INVESTMENT MODERN TRADE MAGNUM TRADE PARK, FOR …kingstreetcommercial.com/wp-content/...Brochure_AW.pdf · terraces. The 11 units are set around a central courtyard complete with

INVESTMENT MODERN TRADECOUNTER SCHEMEFOR SALE

MAGNUM TRADE PARK, ROCHDALE, OL16 5NP

Plumbing Trade SuppliesE L E C T R I C A L � � � � � �

PLUMBASE

Plumbing Trade SuppliesE L E C T R I C A L � � � � � �

PLUMBASE

INVESTMENT SUMMARYAn established and purpose built trade counter investment split over 11 units and totalling 40,630 sq ft.

The primary bespoke trade counter scheme in Rochdale.

Let to established trade occupiers including PTS, Screwfix, Toolstation, Crown Paints and Edmundson Electrical.

A highly accessible location on the edge of Rochdale town centre with strong visibility fronting onto Milnrow Road (A460).

A total passing rent of £307,456 per annum (£7.56 per sq ft). This reflects favourably to purpose built trade counter rents in the northwest which are achieving £10 per sq ft.

An average weighted unexpired lease term of 6.1 years (5 years to break).

Freehold.

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We are instructed to seek offers in excess of £4,750,000 subject to contract and exclusive of VAT. Net of purchaser costs of 6.58%, a purchase at this level reflects a Net Initial Yield of 6.07%.

Located in Rochdale, Greater Manchester, Magnum Trade Park occupies a highly accessible and visible location fronting the A460. The property benefits from a strong critical mass created by eight national trade counter occupiers.

INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION TENANCIES COVENANTGALLERY TRADE COUNTER MARKET FURTHER INFORMATION


Greater Manchester

Rochdale is one of the 10 boroughs which form the Greater Manchester conurbation. Greater Manchester has an area of 1,277 sq km (493 sq miles) and a population of circa 2,750,000 people, making it the second most populous urban area in the UK.

Greater Manchester is the focal point of the UK government’s 'Northern Powerhouse’ initiative to boost economic growth and trade in the North of England. The proposal involves improvement of transport links, investment in science and innovation and continued devolution of powers to the City regions.

The initial announcements include devolving housing, transport and planning policies, as well as proposals for HS2 and HS3 high speed and electrified rail links. In total approximately it is anticipated £13 billion will be invested in transport infrastructure.

Rochdale

Rochdale is a major market town situated approximately 16km (10 miles) north of Manchester City Centre and 9km (5.5 miles) north west of Oldham. The town benefits from excellent communications with direct access to the M62 Motorway and both the M66 and M60 (Manchester Orbital) Motorways are within 15 minutes’ drive of the town centre. The borough has a population of 211,700 with the town itself having a population of approximately 95,800.

The town is served by Metrolink light rail system and is situated 0.5 miles to the north of Magnum Trade Park. Services run every 12 minutes providing access throughout neighbouring boroughs and the Greater Manchester region. Rochdale Railway Station, located 0.6 miles to the west of Magnum Trade Park, also offers direct services to and from Manchester Victoria Station with a quickest journey time of circa 16 minutes.

Rochdale is currently seeing significant capital investment and undergoing a rapid change. As part of the £250m regeneration of the town centre, Rochdale Borough Council (in partnership with Genr8 and M&G) are currently on site delivering Phase 1 which is a significant new 200,000 sq ft retail and leisure scheme. The scheme will be anchored by M&S, Reel Cinemas, H&M, Next, River Island, JD and Boots. The scheme is due to open in Easter 2020.

As a borough, Rochdale has amongst the highest registered number of SMEs in Greater Manchester with the predominant employer in Rochdale Borough being manufacturing (16.7%).


M62

17

15

13

12

3

2

2

1

3

2

3

4

11

10

9

14

16

18

19

19

20

20

21

21

22

22

23

24 1A 23

4

M60M60

M61

M62

M62A627(M)M66

M66

M60

M60

M57

M602

A57(M)

ROCHDA L E

MANCHE S T ER

B U R Y H E Y W O O D

LEEDS (32 MILES)

B O L T O N

O L D H A MC H A D D E R T O N

S A L F O R D

E C C L E S

S W I N T O N

U R M S T O N

W O R S L E Y P E N D L E B U R Y F A I L S W O R T H

S T R E T F O R D

A S H T O N - U N D E R - L Y N E

P R E S T W I C H

M I D D L E T O N

BANGOR

Water St

John St Molesw

orth St

Lincoln St

Crawford St

B6194

Turf Hill Road

Kiln La

ne

Wild

hous

e L

ane

Lower L

ane

Bu

ckle

y Hill

Lane

Dra

ke St

B6266

An

n St

M ilkstone Road

King Street East

Ca

stlem

ere

St

Ashfie

ld Road

Queen Victoria St

John

Miln

e A

ve

Dale St N

ewhey Road

Bentgate Street

Kiln Lane

Wa

ithla

nds Road

B6266

A58

A664A664

A6193

A664

A640

A671

A640

A640

A640

ROCHDALETOWN CENTRE

M62

Fish

wic

k St

21

MAGNUMTRADE PARK

SITUATIONMagnum Trade Park is the only purpose built trade park location in Rochdale and enjoys direct frontage to the arterial A640 Milnrow Road in the east of Rochdale.

The property occupies a prominent corner location in a well-established commercial/industrial location and is approximately 0.6 miles east of Rochdale town centre and 2 miles from Junction 21 M62.


Steel portal frame

Mono pitched insulated profile steel clad roof

Part brick/part steel clad front elevations

Electrically operated loading doors

6m eaves

Sealed concrete floors

Aluminum powder coated double glazed windows

The property comprises a modern purpose built trade park arranged in two terraces. The 11 units are set around a central courtyard complete with additional parking to the rear of Block A. The specification can be summarised as follows:

DESCRIPTION

The property is set within a secure site and benefits from perimeter fencing. The site further benefits from mature landscaping to the perimeter and a large central courtyard for loading/parking. Access is obtained via a gated entrance off Fishwick Street.

The site extends to 2.52 acres (1.02 ha) providing a low site cover of 38%.

SITE

B2/B8 use with trade counter.

PLANNING

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E L E C T R I C A L

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PLUMBASE

VACANT

MILNROW ROAD (A460)

MAGNUMBUSINESS CENTRE

BILBERRY ST

ACCESS

Unit

1

2 & 3

4

5

6 & 7

8

9

10

11

TOTAL

Tenant Sq Ft

3,779

7,446

3,635

5,550

5,629

4,187

3,650

2,697

4,057

40,630

Lease Start

17/12/18

25/02/18

19/10/18

05/05/19

10/10/11

13/09/10

20/12/07

13/08/18

Lease Expiry

16/12/28

24/02/28

18/10/23

04/05/29

09/10/21

12/09/20

19/12/22

12/08/28

Break date

16/12/24

04/05/24

N/A (historic tenant break 09/10/2016 was not exercised)

OMV upwards only RR at Y5 (16/12/2023).



OMV upwards only RR at Y5 (25 February 2023).

Rent, rates, service charge guarantee for 18 months. Corner unit, restricted frontage.



Rent (£ pa)

£30,200

£59,568

£29,080

£44,461

£42,214

£21,982

£27,375

£21,576

£31,000

£307,456

Rent (£ psf)

£7.99

£8.00

£8.00

£8.01

£7.50

£5.25

£7.50

£8.00

£7.64

Comments

E L E C T R I C A L

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PLUMBASE

TENANCIESThe property is multi-let to eight tenants on the terms outlined in the tenancy schedule. The leases are effectively on fully repairing and insuring terms with the costs for repair and maintenance of common parts being recovered via a service charge (2019 budget – £1.42 per sq ft).

The average unexpired lease term to expiry is 6.1 years (5 years to break).

Several tenants have constructed mezzanines internally by way of consented improvements and these have been excluded from the accommodation figures provided below.

VACANT

City Plumbing Supplies Holdings Limited

Screwfix Direct Limited

Eurocell BuildingPlastics Limited

J.P. McDougall & Co.Limited T/A Dulux

ToolstationLimited

EdmundsonElectrical Limited

Plumbase Limited

Crown PaintsLimited


City Plumbing Supplies Holdings Limited (02489546)

The company has the top D&B Rating of ‘5A1’ indicating minimum risk.

City Plumbing Supplies is a national plumbing and heating supplier for the trade with a network of over 300 branches throughout the UK. The company is part of the Travis Perkins Plc and it has successful been trading for over 30 years.

For further information please visit www.cityplumbing.co.uk

Turnover

Profit (Loss)/Before Tax

Net Worth

Shareholder’s Funds

31/01/18 In Thousands (£)

637,000

2,700

136,200

195,400


586,600

1,600

192,000

192,000


568,500

3,700

190,800

190,800

Turnover


Net Worth



1,527,092

171,523

569,587

572,606


1,306,018

118,448

442,196

449,161


1,057,373

91,053

348,231

358,687

Turnover


Net Worth



128,865

5,875

9,773

9,847


128,865

5,875

9,773

9,847


102,661

7,016

8,684

8,993

Turnover


Net Worth



300,401

21,511

45,367

45,367


257,907

18,815

28,053

28,053


225,818

17,198

13,063

13,063

Screwfix Direct Limited (03006378)


Screwfix is the UK’s largest multi-channel retailer of trade tools, accessories and hardware products with over 32,000 product lines. The company was founded in 1979 and currently has a network of over 630 stores across the UK. Screwfix is part of Kingfisher plc with over 1,200 stores across 10 countries including Europe, Russia and Turkey.

For further information please visit www.screwfix.com

Eurocell Building Plastics Limited (03071407)

The company has a D&B Rating of ‘3A1’ indicating minimum risk.

Eurocell is a leading manufacturer, distributor and recycler of building products operating a nationwide network of more than 190 branches. The company supplies a complete range of PVC-U products together with all fixings, sealants and tools required for every building plastics job.

For further information please visit www.eurocell.co.uk

Toolstation Limited (04372131)


Toolstation is one of Britain’s fastest growing suppliers of tools, accessories and building supplies to the trade, home improvers and self-builders. The company has over 300 branches nationwide, open 7 days a week.

For further information please visit www.toolstation.com

COVENANTThe property boasts an excellent tenant line up with 92% of the occupied space having a Minimum Risk of business failure (D&B).


J.P. McDougall & Co. Limited T/A Dulux (00254941)

The company has a D&B Rating of 'N1' indicating negative net worth but minimal risk of business failure.

J.P. McDougall & Co. Limited operates decorator stores throughout the UK trading as Dulux Decorator Centres. The company has been trading paints, wall covering and associated decorative products for over 88 years.

Edmundson Electrical Limited (02667012)


Edmundson Electrical is an electrical distribution and serves both the trade and to the public. The company has over 300 stores throughout the UK and also has a significant presence in the Middle East through an associated company.

For further information please visit www.edmundson-electrical.co.uk

Plumbase Limited (00181691)

The company has a D&B Rating of '2A' (risk factor undetermined at the time of sale)

Plumbase is a national plumber’s merchant supplying plumbing and heating products, bathrooms and renewables. The company was founded over 155 years and now has 163 stores across the UK.

For further information please visit www.plumbase.co.uk

Crown Paints Limited (06624576)

The company has a D&B Rating of ‘4A1’ indicating minimum risk.

Crown Paints is one of the largest and most successful paint manufacturers and retailers in the UK. The company was founded in 1777 and has over 130 stores across the UK.

For further information please visit www.crownpaints.co.uk

COVENANTThe property boasts an excellent tenant line up with 92% of the occupied space having a Minimum Risk of business failure (D&B).

E L E C T R I C A L

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PLUMBASE

Turnover


Net Worth



164,902

(1,867)

(46,404)

(36,984)


169,749

5,462

(60,857)

(50,722)


167,759

5,324

(42,867)

(31,588)

Turnover


Net Worth



1,263,885

63,470

386,435

386,435


1,268,458

61,138

368,681

368,681


1,268,392

72,771

358,003

358,003


Net Worth



(22)

1,912

1,912


(59)

1,934

1,934


(57)

1,993

1,993

Turnover


Net Worth



164,603

9,885

16,810

17,436


173,824

15,858

15,064

15,973


187,747

23,312

18,351

19,088


TRADE COUNTER MARKETInvestor appetite for well located, purpose built trade counter properties remains extremely buoyant. Investors are attracted to the sector due to the long term income security provided by national occupiers and a nationwide demand/supply imbalance of trade counter units.

Typically, trade counter properties have outperformed more traditional multi-let industrial estates and this looks set to continue due to longer leases, stronger covenants, improved rental growth prospects and minimal transience of trade occupiers.

Recent evidence indicates that prime trade counter rents in the northwest currently sit at £10 per sq ft.

TRADE COUNTER INVESTMENT COMPARABLES – NATIONAL

Town

Sydenham

Plymouth

Stockport

Coventry

Cheltenham

Ipswich

Leeds

Coventry

Property

Bell Green Trade City

Cot Hill Trading Estate

Bredbury 25Trade Park

PilotTrade Park

Kingsditch Trading Estate

Quantum Business Park

College Trade Park

Vantage Park

Price

£14.65m

£5.97m

£5.65m

£5.2m

£20.5m

£4.2m

£10m

£5.07m

Price (Psf)

£267

£93

£123

£168

£149

£167

£127

£202

NIY

4.30%

6.07%

N/A

5.59%

5.30%

5.70%

5.10%

5.40%

Date

April 2019

April 2019

Nov 2018

Oct 2018

June 2018

May 2018

March 2018

Dec 2017

Size (Sq Ft)

54,917

64,412

45,995

31,000

137,942

25,200

78,835

25,000

Purchaser

John Lyons Charity

Plymouth City Council

IOAM

Threadneedle

L&G (IPIF)

St John’s

St Brides

Schroder’s

Comments

Greater London location. A modern 11 unit trade counter development with a strong trade counter tenant line-up.

4 newly developed trade counter units let on long leases to national occupiers.

Modern trade counter comprising 4 units let to national tenants. 8 years AWULT to break.

Forward commitment with 80% pre-let to national tenants. 3% vacancy.

28 trade / light industrial units, mixture of quality.

Newly developed trade park let to a range of national occupiers.

New build estate, 9 units, 8 sold with vacant possession and no rental guarantee's

Multi-let trade park/industrial estate. Not purpose built and older accommodation.


CONTACTMatt Cox MRICS 0161 850 049807788 99 99 [email protected]

Ted Murray MRICS 0161 850 049707766 00 33 22 [email protected]

Beth Galvin LLB0161 850 977107775 87 56 [email protected]

FURTHER INFORMATIONVAT

The properties are elected for VAT although it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

DATASITE

A Datasite has been set up to provide further information. Access can be arranged upon request.

EPC

Available upon request.

ANTI-MONEY LAUNDERING REGULATIONS

In accordance with Anti-Money Laundering Regulations, evidence of identity and source of funding will be required from the successful purchaser prior to instructing solicitors.

PROPOSAL

We are instructed to seek offers in excess of £4,750,000 subject to contract and exclusive of VAT. Net of purchaser costs of 6.58%, a purchase at this level reflects a Net Initial Yield of 6.07%.

WWW.KINGSTREETCOMMERCIAL.COMSubject to contract – June 2019

IMPORTANT NOTICE. MISREPRESENTATION ACT 1967. KING STREET COMMERCIAL, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT:

These particulars do not constitute, nor constitute any part of, an offer or contract. King Street Commercial Ltd and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations.

Neither King Street Commercial nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. Unless otherwise stated all prices and rents are quoted exclusive of Value Added Tax (VAT), any intending purchasers or lessees must satisfy themselves independently as to the incidence of vat in respect of any transaction.

0161 387 7252


[email protected]

[email protected]

[email protected]

WWW.KINGSTREETCOMMERCIAL.COM

http://www.blaze-marketing.co.uk

http://www.kingstreetcommercial.com

http://www.kingstreetcommercial.com

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Documents

INVESTMENT MODERN TRADE MAGNUM TRADE PARK, FOR …kingstreetcommercial.com/wp-content/...Brochure_AW.pdf · terraces. The 11 units are set around a central courtyard complete with