Summary
Highly Reversionary Distribution Investment Opportunity
Investment Summary
• Well specified distribution warehouse totalling 199,384 sq ft.
• Site area of approximately 20.49 acres representing a low site density of only 21.54%.
• The building is Imperial Tobacco’s only UK distribution facility.
• The property is situated within an established prime industrial location, with excellent access to the region’s major road networks.
• Held long leasehold over 2 titles, each with over 950 years unexpired.
• The current ground rent is £19,728 per annum.
• The property is let on a 5 year lease from 12 June 2017 with a tenant break at year 3 subject to 12 months’ notice.
• Initial rent £697,844 per annum (£3.50 per sq ft). Our opinion of Market Rental Value is £996,920 per annum (£5.00 per sq ft).
• Potential to extend the existing building or undertake further development on site.
Proposal
We are instructed to seek offers in excess of £8,000,000 subject to contract and exclusive of VAT, for our client’s long leasehold interests. A purchase at this level reflects an attractive Net Initial Yield of 7.95% exclusive of usual purchaser’s costs and a low capital value of only £40 per sq ft.