sign in sign up
<<
Home , Cwmbran

HIGH YIELDING SINGLE LET INDUSTRIAL INVESTMENT

LLANTARNAM PARK, CWMBRAN NP44 3HB Investment Summary • Freehold • Located in Park, Cwmbran, one of the premier commercial locations on the M4 Corridor. • Strategically located just 3 miles north of Junctions 25, 25A and 26 of the M4. • The property comprises a well specified industrial warehouse of 56,550 sq ft with integral offices set within a generous site of 4.55 acres and a low site cover of 29%. • Let to Zodiac Seats UK Ltd at a current rent of £228,544 per annum (£4.04 per sq ft). • Zodiac Seats are a global company and have a D&B Rating of 5A1. • Unexpired term of just under 2.5 years to break and just under 10 years to expiry. • There is a strong occupational story with the tenant in full occupation and having invested heavily in refurbishing the offices in the last 12 months. They have a large presence on the estate including the adjacent unit, which is circa 110,000 sq ft.

Seeking offers in excess of £2,160,000, reflecting an attractive Net Initial Yield of 10% and a low Capital Value of £38 per sq ft. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT A465 A465 A470 A4059 Location Tredegar A40 Ebbw Vale A4042 A465 Cwmbran is located 6.5 miles north of A469 A467 Raglan

Newport, 16 miles north east of A466 A48 and 14 miles south of A465Abergavenny. It A449

A4061 Aberdare A470 sits within , which is a county N R A4059 E borough of South within the EV S R historic boundariesNeath of the affluent E V Newbridge Cwmbran Chepstow I MonmouthshireSWANSEA County. Torfaen hasTonypandy Ysrad R a population of 91,000 and is the 3rd A4058 Mynach PAIG HOUSE A48 22 PAIG HOUSE M4 M48 most densely41 populated county in 26 25a25 24 21 41 Pontypridd A468 M4 23 M5 Wales. Cwmbran has a population A4119 27 A48 40 Tonyrefail A470 M4 28 of approximately 3947,250 and was Caerphilly NEWPORT 20 38 29 15 established in 1949 as the only “new Llantrisant 30 16 M49 town” development in .36 32 17 37 35 A48 19 34 33 A4232 M4 18 The town is strategically located with Avonmouth M32 Junctions 26, 25 and 25a of the M4 19 motorway approximately 4 miles to BRISTOL A48 CARDIFF M5 the south, with access being provided 20 A4 via the A4051 and A4042 respectively. CardiŒ A4050 A37 A38 For identification purposes only There is a regular direct train service Airport A370 to Cardiff and Newport with respective Barry Weston-Super-Mare journey times approximately 30 21 minutes and 10 minutes. BRISTOL CHANNEL Situation The town has a strong retail presence comprising the Cwmbran Shopping M5 Llantarnam Business Park is regarded as one of the

Centre (ranked 32nd in UK,Ty Coch Lane 3rd in premier commercial locations on the M4 Corridor. Its easily Wales), which is a regionally dominant accessible from the M4 being located only 3 miles north of shopping centre owned by M&G, 22 WE FIGHT ANY CLAIM Junction 26, 25 and 25A of the and accessed via the A4042. Llantarnam Park also offers a range of together with the foodstore provision SAT NAV : NP44 3HB SPRINGBOARD ancillary services including retail and hotel and Cwmbran (Sainsbury’s, Asda, Morrison’s) and BUSINESS INNOVATION Cwmbran Retail Park, which is owned Town Centre is just 1 mile to the north of the Park providing by UBS. Major retailers include House a good selection of retail and leisure. EZITRACKER (UK) of Fraser, Marks & Spencer and Primark. SPEAR The business space for the town is (EUROPE) Llantarnam Park is a popular mixed-use business LLANTARNUM located primarily to the south of the INDUSTRIAL PARK destination including a strong presence of companies in PARKWAY town centre at Llantarnam Park. HOTEL & SPA the aeronautical, electronic, software and high tech sectors. Cwmbran Drive Major occupiers include Concordia, Electrospark, South Wales Police, Torfaen Council and Hyder Consulting.

NAGRA XUBER The subject property is situated in a prominent location KUDELSKI LAKESIDE PARK on Lakeside Close at its junction with Llantarnam Parkway, which is the main road running through the business Park. The tenant also occupies the adjacent 110,000 sq ft COOPER CONTROLS PAIG HOUSE industrial unit, Kestrel House as well as three other units in the business park.

Ty Coch Lane

KESTREL HOUSE Description The property comprises a well specified industrial warehouse of steel portal frame construction with profile steel clad elevations beneath a pitched roof. The property comprises an open warehouse area with a clear internal eaves height of 8.7m and integral 2 storey offices. The unit sits on a generous site of 4.55 acres (low site cover of 29%), which is predominantly used for car parking by the tenant. The property has an EPC Rating of C65 (a copy of the report is available on request).

There is a strong occupational story with the tenant, Zodiac Seats, who are involved with the manufacture and assembly of airline seats. They have been in occupation for 15+ years. The subject property, Paig House, is occupied by the production/manufacturing element of their business with the adjacent Kestrel House also occupied by the tenant and used for the assembly element. They are also in occupation of 3 other units in Llantarnam Park, comprising circa 50,000 sq ft in total and are used for R&D, stores and a small element of production.

We understand that the tenant is committed to the building and the location demonstrated by the term certain at the adjacent Kestrel House being circa 10 years which coincides with the lease expiry of the subject property which is also in 2025. The is further demonstrated by the tenants recent investment into the subject property by extensively refurbishing the offices with further investment already earmarked to upgrade the lighting in the warehouse.

Given the lack of recent development across the M4 corridor the subject property remains one of the more modern units of this size, in the region, and compares favourably to its competition. Convenant Profile Zodiac Seats UK Ltd is an industry leader in the design and development of First and Business Class aircraft seating, cabin furniture, monuments, bar & stowage units; supplying Accommodation to the world’s major airlines and OEMs. The UK company is part of Zodiac Aerospace The unit comprises 56,550 sq ft (5,253.7 sq m). In addition which has its headquarters in France and has circa 35,000 employees across 100 sites there is a small detached Energy Centre to the rear of the worldwide. property occupied by the switch rooms and a workshop comprising 1,378 sq ft (127.9 sq m). Zodiac Seats UK Ltd has a Dun & Bradstreet rating of 5A1, the highest achievable rating. The property has been measured in accordance with the RICS Code of Measuring Practise on a Gross Internal Basis. Financial Summary

The property sits on a site of 4.55 acres and has a low site Fiscal Fiscal Fiscal Non consolidated Non consolidated Non consolidated cover of 29%. GBP GBP GBP 31 Aug 2014 31 Aug 2013 31 Aug 2012 (000’s) (000’s) (000’s) Tenure Freehold Sales Turnover 215,350 175,326 86,872 Profit / (Loss) Before Taxes 35,377 15,044 1,946 Tenancy Tangible Net Worth 55,740 47,814 40,093 The property is let to Zodiac Seats UK Ltd on a 12 year 6 Net Current Assets (Liabilities) 55,860 49,262 37,390 month FRI lease from 12th June 2013 expiring 11th December 2025. The lease is subject to 5 yearly upward only rent reviews and a tenant only break option on 11th June 2018 subject to 6 VAT months notice and a break penalty of £57,136. The property is elected for VAT and it’s anticipated the transaction will be treated as The current rent is £228,544 per annum (£4.04 per sq ft). a Transfer of a Going Concern (TOGC). Investment Considerations Proposal • Freehold. We are seeking offers in excess of£2,160,000 , • Llantarnam Park is regarded as one of the premier commercial locations on the M4 Corridor. Strategically located just 3 miles north of J26, 25 and 25A of the M4. Subject to Contract and Exclusive of VAT, • Well specified industrial warehouse comprising 56,550 sq ft, with a clear eaves reflecting an attractive Net Initial Yield of height of 8.7m. 10%, after deducting standard purchaser’s • Zodiac Seats are a large multi national company and the tenant has a D&B costs of 5.8%, and a low Capital Value of rating of 5A1, the highest achievable rating. . • In the last financial year ending 31st August 2014 they produced a Turnover of £38 per sq ft £215,350,000, a Pre Tax Profit of £35,377,000 and a Net Worth of £55,740,000. • Zodiac Seats have a large presence at Llantarnam Park including the adjacent 110,000 sq ft unit. Zodiac Seats have been in occupation for over 15 years. They are in full occupation and have recently carried out a significant refurbishment Further Information of the offices. For further information or to arrange • The property is rack rented but with a lack of modern competing stock there are a viewing please contact either: strong prospects for rental growth. • The quoting price of £2,160,000 offers an attractive net initial yield of 10% and a low capital value of £38 per sq ft which is in line with vacant possession value. • The short income profile offers the opportunity to add value once the break has either passed or been removed.

Gareth Lloyd Tel: 02920 440 141 [email protected]

Rob Jones Tel: 02920 440 128 [email protected] Subject to Contract & Exclusive of VAT February 2016

Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or Lambert Smith Hampton in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice.

Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names.

Photography: February 2016 Design by Martin Hopkins Partnership, Cardiff. Tel: 029 2046 1233 www.martinhopkins.co.uk