the Sales Brochure

HIGH YIELDING CASH AND CARRY
INVESTMENT OPPORTUNITY
JTF Cash And Carry, Frederick Road,
Hoo Farm Industrial Estate, Kidderminster, DY11 7RA
HIGH YIELDING CASH AND CARRY
INVESTMENT OPPORTUNITY
JTF Cash And Carry, Frederick Road, Hoo Farm Industrial Estate, Kidderminster, DY11 7RA
INVESTMENT SUMMARY
Refurbished unit located in a very well established commercial area.
The unit benefits from a cash and carry planning consent.
Let for a further 9.5 years (without break) to national cash and carry operator
JTF Wholesale Limited.
Low passing rent of £140,000 per annum equating £3.23 per sq.ft.
Price £1,500,000.
Net initial yield of 8.82%, after purchaser’s costs of 5.80%.
Underlying low capital value of £34.85 per sqft.
LOCATION
The property is prominently located at the front of Hoo Farm Industrial Estate fronting onto Worcester Road
(A449), the main arterial route linking Kidderminster with Worcester to the south (12 miles) and Wolverhampton
to the north (17 miles). Kidderminster town centre is 2 miles to the north of the property and Junctions 3 and
5 of the M5 are 12 miles to the north-east and 10 miles to the south-east respectively.
Occupiers in the vicinity include Go Outdoors, Screwfix, MCD, Tile Choice and Balfour Beatty.
DESCRIPTION
The property comprises a 1980s built two bay warehouse with a metal profile clad steel trussed roof. There is
a two storey office block attached to the front elevation of the warehouse along with a 64 space car park with
a large secured storage yard to the western elevation. The warehouse is accessed via four level access roller
shutter doors.
The tenant has undertaken an extensive refurbishment and fit out to the unit to convert it into a cash and carry
unit which is trading to the public. The works included converting one of the roller shutter doors into a glazed
customer entrance into the unit and the installation of six check out tills within the warehouse.
HIGH YIELDING CASH AND CARRY
INVESTMENT OPPORTUNITY
JTF Cash And Carry, Frederick Road, Hoo Farm Industrial Estate, Kidderminster, DY11 7RA
ACCOMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and has
the following Gross Internal Area:DESCRIPTION
AREA SQM
AREA SQFT
3,780.46
40,693
Ground floor Offices
120.05
1,292
First Floor Offices
121.36
1,306
TOTAL
4,021.87
43,291
Warehouse
SITE AREA
The site is 0.97 ha (2.40 acres) with a site density of approximately 41%.
TENURE
Freehold.
PLANNING
Planning consent was granted on 20 December 2012 to change the use of the warehouse from B8 to Retail
Warehouse Club (cash and carry).
TENANCY
The property is let to JTF Wholesale Ltd on a 10 year lease (without break) from 8 April 2013, expiring on 7
April 2023 (9.5 years unexpired). The lease is held on full repairing and insuring terms with an upwards only rent
review on expiry of the 5th year.
The current rent is £140,000 per annum (£3.25 per sq.ft).
The tenant was given a two year rent free incentive on commencement of the lease in lieu of an agreed schedule of
refurbishment works. The vendor will top up the unexpired rent free on completion of the sale.
HIGH YIELDING CASH AND CARRY
INVESTMENT OPPORTUNITY
COVENANT
JTF Wholesale Ltd is a cash and carry operator trading under the name of
JTF Mega Discount Warehouse. The company was established in 1988 and
operates from 12 stores in the Midlands and North of England. The company
has over 450,000 members.
A summary of the company’s accounts is set out below:
YEAR ENDED
25/03/2012
£’000s
25/03/2011
£’000s
Turnover
61,861
51,789
Pre-tax Profit
2,122
1,484
Shareholders’ funds
2,463
1,339
RENTAL ANALYSIS
The current rent of £140,000 per annum equates to £3.23 per sq.ft.
We consider that the letting at £3.23 per sq.ft is low when compared with
other comparable lettings given the planning consent, age and size of the unit.
•
JTF has recently exchanged contracts on Units 1 & 2 Bescot Retail Park
in Walsall. The units extend to 45,378 sq.ft and are to be let (subject to a
change of use to cash and carry consent) on a 15 year lease with a 10
year break. The agreed rent equates to £6.00 per s.ft.
• Unit 1 Frederick Road, adjacent to the subject property, which comprises
a 35,295 sq.ft unit of similar age to the subject property, was let to Go
Outdoors in June 2013 at a rent of £4.11 per sq.ft on the basis of a 20
year lease without break. The unit has a planning consent personal to
Go Outdoors for the sale of bulky leisure goods with 15% of the area for
the sale of outdoor clothing and footwear.
HIGH YIELDING CASH AND CARRY
INVESTMENT OPPORTUNITY
JTF Cash And Carry, Frederick Road, Hoo Farm Industrial Estate, Kidderminster, DY11 7RA
PRICE
We are instructed to seek offers in excess of £1,500,000, a purchase at this level would reflect a net initial yield of 8.82%, allowing for purchaser’s costs of 5.80%. This reflects a low capital
value of £34.85 per sqft.
VAT
The property is elected for VAT however it is anticipated that the purchase will be dealt with by way of a TOGC.
EPC
The property has a rating of D-81.
For further information or if you wish to arrange an inspection please contact:
Ben Blackwall
DD: 0121 513 0893
M: 07798 647 836
ben.blackwall@fspproperty.co.uk
Andrew Franck-Steier
DD: 0121 513 0891
M: 07798 647 640
andrew.franck-steier@fspproperty.co.uk
Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants
must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd nor any of their 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. Prices and 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 of fulfilling its intended function.