HIGH YIELDING OFFICE / LABORATORY INVESTMENT OPPORTUNITY NEWTECH SQUARE FIRST AVENUE, ZONE 2 DEESIDE INDUSTRIAL PARK, DEESIDE, FLINTSHIRE, CH5 2NT INVESTMENT SUMMARY
• Situated on Deeside Industrial Park, one of the principal commercial locations within the North West
• Detached 23,713 sq ft office unit, including laboratory and storage accommodation together with the freehold of the wider Newtech Square.
• Large site of approximately 7.19 acres, providing a low density, well landscaped environment.
• Let to Reacta Biotech Limited on a 10 year lease from 15 June 2018, subject to tenant only break options in June 2021 and 2024.
• Low rent of just £95,000 per annum (£4.00 psf).
• Fixed rental uplifts to £100,000 per annum (June 2020) and £110,000 per annum (June 2022), with a further review to OMR in June 2023.
• Freehold.
• Future asset management opportunities.
• Offers sought in excess of£750,000 (Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT.
• A purchase at this level would reflect the following (assuming purchaser’s costs of 5.40%)
• Net initial yield – 12.00% • Reversionary yield (June 2020) – 12.65% • Reversionary yield (June 2022) – 13.92% • Low capital value £31.62 per sq ft
HIGH YIELDING OFFICE / NEWTECH SQUARE LABORATORY INVESTMENT FIRST AVENUE, ZONE 2 DEESIDE INDUSTRIAL PARK, OPPORTUNITY DEESIDE, FLINTSHIRE, CH5 2NT TO M56 + LIVERPOOL DEESIDE INDUSTRIAL PARK
A494 A548 TO A55 + CHESTER BP, SUBWAY, STARBUCKS WESTBRIDGE FURNITURE & BURGER KING CALBEE
ICELAND FOODS MERCEDES BENZ
MM PACKAGING NEWTECH SQUARE ATLAS COPCO PARKWAY AIRFIELDS DEVELOPMENT SITE TNT
DEESIDE CEREALS MM PACKAGING
BALL PACKAGING
EDGE TRANSPORT
QUAY PHARMACEUTICALS 1 M6 A666 M66
BURY A58 27 BOLTON 2 3 6 LOCATIONA58 19
5 Deeside is a major North West commercial location, M58 4 positioned approximately 7 miles to the North West of 3 4 19 5 26 Chester, 163 milesM61 South of Liverpool17 and 42 miles20 west of Manchester1 on the16 A550 and A548. Walkden 15 1 A580The area benefits14 Wardley from excellent transport infrastructure 25 as follows: 7 M6 SALFORD 12 24 1 2 Road 3 Deeside Industrial Park is approximately 2 miles from 6 A580 11 Eccles M57 23 M62Junction 16 of the M56, whilst Junctions 5 and 10 of 4 10 Bootle the M53 are within 5 miles, providing access to the ST HELENS regional and national motorway network. Connections to North WalesMANCHESTER are also excellent via the A55 North Wallasey Port of Liverpool 3 102 22 11 Wales Expressway. This connectivity enables over 2 10 million peopleM60 to be within6 a 30 minuteA34 commute of A5058 M62 21A 1 9 Deeside. A56 5 5 8 6 7 LIVERPOOL 1 4 2 2 A557 21 Air 3 2 1 3 Manchester International Airport and Liverpool John Birkenhead WARRINGTON A5300 Lennon Airport are within 45 minutes’ drive from 4 3 Deeside. 5 A562 Widnes 20 8 M56 6 A41 A56 Rail 7 Speke 9 Deeside is served by both FlintManchester and Chester railway M53 4 Airport 10 stations, providing a regular rail service to London Runcorn A533 Bromborough River Mersey Liverpool 11 A556Euston with a journey time of approximately 2 hours, John Lennon 5 minutes. Airport A557 12 19 5 6 Sea 7 The Port of Liverpool is located 25 miles North of 8 Ellesmere Port 9 A533 Deeside and is ranked amongA537 Britain’s major container M56 ports. It isM6 the country’s major gatewayA34 for trade with the United States and Canada, serving more than 100 14 DEESIDE INDUSTRIAL PARK 10 global destinations and has recently benefited from £400m worth of investment to create a new deep sea 11 A49 15 container terminal known as Liverpool2. A41 A5117 A556 A54 NORTHWICH A55 NORTH WALES 12 EXPRESSWAY 18 A494 A51 A54 A49 CHESTER
A55 NORTH WALES EXPRESSWAY 17
A50 A41 A51 A34 A530 A534
A534 A534
16 A500 A500 A41 A49
A51 A34 SITUATION M56 ZONE 2 4 & TO A49 D Deeside Industrial Park is one of the most significant commercial locations in SHOTWICK ROA ES the North West, comprising over 5 Million sq ft of business accommodation TO NORTH WAL on a site totalling in excess of 600 acres (243 hectares). CONVATEC The highly successful park was established in the 1970’s and is divided into 4 distinct zones. Newtech Square is situated in a prominent position within BP, STARBUCKS DRIVE C
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Deeside Industrial Park, fronting on to First Avenue which is accessed via ICELAND AND GREGGS A
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Parkway, one of the main arterial routes through Zone 2. R
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I R DEESIDE ENTERPRISE ZONE D SOLEIL FOOD The property is located within the Deeside Enterprise Zone, providing first- SERVICE FIRST AVENUE class business infrastructure and supporting businesses through Enhanced SECOND AVENUE Capital Allowances and Business Rate Relief incentives. Deeside Enterprise 2 NEWTECH SQUARE MAGELLAN
Zone is already the preferred location for many of the UK’s top company’s E MM PACKAGING WESTBRIDGE such as Airbus, Tata Steel, Morrisons, Iceland, Mercedes Benz and Great U ATLAS N FURNITURE
A E 5 COPCO 4 A
Bear amongst many others. Further information can be found at V
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www.businesswales.gov.wales/enterprisezones W
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DEESIDE CEREALS A R
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L A T E R E W E U 0 R 5 O
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V 8 SHOTWICK A54 RD A
NEWTECH SQUARE A494 H MM ATLAS 8
T 4 A 5 548 R PACKAGING COPCO A
U DEESIDE Y A O INSUTRIAL PARK 5
A 40 F
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CH K UR THIRD AVEN E
R U CH S D TRE A A RO ET P G LL O I L H F A Y E N S 4
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N 4 E E R A M I T CH A ES G A E 548 T S R E EAL OA R R AND O ROA D ROAD A D LD D 1 6 MO W 4 B512 E 4 S 5 T B
QUEENSFERRY F AC A TO R 54 Y R 8 B O 5125 A D
A B BALL 55 5 1 2 9 PACKAGING C SITUATED IN THE HEART B512 4 H 5 9 E 4 S A T ER SANDY CROFT R O 0 OF ZONE 2 DEESIDE A 5 D 5 NE A A L B OR 51 B O 29 A 51 M INDUSTRIAL PARK, 55 25 D A E O
B R AN
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HAWARDEN 1 A O 2 ONE OF THE PRINCIPLE
OD B 9 4 O 5 O 5 9 1 A4 P 5 W 2 R 5 E N HAWARDEN E A L AIRPORT LIV R COMMERCIAL LOCATIONS O N 7 A 2 M 1 5 B WITHIN THE NORTH WEST
DESCRIPTION
The property comprises a detached, single storey unit constructed in the early 1990s providing a mixture of office, laboratory and storage space within a low density, well landscaped environment.
It has been constructed as two distinct units, joined via two linkways offering the flexibility to provide multiple occupation in the future. It provides a good specification including:
• Steel frame construction with brick elevations • Pitched tiled roof • Glazing to all elevations • Gas fired central heating, perimeter trunking, air cooling units and part suspended ceilings. • 2 ground level access doors • 59 dedicated parking spaces (excellent ratio of 1:401 sq ft).
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas:
Description Area (sq m) Area (sq ft) Ground Floor 2,203 23,713
NEWTECH SQUARE FIRST AVENUE, ZONE 2 DEESIDE INDUSTRIAL PARK, DEESIDE, FLINTSHIRE, CH5 2NT TENURE
Freehold.
The demise includes the wider freehold of Newtech Square and extends to approximately 7.19 acres (2.91 hectares).
Please note that the area shaded blue is excluded from the sale whilst the area shaded green has been sold long-leasehold.
Unit 1 Previously Sold Freehold (excluded from sale) UNIT 2 Unit 2 Occupational Lease Demise
Unit 3 Previously Sold Long-Leasehold (excluded from sale)
UNIT 1
NEWTECH SQUARE 3 NEWTECH SQUARE UNIT 3
FIRST AVENUE
RIGHT OF ACCESS
FOR INDICATIVE PURPOSES ONLY
UNIT 90 TENANCY
The property is let to Reacta Biotech Limited on a 10 year lease, commencing 15 June 2018, subject to a tenant option to break on 15 June 2021 and 13 June 2024.
• The current passing rent is £90,000 per annum, subject to the following fixed rental uplifts: • 15 June 2019: £95,000 per annum • 15 June 2020: £100,000 per annum • 15 June 2022: £120,000 per annum • The rent will be topped up by the vendor to the initial uplift of £95,000 per annum, reflecting just £4.00 per sq ft. • There is an additional upwards only rent review in year 5 to open market rent. • The lease is held on full repairing and insuring terms, subject to a schedule of condition. • Outside the 1954 Landlord and Tenant Act. • The tenant has paid a rent deposit of £22,500 plus VAT (6 months rent).
TENANT COVENANT
Reacta Biotech Limited were incorporated in June 2013 and specialises in manufacturing items of food containing specific allergens which are then used for research to test tolerance to such allergens. Their main market for export is the US.
The company have gained regulatory approval of oral food challenge materials in various jurisdictions and provides a gold standard for clinical food allergy testing.
Reacta Biotech Limited has published the following accounts:
Year End Year End Year End 31/12/2017 31/12/2016 31/12/2015 Tangible Net Worth £40,701 £51,213 £169,173 Net Current Assets £15,854 £40,841 £158,124
Further information can be found at www.reactabiotech.co.uk ASSET MANAGEMENT EPC
• Look to re-gear the lease with the tenant to remove the break options The property has an EPC • Seek to acquire Units 1 & 3 Newtech Square, resulting in a ringfenced rating of E (102). estate. • Long term redevelopment of Newtech Square (subject to planning) • Improve the branding and identity of Newtech Square VAT
The property is elected for SERVICE CHARGE VAT and it is the intention to treat the transaction as a A service charge is administered throughout Newtech Square to include Transfer of a Going Concern security, cleaning and environmental services, communal maintenance, (TOGC). communal utilities and management fees.
The service charge budget for the year ending 31st March 2019 reflects £14,826 (£0.20 per sq ft). PROPOSAL FURTHER INFORMATION
We are instructed to seek offers in excess of£750,000 (Seven Hundred and Fifty Thousand Pounds) For further information please contact: subject to contract and exclusive of VAT. John Burrows Stephen Wade A purchase at this level would reflect the following (assuming purchaser’s costs of 5.40%): B8RE Legat Owen 01925 320520 01244 408216 • Net initial yield – 12.00% 07921 137200 07779 657799 • Reversionary yield (June 2020) – 12.65% [email protected] [email protected] • Reversionary yield (June 2022) – 13.92% • Low capital value £31.62 per sq ft
NEWTECH SQUARE FIRST AVENUE, ZONE 2 DEESIDE INDUSTRIAL PARK, DEESIDE, FLINTSHIRE, CH5 2NT
Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. January 2019. RB&Co 0161 833 0555. www.richardbarber.co.uk