An industrial/warehouse/trade counter comprising a two storey office building and adjoining warehouse section totalling approximately 10,553 sq ft with a large enclosed yard of approximately 0.79 acres/34,000 sq ft situated to the south of the buildings. Total site area is approximately 1.31 acres.
There is a small office content comprised mainly of partitioned offices with a boardroom, kitchen and WC facilities at first floor. The ground floor is used as a trade counter. The warehouse section opens directly onto the yard with an additional loading door at the front. There is a weighbridge to the east of the property (not tested).
( Agency Pilot Software ref: 10070 )
Location
The property is located in South Heighton, to the north of Newhaven, adjacent to the Old Cement Works Industrial Estate and is accessed via The Hollow. The A26 Road runs north from Newhaven to link to the A27 and Lewes, which is approximately 9 miles northwest, with Brighton and Eastbourne being approximately 10 miles and 14 miles to the west and east respectively.
Accommodation
Warehouse 2,055 sq ft
Yard/open storage 2,500 sqft
Terms
COVENANTS Independent Roofing Supplies Ltd (IRSL) report, at the date of the last published accounts of December 2021, Net Assets / Shareholders Funds of £1,005,204. IRSL are owned by Parkers Building Supplies Ltd who, as at 31/12/2020, had a turnover of c. £75m and net profits after tax of c. £1.2m and Net Assets/Shareholders Funds of c. £3.8m. Parkers are not a party to the lease. Idverde Ltd, as at 31/12/2021 report T/O of £111,295,000 and Net Assets/Total Equity of £25,102,000. Idverde is a provider of multiple specialist green services: delivering grounds maintenance, agriculture, cleansing, park management and consultancy, facilities management and other services.
FLOOD REPORT A generic flood report from the government website is shown in the data room showing the property to be in flood zone 3. The vendor has owned the site since 2014 and report no issues with flooding or procuring insurance.
RENT REVIEW 2027 As you can see from the table below, the property has the potential in 2027 to yield a rent of £154,481.
PROPOSAL Offers are invited in excess of £1,175,000. A purchase at this level will show a net initial yield of 8.5% after allowing for standard purchaser’s costs. If the rent rises to £154,481, the reversionary yield after May 2027 could then be in excess of 12%.
EPC The property has an EPC rating of D.
Specification
• Highly Reversionary freehold trade counter well located close to the A26.
• Large secure yard at rear.
• Parking at front for 12 cars.
• Total site area is circa 1.31 acres.
• Multi-let, producing £105,875 pa.
• Used as a “Hub Centre” for Builders Merchants and store for Idverde Ltd.
• OIEO £1,175,000 reflecting a net initial yield of 8.5%.
• Potential reversionary yield over 12%.