crown industrial estate - tudor toone · aunton is the county town and the commercial and...

CROWN INDUSTRIAL ESTATE TAUNTON TA2 8QY

MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY

CROWN INDUSTRIAL ESTATE

Exeter & South WestTo A303

Bristol, M4, Wales & Birmingham

M5

A358

A358

A358

M5

Crown Medical Centre

ASDA Superstore

Venture Way

Beehive Self-storage

Dfs

DAF

Jewson

Peugeot Ford

M5 Junction 25


INVESTMENT SUMMARY

Taunton is the county town and the commercial and administrative centre for Somerset.

The Crown Industrial Estate is a popular industrial, warehouse and trade counter development within the established Priorswood Industrial Area.

First time the estate has come to the market.

Developed during the 1970s, the estate extends to approximately 12.4 hectares (30.7 acres) and comprises 28,805.64 sq m (310,061 sq ft) gross internal area, excluding the non income producing long leasehold units.

Predominately industrial based asset comprising 32 buildings with uses including:

Industrial/warehouse units Trade counter units DVLA test centre Medical centre Development land

Six units have been sold off on a long leasehold basis, four of which produce £139,732 per annum and have in excess of 60 years unexpired.

The estate is currently let to 24 tenants. WAULT of approximately 17.75 years to lease expiries and 12.75 years to breaks. Excluding the long leasehold income, the WAULT is 10.2 years to expiries and 5.1 years to breaks.

Extensive asset management opportunities including lease renewals, lease re-gears, rent reviews, letting vacant accommodation and the development of two sites, subject to planning, to create future value enhancement.

The investment currently generates a rental income of £1,176,452 per annum including rent guarantees and top-ups.

We are instructed to seek offers in excess of £15,355,000 (Fifteen Million, Three Hundred and Fifty Five Thousand Pounds).

An acquisition at this level reflects an attractive net initial yield of 7.5%, after purchaser’s costs of 5.80%, and apportioning £525,000 to the development land.

Units 2-5 & 14-17 Crown Close

Units E1 & E2 Debenhams Properties Ltd

VENTURE WAY I TAUNTON I TA2 8QY

LOCATION

Taunton is the county town of Somerset and provides the county’s principal retailing and administrative centre. Located 78km (49 miles) south-west of Bristol, 58km (36 miles) north-east of Exeter and 245km (153 miles) west of London, motorway access is via Junction 25 of the M5 motorway. The town also lies at the convergence of the county’s trunk road network being served by the A358, A38 and A361.

Taunton’s mainline railway station provides direct rail links to London Paddington (1 hour 43 minutes), Bristol (35 minutes) and Exeter (25 minutes). Bristol International Airport is located approximately 58km (36 miles) to the north, whilst Exeter Airport is approximately 50km (31 miles) to the south west.

TAUNTON

M5

M5

M4

A35

A37

A37

A38

A36

A35A30

A30

A303

A303

A358

A39

A361

A377

Bristol Channel

25

23

22

21

20

19

18

15/2022

1918

MineheadMinehead

BridgwaterBridgwater

BRISTOLBRISTOL

BATH

YEOVIL

EXMOUTH

EXETEREXETER

Bridport

SidmouthDorchesterDorchester

Shepton MalletShepton Mallet

Weston-super-mare

Weston-super-mare

M5

25

A358

TONEWAY

A358

A

35

8

PRIORSWOOD ROAD

A325

9 PRIORSWOOD ROAD

A38

B

RIDG

EWAT

ER R

OAD

BR

IDG

EWAT

ER R

OA

D

LISIEUX WAY

VENTU

RE WAY

HAMILTON ROAD

PRI O R SWOOD ROAD

NERROLS DRIVE

KIN

GSTON ROAD A

3038

PRIO RY BRIDGE ROADA3027 EAST STREET A38

HOLWAY ROAD

UPPER HIG H STREET

SOUTH ROAD

T A U N T O N

Taunton

SITUATION

The Crown Industrial Estate is situated approximately 2.4km (1.5 miles) to the north-east of Taunton town centre, within the established Priorswood Industrial Area, a popular industrial and trade counter location due to its close proximity to the town centre and the M5 motorway. Both Taunton town centre and J25 of the M5 motorway are within easy reach of the estate. Access to the estate is obtained from Junction 25 of the M5 motorway via the A358 and in turn the Priorswood Road which connects with Venture Way, forming the main estate spine road.

Infrastructure improvements are set to benefit the local area with the £21m construction of the 1.6km Northern Inner Distributor Road, scheduled for completion in Spring 2015.

CrownIndustrial Estate

CrownIndustrial Estate


Drain

Station

Pum

ping

Path

MP

162.25

El S

ub Sta

Ppg S

ta

Recycling C

entre

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Sub

Sta

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CSW

ard Bdy

SC

Def

Sinks

Pond

Sinks

Drain

Bridg

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Issues

13.1mMS

LB

Towing Path

VENTURE WAY

PRIORSW

OO

D ROAD

Playground

78

2

38

44

35

s Cottages77

8

75

6

31

5962

41

1

77

71

5

67

1

2

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MonarchCentre

CrownClose

VENTURE WAY

VENTU

RE W

AY

18

17

16

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14

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10

6

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1

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E1

E2

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F1

F2

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1.5 acreDevelopment

Site

DrivingTest

Centre0.6 acre

DevelopmentSite

N

M

J

1

C

Long Leasehold - income producing

Long Leasehold - non income producing

DVLA Test Centre


Development Site

Freehold Industrial


ACCOMMODATION

The estate provides a total of approximately 28,805.64 sq m (310,061 sq ft) Gross Internal Area of accommodation arranged in 32 buildings. In addition to this two units have been sold off on a long leasehold basis and are non income producing and are excluded from the floor area. A further four long leasehold units are income producing and are included within the total floor area.

The unit sizes range from 89.0 sq m to 5,746.15 sq m (958 sq ft to 61,851 sq ft), with the two largest units occupied by Retail Investors Ltd and Debenhams Properties Ltd. Included within the estate is The Crown Medical Centre, Taunton Driving Test Centre and two development sites totalling approximately 2.1 acres.

DESCRIPTION

The Crown Industrial Estate comprises a range of light industrial/warehouse units situated around a central spine road known as Venture Way. The estate also includes The Crown Medical Centre, Taunton Driving Test Centre, and two development sites which total approximately 2.1 acres.

The majority of the industrial units are of steel portal frame construction under pitched roofs, with brick and steel cladding to the elevations.

SITE AREA

The estate comprises a total area of approximately 12.4 hectares (30.7 acres) including the two development sites, which comprise approximately 0.6 hectares and 0.24 hectares (1.5 acres and 0.6 acres) respectively.

% OF TOTAL ACCOMMODATION BY USE (SQ FT)

1% DVLA Test Centre(excludes site area)

3% Crown Medical Centre

46% Long Leasehold industrial units

50% Freehold industrial warehouse/trade counter units


Units 6-8 Crown Close Units E & F Venture Way

Crown Close The Crown Medical Centre


Units 11-13 Crown CloseUnits 14 & 15 Crown Close

Development Land Plot 1 (1.5 acres) with DVLA Test Centre to the rearUnits E & F Venture Way


TENURE

Freehold. Venture Way, the main thoroughfare and principal estate road is adopted and consequently maintainable by the local highway authority.

Drain

StationPumping

Path

VENTURE WAY

MP 162.25

SL

El Sub Sta

Ppg Sta

Crown Industrial

Crown Industrial Estate

1

5

J

6

1

Priorswood

10

N

14

Industrial Estate

3

3b3a

Monarch Centre

Recycling Centre

El

Sub

Sta

Sta

Sub

El

M

9

Crown Close

18

2b2a

Driving

Test

Centre

4

CSWard Bdy

S

SC

Def

SinksPond

Sinks

Drain

Bridg

Drain

Issues

13.1m

MS

LB

Towing Path VEN

TUR

E W

AY

Playground

Estate

78

2

38

44

E

35

F

e's Cottages

77

8

75

6

Medical Centre

C

G

31

5962

41

1

77

71

5

7

67

1

2

45

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2014. All rights reserved. Licence number 100022432. Plotted Scale - 1:3297

TENANCY INFORMATION

The property is let in accordance with the tenancy schedule and currently produces £1,176,452 per annum including rent guarantees and top ups.

The weighted average unexpired lease term is approximately 17.75 years to expiries and 12.75 years to breaks. Excluding the long leasehold income the WAULT is approximately 10.2 years to expiries and 5.1 years to breaks.

There is currently one vacant unit and two units where break options have been exercised and the vendor proposes to top up the rental income for these units by way of a 2 year rent, rates and service charge guarantee.

USE BY CONTRACTED INCOME


13% DVLA Test Centre

12% Crown Medical Centre

12% Long Leasehold industrial units

63% Freehold industrial warehouse/trade counter units

Address Tenant Area (sq m)

Area (sq ft)

Start Date Expiry Date Break Clause

Next Rent Review

Rent passing per annum

Rent Passing per sq ft

Comment

Crown Close - Taunton

Unit 1 Crown Close Unipart Automotive Ltd 401.99 4,327 07/12/2013 06/12/2023 07/12/2018 07/12/2018 £22,750 £5.26 Tenant break clause on not less than 6 months notice. Tenant in administration. Lease currently being assigned.

Unit 2 Crown Close Vacant - Under offer 396.32 4,266 N/A N/A N/A N/A £22,397 £5.25 Under offer, 5 year term with 3rd year break clause. Vendor to provide 2 year rent, rates and service charge guarantee if lease does not complete.

Unit 3 Crown Close Normandy Windows Ltd 398.65 4,291 23/03/2005 22/03/2015 N/A 23/03/2010 £19,275 £4.49 Offer received. Further information available upon request.

Unit 4/5 Crown Close Panther Warehousing Plc 801.01 8,622 28/02/2014 27/02/2019 28/02/2017 N/A £42,440 £4.92 Tenant break clause on not less than 6 months notice. Rent deposit of £25,464. Concessionary rent for Year 1 of £31,830. Vendor to top up Year 1 concession rent until 28/02/2015.

Unit 6 Crown Close Vacant 185.53 1,997 N/A N/A N/A N/A £11,982 £6.00 Vendor to provide 2 year rent, rates and service charge guarantee.

Unit 7 Crown Close Somerset Hose & Hydraulics Ltd

89.00 958 06/07/2010 05/07/2015 31/12/2014 N/A £6,700 £6.99 Break clause exercised. Vendor to provide 2 year rent, rates and service charge guarantee.

Unit 8 Crown Close Neil Handbury Racing 89.09 959 29/12/2010 28/12/2016 28/12/2014 N/A £6,500 £6.78 Break clause exercised. Rent deposit held of £2,166.67. Vendor to provide 2 year rent, rates and service charge guarantee.

Unit 9 Crown Close Big Wheel Services Ltd 179.40 1,931 11/10/2010 10/10/2020 N/A 10/10/2015 £11,600 £6.01

Unit 10 Crown Close Cable and Wireless Ltd 267.93 2,884 17/10/1994 16/10/2019 N/A 10/10/2014 £16,400 £5.69 Measured survey unable to gain access.

Unit 11 Crown Close Cable and Wireless Ltd 131.27 1,413 25/01/2001 16/10/2019 N/A 25/01/2016 £8,500 £6.02 Measured survey unable to gain access.

Unit 12 Crown Close Bodytek (Taunton) Ltd 131.83 1,419 09/02/2007 08/02/2017 N/A N/A £8,500 £5.99 Lease contracted out of L&T Act 1954. Rent deposit held of £10,500.

Unit 13 Crown Close Bodytek (Taunton) Ltd 266.17 2,865 09/02/2007 08/02/2017 N/A N/A £16,750 £5.85

Unit 14 Crown Close HFD Ltd 403.29 4,341 22/10/2010 05/01/2021 N/A 22/10/2015 £21,000 £4.84

Unit 15 Crown Close Euro Car Parts Ltd 399.20 4,297 24/08/2011 23/08/2021 24/08/2016 24/08/2016 £21,475 £5.00 Tenant break clause on not less than 6 months notice. Lease subject to a Schedule of Condition.

Unit 16 Crown Close Rexel UK Ltd 398.28 4,287 25/10/2011 24/10/2021 N/A 25/10/2016 £20,250 £4.72 Lease subject to a Schedule of Condition.

Unit 17 Crown Close Rexel UK Ltd 399.11 4,296 13/03/2012 12/03/2022 13/03/2017 13/03/2017 £25,500 £5.94 Tenant break clause on not less than 6 months notice.

Unit 18 Crown Close City Electrical Factors Ltd 402.27 4,330 26/04/2008 25/04/2018 N/A N/A £22,795 £5.26


Freehold Industrial Long Leasehold - Income Producing Crown Medical Centre Development Plots DVLA Driving Test CentreLong Leasehold - Non Income Producing


Address Tenant Area (sq m)

Area (sq ft)

Start Date Expiry Date Break Clause

Next Rent Review

Rent passing per annum

Rent Passing per sq ft

Comment

Block D Smiths News Trading Ltd 1,185.44 12,760 19/08/2014 18/08/2024 18/08/2019 19/08/2019 £70,180 £5.50 6 months rent free on new letting. Vendor to top up rent free period. Tenant break clause on not less than 6 months notice. Floor area agreed between Landlord and Tenant upon letting.

Unit F1 Screwfix Direct Ltd 880.26 9,475 04/05/2007 03/05/2022 N/A 04/05/2017 £52,476 £5.54

Unit E1, E2 & F2 Debenhams Properties Ltd 5,430.47 58,453 11/04/2011 10/04/2026 11/04/2021 11/04/2016 £238,000 £4.07 Tenant break clause on not less than 6 months notice.

Block G Atkins Ltd 1,524.82 16,413 24/06/2006 23/06/2015 N/A N/A £76,000 £4.63

Catering Van M Evans t/a Tempting Somerset 21.46 231 25/03/2013 24/03/2018 Rolling 3 month break

N/A £2,250 £9.74 Lease contracted out of L&T Act 1954. Either Landlord or Tenant can determine the lease on not less than 3 months notice.

Block C Amphenol Thermometrics (UK) Ltd

5,166.99 55,617 05/04/1980 04/04/2079 N/A 05/01/2015 £74,650 £1.34 Sold LLH. Approximately 65 years unexpired. 5 yearly rent reviews.

Nitrogen Store and Substations Block C

Amphenol Thermometrics (UK) Ltd

N/A N/A N/A 04/04/2079 N/A N/A £500 N/A Delt within licences dated 13/04/1995 and 12/06/1996.

Block J Taunton & Somerset National Health Service Trust

2,446.14 26,330 05/04/1982 04/04/2081 N/A 05/07/2017 £32,000 £1.22 Sold LLH. Approximately 67 years unexpired. 5 yearly rent reviews.

Block M Retail Interests Ltd 5,746.15 61,851 30/04/1981 10/10/2076 N/A 10/10/2017 £32,582 £0.53 Sold LLH. Approximately 62 years unexpired. 5 yearly rent reviews.

Block H The Monarch Centre

Summerfield Developments Ltd 0.00 0 24/06/1993 23/06/2118 N/A N/A £0 N/A Sold LLH.

Block N Citiclient (CPF) Nominees Ltd 0.00 0 20/05/2014 19/05/2139 N/A N/A £0 N/A Sold LLH. Sub-lease to Norbert Dentressangle.

Plot 1 Development site N/A N/A N/A N/A N/A 1.5 acres

Plot 2 Development site N/A N/A N/A N/A N/A 0.6 acres

Site/Unit L2 Crown Close

The Secretary of State for Communities and Local Government

178.19 1,918 03/08/2010 02/08/2050 03/08/2025 15/08/2015 £150,000 N/A Driving test centre facility operated by The Driving Standards Agency. 5 yearly rent reviews to higher of uncapped RPI or market rent.

The Crown Medical Centre

JC Harrington, KL Manning, LF Penderel and CG Krasucki

885.37NIA

9,530NIA

07/01/2002 06/01/2022 N/A 07/01/2017 £143,000 £15.01 Boots Pharmacy at ground floor. No official lease/licence. Unit measured on a net internal basis.

TOTAL 28,805.64 310,061 £1,176,452

COVENANT INFORMATION

The income is diversfied by virtue of 24 tenants. Six tenants account for approximately 65% of the total income. ICC credit reports for each of these tenants are summarised in the table below:

Units 14-18 Crown Close

Tenant % of total income

Unexpired term to expiry

(break)

Credit Rating ICC score

Year End Turnover£000s

PTP£000s

Next Worth£000s

Debenhams Properties Ltd 20.34% 11.5 (6.5) years 92/100 31.08.2013 99,198 (8,977) 200,990

Secretary of State for Communities &Local Government

12.82% 10.75 (4.5) years N/A N/A N/A N/A N/A

JC Harrington/KL Maning/LF Penderel and C G Krasucki

12.22% 7.25 years N/A N/A N/A N/A N/A

Atkins Ltd 6.49% 0.75 years 79/100 31.03.2014 869,900 47,900 102,200

Amphenol Thermometrics (UK) Ltd 6.38% 64.5 years 87/100 31.12.2012 12,492 552 10,238

Smiths News Trading Ltd 6.00% 9.75 (4.75) years 93/100 31.08.2013 1,529,300 40,000 539,900


SERVICE CHARGE

The service charge budget for the year ending March 2015 is £42,650 per annum.

Further information is available in the dataroom.

EPCs

Copies of EPCs are available within the data room.

VAT

The property is elected for VAT. Accordingly the sale will be treated by way of a Transfer of a Going Concern (TOGC).

DATA ROOM

A data room has been set up to provide details of all the property and legal information. This will include the following:

• Title Information

• Occupational Leases

• Tenancy Schedule

• Planning Documents

• Management Information

• Measured Survey (to be assigned)

• Environmental Survey

• Service Charge Accounts

• EPCs

• Marketing Details

Unit E2

Driving Test Centre


Units 6, 7, 12 & 13 Crown Close, with Units 1-5 in the background


PROPOSAL

We are instructed to seek offers in excess of £15,355,000 (Fifteen Million, Three Hundred and Fifty Five Thousand Pounds), subject to contract and exclusive of VAT, for our client’s interest in the property.

An acquisition at this level reflects a net initial yield of 7.5%, assuming standard purchaser’s costs of 5.80%, and apportioning £525,000 to the development land.

Rob Tudor BSc Hons (MRICS) Director

Tel: 020 7495 5550

Mob: 07767 250004

Email: [email protected]

Lee Evans BSc Hons (MRICS) Associate Director

Tel: 020 7495 5550

Mob: 07900 581920


Hugh Faith BA Hons (MRICS) Senior Surveyor

Tel: 020 7495 5550

Mob: 07824 810910


FURTHER INFORMATION

For further information, access to the data room or to arrange an inspection please contact:

Notices Relating to Property Misrepresentation and Property Misrepresentation Act. Tudor Toone for themselves and for the Vendors of this property whose Agents they are, give notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures & fittings referred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Tudor Toone has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of publication is October 2014. Tayler Reid Design no.04488 | 020 7355 2500 | www.taylerreid.co.uk
