secure well let distribution investment opportunity · 2018-02-09 · investment summary • prime...

PIT LANE, TALKE, STOKE ON TRENT, ST7 1UH

SECURE WELL LET DISTRIBUTION INVESTMENT

OPPORTUNITY

TALKE 16

TALKE 16 DISTRIBUTION INVESTMENT OPPORTUNITY 1

J16 M6HIGH ST

A500A34

A500

PIT LN

TALKE 16

INVESTMENT SUMMARY

• Prime distribution warehouselocatedinStoke-on-Trent,withintheestablishedTalkeindustrialarea

• Situated1 mile north of the A500whichconnectswithJunction16oftheM6Motorway,4milestothewest

• Comprehensively refurbishedatacostofc. £3.75m

• Totalaccommodationof181,505 sq ft

• LettothesecurecovenantofCentaur Services Ltd with guarantee from MWI (UK Aquisition) Ltd

• New10 yeartermwithoutbreaks

• Initialpassingrentof£855,475per annum,reflecting£4.71per sq ft

• Fiveyearlyupward only reviews

• Tenantratingof4A2(Guarantor5A1)

• Freeholdinterest

• Seekingoffersinexcessof£11,875,000 (Eleven Million, Eight Hundred and Seventy Five Thousand Pounds)subjecttocontractandexclusiveofVAT

• Apurchaseatthislevelreflectsanet initial yield of 6.75%afterpurchaserscostof6.71%.


A1(M)

A1(M)

M25

M4

M4

M2

M5

M5

A34

A421

A429

A346

A46

A14

M50

M54

M6

M6

M6

M61

M69M42

M25

M20

M1

M1

M1

M62M62

M65

M180

M11

M3

A1(M)

A1(M)

M40

17

CHELTENHAM AYLESBURY

MILTONKEYNES

NORTHAMPTON

BEDFORD

AVONMOUTH

15

11

15

EXETER

SWANSEA CARDIFF

NEWPORT

CHESTER

CREWE

SWINDON

ELLESMERE PORT

LIVERPOOL

SALISBURY

PORTSMOUTH

SOUTHAMPTONCHICHESTER

BRIGHTONAND HOVE

BRISTOL BATH

GLOUCESTER

HEREFORD

OXFORD

WORCESTER

BIRMINGHAM

WOLVERHAMPTON

LICHFIELD

COVENTRY

LEICESTER

CITY OF LONDON

ST ALBANS

CAMBRIDGE

ELY

PETERBOROUGH NORWICH

STOKE-ON-TRENT

SALFORD

DERBYNOTTINGHAM

SHEFFIELD

LINCOLN

LANCASTER

CARLISLE

PRESTONBRADFORD

LEEDS

RIPON

WAKEFIELD

KINGSTON

GRIMSBY

UPON HULL

YORK

DURHAM

NEWCASTLE UPON TYNE

SUNDERLAND

WARWICK

DOVER

FELIXSTOWE

1 HR2HR3HR

M2

WINCHESTER

MANCHESTER

DRIVETIMES

Miles Time

BIRMINGHAM 45 50min

MANCHESTER 44 1hr

LIVERPOOL 57 1hr10min

BRISTOL 133 2hr15min

LONDON 169 2hr30min

TALKE 16

Nottoscale.Forindicativepurposesonly


LOCATION

Stoke-on-Trent,thelargestcommercialareainStaffordshire,islocatedintheNorthMidlands,approximately44milessouthofManchester,45milesnorthofBirmingham,35mileswestofDerbyand169milesnorthwestofLondon.

Thetownbenefitsfromanexcellentstrategiclocation,beingsituatedwithina1-hourtraveltimeofmanyoftheUK’smajorcitiesincludingManchester,Liverpool,Chester,Birmingham,Sheffield,Derby,Wolverhampton,NottinghamandLeicester.Thetownalsobenefitsfromexcellenttransportcommunications;putting90%oftheUKpopulationwithin4hoursorless.

Fourinternationalairportsarelocatedwithinanhour’sdriveofStoke-on-Trent.TheseareManchester,Birmingham,EastMidlandsandLiverpool.ManchesterAirportisalsohometotheWorldFreightTerminal,thelargestintheUKoutsideLondon.Thisiscurrentlyundergoingamajorexpansionprogrammethatwillincludeanewworldlogisticshub.

Liverpool’sSuperPortislessthan60minutesaway.Withinthis,therecentlyopenedLiverpool2istheUK’scentrallylocateddeepwatercontainerterminalandconnectslargervesselsclosertotheUK’sindustrial,manufacturingandconsumerheartlandthananyotherUKPort.TheUK’sothermajordeep-seaportssuchasImmingham,FelixstoweandSouthamptonareallwithina4-hourdrive.

Roadconnectionsareexcellent,giventheproximityofJunctions15and16oftheM6andtheA50,whichprovidesrapidcross-countryaccesstoNottingham,DerbyandJunction24aoftheM1Motorway.

Stoke-on-TrentrailwaystationislocatedontheWestCoastMainlineprovidingfastandfrequentrailservicestoManchester(40minutes),Birmingham(50minutes)andLondon(just90minutes).


TAMWORTH

SHREWSBURY

WHITCHURCH

WREXHAM

CHESTER

CANNOCK

STAFFORD

TELFORD

MARKET DRAYTON

ASKBOURNE

PEAK DISTRICT

ST HELENS

LEEDSBRADFORD

HALIFAX

WARRINGTON

RUNCORN

CONGLETON

CREWE

NORTHWICH

NANTWICH

M50

M62

M62

M62

M62

M55

M65

M6

M6

M6

M1

M1

M6 TOLL

M56

M53

M53

M54

A556

A51

A51 A50

A520

A52

A523A34

A53

J16

MANCHESTER

DERBY

STOKE ON TRENT

LIVERPOOL

BIRMINGHAM

TALKE 16

N

A500

A500

A34

M6 J16N

EW

CA

ST

LE

RD

TAL

KE

RD

TALKE

RD

TRAVELODGESTOKE TALKE

HIG

H S

T

OA

K T

RE

E L

AN

E

PIT LANE

M1

PIT

LA

NE

TALKE 16

N

SITUATION

Talke16issituatedwithintheestablishedTalkeindustrialarea,approximately6milesnorthofStoke-on-Trentcitycentre.Talkeissituatedlessthan1milenorthoftheA500,whichprovidesafastanddirectlinktoJunction16oftheM6approximately4milestotheWestandtheA50(M6-M1link)7milestotheSouthEast.

ThesubjectpremisesaresituatedonPitLane,themainthoroughfareservingtheTalkeindustrialarea.

the property benefits from AN EXCELLENT STRATEGIC LOCATION, WITH GOOD ACCESS TO THE REGION

,S

key ARTERIAL ROUTES.

TheattractivenessofStokeasadistributioncentrederivesnotonlyfromitsexcellentcommunicationsnetwork,butalsofromgoodlevelsoflabouravailabilityatreasonableratesand,importantly,asalocationwithanhistoricacceptanceofshiftwork,enabling24-houroperation.Thelatterhasbecomeincreasinglyimportanttotoday’sretailenvironmentwhichembraces“justintime”or“lastmile”stocktransfer.

ThesestrengthshavecreatedadistributionhubwhichhasbeenrecognisedbySainsbury’s,PetsatHome,Screwfix,NewLook,Dunelm,Marks&Spencer,Tesco,Asda,TKMaxxandNationalVeterinaryServicesamongstothers.

London169miles

Birmingham45miles

Manchester44miles

Nottingham53miles

Liverpool57miles

Bristol133miles

TALKE 16 DISTRIBUTION INVESTMENT OPPORTUNITY

Heathrow156miles

Manchester38miles

East Midlands45miles

Birmingham International

54miles

5

DESCRIPTION

ThePropertycomprisesacomprehensivelyrefurbishedindustrialunitofsteelportalframeconstruction.Thehighspecificationcrossdockedfacilityprovidesthefollowing:

Warehouse

•Minimumcleareavesheightofapproximately10m

•19docklevelloadingdoorsand5groundlevelaccessloadingdoors

•Heating,lighting(450lux)andsprinklersthroughoutthewarehouse

•3separateloadingyards

•1,000kVAonsitepowercapacity

Offices

•Twostoreyintegralofficeaccommodation

•Fullyheatedandlit

•Openplanaccommodation

•8-personpassengerlift

•Male,femaleanddisabledWC’s

External

•3extensiveyardareastothesouthern,westernandnorthernelevations

•Separateparkingareaforapproximately57cars

•Additional1.4-acreyardarea

•Securefencingtotheperimeterand

•Gatehouseaccesstotheyardareastogetherwithbarriercontrolledentrysystem.


LANDLORD/& TENANT WORKS

Thelandlordhasinvestedc.£3.75Monthebuilding.Theworksincludethefollowing:

•NewTrocalroofcoveringwitha15-yearwarrantyfromNovember2015

•Newfencingandgates

•CATArefurbishmenttotheofficesandWCs

•Fullrefurbishment/replacementofthedocklevellers

•DemolitionofsomebuildingsandanewextensiontotheNorthWestcornerwithnewrollershutterdooraccess

•Newyardareatopart

•Extensivecladdingworks,includingarecoating(10yearwarranty)

•Completeredecorationofthewarehouse

•Newlightingthroughoutthewarehouseand

•Completeoverhaulandrecoveringofthewarehousefloor.

Thetenantisalsoinvestingheavilyintheproperty,includingthefollowing:

•Comprehensivefitoutoftheofficeareas

•Afullheatingsystemtothewarehouse

•AnewLEDlightingsystemtothewarehouse

•Anewrackingsystemtotheentirewarehouseand

•Theinstallationofinracksprinklers.


ACCOMMODATION

ThepropertyprovidesthefollowingGIAareas

Accommodation Sq M Sq Ft

Warehouse 15,100.55 162,482

2StoreyOffice 1,798.18 19,355

Totals 16,862.27 181,505

ThePropertyalsoprovidesaloadingareacanopyof334.45sqm(3,600sqft)and1.4acresofseperateland/yardarea.

Thetotalsiteextendsto9.12acres(3.69ha)providingalowsitecoverof46%.

Forindicativepurposesonly

YARD

YARD

YARD

1.4 ACRES OF ADDITIONAL LAND

25m

N


PIT LANE

El Sub Sta

Mast (Telecommunication)

PIT

LA

NE

El Sub Sta

ForIndicativePurposesOnly

N


TENANCY

LettoCentaurServicesLtdonFullRepairingandInsuringterms(subjecttoascheduleofcondition)for10yearsfrom9thNovember2017withoutbreak.

Theinitialpassingrentof£855,475perannumreflects£4.71persqftoverall.

Theleaseissubjecttofiveyearlyupwardsonlyrentreviewstothehigherofpassingrentoropenmarketrent.

ThereisaguaranteeprovidedbyMWISupply(UKAquisition)Ltd.

A2yearrentfreeincentivefromtheleasestartdatehasbeengivenbythelandlord.Thiswillbespreadoverthefirst4yearsashalfrent.Thiswillbetoppedupbythevendor.

TENURE

Freeholdinterest.

OCCUPATIONAL MARKET COMMENTARY

StokeisconsideredoneoftheprincipaldistributionlocationsintheUK,duetoitsexcellentpositionattheheartoftheNorthofEnglandadjacenttotheM6Motorway,equidistantbetweenManchesterandBirminghamandwithexcellentcross-countryaccesstotheM1Motorway.

Thelocationhasasignificantskilledlocalworkforceandanextensive/variedoccupierbaserecognisedbySainsbury’s,PetsatHome,Screwfix,NewLook,Dunelm,Marks&Spencer,Tesco,Asda,TKMaxamongstothers.

ThereisanextremelylimitedsupplyofqualitybuildingsinStokeandthesurroundingareasandthereislittlespeculativedevelopmentplannedduetolandsupplyconstraints.Thereisthereforeincreasingpressureonrentlevels,whicharepredictedtoriseoverthenextcoupleofyearsduetotheweightofdemandfromoccupiers.

Town PropertySize

(Sq Ft)Tenant

Rent (£psf)

Term (Break)

Date

Stoke CampbellRoad 137,000 Michelin £5.35psf 15yearsNov2017

Crewe WestonRoad 92,000WarehouseOne

£4.95psf 10yearsSep2017

Winsford RoadOne 150,000 Henkel £5.50psf 15years u/o

Stoke TrenthamLakes 220,000 Amazon £5.00psf 10yearsAug2016

Keyrecentlettingsacrosstheregionareasfollows:


INVESTMENT MARKET COMMENTARY

DemandforBigBoxindustrialanddistributionaccommodationhasremainedstrongacross2017,predominantlydrivenbyamixofInstitutional,LocalAuthority,REITandoverseasinvestors.Theopportunitytoacquiresecure,longincomestreamswithrentalgrowthprospectsamidaUKwidelackofsupplyandexcellentoccupationalmarketremainkeycontributorstothesector’sattraction.

Keytransactionsofnoteinclude:

AddressSize

(Sq Ft)Tenant

Unexpired Term

Price NIY Date

StakehillIndustrialEstate,Middleton 148,748 Toolstation 15.0 £13.85m 5.19% Dec2017

StakehillIndustrialEstate,Middleton 143,873 Footasylum 4.7 £10.33m 6.20% Nov2017

BigSam,WingatesIndustrialEstate,Bolton

275,155 TescoStoresLtd 4.2 £24.40m 5.35% Nov2017

SherwoodPark,Nottingham 143,578SPSAerostructures

Ltd9.5 £9.37m 5.85% Aug2017

WakefieldEurohub,Wakefield 189,136AlliedGlassContainers

10.0 £11.80m 6.39% Apr2017

BigStan,Stoke-on-Trent 219,789AmazonUK

Services10.0 £17.00m 5.75% Oct2016


Centaur Services LimitedFoundedin1964,CentauristheUK’sleadingveterinarywholesalerssupplyingover22,000veterinarymedicinesandancillaryproductstoover1,200veterinarypracticesthroughouttheUK.CentaurServicesLimitedhaveaDun&Bradstreetratingof4A1basedonatangiblenetworthof£17,312,000andrepresentaminimumriskofbusinessfailure.Theyhavepublishedthefollowingmostrecentaccounts:

COVENANT


30/09/2016 (000’s) 30/09/2015 (000’s) 30/09/2014 (000’s)

Turnover £229,676 £204,979 £197,290

Pre-taxprofit £2,381 £152 £2,540

TangibleNetWorth £17,312 £16,004 £16,294

30/09/2016 (000’s) 30/09/2015 (000’s) 30/09/2014 (000’s)

Turnover n/a n/a n/a

Pre-taxprofit n/a n/a n/a

TangibleNetWorth £37,066 £43,103 £43,181

Furtherinformationcanbefoundatwww.mwivet.com and www.amerisourcebergen.com

MWI Supply (UK Acquisition) Limited (The Guarantor)MWISupply(UKAcquisition)LimitedispartofMWIAnimalHealthcare,oneofthelargestDistributorsintheU.S.,servingCompanionAnimal,Equine,andLivestockmarketssince1976.Furthermore,thiscompanywasacquiredin2015byAmerisourceBergen,oneofthelargestwholesalepharmaceuticalanddistributioncompaniesintheworld,headquarteredintheUSandranked11ontheFortune500withmorethan$150bninannualrevenues.MWISupply(UKAcquisition)LimitedcompanyhaveaDun&Bradstreetratingof5A1basedonacurrenttangiblenetworthof£37,066,723andrepresentaminimumriskofbusinessfailure.Theyhavepublishedthefollowingmostrecentaccounts:

Furtherinformationcanbefoundatwww.centaurweb.co.uk

Disclaimer:B8 Real Estate on its own behalf and on behalf of the vendors / lessors of the properties whose agent B8 Real Estate is, gives notice that: 1 (a) All particulars provided are given as a general outline only for the guidance of the intending purchaser, lessee or tenant, and do not constitute in whole or in part, an offer of contract for sale or lease; (b) Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility. None of the statements contained in these particulars as to the property are to be relied upon as statements or representations of fact; (c) The vendor / lessor does not make or give, and neither B8 Real Estate nor any of its members or any person in its employment has any authority to make or give any representation or warranty whatsoever in relation to any properties. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor / lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor / lessor and a purchaser or tenant. 2 Prospective purchasers / lessees or tenants should not rely on any particulars provided and are strongly advised to; (a) Satisfy themselves by inspection or otherwise as to the correctness of each statement contained in these particulars; (b) Inspect the property and the neighbouring area; ensure that any items expressed to be included are available and in working order; (c) Arrange a full measured, structural (and where appropriate environmental) survey of the property; and (d) Carry out all necessary searches and enquiries. FEBRUARY 2018.

FURTHER INFORMATION

Simon Wood John Burrows07793119210 [email protected] [email protected]

DATA ROOM

AnelectronicdatarooomhasbeensetupwhichisaccessiblefromtheB8RealEstatewebsite.

INVESTMENT CONSIDERATIONS

• ExcellentdistributionlocationwithinashortdistanceoftheM6motorway

• Moderndistributionunitbenefittingfromacomprehensiverefurbishmentpriortoletting

• SignificantshortageofequivalentqualityandsizeofpremisesacrosstheNorthWestandMidlands

• New10yearunbrokenterm,and

• Excellentcovenantguarantor,ratedbyD&Bas5A1.

CAPITAL ALLOWANCES

AnyremainingCapitalAllowancesaretoremainwiththevendor.

PROPOSAL

Weareinstructedtoseekoffersinexcessof£11,875,000 (Eleven Million, Eight Hundred and Seventy Five Thousand Pounds),subjecttocontactandexclusiveofVAT.ApurchaseatthislevelreflectsanattractiveNet Initial Yieldof6.75%assumingstandardPurchaser’scostsof6.71%,andacapitalvalueof£65 per sq ft.

B8RealEstate6800DaresburyPark,WarringtonWA44GE01925320520www.b8re.com

secure well let distribution investment opportunity · 2018-02-09 · investment summary • prime...

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