ASTRA ENGINEERING PRODUCTS LTD

ASTRA ENGINEERING PRODUCTS LTD QUEENS ROAD, ADVANCED MANUFACTURING HUB, , B6 7NH

LONG LET URBAN INDUSTRIAL OPPORTUNITY

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

INVESTMENT SUMMARY

Long income single-let industrial facility. Fully let to Astra Engineering Products Limited, We are instructed to seek offers in excess of which has been in occupation since the 1980s. £3,500,000 (three million, five hundred thousand Prime ‘Golden Triangle’ location approximately 0.5 pounds), subject to contract and exclusive of VAT miles south-west of Junction 6 of the M6 Motorway Recently extended lease (no breaks) expiring reflecting a low capital value of £64 psf which is and 2.5 miles north of Birmingham City Centre. September 2039 (19 years unexpired). underpinned by vacant possession sales nearby. Situated within Birmingham’s Advanced A low passing rent of £227,500 p.a. from a fixed A purchase at this level reflects a Net Initial Yield Manufacturing Hub (“AMH”) – a joint initiative rent review in September 2020, reflecting £4.16 of 6.10%, based on the passing rent of £227,500 between Birmingham City Council and Homes psf. p.a. and assuming normal purchaser’s costs of aimed at promoting the manufacturing The property is predominantly held freehold (1.84 6.50%. sector. acres), incorporating all built accommodation, AMH occupiers include Rolls Royce, Guhring, Salts with a proportion of the ancillary yard (0.72 acres Healthcare, Hydraforce and Mayflex. equating to 28% of the site) beneath the A38(M) held long leasehold from Birmingham City Council Total floor area of 54,682 sq ft (5,080 sq m) at a peppercorn rent. including 4,969 sq ft (461 sq m) of accommodation across a gatehouse, canopy and mezzanine, set on a 2.6 acre site with 48% coverage.

LONG LET INDUSTRIAL OPPORTUNITY LEEDS ASTRA ENGINEERING PRODUCTS LTD M62 HULL

MANCHESTER

LIVERPOOL SHEFFIELD

M6 CREWE M1 NOTTINGHAM LOCATION STAFFORD M6 M42 TOLL LEICESTER

BIRMINGHAM The Advanced Manufacturing Hub is M6 situated to the north-east of Birmingham CAMBRIDGE M5 city centre and immediately adjacent to M1 Junction 6 of the M6, with direct links to A1 FELIXSTOWE M40 M11 the A34, A38(M) and A5127.

SWANSEA OXFORD M25 Birmingham is the UK’s second city with a GDP of £121 billion, the UK’s largest regional economy M4 LONDON outside of London and the 10th largest city economy CARDIFF M2 BRISTOL in Europe. The city has one of the largest regional M3 M25 DOVER labour pools in the UK with an available workforce of M20 4.3 million people within an hour’s drive of the city centre. SOUTHAMPTON Birmingham is an important manufacturing and PORTSMOUTH engineering centre, employing over 100,000 people in the industry. Manufacturing in the West Midlands region has been re-energised by significant investment within the automotive industry by companies including JLR, BMW, The London Taxi Company and Rolls Royce - many of whom have direct links with the AMH.

BY ROAD BY RAIL Station lies a 7-minute walk DISTANCE TIME away (0.3 miles) with direct links Birmingham City Centre 2.5 miles 10 mins to Birmingham New Street Station Solihull 10 miles 25 mins in 6 minutes. Birmingham Int. Airport 12 miles 18 mins Lichfield 17 miles 30 mins Redditch 18 miles 46 mins Manchester 85 miles 1 hr 49 mins London 117 miles 2 hrs 18 mins

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

SITUATION

The property occupies a prominent position on the junction of Queens Road and Road, accessible via Lichfield Road and the A38(M) EXPRESSWAY INDUSTRIAL ESTATEBIRMINGHAM | dual carriageway – the principal arterial routes connecting Junction 6 of the M6 Motorway (0.5 miles) and Birmingham City Centre (2.5 miles).

The surrounding area comprises a mixture of manufacturing facilities, many of which have recently been developed, with a number of logisitics and ‘last mile’ distribution units outside the AMH.

WITTON 6 ADVANCED MANUFACTURING HUB AMH KEY STATISTICS: M6 Birmingham’s AMH is a joint initiative between • The region has approximately 25% of the UK’s A38(M) ASTON Homes England and Birmingham City Council aimed skilled advanced engineering workforce. at growing the advanced manufacturing sector. • There are 18 universities inside a one-hour travel Birmingham already has the greatest number of firms time of Birmingham with c. 320,000 students. within the advanced manufacturing sector in the UK. Y AD A O W R D A34 S L The 20 hectare (49 acre) site is a designated regional • 23,000 engineering and technology students are S E A41 E I F R R O H C P KY C LA X N E investment zone and can facilitate individual units I within an hour of Birmingham. E L

N

O T ranging from 15,000 sq ft up to 155,000 sq ft.

S A • Approximately 30% of the UK’s automotive A4540 production and employment is within one hour of The area has seen an increasing level of development Birmingham. activity and many nearby sites have been cleared JEWELLERY DUDDESTON QUARTER ASTON UNIVERSITY to allow for new industrial developments. A private • Advanced Engineering generates c. £8 billion for developer has recently acquired plots 3 & 4 of the Greater Birmingham economy. ADDERLEY PARK the AMH for speculative development following a SNOW HILL • Greater Birmingham is home to over 4,200 competitive bidding process, with achieved land BIRMINGHAM advanced engineering firms. values in excess of £900,000 per acre. MOOR ST

A456 NEW STREET • The wider West Midlands region benefits from nearly 270,000 people employed in manufacturing. For further information please visit: FIVE WAYS BORDERSLEY A45 www.amh-birmingham.com

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD ROYAL MAIL

BIRMINGHAM CITY CENTRE MERCEDES BENZ GUHRING

PTS ATS MAYFLEX SALTS HEALTHCARE STADIUM

HOWDENS

ASTON RAILWAY STATION

SERTEC THERMOTEC

M6 JUNCTION 6 LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

THE PROPERTY

The property comprises a three-bay industrial unit and ancillary storage building with two storey offices, a gatehouse, parking to the front and yard to the rear.

The industrial unit is of steel portal frame construction with profile metal cladding beneath a pitched roof. The offices are brick built with flat roofs, located to the front of the property and are two storeys in part.

The central bay has two-storey offices to the front and two loading doors to the rear with an eaves height of 10m, while the left and right hand bays each have a loading door to the rear, 4.7m eaves and single storey offices to the front. The separate stores building is elevated slightly on the site and benefits from a separate loading door.

The property has recently undergone an external refurbishment programme including the upgrade or replacement of all cladding and new perimeter steel fencing. Full details available upon request. NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. NOTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

Ordnance Survey © Crown Copyright 2020. All Rights Reserved. Licence number 100022432 TENURE Plotted Scale - 1:1250. Paper Size - A4 ACCOMMODATION The industrial facility, office accommodation and primary yard space are wholly situated on the freehold element of the property (shaded red), while a small proportion of the property is held long leasehold from Birmingham City Council (shaded blue) which is used for open storage DESCRIPTION AREA (SQ FT) AREA (SQ M) and parking. Warehouse 39,231 3,645 The long leasehold element has been retained by the council due to the Stores Building 4,760 442 presence of the A38(M) which runs at a high level over this portion of the Offices 5,722 532 site. The interest is for a term of 99 years from April 1977 at a peppercorn and prohibits development directly beneath the dual carriageway on this SUB TOTAL 49,713 4,619 element of the title, although development on the freehold element is Rear Gatehouse 178 16 unrestricted. Mezzanine 4,048 376 Canopy 743 69 OVERALL TOTAL 54,682 5,080

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

TENANCY COVENANT

The property is let in its entirety to Astra Engineering Astra Engineering Products Limited has been operating for in excess of 30 years and is an established Products Limited. engineering firm specialising in presswork and welding projects.

The occupational lease has recently been extended to The company has developed its pressing and welding assembly lines in conjunction with the requirements provide a 19 year unbroken term expiring September of its clients. As a result it has developed a strong market position, particularly in the automotive sector. Key 2039. The passing rent is £227,500 p.a, from a fixed clients include Jaguar Land Rover, DURA, G-TEKT and UNIPRES. rental uplift in September 2020. The lease is drawn on full repairing and insuring terms and is subject to The company has experienced continued year-on-year sales growth over the last 5 years prior to lockdown. 5-yearly upward only OMRV reviews with the next The company’s latest accounts show the following financial summary: review in September 2025.

The tenant has been in occupation of the property 2018 2017 2016 for over 30 years and the recent lease extension demonstrates its long-term commitment to the Net Current Assets (Liabilities) £540,695 £314,673 £119,357 building. Tangible Net Worth £1,011,643 £893,631 £759,699

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

OCCUPATIONAL MARKET

The Midlands industrial and distribution market ADDRESS SIZE (SQ FT) DATE TENANT RENT (PSF) TERM continues to show resilience, with rents and demand improving year-on-year. This has been through Unit 14-15, Erdington Industrial 34,552 Dec-19 Leacy MG Ltd £5.25 10 years ongoing growth of the ecommerce sector, which in Park, Birmingham turn has been accelerated by the recent lockdown due to COVID-19, along with the subsequent demand Unit 10-11, Erdington Industrial 57,240 May-19 FGF Ltd £5.70 10 years from 3PLs and parcel operators that service this Park, Birmingham market. There is also further demand from other Unit 1, Hay Hall Business Park, 45,790 Mar-19 Jeavons Eurotir Ltd £6.00 10 years sectors including automotive and manufacturing Birmingham firms with the likes of JLR and Rolls Royce making large commitments to the Midlands market. This is The following are letting comparables from more modern buildings close to the subject property which predominantly driven by its strong position within the demonstrate clear room for rental growth to current headline levels: area known as the ‘Golden Triangle’, the area from which 90% of the UK’s population are within a four- ADDRESS SIZE (SQ FT) DATE TENANT RENT (PSF) TERM hour drive and is therefore the UK’s most valuable and strategic manufacturing, distribution and Birmingham 100, Walsall Road, 100,511 Jun-19 PrimaFlow Ltd (trading as F&P £6.25 10 logistics location. Birmingham Wholesale)

The vacancy level across the UK’s industrial market Barberry 65, AMH, Birmingham 82,932 Feb-19 Mayflex £6.82 10 is estimated at 6.6%, however there is a marked Apollo, AMH, 95,013 Sep-17 Salts Healthcare £6.50 15 undersupply of available space in Birmingham with Birmingham a vacancy rate of 2.9% in Q2 2020. As a result, it is anticipated that this asset class will continue to experience strong rental growth.

URBAN INDUSTRIAL LOCATION MARKED UNDERSUPPLY OF DEMAND FROM JLR & ROLLS ROYCE WITHIN THE GOLDEN TRIANGLE AVAILABLE SPACE IN BIRMINGHAM MAKING LARGE COMMITMENTS TO THE MIDLANDS MARKET

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

INVESTMENT MARKET

Given the recent market turbulence across all ADDRESS SIZE TENANT/ UNX TERM PRICE NIY CAP VAL sectors, industrial and logistics investment has (SQFT) PURCHASER CERTAIN (YRS) (PSF) still reached £1.12bn for H1 2020 and is proving a desirable asset class for investors looking to Quayside Drive, Walsall 30,292 Carrier Rental Systems 9.80 £2.35M 5.80% £78 deploy capital into a sector with a positive Unit 1-5, Cherwell Enterprise Park 53,916 H J Heinz Manufacturing UK Ltd 7.00 £4.10M 6.30% £76 occupational market. Al-Ko Kober Ltd, South 88,061 AL-KO Kober Ltd 11.30 £6.50M 6.00% £74 Warwickshire BP, Southam The sector has continued to outperform other Units A-E, 36a Vanguard Way, 43,058 Manbat 10.00 £4.53M 6.00% £105 investment markets, buoyed by a scarcity of good Shrewsbury quality investment opportunities and demand-led upward pressure on rental levels - a trend which is 80 Park Road, Aston 68,362 West Midlands Accesible Vacant £4.80M N/A £70 expected to continue for the foreseeable future, Transport Ltd especially for those properties located in key urban Sams Lane, West Bromwich 21,171 Safe Fence Ltd Vacant £1.50M N/A £71 and distribution locations. This has acted as a 16 Highlands Road, Solihull 23,384 Sure Store Vacant £1.94M N/A £81 catalyst for occupiers competing for units alongside investors. Furthermore, even after the recent Birmingham’s AMH is a proven location for investment, with a number of buildings being sold at record yields lockdown from COVID-19, non-prime assets are within the past couple of years, this includes: achieving yields well in excess of historic trends for the sector. ADDRESS SIZE TENANT UNX TERM PRICE NIY CAP VAL The following table sets out a number of relevant (SQFT) (PURCHASER) CERTAIN (YRS) (PSF) transactions concluded within the last 18 months Barberry 65, AMH 65,710 Mayflex UK 10 £8.85M 4.75% £138 in the wider Midlands area with similar attributes, Apollo, AMH 95,013 Salts Healthcare 10 £12.31M 4.70% £130 along with a number of vacant possession sales.

TOTAL INDUSTRIAL INVESTMENT SHORTAGE OF INDUSTRIAL 3-YEAR ROLLING AVERAGE VOLUMES REACHED £1.12BN IN INVESTMENT OPPORTUNITIES TO THE HIGHEST LEVEL EVER H1 2020 RECORDED AT £3.71BN

LONG LET INDUSTRIAL OPPORTUNITY ASTRA ENGINEERING PRODUCTS LTD

PROPOSAL CONTACTS

We are seeking offers in excess of £3,500,000 (Three For further information on viewings, please contact the selling Million, Five Hundred Thousand Pounds), subject to contract agents: and exclusive of VAT. Based on an annual rent of £227,500, a purchase at this level will reflect an attractivenet initial yield NICK WOOD MAX HULSE of 6.10% after purchaser’s costs of 6.50%. +44 (0) 121 200 4574 +44 (0) 121 634 8492 +44 (0) 7866 177 811 +44 (0) 787 099 9287 This reflects a low capital value of £64 per sq ft. [email protected] [email protected]

RICHARD FLETCHER BREWER CHARLIE BURT +44(0) 203 428 2945 +44(0) 203 320 8227 +44(0) 782 534 3420 +44(0) 7870 999 124 FURTHER INFORMATION [email protected] [email protected]

VAT The property is elected for VAT. It is intended that the sale will be treated as a Transfer of a Going Concern (TOGC).

Energy Performance Certificates E (114)

Important Notice

Savills, their clients and any joint agents 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 Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Marketing: 020 7499 8644

September 2020

LONG LET INDUSTRIAL OPPORTUNITY