beldray industrial estate

Industrial Estate Investment
BELDRAY INDUSTRIAL ESTATE
Beldray Road, Mount Pleasant, Bilston, WV14 7NH
Multi-let Industrial Estate Investment Opportunity
Site outlines for indicative purposes only.
Beldray Industrial Estate, Beldray Road, Mount Pleasant, Bilston, WV14 7NH
A38
Stoke-on-Trent
A52
Newcastle-under-Lyme
A507
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The town also benefits from a tram service from Bilston Bus Station
which provides access to Birmingham City Centre in approximately
30 minutes.
Birmingham Airport, situated approximately 17 miles to the south east,
is one of the largest airports in the UK and handled more than 10
million passengers in 2015, the seventh busiest airport in the UK. The
airport benefitted from a runway extension which opened in July 2014.
B
at
Gre
A1(M)
A505from Coseley, approximately 1.5 miles to the
A5 provided
Rail services are
south west, whichLUTON
is on the London Midland line and provides access
to Birmingham New Street
Luton and London Euston with a quickest journey
Airport
time of 13 minutes and 1 hour 51 minutes respectively.
A41
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Bilston is well accessed being located adjacent to the Black Country
Route and A41. The Black Country Route provides access to the M6
(Junction 10) 3 miles to the north east which provides access to the
M5 to the south east and the M54 to the North. The A41 provides
direct access into Birmingham City Centre 10 miles to the south
east and M42 (Junction 5) 20 miles to the south east.
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Bilston is situated on the outskirts of Wolverhampton 3 miles south
eastGLOUCESTER
of the City Centre, 10 miles north west of Birmingham and 18
miles south of Stafford.
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Location
A422
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A429
Hereford
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The Crescent
NORTHAMPTON
A423
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A45
Warwick
A46
Stratford-upon-Avon
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A422
Worcester
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Coventry
Airport
A605
ay
We are instructed to seek offers in excess of £3,200,000
(Three Million Two Hundred Thousand Pounds),
subject to contract and exclusive of VAT. A purchase at
this level reflects a net initial yield of 8.37% assuming
usual purchasers costs.
A435
A14
A508
M40
A4025
A49
COVENTRY
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Birmingham
International
Airport
M42
A448
A456
A6
M1
M6
Peterborough
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Kidderminster
M69
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BIRMINGHAM
A442
A49
A5
Mountford L a n e
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Walsall Sutton
Coldfield
West Bromwich
A454
LEICESTER A47
M42
M6 TOLL
BILSTON
Wolverhampton
Walsall
A1
BELDRAY INDUSTRIAL ESTATE,
A16PLEASANT
BELDRAY ROAD, MOUNT
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A prominent West Midlands multi let industrial estate
with good access to the M6, Birmingham Airport
and the wider national motorway network
Four separate industrial units, occupying a prominent
position on the estate, totalling 81,519 sq ft
(7,573 sq m) forming part of a larger estate
Freehold
Total site area of approximately 3.38 acres (1.37 ha)
Let to Hexstone Limited and Novo CSV Limited
A438
and one vacant unit
Hexstone Limited account for approximately 74%
of the contracted income
Current passing rent of £283,871 per annum which
includes a rental top up on the vacant unit of £3.50 psf.
A52
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A458
Midlands
Airport
A42
A41
Telford
M1 A453
A607
Burton upon Trent
A38
A51
A52
A46
163
Lox
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A442
Investment Considerations
DERBY
A518
M6
Shrewsbury
NOTTINGHAM
A515
B4
A49
A614
A1
A50
A53
A60
Multi let industrial estate Investment Opportunity
Works
Unit 2
7
Unit 3
ON
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BE
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64
56
Unit 4
14
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The property occupies a site of approximately
3.38 acres (1.37 ha).
The surrounding area is made up of industrial and residential uses with nearby
occupiers including JJ Crump & Son Insulation, Wilcox Textile Reclaimers &
Processors, Press Metal UK Limited, Barton Storage Systems and Midwest
Motor Factors.
Tenure
The property is held Freehold
West Midlands Industrial Market
m
0.5
The West Midlands industrial market has experienced a
significant change over the past 12 months with a good
outlook for multi-let industrial estates which are experiencing
a decline in vacancy rates, increasing lease lengths and rents,
as well as a reduction in tenant incentives.
The estate is made up of four industrial units; units 1, 2 and 3 are located to the
eastern side of Beldray Road and unit 4 to the west. All four units are of brick
construction with metal sheet clading and benefit from roller shutter doors.
Unit 1 has been subdivided with office accommodation situated to the front of the
property at ground and mezzanine level with the warehouse unit situated to the
rear of the property. The tenant uses the unit for wholesale distribution.
There has been a noticeable shortage of Grade A supply of
industrial and logistics with lease lengths now up to 15 years
straight with no break options on the prime buildings.
Tenant demand is improving with significant activity from
occupiers ranging from retailers to logistics and the
automotive sector.
Unit 3 has been subdivided to provide office accommodation to the front of the
property over ground and first floors with the warehouse to the rear of the property.
The unit was extensively refurbished by the tenant when they took occupation.
T
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Beldray Industrial Estate is situated either side of Beldray Road, approximately
50m north of its junction with Mount Pleasant. The main town centre is situated
approximately 500m to the south west of the subject property.
Unit 2 has been fitted out with racking and a small office.
46
El Sub Sta
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ar
W
Site Area
Description
Unit 1
40
Situation
Unit 4 benefits from office accommodation at the front of the property over ground and
first floors with the warehouse accommodation to the rear of the property. The unit has
only recently become vacant and the tenant has returned it in a lettable condition.
Rents are now up to £6.50psf for prime industrial in the region.
Prime rents being achieved in the Black Country are in the
region of £5.75-6.00psf with secondary rents of £4.75psf.
ET
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© Crown Copyright, ES 100004106. For identification purposes only.
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Tenancy Schedule
34
32
39
0m 10m 20m 30m
Unit
Tenant
Floor
Area
sq m
Area
sq ft
Current
Rent p.a.
Rent
psf
Lease
commence
Lease
expiry
1
Hexstone
Limited
Ground
2,780
29,926
£150,000
£3.47
01/03/11
28/02/21
179
1,926
Ground
1,051
11,320
Total
4,010
43,172
Ground
1,192
12,827
£51,807
£3.48
11/02/15
10/02/20
193
2,073
Total
1,385
14,900
Ground
2,066
22,241
£82,064
£3.50
112
1,206
2,178
23,447
7,573
81,519
Churchill
Next
review
Comments
Conservative Club
25
Ordnance Survey © Crown Copyright 2016. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1441
1st
2
3
Novo CSV
Limited
1st
4
Vacant
1st
Total
Total
£283,871
Outstanding rent review from 01/03/2016. The tenant will
pay 50% of the rent agreed at the 01/03/2016 review for
the period 01/03/2016 to 28/02/2017 and will pay 75%
of the rent agreed at review for the period 01/03/2017 to
28/02/2018. These rental discounts will be topped up by
the vendor. There is a schedule of condition attached to
this lease.
11/02/17
The current passing rent is £25,903 p.a. Vendor to
top up rent free until expiry of half rent incentive at
10/02/2017 and also the £31,856 that is owed to the
tenant in respect of the refurbishment works carried out
to the property. There is a schedule of condition attached
to the lease. The tenant is to pay a further rent deposit of
£5,000 to the landlord on or before 11/02/2017.
Vendor to top up rents and rates for 18 months.
Beldray Industrial Estate, Beldray Road, Mount Pleasant, Bilston, WV14 7NH
Covenant Information
Hexstone Limited
Hexstone is the company behind leading fasteners and fixings
experts Owlett-Jaton, Unifix, Galaxy Fasteners, Icon Fasteners,
JCP Fixings, and Stainless Threaded Fasteners, and is designed
to strengthen the supply chain to the fastener and fixings industry.
Turnover
Pre-tax Profit
Total Net Worth
31/12/2012
31/12/2013
31/12/2014
£54,437,000
£55,357,000
£59,359,000
£2,230,000
£2,125,000
£3,052,000
£27,490,000
£29,143,000
£31,654,000
Novo CSV Limited
Novo CSV specialise in the repair of electrical household goods.
Turnover
Pre-tax Profit
Total Net Worth
31/12/2012
31/12/2013
31/12/2014
-
-
-
-
-
-
£13,173
£40,109
£40,527
EPC
The properties EPC ratings are as follows:
Units 1&2 – C (67)
Unit 3 – D (83)
Unit 4 – E (103)
More information available on request.
VAT
The property has been elected for VAT and therefore VAT will
be payable on the purchase price. It is anticipated that the sale
will be treated as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek offers in excess of £3,200,000 (Three Million Two Hundred Thousand Pounds),
subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.37%
assuming usual purchasers costs.
For further information or to make arrangements for viewing please contact:
Andy Pointon
020 7543 6720
Richard Lea
020 7543 6832
[email protected]
[email protected]
www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as
statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP 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 the property. 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 or tenants are strongly advised to:
(a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all
necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 03.16