L'Oréal, Lakeview Drive, Sherwood Park, Annesley, Nottinghamshire NG15 0DT - Well Secured Distribution Warehouse Investment Opportunity
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Well Secured Distribution Warehouse Investment Opportunity L’Oréal, Lakeview Drive, Sherwood Park, Annesley, Nottinghamshire NG15 0DT
Investment Summary Location
• Strategically located on Sherwood Park, The property is located on Sherwood Park, a The Park’s location enables occupiers to access a
successful mixed use business park, commanding a large, skilled labour force in the local area. Around
one of the most successful business parks
strategic location at the heart of the UK. Situated 1 million people live within a 12 mile radius of the
in the UK, adjacent to Junction 27 of the
approximately 11 miles north-west of Nottingham and Park itself and a number of major conurbations are
M1 motorway. within 1⁄4 mile of Junction 27 of the M1 motorway. located within commuting distance. These include
In addition Sherwood Park is strategically located just Mansfield (6 miles), Nottingham (11 miles) and Derby
• Built in 2006, comprises a high specification (20 miles).
distribution warehouse with ancillary offices 13 miles from East Midlands Airport. The airport
over two floors of approximately offers regular flights to over 90 destinations and is
currently the UK’s primary pure freight airport used
11,711.23 sq m (126,059 sq ft) GIA.
by operators such as DHL, TNT, UPS and Royal Mail.
• Entirely let to L’Oréal UK Ltd and used Sherwood Park has rail connections at Annesley,
linking it to Central Nottingham Station where rail
to supply their luxury brands to the UK
services to London Euston take approximately
and Ireland. 13⁄4 hours.
• Let on a 15 year FRI lease until 1st June
2021.
• Current passing rent of £752,797 pa
(£5.97 per sq ft) rising to a rent of
£831,148 pa from June 2016.
• Long leasehold, held on a 999 year
peppercorn lease from 25th December THE PROPERTY
1995.
• Offers are invited in excess of £8,330,000
(Eight Million,Three Hundred and
Thirty Thousand Pounds) subject to
contract and exclusive of VAT which
provides an attractive net initial yield of JUNCTION 27
M1 MOTORWAY
8.50%, and a reversionary yield of 9.38% in
June 2016, after allowing for purchaser’s
acquisition costs of 6.3%.
This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. This plan is based upon Ordnance Survey Map with the
permission of the Controller of H M Stationery © Crown Copyright.
Sherwood Park
Sherwood Park totals approximately 67 hectares
(165 acres) and is widely considered to be the most
attractive and successful former Enterprise Zone
within the UK. Created in 1995, the Park was master JUNCTION 27
M1 MOTORWAY
planned by the Government Agency, English
Partnerships. The Enterprise Zone status expired in
November 2005. The Government has announced
that Regional Development Agencies (RDAs) will
Prolog
close at the end of March 2012. Economic Phase 5
development and regeneration will in future be led by L’Oreal
Local Enterprise Partnerships.
Prolog Phase 6
Approximately 6,500 people are employed at Jena Tech
Sherwood Park in a mix of over 2 million sq ft of Flextab
Europe
high quality office, industrial and warehouse Polestar
accommodation. Surepak
TTS/Boots Parkside Stobart
Sherwood Park provides an outstanding business Steel
location given its central location within the UK, Prolog
Tsubakimoto
excellent transport links, high quality buildings and Prolog
Phase 1
attractive greenbelt surroundings. These factors Phase 4
Prolog
Phase 2
provide some explanation behind why Sherwood
Park has attracted a range of strong tenants
including: Prolog
• L’Oréal • Autofill
• Rolls Royce • Icon Serviced Offices
• Eddie Stobart • Nottinghamshire
Turbine
• Holiday Inn County Council Surface
Technologies
• Promotional Logistics • One Click Technologies
(Prolog) • Perot Europe
• Homeserve • Polestar
• E.On • SPS Aerostructures
• East Midlands • Pendragon plc
Electricity • Parkside Steel
• Tsubakimoto • Surepak
• Derbyshire Police • Turbine Surface
Authority Technologies
• Eve Telecom • Zeppelin Systems
Description Specification Site Area
The property was purpose built for L’Oréal in The property benefits from the following high quality The property is situated on a broadly rectangular
2006 and comprises a modern detached distribution specification: shaped site of approximately 6.107 acres
facility with ancillary offices totalling approximately (2.472 hectares) providing a site density of 47%.
126,059 sq ft (11,711.23 sq m) GIA. The property is
• Steel portal framed construction providing a
minimum clear internal height to the underside of
of steel portal frame construction arranged in two
the portal haunch of around 10.5 metres (34.4 ft)
bays, with profile steel cladding under a profile sheet
roof which incorporates translucent panels. The unit • Concrete ground floor slab with a designed UDL of
has been fitted out to a high quality specification by 50 kN per sq m (1,000 lb per sq ft)
the Landlord for L’Oréal and the fit-out has been • Fluorescent tube lighting within the warehouse
rentalised.
• High level hot air blowers
Externally, the site has a tarmac covered parking and
circulation area with low level landscaping, a concrete • 6 dock leveller and 2 surface level loading bays
EXPANSION
service yard and loading area and a grassed building • Sprinkler system and foam fire suppression LAND *
apron. At the rear of the building there are two installation
sprinkler tanks and a kiosk containing a diesel
powered pumping system. The site is surrounded by a
• Office specification includes aluminium framed
double glazing, suspended ceilings with recessed
coated steel wire fence with a security gate and
access barriers. There is an area of expansion land to lighting, gas-fired central heating, carpeted raised
the south of the property with an opportunity to access floors and an 8-person lift
develop approximately 43,518 sq ft (4,043 sq m) GIA. • Extensive secure concrete service yard and a
The property has been measured in accordance with segregated car park for 78 cars and bike storage
the RICS Code of Measuring Practice (6th Edition) • CCTV
and provides the following approximate gross internal
floor areas: • External lighting
• Secure perimeter fence
N
Description Area (sq m) Area (sq ft) The tenant has installed a substantial racking system. * Approximate Area for Future Expansion.
This plan is published for convenience of identification. Any boundaries shown are indicative only
and should be checked against the Title Deeds. This plan is based upon Ordnance Survey Map with
Ground Floor Warehouse 10,835.00 116,627 the permission of the Controller of H M Stationery © Crown Copyright.
Ground Floor Office/Ancillary 275.26 2,963
First Floor Office/Ancillary 600.97 6,469
Total 11,711.23 126,059
Tenure Tenancy Covenant Information
The property is currently held on a 999 year The entire property is let to L’Oréal (UK) Ltd on a full With over a century of expertise in the manufacture
peppercorn lease from 25th December 1995. repairing and insuring lease for a term of 15 years of cosmetics, L’Oréal consists of 27 global brands with
The purchaser will however be granted a new commencing on 2nd June 2006 and expiring on 1st June products sold in 130 countries. L’Oréal specialise in
sub-underlease for the remainder of the 999 year 2021. The current rent passing is £752,797 equating to the development of products in five key areas
term less 1 year, at an annual rent of £1,000. £5.97 psf, and with an increase to £831,148 on the including hair care, hair colour, skincare, make-up and
In addition, if desired, the purchaser will have an tenth anniversary in June 2016 (£6.59 psf). fragrances. In 2011 the group achieved €20.3 billion
option to acquire the Vendor’s superior ground lease The tenant has the right to expand the premises by consolidated sales.
exercisable not earlier than 1st October 2013. 43,518 sq ft (4,043 sq m) GIA at their own cost. L’Oréal (UK) Ltd has been present in the UK for
The option price will be £5,000. 75 years. They have 4 distribution centres in the UK
located in Manchester, Bury, Sherwood Park and
Llantrisant. More information can be found at
www.loreal.co.uk
The tenant, L’Oréal (UK) Ltd (company number:
00271555) has a D&B rating of 5A1 and reported the
following financial results between 2008 and 2010:
31st 31st 31st
Year to December December December
2010 (£s) 2009 (£s) 2008 (£s)
Turnover 774,475,000 745,770,000 730,066,000
Pre-Tax Profit 107,014,000 93,180,000 74,042,000
Net Worth 78,267,000 (29,314,000) 44,876,000
Plant & Machinery VAT CAPITAL MARKETS
None of the systems or equipment in the property The property has been elected for VAT purposes,
GROUP CONTACTS
have been tested by Cushman & Wakefield LLP and although the sale of the property cannot be treated as
purchasers may wish to make their own investigations a transfer of a going concern (TOGC), as the
to check that they are in working order. purchaser will be granted a new sub-underlease for L’Oréal, Lakeview Drive,
the remainder of the 999 year term, less 1 year and at
Capital Allowances an annual rent of £100. Therefore VAT will be charged Sherwood Park, Annesley,
We understand that there are no transferable capital
on the purchase price.
Nottinghamshire
Purchaser’s notional cost are increased to reflect
allowances available. SDLT payable on the VAT element for the purchase NG15 0DT
price. Therefore normal purchaser’s costs are For further information or to arrange
increased to 6.3%. an inspection please contact:
Proposal MIKE BURDEN
Tel: 020 7152 5086
We are instructed to seek offers for the long Email: mike.burden@eur.cushwake.com
leasehold in excess of £8,330,000 (Eight Million,
Three Hundred and Thirty Thousand Pounds), RICHARD PEACE
subject to contract and exclusive of VAT. Tel: 020 7152 5283
Email: richard.peace@eur.cushwake.com
A purchase at this level would reflect an attractive net
initial yield of 8.5% and a reversionary yield of EMMA DAWES
9.38% in June 2016 assuming purchaser’s costs of Tel: 020 7152 5890
6.3%. Email: emma.dawes@eur.cushwake.com
Cushman & Wakefield LLP
43/45 Portman Square
London
W1A 3BG
www.cushmanwakefield.com
July 2012
MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991
Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or
lessors of this property whose agents they are, give notice that: (1) The particulars are produced
in good faith, are set out as a general guide only and do not constitute any part of a contract.
(2) No person in the employment of the agent(s) has any authority to make or give any
representation or warranty whatever in relation to this property. (3) This property is offered
subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT.
(4) Nothing in these particulars should be deemed to be a statement that the property is in good
condition or that any services or facilities are in working order. (5) Unless otherwise stated, no
investigations have been made regarding pollution or potential land, air or water contamination.
Interested parties are advised to carry out their own investigations if required.
‘Cushman & Wakefield declare that a partner of C & W has a personal interest in the subject
property’.
www.cushmanwakefieldinvestmentsales. co.uk/cw/loreal View Location Map on your Smartphone The EPC can be downloaded from www.cushmanwakefieldinvestmentsales. co.uk/cw/loreal and click ‘key documentation’ tab
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