industrial / warehouse investment opportunity · 2021. 1. 12. · investment summary > detached...

IndustrIal / Warehouse Investment opportunIty hydrogarden limited, 2 progress Way, Binley Industrial estate, Coventry Cv3 2nt

INVESTMENT SUMMARY > detached industrial/warehouse and

office investment on an established and thriving business park.

> very prominently positioned on Binley Business park at the corner of herald Way and progress Way.

> Freehold three bay steel portal frame industrial warehouse with two storey glazed offices to the front extending in total to 40,593 sq. ft. GIa.

> let to hydrogarden limited on a new 3 years lease with a tenant break option at year 2 on giving 6 months notice at a rent of £215,000 per annum equating to £5.30 per sq. ft. overall.

> hydrogarden limited are a leading supplier of hydroponic equipment and have been established for 24 years. they have an experian credit rating of 100 indicating very low risk and for year ending 2019 had a turnover of £29.3 million, pre-tax profit of £995,930 and a net worth of £6.1 million.

> We are instructed to seek offers in excess of £2,700,000 (Two Million Seven Hundred Thousand Pounds) subject to contract, which reflects a net initial yield of 7.48% after allowing for purchasers’ costs of 6.41% and £66.51 per sq. ft.2

INDUSTRIAL WAREHOUSE INVESTMENTHydrogarden Limited2 Progress Way Binley Industrial Estate Coventry CV3 2NT

http://www.mk2.co.uk

Coventry is located within the West midlands, approximately 20 miles east of Birmingham, 24 miles south west of leicester and 95 miles northwest of london. the City forms part of the “Golden triangle” for logistics in the uK with excellent road communications, providing direct access to the m6 and the m69 motorways and access to the m40 and m42 motorways via the a46 and a45, Birmingham to Coventry trunk roads, respectively.

Coventry train station provides regular intercity links to london, Birmingham and manchester, with the fastest journey time by train to london euston approximately 65 minutes. Birmingham International airport is 20 minutes drive time to the west of Coventry, providing access to domestic and international destinations.

Coventry is the 9th largest city in england and the 12th largest in the uK. It is additionally the second biggest city in the West midlands area, after Birmingham, with a population of 329,810 and is home to 35,000 businesses.

SHREWSBURY

WOLVERHAMPTON

STAFFORD

STOKE-ON-TRENT

LICHFIELD

BIRMINGHAM

COVENTRY

WORCESTER

HEREFORD

TO BRISTOL& SOUTH WEST

TOLONDON

TO LONDON& SOUTH EAST

TO MANCHESTER& NORTH WEST

TO LEEDS& NORTH

EAST

OSWESTRY

MARKET DRAYTON

TELFORD

BRIDGNORTH

LUDLOW

LEOMINSTER

ROSS-ON-WYE

LEDBURY

GREAT MALVERN

KIDDERMINSTER

STOURBRIDGEDUDLEY

WALSALL

BURTON-UPON-TRENT

UTTOXETER

TAMWORTH

NUNEATON

SOLIHULL

REDDITCH

EVESHAM

STRATFORD-UPON-AVON

WARWICK

RUGBY

LEEK

M6

M6

M6 TOLL

M69

M1

M42

M40

M5

M50

M54

M1

M1

M6

LOCATION DISTANCE

Birmingham 20 miles

leicester 24 miles

nottingham 55 miles

manchester 80 miles

liverpool 93 miles

london 95 miles

CONNECTIVITy

Birmingham Int. airport (by car) 20m

Birmingham new street (by train) 32m

east midlands airport (by car) 46m

london euston (by train) 1h 05m

manchester picadilly (by train) 1h 59m

LOCATION

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A428 RUGBY RD

A428

A428

A428 BINLEY RD

A428 BINLEY RD

BRANDO

N RD

CLI

FFO

RD

BR

IDG

E R

D

B4027 BRI

NKLOW

RD

ST JAM

ES LANE

WIL

LEN

HA

LL L

AN

E

LANGBANK AVE

A40

82

A

LLA

RD W

AY

A4082

A

LLAR

D W

AY

HERA

LD W

AY PROGRESS WAY

A46

COV

ENTR

Y EA

STER

N BY

PASS

A46 C

OVEN

TRY EASTERN

BYPASS

2 Progress Way

the property is prominently position on the corner of herald Way and progress Way in the heart of Binley Business park. extremely well located, three miles east of Coventry City centre and close to the a46 linking directly to the m69, m6, m1 (north) and the a45, m40 and m1 south.

there are a wide range of facilities in the immediate vicinity, including a morrisons supermarket, tGI Fridays, Costa Coffee drive thru, premier Inn, mcdonalds and B&Q. nearby occupiers include saint Gobain, sFm, Caldwell, auric, Gap plant and tool hire and hermes.

SITUATION

HER

ALD

WA

Y

PROGRESS WAY

HYDROGARDEN

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the property comprises a detached warehouse with two story offices, generous yard and ample car parking. the warehouse has three bays of steel portal frame construction with brick elevations and profile clad roofs. the warehouse has fluorescent strip lighting and heating via gas fired blowers with eaves heights ranging from 5 metres to 7.8 metres.

there are 3 roller shutter doors to herald Way benefitting from internal hGv level loading (currently not used) and 2 further level access roller shutters doors to the yard and front of the property.

there is a mezzanine installed in part of the warehouse providing additional storage. there is an integral two story warehouse office block which has separate access from the car park and is fitted out as a showroom / kitchen, meeting room with male and Female WC’s.

to the front is a two-story office building which has been extensively refurbished and provides;

> extensive aluminium frame double glazing and high levels of natural light

> large reception area

> Generous floor to ceiling height of over 3m

> suspended ceilings with led lighting

> solid carpeted floors, perimeter trunking and central heating

> male, Female and disabled WC’s

> Kitchen and staff welfare areas

DESCRIPTION

externally there is a concrete yard to the side of the property with a greenhouse installed by the tenant together with rear access to herald Way.

to the front is tarmacadam surfaced car park areas providing 44 spaces including 4 ev charging bays.

to the herald Way frontage is additional loading bays which is currently used for 10 further car spaces.

the yard is fully secured with a gate and metal palisade fencing.

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The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate gross internal floor areas.

DESCRIPTION SQ M SQ FT

Warehouse 2657.2 28,601

Warehouse Mezzanine 204.6 2,203

GF Warehouse Offices 94.1 1,013

FF Warehouse Offices 88.5 953

GF Main Offices 335.9 3,615

FF Main Offices 390.9 4,208

Total 3,771.2 40,593

ACCOMMODATION

TENUREThe property is held freehold.

SITEthe site extends to a total area of approximately 1.45 acres.

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yEAR END TURNOVER PRE-TAx PROfIT NET WORTH

Dec 2017 £25,061347 £1,660,947 £5,668,184

Dec 2018 £27,299,013 £206,516 £5,464,491

Dec 2019 £29,337,873 £995,930 £6,060,980

Established in 1996 Hydrogardens Limited has become the UK’s leading manufacturer and distributor of hydroponic equipment and services. Selling only to the trade, the company has an impressive brand line-up providing everything required to grow plants indoors or in nutrient poor conditions including growing plants without soil. The company has performed very well during the recent lockdown and has seen sales expand.

COVENANTExperian rate the company as 100 which is a very low risk score and their most recent accounts are summarised below;

the property is to be let on a new full repairing and insuring lease to hydrogarden limited on a 3 years term with a tenant break option at year 2 on giving 6 months notice at a rent of £215,000 per annum equating to £5.30 per sq ft overall. the lease will be subject to a photographic schedule of condition and will be contracted out of sections 24 to 28 of the landlord and tenant act 1954 relating to security of tenure.

TENANCY

Further details can be provided on request.7



RECENT LETTINg TRANSACTIONS INCLUDE;

LEOFRIC BuSINESS PaRk PROGRESS CLOSE, COvEnTRy From June 20. 15 years lease to Socotec Limited on 47,000 sq. ft. at a rent equating to £6.50 per sq ft.

HI PROLOgIS PaRk COvEnTRy From Sept 20. 10 years lease with tenant break at year 5 to UK Flooring Direct on 56,000 sq. ft. at a rent equating to £6.50 per sq ft.

uNIT 1 VESPa POINT CEnTRaL BOULEvaRD From March 20. 10 years lease with tenant break at year 5 to network Rail Infrastructure Limited on 19,975 sq. ft. at a rent equating to £7.15 per sq ft.

C1 gROVELaNDS IND. EST. COvEnTRy From august 2019. 10 years lease with tenant break at year 5 to arnold Laver Timberworld on 26,140 sq. ft. at a rent equating to £5.50 per sq ft.

uNIT B gROVELaNDS IND. EST. COvEnTRy From June 2019. 10 years lease with tenant break at year 5 to KRM Limited on 22,759 sq. ft. at a rent equating to £5.50 per sq ft.

MANCHESTER80 MILES

LEEDS96 MILES

LONDON86 MILES

LIVERPOOL93 MILES

NOTTINGHAM55 MILES

LEICESTER23 MILES

NORTHAMPTON29 MILES

BRISTOL80 MILES

SHREWSBURY56 MILES

BIRMINGHAM17 MILES

COVENTRY

Coventry is one of the most important industrial and warehouse markets in the UK and sits in the heart of the “Golden Triangle” at the centre of the UK’s motorway network.

With a total stock of 80 million square feet of accommodation net absorption during the last 12 months has totalled 1.5million square feet and a low vacancy rate of 4.9%. Despite the economic shock of the Covid 19 pandemic, rental growth remains strong and according to Costar is currently at 3.5% for the last 12 months.

OCCUPATIONAL MARKET

M6

M6

M69

A444

A4600

A444

A46

A46

A46

A46

A4114

A45

A423

A4114

A45

A45

A444

A45

A45

UNIVERSITYOF WARWICK

BAGINTON

FINHAM

WHITLEY

BINLEY

BISHOPSGATEGREEN

KERESLEY

CORLEY

PICKFORDGREEN

BURTONGREEN

BINLEYWOODS

BRANDON

WOLSTON

ALLESLEYEDGWICK

LONGFORD

SHILTON

COVENTRYCITY CENTRE

COVENTRYAIRPORT

LEOFRIC BuSINESS PaRk PROGRESS CLOSE, COvEnTRy

£6.50 psf

HI PROLOgIS PaRk COvEnTRy

£6.50 psf

uNIT 1 VESPa POINT CEnTRaL BOULEvaRD

£7.15 psf

C1 gROVELaNDS IE COvEnTRy

£5.50 psf

B gROVELaNDS IE COvEnTRy

£5.50 psf

2 PROgRESS WaY COvEnTRy

£5.30 psf

8



The warehouse and distribution sector continues to be the most sought after property investment market in the UK and has provided consistently strong returns from both capital and rental growth.

Key investment transactions include;

INVESTMENT MARKET

4 MaRTINS CLOSE, NOTTINgHaM OCT 2020 – 1 year lease to BSS Group at a rent of £185,000 pa equating to £4.56 psf. Sold for £2.35 million reflecting a yield of 7.30%.

HERaLD WaY. COVENTRY May 2020 – 4 years remaining to Ozbox UK Limited at a rent of £102,000 equating to £5.07 psf. Sold for £1.49 million reflecting a yield of 6.40%.

12 STaFFORD PaRk, TELFORD DEC 2019 – 3 years remaining to nG Services at a rent of £165,090 equating to £3.75 psf. Sold for £2.24 million reflecting a yield of 6.73%.

u3-8 WITTON PaRk, BIRMINgHaM Jan 2020 – 3 years remaining to Hauck Heat Treatment Limited at a rent of £161,221 pa equating to £4.86 psf. Sold for £2.25 million reflecting a yield of 6.75%.

HOLYMOOR WaY, RuBERY aPR 2020 – 12 years remaining to aquapak Polymers at a rent of £351,600 equating to £6.38 psf. Sold for £5.50 million reflecting a yield of 6.00%.

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EPCThe property has on EPC Rating of D94. a copy of the certificate is available upon request.

VATThe property is elected for vaT however it is anticipated that the transaction will be treated as a transfer of a going concern (TOGC).

We are instructed to seek offers in excess of £2,700,000 (Two Million Seven Hundred Thousand Pounds) subject to contract and exclusive of vaT, which reflects a net initial yield of 7.48% after allowing for purchasers’ costs of 6.41% and £66.51 per sq ft.

PROPOSAL

CAPITAL ALLOWANCESWe understand that there are no remaining capital allowances available to the purchaser.

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For further information or to arrange an inspection please contact:

fURTHER INfORMATION

IMPORTaNT INFORMaTION 1. no description or information given by mK2 real estate ltd whether or not in these particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. mK2 real estate ltd do not have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agent or the seller. 2.these particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.the photographs show only certain parts of the property at the time they were taken. any areas measurements or distances given are approximate only. 4. any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.these matters must be verified by any intending buyer. 5. any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

designed and produced by diablo: www.diablodesign.co.uk december 2020

Mk2 Real Estate Ltdone seven two edmund streetBirmingham B3 2hB

Mark Rooke0121 214 197207985 877 578 [email protected]

Mark Johnson0121 214 197707748 105 [email protected]

Ross Cuthbert0121 214 197507891 863 [email protected]

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Investment SummaryLocationSituationDescriptionAccommodationTenancy & CovenantOccupational MarketInvestment MarketVatFurther Info

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industrial / warehouse investment opportunity · 2021. 1. 12. · investment summary > detached...

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