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High Yielding Well Let Investment Opportunity
Convergys, Unit 2, Stakehill Industrial Estate, Middleton, Manchester, M24 2UG
INVESTMENT CONSIDERATIONS ■ Well located within a popular and established industrial estate.
■ Excellent motorway communications to the M62.
■ Freehold
■ The property provides an industrial unit currently utilised as a call centre with a gross internal area (GIA) of 27,094 sq ft (2,517.1 sq m) and a large separate site of 1.78 acres which provides parking for circa 250 cars.
■ Let to Convergys Intelligent Contact Limited on a new 10 year FRI lease without breaks.
■ D&B 4A1 rated covenant.
■ Re-based rent of £235,000pa.
■ Tenant have recently spent c.£1m on refurbishing the property.
■ We are instructed to seek offers in excess of £2,200,000 (Two Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This shows an attractive net initial yield of 10% after allowing for purchaser’s costs of 5.8%.
Convergys, Unit 2, Stakehill Industrial Estate, Middleton, Manchester, M24 2UG
LocationThe property is located on the Stakehill Industrial Estate approximately 1.5 miles (2.3 km) to the south of the M62 at Junction 20, close to Middleton on the outskirts of Manchester. The estate benefits from a direct dual carriageway link to the A627(M) which connects to the M62 and the national motorway network. The M62 connects Leeds to Liverpool as well as the M1 and the M6 with a journey time of approximately one hour to both.
Mills Hill Mainline Station is approximately 2.5 miles (4 km) to the south and provides train services to Manchester Victoria. Manchester Airport is approximately 23 miles (37km) to the south.
SituationThe property is located in the north east corner of the estate on Stakehill Lane. The car park is situated to the east of the property a short walk from the main call centre building and is accessed from Finlan Road with frontage onto Bentley Avenue.
Stakehill Industrial Estate is recognised as one of the premier industrial and distribution locations in the north west of England, extending to approximately 200 acres and providing over 2.5m sq ft of industrial and distribution space. Nearby occupiers on the estate include Dunlop GRC, Proseat, Sykes Distribution, Booker Wholesale, Tesco and Aldi.
Mills Hill
Castleton
ManchesterGolf Course
North ManchesterGolf Course
Tandle HillCountry Park
Castle HawkGolf Course
Boar
shaw
Lane
Stakehill Lane
Bentley Avenue
Whitbrook Way
Boswell
Way
Touche t Hall Road
Finlan Road
Shaw Road
B6195 Middleton Road
B6195 Haigh Lane
Burnley Lane
Stree
t Bridge Rd
Gre
en L
ane
Stanycliffe Lane
Brookl and
s Stre
et
Clough RdBoarshaw Rd
Wood Street
Win
de
rmere Road
Bowness Road
Langley Lane
Hareshill Road
Pils
wor
th R
oad
A671 R
ochdale Road
A671 O
ldham R
oad
A663 Broadway
A664 R
ochd
ale Ro
ad
A664 Manchester Road
A664
Lo
ng S
treet
A664
Roc
hdal
e R
oad
A669 Middleton Road
A669 Oldham Road
A6046 M
idd
leton R
oad
A6046 H
ollin Lane
A604
5 H
eyw
ood
Old
Road
A604
5 M
anch
este
r Roa
d
A663
Br
oadw
ay
A627 Chadderton Way
M62
A627(M)
A627(M)J19
J20
J3
J2
J1
A627(M)
SYKES
JLG
M62 1.5miles
WINCANTON
Outline for indicative purposes only.
Description The property comprises an industrial unit of steel portal frame construction with brick elevations and a pitched steel profile clad roof. Internally the property provides two large rooms of open plan office accommodation currently used as call centres as well as a number of smaller ancillary offices and training rooms. There is a modern reception area and a canteen with a commercial kitchen.
The open plan offices benefit from a fully raised floor and recently upgraded lighting and air handing system with ceiling mounted recessed air conditioning units. The smaller offices have perimeter trunking and good natural light.
In addition within the ownership there is a separate car park located close to the subject property which provides space for approximately 250 cars.
TenancyThe property is let on a FRI lease to Convergys Intelligent Contact Ltd with a guarantee from Convergys Holdings (UK) Ltd. The landlord has agreed to grant a simultaneous surrender of the existing lease and grant a new lease for a period of 10 years on a full repairing and insuring basis subject to a schedule of condition at a rent of £235,000 pa.
There is an upwards only rent review in year 5 to market rent with a cap on the increase to no more than 2.5% of the passing rent. The tenant has a six month rent free period which the vendor will ‘top up’.
SiteThe property is on a site area of 1.14 acres with a site coverage of approximately 55%. The car parking site extends to 1.78 acres.
CovenantConvergys Intelligent Contact Ltd is part of Convergys Corporation, the second largest Business Process Outsourcing provider in the industry. It has 125,000 employees working in more than 150 service centres in 31 different countries. It primarily provides customer service, technical supports and sales services from its numerous call centres.
The tenant has a D&B rating of 4A1 and a minimum risk of business failure.
The company provided the following set of accounts over the last three years:
31 May 2012 31 May 2013 31 December 2013
Turnover 55,125,942 64,453,992 46,794,507
Pre-Tax Profit 4,850,580 5,902,348 2,829,250
Total Net Worth 20,990,459 19,194,256 21,479,623
132.0m
El Sub Sta
1
7
20 to 28
11
LB
10
Stakehill
12to
15
11
Farm
Industrial Estate
110
122
106
116
134
132
2
ElSubSta
0m 25m 50m 75m
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1688
CAR PARK
© Crown Copyright, ES 100004106. For identification purposes only.
AccommodationThe property provides the following approximate Gross Internal Areas (GIA):
Description Sq Ft Sq m
Call Centre 14,744 1,369.76
Offices 6,871 638.34
Canteen 5,050 469.16
Kitchen 429 39.86
Total 27,094 2,517.11
Area Spaces
Car Park 1.78 250
*Areas provided by the vendor.
*
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 05.15
Alex Butler020 7543 [email protected]
For further information or to make arrangements for viewing please contact:
Mark Dansky020 7543 [email protected]
Dom Ketteringham020 7543 [email protected] www.allsop.co.uk
Proposal We are instructed to seek offers in excess of £2,200,000 (Two Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This shows an attractive net initial yield of 10% after allowing for purchaser’s costs of 5.8%.
EPCA copy of the Energy Performance Certificate is available on request.
VATWe understand the property is elected for VAT which will be chargeable on the purchase price. We would expect the transaction to be treated as a transfer of a going concern (TOGC).
TenureFreehold