distribution & warehouse investment in the golden...

Distribution & Warehouse Investment in the ‘Golden Triangle’

Triumph Motorcycle Works, Jacknell Road, Hinckley LE10 3BS

mailto:[email protected]

Investment Summary


◆ Prime distribution and warehouse investment located in the ‘Golden Triangle’, benefiting from excellent road communications with easy access to the M1, M6 and M69.

◆ The property comprises one of two complimentary manufacturing and distribution facilities occupied by Triumph in Hinckley.

◆ Constructed in 2002 the property comprises warehousing with research and development and a paint workshop that is vital to Triumph’s manufacturing process.

◆ Let to the secure covenant of Triumph Motorcycles Ltd (4A2) with a guarantee from Bloor Holdings Ltd (5A1) with over four years unexpired.

◆ Rent passing of £779,450 per annum exclusive, reflecting a low base rent of £4.28 per sq ft.

◆ We are instructed by our clients to seek a figure in excess of £9,200,000 (nine million, two hundred thousand pounds) subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 8%.



Location

M1

M1

M1

M6

M5

M6

M6

M54M42

M42

M6

M6

M40

M6 TOLL

M69

A50

A5

A38

A52

A50

A515

A38A42

A5

A426

A426

A45A46

A45

A5

A38

A45

A449

A449

A491

A50NOTTINGHAMSHIRE

DERBY

LEICESTER

RUGBYCOVENTRY

BIRMINGHAM

NORTHAMPTON

STAFFORD

STOKE-ON-TRENT

LOUGHBOROUGH

HINCKLEY



Hinckley is located approximately half way between Leicester and Coventry within the East Midland’s ‘Golden Triangle’, which is bordered by the M1, M6 and M69 Motorways.

The ‘Golden Triangle’ remains at the epicentre of the UK distribution warehouse market attracting main stream occupiers who want to be at the heart of the UK’s motorway network.

Location

Motorway Junctions Distance (miles) HGV Drive TimesM69 J1 3.3 miles 12 minutesM6 J3 / M42 J 10 14.4 miles 33 minutes

Towns Distance (miles) HGV Drive TimesLeicester 16.5 miles 46 minutesCoventry 19.5 miles 47 minutesBirmingham 27.6 miles 1 hr 6 minutesLondon 99.1 miles 3 hrs 47 minutesManchester 99.3 miles 3 hrs 14 minutesLeeds 110.9 miles 3 hrs 12 minutesGlasgow 303.9 miles 8 hrs 21 minutesEdinburgh 310.7 miles 8 hrs 57 minutes

Airports Distance (miles) HGV Drive TimesCoventry 15.6 miles 36 minutesBirmingham 26.7 miles 55 minutesEast Midlands 30.9 miles 58 minutesLuton 69.3 miles 2 hrs 21 minutesManchester 93.4 miles 2 hrs 56 minutesHeathrow 99.3 miles 3 hrs 13 minutesGatwick 139.5 miles 4 hrs 1 minute

Ports Distance (miles) HGV Drive TimesHull 129.4 miles 3 hrs 35 minutesSouthampton 139.3 miles 3 hrs 57 minutesFelixstowe 146.4 miles 4 hrs 11 minutes

Source: www.ukhaulier.co.uk



The property is situated on Jacknell Road, accessed via Dodwells Road and the A5.

Dodwells Road is the main link road, providing access to both Harrowbrook Industrial Estate and Dodwells Bridge Industrial Estate where the main concentration of industrial/distribution activity is located within Hinckley.

The property is strategically situated to compliment Triumph’s 420,000 sq ft manufacturing facility and Headquarters only 700m to the north west.

We understand that the headquarters building is let on a long lease and therefore the subject property has good potential for re-gear.

Situation

Nu�eld Road

Brindley Road

Jacknell Road

B4666 Coventry Road B4666

Coventry Road B4666

Faraday Road

Harrow

brook Road

Newton Road

Fleming Road

Whittle Road

Paddock Way

Paddock Way

Long

Mea

dow

Driv

e

Rad

ius Crescent

Brascote Road

Od

sto n e D rive

Love

tts C

loseAshby de la Zouch Canal

Ashby de la Zouch Canal

Ashby de la Zouch Canal

Dod

wel

ls R

oad

A47

Dodw

ells

Road

A47

Dodwells Road

A47

Watling Street

Watling Street

TRIUMPH MOTORCYCLES FACTORY & HQ

TESCO RDC

TRIUMPH MOTORCYCLES

DODWELLS BRIDGE INDUSTRIAL ESTATE

DODWELLS BRIDGE INDUSTRIAL ESTATE

HARROWBROOK INDUSTRIAL ESTATE

A47

A47

A5

A5



Situation

1. Alliance Healthcare

2. DS Smith

3. Hammonds

4. Norbert Orcs

5. Amtin

6. Sigma

7. Voestalpine Rotec

8. Tesco

2

1

3

34

56

7

8

Hinckley Commercial Park

DPD

CAT

Armstrong

Johnsons

Eurokey

Syncreon



In 2002 the majority of the site was destroyed by fire which resulted in redevelopment to a modern specification.

The property comprises a warehouse with nine bays and a paint shop constructed to provide a single facility. The warehouse has well specified offices (including canteen and reception) over two floors with a specification to include raised floors and air-conditioning.

The eaves range from 5m to 9m (at the haunch) in the main body of the warehouse and 3.8m in the paint shop. The warehouse is served by two substantial service yards, with three canopies, five dock level doors and three surface level roller shutter doors.

Access to the rear of the unit is gained by a further five surface level roller shutter doors.

Detached from the main building is a single storey Research & Development office.

The site is secure with perimeter fencing and access via a manned gatehouse. It benefits from 274 car spaces on site.

Description



The property provides the following gross internal floor areas (GIA).

Note - The large canopy attached to bay and part of offices are tenants improvements and not included in the GIA.

Accommodation

Sq M Sq FtFactory/Warehouse 14,813.49 159,451Offices, canteen, reception etc 1,068.76 11,504Research and Development 1,027.42 11,059

16,909.67 182,014Ancillary buildings 188.31 2,027Canopies 390.29 4,210Total 17,488.27 188,242

TenureThe building is held freehold.

TenancyThe property is let to Triumph Motorcycles Ltd (with a guarantee from Bloor Holdings Ltd) for a term of 25 years from 25 March 1994, to expire on 24 March 2019.

The rent passing with effect from 25 March 2014 is £779,450 per annum (reflecting £4.28 per sq ft on the warehouse accommodation).

The site area is 4.105 ha (10.143 acres) with a site density of 41%.



Triumph grew out of the rich motor history of Coventry, where they were based before the second World War.

John Bloor purchased the company in 1983 and Triumph started producing motorcycles again in the 1990s from this site in Hinckley.

Today Triumph operations are centred in Hinckley in two facilities.

The subject warehouse is used mainly to distribute after sales globally, but also includes a paint shop and the company’s Research & Development operation.

Triumph’s Headquarters are only 700m to the north west. From this location, the bulk of manufacturing takes place, servicing the UK and Europe.



Covenant Status

◆ Triumph Motorcycles Limited (Company No 01735844)

The Dun & Bradstreet rating of 4A2 shows a financial strength of £34,894,000 (based upon tangible net worth) and an overall condition which represents lower than average risk.

◆ Bloor Holdings Ltd (Company No 2080245)

The Dun & Bradstreet rating of 5A1 shows a financial strength of £451,087,000 (based upon tangible net worth) and an overall condition which represents minimum risk.

Covenant

30 Jun 2013 30 Jun 2012 30 Jun 2011

Sales Turnover £ 333,702,000 316,760,000 297,452,000

Profit / (Loss) Before Taxes £ (12,792,000) 2,659,000 4,580,000

Tangible Net Worth £ 34,894,000 44,320,000 42,298,000

Net Current Assets (Liabilities) £ 29,558,000 28,535,000 30,946,000

30 Jun 2013 30 Jun 2012 30 Jun 2011

Sales Turnover £ 759,956,000 726,852,000 655,111,000

Profit / (Loss) Before Taxes £ 35,587,000 40,743,000 22,807,000

Tangible Net Worth £ 451,087,000 415,014,000 385,325,000

Net Current Assets (Liabilities) £ 439,393,000 384,700,000 287,408,000



The Offer

Comparable Investment Market Evidence

Tenant Address Sq Ft Lease Price Yield Date

ThyssenkruppRedfern Park, Birmingham

220,769 7 years £15.1m 6.28% Oct 14

ArmstrongCommercial

Park, Hinckley 97,920 10.5 years £7.78m 6.47% Sep 14

Royal MailWinwick Quay,

Warrington183,474

4 years unexpired

£7.68m 7.75% Aug 14

ThyssenkruppBrierley Road,

Preston146,941

5.5 years unexpired

£7.3m 7.70% Jun 14

CevaEarlstree Industrial

Estate, Corby196,013

7.8 years unexpired, annual 3%

uplifts

£7.024m 7.57% Jun 14

L’OrealSherwood

Park, Nottingham

126,057

7 years unexpired, fixed uplift

in 2016

£10.96m 6.48% Jun 14



The Offer

Further InformationFor further information please contact:

3 Brindleyplace, Birmingham B1 2JB

Damian Lloyd Direct Line: 0121 609 8223 Email: [email protected]

Barry Riley Direct Line: 0121 609 8268 Email: [email protected]

10 Stratton Street, London W1J 8JR

Gavin Quinn Direct Line: 020 7911 2558 Email: [email protected]

VATWe understand that the property has been elected for VAT. It is intended the sale will be treated as a Transfer of a Going Concern.

ProposalWe are instructed by our clients to seek a figure in excess of £9,200,000 (nine million, two hundred thousand pounds) subject to contract and exclusive of VAT.

An acquisition at this level would reflect a net initial yield of 8%, allowing for purchaser’s costs of 5.8%

GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission 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. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT. January 2015.

All computer generated images and photographs are for indicative purposes only. Designed and produced by Core. Tel: 0121 232 5000 www.core-marketing.co.uk

gva.co.uk/8176 | January 2015

http://www.gva.co.uk




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