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Prospect HouseSilverdale Business Park, Silverdale, Newcastle Under Lyme ST5 6PA
INVESTMENT SUMMARY
n Located at the front of established business park
n European HQ building
n Lease renewal signed for further 5 year term from 25 March 2016
n Tenant – Sumitomo Electric Wiring Systems (Europe) Ltd
n Tenant has been in occupation since property was constructed in 1999
n Rent of £110,000 per annum (£5.18 per sqft)
n Asking price - £1,095,000
n Initial Yield – 9.5%.
n Underlying capital value - £51.58 per sqft
LOCATIONNewcastle under Lyme is an established town which forms part of The Potteries. The Potteries has a population of almost 400,000 and is located 45 miles north of Birmingham and a similar distance south of Manchester. The subject property is 2 miles north of Stoke on Trent city centre and 2 miles west of Hanley. Stafford is 17 miles south while Crewe is 14 miles to the north west.
The Potteries is served by Junctions 15 & 16 of the M6. The A500 runs through the area linking the two motorways junctions. Newcastle under Lyme’s main arterial road is the A34 which leads north-south through The Potteries.
The subject property is located a mile west of the A34 and ½ mile north of the A525. Keele University is located a mile to the south west. Lymedale Business Park is 3 miles to the north.
Other occupiers on the park include Fleet Operations HQ opposite, Options Management HQ to the rear of the property and P2P Logistics, Dalehall Body Repairs and Garners Warehouse.
DESCRIPTION
The subject property was constructed in 1999 and comprises two linked identical office/warehouse buildings. The front part of each unit comprises modern two storey offices and to the rear warehouse accommodation. The link provides a reception and staff facilities.
The office accommodation is a mix of open plan and partitioned offices with wc’s on both ground and first floor. The industrial accommodation is used for laboratories, testing and storage.
There is a car park to the front of the property, accessed off Cemetery Road and a large secure yard to the rear which has been marked up with 71 car spaces.
ACCOMMODATION
The property has been measured and extends to:
The overall site extends to 0.45 hectares ( 1.1 acres).
TENURE
Freehold.
TENANCY
The property is let to Sumitomo Electric Wiring Systems (Europe) Ltd, the tenant has signed a lease renewal from 25 March 2016 for a further 5 year term. The FRI lease is subject to a Schedule of Condition prepared back in 2011. No rent free was granted on the renewal.
The current rent passing is £110,000 per annum and the same rent will be payable from the commencement of the new lease which only reflects £5.18 per sqft on an overall basis.
sqm sqft
Ground Floor Offices 672.0 7,233
Warehouse 736.3 7,926
First Floor Offices 564.1 6,072
TOTAL 1,972.4 21,231
CONTACTSFor further information or if you wish to arrange a viewing, please contact :-
BEN BLACKWALL0121 513 [email protected]
Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.
Franck Steier Price Ltd
Third Floor, Victoria House
114-116 Colmore Row, Birmingham, B3 3BD
ANDREW PRICE0121 513 [email protected]
COVENANT
Sumitomo Electric Wiring Systems (Europe) Ltd
The business was acquired from Lucas SEI Wiring Systems in May 1999. The company operate from 50 sites throughout Europe and North Africa and employ over 20,000 people. The business manufactures and supplies fuse boxes and associated automotive components, main clients in the UK include Toyota, Nissan, Honda, VW and Renault. The ultimate company is Sumitomo Electric Industries Lid Inc in Japan.
Figures from the annual report and consolidated financial statements are summarised below.
PRICE
We are instructed to seek offers in excess of £1,095,000 which reflects an initial yield of 9.5%, based purchaser’s costs of 5.8% and an underlying capital value of £51.58 per sqft.
VAT
The property is elected for VAT and VAT would be payable on the purchase. The intention would be to sell as a TOGC.
EPC
The certificate is available on request. The unit’s energy performance rating is C-57.
31/03/2015(€’000s)
31/03/2014(€’000s)
31/03/2013(€’000s)
Turnover 693,249 615,812 559,746
Pre Tax Profit 8,323 15,532 (33,824)
Total Assets less Current Liabilities
272,171 296,821 286,043
Shareholders’ Funds 30,551 15,311 (15,997)
