Industrial Estate Investment

BELDRAY INDUSTRIAL ESTATE Beldray Road, Mount Pleasant, , WV14 7NH

Multi-let Industrial Estate Investment Opportunity

Site outlines for indicative purposes only. Beldray Industrial Estate, Beldray Road, Mount Pleasant, Bilston, WV14 7NH

A38 A0 StoeonTrentStoke-on-Trent A14 A52 NewastleunderLmeNewcastle-under-Lyme A1

A515 NOTTINGHAM A52 A50 A53 DERBY A4 A52 M A453 A49 A518 M6 A07 A15 urtonBurton uonupon Trent idlands A442 A51 A38 Airport A00 A A41 A42 Shrewsur A0 A1 Shrewsbury ar CannoCannock lasto BELDRAY INDUSTRIAL ESTATE, n La u ne TelordTelford A1 n M54 d BELDRAY ROAD, MOUNT PLEASANT e a r o LEICESTER s M42 R t

Investment Considerations M6 TLL A47 C t E i n t l A458 r l u

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■ n ■ A49 o W A prominent multi let industrial estate Coldield t A454 u a

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d l n s d A sd d r t al with good access to the M6, Birmingham Airport L L a n e a y a Ro o A05 a a s ad a R A n n Ro BIRMINGHAM M 4 le e 1 e B e c n a A442 M6 4 e a t ll d n c i l and the wider national motorway network 1 n (M) u As e 6 A11 to o t u A A491 n t M5 2 R 4 irminam oa l d 4 e 4 8 y t 4 r 4 International t e ■ o 4 4 ■ e l B te Four separate industrial units, occupying a prominent d COVENTRY v r A14 t

idderminsterKidderminster e a u icman B Airport e The Cresent e Ro o r t R t n l u ry a a ar L t

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m i M42 k position on the estate, totalling 81,519 sq ft A448 ch ou

p f A14 i C C A45 Coventry M45 t e t k o ld e c o n e a tr l u M40 Airport B (7,573 sq m) forming part of a larger estate n A4025 S tre en A45t e e t re t u r A435 arwiWarwick e y t ilston 3 ■ A46 N

■ Freehold Central e d w ute t

o e a A423 R R e NORTHAMPTON y o tr r o A1 n t R a ■ A422 A4 A40 A428 u d ■ 3 o n Total site area of approximately 3.38 acres (1.37 ha) oresterWorcester 9 Millfi C eld e a Stratorduonvon s Ro r Stratford-upon-Avon ad c c A49 la a l u 63 ■■ A5 A4 A Let to Hexstone Limited and Novo CSV Limited A44 edordBedford 41

A4103 x A438 fo rd and one vacant unit A429 tr HereordHereford A ee t t A422 Milton e ■■ e Hexstone Limited account for approximately 74% A507 tr enesKeynes S le A41 i treet 3 Loxdale a A M50 d of the contracted income M40 A421 6 M x 4 o 0 4 L 9 Location M5 A 8 A49 3 6 G 1 re 4 a ■■ (M) t Current passing rent of £283,871 per annum which A5 A505 B B r Bilston is situated on the outskirts of Wolverhampton 3 miles south Rail services are provided from , approximately 1.5 miles to the id g e includes a rental top up on the vacant unit of £3.50 psf. LUTON R eastGLOUCESTER of the City Centre, 10 miles north west of Birmingham and 18 south west, which is on the London Midland line and provides access d miles south of Stafford. to Birmingham New StreetLuton and London Euston with a quickest journey ■■ Airport We are instructed to seek offers in excess of £3,200,000 time of 13 minutes and 1 hour 51 minutes respectively. (Three Million Two Hundred Thousand Pounds), Bilston is well accessed being located adjacent to the Route and A41. The Black Country Route provides access to the M6 The town also benefits from a tram service from Bilston Bus Station subject to contract and exclusive of VAT. A purchase at (Junction 10) 3 miles to the north east which provides access to the which provides access to Birmingham City Centre in approximately this level reflects a net initial yield of8.37% assuming M5 to the south east and the M54 to the North. The A41 provides 30 minutes. usual purchasers costs. direct access into Birmingham City Centre 10 miles to the south Birmingham Airport, situated approximately 17 miles to the south east, east and M42 (Junction 5) 20 miles to the south east. is one of the largest airports in the UK and handled more than 10 million passengers in 2015, the seventh busiest airport in the UK. The airport benefitted from a runway extension which opened in July 2014. Multi let industrial estate Investment Opportunity

Works Situation Site Area Beldray Industrial Estate is situated either side of Beldray Road, approximately The property occupies a site of approximately Unit 2 50m north of its junction with Mount Pleasant. The main town centre is situated 3.38 acres (1.37 ha). approximately 500m to the south west of the subject property. 7 Unit 3 The surrounding area is made up of industrial and residential uses with nearby Tenure occupiers including JJ Crump & Son Insulation, Wilcox Textile Reclaimers & Processors, Press Metal UK Limited, Barton Storage Systems and Midwest The property is held Freehold Motor Factors. West Midlands Industrial Market

Unit 1 Description The West Midlands industrial market has experienced a

B

E 4 L D significant change over the past 12 months with a good R The estate is made up of four industrial units; units 1, 2 and 3 are located to the A Y A R L O B eastern side of Beldray Road and unit 4 to the west. All four units are of brick outlook for multi-let industrial estates which are experiencing A IO D N S T R construction with metal sheet clading and benefit from roller shutter doors. a decline in vacancy rates, increasing lease lengths and rents, E E T 6 as well as a reduction in tenant incentives. Unit 1 has been subdivided with office accommodation situated to the front of the 64 property at ground and mezzanine level with the warehouse unit situated to the There has been a noticeable shortage of Grade A supply of 5m 6 0. 5 14 rear of the property. The tenant uses the unit for wholesale distribution. industrial and logistics with lease lengths now up to 15 years Unit 4 straight with no break options on the prime buildings. 46 Unit 2 has been fitted out with racking and a small office. El Sub Sta Tenant demand is improving with significant activity from Unit 3 has been subdivided to provide office accommodation to the front of the T AN occupiers ranging from retailers to logistics and the AS property over ground and first floors with the warehouse to the rear of the property. LE P T automotive sector. N U O The unit was extensively refurbished by the tenant when they took occupation. M Rents are now up to £6.50psf for prime industrial in the region. Unit 4 benefits from office accommodation at the front of the property over ground and M il Prime rents being achieved in the Black Country are in the l dy H B o first floors with the warehouse accommodation to the rear of the property. The unit has rd u 0 a R s P 4 W C e R region of £5.75-6.00psf with secondary rents of £4.75psf. O S LB only recently become vacant and the tenant has returned it in a lettable condition. P E C T © Crown Copyright, ES 100004106. S For identification purposes only. T R E E T m eu us M ry , le ry al ra G ib t L Ar d an Tenancy Schedule

34

3 2 9 3 Unit Tenant Floor Area Area Current Rent Lease Lease Next Comments 0m 10m 20m 30m sq m sq ft Rent p.a. psf commence expiry review Churchill

Conservative Club

2 5 Ordnance Survey © Crown Copyright 2016. All rights reserved. 1 Hexstone Ground 2,780 29,926 £150,000 £3.47 01/03/11 28/02/21 Outstanding rent review from 01/03/2016. The tenant will Licence number 100022432. Plotted Scale - 1:1441 Limited pay 50% of the rent agreed at the 01/03/2016 review for 1st 179 1,926 the period 01/03/2016 to 28/02/2017 and will pay 75% of the rent agreed at review for the period 01/03/2017 to 28/02/2018. These rental discounts will be topped up by 2 Ground 1,051 11,320 the vendor. There is a schedule of condition attached to this lease. Total 4,010 43,172

3 Novo CSV Ground 1,192 12,827 £51,807 £3.48 11/02/15 10/02/20 11/02/17 The current passing rent is £25,903 p.a. Vendor to Limited top up rent free until expiry of half rent incentive at 10/02/2017 and also the £31,856 that is owed to the 1st 193 2,073 tenant in respect of the refurbishment works carried out to the property. There is a schedule of condition attached to the lease. The tenant is to pay a further rent deposit of Total 1,385 14,900 £5,000 to the landlord on or before 11/02/2017.

4 Vacant Ground 2,066 22,241 £82,064 £3.50 Vendor to top up rents and rates for 18 months. 1st 112 1,206 Total 2,178 23,447

Total 7,573 81,519 £283,871 Beldray Industrial Estate, Beldray Road, Mount Pleasant, Bilston, WV14 7NH

Covenant Information Hexstone Limited Hexstone is the company behind leading fasteners and fixings experts Owlett-Jaton, Unifix, Galaxy Fasteners, Icon Fasteners, JCP Fixings, and Stainless Threaded Fasteners, and is designed to strengthen the supply chain to the fastener and fixings industry.

31/12/2012 31/12/2013 31/12/2014 Turnover £54,437,000 £55,357,000 £59,359,000 Pre-tax Profit £2,230,000 £2,125,000 £3,052,000 Total Net Worth £27,490,000 £29,143,000 £31,654,000

Novo CSV Limited Novo CSV specialise in the repair of electrical household goods.

31/12/2012 31/12/2013 31/12/2014 Turnover - - - Pre-tax Profit - - - Total Net Worth £13,173 £40,109 £40,527

EPC The properties EPC ratings are as follows: Units 1&2 – C (67) Unit 3 – D (83) Unit 4 – E (103) More information available on request.

VAT Proposal The property has been elected for VAT and therefore VAT will We are instructed to seek offers in excess of £3,200,000 (Three Million Two Hundred Thousand Pounds), be payable on the purchase price. It is anticipated that the sale subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of8.37% will be treated as a Transfer of a Going Concern (TOGC). assuming usual purchasers costs.

For further information or to make arrangements for viewing please contact:

Andy Pointon Richard Lea 020 7543 6720 020 7543 6832 [email protected] [email protected] www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 03.16