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M O D E R N M U LT I - L E T I N D U S T R I A L PA R A D E
M A R C H B U R N D R I V E , G L A S G O W A I R P O R T B U S I N E S S PA R K , G L A S G O W, PA 3 2 S J
THREE UNIT MODERN INDUSTRIAL TERRACE
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EXECUTIVE SUMMARY
Located within Glasgow Airport Business Park immediately south of Glasgow Airport.
Glasgow Airport Business Park benefits from strong transport links, being within 1 minute drive of the M8 motorway & regular bus services also serving the area. The area will benefit further following the development of the proposed Glasgow Airport Tram Link.
Three unit modern industrial terrace extending to 55,653 sqft (GIA) with ancillary yard to the rear.
Multi-let to FedEx & Kuehne + Nagel Ltd with one vacant middle terraced unit providing a WAULT of 2.66 years to breaks and 3.05 years to expiries.
The property has a passing rent of £254,410 per annum equating to an average of £6.67 psf.
Heritable Interest (Scottish equivalent of English Freehold).
Opportunity to increase value by letting vacant Unit B.
Offers are sought in excess of £2.40m exclusive of VAT for our client’s heritable interest. This provides a net initial yield of 10.00% assuming standard purchaser’s costs of 5.89%. A price at this level will reflect a capital value of £43.12 psf.
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LOCATION
GLASGOW IS LOCATED IN THE WEST OF SCOTLAND AND LIES APPROXIMATELY 644 KM (400 MILES) NORTH OF LONDON AND 64KM (40 MILES) TO THE WEST OF EDINBURGH.
The city has a population of almost 600,000 people making it Scotland’s largest city. The entire region surrounding the conurbation has approximately 2.3 million people within one hour’s drive which is more than 40% of Scotland’s entire population, making it the fifth largest urban area in the UK.
Industrial accommodation in Glasgow is principally located to the east, south and west of the city, with many of the city’s traditional estates situated adjacent to the M8. Major manufacturers in the city include BAE Systems, Erdington Group, McVities, United Distillers and Vintners and major warehouse occupiers include Royal Mail, Menzies Distribution, Parcelforce, Tradeteam Exel and TDG.
Glasgow’s largest estate is Hillington Industrial Estate, situated in Renfrewshire, c. 6.4 miles to the west of Glasgow City Centre and close to the subject property at Glasgow Airport. Other prominent estates to the west of Glasgow include Inchinnan Business Park a short distance to the west of the subject.
GLASGOW AIRPORT BUSINESS PARK
Glasgow Airport Business Park is located approximately 9 miles west of Glasgow city centre. The park is easily accessed via Junction 28 of the M8 motorway which provides direct links to both the west coast of Scotland as well as Glasgow and Edinburgh to the east. The park is also located within 0.5 miles of Glasgow Airport which has allowed it to thrive as a business destination, with many occupiers in the area being associated with the airport/haulage.
The location also benefits from regular shuttle buses from Glasgow City Centre via Glasgow Airport’s Express Bus Service offering connections every 10 minutes. Nearby amenities serving the park include Braehead Shopping Centre 4 miles to the east and Paisley town centre 1 ½ miles to the south. Putting the asset into an industrial context, Glasgow Airlink Industrial Estate is located opposite the subject offering smaller nest style industrial units, whilst Inchinnan Industrial Estate is 3 miles west and Hillington 6.4 miles to the east.
Nearby occupiers include Taylor Wimpey, First Milk Ltd, Loganair, Daikin, Travelodge, Premier Inn & Marriot.
PROPOSED TRAM LINK
The Scottish Government has recently announced the revival of the Glasgow Airport Project which will see the creation of a tram-train link between Glasgow Airport and Glasgow City Centre. The scheme, which will cost £144m, will see a dedicated rail link leaving from Glasgow Central Train station every 15 minutes and cut journey times to the airport to 16 ½ minutes. This scheme will increase the frequency and amount of public transport services to the area, with the station at Glasgow Airport being a short walk from the subject.
DESTINATION DRIVE TIMES
Junction 28 of M8 Motorway 1min
Hillington Industrial Estate 8mins
Glasgow City Centre 15mins
Eurocentral 20mins
Cumbernauld 25mins
Edinburgh 1hr15mins
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AERIAL VIEW1. GLASGOW AIRPORT EXPRESS BUS SERVICE2. PROPOSED TRAM LINK STATION3. GLASGOW AIRLINK4. FIRST MILK, LOGANAIR, TAYLOR WIMPEY5. AXSYS TECHNOLOGY6. DAIKIN AIRCONDITIONING UK7. VACANT DEVELOPMENT LAND
AVAILABLE BY SEPARATE ENQUIRY
JUNCTION 28 / M8 MOTORWAY
M8 MOTORWAY
MARCHBURN DRIVE
1
6
5
3
4
UNITS A-C
Cambuslang
Carmunnock
HamiltonEast
Kilbride
GLASGOW
Motherwell
Thorniebank
NewtonMearns
Coatbridge
Airdrie
Stepps
Uddingston
Chapelhall
Birkenshaw
A725
A725
A721
A775M74
M8
M73
M77
M77
M80
M8
J6A
M8
A726
A726
A80
A749 A724
A730
A814
A803
A74
A82
A77
A723
2A3 3A J4
J8/2
A725
J3
A80
A8
A89
J13/1
J2
J1
J22J24J25
J26
J29
A739
J5
J6
J7
J6
Bellshill
TO EDINBURGH >
TO SOUTHAND CARLISLE >
J7AJ7
2
1A
GLASGOW INTERNATIONAL AIRPORT
GLASGOW AIRPORTBUSINESS PARK
HILLINGTONINDUSTRIALESTATE
7
2
05
06
The subject property extends to a 3 unit modern industrial terrace with dedicated car parking to the front and communal secure yard to the rear. Access to and from each unit to the yard is provided via single electric roller door. Internally each unit offers high quality 2 storey office and toilet accommodation. Each unit provides an Eaves height of 7.22m (24 ft). The property has a site ratio of c.25% and an overall office content of 30%.
The yard area to the rear extends to approximately 33,000 sqft / 0.75 acres.
DESCRIPTION & SPECIFICATION
UN
ITS
A-C
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LA
SG
OW
AIR
PO
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BU
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S P
AR
K
ACCOMMODATION The properties have been measured by Malcolm Hollis in accordance with the RICS Code of Measuring Practice 6th Edition (2007) and provides the following Gross Internal Area (GIA). Reliance on this survey can be assigned to the purchaser.
Demise Sqm Sqft
Unit A FedEx 2,011.3 21,649
Unit B Vacant 1,625.3 17,495
Unit C Kuehne + Nagel Ltd 1,533.7 16,509
Total 5,170.3 55,653
SITE AREA
The property occupies a site extending to approximately 4.46 acres (1.80 ha).
ESTATE/SERVICE CHARGE
The property has a current service charge of £43,080 pa reflecting a rate of £0.77 psf. As part of the tenant’s obligations, they are required to pay a contribution to the upkeep of the larger park as through their service charge apportionment.
Indicative site plan only
TENURE
Heritable (Scottish equivalent of Freehold).
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TENANCY SCHEDULE
Demise Tenant GIA (sqft) Lease Start Lease End Break Rent £ psf Comments
Unit AFederal Express Europe Inc
21,649 12/11/2001 11/11/2020 - £153,470 £7.09Concession half rent until 11th May 2018 and then reverts to full rent of £153,470. This will be topped up by the vendor.
Unit B Vacant 17,495 - - - -
Unit C Kuehne + Nagel Ltd 16,509 12/11/2001 11/11/2020 11/11/2019 £100,940 £6.11
Total 55,653 £254,410
COVENANT INFO
FEDERAL EXPRESS EUROPE INC:
Federal Express Europe (FedEx) is the European, Middle East, Indian Subcontinent and African arm of the larger American multinational courier delivery services company. The European side of the firm employs 21,213 people and has 3,696 vehicles in the fleet.
KUEHNE + NAGEL LTD:
Kuehne + Nagel Ltd is a global transportation and logistics company based in Switzerland. Founded in 1890, Kuehne + Nagel Group has expanded to offer more than 1,300 offices in over 100 countries, with over 70,000 employees.
The property provides a Weighted Average Unexpired Lease Term (WAULT) of 2.66 years to breaks and 3.05 years to expiries.
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MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. October 2017
VENDORS SURVEY
The vendor has undertaken the following surveys, which can be relied upon by the purchaser for completion:
• Building and M&E• Phase 1 Environmental• Area Referencing
All surveys are available to view within the data room.
VAT
The property has been elected for VAT, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC).
EPC
An EPC can be provided to interested parties.
DATA ROOM
Further information is available within a data room, please contact Knight Frank to request access.
PROPOSAL
Offers are sought in excess of £2.40m exclusive of VAT for our client’s Heritable interest. A purchase at this level would reflect a NIY of 10.00% and a capital value of £43.12 psf.
FOR FURTHER INFORMATION PLEASE CONTACT
Patrick Ford Knight Frank LLP Partner – Capital Markets DD – 0141 566 0880 [email protected]
Douglas Binnie Knight Frank LLP Associate – Capital Markets DD – 0141 566 0885 [email protected]
Freddie Owen Knight Frank LLP Partner – Capital Markets DD - 0207 861 1225 [email protected]
Charlie Hobart Knight Frank LLP Partner – Capital Markets DD - 020 7861 1212 [email protected]
ACCOMPANYING SALE – CIRRUS, GLASGOW BUSINESS PARK, GLASGOW
Knight Frank have also been instructed by the vendor to market a modern multi-storey office development within Glasgow Airport Business Park. The asset is multi-let to Taylor Wimpey, Loganair and First Milk and is available either as a package with Units A-C or by separate enquiry. Further information can be provided to interested parties upon request.
