ksc hercules intbro aw - king street...

ESTABLISHED BUSINESS PARK IN AN AFFLUENTSOUTH MANCHESTER LOCATION

I N V E S T M E N T F O R S A L E HERCULESPARKCHEADLE | SK3 0UX

I N V E S T M E N T S U M M A R Y

HERCULESPARKCHEADLE | SK3 0UX

Strategically located 1.5 miles from the M60 (Manchester Orbital Ring Road), 8 miles south of Manchester City Centre and 6 miles east from Manchester Airport.

Fully let to 4 tenants with a total rental income of £473,443 per annum reflecting a low average rent of £13.45 per sq ft.

AWULT of 7.4 years (no breaks) with 86% of the income having an overall Dun & Bradstreet Business Risk rating of Low-Moderate.

High car parking provision with limited on-going capital expenditure required.

Opportunity to acquire for a low investment value which is under pinned by a strong vacant possession value. Future potential for the sale of individual units or the opportunity to purchase sold o� units back into the ownership.

Freehold.

O�ers are sought in excess of £4,935,000 exclusive of VAT (£140 per sq ft capital value). Based on purchaser costs of 6.59% this reflects a Net Initial Yield of 9% with a potential reversionary yield of 9.70%.

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“A high specification, multi-let o�ce park totalling 35,204 sq ft, located in the a�uent south Manchester town of Cheadle.”

StockportStation

J1

J2

M60

CHEADLEGOLF COURSE

CHEADLEHEATH

STOCKPORTTOWN CENTRE

CHEADLE

EDGELEY

MANCHESTERCITY CENTRE

HERCULESPARKCHEADLE | SK3 0UX

STOCKPORT RD A560

DRIN

KSWAY WOOD ST

KIN

G ST W

EST

WEL

LIN

GTO

N R

D S

TH

BR

AM

HA

LL LN

STOCKPORT RD

DE

MM

ING

S R

D

COUNCILLOR LANE

ADSWOOD RD

BIR

D H

ALL LN

EDGELEY RD MERICAN WAY

CHEADLE HULMETRAIN STATION

L O C A T I O N

“Cheadle forms part of the Greater Manchester conurbation and is located 8 miles south of Manchester City Centre and 3 miles west of Stockport. Cheadle, together with its neighbour Cheadle Hulme, have a resident population in excess of 40,000.”

Manchester has the second largest urban population and the largest business centre outside London. As such it is recognised as the financial and administrative capital of the North West. It is located approximately 34 miles east of Liverpool, 44 miles west of Leeds, 87 miles north of Birmingham and 207 miles north-west of central London.

The City benefits from an excellent transport infrastructure, with the M60 orbital motorway connecting directly with the M56, M67 and M62 motorways. In addition, both the M56 and M62 subsequently link with the M6 motorway. As a consequence, approximately 60% of the UK’s population is within a two hour drive time.

VIEW AERIAL

HERCULESPARKCHEADLE | SK3 0UX

CHEADLE RO

AD

BRAMHALL

LN

BACK TO LOCATION

RAILWAY LINE

HERCULESPARKCHEADLE | SK3 0UX

BIRD HALL LANE

EDGELEY ROAD

CHEADLE

J2

A6

CHEADLE HULME

B1B2

C2 C1

D

EF

SITE ENTRANCE

HAZEL GROVE

A6M60J1

STOCKPORTACADEMY

MORRISONS

STOCKPORT TRAIN STATION

MANCHESTER CITY CENTRE

STOCKPORTTOWN CENTRE

A

CHEADLE HEATHPOLICE STATION

NO. 1 PARK SQUARE

ORION BUSINESS PARK

THALES GROUP

BIZ SPACE

S I T U A T I O NHERCULESPARKCHEADLE | SK3 0UX

“Hercules Business Park is situated between Cheadle and Cheadle Hulme and is accessed via Bird Hall Lane. Heading immediately north, via the A560, leads swiftly to Junction 2 of the M60 orbital motorway which in turn provides access to the M56 and the wider national motorway network.”

The immediate surrounding buildings are characterised by o�ce, industrial and trade counter uses with companies including Thales, Bosch, Landis+Gyr, Biz Space, Emcor, DAI and Panalpina World Transport situated in the vicinity. A Morrisons and Lidl supermarket’s are within walking distance whilst Cheadle Heath Police Station is 0.5 miles to the north of Hercules Park.

Beyond the immediate commercial surrounds are a�uent residential suburbs, including various schools, parks, golf clubs and sports clubs.

Nearby leisure and retail amenities includes Cheadle High Street (5 minute drive), Cheadle Hulme Shopping Centre (5 minute drive), Cheadle Royal (Sainsbury’s, John Lewis), David Lloyd and De Vere Hotel are all located a 10 minute drive away.

SUPPLIED BY MAG

Grade A specification

Raised access floors

Air conditioning system

Suspended ceilings and recessed lighting

Double glazed aluminium windows

Open plan o�ces

Fitted kitchenette

Eight person (630 kg capacity) passenger lift

DDA compliant

Secure on site car parking at an excellent ratio of 1:250 sq ft

Each building has their own designated car parking

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D E S C R I P T I O N

“Hercules Business Park, served by a private estate road, totals 8 self-contained detached and semi-detached buildings of which 4 have been sold o� to owner occupiers.”

There are 4 buildings remaining in the ownership totalling 35,204 sq ft (22,343 sq ft sold o�). The site totals approximately 1.84 hectares (4.547 acres).

The park also benefits from an outside communal area which provides tenants with a popular amenity space. In terms of the individual demises, the buildings are of a steel portal frame construction, brick elevations under a composite roof. The buildings are arranged over ground and 1st floors and due to the communal entrances can be sub-divided to provide separate self-contained accommodation within each property.

LET

SOLD

SOLD

SOLD

LET

LET

A

B1B2

C1

C2

E

F

D

LET

SOLD

B U I L D I N G S P E C I F I C A T I O N

LET TO WOODCROFT VETERINARY GROUP

LET TO THERMOTECH SOLUTIONS LTD

SOLD TO SANTIAGO HOLDINGS, T/A CARE IN MIND

SOLD TO BALLYCLARE LIMITED

SOLD TO BALLYCLARE LIMITED

SOLD TO LINDNER REAL ESTATE LIMITED

LET TO DSG FINANCIAL SERVICES LIMITED

LET TO WNS GLOBAL SERVICES (UK) LTD

A

B1

B2

C1

C2

D

E

F

HERCULESPARKCHEADLE | SK3 0UX

TENANT

Woodcroft Veterinary Group

Thermotech Solutions Ltd

Care in Mind

Ballyclare Limited

Lindner Real Estate Limited

DSG Financial Services Limited

WNS Global Services (UK) Ltd

TOTAL

DEMISE

Unit A

Unit B1

Unit B2

Units C1 and C2

Unit D

Unit E

Unit F

TYPE

Lease

Lease

Sold O� (Freehold)

Sold O� (Freehold)

Sold O� (Freehold)

Lease

Lease

AREA (SQ FT)

10,725

5,331

8,340

10,808

35,204

RENT PA (£)

144,788

66,638

108,003

154,014

£473,442

RENTSQ FT (£)

13.50

12.50

12.95

14.25

13.45

ERVSQ FT (£)

14.25

14.25

14.25

14.25

LEASE START

28/06/2018

02/11/2017

13/07/2015

22/07/2010

NEXT REVIEW

28/06/2023

13/7/2020

EXPIRY

27/06/2033

01/11/2022

12/07/2025

21/07/2020

Use of 43 car parking spaces. Rent free period to be topped up by the vendor. Change of use from o�ces (B1) to veterinary hospital practice (D1).

Unit subject to option to purchase up to 3rd year of the term at £640,000 + VAT with annual RPI compounded increases. £640,000 is a NIY of 9.9%, £120 per sq ft capital value.

22,343 sq ft sold o� freehold.

DSG to be entitled to an additional 8 months rent at the commencement of the 6th year - Landlord to top-up.

Rent review to RPI (compounded annually), collared and capped at 2 and 5% respectively.

ERV(£)

152,831.25

75,966.75

118,845.00

154,014.00

£501,657.00

T E N A N C Y & R E N T A L I N C O M E

Hercules Business Park currently benefits from a total rental income of £473,443 per annum and an Average Weighted Unexpired Lease Term of 7.4 years(no breaks).

The service charge is currently running at £0.55 per sq ft per annum.

HERCULESPARKCHEADLE | SK3 0UX

WNS GLOBAL SERVICES (UK) LTD (02292251)

D&B Credit Score (5A1 – Minimum Risk of Business Failure)

D&B Overall Business Risk: Low-Moderate

WNS is a global Business Process Management leader who o�er services around the world to key industries including banking and financial services, healthcare, insurance, manufacturing, media and entertainment, consulting and professional services, retail and consumer packaged goods, telecom, shipping and logistics, travel and leisure, and utilities. WNS delivers an entire spectrum of BPM services in customer interaction services, finance and accounting, human resource, research and analytics, technology solutions and industry-specific processes.

Globally WNS employee more than 35,000 employees across 53 delivery centres located in China, Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, Turkey, UK and US.

Further information - www.wns.com

DSG FINANCIAL SERVICES LIMITED (02313903)

D&B Credit Score (2A2 – Lower Than Average Risk of Business Failure)

D&B Overall Business Risk: Low-Moderate

Operating across 3 primary locations with the head o�ce located at Hercules, DSG Financial Services is an independent motor finance provider, working with the UK's major motor dealer groups for more than 25 years. Clients include Ford, Renault and Lookers.

Further information - www.dsgfs.com

WOODCROFT VETERINARY GROUP (07013686)

D&B Overall Business Risk: Low-Moderate

Woodcroft Veterinary Group are part of Vet Partners Limited who have over 1,500 employees within the group working in over 150 sites across the UK. Vet Partners provide centralised support tailored to individual practice requirements in areas from HR to finance, IT and marketing.

Woodcroft Veterinary Group operate a caring and high standard professional service from 7 accredited veterinary practices. Their new unit at Hercules is due to be fitted out to an A+E standard veterinary practice with an element of emergency surgery, serving the current smaller practices within the Woodcroft umbrella. The fit out will include an MRI scanner, extensive X-ray area and technical emergency surgery theatres together with front of house facing reception and recovery zones for the animals.

Further information - www.woodcroftvets.com

C O V E N A N T S & I N C O M E A N A L Y S I S

THERMOTECH SOLUTIONS LTD (08596374)

D&B Overall Business Risk: Moderate-High

Thermotech design, install and maintain air conditioning, HVAC systems, fire protection systems and fire sprinkler systems. Client’s stretch across a variety of industries, including Boots, Waitrose, Sony, Adidas and Savills.

Further information - www.thermotechsolutions.co.uk

HERCULESPARKCHEADLE | SK3 0UX

WNS

Turnover

Pre-tax Profit

Net Worth

Net Assets

31/03/2017

£36,474,000

£26,997,000

£44,118,000

£44,126,000

31/03/2016

£47,375,000

£3,642,000

£14,786,000

£17,138,000

31/03/2015

£52,181,000

£8,073,000

£25,958,000

£28,170,000

DSG

Turnover

Pre-tax Profit

Net Worth

Net Assets

31/03/2017

£10,064,029

£1,063,454

£2,131,015

£2,381,144

31/03/2016

-

-

£1,328,252

£1,328,252

31/03/2015

-

-

£1,132,987

£1,132,987

Woodcroft

Turnover

Pre-tax Profit

Net Worth

Net Assets

30/06/2017

-

-

(£242,901)

£1,082,661

31/05/2016

£6,119,251

£786,732

(£336,505)

£1,092,245

31/05/2015

£5,721,728

£889,263

(£143,846)

£1,380,154

Thermotech

Turnover

Pre-tax Profit

Net Worth

Net Assets

31/03/2017

£11,461,866

£710,470

(£1,548,995)

£2,019,762

31/03/2016

£6,425,158

(£98,117)

(£247,198)

£597,000

31/03/2015

-

(£486,656)

£758,169

Over the course of the past 24 months the out of town o�ce market has seen a marked enhancement with tenant and investor appetite continuing to improve. As the economy has recovered, vacancy rates in the sub market have slowly decreased, assisted further by the rapidly increasing rents in Manchester City Centre, together with the complete lack of speculative development within the south Manchester o�ce sector. Permitted development and change of use strategies have further eroded the available supply.

As it stands, capital values for out of town o�ces are still often below the cost of construction and this is before a developer has been able to source adequate land with relevant permissions and in situ infrastructure.

In terms of rental values, across the majority of schemes in the south Manchester market, the amount of rent free incentives o�ered has reduced significantly whilst the lack of options for occupiers have put an upward pressure on rents. The following comparable schemes

provide an indication of the positive sentiment within the market and suggest strong reversionary and rental growth potential at Hercules (average rent of £13.45 per sq ft).

ASSET MANAGEMENT POTENTIALIn addition to improving upon the undoubted low passing rental tone of the estate and regearing the WNS Global Services Ltd demise, the amenity space at the front of the estate o�ers possible future development potential.

Totaling 0.45 acres, the area is designated as a Bowling Green and was part of the planning obligation when the Business Park was granted planning and subsequently developed. Subject to the necessary negotiations with the local planning authorities, due to the proximity to Bird Hall Lane, there is the potential to develop on part of the site for a range of uses including, convenience retail, nursery or additional business space purposes.

HERCULESPARKCHEADLE | SK3 0UX

DATE

March-17

April-17

May-17

May-17

May-17

August-17

August-17

Sep-17

Sep-17

Sep-17

Oct-17

Nov-17

Dec-17

Feb-18

March-18

March-18

March-18

BUILDING

Altitude Business Park, Wythenshawe

Jackson House, Sale

Hamilton House, Altrincham

Station House, Altrincham

Kingsley Hall, Wythenshawe

Manchester Green, Styal

Kings Court, Wilmslow

One Didsbury Point, Didsbury

Manchester Green, Styal

4M, Manchester Airport

Altitude Business Park, Wythenshawe

St John’s House, Altrincham

MIOC, Styal

Sale Point, Sale

Charter House, Altrincham

Chadsworth House, Handforth

4 Station Road, Cheadle Hulme

TENANT

Bowmer and Kirkland

Sesame Services Ltd

Hitachi Data Systems

Matillion

Dnata

Greenmotion Car Rental

ICO

Carrier Travel

Assetz Capital

CAF Rail

EMCOR Group

Daly International (UK) Ltd

X-Rite

Taylor Edwards Financial Mgt

Detail 2 Recruitment

OTH

Broadcom

AREA (SQ FT)

5,562

14,430

2,589

5,506

2,620

4,404

7,125

8,255

14,687

4,375

5,317

3,436

3,164

4,644

2,324

2,706

1,848

RENT (PER SQ FT)

£17.28

£14.50

£16.04

£16.50

£14.50

£17.50

£19.50

£18.00

£17.50

£22.00

£17.50

£19.40

£17.50

£14.50

£14.95

£15.00

£14.95

S O U T H M A N C H E S T E R O F F I C E M A R K E T

TENUREThe freehold interest of Hercules Park, including the remaining 4 units are o�ered

for sale.

VATThe property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale can be treated as a Transfer of Going Concern (TOGC).

PRICEO�ers are sought in excess of £4,935,000 exclusive of VAT. Based on purchaser costs of 6.59% this reflects a Net Initial Yield of 9% with a potential reversionary yield of 9.70%.

CONTACTFor more information please contact King Street Commercial:

MATTHEW COX0161 850 0498matt@kingstreetcommercial.com

TED MURRAY0161 850 0497ted@kingstreetcommercial.com

F U R T H E RI N F O R M A T I O N

0161 387 7252

IMPORTANT NOTICE. King Street Commercial gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an o�er or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. Published July 2018.

HERCULESPARKCHEADLE | SK3 0UX

EPCAvailable upon request.