KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW Food manufacturing industrial investment opportunity in a prime location KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW 02 TO M62 LEEDS Executive Summary A63 Located in a highly popular commercial location with a mixture of trade operators, manufacturers, and retail. Nearby occupiers include McCain Foods, Aunt Bessie’s, Smith & Nephew, Howdens and Screwfix. Excellent road links with good access, one minutes’ drive from the A63 accessing the cities docks, Humber Bridge and Motorway network. Great accessibility for local work force. Highly visible self-contained site of 2 acres with A166 detached building comprising of dedicated production area and cold store with proportionate ancillary accommodation. Separate car parks to dedicated commercial yard. New lease for a term of 10 years to Karro Food Limited from the 11th of August 2021 with a rent review after the 5th year of the term based on LIVERPOOL ST Consumer Prices Index (CPI) with a cap and collar of 5% and 2% respectively. Initial passing rent of £225,000 per annum, MANCHESTER ST payable quarterly in advance with a minimum uplift in 2026 to £248,418 per annum and scope to raise to £287,163 per annum (with the cap). Karro Food Limited are a first-class covenant with a Credit Safe rating of 93/100 (Very Low Risk). Offers are sought in excess of £3,250,000 (Three Million Two Hundred and Fifty Thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects aNet Initial Yield of 6.5% and a potential Reversionary Yield of 8.3% with a minimum of 7.18% in 2026 , assuming WITTY ST purchasers’ costs of 6.48%. KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW 03 BRIDLINGTON EPPLEWORTH B1233 A165 HARROGATE A165 Location YORK A1079 SCULCOATES SOUTHCOATES Kingston Upon Hull has a population of around MARKET HORNSEA WILLERBY THE AVENUES A1165 A1(M) WEIGHTON HULL 250,000 with a further 150,000 in the immediate A19 A1079 BEVERLEY EAST ELLA LEEDS ANLABY RD surrounding suburbs. It is a major industrial city ANLABY M1 SELBY HULL with extensive river port facilities. The area is home M62 WITHERNSEA B1231 A63 A63 to a number of major businesses including Arco, River Humber A1166 M62 WITTY ST Reckitt Benckiser, Siemens, Wren Kitchens, Smith A15 A164 HESSLE RD A1 & Nephew, William Jackson Food Group, Cranswick A19 M18 Humberside WAKEFIELD Airport HESSLE SCUNTHORPE LIVERPOOL ST Group, McCain Foods and Aunt Bessie’s. A63 River Humber M180 M180 GRIMSBY The Humber with Hull as the principal city has just M1 DONCASTER BRIGHTON ST been awarded Freeport status, paving the way for A15 significant inward investment into the region. M18 A1(M) A159 HUMBER BRIDGE GAINSBOROUGH SHEFFIELD NEW A1 A15 HOLLAND M1 LINCOLN BARTON-UPON-HUMBER Journey times MANCHESTER ST Destination Miles Time A63 0.1 1 min M62 (Junction 38) 13.8 17 mins WITTY ST M180 (Junction 5) 14.7 20 mins A1 (M) (M62 Intersection) 40.6 41 mins M1 (Junction 42) 51.4 52 mins York 40 52 mins LIVERPOOL ST Leeds 52 51 mins Sheffield 59 59 mins Manchester 88 1 hr 27 mins TO A166 KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW 04 Description This factory was built in the early 1990s and is of steel frame construction with profile cladding. It was built for its current purpose of food manufacturing, but the specification and layout would lend itself to alternative commercial uses. At ground floor level, the accommodation has three principal production areas, a cold store as well as ancillary, office, and storage accommodation. To the first floor there is dedicated office accommodation as well as mezzanine storage above parts of the production areas. Primary eaves heights range from 8 metres to 10 metres. To the exterior, there is a substantial service yard as well as dedicated parking areas. The site area extends to approximately 2 acres (0.809 hectares). Accommodation Sq ft Sq m Production area 28,692 2,665.6 Cold Store 8,976 833.9 Ancillary 5,727 532.1 Ground floor office 2,203 204.7 First floor office 2,203 204.7 Mezzanine storage 2,490 231.4 Total 50,291 4,672.4 Measurements are based on Gross Internal Areas (GIA). The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition. KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW 05 Covenant Karro Food Limited (Company Number: SC220000) Sofina Foods is one of Canada’s largest food producers Karro Food Group is one of the United Kingdom’s leading and has a 25-year history of acquisitions, growth, and success. meat processors with plants across the country and is a Eight Fifty is a leading supplier of both branded and own leading producer of bacon, gammon, fresh pork, fresh label seafood and pork. The pork division is one of the and frozen sausages, ham, and cooked meats. They supply largest processors and suppliers of products across the UK high quality meat products to retail, foodservice, and and Ireland. The seafood division is the largest provider manufacturing customers across the UK. of chilled and frozen products across the UK, including its Karro Food Limited is owned by Eight Fifty Group which own brand, and is a major player in frozen seafood across was purchased In March 2019 by Sofina Foods Inc., from Germany and France. The group employs around 8,300 CapVest Partners LLP. people across 23 manufacturing sites. Description 28th March 2020 (65 weeks) 29th December 2018 (52 weeks) 30th December 2017 (52 weeks) £’000 £’000 £’000 Revenue £787,683 £573,310 £585,235 Pre Tax Profit £13,776 (£1,297) £16,575 Shareholders’ funds £119,791 £107,876 £110,356 Tenancy Occupational Market The subject property is let to Karro Food Limited for a The pandemic period has seen a significant strengthening term of 10 years beginning on the 11th August 2021 as a of the industrial and logistics sector building on a strong reversionary lease from the existing term. There is a rent base beforehand. The Humber region has seen significant review after the 5th year of the term based on Consumer strengthening of confidence due to growing demand Prices Index (CPI) with a cap and collar of 5% and 2% in the food production, renewable energy and respectively. manufacturing sectors. There is currently a significant lack of supply of industrial and logistics space with expectation that there will be further new development to compliment Tenure recent developments at both Priory Park & Melton West in Hull, Europarc in Grimsby and Goole 36 and Ozone in the Freehold. Goole area. The introduction of Freeport status for the region is expected to further increase occupational demand. KARROFOOD GROUP LIVERPOOL STREET I HULL I HU3 4HW 06 Capital Allowance Contact The seller will retain all capital allowances. For further information or to arrange a viewing: EPC David Garness 07721 524 355 The EPC is available on request. [email protected] Matt Procter 07738 804 246 VAT [email protected] The property is elected for VAT and it is anticipated that the sale will be structured as a Transfer Of A Going Concern (TOGC). Data Room A data room has been set up to supply additional information. Access is available on request. Garness Jones Ltd for themselves and for the vendors or lessors of the property whose agents they are, give notice that i) Particulars are set out as a general outline only intended for the guidance of intended purchasers or tenants and do not constitute, nor constitute part of, an o er or contract. ii) All descriptions, dimensions, references to conditions and necessary permission or use and occupation and other details are given in good faith Proposal and are believed to be correct, but any intended purchasers or tenants should not rely on them as statements or representations of fact but must Offers are sought in excess of £3,250,000 satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained (Three Million Two Hundred and Fifty in these particulars. iii) The vendor or lessor does not make and neither Garness Jones Ltd nor any Thousand pounds) subject to contract person in their employment has any authority to make or give any representation or warranty and exclusive of VAT. A purchase at this whatsoever in relation to this property. © Crown Copyright 2005. All rights reserved. Licence number level reflects aNet Initial Yield of 6.5% 100010906. VALUE ADDED TAX Value Added Tax may be payable on the purchase price and/or the and a Minimum Reversionary Yield of other charges or payments. All figures quoted are exclusive of VAT. Intending purchasers and 7.18% (2026), assuming purchasers costs lessors must satisfy themselves as to the applicable of 6.48%. VAT position, if necessary by taking appropriate professional advice. Regulated by RICS. Click here to view the video May 2021 Design by carve-design.co.k 15070/4.