Ketley Business Park Waterloo Road, Telford, Tf1 5Jd

KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD

MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

INVESTMENT CONSIDERATIONS M54 ■■ A multi-let industrial investment opportunity ■■ Well situated in a strong industrial location of Telford with excellent transport links in close proximity. ■ ■ Freehold J6 ■■ The property comprises 10,046.1 sq m (108,135 sq ft) of business space accommodation arranged over 50 units KETLEY BUSINESS PARK and one office block. The estate also provides large service yards and significant car parking provision. ■■ The property occupies a significantly large site area of approximately 11.73 acres (4.75 ha) with a site coverage of approximately 20% ■■ Let to 37 tenants producing a passing rent of £592,863 per annum (average £5.62 psf on the let areas) ■■ WAULT of 7.77 years to expiry and 7.40 years to break ■■ Various asset management opportunities providing excellent value add potential ■■ Currently 98% occupied with approximately 2,582 sq ft of vacant accommodation ■■ Approximately 30% of the income secured to M.K.M Builders Building Supplies Limited for a further 19.75 years. The income is reviewed 5 yearly in line with RPI (1%-3%) ■■ Offers are sought in excess of B5061 £6,750,000 (Six Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.24% and a low capital value of only £62 psf, after allowing for purchaser’s costs of 6.64%.

Site outline for identification purposes only. KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

M6 Stoke-on Trent M1 Newcastle-under Lyme

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U Shrewsbury W R A C T A50

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M54 5 TELFORD A M6 J6 KETLEY BANK M54 J6 A444

SNEDHILL A5 Leicester

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A458 Wolverhampton Walsall

Q Sutton M69 U E A454 M42 A5 E N Coldﬁeld OVERDALE S W A A49 Y

( A M6 4 M5 Nuneaton M1 4 2 A449 ) Dudley M69

L A W A458 Birmingham Birmingham L E Y International M6 D A456 R Airport IV

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A Coventry D A441 Kidderminster A452 Rugby THE ROCK Coventry Airport TELFORD M45 Q A456 U E EN SW M40 TELFORD AY (A 44 SHOPPING 2) CENTRE Leamington LAWLEY VILLAGE Spa

LOCATION SITUATION Telford is a large ‘new town’ located approximately 30 miles North West of Telford Central railway station is situated approximately 2.5 miles south The property is situated approximately 2.5 miles north west of Telford town centre on Birmingham and 13 miles east of Shrewsbury, in the county of Shropshire. east of the subject property, and provides regular services to the midlands, Waterloo Road which connects to the B0561 approximately 100m to the north which The town benefits from being situated close to the western edge of the West the north of England and Wales. The station provides regular services to then provides access to the M54 (J6) approximately 0.5 miles to the south west. Midlands golden triangle and as such benefits from excellent road communications Shrewsbury, Birmingham New Street and London Euston with a quickest The surrounding area to the north and west mainly consists of other industrial with the M54 (J5) running straight through the town. The M54 provides access to the journey time of 20 minutes, 36 minutes and 2 hours 6 minutes respectively. / commercial uses whereas to the east and immediately to the south there are M6 and M6 toll motorways approximately 20 miles to the east providing access to Birmingham International Airport is situated approximately 40 miles to the south significant residential estates. the national motorway network. The A442 provides access to the north and south east and is considered the 7th busiest airport in the UK serving approximately 12.9 of the town, and the A5 provides access to Shrewsbury and north Wales to the west. million passengers in 2017.The airport provides domestic and international flights. KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

DESCRIPTION The property comprises an industrial estate totalling 108,135 sq ft (10,046.1 sq m) providing various terraces of industrial / warehouse units of steel frame construction. The units provide a basic specification with tenants providing their own fit out. The property also provides a two storey office block situated adjacent to the estate entrance, providing a basic specification. There is also a recently constructed MKM industrial unit providing a builders merchant store and a storage yard for their materials. There are significant service yards and a large provision of car parking provided on the estate.

SITE AREA The property occupies a large site area of 11.73 acres (4.75ha) with a site coverage of approximately 20%. FS

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Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:2008 KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

TENANCY WAULT The property is let in accordance with the tenancy schedule set out below: WAULT of 7.77 years to expiry and 7.40 years to break.

Unit No.(s) Tenant Sq M Sq Ft Rent Passing £p.a. Rent £psf Lease Start Lease Expiry Review Date 54 Act Exclusion Notes 1 Chris Bailey 185.8 2,000 £8,000 £4.00 01/06/18 31/5/2023 01/06/21 Yes Stepped rent rising to £10,500 after 18 months. TBO: 01/06/21 2 Gee Trading 88.7 955 £4,775 £5.00 20/05/17 19/05/20 Yes Photographic schedule of condition attached to the lease. 3-5 Ability Telford Ltd 339.1 3,650 £18,500 £5.07 17/07/14 16/07/19 Yes Stepped rent rising to £19,000 on 16/08/18. Photographic schedule of condition attached to the lease. 6a/6d Vacant 112.4 1,210 6b BTS Group 72.7 782 £6,250 £7.99 06/11/15 31/12/19 Yes Photographic schedule of condition attached to the lease. 6c Vacant 34.6 372 7 Shropshire Bathrooms 180.2 1,940 £9,215 £4.75 19/06/12 18/06/18 Yes 8 A W Motor Services 180.7 1,945 £9,725 £5.00 01/05/18 30/04/21 Photographic schedule of condition from previous lease 9 ALS Fabrications 87.3 940 £4,850 £5.16 12/10/15 11/10/18 Yes Photographic schedule of condition attached to the lease 10 Graham Groves 89.2 960 £4,800 £5.00 01/12/16 30/12/19 Yes 11 Priorslee Trading Company 88.3 950 £4,750 £5.00 18/09/17 17/09/20 Yes Photographic schedule of condition attached to the lease 12 Dream Finish 181.6 1,955 £9,775 £5.00 03/07/18 02/07/21 Yes Photographic schedule of condition attached to the lease 13 Caltec Environmental 185.8 2,000 £12,500 £6.25 19/02/18 18/02/24 19/02/21 Yes Photographic schedule of condition attached to the lease 14 AP Automotive 88.9 957 £5,742 £6.00 01/05/18 30/04/21 Yes 15/16 Daylite Windows 167.8 1,806 £9,030 £5.00 03/09/13 02/09/18 17 Xscape Now Ltd 90.7 976 £6,000 £6.15 22/12/17 31/01/21 Yes Photographic schedule of condition attached to the lease 18/19 Xscape Now Ltd 183.3 1,973 £9,000 £4.56 04/11/16 31/01/21 Yes Photographic schedule of condition attached to the lease 20 Gavin Smith (Combat Athlete) 181.5 1,954 £8,535 £4.37 05/04/16 04/04/19 Yes Photographic schedule of condition attached to the lease 21/22 Telford Motors 275.3 2,963 £12,889 £4.35 23/07/16 22/07/19 Yes Photographic schedule of condition attached to the lease 23/24/25 Select Joinery (Telford) Ltd 271.1 2,918 £14,590 £5.00 21/03/18 20/03/23 21/03/21 Yes 26 Vacant 92.9 1,000 27 Lye Vale Bacon / True Bites 89.1 959 £4,795 £5.00 17/07/17 16/07/20 Yes 28 MD Cars Telford Ltd 181.7 1,956 £10,000 £5.11 18/05/18 17/05/21 Yes 33 NLH Express Deliveries Ltd 251.0 2,702 £11,500 £4.26 29/11/13 28/11/18 Yes 3 month rolling break clause. Photographic schedule of condition attached to the lease 34 Traffix Ltd 249.4 2,685 £12,082 £4.50 02/03/17 01/03/20 Yes Photographic schedule of condition attached to the lease 35 A Star Transport 240.0 2,583 £13,350 £5.17 19/08/16 18/08/19 Yes 36 Diamond Cars 377.6 4,064 £19,710 £4.85 11/12/15 10/12/20 11/12/18 Yes TBO: 11/12/19 (3 month notice). Photographic schedule of condition attached to the lease. 37/38 Jaetec Ltd t/a Skratch AV 627.1 6,750 £30,000 £4.44 13/10/16 12/10/26 13/10/21 Yes TBO: 13/10/21 & 13/10/23 39 UK Ecig Vendor Ltd 217.1 2,337 £11,865 £5.08 04/05/17 03/05/20 Yes 40 Service Tech Ltd 111.5 1,200 £6,000 £5.00 01/11/16 31/10/21 01/11/19 Yes TBO: 01/11/19 41 Fluoro-Tech 108.0 1,162 £5,810 £5.00 05/02/16 04/02/19 Yes 42 Cheer Force Ltd 264.8 2,850 £12,100 £4.25 04/05/16 03/05/19 Yes Photographic schedule of condition attached to the lease. 43 Caswell, Davies & Parton 264.8 2,850 £14,250 £5.00 14/01/15 13/01/20 44 Venture Building Plastics 411.6 4,430 £16,500 £3.72 15/08/13 14/08/18 45N S Porton & A Nicholas 202.0 2,174 £9,240 £4.25 29/09/15 28/09/18 Yes 45S/46/50 Poseidon Pharmaceutical UK Ltd 710.7 7,650 £34,425 £4.50 01/07/18 30/06/23 Yes TBO: 01/07/21. Photographic schedule of condition attached to the lease. 47 Smash Room 92.9 1,000 £6,000 £6.00 30/06/17 29/06/20 Photographic schedule of condition attached to the lease. 48 Martin Watton 92.9 1,000 £4,750 £4.75 05/04/16 04/04/22 05/04/19 Yes TBO: 05/04/19 49 Bereton Electronics Ltd 92.9 1,000 £6,000 £6.00 30/09/17 29/09/20 Yes TBO: 29/03/19 Waterloo House Procureled Ltd 511.0 5,500 £26,000 £4.73 14/07/14 13/07/20 Yes Stepped rent rising to £27,800 on 14/09/18. Schedule of condition attached to the lease. Workshop MKM Builders Merchants 1393.5 15,000 £150,000 £10.00 30/03/18 29/03/38 5 yearly, RPI (1%-3%) Half Rent of £75,000 for the first 2 years to be topped up by the vendor Yard 1a MKM Builders Merchants 378.8 4,077 £29,560 £7.25 30/03/18 29/03/38 5 yearly, RPI (1%-3%) Half Rent of £14,780 for the first 2 years to be topped up by the vendor Totals 10046.1 108,135 £592,863 £5.62 *Floor areas provided by the vendor. KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

TENURE ASSET MANAGEMENT OPPORTUNITIES Freehold.

LET VACANT REFURBISHMENT RE-GEAR INCREASE MASSING LONG TERM UNITS OF THE UNITS TO CURRENT LEASES ON THE SITE REDEVELOPMENT INCREASE RENTS OPPORTUNITY KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD MULTI-LET INDUSTRIAL ESTATE INVESTMENT OPPORTUNITY

TELFORD INDUSTRIAL MARKET RECENT COMPARABLE INVESTMENT TRANSACTIONS Telford is well located and is easily accessible with the M54 and the M6 providing easy access to the area. The connectivity of the local area improved considerably following Property Date Size sq ft Price NIY Comments the completion of the M6 toll road.

Telford has a particularly diverse employment base with the traditional heavy industry Greenwood Industrial Estate Q2 2018 44,611 £2.95m 6.70% Multi-let estate comprising 30 units and engineering, and also a concentration of firms in high-tech, plastics and automotive sectors. Major manufacturers / occupiers in the area include MOD, Epson, Ricoh UK, BAE Finepoint, Kidderminster Q4 2017 76,908 £5.843m 6.90% Multi-let estate comprising 8 units let to 6 tenants Systems, Makita and Heinz. Watery Lane Industrial Estate, Willenhall Q4 2017 145,556 £7.3m 7.02% Multi-let estate comprising 37 units let to 13 tenants Industrial availability in Telford currently stands at approximately 3.5% which coupled with reasonable demand for smaller more traditional units, as at the subject property, and a Coleshill Industrial Park, Birmingham Q2 2017 68,381 £5.45m 6.30% Multi-let estate comprising 9 units lets to 7 tenants limited amount of space under construction, should encourage rental growth in the future. KETLEY BUSINESS PARK WATERLOO ROAD, TELFORD, TF1 5JD

SERVICE CHARGE The budgeted service charge for the current year is £53,500 p.a. which reflects £0.49psf for the units. Further information is available on the dataroom.

VAT The property has been elected for VAT. We envisage that the transaction will be treated as a Transfer Of a Going Concern (TOGC).

EPC EPCs will be provided on the dataroom.

DATA ROOM For access to the Allsop Data Room, please use the following link: https://datarooms.allsop.co.uk/register/KBP

PROPOSAL Offers are sought in excess of £6,750,000 (Six Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of8.24% and a low capital value of only £62 psf, after allowing for purchaser’s costs of 6.64%.

For further information or to make arrangements for viewing please contact:

Alex Butler Richard Lea Scott Tyler 020 7543 6722 020 7543 6832 020 7543 6719 [email protected] [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 07.18