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KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE
DROITWICH SPA WR9 0QH
LONG INCOME HQ INDUSTRIAL INVESTMENT
On the instructions of Telereal Trillium
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
Hygiene Group Plc
HAMPTON LOVETT INDUSTRIAL ESTATE
Site outline for identification purposes only.
DESPATCH DISTRIBUTION
DOJO TRAINING CENTRE
STONEBRIDGE CROSS BUSINESS PARK
KIDDER
MINSTE
R ROAD A442
TOWARDS M5 J5
INVESTMENT CONSIDERATIONS Purpose built headquarter manufacturing facility
Well located 3 miles from Junction 5 of the M5
Situated on the established Hampton Lovett Industrial Estate
Let to the 5A1 covenant of Koito Europe Ltd
Recently re-geared 15 year lease expiring 25 December 2033 with a tenant break in year 10
10.2 years term certain
Virtual freehold
Passing rent of £824,500 per annum reflecting a low re-based rent of £4.66 psf
High site power capacity of 4,800 kVA
Total area of 176,837 sq ft
Koito Europe Ltd have heavily invested in the property to meet their operational requirements
Offers sought in excess of £11,890,000 (Eleven Million Eight Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.5% assuming usual purchaser’s costs and a low capital value of £67 psf.
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
LONG INCOME HQ INDUSTRIAL INVESTMENT
LOCATIONDroitwich Spa is an attractive town in the county of Worcestershire approxi-mately 23 miles south west of Birmingham and 10 miles north of Worcester.
Droitwich Spa benefits from excellent road communications with the M5 Junction 5 located 2 miles to the north east of the town centre and provides access to Birmingham to the north, Bristol and Exeter to the south. The M5 intersects with the M42, 8 miles to the north in turn linking with the M40 and M6, 25 miles to the north.
Droitwich Spa Rail Station provides regular services to Worcester, Birmingham New Street and London Euston with fastest journey times of 8 minutes, 36 minutes and 2 hours 10 minutes.
Avonmouth Dock and Ellesmere Port are respectively within 1 hour 10 minutes and 2.5 hour drive times.
SITUATIONThe property benefits from a strategic logistical position situated within the Hampton Lovett Industrial Estate on Kingswood Road.
The estate is accessed from the A442 Droitwich to Kidderminster Road which links with the A38 to the south providing easy access to the M5, Junction 5 approximately 2 miles to the east.
Occupiers on Hampton Lovett Industrial Estate include Amazon, opposite the property, Big Bear Plastic Products, Vax, Muller, Adstone Construction and Flood Angel.
BirminghamInternational
Airport
MidlandsAirport
CoventryAirport
LutonAirport
M1M6
M5
M5
M6
M1
A1(M)
M6 TOLL
A1(M)
M40
M42
M42
M50
M54
M69
M45
COVENTRY
LEICESTER
GLOUCESTER
NORTHAMPTON
NOTTINGHAMDERBY
Peterborough
Bedford
MiltonKeynes
LUTON
WORCESTER
Hereford
Shrewsbury
Stoke-on-Trent
Kidderminster
Walsall
Cannock
Burton upon Trent
SuttonColdfield
West Bromwich
Warwick
Stratford-upon-Avon
Newcastle-under-Lyme
Telford
BIRMINGHAM
DROITWICH SPA
A38
A38
ROM
AN
WA
Y
M5
M5
J5
DOV ERDALE LANE
POINTON WAY
A442 KID
DERM
INSER R
OA
D
CR
UTC
H L
AN
E
BERRY HILLINDUSTRIAL
ESTATE
STONEBRIDGE CROSSBUSINESS PARK
KINGSWOOD ROAD
WASSAGEWAY SOUTH
HAMPTON LOVETT INDUSTRIAL ESTATE
DROITWICH SPA
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
LONG INCOME HQ INDUSTRIAL INVESTMENT
A38
A38
ROM
AN
WA
Y
M5
M5
J5
DOV ERDALE LANE
POINTON WAY
A442 KID
DERM
INSER R
OA
D
CR
UTC
H L
AN
E
BERRY HILLINDUSTRIAL
ESTATE
STONEBRIDGE CROSSBUSINESS PARK
KINGSWOOD ROAD
WASSAGEWAY SOUTH
HAMPTON LOVETT INDUSTRIAL ESTATE
DROITWICH SPA
A1(M)
A1(M)
M25
M4
M4
M2
M5
M5
A34
A421
A429
A346
A4 6
A14
M50
M54
M6
M6
M6
M61
M69M42
M25
M20
M1
M1
M1
M62M62
M65
M180
M11
M3
A1(M)
A1(M)
M40
17
15
11
15
M2
NISSAN CAR PLANTNISSAN CAR PLANT
CHELTENHAM AYLESBURY
MILTONKEYNES
NORTHAMPTON
BEDFORD
AVONMOUTH
EXETER
SWANSEA CARDIFF
NEWPORT
CHESTER
CREWE
SWINDON
ELLESMERE PORT
LIVERPOOL
SALISBURY
PORTSMOUTHSOUTHAMPTON
CHICHESTER
BRIGHTONAND HOVE
BRISTOL BATH
GLOUCESTER
HEREFORD
OXFORD
WORCESTER
BIRMINGHAM
WOLVERHAMPTON
LICHFIELD
COVENTRY
LEICESTER
CITY OF LONDON
STALBANS
CAMBRIDGE
ELY
PETERBOROUGH NORWICH
STOKE-ON-TRENT
SALFORD
DERBYNOTTINGHAM
SHEFFIELD
LINCOLN
LANC ASTER
CARLISLE
PRESTONBRADFORD
LEEDS
RIPON
WAKEFIELD
KINGSTON
GRIMSBY
UPON HULL
YORK
DURHAM
NEWCASTLE UPONTYNE
SUNDERLAND
WARWICK
WINCHESTER
MANCHESTER
WESTMINSTER
DOVER
FELIXSTOWE
TOYOTA CAR PLANT
BENTLEY CAR PLANT
HONDACAR PLAN
1HR
2HR
3HR
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
TENANT OPERATIONSKoito Europe operate solely from the manufacturing facility based in Droitwich employing over 700 people at the site. The manufacturing facility operates a just-in-time production 24 hours a day, six days a week. Koito have a Dojo Training facility and Despatch Department also located on Hampton Lovett Industrial Estate.
Koito Europe Limited provide rear lamp lighting and fog lighting to many vehicle manufacturers including Toyota, Honda, Nissan, Suzuki, Peugeot, Bentley, Renault and Mercedes.
We understand that current contracts are in place with Nissan’s Sunderland Plant, Toyota’s Derbyshire Plant and Suzuki’s Hungary Plant.
In 2018 alone, the tenant has invested over £1,000,000 in equipment including an additional moulding machine bringing the total to 40, replacement of two cranes and an additional injection moulding plastic pellet storage tank.
The tenant has plans to install an additional transformer to enable them to utilise the onsite power capacity of 4,800 kVA from 5 on site sub stations.
LONG INCOME HQ INDUSTRIAL INVESTMENTLONG INCOME HQ INDUSTRIAL INVESTMENT
DESCRIPTIONThe property comprises a purpose built manufacturing facility constructed in three phases between 1987 and 2000. The building is of steel portal frame construction with profile metal clad elevations. The property benefits from 6m eaves height to the majority of the warehouse with 10.6m eaves within the high bay warehouse section.
The property has been extensively fitted out to meet the operational requirements of the tenant. The unit has been configured to provide manufacturing, parts assembly and storage areas for which a high bay area is situated in the middle of the facility. The southern elevation provides two storey office and meeting room accommodation.
The tenant is continuing to invest in the site and is currently constructing a new covered dock loading bay at the southern end of the site under planning application 17-02073-FUL. Once complete this will provide an additional loading bay bringing the total to 6.
The car park provides approximately 247 spaces.
SITE AREAThe property has a site area of approximately 3.67 hectares (9.08 acres) providing a site cover of approximately 42%.
TENURE999 year long leasehold interest from 25 December 1993 at a peppercorn rent.
TENANCY The property is let to Koito Europe Limited on a reversionary 15 year lease from 25 December 2018 with a tenant break option in year 10. The passing rent of £824,500 per annum reflects £4.66 psf and is net effective rent as no rent free was granted.
For the purpose of the rent reviews the area is assumed to be 177,302 sq ft.
Issues
El Sub Sta
Chy
Silos
Tank
Trac
k
El Sub Sta
ES
S
ESS
ESS
ESS
Tk
Oakm
oore
Court
Pump House
ESS
SalterHouse
ESS
Gas Gov
Tank
0m 10m 20m 30m
Koito, Kingswood Road, Hampton Lovett Industrial Estate, Droitwich Spa WR9 0QH
Ordnance Survey © Crown Copyright 2018. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1766
© Crown Copyright, ES 100004106. For identification purposes only.
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
LONG INCOME HQ INDUSTRIAL INVESTMENT
ACCOMMODATION SCHEDULE
Unit Floor Description Area (sq ft)
Area (sq m)
Phase 1 & 2
Ground Warehouse and Production* 44,132 4,100.0
Ground Office and Ancillary 1,614 149.9
Ground Warehouse and Production 56,110 5,212.8
Ground Reception and Offices 8,217 763.4
First Offices 9,623 894.0
Sub total 119,696 11,120.1
Phase 3
Ground Warehouse Production & Offices 48,558 4,511.2
Ground Despatch Bay 3,229 300.0
First Offices 1,890 175.6
Subtotal 53,677 4,986.8
Ground External Store 3,404 316.2
Ground Gatehouse 60 5.6
Subtotal 3,464 321.8
Total 176,837 16,428.7
* Inclusive of the high bay warehouse element which totals 20,586 sqft (1,912.4 sqm)
Koito Europe Limited Company number 945580. D&B rating 5 A1In 2016, Koito Europe Limited (KEL) celebrated it’s twentieth anniversary of manufacturing. KEL are a leading supplier to the automotive industry specialising in the design and manufacture of rear lamp lighting to a number of vehicle manufacturers.
KEL is part of Koito Manufacturing Company Limited (KMC) which is a Japanese based global organisation employing over 19,000 people worldwide in the design and manufacture of all aspects of automotive lighting. KEL is KMC’s main manufacturer of rear lamps and fog lamp production in the European Market.
31/12/17 31/12/16 31/12/15
Turnover £100,152,252 £82,788,190 £78,055,733
Pre-Tax Profit £12,575,252 £7,870,917 £4,001,224
Total Net Worth £35,087,072 £21,442,506 £13,945,606
Koito Manufacturing Co. Ltd are the ultimate holding company to Koito Europe Limited and are listed on the Tokyo Stock Exchange with an approximate market capitalisation of £7.62 billion.
For the year ended March 2018, Koito Manufacturing Co. Ltd have reported a turnover of £6,075,909,461, pre-tax profits of £885,488,036 and Net Worth of £3,183,799,501, based on a conversion rate of 1 USD = 0.76 GBP.
LONG INCOME HQ INDUSTRIAL INVESTMENTLONG INCOME HQ INDUSTRIAL INVESTMENT
COVENANT INFORMATION
KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH
RECENT INVESTMENT SALES
Date Address Tenant Unexpired Term
Price NIY Purchaser
Apr-18 Worcester Six Business Park, Worcester
Spire Healthcare
20 years £9.57m 4.29% Knight Frank IM LLP
Jun-18 Big Berry, Berry Hill Industrial Estate, Droitwich
Groupo Antolin Interiors
6.73 years £16.9m 5.40% Mayfair Capital Investment Management Ltd
Jul-17 Lakeside Point, Broad Ground Road, Redditch
WEG UK Ltd 5.64 years £7.6m 6.17% Mordril Properties Ltd
Apr-17 Big Berry, Berry Hill Industrial Estate, Droitwich
Groupo Antolin Interiors
8.06 years £11m 6.20% Oxenwood Real Estate LLP/Alberta Investment Management Corporation
RECENT RENTAL TRANSACTIONS
Date Address Tenant Area (sq ft)
Rent (psf)
Term
Jan-18 Liberty 45, Pershore Lane, Worcester
Materials Solutions (A Siemens business)
46,955 £6.00 10 years
Nov-17 Unit 2 Easter Park, Worcester Road, Kidderminster
Howdens Joinery 31,700 £5.50 10 years TBO 2023
Aug-17 11 Sherwood Road, Bromsgrove
CSL Associates 27,949 £5.30 10 years
Apr-17 Suite 12 & 13 Minster Road, Kidderminster
PGS Global 20,552 £4.85 5 year term 6 months rent free TBO Nov 2022
Feb-17 704 Tolladine Road, Worcester
Electric Center 3,532 £6.37 10 years 3 months rent free
LONG INCOME HQ INDUSTRIAL INVESTMENT
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 09.18
Dale Johnstone020 7543 6796dale.johnstone@allsop.co.uk
For further information or to make arrangements for viewing please contact:
Lottie Hayward020 7543 6750lottie.hayward@allsop.co.uk www.allsop.co.uk
VATWe understand the property is elected for VAT. It is intended that the sale will be treated a Transfer of a Going Concern (TOGC).
EPCThe property has an EPC rating of D 78.
DATAROOMFurther information is provided in the dataroom. For access please register on the following website:
https://datarooms.allsop.co.uk/register/KoitoDroitwich
PROPOSALOffers sought in excess of £11,890,000 (Eleven Million Eight Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.5% assuming usual purchaser’s costs and a low capital value of £67 psf.
LONG INCOME HQ INDUSTRIAL INVESTMENT
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