Asda Regional Distribution Centre - Foxbridge Way, Normanton Wakefield, WF6 1TN - Regional Distribution Centre Prime Investment Opportunity
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Asda Regional Distribution Centre
Foxbridge Way, Normanton
Wakefield, WF6 1TN
Regional Distribution Centre
Prime Investment Opportunity
INVESTMENT SUMMARY • Strategically located well specified regional distribution centre • Leased to McLagan Investments Limited and guaranteed by Asda Group Limited the UK’s second biggest food retailer • 13 years unexpired • Fronting J31 of the M62 5 miles (8 km) from both the M1 and A1(M) • 336,260 sq ft total gross internal area excluding canopy • Passing rent of £1,430,000 per annum equating to £4.25 per sq ft • Site area of 21.77 acres with a very low site density of only 35.5% • Estimated rental value £1,514,000 per annum (£4.50 per sq ft) Offers invited in excess of £21,600,000 (Twenty One Million, Six Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.26%, a net reversionary yield of 6.63% and a true equivalent yield of 6.84% after allowing for purchasers costs of 5.8%
A1
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Asda Regional Distribution Centre, Foxbridge Way, Normanton, Wakefield,
M6 WF6 1TN A170
90 36 70
A5 A1
90
A5
A65
68
A1
A19
Barrow-in-Furness 35
83
34 A6
A61
A1(M) A6
1
47
M6 A65 A166
33 A59 Harrogate A59
6 82
A
46 York
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9 4 A61
A6 3)
(A16
A6
8
1
A 606 A65 LEEDS &
A19
A
BRADFORD
A58
A58 Keighley 45 A10
5
79
A6
50
Blackpool A59 M65 THE PROPERTY
4
3 44
M55
A61
1 32
LEEDS
A164
4
Preston 8 Burnley BRADFORD A63 HU
M621 1 A63 38
31
6
43
M62
A10
27 A6
Halifax 26
41
30 30
9 A
A5 29 9 646 41
28 31 32 A645
25 33 34
A58 24 Wakefield M62
Southport 23
M18
A5
M6 Rochdale M62 39
Huddersfield
A15
70
9
A6
Bury M66
A5
38 M181
A61
27 A62 5
5
5
A56
20
A58
Middleton M1 38
M180 3
4 A58 18
A6
29 37 Barnsley M180
M58 3 5
Wigan M6017 Oldham A635
Doncaster
1
MANCHESTER A616
25
Crosby 7
24 12 A628
59
6
St Helens 23
A1
Bootle 5
Salford
Wallasey LIVERPOOL
4 M62 8
24
Rotherham A1(M)
M62 M60 M67
A15
3 A631
2 7 A631
1 A5
2
4 5 7 Warrington 2 Stockport 33
Birkenhead A57
M56 SHEFFIELD 32 34
LOCATION 3
4
Widnes
Runcorn
20
7 MANCHESTER
A6
A57
M1
A41
10 6
M53 11 A4
LIVERPOOL 12
5
M56 A6 A1
Wakefield is the leading distribution location serving Asda also operate a chilled distribution
Ellesmere centre on
8 23
A15
9 A619 A5
Port 10 7
6
A55 14
the north of England, strategically located 10 miles the neighbouring Prologis Wakefield Europort, 16 a 220 Chesterfield Lincoln
A530
A619
(16 km) south of Leeds and 38 miles (60 km) east of acre low density distribution park that has 12 further A5
4
A49
29
Chester A51 A5
Manchester. established Wakefield as the premier distribution
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33
A5
A51
D
A53
Mansfield
0
A55 OO
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location in the north of England.
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TW
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CA
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A49
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LI
7
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NE
34
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Crewe
Wakefield has a high quality fast rail link with Wakefield NE
A5
RN
28
L LA
83 ER
I
A17
A15
A
A4 A5 W
DR
A6
MI L
A500 23 AY
Westgate situated on the London to Leeds East Coast There are in excess of 756,000 potential employees A534 55
IV
A6 27
STOKE-ON-TRENTM62
E
A6
8
Mainline and benefitting from two trains per hour and within a 30 minute drive time of Normanton Industrial
A3
Newcastle-
09
A49
6
7
A6
A4
under-Lyme A52
07
a fastest journey time to London of under 2 hours. Estate. The skill base has 14% more skilled and semi- A525 M1 Junction 31
NOTTINGHAM
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A5 15 A50
1 A1
Leeds Bradford Airport is only 22 miles (35 km) north of skilled manual workers than theA5 national average.95 A52
Wakefield accessed via the M621 and A65.
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Compared to the Midlands and south east distribution A5
3
DERBY A52
A41
25 A6 A52
A5
A5
16 A6 06 A1(M)
centres, the cost of labour is substantially lower, A51
53
A5
18 A607
A4
EAST
The property is located 0.6 miles (1 km) from Junction providing a significant competitive advantage.
A50
14 Burton upon MIDLANDS 24
A442
MI
A41
A53
Trent
31 of the M62. This trans-pennine motorway links with
LL
Stafford
A49
LA
A515
M1
NE
M6
the M1 5 miles (8 km) to the west and the A1(M) 5 miles
(8 km) to the east. As a consequence, access to the
SITE
A655 PON
AD
national motorway network and the East and West RD
RO
The site extends to 21.77 acres (8.81 hectares), providing FO
TEFRACT ROAD
LE
coast ports is exceptional. CA
ST
a very low site density of 35.5%. FOXBRIDGE WAY
AY
EW
The property is situated on the north side of Foxbridge
G
RID
FO
XB
ASDA REGIONAL
Way, Normanton and prominently fronts Junction 31 of DR
IV
E
DISTRIBUTION CENTRE
LO
EY
the M62. Occupiers in the locality include Argos, Britvic PL
S
CO
RI CL
E
OS
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Soft Drinks, DHL, Kuehne and Nagel, Linpac Plastics, E
55
ONP
Royal Mail, Scottish Courage, TK Maxx, Wickes and
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FR
AC
Warburtons.
TR
OA
D
Asda Regional Distribution Centre, Foxbridge Way, Normanton, Wakefield, WF6 1TN
DESCRIPTION
The property comprises a modern high specification high bay distribution
warehouse constructed in 1991 with ground and first floor integral offices and
self contained loading and car parking facilities.
The main warehouse is of steel portal frame construction arranged in four bays
with a clear eaves height of up to 12.15 metres (40 feet). The elevations are
clad in composite panels with profile steel cladding at high level. The roof is
of plasticol coated profile sheet panel construction. The warehouse has cross
loading with 27 dock loading doors and 6 level access doors.
The main office accommodation is arranged over ground and first floors with
a reception, mainly open plan office accommodation, canteen and kitchen
facilities. There is an additional smaller two storey transport office. The office
content comprises around 6% of the total floor area.
Externally the property features diesel fuel pumps, HGV washing station,
gatehouse and a service yard extending up to approximately 62m. There is a
separate car park providing parking for over 300 vehicles.
The property is in operation 24 hours a day, 364 days a year. There are over 800
employees working in the warehouse distributing 1,200 pallets a day to 50 Asda
stores.
ACCOMMODATION TENURE
Track
NORMANTON INDUSTRIAL ESTATE
Sq M Sq Ft The property is held on a virtual freehold for 999
Tank
years from 25th December 1991 at a peppercorn
Warehouse 29,320.0 315,600
rent.
Two Storey Office/Canteen 1,564.5 16,840
Pa
th
Wai
n
The landlord has the option to purchase the
Dik
Two Storey Transport Office 354.9 3,820
eB
eck
freehold interest at anytime after 11th January
Total ** 31,239.4 336,260 2017 for £1.
Canopy* 2,155.3 23,200
Whitwood
Common
* Canopy is excluded from total area
** The area stated within the lease is 31,262 sq m (336,500 sq ft)
WB
Note: All areas are stated on a gross internal basis.
Zest House
0m 25m 50m 75m
FOXBRIDGE WAY
TENANCY DISTRIBUTION CENTRE COMPARABLES
The property is let in its entirety to McLagan Investments Limited, guaranteed by Asda Group Limited Address Transaction Tenant Area Rent Per
(formerly Asda Group Plc), for a term of 35 years from 25th December 1991 and expiring on 24th (Date) Sq Ft Sq Ft
December 2026 on full repairing and insuring terms. The unexpired term is therefore approximately Prologis Open Market
13 years. Hermes
Tamworth 594 Letting 336,000 £4.75
Parcelnet
West Midlands (Oct 13)
The lease is subject to upward only rent reviews every five years, the next being due on 25th December Redhouse Open Market
2016. The rent at review is calculated to the higher of: Interchange Letting Next 263,000 £4.50
Doncaster (Mar 12)
(i) The passing rent; Amazon Open Market
(ii) The rental value of the actual unit; Maylands Avenue Letting Amazon 465,000 £6.50
(iii) The rental value of a standard building of 50,000 sq ft x 6.73 Hemel Hempstead (Oct 11)
Sherburn 666 Open Market
The assumed area at rent review is 31,262 sq m (336,500 sq ft). Hurricane Way Letting Debenhams 666,898 £4.50
Sherburn-in-Elmet (Nov 10)
The current rent passing is £1,430,000 per annum equating to £4.25 per sq ft.
Axis 62 Open Market
Foxbridge Way Letting Poundworld 204,250 £4.47
A copy of the lease is available upon request. Normanton (Aug 10)
Hurricane
Redhouse Interchange Open Market
Letting Asda 263,806 £4.75
RENTAL MARKET COMMENTARY Rockingham Way
(Aug 10)
Doncaster
Recent activity in the industrial, distribution and logistics market has continued to be high, with take- Express Way
up across the UK amounting to circa 76.1 million sq ft during 2012, although this represented a fall of Prologis Rent Review
25% on the previous year mainly due to the lack of good quality accommodation. Wakefield Europort, Royal Mail 213,000 £4.45
(Jan 10)
Wakefield
Take up for Grade A increased by 11% on the previous year to 22.4 million sq ft as a result of
occupiers choosing better quality accommodation. In the West Midlands the North West, Yorkshire
STANDARD UNIT COMPARABLES
& Humberside the availability of Grade A stock fell by 7.4 million sq ft during 2012 representing a
reduction of circa 40%. In addition the supply of larger units (100,000 sq ft plus) is down by 20% on
the previous year. Address Transaction Tenant Area Rent Per
(Date) Sq Ft Sq Ft
The current level of take up together with the recent reduction in speculative development, is likely Gelderd 55 Open Market
to lead to continuing high demand throughout 2014. There is a general lack of existing good quality Gelderd Road Letting OPM Group 54,767 £4.50
and well located stock in excess of 120,000 sq ft. This is particularly apparent for existing centres that Leeds (July 13)
have cross dock functionality. Unit B, Centre 31 Open Market
Foxbridge Way Letting YESSS 63,315 £4.50
We are of the opinion that the estimated rental value of the subject property is £1,514,000 pa, Normanton (Jun 12)
reflecting £4.50 per sq ft. Link 62, Unit 1000 Open Market
Denby Dale Road Letting Dreams Plc 63,147 £5.00
We highlight opposite a number of relevant comparable transactions in both the distribution centre Wakefield (Nov 09)
and standard industrial markets:
Note: Whilst the above information is believed to be correct it is derived from third parties. As such,
prospective purchasers should satisfy themselves as to its accuracy.
Asda Regional Distribution Centre, Foxbridge Way, Normanton, Wakefield, WF6 1TN
COVENANT EPC
The Tenant The property has an EPC rating of 99 (Band D).
McLagan Investment Limited is a wholly owned subsidiary of Asda Stores Limited. McLagan
Investments Limited principal activity involves managing property interests within the Asda Group.
McLagan Investments has a Dun and Bradstreet rating of 5A1 representing a minimum risk of
business failure.
VAT
The property is elected for VAT. We understand that the sale can be treated as a Transfer of a Going Concern.
McLagan Investments Limited 31-Dec-11 31-Dec-10 31-Dec-09
Registered No. 02127156 £(‘000s) £(‘000s) £(‘000s)
Turnover n/a n/a n/a PROPOSAL
Profit/(Loss) Before Taxes 227,335 n/a 242,584
We are instructed to seek offers in excess of £21,600,000 (Twenty One Million Six Hundred Thousand
Tangible Net Worth 1,277,806 1,237,148 1,354.650
Pounds), subject to contract and exclusive of VAT.
The Guarantor
A purchase at this price reflects an attractive Net Initial Yield of 6.26% a net reversionary yield of 6.63%
Asda Group Limited, formerly known as Asda Group Plc, trading as Asda is the second largest
in December 2016 and a true equivalent yield of 6.84% after allowing for purchasers costs of 5.8%.
supermarket in the United Kingdom with 356 stores, a 17.5% market share of the grocery market and
170,000 employees. Asda Group Limited has a Dun & Bradstreet rating of 5A1 representing a minimum
risk of business failure.
FURTHER INFORMATION
Asda Group Limited 31-Dec-12 31-Dec-11 31-Dec-10
Registered No. 01396513 £(‘000s) £(‘000s) £(‘000s) For further information and to download copies of legal documents and other relevant information
including copy planning permissions and surveys please visit: www.htc.uk.com/AsdaWakefield
Turnover 22,843,400 21,847,700 20,546,400
Profit/(Loss) Before Taxes 774,300 767,800 739,100 To make arrangements to inspect please contact:
Total Equity 6,195,300 5,651,000 5,200,000
JONATHAN GILBERT BSc MRICS ACIArb
Asda Group Limited is part of Wal-Mart, the world’s largest retailer with over 11,000 stores and 2.2
Tel: 020 7788 3817
million employees in 27 countries and a turnover of $466 billion for the year ending 31st January 2013.
Fax: 020 7491 3032
Email: jonathan.gilbert@htc.uk.com
PLANNING HAYLEY COX
Planning permission was granted in July 1988 for the development of a regional distribution centre. Tel: 020 7788 3821
A copy of the planning permission is available upon request. Fax: 020 7491 3032
Email: hayley.cox@htc.uk.com
ENVIRONMENTAL SURVEYS MISREPRESENTATION ACT: Hartnell Taylor Cook LLP for themselves and for the vendors or lessors of this property whose agents
they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute
any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them
An environmental survey has been undertaken by WSP Environmental, the benefit of which can be as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person in the
assigned to the purchaser, subject to negotiation. employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty in relation to this
property. January 2014. Designed and produced by Creativeworld. Tel: 01282 858200.
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