LOW SITE COVER PARCEL SORTATION HUB INVESTMENT WITH RE-DEVELOPMENT POTENTIAL.
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LOW SITE COVER PARCEL SORTATION HUB INVESTMENT WITH RE-DEVELOPMENT POTENTIAL. FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
INVESTMENT SUMMARY
• Rare opportunity to acquire a low site cover parcel sortation hub and headquarters
investment.
• Newcastle-Under-Lyme is a strategic West Midlands industrial destination, with an
established occupier base and strong communication links.
• Prominent unit located off the A34 at the Parkhouse Roundabout, 2.9 miles north of
Newcastle-Under-Lyme.
• 103,441 sq ft unit on a site of 9.47 acres (3.83 hectares) with a very low site coverage
of 22%.
• Passing rent of £608,040 per annum, equating to £5.88 psf.
• Let to the FedEx UK Limited on a full repairing and insuring lease (subject to Schedule of
Condition) until 1st February 2021, providing approximately 2.7 years unexpired term.
• FedEx UK Limited is part of FedEx Corporation a global express delivery business
employing over 400,000 people, operating out of 220 countries and with an annual
turnover of over $60bn dollars.
• The warehouse provides ideal specification to suit a modern parcel delivery operation
with a high number of dock level loading doors, HGV and vehicle parking spaces as well
as loading to three elevations.
• The property is one of only two parcel sortation hubs that FedEx operate in England
the other being at Marston Gate, Milton Keynes.
We are instructed to seek offers in excess of £8,770,000 (Eight million seven hundred
and seventy thousand pounds), subject to contract and exclusive of VAT. A purchase at
this level reflects a 6.50% Net Initial Yield after allowing for purchaser’s costs of 6.68%.
This price equates to a low capital value of £85 per sq ft.
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
14
1. Subject Property
2. Ibstock
3. ForFarmers
4. Makro
5. Conviviality Retail
6.
A34
ABV House
7. International Decorative
- Tow
Services
8. Regina Industries
ards
9. Natwest
10. Parkhouse Industrial Estate
New
11. Rosevale Business Park
castl
12. FedEx Trailer Storage
13. Aggregate Industries 11
e-Un
14. High Carr Business Park
der-L
yme
10
13
12 1
8
9
6
7
2
5
A34 -
Towa
rds A
500
4
3
Boundary for indicative purposes only
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
A595
M6 A19
A1M
A170
Scarborough
LOCATION CONNECTIVITY SITUATION
A19 A64
A65 A61
Morecambe
A59 A166
M6 Harrogate
York A614
A1M A1079 A165
A59
A19
Blackpool
M55
BRADFORD
Preston
M55
a646 M62
Hull M6
Blackburn
Halifax
LEEDS M62
Distance to Key Centres
M62
A500
Southport a666
A6033
A15 J16
A500
M6 M62 M18
M66 Huddersfield
M1
M61 Bolton Scunthorpe
A565 Oldham Barnsley Doncaster M180 Tunstall
M58 Wigan Grimsby
M18
MANCHESTER Newcastle-Under-Lyme - 2.9 miles
A628
M57
A15 A46
Knowsley M60
A1M
Rotherham
Stoke-on-Trent - 4.0 miles
M18 A631
M62
LIVERPOOL Widnes
Stockport
SHEFFIELD A16
M53 Runcorn
A34
A156
Manchester - 40 miles A53
A34
M56 A623
Colwyn Bay A55
A49 M1
Lincoln
A158
Birmingham - 52 miles
Chesterfield A60
A614
Chester M6
A1
M6
A523
Hanley
A46
A494 A34 A515 A6
A41 A61
Crewe A16
Road Links
A523
Newark-on-Trent
A5 Wrexham
Stoke-on-Trent
A5
A483
A495
A17 A52
A52
A50
NOTTINGHAM A52 Newcastle-under-Lyme
A495 A53 A52
Derby
A525
A148
A494
M6 (J15) - 5.5 miles
M6
Stafford A515 A607
Stoke-on-Trent
A17
A53
A41 A15 A140
A483
Shrewsbury
A34 A38
A511
A6
Loughborough
A46
A1
M6 (J16) - 4.7 miles A1065
A53
M1 (J24) - 48 miles
A458
M1 A606
M6
M54
A34
A458 A16 A47
M6TOLL
M42 A444 LEICESTER A47
A470
A458 Norwich
A483 A47
A49
Wolverhampton M69 A43 Peterborough
A134 A1065
A146 A50
Nuneaton
BIRMINGHAM Whetstone A141 A11
Rail Links from Stoke-on-Trent Station
A6 A605 A140
A442
A470 A1M
M6 A1065
Yardley A143
A483
Kidderminster A14 Corby A141
M42
A456
COVENTRY Rugby A45 A14
A134
Redditch Royal Kettering Newmarket
Leamington
A53
A449 A14
Newcastle-Under-Lyme is located in SpaNorth Staffordshire,
A44
Northampton St Neots London Euston - 1 hour 27 minutes
M5
M1 A6
A428
A14 A140
The property is located off the Parkhouse Roundabout on
Bury St Edmunds
Manchester Piccadilly - 36 minutes
Worcester
approximately 3 miles west of Stoke-on-Trent,
Stratford-upon-Avon
45 miles north of
A44 Cambridge
A423 A12
Parkhouse Road East which is accessed via the A34 (Talke Road).
A483
Birmingham and 44 miles south of Manchester. Birmingham New Street - 48 minutes A1
The local area is an established industrial and distribution location
Bedford A429
M40
A438
A43
A424 Sudbury Ipswich
The town benefits from excellent road communications, situated with a variety of tenants occupying a mix of smaller multi-let
Hereford A46
M50 Letchworth Felixstowe
Milton A10 A131
A12
adjacent to Junctions 15 andCheltenham
16 of the M6 motorway,Buckingham
accessed via estates, stand alone warehouses and bespoke manufacturing
A470 M5 M1 A1M
A465 Keynes M11
BishopAir Links
A44 A5 Stevenage
Stansted
A470
the A500. In addition, the A50 provides access to the M1.
Gloucester
A429
A34
J9
Stortford
A120
Colchester
A133
facilities. The occupiers are a range of local, regional and
St. A12 nationally based companies.
Stoke-on-Trent Railway Station is located 4 milesOxford
Monmouth
to the south-east A417 A40
J8
A418
Aylesbury
A41
Albans
A10
A465
of the subject property, providingCirencester regular services to Manchester
A449
A48
High
M5
A420
M40
A413
Manchester Chelmsford
M25 Airport - 33 miles A414
Local occupiers include Makro, International Decorating Services
Piccadilly, Birmingham and London Euston. Birmingham International Airport - 60 miles (Saint Gobain), Screwfix, Conviviality and Ibstock Bricks.
Wycombe A12
A470 Abingdon A419
Enfield
Watford
M48 A433
Swindon A34 A127
M4 Pontypridd A429
Newport M4 Southend-on-Sea
Manchester Airport, is located 33 miles to the north of the property.
M4 A406
Maidenhead J15 M25 A130
CARDIFF Reading M4 LONDON
Chippenham Slough
M4 Heathrow
BRISTOL J13
Dartford
Ports
M25 A2
Marlborough
Bracknell Bromley
M5 A350 Newbury Wokingham
A38 Bath
Western- Croydon Sittingbourne
A346 Epsom Sutton A28
Super-Mare A37 Woking M2
Basingstoke M3
A34 M25
Farnborough Maidstone
Sevenoaks M26
Port of Liverpool - 56 miles
A2
Warminster Guildford A28
A21
A361 A24 M23
A303
Andover
EllesmereRoyalPort - 49 miles
Gatwick A229
A31
A361 Godalming
Crawley
A37 A3 A22 Tunbridge Wells
M5 A2070
A303 Winchester Folkstone
Horsham A26
Taunton Salisbury M3
A361
A358
Shaftsbury A36 A272
A272 A259
Yeovil A350 A354 A21
A338
Southampton
A303
M5 A31 M27 Chichester
A37 A27
Brighton
Portsmouth Bognor Regis Eastbourne
A30
A35
30 A35 Bournemouth
Exeter
Poole
Dorchester
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME
Weymouth
ST5 7RB
Torquay
DESCRIPTION SITE PLAN
The property comprises a 103,441 sq ft parcel sortation and distribution warehouse on a large self contained site,
initially constructed in 1987 and then extended in 1992. The warehouse is of steel portal frame and pitched metal
roof construction with approximately 6m eaves height.
Loading to the warehouse is via three elevations and there are 76 dock level loading doors in total.
Within the warehouse the tenant has installed a large sorting machine which is integral to their business. This
machine operates at ground level and on a tenant installed mezzanine level.
To the front of the warehouse is a detached two storey office block with reception. The offices are of a modern
specification benefitting from passenger lift, air cooling/heating, suspended ceilings, recessed lighting, and
WC’s on each floor.
On site there is also a separate vehicle maintenance unit, fuel filling and lorry wash facility as well as a temporary
canopy structure providing shelter to HGV’s where required. We understand the temporary structure is a tenant
alteration and will be re-instated on expiry.
The tenant has installed a number of portkabins at the entrance to the site off Parkhouse Road East for breakout
facilities, transport office and site security. There is a secondary access point off Parkhouse Road East which is
currently only used for emergency access but offers flexibility for the tenant going forwards.
Given its use as a parcel sortation facility, the site has a high number of vehicle movements and a requirement
for a large number of vehicle storage, both HGV and car parking. The site was purpose built with a very low site Boundary for indicative purposes only.
cover of 22% to accommodate over 200 car parking spaces and high number of HGV trailer and separate cab
storage spaces.
There is an easement corridor passing along the south eastern side of the site along with two mine shafts close The subject site totals 9.47 acres (3.83 hectares) with a low site cover of 22%.
to the site boundary, both of which have been filled and capped. These will need to be considered in the context
of any potential future re-development. Further information is available on request.
FLOOR AREA
Loading to 3 elevations Large self-contained parking area The building has been measured in accordance with the RICS Code of
Measuring Practice (Sixth Edition), and provides the following Gross
Internal Area.
76 loading doors Maximum yard depth - 75m Self-contained, secure site
ACCOMMODATION AREA (SQ M) AREA (SQ FT)
Ground Floor Warehouse
8,173 87,973
(including workshop)
TENURE
Ground Floor Reception and Offices 120 1,292
The site is held on a Long Lease for a period of 999 years from First Floor Offices 1,317 14,176
2 February 2006 at a nominal ground rent. TOTAL 9,610 103,441
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
TENANCY INFORMATION
TENANT GUARANTOR AREA (SQ FT) START EXPIRY AWULT RENT (PA) RENT (PSF) COMMENTS
The lease is subject to a photographic Schedule of Condition. On expiry the tenant is
required to remove the following:
1) All parcel sorting machinery
FedEx UK Limited ANC Group Limited 103,441 02/02/2006 01/02/2021 2.7 years £608,040 £5.88 2) Mezzanine floors - excluding warehouse control room and any structural mezzanines
3) Temporary Tent structure
4) Portakabins
COVENANT
FedEx UK Ltd (Company Registration Number 01541168)
The company has a Creditsafe rating of “Very Low Risk” and have reported the following financial results in the last
3 years:
YEAR TO DATE TURNOVER PRE TAX PROFIT SHAREHOLDER’S FUNDS
31/05/2017 £244,923,000 £22,310,000 £158,954,000
31/05/2016 £253,035,000 £32,939,000 £142,738,000
31/05/2015 £244,764,000 £34,279,000 £116,043,000
FedEx UK Ltd is a UK based parcel delivery business with 59 depots across the UK. They operate from 3 main sortation
hubs in Glasgow, Milton Keynes and the subject site in Newcastle-Under-Lyme which which in turn service their local
depots.
FedEx UK Ltd is part of FedEx Corporation a global express delivery business employing over 400,000 people, operating
out of 220 countries and with an annual turnover of over $60bn dollars.
In May 2016 FedEx acquired TNT Express for $4.8 billion to help FedEx further strengthen their presence in the
European market.
The subject site is the Headquarters for the FedEx UK business along with one of their key sortation hubs. FedEx also
occupy a yard opposite the site for excess parking and a number of units on Parkhouse Industrial Estate East which are
used as local depots.
GUARANTOR: ANC Group Limited (Company Registration Number 4269215)
In their last published accounts for the year ending May 2076 the company had Shareholders’ funds of £2.025m.
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
LOGISTICS INVESTMENT MARKET
The UK Logistics market is seeing unprecedented levels of investor demand from both UK based and overseas investors attracted to the positive occupational dynamics across “Big Box”
logistics driven by a lack of supply, limited development and the growth of online retail. Furthermore there is a key focus from investors to try and secure opportunities which would suit
current e-commerce requirements wanting low site cover assets with large parking provisions.
The schedule of comparable investment transactions below highlights the appetite within the current market for distribution assets in strategic locations:
TERM
SQ FT RENT CAP VAL
PROPERTY TENANT CERTAIN NIY PRICE PURCHASER DATE
(GIA) (PSF) (PSF)
(YRS)
RAUNDS
Exertis 245,497 2.0 £5.50 5.85% £21,600,000 £88 NFU Mar-18
Warth Park
NORTHAMPTON
Johnson and Starley 73,556 8.6 £4.08 5.25% £5,350,000 £73 CCLA Dec-17
Brackmills Industrial Estate
MILTON KEYNES
Westcoast Ltd 103,644 3.7 £6.19 4.65% £12,925,000 £125 CBRE GI Dec-17
Emerald Drive
MILTON KEYNES
Hitachi Power Tools (U.K) Ltd 55,773 8.9 £6.25 5.40% £6,050,000 £108 Private Investor Dec-17
Precedent Drive
WEDNESBURY Merseyside Borough
Aalco Metals Ltd 220,897 6.5 £5.19 5.13% £21,000,000 £95 Dec-17
Western Way Council
NEWCASTLE-UNDER-LYME
Saint-Gobain Building Distribution Ltd 71,881 12 £4.36 5.52% £5,325,000 £74 Watford Borough Council Dec-16
Parkhouse Interchange
ST NEOTS
Cath Kidston/Hotel Chocolat 220,493 3 £3.97 5.03% £16,300,000 £74 CCLA Jul-16
Alpha Park
MILTON KEYNES
Yokohama H.P.T Ltd 108,018 3.75 £5.55 5.40% £10,410,000 £96 BMO Jun-16
Dawson Road
Note: Information contained within has been sourced from 3rd parties and whilst we believe it to be correct, we cannot guarantee its accuracy.
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
FEDEX UK LIMITED | PARKHOUSE EAST INDUSTRIAL ESTATE, NEWCASTLE-UNDER-LYME ST5 7RB
VAT EPC
The property is elected for VAT and it is anticipated that the transaction will be treated as A copy of the EPC can be provided upon request.
a Transfer of Going Concern (TOGC).
ENVIRONMENTAL CONTACT
A Phase 1 Environmental report for the site has been prepared by Ambiente LLP. The report is
available on the datasite and a purchaser will be able to take reliance. For further information or to arrange an inspection, please contact:
Under the terms of the lease the tenant is required to carry out any requisite remediation work
to the site in the 12 months prior to lease expiry. In the event of tenant default there is £200,000
held by our client in an escrow account relating to any potential remediation cost. Further
detail available on request.
DATA SITE
There is a datasite available with further information relating to this asset. Access can be WILL DAVIES MRICS DAN GRANT MRICS
provided upon request.
PARTNER PARTNER
PROPOSAL
T 020 3198 4447 T 020 3198 4446
We are instructed to seek offers in excess of £8,770,000 (Eight million seven hundred and M 07919 002 707 M 07956 573 297
seventy thousand pounds), subject to contract and exclusive of VAT. A purchase at this level E will@stonehillpartners.co.uk E dan@stonehillpartners.co.uk
reflects a 6.50% Net Initial Yield after allowing for purchaser’s costs of 6.68%.
This price equates to a capital value of £85 per sq ft. W www.stonehillpartners.co.uk
Important notice: These particulars are not an offer or contract, nor part of one. The sole purpose of these particulars is to provide outline information on this property to prospective purchasers or tenants (as applicable), who are solely responsible for making their own investigations and seeking independent
advice, including the costs of doing so, and forming their own view as to the condition of the property and any related fixtures, fittings, services, equipment, plant and machinery, its and their fitness for their requirements and the accuracy and completeness of the statements herein. These particulars do not
constitute any recommendation or offer to enter into any contract regarding this property and neither Stonehill Partners Limited nor any of its employees, agents or representatives guarantees the accuracy or completeness of any description, dimensions, references to condition, necessary permissions for use and
occupation and other details contained herein. You should not rely on statements by Stonehill Partners Limited in the particulars or orally or in writing (each being a “Statement”) as being factually accurate about the property, its condition or its value. Neither Stonehill Partners Limited nor any of its employees,
agents or representatives have any authority to make any representations about the property, and accordingly any Statement given is entirely without responsibility or liability on the part of Stonehill Partners Limited, the seller(s) or lessor(s) or any of its or their employees, agents or representatives. Any photographs
provided show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only and you must satisfy yourself as to their accuracy. Any reference to alterations to, or use of, any part of the property does not mean that any necessary
planning, building regulations or other consent has been obtained. You must find out by way of your own inspection or in other ways that these matters have been properly dealt with and satisfy yourself as to the accuracy of all such information through your own investigations. To the extent that any third party
information or Statement is included within these particulars, this information has been received and passed on by Stonehill Partners Limited in good faith but without liability or responsibility of any kind. VAT may be chargeable in addition to sums referred to herein and may be subject to alteration. May 2018.
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