Multi-Let Industrial Investment Opportunity Penrhyn Court Penrhyn Road Knowsley Business Park L34 9AB Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Executive Summary • Penrhyn Court is an opportunity to acquire a modern, high specification multi-let industrial investment • It benefits from excellent road communications, strategically situated adjacent to both the A580 East Lancashire Road and junctions 4 & 5 of the M57 motorway which lead to the wider regional and national motorway network • Situated on a well-established, successful industrial and business park strategically located between Liverpool to the west and Manchester to the east • Modern industrial / warehouse accommodation with ancillary offices comprising 10 predominantly detached units extending to 95,170 sq ft (8,841.29 sq m) • 5 units let (which total a GIA of 43,325 sq ft), 5 units sold on long leases • Site of approximately 6.053 acres with a low site coverage of 31% • Total net income of £194,730 per annum with a potential ERV of £208,537 per annum • We are instructed to seek offers in excess of £2,362,500 (Two Million Three Hundred and Sixty Two Thousand Five Hundred Pounds) representing a Net Initial Yield of 7.75% and a Reversionary Yield of 8.30% (assuming purchaser’s costs of 6.36%) for our clients’ Freehold interest • A purchase at this level would represent a low capital value of £59 per sq ft (excluding the mezzanine areas) or £55 per sq ft overall Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Location Knowsley is situated approximately 11 miles east of Liverpool and 29 miles west of Manchester and has a borough wide population of 145,000 increasing to 1,500,000 people in the wider Liverpool city region. It is situated immediately to the east of junctions 4 & 5 of the M57 motorway and adjacent to the A580 East Lancashire Road providing immediate access to the regional and national motorway networks. Due to the excellent road communications and its strategic location between Liverpool and Manchester, Knowsley is one of the key industrial / warehousing locations in both Merseyside and the wider northwest region. The A580 East Lancashire Road links directly to Liverpool and Manchester and the M57 connects to the M62 approximately 5 miles to the south which in turns leads to the M6 and M60 motorways to the east. To the north the M57 connects29 to the M58 providing ease of access to the north Merseyside conurbation. 29 1 3 4 Both John Lennon and Manchester International Airports are within close proximity and combined with the regions rail and freight connections the wider Knowsley conurbation has attracted and retained occupiers such as Jaguar Land Rover, Virgin Media, DHL, Matalan, QVC, Home Bargains and News International. Buckshaw Village 8 CHORLEY M61 1 M6 A 5 A666 M66 20 8 C BURY 21 A58 D O 27 Horwich BOLTON 2 Wignall R O 20 To E P 3 E 6 A58 19 Park T Ormskirk R M58 A G S 5 R To M61 L M58 4 O 3 4 19 O A 5 3 17 J5 M6 & 26 20 M N 16 21 8 E Walkden 0 Manchester 1 14 Wardley 2 25 5 M57 A 7 The Property A580 SALFORD M6 12 D 24 1 2 ROA 3 ST LA NCS 6 A580 11 Eccles 80 E A M57 23 A5 4 10 23 Bootle Schoo The Property ST HELENS M62 MANCHESTER J4 Knowsley l 3 Lane Penryhn Road A58 22 11 Wallasey 102 10 6 A34 A5058 21A 26 1 A57 27 M62 9 A56 5 O ve 5 rbr 6 To B oo 7 4 5 k 1 3 2 19 La 2 21 3 2 1 4 S ne Kitling Road 25 Liverpool CHO OL Birkenhead A5300 A557 4 26 L AN 3 LIVERPOOL 5 E A562 M56 Ormskirk Road Widnes A56 20 8 6 Knowsley A41 J4 Prestatyn Speke 9 Business Park 4 Manchester 10 Airport KNOWSLEY Liverpool A533 River Mersey John Lennon 11 Airport A557 A34 12 19 5 6 M57 7 M6 8 Ellesmere Port 9 A533 A537 To M56 A556 14 A523 M62 A548 10 11 A49 15 NORTHWICH A541 Flint A41 A5119 A5117 A556 A54 A34 12 A533 18 A494 A51 A54 A49 CHESTER A55 Congleton 17 A494 Ruthin A50 A41 A51 A34 A530 A534 M6 A527 Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Situation Penrhyn Court is prominently located along Penrhyn Road, Knowsley Business Park, immediately to the south of A580 East Lancashire Road which provides direct access to Liverpool in the west and Manchester to the east. Junction 4 & 5 of the M57 are ½ mile to the west. Knowsley Business Park is an established quality business environment, which has seen numerous new developments in recent years. Combined with Knowsley Industrial Park they form one of the largest industrial areas in the country and is home to a diverse range of occupiers. Description The property comprises a high quality industrial / warehouse development comprising ten units arranged around a central courtyard area. Extending to 95,170 sq ft the estate provides a quality landscaped environment on a self-contained, regular shaped and secure site. The units are of steel portal framed construction under pitched roofs externally fully clad in profiled sheeting incorporating approximately 10% office content. The scheme offers a range of sizes between 5,715 sq ft – 12,155 sq ft arranged as a terrace of three (E1-E3), three detached (A1-A2, C1-C2 & D1-D2) and a standalone unit (B). The specification includes: • 7m clear internal height in units A, B and C • 6.5m clear internal height in units D and E • High quality offices including comfort cooling / heating, carpets, suspended ceiling incorporating light fittings, WC’s and showers • Unit B benefits from a ground source heat pump which contributed to office heating and reduces running costs • 37.5kn / m sq floor loading to warehouse / industrial areas • Generous car parking and concrete yard areas • Each unit provides a first floor area for light storage or potential office expansion Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Accommodation The estate provides a total of 95,170 sq ft (8,841.58 sq m) of accommodation across 10 Chimney units ranging in size between 5,715 – 12,155 sq ft. A full breakdown of the floor areas Sta is provided with the tenancy schedule. Five units (Units A1, B, C2, E1, E2) have been sold long leasehold (outlined blue on the OS plan) to tenants leaving 43,235 sq ft over 5 units remaining (Units A2, C1, D1, D2, E3). D1 D2 E1 E2 E3 Site Area El Sub Sta The site extends to a total area of approximately 2.449 ha (6.053 acres) reflecting a low site coverage of 31%. C2 A2 AD RO P N E Y N H R R N H E P Y N R O A D C1 A1 B VILLIERS ROAD Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Tenancy The property comprises ten units, five of which have been sold for a premium on a long leasehold basis. The remaining five are let to four tenants and currently produce a gross income of £194,730 per annum. Current passing rentals reflect between £4.41 psf to £5.24 psf. Based upon our opinion of ERV the estate has a total rental value of £208,537 pa. Each unit has elements of mezzanine space which for the purpose of ERV have not been rentalised. The service charge currently runs at £0.15 per sq ft and further detailed information can be supplied to interested parties. A full breakdown of individual leases can be found on the tenancy schedule below. All leases can be downloaded from our website www.gva.co.uk/9894. Areas Rent £pa (£psf) ERV £pa (£psf) Term Lease Lease Expiry Unit Tenant Demise Excludes Excludes Comments (Break) Start (Break) Sq M Sq Ft Mezzanine Mezzanine Expert Tool & Ground Floor 836.12 9,000 Unit A1 250 11/03/2015 10/03/2265 Peppercorn - Unit Sold on a long leasehold for £570,000 Holdings Ltd Mezzanine 85.93 925 Ground Floor 836.12 9,000 Further tenant break on 25/04/2019. Penalty applies if 25/04/2022 39,700 47,250 Unit A2 Portakabin Ltd 9 26/04/2013 break exercised. Outstanding rent review 26/04/2016 (25/04/2016) (4.41) (5.25) Mezzanine 85.93 925 Further rent review on 26/04/2019 Beverston Ground Floor 1,393.50 15,000 Unit Sold on a long leasehold Unit B 250 29/07/2011 28/07/2261 Peppercorn - Engineering Ltd Mezzanine 131.92 1,420 GIA includes Mezzanine level of 1,420 sq ft Central Electrical Ground Floor 1,040.01 11,195 The tenant has the option to acquire the unit on a 08/12/2023 54,690 58,774 Unit C1 Armature 10 09/12/2013 long leasehold basis at MV or £705,000 on or before (09/12/2018) (4.89) (5.25) Winding Co Ltd Mezzanine 89.18 960 09/03/2017. Review 09/12/2018 Paper 4 Print Ground Floor 1,040.01 11,195 Unit C2 250 09/02/2012 08/02/2262 Peppercorn - Unit Sold on a long leasehold for £600,000 Ltd Mezzanine 89.18 960 Unit D1 Ground Floor 1,300.63 14,000 5 18/01/2030 73,340 73,500 Med imaging Ltd 19/01/2015 Five yearly rent reviews. Tenant break on 19.01.2020 & D2 Mezzanine 133.77 1,440 (2.5) (19/01/2020) (5.24) (5.25) Ground Floor 650.30 7,000 Unit E1 Parkers 250 22/11/2010 21/11/2260 Peppercorn - Unit Sold on a long leasehold Mezzanine 66.88 720 Direct Vehicle Ground Floor 490.05 5,275 Unit E2 250 08/04/2016 07/04/2266 Peppercorn - Unit Sold on along leasehold for £333,000 Glass Ltd Mezzanine 40.87 440 Forlad Ltd (t/a Ground Floor 490.05 5,275 27,000 29,013 Unit E3 10 01/06/2009 31/05/2019 Outstanding rent review Green Thumb) Mezzanine 40.87 440 (5.12) (5.50) TOTAL 8,841.29 95,170 194,730 208,537 Penrhyn Court, Penrhyn Road, Knowsley Business Park, L34 9AB Further Information Tenant Covenants Gurminder Manak The property is let to a range of covenants as detailed below.