Eastleigh Investment Brochure V14 Layout 1
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SOUTH CENTRAL AMBULANCE SERVICE Unit 1-4 Woodside Road, Eastleigh, Hampshire SO50 4ET South Central Ambulance Service NHS Trust Limited SECURE INCOME SINGLE LET INDUSTRIAL INVESTMENT OPPORTUNITY INVESTMENT SUMMARY Single let detached industrial/warehouse premises located adjacent to Junction 13 of the M3 Motorway The unit extends to a gross internal area of 31,555 sq ft (2,931.54 sq m) on a site of 1.17 acres (0.47 hectares) Let to the undoubted covenant of South Central Ambulance Service NHS Trust Limited on a 20 year lease expiring on 1st July 2030 and subject to a Tenant only break option on 1st July 2025 Unexpired term certain of 10.1 years Current passing rent of £181,620 per annum equating to a low rent of £5.76 per sq ft (£61.95 per sq m) Strong occupier market locally with recent letting evidence to support short term rental growth Upwards only open market rent reviews with the next due on 2nd July 2015 Freehold We are instructed to seek offers in excess of £2,640,000 (Two Million, Six Hundred and Forty Thousand Pounds). An offer at this level would reflect a Net Initial Yield of 6.50% (assuming Purchaser’s Costs of 5.80%) reflecting a capital value of £84 per sq ft (£900 per sq m) UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET M3 (Southbound) Southampton & Portsmouth & M27 Chanon Passfield Avenue M3 Junction 13 Retail Park Halfords Leigh Road Matalan Pets at Home Costa Coffee M3 (Northbound) Winchester and Basingstoke Lambert Brothers Unit 1-4 Woodside Road Woodside Road Railway Line Booker Cash & Carry Howdens Royal Mail Goodwood Road Interlink Express Woodside Avenue Screwfix Brake Bros Rexel PTS Plumbing Trade Supplies UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET Location LONDON Eastleigh is a large market town in Hampshire with a population of approximately 125,000 and is located 6 miles (10 km) north A338 M25 M3 Basingstoke M25 east of Southampton, 10 miles (16 km) south of Winchester and A3 A31 A303 72 miles (116 km) south west of London. A303 Andover Guildford A31 Eastleigh is particularly well connected by virtue of its location M3 Winchester A3 at the southern end of the M3 at its interchange with the M27 Salisbury A24 Motorway, which itself connects the South Coast Corridor between A354 A36 Petersfield M3 A338 the cities of Southampton and Portsmouth. M27 Eastleigh A3(M) A31 Ringwood Historically a rail industry town, Eastleigh retains its rail connectivity M27 Southampton A27 with two stations (Eastleigh and Southampton Airport Parkway) on Wimborne A31 A35 A27 A337 Chichester A338 Portsmouth Bognor Regis the mainline connecting Southampton and London Waterloo. A35 Lymington Poole Christchurch Southampton International Airport is also located approximately Bournemouth I.O.W 3 miles (4.8 km) from the subject property. Swanage Situation Woodside Road is located within the Boyatt Wood Industrial Estate, one of the prime logistics and industrial areas along the South Coast, due to its excellent links with the M3 & M27 Motorways. To Woodside London Avenue The property is situated 1 mile (1.6km) north of Junction 3 of the M3 via Leigh Road and Woodside Avenue. Bournemouth 13 Road Leigh Road Distances EASTLEIGH M3 Location Distance Travel time Southampton 14 Road 3 Southampton 6 miles (10 km) 17 minutes M27 To M3 Bournemouth SOUTHAMPTON London 72 miles (116 km) 88 minutes INTERNATIONAL AIRPORT Bristol 78 miles (126 km) 97 minutes 5 M27 4 To 5 Birmingham 126 miles (203 km) 130 minutes Portsmouth UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET Description The Property is a detached industrial unit of steel portal frame construction with part brick and part profile steel clad elevations. The accommodation provides workshop areas in two bays at the rear, with additional office accommodation over two floors across the full front elevation of the property. The rear workshop area has Tenure a minimum eaves height of approximately 5.5m and is accessed via three large loading doors from the rear yard. Freehold There is also a two storey extension to the rear, which provides additional storage and office/training area. Tenancy Let to South Central Ambulance Service NHS Trust st Accommodation Limited on a 20-year lease expiring on 1 July 2030 st The gross internal area (GIA) of the property is assessed as follows: Tenant break option on 1 July 2025 providing 10.1 years unexpired term Description sq ft sq m Current passing rent of £181,620 per annum Warehouse 1,890.10 20,345 (equating to £5.76 per sq ft) The rent review mechanism is 5 yearly upwards Office (Ground) 299.79 3,227 only to open market rental value, with the next Office (First) 299.79 3,227 rent review on July 2015 Rear Extension (Ground) 220.96 2,378 Tenant Covenant Rear Extension (First) 220.96 2,378 The South Central Ambulance Service NHS Trust is part of Total 2,931.60 31,555 the National Health Service and would therefore be deemed as an undoubted, low risk covenant. Site Area The site area totals 1.17 acres (0.47 hectares). Unit 1-4 UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET Occupational Market Overview Current Availability The South Coast industrial market has performed strongly over the past 18 months, Whilst take up along the M27 Corridor has remained steady, stock levels have not been replenished. with an encouraging rise in the level of occupier demand. As a result of which there is now a real shortage of good quality units available, with currently only 4 notable properties in the 20,000 - 40,000 sq ft (1,853 - 3,716 sq m) size bracket being available Notable lettings within a 10 mile (16 km) radius of Eastleigh over the past 12-18 months include: within a 10 mile (16 km) radius of Eastleigh. Property Size Date Rent Comment (sq ft) (per sq ft) Property Type of Quoting Comment transaction rents Unit 2 Airways 30,000 New Lease £7.25 Let to UTi Logistics. Distribution Park, July 2015 per sq ft 10 year lease with a Stoke Park, Chickenhall New Lease £7.00 Good quality modern Southampton 5 year break option. Lane, Eastleigh per sq ft unit with circa 10m eaves. Originally part of a 84,000 sq ft unit but split in 2013 when Unit F Omega Enterprise 26,911 New Lease £7.25 Fully refurbished detached 53,000 sq ft was let to DHL. Park, Chandlers Ford April 2015 per sq ft unit with a secure fenced Industrial Estate yard. Let to Aspray24 on a new 10 year lease. Unit 2 Chandlers Park, New Lease £7.50 Good quality semi-detached Chandlers Ford, Eastleigh per sq ft modern unit. Unit C Hamilton 18,600 New Lease £7.76 Let to Truvox International Business Park, February 2014 per sq ft on a new 15 year lease. Unit 3 Goodwood Road, New Lease £7.75 Full refurbished Hedge End Eastleigh per sq ft end of terrace unit. Unit 5 Sopwith Park, Sub Lease or £7.00 Good quality modern unit, Unit 7 Mauretania Road, 20,016 New Lease £6.50 Let to Meachers Transport Segensworth East, New Lease per sq ft but has higher than average Nursling Industrial Estate February 2014 per sq ft on a new 7 year lease. Fareham office content. Unit 6 Kites Croft, 30,000 New Lease £7.50 Let to Estee Lauder on Segensworth, Fareham October 2013 per sq ft a new 12 year lease. As the above table illustrates, availability for occupiers is restricted to second-hand units. This coupled with strengthening occupier demand has triggered a number of landlords to Stoke Park, 53,000 New Lease £7.00 Let to DHL on a new commence plans for speculative development, with schemes in Segensworth, Nursling and Tower Lane, Eastleigh August 2013 per sq ft 10 year lease. Chandlers Ford all expected to secure planning consent and commence construction works in 2015, with rents expected to be between £7.75 - £8.50 per sq ft. Speedwell Close, 30,000 New Lease £6.50 Let to Coopervison Chandlers Ford May 2013 per sq ft on a new 15 year lease. Industrial Estate Unit 2 Chandlers Park, 22,303 New Lease £6.75 Let to K&N drinks Chandlers Ford Industrial July 2013 per sq ft on a 5 year lease. Estate, Eastleigh UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET Investment Market Overview Single-let industrial investments continued to attract strong investor demand from UK Institutions, overseas investors and property companies alike. The South Coast market in particular has been keenly contested due to the favourable supply/demand imbalance. Tenant retention and rental growth prospects are deemed to be strong given the absence of built stock. The following table illustrates the most recent comparable investment evidence: Address Date Area (sq ft) Term Tenant Rent (pa) Rent (psf) Purchase NIY Cap Val Certain Price (psf) Redditch, May 98,196 11.00 Huegli UK Ltd £401,763 £4.09 £5,750,000 u/o 6.60% £59 East Moons Moat 2015 Basildon, April 37,958 4.67Activair (UK) Ltd £244,000 £6.43 £3,544,000 6.51% £93 Burnt Mills Industrial Estate 2015 Worcester, March 92,402 5.70 Bibby Distribution Ltd £467,850 £5.06 £6,400,000 6.95% £69 Woodbury Lane 2015 Coventry, March 81,774 4.75Unipart Group Ltd £425,000 £5.20 £6,180,000 6.50% £76 Middlemarch Business Park 2015 Stoke on Trent, February 65,795 13.12JTF Wholesale Ltd £245,000 £3.72 £3,620,000 6.40% £55 Diamond Park 2015 Littlehampton, January 22,272 9.84Jewsons Ltd £175,230 £6.67 £2,650,000 6.47% £115 Lineside Industrial Estate 2015 Hailsham, November 34,500 7.97East Sussex County Council £232,875 £6.75 £3,102,000 7.10% £90 Ropemaker Park 2014 Bristol, August 80,277 5.00Yodel Delivery Network Ltd £325,000 £4.04 £4,575,000 6.72% £57 Ash Ridge Road 2014 Eastleigh, July 30,000 14.00Coopervision Ltd £134,500 £4.48 £2,050,000 6.50% £68 Chandlers Ford 2014 UNIT 14 WOODSIDE ROAD EASTLEIGH HAMPSHIRE SO50 4ET SOUTH CENTRAL AMBULANCE SERVICE Unit 1-4 Woodside Road, Eastleigh, Hampshire SO50 4ET South Central Ambulance Service NHS Trust Limited Energy Performance Certificate An EPC is available on request VAT The property is elected for VAT and as such the transaction will be treated as a Transfer of a Going Concern (TOGC) Proposal We are instructed to seek offers in excess of £2,640,000 (Two Million, Six Hundred and Forty Thousand Pounds) for our Client’s freehold interest.