well let // deeside industrial park // flintshire // ch5...

WELL LET INDUSTRIAL WAREHOUSE INVESTMENT OPPORTUNITY FIRST AVENUE // DEESIDE INDUSTRIAL PARK // FLINTSHIRE // CH5 2NU

• Well let industrial investment opportunity

• Located on Deeside Industrial Park, the premier industrial location in North Wales with excellent connectivity to the regional and national motorway network.

• A comprehensively refurbished warehouse providing 96,597 sq ft of accommodation on a self-contained, secure site of 4.06 acres.

• A new FRI lease to Magellan Aerospace (UK) Limited until 31 March 2027, subject to an option to break on 1 April 2022 (5.25 years unexpired)

• Low passing rent of £362,238 per annum (£3.75 per sq ft) subject to an upward only rent review to OMR on 1 April 2022.

• Magellan Aerospace (UK) Limited provide an excellent covenant with a Dun and Bradstreet Rating of 5A1.

• Freehold

• We are instructed to seek offers in excess of £4,250,000 (Four Million, Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

• A purchase at this level reflects an attractive net initial yield of 8.0% after purchaser’s costs of 6.55%.

• Low capital value of £44.00 per sq ft.

Photo taken prior to tenant occupation


FIRST AVENUE // DEESIDE INDUSTRIAL PARK // FLINTSHIRE // CH5 2NU

// SUMMARY

CONVATEC

WESTBRIDGE

WESTBRIDGE

FTS HATSWELL

EXCELSIORPACKAGING

DAILYCER

CALBEE

HENROB

MMP

GREAT BEAR

ADS

ICELAND

FARRELLS

A548

A494

TO M56/M53 >

< TO A55 NORTH WALES


// AERIAL

1115

61

1021A

291

121

115

41

10 14

M6

M65

M65M6

M55

12

11

11

10

7

10

5

2

3

4

44

4

5

5

5

6

67

89

10

11

12

13

14

8

6

7

1

3

9

98

1011

1413

1617

19

19

20

20

21

21

22

20

21

22

23

24

25

26

27

28

30

29

31

32

19

18

17

16

15

14

8 7 6

6

5

54

3 3

3

3

2

3

3

34

1

3

2

1

2 2

27 2625

24

23

12

9

87

65

4

3

2

1

M606

M621

M1A1(M)

M18

A1

A1(M)

M1

M1

M1 M62

38

37

36

34

33 32

32

31

30

35

36

38

29 30

31

28

44

45

46

3232a

47

45

44

26

25

24

23

37

33

Shipley

M56

M53

M62

M58

M6

M6M60

M602

M60

M67M62

M62M66

M61 Bolton

Chorley

Leyland

Bury

Walkden

Swinton

Delph

PEAK DISTRICT

Rochdale

Rawtenstall

Blackburn

Preston

Southport

Blackpool

MANCHESTER

Oldham

Huddersfield

Halifax

WIDNES

ELLESMEREPORT

BIRKENHEAD

WALLASEY

Bootle

HESWALL

SPEKE

St Helens

Macclesfield

Congleton

StokeOn-trent

Stone

Stafford

Nantwich

Wrexham

NORTHWICHNORTHWICH

LIVERPOOL WARRINGTON

FLINT

Holywell

Rhyl

Rhuddlan

Denbigh

Ruthin

CorwenLlangollen

St. Asaph

Colwyn Bay

Llandudno River Mersey

Mersey Gateway

BirkenheadTunnel

KingswayTunnel

LIVERPOOLJOHN LENNON

AIRPORT

MANCHESTERAIRPORT

CHESTER

Prestatyn

Bangor

Llanfairfechan

Hollyhead

Llangefni

Anglesey

Llanrwst

Benlech

Beaumaris

BradfordLeeds

Rotherham

Sheffield

Bolton uponDeane

Harrogate

Wakefield

Barnsley

Chesterfield

Buxton

Norton Lees

LeedsBradfordAirport

A55

A55

A5058

A58

A56

A6

A6

A6

A56

A59

A59

A59

A6

A582

A583

A583

A587

A584

A671

A58

A58A666

A666

A646

A681

A646

A629

A644

A576

A6010

A627

A635A628

A523

A537

A537

A513

A53

A34

A34

A34

A34A534A530

A34

A525

A519

A519

A518

A518

A51

A51

A41

A5013

B5405

A53

A51

A51

A49

A534 A534

A41A500

A500

A527

A50

A53

A523

A623

A520

A520A34

A34

A494

A5

A5

A470

A525

A547

A547

A541

A544

A548

A548B5381

A473

A50

A55

A487

A55

A5

A5

A5

A470

A58

A64

A61

A58

A63

A6120

A610

A660

A658A650

A65

A658

A61

A59

A603

A61

A6102

A617

A61

A619

A60

A60

A57 A57

A57

A616

A695

A629

A631

A633

A630

A642

A628

A635

A5117

A494

A55

A56

A56

A49

A54

A54

A548

A494

A550

A553

A548

A540

A51

A41

A41

A41

A49

A566A537

A566

A533

A533

A580

A557

A580

A5300

A533

DEESIDE INDUSTRIAL PARK

Deeside is located approximately 7 miles (11 kilometres) to the north west of Chester, 16 miles (25 kilometres) south of Liverpool and 42 miles (65 kilometres) west of Manchester on the A550 and A548.

The area has good road infrastructure with connections to North Wales (Port of Holyhead) via the A55 and the national motorway network via the M56 and M53. The A550 and A494 between Deeside Industrial Park and junction 16 of the M56 have recently been upgraded to dual carriageway and this has led to dramatic improvement in the locations connectivity.

Both Manchester International Airport and Liverpool John Lennon Airport are within 40 miles drive of Deeside. Executive flights and cargo handling facilities are also available at Hawarden Airport which is located within 3 miles.

Deeside Industrial Park has good road infrastructure with connections to North Wales (Port of Holyhead) via the A55 and the national motorway network via the M56 and M53.



// LOCATION

A550

A548

A4

94

NORTH WALES TO M56

TO A55NORTH WALES

FOURTH

AVE

SECOND AVE

FIRST AVE

SIXTH AVE DRIVE D

PARKW

AYFIRST AVE

DR

OM

E R

D

THIRD AVE

Deeside Industrial Park is one of the most significant industrial locations in the North West. The highly successful estate has been established since the 1970s and totals in excess of 600 acres, comprising over 5M sq ft of industrial and warehouse accommodation. It has attracted a variety of manufacturing and distribution companies involved in the food production, aerospace, pharmaceuticals, paper, packaging and engineering. Large occupiers in the area include UPM (Shotton Paper), Tata Steel, Airbus, Morrisons, Great Bear, Iceland, Toyota, Bellfield Furnishings, Convatech, Henrob, Mayr-Melnhof and Witter amongst many others.

The premises is situated on First Avenue within Zone 2 of Deeside Industrial Park. First Avenue provides direct access onto the main Parkway which in turn provides immediate access to the A548 and A550. Both the M56 and M53 motorways are situated within close proximity to the property.

The premises fall within the Deeside Enterprise Zone, a key component of the Welsh Government strategy for stimulating growth and supporting business including debt, equity and mezzanine funding (£1,000 - £2,000,000), business rates relief and high speed broadband.

Deeside Industrial Park is one of the most significant industrial locations in the North West and totals in excess of 600 acres.


// SITUATION

The property comprises a comprehensively refurbished unit located on a self-contained, secure site and has the following specification:

• 5m eaves height• 4 level access loading doors• 570 KVA power supply• Lit internally with sprinkler infrastructure• Ancillary ground and first floor office

accommodation

The property is situated on a fully fenced secure site with a substantial service yard offering separate gated entrance and exit points.




// DESCRIPTION

a

Pat

FIRST

AVEN

UE

DRIVE D

// SITEWe are informed that the property has a total site area of 4.06 acres (1.64 ha), providing a site density of 55%.

// ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following areas:

DESCRIPTION GIA (sq ft) GIA (sq m)

Warehouse 88,969 8,265

GF Office 3,820 355

FF Office 3,808 354

Total 96,597 8,974



// THE SITE

The property is let to Magellan Aerospace (UK) Ltd on a lease commencing 14 December 2016 and expiring on 31 March 2027, subject to an option to break on 1 April 2022 (5.25 years unexpired).

The passing rent is £362,238 per annum, reflecting £3.75 per sq ft. The lease is subject to an upward only rent review on 1 April 2022 to OMR. The lease is on FRI terms, subject to a schedule of condition.

The tenant has the benefit of a rent free period until 12 June 2017 (topped up by the vendor). Should the tenant not exercise their option to break then they will benefit from an additional 3 months rent free (not topped up).

// TENANT COVENANT

Magellan Aerospace is a global, integrated aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers, defence and space agencies worldwide.

The company is a component supplier for the Airbus A380, the Boeing 787 Dreamliner, the F-35 Joint Strike Fighter and Bombardier’s complete line of business and commuter aircraft.

Magellen Aerospace have strong ties to North Wales and also operate from a large manufacturing facility in nearby Wrexham, which currently employs circa 460 workers. In 2016 the company invested a further £6m into this facility, which secured a long-term £400m contract with Airbus to supply structural wing components.

Magellan Aerospace (UK) Limited has been granted a Dun & Bradstreet rating of 5A1 and has published the following accounts:

Year End 31 Dec 2015

(000’s)

Year End 31 Dec 2014

(000’s)

Year End31 Dec 2013

(000’s)

Sales Turnover 120,373 113,318 113,620

Profit / (Loss) Before Taxes 8,198 7,532 9,073

Tangible Net Worth 51,558 45,198 39,306

// TENURE

The property is held freehold.



// TENANCY

// OCCUPATIONAL MARKET COMMENTARYDeeside Industrial Estate is one largest industrial locations in the North West situated on the English/Welsh border and was developed in the 1970’s totalling in excess of 600 acres and 5M sq ft over four large industrial zones.

Deeside is known for a number of large advanced manufacturing/engineering companies along with distribution uses covering the main sectors of food production, aerospace, pharmaceuticals, paper, packing, furniture manufacturing and engineering. There have been a number of transactions in the area over the past few years which demonstrate occupational demand for larger units, including:

Location Size (sq ft) Occupier Terms Rent / Price Comments

Unit 90, First Avenue, Deeside 60,000 Calbee 15 yr lease £4.25 psf 2015 letting

Unit 2, Zone 2, Second Avenue, Deeside 81,793 Farrells Transport n/a £30.00 psf Sold 2015

Expressway 56, Deeside 162,116 Mayr-Melnhof Packaging UK 10 yr lease (5 yr break) £3.97 psf 2014 letting

Unit 41, Zone 2, Deeside 138,000 Bellfield Furnishings 10 yr lease (5 yr break) £3.50 psf 2014 letting

Parkway, Zone 2, Deeside 160,000 Henrob n/a £40.00 psf Sold 2014

Express 55, Deeside 105,000 Ralawise n/a £55.00 psf Sold in 2013

// INVESTMENT MARKET COMPARABLESDate Property Size (sq ft) Tenant AWULT Price NIY

Nov-16 Venus 110, Knowsley 110,428 Amazon UK Services Ltd 4.5 years £8.60m 6.30%

Aug-16 Road One, Winsford 105,757 H&M Hennes & Mauritz Ltd 4.0 years £5.63m 7.10%

Oct-16 Expressway 56, Deeside 162,116 Mayr-Melnhof Packaging UK Ltd 2.5 years £7.10m 8.50%

Jun-16 Lister Road, Runcorn 122,478 DHL Supply Chain Ltd 3.5 years £7.00m 7.77%

Jan-16 Omega Drive, Irlam 60,197 Omnicell Ltd 4.5 years £4.74m 6.50%


// MARKET COMMENTARY

// EPCAn Energy Performance Certificate is available upon request.

// VATThe property is elected for VAT and it is the intention to treat this transaction as a Transfer of a Going Concern (TOGC).

// CONTACTSSimon Wood John Burrows Matthew PochinB8RE B8RE Legat Owen01925 320520 01925 320520 01244 [email protected] [email protected] [email protected]

Misrepresentation Act 1967. Unfair Contract Terms Act 1977. The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. January 2017. RB&Co 0161 833 0555.

// PROPOSALWe are instructed to seek offers in excess of £4,250,000 (Four Million, Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a NIY of 8.0%, assuming purchaser’s costs of 6.55%.

A purchase at this level reflects an attractive capital value of £44.00 per sq ft.



// FURTHER INFORMATION

well let // deeside industrial park // flintshire // ch5...

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