Institutional Light Industrial / Warehouse Investment TNT Post, Stadium Gate Parkside Industrial Estate Leeds LS11 5BX
Established location
Low site cover
£3,000,000, subject to contract
Net initial yield 10.0%
Discount to vacant possession value Location Description
Leeds is the UK’s fastest growing city and is the second largest Constructed in 2000, the property comprises a warehouse unit with metropolitan district in England with a population of 798,000. Leeds two-storey offices. The property is constructed of steel portal frame enjoys good road communications with direct links to the M1, M62 and under a pitched, profiled metal sheet clad roof incorporating lights with A1 (M) motorways. profiled metal sheet cladding to walls above low-level brick and block cavity walls. The trans-Pennine M62 provides motorway access to the Humber ports in the east and Manchester and Liverpool conurbations in the west The main warehouse benefits from a minimum eaves height of 8.6 whilst the City’s location next to the M1 and A1 (M) motorways gives metres (28 feet) increasing to 13.5 metres (43 feet) at apex. There is a direct access north and south. Leeds is located approximately 56 km dispatch bay at the rear which benefits from a minimum eaves height (35 miles) north of Sheffield, 71 km (44 miles) north east of Manchester of 5 metres (16 feet). The property has five electronically operated and 312 km (194 miles) north of London. sectional doors.
Leeds is the principal city of the Yorkshire and Humber region which To the front of the main warehouse the ground floor provides a mix of has a population of around 5 million. The city is currently benefiting from office accommodation, reception area and stores/showroom areas. At substantial inward investment including the recently opened Trinity retail first floor level there are further offices with a specification including scheme and the soon to be completed Leeds Arena. suspended ceiling with recessed Cat II fluorescent lighting, carpeted solid floors and gas central heating. The East Coast Mainline offers connections to London Kings Cross in approximately 2 hours 20 minutes and Leeds. Bradford Airport is Externally the site provides a loading bay and a rear yard area. In addition located within a 30 minutes drive of the property serving 3 million there are spaces for approximately 70 vehicles. passengers every year and travelling to more than 70 destinations. The property benefits from a low site cover as a result of the freeholder having undertaken extensive resurfacing works to an additional parcel Situation of land totalling some 1 acre adjacent to the building. This new yard area was built to a specification suitable for parking and turning of heavy The subject property is situated within the Parkside Industrial Estate, goods vehicles. At the same time, the freeholder undertook works to an established industrial location, approximately 4.25 km (2.75 miles) the loading bay equipment and industrial doors totalling some £350,000. to the south of Leeds city centre and is accessed from the A563 which These works are specified in the Agreement for Lease – please see links to Junction 3 of the M621 Motorway, approximately 1.5 km (1 mile) “Specification for Concrete Yard Work”. to the north. Junction 1 of the M621 Motorway is situated approximately 4 km (2.5 miles) to the north east and is accessed via the A563 / A6110. The subject property is situated to the rear southern end of Middleton Accommodation Grove, the main spine road leading through the estate, which is accessed from Dewsbury Road. The building is sited in Beeston, which We have been advised that the property provides the following gross is a suburb of Leeds. internal floor areas;
The predominant use within the estate is industrial and other occupiers Ground Floor Loading Bay 1033.15 sq m 11,120 sq ft within close proximity include YOS Group, Futurama, Crown Worldwide, Ground Floor Main Warehouse 3404.63 sq m 36,647 sq ft JJ Food Service, Geopost and Contegeo Packaging Group. Ground Floor Offices / Stores 642.46 sq m 6,915 sq ft First Floor Offices 642.46 sq m 6,915 sq ft Total 5,722,7 sq m 61,597 sq ft Site Covenant
The site extends to approximately 1.93 hectares (4.76 acres) providing TNT Post (Doordrop Media) Limited (Co. No. 613278) has reported the a site cover in the order of 30%. following figures:
An environmental report by Argyll Environmental dated 20 October 2008 Year Ending 31st Dec 2011 31st Dec 2010 concludes “..no Liabilities have been identified. No further action is Turnover £52,815,000 £47,139,000 required.” Pre-Tax Profits £265,000 £73,000 Shareholders’ Funds £9,388,000 £9,253,000
Tenure The Company is principally engaged in the unaddressed distribution of free newspapers, marketing literature and product samples. TNT Post Freehold. (Doordrop Media) Limited is a subsidiary of CD Marketing Services Group Limited. The ultimate controlling party is Post NL N V, a company incorporated in Netherlands. Tenancy
The property is let to TNT Post (Doordrop Media) Limited (Co. No. Market Commentary 613278) for a term of 5 years from 24th February 2011, expiring 23rd February 2016 at a current passing rent of £315,762 per annum. We are aware of the following properties which have recently been sold in the area: The lease provides for the tenant to insure and repair with the exception of defects arising out of the initial construction or design of the Premises, • JJ Food Service, Middleton Grove, Leeds was sold in February or from the existence of any contamination at the Premises other than 2012. Located on the same estate as the subject property, this contamination caused by the tenant. The lease is subject to a Schedule comprises a modern distribution warehouse of steel portal frame of Condition which is available for downloading in the data room. construction with 2-storey offices totalling 3,487 sq m (37,500 sq ft). The specification includes 8 dock level doors and 1 ground As mentioned in the “Description” section, in letting to TNT the landlord level loading door, 9 metre eaves and a 33 metre yard depth. agreed to undertake substantial works to extend the hard standing area. The property is situated within a 1.81 acre site providing a site These works are detailed in the Agreement for Lease. The costs of these cover in the order of 48%. The price paid was £2,150,000, works amounted to £350,000. equating to a capital value of £57.28 per sq ft.
Attributing a reasonable rent of £25,000 per annum to the extended • Unit 2, Quantum, Stourton, Leeds was sold in March 2013. concrete yard area, the passing rent for the property would equate to Located approximately 4.8 km (3 miles) east of the subject £51.13 per sq m (£4.75 per sq ft). property, this comprises a new self-contained warehouse / manufacturing unit totalling 3,577 sq m (38,500 sq ft). The price It is worth noting that the property's previous occupier's lease ended paid was £2,200,000, equating to a capital value of £57.14 per sq 23 August 2010. The property was re-let after only six months. Please ft. refer to the Agreement for Lease dated 24 February 2011. Please see within the Data Room correspondence confirming the previous lease's • Gelderd Point, Phillipa Way, Leeds was sold in June 2012. Located expiry. approximately 4.8 km (3 miles) north west of the subject property, this comprises a modern industrial / warehouse unit with self- contained offices constructed approximately 10 years ago totalling Value Added Tax 3,523 sq m (37,927 sq ft). The price paid was £1,700,000, equating to a capital value of £44.82 sq ft. The property has been elected for VAT. Therefore VAT will be payable Network House, Parkside Industrial Estate, Leeds was sold in May 2013. on the purchase price however it is envisaged the transaction will Located directly opposite the subject property, this comprises a modern proceed as a Transfer of a Going Concern (TOGC). warehouse with two storey office accommodation totalling 5,608 sq m (60,368 sq ft). The property is let to Geopost UK Limited until 19th September 2022 at a current passing rent of £292,978 per annum (£45.96 per sq m / £4.27 per sq ft overall). The price paid was £3,155,000, equating to a net initial yield 8.78%. Proposal Contact Our client is seeking £3,000,000 (Three Million Pounds), subject to contract, Singer Vielle reflecting a net initial yield of 10.0% and a capital value of £48 per sq ft. 94-96 Wigmore Street [email protected] London W1U 3RF Tel: 020 7935 7200 [email protected] Investment Considerations Fax: 020 7486 8511 www.singerviellesales.com [email protected]
Vendors Solicitor
Walker Morris LLP Kings Court [email protected] 12 King Street Leeds LS1 2HL Tel: 0113 283 2513
Subject to Contract & Exclusive of VAT
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