PRIME NEW BUILD MULTI-LET INDUSTRIAL ESTATE Units 1 - 5, Vaughan Park, Tipton, , DY4 7UJ INVESTMENT SUMMARY

Rare opportunity to acquire a new highly specified multi-let industrial estate in the West Midlands

• The property achieved practical • Units 1 – 4 are let providing an average Proposal completion in November 2018 and rent of £6.93 per sq ft and an AWULT extends to 81,198 sq ft across 5 units, of 4.04 years to break options and 7.21 We are instructed to seek offers in excess of ranging from 8,398 – 24,155 sq ft years to lease expires. Unit 5 is vacant £9,170,000 which reflects a Net Initial Yield • Situated on Vaughan Park, and subject to a 12 months’ rental of 5.75% and a capital value of £113 per sq ft, an established industrial and guarantee assuming normal purchasers’ costs 6.69%. distribution location, within 3.5 • The total rental income is £562,502 miles of Junctions 1 and 2 of the M5 per annum motorway • 100% of the income is secured to • Highly specified units including 8m covenants providing ‘Low Risk’ or better clear internal eaves height • Freehold VAUGHAN PARK

CAB AUTOMOTIVE LTD

M5/J2 > NEXT PHASE OF DEVELOPMENT

A457 TIPTON ROAD LOCATION & SITUATION

Manchester A key strategic West Midlands location, providing excellent accessibility to the motorway network and major Stoke-on-Trent destinations of , , , Wolverhampton Tipton, Oldbury and . Leicester

BIRMINGHAM Junctions 1 and 2 of the are within 3.5 miles of the property, providing Northampton A452 excellent access to the national motorway Milton Keynes network, via the M6, M6 Toll, M42 and A34M54. M6 Vaughan Park is a 28 acre industrial & London logistics park situated on the A457 Tipton DRIVE TIMES Road. The estate sits in an established industrial area, benefiting from excellent Location Distance Drive Time accessibility and a skilled local workforce. Tipton 1.1 miles 5 minutes A449 Once fully re-developed, Vaughan Park will Dudley 1.7 miles 7 minutes provide approximately 400,000 sq ft (37,160 sq m) of high quality industrial / Oldbury 1.9 miles 6 minutes M54 warehouse accommodation to be developed 3.2 miles 8 minutes A460 in four phases. M6 3.4 miles 8 minutes The site immediately adjacent to the subject A452 Walsall 6.9 miles 23 minutes A41 A461 M6 property has recently been developed to (TOLL) provide a 71,375 sq ft high quality parcel hub Wolverhampton 6.8 miles 20 minutes for DPD. The unit will be operational from WOLVERHAMPTON A454 WALSALL February 2020. Birmingham 8.1 miles 21 minutes SUTTON 17.9 miles 35 minutes COLDFIELD WEDNESBURY

M5 M6 MOTORWAYS A41 WEST BROMWICH A457 1 Location Distance Drive Time A449 M6 A457 M5 3.5 miles 8 minutes 2 DY4 7UJ A38 (M) M6 4.9 miles 10 minutes M5 BIRMINGHAM M42 M54 10.7 miles 16 minutes M6 (Toll) 19.5 miles 26 minutes

TIPTON DESCRIPTION

The subject property comprises 5 newly developed industrial units across 2 terraces and extending to 81,198 sq ft (7,543.5 sq m), with unit sizes ranging from 8,398 sq ft (780.2 sq m) to 24,155 sq ft (2,244.1 sq m). The development achieved Practical Completion in November 2018. The units have been developed to a high specification including:

• Steel portal frame • 3 phase power supply construction • Ample yard and car parking PHASE 4 • 8m clear internal height • Electric car charging points 2 • 50kN/m floor loading • Landscaped Environment • 1 roller shutter door per • Secure gated entry and 10,000 sq ft 24-hour on site security • 15% roof lights • BREEAM Very Good

UNITS 1 – 5

PHASE 3 Start on site Q2 2020 ACCOMMODATION

The property has been measured in accordance with the RICS code of measuring practice (6th edition) and provides a total gross internal area of Unit Use GIA (Sq ft) GIA (Sq m) 81,198 sq ft (7,543.5 sq m). 1 Warehouse 12,793 1,188.5 Office 1,834 170.4 Total 14,627 1,358.9

2 Warehouse 7,245 673.1 Office 1,153 107.1 Total 8,398 780.2

3 Warehouse 10,042 932.9 Office 1,834 170.4 5 Total 11,876 1,103.3

4 Warehouse 19,708 1,830.9 1 Office 2,434 226.1 Total 22,142 2,057

4 5 Warehouse 21,904 2,034.9 2 Office 2,252 209.2 Total 24,155 2,244.1

3 Overall Total 81,198 7,543.5

The site extends to approximately 3.26 acres (1.32 Hectares).

TENURE Freehold. TENANCY

The property produces a total rental income of £562,502 per annum which reflects an average passing rent of £6.93 per sq ft.

Unit 5 is currently vacant and the vendor will provide a 12 month rent, rates and service charge guarantee. The AWULT is 4.04 years to break options and 7.21 years to lease expiries.

Unit Tenant GIA GIA Passing Rent (psf) Lease Start Rent Review Break Option Lease Expiry Comments (Sq ft) (Sq m) (pa)

Unit 1 nGeneration 14,627 1,358.9 £102,389 £7.00 22/11/2019 21/11/2024 4 months rent free period to be topped up by Limited the Vendor. 3 month rent deposit held.

Unit 2 Dolphin Lifts 8,398 780.2 £56,687 £6.75 24/04/2019 24/04/2024 23/04/2022 23/04/2029 6 months notice period on break option. Midlands 23/04/2026 2.5 month rent penalty on initial break option if Limited break option is exercised. Outside 1954 Act. Open Market rent review. 3 month rent deposit held.

Unit 3 Xtralite 11,876 1,103.3 £86,101 £7.25 12/12/2019 12/12/2021 11/12/2024 6 months half rent if break option is not exercised. (Rooflights) 3 months notice period on break option. Limited

Unit 4 Viking 22,142 2,057 £148,240 £6.70 13/05/2019 12/05/2024 13/05/2025 12/05/2029 12 months notice period on break option. Supplynet Break penalty of £49,413.34. Limited Uncapped RPI Linked rent review.

Unit 5 Vacant 24,155 2,244.1 £169,085 £7.00 The Vendor will provide a 12 month rent, rates and service charge guarantee.

81,198 7,543.5 £562,502 £6.93 COVENANTS

The property is let to 4 tenants with • nGeneration Ltd • Dolphin Lifts Midlands Ltd • Xtralite (Rooflights) Ltd • Viking Supplynet Ltd 100% of the income let to covenants (04169609) (06262204) (04180002) (02558224) of ‘Low or Very Low Risk’, according 84 / 100 reflecting 89 / 100 reflecting 100 / 100 reflecting 92 / 100 reflecting to Experian. ‘Low Risk’ ‘Low Risk’ ‘Very Low Risk’ ‘Very Low Risk’ MARKET COMMENTARY

The UK logistics market is as strong as ever with 2019 The benefits from an extensive labour pool The region has experienced a lack of recent speculative take-up totalling 25.28m sq ft, reflecting some 80% of total with a working population of over 735,000. Furthermore, development, and with much of the existing stock take-up in 2018, which was a record year. Nationally, take- 74% of the population are economically active and the considered to be of a more secondary nature, there has up has been dominated by retailers and 3PL’s, who together local market remains particularly attractive with labour been significant rental growth with prime rents in the were responsible for 45% of overall take-up. costs some 12% below the national average. Employers region having increased by around 10% over the last also benefit from a skilled labour force with over 74% of The Midlands had another extremely strong year 18 months. This is evidenced by the progressive employees having an NVQ1 and above qualification. representing 31% (7.89m sq ft) of all take-up. Whilst take- growth in rent of each letting at Vaughan Park, up on a national level was dominated by online retail, the Tipton benefits from increasing occupier demand for which is considered the area’s premier product. West Midlands in particular boasts a relatively diverse industrial space in both the small and mid-box markets. This trend is likely to continue with further rental occupier base with the automotive sector, food industry and growth anticipated due to the limited development Local occupiers are seeking a flight to quality, which is manufacturing accounting for 50% of take-up. pipeline and positive market fundamentals. illustrated at Vaughan Park as each tenant has sought to Tipton lies at the heart of the Black Country, a region upgrade the quality of their accommodation within the synonymous for its industry, which now encompasses a vast Black Country. range of manufacturing and distribution uses.

OCCUPATIONAL TRANSACTIONS INVESTMENT TRANSACTIONS

Date Address Size Rent Tenant Term Date Address Size Rent AWULT Price NIY Purchaser (Sq ft) (per sq (Break (Sq ft) (per sq (Capital value ft) Option) ft) per sq ft)

March Building C, 41,864 £7.00 Evoca UK 15 years Dec Hatch Industrial 96,989 £8.48 5.17 £13,400,000 5.87% DTZ 2019 Prime Point, (10 years) 2019 Estate, (£138) Investors Estate Basingstoke Oct Units 1-3, 127,236 £7.11 4.90 £15,700,000 5.40% Cabot 2019 Omega Park, (£123) Properties Dec Gateway 37, 37,912 £6.00 Haulotte 15 years Didcot 2018 Four Ashes Park, Group (10 years) Wolverhampton Sept Parkway 108,176 £5.43 5.23 £10,600,000 5.20% Threadneedle 2019 Trading Estate, (£98) Nov Building D, 40,000 £6.80 Certas 20 years Manchester 2018 Prime Point, Energy UK (15 years) Pensnett Estate, Limited May DPD, Vaughan 71,735 £9.90 25.00 £14,703,000 4.60% Alpha Antler Kingswinford 2019 Park, Tipton (£205)

Nov Unit 4 12,720 £7.20 Cooper 15 years 2018 Steel Park Coated Coil (10 years) May Steelpark 35,281 £6.97 9.00 £4,015,000 5.75% Private UK 2019 Trading Estate, (£114) Investor Wednesfield April Unit 2, 11,476 £6.70 Smith Metal 10 years 2018 Steel Park, Centres Oct Pilot Trade Centre, 31,000 £10.00 10.00 £5,200,000 5.59% Columbia Wednesfield 2018 Coventry (£168) Threadneedle

April Doranda Way, 152,311 £5.40 3.40 £14,860,000 5.18% Daily Mail 2018 West Bromwich (£98) Pension Fund FURTHER INFORMATION

SERVICE CHARGE DATA ROOM VAT EPC A service charge is payable by the A dedicated on-line data room We understand the property The Energy Performance tenants as a contribution to the allowing interested parties to view key has been elected for VAT and it Certificates are available management and upkeep of the documents is available on request. is intended the transaction will within the data room and estate and wider estate roads. The be treated as a transfer of going all provide an EPC rating service charge is currently estimated concern (TOGC). CAPITAL ALLOWANCES of B30. at £0.36 per sq ft. The service Capital allowances may be available charge year runs from April to March. to the purchaser under separate negotiation.

THE PROPOSAL We are instructed to seek offers in excess of £9,170,000 which reflects a Net Initial Yield of 5.75% and a capital value of £113 per sq ft, assuming normal purchasers’ costs 6.69%.

CONTACT For further information please contact:

Nick Woodward Will Sherlock Oliver Forster Tom Nock 0121 616 5561 0121 616 5563 0121 616 5559 0121 616 5261 [email protected] [email protected] [email protected] [email protected] 0121 616 5555

IMPORTANT NOTICE CBRE and their clients 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 CBRE have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. January 2020. 13411 tasselldesign.co.uk