Annick Industrial Estate€¦ · annick industrial estate glasgow 3 investment summary • well located, between m8 and m74 motorways, close to edinburgh road and shettleston road

SONOVA HOUSEW A R R I N G T O N

Sandilands Street and Eastmuir Street Glasgow G32 0HS

Well Located Feuhold Industrial Estate Investment

ANNICK INDUSTRIAL ESTATE

ANNICK INDUSTRIAL ESTATEG L A S G O W

2

A89

NEW POLICE HQ

EMIRATES STADIUM

SIR CHRIS HOY VELODROME

FORGE SHOPPING CENTRE

RIVER CLYDE

CITY CENTREKINGSTON BRIDGE

FORGE RETAIL PARK

TESCO

SHETTLESTON STATIONSHETTL

ANNICK INDUSTRIAL ESTATE

M74 M8

M80


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INVESTMENT SUMMARY

• WELL LOCATED, BETWEEN M8 AND M74 MOTORWAYS, CLOSE TO EDINBURGH ROAD AND SHETTLESTON ROAD

• MULTI-LET INDUSTRIAL INVESTMENT COMPRISING 55 UNITS EXTENDING TO A TOTAL OF 107,523 SQ FT (9,989.2 SQ M)

• TOTAL CURRENT INCOME OF £509,818 PER ANNUM AND ERV OF £555,000 PER ANNUM

• LOW RENTAL BASE OF ONLY £4.80 PER SQ FT

• OPPORTUNITY FOR ASSET MANAGEMENT AND LONG TERM DEVELOPMENT POTENTIAL

• OFFERS IN THE REGION OF £5,320,000 SUBJECT TO FORMAL EXCHANGE OF MISSIVES

• ATTRACTIVE NET INITIAL YIELD OF 9%, AND REVERSIONARY YIELD OF 9.83%

• LOW CAPITAL COST OF £49.47 PER SQ FT


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LOCATION

Glasgow is the third largest city in the UK, with a population of approximately 612,000 and a catchment of 1.5m persons. The City enjoys a diverse local economy contributing an estimated £14 billion to Scotland, and has the largest office centre and retail centre outside London. The City also enjoys a substantial industrial and distribution base, one of the largest in the UK, with a global reputation for engineering in particular with major companies such as Rolls Royce, Jacobs Engineering, BAE Systems, Weir Group, Doosan Babcock, Scottish Power, SSE and Thales.

Annick Industrial Estate lies within the Shettleston district of Glasgow, approximately 3.5 miles east of the city centre. It is

2 miles south of Junction 11 of the M8 motorway and 4 miles west of Junction 19 of the M74 motorway, the principal route south to England. The property is also located close to the Clyde Gateway, a major regeneration project that aims to increase the surrounding population by 20,000 persons, creating homes and generating 4 million square feet of business space by 2027.

As well as having the benefit of good road links, Shettleston rail station is located 300 metres north of the property, with regular services from Queen Street rail station. Shettleston also lies close to the East End Regeneration Route, a new road providing a direct link between the M74 at Dalmarnock and the

M8/M80 at Provan Road, which will significantly improve access to the eastern side of the city.

Glasgow Airport, the busiest passenger and freight airport in Scotland, is 13 miles west and readily accessible via the M74 motorway. It serves a wide variety of national and international destinations, in particular throughout Europe, the United States and Canada.

THE PROPERTY

THE PROPERTY


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SITUATION

The property is located in the Shettleston district, to the east of the city centre. The estate is situated in a predominantly residential area, with new build housing immediately to the east. There is also a Tesco supermarket located immediately to the west of the property. Accordingly potential alternative uses underpin the value of the property. The estate is favoured by trade type occupiers owing to its prominence and mix of unit sizes.

DESCRIPTION

The property was originally developed in 1986 and comprises a well-laid out, multi-let estate extending to a total of 107,523 sq ft (9,989.2 sq m ) across a total of 55 terraced units. These are organised as four double-fronted terraces, with Sandilands Street and Eastmuir Street forming the inner circulation areas on the estate.

The individual units are steel framed with brick in-fill walls under profile steel roofs and cladding, together with ancillary yard areas. They provide flexible accommodation suitable for a variety of tenants, with individual units ranging in size from 441 sq ft (40.97 sq m) to 9,538 sq ft (886.12 sq m).

The site extends to 8.025 acres (3.243 ha) approximately, with a low site coverage of circa 32%.

TENURE

The property is held feuhold.

TENANCY

There are a total 55 units let to 51 tenants producing £509,818 pa and giving an excellent spread of income risk. There are currently2 vacant units, comprising 928 sq ft (18 Sandilands Street), and 447 sq ft (23 Eastmuir Street). This offers potential to enhance income further and we consider that current ERV in the order of £555,000 pa. With a low rental base of only £4.80 per sq ft we anticipate that there are excellent prospects for further rental growth.

The units continue to appeal to a number of trade style occupiers, in particular within the automotive and building/home improvement sectors, we believe that there is good potential to build up the number of such occupiers as well as other diversified trade users over time, to extend the credentials of Annick as a trade park style estate.


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Unit Tenant Area(sq ft)

StartDate

EndDate

BreakClause

PassingRent pa

Rent psf ERV pa Comments

Block 1 Unit 111 Sandilands St

Trueform Engineering Ltd 4,744 05/06/2013 04/04/2016 Extended under tacit relocation

£17,750 £3.74 £20,000


Eagley Plastics Ltd 4,739 11/11/2011 18/11/2017 £16,500 £3.48 £20,000


Platinum Batteries (Europe) Ltd

4,748 11/09/2013 10/09/2017 £17,500 £3.69 £20,000


Shawston Holdings Limited 4,718 11/09/2012 31/12/2015 £17,500 £3.71 £20,000 Flexi Lease

Block 1 Units 5 & 6 and Yard B43 & 47 Sandilands St

Community Transport Glasgow

9,499 01/03/2013 28/02/2018Option to

extend to 2023

£33,247 £3.50 £37,500 Rent review 1 March 2018

Block 1 Unit 75-9 Sandilands St

CabelTel Glasgow-NTL Group Ltd

2,326 23/06/1995 22/06/2020 £9,250 £3.98 £10,000


D M Harris Ltd 2,253 20/01/2006 19/01/2016Extended under tacit relocation

£10,750 £4.77 £10,000 Monthly payments


Thomas McDonald t/a McDonald Flooring

2,339 22/05/2007 21/05/2018 £10,000 £4.28 £10,000


Decorous Painting Contractors Limited

2,295 20/12/2012 19/09/2017 £9,750 £4.25 £10,000


J.N.G. Limited 2,258 28/10/2013 27/10/2016 £9,750 £4.32 £10,000 Flexi LeaseMonthly payments


Spotless Office Cleaning Ltd

2,316 01/09/2005 31/08/2025 31/8/2020Tenant only

6 months’ notice

£10,000 £4.32 £10,000 Rent Review 01/09/2020

TENANCY SCHEDULE

*Tacit relocation: On expiry, neither party gives notice of their intentions to quit and the lease holds over for a further 12 months on the same term and conditions.


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StartDate

EndDate

BreakClause

PassingRent pa



Al-Mech (Glasgow) Ltd 912 07/05/2011 06/05/2016Extended under tacit relocation

£7,750 £8.50 £7,750

Block 2 Unit 1415 Eastmuir St

Glasgow Window & Door Centre Ltd

932 13/03/2015 12/03/2018 £7,750 £8.32 £7,750 Flexi Lease


J B Bennett Contracts Ltd 932 12/02/2015 11/10/2015 £7,750 £8.32 £7,750 Flexi Lease


Michael McConway t/a M & M Courier Services

933 14/02/2014 13/02/2016 £7,750 £8.31 £7,750 Flexi Lease


Anderbeth Limited 933 02/12/2014 01/12/2019 2/12/2016Tenant only

6 months’ notice

£7,750 £8.31 £7,750


Murray Miller Windows and Doors Limited

906 04/04/2014 27/03/2017 £7,750 £8.55 £7,750 Flexi Lease


Vacant 928 £7,750


Cherry Garden Landscaping Limited

936 01/03/2012 28/02/2016Extended under tacit relocation

£7,500 £8.01 £7,750 Flexi Lease


MT Cold Storage Solutions Limited

933 13/07/2015 12/07/2017 £7,750 £8.31 £7,750 Flexi Lease


B.Porter & C.Boyes t/a Porter Boyes

941 13/12/2010 12/12/2015 £7,750 £8.24 £7,750


JLL Optics Ltd 924 24/09/2012 23/09/2016Extended under tacit relocation

£7,750 £8.39 £7,750 Flexi Lease


Gary Spence 445 25/08/2004 24/08/2016Extended under tacit relocation

£3,500 £7.87 £4,000


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StartDate

EndDate

BreakClause

PassingRent pa



Robon Ltd 447 02/09/2011 01/09/2016Extended under tacit relocation

£3,750 £8.39 £4,000 Flexi Lease


S Robertson T/a Victorian Sash Windows

447 25/10/2007 24/10/2015 Extended under tacit relocation

£3,500 £7.83 £4,000


Vacant 447 £0 £0.00 £4,000


Robert Boyd 451 03/10/2014 02/10/2016Extended under tacit relocation

£4,000 £8.87 £4,000 Flexi LeaseMonthly payments


Peter Driscoll 441 08/03/2014 07/03/2016 £3,750 £8.50 £4,000 Flexi Lease


Alan McArthur Painting & Decorator Contractor


£3,250 £7.22 £4,000


Alan Driscoll t/a A D Building Maintenance

447 01/12/2013 30/11/2015 £3,750 £8.39 £4,000 Flexi Lease

Block 2 Unit 3255 Eastmuir Street

Automatic Door Components Ltd

447 24/05/2013 23/05/2016 £3,750 £8.39 £4,000 Monthly payments


Banner Kwik Ltd 447 19/04/2013 18/04/2016 £3,750 £8.39 £4,000 Flexi Lease Monthly payments


JLG Slating Ltd 447 15/08/2011 14/08/2016Extended under tacit relocation

£3,859 £8.63 £4,000 Flexi Lease


Bento Box Ltd 447 28/03/2011 27/03/2016Extended under tacit relocation

£3,500 £7.83 £4,000 Flexi LeaseMonthly payments


East End Tyre Services Ltd 2,307 01/08/2005 01/02/2029 2/2/2024; landlord; min 6 mths notice

£10,000 £4.33 £10,000 Rent Review 01/02/2019


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StartDate

EndDate

BreakClause

PassingRent pa



TES 2000 Limited 4,727 4/15/2014 14/4/2019 with option to

extend to 2024

15/4/2017; tenant; 6 mths notice; £5,000 penalty

£20,000 £4.23 £20,000 Monthly paymentsRent Review 14/04/2019

Block 3 Units 38/4114 & 26 Eastmuir St

Anglo Pacific International plc

9,538 04/02/2015 6/8/2016 6/8/2016; tenant; 6 mths notice has

been served

£36,200 £3.80 £37,500

Block 3 Unit 3918 Eastmuir Street

Mark Sloey & Tracy Gordon t/a Chips Away

2,300 25/09/2014 24/09/2019 £10,000 £4.35 £10,000


Friction Components & Systems Ltd

2,346 27/04/2015 26/03/2018 £10,000 £4.26 £10,000


Wysepower Ltd 4,744 16/09/2005 28/02/2016 £16,000 £3.37 £20,000 Lease to be extended


Externiture Ltd 2,347 04/02/2011 03/02/2016 £9,500 £4.05 £10,000


Under Offer to David Gaddi 2,261 £10,000 £4.42 £10,000 Five year term


Vulcanising UK Limited 4,772 23/01/2015 22/01/2025 23/1/2020; tenant; 6 mths notice

£20,000 £4.19 £20,000


Acoustic Metrology Ltd 4,685 15/05/2005 14/05/2016 £18,000 £3.84 £20,000


Yampower Ltd 2,310 264/03/2007 24/03/2018 £10,000 £4.33 £10,000


Andrew Miller & Mark Chalmers as partners of Image System Design & Print

913 27/04/2015 26/04/2020 £7,750 £8.49 £7,750


Anyjunk Limited 930 15/07/2013 14/07/2016 £7,750 £8.33 £7,750 Monthly payments


1 0


StartDate

EndDate

BreakClause

PassingRent pa



Trafficmaster Plc 915 04/04/2000 04/04/2017 4/4/2016; tenant; 6 mths notice

£7,750 £8.47 £7,750


MACD Electrical Ltd 935 25/03/2010 24/03/2020 £7,500 £8.02 £7,750 Rent Review 25/03/2015


Wilson & Calderwood Polishing LLP

915 06/05/2014 06/05/2016 £7,750 £8.47 £7,750 Flexi Lease


ProAir Conditioning Limited


£6,250 £6.75 £7,750


Alison Bennettt/a The Launch Brigade

925 01/09/2004 31/08/2016 £5,000 £5.41 £7,750


David Henderson 919 08/08/2011 07/08/2016Extended under tacit relocation

£6,250 £6.80 £7,750

Sub Station Site Scottish Power 11/11/1979 £10 £10

Yard A East End Tyre Service Ltd - as above.

17/10/2011 01/02/2029 2/2/2024; landlord; min 6 mths notice

£4,500 £4,500 Rent Review 01/02/2019

Underground Cables Scottish Power 13/04/2004 13/04/2999 £2 £2

107,523 £509,818 £554,762

EPC

EPC information on all the units is available within the dataroom.

VAT

The property has been registered for VAT purposes. It is anticipated that a sale will be affected by means of a Transfer of a Going Concern (TOGC).


PROPOSAL

We are instructed to seek offers in the region of £5,320,000 (Five Million Three Hundred and Fifty Thousand Pounds) subject to formal exchange of missives and exclusive of VAT. This will reflect a net initial yield of 9% and a reversionary yield of 9.83% after standard purchaser’s costs of 6.01% and allowing for LBTT.

FURTHER INFORMATION

For further information, to access the dataroom, or to arrange an inspection, please contact:

Steven Gay Neville Pritchard Richard Gale Ryden LLP JLL JLL130 St Vincent Street 30 Warwick Street 30 Warwick StreetGlasgow, G2 5HP London, W1B 5NH London, W1B 5NHT: 0141 270 3135 T: 020 7087 5370 T: 020 7087 5572M: 07789 986140 M: 07889 896872 M: 07527 388024E: [email protected] E: [email protected] E: [email protected]

© Crown Copyright 2015. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Disclaimer

JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract;b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law.

© September 2015 Jones Lang LaSalle IP, Inc.

Documents

Annick Industrial Estate€¦ · annick industrial estate glasgow 3 investment summary • well located, between m8 and m74 motorways, close to edinburgh road and shettleston road