PRIME INVESTMENT/ DEVELOPMENT OPPORTUNITY
Transcript of PRIME INVESTMENT/ DEVELOPMENT OPPORTUNITY
Investment Summary
› Rare opportunity to acquire a substantial freehold site of 35 acres (14.16 hectares), currently used as a car storage facility with a 52,325 sq ft (4,860.9 sq m) modern industrial unit
› Located in an established industrial location on Eurohub
› Excellent transport communications being situated 0.4 miles (0.6 km) east of the A43 and 8 miles (13 km) north of the A14 which provides direct access to the M1, A1, M6, and M11 motorways.
› Let to Gefco UK Ltd with a parent company guarantee from Gefco SA on Full Repairing and Insuring (FRI) lease expiring 29th July 2021.
› The passing rent is £1,320,021.24 per annum exclsuive.
› Excellent ongoing asset management potential including future redevelopment.
We are instructed to seek offers in excess of £16,250,000 (Sixteen Million Two Hundred and Fifty Thousand Pounds), reflecting a Net Initial Yield of 7.61% assuming purchaser’s costs of 6.73%.
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
LocationThe location continually attracts major distribution operators given its access to 80% of the Uk’s population within a 4.5 hour HGV drive time.
Situated 10 miles (16 km) north of Kettering and within easy access of major conurbations such as Leicester 25 miles (40 km) to the west, Northampton 24 miles (39 km) to the south and Peterborough 25 miles (40 km) to the east, Corby benefits from accessibility to an estimated catchment population within a 30 minute drive of 700,000 rising to approximately 7,000,000 within 60 minute drive. Given the proximity to labour, wages in the area are 18.3% lower than the UK average.
Corby is surrounded by several major ‘A’ roads providing excellent access to the national motorway network and major cities. London is approximately 90 miles (145 km) to the south and Birmingham 63 miles (101 km) to the west.
Road connectivity is excellent with the A43 connecting to the A14 which in turn provides direct access to the A1 (M) to the east and the M1 (Junction 19) and M6 Motorway interchange to the west.
Corby is an established strategic distribution location in the heart of the
East Midlands.
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
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Harlow
Hertford
Hatfield
Bishop’sStortford
AmershamCirencester
Stroud
Stow-on-the-Wold
Stratford-upon-Avon
Bromsgrove
Cannock
Lichfield
Hinckley
MarketHarborough
MeltonMowbray
Kettering
Wellingborough
Oakham
Stamford
Huntingdon
Ely
Newmarket
March
Wisbech
Spalding
Burtonupon Trent
Rugeley
CORBY
Brownhills
Warwick
Loughborough
Leicester
Wolverhampton
BIRMINGHAM
Walsall
DudleyStourbridge
RedditchWorcester
Coventry
Nuneaton
RoyalLeamingtonSpa
NorthamptonBedford
Peterborough
Cambridge
Chelmsford
StevenageLuton
St AlbansHemelHempstead
HighWycombe
Dunstable
Aylesbury
Milton Keynes
Oxford
Banbury
Cheltenham
Tamworth
Stafford
SituationThe Subject property has direct access to Geddington Road (A6116) with the A43 Trunk Road approximately 0.5km to the south and Corby town centre 1km to the west.
The Property is in an established commercial area just to the south of the main industrial areas of Weldon and Earlstrees Industrial Estates.
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GEFCO UK LTD
Weldon Industrial Estate
Earlstrees Industrial Estate
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
GEDDINGTON RD
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OAKLEY RD
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GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
DescriptionThe cars are parked on either tarmac or hardcore shale surfaces with a pre-delivery inspection unit (PDI) towards the front of the facility.
The entire site benefits from a high level of security with a fence and lighting around the perimeter together with a gatehouse and barrier access on Geddington Road.
The PDI facility is a late 1990’s industrial unit internally sub divided to provide a preparation workshop, body shop, mechanical workshop, washdown area and administrative offices.
The unit is a steel portal frame construction with profile steel cladding beneath a coated profile metal sheet roof with 10% roof lights. The property has an eaves height of approximately 4m.
The preparation workshop has two roller shutter doors to the front elevation, five roller shutter doors to the side elevation, sodium lighting and exhaust extraction equipment.
The office and amenity block comprise administrative offices, canteen and separate WC facilities for works and office staff. The office specification includes suspended ceilings, recessed lighting and gas central heating.
Accommodation The property has been measured in accordance with the RICS code of measuring practice and provides the following Gross Internal Floor Area:
The site area is approximately 35 acres.
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Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:2664
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
The site is used for the storage and preparation/pre delivery inspection of
Peugeot and Citroen cars.
Description sq m sq ft
Warehouse/Office 4,860.9 52,325
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
TenureFreehold
TenancyThe property is let in its entirely to Gefco Uk Ltd with a parent company guarantee from Gefco SA for a term of 20 years from 30th July 2001, expiring 29th July 2021 (approximately 5.25 years unexpired) on a full repairing and insuring lease. There are no further reviews.
The current passing rent is £1,320,021.24 pax.
The lease is excluded from the security and tenure provisions of the Landlord and Tenant Act 1954.
CovenantThe company was founded in 1949 and is based in Courbevoie, France with operations worldwide. GEFCO S.A. provides integrated logistics solutions and is one of the top 10 in its field in Europe. The company specialises in outbound automotive logistics and inbound overland logistics, customs and tax representations, storage, pre-delivery inspection, post-production operation, vehicle customization, merchandise transportation, vehicle distribution, sourcing, vehicle preparation and renovation, containers management, sales and marketing. It serves industrial, automotive, two-wheeler, aeronautic, electronic, consumer goods, and business-to-business markets in France and internationally.
As of December 20, 2012, GEFCO S.A. sold 75% of its business to Russian Railways RJD for €800m. The remaining 25% is owned by PSA Peugeot Citroen.
2013 €000
2012 €000
Turnover €3,993,000 €3,602,000
Current Operating Income €95,500 €109,000
Net Profit €55,000 €43,000
Total Assets €1,396,500 €1,332,500
Gefco SA (parent company guarantee) recent accounts are as follows:
2014 £000
2013 £000
2012 £000
Turnover £146,873 £118,610 £116,796
Pre-tax Profit £6,751 £1,957 -£461
Net Assets £12,691 £8,956 £7,680
Gefco UK Ltd (registration number 01544410) summary of accounts over the last three years can be seen below:
GEFCO UK LTD, EUROHUB,GEDDINGTON ROAD, CORBY, NN18 8AAPRIME INVESTMENT OPPORTUNITY
VATWe understand that the property is elected for the purposes of VAT. It is proposed that the transaction will be structured by way of a transfer of a goingconcern.
EPCAn EPC is available upon request.
PROPOSALWe are instructed to seek offers in excess of £16,250,000 (Sixteen Million Two Hundred and Fifty Thousand Pounds), reflecting a Net Initial Yield of 7.61% assuming purchaser’s costs of 6.73%.
COMPANY PURCHASE The property is held in an off shore spv which isavailable to purchase.
Additional information is available on request.
Misrepresentation Act: These particulars are issued, without responsibility on the part of the vendor, BCMRE, or any of their respective employees or agents and serve only as an introductory guide to the premises. No part of them constitutes a term of a contract or a statement or representation upon which any reliance can be placed. Any person with an actual or prospective interest in the premises must satisfy themselves as to any matter concerning the premises by inspection, independent advice or otherwise. Neither BCMRE, nor any of their employees or agents have authority to make or give any representation or warranty as to the premises whether in this report or otherwise. Unless otherwise stated all figures quoted are to be considered exclusive of VAT. The plans are published for convenience of identification only, and although believed to be correct, their accuracy is not guaranteed and does not form part of any contract.Design and produced by PLP London T:020 3137 3079 • plplondon.com
Additional InformationShould you require any further information or wish to carry out an inspection please do not hesitate to contact either:
BCMRE St Christophers HouseSt Christophers PlaceLondon, W1U 1NZT: 020 3667 8400
John Reavley020 3667 8404 E: [email protected]
Andrew Barrs020 3667 8408E: [email protected]
Will Wynn-Williams020 3667 8410E: [email protected]