PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ MODERN LOGISTICS SALE AND LEASEBACK OPPORTUNITY
PATTONAIR ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
INVESTMENT SUMMARY
• Modern urban logistics investment opportunity. • High specification unit, constructed in 2007 and extending to 75,543 sq ft. • Strategically located 2 miles south of Derby City centre and with easy access to the M1 via the A6, A50. • Serving as the UK HQ for Pattonair (trading as Incora™) and distribution facility. • Sale and leaseback to Pattonair (Derby) Ltd with a guarantee from Pattonair Ltd on a 20 year lease with an option to break in year 10. • Excellent covenant with a Very Low Risk of business failure (100/100 Experian Score). • Passing rent of £435,000 (£5.76 per sq ft), per annum subject to 5 yearly RPI linked reviews (1-3% pa compounded). • Freehold
We are instructed to seek offers in excess of £7,030,000, subject to contract and exclusive of VAT
A purchase at this level will reflect a net initial yield of 5.75%, assuming purchaser’s costs of 7.65%, and low capital value of £93 per sq ft PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
BUXTON CHESTERFIELD MACCLESFIELD M80 EDINBURGH M1 GLASGOW M8 LOCATION M74
MANSFIELD MATLOCK NEWARK Derby is one of the three key cities in the East Midlands A74(M) LEEK ONTRENT CARLISLE NEWCASTLE UPON TYNE
and sits within the M1 corridor, regarded as one the M6 prime logistics locations in the UK. Derby is located STOKE-ON-TRENT A1(M) approximately 15 miles west of Nottingham, 30 miles north M6 NOTTINGHAM A1(M) A52 west of Leicester and 125 miles north west of London. LEEDS A50 M65 HULL DERBY GRANTHAM M62 UTTOXETER 25 M6 M18 M1 M180 M6 M58 LIVERPOOL MANCHESTER A50 M53 M56 EAST MIDLANDS 24 AIRPORT DERBY M1 STAFFORD M1 MELTON Derby is regarded as one M6 MOWBRAY M54
M69 the prime logistics locations BIRMINGHAM M6 M6 ASHBY-DE-LA-ZOUCH M40 M1 CANNOCK M50 in the UK M5 M11 M54 M6 (T) LEICESTER M40 M25 M4 M4 LONDON CARDIFF M4 M2 M25 M20 M3 M23 M42 A5 DOVER WOLVERHAMPTON 9 M5 A 14 M69 5 1 SOUTHAMPTON 4 M6 M1 CORBY EXETEREXETER
A M6 A 6 6 M5 BIRMINGHAM
M42 M6 KETTERING
O COVENTRY L S O N M E D O IV N M40 A R M45 S R OA R T D D A O T Y N O N R C E O S S A A W D A A 6 Y IDG R E LA B NE G N A
O 6
L
A
5
1 4 L Ascot O Y N A
D Business Park W O N S R E O A N D Y A R O
S M
A
Kiwi Park S
T O A5 N 111 Crewton R OSM O D A A OA ST D Y R O VE N AR P H A R S K H A R A 5 R O 1 1 D A 4 11 L Osmaton Park A5 O D W R O A A D D 5 HARVEY ROA 111 Derby A 5 Athletic Club 1 4 PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
Derbyshire CCC A61
A601 Denby
Derby City Centre A52
A601 A601 A6
A52 Derby Pride Park Stadium A52 A5194 Derby Arena M1 Motorway Spondon A6
Osmaston Road
Bombadier A5111 A5194
Travis Perkins Heineken K&N
UPS A6 XPO Logistics Ascot Drive
A5111 Peartree A6 A6
A5111
Rolls Royce A5111 Shardlow Road PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
CONNECTIVITY Road Rail The location boasts excellent connectivity The city is also served by Derby railway station, situated approximately 7 miles west of Junction an interchange point between the Midland 25 of the M1 motorway with the A52 dual Main Line from London St Pancras to Leeds. carriageway providing a direct link. Derby is The station provides a fastest journey time of also served by the A38 trunk road which runs approximately 1 hour 20 minutes to London St immediately to the west and connects Derby to Pancras. The station also serves local services Birmingham in the south west up to Junction to Nottingham, Stoke-on-Trent, Crewe and 28 of the M1 motorway to the north west. Birmingham. To the south of Derby is the A50 trunk road which runs east to west linking Junction 24A of the M42 motorway to Junction 15 of the M6 Location Minutes motorway. Nottingham 20
Location Miles Leicester 21
Derby Southern Bypass (A50) 6 Birmingham 34
M1 Junction 25 7 London 80
Nottingham 14
Birmingham 35 Air London 125 East Midlands Airport is situated approximately twelve miles to the south east of Derby at Junction 23A of the M42 Motorway. East Midlands Airport is the UK’s busiest pure cargo airport and second only to Heathrow handling The location over 328,000 tonnes of cargo every year.
boasts excellent Airport Miles connectivity situated East Midlands Airport 12 approximately 7 miles west of Jct 25 M1 Birmingham Airport 42 PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
SITUATION
Ascot Business Park is situated approximately two miles to the south east of Derby city Longbridge Lane is accessed directly off Ascot Drive and is an established industrial and centre within the established commercial area of Ascot Drive. Ascot Drive has good logistics area. Attracting occupiers including Bombadier, UPS and Rolls-Royce situated links to Pride Park, the A52, outer ring road and thereby the A50 and M1 motorway. to the south west. PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
The warehouse benefits from the following specification: • Minimum eaves height of 10m • Access via 6 level access doors and DESCRIPTION 1 dock level loading door The property comprises a modern, single bay, warehouse • Internally the warehouse has a with ancillary offices totalling approximately 75,543 sq ft. concrete floor, part blockwork and The property was constructed in 2007 and is of steel portal part profile clad elevations, high bay frame construction with profiled metal cladding to the roof sodium lamps, a jet heating system and side elevations. and is sprinklered throughout. • High specification 3 story offices to the front, including a canteen together The property comprises a with staff welfare facilities. • Externally the unit provides car warehouse with ancillary parking for approximately 92 vehicles offices totalling 75,543 sq ft PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provides the following Gross Internal Areas which:
Description Sq Ft Sq M
Warehouse 60,181 5,591.02
Ground Floor Office 5,178 481.05
First Floor Office 5,092 473.04
Second Floor Office 5,092 473.04
Total 75,543 7,081.15 TENANCY Mezzanine (1st and 2nd floor) 38,750 3,600 INFORMATION
The property will be let to Pattonair (Derby) Limited by way of a Sale and SITE AREA Leaseback on a new 20 year (10 year break option) Full Repairing and The site extends to 3.79 acres (1.54 hectares) providing a site Insuring Lease, subject to a schedule density of approximately 41% of condition. The initial passing rent will be £435,000 per annum, reflecting £5.76 per sq ft. The rent will be subject to five yearly rent reviews TENURE in line with RPI subject to a cap and collar (1-3% per annum compounded). Freehold (title number DY411159). The lease will be guaranteed by Pattonair Ltd.
A copy of the proposed occupational lease is available upon request.
Ordnance Survey © Crown Copyright 2020. All Rights Reserved. Licence number 100022432 Plotted Scale - 1:1500. Paper Size - A4 PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
COVENANT INFORMATION
Pattonair are the leading global aerospace and defence supply chain service provider. Pattonair operate in 7 countries with their global HQ based in Derby (subject property).
Pattonair provide global products and services to a large number of customers in the Aerospace sector including Airbus, BAE Systems, Eaton, GE, Meggitt, Parker, Rolls-Royce, Safran Group and UTC.
The subject property provides an important distribution facility and also serves as a dedicated administrative base and showcase for Pattonair to their customers, suppliers and visitors.
Pattonair & Wesco Aircraft merged in January 2020, together the two combined entities recently re-branded to Incora™. Incora™, is a leading, global provider of innovative supply chain solutions. Beginning with a strong foundation in the aerospace and defence markets, Pattonair utilise their expertise to also serve industrial manufacturing, marine, pharmaceuticals, and beyond. Pattonair incorporate themselves into their customers’ businesses, managing all aspects of supply chain from procurement and warehouse management to logistics and on-site customer services.
Pattonair (Derby) Ltd
GBP ‘000 31/12/2018 31/12/2017 27/12/2016
Turnover £190,312,000 £142,549,000 £141,403,000
Pre-tax Profit (Loss) £11,147,000 £9,591,000 £11,028,000
Net Worth £23,183,000 £15,198,000 £20,920,000
Pattonair Limited provide a maximum Experian rating of 100 out of 100 representing a Very Low Risk of business failure.
GBP ‘000 31/12/2018 31/12/2017 27/12/2016
Turnover £112,871,000 £78,604,000 £97,585,000
Pre-tax Profit (Loss) £9,860,000 £6,784,000 £7,983,000
Net Worth £51,446,000 £43,620,000 £38,138,000 PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
OCCUPATIONAL MARKET
Derby and the East Midlands industrial and logistics market continues to thrive despite the recent global pandemic. Derby’s association with a highly skilled workforce and highly accessible location means the city contains some of the highest salaries outside London and the South East
The East Midlands and M1 Corridor is considered one of the prime logistics locations in the country, accounting for almost half of all take-up over the last 2 years, with new logistics supply expected to remain tight continuing to drive prime rents.
A schedule of comparable letting transactions is outlined below
Date Property Size (sq ft) Tenant Rent (£psf) Term (break)
Jun-20 Unit 5, 50,643 The Company £6.50 15 yrs Sunningdale Road, Shop Leicester
Jun-20 Merlin 70, 71,903 Hawkins £6.75 10 yrs Wellington Trilogy, Logistics Fradley Park, Lichfield
May-20 T49, 49,825 Euro Pool £7.00 10 yrs St Modwen Park, System (5) Tamworth
Jan-20 Unit 1A, 33,269 PSA £6.50 10 yrs Derby Commercial Park, (Peugeot) (5) Derby
Sep-19 Unit 3, 63,560 C2u Inc £6.75 10 yrs Mountpark Bardon, Bardon, Leicestershire PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
INVESTMENT MARKET
The UK Industrial market continues to be favoured by investors with particular attention to opportunities in the Midlands. The continued demand and activity throughout the recent lockdown is testament to the Midlands industrial and logistics sector being considered one of the most robust.
Below are some recent transactions in the industrial sector:
Date Property Size (sq ft) Tenant AWULT Price NIY Cap Val (to break) (£ per sq ft)
June 2020 Vespa Point, Prologis Park, Coventry 60,247 Network Rail 5.00 £7,975,000 5.25% £132
Dec 2019 Accrofab, 11 Stoney Cross Business Park, Derby 33,662 Accrofab Ltd 20.00 £3,400,000 5.52% £101
Dec 2019 Ceva Logistics, Danny Morson Way, Tamworth 55,400 Ceva Logistics 5.00 £6,900,000 5.05% £125
Jan 2019 Barberry 65, 100 Grosvenor Street, Birmingham 65,710 Mayflex 10.00 £9,040,000 4.67% £138 PATTONAIR | ASCOT BUSINESS PARK 50 Longbridge Lane, Derby, DE24 8UJ
EPC PROPOSAL FURTHER INFORMATION
The property has a current EPC rating of D93. A copy We are instructed to seek offers in excess of For further information please contact: of the EPC is available upon request. £7,030,000 (Seven Million and Thirty Thousand Pounds) subject to contract and exclusive of VAT. Oliver Forster Tom Nock T: 0121 616 5559 T: 0121 616 5261 Assuming purchaser’s costs of 7.65% a purchase M: 07896 072701 M: 07375 321631 VAT at this level will reflect: [email protected] [email protected] • Net Initial Yield of 5.75% VAT will be payable on the purchase price due to the sale not treatable as a Transfer Of A Going • £93 per sq ft CBRE Limited Concern (TOGC) 55 Temple Row Birmingham B2 5LS
IMPORTANT NOTICE CBRE and their clients give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and CBRE have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. August 2020. Satellite image courtesy of google. Designed and produced by Creativeworld Tel: 01282 858200.