PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
Transcript of PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
starley way, b irmingham b37 7hb
PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
2. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
100% Prime West Midlands
Industrial Investment
3. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
INVESTMENT SUMMARY
� 100% Prime West Midlands Industrial Investment
� Strategically located 2 miles North West of Junction 6 of the M42 Motorway and 2.1 miles South West of
Junction 4 of the M6 motorway
� Situated adjacent to Birmingham International Airport, Birmingham International Railway Station and
within close proximity to JLR’s Solihull plant. Surrounding occupiers include DHL, Palletline and XPO
Logistics
� Freehold site extending to 5.04 acres (2.04 hectares)
� Gross Internal Floor Area extending to 125,404 sq ft (11,650 sq m)
� Let in its entirety to Schumacher Packaging Limited, a leading European manufacturer and innovator
of cardboard packaging. The lease benefits from a guarantee from German based parent company
Schumacher Packaging GmbH, a 5A1 covenant
� The tenant has made substantial investment in plant and machinery at the building over the past
12 months
� FRI lease with a contractual term expiring 4 November 2026, providing an unexpired term of
approximately 5.5 years, at a passing rent of £673,000 p.a. which reflects a low rent of £5.37 per sq ft
� The rent is subject to an upward only RPI-linked rent review on 5th November 2024 with a collar and
cap of 2.0% & 4.0%, compounded annually
PROPOSALSavills is instructed to seek offers in excess of £12,000,000 (Twelve Million Pounds)
for the freehold interest, subject to contract and exclusive of VAT.
A purchase at this level would reflect a low capital value of £96 per sq ft, a Net
Initial Yield of 5.26%, and a guaranteed minimum Reversionary Yield of 5.80%
following review in November 2024, allowing for standard purchaser’s costs of 6.71%.
4. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
Adjacent to Birmingham Airport with surrounding
occupiers including DHL and Palletline
5. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
LOCATION & CONNECTIVITY
The property is located in the borough of Solihull in the West Midlands, a thriving business destination in the
centre of the UK just 8 miles east of Birmingham, 93 miles south of Manchester and 96 miles north west of
London.
Solihull has a large and established prime industrial market which spans from Hams Hall at Junction 9 of the
M42 to the north of the town and to Blythe Valley Park at Junction 4 of the M42 to the south. Solihull is ideally
positioned to serve a wide range of distribution and manufacturing occupiers.
The property itself sits in an area identified as ‘UK Central Hub’ which is at the heart of the Solihull industrial
market. Located at Junction 6 of the M42, it is the most high profile development growth project in Europe.
UK Central Hub is nationally and internationally connected via Birmingham International Airport and
Birmingham International Railway Station. This will be further enhanced with the arrival of Birmingham HS2
Interchange Station later this decade.
The location’s unparalleled access to the UK’s road network means that 75% of the population can be reached
within a 3 hour drive of the property making this a prime industrial and distribution location.
Motorway Miles Time
M42 (J6) 2 5 mins
M6 (J4) 2 4 mins
M6 Toll 8 10 mins
M40 (J3A) 11 13 mins
M5 (J4A) 22 23 mins
M1 (J19) 26 26 mins
City Miles Time
Birmingham 8 18 mins
Coventry 11 16 mins
Leicester 31 30 mins
Nottingham 46 47 mins
Manchester 93 1 hr 43 mins
Bristol 95 1 hr 31 mins
London (M25) 96 1 hr 27 mins
Rail Freight Terminal Miles Time
Hams Hall Rail Freight Terminal 7 14 mins
Birmingham Lawley Street 8 22 mins
Birmingham Intermodal Freight Terminal 14 25 mins
Daventry International Rail Freight Terminal 29 34 mins
Cargo Airport Miles Time
Birmingham 1 3 mins
East Midlands International 35 37 mins
3 ho
ur d
rive
rad
ius
M6
M6
M5
M5
M4M4
M3
M50
M55
M74
M77
M90
M54
M40
A14
A14
M42
M62
M62
M62
M60
M42
M25
M25
M23
M26
M1
M11
A1(M)
A1(M)
A1(M)
A1(M)
M1
M1
M6
M8
BIRMINGHAM
LONDON
Wolverhampton
MANCHESTER
LEEDS
GLASGOW
NEWCASTLEUPON TYNE
LIVERPOOL
BRISTOL
SOUTHAMPTON
CARDIFF
Gloucester
Swansea Swindon
MiltonKeynes
Norwich
Exeter
Plymouth
Leicester
Stoke-on-Trent
Preston
Edinburgh
Dundee
Aberdeen
Hull
Cambridge
Ipswich
Nottingham
GATWICKAIRPORT
COVENTRYAIRPORT
NEWCASTLEAIRPORT
EDINBURGHAIRPORT
GLASGOWAIRPORT
MANCHESTERAIRPORT
LUTONAIRPORT
EAST MIDLANDSAIRPORT
HEATHROWAIRPORT
BIRMINGHAMAIRPORT
GATWICKAIRPORT
COVENTRYAIRPORT
NEWCASTLEAIRPORT
EDINBURGHAIRPORT
GLASGOWAIRPORT
MANCHESTERAIRPORT
LUTONAIRPORT
EAST MIDLANDSAIRPORT
HEATHROWAIRPORT
BIRMINGHAMAIRPORT
6. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
SITUATION
The property is situated on Starley Way to the north of Birmingham Airport and is accessed via the Bickenhill
Way dual carriageway which leads to both Junction 6 of the M42 Motorway (2 miles south east) via the
Coventry Road and Junction 4 of the M6 Motorway (2.1 miles north east) via the A446.
Starley Way is an established commercial location which is home to other high profile tenants including DHL,
Palletline and Porcelanosa. There are a wide range of other industrial occupiers situated in the immediate area
including at Elmdon Trading Estate and Prologis Park Birmingham Interchange.
The presence of the automotive sector continues to fuel economic activity in the region, including Jaguar
Land Rover’s £1bn investment to convert both the Castle Bromwich and Solihull factories into specialist EV
production centres. Other investment includes the construction of the new logistics operations centres and its
new logistics hub under construction in Solihull.
The property’s situation is ideally suited to the tenant, whose employees and clients utilise the air and rail
travel connections which are situated within 1 mile to the south of the property.
Coleshill
Heath R
oad
Bic
ken
hill
La
ne
Bickenhill Lane
Bickenhill Road
Col
esh
ill H
eath
Roa
d
Moor
end
Avenu
e
Starley Way
A450
A450
A446
M6
M42
M42
M6
Birmingham International
National Exhibition Centre
Resorts World
Birmingham Airport
MarstonGreen
Starley Way is
an established
commercial location
which is home to other
high profile tenants
including DHL and
Palletline
7. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
The property is
situated on Starley
Way to the north of
Birmingham Airport and
is accessed via the
Bickenhill Way dual
carriageway
BIRMINGHAM AIRPORT
M6 MOTORWAY
BIRMINGHAM INTERNATIONAL RAILWAY STATION
SITE OF HS2 BIRMINGHAM INTERCHANGE STATION
SITE OF JLR’S LOGISTICS OPERATIONS CENTRE
A446
M42
NEC
M42
BIKENHILL LANE
MARSTON GREEN RAILWAY STATION
LEA HALL RAILWAY STATION
8. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
DESCRIPTION
The property comprises a high quality industrial warehouse which was purpose built for the tenant
in the early 2000’s and further extended approximately 8 years ago. The total site area is 5.04 acres
(2.04 hectares) and the site coverage is 57%.
Extending to a Gross Internal Area of 125,404 sq ft (11,650 sq m), the property incorporates production,
assembly, loading and storage space together with offices and ancillary staff accommodation.
The majority of the building benefits from an eaves height of 5.5m plus, measured to the underside of
the haunch, with some production areas of the building having lower clear working height.
The property is subject to the following specification:
� Steel-framed construction;
� Profile clad elevations under metal-sheet
roofs;
� 6 roller shutter doors;
� Mix of sodium box and suspended strip
lighting;
� Solid concrete floors;
� Secure gated yard;
� Dual access
The property
incorporates
production, assembly,
loading and storage space
together with offices
and ancillary staff
accommodation.
9. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition).
The Gross Internal Areas are as follows:
Unit Name Sq Ft Sq M
Warehouse 117,692 10,933
Covered and enclosed loading / storage area 4,108 382
Office 3,604 335
Total 125,404 11,650
The building benefits from 49 parking spaces and the site extends to approximately 5.04 acres (2.04 hectares).
TENURE
The property is held freehold, under title number WM691314.
TENANCY
The property is let in its entirety to Schumacher Packaging Limited for a term of 7 years from 5th November 2019
to and including 4th November 2026, providing a lease term of approximately 5.5 years to expiry. The lease is
guaranteed by the tenant’s German parent company, Schumacher Packaging GmbH.
The lease is drawn on full repairing and insuring terms at a passing rent of £673,000 per annum, equating to
£5.37 per sq ft.
The lease has an upward only RPI linked rent review on 5th November 2024, subject to a collar and cap of 2% and
4%, compounded annually. This will provide a minimum increase to £743,046 p.a. (£5.93 per sq ft)
at review based off the collar of 2% compounded.
The lease is excluded from security of tenure provisions of the 1954 Act but the tenant has an option to renew the
lease for a further 7 years upon the same terms granted under this tenancy. The tenant can exercise this extension
at any point up until 6 months prior to the lease expiry i.e. 4th May 2026.
10. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
COVENANT INFORMATION
TENANT PROFILE
D&B Rating: 3A2
Schumacher Packaging Limited is a leading cardboard packaging manufacturer and innovator of packaging
solutions to a variety of industries. Services include packaging development, production, design, just-in-time
logistics packaging and strategic advice.
Formerly known as Jaffabox Limited, the business was acquired by German headquartered business
Schumacher in November 2019 and subsequently renamed and rebranded. The business has since been
subject to a multi-million pound investment program by Schumacher, including the installation of a state-
of-the-art BHS corrugator that can manufacture over 50,000 plain and printed boxes per hour on a fully
automated basis.
The business has experienced a significant surge in demand over the past 12 months and has successfully
secured relationships with a range of new clients, including Amazon. Further investment in machinery is
planned as the business continues to grow to meet increased demand from new and existing clients for its
products and services.
Existing clients include:
GUARANTOR PROFILE
D&B Rating: 5A1
The lease is subject to a full parent company guarantee from Schumacher Packaging GmbH.
Formed in 1948, Schumacher is a substantial German business with over 30 sites across Europe, including Germany,
Poland, the Czech Republic, Austria, Netherlands and the UK.
A summary of their latest consolidated financial accounts are as follows:
Following the acquisition of the company, the accounting period was changed to 31st December to fall in
line with the parent group accounting period. This part year and the previous 3 years of financial accounts
are as follows:
Part Year
For the 5 months end
31 December 2019
For the year end
31 July 2019
For the year end
31 July 2018
For the year end
31 July 2017
Sales Turnover £5,210,283 £13,121,747 £12,041,750 £10,004,204
Profit Before Tax £734,059 £2,164,798 £1,626,978 £1,365,651
Tangible Net Worth £7,165,637 £11,111,411 £8,895,398 £7,698,770
For the year end
31 December 2018
For the year end
31 December 2017
For the year end
31 December 2016
Sales Turnover € 430,803,425 € 402,877,915 € 369,290,066
Profit After Tax € 14,222,654 € 9,354,410 € 7,976,737
Total Equity €180,504,403 €169,912,339 €158,888,690
11. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
OCCUPATIONAL MARKET
The West Midlands region witnessed record-breaking take-up in 2020 with a 65% year-on-year increase. The
surge in demand, led from a macro shift in e-commerce coupled with an under-supply of stock, has led to
rising rents across all grades of industrial property.
With just 0.54 years’ worth of Grade A supply in the region and supply of grade B and C accommodation
also significantly diminished, it is expected that the market will continue to see further rental growth going
forward.
The presence of the automotive sector in the West Midlands continues to fuel economic activity, including
Jaguar Land Rover’s £1bn investment to convert both the Castle Bromwich and Solihull factories into
specialist EV production centres. Other investment includes the construction of the new logistics operations
centre, being developed for JLR in Solihull.
Supply chains associated with JLR and other major manufacturers based in the region will continue to
remain an active part of the industrial occupational market in the West Midlands together with substantial
demand from Logistics occupiers and SMEs.
The supply of industrial development land within the Solihull market is severely restricted, and as such
there are very few new units in the development pipeline. The most recent speculative development was of
2 units (77,484 sq ft and 234,718 sq ft) at Prologis Park Birmingham Interchange, completed in 2020 where
both units were pre-let ahead of completion.
Land values equal to £1.3 million per acre (gross), amongst the highest in the Midlands, have recently
been achieved within close proximity to the property, representing the strength of this area as an
industrial location.
Comparable lettings for the subject property include:
Date Address Size (sq ft) Tenant Term (Break)Rent p.a.
(£ per sq ft)
Oct-20 Unit 500, Solar Park, Solihull 67,802 Norton Motorcycles 5 (3) years £7.15
Jul-20 Highlands Road, Solihull 262,114 Farm Foods 20 years £6.75
Jul-20 Unit 1, Ravensbank, Redditch 91,465 DCS 17 (10) years £6.50
Aug-18 Midpoint 105, Minworth 105,506 Parts Alliance Group 10 (5) years £6.25
12. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
INVESTMENT MARKET
The Industrial sector has continued to outperform other real estate sectors over
the past 12 months. Transactional volumes in 2020 totalled £4.7bn, a 25% increase
on 2019.
Adapting to consumer demands, the market performed strongly in H2 2020 with
76% of capital deployed occurring in the second half of the year.
The industrial sector has continued to outperform other investment markets,
buoyed by a scarcity of good quality investment opportunities and demand-led
upward pressure on rental levels - a trend which is expected to continue for the
foreseeable future, especially for those properties in key locations.
The sustained demand seen from a broad spectrum of investors recognises
the resilience of the industrial sector, alongside an occupational market which
continues to strengthen due to changing consumer habits and an increase in ‘on
shoring’.
The following table highlights a number of relevant investment transactions:
Property Size (Sq Ft) Date IncomeUXT (Earliest
determination)Vendor Purchaser Price NIY
1 Bickenhill Lane, Solihull 42,604 Mar-21 £570,000 4.33 Birmingham City Council Goodman International £13,250,000 4.03%
2 101 Stonebridge Cross, Droitwich 57,491 Feb-21 £313,898 5.1 BHL Investments Urban Logistics REIT Plc £5,400,000 4.95%
3 5100 Cross Point Business Park, Coventry 146,701 Jan-21 £862,235 3.47 BMO Real Estate Hines Global REIT £17,100,000 4.72%
4 Prologis Park, Central Boulevard, Coventry 61,191 Dec-20 £379,000 3.4 Curtis Banks Copeley £7,000,000 5.05%
5 Langley Mill, Derby Road, Nottingham 255,680 Sep-20 £1,214,480 3.92 Tritax Big Box REIT Plc Exeter Property Group £23,000,000 4.94%
6 Heathcote Way, Leamington Spa 213,397 Oct-20 649,653 10 Nuveen Real Estate Colliers Global Investors £12,200,000 4.99%
7 Vespa Point, Prologis Park, Coventry 60,246 Jun-20 £418,030 5 Chesterhouse Properties Leftfield Capital £7,395,000 5.30%
8 Middlemarch Business Park, Coventry 227,199 Dec-19 £1,312,095 11 Merseyside Pension Fund Private Investor £25,000,000 4.92%
Transactional volumes in 2020 totaled £4.7bn, a 25% increase
on 2019
13. SCHUMACHER PACKAGING PRIME WEST MIDLANDS INDUSTRIAL INVESTMENT
IMPORTANT NOTICE
Savills and their client give notice that:
1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf
or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not
form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive.
It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services,
equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and produced by Core. core-marketing.co.uk 0121 232 5000. May 2021.
CONTACT
MATT JENNS
T: +44 (0)121 634 8447
M: +44 (0)7968 550 351
MAX HULSE
T: +44 (0) 121 634 8492
M: +44 (0) 7870 999 287
PROPOSAL
DATA ROOMAccess to the data site can be provided upon request.
EPCThe property has an EPC rating of C69.
VATThe property is elected for VAT.
ANTI MONEY LAUNDERINGA successful bidder will be required to provide anti-money laundering information in accordance with HMRC
regulations when heads of terms are agreed.
Savills is instructed to seek offers in excess of £12,000,000 (Twelve Million Pounds)
for the freehold interest, subject to contract and exclusive of VAT.
A purchase at this level reflects a low capital value of £96 per sq ft, a Net Initial Yield
of 5.26%, and a guaranteed minimum Reversionary Yield of 5.80% following a review
in November 2024, allowing for standard purchaser’s costs of 6.71%.
starley way, b irmingham b37 7hb