BALLIOL BUSINESS PARK, LONGBENTON,...
Transcript of BALLIOL BUSINESS PARK, LONGBENTON,...
FOR SALE PRIME SINGLE-LET INDUSTRIAL INVESTMENT
UnitOneBALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW
On behalf of
UnitOneBALLIOL BUSINESS PARK, LONGBENTON NE12 8EW
• Situated in an established commercial location, approximately 4 miles north of Newcastle city centre
• Strategically located on Balliol Business Park, with excellent access to the A1 & A19
• A detached industrial unit extending to 40,235 ft2
• Long Leasehold Interest with circa 130.5 years unexpired
• Let to Royal Mail Group Limited (D&B rating of 5A1) on a 5 year lease until 30th November 2021, therefore providing an unexpired term of 4.69 years (2.69 years to break)
• Rack rent of £213,000 per annum, equating to £5.29/ft2
We are instructed to seek offers in excess of £2,426,000 (Two Million, Four Hundred and Twenty Six Thousand Pounds) for our client’s interest. A purchase at this price reflects a net initial yield of 8.25% assuming purchasers’ costs of 6.37% and offers a capital value of £60.30/ft2
INVESTMENT SUMMARY
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 1
LOCATION
Heaton
Longbenton
Jesmond
Wallsend
Gosforth
Town Moor
Newcastle UnitedGolf Course
Rising SunCountry Park
NewcastleRacecourse
Byker
GreatNorth Road
A167
A189
A696
B6918
A186
A186
A189
A1058
A1058A191
A191
A188
A191
NewcastleInternationalAirport
NewcastleUpon Tyne
Four LaneEnds
NewcastleUpon Tyne
A1
A1North
A1
A19 North
A19 toTyne Tunnel
& South
A19Quorum
BalliolBusiness
ParkA188
A188
Gateshead
Cobalt
The City of Newcastle upon Tyne is located 451 km (280 miles) north of London and 175 km (109 miles) south of Edinburgh with direct connections to the A1(M), A19 and A69 which provides access onto the M6.
Newcastle upon Tyne is the principal commercial centre in Tyne & Wear and is the regional capital of the North East of England and seventh largest city in the country.
Newcastle is a major transport hub on the UK rail network with direct access to all major centres of population. The east coast mainline has a travel time of 2 hours and 50 minutes to London and less than 1 hour 30 minutes to Edinburgh.
Newcastle International Airport is the North East’s major airport and offers regular scheduled services to many major UK and international destinations and is within 9 miles.
Balliol Business Park is located at Longbenton, which is 4 miles to the north of Newcastle upon Tyne city centre adjacent to the A188 Benton Lane, which is approximately 2 miles equal distance between the A1 and the A19, both key road networks that provide access north / south in the region and onto the national motorway networks.
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW
London
EnglandWales
Scotland
Liverpool
Manchester
Leeds
Edinburgh
Carlisle
Glasgow
BristolCardiff
Birmingham
Nottingham
SunderlandStockton-on-Tees
Newcastle upon Tyne
UnitOne
2Heaton
Longbenton
Jesmond
Wallsend
Gosforth
Town Moor
Newcastle UnitedGolf Course
Rising SunCountry Park
NewcastleRacecourse
Byker
GreatNorth Road
A167
A189
A696
B6918
A186
A186
A189
A1058
A1058A191
A191
A188
A191
NewcastleInternationalAirport
NewcastleUpon Tyne
Four LaneEnds
NewcastleUpon Tyne
A1
A1North
A1
A19 North
A19 toTyne Tunnel
& South
A19Quorum
BalliolBusiness
ParkA188
A188
Gateshead
Cobalt
Tyne and Wear Metro
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW
Vocare
Leica Biosystems
Communisis
Ringtons
Molekula Ltd
Activ Technology
Laing O’Rouke
Greggs Plc
Greggs Plc
Greggs Plc
Quorum Business Park
Country Style Foods
To A1(M) and A19 Junction
To Newcastle City Centre
A188
A188
Gosforth Business Park
3
UnitOne
For illustrative purposes only
Balliol Business Park is a well-established industrial and office park with a number of well specified buildings throughout. The estate is predominately industrial throughout with office buildings towards the entrance to the estate.
Occupiers on Balliol include Greggs, Ringtons, Communisis, Leica, Molekula Ltd, Vocare and Laing O’Rourke.
Balliol Business Park is served by numerous public transport modes. There is a dedicated bus service which runs between the business park and Four Lane Ends metro
station (within 1 mile). Four Lane Ends metro station links to Newcastle Central Station, Newcastle International Airport and access to the wider National Rail Network.
Quorum Business Park is situated on the opposite side of Benton Lane and comprises a Grade A office park built in 2008 extending to almost 1 million square feet with blue chip occupiers such as Balfour Beatty, Convergys, Sitel, British Engines, Home Group and Tesco Bank.
UnitOne
SITUATION
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 4
DESCRIPTION
The warehouse has a solid concrete floor and an eaves height of 5.35m.
The tenant has installed a number of mezzanine levels, providing storage areas which amount to a further 2,742 ft2 of space.
Externally the property has c. 54 car parking spaces at its north elevation and a concrete yard to the east, secured by a steel palisade fence. The yard is accessed from both the car park and the access road from within the business park.
The subject property comprises a modern, detached industrial unit of steel portal frame construction with cavity brick, blockwork and profile metal sheet clad elevations beneath a pitched profile sheet roof. The office elevation comprises a mixture of brickwork, pre-fabricated metal cladding and aluminium powder coated glazing.
Internally the building benefits from office accommodation to the front elevation set over two floors. There is a double height reception/entrance area, leading to a mixture of cellular and open plan office space, all to a modern specification. The remainder of the building is warehouse, providing production area, distribution and storage. The warehouse has two up and over shutter doors to its eastern elevation providing access to the external yard.
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 5
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following Gross Internal Area:
M2 FT2
Ground Floor Warehouse 2,994.39 32,231
Ground Floor Offices 351.96 3,788
First Floor Offices 391.62 4,215
TOTAL 3,737.97 40,234
FBs
Burnbank House
El Sub Sta
Footbridges
0m 25m 50m 75m
Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250
ACCOMMODATION SITE
The property occupies a regular shaped site of approximately 0.965 ha (2.384 acres) with a site coverage of c. 36%.
UnitOne
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 6
The property is held long leasehold for a term of 150 years from 30th July 1997 at a rent of a peppercorn. Therefore providing an unexpired term of c. 130.5 years.
The property is fully let to Royal Mail Group Limited (Company No: 04138203) sharing with their group company, Romec Enterprises Limited, on a 5 year lease from 1st December 2016, expiring on the 30th November 2021, at a passing rent of £213,000 per annum. Romec Enterprises Limited are a wholly owned Royal Mail Group Company. There is a tenant only break option at the third anniversary of the term subject to six months written notice. The tenant will benefit from four months rent free if they do not serve the break option.
The lease is drafted on full repairing and insuring terms subject to a Schedule of Condition dated 13 August 2002. The lease is also outside of the Landlord and Tenant Act 1954.
The current rack rent of £213,000 per annum, equates to £5.29/ft2.
TENURE
TENANCY
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 7
Royal Mail Group Limited (Company No. 04138203)
Royal Mail Group Limited is the principal trading entity of Royal Mail Plc, a postal service company in the United Kingdom, originally established in 1516. The Royal Mail Group Ltd operated under Royal Mail for letters and Parcelforce Worldwide for parcels. General Logistics Systems is a Dutch, British owned logistics company based in Amsterdam, operating through 42 European countries and is a subsidiary of Royal Mail.
Up until 2015, Royal Mail has been a public service, operating as a government department. Following the Postal Services Act 2011, the majority of the shares in Royal Mail were floated on the London Stock Exchange in 2013. The UK Government initially retained a 30% stake in Royal Mail, however it sold its remaining shares in 2015.
Romec operate from the subject property and were formed in 1989 and stands for Royal Mail Engineering & Construction. It was established to deliver facilities maintenance services to the business and as of 2016 is wholly owned by Royal Mail. As well as facilities management, Romec through ‘Serious Engineering’ also handle the manufacturing of a wide range of sheet metal and fabricated equipment including racking frames, trolleys, fabricated support frames, tables and enclosures.
Romec also supplies various other industries including; food automation, defence, marine, oil & gas, chemical, amongst others.
Royal Mail Group Limited represents a strong covenant with a Dun & Bradstreet rating of ‘5A1’.
The last three years of accounts are as follows:
Company Year EndTurnover
(£)Pre-Tax Profit
(£)Shareholder’s Funds (£)
Royal Mail Group Limited
27/03/2016 7,675,000,000 99,000,000 4,093,000,000
29/03/2015 7,772,000,000 415,000,000 3,667,000,000
30/03/2014 7,782,000,000 1,519,000,000 2,132,000,000
Company Year End
COVENANT STATUS
UnitOne BALLIOL BUSINESS PARK, LONGBENTON, NEWCASTLE UPON TYNE NE12 8EW 8
The property is not elected for VAT therefore VAT will not be charged on the purchase price.
The unit has been assessed with a rating of C (68). Details can be provided on request.
Misrep. Notice
These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. March 2017.
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CONTACTDouglas Cranstone: [email protected]
t: 0191 594 5023
m: 07867 001 380
Dickon Woode: [email protected]
t: 0191 594 5036
m: 07966 023 924
Adam Greenwoode: [email protected]
t: 0191 594 5000
m: 07776 858 536
Charles Hobarte: [email protected]
t: 0207 861 1212
m: 07825 608 962
Knight Frank LLP, St Ann’s Quay, 124 Quayside, Newcastle upon Tyne NE1 3BD
PROPOSALWe are instructed to seek offers in excess of £2,426,000 (Two Million, Four Hundred and Twenty Six Thousand Pounds) for our client’s interest. A purchase at this price reflects a net initial yield of 8.25% assuming purchasers’ costs of 6.37%. A purchase at this level equates to a capital value of £60.30/ft2.
VAT EPC