The property comprises three self-contained, single storey factory/warehouse units, probably constructed 35 - 40 years ago. Each building consists of a single storey warehouse together with two storey ancillary office accommodation to the front.
Unit 14 is occupied in conjunction with the adjacent unit not forming part of this sale. The other two units have been combined and occupied for manufacturing purposes.
These properties are of concrete, portal frame construction with an eaves height of 7.3 metres together with satisfactory loading for servicing, large roller shutter doors and good yard space.
Location
Leicestershire is located at the heart of the UK and benefits from easy access to regional, national and international markets. Its connectivity offers businesses direct access to a large and high quality workforce of circa 371,000.
Due to Leicestershire’s position in the centre of the United Kingdom, it has become a prime distribution location within close proximity to the M69, A5 and M6.
It is located near the following towns: Hinckley (4 miles), Nuneaton (8 miles), Leicester (12 miles), Coventry (18 miles) and Birmingham (30 miles). The subject property is approximately 15 minutes drive time from the A5 and M69 (J1).
Moat Way is a modern industrial estate which has a high level of occupancy, currently and over the last 3 years at 100%. The estate is located just off Ashby Road (A447), directly off the distributor road, close to the town centre.
This property is situated on the northern side of Moat Way surrounded by mixed commercial premises, all of which are occupied for warehousing, distribution and manufacturing purposes.
Accommodation
The accommodation of the property is as follows:-
Unit 14
Warehouse - 706.78 sq m (7,608 sq ft)
First Floor - 52.48 sq m (565 sq ft)
Sub-Total - 759.27 sq m (8,173 sq ft)
Unit 15
Warehouse - 707.89 sq m (7,620 sq ft)
First Floor - 31.77 sq m (342 sq ft)
Sub-Total - 1,498.93 sq m (16,135 sq ft)
Unit 16
Warehouse - 711.05sq m (7,654 sq ft)
First Floor - 216.92 sq m (2,335sq ft)
Total - 2,426.91 (26,124 sq ft)
The tenants of Units 15 and 16 have undertaken a lot of alterations and created a further mezzanine floor. These are all tenant’s improvements excluded from the net area for the purposes of calculating the rent payable.
Terms
EPC:
14 Moat Way - Band E, 108
15 Moat Way - Band D, 94
16 Moat Way - Band D, 96
Tenure - Freehold.
Tenancies - No 14 is let to Bachmann Europe Limited on a reversionary lease from 01.10.2020 expiring in 2025 at a rent of £XXX per annum (£XXX).
Nos 15 and 16 are let to Brookes Jordan for a term of 5 years from 29th September 2020, expiring on 28th September 2025, on a rising rent basis as follows:-
29 September 2020 - £XXX pa (£XXX)
24 March 2021 - £XXX pa (£XXX)
29 September 2021 - £XXX pa (£XXX)
29 September 2022 - £XXX pa (£XXX)
29 September 2023-2025 - £XXX pa (£XXX)
Rental Value - The rent on No 14 equates to £XXX per ft². The rent on Nos 15 - 16 varies between £XXX up to £XXX per ft².
We assess the rental value of No 14 at £XXX per annum (£XXX per ft²) and the rental value of Nos 15-16 at £XXX per annum (£XXX per ft²).
NB The lease to Brookes Jordan, commencing 29th September 2020, originally expired on 24th June 2020. Due to COVID-19 the renewal negotiations took place at that time and the new lease commenced as at 29th September 2020 on a rising rent basis. The rents passing equate to £XXX £XXX £XXX and £XXX per ft².
Directly opposite the subject property, 29 Moat Way is being sold on the basis of a sale and lease back for a building of 62,245 ft² (5,782.71 m²) at a rent equating to £XXX per ft². Further details are available upon request.
Tenant’s Covenant:
Bachmann Europe Limited:
Risk score – 100/100
Risk - very low risk
Credit limit - £XXX
Credit Rating - £XXX
The manufacture of games and toys with the principal activity being the sale of model railway products to retail outlets. The Ultimate Holding Company is Kader Holdings Company Limited domiciled in China.
Brookes Jordan Limited:
Risk score – 83/100
Risk - low risk
Credit limit - £XXX
Credit Rating - £XXX
They are engaged in the manufacture of knit and crocheted pullovers and specialise in providing major Premier League Football Clubs with their individually designed scarves.
Leases and Credit Checks - Copies of the Leases, EPCs and Credit Checks are available upon request.
Price - Offers are invited at:- £XXX to show an initial yield of 5.86% (as at 29th September 2021) and a reversionary yield of 6.75% net of costs. This equates to a figure of £XXX per ft².
VAT - The property is elected for VAT and the sale will be as a TOGC.
Legal Costs - Each side to be responsible for their own costs.
Specification
- Strong reversionary income
- Long established tenants
- Situated in a prime distribution location within close proximity to the M69, A5 and M6
- Offers invited at £XXX to show an initial yield of 5.86% (as at 29th September 2021) and a reversionary yield of 6.75% net of costs @ 5.56%