M6
Lancaster New Heysham to M6 link road
A683
New Junction
A683
Heysham
GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB
Prominent industrial high-bay warehouse investment
thinkcapitarealestate.uk GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Investment Summary —— Lancaster is strategically located in the North West of England, with direct access to Heysham Port, the M6 and national West Coast Mainline rail links. —— White Lund Industrial Estate is the main employment area in the Lancaster District with significant future growth from improved infrastructure and an expanding nuclear and wind power industry accessed via Heysham Port. —— Prime industrial warehouse unit, with a prominent frontage to the A683, Southgate and Mellishaw Lane situated between Morecambe and Lancaster. —— The property which could provide a single-let distribution unit, having previously been Reebok’s HQ, has been split up to form 6 self-contained, multi-let units. —— Originally constructed in the 1970’s, in 1994 a substantial high-bay extension was added, with associated fuel tank and yard. —— GIA of 266,241 sq ft (180,423 sq ft excluding mezzanines) —— The property sits on a total site area of 10.48 acres (4.24 hectares) —— Passing rent of £599,994 per annum, this equates to £2.25 psf. —— The property is held Freehold.
We are seeking offers in the region of £5,970,000 (Five Million Nine Hundred and Seventy Thousand Pounds), which equates to a Net Initial Yield of 9.50% and a Reversionary Yield (after June 2016 fixed uplifts) of 9.71%. At this level it would provide a Capital Value of £33.09 psf (not including Tenants mezzanine). Subject to contract and after standard purchasers costs of 5.80%.
2 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Location
Lancaster is a renowned university city situated in Lancashire in the North West of England, 4.7 miles north west of Junctions 22 and 2.2 miles south west of Junction 34 of the M6 motorway, which runs from Carlisle in the north to Coventry via Birmingham in the south. It is situated Kendal opposite Lancaster Retail Park, 64 miles west of Leeds, 49 miles north west of Manchester and 50 miles north of Liverpool and Warrington.
Destination Fastest Journey Time Preston 17 minutes M6 Warrington 37 minutes Barrow - in - Furness A65 Manchester 51 minutes Gateway Manchester Airport 1 hour 7 minutes London 2 hours 25 mintues
Lancaster Railway Station is served by the West Coast Mainline (please see table for fastest journey times). Blackpool Leeds Preston Local Growth Industries/Infrastructure Blackburn
New Heysham to M6 Link Road Leyland M62 The new link road, which will significantly improve access to the estate, is due to complete in Southport summer 2016, with some sections due to open sooner. The works will link White Lund Industrial Estate directly with Junction 34 of the M6 via the new Northgate/A683 junction to the north of Bolton White Lund Industrial Estate. Wigan M60
Heysham Port Manchester M6 Heysham Port is perfectly positioned between Britain and Ireland, controlled by Peel Groups it M62 commands a strong influence over the Irish Sea Network providing a 24 hour gateway for Irish Sea Liverpool Warrington Ferries freight and passenger services. Home to two nuclear power stations, with plans for a third, M56 the port also forms a major offshore supply base for one of the largest gas fields in British waters, and is ideally located to do the same for the future Celtic Array offshore wind farm development.,
Nuclear Power Industry Heysham Nuclear Power Station, which is made up of two separate power stations, with plans for a third in the future is a huge driver of the economy in Lancashire. The improved access between the M6 and the nuclear power station sites at the port of Heysham, will continue to improve drive demand for industrial space at White Lund Industrial Estate. 3 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Situation
White Lund is the principal employment area and industrial estate within the Lancaster District extending over 247.7 acres between Morecambe and Lancaster. The estate M6 provides, in general, smaller business to the west and modern larger units with national businesses to the east, it is characterised by a long history of high occupational levels. Marine Rd Morecambe A683
Gateway provides a striking landmark building which was previously used as Reebok’s A584 Lancaster Rd headquarters before they relocated in 2008. It is situated on the south eastern edge of New Heysham to M6 link road J34 White Lund Industrial Estate 2 miles north west of Lancaster City Centre, in a prominent Northgate position at the junctions of Southgate (one of the main estate roads), Mellishaw Lane and White Lund the A683 (South Morecambe bypass). A683 Mellishaw Lane Gateway
Directly south of the site on the opposite side of Mellishaw Lane is Lancaster Retail Park which includes SportDirect.com, Wickes, and Matalan. A683 Lancaster
Port of Heysham Other local occupiers include Topps Tiles, Bookers, Grahams, McDonalds, Stagecoach, Morecambe Metals, Volker Brooks and Asda.
New Junction Volvo A6
Topps A683 Tiles Nissan & Gap White Lund Renault & Hyundai Peugeot
Enterprise Trade Park University Screwpix Lancaster Plumb Centre M6
Northgate
Howdens Yess Electrical Graham River Lune Toyota & Gateway Speedy Cintron Middlegate A683 Hire Skoda Southgate Wickes Europcar J33 Southgate Trade Park Edmondson F & Sons
Lancaster Retail Park Mellishaw Lane
4 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Description
The property, which has been subdivided into 6 fully-let self-contained units, comprises Externally there are 3 entrances to the site, in the North West, North East and South West a substantial distribution warehouse originally developed in the 1970’s with a substantial corner of the site where there is a security lodge of 1,000 sq ft (93 sq m). high-bay extension added in 1994. The specification includes: The property provides loading yards, a lorry parking area and approximately 111 car —— Steel portal frame construction parking spaces secured by a steel post mesh fence and CCTV system. In the south eastern —— Profile metal sheet cladding corner of the site, on site 3 is a card operated fuel tank (tenant addition), which is used —— Roof clad with profile metal sheet cladding incorporating translucent panels and managed by a local distributor. Site 2 had historical plannig for a new entrance off Mellishaw lane. —— Solid concrete floor with movement joints —— A mix of ceiling mounted sodium box lighting and fluorescent strip lighting —— Minimum eaves height: - 1970’s – 5.7 metres - 1994 – 16 metres (includes Unit 4 and part of Unit 5) —— Sprinkler system throughout with two water tanks and pump house to the rear —— Hot air blower units
Units Specification
4 dock level loading door, 1 roller shutter door, to the southern facade and a substantial 1 mezzanine, which has been converted to offices (tenants improvement).
2A 1 dock level loading door to the northern facade. A self-contained office building over two storeys, including suspended ceilings, 2B perimeter trunking, central heating via wall mounted radiators and male and female WC’s. 1 roller shutter door to the northern facade and a mezzanine converted to office’s, which 3 links through to Unit 2B.
Rev Date Description Chkd By Status: A new loading bay with 3 dock level loading doors to the eastern facade and a LEASE MAP - MASTER PLAN This drawing is the property of ODM Building Surveyors & Engineers Ltd. The information contained herein must not be used, reproduced, disclosed or circulated in whole or in part without written consent. 4 substantial 4 storey mezzanine floor of steel frame construction incorporating stairs, a All written dimensions to be checked on site prior to the production of any components.
Joseph Cotter pallet lift and sprinkler system throughout. BEng (Hons) Civil Engineering
19 Ard Na Si, Tel: 0879749717 Lis Na Dara, Carrick Road, Dundalk, Co. Louth.
Client: THE COMPLETE SERVICE LTD
3 roller shutter doors to the southern facade. Tenant has installed 2x 5 tonne Gantry Project Title: PROPOSED SUB-DIVISION OF EXISTING WAREHOUSE AT SOUTHGATE, WHITE LUND 5 INDUSTRIAL ESTATE, LANCASTER. Cranes and other heavy lifting equipment. Drawing Title: Lease Map - Master Plan
Scale Drawn By Chkd By Date SITE LAYOUT MAP 1:1000 JC JC 20/07/15 Scale 1/1000 Project No. Drawing No. Rev.
5 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Accommodation The property is designated for B1, B2 and B8 uses and comprises a large industrial unit extended with a high bay distribution unit with loading yards to the front, side and rear and associated fuel tanks. The Gross Internal Area has been taken from CAD plans and measured in line with the RICS Code of Measuring Practice, they provide:
Description Sq Ft Sq M Unit 1 56,629 5,261 Unit 1 Mezzanine 20,634 1,917 Unit 2A 24,345 2,262 Unit 2B (offices) 4,424 411 Unit 3 15,296 1,421 Unit 4 (Total GF) 44,563 6,056 Unit 4 Mezzanine 65,184 6,056 Unit 5 35,166 3,267 TOTAL 266,241 24,734 TOTAL (excluding mezzanine) 180,423 16,762
Site Area The property occupies a self-contained site of 10.48 acres (4.24 hectares). GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Tenancy Schedule
Unit Tenant Sq Ft Lease Start Lease End Break Rent Review Rent (pa) Rent (psf) Comments
1 56,629
SHP Ltd 02/03/2011 01/03/2021 £155,730 £2.75 Tenant recently served option to purchase mezzanine due to spending 1 (Tenants Mezzanine) 20,634 significant monies on office space.
2A *2 TCS (The Complete Services) Ltd 24,345 On sale 10 years 5 years £66,949 £2.75 Vendor offering a leaseback upon sale. Schedule of conditions.
2B Baltec Ltd 4,424 11/08/2011 23/06/2021 24/06/2016 11/06/2016* 1 £15,000 £3.39 Tenant break not served. Uplift in June agreed at £16,500 pa.
3 Baltec Ltd 15,296 08/11/2012 23/06/2021 24/06/2016 11/06/2016* 1 £43,700 £2.86 Tenant break not served. Uplift in June agreed at £46,000 pa.
4 44,563 On sale 10 years 5 years £144,829 £3.25 Vendor offering a leaseback upon sale. Schedule of conditions. TCS (The Complete Services) Ltd 4 ( Tenants Mezzanine) 65,184
Tenant break not served. Uplift in June agreed at £123,000 pa. 5 Baltec Ltd 35,166 24/06/2011 23/06/2021 24/06/2016 24/06/2016* 1 £114,286 £3.25 Original Lease. Site 1: Baltec Ltd 01/05/2012 23/06/2021 24/06/2016 24/06/2016* 1 £32,000 Uplift in June agreed at £33,000 pa. Yard Area (License) Site 3: Lancaster Fuels t/a Morgan Fuels 03/11/2013 01/11/2016 £10,000 Rent is estimated based on turnover. Fuel - Bunkering Charge Site: 4 Used by adjacent land owner as car storage, to the east of the site. D Stoker Group Ltd 02/11/2015 01/11/2025 01/11/2020 01/11/2020 £17,500 Car Storage Mutual break requiring 6 month notice.
TOTAL 266,241 £599,994 £2.25
TOTAL (after June 2016 Rental uplifts) £613,589 £2.30
*1 Rent review uplifts have been agreed. *2 UK Power Reserve Ltd have an Option Agreement in place expiring 05/05/2016, with an option to extend by no more than 3 months at a time, on a month by month basis at a cost to them of £6,666.
Tenure Freehold.
7 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Industrial & Investment Market
Industrial Market The North West region provides an excellent communication network by road, air and sea, has a growing population (which currently stands at approximately seven million people) and has seen continued investment into the region’s infrastructure. These include Peel’s Liverpool2 new deep sea port facility, the new Heysham to M6 link road and the continued growth of Manchester International Airport.
Take up for the North West industrial market in 2014 was over four million sq ft, one of the highest in the UK, marking the fifth successive year of above average occupier demand. Take up continued to perform strongly throughout 2015, with demand exceeding the amount of warehouse space available.
Investment Market The North West industrial investment market continues to benefit from significant infrastructure investments, improved economic conditions and strong occupier demand providing rental growth.
Date Property Tenant AWULT (break) Sq Ft Rent Price CV / sq.ft Initial Yield
Dec 15 Eddie Stobart, Warrington Eddie Stobart 10.0 376,228 £1,865,780 £21.4m £57 8.24%
Nov 15 1001-1004 Sarus Court, Manor Park, Runcorn Multi-Let 4.10 56,153 £284,924 £3.365m £60 8.00%
Nov 15 Crossley Park, Stockport Multi-Let 304,711 £983,399 £11.0m £36 8.45%
Nov 15 Stakehill Industrial Estate, Middleton Aldi 0.33 150,000 £891,682 £8.6m £57 9.80%
Oct 15 Edison Point, Edison Road, Runcorn Kuehne & Nagel 5.00 103,607 £336,723 £4.8m £46 6.63%
Sep 15 One 100 Road, Winsford Industrial Estate Howard Tenens 9.75 103,607 £336,723 £4.8m £46 6.63%
8 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Tenant Overview and Covenant Informationion D Stoker Group (Company No. 00702156) DSG is the trading name for D Stoker Group Ltd who have been trading used cars in Morecambe Bay, Lake District and Furness Peninsular for over 50 years. They represent franchises for Renault, TCS The Complete Services Ltd (Company No. N1060983) Vauxhall, Hyundai & Dacia. The Morecambe operation, adjacent to the property, is home to The vendor will be providing leasebacks on sale on two units for their furniture distribution company and Renault, Hyundai & Dacia and offers full sales, aftersales and Class IV & VII MOT facilities. carpet wholesaler. TCS is the UK and Irelands’ fastest growing furniture supplier. TCS manufacture a wide Website: http://www.dsgautomart.co.uk range of Italian leather sofas, designer sofa beds, corner sofas suites and fabric sofa settees across UK and Ireland. UK Power Reserve Ltd (Company No. 07385282) Website: http://www.tcsimports.com Established in 2010, UK Power Reserve is the leading independent developer and operator of smart, flexible power generation in the United Kingdom. They provide balancing services, site SHP Ltd (Company No. D4736549) purchasing, operations, plant design and grid connections as part of a service which maintains Established in 2001, SHP Limited is a leading UK electronics recycling company. They recover and recycle security of supply and supports a renewable future. Heavily invested in South Wales and waste electrical and electronic equipment (WEEE). Their services include computer and IT disposal, Yorkshire, they also have operations at the Gas Fired CHP Power Station facility located in mobile phone, tablet, laptop, PC and other IT recycling, and similar electronic devices for recycling under Manchester. the European WEEE Directive. Website: www.ukpowerreserve.com Website: http://shplimited.co.uk Date of Latest Total Pre-Tax Shareholder Experian* Credit Balltec Ltd (Company No. 05188491) Accounts Turnover Profit funds Risk Established in 2004, Balltec designs, manufactures and tests (on site) high load, high integrity mechanical TCS The connectors for application in the oil, gas and renewable industries. Core products include tools for Complete 31/12/2013 n/a n/a £1,412,673 Above Average mooring, pipeline recovery, heavy lifting and diverless bend stiffener connectors. Service Ltd Website: http://www.balltec.com SHP Ltd 31/12/2014 n/a n/a £296,018 Below Average
Balltec Ltd 31/12/2013 £16,829,386 £607,174 £3,554,177 Low Risk Morgan Fuels & Lubes Ltd (Company No. N1020579) Established in 1981 Morgan Fuels is one of the fastest growing fuel companies in Europe and provides the DSG Ltd 31/12/2013 £22,332,770 £603,164 £3,060,051 Very Low Risk fastest growing bunker network in the UK. It provides a fuel card services (on site), bulk fuels, lubricants UK Power and capital equipment to commercial, agricultural, retail and domestic customers. 31/03/2014 £14,900,200 £3,387,759 £31,167,294 Low Risk Reserve Ltd Website: https://www.morganfuels.com Morgan Fuels 23/03/2014 £31,645,428 £60,042 -£254,368 Above Average & Lubes Lts
9 GATEWAY, White Lund Industrial Estate, Lancaster, LA3 3PB | Prominent industrial high-bay warehouse investment
Further Information
VAT The property is elected for VAT. It is intended the sale will be undertaken as a Transfer of Going Concern.
Service Charge Service charge information is available on request.
EPC EPC’s are available on request.
Proposal
Investment Rationale
—— Ex-Reebok Headquarters providing a predominantly modern high-bay industrial warehouse investment, the only high bay warehouse in the region —— Significant infrastructure and economical investment in the area including the new Heysham to M6 link road, Heysham Port, and developments in the energy sector —— Minimum rental uplifts, with further rental growth prospects —— Potential for additional units to be added on site with new entrance off Mellishaw Lane, subject to planning —— High yielding, low capital value
Pricing We are seeking offers in the region of £5,970,000 (Five Million Nine Hundred and Seventy Thousand Pounds), which equates to a Net Initial Yield of 9.50% and a Reversionary Yield (after June 2016 fixed uplifts) of 9.71%. At this level it would provide a Capital Value of £33.09 psf (not including Tenants mezzanine). Subject to contract and after standard purchasers costs of 5.80%. Further Information For further information or to arrange an inspection, please contact:
CP Property Consultants Jonathan Brown Andrew Richardson Colin Chivers 07736 491 004 0161 819 4234 01925 596 560 [email protected] 07544 588 768 07774 643 571 [email protected] [email protected]
thinkcapitarealestate.uk
Capita Property & infrastructure Ltd (“CPI”), trading as Capita, for itself and as agent for the vendors or lessors (the “Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on the part of CPI or the Seller, (b) no such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements, particulars (3) The Seller does not make or give, and neither CPI nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the incidence of VAT. (5) No liability is accepted and no representation is made by either CPI or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CPI would otherwise have for any fraudulent concealment or for any statements made fraudulently by it, its employees or agents. © Capita March 2016.