The portfolio comprises a total of 70 units and is 100% occupied, let to 64 tenants in total reflecting diverse income, with no tenant reflecting more than 3.72% of the total income, and the top 10 tenants reflecting only 24.35% of the total income.
Majority of the income is contracted beyond 2031 and subject to upward only rent reviews, to the greater of OMV or the Retail Price Index with no cap or collar, offering a highly attractive running yield and significant index linked rental growth.
Total Floor Area of 126,071 sq ft across the three estates, with an average unit size of 1,801 sq ft.
All units have an EPC ratings of A and B, and are provided with a 10-year latent defects insurance backed
guarantee, offering future proofed assets.
Combined total passing rent of £1,345,300 per annum providing an average passing rent of £10.67psf.
The Portfolio provides 35 lease events within the first 3 years offering short term scope to capture rental growth.
Projected RPI linked rental growth provides a reversion to c. £1,667,333pa by 2031.
A combined WAULT of 8.7 years to expiry, and 3.3 years to breaks, and 3.2 years to reversion.
( Agency Pilot Software ref: 1524 )
Location
THE ASSETS ARE LOCATED ACROSS THE NORTH EAST OF ENGLAND, A REGION THAT IS CURRENTLY UNDERGOING A SIGNIFICANT TRANSFORMATION PROVOKED BY PUBLIC AND PRIVATE INVESTMENT AND REINFORCED BY ITS STRATEGIC LOCATION AS A GATEWAY TO EUROPE AND GLOBAL MARKETS
Accommodation
32,550 sq ft
Terms
PROPOSAL We are instructed to seek offers of £21,000,000 (Twenty One Million Pounds) Subject to Contract and Exclusive of VAT. This reflects a Net Initial Yield of 6.00% after allowing for purchaser’s costs of 6.75%.
Property Type
Construction Date Site Area (Site Density) Total Floor Area (GIA)
Number of Units Unit Floor Area (GIA)
Void WAULT LIGHT INDUSTRIAL
Practical Completion 2024 4.23 acres / 31.40% 57,871 sq ft 26 871 sq ft – 4,280 sq ft 0% 8.58yrs WAULT / 3.53yrs
WAULTC Passing Rent £627,300 per annum / £10.84psf
Rent Review Mechanisms Proportion of Portfolio Upward Only - Higher of OMV or Uncapped RPI Represents 46.63% of the Portfolio Income
Specification
- 26 units providing 57,871 sq ft on a 4.23 acre site reflecting a low site cover of only 31.40%
- 11no. industrial hybrid units 1,550 sq ft
- 14no. warehouse units from 871 sq ft – 4,280 sq ft
- The restored Lemington glass cone, repurposed as a unique commercial unit
- Steel frame construction
- Composite cladding roof and masonry elevations