14/10/2020(15/10/2015)
15/10/2015 Tenant has elected not to serve notice
Current rent is £70,000 p.a. which increases to £100,000 p.a. on 15/10/2015. Vendor will top up to this level.
Part Main Warehouse Vacant 86,945* £0.00 £0.00 *Loading bay measures 17,604 sq ft.
Warehouse Rear Scottish Water 21,374 £63,930 £2.99 08/11/2013 07/11/2023 (07/11/2016)
Tenant Break 3 years & 5 years - 6 months notice
If tenant elects not to serve notice the rent drops by 50% during the period 08/11/2016 - 07/11/2017.Rent review on the 5th anniversary.
Part Rear Warehouse Hamilton Industrial Services Ltd
605 £3,900 £6.45 pre 2010 27/08/2016 1 month break either party Lease Co-Terminus with suites 11, 12, 13.
TOTALS £283,250
Running Costs £115,000
Net Rent £168,250
HAMILTONEAST KILBRIDE
EAGLESHAM
NEWTON MEARNS
PAISLEY
PRESTWICKAIRPORT
BARRHEAD
GLASGOWAIRPORT
QUEENSWAY
PEEL
PAR
K PL
ACE
TENNANT AVE
REDW
OO
D DR
IVE
EAGLESHAM ROAD
RED
WO
OD
DRIV
E
GLENBURN ROAD
LINWOOD AVE
Messrs FG Burnett for themselves or lessors of this property whose agents they are give that: (i) the particulars are set out as a general outline for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of an offer or contract; (ii) all descriptions, reference to condition and necessary permissions for use and occupation,and other details are given without responsibility and any intending purchasers or tenants should not rely on them, as statements or representations of fact but must satisfy themselves by inspections or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs FG Burnett has any authority to make or give any representations or warranty whatever in relation to this property. May 2015.
ENERGY PERFORMANCEThe property has an energy performance rating of E+. A copy of the certificate can be made available on request.
PLANT & MACHINERYNone of the systems or equipment in the property have been tested by FG Burnett and purchasers may wish to make their own investigations to check that they are in working order.
PRICEWe are seeking offers in excess of £1,040,000 exclusive of VAT.
A purchase at this level represents a Net Initial Yield of 15.35% assuming standard purchaser’s costs and LBTT. This reflects a very low capital value rate of £7.08 sq ft.
VATThe property is elected for VAT and accordingly VAT will be payable. We anticipate the transaction will be treated as a TOGC (Transfer of a Going Concern).
CAPITAL ALLOWANCESWe understand that there are no transferrable capital allowances available.
DRIVE TIMESHamilton 18 minutesGlasgow City Centre 26 minutesKilmarnock 26 minutesGlasgow airport 27 minutesPrestwick Airport 35 minutesEdinburgh 1 hour 25 minutes
VIEWING & FURTHER INFORMATIONBy appointment through the sole selling agents.
Stuart Orrstuart.orr@fgburnett.co.uk0141 285 7983
Ross Sinclairross.sinclair@fgburnett.co.uk0141 285 7982
1 TENNANT AVENUECOLLEGE MILTONEAST KILBRIDEG74 5NA
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