A UNIQUE EAST MIDLANDS LONG INCOME LOGISTICS INVESTMENT OPPORTUNITY - MANTON WOOD, S80 2RT - Commercial Property Partners
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A UNIQUE EAST MIDLANDS LONG INCOME LOGISTICS INVESTMENT OPPORTUNITY MANTON WOOD, S80 2RT DHL Supply Chain – Excellence. Simply delivered.
2 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT
INVESTMENT
SUMMARY
nn Build-to-suit distribution warehouse investment nn To be let to DHL Supply Chain Ltd on a new 20 year
totalling 538,280 sq ft (50,008 sq m) lease following completion of the building scheduled
for September 2020
nn The unit will operate as a strategic DHL Supply Chain
campus for the East Midlands region nn The lease will be subject to 5 yearly rent reviews
annually compounded at 2% per annum
nn The East Midlands logistics market was the principal
contributor to take-up across the UK, followed by nn Proposed initial rent of £3,033,773 per annum,
Yorkshire & North East with a combined total of 58% reflecting £5.64 per sq ft
of the overall market
nn DHL Supply Chain Ltd benefit from a Dun &
nn Strategic East Midlands location in Manton Wood, Bradstreet rating of 5A1, indicating a minimum risk of
which is within 2 minutes of the A1 and 15 minutes of business failure
J31 M1
nn Freehold
nn Base build specification to include high-tech
lighting, heating and roof sprinklers, commanding We are instructed to seek offers in excess of £61,839,000
a premium rent (Sixty One Million Eight Hundred and Thirty Nine
Thousand Pounds) subject to contract and exclusive of
nn The warehouse also benefits from 18m minimum VAT. A purchase at this level reflects a Net Initial Yield of
eaves height (with a 28m high-bay section extending 4.75% and a capital value of £115 per sq ft assuming
to c.127,000 sq ft), maximum yard depth of 135m, purchaser’s costs of 3.28%.
loading capacity of between 60-70 kN/ sq m and an
anticipated BREEAM ‘Very Good’ rating The deal will be structured as a two stage payment
forward commitment.
nn The site extends to approximately 30.96 acres
(12.53 ha) providing a low site density of 36%
For indicative purpose only
A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 3
Worksop
Town Centre
Worksop
Railway Station
B&Q
M1
(10 miles)
Manton Wood
Enterprise Park
PHASE 3
PHASE 2
Wilko
A57
A1
(1.25 miles)
4 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT
LOCATION & SITUATION
Worksop is in the county of Nottinghamshire approximately
24 miles (39 km) north west of Nottingham, 40 miles (64km)
AD
south of Leeds and 60 miles (96km) south east of Manchester. A60
RO
GATEFO
HE
Worksop benefits from outstanding connectivity to the YT
BL
L
KILTON HIL
RD
Midlands, Yorkshire and the North, owing to its strategic
RO
positioning just 10 miles east of Junction 31 of the M1
A
D
D
OA A1
Motorway. The A57 runs on the east west axis immediately WORKSOP RE
TFOR
DR
ER
P O T T S T REET
to the south of Worksop, whilst the A1 runs on the north B6
south axis to the east. The property itself is accessed via the
04
0
A57, providing immediate access to the A1 and J31 of the M1 A57
A57
Motorway. The A1 is just 1.25 miles east of the subject
B60 3 4
WORKSOP
GOLF CLUB
property and provides direct access into Central London. It
also feeds directly onto the A1(M) as well as the M18 at A614
AD
U E
RO
EN
Junction 2 to the North. AV
ON
E
RT
RE
LE
ET
OL
L IM
Worksop benefits from good rail services, with Worksop
Railway Station providing regular direct services to
Sheffield, Leeds and Lincoln. Both London and Manchester
can be accessed directly via Sheffield Station which is just
M65 Hull
Blackpool
30 minutes from Worksop. Doncaster Sheffield Airport is just
M62
17 miles to the north and provides both long and short haul
Leeds
international flights. 1.22 million passengers passed through 17
IMMINGHAM
Liverpool Manchester A38
this airport in 2018 alone. Manchester Airport, East Midlands 20
32
A1(M)
Manchester 14
Airport and Leeds Bradford Airport are also all located withinLiverpool
Airport M56
Airport Sheffield
a 60 mile radius of Worksop. Peak M1 A1
District
M6
The location is also strategically located close to several key Stoke
Derby
A41 26 Nottingham
ports, namely, the Port of Hull and the Port of Immingham East A52
Midlands Airport 23
which are both within 55 miles north east of Worksop. Shrewsbury
The Port of Immingham is the UK’s largest port by M54 11
7
M42 22 Leicester Peterborough
A47
21
tonnage, handling around 55 million tonnes per year. The 6 6 9
Birmingham M6
port can handle vessels carrying cargos of up to 130,000 2 A1(M)
A1
19 A14
tonnes and is less than 24 hours from a European market 9
B’ham
2 Coventry 1
Northampton
M5 Airport
of over 170 million people. Cambridge
A44 Worcester
M40
A1
M1
10 13
A1(M) M11
A40
11 Cheltenham
11 Luton
Luton Stansted
A40
A40 Airport
9 2
M5 Oxford
M25
Newport M40
A34 London S
Ports miles km Routes miles km M4 Road Networks miles km
M4 Cardiff City
Heathrow
Immingham 52 84 Worksop 3 4.8
Bristol A1 M4 1.25 Airport 1.6
M3
Hull 55 89 Nottingham 24 39 M1 (Junction 31) 10 16 M
Liverpool 93 150 Leeds 40 64 M18 (Junction 2) 16 26
Felixstowe 167 269 Manchester 60 96 M18 (Junction 2) 34 55
Southampton 187 301 London 150 241
A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 5
DEMOGRAPHICS
Worksop is considered a key distribution location given its
strong demographic and locational characteristics. As
labour is becoming more and more critical in terms of UNEMPLOYMENT RATES
occupier’s warehousing decisions, Worksop is perfectly
suited to accommodate modern occupier needs going nn UK – 3.9%
forward. This can be further illustrated by the fact that
Amazon and other major occupiers have been committing nn Yorkshire & The Humber – 5.2%
to significant warehouse facilities in the northern East
Midlands and Yorkshire over the last 24 months. nn North East – 5.1%
Aberdeen
Worksop sits in Bassetlaw within the Sheffield City region nn East Midlands – 4.7%
which has a total population of 1.8m people. The South
Yorkshire region has the largest resident and working Dundee
population in the UK, outside London and the South East,
with a population of 1.34m.
M90 Edingburgh
M9
Glasgow M80
M8
AVERAGE ANNUAL SALARIES M77
M74
£35,000 £34,500
£30,000 £27,508
Newcastle
£25,000
A1(M)
£20,244 Middlesborough
£20,000 M6
£15,000
A1(M)
£10,000
Leeds
M65 M62 Hull
£5,000 M6
M62
M1 M18
Liverpool Sheffield
Manchester
0 M56
Manton Wood
M1
UK London Worksop M6
Nottingham
M54 M42
Leicester
Birmingham M6 A1(M)
M42
Coventry
Almost 3 million people can reach M1
M50
M11
Manton Wood within a 45-minute drive. M40
A1(M)
M5
M25
M4
M4
Cardiff London
Bristol M26
M2
M3
Average annual salaries in Worksop are M23
M20
M5
26% below the national average for UK.
Southampton
Brighton
Portsmouth
Exeter
Over 1.4m working age people live within Plymouth
a 24-mile radius.
50 Miles 100 Miles 150 Miles 200 Miles
Source: ONS6 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT
DESCRIPTION
COMAH REGISTERED
The property will comprise a state of the art distribution nn Minimum clear eaves heights of 18m with
warehouse extending to 538,280 sq ft. The property will approximately 127,000 sq ft of the facility being
be developed by DHL and will act as a multi-user facility constructed to 28m height
for the tenant which, when fully operational, will have
multiple contracts running on site, with the high bay area nn 40 dock level loading doors and 4 level access
being fully automated. loading doors
The site will benefit from being a Top Tier COMAH nn 158 HGV parking spaces, 26 trailer parking spaces and
registered warehouse, which enables occupiers to store 428 car parking spaces
hazardous materials in the facility safely. The tenant has
decided to register this site specifically with COMAH status at nn Uniform floor loading of 60kN per m2 and 70 kN per
its own cost, demonstrating its commitment to the location. m2 to the high bay area
Maximum yard depth of 135m
ENHANCED BASE BUILD nn
nn Gas heating throughout
The property is being designed to an enhanced base build
specification – items such as heating, lighting and roof
nn LED lighting throughout
sprinklers are forming part of the base build design, which
commands a significant rent premium over and above a
nn 30,000 sq ft structural mezzanine to be constructed
typical ‘shell’ constructed fit out.
out of steel and concrete, with a minimum eaves
height of 8m
The base build specification of the unit will include
the following:
nn Sprinkler system
ENVIRONMENTAL IMPROVEMENT AND CARBON FOOTPRINT REDUCTION MEASURES
DHL is committed to reducing the impact of its business on the environment. By the year 2050, the tenant intends for all logistics related
emissions to be reduced to net zero. The following features assisting in the environmental improvement of the building are included
within this performance specification:
BREEAM The LED lighting FE FE
Roof Access
Point
Roof Access
Point
FE FE FE FE
1 N° Level Access
‘Very Good’ used throughout
Doors
the facility will
significantly
exceed the requirements FE
of Building Regulations FE
High Bay Low Bay Warehouse COMAH Area
28M HIGH
COMAH AREA
BAY AREA
EPC Solar thermal
A-22 rating pre-heating of FE FE
hot water
Main Office
Roof Access
FE
Smart meters Site specific
Point
Level Access Door
4 x 4.5m
optimised Warehouse
Toilet Pod 2000
2 N° Balers
natural light to
Foul Drainage Foul Drainage
13 N° Dock Doors
14 N° Dock Doors
1 N° Level 13 N° Dock Doors 2 N° Level Access MHE Workshop Battery Charge
Access Doors Doors
warehouse via
FE FE FE
C C C C C C C C C C
roof lights and/or wall
Transport
Office
lights considering area Condenser Smoking
Shelter
Provision for
platform lift 1100
x 1450mm
N
use, light and heatA Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 7
THE SITE
As per the below plan, the construction of Phase 1 is the ACCOMMODATION
start of a wider 57.49 acre development being brought
forward by DHL. Plans are in place to develop out two Accommodation Sq.ft. Sq.m.
more phases to provide at least a further 450,000 sq ft Warehouse 476,150 44,235.4
(subject to planning). Offices 20,000 1,858.0
Transport Offices 5,000 464.5
Manton Wood has, and continues to receive strong Gatehouse 300 27.9
occupier interest primarily due to its abundant and cheap Structural Mezzanine 30,000 2,787.1
labour supply and favourable locational demographics.
Plant Deck 6,830 634.5
The area has become an established logistics location with
Total 538,280 50,007.9
national occupiers including B&Q, Wilko and now DHL.
The site extends to approximately 30.96 acres (21.53 ha) MH
IC TB
LP
providing a low site density of 36%.
LP NP
SP
MH
LP
SP LP
BT
MH IC
T RS
WS MH NP LP BT
LP
TB RS
LP
CB IC MH
T LP
WS FH LP MH
LP FH MH SP
BT
IC MH RS SP LP
MH MH MH LP
LP
NP MH
A57
BT SP
MH MH
LP TB LP
NP LP BT
LP MH LP MH MH
IC MH BT
NP LP MH MH TB
LP NP
MH TB
TB LP
MH MH
LP MH LP
TB TB
LP LP LP
MH
RS
LP LP
RS RS LP
LP
LP RS LP RS
LP
RS
SP LP
RS LP LP
LP NP NP
LP
LP SP SP
PT
NP
B/W
ES
SH
BU
High Bay
B/W
Unit 1
ES
SH
BU
C C C C C C C C C C
B/W
C C C C C C C C C C
ES
Phase 2
B/W
SH
BU
B/W
21.30 ACRES
Exis
ting
B/W
(8.85 HA)
Foo
tpa
th
B/W
ES
B/W
SH
BU
B/W
Phase 3
5.14 ACRES
(2.08 HA) ac
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For indicative purpose only8 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT
COVENANT
DHL – The Logistics Company for the World.
TENURE
DHL is the leading global brand in the logistics industry.
The property is held Freehold under the Title number
The DHL family of divisions offer an unrivalled portfolio of
NT326273.
logistics services ranging from national and international
parcel delivery, e-commerce shipping and fulfillment
solutions, international express, road, air and ocean TENANCY
transport to industrial supply chain management. With
about 380,000 employees in more than 220 countries and The completed development will be let on a full repairing
territories worldwide, DHL connects people and businesses and insuring lease to DHL Supply Chain Ltd for a term of 20
securely and reliably, enabling global trade flows. With years. The initial annual rent will be £3,033,773 per annum
specialized solutions for growth markets and industries equating to £5.64 per sq ft on the base build of the property.
including technology, life sciences and healthcare, energy,
automotive and retail, a proven commitment to corporate The rent will be reviewed five yearly equivalent to 2% per
responsibility and an unrivalled presence in developing annum annually compounded.
markets, DHL is decisively positioned as “The logistics
company for the world”.
DHL is part of Deutsche Post DHL Group. The Group
generated revenues of more than 61 billion euros in 2018.
DHL Supply Chain Ltd benefits from a D&B rating of 5A1
indicating a minimum risk of business failure.
DHL Supply Chain LTD 31/12/2017 31/12/2016 31/12/2015
Sales Turnover £3,150,192,000 £3,086,252,000 £4,010,360,000
Pre-Tax Profits £78,899,000 £99,414,000 £108,161,000
Net Worth £436,046,000 £354,148,000 £360,100,000A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 9
OCCUPATIONAL MARKET
COMMENTARY
The UK’s logistics occupational market is as strong as ever EAST MIDLANDS, YORKSHIRE AND NORTH EAST PRIME
with 2018 take-up totalling 31.50m sq ft across 101 deals; INDUSTRIAL RENTAL GROWTH (2008 – 2018)
this was 82% higher than 2017 and exceeded the annual £7.00
£6.00
record from 2016 of 29.35m.
£5.00
£4.00
37% of total take-up was in the East Midlands, setting the £3.00
highest proportion for a region since 2006. Yorkshire and
Jun 08
Dec 08
Jun 09
Dec 09
Jun 10
Dec 10
Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Dec 15
Jun 16
Dec 16
Jun 17
Dec 17
Jun 18
Dec 18
the North East followed with a strong performance of
21% of total take-up. Whilst Manton Wood falls within North East Yorkshire East Midlands
the East Midlands, it is near to Yorkshire and the North
East region. Combined, these regions accounted for 58% MIDLANDS LOGISTICS TAKE-UP (2006 – 2018)
of total take-up. 16.0
14.0
12.0
Average deal size in the East Midlands was more than 10.0
392,000 sq ft in 2018. This is testament to the ever- 8.0
6.0
expanding occupier requirements. The size band of
4.0
100,000 sq ft to 150,000 sq ft is starting to be considered as 2.0
just an extension of the mid-box market – certainly in the 0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
East Midlands.
Secondhand New & Early market Average
There remains a significant demand / supply imbalance
YORKSHIRE & NORTH EAST LOGISTICS TAKE-UP (2006 – 2018)
in the logistics market, with current supply likely to only
8.0
provide 12-months of take-up (based on 2018 figures).
7.0
This acute supply/demand imbalance, coupled with the 6.0
excellent locational demographics in Manton Wood has 5.0
applied upwards pressure on rents with the prime levels 4.0
3.0
now being achieved at around £6.00 per sq ft.
2.0
1.0
0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Secondhand New & Early market Average
A SCHEDULE OF COMPARABLE LETTINGS ARE OUTLINED BELOW:
Building Tenant Date Size (sq.ft. Build status Rent (PSF) Lease terms
DC3, Prologis Park, Pineham Morrisons Jul-18 372,284 Second Hand £6.50 10 Years
Big Box 2, East Midlands XPO / Nestle Mar-18 638,278 New Build £6.35 16 Years
Gateway, Derby
DC3, Prologis Park, Anixtier Dec-17 213,526 New Build £5.85 20 Years
Lichfield +10p fit out
Phase 1, Mountpark, Eddie Stobart Nov-17 314,500 New Build £5.85 15 Years
Bardon
Brackmills,Point Decathlon Jan-17 405,000 New Build £6.50 15 Years
Brackmills10 A Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT
INVESTMENT
MARKET COMMENTARY
Investment into the UK industrial sector recorded another nn Excellent ‘blue-chip’ covenants providing secure
very strong year thanks to an extremely busy fourth income streams and strong re-gear potential;
quarter. Total transaction volumes reached £6.83bn which
is broadly in line with the previous record set in 2017. UK nn Long dated income
distribution and logistics assets specifically, reached £2.38
billion in 2018, in line with the 5-year average. Industrial nn Excellent property fundamentals including low site
as a sector, has fared extremely well despite the political cover, large yard, eaves height (12+m);
and economic headwinds faced over the past 12–24
months. The industrial investment market is underpinned nn Fixed rental uplifts that guarantee performance
by a very robust occupational story driven by a structural
shift in demand, and an acute undersupply of space. nn New-build assets
Industrial sector returns reached 18.1% for the whole of nn Strong logistics locations with a focus on access to
2018, thanks largely to capital value growth of 12.4%. cheap labour
Given potential headwinds within the global economic The subject property satisfies all the above.
market, many investors have adopted a ‘flight to prime’
approach with their investment rationale. Within the
logistics sector, such attributes would include:
A SCHEDULE OF KEY PRIME LOGISTICS TRANSACTIONS ARE OUTLINED BELOW:
Property Date Area Term certain Rent NIY Purchase Capital Value Vendor Purchaser
(Years) (PSF) price (PSF)
Next – Waltham Under Offer 322,335 15 Rent bid 3.15% £62,500,000 £194 Next LaSalle
Cross down
Anixter – June 2018 213,000 20 £5.85 4.44% £25,845,000 £121 Prologis Aberdeen
Fradley Park Standard
DHL – Avonmouth Dec 2017 159,693 20 £8.22 4.37% £28,120,000 £176 DHL BlackRockA Unique East Midlands Long Income Logistics Investment Opportunity – Manton Wood, S80 2RT 11
TRANSACTION STRUCTURE DEVELOPMENT TIMESCALES
The transaction is being structured on a two cheque The following development and transaction timescales are
forward commitment basis. Further information can be envisaged:
provided on request.
1 2
THE PROFESSIONAL TEAM
The main professional team for the development comprises: July 2019 August 2019
nn Receipt of detailed nn Construction begins
nn Developer – DHL Real Estate UK Ltd planning consent
post judicial
review period
nn Architects – UMC Architects / CDM Contract Services
nn Land purchase
nn Project Manager – Lysander Associates
nn Planning Consultant – Quod Planning
nn Mechanical and Electrical Engineers – Synergy
3 4
Building Services Solutions
nn Contractor – Currently out for tender
September 2020 September/October 2020
nn Structural Engineer – Bradbrook Consulting nn Construction nn Tenant continues
completion warehouse/office
Further information can be provided on request and is fit-out
nn Balance payment
contained within the data room.
nn Lease begins,
tenant enters into
occupational lease
EPC & BREEAM
Based on the proposed specification, it is anticipated that
the property will have an EPC rating of A-22 and a
BREEAM rating of ‘Very Good’.
PROPOSAL
DATA ROOM We are instructed to seek offers in excess of £61,839,000
Access to the data room is available upon request.
(Sixty One Million Eight Hundred and Thirty Nine
Thousand Pounds) subject to contract and exclusive of
VAT. A purchase at this level reflects a Net Initial Yield of
VAT 4.75% and a capital value of £115 per sq ft assuming
The property has been elected for VAT. It is envisaged that purchaser’s costs of 3.28%.
the sale will not take place by way of a Transfer of Going
Concern (TOGC). The deal will be structured as a two stage payment
forward commitment.Jack Cox John Doleman +44 (0) 20 7182 2458 +44 (0) 20 3214 1911 +44 (0) 7949 517 506 +44 (0) 7464 980 354 jack.d.cox@cbre.com john.doleman@cbre.com Tom Woolhouse Robbie Offer +44 (0) 20 7182 2113 +44 (0) 20 3257 6160 +44 (0) 7818 012 428 +44 (0) 7979 970 875 tom.woolhouse@cbre.com robbie.offer@cbre.com Roger Haworth Richard Wright +44 (0) 7872 377 153 +44 (0) 7708 811 832 roger@cppartners.co.uk richardwright@cppartners.co.uk Subject to contract & exclusive of vat – April 2019 Disclaimer: CBRE Limited & Commercial Property Partners CBRE Limited & Commercial Property Partners on its behalf and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. Whilst CBRE Limited & Commercial Property Partners uses reasonable endeavours to ensure that the information in these particulars is materially correct, any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection, searches, enquiries, surveys or otherwise as to their accuracy. CBRE Limited & Commercial Property Partners as such cannot be held responsible for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss of profits resulting from direct or indirect actions based upon the content of these particulars. 3. No person in the employment of CBRE Limited & Commercial Property Partners has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all purchase prices and rents are correct at the date of publication and, unless otherwise stated, are quoted exclusive of VAT. Lease details and service ground rent (where applicable) are given as a guide only and should be checked and confirmed by your solicitor prior to exchange of contracts.
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