FOR SALE INVESTMENT MODERN TRADE COUNTER SCHEME - King Street Commercial
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INVESTMENT MODERN TRADE MAGNUM TRADE PARK,
ROCHDALE,
FOR SALE COUNTER SCHEME OL16 5NP
PLUMBASE E L E C T R I C A L
Plumbing Trade Supplies
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
INVESTMENT SUMMARY
• An established and purpose built trade counter investment split over 11 units and We are instructed to seek offers in excess of £4,750,000 subject to contract and
totalling 40,630 sq ft. exclusive of VAT. Net of purchaser costs of 6.58%, a purchase at this level reflects a Net
Initial Yield of 6.07%.
• The primary bespoke trade counter scheme in Rochdale.
• Let to established trade occupiers including PTS, Screwfix, Toolstation, Crown Located in Rochdale, Greater Manchester, Magnum Trade
Paints and Edmundson Electrical. Park occupies a highly accessible and visible location fronting
• A highly accessible location on the edge of Rochdale town centre with strong the A460. The property benefits from a strong critical mass
visibility fronting onto Milnrow Road (A460). created by eight national trade counter occupiers.
• A total passing rent of £307,456 per annum (£7.56 per sq ft). This reflects
favourably to purpose built trade counter rents in the northwest which are
achieving £10 per sq ft.
• An average weighted unexpired lease term of 6.1 years (5 years to break).
• Freehold.
PLUMBASE E L E C T R I C A L
Plumbing Trade Supplies
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
1
22
M62
M66
ILES
) Greater Manchester
32 M
DS (
LEE Rochdale is one of the 10 boroughs which form the Greater Manchester conurbation.
ROCHDALE
21
Greater Manchester has an area of 1,277 sq km (493 sq miles) and a population of circa
BURY 2 HEYWOOD
2,750,000 people, making it the second most populous urban area in the UK.
20
3
B O LTO N 19
Greater Manchester is the focal point of the UK government’s 'Northern Powerhouse’
initiative to boost economic growth and trade in the North of England. The proposal
A627(M)
M66 M62 involves improvement of transport links, investment in science and innovation and
continued devolution of powers to the City regions.
18
The initial announcements include devolving housing, transport and planning policies, as
4 MIDDLETON CHADDERTON
M61 19 OLDHAM
17
3
M60
20 well as proposals for HS2 and HS3 high speed and electrified rail links. In total
2
15
16 PRESTWICH
M60
21 approximately it is anticipated £13 billion will be invested in transport infrastructure.
22
14
Rochdale
SWINTON
WORSLEY PENDLEBURY FA IL S WO R TH
13
Rochdale is a major market town situated approximately 16km (10 miles) north of
Manchester City Centre and 9km (5.5 miles) north west of Oldham. The town benefits
12
2
SALFORD 23 A S H T O N - U N D E R - LY N E from excellent communications with direct access to the M62 Motorway and both the
M602
ECCLES 3 MANCHESTER M66 and M60 (Manchester Orbital) Motorways are within 15 minutes’ drive of the town
11
A57(M) centre. The borough has a population of 211,700 with the town itself having a population
M60
10
of approximately 95,800.
M62 9 24 1A M57
2
The town is served by Metrolink light rail system and is situated 0.5 miles to the north of
4
3
URMSTON M60
ane
STRETFORD
Magnum Trade Park. Services run every 12 minutes providing access throughout
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neighbouring boroughs and the Greater Manchester region. Rochdale Railway Station,
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B62
66
located 0.6 miles to the west of Magnum Trade Park, also offers direct services to and
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ROCHDALE
t
TOWN CENTRE
MAGNUM from Manchester Victoria Station with a quickest journey time of circa 16 minutes.
TRADE PARK
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Rochdale is currently seeing significant capital investment and undergoing a rapid
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26 A640
B6
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Kiln Lane
change. As part of the £250m regeneration of the town centre, Rochdale Borough
St
A640 La
ne Council (in partnership with Genr8 and M&G) are currently on site delivering Phase 1
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A640
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which is a significant new 200,000 sq ft retail and leisure scheme. The scheme will be
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A664
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anchored by M&S, Reel Cinemas, H&M, Next, River Island, JD and Boots. The scheme is
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due to open in Easter 2020.
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As a borough, Rochdale has amongst the highest registered
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A664 A6193 M62
number of SMEs in Greater Manchester with the predominant
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21 A640
employer in Rochdale Borough being manufacturing (16.7%).
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INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION SITUATION Magnum Trade Park is the only purpose built trade park location in Rochdale and enjoys direct frontage to the arterial A640 Milnrow Road in the east of Rochdale. The property occupies a prominent corner location in a well-established commercial/industrial location and is approximately 0.6 miles east of Rochdale town centre and 2 miles from Junction 21 M62.
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
0)
( A46
OA D
DESCRIPTION
R
N R OW
MIL
The property comprises a modern purpose built trade park arranged in two
terraces. The 11 units are set around a central courtyard complete with
additional parking to the rear of Block A. The specification can be summarised
as follows:
• Steel portal frame
• Mono pitched insulated profile steel clad roof PLUM
BASE
• Part brick/part steel clad front elevations
• Electrically operated loading doors MAGNUM
BUSINESS
E L
E C
T R
I C
A L
ACCESS CENTRE
• 6m eaves BILB
ERR
Y ST
• Sealed concrete floors
• Aluminum powder coated double glazed windows VACANT
SITE
The property is set within a secure site and benefits from perimeter fencing.
The site further benefits from mature landscaping to the perimeter and a large
central courtyard for loading/parking. Access is obtained via a gated entrance off
Fishwick Street.
The site extends to 2.52 acres (1.02 ha) providing a low site cover of 38%.
PLANNING
B2/B8 use with trade counter.
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
TENANCIES
The property is multi-let to eight tenants on the terms outlined in the tenancy The average unexpired lease term to expiry is 6.1 years (5 years to break).
schedule. The leases are effectively on fully repairing and insuring terms with the Several tenants have constructed mezzanines internally by way of consented improvements
costs for repair and maintenance of common parts being recovered via a service and these have been excluded from the accommodation figures provided below.
charge (2019 budget – £1.42 per sq ft).
Unit Tenant Sq Ft Lease Start Lease Expiry Break date Rent (£ pa) Rent (£ psf) Comments
City Plumbing OMV upwards only RR at Y5
1 Supplies Holdings 3,779 17/12/18 16/12/28 16/12/24 £30,200 £7.99
Limited
(16/12/2023).
2&3 Screwfix Direct 7,446 25/02/18 24/02/28 £59,568 £8.00 OMV upwards only RR at Y5
Limited
(25 February 2023).
4 Eurocell Building 3,635 19/10/18 18/10/23 £29,080 £8.00
Plastics Limited
J.P. McDougall
5 & Co.Limited 5,550 05/05/19 04/05/29 04/05/24 £44,461 £8.01 OMV upwards only RR at Y5
T/A Dulux (05/05/2024).
6&7 Toolstation 5,629 10/10/11 09/10/21 N/A (historic tenant £42,214 £7.50
Limited break 09/10/2016
was not exercised)
8 VACANT 4,187 £21,982 £5.25 Rent, rates, service charge guarantee
for 18 months. Corner unit, restricted
frontage.
N/A (historic tenant
9 Edmundson 3,650 13/09/10 12/09/20 break 13/09/2016 £27,375 £7.50
E L E C T R I C A L Electrical Limited
was not exercised)
N/A (historic tenant
10 Plumbase 2,697 20/12/07 19/12/22 £21,576 £8.00
PLUMBASE Limited
break 19/12/2017
was not exercised)
11 Crown Paints 4,057 13/08/18 12/08/28 £31,000 £7.64 OMV upwards only RR at Y5
Limited (13/08/2023).
TOTAL 40,630 £307,456
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
COVENANT
The property boasts an excellent tenant line up with 92% of the occupied space having a Minimum Risk of business failure (D&B).
City Plumbing Supplies Holdings Limited (02489546) 31/01/18 31/01/17 31/01/16
In Thousands (£) In Thousands (£) In Thousands (£)
The company has the top D&B Rating of ‘5A1’ indicating minimum risk.
Turnover 637,000 586,600 568,500
City Plumbing Supplies is a national plumbing and heating supplier for the trade with a
network of over 300 branches throughout the UK. The company is part of the Travis Profit (Loss)/Before Tax 2,700 1,600 3,700
Perkins Plc and it has successful been trading for over 30 years. Net Worth 136,200 192,000 190,800
For further information please visit www.cityplumbing.co.uk Shareholder’s Funds 195,400 192,000 190,800
Screwfix Direct Limited (03006378)
31/01/18 31/01/17 31/01/16
The company has the top D&B Rating of ‘5A1’ indicating minimum risk. In Thousands (£) In Thousands (£) In Thousands (£)
Screwfix is the UK’s largest multi-channel retailer of trade tools, accessories and hardware Turnover 1,527,092 1,306,018 1,057,373
products with over 32,000 product lines. The company was founded in 1979 and currently Profit (Loss)/Before Tax 171,523 118,448 91,053
has a network of over 630 stores across the UK. Screwfix is part of Kingfisher plc with over
1,200 stores across 10 countries including Europe, Russia and Turkey. Net Worth 569,587 442,196 348,231
Shareholder’s Funds 572,606 449,161 358,687
For further information please visit www.screwfix.com
Eurocell Building Plastics Limited (03071407)
31/01/17 31/01/16 31/01/15
The company has a D&B Rating of ‘3A1’ indicating minimum risk. In Thousands (£) In Thousands (£) In Thousands (£)
Eurocell is a leading manufacturer, distributor and recycler of building products operating a Turnover 128,865 128,865 102,661
nationwide network of more than 190 branches. The company supplies a complete range of Profit (Loss)/Before Tax 5,875 5,875 7,016
PVC-U products together with all fixings, sealants and tools required for every building
Net Worth 9,773 9,773 8,684
plastics job.
Shareholder’s Funds 9,847 9,847 8,993
For further information please visit www.eurocell.co.uk
Toolstation Limited (04372131) 31/01/17 31/01/16 31/01/15
In Thousands (£) In Thousands (£) In Thousands (£)
The company has the top D&B Rating of ‘5A1’ indicating minimum risk.
Turnover 300,401 257,907 225,818
Toolstation is one of Britain’s fastest growing suppliers of tools, accessories and building
supplies to the trade, home improvers and self-builders. The company has over 300 Profit (Loss)/Before Tax 21,511 18,815 17,198
branches nationwide, open 7 days a week. Net Worth 45,367 28,053 13,063
For further information please visit www.toolstation.com Shareholder’s Funds 45,367 28,053 13,063
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
COVENANT
The property boasts an excellent tenant line up with 92% of the occupied space having a Minimum Risk of business failure (D&B).
J.P. McDougall & Co. Limited T/A Dulux (00254941) 31/01/17 31/01/16 31/01/15
In Thousands (£) In Thousands (£) In Thousands (£)
The company has a D&B Rating of 'N1' indicating negative net worth but minimal risk of
Turnover 164,902 169,749 167,759
business failure.
Profit (Loss)/Before Tax (1,867) 5,462 5,324
J.P. McDougall & Co. Limited operates decorator stores throughout the UK trading as
Dulux Decorator Centres. The company has been trading paints, wall covering and Net Worth (46,404) (60,857) (42,867)
associated decorative products for over 88 years. Shareholder’s Funds (36,984) (50,722) (31,588)
Edmundson Electrical Limited (02667012) E L E C T R I C A L 31/01/17 31/01/16 31/01/15
The company has the top D&B Rating of ‘5A1’ indicating minimum risk. In Thousands (£) In Thousands (£) In Thousands (£)
Turnover 1,263,885 1,268,458 1,268,392
Edmundson Electrical is an electrical distribution and serves both the trade and to the
public. The company has over 300 stores throughout the UK and also has a significant Profit (Loss)/Before Tax 63,470 61,138 72,771
presence in the Middle East through an associated company. Net Worth 386,435 368,681 358,003
For further information please visit www.edmundson-electrical.co.uk Shareholder’s Funds 386,435 368,681 358,003
Plumbase Limited (00181691) PLUMBASE 31/01/17 31/01/16 31/01/15
The company has a D&B Rating of '2A' (risk factor undetermined at the time of sale) In Thousands (£) In Thousands (£) In Thousands (£)
Plumbase is a national plumber’s merchant supplying plumbing and heating products, Profit (Loss)/Before Tax (22) (59) (57)
bathrooms and renewables. The company was founded over 155 years and now has 163 Net Worth 1,912 1,934 1,993
stores across the UK.
Shareholder’s Funds 1,912 1,934 1,993
For further information please visit www.plumbase.co.uk
31/01/17 31/01/16 31/01/15
Crown Paints Limited (06624576) In Thousands (£) In Thousands (£) In Thousands (£)
The company has a D&B Rating of ‘4A1’ indicating minimum risk. Turnover 164,603 173,824 187,747
Crown Paints is one of the largest and most successful paint manufacturers and retailers in Profit (Loss)/Before Tax 9,885 15,858 23,312
the UK. The company was founded in 1777 and has over 130 stores across the UK.
Net Worth 16,810 15,064 18,351
For further information please visit www.crownpaints.co.uk Shareholder’s Funds 17,436 15,973 19,088
INVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
TRADE COUNTER MARKET
Investor appetite for well located, purpose built trade counter properties remains Typically, trade counter properties have outperformed more traditional multi-let industrial
extremely buoyant. Investors are attracted to the sector due to the long term estates and this looks set to continue due to longer leases, stronger covenants, improved
income security provided by national occupiers and a nationwide demand/supply rental growth prospects and minimal transience of trade occupiers.
imbalance of trade counter units.
Recent evidence indicates that prime trade counter rents
in the northwest currently sit at £10 per sq ft.
TRADE COUNTER INVESTMENT COMPARABLES – NATIONAL
Town Property Price Price (Psf) NIY Date Size (Sq Ft) Comments Purchaser
Greater London location. A modern 11 unit
Sydenham Bell Green Trade City £14.65m £267 4.30% April 2019 54,917 trade counter development with a strong John Lyons Charity
trade counter tenant line-up.
Multi-let trade park/industrial estate. Not
Plymouth Cot Hill Trading Estate £5.97m £93 6.07% April 2019 64,412 purpose built and older accommodation. Plymouth City Council
Stockport Bredbury 25Trade Park £5.65m £123 N/A Nov 2018 45,995 New build estate, 9 units, 8 sold with vacant IOAM
possession and no rental guarantee's
Coventry PilotTrade Park £5.2m £168 5.59% Oct 2018 31,000 Newly developed trade park let to a range Threadneedle
of national occupiers.
28 trade / light industrial units,
Cheltenham Kingsditch Trading Estate £20.5m £149 5.30% June 2018 137,942 mixture of quality. L&G (IPIF)
4 newly developed trade counter units let on
Ipswich Quantum Business Park £4.2m £167 5.70% May 2018 25,200 long leases to national occupiers. St John’s
Forward commitment with 80% pre-let to
Leeds College Trade Park £10m £127 5.10% March 2018 78,835 national tenants. 3% vacancy. St Brides
Modern trade counter comprising 4 units let to
Coventry Vantage Park £5.07m £202 5.40% Dec 2017 25,000 national tenants. 8 years AWULT to break. Schroder’sINVESTMENT SUMMARY GALLERY LOCATION SITUATION DESCRIPTION TENANCIES COVENANT TRADE COUNTER MARKET FURTHER INFORMATION
FURTHER INFORMATION
VAT
The properties are elected for VAT although it is anticipated that the sale will be
treated as a Transfer of a Going Concern (TOGC).
DATASITE
A Datasite has been set up to provide further information. Access can be arranged
upon request.
EPC
Available upon request.
ANTI-MONEY LAUNDERING REGULATIONS
In accordance with Anti-Money Laundering Regulations, evidence of identity
and source of funding will be required from the successful purchaser prior to
instructing solicitors.
PROPOSAL
We are instructed to seek offers in excess of £4,750,000 subject to contract and
exclusive of VAT. Net of purchaser costs of 6.58%, a purchase at this level reflects a
Net Initial Yield of 6.07%.
CONTACT WWW.KINGSTREETCOMMERCIAL.COM
Matt Cox MRICS Ted Murray MRICS Subject to contract – June 2019
0161 850 0498 0161 850 0497 IMPORTANT NOTICE. MISREPRESENTATION ACT 1967. KING STREET COMMERCIAL, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY,
HEREBY GIVE NOTICE THAT:
07788 99 99 11 07766 00 33 22
These particulars do not constitute, nor constitute any part of, an offer or contract. King Street Commercial Ltd and its members accept no legal
matt@kingstreetcommercial.com ted@kingstreetcommercial.com responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters
issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations.
Neither King Street Commercial nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any
Beth Galvin LLB representation or warranty whatsoever whether written or implied in relation to this property. Any intending purchaser must satisfy himself by inspection or
otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has
0161 850 9771 satisfied himself accordingly. Unless otherwise stated all prices and rents are quoted exclusive of Value Added Tax (VAT), any intending purchasers or
07775 87 56 00 lessees must satisfy themselves independently as to the incidence of vat in respect of any transaction.
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