High Yielding Multi-let Industrial Estate
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NG10 3FZ
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM
KENETH
PETERS
CHARTERED SURVEYORS PROPERTY
INVESTMENT ADVISERS
DHL
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GRO
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ACT
ET
STRE
ON
ACT
SE
LO
NC
TO
AC
RM ROAD
FIELDS FA
DFS
Plumb Centre
FIE
LD
S
Travis Perkins
FA
RM
RO
AD
Gainsborough
Business Centre
ST
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EN
NC
VI
SE
O
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Investment Summary
An opportunity to acquire a high yielding multi-let industrial estate with active management opportunities.
The salient points are as follows:
• Established industrial estate
• Multi-let industrial estate comprising 498,969 sq ft (46,356 sq m) on a 23.2 acre (9.38 hectare) site
• Freehold
• Ten units ranging from 17,916 sq ft (1,664 sq m) to 70,160 sq ft (6,518 sq m)
• All tenants have been in occupation for in excess of 10 years
• In excess of 750 people working on the estate
• Total rent of £1,743,494 per annum, reflecting a low overall rent of £3.49 psf
• An average weighted unexpired term of 8.6 years to expiry
• Potential underlying alternative use value subject to formal consents
• Asset management opportunities including re-gears on lease expiries
• Our client is seeking offers of £14,250,000 (FOURTEEN MILLION, TWO HUNDRED AND FIFTY
THOUSAND POUNDS), subject to contract and exclusive of VAT for the freehold interest. A purchase
at this level would reflect an attractive net initial yield of 11.56% and a capital value of £28.50 psf.
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM NG10 3FZ
Location
Long Eaton is situated some 7 miles (11 km) southwest of
Nottingham, 10 miles (16 km) east of Derby and 13 miles
(21 km) north of Loughborough. It benefits from excellent
road communications with Junctions 24 and 25 of the M1
within 10 minutes drive time.
Belper
Hucknall
A38
A6
26
NOTTINGHAM
A52
DERBY
A52
A38
LONG EATON
INDUSTRIAL
ESTATE
A6
A453
Castle
Donington
5 miles
3 miles
Nottingham
7 miles
East Midlands Airport
8.5 miles
Derby
11 miles
Leicester
24 miles
London
123 miles
24
Kegworth
23a
0.6 miles
M1 Junction 25 (North)
24a
EAST MIDLANDS
AIRPORT
A42
A42
M1 Junction 24a (South)
Beeston
25
A52
LONG EATON
East Midlands airport is also in close proximity some
10 miles (16 km) to the south.
Long Eaton Station
Carlton
M1
The area has a greater proportion of both semi skilled and
unskilled manual workers (20%) and skilled manual workers
(18%) compared to a Great Britain average of 15% and
17% respectively.
Long Eaton Railway Station provides a half hourly service
to Nottingham which takes approximately 15 minutes
and around 3 trains an hour to Derby taking 12 minutes.
London St Pancras is easily accessible via a direct service,
which takes approximately 1 hour 40 minutes.
A60
Ilkeston
Long Eaton has a district population of some 110,000
people with approximately 314,000 within 6 miles (10 km)
of the town centre.
A6
LOUGHBOROUGH
A511
Ashby-de-la-Zouch
A42
M1
A606
A46
Situation
BRIA
A52
WAY
TOT
Long Eaton Trading Estate is located approximately one mile
(2km) south of the town centre. The Estate has frontage to
Fields Farm Road which gives access to both Junctions 24
and 25 of the M1 via the B6540 to the south and the
B6005 (Nottingham/ Derby Road) to the north respectively.
CLOUGH
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JUNCTION
LAN
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25
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There are three access points to the estate with the main
one being from Fields Farm Road, with access via Acton
Grove and Acton Close to the east of the estate. It is
situated within an established industrial and warehousing
area and surrounded by older industrial accommodation to
the east, a modern business park and warehousing to the
south and residential to the north and west.
R
B O S TO C K
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RO
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A52
FO
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ROA
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Breaston
A60
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Nearby occupiers include Travis Perkins, DHL, Plumb
Centre and DFS.
LA
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LONG EATON
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LONG EATON
INDUSTRIAL
ESTATE
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LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM NG10 3FZ
A
B
D
C
E
D
F
Description
The Estate comprises 8 units built in the mid 1970s
and arranged as four individual units fronting Fields
Farm Road and three terraces behind to the back of
the Estate and incorporates two modern units
completed in 2011/12.
The buildings are constructed of steel portal frame
with brick elevations and profile metal cladding. The
units have roller shutter doors for loading. Each unit
has a minimum eaves height of 6 metres. The Estate
benefits from large concrete yards easily allowing
the use of articulated lorries for distribution while
there is extensive car parking to each of the units.
Internally the majority of the units benefit from
integral offices which have carpet covered floors and
suspended ceilings.
E
The majority of tenants have installed either floor to
ceiling racking or installed mezzanines floors within
the warehousing. The main tenant, MWUK Ltd,
constructed two new portal frame units between the
original buildings (Units BC and FH).
E
FH
We understand the site area extends to approx.
23.2 acres (9.38 hectares) and has a frontage to
Fields Farm Road of some 1,049 feet (320 metres).
A
FH
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM NG10 3FZ
DHL
DFS
VE
GRO
ON
ACT
ET
STRE
ON
ACT
SE
LO
NC
TO
AC
RM ROAD
FIELDS FA
Plumb Centre
FIE
LD
S
D
C
H
FH
E
F
Travis Perkins
FA
RM
RO
AD
BC
Gainsborough
Business Centre
B
A
G
ST
T
EN
NC
VI
SE
O
CL
D
OO
W
NG
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G
H
Tenure
Planning
Freehold.
A full report into the potential change of use of the site
was undertaken in April 2010 and updated in February
2013. The reports and the recent update are available upon
request.The consultants concluded that there is a case
to be made for the redevelopment of the site for alternative
uses, most likely a mix of uses including employment,
residential and local convenience retail, which has been
strengthened following the introduction of the National
Planning Policy Framework in 2012.
FH
EPC
F
These are available upon request.
E
Accommodation and Tenancy Schedule
D
B
BC
C
A
The Estate is let to three tenants on 11 leases producing
a current income of £1,743,494 per annum. The rents range
from £1.00 psf to £4.00 psf with a weighted average
unexpired lease term of 8.6 years to expiry as outlined in
the following tenancy schedule.
The leases are not all full repairing and insuring.
Full information available upon request.
Expiry Date
Rent Review
Current Rent
per annum
A report was undertaken by WSP Environmental Ltd in
November 2006 and was updated in June 2013 to confirm
that the site represents a low to medium risk.
Unit Description
Tenant Name
Unit A (Bays 1-3)
Duresta Upholstery Ltd
25/03/1987 25/03/2017
£78,000
24,593
2,285
3.17
Includes reversionary lease & OMRR from 26/03/2012
Unit A (Bays 4-9)
Duresta Upholstery Ltd
25/03/1987 25/03/2017
£150,000
47,813
4,442
3.14
Includes reversionary lease & OMRR from 26/03/2012
Unit B
MWUK Ltd t/a Dimensions
01/01/2009 31/12/2023
01/01/2014 & 2019
£254,472
63,618
5,910
4.00
Next R/R Higher of £232,206 pa or OMRV
Unit C
MWUK Ltd t/a Dimensions
01/01/2009 31/12/2023
01/01/2014 & 2019
£256,428
64,107
5,956
4.00
Next R/R Higher of £233,991 pa or OMRV
Unit D
Welbeck House Ltd
31/01/2002 30/01/2015
£200,000
62,015
5,761
3.23
Unit E
MWUK Ltd t/a Dimensions
01/01/2009 31/12/2023
01/01/2014 & 2019
£280,640
70,160
6,518
4.00
Next R/R Higher of £256,084 pa or OMRV
Unit F
MWUK Ltd t/a Dimensions
01/01/2009 31/12/2023
01/01/2014 & 2019
£213,028
53,257
4,948
4.00
Next R/R Higher of £194,388 pa or OMRV
Unit G
MWUK Ltd t/a Dimensions
01/01/2011 31/12/2023
01/01/2014 & 2019
£172,336
43,084
4,003
4.00
Next R/R Higher of £157,256 pa or OMRV
Unit H
MWUK Ltd t/a Dimensions
25/03/2011 31/12/2023
01/01/2014 & 2019
£102,402
34,134
3,171
3.00
Unit BC
MWUK Ltd t/a Dimensions
29/11/2011 31/12/2023
£18,272
18,272
1,698
1.00
Unit FH
MWUK Ltd t/a Dimensions
07/02/2012 31/12/2023
£17,916
17,916
1,664
1.00
£1,743,494
498,969
46,356
TOTAL
Lease Start
Environmental
Area
Area
Rent
GIA (sq ft) GIA Sq m) (per ft²)
Comments
Rent commences 07/08/2013
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM NG10 3FZ
Tenant Information
Tenant Covenant
Tenant Covenants
MWUK Ltd (Company no. 00454264)
Duresta Upholstery Ltd (Company no. 00341415)
Welbeck House Ltd (Company no.04012102)
The principal activity of MWUK Ltd is the provision of
corporate clothing uniforms and work wear to public and
private sector customers in the UK and Europe. (The Men’s
Wearhouse Inc. acquired Dimensions Clothing Limited and
another company in a corporate acquisition in 2010 for
£61m) and trades under a number of leading brand names
including Dimensions, Alexandra, Boyd Cooper and Yaffy.
Duresta was established in 1938 and is a manufacturer
of high quality handmade sofas and chairs in the classic
English country style. Duresta’s collections are available in
Harrods and in more than 50 countries around the world.
Welbeck House is an independent furniture manufacturer
and are suppliers to Laura Ashley. The company is a wholly
owned subsidiary of JDP Furniture Group Ltd who are
based in Nottingham. For the financial year ended
30/09/2012 JDP Furniture Group Ltd reported a turnover
of £51,768,000 and a net worth of £8,322,000.
MWUK Ltd is a subsidiary of The Men’s Wearhouse Inc.
which is one of the largest speciality men’s retailers in North
America operating 1,023 stores in the US and 120 in
Canada. For the fiscal year 2012 net sales were $2.48bn.
and the market cap as at June 2013 is $1.81bn.
MWUK Ltd is the largest UK provider of clothing for
people at work with the number of garments supplied
in the financial year to 28 January 2012 of over
17 million with almost 5 million people a day wearing the
company’s products.
The company has reported the following financial figures
for the past three years:
Sales Turnover
Pre-tax Profit (Loss)
Tangible Net Worth
Net Current Assets
28/1/12
(£000’s)
114,476
(932)
33,136
41,376
29/1/11
(£000’s)
93,446
(4,187)
4,730
(3,014)
Duresta is a subsidiary of Sofa Brands International which
is the leading branded sofa group and serves the mid to
high end sofa market. Their brands include G Plan, Parker
Knoll as well as Duresta. Customers include Harrods, John
Lewis, Furniture Village, SCS and Laura Ashley.
The company has reported the following financial figures
for the past three years:
Sales Turnover
Pre-tax Profit (Loss)
Tangible Net Worth
Net Current Assets
30/6/12
(£000’s)
14,152
(429)
7,291
7,465
30/6/11
(£000’s)
16,128
623
7,652
7,720
30/6/10
(£000’s)
15,437
432
7,745
7,658
Further information can be obtained from the company’s
website www.jdp-furniture-group.co.uk
Welbeck House Ltd. has reported the following financial
figures for the past three years:
Sales Turnover
Pre-tax Profit (Loss)
Tangible Net Worth
Net Current Assets
30/9/12
(£000’s)
31,331
257
2,130
2,097
2/10/11
(£000’s)
28,148
431
1,938
3,500
3/10/11
(£000’s)
28,946
267
1,623
2,487
Further information can be obtained from the company’s
website www.duresta.co.uk
31/12/09
(£000’s)
80,832
844
7,706
27,578
Further information can be obtained from the company’s
website www.dimensions.co.uk
LONG EATON INDUSTRIAL ESTATE | FIELDS FARM ROAD | LONG EATON | NOTTINGHAM NG10 3FZ
On the instructions of
PRÆDIA
INVESTMENTS LIMITED
A CARDINAL LYSANDER GROUP COMPANY
Proposal
We are instructed to seek offers of £14,250,000 (FOURTEEN MILLION, TWO HUNDRED AND FIFTY
THOUSAND POUNDS), subject to contract and exclusive of VAT for the freehold interest.
A purchase at this level would reflect an attractive net initial yield of 11.56%, and a capital value of £28.50 psf.
VAT
The property is elected for VAT. It is anticipated that the purchase will be treated as a transfer of a going concern.
Further Information
For further information and to arrange an inspection please contact the joint agents.
Chris Adams
[email protected]
020 7317 6283
Keneth Posner
[email protected]
020 7317 3126 / 07889 090788
James Brick
[email protected]
020 7317 6284
James Johnston
[email protected]
020 7317 3127 / 07946 418999
KENETH
PETERS
CHARTERED SURVEYORS PROPERTY
INVESTMENT ADVISERS
34 Dover Street London W1S 4NG
020 7495 6838
www.cbga.co.uk
Suite 2, 56 Queen Anne Street, London W1G 8LA
020 7317 3104
www.keneth-peters.com
Misrepresentation Act. This brochure has been produced for illustrative purposes only and all prospective buyers should note that it is solely intended for their guidance and assistance
and nothing contained in it should be considered as a definitive representation or legally binding warranty. All areas, measurements and layouts referred to are given as a guide only
and are subject to change due inter alia to design development. Our obligations under the Property Misdescriptions Act 1991 are not affected and every effort has been made to
ensure that no statements made in this brochure are false or misleading. No material contained within this brochure may be reproduced without prior consent. July 2013
SUBJECT TO CONTRACT
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