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CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR
PRIVATECLIENT
LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS
EXECUTIVE SUMMARY
• Located on the well-established Halesfield Industrial Estate• Excellent access to the M54 and the M6 motorways• Self-contained detached headquarters warehouse facility
comprising approximately 93,580 sq ft (GIA) • Maximum clear height of 7.82 metres• Freehold• Single let to the strong covenant of CustomPack Ltd.
• Tenant has invested significantly in fit out and machinery
• Long unexpired lease term of 9.75 years• Rental income of £315,164.68 per annum
equating to £3.37 psf• Upwards only annual uncapped RPI
linked increases
PROPOSAL
Offers are sought in the region of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.40% after allowing for purchaser’s costs of 6.54% and a low capital value of £42.74 psf overall.Running yield profile based on OBR RPI forecasts (no purchaser’s costs):2018 – 8.15% 2020 – 8.68%2019 – 8.41% 2021 – 8.95%
CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS
BY ROAD
Birmingham 40 mins
Manchester 100 mins
Liverpool 100 mins
London 180 mins
BY TRAIN
Wolverhampton 18 mins
Birmingham New Street 36 mins
Manchester Piccadilly 93 mins
London Euston 130 mins
AIRPORT DRIVE TIMES
Birmingham International 54 mins
East Midlands International 70 mins
Manchester Airport 88 mins
London Heathrow 150 mins
TELFORD TRAVEL TIMES
CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS
LOCATION Telford is the largest town in the county of Shropshire with an estimated population of close to 170,000. It is located in the West Midlands, approximately 21 km (13.0 miles) east of Shrewsbury and 43 km (30.0 miles) north west of Birmingham.
The town benefits from excellent communications with the M54 linking the town to the M6 (Junction 10a) 27 km (17.0 miles) to the east. The A5 runs east-west through the town.
The town is located on the Arriva Wales train line which provides regular services into Birmingham and offers direct connections to London Euston. Telford has an International Rail Freight Park which is within 10 minutes of the subject property, providing access to the regional and national rail networks.
TelfordTelford
BirminghamBirmingham
WolverhamptonWolverhampton
LeicesterLeicester
NottinghamNottingham
DerbyDerby
Stoke-on TrentStoke-on TrentNewcastle-under-LymeNewcastle-under Lyme
NewportNewport
KidderminsterKidderminster
WalsallWalsall
DudleyDudley
CoventryCoventry
NuneatonNuneaton
SuttonColdfield
SuttonColdfield
LeamingtonSpa
LeamingtonSpa
RugbyRugby
BirminghamInternationalAirport
East MidlandsAirport
CoventryAirport
A41
A34
A38
A42
A41
A53
A53
A518
A518
A442
A442
A442
A454
A458
A456
A449
A449
A5
A5
M1
M1
M1
M6
M42
M42
M45
M69
M69
M40
M54
M6
M6
M6 Toll
M6
M5
A442
BR
OC
KTO
N W
AY A442
HALESFIELD 10
HA
LESFIE
LD 9
SUTTON HILL
BRIDG
NO
RTH
ROA
D
HALESFIELD 13 HALESFIELD 9H
ALES
FIELD
15
HA
LESFIELD 14
HA
LESF
IELD
14
SUTTON WAY
MAD BROOK
Cedo
LibraSystems
PrimeFacility
Services
CML
Proto Labs Ltd
HexagonManufacturing
Intelligence
RetailFurniture
Edgmond Foods
Nomique
CustomPackCustomPack
WestPennineTrucks
© Crown Copyright, ES 100004106. For identification purposes only.
CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS
Tank
HALESFIELD 14
BR
OC
KT
ON
WA
Y
Halesfield
El Sub Sta
El
Sub Sta
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2017. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1250
SITUATIONThe property is situated on Halesfield Industrial Estate, one of three prominent industrial estates within the town. The building is located at the southerly end of Halesfield 14 which is situated to the south of the Estate.
Halesfield Industrial Estate is located approximately 5 km (3.1 miles) south of the town centre with nearby tenants including JRI Technologies, MAHLE, Precision Colour Printing, Brintons, Link 51 and Grange Fencing.
The estate is accessed directly off Brockton Way (A442) which links to the M54 to the north (Junctions 4 and 5).
SITEThe property occupies a site of 3.43 acres (1.386 ha).
DESCRIPTIONThe property comprises a 1980s detached 3-bay industrial warehouse of steel portal frame construction. The exterior walls are a combination of brickwork and glazing surmounted by a profile steel sheet covered roof. The unit benefits from three loading doors (one accessing the secure goods yard to the north and two fronting the secure goods yard to the south). There is a single storey flat roofed office unit running along the length of the front of the unit fronting the car park and Halesfield 14.
The warehouse benefits from the following specification:• 7.82m maximum clear height• 3 level loading doors• Sodium lighting• Gas and electric heating blowers
The offices benefit from the following specification:• Air conditioning• Suspended ceiling• Cat 2 Lighting• Perimeter trunking• Male and Female WCs• Dedicated staff canteen
The tenant is actively investing in the unit and has spent over £115,000 recently refurbishing the office, labs and reception. They are currently upgrading their IT system and are purchasing new manufacturing technology.
Halesfield 14
ACCOMMODATIONWe have been provided with the following areas by the vendor and understand them to be as follows:
Floor Description Area (sq ft) Area (sq m)
Ground Warehouse 84,640 7,863.3
Ground Office 9,111 846.4
Total 93,751 8,709.8
TENUREFreehold
TENANCYThe property is let to CustomPack Ltd (formerly Chequer Foods Ltd) with Pelican Rouge Coffee Solutions Group Ltd as Guarantor. The term commenced on 17 August 2005 and was regeared in 2012 with expiry on 16 August 2027 providing an unexpired lease term of 9.75 term certain. There is a schedule of condition attached to the lease.
The current rent passing is £315,164.68 p.a.
The lease is subject to upwards only annual RPI linked rent reviews which are uncapped.
Q3 2018
3.60%
3.50%
3.40%
3.30%
3.20%
3.10%
3.00%
2.90%Q3 2019 Q3 2020 Q3 2021
COVENANTCUSTOMPACK LTDCustomPack, formerly known as Chequer Foods, was established in 1962 and specialises in the production of individual portion products producing a wide range of own brand condiments and in cup beverages. CustomPack is part of the Pelican Rouge Group, one of Europe’s largest coffee solutions organisations. The company’s home is Telford and it employs over 160 people.
CustomPack Ltd reported the following results over the last three years:
31/03/2016 29/03/2015 30/03/2014
Turnover £19,721,000 £21,279,000 £20,908,000
Pre-Tax Profit
£590,000 £536,000 £897,000
Total Net Worth
£6,733,000 £6,172,000 £6,069,000
Clients of CustomPack Ltd include Nestle, Ministry of Defence, Brakes, HM Prison Services, Supernoodles, KFC and Kenco.
Source: OBR
CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR LONG LET INDUSTRIAL INVESTMENT WITH UNCAPPED ANNUAL RPI RENT REVIEWS
PRIVATECLIENT
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 11.17
EPCThe property has been rated grade C(61). The EPC is available upon request.
www.allsop.co.uk
For further information or to make arrangements for viewing please contact:
PRIVATE CLIENT TEAM
VATThe property will be subject to VAT although we anticipate the sale will be treated as a Transfer of Going Concern.
DATAROOMFor Access to the Allsop dataroom please use the following link:
https://datarooms.allsop.co.uk/register/telford
PROPOSALOffers are sought in the region of £4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.40% after allowing for purchaser’s costs of 6.54% and a low capital value of £42.74 psf overall.Running yield profile based on OBR RPI forecasts (no purchaser’s costs):2018 – 8.15% 2020 – 8.68%2019 – 8.41% 2021 – 8.95%
Jonathan Butcher020 7543 [email protected]
Alex Butler020 7543 [email protected]