Morganite Trading Estate Upper Fforest Way, Swansea Enterprise Park, Swansea, SA6 8PP
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Morganite Trading Estate Upper Fforest Way, Swansea Enterprise Park, Swansea, SA6 8PP August 2016 INDUSTRIAL INVESTMENT OPPORTUNITY Significant active asset management and development opportunities 48 M4 47 46 45 Neath Investment Summary 44 43 Swansea 42 • Freehold. 41 Gower Port Talbot • Swansea is the second largest city in Wales and 40 the administrative and commercial centre for West Wales. 39 38 Llantrisant M4 • Located within the prime industrial and 31 M4 36 32 commercial location in Swansea. 37 35 34 Bridgend 33 • Situated in Swansea Enterprise Park, which has Cardiff excellent access to the M4 with Junction 44 & 45 in close proximity. Swansea • Morganite Trading Estate is an established Swansea is the second largest city in Wales which has a population of 230,000 Cardiff and is the gateway to West Wales. It is one of the major administrative and International industrial estate offering both secure income and commercial centres for the principality and draws on a catchment population significant asset management and development of circa 1.5 million from within a 1 hours’ drive time. Airport opportunities. The city is located on the northern shore of the Bristol Channel approximately 85 miles west of Bristol, 42 miles west of Cardiff and 185 miles west of • Comprises 331,975 sq ft of predominantly London. Swansea benefits from excellent road communications being situated approximately 5 miles south of the M4 motorway (junction 44 to 47). The industrial accommodation on a site of 18.79 acres. city also has a main line railway station that provides a regular direct link to London Paddington in less than 3 hours. • Part let to Morgan Electrical Carbon for 15 years Swansea is a popular student destination and there are now more than 30,000 (10 year break). Significant covenant with global students in higher education at Swansea University and the University of Wales sales for 2015 in excess of £911.8 million. Trinity St David’s. Tourism is prosperous in Swansea with many attracted to the Gower Peninsula • Producing a total current income of £464,390.25 (an area of outstanding natural beauty) which offers 32 miles of coastline plus per annum. the Liberty Stadium which is the sporting arena for Swansea City Football Club and the Ospreys regional rugby team. • Circa 50% of the space is either vacant or let on The city is expected to see further growth from mixed use development and short term leases providing the opportunity to add regeneration of both the city and its waterfront. significant value. Swansea is home to a wide range of national and international companies including HSBC, Admiral Insurance, Amazon, BT, Virgin Media, Hewlett • The industrial areas are significantly under rented Packard and 118 118. The city could become the home of the world’s offering opportunities in the short term to increase first tidal lagoon and combined with Swansea University’s new science and innovation campus to the east of the city would drive investment to the area the rental income. thus raising the profile of Wales’s second city. • The offices and surplus land/car parking offer development potential. Morganite Trading Estate 45 7 • We are seeking offers in excess of £5,250,000, 6 MORRISTON M4 reflecting an attractive Net Initial Yield of GOLF CLUB A40 . 8.30%, after deducting purchasers costs at A48 TH RD Y 6.60%, and a low Capital Value of £15.81 per A WA NE BIRCHGROVE sq ft. MORRISTON EST TERS ROAD R AL O W • Estimated Rental Value of £978,407.75 per annum ER FF ASDA P UP which would result in a potential Reversionary A48 44 Yield of 17.48%. SAMLET RD A48 . LLANSAMLET SWANSEA Subject to Contract & Exclusive of VAT ENTERPRISE PARK TH RD. A4217 NEA 7 1 2 4 RD. A A4067 JERSEY A4217 48 M4 47 46 45 44 Neath 43 Swansea 42 41 Gower Port Talbot 40 39 38 M4 Llantrisant 31 M4 36 32 37 35 Situation 34 33 Morganite Trading Estate is located on the northern Bridgend Cardiff periphery of the well-established Swansea Enterprise Park regarded as the prime industrial location in Swansea. It is situated approximately 4 miles north east of Swansea City Centre while Junctions 44 and 45 of the M4 motorway are located 1.5 miles to the north of the Park. Cardiff The property is adjacent to a retail/leisure development that International includes occupiers such as ASDA, Premier Inn Hotel, KFC, Airport Costa Coffee and Taybarns. Key 1 Admiral 11 Afon Engineering 2 Arvato 12 City Centre 3 DVLA 13 SA1 Waterfront 14 4 DVLA 14 Mumbles 5 Booker 15 Liberty Stadium Cash & Carry 16 13 Burger King 12 6 Direct Storage 17 Greggs 7 Selco 18 Pappa Johns Pizza 15 8 Bestway Cash & Carry 19 Costa Coffee 9 Blakemore 20 Premier Inn/ Cash & Carry Brewers Fayre 21 10 Parcel Force ASDA Morganite Trading Estate 45 21 16 17 8 18 7 19 6 MORRISTON M4 7 6 20 GOLF CLUB A40 . A48 TH RD Y A 9 5 WA NE BIRCHGROVE Morganite Trading Estate MORRISTON EST TERS ROAD R AL 10 O W 11 ER FF ASDA P UP 3 A48 4 44 SAMLET RD A48 . 1 2 LLANSAMLET SWANSEA ENTERPRISE PARK TH RD. A4217 NEA 7 1 2 4 RD. A A4067 JERSEY A4217 Morganite Trading Estate Description Morganite Trading Estate occupies a site of approximately 7.61 hectares Internally each unit benefits from open plan warehouse space with level (18.79 acres) and offers a range of industrial and office accommodation. access loading door provision and integral offices/ancillary space. The total footprint of the existing buildings within the site totals 331,975 The office accommodation (Building D) is of steel framed construction sq ft which provides site coverage of 37%. with brick elevations. Internally there are a number of partitioned rooms The site comprises one large warehouse subdivided into 3 self-contained offering a mix of open plan, cellular offices, laboratory space plus canteen units plus a further high bay warehouse (Unit H).The majority of and toilet facilities. industrial accommodation benefits from a good range of eaves heights, Externally the site has generous areas of car/lorry parking and storage and from 6 metres up to 10 metres. The industrial buildings are generally is secured by a perimeter fence. In addition, the estate also benefits from of steel portal framed construction with profiled steel cladding to CCTV coverage and a security gatehouse. the elevations and pitched roofs. We understand the buildings were developed in the early 1970’s and then refurbished in the late 1990’s. N Caravan Site N Morriston North Industrial Estate RIVER TAWE YARD 1 St Johns Court Car Park 1 H YARD 2 Security Hut Car Park 2 F G D E RMPU Acorn Court Brewer’s Fayre UPPER FFOREST WAY Premier Inn ASDA Finnegans Joe’s Ice Cream Costa Parlour Papa John’s Pizza Greggs Unit H Units E & G Unit D Tenancy Schedule Tenure Current occupational position on the estate is set out below. The property produces a Freehold current rental income of £464,390.25 per annum. The industrial areas are let at a total rent of £404,390.25 per annum which reflects just £1.37 per sq ft on let areas. Rent ERV Schedule Comments Lease Break Lease Rent Rent ERV Inside Unit Tenant Area (per (£ per of Start Clause Expiry (£ p.a) Review £ p.a. Act sq ft) sq ft) Condition • Detached office building in need of upgrading • Fronts Upper Fforest Way so good D Vacant 35,794 sq ft - - - - - - £178,970 £5.00 - - prominence • On a site of 2.5 acres • Offers redevelopment potential with significant offers already received • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) 96,991 sq ft £242,477.50 • Mezzanine floor used as offices Electrical £193,982 £2.00 E 6,118 sq ft 29.9.16 29.9.26 28.9.31 5 yearly £5,000 £2.50 Ye s Ye s • Rent at 5th year review capped at Carbon Ltd £5,000 £0.82 (Mezzanine) (Mezzanine) £2.50 per sq ft (MECL) • 6 months rent free from lease commencement • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) Electrical • Rolling 3 month break after 6 months F 15,207 sq ft 29.9.16 29.12.16 28.9.19 £11,405.25 £0.75 No £49,422.75 £3.25 No Ye s Carbon Ltd • Agreed tenant works on lease expiry (MECL) • 6 months rent free from lease commencement • Lease guaranteed by Morgan Morganite Advanced Materials Plc (MAM Plc) • Rolling 3 month break after 6 months Electrical G 116,004 sq ft 29.9.16 29.12.16 28.9.19 £87,003 £0.75 No £290,010 £2.50 No Ye s • Agreed tenant works on lease expiry Carbon Ltd • Includes 5,000 sq ft offices (MECL) • 6 months rent free from rent commencement • Years 1 & 2 - £80,000 per annum • 3 months rent free Something • Landlord undertaking £75,000 works Different to building H 61,011 sq ft 10 years 5 years £107,000 £1.75 5 yearly £152,527.50 £2.50 Ye s Ye s Wholesale • Tenant already in occupation on the Ltd basis of a previous agreement. New lease on the terms set out in the tenancy schedule is in solicitors hands. Security • Self-contained with toilet facilities Vacant 850 sq ft - - - - - - - - • Will be vacated once 24 hour Hut security is removed Morganite • Occupied by licence • MECL will demolish when fully Electrical RMPU - Licence Rolling - £0 £0 - No No vacated Carbon Ltd • Land remaining will be outside their (MECL) demise 331,975 sq ft £404,390.25 £918,407.75 OPEN Tenant Area Lease Break Lease Rent Rent Rent ERV ERV Inside Schedule Comments LAND Start Clause Expiry (£ p.a) (per Review £ p.a.