Hi-Lex, Baglan Energy Park, Central Avenue, Port Talbot, SA12 7AX

Summary

High Yielding Single Let Investment Opportunity

Location

The property is located on Baglan Energy Park approximately 3 miles north west of PortTalbot town centre and alongside the M4. Totalling 180 acres the Energy Park is a well-established, private and public sectorinitiative led by St. Modwen, Neath Port Talbot Council and the Welsh Government. The Energy Park has attracted major projects with the GE combined-cycle gas turbine power plant approved in the late 1990s (opened 2003)andSofidel (800,000 sq ft opened in circa 2005). The on-site power plant can provide competitively priced electricity to businesses on the Park and nearby occupiers include SARPAK, RB, Montagne Jenuesse, ECOLAB and Netalogue.

The Energy Park and the subject property are located within the Port Talbot Waterfront Enterprise Zone and an area known as West Wales and the Valleys which is currently eligible for thehighest level of grant and other financial assistance within the European Union (Convergence Programme 2014/2020).

Investment Summary

• Modern ‘BREEAM’ Excellent detached industrial unit with a total gross internal area of 95,517 sq ft (8,873.69 sq m)
• Site area of approximately 3.324 ha (8.21 acres) which provides a low site cover of only 23%
• Strategic location with easy access to the M4 motorway via Junction 41 
• Long-leasehold at a peppercorn, expiry 2125
• Let to Hi-Lex Cable System Co. Ltd with surety from Hi-Lex Corporation
• Tenant’s FRI lease for a term of 15 years from 28 November 2003, with a revisionary lease extending the term by 2 years, expiring 27 November 2020
• Current rental income £351,937 per annum
• Offers sought in excess of £2,750,000 (Two Million Severn Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would equate to a net initial yield of 12.03% after allowing for purchaser’s costs of 6.42%

Location