Anchorage Park - LSH Investment Sales
Transcription
Anchorage Park - LSH Investment Sales
ANCHORAGE PARK ROBINSON WAY, PORTSMOUTH P03 5TD SOUTH COAST FREEHOLD INDUSTRIAL/WAREHOUSE INVESTMENT OPPORTUNITY INVESTMENT SUMMARY nVibrant South Coast City benefiting from excellent communications via road, rail and sea. nAttractive underlying South Coast occupational market conditions, where there is an acute shortage of supply. nProminently situated in a well established industrial location towards the western end of Anchorage Road, approximately 3 miles from J12 of the M27 and 1 mile from the A27. The A27/M27 is the main South Coast route connecting Southampton with Brighton. nTotal accommodation of approximately 115,740 sq ft (GIA) over three warehouses and one office. nTotal site area of approximately 4.25 acres. nFreehold. nMajority let on FRI terms to P&G Motors Ltd for a term of 10 years from 16 October 2013, with a tenant option to break on 15 October 2018 at a rental of £500,000 per annum, reflecting a low rate of £4.44 per sq ft. nPassing rent of £567,100 per annum, inclusive of the vendor’s rent, rates and service change guarantee for Unit 1 for 12 months from completion or until let, whichever is the sooner. nP&G Motors, t/a Unbeatable Cars, is one of the country’s largest car supermarket operators with showrooms and facilities in Crawley, Billinghurst and Portsmouth. The company has a Graydon Rating of 3A Excellent with a tangible net worth of £4.391m and a Turnover of £37.467m. nWe have been instructed to seek offers in excess of £6,500,000 subject to contract and exclusive of VAT. A purchase at this level reflects a NIY of 8.25% (after purchasers costs of 5.8%) and a capital value of £60 per sq ft. LOCATION Portsmouth lies within the county of Hampshire, approximately 19 miles south east of Southampton, 30 miles south east of Winchester, 50 miles west of Brighton and 70 miles north of London. The city benefits from excellent road communications with the M27/A27, the main South Coast route, located directly north linking to the M3 to the west and the A3(M) to the east. Both the M3 and A3(M) provide fast access north towards London and the wider national motorway network. Portsmouth benefits from four mainline stations with Portsmouth & Southsea station providing regular and direct services to London Waterloo with a fastest journey time of approximately 1 hour 30 minutes. WOKING BASINGSTOKE FARNHAM A41 A3 HASLEMERE WINCHESTER PETERSFIELD M3 EASTLEIGH M27 The City of Portsmouth is world renowned for being home to the Royal Navy and from 2016, home to the new Queen Elizabeth class of aircraft carrier. There are a number of main attractions including Gunwharf Quays and the Historic Dockyard, where the Mary Rose, HMS Victory and HMS Warrior are based. Furthermore the city hosts important World Class events including the Great South Run and from 2015, the Americas Cup where the Landrover Ben Ainslie Racing Team are permanently based in their Old Portsmouth facility. Source: NOMIS A272 A3 A3(M) SOUTHAMPTON A27 CHICHESTER PORTSMOUTH Portsmouth has a population of some 209,100 persons, with a current unemployment rate of 6.4%. Major national and global firms based in the area include BAE Systems, IBM and Pall Corporation. GUILDFORD A31 The nearest airport is Southampton International, located approximately 20 miles north-west. In the UK, Portsmouth International Port is the premier port for the western channel and second busiest cross-channel ferry port. M25 M3 ISLE OF WIGHT ARUNDEL WORTHING SITUATION Anchorage Park is prominently situated within a well established industrial location towards the western end of Anchorage Road fronting the roundabout intersection of Robinson Way, Anchorage Road and Sywell Crescent. The property is accessible via the A27(M) and the A2030 (Eastern Road). Hilsea Train station is within walking distance and provides regular direct services to London. The international port is approximately 4 miles west. The surrounding area is predominantly industrial, with areas of residential and retail. Opposite the subject property is a large Morrisons supermarket with other nearby occupiers including ATS Euromaster, Booker, BAE Systems, Smeg and Edmunson Electrical. Portsmouth Motor Park is located less than 1 mile south-west with occupiers including BMW, Mercedes, Audi, VW and Mini. A27 A2030 HIL SEA ROKO HEALTH CLUB PORTSMOUTH NO EASTERN RD BROOM CHANNEL RW AY R D AN CH O RA GE RD A2030 A27 EASTERN RD ANCHORAGE PARK ANCHORAGE RD WILLIAMS RD AIRPORT SERVICE RD Building 3 Building 1 comprises a detached two storey office building with ground floor reception and separate WC facilities. There is a passenger lift, comfort cooling and central heating. Building 3 is a single storey portal frame building with glazed and profiled metal clad elevations. The building was built in 1989 and has a minimum eaves height of 3.3m and a roller shutter loading door with rear parking. Building 2 Building 4 Building 2 lies adjacent to Building 1 and is connected by a covered walkway. The detached warehouse is accessed via two up and over roller shutter doors and separate pedestrian access. The minimum eaves height is 5.25 meters. The unit is currently ustilised for the servicing of cars. Building 4, constructed in 1993, is situated on the northern part of the site and is accessed off Painter Close and Anchorage Road. The ground floor provides a showroom with reception and small customer facing café and kitchen area. The first floor is in the process of being transformed to accommodate the further storage and display of motor vehicles. We understand the properties provide the following Gross Internal Area: SQM SQFT Ground Floor offices 326 3,505 First Floor offices 298 3,203 624 6,708 2,499 26,896 Mezzanine 415 4,469 First Floor offices 731 7,870 Sub Total 3,645 39,235 Sub Total 1,955 21,044 Ground Floor 2,178 23,450 First Floor 2,181 23,475 Building 1 Sub Total Building 2 Ground Floor Warehouse Building 3 Ground Offices/hi-tech Building 4 Ancillary Sub Total Total 170 1,828 4,529 48,753 10,753 115,744 4 3 1 2 Key Occupied by PG Motors Vacant SITE TENURE The site has a total area of approximately 4.25 acres. The property is held Freehold. R OB INS ON WAY Building 1 ACCOMMODATION RO AD PA IN T E R Anchorage Park, formally one of the main facilities for Raymarine, was developed in the 1980s with Building 4 constructed in 1993, to provide 1 office and 3 warehouse buildings with a total GIA of approximately 115,740 sq ft. AN CH OR AG E S Y WE L L CR E S C E NT CL OS E DESCRIPTION TENANCY Unit 2, 3 and 4 is let to PG Motors Limited on Full Repairing and Insuring terms, with a schedule of condition, for a term of 10 years from 16 October 2013, thereby providing approximately 8 years to expiry. The tenant has an option to break on 15 October 2018. The total current rent is £500,000 per annum which reflects £4.44 per sq ft overall. The rent is subject to an upward only rent review on the 16 October 2018. Unit 1 is currently vacant. The vendor will provide a rent, rates and service charge guarantee for 12 months from completion or until Unit 1 is let, whichever is the sooner. Copies of the lease and accompanying documentation are available on request. COVENANT PROFILE PG Motors (Company No 4275433) trading as Unbeatable Car was incorporated in 2001 and is one of the country’s largest car supermarket operators with showrooms and facilitates in Crawley, Billinghurst and Portsmouth. The company is rated by Graydon as 3A Excellent with a Risk Category of Low. A summary of the financial accounts for the last three years is set out below: Sales Turnover Profit/(loss) Before Tax Tangible Net Worth 30 April 2014 30 April 2013 30 April 2012 £37,467,000 £35,458,000 £37,738,000 £701,000 £1,118,000 £1,301,000 £4,931,000 £4,460,000 £3,700,000 The prominent position of Anchorage Park in fronting the roundabout intersection provides excellent public visibility for Unbeatable Cars branding and advertisements. The company store and display hundreds of cars from 35 different manufactures at Anchorage Park. The strategic location of the subject property allows the public quick access to the car supermarket as well as providing the tenant with quick access to the wider road network assisting them greatly with their “free collection service to a number of UK areas.” Further information on the company is available on their website: http://www.unbeatablecar.com/ SOUTH COAST INDUSTRIAL MARKET OVERVIEW INVESTMENT MARKET OVERVIEW Portsmouth is a well diversified industrial location within the South Coast, where the industrial/warehouse market continues to suffer from an acute shortage of available stock. Rents on modern second-hand units have increased from an average of £6.50 per sq ft to £7.00/£7.50 per sq ft. The rent on Anchorage Park therefore compares favorably at £4.44 per sq ft. The attractive market dynamics in the South Coast has fuelled demand for good quality industrial investments. We have outlined below some key transactions. Against the quoting price, Anchorage Park equates to an attractive NIY of 8.25% and a low capital value of £60 psf. At the end of Q2 2015, industrial supply fell by 13% from Q1 to stand at 1.645m sq ft. In particular, Portsmouth saw a reduction in availability of 11%. On new units, including pre-lets and speculative builds, it is anticipated rents will rise to in excess of £8.00/£8.50 per sq ft. Due to the lack of supply, take-up levels have fallen from 482,000 sq ft to 426,000 sq ft. However, despite this, take-up remains well above the five yearly quarterly average of 387,000 sq ft. Developers are now responding to these market conditions. Within the immediate area, Chancerygate have acquired close to 4 acres at Voyager Park with the intention to speculatively construct c.73,000 sq ft in eight units. Furthermore, there has been a significant pre-let at Voyager Park to Formaplex for 120,000 sq ft. These market dynamics have had a knock on effect with headline rents increasing and tenant incentives reducing. Date Property Size Tenant Comment Price NIY Oct-15 Brambles House, Waterlooville 55,000 sq ft Hampshire Cosmetics 15 year lease from Dec 2011 £300,000 p.a. Break in 2019 Long leasehold – 125 years Under offer – Quoting £4m (£73 psf) 7.00% Sept-15 Southmoor Lane, Havant 35,904 sq ft Lewmar Marine 15 year FRI lease, expiring 2030 £230,000 per annum with 5 yearly Rent reviews 1995 build £3.26m (£91 psf) 6.70% Aug -15 Canberra Road, Nursling 30,500 sq ft TNT Express (UK) Ltd 25 year lease from June 1995 £233,450 p.a. with 5 yearly rent reviews Long leasehold, site of 2.85 acres £3.3m (£108 psf) 6.69% Aug - 15 Unit 30 Moorside, Winchester 40,996 sq ft Barclays and Mathieson Ltd Sale and leaseback. 15 year lease £287,000 p.a. with 5 yearly RPI reviews £4.325m (£105 psf) 6.25% Aug-15 2 Brunel Way, Fareham 38,619 sq ft Crown Worldwide Holdings Ltd 10 year from 2010 FRI, outstanding review capped at £247,500 p.a. Long leasehold £3.1m (£80 psf) 6.86% July -15 Units 5,6 & 7 Watersmead Business Park, Littlehampton HQ office: 53,801 sq ft 2 warehouses at 55,603 sq ft and 60,674 sq ft 170,078 sq ft over 2 warehouse and 1 office. (£116 psf) The Body Shop WAULT c.11 years 3 co-terminus leases £19.75m 6.90% Jun -15 D’Oriel House, Holton Heath Trading Park, Poole 76,300 sq ft Tower Supplies new 10 year FRI lease, stepped rent, Freehold £4.412m (£58 psf) 7.50% EPC Anchorage Park has an Energy Performance rating of E 119. Further information is available on request. VAT The property has been elected for VAT and therefore it is envisaged that the sale will be treated by way of a Transfer of a Going Concern (TOGC). PROPOSAL We have been instructed to seek offers in excess of £6,500,000 subject to contract and exclusive of VAT. A purchase at this level reflects a NIY of 8.25% (after purchasers costs of 5.8%) and a capital value of £60 per sq ft. FURTHER INFORMATION For further information or to arrange an inspection, please contact: Jerry Vigus [email protected] T: 023 8020 6111 Matthew Barker [email protected] T: 023 8024 9181 5 Town Quay, Southampton SO14 2AQ Misrepresentation Act 1967: Lambert Smith Hampton for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Lambert Smith Hampton nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. All maps and plans are for indicative purposes only. Lambert Smith Hampton: November 2015 © Produced by Barbican Studio: +44(0) 207 634 9574