TREFOREST

Parc Nantgarw
TREFOREST
SOUTH WALES, CF15 7QU
HIGH YIELDING, HIGH QUALITY
INDUSTRIAL INVESTMENT WITH
ASSET MANAGEMENT OPPORTUNITIES
LIVERPOOL
INVESTMENT CONSIDERATIONS
•
•
•
•
•
•
•
Holyhead
High quality industrial/business units situated in a prime mixed-use business location north of Cardiff city centre
Located only three miles from Junction 32 of the M4 Motorway
Nearby occupiers include Showcase Cinema, Makro, Peacocks, DHL Logistics and Companies House
Good potential to exploit asset management angles
Includes expansion land suitable for a range of uses (subject to planning)
Passing income of £561,558 pa and let to the substantial covenants of GMAC, DSG and DOOSAN
Asking price of £6.25M, reflecting an 8.5% net initial yield
The Property
TO
CAERPHILLY
A470
Chester
A487
Shrewsbury
A483
A44
A49
A487
Builth Wells
HEOL CRO
CHENDY
UE
(A4
05
4)
POWYS ROAD
AD
N RO
SEVER
AV
EN
MEA
TAFFS
D RD
GWENT ROA
D
MAIN
BIRMINGHAM
TO CARDIFF
HEOL CROCHENDY
TAFFS FALL RD
A49 WALES
SOUTH
A487
UNIVERSITY
PLAYING FIELDS
A470
M6
A5
Junction 32
(3 MILES)
A 470
CINEMA
Parc Nantgarw
TREFOREST
A55
Aberystwyth
M4
MANCHESTER
TO TAFFS
WELL
A40
A40
ff
rdi
Ca
To
FORD
RIVERSIDE
G17
Neath A465
SWANSEA
38
37
M4
Bridgend
Train Stat ion
PARC NANTGARW
LOCATION
The properties are situated in a prominent position on Heol Crochendy, the main road through Parc Nantgarw, an established mixeduse business location in South Wales. The business park is situated just off the A470 which links Cardiff to Merthyr Tydfil and there is
excellent motorway access, with Junction 32 of the M4 approximately 3 miles south.
Parc Nantgarw is well known as an office, leisure and light industrial location on the northern fringe of Cardiff, the capital city and centre
for administration and government in Wales. There are approximately 310,000 people living in the city and a further 1.2 million
within a 45 minute drive time of the city centre.
Office occupiers nearby include Companies House, Velindre NHS Trust and CADW, while Showcase Cinemas, Bowlplex, Nando’s and
Frankie & Benny’s are in the immediate vicinity. Light industrial occupiers include Peacocks, DHL Logistics and Makro, proving Parc
Nantgarw to be a true mixed-use business park.
Cardiff city centre is located approximately 8 miles south of Parc Nantgarw and provides mainline rail services to London Paddington.
M50
M5
Gloucester
Merthyr Tydfil
CENTRE
COURT
THE WILLOW
Ross-on-Wye
A40
Carmarthen
A477
MAIN AVENUE
(A4054)
A470
A470 NEWPORT
32
Swindon
M4
CARDIFF
M5
BRISTOL
Parc Nantgarw
TREFOREST
SOUTH WALES
HE
OL
Unit 6.3
Y
GA
M
LA
S
Unit 6.2
Unit 6.1
N
AI
M
E
AV
L
EO
Y
ND
HE
OC
CR
H
E
NU
A470
AND M4
EXPANSION LAND
DESCRIPTION
Units 6.1, 6.2 & 6.3 Parc Nantgarw are three modern, single-storey industrial/warehouse units built in the early 1990’s.
2
•
Approximately 10,044 m2 (108,115 ft2)
•
Total of 3.5 hectares (8.65 acres)
•
Expansion land of 0.5 hectares (1.25 acres)
•
Unit 6.1 converted to B1 office use
2
In total the three properties comprise approximately 10,044 m (108,115 ft ) on a gross internal basis, which excludes tenants
improvements and external plant rooms etc. All the units are detached and benefit from extensive forecourt car parking, in addition to
secure rear yards with loading facilities.
Situated on an overall site of 3.5 hectares (8.65 acres), each unit has a significant amount of under-utilised landscaped areas, while the
total area includes expansion land at the rear of Unit 6.1 comprising approximately 0.5 ha (1.25 acres) that could be developed for a
range of uses (subject to planning).
Each property is of steel portal frame construction, with profile steel sheeting roofs (double skinned) and elevations formed from
composite cladding panels. The office element at the front of all units benefits from full height glazing and a modern office
specification, while Unit 6.1 has been converted throughout to a high specification office/call centre.
Parc Nantgarw
TREFOREST
SOUTH WALES
Unit 6.1
Warehouse (converted to offices)
Ground floor offices (original)
1st floor offices (original)
Total
m2
ft2
3,568
635
636
4,839
38,402
6,844
6,846
52,092
The warehouse has been converted to a high specification B1
office/call centre, including fully accessed raised floor, air
conditioning, VDU lighting and 8-person passenger lift.
In addition to the 2-storey offices at the front there is an open
fronted mezzanine floor of 4,595 ft2 (with cellular offices and
canteen/break-out area), while externally there is a security
gatehouse and plant rooms that comprise approximately 1,961 ft2.
The forecourt and secure side/rear yard provide 173 delineated car
parking spaces.
Unit 6.2
Warehouse
Ground floor offices
1st floor offices
Total
m2
ft2
2,605
200
200
3,005
28,041
2,151
2,151
32,343
A detached industrial unit with modern 2-storey offices at the
front and a secure rear yard. The warehouse has two up and
over loading doors, eaves height of approximately 6.1m,
halogen lighting units and translucent roof panels.
The landscaped forecourt includes 49 delineated car parking
spaces.
Unit 6.3
Warehouse
Ground floor offices
1st floor offices
Total
m2
ft2
1,722
241
237
2,200
18,540
2,594
2,546
23,680
A detached industrial unit with a clear internal height of
6.1m, two up and over loading doors and a secure rear yard.
The 2-storey office at the front include plastered and painted
walls, suspended ceilings, recessed lighting, carpeted concrete
floors (with floor boxes), double glazing and gas central
heating.
The landscaped forecourt includes 32 delineated car parking
spaces.
Parc Nantgarw
TREFOREST
ASSET MANAGEMENT OPPORTUNITIES
•
Outstanding rent review on Unit 6.1 with potential uplift of circa £80,000 pa
•
Up to 1.25 acres of possible development land with main road frontage
•
Re-gear options to explore with Doosan Infracore and GMAC
•
Target known occupier requirements for the re-letting of Unit 6.2
•
Potential to convert Unit 6.2 to a higher value use such as an office/call centre
SOUTH WALES
PROPERTY
TENANT
SIZE
LEASE START
LEASE EXPIRY
(BREAK OPTION)
RENT REVIEW
PASSING RENT
LEASE DETAILS
Unit 6.1
General Motor
Acceptance
Corporation
(UK) Plc
4,839 m2
25 June 1993
24 June 2018
25 June 2008
£230,000
Let to GMAC on an
assignment, subject to a
deed of variation. June 08
rent review notice has been
served at £311,000 pa,
equating to £5.75 ft2.
The call centre conversion
was approved as a tenant
improvement, so the rent
review is based on
industrial values.
Unit 6.2
DSG Retail
Limited
(52,092 ft2)
3,004 m2
3 Apr 2006
(32,343 ft2)
Unit 6.3
TOTAL
Doosan
Infracore
UK Ltd
2,199 m2
(£4.41 ft2)
(25 Dec 2011)
2 Apr 2011
-
(£6.00 ft2)
(2 Apr 2009)
29 Sept 1995
28 Sept 2010
£194,058
-
£137,500
(23,680 ft2)
(£5.81 ft2)
10,042 m2
£561,558
(108,115 ft2)
The break option is
subject to 9 months
notice and has recently
been instigated by the
tenant. A schedule of
dilapidations is being
prepared.
THE MARKET
The industrial market in Treforest was the subject
of the largest ever industrial property investment
transaction in South Wales, with the £60m
purchase of Treforest Industrial Estate by Segro
in 2006. This reinforced the area as one of the
prime industrial locations in South Wales, while
the adjacent Parc Nantgarw has emerged as a
complimentary mixed use business park, with a
diverse range of quality occupiers.
Although the local market has been very active
in the small/medium freehold sector over
recent years, the recent financial difficulties
have resulted in more companies exploring the
leasehold market. Recent comparable activity
in the industrial sector includes:•
Imperial Park, Newport – 51,500 ft2 let in
September 2008 to WH Smith on a 10-year
secure term at £5.50 ft2
•
Trident Park, Ocean Park, Cardiff – 21,000
ft2 let to BSS Group in June 2007 on a 15year term at an average rent of £5.84 ft2
•
Avenue Industrial Estate, Cardiff –
60,370 ft2 let to Gardvenus Ltd in January
2007 for 10 years at £5.96 ft2
•
Neptune Point, Cardiff – 19,760 ft2 let to
Buck & Hickman Ltd and subject to a June
2005 rent review agreed at £5.75 ft2
Parc Nantgarw
TREFOREST SOUTH WALES
COVENANT STATUS
GMAC UK Plc
Year Ending
Sales Turnover
DSG Retail Limited
31/12/2007
£000’s
164,157
Profit / (Loss)
before Taxes
Shareholders Funds
31/12/2006 31/12/2005
£000’s
£000’s
140,262
Year Ending
31/12/2007
£000’s
Doosan Infracore UK Ltd
31/12/2006 31/12/2005
£000’s
£000’s
153,544
Sales Turnover
Profit / (Loss)
before Taxes
219,527
77,222
Shareholders Funds
933,497
846,443
7,557
(29,071)
49,823
141,995
136,137
156,595
4,500,903
4,203,295
4,570,601
Year Ending
31/12/2007
£000’s
31/12/2006 31/12/2005
£000’s
£000’s
Sales Turnover
73,899
59,982
50,455
148,715
Profit / (Loss)
before Taxes
1,785
1,111
1,497
917,767
Shareholders Funds
4,180
2,984
2,242
Source: ICC
Source: ICC
Source: ICC
GMAC is one of the world's largest financial services companies,
with operations in over 40 countries. GMAC UK established its
UK call centre headquarters at Parc Nantgarw during 2000 and
manages automotive consumer finance deals for General
Motors. This includes the Vauxhall, Saab, Chevrolet and
Network Q brands, who sell through some 600 retailers across
the UK. Further information is available at www.gmacfs.co.uk
DSG Retail Ltd trade as Currys, Dixons, PC World and Partmaster
Direct. DSG specialise in the sale of high technology electronic
products, audio-video & personal equipment, domestic appliances,
photographic equipment, communication products and related
financial and after sales services.
Doosan Infracore UK Ltd (previously Euro Daewoo UK Ltd) is
part of the Doosan Infracore global network, who provide
first-class products and services in construction equipment,
industrial vehicles, machine tools, factory automation
systems, diesel engines and defence systems. Further
information including their annual report can be found at
www.doosaninfracore.co.kr.
TENURE
PROPOSAL
FURTHER INFORMATION
Freehold, subject to the occupational leases.
We have been instructed to seek offers of £6,250,000 (Six
Million Two Hundred and Fifty Thousand Pounds) for our
clients freehold interest in the above property, subject to
contract and exclusive of VAT. A purchase at this level
reflects a net initial yield of 8.5%, assuming usual
purchaser’s costs at 5.75%.
For further information or to arrange an inspection,
please contact;
VAT
The property has been elected for VAT and the sale can be
treated as a transfer of a going concern (TOGC).
King Sturge LLP, Haywood House, Dumfries Place, Cardiff CF10 3UE
Jonathan Phillips
Tel: 029 20726046
jonathan.phillips@kingsturge.com
Bethan Williams
Tel: 029 20726060
bethan.williams@kingsturge.com
MISREPRESENTATION CLAUSE
The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as
statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the
Property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable
or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements.
Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos
related compounds contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property.
Design and print by Carrick • Tel: 01443 843 520 • www.carrickdesignprint.co.uk
October 2008.