REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

024 7663 6888 avisonyoung.co.uk A.F. BLAKEMORE AND SON LIMITED UNITS 8, 9 & 10, BLOXWICH LANE, , WS2 7JU UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY

Walsall is an established industrial location at the heart of the Midlands with Single let to A.F. Blakemore and Son Limited on a low passing rent of £250,000 per excellent motorway connections providing direct access onto Junction 10 of the M6 annum which reflects a rent of £3.25 per sq ft with an unexpired term of 2.0 years linking up to the M6 Toll For the year ending 2016 A.F. Blakemore and Son Limited reported a turnover of Prominently positioned on Bloxwich Lane, which connects to the A454 dual carriage £1.31 billion and a net worth of £63.26 million to the south, linking Walsall to The Tenant has been in occupation for over 30 years operating the unit as a wholesale Within close proximity of a number of major industrial estates including Maple Leaf warehouse of food, beverages and tobacco Industrial Estate and Bentley Lane Industrial Estate Highly reversionary to an estimated £288,198 per annum, equating to £3.75 per sq ft. Three units comprising steel portal framed bays of brick wall construction with profile sheet cladding roofing. The property benefits from a canopy entrance, 67 Freehold space surface car park and a separate secure HGV parking/loading area Various asset management opportunities which include a potential re gear, re let or The property extends to a gross internal area of 76,853 sq ft redevelopment

Site area of approximately 2.69 acres We are instructed to seek offers in excess of £2,700,000 (Two Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 8.7% after allowing for purchasers costs of 6.4% and a reversionary yield of 10%. A purchase at this level would show a low capital value of £35 per sq ft. Burton UNITS 8, 9Staf &fo 10rd upon Trent BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY A518 A513 A515

Rugeley A34 A38 A444 LOCATION M6 A460 A51 The property is located approximately 2 miles north west of Walsall, in the heart of the Midlands. Bloxwich Lane is a well established industrial area, home to several incumbent industrial and distribution occupiers. Major occupiers in the vicinity include, Glass, Wienerberger and Interserve. The area provides good A449 M6 Toll access to the A454 Wolverhampton Road which in turn links directly into Walsall. M54 A34 A5 Tamworth A41 M42 Walsall is served by an excellent motorway network, with Bloxwich Lane only ½ mile UNITS 8, 9 & 10 from Junction 10 of the . The M6 connects to the M5 and M6 toll, linking BLOXWICH LANE, WALSALL, WS2 7JU to the M42, M40 and the wide National Motorway Network. Wolverhampton A452 A5 Walsall M6 Toll A454 Sutton Walsall benefits from the London train service from Walsall town centre, Coldfield offering a direct regular service from New Street station with an

A4123 A41 A38 approximate journey time of 23 minutes.

A34 Birmingham International Airport lies 19 miles south east of Walsall, enhancing the M6 Towns connectivity appeal.

A458 Birmingham

A45 M5 A45 SITUATION A449 Warehouse A41

The property fronts Bloxwich Lane close to its junction with the A454 dual Garage 460 carriageway. The site is strategically positioned within The Bloxwich Lane Estate, WB a multi-tenanted industrial and trade-counter business park. The property is situated within a prominent residential and business area with a number of Towing Path mixed-used estates in the locality, including Maple Leaf Industrial Estate and Bentley Lane Industrial Estate.

Wolverhampton Road Wolverhampton There are planned major road improvement works to Junction 10 of the M6 which Drain

Anson Branch in turn will greatly benefit the sites long-term connectivity appeal given its close proximity. The scheme is set to commence in 2018 with practical completion forecasted for 2020. Warehouse

Location Distance (miles) Location Distance (miles) M6 Junction 10 1.5 9.5

Anson Bridge Walsall Town Centre 2.0 M6 Toll 12 Wolverhampton 6.2 Birmingham City Centre 13 UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

DESCRIPTION

The property consists of three units each of steel frame construction, which have been converted by the tenant into one space to benefit the tenants business operation. The units have brick walls with profile sheet cladding roofing. The accommodation is predominantly spread across the ground floor with the benefit of a mezzanine floor to the front of the property consisting of partitioned offices. A customer surface car park is situated at the southern part of the property with a HGV parking/loading area to the north of the property accessed through The Bloxwich Lane Estate. The unit benefits from 2 HGV loading bays, located to the front and rear of the property, accessed via manual roller shutters. The rear loading bay is also governed by a “portercabin” style gatehouse.

The Tenant has made a number of alterations dated back to their early years of occupation, which are documented under three licences. Further features of the unit specification consists of the following:

Internal syphonic drainage Fluorescent High Bay Warehouse lighting Parametric blower heating/cooling system

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides an approximate gross internal floor area of 76,853 sq ft, with a minimum eaves height of 6 metres. The site extends to a total area of approximately 2.69 acres giving a site cover of 65%.

The property provides the following approximate gross internal floor area:

Use Sq m Sq ft Ground Floor Offices 137 1,476 Warehouse 6,754.51 72,705 Mezzanine 248.23 2,672 GROUND FLOOR Total 7,139.74 76,853 UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

TENURE

Freehold

TENANCY DETAILS

The property is let on full repairing and insuring terms under two coterminous leases inside the 1954 Act to A.F. Blakemore and Son Limited to expire on the 30th April 2019. The tenant has been in occupation for over 30 years. The total passing rent is £250,000 per annum which equates to a low rent of £3.25 per sq ft.

A copy of the leases and licences are available upon request.

TENANCY COVENANT

A.F. Blakemore and Son Limited are a non-specialised wholesale of food, beverages and tobacco group, engaged in wholesale and retail distribution of grocery products. The company employs more than 8,100 people with a turnover of £1.31 billion. Aside from the wholesale business, A.F. Blakemore & Son Ltd is the largest division of SPAR UK convenience grocery stores, owning 300 SPAR stores and serving more than 1,000 in total across and Wales. The Bloxwich Lane unit covers the full geographic region of the Greater West-Midlands, to include Walsall, Wolverhampton, Birmingham and beyond.

The most recent audited accounts are summarised below:

Year Turnover (000’s) Pre-tax profit (000’s) Net worth (000’s) 2016 1,306,165 7,603 63,260 2015 1,275,954 9,011 62,838 2014 1,191,658 7,603 60,495

The company holds a 5 A1 Dun & Bradstreet (D&B) rating which represents a minimum risk of business failure. UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

ERV & COMPARABLE EVIDENCE

We consider the units to be reversionary to £3.75 per sq ft based upon the following evidence:

Address Tenant Size (sq ft) Term Rent (psf) Date

Unit 12/13 Maple Leaf Industrial Estate Dutchpro UK Ltd 8,875 10 years (5 year break) £4.00 Nov-16

Unit 16 Maple Leaf Industrial Estate Greetings 5,255 5 years £4.44 Oct-16

Unit 4, Meteor Park, Meteor Way, Birmingham Toyota Tsusho Assembly Systems (UK) Ltd 58,609 7 month assignment £5.04 Jun-16

Former EDS Couriers Building, Delta Way, Bridgtown, Cannock Gentili UK Ltd 22,272 10 years (5 year break) £3.65 Jun-16

Unit 1, Tyburn Road, Birmingham SK Food and Drinks 27,038 5 years £5.00 May-16

Unit 16, Watling Street, Cannock Professional Freight Solutions Ltd 48,632 3 years £3.00 Feb-16

INVESTMENT EVIDENCE

Relevant investment transactions are set out below:

Address Tenant Rent Unexpired Term Price NIY Date

Brickyard Road, Muller £4.75 1.5 years Q.3.025m 7.76% Available

Well Lane, Air Space £6.40 8 years £4m 7.27% Jan-17

2300 Business Park, Dolomite Business Park Canute UK Ltd £5.99 4 years £5.25m 7.27% Dec-16

Centrum 100 Burton Upon Kings Road Tyres and Repairs Ltd £5.50 4 years £7.06m 6.77% Oct-16

Unit 302 Relay Park, Relay Drive, Tamworth Schenker Ltd £5.07 1 years £4.65m 5.65% Jun-16

Brockhurst Crescent Tata Steel UK and Micheldever Tyre £2.83 6 years £3.85m 9.90% Dec-15 UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY UNITS 8, 9 & 10 BLOXWICH LANE, WALSALL, WS2 7JU REVERSIONARY WAREHOUSE INVESTMENT OPPORTUNITY

EPC

D - 90. A copy of the EPC is available upon request.

VAT

The property is elected for VAT, it is therefore anticipated that the transaction will be treated as a transfer of going concern (TOGC).

PROPOSAL

We are instructed to seek offers in excess of £2,700,000 (Two Million, Seven Hundred Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 8.7% after allowing for purchasers costs of 6.4% and a reversionary yield of 10%. A purchase at this level would show a low capital value of £35 per sq ft.

CONTACTS

Tom Bridgman Liam Taylor David Tew 020 7046 6519 020 7046 6516 024 7663 6888 [email protected] [email protected] [email protected]

024Important Notice7663 6888 1. No descriptionavisonyoung.co.u or information givenk about the property or its value, whether written or verbal or whether or not in these particulars (“information”) may be relied upon as a statement of representation or fact. Avison Young do not have any authority to make any representation and accordingly any information given is entirely without responsibility on the part of Avison Young or the seller/lessor. 2. Any photographs (and artist impressions) show only certain parts of the property at the time they were taken. Any areas, measurements or distances given are approximate only. 3. Any reference to alterations to, or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. These matters must be verified by any intending buyer/lessee. 4. Any buyer/lessee must satisfy himself by inspection or otherwise as to the correctness of any information give. April 2017.

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