Chester Road Trade Park | Chester Road | Erdington | Birmingham | B24 0QY

PRIME MULTI-LET TRADE COUNTERINVESTMENT OPPORTUNITY

INVESTMENT SUMMARY

Erdington, is a densely populated suburb of north Birmingham.

The property is prominently situated at the junction of A38 dual carriageway and A452 with over 42,000 vehicle movements per day.

Newly built, prime three unit trade park scheme extending to 18,391 sq.ft.

Units sizes ranging from 4,768 sq.ft to 8,187 sq.ft.

Fully let to Paul Rigby Group, Sportsbikeshop and London Stone Paving with a WAULT of 11.93 years.

Total rental income £214,621 per annum – low average rent of £11.67 per sq.ft.

Freehold.

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Offers sought in excess of £3,850,000

(Three Million Eight Hundred and Fifty

Thousand Pounds)

reflecting an attractive net initial yield of

5.25%.

LOCATION

Erdington is a busy and established suburban retail centre of greater Birmingham situated approximately four miles to the north east of Birmingham City Centre and less than two miles north of Junctions 5 and 6 of the M6 motorway.

Erdington has regular rails links into Birmingham city centre with six trains per hour to Birmingham New Street station with a journey time of approximately 12 minutes. Furthermore there are regular bus services into the city centre making the town and immediate area a popular place to live for those working and commuting into Birmingham.

Erdington has a resident population of approximately of over 103,000 people. 1,000,000 people live within a 10 mile radius of the town centre.

M6

M5

M6

WolverhamptonWalsall

SolihullLongbridge

A456

A454

A38

A38

A34

A34

A5

A34

A41

A41

A41

A45

A456

A456

A491

A441

A435

A452

A452A461 A453

A4123

A4123

A460

A449

A449

A454

A449

A458

J5

J6

J5J6

A38M

J7

J8J9

J4J2

J3

M6

M42

M42

M6 Toll

J

BIRMINGHAM

J1

J6J5

M6A38(M)

A452

A38

ERDINGTON

CHESTER ROAD TRADE PARK

Chester Road Trade Park is situated at the junction of A38 dual carriageway and A452, Chester Road. The immediate location has over 42,000 vehicle movements per day. Erdington town centre is 2 miles to the west of the property and Birmingham city centre is 5 miles to the south west. Junctions 5 and 6 of the M6 are 1.5 and 2.5 miles respectively from the property.

The A452 is a main arterial route running north south from M6 Toll, Cannock, to J5 of M6 linking the Birmingham suburbs of Sutton Coldfield, Erdington and Brownhills with the city centre and Birmingham’s orbital motorway network.

The immediate surrounding area is an established trade counter, roadside and retail warehouse location.

Occupiers in the vicinity include Volvo, Selco, McDonalds, Aldi, Jewsons, KFC, Burger King, Ravenside Retail Park (Dunelm, Go Outdoors, Pets at Home, The Range, Halfords, Wren Kitchens, Dreams) and Castle Vale Retail Park (Sainsburys, Currys/PC World, B&M, Smyths Toys, SCS, TK Maxx).

SITUATION

A452

A38

Birmingham City Centre

J5 M6

J6 M6

Ravenside Retail Park

M6

DESCRIPTION

The property comprises a newly built three unit trade park scheme extending to 18,391 sq.ft.

The units have been construction to a high specification including:

• 6.5m eaves

• CA Twin-Therm built up cladding system and CA Products Twin -ThermGriffon roof system

• 10% roof lights

• Glazed shop frontages and canopies

• 37.5 kN/sq.m floor slabs

• 1x level access loading door per unit

• Reinforced concrete 30m shared service yard

• Customer parking to the front of each unit

TENURE

Freehold.

TENANCIES & ACCOMODATION

The property is fully let in accordance with the tenancy schedule below with a WAULT of 11.93 years and a total income of £214,621 per annum reflecting a low average rent of £11.67 per sq.ft.

TENANCY SCHEDULE

Tenant Area (GIA) Lease Start Lease Expiry Rent Review WAULT Rent Rent psf EPC Comments

Paul Rigby Ltd 4,768 15/02/2021 14/02/203615/02/202615/02/2031

14.70 £50,050 £10.50 B-40Four months rent free. Rent reviewed to RPI subject to a collar and cap of 1% to 3%.

Sports bike shop Ltd

5,436 06/05/2021 05/05/2031 06/05/2026 9.92 £67,950 £12.50 B-45

Ten months rent free + 6 months at half rent. Five yearly upward only rent review to OMRV.

London Stone Paving Ltd

8,187 23/04/2021 22/04/203323/04/202623/04/2031

11.89 £96,621 £11.80 B-45

Six months rent free. Followed by 18 months at £48,306 pa. Five yearly upward only rent review to OMRV.

18,391 11.92 £214,621 £11.67

COVENANTS

Paul Rigby Group is a West Midlands based car dealership group which was established in 2010. The company operate under the brands of Volvo and MG and have dealerships in Erdington (Volvo and MG), Stourbridge (Volvo) and Longbridge (MG).

Both Volvo and MG have seen excellent sales growth over the last 12 months with new car registrations up over 50%. Both brands have invested significantly in their electric and hybrid fleet offering a wide range of models including fully electric vehicles (XC40 Re-charge, MG5 EV and MG ZS EV).

Further information on the company can be found at paulrigbygroup.co.uk

A summary of the company’s most recent accounts is listed opposite:

Sportsbikeshop Ltd is one of the fastest growing retailers of motorcycle clothing and accessories. The company is headquartered in Boston, Lincolnshire, but has stores in Birmingham, Milton Keynes, Leeds, Reading and Bristol.

The company has an established online retail platform. Further information on the company can be found at sportsbikeshop.co.uk

A summary of the company’s most recent accounts is listed opposite:

London Stone is a market leader in the supply of natural stone paving throughout the UK. The company has showrooms in north London, Middlesex, Surrey, Kent, Essex and Birmingham.

The company has an established online retail platform. Further information on the company can be found at londonstone.co.uk

A summary of the company’s most recent accounts is listed opposite:

Paul Rigby Ltd31/12/2019

£’00031/12/2018

£’00031/12/2017

£’000

Turnover 64,766 51,218 36,319

Pre Tax Profit 976 770 544

Shareholder’s Funds 1,820 2,123 1,665

Sportsbikeshop Ltd30/09/2020

£’00030/09/2019

£’00030/09/2018

£’000

Turnover 33,275 26,377 23,391

Pre Tax Profit 2,750 1,998 2,266

Shareholder’s Funds 12,049 9,341 7,378

London Stone Paving Ltd

31/12/2019£’000

31/12/2018£’000

31/12/2017£’000

Turnover 15,094 12,876 12,969

Pre Tax Profit 1,395 737 738

Shareholder’s Funds 1,762 1,482 1,418

TRADE COUNTER INVESTMENT MARKETThe trade counter and industrial investment market continues to be one of the most sought after sectors for investors based on the continued out performance against the other real estate asset classes. This is attributed to the favourable occupational dynamic which is being fuelled by ever increasing tenant demand.

Modern trade counter investments are rare and are often situated in higher value urban settings. The schedule of recent trade counter transactions highlights the current market demand for well-let assets in strategic locations.

Date Address Area Units WAULT yrs NIY % Price CV £psf

Under OfferPeterborough Trade Centre

22,208 6 3.30 5.00 £4,338,000 £195.34

May 2021Brackmills Trade Park, Northampton

66,371 14 7.18 3.80 £15,600,000 £235.04

Feb 2021 Solihull Trade Park 69,990 7 5.48 4.65 £10,743,000 £153.49

Dec 2020 Dukes Park, Harlow 62,419 9 4.01 4.10 £14,125,000 £226.29

Nov 2020 Basingstoke Trade Park 46,933 9 5.80 4.82 £10,250,000 £218.40

FURTHER INFORMATIONShould you require further information or wish to arrange an inspection please contact:

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or

representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of it’s employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject

to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition

of such equipment for their requirements.

VATThe property has been elected for VAT and therefore VAT will be payable. It is intended that the property will be sold as a TOGC.

EPCThe property has EPC ratings as per the tenancy schedule. Copies of the certificates are available on request.

PROPOSALWe are instructed to seek offers in excess of £3,850,000 (Three Million Eight Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this price would reflect a net initial yield of 5.25%, assuming costs of purchase of 6.54%.

ANTI MONEY LAUNDERINGIn accordance with Anti Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser. Franck Steier Price Ltd 6 The Old

Post Office, Old Market Square, Warwick, CV34 4RA

ANDREW FRANCK-STEIERM: 07798 647 640andrew.franck-steier@fspproperty.co.uk

BEN BLACKWALLM: 07798 647 836ben.blackwall@fspproperty.co.uk