THE ALPHABET PORTFOLIO - Five Virtual Freehold Trade Counter Investments ASHFORD
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THE
ALPHABET
PORTFOLIO
Five Virtual Freehold Trade Counter Investments
ASHFORD BARNSLEY BLYTH CHEDDAR CINDERFORD
THE ALPHABET PORTFOLIO
Portfolio Summary
ABC
• A portfolio of five Trade Counter units with extensive yards and low average footprint site coverage: 11.43%
• Total GIA 35,407 sq ft (3,289.3 sq m), incl. mezzanines/ first floors of 3,160 sq ft on a total site area of 6.47 acres
• Well established trading units within their catchments
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• Occupier – Either Travis Perkins Trading Company Ltd or Keyline Civils Specialist Ltd (Travis Perkins plc subsidiaries)
• Identical FRI leases for 11.25 years, expiring 30th November 2031 (subject to Schedules of Condition)
• Five Virtual Freeholds – 200-year leasehold interests from 2006 at a peppercorn rental
• Option to purchase Freeholds for £1 each
• Low total commencing rent of £311,774 pa, payable monthly (topped up by vendor to Dec 2021)
• Staggered upward only Rent Reviews throughout the lease term to the higher
of two thirds of Market Rent or a minimum of 3% pa. (compound increase 15.93%) Income Yield
• Aggregated estimated Market Rent: £372,000 pa Net Initial Yield £311,774 pa 5.32%
Minimum Rev. Yield - 1st Dec 2022 £324,340 pa 5.53%
• Offers in excess of £5,500,000 exclusive of VAT
Minimum Rev. Yield - 1st Dec 2025 £349,395 pa 5.96%
• Net initial yield: 5.32% assuming 6.61% Purchaser’s Costs Minimum Rev. Yield - 1st Dec 2026 £361,430 pa 6.16%
• Yield profile: assuming minimum rental increase Minimum Rev. Yield - 1st Dec 2027 £375,999 pa 6.41%
Minimum Rev. Yield - 1st Dec 2030 £405,044 pa 6.91%
Net Equivalent Yield - 6.45%
2
THE ALPHABET PORTFOLIO
3
3
ABC
Address Occupier Rent PA GIA GIA Area Site
sq ft sq m (Acre) Coverage
Ashford Keyline £75,562 4,744 441 1.36 6.45%
Barnsley Travis Perkins £49,916 7,709 716 1.89 8.46%
Blyth Travis Perkins £107,394 15,932 1,480.1 1.51 24%
Cheddar Travis Perkins £42,220 3,393 315 0.81 6.40%
21A Spencer 5 Cinderford Travis Perkins £36,682 3,629 337.1 0.90 8.40%
Road, Blyth
Riverside
Business Park 2
BLYTH
NE24 5TG 2
Hollyhill Road,
Forest Vale Industrial Unit 1 Beevor
Estate, CINDERFORD Industrial Estate,
GL14 2YA BARNSLEY
S71 1HN
4
5
1
Kingsnorth
Industrial Estate,
4 Wotton Rd,
Valley Line Industrial Estate 1 ASHFORD
CHEDDAR BS27 3EE TN23 6LL
3
Kingsnorth Industrial Estate, Wotton Rd, ASHFORD TN23 6LL
THE ALPHABET PORTFOLIO
Kingsnorth Industrial Estate, Wotton Rd, ASHFORD TN23 6LL
Investment Summary
ABC
• Trade
Counter unit (1985) with extensive yard and an exceptionally
low site coverage: 6.45%
• T
otal GIA 4,744 sq ft (440.7 sq m), incl. first floor office of 922 sq ft on
a total site area of 1.36 acres (c.1.34 acres under hard standing).
• W
ell established trade unit location within a rapidly expanding
SE commercial centre
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• O
ccupier – Keyline Civils Specialist Ltd (Travis Perkins plc subsidiary)
- D&B 5A2
• F
RI lease for 11.25 years, expiring 30th November 2031
(subject to Schedule of Condition)
• V
irtual Freehold – 200-year leasehold interest from 2006 at a
peppercorn rental
• Option to purchase Freehold for £1
• Initial rent of £75,562 pa, payable monthly
• E
quates to £5.85 psf for the trade unit, after a rental allowance for
additional yard (assuming 45% site coverage)
• M
inimum fixed increases at rent review to:
- 1st Dec 2021 - £75,562 pa
- 1st Dec 2026 - £87,597 pa
• R
ent Review to the higher of two thirds of Market Rent or 3% pa
compound increase
• Current estimated Market Rent: £92,500 pa
5
THE ALPHABET PORTFOLIO
Kingsnorth Industrial Estate, Wotton Rd, ASHFORD TN23 6LL
ABC
1 SUBJECT PROPERTY
2 Kent Space Self Storage
3
Norman Road Retail Park
(Currys PC World, Halfords)
4 B&Q
5
Commercial Quarter
Development
6 Lidl
7 Premier Foods
8 Ashford Designer Outlet
9 Asda Supermarket
New community of
5,750 homes
THE ALPHABET PORTFOLIO
Kingsnorth Industrial Estate, Wotton Rd, ASHFORD TN23 6LL
M25
ABC HAM
BRID
GE LA N E
REC
ASCOT J12
TO
J10
RY L
A299 VIC OAD
ER AY
A
J5 M25 TOR ASHFORD INTERNATIONAL LOUGHTON VER
NE
A28 M3 IA R DW
O OA
EPSOM BR
J7 BORD E R S LANE TH
E
AD
CANTERBURY
E
M2
LAN
D
LL R
J7
KNOLL
D
J9
ROA
THA
A3 J5
M25
LEN
VER
J8 J7 J6
NE
D
A2
OA
W
BEA
TO
AD
NR
A31 EA GUILDFORD OA A21 N RO
NR
MAIDSTONE A217 O
STO
VE D COLS
B
DEBDEN
RL M23 TONBRIDGE
NG
ANE NORMAA24
N ROAD A22
LA
A28
CHIGW
M20
A249 A3 J10
A264
ELL L
A21
CRAWLEY
ANE
AUST A264 J11 A22 A26
IN RD
RD
HORSHAM A2042 L
ASHFORD J10 O OD HIL M11
TON
OAKW
A23
WOO
HAM
A272 P
DE N LN
E ROAD
HOP A272
A20 STAN WOOT
O N RD
EAST STOUR
A23 BURGESS
M20 J13 HILL
KING S ORTH
A2070 A24 A26
A22
ER
A259 FOLKSTONE GRIV
N
ODIN G
A27 A2042 A2070 RIV
ER R RODIN
RD
WORTHING BRIGHTON A27
EASTBOURNE
Location Situation
Ashford is a dominant commercial and commuter The property is located on Wotton Rd, within the
centre in Kent, 55 miles south east of London and established Kingsnorth Industrial Estate, c.1.5 miles
15 miles equidistant from Canterbury and the Channel south of the town centre.
Ports of Folkestone/Dover. Occupiers include trade counter operators, such as
Communications are good with the M20 providing Jewsons. and local tenants such as Kent Space Self
rapid road links to London, the M25 and to the Channel Storage, Consort Frozen Foods and CW Plant Hire.
Tunnel. Ashford International station provides fast train The property is close to Ashford International rail
services to London (36 mins) and to the Continent station and the Ashford Designer Outlet centre.
(Paris < 2hrs).
Ashford’s population is estimated to be 73,000 with
approximately 158,000 people within a 16km (10 miles)
radius. The town’s strong business, educational and
lifestyle offering is becoming increasingly popular with
commuters. There is a Local Plan quota for over 13,000
new homes by 2030.
7
THE ALPHABET PORTFOLIO
Kingsnorth Industrial Estate, Wotton Rd, ASHFORD TN23 6LL
Description
ABC
Initial Rental
• Single unit steel portal frame warehouse, constructed c.1985
• Trades as Keyline, a wholly owned subsidiary of Travis Perkins Group.
£65,180 pa*
• Minimum Rental - 1st Dec 2021 - £75,562 pa
• Trade counter/showroom; ground and first floor offices/ancillary
• Minimum Rental – 1st Dec 2026 - £87,597 pa
accommodation.
• 6.45% site cover, with extensive concrete yard, customer car parking *The Vendor will top up the rental to Dec 2021.
and racking.
• Concrete slab floor; 5m eaves height; cavity brickwork to 2.5m Market Rent
with profiled metal cladding above.
• Pitched roof with profiled cement sheet coverings,
£92,500 pa
incorporating GRP roof lights.
• 3x roller shutter doors to warehouse. Rental Value
• Gated external yard secured by steel palisade fencing. Recent lettings of modern trade and warehouse units in
the area are achieving £12 – 15 psf. Adopting a market
rent of £9.40 psf for the unit and £1 psf for the additional
yard produces an estimated market rent of: £92,500 pa.
Accommodation Rateable Value
RV is £45,000 and the current UBR is 0.499p.
Area Sq ft GIA Sq m GIA
Ground Floor
Warehouse 2,870 266.6 Use
Office 952 88.4 Planning consent granted (1986 & 2017) for the hire and
sale of plant; sale of building materials; open storage,
First Floor Office 922 85.7 racking, designated parking and loading areas.
Total 4,744 440.7
Site Area: 1.36 Acres (0.55 hectares) – 6.45% site cover.
EPC Rating
C69
8
Unit 1 Beevor Industrial Estate, BARNSLEY S71 1HN
THE ALPHABET PORTFOLIO
Unit 1 Beevor Industrial Estate, BARNSLEY S71 1HN
Investment Summary
ABC
• T
rade Counter unit (1970’s) with extensive yard and a very low site
coverage: 8.46%
• T
otal GIA 7,709 sq ft (716.19 sq m), incl. mezzanine of 744 sq ft on a total site
area of 1.89 acres (c.1.38 acres under hard standing)
• A
dditional storage accommodation and tenant’s temporary building
on-site (not rentalised)
• E
stablished trade location, close to the town centre of this
Metropolitan Borough
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• O
ccupier – Travis Perkins Trading Company Ltd (Travis Perkins plc subsidiary)
– D&B 5A2
• F
RI lease for 11.25 years, expiring 30th November 2031
(subject to Schedule of Condition)
• V
irtual Freehold – 200-year leasehold interest from 2006 at a
peppercorn rental
• Option to purchase Freehold for £1
• Initial rent of £49,916 pa, payable monthly
• E
quates to £2.24 psf for the trade unit, after a rental allowance for additional
yard (assuming 45% site coverage & 50% rent for mezzanine)
• M
inimum fixed increases at rent review to:
- 1st Dec 2020 - £49,916 pa
- 1st Dec 2025 - £57,866 pa
- 1st Dec 2030 - £67,082 pa
• R
ent Review to the higher of two thirds of Market Rent or 3% pa
compound increase
• Current estimated Market Rent: £72,000 pa
10THE ALPHABET PORTFOLIO
Unit 1 Beevor Industrial Estate, BARNSLEY S71
ABC
1 SUBJECT PROPERTY
2 Dena Nano Ltd
3 BE Automotive
4 Barnsley Auto Centre
5
Palmer Civil Engineering
& Construction Ltd
6 Detailed Bodywork
7 SDL Minofern
8 The Lite Spot
9 Pen & Swords Books
8THE ALPHABET PORTFOLIO
Unit 1 Beevor Industrial Estate, BARNSLEY S71 1HN
ASCOT
J10
ABC HAM
BRID
GE LA
N E
REC
VIC M3 M25
TOR
TO
ASHFORD INTERNATIONAL
IA R
RY L
D
O J38 A628 A61
EPSOM
E ROA Y
A
LOUGHTON VER WA
NE
AD
ROYSTON AD
A637 RO
J9 BORD E R S LANE EB
J5 TH
D
A3
ROA
M25
D
D
J8
LL R
J7 J6
ILL ROA
VER
NE
THA
A31
W
BEA
A31
TO
A21
LEN
OA
NR
EA M1 A628 A217
UGH H
RIVER DEAN
D
VE D M23
B
TONBRIDGE
OA
RL CAWTHORNE A22
A24
NR
ANE NORMAN ROAD A635
RO
STO
A628 DEBDEN
HARBO
NG
A61
LA
A3 J10
A264
A628
CHIGW
J37 A6133 A21
T CRAWLEY
A628 REE OA
ELL L
AUST KS A22 A26
IN RD S TA264 J11
RD
A2042 BARNSLEY BEE V O R
HORSHAM LA
NE
ANE
TON
BALA STREET
WOO
HAM A23 L
PDE A272 O OD HIL M11
D N LN OAKW
RT
EET
WOOT EAST STOUR A272
COU
O N RD M1
E STR
A628
OR
A629 A6195 A23 BURGESS
BEEV
KING S ORTH
HILL
GROV
OAD A24 A26
C TR A22
FRA
N
J36
A2042 A2070 NTE
PO GRIV
ER
A27
RD
A616 ODIN G
ER R RODIN
BRIGHTON A27 RIV
WORTHING
EASTBOURNE
Location Situation
The South Yorkshire town of Barnsley is a large Located within the Beevor Industrial Estate located off
commercial centre, located 20 miles equidistant from the A628, Pontefract Road and c. 1.5 miles east from
Leeds and Sheffield. Road connections are good with Barnsley town centre.
access onto the M1 at Jct. 37, via the A628, providing Motor trade occupiers and dealerships front Pontefract
links to Manchester (30 miles west) and Doncaster Road and there are various local occupiers including,
(14 miles east). Palmer Civil Engineers, Yorkshire Industrial Tyres,
The Metropolitan Borough of Barnsley has a resident Tyke Racing and Pen & Sword Books.
population of 240,000 and a Borough population of
1,300,000, which includes neighbouring Sheffield.
12THE ALPHABET PORTFOLIO
Unit 1 Beevor Industrial Estate, BARNSLEY S71 1HN
Description
ABC
Initial Rental
• Detached warehouse (c 1970’s) of concrete frame construction and an eaves
height of c. 3.28m.
£43,058 pa*
• Trades as Travis Perkins. • Minimum Rental - 1st Dec 2020 - £49,916 pa
• Sub-divided into trade counter/showroom; office, warehouse, mezzanine • Minimum Rental – 1st Dec 2025 - £57,866 pa
storage and ancillary accommodation. • Minimum Rental – 1st Dec 2030 - £67,082 pa
• Extensive concrete yard and customer car parking, arranged over two levels, *The Vendor will top up the rental to Dec 2020.
with very low site coverage (8.46%).
• Concrete block construction, over-clad with profiled metal sheets to principal
elevations.
Market Rent: £72,000 pa
• Roller shutter door to warehouse, profiled cement sheet roof and metal
framed mezzanine floor. Rental Value
• Gated palisade fencing or wall to perimeter. Recent lettings of trade and warehouse units
NB: Two outbuildings within the yard used for additional storage (including a in the area are achieving in excess of £6 psf.
steel framed, fabric clad temporary unit) are not included in the rentalised area. Adopting a market rent of £5.25 psf for the unit
and £0.75 psf for the additional yard produces an
estimated market rent of: £72,000 pa.
Accommodation
Rateable Value
Area Sq ft GIA Sq m GIA RV is £42,250 and the current UBR is 0.499p.
Ground Floor Warehouse 6,965 647.1
First Floor Mezzanine 744 69.1 Use
Planning consent (1984 &1995) for use as
Total 7,709 716.2 industrial purposes plus car parking for a
DIY unit, and consent for staff/visitors car park.
Site Area: 1.89 Acres (0.765 hectares) – 8.46% site cover.
EPC Rating: D85
1321A Spencer Road, Blyth Riverside Business Park, BLYTH NE24 5TG
THE ALPHABET PORTFOLIO
21A Spencer Road, Blyth Riverside Business Park, BLYTH NE24 5TG
Investment Summary
ABC
• T
rade Counter unit (1990’s) with extensive double yard and a low site
coverage: 24%
• Total GIA 15,932 sq ft (1480.1 sq m), on a total site area of 1.51 acres
(c.1.33 acres under hard standing)
• E
stablished trade and OOT retail location, close to the centre of this vibrant
port and expanding seaside commuter centre
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• O
ccupier – Travis Perkins Trading Company Ltd (Travis Perkins plc
subsidiary) – D&B 5A2
• F
RI lease for 11.25 years, expiring 30th November 2031 (subject to Schedule
of Condition)
• V
irtual Freehold – 200-year leasehold interest from 2006 at a
peppercorn rental
• Option to purchase Freehold for £1
• Initial rent of £107,394 pa, payable monthly
• E
quates to £5.33 psf for the trade unit, after a rental allowance for
additional yard (assuming 45% site coverage)
• M
inimum fixed increases at rent review to:
- Minimum Rental - 1st Dec 2020 - £107,394 pa
- Minimum Rental – 1st Dec 2025 - £124,499 pa
- Minimum Rental – 1st Dec 2030 - £144,328 pa
• R
ent Review to the higher of two thirds of Market Rent or 3% pa
compound increase
• Current estimated Market Rent: £118,000 pa
15THE ALPHABET PORTFOLIO
21A Spencer Road, Blyth Riverside Business Park, BLYTH NE24 5TG
ABC
10
1 SUBJECT PROPERTY 6 Xtralite
Veolia Environmental
2 Plumb Centre 7
Services
3
James Burrell Builders 8 Homebase
Merchant
4 Jewsons 9 Lidl
Residential
5 Howdens Joinery 10
DevelopmentTHE ALPHABET PORTFOLIO
21A Spencer Road, Blyth Riverside Business Park, BLYTH NE24 5TG
ABC HAM
BRID
GE LA
N E
REC
ASCOT J12
TO
VIC J10
RY L
A68 TOR ASHFORD INTERNATIONAL OAD
IA R ER Y
A
O RIVER BLYTH M25 LOUGHTON VER WA
NE
M3 AD
RO
AD
A1 EPSOM BORD E R S LANE EB
TH
D
OAD
LL R
J9
R
THA
A189 J5
VER
A3
NE
M25
LEN
W
BEA
J8 J7 J6
TO
D
OA
OA
NR
EA D AD
VE
NR
B
GUILDFORD N RO
COWLEY ROAD
RL BLYTH A31 A21 O
COLS
STO
ANE NORMAN ROAD A217 DEBDEN
M23 TONBRIDGE
NG
A7
A24
LA
A696
CHIGW
ROAD
CHAIN FERRY ROAD
SPENCER
A3 A264
ELL L
J10
A68 EET
AUST RD STR A21
ANE
IN RD
A2042 A19 CONISTON FOR
D CRAWLEY
CR AW A264 A22 A26 A22 L
OD HIL
J11
HORSHAM ROA
D O M11
HAM
PDE NEWCASTLE NS OAKW
ROAD N LN UPON TYNE A272 A23 ODGSO
OPE A69 9) H
TANH J44 J2
(B 132
A1 ROAD
A689 A194(M) SUNDERLAND COWPEN A272
J43 A193
TEMPLE AVENUE
KING S ORTH
J65 A23 BURGESS
MALVINS ROAD
CARLISLE HILL
A24 A26
N
A19 A22 ER
A2042 A2070 A1(M) COWPEN CEMETERY A193 GRIV
ODIN G
M6 ER R RODIN
RD
RIV
A27
WORTHING BRIGHTON A27
EASTBOURNE
Location Situation
The Northumberland port of Blyth has a population The property occupies a prominent corner site
of c. 39,000, and is located 5 miles north-east of 1 mile north of the town centre, on the Blyth Riverside
Cramlington and 15 miles north of Newcastle-upon- Business Park, with access to the A189 via the A193.
Tyne. It handles c 2m tonnes of cargo annually and is a There is a cluster of trade occupiers nearby, including
leading offshore energy support base.
Jewsons, Howdens and Plumb Centre. The Blyth Valley
Substantial investment has been attracted by Retail Park’s tenants include Homebase, Jollyes, Bensons
the Enterprise Zone status of various sites into Beds and KFC, with Aldi adjacent.
the infrastructure, development, and servicing of
offshore wind farms, their port related uses and the Construction is underway to improve road access
decommissioning of redundant carbon fuel facilities. and the wharf side facilities on the adjacent ‘Bates
Terminal’, 6Ha Enterprise Zone site, targeting off-shore
Whilst the port is a key employer, Blyth serves as a
dormitory town for commuters to Newcastle and North energy and marine engineering industries. Significant
Tyneside It has good road communications being 2 residential development is taking place, including on
miles east of the A189, providing dual carriageway Spencer Road.
access to the A1, eight miles to the south.
17THE ALPHABET PORTFOLIO
21A Spencer Road, Blyth Riverside Business Park, BLYTH NE24 5TG
Description
ABC
Initial Rental: £92,639* pa
• Detached warehouse unit, built c 1990, sub-divided to provide trade- counter • Minimum Rental - 1st Dec 2020 - £107,394 pa
/ showroom; office, and ancillary accommodation. • Minimum Rental – 1st Dec 2025 - £124,499 pa
• Extensive, secure, concrete service yard and tarmac customer car parking, • Minimum Rental – 1st Dec 2030 - £144,328 pa
secured by palisade and gated fencing.
*The Vendor will top up the rental to Dec 2020.
• Trades as Travis Perkins.
• Low site cover – 24% - with potential for extension and/or sub-division.
• Steel portal frame construction, eaves height of c.6.25m, concrete slab floor. Market Rent: £118,000 pa
• Profiled metal sheeting to elevations and roof, above 2m brick / blockwork.
• Single-storey concrete block-built office and sales area. Rental Value
• 7 roller shutter doors to warehouse and aluminium double-glazed doors Recent lettings of trade and warehouse units
to the trade counter and showroom. in the area are achieving in excess of £7.50 psf.
Adopting a market rent of £6.00 psf for the unit
and £1.00 psf for the additional yard produces an
estimated market rent of: £118,000 pa.
Rateable Value
Accommodation RV is £50,000 and the current UBR is 0.499p.
Area Sq ft GIA Sq m GIA
Use
Planning consent was granted for a 13-
Warehouse 12,622 1,172.6 unit industrial estate in July 1990 and Travis
Ground Floor
Office/Shop 3,310 307.5 Perkins have been in occupation and trading
since 2006. Additional consent for external
Total 15,932 1,480.1 racking and re-arrangement of vehicular yard
movements was granted in July 2017.
Site Area: 1.51 Acres (0.61 hectares) – 24% Site Cover
EPC Rating: C65
18ABC Valley Line Industrial Estate, CHEDDAR BS27 3EE
THE ALPHABET PORTFOLIO
Valley Line Industrial Estate, CHEDDAR BS27 3EE
Investment Summary
ABC
• T
rade Counter unit (1990’s) with extensive yard and a very low site
coverage: 6.38%
• T
otal GIA 3,393 sq ft (315.2 sq m), incl. a mezzanine of 1,142 sq ft,
on a total site area of 0.81 acres (c. 0.68 acres under hard standing).
• E
stablished trade and mixed commercial location, close to the centre
of this historic commercial centre, tourist and dormitory town.
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• O
ccupier – Travis Perkins Trading Company Ltd (Travis Perkins plc subsidiary)
– D&B 5A2
• F
RI lease for 11.25 years, expiring 30th November 2031 (subject to Schedule
of Condition).
• V
irtual Freehold – 200-year leasehold interest from 2006 at a
peppercorn rental.
• Option to purchase Freehold for £1
• Initial rent of £42,220 pa, payable monthly.
• E
quates to £6.24 psf for the trade unit, after a rental allowance for additional
yard (assuming 45% site coverage and 50% rent for mezzanine).
• M
inimum fixed increases at rent review to:
- Minimum Rental – 1st Dec 2022 - £48,944 pa
- Minimum Rental – 1st Dec 2027 - £56,740 pa
• R
ent Review to the higher of two thirds of Market Rent or 3% pa
compound increase
• Current estimated Market Rent: £44,500 pa
201
THE ALPHABET PORTFOLIO
Valley Line Industrial Estate, CHEDDAR BS27 3EE
SUBJECT PROPERTY
ABC
2 Cheddar Business Park
3 VADO
4 Majestic Designs
5 Giftworks
6 CYIENT
7 FSC
8 FitKit UKTHE ALPHABET PORTFOLIO
Valley Line Industrial Estate, CHEDDAR BS27 3EE
ABC HAM
BRID
GE LA N E
REC
TOR
VIC
TH E
TOR ASHFORD INTERNATIONAL B AR D
ROA
Y
S
IA R A38 ROW
LIFF
L AN
O A37 A36 S E Y
M5 LOUGHTON VER WA
EC
E
TH AD
AD
A371 AD T W EE RO
BATH S RO NTOWN
BORD E R S LANE EB
CHEDDAR
OW TH
RR
D
RESERVOIR
D
ROA
BA
LL R
VER
THA
WESTON
NE
LOWER N ORTH
W
CLIF REET
WI
BEA
LEN
SUPER-MARE
TO
THE HAYES
A371 DE
D
OA
NR
EA AT
F ST
A368
OA
VE D
B
TS D
ROA
NR
RL RO
ANE ON
STO
AD
NORMAN ROAD COLS
(B3151) LOWER NEW ROAD
DEBDEN
NG
REDCLIFFE STREET
ST
LA
A38 CHEDDAR
CHIGW
ELL L
AUST A371
IN RD AD
RD
ANE
A2042 A39 ORE RO
WEDM
TON
J22
L
OD HIL M11
WOO
HAM A37 O
PDE
N LN A371 OAKW
OAD WELLS A361
M5
WOOT A38 EAST STOUR
O N RD
DRA
KING S ORTH
YCOT
J23
CHEDDAR YEO
T ROAD
A361
N
A39 GLASTONBURY
A2042 A2070 GRIV
ER
ODIN G
RD
ER R DIN
RIV RO
Location Situation
The Somerset town of Cheddar lies 9 miles north Employment uses are centred west of Cheddar town
west of Wells and 20 miles south west of Bristol. With centre, within a wide range of unit sizes either on the
a resident population of 5,990 and a Sedgemoor D.C. Valley Line Industrial Estate or the nearby Cheddar
population of 122,000 it serves a large rural catchment Business Park, whose whose main occupiers include
area, boosted by an annual tourist trade attracted by Vado and Giftworks
the Cheddar Gorge. The property occupies a large site accessed via the
With good access to Bristol city centre via the A38 and estate road and Wedmore Road. The remaining units
to Jct. 22 of the M5 (8 miles), Cheddar is an affluent are occupied by local trade businesses including
commuter town, expanded by recent residential Cheddar Tyres, and are surrounded by residential
developments. Neighbouring communities rely on its properties.
commercial, social and educational infrastructure.
22THE ALPHABET PORTFOLIO
Valley Line Industrial Estate, CHEDDAR BS27 3EE
Description
ABC
Initial Rental: £42,220 pa
• Detached 1990’s warehouse with trade counter/showroom; office, mezzanine • Minimum Rental - 1st Dec 2022 - £48,944 pa
and ancillary accommodation. • Minimum Rental – 1st Dec 2027 - £56,740 pa
• Trades as Travis Perkins.
• Extensive secure concrete yard and tarmac customer car parking area.
• Exceptionally low site coverage – 6.38%
Market Rent: £44,500 pa
• Steel portal frame construction, 5m eaves height, concrete slab floor.
• Elevations are a mix of dressed stone blocks/ full height profiled Rental Value
metal sheet cladding and roofing. Recent lettings of trade and warehouse units in
• Steel frame construction mezzanine with restricted head height storage. the Somerset/Avon area are achieving in excess
• 2 roller shutter doors, full glazed entrance doors to the trade counter. of £7 psf. Adopting a market rent of £7 psf for the
unit and £1.00 psf for the additional yard produces
• Steel palisade and concrete post/chain link fencing to perimeter
an estimated market rent of: £44,500 pa.
and palisade gates to the estate road.
• The extent of the concrete slab service yard was extended by the tenant
and those works are to be ignored at rent review. Rateable Value
RV is £21,000 and the current UBR is 0.499p.
Accommodation Use
Planning consent granted 2004 for use as
Area Sq ft GIA Sq m GIA builders, plumbers and timber merchant, to
Ground Floor Warehouse & Office 2,251 209.1 include outdoor storage, distribution, hire
First Floor Mezzanine 1,142 106.1 and sale of tools and materials. The tenant
implemented a 2008 planning consent to
Total 3,393 315.2 extend the area of hard standing within the
Site Area: 0.81 Acres (0.33 hectares) – 6.38% site cover service yard (c.6,790 sq ft).
EPC Rating: D76
23ABC Hollyhill Road, Forest Vale Industrial Estate, CINDERFORD GL14 2YA
THE ALPHABET PORTFOLIO
Hollyhill Road, Forest Vale Industrial Estate, CINDERFORD GL14 2YA
Investment Summary
ABC
• Trade Counter unit (1990’s) with extensive, double entranced yard
and a very low site coverage: 8.4%
• Prominent corner site with good road frontage.
• Total GIA 3,629 sq ft (337.1 sq m), incl. first floor office of 352 sq ft,
on a total site area of 0.90 acres (c. 0.77 acres under hard standing).
• Established trade and mixed commercial location, close to the
town centre.
• Tenant – Travis Perkins (Properties) Ltd - D&B 5A2
• Occupier – Travis Perkins Trading Company Ltd (Travis Perkins plc
subsidiary) – D&B 5A2
• FRI lease for 11.25 years, expiring 30th November 2031 (subject to
Schedule of Condition).
• Virtual Freehold – 200-year leasehold interest from 2006 at a
peppercorn rental.
• Option to purchase Freehold for £1
• Initial rent for of £36,682 pa, payable monthly.
• Equates to £4.68 psf for the trade unit, after a rental allowance for
additional yard (assuming 45% site coverage).
• M
inimum fixed increases at rent review to:
- Minimum Rental - 1st Dec 2022 - £42,524 pa
- Minimum Rental – 1st Dec 2027 - £49,297 pa
• R
ent Review to the higher of two thirds of Market Rent or 3% pa
compound increase
• Current estimated Market Rent: £45,000 pa
251
THE ALPHABET PORTFOLIO
Hollyhill Road, Forest Vale Industrial Estate, CINDERFORD GL14 2YA
SUBJECT PROPERTY
ABC
2 CEF
3
Richard Read
(Transport) Ltd
4
Magnus Electrical
Distribution
5 Dockright
6 Foyle Gloucester
7 Crabtree Road (development)
8 BASF Metals RecyclingABC
EET OA
S TR KS
LA
BEE V O R NE
BALA STREET
THE ALPHABET PORTFOLIO
RT
EET
COU
E STR
A628
OR
BEEV
GROV
D
Hollyhill Road, Forest Vale Industrial Estate, CINDERFORD GL14 2YA
ROA
FR ACT
NTE HAM
BRID
PO GE LA
N E
J12
REC
VIC ASCOT
A449 J10
TOR
TO
ASHFORD INTERNATIONAL
IA R
HIGH
RY L
M50
O A49 M25 OAD
M3 ER Y
A
LOUGHTON VER WA
NE
ST
AD
EPSOM AD
RE E T
A417
A40 CHELTENHAM RO
BORD E R S LANE EB
EE TH
OAD
A40 J11 A40 BTR RD
CRA J9
D
R
J5
LL R
A3
VER
DENECROFT ROAD M25
NE
THA
J8
W
J7 J6
BEA
J11a
TO
A40 GLOUCESTER
LEN
OA
NR
EA A31 GUILDFORD A21
D
VE D
B
CINDERFORD
OA
A217
RL MONMOUTH LL RD M23
LYHI TONBRIDGE
NR
ANE NORMAN ROAD
HOL A24
STO
M5 A417 A4151 DEBDEN
NG
LA
ROAD
(B422
IDGE A264
CHIGW
A3
ES BR
J10
A48 FOX
ROAD
7) FOR
A21
CRAWLEY
ELL L
AUST
VALLEY
IN RD A26 A22
RD
EST VALE
A2042 A264 J11 A22
STROUD HORSHAM
ANE
T
TON
STREE
CINDERFORD BROOK STATION A23
WOO
HAM L
PDE A272
O OD HIL M11
ROAD
N LN OAKW
AL STREET
A449
WOOT EAST STOUR A272
O N RD
A23 BURGESS
CI
HILL
COMMER
KING S ORTH
A24 A26
J2 A22
M48
N
VALLEY ROAD
J24 M4 A2042
J23 A2070
M5 A27 ER
GRIV
RD
J21 ODIN G
NEWPORT WORTHING BRIGHTON A27 ER R RODIN
J15 RIV
EASTBOURNE
Location Situation
Cinderford has a resident population of 8,500 and a The Forest Vale Industrial Estate is 1 mile west of the
large rural hinterland, being located on the edge of the town centre and the property is on a prominent corner
Forest of Dean. It lies c.14 miles west of Gloucester and site on the main estate road, surrounded by industrial,
6 miles south of the A40 which provides access to trade and business units of varying ages
Jct. 11 of the M5 motorway (15 miles). and specifications.
The principal commercial area is centred on the Forest CEF occupy a unit within an immediately adjoining
Vale Industrial Estate. Various sites have been allocated property.
in the planning framework for expansion of residential
and commercial uses.
27THE ALPHABET PORTFOLIO
Hollyhill Road, Forest Vale Industrial Estate, CINDERFORD GL14 2YA
Description
ABC
Initial Rental: £36,682 pa
• Detached, c.1990 unit sub-divided into warehouse, trade-counter, showroom, • Minimum Rental - 1st Dec 2022 - £42,524 pa
mezzanine level office and ancillary accommodation. • Minimum Rental – 1st Dec 2027 - £49,297 pa
• Trading as Travis Perkins
• Extensive, secure concrete yard, accessed off Holyhill Road, with concrete block
paved customer parking and external racking. Market Rent: £45,000 pa
• Exceptionally low site coverage of 8.4%.
• Steel portal frame construction with concrete slab floor and c. 5m eaves height.
• Elevations and roof have profiled metal cladding, with an internal blockwork Rental Value
up-stand. Recent lettings of trade and warehouse units
• Roller shutter door and glazed aluminium doors to the trade counter. in the area are achieving £5.50 psf. Adopting a
• External yard secured by a combination of timber and chain link fencing, plus market rent of £5.25 psf for the unit and £1.00 psf
palisade gates. for the additional yard produces an estimated
• An additional steel framed, fabric clad temporary timber storage unit of 1,155 market rent of: £45,000 pa.
sq ft has been installed by the tenant.
• The tenant occupies a neighbouring warehouse property, providing a
temporary secondary access into the service yard from Foxes Bridge Road. Rateable Value
RV is £18,250 and the current UBR is 0.499p.
Accommodation Use
Area Sq ft GIA Sq m GIA Planning consent (1997) for B8 use with ancillary
Warehouse 2,931 272.3 retail facilities, external storage, car and lorry
Ground Floor parking spaces.
Office 346 32.1
First Floor Office 352 32.7
Total 3,629 337.1
EPC Rating
Site Area: 0.9 Acres (0.36 hectares) Site Coverage: 8.4%
C75
28THE ALPHABET PORTFOLIO
GENERAL PORTFOLIO INFORMATION
Tenure - Virtual Freehold Lease Structure
ABC
• T
erm: 200 years from 1st December 2006 at a • Tenant: Travis Perkins (Properties) Ltd.
peppercorn rental. • Term: 25 years from 1st December 2006 (11.25 years unexpired), FRI (subject to a Schedule of Condition).
• F
reeholder: Either Travis Perkins (Properties) Ltd • Current Aggregate Rental: £279,779 pa, payable monthly in advance.
or Keyline Civils Specialist Ltd (guaranteed by • Covid-19 Concession: At the Tenant’s request, the Vendor has agreed that the rental can be paid
Travis Perkins (Properties) Ltd) monthly in arrears until October 2020, reverting to monthly in advance.
• ‘Call Option’: The Freehold interests can be • Initial Rental: £311,774 pa - the Vendor will ‘top up’ the initial rental at completion to the minimum level
bought for £1 each by the Head Leaseholder, receivable by the Purchaser in December 2021.
exercisable on expiry of the occupational lease • Rent Review – At various fixed dates, to the higher of two-thirds of Market Rent or a 3% pa compound
or if a Group company of Travis Perkins plc increase (15.93% increase).
ceases to have an interest.
• Occupier: Either Travis Perkins Trading Company Ltd or Keyline Civils Specialist Ltd, as permitted Group
• L andlord and Tenant Act 1954: The head occupiers of Travis Perkins plc.
leasehold interests are within the Act. • Renewal Option: On lease expiry, the Tenant has the option to renew the lease for 25 years, at Market Rent
but otherwise on identical lease terms, including the rent review basis.
• Landlord & Tenant Act 1954. The occupational leases are within the Act.
Rental Income & Minimum Rent Review Pattern
Property Passing Rent p.a. Dec 2020 Dec 2021 Dec 2022 Dec 2025 Dec 2026 Dec 2027 Dec 2030
Ashford £65,180 pa £65,180 £75,562 rr £75,562 £75,562 £87,597 rr £87,597 £87,597
Barnsley £43,058 pa £49,916 rr £49,916 £49,916 £57,866 rr £57,866 £57,866 £67,082 rr
Blyth £92,639 pa £107,394 rr £107,394 £107,394 £124,499 rr £124,499 £124,499 £144,328 rr
Cheddar £42,220 pa £42,220 £42,220 £48,944 rr £48,944 £48,944 £56,740 rr £56,740
Cinderford £36,682 pa £36,682 £36,682 £42,524 rr £42,524 £42,524 £49,297 rr £49,297
TOTAL £279,779 pa £301,392 pa £311,774 pa £324,340 pa £349,395 pa £361,430 pa £375,999 pa £405,044 pa
*rr: Rent Review
29THE ALPHABET PORTFOLIO
GENERAL PORTFOLIO INFORMATION
Tenant & Parent Travis Perkins (Properties) Ltd (Reg. No: 00468024)
ABC
Company Information Accounts Turnover Pre-Tax Profit Total Equity
T ravis Perkins plc is the UK’s leading company in the builders’
merchanting and home improvement markets, with 20 businesses Y/end 12/2019 £68m £31m £290.4m
trading from over 2,000 sites. It reported a 3.8% increase in Y/end 12/2018 £92.2m £52.5m £277.1m
like-for-like Group sales to £6.96 bn in 2019, a 7.8% increase in
adjusted profit to £442m with EBITA 1.3% lower at £375m, Pre-tax Y/end 12/2017 £87.3m £68.9m £332.7m
Profits of £180.8m and Total Equity of £6.44 bn. Both Travis Perkins
(Properties) Ltd and Keyline Civils Specialist Ltd (formerly Keyline
Builders Merchants Ltd) are within the ‘Merchanting Division’, the Keyline Civils Specialist Ltd (Reg. No: SC042425)
primary focus of future Group activity, which recorded a divisional
turnover of £3.703 bn after a 3.3 % increase in ‘like for like’ sales. Accounts Turnover Pre-Tax Profit Total Equity
In an H1 2020 Trading Update, the Group recorded a 20%
decrease in turnover to £2.78bn owing to the Covid crisis but Y/end 12/2019 £552.5m £25.9m £218.5m
highlighted strong recoveries ‘post lockdown’ across their trade Y/end 12/2018 £523.3m £24.6m £209m
and retail divisions.
Y/end 12/2017 £517.3m £29.1m £239.2m
In July 2020, the group accelerated the planned closure of 164
under performing stores (saving £120m pa in costs), and reported
the opening of 22 new branches. Travis Perkins Trading Company Ltd (Reg. No: 00733503)
Both companies have a 5A2 D&B Rating, representing a is the operating company for Travis Perkins Builders Merchants.
“lower than average risk of business failure”.
Summaries from the available accounts for the three previous Accounts Turnover Pre-Tax Profit Total Equity
trading years are:
Y/end 12/2019 £2.244bn -£2.5m * £454.4m
Y/end 12/2018 £2.195bn £73.8m £526.1m
Y/end 12/2017 £2.714bn £121.4m £553.6m
NB: * loss follows provision of £65m to cover possible contractual obligations following
cancellation of Group merchants’ ERP IT platform.
30THE ALPHABET PORTFOLIO
GENERAL PORTFOLIO INFORMATION
Investment Comparable Schedule
ABC
Date Address Tenant Price Yield Unxp Term Comment
Jul-20 Elland Rd, Leeds LS11 8AY Saint Gobain £2.6m 5.25% 9.75 Older units. OMV reviews.
City Plumbing
Jul-20 17-19 Winchester Rd, Walton on Thames £1.6m 3.82% 15 Modern unit with 5 yearly OMV RR’s
Supplies
Feb-20 Lupton Rd, Wallingford Howdens + MKM £5m 5.00% 18 New scheme 100% pre-let
21 units with 0%-3% CPI linked reviews but full
Apr-20 Kwik Fit Regional Portfolio Kwik Fit £18m 5.40% 15
rentals and high site densities
15 New unit let at £10+ psf.
Mar-20 Regent Road, Salford M5 3GR Selco £3.75m 5.00%
(TOB Yr 10) 5 yearly RR to RPI 1%-4%.
New unit let at £10 psf.
Mar-20 Albion Gateway, Burton Upon Trent MKM £2.65m 4.96% 20
5 yearly RR to 1%-3% RPI.
Jul-20 Straight Half Mile, Maresfield TN22 2HH Kwik Fit £315,000 4.60% 15 0%-3% CPI linked reviews
Jul-20 Station Rd, Holt NR25 6BS Kwik Fit £391,000 4.16% 15 0%-3% CPI linked reviews
31THE ALPHABET PORTFOLIO
GENERAL PORTFOLIO INFORMATION
Proposal VAT
ABC
Seeking offers in excess of £5,500,000 (Five Million, Five Hundred Each property has been elected for VAT and each transaction will be treated as a TOGC.
Thousand Pounds) for the five virtual freehold interests, subject to contract
and exclusive of VAT. A purchase at this price would show the following
yield profile, assuming the topped up aggregated initial income; the AML
minimum fixed increases in income at review and Purchaser’s Costs of When submitting a bid for the virtual freehold interest in a property or properties,
6.61%. (incl. SDLT): potential purchasers will need to provide appropriate documentation capable of
satisfying the requirements of the Anti-Money Laundering Regulations.
Income Yield
Net Initial Yield £311,774 pa 5.32% Additional Information and Inspections
Minimum Rev. Yield - 1st Dec 2022 £324,340 pa 5.53% Data room access arranged on request. Formal inspections only, which will be subject
to COVID-19 guideline requirements.
Minimum Rev. Yield - 1st Dec 2025 £349,395 pa 5.96%
Minimum Rev. Yield - 1st Dec 2026 £361,430 pa 6.16%
Paul Yeadon Tom Larkin
Minimum Rev. Yield - 1st Dec 2027 £375,999 pa 6.41% E: cpy@hsmuk.com E: tml@hsmuk.com
T : 020 7318 1931 T : 020 7318 1938
Minimum Rev. Yield - 1st Dec 2030 £405,044 pa 6.91%
M : 07711 454410 M : 07415 314125
Net Equivalent Yield - 6.45%
Whilst the preference is a sale of the portfolio to a single purchaser, bids for
individual or combinations of properties will be considered.
MISREPRESENTATIONS ACT DISCLAIMER
Hoddell Stotesbury Morgan Limited (9050701) trading as HSM, for themselves and for the vendors of this property whose agents they are, give notice that:- (i) the particulars are set out as a general outline only for the guidance of intending
purchasers and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith and are believed to be
correct but any intending purchaser should not rely upon them as a statement or as representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of HSM has
any authority to make or give any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) HSM has not made any investigations
or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers must undertake their own enquiries and satisfy themselves in this regard. Date: September 2020.
32THE
ALPHABET
PORTFOLIO
Five Virtual Freehold Trade Counter Investments
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