ANDOVER Investment For Sale - Hartnell Taylor Cook LLP

Investment For Sale
Two Modern Long Leasehold Multi-Let
Industrial Estates
ANDOVER
Imperial Court, Magellan Close, Walworth, SP10 5NT
&
Sopwith Park, Royce Close, West Portway, SP10 3TS
INVESTMENT SUMMARY
Andover is an established commercial centre located in the
Test Valley, in the western side of Hampshire.
Two multi-let industrial estates occupying prominent
positions and situated on well established industrial estates
located to the west and east of Andover Town Centre.
9 units in total extending to 35,039 sq ft, with potential
asset management opportunities.
Total net income after all shortfalls is £165,314 per annum.
Seeking offers of £1,400,000 (One Million Four Hundred
Thousand Pounds only) for both estates, representing a true
net initial yield of 11.16% increasing to 13.56%.
Capital value of £39.96 per sq ft.
LOCATION
DEMOGRAPHICS
MARKET COMMENTARY
Andover is an affluent Hampshire
town situated approximately 18
miles north west of Winchester at
the junction of the A303 and A343,
the former providing direct access to
the M3 Motorway (Junction 8)
approximately 11 miles to the east.
Direct connections with the A34 dual
carriageway 6 miles to the east are
also available, which links directly
with Junction 13 of the M4
Motorway.
Andover is an established
commercial centre with an
estimated population of circa 40,000
persons, and a district population of
almost 110,000 (2001 Census
Recent activity occurring on both
estates provides the best valuation
evidence available.
The A34 is one of the main routes
linking Southampton (21 miles to the
south) to the M4 Motorway, Oxford
and the Midlands.
The A303 also provides trunk route
connection between the M3 and the
West Country, merging with the A30
at Honiton, affording easy onward
access to Exeter.
Rail services to London Waterloo are
available in approximately 1 hour 12
minutes.
Socio economic figures reveal a high
percentage of blue collar enterprise
(20.96% compared to a GB average
of 11.08%)
The local economy is dominated by
manufacturing industries, banking
finance and business services, with
major employers including Jacksons
of Piccadilly Limited, Stannah
Stairlifts, Londis Holdings, Britax
Excelsior and HSA.
Unit 3 Imperial Court has been sold
on a vacant possession basis at a
figure equating to £50.00 per sq
ft. The most recent letting on
Sopwith Park, Unit 4 was at a rent
equating to £7.50 psf.
ACCOMMODATION
The total gross internal floor area
of both estates is 35,039 sq ft.
The individual areas are set out in
the Tenancy Schedule below.
Imperial Court, Magellan Close, Walworth, SP10 5NT
SITUATION
DESCRIPTION
COVENANT DETAILS
Imperial Court sits at the heart of
Walworth Business Park which totals
approximately 250 acres of factory,
distribution, retail and office
facilities. The park is adjacent to the
A303 on the eastern side of Andover
and close to the ring road. Imperial
Court is located close to the
southern entrance of the estate,
where other occupiers include
Twinings, Londis, Stannah Lifts,
Britax, DHL and Epicure Foods.
Adjacent is a 3.54 acre site currently
being marketed as suitable for a
number of potential uses including
hotel, industrial/warehouse and
leisure.
The property comprises a modern
industrial estate of four detached
warehouse units constructed of steel
portal frame with fully clad external
walls (Unit 3 has been sold off on a
long leasehold basis). Each unit
benefits from a feature glazed
entrance, well fitted offices,
minimum eaves height of 6m, a
loading door and dedicated car
parking spaces. The site extends to
approximately 1.114 acres.
Trident Electrical Services Ltd
has a Credit Safe rating of 85 out
of 100 and had a net worth of
£411,000 at 31 May 2011.
Kier Property was recently appointed
by Test Valley Borough Council to
rejuvenate Walworth Business Park,
and attract new occupiers through a
number of initiatives including
master planning a landscaping
strategy and drawing up plans for
vacant plots, to work with existing
occupiers and promote Walworth as
a business destination.
TENURE
The property is held on a lease from
The Borough Council of Test Valley for
a term of 125 years expiring 30
December 2123, reviewable 5 yearly
(next review 31 December 2013), at a
passing rent of £26,455 per annum.
Rent is reviewed to the open market
rental value of the site, assuming no
buildings have been constructed
thereon.
The new owner of Unit 3 pays 20.22%
of the overall ground rent.
Alternative Fitness Solutions Ltd
is a modern gym offering a range
of services including personal
fitness training, physiotherapy,
massage and nutritional advice.
The company as at 30 September
2010 had a net worth of
(£52,000). Alternative Fitness
Solutions Ltd were incorporated
in September 2008 with Imperial
Court being their first trading
location.
PMA UK Ltd has a Credit Safe
rating of 93 out of 100 and is a
subsidiary of PMA AG who were
established in 1975 in Switzerland
and currently have circa 170
employee’s worldwide.
Sopwith Park, Royce Close, West Portway, SP10 3TS
SITUATION
DESCRIPTION
COVENANT DETAILS
The Portway Industrial Estate is
situated approximately 2 miles to
the west of Andover Town Centre
and comprises a first class
distribution location. Portway
Estate is divided by the A343
(northern ring road) into east and
west with Sopwith Park located in
the west. West Portway lies
adjacent to the junction of the
A303, the A342 (Weyhill Road)
and A343 (Churchill Way).
Sopwith Park is located at the
end of Royce Close, which in turn
joins with the main Macadam
Way.
The property comprises a multilet industrial estate of five
detached buildings incorporating
six units, arranged in a
landscaped courtyard. Each unit
comprises a two-storey building
of traditional brick construction
arranged under a pitched clad
roof, and benefits from separate
offices, a loading door,
kitchenette and w.c’s and
dedicated parking spaces.
ADR Training (South East) Ltd
are a well established company
providing nationwide training for
a wide range of clients including
schools and transport companies.
The company had a net worth of
(£31,000) as at 31 March 2011.
Occupiers located nearby include
Euronics, Newy and Eyre Limited,
Andover Ford, B P Rolls, Wolseley
Centres Limited and Sunlight
Servicing.
The site extends to approximately
0.967 acres.
Tenure
The property is held on a lease
from The Borough Council of Test
Valley for a term of 125 years
expiring 31 December 2115,
reviewable 5 yearly (next review
1 January 2015) at a passing rent
of £28,000 per annum.
Rent is reviewed to the open
market rental value of the land,
being the annual rental of the
land ignoring the buildings built
thereon.
Sigvaris Britain Ltd has a Credit
Safe rating of 94 out of 100 and is
a subsidiary of Sigvaris who were
established in Switzerland in
1864 and have premises in
Europe, North America and South
America.
Stok UK Ltd specialise in the
distribution and management of
stock within the medical devices
industry. The company have a
Credit Safe rating of 84 out of
100 and as at 30 June 2011 had a
net worth of £128,000.
Deublin Ltd are a leading
manufacturer of Rotating Unions.
The company has a Credit Safe
rating of 92 out of 100 and at the
year to 31 December 2010 had a
turnover of £2.03m and a net
worth of £770,000.
PROPOSAL
We are instructed to seek offers of £1,400,000 (One Million Four Hundred Thousand Pounds only) subject to contract and
exclusive of VAT. A purchase at this level reflects an attractive true net initial yield of 11.16%, increasing to 13.56% and a
capital value per sq ft of £39.96.
VAT
It is anticipated that the sale of the property will be treated as a Transfer of a Going Concern (TOGC).
VIEWINGS AND ENQUIRES
For Further information or to arrange an inspection of this property, please contact:
Ian Lambert BSc MRICS
Partner
Tel:
0117 946 4525
E-mail: ian.lambert@htc.uk.com
Jonathan Gilbert BSc MRICS ACIArb
Partner
Tel:
020 7788 3817
E-mail: jonathan.gilbert@htc.uk.com
Hartnell Taylor Cook LLP
Somerset House
18 Canynge Road
Clifton
Bristol
BS8 3JX
Hartnell Taylor Cook LLP
12/13 Conduit Street
Mayfair
London
W1S 2XH
EPC
Typical EPC values for both estates are below.
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exclude all liability for any loss or damage that you may suffer as a result of your reliance on the contents of this document.
Subject to Contract