8% NET YIELD INDUSTRIAL INVESTMENT FOR SALE - LoopNet
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INDUSTRIAL INVESTMENT TDB
FOR SALE
8%
NET YIELD
LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX
QUOTING PRICE £3.2M WHICH REPRESENTS A NET INITIAL YIELD OF 8%
AFTER ALLOWING FOR THE USUAL PURCHASER’S COSTS
NEXT
LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX TDB INVESTMENT CONSIDERATIONS • Excellently located within a 5 minute drive time of Junctions 15A and 16 of the M1 motorway and in close proximity to the Sixfields Retail and Leisure Park and the St James Mill Road trade counter area. • Rent of £272,500pa just agreed on review in August 2020. • The Tenant, Dynamic Office Seating have been in occupation for circa 13 years and have recently signed a reversionary lease. • The lease benefits from approximately 5½ years unexpired with one further rent review in August 2022. • The tenant has an exemplary record of never missing a rental payment in 13 years, including throughout the coronavirus pandemic. • Quoting price of £3,200,000. • Reflecting a Net Initial Yield of 8% assuming normal purchaser’s costs. PR INT EM AIL AGENTS PREVIOUS NEXT
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LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX
LOCATION INFORMATION
A43
A428 A14
LOCATION
KETTERING
Northampton is strategically located on the M1 (Junction 15, 15A & 16) and is one of A428
RUGBY
A43
the leading commercial distribution locations within the Midlands. The town benefits A508 A4500
from excellent road communications with the A43, A45, A508 and A428, all providing
A428
good access to the surrounding area. A45
WELLINGBOROUGH
Ross Road is a thriving employment area at the junction of the A45 and Northampton LEO HOUSE NORTHAMPTON
A45
Ring Road. The Estate enjoys rapid dual carriageway access to the M1 at both A4500
Junctions 15A (2 miles) and J16 (4 miles) and is readily accessible to surrounding A45 16 A5123
labour. There are a host of other retail, leisure and trade outlets on the adjoining A428
A428
M1 A45 BEDFORD
A508
Sixfields Retail/Leisure Park and the St James Mill Rd area.
ACCOMMODATION A45
The premises is of steel frame construction with two storey brick built offices to the
front elevation and car parking adjoining. A43
15
There are yard areas to both sides of the building and the rear, the tenants have utilised
much of the yard space for additional container storage. TOWCESTER
SAT NAV: NN5 5AX & OXFORD CLICK TO VIEW GOOGLE MAPS
The main warehouse is constructed in 4 bays and has an eaves height of approximately
4.7m. More particularly the accommodation comprises as follows:-
Warehouse/factory 38,573 sq ft 3,583.48 sq m SPENCER BRIDGE RD
Two storey offices 8,591 sq ft 798.12 sq m TOLLGATE WAY
A4500
TOTAL (GIA) 47,164 sq ft 4,381.6 sq m A5095
Lean to store 700 sq ft 65.08 sq m
Mezzanine Floor 855 sq ft 79.42 sq m ROSS RD
⬅ M1 J16
GIA including Mezz/Lean to 48,719 sq ft 4,526.1 sq m
A4500 LEO HOUSE
A4500
Total site area - 1.62 acres. EDGAR MOBBS WAY
A5076
EPC - D-95
M1 J15A ⬇
PR INT EM AIL AGENTS PREVIOUS NEXT
LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX TDB
⬅ M1 J15 / The South
M1 J16 / M6 / The North ➡
A5076
M1 J16 ➡
EDGAR MOBBS WAY
ROSS RD
PR INT EM AIL AGENTS PREVIOUS NEXT
LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX TDB
TENANCY
Leo House is let on two coterminous full repairing and insuring leases, over both INVESTMENT COMPARABLES
units 1a and 1b at a total rent of £272,500pa, agreed on review in August 2020. Northampton is strategically very well placed for wholesale distributors such as Dynamic Office Seating and the
market for industrial investments is certainly strong as can be seen from the following comparables:-
The leases expire on 31st July 2026 (approximately 5 ½ years unexpired) with
one further rent review due on 1st August 2022. Address Tenant SQ FT Term Certain Price NIY
The tenant has recently signed a reversionary lease in exchange for just under 3 Kings Heath Ind Estate, St-Gobain Building 23,015 9 years £2.900,000 4.5%
months’ rent free which will be topped up by the vendor. Northampton Distribution Ltd (Under Offer)
Lodge Farm Ind Estate, Burnetts 12,715 4 years £995,000 5.9%
Both leases are subject to schedules of condition, however these were never Northampton Manufacturing Ltd (June 2020)
undertaken.
14 Gambrel Rd, MAN Truck and 15,804 8 years £2,850,000 5.03%
Northampton Bus Ltd (Nov 2019)
TENANT COVENANT Kestrel Centre, Brackmills,
Northampton
Camelot UK
Lotteries Ltd
44,931 5 years £4,550,000 5.56%
(Oct 2019)
Dynamic Office Seating Ltd (Company Number: 05796111) are a wholesale
office furniture supplier importing and exporting office furniture across the UK
and Europe. The existing owners have maintained a strong and trustworthy
relationship with Dynamic throughout their 13 years in occupation. Dynamic have
never missed a rental payment in all this time.
We understand Dynamic have traded exceptionally well throughout the LOADING
Coronavirus pandemic and have just signed a new reversionary lease.
For further information please see their website: LOADING
https://www.dynamicofficeseating.co.uk/
Dynamic Office Seating Ltd have reported the last 2 years trading figures:
Date Turnover Pre Tax Profit Total Net Worth WAREHOUSE/FACTORY
28/02/2020 £11,809,312 £253,152 £570,886 LOADING
28/02/2019 £11,830,000 £309,000 £446,000
28/02/2018 £15,565,000 £568,000 £164,000 1A 1B
Dynamic Office Seating Ltd have an Experian rating of 92/100 indicating a “Very LOADING
Low Risk” of business failure.
We understand the trading figures for 2020 will show a big improvement upon
TWO STOREY OFFICES
the above as the current trading year is proving exceptional.
PR INT EM AIL AGENTS PREVIOUS NEXT
LEO HOUSE | ROSS ROAD | NORTHAMPTON | NN5 5AX INDUSTRIAL INVESTMENT FOR SALE
RENTAL COMPARABLES
Address Size Term Rent Psf Date Transaction
16 Edgemead Close, Round 10 Years
39,436 sq ft £5.50 psf Under offer New Letting
Spinney, Northampton (Break Year 5)
Unit J Tenter Road, 5 years
20,000 sq ft £7.75 psf October 2020 Lease Renewal
Moulton Park Northampton (Break Year 2)
LS50, Lodge Farm 10 years
49,443 sq ft £7.08 psf August 2020 New Letting
Northampton (Break Year 5)
3 Pennard Close, 5 Years
21,376 sq ft £7.00 psf January 2020 New Letting
Northampton (Break at Year 3)
TENURE EPC
The property is held under two separate Freehold titles. The property has an Energy Performance Rating of D-95.
ADDITIONAL INFORMATION ANTI-MONEY LAUNDERING
Copies of the leases, title, EPC and other relevant Please note, all prospective purchasers will need to be
information can be provided on request. verified for anti-money laundering purposes prior to a sale
being agreed.
PROPOSAL CONTACT INFORMATION
For viewing and further information please contact:
A price of £3,200,000 excl. of VAT is
MARK BROWN / OLIVER THOMPSON / JACK BROWN
required for the freehold interest subject to
the occupational leases, this represents a
net initial yield of 8% allowing for normal
purchaser’s costs of 6.49%. It is expected
the sale will proceed as a TOGC to a
qualifying purchaser.
mark@tdbre.co.uk / oliver@tdbre.co.uk / jack@tdbre.co.uk
DISCLAIMER: TDBRE for themselves and for the vendors or lessors of the property whose agents they are give notice that, (i) these particulars are given without responsibility of TDBRE or the Vendors or Lessors as a general
outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) TDBRE cannot guarantee the accuracy of any description, dimension, references
to condition, necessary permissions for use and occupation and other details contained herein and any prospective purchasers or tenants should not rely on them as statements or representations of fact but must satisfy
themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of TDBRE has any authority to make or give any representation or enter into any contract whatsoever in relation to the property;
(iv) VAT may be payable on the purchase price and / or rent, all figures are exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate
professional advice; (v) TDBRE will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars. 02/21
© 2021 Wells Design Partnership | All rights reserved | www.wells-design.co.uk
PR INT EM AIL AGENTS PREVIOUS
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