long secure workshop & storage investment€¦ · unit 7, titan drive, fengate, peterborough...

LONG SECURE WORKSHOP & STORAGE INVESTMENT

MOTORPOINT PDI FACILITY | EASTERN INDUSTRIAL ESTATE | PETERBOROUGH | CAMBRIDGESHIRE | PE1 5YD


SUMMARY


• A recently constructed freehold prominent workshop and storage facility.

• Will be let to the largest operator within the car supermarket sector, Motorpoint Limited, who have a D&B rating of 5A2 and have been established for over 22 years.

• Built accommodation extends to approximately 11,565 sq ft (1,074.6 sq m) on a site area of about 8.33 acres (3.373 ha).

• The property will be let on a new FR&I lease for a term of 20 years, with a tenant only break at the 15th year.

• The initial rent will be £265,000 pax, the rent review frequency will be 5 yearly, RPI collared and capped at 1% and 3%.

• Seeking offers in the region of £4,290,000 which reflects a net initial yield of 5.75%, assuming purchasers’ costs of 7.51%.

The property is located in the cathedral city of Peterborough, which has a population in excess of 200,000. Peterborough was designated as a New Town in the 1960s and has a history of sustainable economic growth, which at times has been the highest in the UK.

Peterborough is located in Cambridgeshire and is about 76 miles north of London, 70 miles east of Birmingham and 65 miles west of Norwich. Peterborough train station is located on the East Coast mainline between London and Edinburgh with a regular and fast, circa 45–50 minutes, service to King’s Cross.

LOCATION



SITUATION


The premises occupy a prominent position fronting Newark Road, a busy estate road within the successful and established Eastern Industry area of Peterborough. The property is about 1 mile from junction 7 of the Frank Perkins Parkway (A1139) which then connects to the A1(M), a short distance away.

Located within a mixed use commercial area close by are national and regional occupiers within the following sectors: storage and distribution, retail, leisure, and vehicle retailing.

The property is adjacent (right hand side) to a recently completed and fully let 15

unit industrial warehouse scheme, called Newark East, and to the rear of the property is one of the major occupiers within the area, Perkins Engines.


DESCRIPTION

The property comprises a purpose-built, recently constructed, workshop and storage facility operated by Motorpoint for the servicing, preparation and distribution of motor vehicles.

The building is of steel portal frame construction having a dual pitched clad roof with a combination of brick and clad elevations. Internally, the premises have been subdivided to provide for four main areas comprising of workshop, valet, photo bay and office and ancillary accommodation, all of which have been finished to a high standard.

The workshop provides for 8 bays with electrically operated roller shutter doors and having 6 two post ramps and 1 four post ramp, making a total of 7 ramps. The workshop is fitted with airlines and an exhaust extraction system. It has excellent natural light having, in part, integral translucent roof panels. It also has painted blockwork walls and solid concrete floor which is painted.


MOTORPOINT PDI FACILITY | EASTERN INDUSTRIAL ESTATE | PETERBOROUGH | CAMBRIDGESHIRE | PE1 5YDMOTORPOINT PDI FACILITY | EASTERN INDUSTRIAL ESTATE | PETERBOROUGH | CAMBRIDGESHIRE | PE1 5YD

The valet bay is a clear open area having suspended strip lighting, painted blockwork walls with cladding above and a solid concrete floor, which has also been painted. The valet workshop is accessed via 2 electrically operated roller shutter doors.

Also forming part of the accommodation is a dedicated photo booth area and two smart repair bays.

To the front of the building is the office and ancillary accommodation.

Externally, the immediate areas around the built accommodation comprise of a combination of macadam and concrete surfacing. The compound area is of permeable aggregate with a surface retention grid system and has been constructed to include drainage.

There are approximately 116 delineated spaces around the built accommodation with the compound area providing in the region of 500 spaces.

The property benefits from some expansion land which is currently grassed and separated from the main compound by a drain/stream.


ACCOMMODATIONUSE SQ M SQ FT

Workshop 383.44 4,127

Valet 289.42 3,115

Smart repair 97.02 1,044

Photo bay 96.46 1,038

Office and Ancillary 93.54 1,006

Sub Total 959.88 10,330

Canopy 114.78 1,235

TOTAL APPROX. GIA 1,074.6 11,565

SITE AREAThe total site area is approximately 8.334 acres (3.373 ha) and is irregular in shape.

The expansion area land is about 2.05 acres (0.83 hectares).

TENUREThe property is held under freehold Title Number CB420754.

TENANCYOn completion of the sale, the property will be let on a new lease to Motorpoint Limited for a term of 20 years, subject to a tenant only break at year 15, on a Full Repairing and Insuring basis, with 5 yearly upward only Retail Priced Iinked rent reviews,collared and capped at 1% and 3%, pac. The initial rent will be £265,000 per annum.

Since this proposal is a Sale & Leaseback, there is the opportunity to vary the above terms, to the mutual benefit of both parties.

TENURE AND TENANCY


COVENANTMotorpoint Limited, historically known as Motorpoint of Derby limited, has been established since 1998. The property originally started with one facility in Derby and over the last 22 years the company has opened 13 sites, with the most recent opening being the subject property in January of this year.

Motorpoint Limited has a Dun and Bradstreet rating of 5A2, a lower than average risk of business failure, and has reported the following account figures:

31 MARCH 2019 (£000)

31 MARCH 2018 (£000)

31 MARCH 2017 (£000)

Sales Turnover £1,058,700 £991,200 £822,000

Gross Profit (loss) before taxes

£79,900 £21,200 £13,800

Tangible Net Worth £54,100 £35,700 £18,200

Net Current Assets (Liabilities)

£46,000 £31,400 £23,300

Motorpoint Limited are also ranked in No.1 in the Motor Trader Top 50 Non-franchised Used Car Retailers.

COVENANT

ANTI-MONEY LAUNDERING INDENTITY CHECKSIn accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, the Purchaser will be required to comply with our Anti-Money Laundering policy. Further details are available upon request.

COMPARABLES


LEASEHOLD INDUSTRIAL TRANSACTIONS

PROPERTY DATESIZE SQ FT

RENT (£ PSF) COMMENTS

Unit 7, Titan Drive, Fengate, Peterborough Available 10,281 £61,750£6.00

The property comprises a modern end of terrace unit, which forms part of a newly constructed trade counter and industrial development. The property is available on a new FRI lease.

Vision Park, 350 Padholme Road East Peterborough

Available 15,036 £95,000 £6.32

The property is located within the Fengate area close to the subject property. The property also comprises a modern recently constructed unit similar to the subject property.

Mr Tyre, 2 Harvest Way, Peterborough October 2019 6,161 £32,000£5.19

The property comprises an end of terrace unit, originally constructed in the 1980’s, therefore, dated in comparison to the subject property. The property is located in the Fengate area, close to the subject property.

Unit 15, Cobblestone WayMeadlock Electrical Distribution

Q1 2019 1,800 £12,600 £7.00

The property forms part of the recently constructed Newark East trade counter scheme. The property sits adjacent to the subject property.

Unit E, Harrier Park, Southgate Way Orton Southgate, Peterborough

September 2018

11,379 £53,500 £4.70

The property comprises a modern unit which was constructed in 2005. The property has been let for a term of 10 years. The property is located on the outskirts of Peterborough, south-west of the centre.

Unit 3, Fengate East, Titan Drive Peterborough

February 2018 3,224 £24,000£7.44

The property comprises a modern, terrace unit, which forms part of a modern trade counter scheme which was developed in 2009. The property has been let for a term of 5 years.



COMPARABLES [CONTINUED]LEASEHOLD INDUSTRIAL TRANSACTIONS

PROPERTY DATESIZE SQ FT

RENT (£ PSF) COMMENTS

Unit 1-4, Cobblestone Way, Newark Road, Peterborough

October 2017 26,000 £162,000£6.25

The unit is situated adjacent to the subject property part of a recently constructed trade scheme. The property was originally going to be carved up into four small units, however, the developer decided against and it was let to Breezemount in its entirety. The property was let for a 15-year lease with a tenant break at year 10. The property was let a rent of £162,000 per annum, with four months rent free which equates to £110,000 per annum for the first year.

11 Titan Drive, Fengate, Peterborough March 2017 6,609 £32,000£4.83

The property is located in the Fengate area, in close proximity to the subject property. The property was originally constructed in 2007. The property has been let for a term of 10 years.

12-16 Titan Drive, Fengate, Peterborough February 2017 10,026 £56,200£5.60

The property comprises a modern industrial unit which was constructed in 2009. The property is located in the Fengate area in close proximity to the subject property. The property has been let for a term of 3 years.

LEASEHOLD LAND TRANSACTIONS

STORAGE FACILITY SIZE RENT PER ACRE

GEFCO, Corby 35 acres £37,750

BCA, Birmingham 21 acres £61,436

Paragon, Avonmouth Site 1: 11 acres | Site 2: 30 acres | Site 3: 38 acres Site 1: £29,000 | Site 2: £29,000 | Site 3: £30,000

Ford, Speke 48 acres £45,000


FURTHER INFORMATIONENVIRONMENTALSProspective parties will need to undertake their own investigations to satisfy themselves on environmental issues.

LEGAL COSTSEach party is to be responsible for its own legal and professional fees in connection with this transaction.

VATThe property is elected for VAT. It is intended the sale will be undertaken as a TOGC.

EPC



PROPOSAL

MISREPRESENTATION ACT: Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. July 2020.

Colliers International is the licensed trading name of Colliers International Capital Markets UK LLP which is a limited liability partnership registered in England and Wales with registered number OC392075. Our registered office is at 50 George Street, London W1U 7GA.

For further information, please contact Colliers International or Nigel Griffiths and Company:

NIGEL GRIFFITHS

0115 979 [email protected]

JOHN ROBERTS

0121 265 [email protected]

We are instructed to seek offers in the region of £4,290,000 (Four Million, Two Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 5.75%, based off a rent of £265,000 per annum, assuming purchasers’ costs of 7.51%.

long secure workshop & storage investment€¦ · unit 7, titan drive, fengate, peterborough...

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