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South East Industrial Investment
Aspect OneGunnels Wood RoadStevenage, Hertfordshire SG1 2DG
South East Industrial Investment
Established commercial location
New lease
£2,890,000, subject to contract
9.0% net initial yield
Stevenage is located approximately 48 km (30 miles) north of CentralLondon, 51 km (32 miles) south east of Milton Keynes, 24 km (15 miles)east of Luton and 16 km (10 miles) north of Welwyn Garden City.
The town benefits from good road communications being situated atJunction 7 of the A1(M) which in turn provides direct access to Junction23 of the M25 Motorway approximately 26 km (16 miles) to the south.In addition, Junction 10 of the M1 Motorway is approximately 24 km (15miles) to the west and the A10 is some 16 km (10 miles) to the east.
The town is connected to the national railway network with a fastestjourney time to London Kings Cross of 19 minutes. Stevenage is alsosituated on the main East Coast London to Edinburgh railway line andis the only main town in Hertfordshire with direct services toPeterborough, Leeds, York, Newcastle and Edinburgh.
Luton International Airport is situated approximately 19 km (12 miles) tothe west, Stansted Airport approximately 43 km (27 miles) to the eastand Heathrow Airport approximately 61 km (38 miles) to the south west.
Many of the world’s most innovative companies have selected Stevenageto base key offices, operations and facilities. These include GSKGlaxoSmithKline, Astrium, MBDA and Fujistsu. Stevenage was Britain’sfirst new town and in recent years has attracted quality new investmentin retail and leisure such as the West Gate Centre, the Forum and thePlaza as well as out of town retail centres such as the Roaring Meg.
The subject property occupies a prominent position fronting GunnelsWood Road. Junction 7 of the A1(M) is 1.6 km (1 mile) to the south. Theproperty is a short walk from Stevenage railway station and Stevenagetown centre.
Gunnels Wood is the largest employment area in Stevenage employing18,800 people over 720,000 sq m (7,750,008 sq ft) of business floorspace (Source: Stevenage Borough Council).
Gunnels Wood is home to a mix of business premises and sciencetechnology parks including the Stevenage Bioscience Catalyst, a uniquebioscience park created to provide small biotech and life sciencescompanies and start-ups with access to the expertise, networks and
scientific facilities traditionally associated with multinationalpharmaceutical companies.
Surrounding occupiers include Mercedes (adjacent), Astrium, Kwik Fit,John Lewis, Fujitsu, Safestore and the Stevenage Leisure Park.
The subject property comprises a headquarters production / warehousebuilding with fitted offices at first floor.
The ground floor warehouse accommodation benefits from an eavesheight of 6 metres (19ft 6 in) and two 4 metre (13 ft 3 in) loading doors.A passenger lift serves the first floor offices which are primarily open planwith a specification including double glazing, raised floors and centralheating.
Surface car parking is provided to the front of the property with additionalcar parking and a loading area at the rear. There are 98 car parkingspaces in total.
The property provides the following gross internal floor areas;
The site extends to approximately 0.70 hectares (1.74 acres).
A Phase I Environmental Survey was carried out by GVA in July 2013,concluding that the site is considered “Low Environmental Risk forcontinued commercial use” and “no further environmental investigationsare considered necessary”. A copy of the report is available to download.
Situation
Location
Description
Accommodation
GroundFloor
Industrial/Warehouse 3,299.99 sq m 35,520 sq ft
FirstFloor Office 492.88 sq m 5,305 sq ft
Total 3,792.87 sq m 40,825 sq ft
Site
Freehold.
The property is entirely let to with a guaranteefrom on a full repairing and insuring leasefrom 22nd August 2013, expiring 28th September 2024. There is a tenant’sbreak option on 28th September 2018, subject to 12 months’ writtennotice. The tenant is to pay a break fee of £137,500 plus VAT if it wishesto exercise this right. There is an upward only rent review on 29thSeptember 2018. The lease is outside the 1954 Act.
The current passing rent is equating to £72.50 persq m / £6.74 per sq ft.
Zeus has been in occupation of the subject property for over 16 years.
As a result of the recent lease renewal the tenant has been granted a 12month rent free period, expiring on 22nd August 2014. The vendor will“top-up” the income in order that a purchaser does not suffer an incomeshortfall.
Zeus Packaging (UK) Limited (Co. No. 04145121) has reported the followingfigures:
Zeus Packaging Group is a leading specialist distribution and manufacturinggroup, supplying a diverse range of products and supply solutions to awide range of customer markets. Their product offering includes industrialand food service packaging alongside janitorial products in a variety ofindustry sectors. These include grocery, food service and retail, cleaning,pharmaceutical, distribution, manufacturing, agricultural, health care andfood processing. Customers include Kuehne & Nagel, Cadbury, Greencoreand Harrods.
Established in 1998, Zeus Packaging Group has grown significantly fromits base in Dublin. It now employs over 200 people at its sites in the UK,Spain, Poland and China. Successful growth has seen the group reach anannualised revenue in excess of €90 million. For further information pleasevisit www.zeuspackaginggroup.com
The Gunnels Wood business area is the prime industrial location inStevenage with direct access to the A1(M) at junction 7. In addition toattracting a number of major occupiers including John Lewis, Fujitsu, TheWine Society and Astrium, the Gunnells Wood Road is also characterisedwith a number of higher value uses including car dealerships occupied byFord, BMW/Mini, Mitsubishi and Mercedes (adjacent to the subjectproperty) and self storage operators Selfstore and Access Self Storage arealso nearby.
The supply of modern industrial and distribution buildings in Stevenage isvery limited with no speculative development undertaken for a number ofyears. We understand the most recent developments were SG1 and theOrbital Centre, the former achieving £8.00 psf demonstrating the occupierappetite for good quality industrial property. We are advised that primerents in the town for modern industrial and distribution buildings of this sizeare circa £7.50 psf which is at a discount to other nearby centres such asHatfield where rental levels are over £8.00 psf. With the lack of supply inthe vicinity, future rental growth is anticipated.
The property has been elected for VAT. It is anticipated that the sale willbe treated as a Transfer of a Going Concern (TOGC).
Covenant
Tenure
Market Commentary
Value Added Tax
Tenancy
31st Dec 2012 31st Dec 2011Turnover £30,890,095 £30,062,720Pre-Tax Profits £1,644,274 £1,443,700Shareholders’ Funds £5,280,111 £4,054,464
Misrepresentation Act 1967Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give noticethat:1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees,and do not constitute, nor constitute part of, an offer or contract2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation,and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves byinspection or otherwise as to the correctness of each of them.3. No person in the employment of Singer Vielle has any authority to make or give any representation orwarranty whatever in relation to this property.4. All maps are for identification purposes only and should not be relied upon for accuracy.5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they maybe subject.Under no circumstances shall Singer Vielle be liable to you for any direct, indirect, consequential, incidental orspecial damages arising out of your purchase or lease of any Property.Finance Act 1989Unless otherwise stated, all prices and rents are quoted exclusive of VAT.Property Misdescriptions Act 1991
These details are believed to be correct at the time of compilation, but may be subject to subsequent amend-ment.Concerning the Properties listed and/or appearing on the Site:1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or spe-cial damages arising out of your purchase or lease of any Properties on the Site.2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating toany Property listed on this Site or if any Property has been withdrawn from sale or lease nor shall we be re-sponsible for any inaccurate dimensions of any Properties or price listed.3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or list-ed on this Site. Such enquiries, purchase or leasing can only be made and permitted strictly subject to theterms and conditions set out below.4. We do not accept responsibility or liability for the completeness or accuracy of information appearing onthis Site which is provided by the Vendors or Lessors of the Property concerned who are solely responsible forsuch information.5. Whilst we believe that the Properties listed are available for purchase or lease we make no guarantee thatthis is the case or that they have not been withdrawn by the Vendor or Lessor of the same. All Properties ap-pearing or listed on the Site are subject to changes, errors or omissions. We have not verified the accuracy ofthe information relating to the Properties or any dimensions which have been given by the Vendors or Lessors.6. All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.
Subject to Contract & Exclusive of VAT
Singer Vielle94-96 Wigmore StreetLondon W1U 3RFTel: 020 7935 7200www.singerviellesales.com
[email protected]@singervielle.co.uk
Strutt & Parker13 Hill StreetLondon W1J 5LQTel: 020 7629 7282www.struttandparker.com
Forsters LLP (Vendor’s Solicitor)31 Hill StreetLondon W1J 5LSTel: 020 7863 8424Fax: 020 7863 8444
ProposalOur client is seeking offers in excess of (Two Million, Eight Hundred and Ninety Thousand Pounds), subject to contract,reflecting a net initial yield of and a capital value of .
Investment Considerations
Additional Information Available at www.singerviellesales.com/sites/Stevenage
Contact
