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Parkway - images1.loopnet.com · Unit 1 Cannon Viking Ltd 39,847 10/09/18 09/09/28 09/09/23...
Transcript of Parkway - images1.loopnet.com · Unit 1 Cannon Viking Ltd 39,847 10/09/18 09/09/28 09/09/23...
Prime Strategically Located Multi Let Industrial Investment Opportunity
ParkwayTrading Estate ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
• A rare opportunity to acquire an established multi-let industrial estate situated within Trafford Park, the North West’s premier industrial location
• Strategically located at the entrance to Trafford Park, with immediate access to Junction 9 of the M60 motorway
• The estate comprises 11 well-specified industrial units, extending to 108,176 sq ft, with individual units ranging from 4,421 sq ft to 39,847 sq ft
• Site area of 6.38 acres with site coverage of 38%
• Let to 9 tenants by way of 10 leases with an AWULT of 5.3 years to expiries
• Total income of £587,692 per annum, reflecting a low average rent of £5.43 per sq ft
• Total estimated rental value of £654,444 per annum, reflecting a conservative average rent of £6.05 per sq ft
• Excellent opportunities to immediately add value through asset management and rental growth
• Freehold
Offers are sought in excess of £10,490,000 (Ten Million, Four Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 5.25%, a reversionary yield of 5.85% and a low capital value of £97 per sq ft
(assuming purchaser’s costs of 6.70%)
UNIT 1
Investment Summary
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate1
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate2
Barton Dock Rd
St Modwen Rd
Parkway Circle
Mercury ParkCaledonia Way
Westinghouse Road
Cobra Court
Park Way
B5211A5081
To Trafford Centre To M60 J9
To Stretford
Tenax Road
Ashburton Rd W
Mosley RoadA576
B5214
A5181
A5081Village Way
Alba Way
Trafford City
ParkwayTrading Estate
KUEHNE+NAGEL
Stretford MotorwayEstate
Manchester
The property is located within the Metropolitan Borough of Trafford, one of the 10 boroughs that comprise the Greater Manchester conurbation. Greater Manchester is regarded as the economic capital of the North West of England and is located approximately 35 miles east of Liverpool, 44 miles south west of Leeds, 200 miles north west of London.
Greater Manchester benefits from excellent transport links. The M60 Orbital Motorway is situated at the heart of an expansive motorway network, ensuring easy access to the UK’s other major cities and centres of commerce. Greater Manchester is well served by public transport links with Manchester Piccadilly providing regular services locally and nationally. Greater Manchester also benefits from the Metrolink light rail system, with a new £350m extension underway through Trafford Park to the Trafford Centre and completion of the works set for 2020.
Manchester International Airport, the UK’s largest regional airport, is located approximately 9 miles to the south. The airport handles approximately 120 tonnes of import and export freight annually, connecting the North of England to over 160 destinations around the world.
Trafford Park
Trafford Park is situated two miles south west of Manchester City Centre. It was the first planned industrial estate in the world and remains the largest in Europe, covering approximately 1,800 acres. Key global occupiers include Kellogg’s, Adidas, L’Oreal, SIG, Tate & Lyle and Proctor & Gamble amongst others.
Trafford Park benefits from excellent motorway connections with direct access to Junction 9 and Junction 10 of the M60 to the south west and Junction 2 of the M602 to the north, which leads to the M62 and beyond. Trafford Park also benefits from a freight line depot and Euro terminal offering a direct rail service to Europe via the Channel Tunnel. It handles in excess of 100,000 containers per annum.
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1920
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22
23
24
15
3
5
6
17
1615
14
21
12
1011
9
7
20A
21A
21
7
M60
M602
M61
M62
M60
M60
M56
M6
M67A56
A58
A58
A56A57
A50
A50
A560
A580
A579
A666
A673
A556
A6010
A5103
A635
A57
A34
A34
A6
A62
A56
A578
WARRINGTONWARRINGTON
MANCHESTERMANCHESTER
Prestwich
Swinton
Salford
Sale
Urmston
Eccles
Stretford
Stockport
GatleyAltrinchamLymn
Appleton
Birchwood
Croft
Glazebury
Bolton
Culcheth
TimperleyWythenshawe
UNIT 3D
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate3ParkwayTrading Estate
ParkwayTrading Estate
M60
M602
J9
J10
A56
A5181
A57
A5063
B5211
A576
Chester Road
Park Road
Trafford Road
Barton Dock Rd
Tenax Road
Alba Way
A5081Village WayTRAFFORD PARK
A5081Park Way
Trafford Centre
SituationThe property is situated on Alba Way, off Barton Dock Road, and accessed from Park Way (A5081), the main arterial route through Trafford Park providing access to Manchester City Centre and Junction 9 of the M60 motorway.
DescriptionParkway Trading Estate is an established multi let industrial estate, comprising 11 well-specified industrial units arranged over three terraces with one detached unit. Unit 1 was constructed in the early 1990’s with the remaining units constructed in the late 1970’s and generally provide the following specification:
• Steel portal frame construction
• Part brick and part profile metal clad elevations
• Full height loading doors with separate pedestrian access
• Eaves height of approximately 5.5m
• Demised loading area and car parking with five of the units benefiting from secure yard areas.
Unit 1 is completely self contained
UNIT 4A UNIT 3A UNIT 2A
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate4
M60 J10
M60 J9
Trafford Centre
Barton Dock RdB5211
Caledonia Way
Park WayA5081
St Modwen Rd
Alba Way
ParkwayTrading Estate
AccommodationThe property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on a Gross Internal Area (GIA) basis and extends to 108,176 sq ft (10,050 sq m), as detailed in the tenancy schedule.
SiteThe property comprises a site area of approximately 6.38 acres (2.58 ha) with site coverage of 38%.
TenureThe property is held Freehold, under Title Number: GM175827
UNIT 4A
SITE ENTRANCE & UNIT 4B
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate5
UNITS 3A-F, 2B & 2A
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
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Tenancy
Unit Tenant Area (sq ft)
Start Date
Expiry Date
Break Date(s)
Next Review
Date
Rent (£pa)
Rent (£psf)
ERV (£pa)
ERV (£psf)
1954 L&T Act
Comments
Unit 1 Cannon Viking Ltd 39,847 10/09/18 09/09/28 09/09/23 £240,000 £6.02 £240,000 £6.02 Inside Lease renewal in legals - the lease term will be backdated to 10/09/2018.Tenant to benefit from 6 months’ initial rent free (vendor to provide top up). The rent is to be reviewed on an upwards only basis to 107% of the ERV to reflect the yard.
Unit 2A Bridgewater Contracts (Projects) Ltd
10,527 08/05/15 07/05/21 £47,370 £4.50 £63,162 £6.00 Inside
Unit 2B Project Kitchens Ltd 10,524 17/05/17 16/05/22 £56,303 £5.35 £63,144 £6.00 Inside
Unit 3A GARC Ltd 6,694 01/07/12 31/07/13 £30,150 £4.50 £40,164 £6.00 Outside Tenant is occupying on a rolling periodic tenancy.
Unit 3B MAK Fasteners Specialists Ltd
6,675 09/11/18 08/11/23 £38,381 £5.75 £40,050 £6.00 Inside Letting in legals - assumed the lease completes on 09/11/2018.Tenant to benefit from 4 months’ initial rent free (vendor to provide top up).The lease is subject to a schedule of condition.
Unit 3C Polycure Solutions Ltd 4,421 25/12/13 24/12/18 £22,110 £5.00 £27,631 £6.25 Inside In discussions with the tenant over a renewal.
Unit 3D Vacant 4,552 £26,174 £5.75 £28,450 £6.25 - Vendor to provide 12 months’ rent, rates and service charge guarantee. Previous tenant upsized to Unit 3b.
Unit 3E Cannon Viking Ltd 4,484 01/02/18 - £25,783 £5.75 £28,025 £6.25 Outside Tenant occupying on a licence, terminable upon one months’ notice.
Unit 3F R3 Polygon UK Ltd 4,421 24/06/18 23/06/23 £25,421 £5.75 £27,631 £6.25 Inside Stepped rental agreement from £4.60 to £5.75 sq ft (vendor to provide top up):Year 1 - £20,336 pa / £4.60 psfYear 2 - £21,663 pa / £4.90 psfYear 3 - £23,210 pa / £5.25 psfYear 4 - £24,316 pa / £5.50 psfYear 5 - £25,421 pa / £5.75 psf
Unit 4A Vale Cladding Supplies Ltd
8,015 03/10/15 02/10/20 £36,000 £4.49 £48,090 £6.00 Inside The lease is subject to a schedule of condition.
Unit 4B Vivalda Ltd 8,016 12/05/10 11/05/20 £40,000 £4.99 £48,096 £6.00 Inside The lease is subject to a schedule of condition.
Total 108,176 £587,692 £5.43 £654,444 £6.05
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
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Covenant Information
Parkway Trading Estate benefits from a diverse and secure income profile with a broad range of regional, national and international tenants. Approximately 84% of the total income is secured against covenants rated as a minimum or lower than average risk of business failure by Dun & Bradstreet.
Cannon Viking Ltd (01691576) is the largest tenant on the estate with 45% of the total income secured against this covenant. The company employs approximately 70 staff and develops machinery for the production of flexible, semi-rigid and rigid foam blocks from its headquarters in Trafford Park, where they have been in occupation for over 25 years.
Tenant Line of Business % of Income
D&B Rating
Risk of Business
Failure
Net Current Assets /
(Liabilities)
Cannon Viking Ltd
Manufacturer of machinery for the production of polyurethane blocks.
45% 2A2 Low £1,974,741
Project Kitchens Ltd
Sale, distribution and installation of kitchens.
10% 2A2 Low £1,579,121
Bridgewater Contracts (Projects) Ltd
Contractor specialising in pub, restaurant, retail and hotel refurbishments.
8% A3 Moderate £453,300
Vivalda Ltd Sale and distribution of rainscreen cladding panels and fixing systems.
7% 2A1 Minimum £5,228,687
MAK Fasteners Specialists Ltd
Sale and distribution of roofing/cladding products and fastening/sealant products.
7% C2 Low £115,805
Vale Cladding Supplies Ltd
Sale and distribution of roofing and cladding products.
6% C2 Low £121,789
GARC Ltd Asset resales, working with leasing/financing companies and insolvency practitioners.
5% A2 Low £453,666
R3 Polygon UK Ltd
Property damage restoration. 4% 3A1 Minimum £7,116,000
Polycure Solutions Ltd
Manufacturer of ultraviolet and electrobeam coatings.
4% N4 High (£28,065)
UNIT 2B
UNIT 3D
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Investment Market
Property Area (sq ft)
Price NIY Cap Val (£ psf)
Date
Apollo Park, Crewe 125,749 Q. £14,300,000 5.50% £114 Available
Midpoint 18, Middlewich 155,118 C. £13,100,000 6.00% £85 Under Offer
Quantum Park, Manchester 45,387 £9,000,000 4.94% £198 Sep18
Doranda Way Industrial Park, West Bromwich
152,311 £14,800,000 5.18% £98 May18
Olympic Court, Salford 108,639 £10,850,000 4.60% £100 Apr18
Occupational Market
Property Area (sq ft)
Tenant Rent (£ psf)
Term/(Break) Date
Unit 15 Guinness Road Trading Estate, Guinness Road
7,750 Diagraph £6.00 10 years (5 years)
Sep18
Unit 4 Caledonia Way 10,500 Undisclosed £6.00 5 years Feb18
Unit 30 Stretford Motorway Estate, Barton Dock Road
4,118 Masco UK £6.25 5 years Feb18
Unit 26 Stretford Motorway Estate, Barton Dock Road
4,689 Klass Online £6.25 5 years Nov17
Unit 1 Premier Park, Acheson Way
6,881 Creation 360 £7.00 5 years Aug17
UNITS 3F, 4A & 4B
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
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Asset Management Opportunities• Improve the AWULT through proactive leasing,
re-gears and renewals
• Undertake a cosmetic refurbishment of the units to further enhance the estate
• Let the vacant unit (Unit 3D) to establish an improved rental tone across the estate
Service ChargeThe current service charge budget amounts to £0.29 psf for the year ending 28 September 2019. Further information is available upon request.
EPCEnergy Performance Certificates for the units are available upon request.
VATThe property has been elected for VAT. It is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).
Data RoomData room access can be provided upon request.
ContactFor further information or to arrange a viewing, please contact:
Mike PochinE: [email protected]: 0161 833 7692M: 07856 584 523
Johnny HawkinsE: [email protected]: 020 7861 1519M: 07766 554 948
Steve CarrickE: [email protected]: 0161 806 0455 M: 07711 042 584
ProposalOffers are sought in excess of £10,490,000 (Ten Million, Four Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 5.25%, a reversionary yield of 5.85% and a low capital value of £97 per sq ft (assuming purchaser’s costs of 6.70%).
UNIT 3B
ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL
Parkway Trading Estate10
carrickre.com
KnightFrank.co.uk
IMPORTANT NOTICE. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or Carrick RE in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP or Carrick RE has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: 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. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. October 2018. carve-design.co.uk 13762