distribution centre investment let to ups limited...
TRANSCRIPT
Distribution Centre Investment – Let to UPS Limited 2,348.23 SqM (25,277SqFt)
POPULAR ESTATE LOCATION
SINGLE LETTING TO WORLD
LEADING INTERNATIONAL
DISTRIBUTION COMPANY
HIGH YIELDING INVESTMENT
PURPOSE BUILT PARCELS
DELIVERY HUB
Norwich Industrial Estate, 48 Hurricane Way,
Norwich, Norfolk NR6 6JB
The subject property is situated at the northern end of Hurricane Way on the Airport Industrial Estate in Norwich. The Airport Industrial Estate together with the adjacent estates of Union Park on Fifers Lane and Vulcan Road Estate forms the largest concentration of industrial premises in Norwich. It is situated adjacent to Norwich International Airport. The north Norwich industrial property market remains popular and there are proposals to construct a northern distributor road, which will ease existing traffic congestion in the northern sectors and provide further boost to demand for this industrial area.
Industrial
For Sale
Note: Arnolds for themselves and for the vendors or lessees 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 or lessees, and do not constitute part of, an offer or contract: (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchaser or lessees should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them (iii) no person in the employment of Arnolds has any authority to
make or give any representation or warranty whatever in relation to this property.
Norwich Industrial Estate, 48 Hurricane Way, Norwich, Norfolk NR6 6JB
Description
The subject property comprises a regular site of 1.75 acres upon which is constructed a purpose built parcel distribution building. It has been occupied by a number of household names in the past including Fedex, Lynx Home Delivery Network and now UPS. This therefore proves it is a building highly suitable for its purpose.
Centrally upon the site is a principal building which has a two storey office module to the front providing functional accommodation and to the rear is the purpose built parcels building with a raised section in the middle with 24 loading doors along either side.
The remainder of the site is laid to concrete for manoeuvring and car parking with a staff car park to the front.
To the rear of the site is a two bay vehicular workshop and gas and oil tanks.
Accommodation
We have measured the property in accordance with the RICS Code of Measuring Practice and calculate the following gross internal floor areas:
M2
Sq Ft Ground Floor - offices 164.43 1,770 First floor 164.43 1,770 Warehouse 1,116.84 12,022 Covered loading 731.40 7,870 Workshop 171.40 1,845 Total 2,348.22 25,277
NB: Please note that part of the two storey offices are a tenant’s improvement.
Tenure
The property is held long leasehold from Norwich City Council. The lease is for a term of 125 years from 25
th
December 1976 (expiring 2101) and subject to five yearly rent reviews, the passing rent is £10,850 and reviewed to 11% of the rental value of the property constructed thereon but on the special assumption that it is a warehouse building to a minimum of 24,600 Sq Ft.
Tenancy
The property is sublet to UPS Limited (Company number 01933173) the lease is dated 17
th May 2011 and is for a
term of five years from the 25th December 2011 at a rent
of £83,500 per annum exclusive. The lease contains tenant full repairing and insuring terms, with no schedule of condition, and allows for the property to be utilised for the business of a parcel distribution centre with ancillary facilities or any other use under Class B8.
Covenant Information
UPS Limited’s accounts for the year ending 31st
December 2010 report the following:
Principal activities for the company to provide the international parcel delivery services and the provision of H M Revenue and Customs clearance facilities for inbound parcels incorporating a delivery service within the UK for parcels that originate from UPS Service World Wide Network.
The turnover in overall profitability has improved during the year and the directors expect growth in domestic and international markets for the future. UPS are the lead logistic supplier for the London 2012 Olympic and Para-Olympic Games.
For the year ending 31st December 2010 they reported a
turnover of £634,461,000 with a gross profit of £78,127,000 but recorded a small post tax loss. The balance sheet records shareholder’s funds for the value of £93,018,000.
Proposition
Offers are invited in the region of £575,000 exclusive. This produces a net initial yield of 11.95% after standard purchaser’s costs.
Asset Management Potential
The property has good potential for a long term investment. In the short term it is leased to a company of undoubted covenant strength, in the medium term there is the possibility that they will renew, or failing that, that it will be taken by another parcels company.
The site is well laid out. The building can be easily altered to allow for other uses to take place by way of cladding over the existing loading bays to create a good quality warehouse or industrial facility.
Viewing and further information
Strictly by appointment with the joint agents.
Arnolds Keys
Contact: Guy Gowing
Tel: 01603 620551
CBRE
Contact: David Margolis
Tel: 020 7182 2544