RAYNHAM ROAD INDUSTRIAL ESTATE - REVERSIONARY SOUTH EAST MULTI LET ESTATE WITH DEVELOPMENT & ASSET MANAGEMENT OPPORTUNITIES - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
RAYNHAM ROAD BISHOP’S STORTFORD,
INDUSTRIAL ESTATE CM23 5PB
REVERSIONARY SOUTH EAST
MULTI LET ESTATE WITH DEVELOPMENT
& ASSET MANAGEMENT OPPORTUNITIES
INVESTMENT
SUMMARY
• Unique opportunity to acquire an established multi –
let industrial estate in a core South East market 1 MILE FROM M11 MOTORWAY
• Situated off the A1250 Dunmow Road being 1 mile
from Junction 8 of the M11
• Multi let estate comprising of 26 industrial and trade
counter units totalling 101,374 sq ft (GIA), with unit
FULLY LET INDUSTRIAL AND
sizes ranging from 1,626 sq ft to 13,996 sq ft
TRADE COUNTER ESTATE
• 29% of the estate (by floor area) was constructed
since 2010
• Fully let to 18 tenants with a headline rent of £794,225 per
annum, reflecting a low average rent of £7.83 per sq ft
37% OF THE ESTATE
• The estate has an average weighted unexpired lease CONSTRUCTED SINCE 2010
term of approximately 6.7 years to expiry and 3.3 to
tenant break options
• Strong tenant line up to include a number of trade FUTURE REPOSITIONING
occupiers, including Edmundson Electrical, Screwfix AND REDEVELOPMENT
and ITAB Prolight UK Ltd OPPORTUNITY
• Prominent site totalling approximately 9.43 acres,
reflecting a low site density of 31.8%
• Immediate asset management opportunities and
LOW HEADLINE RENT
longer term development
OF £7.83 PSF
• Freehold
Offers are sought in excess of £12,400,000 (Twelve
Million, Four Hundred Thousand Pounds), subject to
contract and exclusive of VAT, which reflects a Net Initial
Yield of 6.00%, assuming purchaser’s costs of 6.71%,
and a capital value of £122 per sq ft.
R AY N H A M R O A D I N D U S T R I A L E S TAT E |
BISHOP ’S STORTFORD | CM23 5PB
STANSTED
AIRPORT
ß CAMBRIDGE M11 (JUNCTION 8)
LONDON à
A1250
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
M6 Toll M42 LEICESTER NORWICH
A1 A47
M6 A5 HINCKLEY A47
PETERBOROUGH A134
A1065
A140
Hams Hall Rail A141
LOCATION
Birmingham A6 A43
Airport Freight Terminal M1
CORBY A10
M69 A11
BIRMINGHAM M6 A605 A1(M)
KETTERING
M5 M42 COVENTRY A14 A141 A1066
RUGBY DIRFT A14 A11 A143
M42 A508 A43
M45 A134
A435 A10 A140
A14
A14
A6 BURY ST
STRATFORD- J16 A428 CAMBRIDGE EDMUNDS Bishop’s Stortford is strategically located in the county of
M40 A423 A428
UPON-AVON A5 J15 A14 Hertfordshire in the South-East of England. The town is
A46 BEDFORD
A1 M11
part of the M11 expansion corridor and well positioned to
A429 M1 A134
A43
benefit from the large population pool of North London
BANBURY IPSWICH
A44 MILTON A505 and the thriving economic corridor between London and
KEYNES
A421 A6
A10 RAYNHAM ROAD A12 A14 Cambridge. There are over 11.2 million people living within
INDUSTRIAL ESTATE
A44 A5 Luton Airport 60 minutes, increasing to more than 23 million within two
A120
London Oxford Airport STEVENAGE BRAINTREE hours travel time.
CHELTENHAM A120
A41 A418 COLCHESTER
A1(M) Stansted Airport Bishop’s Stortford benefits from excellent road
A429 A10 M11
A40 M1 A12 communications being directly adjacent to the M11
OXFORD A418 A41
WELWYN motorway (Junction 8) which in turn connects to the M25
GARDEN CITY CHELMSFORD
A420
A413 (Junction 27) to the south and the A14 dual carriageway,
M40 M25 A10
A419 M25 to the north.
A34
SWINDON A127
LONDON London Gateway Bishop’s Stortford rail station provides frequent rail
Heathrow Airport
A13 SOUTHEND-ON-SEA services to London Liverpool Street with a fastest journey
A4
READING
M4 M4 time of 38 minutes. Hourly rail services run from Stansted
A4 City Airport to Cambridge, Peterborough and the Midlands.
M3 A2
MARLBOROUGH A33
A249
London Stansted Airport is conveniently located 3.5
M2
M25 miles from Raynham Road and is key to the economy of
A34 A331 MAIDSTONE
A21 the region. It is the UK’s fourth busiest airport currently
M3
A303 Gatwick Airport A22 A28 A2 serving around 170 destinations in 37 countries across the
A31 M20
A3 globe, with annual passenger numbers in excess of 22.6
CRAWLEY million per annum.
SALISBURY
A2070
WINCHESTER A23 FOLKSTONE
A36 A272
A354 A3
SOUTHAMPTON
MILES BRIGHTON A26 PORTS HASTINGS MILES RAIL JOURNEY TIME (MINS)
BISHOP’S STORTFORD TRAIN STATION 1.3 LONDON GATEWAY 48 STANSTED AIRPORT 8
M11 (JUNCTION 8) 1.7 HARWICH / FELIXTOWE 55 TOTTENHAM HALE (VICTORIA LINE) 24
M25 (JUNCTION 27) 19 CAMBRIDGE 29
CAMBRIDGE 27 AIRPORTS MILES LONDON LIVERPOOL STREET 38
LONDON 35 LONDON STANSTED 4
LONDON CITY AIRPORT 32
LONDON LUTON 35
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
GREEN
WIDDINGTON
SITUATION STOCKING
PELHAM
M11 HENHAM
BROXTED
RAYNHAM ROAD INDUSTRIAL ESTATE IS SITUATED OFF PATMORE
THE A1250 DUNMOW ROAD BEING 1 MILE FROM JUNCTION HEATH
STANSTED
8 OF THE M11 AND 8 MINUTES’ DRIVE FROM STANSTED
AIRPORT. THE ESTATE IS ALSO APPROXIMATELY 1 MILE Stansted Airport
AWAY FROM BISHOP’S STORTFORD TOWN CENTRE AND ALBURY
MAINLINE RAILWAY STATION. END
A120 A120 BAMBER’S
The site is bounded to the south east by Raynham Close, which GREEN
was constructed in the early 1990’s and is home to a number BISHOP’S A120
of trade operators including Plumb Centre, Sally Hair & Beauty, STORTFORD
J8
Toolstation Station and City Electrical Factors Ltd. Residential A1250
dwellings border the three other boundaries to the estate.
RAYNHAM ROAD INDUSTRIAL ESTATE
The wider estate also includes a number of high profile MUCH
automotive operators including Motor Parts Direct and HADHAM A1060
Stortford Performance Tyres. More recently, Gu Puds, the A1184
leading desert manufacture has opened a new 100,000 sq GREAT
ft manufacturing facility nearby, creating 100 new jobs and LITTLE CANFIELD
HALLINGBURY
boosting the local economy.
M11
B1383
A1184
To á
A120 CAMBRIDGE
Par
son
HATFIELD
a ge L
ane HEATH
HUNTSDON
RAYNHAM ROAD
d
Roa
INDUSTRIAL ESTATE
sted
Stan
Ra Dunm
yn ow R
ha oad
m A1250
Ro
a
J8
d
d
Roa
Bishop’s Stortford
w
Du n
mo Golf Club
ad
w Ro
Dun m o
A1250
BISHOP’S
STORTFORD M11
To â
L on
HOCKERHILL LONDON
do n
Ro
ad
A1060
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
DESCRIPTION MODERN SECTION ORIGINAL ESTATE
Raynham Road Industrial Estate is a large, well established multi- There is a modern section of Raynham Road, which was constructed in The remainder of the estate comprises of 20 industrial buildings,
let estate comprising a range of industrial and trade counter units. 2010 and comprises of six modern industrial and trade units, totalling totalling 63,688 sq ft (GIA) and amounting to 63% of the total
The estate provides a total of 101,374 sq ft (9,418 sq m) (GIA) of 37,686 sq ft and amounting to 37% by floor area. area. The units are of various ages and range in size between
accommodation and currently comprises of 26 units. 1,626 sq ft and 13,996 sq ft (GIA). A number have been refurbished,
The units benefit from the following specification:
however there are further opportunities to enhance value through
There is an additional cleared 1.028-acre plot providing an “oven ready” • Steel portal frames refurbishment and reconfiguration.
plot for future development, subject to planning.
• Pitched roof with profiled steel external sheets The units benefit from the following specification:
The estate is fully managed and features dedicated service yards,
• Insulated roof with 10% translucent rooflights
car parking and landscaping. • Brick cavity wall elevations
• Eaves height within the warehouse of 6.5 metres
• Pitched steel profile sheeting roof
• Floor loading capacity of 30kN/sq m
• GRP translucent roof light sheets
• Electronically operated sectional loading doors
• Modern fully fitted office accommodation • Steel roller shutter loading doors.
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
PL
AW
HA
CHURCH MA
TC
SITE
H
CL
OS
E
NOR
SE
PLA
LO
WH
AT
Phase 2H C–LOhard standing 1.028 acre site provides
HC
The site is broadly rectangular and totals approximately C
TC
SE
9.43 acres (3.82 hectares), reflecting a low site coverage future redevelopment options, subject to planning
HA
AW
11-12
of circa 31.8%.
PL
SERVICE CHARGE 13-14
PHASE 2 SITE
The service charge on the park is currently £0.37 per sq RA
YN 6
ft. Additional information will be provided on the data site. HA
MR
OA
D 4-5
15-16
3
RA
YN
HA
RA MR
YN OA
HA D
MR 2
OA
D
1
38
39 RA
YN
RA H
YN
AD
HA 40 A
MR M
RO
OA RO
D A
M
20 D
HA
-37
-2
1
YN
36
22
RA
-2
3
32
E
OS
30
KEY 25
29
CL
ST
28
OR
M
HA
TF
D OR
YN
Unit sold off freehold
H
AL
RA
L
Phase 2 site PA
R K
For indicative purposes only
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
TENANCY SCHEDULE
The property is let to 18 tenants in accordance with the below tenancy schedule and benefits from an AWULT of 6.7 years to expiries and 3.3 years to break options.
The total headline rent of £794,225 per annum is well diversified with approximately 64% of the headline income generated by the top 5 tenants.
H E A DL I N E H E AD LIN E
AREA L E AS E BR E A K RENT L E AS E IN S ID E SCHEDULE OF EPC
UN I T TENANT RENT RENT CO M M EN TS
(G I A) STA RT DAT E R EV I EW E XPI RY 5 4 ACT CONDITION RATING
( PA X) ( PS F )
Unit 1 Edmundson Electrical Limited 5,946 08/11/2010 08/11/2020 07/11/2025 £59,460 £10.00 Yes No C
Unit 2 Screwfix Direct Ltd 5,900 10/12/2014 09/12/2019 10/12/2019 09/12/2024 £33,576 £5.69 Yes No B Tenant’s break on 6 months notice
Tenant’s break on 6 months notice.
Unit 3 Clearwater Technology Ltd 7,690 01/12/2016 01/12/2021 29/11/2021 30/11/2026 £59,712 £7.76 No No
Rent Deposit - £5,972
Profile Lighting Services Ltd Tenant’s break on 6 months notice.
Unit 4/5 12,550 18/04/2011 17/04/2021 18/04/2021 17/04/2026 £114,802 £9.15 Yes No C
(now ITAB Prolight UK Ltd) Rent Deposit - £23,053
Profile Lighting Services Ltd Tenant’s break on 6 months notice.
Unit 6 5,600 06/02/2012 17/04/2021 18/04/2021 17/04/2026 £49,025 £8.75 No No C
(now ITAB Prolight UK Ltd) Rent Deposit - £9,843
Additional Land at
Rye Street Coachworks Stansted Limited 0 05/07/2013 18/05/2020 £5,000 n/a Yes No n/a
12 Raynham Road
Additional Land - Mutual rolling break date on or after
Rye Street Coachworks Limited 0 16/09/2015 16/03/2019 15/09/2020 £30,000 n/a No No n/a
PLOT A 16/09/2018 on 6 months notice
Additional Land -
Glyn Hopkin Ltd 0 10/12/2015 10/06/2019 09/12/2020 £28,500 n/a No No n/a Landlord’s rolling break on 6 months notice
PLOT B
Reversionary lease dated 05/07/2013
Units 11/12 Rye Street Coachworks Stansted Limited 6,987 19/05/2010 18/05/2020 £45,500 £6.51 Yes No F to commence 18/05/2020 to expire
on 04/07/2028
Tenant’s break on 6 months notice.
Units 13/14 Rye Street Coachworks Limited 13,996 05/07/2013 05/07/2023 22/06/2021 04/07/2028 £91,000 £6.50 Yes No D
Rent Deposit - £8,029
Tenant’s break on 6 months notice and
Units 15/16 Decormax Ltd & Grant Westfield Ltd 9,806 31/05/2013 31/05/2020 31/05/2018 30/05/2023 £54,000 £5.51 No Yes D
a break penalty of £7,083 plus VAT
Units 17-19 Virgin Media c/o GVA Grimley LLP £0 n/a Freehold sold off
Mutual break subject to 6 month’s notice.
Units 20/21 Global Natural Stone Ltd 3,406 09/02/2017 09/02/2020 09/02/2020 08/02/2022 £12,000 £3.52 No Yes D
Rent Deposit - £6,001
WJ, MR & JW Worby T/A Globe Tooling &
Units 22/23 3,298 08/08/2016 01/03/2019 08/02/2022 £12,000 £3.64 No Yes G Mutual break subject to 6 month’s notice
Leisure Products
WJ, MR & JW Worby T/A Globe Tooling &
Unit 24 £0 D Freehold sold off
Leisure Products
WJ, MR & JW Worby T/A Globe Tooling & Mutual break right at any time on or after
Unit 25 1,626 08/08/2016 31/12/2017 25/03/2018 £12,000 £7.38 No No D
Leisure Products 31/12/2017 on 1 month’s notice
Unit 26/27 David Dowling Ltd £0 n/a Freehold sold off
Unit 28 Bedford Transmissions Ltd 1,939 01/01/2015 31/12/2020 £12,000 £6.19 No Yes
Unit 29 UT AND LG Ltd 1,857 02/09/2014 01/09/2019 £12,500 £6.73 No No D Rent Deposit - £6,259
Unit 30 MPS Horticultural Limited 1,857 07/12/2013 06/12/2019 £12,000 £6.46 No No C
Anthony Park & lloyd Richards c/o Park
Unit 31 £0 No n/a Freehold sold off
Richard Properties
Unit 32 Lerson Fabrication Limited 1,939 12/09/2008 11/09/2018 £12,700 £6.55 No Yes D
Unit 33 Flare Lighting Ltd £0 n/a Freehold sold off
Unit 34/35 Mr Robert Gregory £0 No n/a Freehold sold off
Units 36/37 Indifit Ltd 3,922 11/06/2014 11/06/2018 10/06/2020 £27,500 £7.01 No Yes D Tenant’s break on 6 months notice
Unit 38 Marrey Tableware Ltd 3,973 27/09/2014 26/09/2019 26/09/2019 25/09/2024 £30,950 £7.79 Yes No D Tenant’s break on 6 months notice
Unit 39 Ensinger Limited 3,966 22/12/2015 22/12/2018 22/12/2020 21/12/2025 £35,000 £8.83 Yes No D Tenant’s break on 6 months notice
Tenant’s break on 6 months notice.
Unit 40 Intelligent Communication Solutions Ltd 5,116 28/05/2015 28/05/2020 28/05/2020 27/05/2025 £45,000 £8.80 Yes No D
Rent Deposit - £22,518
Electricity Substation Eastern Electricity Board 0 24/06/1965 23/06/2064 £0 £0.00 n/a
Total 101,374 £794,225 £7.83
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
ASSET MANAGEMENT REDEVELOPMENT / RECONFIGURATION As demonstrated on units 1 - 6, there is an opportunity to reposition the estate by demolishing original existing stock and building out new industrial trade counter units to satisfy tenant demand. Phase 2, a 1.028 acre site, provides “oven ready” development options. REFURBISHMENT Continue refurbishment programme of the original units to maximise rental values. LEASE RE-GEARS There are 21 separate lease events (expiry / breaks) in the next 5 years, providing an opportunity to increase the rental tone and average weighted unexpired term through lease re-gear and renewals. TENANT RETENTION The estate is fully let to several long-standing occupiers. The range of unit sizes and potential redevelopment options demonstrates the flexibility for tenants on the estate and thus providing excellent tenant retention prospects. R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
INVESTMENT
MARKET
There remains a significant weight of capital chasing the industrial sector with investors
buoyed by strong occupational fundamentals including record levels of take up, historically
low availability rates and a constrained development pipeline. The combination of these
factors, together with the on-going reduction of industrial land across the South East
and London due to increased take-up for higher value uses and infrastructure projects, is
maintaining a positive demand / supply imbalance which is driving strong rental growth.
Prime South East and Inner M25 industrial estate yields have dipped below 4% in the first
half of 2017, demonstrating the continuing confidence and demand in the sector.
Comparable investment transactions are summarised as follows:
DATE PROPERTY AREA (SQ FT) TERM CERTAIN PRICE NIY PURCHASER
Under Offer Cliffe Industrial Estate, Lewes 190,629 5.36 c.£23.4M c.5.20% TBC
Under Offer Odhams Trading Estate, Watford 125,476 3.80 c.£26.5M 3.97% M&G
Under Offer SG1 Industrial Estate, Stevenage 79,799 3.20 c.£13.2M 4.40% Lothbury
Aug 17 Carvers Trading Estate, Southampton 51,346 3.70 £7.09M 4.90% CBRE GI
Aug 17 Lodge Farm Trade Park, Northampton 173,243 2.75 £10.2M 6.00% Royal London
Jun 17 City Park Industrial Estate, Welwyn Garden City 202,336 4.00 £27.7M 5.36% L&G
Jun 17 Watford Trade Park, Watford 28,525 12.90 £8.65M 4.40% Morden College
Jun 17 Boundary Park, Hemel Hempstead 75,611 6.70 £14.0M 4.33% College
May 17 Motorway Industrial Estate, Stevenage 60,808 5.45 £7.16M 5.40% DTZ I
R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PBTENURE The property is held freehold, albeit six industrial units have been sold off. VAT The property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC). DATA SITE Appropriate information to be made available in due course, to include Environmental phase 1 report. PROPOSAL Offers are sought in excess of: £12,400,000 (Twelve Million, Four Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 6.00%, assuming purchaser’s costs of 6.71%, and a capital value of £122 per sq ft. R AY N H A M R O A D I N D U S T R I A L E S TAT E | BISHOP ’S STORTFORD | CM23 5PB
CONTACT
To arrange an inspection please contact:
DAVID EMBUREY
david.emburey@dtre.eu
020 3328 9104
07720 841 750
TOM HOMAN
tom.homan@dtre.eu
020 3328 9095
07500 044 615
Dowley Turner Real Estate LLP 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. Details are given
www.howard-ventures.com without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by
inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Dowley Turner Real Estate LLP has any authority to make any representation or
warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. October 2017.
R AY N H A M R O A D I N D U S T R I A L E S TAT E |
BISHOP ’S STORTFORD | CM23 5PBYou can also read
