saxon park - whitmarsh holt young · kingston upon thames richmond woolwich barnet enfield...

HOLDOM AVENUE | MILTON KEYNES | MK1 1QU

Whitmarsh

Holt

Young

MULTILET FREEHOLD INDUSTRIAL ESTATE

Saxon Park INDUSTRIAL ESTATE

ENTER >>

Saxon Park MILTON KEYNES

INVESTMENT SUMMARY• Fully let well specified industrial estate comprising 12 units.

• Prominently located fronting on to Bletcham Way in a well established industrial

area, situated diagonally opposite the Milton Keynes Ikea Store, adjacent to

retail warehousing and in close proximity to the MK Dons Football Stadium and

the A5.

• 127,008 sq ft GIA in total.

• Total income of £612,798 per annum equating to a low passing rent of £4.82 per sq ft overall, providing excellent potential for rental growth through asset

management initiatives.

• Diverse income spread with no single occupier accounting for more than 16.8%

of the overall income.

• AWULT of 5.6 years to expiries and 2.0 years to breaks.

• Offers in excess of £8,510,000, subject to contract and exclusive of VAT, which

reflects a Net Initial Yield of 6.75% after allowing for acquisition costs of 6.68%,

a Reversionary Yield of 7.70% and a Capital Value of only £67 per sq ft.

Diverse income spread with no single occupier accounting for more than 16.8%

of the overall income

INVESTMENT SUMMARY

AERIAL IMAGE GALLERY

LOCATION / SITUATION

ACCOMODATION / ENVIRONMENTAL

COVENANT STATUS

INVESTMENT MARKET

DESCRIPTION TENANCIES OCCUPATIONAL MARKET

EPC / FURTHER INFORMATION

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A5

A5

A5

BO

ND

AV

E

BILTON RD WATLING ST

BLETCHAM WAY

SPORTS DIRECTPETS AT HOME

HOME BARGAINSARGOS

TESCO

ASDA

MK DONS FOOTBALL STADIUM& DOUBLE TREE BY

HILTON HOTEL

MK1 SHOPPING PARKM&S, NEXT, RIVER

ISLAND, NEW LOOK, H&M

MK1 LEISURE PARKODEON IMAX, PREZZO, CHIMICHANGA, PIZZA EXPRESS, FRANKIE & BENNY’S,

BELLA ITALIA, TGI FRIDAYS

IKEA

MATALAN

CITY GLASS AB TURNKEY SOLUTIONS

TK MAXX SENSIENT FLAVORS

TESCO DISTRIBUTION WAREHOUSE (FENNY LOCK)

WICKES HALFORDS

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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M6

M5

M3

M4

M1

M1

M40

M25

LIVERPOOL

LEEDSHULL

MANCHESTERSHEFFIELD

NOTTINGHAMLEICESTER

OXFORD

BIRMINGHAM

LONDON

SOUTHAMPTON

DOVER

FELIXSTOWE

MILTONKEYNES

LUTON

STANSTED

BIRMINGHAM

HEATHROW

CITY

3 4

7

6

3130

4

5

2

8

2 134

14

13

4

3

1

11

10

99

14 1312

67

10

65

7

8

1615

3

4

16

4

321

11

12

131415

78

9

10

20

19

1

32

4

56

17

18

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

9

10

9

10

12

11

13

14

15

1413

12

11

10

9

16

2

1

20

19

18

17

9

856

782

11

2

5

6

3

11

2

1a

3

26

M23

M1

M26

M25

M40

M4

M3

A329(M)

M25

M25

M25

M25

M20

M1

M10

A1(M)

M11

M4

M40

M11

M5

M5

M11

M42M40

M42

M45

M69

M6

M6

M1

M1

M5

A5

A5

A34

6

A338

A419

A436

A417

A44

A40

A429

A46A442

A40

A44

A44

A4

29

A4

41

A4

35

A448

A46

A46

A26

A23

A232

A4

A40A406

A41

A406

A10

A12

A13

A2A20

A205

A3

A24

A34

A50

8

A43

A1

A6

A427 A605

A4

3

A6116

A14

1

A43

A428

A45

A6

A10

A505

A11

A14

A10

A428

A428

A142

A10

A14

A14

A508

A421

A45

A13

A127

A40A418

A41

A4

010

A4

13

A41

A43

A50

9

A6

A1

A602

A10

A414

A12

A120

A130

A420

A34

A43

A422

A419

A505

A228

A21

A22

A22

A2

A31

A33

A339

A34

A42

9

Hertford

WelwynGarden

City Ware

HatfieldHoddesdon

Royston

Biggleswade

Newmarket

Mildenhall

Ely

SaffronWalden

Haverhill

March

St Ives

Huntingdon

St Neots

Rushden

Kettering

Wellingborough

MarketHarborough

Braintree

Bishop's Stortford

Tonbridge

EastGrinstead

Sevenoaks

OxtedRedhill

ReigateDorking

GodalmingFarnham

Aldershot

Basingstoke Leatherhead

Bracknell

Windsor

Croydon

Swanley

Andover

Chippenham

Melksham Newbury

Warminster

Trowbridge

Devizes

Cirencester

Didcot

Dartford

Stroud

Witney

Tilbury

Chigwell

Epsom

Sutton

Kingston upon Thames

Richmond

Woolwich

BarnetEnfield

Maidenhead

Beaconsfield

HarrowUxbridgeHenley-

on-Thames

Letchworth

St Albans

Hitchin

Dunstable

Berkhamsted

Tring

Marlow

HemelHempstead

LeightonBuzzard

Thame

Abingdon

Bicester

Daventry

BanburyEvesham

Warwick

Stratfordupon Avon

Bromsgrove

MILTONKEYNES

Stevenage

Cambridge

RedditchNorthampton

Brentwood

Maidstone

Guildford

Woking

Farnborough

Camberley

Staines

Reading

Swindon

Cheltenham

Harlow

Slough

Watford

Luton

Bedford

Amersham

HighWycombe

Oxford

LeamingtonSpa

BIRMINGHAM

COVENTRY

LONDON

SITUATION

Saxon Park is prominently located fronting onto Bletcham Way which links directly

onto the A5 to the east, just to the south of central Milton Keynes in Bletchley. The

immediate surrounding area is a mix of industrial and retail uses with retail warehousing

immediately behind Saxon Park where occupiers include TK Maxx and Halfords. The

Milton Keynes Ikea store is situated diagonally opposite Saxon Park on Bletcham Way

and adjacent to Ikea is an Asda Superstore. The MK Dons Football Stadium is also

located in close proximity which has undergone substantial new development in recent

years, to include the MK1 Shopping Park, MK1 Leisure Park and Double Tree Hilton Hotel.

Other occupiers in the immediate vicinity include Formula One Autocentres, Safestore

Self Storage, Sensient and National Tyres.

HLEYHOUSING PROVISION

M1

14

13

A5130

A421

A5130

A422

A42

1

A421

A4146

A4

146

A4

146

A509

A509

A421

B4034B

40

34

B4034

B4

03

4

B40

34

B4

034

A4146A5(T)

A5(T)

A5(T)

(T)

CENTRALMILTONKEYNES

WOBURNSANDS

FENNYBOWBRICKHILL

BLETCHLEY

CENTRAL

Bletchley SUBJECTPROPERTY

LOCATION

Milton Keynes is located adjacent

to Junctions 14 and 15 on the M1

motorway. Saxon Park is situated

on the west side of Milton Keynes

in very close proximity to the A5.

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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DESCRIPTION

Saxon Park comprises a well configured multilet industrial estate of 12 units

arranged in four blocks with associated servicing yard areas and car parking.

There are separate parking areas along the estate road which provide plenty

of parking provision. The estate was constructed in the 1980’s and extends to

a site area of approximately 6.4 acres equating to a site cover of 45%. The

estate presents well and the units are in a good condition.

The units provide the following specification:

• Steel portal frames with metal sheet cladding under profiled metal roofs

• Integral 2 storey offices within each unit

• Roller Shutter loading doors

• Eaves heights of approximately 5.5m / 18ft

• Suspended hot air blowers

• Units have been refurbished in conjunction with new leasing activity

Cycle Path

BLETCHAM WAY

HOLDOM AVENUE

BOND AVENUE

1

2

3

El

11

10

7

8

Sub Sta

El Sub Sta

SubEl

5

Sta

6

12

9

Acorn Building

9

4

0m 25m 50m 75m

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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ACCOMMODATION

The estate has been measured in accordance with the

RICS Code of Measuring Practice and provides a Gross

Internal Area of 127,008 sq ft overall across a variety of

unit sizes ranging from 6,300 sq ft – 20,750 sq ft, which

caters for a wide variety of occupier requirements.

TENURE

Freehold Interest.

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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TENANCIES

The estate is fully let to 10 different occupiers on standard Full Repairing & Insuring terms as set out below. There is a service charge in place which covers all common items of

expenditure and this is currently running at a budget of £70,140 per annum / £0.55 per sq ft.

The Average Weighted Unexpired Lease Term (AWULT) is 5.6 years to expiries and 2.0 years to breaks.

Unit Tenant GIA Sq Ft

Lease Start

Lease Expiry

Break Option

Next Review Rent pa Rent per

Sq Ft% of

Income1954 Act

EPC Rating

Schedule of Condition Comments

1 UK Planet Tools Ltd 6,376 10/4/2015 9/4/2025 10/4/2020 10/4/2020 £38,000 £5.95 6.2% No C67 No New letting in 2015. Rent Deposit of £22,810.

2Axe & Status Machinery Ltd

6,390 5/2/2014 4/2/2024 4/2/2019 4/2/2019 £32,200 £5.03 5.3% Yes D93 No

3Plumbing & Heating Supplies (Milton Keynes) Ltd

6,338 1/3/2015 28/2/2025 29/2/2020 29/2/2020 £38,500 £6.07 6.3% No C52 No Lease renewal in 2015. Rent Deposit of £23,107.

4Travis Perkins (Properties) Ltd

6,385 25/3/2009 24/3/2024 25/3/2019 25/3/2019 £39,555 £6.20 6.5% Yes C65 No

5 Zarges (UK) Ltd 11,002 11/8/2009 24/12/2019 n/a n/a £51,600 £4.69 8.4% Yes D93 No Guarantor - Zarges GmbH

6 Format Graphics Ltd 11,019 13/2/2013 12/2/2018 n/a n/a £47,450 £4.30 7.7% No D87 No

7 Sensient Flavors Ltd 11,026 18/2/2015 5/1/2021 5/1/2018 18/2/2020 £53,000 £4.80 8.6% No C75 YesNew letting in 2015 - stepped rent, 6/1/18 - 5/5/18 £26,500 pa, 6/5/18 - 17/2/20 £53,000 pa. RPI rent review - no cap or collar.

8 Zarges (UK) Ltd 10,983 11/8/2009 24/12/2019 n/a n/a £51,600 £4.70 8.4% Yes D100 No Guarantor - Zarges GmbH

9 Eurovision Ltd 20,748 23/12/2013 22/12/2023 23/12/2016 23/12/2018 £95,000 £4.58 15.5% No C59 NoTenant has operated the break clause - tenant must pay £15,833 + VAT to complete break option. Rent deposit of £57,058.

10Mechoshade Systems (UK) Ltd

20,651 7/12/2011 6/12/20217/12/2016 (Mutual)

n/a £82,248 £4.00 13.4% Yes C65 YesTenant has operated the break clause.Guarantor - JB Industries Inc.

11 Pace Europe Ltd 8,200 17/5/2015 16/5/2020 17/5/2018 n/a £42,645 £5.20 7.0% No D90 YesLease renewal in 2015. Service charge cap - £6,000 for the current year and then annual RPI uplifts.

12 Sensient Flavors Ltd 7,890 29/12/2014 5/1/2021 5/1/2018 29/12/2019 £41,000 £5.20 6.7% No D96 YesStepped rent - 6/1/18 - 5/5/18 £20,500 pa 6/5/18 - 28/12/19 £41,000 pa. RPI rent review - no cap or collar.

127,008 £612,798 £4.82 100%

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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COVENANT STATUS

Tenant % of Income Year Ending Turnover Pre-Tax ProfitTotal Assets less

Current LiabilitiesShareholders’ Funds

UK Planet Tools Ltd (07149901) 6.2%28/02/16 28/02/15

£2,140,470 £919,510

£140,470 £18,645

Axe & Status Machinery Ltd (05036242) 5.3%31/03/15 31/03/14

£416,625 £379,837

£416,625 £379,837

Plumbing & Heating Supplies (Milton Keynes) Ltd (05324031)

6.3% No Accounts Available

Travis Perkins (Properties) Ltd (0468024) 6.5%31/12/14 31/12/13

£76,449,000 £76,384,000

£47,386,000 £41,752,000

£339,242,000 £312,659,000

£329,582,000 £295,024,000

Zarges (UK) Ltd (01048391) 16.8%31/12/15 31/12/14

£5,278,699 £5,324,539

£343,255 £202,313

£1,435,517 £1,366,277

£782,303 £507,423

Format Graphics Limited (08273487) 7.7%30/09/15 30/09/14

£576,469 £421,353

£460,086 £361,510

Sensient Flavors Limited (1514781) 15.3%31/12/14 31/12/13

£35,832,357 £34,082,968

£1,860,534 £1,451,516

£21,198,568 £20,513,094

£7,073,090 £6,863,094

Eurovision Limited (05372233) 15.5%28/02/15 28/02/14

(£160,261) (£118,940)

(£160,261) (£118,940)

Mechoshade Systems (UK) Ltd (03781772) 13.4%02/01/16 02/01/14

(£2,349,831) (£2,581,584)

(£2,374,445) (£2,518,584)

Pace Europe Limited (02152467) 7.0%31/12/15 31/12/15

£2,315,390 £2,678,336

(£29,908) £120,090

£505,731 £535,639

£505,731 £535,639

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET


PROPOSAL / FURTHER INFORMATION

Source: Company Accounts

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OCCUPATIONAL MARKET

• Availability levels in Milton Keynes are now the lowest

they have been for a generation and the vacancy

level is circa 5%. With limited new development

activity coupled with strong occupier demand there

is upward pressure on rents as the distinct lack of

available stock feeds through to rental growth.

• New / refurbished schemes are now commanding

rents of £7.00 - £8.00 per sq ft and even higher for

very small units – at Granby Industrial Estate which

is located close by to Saxon Park opposite the

Asda supermarket, rents of £10 per sq ft are being

achieved on units of 1,000 – 2,000 sq ft.

• Elsewhere more secondary refurbished stock in

Milton Keynes is commanding rents of £5.00 - £6.00

per sq ft depending on unit size.

• Incentives are diminishing and 3 – 6 months rent

free for a 5 year lease term is the market position.

• There were 4 new lettings on Saxon Park in 2015 in

Units 1, 3, 7 and 11 providing the best rental evidence,

but more recent rental evidence suggests rents

have moved on further. As a result of the favourable

occupational market dynamics Saxon Park offers

excellent reversionary potential, and we believe the

achievable ERV’s across the estate to be as follows:

Units 1 – 4 £6.50 per sq ft




INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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INVESTMENT MARKET

Industrial Estate transactions of note this year which provide a helpful guide on recent investor activity include the following:

Property No. of Units Size (Sq Ft) AWULT to breaks Price NIY Price per sq ft Date

Voyager Park, Portsmouth 86,000 2.8 years £12.1m 5.8% £140 psf Jan 2016

Manfield Park Industrial Estate, Cranleigh 13 55,600 5.1 years £7.3m 6.06% £131 psf Jan 2016

Units 1-17 Eldonwall Trading Estate, Bristol 17 100,418 3.4 years £7.45m 6.42% £74 psf Jan 2016

Blakelands Industrial Estate, Milton Keynes 74 565,000 5.5 years £38.79m 6.37% £69 psf March 2016

Bedford Business Centre, Bedford 19 50,000 1.5 years £4.96m 6.6% £99 psf April 2016

Taurus Park, Warrington 13 133,940 3.4 years £11.495m 6.5% £85 psf May 2016

Gatwick International Distribution Centre, Crawley 29 222,550 3.9 years £31m 5.3% £140 psf June 2016

Brackmills Industrial Estate, Northampton 21 216,118 3.74 years Circa £13m Circa 6.75% £60 psf Under Offer

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



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Saxon Park INDUSTRIAL ESTATE

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ENERGY PERFORMANCE CERTIFICATES

Energy Performance Certificates are

available in the Dataroom.

VATThe property is elected for VAT

and we understand the disposal

will be structured by way of a

Transfer of a Going Concern (TOGC).

PROPOSAL

We have been instructed to seek

offers for our client’s Freehold interest

in excess of £8,510,000, subject to

contract and exclusive of VAT, which

reflects a Net Initial Yield of 6.75%

after acquisition costs of 6.68%, a

Reversionary Yield of 7.70% and a

Capital Value of only £67 per sq ft.

FURTHER INFORMATION

For further information or to arrange an inspection please contact:

Bruce Spencer Direct 020 7079 1810

Mobile 07715 178 511

Email [email protected]

James Young

Direct 020 7079 1819

Mobile 07788 108 283

Email [email protected]

Whitmarsh Holt Young Cavendish House

18 Cavendish Square

London W1G 0PJ

Whitmarsh Holt Young for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Whitmarsh Holt Young cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars may be subject to VAT in addition; iv) Whitmarsh Holt Young will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/ tenants should satisfy themselves as to the fitness of such items for their requirements; vi) no employee of Whitmarsh Holt Young has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Subtract to Contract. Exclusive of VAT. Designed and produced by Creativeworld Tel: 01282 858200

Whitmarsh

Holt

Young

Subject to Contract. Exclusive of VAT. July 2016

INVESTMENT SUMMARY




COVENANT STATUS

INVESTMENT MARKET



saxon park - whitmarsh holt young · kingston upon thames richmond woolwich barnet enfield...

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