PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
PIONEERPioneer Business Park, Ellesmere Port,CH65 1AQ
STRATEGICALLY LOCATED MODERN CROSS DOCKED DISTRIBUTION INVESTMENT OPPORTUNITY
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
INVESTMENT SUMMARY• Excellentopportunitytoacquireahighquality,
moderncrossdockeddistributionwarehouse
• Pioneer210benefitsfromexcellentconnectivity,locatedimmediatelyadjacenttoJunction7and8oftheM53
• Moderndistributionwarehousemeasuring211,921sqft
• Siteareaof9.79acres,whichrepresentsasitecoverof49%
• LettoNovarED&SLtdonanew10yearlease
• CommercialDelphiScoreof100,representingaVeryLowRiskcompany
• Passingrentof£1,112,585.25perannumreflecting£5.25persqft
• Freehold
Offerssoughtinexcessof£16,680,000 (Sixteen Million, Six Hundred and Eighty Thousand Pounds)whichreflectsanattractiveNet Initial Yield of 6.25%assumingpurchaser’scostsof6.74%.
Low Capital Value of £78 psf
PIONEER
M8
M74
M62
M6
M5
M1
M40
M4
M3
M25
A1(M)
Hull
Liverpool
Chester
Mancester
Preston
Port ofLiverpool
LiverpoolJohn Lennon
Airport
ManchesterAirport
Aberdeen
Newcastle
Durham
Sunderland
Inverness
London
Birmingham
LOCATION AND COMMUNICATIONSEllesmere Port is an established commercial location situated approximately 13 miles south of Liverpool, 7 miles north of Chester and 39 miles south west of Manchester. The town enjoys an excellent industrial heritage with a workforce of 560,000 people located within a 30-minute drivetime and 20% of local jobs in the manufacturing sector – well above the national average.
Theareabenefitsfromexcellentroadcommunications,situatedadjacenttotheM53providingaccesstoBirkenheadandLiverpoolviatheMerseyTunneltotheNorthandtheM56tothesouth.TheM56inturnlinkstotheM6,approximately20milestotheeast.Furthermore,theA55providesquickandeasyaccesstoNorthWales,AngleseyandthePortofHolyhead.
HighspeeddirectVirginPendolinotrainstravelfromLiverpool,ChesterandRuncorntoLondonontheWestCoastMainline,withajourneytimeofaroundtwohours.AcomprehensivelocalrailsystemalsolinksEllesmerePorttoLiverpool,WarringtonandManchester.EllesmerePortisfortunateinbeingclosetobothManchesterAirport-thebusiestairportintheUKoutsidetheLondonregion-andLiverpoolJohnLennonAirport.Thereare30-minutedrivetimestobothairports,whichlinktheregiontotherestoftheworld.
ELLESMERE PORT HAS ITS OWN COMMERCIAL PORT FACILITIES LINKING TO THE MANCHESTER SHIP CANAL AND THE RIVER MERSEY.
Ellesmere Port
Great Sutton
Whitby
Whitbyheath
South WirralLedsham
Capenhurst
Dunkirk
Little Stanny
Stoak
Thornton-le-Moors
Stanlow
MountManisty
ChilderThornton
M53
M53
M53
M53
M53
M56M56
M56
M53
A550
A550
A5117
A5117
A5012
A5012
A5012
A5117
A41
A41
A41
J7
J8
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
PIONEER
PIONEER
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
ROADSSITUATIONThepropertyformspartoftheestablishedPioneerBusinessPark,locatedadjacenttoJunction7and8oftheM53andisservedbyamulti-modaltransportnetworkofroad,railandsea.
Majoroccupiersintheimmediatevicinityinclude,Regatta,Vauxhallcarplant,Prowell,Scania,DBHServicedBusinessCentre,SPLInternationalandEvansEasySpaceamongstothers.ThesubjectpropertyhasanexcellentfrontageontotheM53andalsoPooleHallRoad,whichinturnlinksdirectlywithJunction7oftheM53motorwayandJunction8viaNorthRoad.
Source: Freight Journey Planner
Destination Distance HGV drivetime
M53/M56 5miles 5mins
Chester 11miles 26mins
M6/M56intersection 22miles 36mins
Liverpool 20miles 45minutes
Manchester 39miles 1hr14mins
Birmingham 86miles 2hrs56mins
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
DESCRIPTIONThepropertycomprisesamoderncrossdockedhighbaydistributionfacilitycompletedin2007andofsteelportalframeconstructionwithinsulatedprofilecladdingandametalroof.Theunithasrecentlybeencomprehensivelyrefurbishedandcomprisesthefollowingspecification:
• Steelportalframeconstruction
• 10%rooflights
• Maximumeavesheightof15meters
• 18dockloadingdoors
• 4levelloadingdoors
• Newconcretefloor-50KN/m2loading
• LEDlighting
• Gasheating
Warehouse
• GatehouseSecurity
• Securesitewithperimeterfencing
• 2Largeconcreteserviceyardsupto55metersindepth
• Substantialcirculationareas
• Separatedelineatedcarparkingareaapprox.110spaces
• 46lorryspaces
• 2accesspoints
External
• Doubleglazing
• Passengerlift
• Fullaccessraisedfloors
• Suspendedceilings
• LEDlights
• Gas-firedcentralheating
Thereisatwo-storeyofficebuilding:
Office
55metres
50m
108m
176m
s
ACCOMMODATIONThepropertyhasbeenmeasuredonagrossinternalbasis,inaccordancewiththeRICSCodeofMeasuringPractice(6thEdition)andextendstoapproximately211,921sqft(19,688sqm).
Accommodation Area (sq ft) Area (sq m)
Warehouse 206,977 19,229
Groundflooroffice 2,722 253
Firstflooroffice 2,222 206
Total 211,921 19,688
SiteThepropertyoccupiesasiteareaof3.964hectares(9.79acres),whichrepresentsalowsitecoverof49%.
TenureFreehold.
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
TENANCY
COVENANT INFORMATION
ThepropertyislettoNovarED&SLtdonanew10-yearleaseincorporatingabreakclauseinthe6thyear.Thepassingrentis£1,112,585.25perannum,reflecting£5.25persqft.
NovarED&SLtdisownedbyHoneywellInternationalInc,whichisaglobalFortune100technologyconglomeratecompanythatproducescommercialandconsumerelectricalandelectronicproducts,engineeringservicesandaerospacesystems.
Novar ED&S Ltd accounts as follows:
Ordnance Survey © Crown Copyright 2019. All Rights Reserved.Licence number 100022432Plotted Scale - 1:2750. Paper Size - A4
31/12/2017(GBP £000’s)
31/12/2016(GBP £000’s)
31/12/2015 GBP £000’s)
Turnover 135,212 175,125 131,475
Pre-Tax Profits 8,827 59,437 17,170
Net Worth 113,451 56,924 14,467
Furtherinformationisavailableatwww.honeywell.com
NOVAR ED&S LTD HAVE A COMMERCIAL DELPHI SCORE OF 100, REPRESENTING VERY LOW RISK.
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
OCCUPATIONAL MARKETTheNorthWestindustrialmarketiswellpositionedwhencomparedwithotherregionsandsectorsduetocontinuedinvestmentininfrastructure.KeyexamplesofthisincludetheopeningofPeelPorts’£400milliondeepwatercontainerterminalLiverpool2in2016,the£600millionNewMerseyGatewayBridgein2017,thecompletionofthe£190millionA556trunkroadbetweentheM56andM6motorwaysin2017andcontinuedexpansion/developmentofManchesterAirportasamajorglobalhub.
ThedistributionmarketintheNorthWestisexperiencingconsistentandsignificantlevelsofdemandforgoodquality‘bigbox’accommodationwithanaveragetakeupof4.3millionsqftperannum,makingitthemostactiveregionoutsidetheSouthEastoverthelast24months.Unitsabove200,000sqfthaveseenconsistentstrongdemandwithover2.1millionsqftoftransactionsinthelast12months,representingover50%ofoverall‘bigbox’take-up.ThecurrentshortageofdeliverablesitesacrosstheNorthWesthasresultedinlimitedlarge-scalebuildingsupplyacrosstheregion.ThesimilarlackofGradeA/Bsupply,togetherwithconsistentoccupierdemandintheNorthWest,hasresultedinreducedvoidperiodsandstrongheadlinerentalsbeingachieved.Assuch,rentalgrowthintheNorthWesthasout-performedmostpartsoftheUKandremainsakeyperformancedriverwithNorthWestindustrialrentalgrowthforecasttobeover2.20%perannum(source:CBRE).
Key recent lettings in the North West are as follows:
Date Property Tenant Area Sq Ft Rent (£ psf) Comments
Oct–2019 OmegaSouth,Warrington DeliveryGroup 137,000 £6.50 NewBuild
Nov–2018 OmegaSouth,Warrington RoyalMail 346,150 £6.50 NewBuild
Oct–2018 LogisticsNorth,Bolton MBDA 175,000 £6.75 NewBuild
Oct–2018 Link95,Heywood McCormick 95,000 £6.35 NewBuild
PRIME DISTRIBUTION RENTS ARE NOW ESTABLISHED IN
EXCESS OF £6.50 PER SQ FT
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
INVESTMENT MARKETTheUKlogisticsinvestmentmarkethadaverystrongyearin2018,with£10.6bntransacted-anincreaseofmorethan30%onlastyear’sinvestmentvolume.
SalesvolumesintheNorthWestarecurrentlywell-aheadofthe10-yearaverageasinvestordemandfortheregioncontinuestosurge.Thereremainsasignificantweightofcapitalchasingtheindustrialsector,withinvestorsbuoyedbystrongoccupationalfundamentalsincludingrecordlevelsoftake-up,
historicallylowavailabilityrateandaconstraineddevelopmentpipeline.
Currentinvestordemandisbeingdrivenbysectorsofferingstrongoccupationalgrowthandpotentialtoenhanceincomereturns.Thecontinuedstructuralshiftprovidedbythe‘evolution’ofonlineretailing,theconsolidationofretailers,andtheautomotivepushonoccupationaldemand,allsetagainstabackdropofhistoricallylowavailabilityandlackofalternativeinvestmentopportunities,hasresultedin
theindustrialandlogisticsmarketattractingstrongattentionfromawiderangeofinvestors.
Themarketfundamentalsoflimitedsupply,coupledwiththedemographicsandmacrotrendsinplay(increasingurbanisation,growingonlineretailsector,risingmanufacturerorders)willensurestrongperformancefromthelogisticssectorovertheshorttomediumterm.
Date Property Tenant / AWULT Size Sq Ft Price NIY Capital Value (£ psf)
Aug-2019 RoyalMailUnit,StakehillIE,Middleton RoyalMail/10years 104,345 £9,115,000 5.15% £87
April–2019 JohnLewis,Brackmills,Northampton JohnLewis/5years 335,668 £26,233,000 5.90% £78
Jan–2019 Link95,Heywood McCormick/5.4years 95,980 £10,385,000 5.50% £108
Nov–2018 GAPetFoods,Chorley GAPetFoods/10years 185,191 £20,540,000 4.64% £111
Jul-2018 Antolin,Droitwich Antolin/6.5years 203,442 £16,900,000 5.44% £83
Jan-2018 AO.com,Crewe AO.com/8.8years 386,750 £35,188,000 5.25% £91
There have been a number of notable warehouse investment transactions in the region, details of which are summarised below:
PIONEER Pioneer Business Park, Ellesmere Port, CH65 1AQ
Strategically located modern cross docked distribution investment opportunity
DISCLAIMER:CBREforthemselvesandforthevendorsorlessorsofthepropertywhoseagentstheyaregivenoticethat:(i)theseparticularsaregivenwithoutresponsibilityofCBREorthevendorsorlessorsasageneraloutlineonlyfortheguidanceofprospectivepurchasersortenants,anddonotconstitutethewholeoranypartofanofferorcontract;(ii)CBREcannotguaranteetheaccuracyofanydescriptions,dimensions,referencestocondition,necessarypermissionsforuseandoccupationandotherdetailscontainedhereinandanyprospectivepurchaserortenantshouldnotrelyonthemasstatementsorrepresentationsoffactbutmustsatisfythemselvesbyinspectionorotherwiseastotheaccuracyofeachofthem;(iii)noemployeeofCBRE(andtheirjointagentswhereapplicable)hasanyauthoritytomakeorgiveanyrepresentationorwarrantyorenterintoanycontractwhatsoeverinrelationtotheproperty;(iv)VATmaybepayableonpurchasepriceand/orrent,allfiguresarequotedexclusiveofVAT,intendingpurchasersorlesseesmustsatisfythemselvesastotheapplicableVATposition,ifnecessarybytakingappropriateprofessionaladvice;(v)exceptinrespectofdeathorpersonalinjurycausedbythenegligenceofCBRE,itsemployeesorservants,CBREwillnotbeliable,whetherinnegligenceorotherwisehowsoever,foranylossarisingfromtheuseoftheseparticularssavetotheextentthatanystatementmadeintheseparticularshasbeenmadefraudulently.DesignedandproducedbyCBRE.Oct2019
FURTHER INFORMATION PROPOSALPlanningWeunderstandthepropertyhasplanningforB8use.Prospectivepurchasersareadvisedtoundertaketheirowninvestigationsinthisregard.EPCThepropertyhasanEPCratingofB-50.Acertificateisavailableonrequest. VATWeunderstandthatthepropertyhasbeenelectedforVAT.AssuchitisanticipatedthatthesalewillbetreatedasaTransferofGoingConcern(TOGC).
Dataroom AccessAdditionalinformationisavailableviaamarketingdataroom.FurtherdetailsareavailableuponrequestfromCBRE.
Weareinstructedtoseekoffersinexcessof£16,680,000 (Sixteen Million, Six Hundred and Eighty Thousand Pounds).
ApurchaseatthislevelreflectsanattractiveNet Initial Yield of 6.25%afterallowingforpurchaser’scostsof6.74%,subjecttocontractandexclusiveofVAT.
This reflects a low capital value of £78 psf.
CONTACTForfurtherinformationortoarrangeaviewingpleasecontact:
Robert WoodsT:01612335668M:07826278439E: [email protected]
Frankie IsherwoodT: 01612335428M:07464491654E: [email protected]
Jack FarmerT: 02071828035M:07956094081E:[email protected]
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