KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL … · Hampton Lovett Industrial Estate on Kingswood Road. The estate is accessed from the A442 Droitwich to Kidderminster Road which links

KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE

DROITWICH SPA WR9 0QH

LONG INCOME HQ INDUSTRIAL INVESTMENT

On the instructions of Telereal Trillium

KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL ESTATE DROITWICH SPA WR9 0QH

Hygiene Group Plc

HAMPTON LOVETT INDUSTRIAL ESTATE

Site outline for identification purposes only.

DESPATCH DISTRIBUTION

DOJO TRAINING CENTRE

STONEBRIDGE CROSS BUSINESS PARK

KIDDER

MINSTE

R ROAD A442

TOWARDS M5 J5

INVESTMENT CONSIDERATIONS Purpose built headquarter manufacturing facility

Well located 3 miles from Junction 5 of the M5

Situated on the established Hampton Lovett Industrial Estate

Let to the 5A1 covenant of Koito Europe Ltd

Recently re-geared 15 year lease expiring 25 December 2033 with a tenant break in year 10

10.2 years term certain

Virtual freehold

Passing rent of £824,500 per annum reflecting a low re-based rent of £4.66 psf

High site power capacity of 4,800 kVA

Total area of 176,837 sq ft

Koito Europe Ltd have heavily invested in the property to meet their operational requirements

Offers sought in excess of £11,890,000 (Eleven Million Eight Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.5% assuming usual purchaser’s costs and a low capital value of £67 psf.



LOCATIONDroitwich Spa is an attractive town in the county of Worcestershire approxi-mately 23 miles south west of Birmingham and 10 miles north of Worcester.

Droitwich Spa benefits from excellent road communications with the M5 Junction 5 located 2 miles to the north east of the town centre and provides access to Birmingham to the north, Bristol and Exeter to the south. The M5 intersects with the M42, 8 miles to the north in turn linking with the M40 and M6, 25 miles to the north.

Droitwich Spa Rail Station provides regular services to Worcester, Birmingham New Street and London Euston with fastest journey times of 8 minutes, 36 minutes and 2 hours 10 minutes.

Avonmouth Dock and Ellesmere Port are respectively within 1 hour 10 minutes and 2.5 hour drive times.

SITUATIONThe property benefits from a strategic logistical position situated within the Hampton Lovett Industrial Estate on Kingswood Road.

The estate is accessed from the A442 Droitwich to Kidderminster Road which links with the A38 to the south providing easy access to the M5, Junction 5 approximately 2 miles to the east.

Occupiers on Hampton Lovett Industrial Estate include Amazon, opposite the property, Big Bear Plastic Products, Vax, Muller, Adstone Construction and Flood Angel.

BirminghamInternational

Airport

MidlandsAirport

CoventryAirport

LutonAirport

M1M6

M5

M5

M6

M1

A1(M)

M6 TOLL

A1(M)

M40

M42

M42

M50

M54

M69

M45

COVENTRY

LEICESTER

GLOUCESTER

NORTHAMPTON

NOTTINGHAMDERBY

Peterborough

Bedford

MiltonKeynes

LUTON

WORCESTER

Hereford

Shrewsbury

Stoke-on-Trent

Kidderminster

Walsall

Cannock

Burton upon Trent

SuttonColdfield

West Bromwich

Warwick

Stratford-upon-Avon

Newcastle-under-Lyme

Telford

BIRMINGHAM

DROITWICH SPA

A38

A38

ROM

AN

WA

Y

M5

M5

J5

DOV ERDALE LANE

POINTON WAY

A442 KID

DERM

INSER R

OA

D

CR

UTC

H L

AN

E

BERRY HILLINDUSTRIAL

ESTATE

STONEBRIDGE CROSSBUSINESS PARK

KINGSWOOD ROAD

WASSAGEWAY SOUTH


DROITWICH SPA



A38

A38

ROM

AN

WA

Y

M5

M5

J5

DOV ERDALE LANE

POINTON WAY

A442 KID

DERM

INSER R

OA

D

CR

UTC

H L

AN

E

BERRY HILLINDUSTRIAL

ESTATE

STONEBRIDGE CROSSBUSINESS PARK

KINGSWOOD ROAD

WASSAGEWAY SOUTH


DROITWICH SPA

A1(M)

A1(M)

M25

M4

M4

M2

M5

M5

A34

A421

A429

A346

A4 6

A14

M50

M54

M6

M6

M6

M61

M69M42

M25

M20

M1

M1

M1

M62M62

M65

M180

M11

M3

A1(M)

A1(M)

M40

17

15

11

15

M2

NISSAN CAR PLANTNISSAN CAR PLANT

CHELTENHAM AYLESBURY

MILTONKEYNES

NORTHAMPTON

BEDFORD

AVONMOUTH

EXETER

SWANSEA CARDIFF

NEWPORT

CHESTER

CREWE

SWINDON

ELLESMERE PORT

LIVERPOOL

SALISBURY

PORTSMOUTHSOUTHAMPTON

CHICHESTER

BRIGHTONAND HOVE

BRISTOL BATH

GLOUCESTER

HEREFORD

OXFORD

WORCESTER

BIRMINGHAM

WOLVERHAMPTON

LICHFIELD

COVENTRY

LEICESTER

CITY OF LONDON

STALBANS

CAMBRIDGE

ELY

PETERBOROUGH NORWICH

STOKE-ON-TRENT

SALFORD

DERBYNOTTINGHAM

SHEFFIELD

LINCOLN

LANC ASTER

CARLISLE

PRESTONBRADFORD

LEEDS

RIPON

WAKEFIELD

KINGSTON

GRIMSBY

UPON HULL

YORK

DURHAM

NEWCASTLE UPONTYNE

SUNDERLAND

WARWICK

WINCHESTER

MANCHESTER

WESTMINSTER

DOVER

FELIXSTOWE

TOYOTA CAR PLANT

BENTLEY CAR PLANT

HONDACAR PLAN

1HR

2HR

3HR


TENANT OPERATIONSKoito Europe operate solely from the manufacturing facility based in Droitwich employing over 700 people at the site. The manufacturing facility operates a just-in-time production 24 hours a day, six days a week. Koito have a Dojo Training facility and Despatch Department also located on Hampton Lovett Industrial Estate.

Koito Europe Limited provide rear lamp lighting and fog lighting to many vehicle manufacturers including Toyota, Honda, Nissan, Suzuki, Peugeot, Bentley, Renault and Mercedes.

We understand that current contracts are in place with Nissan’s Sunderland Plant, Toyota’s Derbyshire Plant and Suzuki’s Hungary Plant.

In 2018 alone, the tenant has invested over £1,000,000 in equipment including an additional moulding machine bringing the total to 40, replacement of two cranes and an additional injection moulding plastic pellet storage tank.

The tenant has plans to install an additional transformer to enable them to utilise the onsite power capacity of 4,800 kVA from 5 on site sub stations.

LONG INCOME HQ INDUSTRIAL INVESTMENTLONG INCOME HQ INDUSTRIAL INVESTMENT

DESCRIPTIONThe property comprises a purpose built manufacturing facility constructed in three phases between 1987 and 2000. The building is of steel portal frame construction with profile metal clad elevations. The property benefits from 6m eaves height to the majority of the warehouse with 10.6m eaves within the high bay warehouse section.

The property has been extensively fitted out to meet the operational requirements of the tenant. The unit has been configured to provide manufacturing, parts assembly and storage areas for which a high bay area is situated in the middle of the facility. The southern elevation provides two storey office and meeting room accommodation.

The tenant is continuing to invest in the site and is currently constructing a new covered dock loading bay at the southern end of the site under planning application 17-02073-FUL. Once complete this will provide an additional loading bay bringing the total to 6.

The car park provides approximately 247 spaces.

SITE AREAThe property has a site area of approximately 3.67 hectares (9.08 acres) providing a site cover of approximately 42%.

TENURE999 year long leasehold interest from 25 December 1993 at a peppercorn rent.

TENANCY The property is let to Koito Europe Limited on a reversionary 15 year lease from 25 December 2018 with a tenant break option in year 10. The passing rent of £824,500 per annum reflects £4.66 psf and is net effective rent as no rent free was granted.

For the purpose of the rent reviews the area is assumed to be 177,302 sq ft.

Issues

El Sub Sta

Chy

Silos

Tank

Trac

k

El Sub Sta

ES

S

ESS

ESS

ESS

Tk

Oakm

oore

Court

Pump House

ESS

SalterHouse

ESS

Gas Gov

Tank

0m 10m 20m 30m

Koito, Kingswood Road, Hampton Lovett Industrial Estate, Droitwich Spa WR9 0QH

Ordnance Survey © Crown Copyright 2018. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1766

© Crown Copyright, ES 100004106. For identification purposes only.



ACCOMMODATION SCHEDULE

Unit Floor Description Area (sq ft)

Area (sq m)

Phase 1 & 2

Ground Warehouse and Production* 44,132 4,100.0

Ground Office and Ancillary 1,614 149.9

Ground Warehouse and Production 56,110 5,212.8

Ground Reception and Offices 8,217 763.4

First Offices 9,623 894.0

Sub total 119,696 11,120.1

Phase 3

Ground Warehouse Production & Offices 48,558 4,511.2

Ground Despatch Bay 3,229 300.0

First Offices 1,890 175.6

Subtotal 53,677 4,986.8

Ground External Store 3,404 316.2

Ground Gatehouse 60 5.6

Subtotal 3,464 321.8

Total 176,837 16,428.7

* Inclusive of the high bay warehouse element which totals 20,586 sqft (1,912.4 sqm)

Koito Europe Limited Company number 945580. D&B rating 5 A1In 2016, Koito Europe Limited (KEL) celebrated it’s twentieth anniversary of manufacturing. KEL are a leading supplier to the automotive industry specialising in the design and manufacture of rear lamp lighting to a number of vehicle manufacturers.

KEL is part of Koito Manufacturing Company Limited (KMC) which is a Japanese based global organisation employing over 19,000 people worldwide in the design and manufacture of all aspects of automotive lighting. KEL is KMC’s main manufacturer of rear lamps and fog lamp production in the European Market.

31/12/17 31/12/16 31/12/15

Turnover £100,152,252 £82,788,190 £78,055,733

Pre-Tax Profit £12,575,252 £7,870,917 £4,001,224

Total Net Worth £35,087,072 £21,442,506 £13,945,606

Koito Manufacturing Co. Ltd are the ultimate holding company to Koito Europe Limited and are listed on the Tokyo Stock Exchange with an approximate market capitalisation of £7.62 billion.

For the year ended March 2018, Koito Manufacturing Co. Ltd have reported a turnover of £6,075,909,461, pre-tax profits of £885,488,036 and Net Worth of £3,183,799,501, based on a conversion rate of 1 USD = 0.76 GBP.

LONG INCOME HQ INDUSTRIAL INVESTMENTLONG INCOME HQ INDUSTRIAL INVESTMENT

COVENANT INFORMATION


RECENT INVESTMENT SALES

Date Address Tenant Unexpired Term

Price NIY Purchaser

Apr-18 Worcester Six Business Park, Worcester

Spire Healthcare

20 years £9.57m 4.29% Knight Frank IM LLP

Jun-18 Big Berry, Berry Hill Industrial Estate, Droitwich

Groupo Antolin Interiors

6.73 years £16.9m 5.40% Mayfair Capital Investment Management Ltd

Jul-17 Lakeside Point, Broad Ground Road, Redditch

WEG UK Ltd 5.64 years £7.6m 6.17% Mordril Properties Ltd

Apr-17 Big Berry, Berry Hill Industrial Estate, Droitwich

Groupo Antolin Interiors

8.06 years £11m 6.20% Oxenwood Real Estate LLP/Alberta Investment Management Corporation

RECENT RENTAL TRANSACTIONS

Date Address Tenant Area (sq ft)

Rent (psf)

Term

Jan-18 Liberty 45, Pershore Lane, Worcester

Materials Solutions (A Siemens business)

46,955 £6.00 10 years

Nov-17 Unit 2 Easter Park, Worcester Road, Kidderminster

Howdens Joinery 31,700 £5.50 10 years TBO 2023

Aug-17 11 Sherwood Road, Bromsgrove

CSL Associates 27,949 £5.30 10 years

Apr-17 Suite 12 & 13 Minster Road, Kidderminster

PGS Global 20,552 £4.85 5 year term 6 months rent free TBO Nov 2022

Feb-17 704 Tolladine Road, Worcester

Electric Center 3,532 £6.37 10 years 3 months rent free


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 09.18

Dale Johnstone020 7543 [email protected]

For further information or to make arrangements for viewing please contact:

Lottie Hayward020 7543 [email protected] www.allsop.co.uk

VATWe understand the property is elected for VAT. It is intended that the sale will be treated a Transfer of a Going Concern (TOGC).

EPCThe property has an EPC rating of D 78.

DATAROOMFurther information is provided in the dataroom. For access please register on the following website:

https://datarooms.allsop.co.uk/register/KoitoDroitwich

PROPOSALOffers sought in excess of £11,890,000 (Eleven Million Eight Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.5% assuming usual purchaser’s costs and a low capital value of £67 psf.




Documents

KINGSWOOD ROAD HAMPTON LOVETT INDUSTRIAL … · Hampton Lovett Industrial Estate on Kingswood Road. The estate is accessed from the A442 Droitwich to Kidderminster Road which links