BRITISH STEEL MIDLAND SERVICE CENTRE - Freehold Industrial Investment with Development Potential - LoopNet
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BRITISH STEEL
MIDLAND SERVICE CENTRE
QUALCAST ROAD I W O LV E R H A M P TO N I WV1 2QP
Freehold Industrial Investment with Development Potential
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
INVESTMENT SUMMARY QUALCAST ROAD
• T
he property comprises an industrial
complex containing 8 buildings, extending
to a total of 176,478 sq ft.
ROYAL MAIL
• Site area of 8.35 acres (3.38 hectares).
• L
et to British Steel Ltd for 15 years from
25/12/2018 at an initial rent of £573,665 per
annum reflecting £3.25 per sq ft overall.
• A
dditional security provided by £2m
CANALSIDE QUARTER
Rent Deposit deed. DEVELOPMENT
• T
he lease contains a rolling Landlord
only break option on 18 months’ notice.
• H
igh underlying residential site value with
planning permission for 141 unit residential
development anticipated.
• S
ituated adjacent to the proposed
Canalside Quarter residential district, a joint GRAND STATION
venture between City of Wolverhampton
Council and Canal & River Trust.
• Potential to refurbish and reconfigure
the existing industrial accommodation
to provide a multi-let complex with an PREMIER INN
A454
estimated Market rental Value of £530,000
HORSELEY FIELDS
per annum reflecting £3.00 per sq ft.
• W
e are instructed to seek offers in excess
of £6,150,000 reflecting a Net Initial Yield
of 8.75%, based on purchaser’s costs of
6.63%. A purchase at this level reflects
WOLVERHAMPTON
£736,527 per acre.
RAIL STATION
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
MOLINEUX CITY i10 MIXED USE WOLVERHAMPTON WOLVERHAMPTON CANALSIDE QUARTER
SCHEME BUS STATION RAIL STATION DEVELOPMENT BRITISH STEEL
CAMPUS CENTRE
TO WALSALL
A4150
A454
A454 LOWER HORSELEY FIELDS
HORSELEY FIELDS
TO BIRMINGHAM
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
BURTON
STAFFORD UPON
LOCATION A518 A513 A515
TRENT
NEWPORT
Wolverhampton is the only city within network that runs between the City M6
A51
the highly urban and densely populated of Wolverhampton and Birmingham, A34
A38
Black Country metropolitan area and is providing a direct connection to the bus A460
an important focus for growth. 1.73 million and railway stations.
people live within a thirty minute drive time, CANNOCK
Wolverhampton holds key competitive LICHFIELD
which also covers affluent locations beyond A41 A449
advantages, including immediate access TELFORD
the city in Staffordshire and Shropshire.
to a population of 3 million people, quick A34
M54
The number of people within the city’s travel times to Birmingham, Manchester and TAMWORTH
A442
catchment is growing. Together with the London and more competitive commercial M6 A5
M6 A461
major improvements to the city’s strategic rents than anywhere else in the region. WOLVERHAMPTON
TOLL
transportation infrastructure, it will WALSALL
Some of the city centre’s key investments
become even more substantial. A454 M42
two successful new office buildings at
A458 A34
The city benefits from excellent road the Interchange, with a third building in A4123 A38
communications with easy access to the the pipeline, a £35m investment into BRIDGNORTH A449
A452
WEST M42
M6, M5 and M54 motorways. Junction 10 retail enhancements at the Mander
BROMWICH
of the M6 is approximately 5 miles east Centre and £250m investment at M6
of Wolverhampton, Junctions 1 and 2 of Wolverhampton University. A458
A449 BIRMINGHAM
the M54 are approximately 5 miles and M6
Major out-of-town investments include A442
4 miles north respectively. Birmingham STOURBRIDGE
the i54 strategic employment site located
Airport is approximately 20 miles south A45
to the north of the city centre is the UK’s M5 A38 A34
east of Wolverhampton and East A41
most successful Enterprise Zone. It is home A441
Midlands Airport is approximately 40 miles COV
to Jaguar Land Rover alongside other A456
to the north east.
major businesses. JLR’s £1bn investment KIDDERMINSTER A435
Wolverhampton has a mainline rail station in the company’s global engine plant at
with frequent services to London Euston i54 is creating over 1,400 jobs and several A448 PROJECTED TO GROW
M42 A4
via Birmingham New Street, Birmingham hundreds more in supply chain activities. A456 2-3% FASTER
M40 THAN THE NATIONAL AVERAGE
International, and Coventry. OVER THE NEXT 10 YEARS
The city centre is also home to the
The City also has a direct metro link to successful Wolverhampton Wanderers
A449 SECTOR SPECIALISTS IN
Birmingham city centre and benefits from Football Club which plans to expand the
a regular bus service. The first phase of Molineux stadium, increasing capacity AUTOMOTIVE
the Midland Metro Wolverhampton city to 46,000 over the next 5 years. & AEROSPACE
INDUSTRIES
TH
centre extension opens during 2019.
5
JAGUAR LAND ROVER,
This will link with the existing Metro MOOG AND
UTC AEROSPACE
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
SITUATION CANALSIDE QUARTER
The site is situated adjacent to the proposed Canalside Qualcast Road is approximately 1 mile east of The Canalside Quarter is a 10 acre residential led development
Quarter residential district, a joint venture between City Wolverhampton city centre, situated off of the A454 being brought forward by the Canal and River Trust (CRT) and
of Wolverhampton Council and Canal & River Trust. Lower Horseley Fields A454, which acts as one the main the City of Wolverhampton Council (CWC).
The scheme will incorporate city centre living and a arterial routes into Wolverhampton city centre from the M6
The area is set to provide both desirable city centre living and
destination for visitors with shops, walkways, cycle paths Motorway to the east.
a destination for visitors with shops, walkways, cycle paths and
and leisure facilities.
leisure facilities.
The Canalside Quarter is expected to grow to in excess of
600 new homes as it establishes itself as a residential and
leisure area for the city. There may be potential to work with
A454 CRT and CWC to integrate and improve communications
between the two sites.
LOWER HORSELEY FIELDS
CANALSIDE QUARTER
DEVELOPMENT
BRITISH STEEL
QUALCAST ROAD
BRITISH STEEL MIDLAND SERVICE CENTRE QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential DESCRIPTION SITE The property comprises an industrial complex containing The site extends to 3.38 hectares (8.35 acres). 8 buildings, extending to a total of 176,478 sq ft. The main warehouse comprises an operational steel works formed of multiple bays, with eaves height ranging between 5m and 9.5m and gantry cranes which range from 6 to 10 tonnes capacity. The building also incorporates single storey administration and welfare accommodation, as well as WC’s, offices and staff rooms. In addition to the main warehouse, there are a number of low rise outbuildings of varying ages and quality. Other buildings include a single storey block incorporating a canteen and changing facilities and a small medical building situated to the south western corner of the site. Neighbouring the medical building is a single storey brick built office block. Externally, there are two main concrete surfaced yards either side of the main warehouse which are linked via a tarmac surfaced service road. To the entrance of the site, there is a weighbridge adjacent to the gatehouse whilst access to the site is via a barrier system off Qualcast Road. ACCOMMODATION Description Sq m Sq ft Main Warehouse 25,185.52 163,455 Ancillary / Outbuildings 780.51 8,401 Office Block 429.40 4,622 Total 16,395.43 176,478
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
TENANCY RESIDENTIAL DEVELOPMENT
The property is let in its entirety on a Full Repairing and Insuring lease limited by The vendor has submitted a planning application (No.18/01445/OUT) for the development of 141 residential
a Schedule of Condition to British Steel Ltd for a term of 15 years from 25th December units. A favourable decision is expected.
2018. The initial rent is £573,665 per annum, reflecting £3.26 per sq ft overall.
The City of Wolverhampton Council have reviewed affordable obligations of the proposed development under
The lease contains a rolling landlord only break option, exercisable on 18 months Section 106 of the Town and Country Planning Act 1990, and concluded that the proposed development
prior written notice. would not be required to conform to policy levels of Section 106 and affordable housing obligations which
would be deferred for a period of 3 years from May 2019. The terms of the Section 106 agreement are
The lease is subject to 5 yearly rent reviews to the higher of Open Market Rental
currently under negotiation. Further information is available on the data room.
Value or RPI with a collar at 1% and 4% per annum compounded.
Additional security is provided by a £2m rent deposit deed.
NORTH
Scale Bar
5 20 40
141
141
140 0 10 30 50
141
Copies of the lease, schedule of condition and rent deposit deed are available
139
138 J
J 141
139
140
SCHEDULE O
137
in the data room.
136 J 139
140
Apartments: 3
J
135 138 AP1 - 1bed A
137
134 AP2 - 2bed A
G 138
133 G 137
136
132
135
Houses:
G A - 2 bed, 2 s
131 G 135
136
134
130 133 B - 2 bed, 2 s
129
G 134
C - 2 bed fog
132 G 133
D - 3 bed, 2 s
131
128 K
TENANT COVENANT
G 40
39
E - 3 bed, 2 s
132
130 G 131 F - 3 bed, 2 s
39
127
129 A 40 G - 3 bed, 2.5
J C A
130 39 H - 3 bed, 3 s
J 129
42
126 128 43 41
J - 4 bed, 2.5
44
40
A
127 42 41 K - 4 bed, 3 s
125 128
A 43
J 45 44
B
127 46 A
J
124 45 43 38 Grand Total:
126
46 B
125 E 44
F
British Steel Ltd (Company Reg No. 09438207)
126 38 37
J 45 37 B
123 125 37 38
J 46 36
36
36
47
122 124 F B KEY
123 48 33
47 33
34 35
121 G
124
47
E 34 B
35
British Steel entered insolvency on 22nd May 2019.
123
E 104
35
120 G 105 49 34
103
32 B
122
104
48
E
121 105 48
119 103 33
122
106 104 49 31
G 105 J
121
F
The Government’s Official Receiver has taken control of the
118 49 50
50
G 106
117
120
E J 102
50
F
119
107
J 51
E 103 101
Prop
120 108 32
G 119
106 102
32
company as part of the liquidation process and are working
31
G
107
102 101 E J 31
108
116 118
51
117 D 107
109
52 52
D 51
Exis
118 115
J 99 101 F 52
117
108
with Ernst & Young to identify a buyer.
109
115 115 K
116
K 98 100
109 D 100
116 F 114 97 D
116 100
D 96 99 1 - 30
113 98
99 K
114
95
113
G 97
53
54
114
G
98
53 53
113 D 112 97 54
K G Existing Gas Main
94
D E
96
94
93
112 111 95 96
83 54
93 112
111 82
E 55
POS
94 82
83
111 110 95
94 93 E D 55
55 56
A
56
110
E 92 A
110 J
91 F A 83
92
93 79
91 79 C 82 56 J
81 57
92
J 80 81
92 91
57 57 58
Pumping
80 62
Station
ENVIRONMENTAL
J 90
78 A 61
58
77 61
89 A 59
91 90 78
60
58
77
79 59
89 60 62
59
90
E 78
63
J V 63
60
90 89
F V 64 H
J
64 61
88 77 75
V
65 H
87 75 65
62
89 88
76 75 66
H
74 66
63
88
87
67 H
76 74 64
E 73 67
H
88 76 73 68
65
H
A Phase 1 Environmental Survey report, carried out by Ground Condition Consultants
72 68
E 86
72 69
66
85
69
H
87 86 70 67
70 H
85
71
68
H
(GCC), dated February 2018, is available to view on the data room.
J 71
69
86
K H
84
70
H
85 71
84 H
72
H
84 73
The vendor has recently instructed GCC to carry out Phase 2 of the Environmental
H
74
H
75
ath H
otp
Fo
H
Survey. The results of the Survey are expected to be received in June 2019.
b lic
Pu
K
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
BROWNFIELD LAND & PROPERTY 0-3 YEARS
(2017-2020)
DEVELOPMENT FUND 3-6 YEARS
(2020-2023)
The West Midlands Combined Authority (WMCA) Brownfield 0-6 YEARS
(2017-2023)
Land & Property Development Fund (BLPDF) enables the
unlocking of sites, remediates the industrial legacy and brings 6-10 YEARS
(2023-2027)
forward investable propositions.
The aim of the BLPDF is to regenerate brownfield sites across
the WMCA’s geography which extends to Greater Birmingham
and Solihull, the Black Country, Coventry and Warwickshire.
As the site of the subject property falls within the areas identified
for regeneration by the WMCA, funding for remediation of the
land could be secured from the BLPDF, subject to application.
CITY OF BRITISH
WOLVERHAMPTON STEEL
REGENERATION PROGRAMME ART
RAILWAY STATION
CIVIC HALL GALLERY
There is in excess of £1 billion of public and private sector
investment already on-site or earmarked for the city centre,
demonstrating growing confidence in the city.
The
The City
City Centre
Centre Retail
Retail and and
Leisure Leisure Core
Core
The
The Royal
Royal and
and St St George’s
George’s MANDER
CENTRE
CITY LEARNING
Molineux
Molineux Campus
Campus QUARTER
Springfield Campus
Canalside
Canalside South
Quarter
Interchange
Interchange and Commercial
and Commercial Gateway Gateway
Connected
Connected Places
Places StrategyStrategy
Links Links
Potential
Potential PublicPublic
Space Space
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
PROPOSED
DEVELOPMENTS
INCLUDE:
i9
A £13m, 50,000 sq ft office led development
adjacent to the successful multi-award winning
i10 mixed-use development, currently being built
by Ion Developments and due for completion
during 2019.
Brewers Yard
A £250m development including 1,100 city houses
and apartments, and 60,000 sq ft of new retail
and commercial space. The development is
being brought forward by Court Collaboration,
West Midlands Combined Authority and
Wolverhampton Council. Works are due to start
on site in 2020.
Stafford Street
A 883 bed student development being brought
forward by Cassidy and due for completion in
August 2020.
Molineux Stadium
Wolverhampton Wanderers F.C. are working on
proposals to redevelop the Molineux Stadium
and increase its capacity to circa 46,000 in two
phased development during the next 5 years.
Further details of wider development projects
are available within the Invest Wolverhampton
prospectus
http://www.investwolverhampton.com/invest/
investment-opportunities/prospectus/Invest%20
Wolverhampton%20Prospectus.pdf
i9 Development
BRITISH STEEL MIDLAND SERVICE CENTRE
QUALCAST ROAD I WOLVERHAMPTON I WV1 2QP Freehold Industrial Investment with Development Potential
TENURE CONTACTS
Freehold. A copy of the report Jonathan Devaney
on title is available for review 0121 233 6490
on the data room. jonathan.devaney@knightfrank.com
Christopher Howe
EPC 0121 234 0338
christopher.howe@knightfrank.com
The property has an EPC Will Jordan
rating of E (124). 0121 233 6413
will.jordan@knightfrank.com
A copy of the Energy
Performance Certificate (EPC) Jack Jones
is available in the data room. 0121 233 6420
jack.jones@knightfrank.com
VAT Knight Frank LLP
1 Colmore Row
The property is elected for
Birmingham
VAT. We would anticipate
B3 2BJ
that the transaction will be
treated as a Transfer of Going
Concern (TOGC).
PROPOSAL KnightFrank.co.uk
We are instructed to seek IMPORTANT NOTICE. Particulars: These particulars are not an offer
or contract, nor part of one. You should not rely on statements by
offers in excess of £6,150,000 Knight Frank LLP in the particulars or by word of mouth or in writing
(“information”) as being factually accurate about the property, its condition
reflection a Net Initial Yield or its value. Neither Knight Frank LLP has any authority to make any
representations about the property, and accordingly any information
of 8.75%, based on purchaser’s given is entirely without responsibility on the part of the agents, seller(s)
or lessor(s). Photos etc: The photographs show only certain parts of
costs of 6.63%. A purchase the property as they appeared at the time they were taken. Areas,
measurements and distances given are approximate only. Regulations
at this level reflects £736,527 etc: Any reference to alterations to, or use of, any part of the property
does not mean that any necessary planning, building regulations or other
per acre. consent has been obtained. A buyer or lessee must find out by inspection
or in other ways that these matters have been properly dealt with and
that all information is correct. VAT: The VAT position relating to the
property may change without notice. Knight Frank LLP is a limited liability
partnership registered in England with registered number OC305934.
Our registered office is 55 Baker Street, London W1U 8AN, where you
may look at a list of members’ names. June 2019.
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