Altrincham - Atlantic Street Portfolio

ATLANTIC STREET PORTFOLIO
ATLANTIC STREET, altrincham WA14 5DE
Well located multi-let office and industrial investment opportunity ENTER
ATLANTIC POINT
ATLANTIC STREET PORTFOLIO ALTRINCHAM
INVESTMENT
location
AERIAL
SITUATION
UNIT J LYON INDUSTRIAL ESTATE
SUMMARY
INVESTMENT SUMMARY
• Two self-contained properties situated on Atlantic Street, Altrincham which is one of the principal commercial locations in the South Manchester conurbation
• Atlantic Point comprises a large warehouse complex which has been comprehensively modernised and refurbished to provide substantial office and industrial accommodation.
• Unit J Lyon Industrial Estate provides detached two storey office a on a self-contained site situated adjacent to the entrance of a forthcoming Asda food store.
• Fully let and providing a combined passing rent of £316,000 per annum (£9.27 psf on the offices with £4.49 psf on the industrial accommodation)
• WAULT of 5.6 years (5.5 years to break)
• 86% of the passing income secured to the substantial covenant of Convergys Intelligent Contact Ltd, who have been granted a Dun & Bradstreet rating of 4A 1
• Offers are sought in excess of £3,595,000, (Three Million Five Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT.
• A purchase at this level would reflect an attractive net initial yield of 8.31%
INVESTMENT
location
8
7
7
A56
M60
7
M57
4
St. Helens
VERPOOL
ATLANTIC STREET
10
21A
M62
1
6
ead
7
M62
M6
2
4
M602
0
A58
23
A56
5
Bootle
R
IV
ER
M
E
5
R
S
E
Runcorn
Y
Ellesmere
9 Port
10
16
eensferry
M56
11
10
11
15
12
1
10
ATLANTIC STREET
M60
Didsbury
A3 4
M56
Baguley
TIMPERLEY
WYTHENSHAWE
ALTRINCHAM
4
A56
19
A5
37
Wilmslow
Bowdon
Hale
5
A53 7
Northwich
1
2
6
M56
Knutsford
M6
Hale Barns
8
0
A5
CHESTER
4
3
M6
12
14
A56
56
A5
20
9
5
Brooklands
M60
Widnes
M56
MANCHESTER
ALTRINCHAM
Warrington
West Didsbury
6
SALE
Salford
Wigan
M56
7
M56
6
MANCHESTER AIRPORT
location
Altrincham is one of the principle commercial centres in Cheshire and an affluent satellite
town within Greater Manchester. The town is strategically 18
located approximately 8 miles
south west of Manchester City Centre and 11 miles east of Warrington. The town has
Newcastlea resident population of approximately 40,000 and a catchment
of 411,000 people living
within 6.2 miles and 1.8M people within a 12 mile radius of theUnder-Lyme
town. Altrincham and the
adjacent residential areas of Hale, Hale Barns and Bowdon are some of Manchester’s most
affluent suburbs with wealthy executives accounting for 14.73% of the present population
compared to the national average of only 8.6%.
The town benefits from excellent communications being located 3 miles south of J7 of the
M60 orbital and 3 miles east of J3 of the M56, which links directly with the M6. Furthermore
the A56 provides direct access to Manchester City Centre to the north and M56 motorway
to the south. Altrincham also benefits from the Metrolink which provides a frequent
service to Manchester City Centre (30 minutes). Manchester Airport is located just 5 miles
to the east of the town and is the UK’s 3rd largest airport, handling approximately 22M
passengers per annum with flights to over 200 destinations.
AERIAL
2
KEY
1.
1
UNIT J LYON IND EST
NEW ASDA FOOD STORE
3
JCB
5
ATLANTIC POINT
2. The Cartwright Group
3. Stag Industrial Estate
4
4.Screwfix
5. Stuart Road Industrial Estate
6. Cotton Traders
6
7. Howdens Joinery
7
14
8. Aldi
ATLANTIC STREET
9. TK Maxx
8
11
10. Carpet Right
9
ALTRINCHAM RETAIL PARK
10
11.Dreams
13. Homebase
14. Budenburg Apartments
13
12
12.B&Q
TO ALTRINCHAM/M56
A56
15. Halfords & Dunelm
15
TO MANCHESTER
SITUATION
SITUATION
The subject properties are situated on Atlantic Street, which is Altrincham’s principle
commercial location situated to the north west of the town centre. Atlantic Street
benefits from excellent road communications adjoining the A56, one of the main
arterial routes linking Altrincham with Manchester City Centre to the north and the
M56 motorway to the south.
Atlantic Street is a highly successful and sought after commercial location offering
a mix of office, industrial and retail uses. Nearby occupiers include Screwfix, JCB,
HSS Hire, Cotton Traders, B&Q and The Cartwright Group amongst many others.
Furthermore Altrincham Retail Park is located at the junction of Atlantic Street and
the A56, which comprises a 218,051 sq ft retail scheme with occupiers including
Boots, Homebase, Argos Mothercare and Pets at Home.
Work has also recently commenced on a new 70,000 sq ft Asda supermarket fronting
onto Atlantic Street, which is due to open in November 2015 and will further
enhance both the commercial offering in the area and also the quality of built the
environment along Atlantic Street.
Unit J Lyon Industrial Estate is situated immediately adjacent to the proposed
entrance of the new Asda store. As such the prominence of this building will be
greatly improved following completion of the new development.
ATLANTIC POINT
ATLANTIC POINT
ENTER
ATLANTIC POINT
DESCRIPTIOn ACCOMMODATION TENANCY coVENANT contact
DESCRIPTION
Atlantic Point consists of a large refurbished and modernised warehouse complex of steel
frame construction with brick elevations and a twin-bay pitched cement roof. The property
benefits from two storey office accommodation along the front elevation, which has recently
been re-clad beneath a flat roof.
Internally Units 1, 3, 4 and 5 have been merged and comprehensively refurbished to provide
two storey open-plan office accommodation, currently being utilised as a call centre. The
offices have been fitted to an excellent specification including air conditioning throughout,
raised floorings, suspended ceilings, a large canteen and café area, reception area and male,
female and disabled toilets.
Unit 2 comprises a small industrial unit located to the rear of Atlantic Point and benefits
from the following specification
•
•
•
•
•
Roller shutter loading to the front with additional concertina loading door to the rear
Internal office and amenity block including kitchen and toilet facilities
Secure, self-contained yard area
Fully fenced and gated site
3.6m eaves
The property benefits from a large surfaced yard area with circulation available to all four
elevations of the unit, together with a service road leading to Atlantic Street. The yard
area is securely fenced and offers approximately 91 parking spaces for Units 1,3,4&5 and
a further 22 spaces for Unit 2. A sub-station and telecommunications equipment are also
situated along the service road into the site.
DESCRIPTIOn ACCOMMODATION
ET
E
STR
C
I
NT
A
ATL
ACCOMMODATION
SITE AREA
The property provides 25,913 sq ft (2,407.40 sq m) of accommodation across Units 1 - 5
units. A full breakdown of the floor area is provided within the enclosed Tenancy Schedule.
The property has a site area of 1.78 acres (0.71 hectares). In addition the land sold
long-leasehold provides a further 0.53 acres (0.22 hectares).
The above area excludes Unit 6 (shaded blue), which has previously been sold on a long
leasehold basis. For the purpose of the service charge we understand that Unit 6 provides a
further 3,002 sq ft of accommodation.
TENURE
We understand the property is held freehold.
TENANCY
TENANCY schedule
The property is fully let as detailed in the tenancy schedule below:
Unit
Tenant
1,3,4&5
Convergys Intelligent
Contact
Size (sq ft)
20,563
Start Date
08/03/2011
Expiry (Break)
Rent Review
Rent pa (Rent psf)
£174,786
07/03/2021
(£8.50)
Comment
3 month rent free from 25 March 2016.
Service charge cap of £1.50 psf.
Subject to Schedule of Condition.
Half rent payable from 2 May 2015 –
1 September 2015 (topped up by vendor).
2
Cheshire Traditional
Contracting
Company Limited
5,350
02/02/2015
£24,000
30/06/2017
(£4.49)
Subject to Schedule of Condition
Outside 1954 Act but with an option to renew for a
further 6 years.
Service charge cap of £1.16 psf subject to RPI
linked increases
6
Yard Communication
Site
Total
Cheshire Marble
Industries Ltd
01/01/2006
Cornerstone
30/01/2014
Telecoms
25,913
31/12/2104
29/01/2024
(30/01/2017)
30/01/2019
n/a
Self-contained site sold on long leasehold basis
£3,750
Mutual Break subject to 12 months notice
£202,536
coVENANT
Tenant Covenant
Convergys Intelligent Contact Limited partners with clients to help improve customer
loyalty, reduce costs and generate revenue through an extensive portfolio of capabilities.
The company operates as a division of Convergys Corporation, one of the largest business
process outsourcing companies in the world, made up of 125,000 employees working in
more than 150 service centres and 31 different countries. In 2013 Convergys Corporation
reported a revenue of $2.046 billion.
Convergys Intelligent Contact Ltd have been granted a Dun and Bradstreet rating of 4A 1
and have reported the following accounts:
Turnover
Pre-tax profit
Tangible Net Worth
31/12/2013
7 months (000’s)
31/05/2013
12 months (000’s)
31/05/2012
12 months (000’s)
£46,794,507
£64,453,992
£55,125,942
£2,829,250
£5,902,348
£4,850,580
£21,479,623
£19,194,256
£20,990,459
Based in South Manchester, Cheshire Traditional Contracting Ltd (t/a Contract Tile
Consultants) are a supplier of bespoke tile products, supplying residential developments,
leisure and shopping centres, hotels restaurants and bars. The company has been trading
since 1991 and in the year ending September 2013 reported a tangible net worth of £107,413.
SERVICE CHARGE
A service charge is administered throughout the estate. The service charge budget for the
current year is:
Schedule 1 (includes Cheshire Marble who contribute 10.4%): £8,256
Schedule 2 (excludes the long-leasehold interest to Cheshire Marble): £14,868
The current service charge budget equates to £0.86 psf. The service charge includes repair
and maintenance of the common areas (including the foundations, roof, structure and
outside of the building), repair and maintenance of the service road, security, providing
utility supplies to and from the building, health and safety, signage, staff costs and
management fees.
ATLANTIC POINT
UNIT J LYON INDUSTRIAL ESTATE
UNIT J LYON INDUSTRIAL ESTATE
ENTER
UNIT J LYON INDUSTRIAL ESTATE
DESCRIPTION ACCOMMODATION TENANCY CONTACT
DESCRIPTION
Unit J, Lyon Industrial Estate comprises a two storey office building of steel frame
construction with part brick / part metal clad elevations beneath a pitched metal clad roof.
The property benefits from the following specification:•
•
•
•
•
•
•
Double glazed windows
Suspended ceiling
Air conditioning throughout
Raised access flooring to the first floor accomdation
Gas central heating throughout
Substantial canteen area with kitchen and service counter
Fully fitted gym area with male and female changing facilities
The property benefits from a private surface parking area adjoining the side and rear
elevations, providing parking for approximately 65 vehicles giving a ratio of 1:164 sq ft.
In addition to the office accommodation an additional strip of land to the rear of the
property can be included in this sale. The land rectangular in shape and approximately
0.38 acres, situated immediately adjoining the new Asda food store car park. This land is
highlighted on the enclosed site plan.
DESCRIPTION ACCOMMODATION
IC
DS
HAR
R
RGE
O
E
G
WAY
ACCOMMODATION
The property has been measured in accordance with the Rics Code of Measuring Practice
(6th Edition) and provides the following floor areas:
Description
ASDA CAR PARK
Net Internal Area
sq ft
sq m
Ground Floor
5,211
484.13
First Floor
5,326
494.83
10,537
978.96
TOTAL
SITE AREA
The site extends to approximately 0.532 acres (0.216 hectares).
TENURE
BY
AND ION
L
L
NA
IAT
ITIO
GOT
ADD ATE NE
R
SEPA
We understand that the property is held on a freehold basis.
REET
A
ATL
ST
NTIC
NEW ASDA
FOOD STORE
TENANCY
TenanCY
The property is let in its entirety to Convergys Intelligent Contact Limited for a term of 10
years commencing 8 March 2011 (circa 5.9 years unexpired)
• The passing rent is £113,564 per annum (£10.78 per sq ft)
• The lease is drafted on full repairing and insuring terms
• The tenant has been granted 10 parking spaces upon the adjoining land
• The tenant will benefit from a 3 month rent free period commencing 25 March 2016.
TENANCY COVENANT
Convergys Intelligent Contact Limited partners with clients to help improve customer
loyalty, reduce costs and generate revenue through an extensive portfolio of capabilities.
The company operates as a division of Convergys Corporation, one of the largest business
process outsourcing companies in the world, made up of 125,000 employees working in
more than 150 service centres and 31 different countries. In 2013 Convergys reported a
revenue of $2.046 billion.
Convergys Intelligent Contact Ltd have been granted a Dun and Bradstreet rating of 4A 1
and have reported the following accounts:
Turnover
Pre-tax profit
Tangible Net Worth
31/12/2013
7 months (000’s)
31/05/2013
12 months (000’s)
31/05/2012
12 months (000’s)
£46,794,507
£64,453,992
£55,125,942
£2,829,250
£5,902,348
£4,850,580
£21,479,623
£19,194,256
£20,990,459
ATLANTIC POINT
UNIT J LYON INDUSTRIAL ESTATE
contact
SUMMARY
SUMMARY
Energy Performance Certificate
Further Information
Energy Performance Certificates have been commissioned and are available on request.
For further information to arrange an inspection please contact:
VAT
Simon Wood
The properties are elected for VAT and it is the intention to treat this transaction as a
Transfer of a Going Concern.
Proposal
We are instructed to seek offers in excess of £3,595,000, subject to contract and exclusive
of VAT. A purchase at this level would reflect a net initial yield of 8.31%, assuming
standard purchasers costs of 5.8%.
B8 Real Estate
Tel: 01925 320 520
Mob: 07793 119210
Email: simon@b8re.com
John Burrows
B8 Real Estate
Tel: 01925 320 520
Mob: 07921 137200
Email: johnb@b8re.com
MISREPRESENTATION ACT: All Agents and for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute
any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each
of them. (ii) no person in the employment of all agents has any authority to make or give any representation or warranty in relation to this property. Designed & produced by i-brochure.com, April 2015.