Anchorage Park - LSH Investment Sales

ANCHORAGE PARK
ROBINSON WAY, PORTSMOUTH P03 5TD
SOUTH COAST FREEHOLD INDUSTRIAL/WAREHOUSE INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
nVibrant South Coast City benefiting from excellent communications
via road, rail and sea.
nAttractive underlying South Coast occupational market conditions,
where there is an acute shortage of supply.
nProminently situated in a well established industrial location towards
the western end of Anchorage Road, approximately 3 miles from
J12 of the M27 and 1 mile from the A27. The A27/M27 is the main
South Coast route connecting Southampton with Brighton.
nTotal accommodation of approximately 115,740 sq ft (GIA) over three
warehouses and one office.
nTotal site area of approximately 4.25 acres.
nFreehold.
nMajority let on FRI terms to P&G Motors Ltd for a term of 10 years
from 16 October 2013, with a tenant option to break on 15 October
2018 at a rental of £500,000 per annum, reflecting a low rate of
£4.44 per sq ft.
nPassing rent of £567,100 per annum, inclusive of the vendor’s rent,
rates and service change guarantee for Unit 1 for 12 months from
completion or until let, whichever is the sooner.
nP&G Motors, t/a Unbeatable Cars, is one of the country’s largest car
supermarket operators with showrooms and facilities in Crawley,
Billinghurst and Portsmouth. The company has a Graydon Rating of
3A Excellent with a tangible net worth of £4.391m and a Turnover of
£37.467m.
nWe have been instructed to seek offers in excess of £6,500,000
subject to contract and exclusive of VAT. A purchase at this level
reflects a NIY of 8.25% (after purchasers costs of 5.8%) and a
capital value of £60 per sq ft.
LOCATION
Portsmouth lies within the county of Hampshire, approximately 19
miles south east of Southampton, 30 miles south east of Winchester,
50 miles west of Brighton and 70 miles north of London.
The city benefits from excellent road communications with
the M27/A27, the main South Coast route, located directly
north linking to the M3 to the west and the A3(M) to the
east. Both the M3 and A3(M) provide fast access north
towards London and the wider national motorway network.
Portsmouth benefits from four mainline stations with
Portsmouth & Southsea station providing regular and direct
services to London Waterloo with a fastest journey time of
approximately 1 hour 30 minutes.
WOKING
BASINGSTOKE
FARNHAM
A41
A3
HASLEMERE
WINCHESTER
PETERSFIELD
M3
EASTLEIGH
M27
The City of Portsmouth is world renowned for being home to the
Royal Navy and from 2016, home to the new Queen Elizabeth class
of aircraft carrier.
There are a number of main attractions including Gunwharf Quays
and the Historic Dockyard, where the Mary Rose, HMS Victory and
HMS Warrior are based.
Furthermore the city hosts important World Class events including
the Great South Run and from 2015, the Americas Cup where the
Landrover Ben Ainslie Racing Team are permanently based in their
Old Portsmouth facility.
Source: NOMIS
A272
A3
A3(M)
SOUTHAMPTON
A27
CHICHESTER
PORTSMOUTH
Portsmouth has a population of some 209,100 persons, with a
current unemployment rate of 6.4%. Major national and global firms
based in the area include BAE Systems, IBM and Pall Corporation.
GUILDFORD
A31
The nearest airport is Southampton International, located
approximately 20 miles north-west.
In the UK, Portsmouth International Port is the premier port
for the western channel and second busiest cross-channel
ferry port.
M25
M3
ISLE OF WIGHT
ARUNDEL
WORTHING
SITUATION
Anchorage Park is prominently situated within a well established
industrial location towards the western end of Anchorage Road fronting
the roundabout intersection of Robinson Way, Anchorage Road and
Sywell Crescent.
The property is accessible via the A27(M) and the A2030 (Eastern
Road). Hilsea Train station is within walking distance and provides
regular direct services to London. The international port is approximately
4 miles west.
The surrounding area is predominantly industrial, with areas of
residential and retail.
Opposite the subject property is a large Morrisons supermarket
with other nearby occupiers including ATS Euromaster, Booker, BAE
Systems, Smeg and Edmunson Electrical.
Portsmouth Motor Park is located less than 1 mile south-west with
occupiers including BMW, Mercedes, Audi, VW and Mini.
A27
A2030
HIL
SEA
ROKO
HEALTH CLUB
PORTSMOUTH
NO
EASTERN RD
BROOM
CHANNEL
RW
AY
R
D
AN
CH
O
RA
GE
RD
A2030
A27
EASTERN RD
ANCHORAGE
PARK
ANCHORAGE RD
WILLIAMS RD
AIRPORT SERVICE RD
Building 3
Building 1 comprises a detached two storey
office building with ground floor reception and
separate WC facilities. There is a passenger lift,
comfort cooling and central heating.
Building 3 is a single storey portal frame building with glazed and
profiled metal clad elevations. The building was built in 1989 and
has a minimum eaves height of 3.3m and a roller shutter loading
door with rear parking.
Building 2
Building 4
Building 2 lies adjacent to Building 1 and is
connected by a covered walkway. The detached
warehouse is accessed via two up and over roller
shutter doors and separate pedestrian access.
The minimum eaves height is 5.25 meters. The
unit is currently ustilised for the servicing of cars.
Building 4, constructed in 1993, is situated on the northern part
of the site and is accessed off Painter Close and Anchorage
Road. The ground floor provides a showroom with reception and
small customer facing café and kitchen area. The first floor is in
the process of being transformed to accommodate the further
storage and display of motor vehicles.
We understand the properties provide the following Gross Internal Area:
SQM
SQFT
Ground Floor offices
326
3,505
First Floor offices
298
3,203
624
6,708
2,499
26,896
Mezzanine
415
4,469
First Floor offices
731
7,870
Sub Total
3,645
39,235
Sub Total
1,955
21,044
Ground Floor
2,178
23,450
First Floor
2,181
23,475
Building 1
Sub Total
Building 2
Ground Floor Warehouse
Building 3
Ground Offices/hi-tech
Building 4
Ancillary
Sub Total
Total
170
1,828
4,529
48,753
10,753
115,744
4
3
1
2
Key
Occupied by PG Motors
Vacant
SITE
TENURE
The site has a total area of
approximately 4.25 acres.
The property is held Freehold.
R OB INS ON
WAY
Building 1
ACCOMMODATION
RO
AD
PA
IN
T E
R
Anchorage Park, formally one of the main facilities for Raymarine, was developed in the 1980s with Building 4
constructed in 1993, to provide 1 office and 3 warehouse buildings with a total GIA of approximately 115,740 sq ft.
AN
CH
OR
AG
E
S Y WE L L CR E S C E NT
CL
OS
E
DESCRIPTION
TENANCY
Unit 2, 3 and 4 is let to PG Motors Limited on Full Repairing and Insuring terms,
with a schedule of condition, for a term of 10 years from 16 October 2013, thereby
providing approximately 8 years to expiry.
The tenant has an option to break on 15 October 2018.
The total current rent is £500,000 per annum which reflects £4.44 per sq ft overall.
The rent is subject to an upward only rent review on the 16 October 2018.
Unit 1 is currently vacant. The vendor will provide a rent, rates and service charge
guarantee for 12 months from completion or until Unit 1 is let, whichever is the
sooner.
Copies of the lease and accompanying documentation are available on request.
COVENANT PROFILE
PG Motors (Company No 4275433) trading as Unbeatable Car was incorporated in
2001 and is one of the country’s largest car supermarket operators with showrooms
and facilitates in Crawley, Billinghurst and Portsmouth.
The company is rated by Graydon as 3A Excellent with a Risk Category of Low.
A summary of the financial accounts for the last three years is set out below:
Sales Turnover
Profit/(loss) Before Tax
Tangible Net Worth
30 April 2014
30 April 2013
30 April 2012
£37,467,000
£35,458,000
£37,738,000
£701,000
£1,118,000
£1,301,000
£4,931,000
£4,460,000
£3,700,000
The prominent position of Anchorage Park in fronting the roundabout intersection
provides excellent public visibility for Unbeatable Cars branding and advertisements.
The company store and display hundreds of cars from 35 different manufactures
at Anchorage Park. The strategic location of the subject property allows the public
quick access to the car supermarket as well as providing the tenant with quick
access to the wider road network assisting them greatly with their “free collection
service to a number of UK areas.”
Further information on the company is available on their website:
http://www.unbeatablecar.com/
SOUTH COAST INDUSTRIAL MARKET OVERVIEW
INVESTMENT MARKET OVERVIEW
Portsmouth is a well diversified industrial location within
the South Coast, where the industrial/warehouse market
continues to suffer from an acute shortage of available
stock.
Rents on modern second-hand units have increased from
an average of £6.50 per sq ft to £7.00/£7.50 per sq ft. The
rent on Anchorage Park therefore compares favorably at
£4.44 per sq ft.
The attractive market dynamics in the South Coast has fuelled
demand for good quality industrial investments. We have
outlined below some key transactions. Against the quoting price,
Anchorage Park equates to an attractive NIY of 8.25% and a low
capital value of £60 psf.
At the end of Q2 2015, industrial supply fell by 13% from
Q1 to stand at 1.645m sq ft. In particular, Portsmouth
saw a reduction in availability of 11%.
On new units, including pre-lets and speculative builds,
it is anticipated rents will rise to in excess of £8.00/£8.50
per sq ft.
Due to the lack of supply, take-up levels have fallen from
482,000 sq ft to 426,000 sq ft. However, despite this,
take-up remains well above the five yearly quarterly
average of 387,000 sq ft.
Developers are now responding to these market
conditions. Within the immediate area, Chancerygate
have acquired close to 4 acres at Voyager Park with the
intention to speculatively construct c.73,000 sq ft in eight
units. Furthermore, there has been a significant pre-let at
Voyager Park to Formaplex for 120,000 sq ft.
These market dynamics have had a knock on effect with
headline rents increasing and tenant incentives reducing.
Date
Property
Size
Tenant
Comment
Price
NIY
Oct-15
Brambles House, Waterlooville
55,000 sq ft
Hampshire Cosmetics
15 year lease from Dec 2011
£300,000 p.a. Break in 2019
Long leasehold – 125 years
Under offer –
Quoting £4m
(£73 psf)
7.00%
Sept-15
Southmoor Lane, Havant
35,904 sq ft
Lewmar Marine
15 year FRI lease, expiring 2030
£230,000 per annum with 5 yearly Rent reviews
1995 build
£3.26m
(£91 psf)
6.70%
Aug -15
Canberra Road, Nursling
30,500 sq ft
TNT Express (UK) Ltd
25 year lease from June 1995
£233,450 p.a. with 5 yearly rent reviews
Long leasehold, site of 2.85 acres
£3.3m
(£108 psf)
6.69%
Aug - 15
Unit 30 Moorside, Winchester
40,996 sq ft
Barclays and Mathieson Ltd
Sale and leaseback. 15 year lease
£287,000 p.a. with 5 yearly RPI reviews
£4.325m
(£105 psf)
6.25%
Aug-15
2 Brunel Way, Fareham
38,619 sq ft
Crown Worldwide Holdings Ltd
10 year from 2010
FRI, outstanding review capped at £247,500 p.a.
Long leasehold
£3.1m
(£80 psf)
6.86%
July -15
Units 5,6 & 7 Watersmead Business
Park, Littlehampton
HQ office: 53,801 sq ft
2 warehouses at 55,603 sq ft and 60,674 sq ft
170,078 sq ft over 2 warehouse and 1 office.
(£116 psf)
The Body Shop
WAULT c.11 years
3 co-terminus leases
£19.75m
6.90%
Jun -15
D’Oriel House, Holton Heath
Trading Park, Poole
76,300 sq ft
Tower Supplies
new 10 year FRI lease, stepped rent, Freehold
£4.412m
(£58 psf)
7.50%
EPC
Anchorage Park has an Energy Performance rating of
E 119. Further information is available on request.
VAT
The property has been elected for VAT and therefore
it is envisaged that the sale will be treated by way of
a Transfer of a Going Concern (TOGC).
PROPOSAL
We have been instructed to seek offers in excess
of £6,500,000 subject to contract and exclusive
of VAT. A purchase at this level reflects a NIY of
8.25% (after purchasers costs of 5.8%) and a capital
value of £60 per sq ft.
FURTHER INFORMATION
For further information or to arrange an inspection,
please contact:
Jerry Vigus
jvigus@lsh.co.uk
T: 023 8020 6111
Matthew Barker
mbarker@lsh.co.uk
T: 023 8024 9181
5 Town Quay,
Southampton
SO14 2AQ
Misrepresentation Act 1967: Lambert Smith Hampton for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None
of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the
statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Lambert Smith Hampton nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to
this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be
subject to subsequent amendment. All maps and plans are for indicative purposes only.
Lambert Smith Hampton: November 2015
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