MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT - Levy Real Estate
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MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT x DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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INVESTMENT SUMMARY
Modern East Midlands industrial Freehold investment opportunity totalling 42,528
sq ft with additional 19,886 sq ft overflow car park.
Site area of depot approximately 3.75 acres (1.51 hectares), reflecting a low site
density of 26%.
Additional 0.75 acres (0.3 hectares) of secure fenced hard surfaced car parking on
adjacent site.
Situated on the popular and established Warth Park, with surrounding occupiers
including Howdens UK Ltd, AirWair International Ltd, DSV, Gem Distribution
Limited and Asda.
Well specified ‘cross-dock’ unit developed in 2013 and benefiting from a minimum
clear eaves height of 6m, 26 level access loading doors, 5 dock level loadings
doors, 65 car, 10 HGV and 56 van parking spaces.
DPDGroup UK Ltd is rated ‘5A1’ by Dun & Bradstreet and is the UK’s fastest
growing major parcel delivery company.
Let to DPDGroup UK Ltd on two co terminus new 20 year full repairing and insuring
leases expiring 8th Sept 2033 providing an unexpired term of 16 years 10 months.
The passing rent is £424,548 per annum, made up of £364,890 for the Depot and
£59,658 for the additional car park.
Parcel depot rent £364,890 pa (£8.58 per sqft) is calculated on a base rent of £221,145.60 pa £5.20 psf multiplied by 1.65 to account for the low site density
We are instructed to seek offers in excess of £7,960,000 (Seven Million Nine Hundred and Sixty Thousand Pounds), subject to contract and exclusive of VAT. A
purchase at this level reflects a net initial yield of 5.00% and a capital value of £127 per sq ft, assuming purchaser’s costs of 6.67%.
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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LOCATION
Raunds is located in East Northamptonshire 21 miles (34 km) north-east of Northampton. Warth Park is situated adjacent to the A45 main arterial route on the Northern edge
of Raunds and is within a short drive of Rushden and Wellingborough. The A14 / A45 intersection is just 3.4 miles (5.4 km) away and provides fast access to the East Coast
Ports and the A1(M) at Huntingdon some 18 miles (28.8 km) to the east. Junction 15 of the M1 lies 21 miles (34 km) to the west and is accessed via the A45 dual carriageway.
DRIVE TIMES
NORTHAMPTON 30 mins
PETERBOROUGH 30 mins
BEDFORD 30 mins
MILTON KEYNES 40 mins
COVENTRY 50 mins
CAMBRIDGE 50 mins
LEICESTER 50 mins
BIRMINGHAM 70 mins
LONDON 80 mins
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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SITUATION
Warth Park is an established industrial and distribution location in Northamptonshire on the A45 corridor approximately 3 miles from J13 of the A14, which provides access to
the ports of Felixstowe and Harwich and directly links to the A1(M) dual carriageway and the M1 motorway. Since 2010 Roxhill have been developing Phase II of Warth Park
which comprises a total of 80 acres and is home to Dr Martens AirWair (129,000 sqft), DSV (411,330 sqft) and Howdens Joinery Group PLC (655,000 sqft). Future development
is also set to take place on the Park with two further facilities due to be constructed following the success of the Howdens project. A supermarket facility for Asda is also soon
to be constructed at the entrance to the scheme adjoining London Road.
Warth Park Site Plan
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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DESCRIPTION
Constructed in 2013 the subject property comprises a 42,528 sq ft modern highly specified ‘cross-
dock’ parcel distribution facility on a 3.75 acre site, providing a very low site density of 26.1%, with
integral two storey office accommodation.
The warehouse benefits from an internal eaves height of 6m, 30kn/m2 floor loading capacity, 26
level access loading doors, 5 dock level loading doors, 65 car, 10 HGV and 56 van parking spaces
(Full specification available upon request). Warranties available to be assigned to purchaser.
The additional secured fenced car park comprises a total 19,886 sq ft of 80 van parking spaces
located to the South West of the main depot site.
SITE
The combined sites extend to 4.5 acres (See site plan below), encompassing both the depot 3.75
acres (Blue) and the additional car park 0.75 acres (Green).
Depot
Car Park B2C Parcel Depot
The subject property is used by DPD as a ‘Business to Consumer’ (B2C) state-of-the-art parcel delivery
hub. As technology and information systems improve parcel delivery companies have adapted to meet
increasing consumer demands and standards for fast delivery online retail.
In the last 2 years DPD have opened 6 purpose built distribution centres each capable of sorting 30,000
parcels a day, double the volume of the depots they replaced.
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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ACCOMMODATION
The building has been measured in accordance with the RICS Code of Measuring Practice, Sixth Edition and provides the following gross internal floor areas:
DESCRIPTION SQ FT SQ M
Depot 37,658 3,498.51
G/FF Office 4,870 452.43
TOTAL DEPOT 42,528 3,950.94
Additional Car Parking 19,886 1,847
TENANCY
The current leasehold interest in the depot site and additional car park are held in two coterminous leases to DPDGroup UK Ltd on the following terms:
Depot Lease:
Review
Tenant Lease Start Lease Expiry Annual Rent (PSF) Leased Area Rent Review Next Review
Multiplier
5 yearly rent review pattern to the higher of current
rent or OMV of a similar/standard institutional
DPDGroup UK Ltd 9th Sept 2013 8th Sept 2033 £364,890 (£8.58 psf) 42,528 sq ft X1.65 9th Sept 2018
industrial building calculated at a multiplier factor of
1.65
Additional Car Park Lease:
Tenant Lease Start Lease Expiry Annual Rent (PSF) Leased Area Rent Review Next Review
The rent will increase on a percentage basis in accordance that
DPDGroup UK Ltd 9th Sept 2013 8th Sept 2033 £59,658 (£3.00 psf) 19,886 sq ft 9th Sept 2018
which is agreed at each 5 yearly rent review for the main depot.
TENURE
Freehold (Depot – Title No. NN316043 & Car Park – Title No. NN327347).
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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COVENANT INFORMATION
DPDGroup UK Ltd (Company No. 00732993)
DPDGroup UK Ltd, formerly GeoPost UK Ltd, is a wholly owned subsidiary of La Poste and offers a
full range of domestic and international, door to door, collection and delivery parcel services. The
group, which changed its name from GeoPost UK Ltd to DPD Group UK Ltd, reported a 26% rise in
turnover to £872.5m according to its financial statement for the year. DPD Group UK Ltd is a wholly
owned subsidiary of the French postal company, La Poste and has two recognisable trading names
in the UK; DPD and Interlink Express. DPD targets larger B2B (business) and direct B2C (customers)
and is the leading provider to the telecommunications, e-commerce and retail stores. La Poste has
invested substantially in DPD’s infrastructure and over the last 5 years over £250 million into its UK
business. The company is highly regarded within the UK parcel delivery sector by the general public
and companies.
DPD Group is growing its share of the home delivery market via an in-house real time, interactive
technology platform and parcel network. This expansion has led to the development of multiple
purpose built distribution depot facilities across the UK.
DPDGroup UK Ltd is rated ‘5A1’ by Dun & Bradstreet, representing a ‘Minimum’ risk of business
failure having reported the following financial information:
Fiscal Non- Fiscal Non- Fiscal Non-
DPDGroup UK Limited Consolidated 04 Jan Consolidated 29 Dec Consolidated 30 Dec
2015 2013 2012
Sales Turnover
£872,547,000 £492,252,000 £396,592,000
Profit/(Loss) Before
Taxes £104,329,000 £90,058,000 £52,925,000
Tangible Net Worth
£53,026,000 £55,257,000 £62,901,000
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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OCCUPATIONAL MARKET
Since the depot’s construction Warth Park has continued to expand, with Phase II attracting occupiers such as Howden Joinery Group PLC, Dr. Martens AirWair and DSV. Due
to the success of the development as a distribution hub Roxhill now wish to expand their operations with Phase III consisting of two further facilities to the south of the recently
developed 655,000 sqft Howdens unit, let at £5.15 psf and sold to Tritax in Sept 2015.
Overall levels of supply in the UK has decreased from 94 million sq ft in 2009 to 30 million sq ft in July 2016, which gives a national vacancy rate of just 7.1%, which is significantly
below long term averages. Given the continued shift to online retail we believe that logistics take-up levels will remain robust. Undoubtedly the most active occupier this year in
terms of take-up has been the online retailing giant Amazon, and with the pending launch of ‘Amazon Fresh’ and ‘Prime Now’ competing retailers will have to adapt their supply
chains in order to compete. As a result, the parcel delivery sector will continue to grow in parallel to the online retailing boom. The combination of strong levels of take-up and
low national vacancy will ensure that rents maintain their upward trajectory.
Date Address Tenant Rent Lease Term Unit Size
- 25,000 – 50,000
Dec -16 Cransley Park, Kettering AVAILABLE Q1 2017 £6.50 psf
sqft
-
Dec – 16 Unit 4 Telford Way, Kettering AVAILABLE £5.50 psf 28,473 sqft
UNDER OFFER
Dec -16 Unit 5 Wendel Point, Wellingborough £5.50 psf 10 years 45,965 sqft
(Completion Jan 17)
UNDER OFFER
Dec -16 Unit C Pinnacle 15, Brackmills £6.00 psf 10 years 34,750 sqft
(Completion Jan 17)
Unit 1 Sommer House Place, UNDER OFFER
Dec – 16 £5.18 psf 10 years 23,142 sqft
Northampton (Completion Jan 17)
Apr – 15 Carousel Way, Northampton Guy Salmon £5.90 psf 25 years 17,461 sqft
Units 1-4 Riverside Industrial Estate,
Mar -15 Lok’nStore £5.92 psf 15 years 37,500 sqft
Northampton
Brackmills 112, Northampton Howdens £5.75 psf 30 years 112,750 sqft
Mar – 15
Jan – 15 Unit 3 Kingsthorne Park, Kettering Certas £5.00 psf 10 years 41,731 sqft
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT
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INDUSTRIAL INVESTMENT MARKET COMMETARY
Over the past five years domestic and international investors have become increasingly comfortable with logistics as an asset class, driven by the major shift towards online
retail and the long term secure incomes the sector offers. The first half of 2016 has also had a robust start to the year, with a total of £1.19 billion of acquisitions taking place
from January to July which is already 55% of the full year total for 2015.
Logistic property will remain highly sought after in 2017, due to its long and often indexed leases, as well as the landlord-friendly dynamics in the occupation market. With
availability at record lows and demand unaffected by uncertainty, the sector looks likely to continue to outperform. Key locations remain the Midlands and M25, though high
rents may stimulate some drift to their edges.
Recent Parcel Delivery Transactions:
Date Address Tenant Area Sq Ft Rent Lease Length Price NIY
Bicester Distribution Park,
Oct-16 DPDGroup UK Ltd 30,012 £197,502 4.7 years c.£3.15m c.5.9%
Bicester
Capacity Dartford,
June -16 TNT UK Limited 132,715 £1,620,450 20 years £33.85m 4.48%
Dartford
May-16 Vertex Park, Bristol DPDGroup UK Ltd 68,792 £639,766 25 years £12.35m 5.00%
Stonebridge Industrial
Sept-15 DPDGroup UK Ltd 69,469 £467,080 25 years £8.83m 5.00%
Estate, Liverpool
Etruria Valley, Stoke-on-
Sept-15 DPDGroup UK Ltd 59,925 £446,411 25 years £8m 5.00%
Trent
Orion Park, Dagenham
June – 15 DPDGroup UK Ltd 65,746 £756,079 25 years £16.975m 4.18%
Sky Park, Exeter
June – 15 DPDGroup UK Ltd 59,869 £489,389 25 years £8.73m 5.30%
DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
MODERN EAST MIDLANDS INDUSTRIAL INVESTMENT x EPCs A copy of the certificate is available upon request. TOGC & VAT The properties have been elected for VAT and it is envisaged that the transaction will be treated as a Transfer of Going Concern (TOGC). Proposal We have been instructed to seek offers in excess of £7,960,000 (Seven Million Nine Hundred and Sixty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.00% and a capital value of £127 per sq ft, assuming purchasers costs of 6.67%. Further Information For further information or to arrange an inspection, please contact: Jeremy Grundy Jack Garrett T: 020 7747 0131 T: 020 7747 0121 M: 07973 667015 M: 07964 275862 jeremy.grundy@levyllp.co.uk jack.garrett@levyllp.co.uk DPDGROUP UK LTD, WARTH PARK, RAUNDS, NORTHAMPTONSHIRE, NN9 6NY
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