Baillieston Distribution Centre, Glasgow, Lanarkshire

Baillieston Distribution Centre, Glasgow, Lanarkshire, G69 6UL
Well located multi-let industrial investment opportunity
Baillieston Distribution Centre, Glasgow, Lanarkshire, G69 6UL
Executive Summary
• Well located multi-let industrial investment opportunity located 11 km (7 miles east) of Glasgow City Centre
• Long-established as a successful business location in Glasgow with good access to the motorway network
• 34 units providing a total of 16,421.92 sq m (176,764 sq ft) on an overall site of 4.12 hectares (10.19 acres)
• Multi-let to 16 tenants, with 6 vacant units, providing an average weighted unexpired lease term of 4.1 years
• Total gross rent of £495,948 per annum with automatic increase to £557,810 by 23 January 2017 on the
back of contracted uplifts
• On completion of letting the 6 vacant units, we estimate the rent on the estate will rise to in excess of
£680,000 per annum
• Heritable interest (Scottish equivalent of English Freehold)
• No rates are payable on vacant industrial premises in Scotland
• Potential asset management opportunities
• Offers in excess of £4,850,000 (Four Million, Eight Hundred and Fifty Thousand Pounds), subject to contract &
exclusive of VAT
• A purchase at this level, after deduction of non-recoverable outgoings, reflects an attractive net initial yield of
9.39% assuming standard purchaser’s costs at the prevailing rate, and equates to a low capital value price
of £295 per sq m (£27.44 per sq ft)
Location
Situation
Glasgow is located on the banks of the River Clyde, in West Central Scotland. It lies
at the western end of the M8 corridor, which links Glasgow with Edinburgh, while the
M74 provides links with the M6 and the north of England.
Baillieston Distribution Centre is situated on Nurseries Road approximately 11 km (7 miles) east of Glasgow city centre off the A8 Edinburgh Road. The site
lies 1km (0.6 mile) from the Baillieston Interchange (M8/M73), and thus benefits
from excellent access to Scotland’s motorway network.
Glasgow is Scotland’s largest city and the third largest in the UK behind London
& Birmingham with an estimated population of approximately 620,000 and a
catchment population in the region of 2.4 million. The City is a major financial,
administrative and industrial centre benefiting from a diverse economy. The wider
Glasgow conurbation dominates the Scottish industrial economy.
The estate is also well serviced by public transport with regular bus services running
along the nearby A8 Edinburgh Road. Garrowhill train station is less than 1 km (0.6 mile) away with frequent services running to and from Glasgow Queen Street.
The City benefits from excellent communications by road, rail and air. The M8 and
M74 motorways run through Glasgow providing access across the central belt as
well as connections to the M73, M80 & M77 motorways.
By rail, regular inter-city and commuter services to all locations throughout Scotland
and the UK are provided by Glasgow’s two main railway stations – Glasgow Central
and Glasgow Queen Street. Glasgow Central is the terminus of the 641 km (398 mile)
long West Coast Main Line from London Euston.
M80
Glasgow Airport
M8
GLASGOW
M8
BAILLIESTON
DISTRIBUTION CENTRE
Glasgow International Airport is situated 14 km (9 miles) west of the city centre,
approximately 30 minutes’ drive from the subject property, and is Scotland’s
busiest airport, serving over 7.2 million passengers every year, connecting with
over 80 destinations.
EDINBURGH
M8
M74
M77
www.geraldeve.com
M73
M8
Garrowhill
Station
BAILLIESTON
DISTRIBUTION CENTRE
GLA
A8
EDI
NB
UR
GH
ED
INB
G
UR
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H R
AD
SGO
W
Description
The subjects comprise a well-maintained multi-let industrial estate providing 34 units ranging in sizes from
210 sq m to 2,700 sq m (2,300 sq ft to 30,000 sq ft). The estate benefits from the following features:
•
•
•
•
•
•
•
Steel portal frame construction
All units have separate vehicle and pedestrian access doors
Each unit has WC and office/ancillary accommodation
All units have 3 phase electrical supplies together with heating and lighting
Dedicated parking and shared yards are provided with the ability to create secure yards for some units
Many units benefit from a minimum eaves height of 5.3m
The estate is fully enclosed and secure with a single gated entrance, CCTV and out of hours
security presence
• The premises have been well maintained and have undergone a recent comprehensive refurbishment
Tenure
Heritable interest (Scottish equivalent of English Freehold).
Tenancies
Multi-let to 16 tenants providing an average weighted unexpired lease term of 4.1 years. The property
currently provides a total passing rent of £495,948 per annum rising to £557,810 by 23 January 2017
on the back of contracted uplifts. Tenants include; Cordia Services Ltd, GEMS Engineering, Absolute
Exhibitions, J&J Pont Packaging Ltd and McLellans Transport Company Ltd.
In addition to the above there are currently six vacant units on the estate of which two are under offer.
On completion of letting the vacant units, we estimate the rent on the estate will rise to in excess of
£680,000 per annum.
www.geraldeve.com
Tenancy schedule
Unit
Tenant
GIA
(Sq Ft)
Lease Start
Lease End
Rent Review
Break Date
Current Rent
(£pa)
Unit 1
Transfer Your Windows Limited
3,532
06-Oct-2014
05-Oct-2019
-
-
£10,750
£3.04 2 months' rent free from 06-Oct-2015 to 05-Dec-2015
Unit 2
Cordia Services Limited
7,089
23-Jan-2012
22-Jan-2017
-
-
£24,812
£3.50
Units 3 & 4
VACANT
9,006
-
-
-
-
-
- HOTs have been agreed for a new 5 year lease at
£27,000pa with 4 months rent free
Unit 5
VACANT
3,530
-
-
-
-
-
-
Unit 6
Caps Cases Limited
9,830
28-Jan-2013
28-May-2023
28-May-2018
-
£36,860
£3.75
Unit 7
Caps Cases Limited
18,570
28-Apr-1995
28-May-2023
28-May-2018
-
£74,280
£4.00
Unit 8
Business Moves Group Limited
12,300
01-Jun-2015
31-May-2025
01-Jun-2020
01-Jun-2020
£37,000
£3.01 Rent free period expires 01-Oct-2015
Unit 9 & 10
GEMS Engineering Limited
6,018
28-May-2003
27-May-2019
-
-
£30,090
£5.00
Unit 11
Absolute Exhibitions Limited
2,989
15-May-2014
26-Feb-2018
-
-
£9,000
£3.01
Unit 12
Absolute Exhibitions Limited
3,000
27-Feb-2015
26-Feb-2018
-
-
£12,000
£4.00
Unit 13
B&J Distribution Limited
3,011
25-Jan-2009
25-Jan-2017
-
-
£12,500
£4.15
Unit 14
VACANT
2,856
-
-
-
-
-
-
Unit 15 & 16
Handicare Accessibility Limited
9,782
21-Aug-2015
20-Aug-2018
-
-
£34,250
£3.50 Rent free period expires 21-Nov-2015
Unit 17-20
Cordia Services Limited
20,560
23-Jan-2012
22-Jan-2022
23-Jan-2017
-
£30,840
£1.50 Rent increasing to £71,960 pa wef 23-Jan-2017
Units 21-22
Cordia Services Limited
8,121
23-Jan-2012
22-Jan-2022
23-Jan-2017
-
£12,182
£1.50 Rent increasing to £28,423.50 pa wef 23-Jan-2017
Unit 23
VACANT
10,611
-
-
-
-
-
Unit 24
Beamglow Limited
5,133
12-Sep-2014
11-Sep-2019
-
12-Sep-2017
£19,500
£3.80 Tenant break subject to 6 months notice
Unit 25
Eastgate Credit Limited
5,280
20-Jun-2014
20-Jul-2019
-
21-Jul-2017
£21,000
£3.98 Tenant break subject to 6 months notice
Unit 26
J&J Pont Packaging Limited
5,249
23-Jul-2014
22-Jul-2019
-
23-Jul-2017
£19,700
£3.75 Tenant break subject to 6 months notice
Unit 27&28
McLellans Transport Company
Limited
10,609
27-Jun-2014
26-Jun-2017
-
-
£37,000
£3.49
Unit 29 & 30
PPG Architectural Coatings UK Ltd
6,547
18-Jun-2014
17-Jun-2024
18-Jun-2019
17-Jun-19
£30,321
£4.63 Tenant break subject to 3 months notice
Unit 31
CR Services Limited
3,256
09-Mar-2015
08-Mar-2020
- 09-Sep-2016 &
09-Mar-2018
£13,500
£4.15 Tenant breaks subject to 6 months notice
Unit 32
VACANT
3,247
-
-
-
-
-
Units 33 & 34
Ward Thomas Removals Limited
6,638
24-Jan-2014
23-Jan-2024
24-Jan-2019
24-Jan-19
£21,574
Mast Site 1
VACANT
-
-
-
-
-
-
-
Mast Site 2
Hutchinson 3G UK Limited & EE Ltd
0
20-Jul-2001
31-Dec-2021
05-Feb-2017
-
£6,213
-
Mobile Snack Van
Mrs Donna Turner
0
01-Jan-2007
31-Dec-2011
-
-
£2,571
-
Substation 1
Scottish Power
0
05-Nov-1990
04-Nov-2051
-
-
£5
-
Substation 2
Scottish Power
0
01-Apr-1978
01-Jan-2038
-
-
£1
-
176,764
£495,948
Rent Comments
(£ / psf)
-
£3.25 Tenant break subject to 6 months notice. If break not
exercised, 50% rent for 12 months after Year 5
Service charge
Industrial Market Overview in Glasgow
The Service Charge Budget for 2014 was £115,100 equating to £6.99 per sq m
(£0.65 per sq ft). This includes the full security management cost for the estate.
The West of Scotland industrial market has seen a significant increase in take
up, particularly post referendum in 2014, and this has continued in to 2015.
When coupled with lower levels of business failures and relative lack of new build
development (which remains expensive), this has resulted in current low levels of
vacant stock and a perceived shortage across the market.
Asset Management Opportunities
Although not limited to such, there are several opportunities where we consider
value can be added to the asset:
• Letting the vacant accommodation – we estimate the rent will rise to in excess
of £680,000 per annum
• Secure potential lease re-gears with existing tenants
• Further refurbishments
• Increasing the rental tone on the estate
Demand remains strong and it bodes well for rental growth and tenant retention
for this asset. It is well placed to provide prospective occupiers with good quality
accommodation at a significant discount to new build premises.
EPC
EPCs are available on request.
VAT
The property has been elected for VAT.
www.geraldeve.com
Proposal
We have been instructed to seek offers in excess of £4,850,000 for the heritable interest in the
premises, subject to contract & exclusive of VAT.
A purchase at this level reflects an attractive net initial yield of 9.39%, assuming standard purchaser’s
costs at the prevailing rate, and equates to a low capital value price of £295 per sq m (£27.44 per sq ft).
We estimate upon completion of letting the vacant units, the reversionary yield will be in excess of 13%.
Contact details
For further information, contact –
Sven Macaulay
smacaulay@geraldeve.com
Tel. +44(0)141 227 2364
Richard Lines
rlines@geraldeve.com
Tel. +44(0)20 7333 6274
Louise Walls
Sophia Bell
lwalls@geraldeve.com sbell@geraldeve.com
Tel. +44(0)141 227 2362
Tel. +44(0)20 7333 6259
www.geraldeve.com
Conditions under which these particulars are issued
All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:1.These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract.
2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors.
3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars.
4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property.
This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve’s liability which cannot be excluded or limited by law. Particulars issued November 2015