Nelson Industrial Estate Units 1A, 1B, 1D & 2A Nelson Street Cleveland, TS6
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> Nelson Industrial Estate Units 1A, 1B, 1D & 2A 0191 261 2361 Nelson Street avisonyoung.co.uk/14851 Cleveland, TS6 6BJ TEESPORT ASDA ASDA GARAGE Well located multi-let industrial estate with good tenant line-up Industrial Portfolio / Middlesbrough EXECUTIVE SUMMARY > Established industrial location with excellent access to the regional road network. > 100% occupancy. > 75% of the income secured against the strong covenant SK Chilled Foods. > SK Chilled Foods also occupy the neighbouring property and have configured their yard to allow excellent direct access to Unit 2A, which they also occupy. > Extending to a total area of 37,658 sq ft (3,498.5 sq m). > Passing rent of £70,036 per annum reflecting a low average of £2.90 psf. > ERV of £78,526.50 (£3.25 psf). > WAULT of 4.17 years to expiry and 1.53 years to break. > Seeking offers of£830,000 (Eight Hundred and Thirty Thousand Pounds) (CV £34.35 psf) reflecting a Net Initial Yield of8.00% and a Reversionary Yield of 8.96% after purchasers costs of 5.53%. 02 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough A1046 A178 Port Nelson Clarence Industrial Estate A66 A66 South Cargo Fleet Bank Grangetown B6541 A1085 A1053 Inverness North Ormesby B1272 Aberdeen A172 Teesville Dundee Perth Edinburgh Pallister Glasgow Eston Linthorpe Middlesbrough Newcastle Carlisle Marton Grove Belfast MIDDLESBROUGH Berwick Hills Normanby York A171 B1380 Dublin Liverpool Manchester Shrewsbury Norwich Ormesby Birmingham Cardi London Swansea Easterside Southampton Plymouth Penzance LOCATION Middlesbrough is the economic and administrative centre for the Teesside Middlesbrough benefits from good road and rail communications with the A66 conurbation and is situated 10 miles east of Darlington, 60 miles north east of linking to the region’s principal north/south arterial routes, the A19 and the A1 (M). Leeds and 40 miles south of Newcastle. Middlesbrough is connected to the rest of UK by rail via Darlington or York on the East Coast Main Line with journey times to London of 2 hours and 50 minutes. The town benefits from good air links with, Teesside Airport situated approximately 10 miles to the south west of the centre, providing both domestic and international flights. 03 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough 04 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough SITUATION South Bank Railway Station Nelson Industrial Estate is a well located estate with excellent access to the regional road networks allowing for good links to Middlesbrough town centre and the wider Teesside region. Nelson Industrial The property also benefits from being situated Estate to the south of South Bank train station and 4.5 miles to the south west of Teesport. Teesport B1513 A66 handles over 5,000 vessels each year and around 40 million tonnes of cargo. Surrounding occupiers include; ASDA, Baketime and a £25 million waste-to-energy plant. A66 South Bank SK Chilled Foods also occupy the adjacent industrial unit. Their yard has been arranged so that it is shared with Unit 2A and therefore allows for direct access between the units and highlights SK Chilled Food’s commitment to the area. 05 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough 11 10 9 8 6 5 4 7 1 3 2 1 SK Chilled Foods Ltd 2 ASDA 3 Baketime Middlesbrough 4 Teesside LGV Training 5 Motor Sports Park 6 Ward Bros 7 A66 8 Van Leeuwen 9 Skippers Lane Industrial Estate 10 Argos 11 B&Q 06 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough DESCRIPTION The property comprises eight industrial units across two terraces of steel portal frame construction with part brickwork and part profile cladding. Four of the units, have been sold off previously and are not included in the sale. Each unit benefits from roller shutter door access and eaves height of circa 4.3 meters. Unit 2A has been extensively refurbished to provide a high specification chilled food preparation unit. Unit 2A’s yard area to the west has been arranged so that it is directly shared with SK Chilled Food’s neighbouring property. The estate is secured by steel palisade fencing and each unit benefits from parking to the front elevation. SITE AREA The site extends to 1.06 Ha (2.62 Acres). The units highlighted in red have been sold off Freehold. The units highlighted in blue have been sold off on a long leasehold basis. 07 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough ACCOMMODATION UNIT AREA (SQ FT) AREA (SQ M) 1A 5,762 535.3 1B 5,614 521.6 1D 5,762 535.3 2A 7,024 652.5 2B/2C 13,496 1,253.8 TOTAL 37,658 3,498.5 08 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough 09 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough TENURE TENANCY Freehold. The property is let on effective FRI terms subject to a Service Charge as detailed in the schedule below:- AREA LEASE LEASE UNIT TENANT BREAK RENT (PA) RENT (PSF) ERV (PA) ERV (PSF) COMMENTS (SQ FT) START EXPIRY 1A SK Chilled Foods Ltd 5,762 01/07/2014 30/06/2019 £17,286 £3.00 £18,726.00 £3.25 Renewal discussions ongoing. 1B SK Chilled Foods Ltd 5,614 03/02/2018 30/06/2019 £18,250 £3.25 £18,245.50 £3.25 Renewal discussions ongoing. 1D Trio Foodservices Ltd 5,762 07/04/2014 06/04/2024 £16,000 £2.78 £18,245.50 £3.25 2A SK Chilled Foods Ltd 7,024 01/07/2014 30/06/2029 £18,500 £2.63 £22,828.00 £3.25 2B/ 2C Investacc Pension Trustees 13,496 30/03/2012 29/03/2137 Peppercorn TOTAL 37,658 £70,036 £78,526.50 WAULT of 4.17 years to expiry. 10 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough SERVICE CHARGE MARKET COMMENTARY The estate is subject to a service charge to cover the repair, maintenance and The multi-let industrial arena in the North East continues to see strong investor management of the estate. The service charge is currently running at £0.44 psf. demand. This has been mainly driven and supported by a limited supply of stock. Full details are available on request. Well located and high occupancy estates have therefore continued to experience strong levels of demand and rental growth over the past couple of years. TENANT COVENANT SK Chilled Foods – Are one of the leading manufacturers of chilled, frozen and ready-made meals in the UK. Over the past 25 years they have continued to grow and have three high specification factory sites in the Teesside area, with a team of 600 people. They have a CreditSafe rating of 62- low risk. 75% of the income is from this tenant of good covenant strength. PRE-TAX SHAREHOLDER’S CREDITSAFE YEAR END TURNOVER PROFITS FUNDS RATING 30/09/2017 £58,587,000 £1,008,000 £9,855,000 30/09/2016 £58,818,000 £1,434,000 -£4,501,000 Low Risk 30/09/2015 £54,736,000 £1,289,000 -£5,675,000 Trio Food Services – Are a professional food service company supplying chilled, frozen and ambient products. The management team has over sixty years of experience within the industry. 11 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough 12 Nelson Industrial Estate, Units 1A, 1B, 1D & 2A, Nelson Street, Cleveland, TS6 6BJ Industrial Portfolio / Middlesbrough VAT EPC’s Contact & Further Information The property is elected for VAT Available on request. Lynsey Underwood Oliver Rowe and is envisaged the sale will [email protected] [email protected] be treated as a transfer of a 0191 269 0093 0161 819 8212 going concern. James Sim Kipp Harden PROPOSAL [email protected] [email protected] 0191 269 0062 0161 507 4714 We have been instructed to seek offers in excess of £830,000 Simon Beanland (Eight Hundred and Thirty Thousand Pounds) for the freehold [email protected] interest, subject to contract and exclusive of VAT. A purchase at 0191 269 0512 this level reflects a net initial yield of 8.00% and a capital value of £34.35 per sq ft with a reversionary yield of 8.96%, after 0191 261 2361 avisonyoung.co.uk/14851 purchasers’ costs of 5.53%. GVA hereby gives notice that the information provided (either for itself, for any joint agents or for the vendors lessors of this property whose agent GVA is in this brochure is provided on the following conditions: (1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. (2) All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. (3) No person in the employment of GVA, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure.