TREFOREST
Transcription
TREFOREST
Parc Nantgarw TREFOREST SOUTH WALES, CF15 7QU HIGH YIELDING, HIGH QUALITY INDUSTRIAL INVESTMENT WITH ASSET MANAGEMENT OPPORTUNITIES LIVERPOOL INVESTMENT CONSIDERATIONS • • • • • • • Holyhead High quality industrial/business units situated in a prime mixed-use business location north of Cardiff city centre Located only three miles from Junction 32 of the M4 Motorway Nearby occupiers include Showcase Cinema, Makro, Peacocks, DHL Logistics and Companies House Good potential to exploit asset management angles Includes expansion land suitable for a range of uses (subject to planning) Passing income of £561,558 pa and let to the substantial covenants of GMAC, DSG and DOOSAN Asking price of £6.25M, reflecting an 8.5% net initial yield The Property TO CAERPHILLY A470 Chester A487 Shrewsbury A483 A44 A49 A487 Builth Wells HEOL CRO CHENDY UE (A4 05 4) POWYS ROAD AD N RO SEVER AV EN MEA TAFFS D RD GWENT ROA D MAIN BIRMINGHAM TO CARDIFF HEOL CROCHENDY TAFFS FALL RD A49 WALES SOUTH A487 UNIVERSITY PLAYING FIELDS A470 M6 A5 Junction 32 (3 MILES) A 470 CINEMA Parc Nantgarw TREFOREST A55 Aberystwyth M4 MANCHESTER TO TAFFS WELL A40 A40 ff rdi Ca To FORD RIVERSIDE G17 Neath A465 SWANSEA 38 37 M4 Bridgend Train Stat ion PARC NANTGARW LOCATION The properties are situated in a prominent position on Heol Crochendy, the main road through Parc Nantgarw, an established mixeduse business location in South Wales. The business park is situated just off the A470 which links Cardiff to Merthyr Tydfil and there is excellent motorway access, with Junction 32 of the M4 approximately 3 miles south. Parc Nantgarw is well known as an office, leisure and light industrial location on the northern fringe of Cardiff, the capital city and centre for administration and government in Wales. There are approximately 310,000 people living in the city and a further 1.2 million within a 45 minute drive time of the city centre. Office occupiers nearby include Companies House, Velindre NHS Trust and CADW, while Showcase Cinemas, Bowlplex, Nando’s and Frankie & Benny’s are in the immediate vicinity. Light industrial occupiers include Peacocks, DHL Logistics and Makro, proving Parc Nantgarw to be a true mixed-use business park. Cardiff city centre is located approximately 8 miles south of Parc Nantgarw and provides mainline rail services to London Paddington. M50 M5 Gloucester Merthyr Tydfil CENTRE COURT THE WILLOW Ross-on-Wye A40 Carmarthen A477 MAIN AVENUE (A4054) A470 A470 NEWPORT 32 Swindon M4 CARDIFF M5 BRISTOL Parc Nantgarw TREFOREST SOUTH WALES HE OL Unit 6.3 Y GA M LA S Unit 6.2 Unit 6.1 N AI M E AV L EO Y ND HE OC CR H E NU A470 AND M4 EXPANSION LAND DESCRIPTION Units 6.1, 6.2 & 6.3 Parc Nantgarw are three modern, single-storey industrial/warehouse units built in the early 1990’s. 2 • Approximately 10,044 m2 (108,115 ft2) • Total of 3.5 hectares (8.65 acres) • Expansion land of 0.5 hectares (1.25 acres) • Unit 6.1 converted to B1 office use 2 In total the three properties comprise approximately 10,044 m (108,115 ft ) on a gross internal basis, which excludes tenants improvements and external plant rooms etc. All the units are detached and benefit from extensive forecourt car parking, in addition to secure rear yards with loading facilities. Situated on an overall site of 3.5 hectares (8.65 acres), each unit has a significant amount of under-utilised landscaped areas, while the total area includes expansion land at the rear of Unit 6.1 comprising approximately 0.5 ha (1.25 acres) that could be developed for a range of uses (subject to planning). Each property is of steel portal frame construction, with profile steel sheeting roofs (double skinned) and elevations formed from composite cladding panels. The office element at the front of all units benefits from full height glazing and a modern office specification, while Unit 6.1 has been converted throughout to a high specification office/call centre. Parc Nantgarw TREFOREST SOUTH WALES Unit 6.1 Warehouse (converted to offices) Ground floor offices (original) 1st floor offices (original) Total m2 ft2 3,568 635 636 4,839 38,402 6,844 6,846 52,092 The warehouse has been converted to a high specification B1 office/call centre, including fully accessed raised floor, air conditioning, VDU lighting and 8-person passenger lift. In addition to the 2-storey offices at the front there is an open fronted mezzanine floor of 4,595 ft2 (with cellular offices and canteen/break-out area), while externally there is a security gatehouse and plant rooms that comprise approximately 1,961 ft2. The forecourt and secure side/rear yard provide 173 delineated car parking spaces. Unit 6.2 Warehouse Ground floor offices 1st floor offices Total m2 ft2 2,605 200 200 3,005 28,041 2,151 2,151 32,343 A detached industrial unit with modern 2-storey offices at the front and a secure rear yard. The warehouse has two up and over loading doors, eaves height of approximately 6.1m, halogen lighting units and translucent roof panels. The landscaped forecourt includes 49 delineated car parking spaces. Unit 6.3 Warehouse Ground floor offices 1st floor offices Total m2 ft2 1,722 241 237 2,200 18,540 2,594 2,546 23,680 A detached industrial unit with a clear internal height of 6.1m, two up and over loading doors and a secure rear yard. The 2-storey office at the front include plastered and painted walls, suspended ceilings, recessed lighting, carpeted concrete floors (with floor boxes), double glazing and gas central heating. The landscaped forecourt includes 32 delineated car parking spaces. Parc Nantgarw TREFOREST ASSET MANAGEMENT OPPORTUNITIES • Outstanding rent review on Unit 6.1 with potential uplift of circa £80,000 pa • Up to 1.25 acres of possible development land with main road frontage • Re-gear options to explore with Doosan Infracore and GMAC • Target known occupier requirements for the re-letting of Unit 6.2 • Potential to convert Unit 6.2 to a higher value use such as an office/call centre SOUTH WALES PROPERTY TENANT SIZE LEASE START LEASE EXPIRY (BREAK OPTION) RENT REVIEW PASSING RENT LEASE DETAILS Unit 6.1 General Motor Acceptance Corporation (UK) Plc 4,839 m2 25 June 1993 24 June 2018 25 June 2008 £230,000 Let to GMAC on an assignment, subject to a deed of variation. June 08 rent review notice has been served at £311,000 pa, equating to £5.75 ft2. The call centre conversion was approved as a tenant improvement, so the rent review is based on industrial values. Unit 6.2 DSG Retail Limited (52,092 ft2) 3,004 m2 3 Apr 2006 (32,343 ft2) Unit 6.3 TOTAL Doosan Infracore UK Ltd 2,199 m2 (£4.41 ft2) (25 Dec 2011) 2 Apr 2011 - (£6.00 ft2) (2 Apr 2009) 29 Sept 1995 28 Sept 2010 £194,058 - £137,500 (23,680 ft2) (£5.81 ft2) 10,042 m2 £561,558 (108,115 ft2) The break option is subject to 9 months notice and has recently been instigated by the tenant. A schedule of dilapidations is being prepared. THE MARKET The industrial market in Treforest was the subject of the largest ever industrial property investment transaction in South Wales, with the £60m purchase of Treforest Industrial Estate by Segro in 2006. This reinforced the area as one of the prime industrial locations in South Wales, while the adjacent Parc Nantgarw has emerged as a complimentary mixed use business park, with a diverse range of quality occupiers. Although the local market has been very active in the small/medium freehold sector over recent years, the recent financial difficulties have resulted in more companies exploring the leasehold market. Recent comparable activity in the industrial sector includes:• Imperial Park, Newport – 51,500 ft2 let in September 2008 to WH Smith on a 10-year secure term at £5.50 ft2 • Trident Park, Ocean Park, Cardiff – 21,000 ft2 let to BSS Group in June 2007 on a 15year term at an average rent of £5.84 ft2 • Avenue Industrial Estate, Cardiff – 60,370 ft2 let to Gardvenus Ltd in January 2007 for 10 years at £5.96 ft2 • Neptune Point, Cardiff – 19,760 ft2 let to Buck & Hickman Ltd and subject to a June 2005 rent review agreed at £5.75 ft2 Parc Nantgarw TREFOREST SOUTH WALES COVENANT STATUS GMAC UK Plc Year Ending Sales Turnover DSG Retail Limited 31/12/2007 £000’s 164,157 Profit / (Loss) before Taxes Shareholders Funds 31/12/2006 31/12/2005 £000’s £000’s 140,262 Year Ending 31/12/2007 £000’s Doosan Infracore UK Ltd 31/12/2006 31/12/2005 £000’s £000’s 153,544 Sales Turnover Profit / (Loss) before Taxes 219,527 77,222 Shareholders Funds 933,497 846,443 7,557 (29,071) 49,823 141,995 136,137 156,595 4,500,903 4,203,295 4,570,601 Year Ending 31/12/2007 £000’s 31/12/2006 31/12/2005 £000’s £000’s Sales Turnover 73,899 59,982 50,455 148,715 Profit / (Loss) before Taxes 1,785 1,111 1,497 917,767 Shareholders Funds 4,180 2,984 2,242 Source: ICC Source: ICC Source: ICC GMAC is one of the world's largest financial services companies, with operations in over 40 countries. GMAC UK established its UK call centre headquarters at Parc Nantgarw during 2000 and manages automotive consumer finance deals for General Motors. This includes the Vauxhall, Saab, Chevrolet and Network Q brands, who sell through some 600 retailers across the UK. Further information is available at www.gmacfs.co.uk DSG Retail Ltd trade as Currys, Dixons, PC World and Partmaster Direct. DSG specialise in the sale of high technology electronic products, audio-video & personal equipment, domestic appliances, photographic equipment, communication products and related financial and after sales services. Doosan Infracore UK Ltd (previously Euro Daewoo UK Ltd) is part of the Doosan Infracore global network, who provide first-class products and services in construction equipment, industrial vehicles, machine tools, factory automation systems, diesel engines and defence systems. Further information including their annual report can be found at www.doosaninfracore.co.kr. TENURE PROPOSAL FURTHER INFORMATION Freehold, subject to the occupational leases. We have been instructed to seek offers of £6,250,000 (Six Million Two Hundred and Fifty Thousand Pounds) for our clients freehold interest in the above property, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.5%, assuming usual purchaser’s costs at 5.75%. For further information or to arrange an inspection, please contact; VAT The property has been elected for VAT and the sale can be treated as a transfer of a going concern (TOGC). King Sturge LLP, Haywood House, Dumfries Place, Cardiff CF10 3UE Jonathan Phillips Tel: 029 20726046 [email protected] Bethan Williams Tel: 029 20726060 [email protected] MISREPRESENTATION CLAUSE The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge nor any of its 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. 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 or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property. Design and print by Carrick • Tel: 01443 843 520 • www.carrickdesignprint.co.uk October 2008.