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SONOVA HOUSEW A R R I N G T O N
Sandilands Street and Eastmuir Street Glasgow G32 0HS
Well Located Feuhold Industrial Estate Investment
ANNICK INDUSTRIAL ESTATE
ANNICK INDUSTRIAL ESTATEG L A S G O W
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A89
NEW POLICE HQ
EMIRATES STADIUM
SIR CHRIS HOY VELODROME
FORGE SHOPPING CENTRE
RIVER CLYDE
CITY CENTREKINGSTON BRIDGE
FORGE RETAIL PARK
TESCO
SHETTLESTON STATIONSHETTL
ANNICK INDUSTRIAL ESTATE
M74 M8
M80
ANNICK INDUSTRIAL ESTATEG L A S G O W
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INVESTMENT SUMMARY
• WELL LOCATED, BETWEEN M8 AND M74 MOTORWAYS, CLOSE TO EDINBURGH ROAD AND SHETTLESTON ROAD
• MULTI-LET INDUSTRIAL INVESTMENT COMPRISING 55 UNITS EXTENDING TO A TOTAL OF 107,523 SQ FT (9,989.2 SQ M)
• TOTAL CURRENT INCOME OF £509,818 PER ANNUM AND ERV OF £555,000 PER ANNUM
• LOW RENTAL BASE OF ONLY £4.80 PER SQ FT
• OPPORTUNITY FOR ASSET MANAGEMENT AND LONG TERM DEVELOPMENT POTENTIAL
• OFFERS IN THE REGION OF £5,320,000 SUBJECT TO FORMAL EXCHANGE OF MISSIVES
• ATTRACTIVE NET INITIAL YIELD OF 9%, AND REVERSIONARY YIELD OF 9.83%
• LOW CAPITAL COST OF £49.47 PER SQ FT
ANNICK INDUSTRIAL ESTATEG L A S G O W
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LOCATION
Glasgow is the third largest city in the UK, with a population of approximately 612,000 and a catchment of 1.5m persons. The City enjoys a diverse local economy contributing an estimated £14 billion to Scotland, and has the largest office centre and retail centre outside London. The City also enjoys a substantial industrial and distribution base, one of the largest in the UK, with a global reputation for engineering in particular with major companies such as Rolls Royce, Jacobs Engineering, BAE Systems, Weir Group, Doosan Babcock, Scottish Power, SSE and Thales.
Annick Industrial Estate lies within the Shettleston district of Glasgow, approximately 3.5 miles east of the city centre. It is
2 miles south of Junction 11 of the M8 motorway and 4 miles west of Junction 19 of the M74 motorway, the principal route south to England. The property is also located close to the Clyde Gateway, a major regeneration project that aims to increase the surrounding population by 20,000 persons, creating homes and generating 4 million square feet of business space by 2027.
As well as having the benefit of good road links, Shettleston rail station is located 300 metres north of the property, with regular services from Queen Street rail station. Shettleston also lies close to the East End Regeneration Route, a new road providing a direct link between the M74 at Dalmarnock and the
M8/M80 at Provan Road, which will significantly improve access to the eastern side of the city.
Glasgow Airport, the busiest passenger and freight airport in Scotland, is 13 miles west and readily accessible via the M74 motorway. It serves a wide variety of national and international destinations, in particular throughout Europe, the United States and Canada.
THE PROPERTY
THE PROPERTY
ANNICK INDUSTRIAL ESTATEG L A S G O W
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SITUATION
The property is located in the Shettleston district, to the east of the city centre. The estate is situated in a predominantly residential area, with new build housing immediately to the east. There is also a Tesco supermarket located immediately to the west of the property. Accordingly potential alternative uses underpin the value of the property. The estate is favoured by trade type occupiers owing to its prominence and mix of unit sizes.
DESCRIPTION
The property was originally developed in 1986 and comprises a well-laid out, multi-let estate extending to a total of 107,523 sq ft (9,989.2 sq m ) across a total of 55 terraced units. These are organised as four double-fronted terraces, with Sandilands Street and Eastmuir Street forming the inner circulation areas on the estate.
The individual units are steel framed with brick in-fill walls under profile steel roofs and cladding, together with ancillary yard areas. They provide flexible accommodation suitable for a variety of tenants, with individual units ranging in size from 441 sq ft (40.97 sq m) to 9,538 sq ft (886.12 sq m).
The site extends to 8.025 acres (3.243 ha) approximately, with a low site coverage of circa 32%.
TENURE
The property is held feuhold.
TENANCY
There are a total 55 units let to 51 tenants producing £509,818 pa and giving an excellent spread of income risk. There are currently2 vacant units, comprising 928 sq ft (18 Sandilands Street), and 447 sq ft (23 Eastmuir Street). This offers potential to enhance income further and we consider that current ERV in the order of £555,000 pa. With a low rental base of only £4.80 per sq ft we anticipate that there are excellent prospects for further rental growth.
The units continue to appeal to a number of trade style occupiers, in particular within the automotive and building/home improvement sectors, we believe that there is good potential to build up the number of such occupiers as well as other diversified trade users over time, to extend the credentials of Annick as a trade park style estate.
ANNICK INDUSTRIAL ESTATEG L A S G O W
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Unit Tenant Area(sq ft)
StartDate
EndDate
BreakClause
PassingRent pa
Rent psf ERV pa Comments
Block 1 Unit 111 Sandilands St
Trueform Engineering Ltd 4,744 05/06/2013 04/04/2016 Extended under tacit relocation
£17,750 £3.74 £20,000
Block 1 Unit 215 Sandilands St
Eagley Plastics Ltd 4,739 11/11/2011 18/11/2017 £16,500 £3.48 £20,000
Block 1 Unit 327 Sandilands St
Platinum Batteries (Europe) Ltd
4,748 11/09/2013 10/09/2017 £17,500 £3.69 £20,000
Block 1 Unit 431 Sandilands St
Shawston Holdings Limited 4,718 11/09/2012 31/12/2015 £17,500 £3.71 £20,000 Flexi Lease
Block 1 Units 5 & 6 and Yard B43 & 47 Sandilands St
Community Transport Glasgow
9,499 01/03/2013 28/02/2018Option to
extend to 2023
£33,247 £3.50 £37,500 Rent review 1 March 2018
Block 1 Unit 75-9 Sandilands St
CabelTel Glasgow-NTL Group Ltd
2,326 23/06/1995 22/06/2020 £9,250 £3.98 £10,000
Block 1 Unit 819 Sandilands St
D M Harris Ltd 2,253 20/01/2006 19/01/2016Extended under tacit relocation
£10,750 £4.77 £10,000 Monthly payments
Block 1 Unit 923 Sandilands St
Thomas McDonald t/a McDonald Flooring
2,339 22/05/2007 21/05/2018 £10,000 £4.28 £10,000
Block 1 Unit 1035 Sandilands St
Decorous Painting Contractors Limited
2,295 20/12/2012 19/09/2017 £9,750 £4.25 £10,000
Block 1 Unit 1139 Sandilands St
J.N.G. Limited 2,258 28/10/2013 27/10/2016 £9,750 £4.32 £10,000 Flexi LeaseMonthly payments
Block 1 Unit 1251 Sandilands St
Spotless Office Cleaning Ltd
2,316 01/09/2005 31/08/2025 31/8/2020Tenant only
6 months’ notice
£10,000 £4.32 £10,000 Rent Review 01/09/2020
TENANCY SCHEDULE
*Tacit relocation: On expiry, neither party gives notice of their intentions to quit and the lease holds over for a further 12 months on the same term and conditions.
ANNICK INDUSTRIAL ESTATEG L A S G O W
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Unit Tenant Area(sq ft)
StartDate
EndDate
BreakClause
PassingRent pa
Rent psf ERV pa Comments
Block 2 Unit 136 Sandilands St
Al-Mech (Glasgow) Ltd 912 07/05/2011 06/05/2016Extended under tacit relocation
£7,750 £8.50 £7,750
Block 2 Unit 1415 Eastmuir St
Glasgow Window & Door Centre Ltd
932 13/03/2015 12/03/2018 £7,750 £8.32 £7,750 Flexi Lease
Block 2 Unit 1510 Sandilands St
J B Bennett Contracts Ltd 932 12/02/2015 11/10/2015 £7,750 £8.32 £7,750 Flexi Lease
Block 2 Unit 1627 Eastmuir St
Michael McConway t/a M & M Courier Services
933 14/02/2014 13/02/2016 £7,750 £8.31 £7,750 Flexi Lease
Block 2 Unit 1714 Sandilands St
Anderbeth Limited 933 02/12/2014 01/12/2019 2/12/2016Tenant only
6 months’ notice
£7,750 £8.31 £7,750
Block 2 Unit 1839 Eastmuir St
Murray Miller Windows and Doors Limited
906 04/04/2014 27/03/2017 £7,750 £8.55 £7,750 Flexi Lease
Block 2 Unit 1918 Sandilands St
Vacant 928 £7,750
Block 2 Unit 2051 Eastmuir St
Cherry Garden Landscaping Limited
936 01/03/2012 28/02/2016Extended under tacit relocation
£7,500 £8.01 £7,750 Flexi Lease
Block 2 Unit 2122 Sandilands St
MT Cold Storage Solutions Limited
933 13/07/2015 12/07/2017 £7,750 £8.31 £7,750 Flexi Lease
Block 2 Unit 2263 Eastmuir St
B.Porter & C.Boyes t/a Porter Boyes
941 13/12/2010 12/12/2015 £7,750 £8.24 £7,750
Block 2 Unit 2326 Sandilands St
JLL Optics Ltd 924 24/09/2012 23/09/2016Extended under tacit relocation
£7,750 £8.39 £7,750 Flexi Lease
Block 2 Unit 245 Eastmuir St
Gary Spence 445 25/08/2004 24/08/2016Extended under tacit relocation
£3,500 £7.87 £4,000
ANNICK INDUSTRIAL ESTATEG L A S G O W
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Unit Tenant Area(sq ft)
StartDate
EndDate
BreakClause
PassingRent pa
Rent psf ERV pa Comments
Block 2 Unit 259 Eastmuir St
Robon Ltd 447 02/09/2011 01/09/2016Extended under tacit relocation
£3,750 £8.39 £4,000 Flexi Lease
Block 2 Unit 2619 Eastmuir St
S Robertson T/a Victorian Sash Windows
447 25/10/2007 24/10/2015 Extended under tacit relocation
£3,500 £7.83 £4,000
Block 2 Unit 2723 Eastmuir St
Vacant 447 £0 £0.00 £4,000
Block 2 Unit 2831 Eastmuir St
Robert Boyd 451 03/10/2014 02/10/2016Extended under tacit relocation
£4,000 £8.87 £4,000 Flexi LeaseMonthly payments
Block 2 Unit 2935 Eastmuir St
Peter Driscoll 441 08/03/2014 07/03/2016 £3,750 £8.50 £4,000 Flexi Lease
Block 2 Unit 3043 Eastmuir St
Alan McArthur Painting & Decorator Contractor
450 21/02/2006 20/02/2016Extended under tacit relocation
£3,250 £7.22 £4,000
Block 2 Unit 3147 Eastmuir St
Alan Driscoll t/a A D Building Maintenance
447 01/12/2013 30/11/2015 £3,750 £8.39 £4,000 Flexi Lease
Block 2 Unit 3255 Eastmuir Street
Automatic Door Components Ltd
447 24/05/2013 23/05/2016 £3,750 £8.39 £4,000 Monthly payments
Block 2 Unit 3359 Eastmuir St
Banner Kwik Ltd 447 19/04/2013 18/04/2016 £3,750 £8.39 £4,000 Flexi Lease Monthly payments
Block 2 Unit 3467 Eastmuir St
JLG Slating Ltd 447 15/08/2011 14/08/2016Extended under tacit relocation
£3,859 £8.63 £4,000 Flexi Lease
Block 2 Unit 3571 Eastmuir St
Bento Box Ltd 447 28/03/2011 27/03/2016Extended under tacit relocation
£3,500 £7.83 £4,000 Flexi LeaseMonthly payments
Block 3 Unit 366 Eastmuir St
East End Tyre Services Ltd 2,307 01/08/2005 01/02/2029 2/2/2024; landlord; min 6 mths notice
£10,000 £4.33 £10,000 Rent Review 01/02/2019
ANNICK INDUSTRIAL ESTATEG L A S G O W
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Unit Tenant Area(sq ft)
StartDate
EndDate
BreakClause
PassingRent pa
Rent psf ERV pa Comments
Block 3 Unit 3710 Eastmuir St
TES 2000 Limited 4,727 4/15/2014 14/4/2019 with option to
extend to 2024
15/4/2017; tenant; 6 mths notice; £5,000 penalty
£20,000 £4.23 £20,000 Monthly paymentsRent Review 14/04/2019
Block 3 Units 38/4114 & 26 Eastmuir St
Anglo Pacific International plc
9,538 04/02/2015 6/8/2016 6/8/2016; tenant; 6 mths notice has
been served
£36,200 £3.80 £37,500
Block 3 Unit 3918 Eastmuir Street
Mark Sloey & Tracy Gordon t/a Chips Away
2,300 25/09/2014 24/09/2019 £10,000 £4.35 £10,000
Block 3 Unit 4022 Eastmuir St
Friction Components & Systems Ltd
2,346 27/04/2015 26/03/2018 £10,000 £4.26 £10,000
Block 3 Unit 4230 Eastmuir St
Wysepower Ltd 4,744 16/09/2005 28/02/2016 £16,000 £3.37 £20,000 Lease to be extended
Block 3 Unit 4334 Eastmuir St
Externiture Ltd 2,347 04/02/2011 03/02/2016 £9,500 £4.05 £10,000
Block 3 Unit 4438 Eastmuir St
Under Offer to David Gaddi 2,261 £10,000 £4.42 £10,000 Five year term
Block 3 Unit 4542 Eastmuir St
Vulcanising UK Limited 4,772 23/01/2015 22/01/2025 23/1/2020; tenant; 6 mths notice
£20,000 £4.19 £20,000
Block 3 Unit 4646 Eastmuir St
Acoustic Metrology Ltd 4,685 15/05/2005 14/05/2016 £18,000 £3.84 £20,000
Block 3 Unit 4750 Eastmuir St
Yampower Ltd 2,310 264/03/2007 24/03/2018 £10,000 £4.33 £10,000
Block 4 Unit 4891 Eastmuir St
Andrew Miller & Mark Chalmers as partners of Image System Design & Print
913 27/04/2015 26/04/2020 £7,750 £8.49 £7,750
Block 4 Unit 4987 Eastmuir St
Anyjunk Limited 930 15/07/2013 14/07/2016 £7,750 £8.33 £7,750 Monthly payments
ANNICK INDUSTRIAL ESTATEG L A S G O W
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Unit Tenant Area(sq ft)
StartDate
EndDate
BreakClause
PassingRent pa
Rent psf ERV pa Comments
Block 4 Unit 5083 Eastmuir St
Trafficmaster Plc 915 04/04/2000 04/04/2017 4/4/2016; tenant; 6 mths notice
£7,750 £8.47 £7,750
Block 4 Unit 5179 Eastmuir St
MACD Electrical Ltd 935 25/03/2010 24/03/2020 £7,500 £8.02 £7,750 Rent Review 25/03/2015
Block 4 Unit 5275 Eastmuir St
Wilson & Calderwood Polishing LLP
915 06/05/2014 06/05/2016 £7,750 £8.47 £7,750 Flexi Lease
Block 4 Unit 5330 Sandilands St
ProAir Conditioning Limited
926 21/06/2007 20/06/2016Extended under tacit relocation
£6,250 £6.75 £7,750
Block 4 Unit 5434 Sandilands St
Alison Bennettt/a The Launch Brigade
925 01/09/2004 31/08/2016 £5,000 £5.41 £7,750
Block 4 Unit 5538 Sandilands St
David Henderson 919 08/08/2011 07/08/2016Extended under tacit relocation
£6,250 £6.80 £7,750
Sub Station Site Scottish Power 11/11/1979 £10 £10
Yard A East End Tyre Service Ltd - as above.
17/10/2011 01/02/2029 2/2/2024; landlord; min 6 mths notice
£4,500 £4,500 Rent Review 01/02/2019
Underground Cables Scottish Power 13/04/2004 13/04/2999 £2 £2
107,523 £509,818 £554,762
EPC
EPC information on all the units is available within the dataroom.
VAT
The property has been registered for VAT purposes. It is anticipated that a sale will be affected by means of a Transfer of a Going Concern (TOGC).
ANNICK INDUSTRIAL ESTATEG L A S G O W
PROPOSAL
We are instructed to seek offers in the region of £5,320,000 (Five Million Three Hundred and Fifty Thousand Pounds) subject to formal exchange of missives and exclusive of VAT. This will reflect a net initial yield of 9% and a reversionary yield of 9.83% after standard purchaser’s costs of 6.01% and allowing for LBTT.
FURTHER INFORMATION
For further information, to access the dataroom, or to arrange an inspection, please contact:
Steven Gay Neville Pritchard Richard Gale Ryden LLP JLL JLL130 St Vincent Street 30 Warwick Street 30 Warwick StreetGlasgow, G2 5HP London, W1B 5NH London, W1B 5NHT: 0141 270 3135 T: 020 7087 5370 T: 020 7087 5572M: 07789 986140 M: 07889 896872 M: 07527 388024E: [email protected] E: [email protected] E: [email protected]
© Crown Copyright 2015. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.
Disclaimer
JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract;b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law.
© September 2015 Jones Lang LaSalle IP, Inc.