chilled distribution warehouse investment · distribution warehouse investment crystal 24 sandwell...

CHILLED DISTRIBUTION WAREHOUSE INVESTMENT Crystal 24, Sandwell Business Park, Oldbury, West Midlands, B66 1QG

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CHILLED DISTRIBUTION WAREHOUSE INVESTMENTCrystal 24 Sandwell Business Park, Oldbury, B66 1QG

INVESTMENT SUMMARY > A detached chilled distribution

warehouse facility providing a gross internal floor area of 130,524 sq ft (12,126 sq m).

> Well located within the Midlands industrial and distribution heartland.

> Situated between Junctions 1 & 2 of the M5 motorway proving easy access to the Midlands and national motorway network.

> 85m deep yard and low site density of approximately 30%.

> Let to Cadbury UK Limited, with approximately 1 year until lease expiry.

> A passing rent of £725,000 per annum equating to £5.55 psf.

> Asset management opportunity to increase rental and capital value.

> Offers are sought in excess of £7,800,000 (SEVEN MILLION EIGHT HUNDRED THOUSAND POUNDS) subject to contract and exclusive of VAT.

> A purchase at this level reflects a net initial yield of 8.71% after allowing for standard purchasers cost and a low capital value of £59.76 psf.

http://www.mk2.co.uk

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The property is located in the established industrial and distribution location of Oldbury, West Midlands, 6 miles north-west of Birmingham city centre, 1.5 miles south-west of West Bromwich and 10 miles south-east of Wolverhampton. The property benefits from being 1.5 miles from Junction 1 and 2 of the M5 motorway, approximately equidistant providing two options for motorway access. The M5 links to the Midlands motorway network via the M42 and M6 which in turn lead to the M40, M6 toll and the national motorway network. The location is considered to be of strategic importance for freight distribution benefiting from excellent road links and access to the rest of the UK.

SHREWSBURY

WOLVERHAMPTON

STAFFORD

STOKE-ON-TRENT

LICHFIELD

BIRMINGHAM

COVENTRY

WORCESTER

HEREFORD

TO BRISTOL& SOUTH WEST

TOLONDON

TO LONDON& SOUTH EAST

TO MANCHESTER& NORTH WEST

TO LEEDS& NORTH

EAST

OSWESTRY

MARKET DRAYTON

TELFORD

BRIDGNORTH

LUDLOW

LEOMINSTER

ROSS-ON-WYE

LEDBURY

GREAT MALVERN

KIDDERMINSTER

STOURBRIDGEDUDLEY

WALSALL

BURTON-UPON-TRENT

UTTOXETER

TAMWORTH

NUNEATON

SOLIHULL

REDDITCH

EVESHAM

STRATFORD-UPON-AVON

WARWICK

RUGBY

LEEK

M6

M6

M6 TOLL

M69

M1

M42

M40

M5

M50

M54

M1

M1

DISTANCES

Birmingham 6 miles

Wolverhampton 10 miles

Coventry 30 miles

Leicester 50 miles

Manchester 83 miles

MOTORWAY

M5 Junction 1 1.7 miles




LOCATION


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DUDLEY ROAD EAST

DUDLEY ROAD

A4034

KELVIN WAY

TRIN

ITY

WAY

A41

A41 BIRMINGHAM ROAD

KEN

RIC

K W

AY

TELF

ORD

WA

Y

KENRICK WAY

OLDBURY ROAD

SOHO WAY

A457

A4030

A457

A457

A40

34

A40

34

WO

LVERHAMPTON

ROAD

W’TO

N RD

CR

YSTA

L DR

A457

M5

M5

2

1

OLDBURY

SMETHWICK

CRYSTAL 24

The property is situated off Crystal Drive on Sandwell Business Park adjacent to the M5 motorway and is highly visible when travelling in either the north or south direction.

Access to the park is via the A457, providing fast access to the M5 motorway.

The location has attracted major occupiers including LINAK, APIC UK Limited, Hill Hire Plc, DHL, DPD (UK), Network Rail, Hertz and of course Cadbury.

SITUATION


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The property is of steel portal frame with full height metal clad elevations. The pitched roof is of profile sheet panels lined throughout. The warehouse includes a highbay element with an approximate eaves height of 18.5m. This part is chilled with the tenant having installed the chiller plant.

The loading bay area comprises 18 dock levellers and 2 level access doors with a substantial trailer loading canopy running the length of the elevation. The yard has a minimum depth of 46m increasing to 85m with 32 trailer parking spaces.

Metal palisade fencing provides for additional secure trailer parking and storage. Within the yard is a separate vehicle maintenance facility.

There is ample car parking area to the east elevation and substantial expansion land to the south (rear) elevation providing the ability to extend the property or develop additional accomodation.

In addition to the warehouse there is a two-storey office building to include suspended ceilings, recessed lighting and central heating.

DESCRIPTION


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The property provides the following approximate Gross Internal Areas.

DESCRIPTION SQ M SQ FT

High Bay Area 4,182 45,016

General Warehouse Area 4,043 43,519

Loading Bay 2,182 23,488

Office (Ground) 770 8,288

Office (First) 611 6,577

Vehicle Maintenance Unit 255 2,745

Chiller & Plant Rooms 83 893

Total 12,126 130,524

ACCOMMODATION

TENUREThe property is held freehold.

SITEThe site extends to approximately 3.86 hectares (9.54 acres) providing a low site cover of approximately 30%.


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31 DEC 2017 31 DEC 2016 31 DEC 2015

Turnover £121,731,000 £106,199,000 £122,600,000

Pre-Tax Profit £25,334,000 £31,536,000 £50,613,000

Net Worth £78,185,000 £353,281,000 £323,561,000

Established approximately 200 years ago Cadbury is one of the best known sweet and confectionary makers in the world. The company operates on over 60 countries and generated in excess of $25 Billion in net revenues for 2018.

In 2010 Cadburys were acquired by Kraft Foods for £11.5 billion and re-branded as Mondelez International, a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; and Trident gum.

COVENANT

The latest summary of their accounts are as follows;

Mondelez International is a member of the Standard and Poor’s 500, NASDAQ 100 and Dow Jones Sustainability Index.

In April 2016 Mondelez International announced the launch of a strategic e-commerce partnership with Alibaba Group, the world’s largest online and mobile commerce company, enabling Mondelez International to expand its reach and penetration in the Chinese market.

Cadbury UK Limited (00155256) have an Experian Credit Score of 100, Very Low Risk. The company has a credit limit of £2,100,000 and a credit rating of £690,000.

The property is let in its entirety to Cadbury UK Ltd on Full Repairing and Insuring terms expiring on 23 September 2020 at a passing rent of £725,000 per annum, equating to £5.55 psf. There is approximately 1 year until lease expiry.

The tenancy is subject to a dilapidations and reinstatement assessment upon lease expiry.

TENANCY


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Birmingham and the Black Country remain two of the most established regional centres for logistics due to their connectivity to the rest of the UK. The two areas have been subject to considerable development, but despite new supply the overall stock level has marginally increased due to the demolition of obsolete units. As a result, vacancy rates have continued to compress falling to as low as 3%, which is considerably below the historical average of 4.9%.

SIzE RENT PROPERTY (SQ FT) TENANT (PSF) GRADE COMMENTS

Unit A, Dorranda Way, West Bromwich 64,900 Chep UK Ltd £6.40 Second hand (built mid 1990’s) Lease renewal wef June 2019.

Birmingham 100, Walsall Road, Birmingham 100,075 Primaflow £6.25 New (built 2017) Open market letting wef March 2019.

501 Relay Park, Tamworth 85,382 Lloyds Transport £6.75 Second hand (built 2001) Open market letting wef March 2019.

Unit 1 Mucklow Park, Battery Way, Tyseley 58,200 Dencora Blinds £6.75 New (under construction) Pre-let wef January 2019.

CP 153, Centurion Park, Tamworth 153,009 Pirelli Tyres £6.25 New (built 2017) Open market letting wef December 2018.

Barberry 65. Grosvenor Street, Birmingham 65,710 Mayflex UK Ltd £6.82 New (built 2018) Open market letting wef November 2018.

Arrow 3, Claybrook Drive, Redditch 141,000 Toolstation £5.88 Second hand (built 2008) Rent Review wef October 2018.

Midpoint 106, Minworth, Birmingham 106,025 Parts Alliance Group £6.25 Second hand (built 1996) Open market letting wef September 2018.

OCCUPATIONAL MARKETBoth areas have seen annual rental growth of 6% throughout 2019 which is more than double the growth rate seen in the office sector. Headline rents in the wider West Midlands market are up to as high as £8.00 per sq ft as evidenced on Blythe Valley Business Park, Solihull. The Black Country has been subject to substantial rental growth with headline rents for mid box units now at circa £6.50 per sq ft.


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CHILLED DISTRIBUTION WAREHOUSE INVESTMENTCrystal 24 Sandwell Business Park, Oldbury, B66 1QG EPC

The property has an EPC rating of F150. A copy of the certificate is available upon request.

VATThe property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that subject to qualification the sale will be treated as a TOGC.

We are instructed to seek offers in excess of £7,800,000 (SEVEN MILLION EIGHT HUNDRED THOUSAND POUNDS) subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 8.71% and a low capital value of £59.76 psf after allowing for standard purchasers cost.

Subject to contract.

PROPOSAL


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For further information or to arrange an inspection please contact:

fURThER INfORMATION

IMPORTANT INFORMATION 1. No description or information given by MK2 Real Estate Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. MK2 Real Estate Ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

Designed and produced by Diablo: www.diablodesign.co.uk September 2019

MK2 Real Estate LtdOne Seven Two Edmund StreetBirmingham B3 2HB

Mark Rooke0121 214 197207985 877 578 [email protected]

Mark Johnson0121 214 197707748 105812 [email protected]


chilled distribution warehouse investment · distribution warehouse investment crystal 24 sandwell...

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