CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QRTelford is the largest town in the county of...

CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR

PRIVATECLIENT

LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS

EXECUTIVE SUMMARY

• Located on the well-established Halesfield Industrial Estate• Excellent access to the M54 and the M6 motorways• Self-contained detached headquarters warehouse facility

comprising approximately 93,580 sq ft (GIA) • Maximum clear height of 7.82 metres• Freehold• Single let to the strong covenant of CustomPack Ltd.

• Tenant has invested significantly in fit out and machinery

• Long unexpired lease term of 9.75 years• Rental income of £315,164.68 per annum

equating to £3.37 psf• Upwards only annual uncapped RPI

linked increases

PROPOSAL

Offers are sought in the region of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.40% after allowing for purchaser’s costs of 6.54% and a low capital value of £42.74 psf overall.Running yield profile based on OBR RPI forecasts (no purchaser’s costs):2018 – 8.15% 2020 – 8.68%2019 – 8.41% 2021 – 8.95%

CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS

BY ROAD

Birmingham 40 mins

Manchester 100 mins

Liverpool 100 mins

London 180 mins

BY TRAIN

Wolverhampton 18 mins

Birmingham New Street 36 mins

Manchester Piccadilly 93 mins

London Euston 130 mins

AIRPORT DRIVE TIMES

Birmingham International 54 mins

East Midlands International 70 mins

Manchester Airport 88 mins

London Heathrow 150 mins

TELFORD TRAVEL TIMES


LOCATION Telford is the largest town in the county of Shropshire with an estimated population of close to 170,000. It is located in the West Midlands, approximately 21 km (13.0 miles) east of Shrewsbury and 43 km (30.0 miles) north west of Birmingham.

The town benefits from excellent communications with the M54 linking the town to the M6 (Junction 10a) 27 km (17.0 miles) to the east. The A5 runs east-west through the town.

The town is located on the Arriva Wales train line which provides regular services into Birmingham and offers direct connections to London Euston. Telford has an International Rail Freight Park which is within 10 minutes of the subject property, providing access to the regional and national rail networks.

TelfordTelford

BirminghamBirmingham

WolverhamptonWolverhampton

LeicesterLeicester

NottinghamNottingham

DerbyDerby

Stoke-on TrentStoke-on TrentNewcastle-under-LymeNewcastle-under Lyme

NewportNewport

KidderminsterKidderminster

WalsallWalsall

DudleyDudley

CoventryCoventry

NuneatonNuneaton

SuttonColdfield

SuttonColdfield

LeamingtonSpa

LeamingtonSpa

RugbyRugby

BirminghamInternationalAirport

East MidlandsAirport

CoventryAirport

A41

A34

A38

A42

A41

A53

A53

A518

A518

A442

A442

A442

A454

A458

A456

A449

A449

A5

A5

M1

M1

M1

M6

M42

M42

M45

M69

M69

M40

M54

M6

M6

M6 Toll

M6

M5

A442

BR

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KTO

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HALESFIELD 10

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LESFIE

LD 9

SUTTON HILL

BRIDG

NO

RTH

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HALESFIELD 13 HALESFIELD 9H

ALES

FIELD

15

HA

LESFIELD 14

HA

LESF

IELD

14

SUTTON WAY

MAD BROOK

Cedo

LibraSystems

PrimeFacility

Services

CML

Proto Labs Ltd

HexagonManufacturing

Intelligence

RetailFurniture

Edgmond Foods

Nomique

CustomPackCustomPack

WestPennineTrucks

© Crown Copyright, ES 100004106. For identification purposes only.


Tank

HALESFIELD 14

BR

OC

KT

ON

WA

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Halesfield

El Sub Sta

El

Sub Sta

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2017. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1250

SITUATIONThe property is situated on Halesfield Industrial Estate, one of three prominent industrial estates within the town. The building is located at the southerly end of Halesfield 14 which is situated to the south of the Estate.

Halesfield Industrial Estate is located approximately 5 km (3.1 miles) south of the town centre with nearby tenants including JRI Technologies, MAHLE, Precision Colour Printing, Brintons, Link 51 and Grange Fencing.

The estate is accessed directly off Brockton Way (A442) which links to the M54 to the north (Junctions 4 and 5).

SITEThe property occupies a site of 3.43 acres (1.386 ha).

DESCRIPTIONThe property comprises a 1980s detached 3-bay industrial warehouse of steel portal frame construction. The exterior walls are a combination of brickwork and glazing surmounted by a profile steel sheet covered roof. The unit benefits from three loading doors (one accessing the secure goods yard to the north and two fronting the secure goods yard to the south). There is a single storey flat roofed office unit running along the length of the front of the unit fronting the car park and Halesfield 14.

The warehouse benefits from the following specification:• 7.82m maximum clear height• 3 level loading doors• Sodium lighting• Gas and electric heating blowers

The offices benefit from the following specification:• Air conditioning• Suspended ceiling• Cat 2 Lighting• Perimeter trunking• Male and Female WCs• Dedicated staff canteen

The tenant is actively investing in the unit and has spent over £115,000 recently refurbishing the office, labs and reception. They are currently upgrading their IT system and are purchasing new manufacturing technology.

Halesfield 14

ACCOMMODATIONWe have been provided with the following areas by the vendor and understand them to be as follows:

Floor Description Area (sq ft) Area (sq m)

Ground Warehouse 84,640 7,863.3

Ground Office 9,111 846.4

Total 93,751 8,709.8

TENUREFreehold

TENANCYThe property is let to CustomPack Ltd (formerly Chequer Foods Ltd) with Pelican Rouge Coffee Solutions Group Ltd as Guarantor. The term commenced on 17 August 2005 and was regeared in 2012 with expiry on 16 August 2027 providing an unexpired lease term of 9.75 term certain. There is a schedule of condition attached to the lease.

The current rent passing is £315,164.68 p.a.

The lease is subject to upwards only annual RPI linked rent reviews which are uncapped.

Q3 2018

3.60%

3.50%

3.40%

3.30%

3.20%

3.10%

3.00%

2.90%Q3 2019 Q3 2020 Q3 2021

COVENANTCUSTOMPACK LTDCustomPack, formerly known as Chequer Foods, was established in 1962 and specialises in the production of individual portion products producing a wide range of own brand condiments and in cup beverages. CustomPack is part of the Pelican Rouge Group, one of Europe’s largest coffee solutions organisations. The company’s home is Telford and it employs over 160 people.

CustomPack Ltd reported the following results over the last three years:

31/03/2016 29/03/2015 30/03/2014

Turnover £19,721,000 £21,279,000 £20,908,000

Pre-Tax Profit

£590,000 £536,000 £897,000

Total Net Worth

£6,733,000 £6,172,000 £6,069,000

Clients of CustomPack Ltd include Nestle, Ministry of Defence, Brakes, HM Prison Services, Supernoodles, KFC and Kenco.

Source: OBR


PRIVATECLIENT

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 11.17

EPCThe property has been rated grade C(61). The EPC is available upon request.

www.allsop.co.uk

For further information or to make arrangements for viewing please contact:

PRIVATE CLIENT TEAM

VATThe property will be subject to VAT although we anticipate the sale will be treated as a Transfer of Going Concern.

DATAROOMFor Access to the Allsop dataroom please use the following link:

https://datarooms.allsop.co.uk/register/telford

PROPOSALOffers are sought in the region of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.40% after allowing for purchaser’s costs of 6.54% and a low capital value of £42.74 psf overall.Running yield profile based on OBR RPI forecasts (no purchaser’s costs):2018 – 8.15% 2020 – 8.68%2019 – 8.41% 2021 – 8.95%

Jonathan Butcher020 7543 [email protected]

Alex Butler020 7543 [email protected]

CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QRTelford is the largest town in the county of...

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