bloxwich industrial estate, bloxwich lane west … bloxwich industrial estate... · strategically...

STRATEGICALLY LOCATED MULTI-LET INDUSTRIAL INVESTMENT WITH RENTAL GROWTH POTENTIAL

WALSALLBLOXWICH INDUSTRIAL ESTATE, BLOXWICH LANE

WEST MIDLANDS, WS2 8TF

M6

J10

WALSALL BLOXWICH INDUSTRIAL ESTATE, BLOXWICH LANE, WEST MIDLANDS, WS2 8TF

INVESTMENT SUMMARY

Walsall is one of the principal commercial centres within the West Midlands conurbation.

The property occupies a strategic location less than 300m from junction 10 of the M6 motorway.

Bloxwich Industrial Estate comprises seven industrial/warehouse units extending to 143,086 sq ft (13,293.14 sq m).

The property is let to seven tenants providing a total rental income of £517,575 per annum, reflecting an average rent of £3.57 per sq ft (excluding mast income).

Highly reversionary with an estimated rental value in the order of £712,500 per annum.

Attractive AWULT of 8.00 years to expiry and 5.45 years to break.

Clear internal eaves height of 5.4 metres.

Freehold.

We are instructed to seek offers in excess of £7,465,000 (Seven Million, Four Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 6.50%, a reversionary yield of 8.95% and a low capital value of £52 per sq ft, assuming standard purchasers costs of 6.66%.

M6

M1

M1

M1

M1

M1

M69

M45

M6

M6

M5 M6

M6

M5

M5

M5

M42

M42

M40

M50

M40

M40

M6 Toll

M54

A51

A51

A52

A34

A51

A50

A53

A53

A41

A45

A46

A34

A34

A44

A44

A44

A44

A43

A46

A46

A46

A43

A6

A14

A5

A5

A5

A5

A5

A38A42

A50

A38

A60

A17

A46

A46

A47

A50

A52

A41

A518

A518

A454

A435

A435

A422

A429A423

A422

A421

A422

A428

A508

A509

A509

A508

A423

A426

A425

A429

A442

A458

A448

A449

A500

A520

A515

A515

A460

A444

A427

A518

A610

A606

A606

A607

Nuneaton

Tamworth

Cannock

StaffordBurton

upton Trent

Ashby-de-la-ZouchLoughborough

Leicester

MeltonMowbray

Oakham

Grantham

Newark-on-Trent

Nottingham

AshbourneStoke-on-Trent

Crewe

Bridgnorth

BIRMINGHAM CorbyMarket

Harborough

Northampton

MiltonKeynes

Rugby

Daventry

Coventry

RoyalLeamington Spa

Redditch

Kidderminster

Worcester

Evesham

Stratford-upon-Avon

Banbury

WALSALL

M6

J10 A454

WOLVERHAMPTON ROAD A454 WOLVERHAMPTON RD

A454 BLACK COUNTRY ROUTE

BLO

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BLO

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BENTLEY LAN

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BENTLEY LANE BENTLEY LANE

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MOAT ROAD

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POPLAR AVENU

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CHURCHILL AVEN U E

CHURCHILL AVENUE

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WILK

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REEDSWOODPARK

M6

J10

LOCATIONWalsall is one of the principal commercial centres within the West Midlands conurbation and is situated approximately 10 miles (16 km) north-west of Birmingham, 8 miles (13 km) east of Wolverhampton and 5 miles (8 km) north of West Bromwich. London is 128 miles (205 km) to the south east.

ROADWalsall benefits from excellent road communications being situated approximately 3 miles (4.8km) north of the M5/M6 motorway interchange, 5 miles (8km) south-east of the M54 and 6 miles (9.6km) south of the M6 Toll Motorway, providing direct access to Birmingham and the national motorway network.

RAILWalsall Railway Station is situated in the town centre and offers fast and frequent direct services to Birmingham (New Street) with a fastest journey time of approximately 20 minutes, as well as direct services to Wolverhampton and the wider Midlands area. Furthermore, regular rail services to London Euston take approximately 2 hours.

AIRBirmingham International Airport is located approximately 23 miles (37km) to the south east providing international flights to over 150 destinations. A record 11.6 million passengers passed through the airport in 2016.

SITUATIONBloxwich Industrial Estate is situated approximately 2 miles (3.2 km) north west of Walsall and occupies a strategic location less than 300m from junction 10 of the M6 motorway (via the A454 Wolverhampton Road dual carriageway). The M54 and M6 Toll motorways are located 4.5 miles (7.2 km) and 6.5 miles (10.4 km) to the north respectively and the M5 motorway is located 4.2 miles (6.7 km) to the south.

There are planned major road improvement works to Junction 10 which in turn will greatly benefit the sites long-term connectivity appeal given its close proximity. The scheme is set to commence in 2018 with practical completion forecasted for 2020.

The subject property is accessed from Bloxwich Lane and is surrounded by industrial and trade uses. Maple Leaf and Bentley Lane industrial estates are located in close proximity together with the Blakemore Wholesale warehouse. Major occupiers in the vicinity include Brownhills Glass, Wienerberger and Interserve.


DESCRIPTIONBloxwich Industrial Estate was built in the 1980’s and comprises seven industrial/warehouse units arranged as a single terrace extending to 143,086 sq ft (13,293.14 sq m).

All units are of steel from construction with part brick/part steel profiled elevations and pitched roofs. The units benefit from a minimum internal eaves height of 5.4 metres and benefit from roller shutter door access at the front and rear together with integral office accommodation. Servicing and parking is to the front of each unit.

The site benefits from secure perimeter fencing and two shared car parks at the front of the estate providing an additional 115 spaces. There is a third car park at the eastern end of the site which is solely used by Arenko Desert Sensation Ltd.

ACCOMMODATION

Unit Tenant Sq Ft Sq M

1 Chamberlin & Hill Castings Ltd 20,478 1,902.47

2 Andrew Blunt t/a Mark Andrews Used Cars 20,252 1,881.47

3 Andrew Blunt t/a Mark Andrews Used Cars 21,245 1,973.73

4 Polish Bakery Mazowsze Ltd 20,368 1,892.25

5 Arenko Desert Sensation Ltd 20,246 1,880.92

6 Accord Housing Association Ltd 20,246 1,880.92

7 Tube Bend Form International Ltd 20,521 1,881.38

Total 143,086 13,293.14



SITE

The property sits on a site of 7.5 acres (3.02 hectares) with a low site cover of approximately 44%.

TENURE

The property is held freehold. A small area of land has been sold off (hatched in blue) to Severn Trent Water Ltd.

TENANCYThe property is let to seven tenants (in accordance with the tenancy schedule below) providing a total rental income of £517,575 per annum. The AWULT to expiry is 8.0 years to expiry and 5.45 years to break. The vendor will top up any outstanding rent free periods.

Boro C

onst & W

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Anso

n Br

anch

Anson Bridge

Gantry

WOLVERHAMPTON ROAD

BLOXWICH LANE

WOLVERHAMPTON ROAD

WB

ESS

El Sub Sta

ETL

Bridge Inn

476

War

ehou

se

492

Warehouse

Garage460

468482

484

448

482b

452

444

Sney

d Bro

ok

(PH)

438

434

440

CommunicationMast

Maple Leaf

19

Industrial Estate

7

1

Allot Gdns

0m 25m 50m 75m

Unit Tenant Measured Area Lease Start Lease Expiry Rent Review Break Rent (pa) Rent (psf)

ERV (pa) ERV (psf)

L&T Act 1954

Sch of Cond.

Comments(sq ft) (sq m)

Unit 1 Chamberlin & Hill Castings Ltd 20,478 1,902.47 21/11/2016 20/11/2026 21/11/2021 - £87,500 £4.27 £107,509 £5.25 Inside No Surety from Chamberlin Plc. Rent review greater of OMV or RPI.

Unit 2 Andrew Blunt t/a Mark Andrews Used Cars

20,252 1,881.47 09/05/2016 29/03/2021 - 30/03/2019 £60,756 £3.00 £60,756 £3.00 Inside No Tenant currently occupies under a Tenancy At Will producing £70,320 pa inclusive of rent, rates and service charge. In legals to take a lease co-terminus with Unit 3 at £60,756 pax.

Unit 3 Andrew Blunt t/a Mark Andrews Used Cars

21,245 1,973.73 30/03/2016 29/03/2021 - 30/03/2019 £70,000 £3.29 £111,536 £5.25 Inside Yes Fixed uplift on 30/03/2019 to £79,000 pax

Unit 4 Polish Bakery Mazowsze Ltd 20,368 1,892.25 29/10/2014 28/10/2019 - - £74,704 £3.67 £106,932 £5.25 Inside Yes Rent deposit of £36,000.

Unit 5 Arenko Desert Sensation Ltd 20,246 1,880.92 11/08/2017 10/08/2042 11/08/2022 11/08/2032 £106,339 £5.25 £106,291 £5.25 Outside No Rent deposit of £63,803. 5 yearly rent reviews to RPI (C&C 2%-4%). Car park at eastern end of site wholly demised to Arenko Cleantech Ltd. 6 months rent free to be topped up by the vendor.

Unit 6 Accord Housing Association Ltd

20,246 1,880.92 03/05/2013 02/05/2018 - - £50,615 £2.50 £106,291 £5.25 Outside Yes -

Unit 7 Tube Bend Form International Ltd

20,251 1,881.38 10/06/2014 09/06/2019 - - £60,753 £3.00 £106,317 £5.25 Inside No Rent deposit of £16,675. Current passing rent is £55,690 pax with fixed uplifts on 10/12/2017 to £60,753 pa and 10/12/2018 to £66,700 pa. Vendor to top up rent to December 2017 uplift of £60,753 pax.

Electricity Substation

Western Power Distribution (West Midlands) Plc

- - 04/04/1974 03/04/2073 - - £1 - £1 - - - -

Gas Governor

National Grid Gas Plc - - 01/10/1988 30/09/2087 - - £5 - £5 - - - Application received for consent to assign to Cadent Gas Ltd

Land Vodafone Ltd - - 20/12/2002 19/12/2017 - - £6,902 - £6,902 - - - -

Total 143,086 13,293.14 £517,575 £712,543

SERVICE CHARGEThe service charge budget for year ending 31st March 2018 is currently running at £0.46 per sq ft.

ENERGY PERFORMANCE CERTIFICATEThe property has an EPC rating between 50 (band B) and 89 (band D).

COVENANT INFORMATIONThe tenant line up comprises a mixture of local and regional businesses servicing the wider midlands region and beyond. Further information can be found on the Lewis Ellis dataroom.


Andrew Blunt t/aMark Andrews Used CarsUsed car sales and finance

Arenko Desert Sensation LtdDigital Energy Infrastructure

Chamberlin & Hill Castings LtdSpecialist castings and engineering

Polish Bakery Mazowsze LtdWholesale bakery

Tube Bend Form International LtdMetal tube manipulation, machining and welding

Accord Housing Association LtdHousing & social care

Vodafone LtdMobile Communications provider


INVESTMENT MARKETThe UK industrial investment market continues to show resilience in the context of the wider economic and political landscape and remains the ‘flavour of the month’ amongst investors with strong demand across the board from UK Institutional Funds, overseas investors, REITs, property companies and Local Authorities. Underlying market fundamentals remain positive and continue to attract investors to the sector despite yields reaching historic lows. Market sentiment has continued to strengthen, with steady yield compression witnessed for both prime and secondary assets since the start of the year.

Investors continue to be attracted to the strong fundamentals of the industrial sector which offers a defensive asset class, a high income return, a strong underlying occupational story and projected strong performance compared to other sectors. Industrial is forecast to deliver the highest total investment return of all commercial sectors in 2017 driven by a combination of positive capital growth and ongoing rental growth.

We set out below a number of investment comparables for multi-let estates:

Address Date Term Certain Area Sq ft Rent (£pa) Rent (£psf) Price NIY Cap Val (psf)

Lodge Farm Trade Park, Northampton Q4 2017 2.76 173,243 £652,575 £3.77 £10.45m 5.85% £60

Orpen Park, Bristol Q3 2017 3.56 79,858 £486,558 £6.09 £7.0m 6.52% £88

Coleshill Industrial Park, Birmingham Q2 2017 2.87 68,381 £365,951 £5.35 £5.45m 6.30% £80

Abbeywood Business Park, Bristol Q2 2017 3.22 42,803 £314,916 £7.36 £5.8m 5.09% £136

Kings Business Park, Bristol Q2 2017 4.4 59,675 £353,925 £5.93 £5.27m 6.30% £88

MXL Centre, Banbury Q1 2017 7.60 127,305 £755,947 £5.94 £12.88m 5.50% £101

IO Centre, Avonmouth Q4 2016 2.9 104,303 £647,737 £6.20 £9.255m 6.55% £89

VAT

The properties are elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC)

DATA ROOM

There is a data room for the property with key tenancy information, title documents, service charge information and EPC’s. Access to it can be obtained (on request) via the current sales page on the Lewis Ellis website: www.lewisellis.co.uk


Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property.Designed and Produced by Creativeworld. Tel: 01282 858200. November 2017.

David KosTel: 020 7493 3330Mob: 07709 813 267Email: [email protected]

Fred Daeche-MarshallTel: 020 7493 3330Mob: 07785 741 700Email: [email protected]

Simon LewisTel: 020 7493 3330Mob: 07831 527 960Email: [email protected]

FURTHER INFORMATION Should you require further information or wish to view the property, please contact either:

PROPOSALWe are instructed to seek offers in excess of £7,465,000 (Seven Million, Four Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 6.50%, a reversionary yield of 8.95% and a low capital value of £52 per sq ft, assuming standard purchasers costs.

bloxwich industrial estate, bloxwich lane west … bloxwich industrial estate... · strategically...

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