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Fully Let Warehouse Investment Opportunity
Senior Architectural Systems LimitedPinnacle, Eland Road, Denaby Main Doncaster, South Yorkshire DN12 4HA
Investment Summary• Located on the Denaby Main Industrial
Estate near Doncaster.
• A modern, high quality industrial warehouseof approximately 48,578 sq ft (4,513 sq m)GIA including ancillary offices arranged overground and first floor.
• Let to Senior Architectural Systems Ltd fora term of 15 years from 2nd January 2007with rent reviews at 5 yearly intervals.
• A guarantee of the tenant’s obligations isprovided by Clytha Holdings Limited.
• Approximately 9.5 years unexpired on thelease.
• Current passing rent of £232,000 perannum, equating to £4.78 psf.
• New Long term Leasehold at a peppercornrent for 125 years less six days from 5th April 2004 (approximately 117 years).
• Offers are invited in excess of £2,100,000(Two Million, One Hundred ThousandPounds) subject to contract and exclusiveof VAT for a new long leasehold interest.A purchase at this level would reflect a netinitial yield of 10.39%, allowing forpurchaser’s costs of 6.3%.
• A purchase at this level equates to a capitalvalue of £43.23 per sq ft.
LocationThe property is situated off Eland Road on the DenabyMain Industrial Estate, just to the south of the A6023.
Denaby Main Industrial Estate forms part of the largerformer Dearne Valley Enterprise Zone, approximately8 miles (13 km) to the south-west of Doncaster, circa14 miles (23 km) to the north-east of Sheffield andapproximately 37 miles (59 km) south of Leeds.
The Dearne Valley is a former coal mining areasituated between Barnsley, Doncaster and Rotherhamwhich has been transformed over the past 10 years.The area has been the focus of substantial investmentincluding infrastructure works (such as roadimprovements), site reclamation and environmentalrecreation improvements.
The former Dearne Valley Enterprise Zone wasdesignated in November 1995 and was one of themore successful focused regeneration projects in theUK. The scheme has attracted a range of occupiersincluding Eland Cables, Doncaster MembraneInstallations Ltd, Own Brand Tape, M & K PolishGoods, Extrudakerb and Avonside Plumbing andHeating.
Historically, Doncaster’s major employers areconcentrated within two key sectors – distributionand automotive manufacturing. Major distributionwarehouses in South Yorkshire are operated by BMW,B&Q, Next, IKEA, and Wincanton Logistics; majorautomotive manufacturers include Gray & Adams andMontracon. The area has recently seen an aboveaverage proportion of jobs in utilities andconstruction; employers in these sectors includeClayfield Construction Limited, GD Lowther & Sonand AML Builders.
These plans are published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. These plans are based upon Ordnance Survey Map withthe permission of the Controller of H M Stationery © Crown Copyright.
CommunicationsThe Dearne Valley is strategically located close tothe geographical centre of the UK, between the M1 motorway (Junction 36) and the A1(M).
The area has an integrated infrastructure networkincluding an excellent road network and fast railconnections. Drive times to the key regional citiesof Sheffield, Leeds and Nottingham are 30, 40 and45 minutes respectively.
In terms of rail links, the property is located lessthan 1 mile (1.6 km) from Conisbrough Stationwhich provides regular services to DoncasterStation (10 minutes) and to Sheffield Station (35 minutes). Doncaster Station is situated on theEast Coast Main Line with frequent direct servicesto London Kings Cross (95 minutes).
The rail and road networks connect to the East Coast ports of Goole, Grimsby, Hull andImmingham. These ports are one of Europe’sleading trade arteries, handling up to 60 milliontonnes of goods each year.
The property provides ready access to the fastexpanding Robin Hood Airport Doncaster Sheffieldsituated less than 15 miles away just off the M18motorway (Junction 3). This new and expandingairport now serves circa 1 million passengers a yearwith routes to over 30 destinations.
These plans are published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds.
DescriptionThe property was completed in 2006 and provides a high quality, purpose built detached distributionwarehouse facility with ancillary office accommodationarranged over two storeys along part of the frontelevation.
The property benefits from the following specification:
• Steel portal frame construction with profiled metalsheeting under a profile sheet roof.
• A minimum eaves height of 10.25 metres (33 ft 7 ins)to the haunch and a minimum structural clearance atthe highest racking point of 13 metres (42 ft 6 ins).There is a small area of warehousing under the firstfloor level with a minimum clear height of 3.6 metres(12 ft).
• Loading/unloading facilities via 3 surface loading doorsand 2 dock levellers.
• Concrete ground floor slab with a designed UniformlyDistributed Load (UDL) of 50KN/sq m.
• Warehouse specification includes halogen lighting.
• The office specification includes aluminium frameddouble glazing, carpeting throughout first floor,recessed Category 2 lighting, gas-fired heating,comfort cooling, perimeter trunking, raised floorsand suspended ceilings.
• 8-person (630 kg) passenger lift
• All floors are serviced with male and female WCfacilities.
The property is principally used by SeniorArchitectural Systems for storing extruded aluminiumsections and parts.
Externally the site has a tarmac covered parking andcirculation area, with a concrete surfaced service andloading area. The site has direct access from Eland Roadand is surrounded by a coated steel wire fence.A staff car park is situated along the road at the front ofthe building and has designated spaces for approximately 32 vehicles.
Senior Architectural Systems Ltd also occupy a secondpurpose built industrial warehouse and ancillary officeaccommodation comprising 86,820 sq ft on an adjacentplot.
AccommodationThe property has been measured on a Gross InternalArea basis in accordance with the RICS Code ofMeasuring Practice (6th Edition) and from this wecalculate the approximate gross internal areas as follows:
TenureThe property is held on a 125 year ground lease lessthree days from 5th April 2004. The Purchaser will begranted a new sub under-lease for the remainder ofthe term, less three days, at a peppercorn rent.
Site AreaThe property is situated on a broadly rectangularshaped site of approximately 1.17 hectares (2.9 acres),giving a site density ratio of approximately 38.5% anda footprint ratio of 36.8%.
TenancyThe property is sub-let to Senior ArchitecturalSystems Ltd for a term of 15 years from 2nd January2007 with the lease expiring 1st January 2022.A guarantee is provided by Clytha Holdings Limited.
The current rent is £232,000 per annum equating to£4.78 per sq ft. This lease is drawn on full repairingand insuring terms and is subject to five yearly upwardonly rent reviews. The next rent review is due on 2nd January 2017.
Senior Architectural Systems Limited was previouslynamed Senior Aluminium Systems Limited. The namechange in August 2008 reflected the widening of theirbusiness offering.
Floor DescriptionGross Internal
Area (sq ft)Gross InternalArea (sq m)
Ground Floor Main Warehouse 44,124 4,099.3
Ground Floor Reception 2,166 201.2
Ground Floor Space under Mezzanine 210 19.5
First Floor Offices 2,078 193.1
Total (GIA) 48,578 4,513.1
Tenant Information The tenant, Senior Architectural Systems Ltd, formerlySenior Aluminium Systems Ltd, (Co. No. 03909137)offers a one-stop aluminium and in-house powdercoating service for the architectural aluminium glazingmarket. The company provides high performanceglazing products and operates from three servicecentres. These centres include the subject property inDoncaster, as well as properties in Newport (Wales)and Livingston (Scotland).
Senior Architectural Systems Ltd’s financial informationfor the last three years is outlined in the table below:
Clytha Holdings Limited (Co. No. 02543555) guaranteethe rent and have been in operation since 1990. Thesubsidiaries of Clytha Holdings are engaged in anumber of related businesses such as specialistaluminium and hardware stockholding and electrostaticpowder coating.
Clytha Holdings Limited’s financial information for thelast three years are outlined in the table below:
Further information on Senior Architectural SystemsLtd is available at http://www.seniorarchitectural.co.uk
Plant & MachineryNone of the systems or equipment in the propertyhave been tested by Cushman & Wakefield LLP andpurchasers may wish to make their own investigationsto check that they are in working order.
VATThe sale cannot be treated as a Transfer of a GoingConcern (TOGC) as the purchaser will be granted anew sub-underlease for the remainder of the existing125 year term, less three days from 5th April 2004.Therefore VAT will be charged on the purchase price.
Purchaser costs are increased to reflect SDLT payableon the VAT element on the purchase price. Thereforenormal purchaser’s costs have been increased to 6.3%to reflect this.
Capital AllowancesWe understand that no transferable capital allowancesare available.
ProposalWe are instructed to seek offers in excess of£2,100,000 (Two Million, One HundredThousand Pounds) subject to contract andexclusive of VAT for a new long leasehold interest.A purchase at this level would reflect an attractivenet initial yield of 10.39% after allowing forpurchaser’s costs of 6.3%.
INVESTMENT SALESGROUP CONTACTS
Senior Architectural SystemsLimited,The Pinnacle,Eland Road, Denaby Main,Doncaster, South YorkshireDN12 4HAFor further information or to arrangean inspection please contact:
MIKE BURDENTel: 020 7152 5086Fax: 020 7152 5388Email: [email protected]
NICK DUFEUTel: 020 7152 5069Fax: 020 7152 5388Email: [email protected]
EMMA WILLIAMSTel: 020 7152 5187Fax: 020 7152 5385Email: [email protected]
Cushman & Wakefield LLP43/45 Portman SquareLondonW1A 3BG
www.cushmanwakefield.com
June 2012MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors orlessors of this property whose agents they are, give notice that: (1) The particulars are producedin good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give anyrepresentation or warranty whatever in relation to this property. (3) This property is offeredsubject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in goodcondition or that any services or facilities are in working order. (5) Unless otherwise stated, noinvestigations have been made regarding pollution or potential land, air or water contamination.Interested parties are advised to carry out their own investigations if required.
30th June 2011(£’s)
30th June 2010(£’s)
30th June 2009(£’s)
Turnover 20,988,620 18,890,029 20,046,229
Pre-tax Profit (Loss) 626,788 –225,986 –87,541
Total Net Worth 1,220,937 723,048 914,032
30th June 2011(£’s)
30th June 2010(£’s)
30th June 2009(£’s)
Turnover 24,318,858 19,876,936 20,046,229
Pre-tax Profit (Loss) 1,236,106 –772,748 139,504
Total Net Worth 2,303,111 1,044,315 1,647,652
www.cushmanwakefieldinvestmentsales.co.uk/cw/doncaster
