A Prime and Highly Reversionary Pre-Let Logistics Investment Opportunity - Kimmre
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
A DEVELOPMENT BY
CLOWES DEVELOPMENTS (UK) LTD
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
01 Contents
02 Investment Summary
03 Location
04 Situation
05 Castlewood Business Park
06 Current Occupiers
07 The Site
08 Description
09 Tenancy
10 Covenant
11 Market Commentary
12 Environmental
13 Planning
14 The Project Team
15 Proposal
16 Further Information
Existing Alloga warehouse
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
02 Investment Summary
• Castlewood is a prime industrial/warehouse location which
prominently fronts the M1 at Junction 28.
• Highly accessible via the A38 dual carriageway.
• The property has a target area of 249,500 sq ft (23,179 sq m) GIA
of warehouse space with ancillary offices.
• A first class specification which includes: steel portal frame
construction, 12m eaves, 50kN/per sq m floor loading, 25 loading
doors, a maximum yard depth of 52m, and a secure yard with
a gatehouse.
• Site area of 11.25 acres (4.55 hectares).
• Freehold.
• A new 20 year lease drawn on FR&I terms, with a tenant’s option to
break at year 15. Five yearly upward only rent reviews to market rent.
• A low rent of £1,160,175 p.a, which equates to only
£4.65 per sq ft (£50.05 per sq m).
• Alloga UK Limited offers a strong covenant with an Experian risk
rating of “Very Low Risk”.
• The Developer is seeking a forward commitment to purchase
on a two cheque basis.
• We are seeking offers in excess of £24,150,000 (TWENTY FOUR
MILLION AND ONE HUNDRED AND FIFTY THOUSAND POUNDS)
subject to contract and exclusive of VAT.
• Assuming full purchaser’s costs of 6.76% and an ERV of £6.00
per sq ft, a purchase at this level will show a NIY of 4.50%,
an Equivalent Yield of 5.50%, a Reversionary Yield of 5.81%
and represents a capital value per sq ft of £97.
Existing Alloga warehouse
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
03 Location
Castlewood Business Park occupies Estimated
Town Km Miles
a prominent and strategic location Travel Time SHEFFIELD M1 Worksop
immediately adjacent to Junction 28 Nottingham 23 14 21min
of the M1 on the east side of the Derby 26 14 24min
Motorway at Sutton in Ashfield. A619
Sheffield 32 20 40min
Chesterfield
The location benefits from excellent road East Midlands Airport 38 24 29min
communications as it lies at the intersection of J29
Leicester 66 41 50min THE PEAK A1
the M1 and the A38 trunk road. The A38 provides
DISTRICT A614
Manchester 90 56 1hr 30min A61
direct access westbound to Derby, Burton on Trent,
Mansfield
Birmingham, the M6 Toll Road and the South West; Leeds 94 58 1hr 02min A6
and Mansfield to the east. A38 A617
Birmingham 98 61 1hr 16 min J28
Castlewood Business Park is centrally located, sitting Hull 125 78 1hr 22min
A38 A60
A515
between the key centres of Nottingham 14 miles to the Liverpool 145 90 1hr 56min J27
south, Derby 16 miles to the south west, and Sheffield
London 222 138 2hr 41min A38
20 miles to the north. A46
Bristol 241 150 2hr 43min J26
East Midlands Airport is conveniently located
Lowestoft 256 159 3hr 41min A52 DERBY
24 miles to the south, adjacent to Junction 24 of
the M1. The airport provides flights to more than 90 Holyhead 271 169 3hr 23min
NOTTINGHAM
destinations worldwide and handles more than Felixstowe 296 184 3hr 26min J25
4.5 million passengers a year. East Midlands Airport
Harwich 331 206 3hr 39min
Uttoxeter
is the UK’s busiest pure cargo airport and second only A50
to Heathrow, handling in excess of 320,000 tonnes of J24
flown cargo every year. It is the UK hub to a number of Road Km Miles Time East
A515 Burton Midlands
leading freight operators including DHL, TNT, UPS and M1 (J24a) 31 20 19min Airport J23a
Royal Mail (source:www.eastmidlandsairport.com).
upon Trent A46
M1 (J32 M18) 35 22 21min
Rugeley A42 Loughborough
Alfreton British Rail Station is 2 miles west of M6 (J15) 84 53 1hr 04min A38
M6 M1
Junction 28 and provides a direct rail service to M1 (J19 A14) 85 53 51min
London St Pancras with a fastest journey time of
M6 (J16) 99 62 1hr 11min
2 hours and 13 minutes.
M6TOLL
M42
A444 LEICESTER
J21 A47
Walsall
M69 A6
Nuneaton
M6 Market
A5 Harborough
BIRMINGHAM
M42 M6
J19
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
04 Situation
M1 North
The development is located on the highly established Castlewood
Business Park which is accessed directly off the A38 dual carriageway
and lies to its southern side. The Business Park is accessed by way
of a traffic light controlled junction which is approximately 1.5 miles
from Junction 28.
The Castlewood Business Park benefits from a good level of amenity being adjacent to the
East Midlands Designer Outlet, with 65 stores providing over 140,000 sq ft of retail space,
including brands such as M&S, Nike, Adidas, Levis, Boss, Jaeger, Next, Gap and Superdry. B6046
There is also the Renaissance Hotel and a Premier Travel Inn just off Junction 28.
Hilcote B6027
Mansfield
A38
M1 East Midlands
Designer Outlet
South
Normanton
J28
B6019
A38
Derby M1 South
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
05 Castlewood Business Park
PARKER
KNOLL
A38 Following Practical Completion of the subject building,
Castlewood Business Park will provide approximately
MERIDIAN 1,425,000 sq ft (132,386 sq m) of warehouse and
manufacturing accommodation, built across eight
Plot 8 buildings ranging in size from 24,000 sq ft (2,230 sq m)
to 480,000 sq ft (44,594 sq m).
Plot 5
Plot The Park is fully serviced and ready for immediate further
9B/C development. 30 acres remain available, and thus the Park
COSTA
SHELL PFS is currently capable of accommodating approximately an
SPAR
additional 525,000 sq ft (46,451 sq m) of development,
East Midlands Plot 10
GREGGS
WH SMITH in units ranging between 10,000 sq ft (955 sq m) and
Designer Outlet 200,000 sq ft (18,580 sq m). Castlewood Business Park is
Plot 2/3
a very successful and established location. Tenants to date
BOMBARDIER
ALLOGA TRANSPORTATION include The Co-operative Group Limited (480,000 sq ft
A38 /44,594 sq m), Parker Knoll (100,000 sq ft/9,290 sq m),
Plot A Meridian Lightweight Technologies (60,000 sq ft/5,574 sq m),
MIDLAND Midland Aerospace (40,000 sq ft/3,716 sq m), Middlebrook
AEROSPACE Transport (30,000 sq ft/2,787 sq m), and Bombardier
Plot 1
(24,000 sq ft/3,716 sq m).
The subject property will be Alloga (UK) Limited’s third
facility on Castlewood Business Park and will take them up
ALLOGA to approximately 690,000 sq ft (64,103 sq m) of space on
the Park. On Alloga’s web site they state: “Centrally located
on the M1 (J28) in Derbyshire, we’re perfectly positioned
to reach the whole of the UK, linking up with our own
out-based van fleet across the country.”
Clowes Developments (UK) Limited have been improving
MIDDLEBROOK
TRANSPORT the amenity of the Park. There is now a Shell Petrol
filling station with a Spar retail outlet, a drive thru Costa
Coffee, a Greggs Bakery and W H Smith. Clowes are
currently considering plans for further amenity enhancing
development which would include more retail space and
Castlewood Business Park is a 114 acre a pub restaurant.
(46.14 hectares) premier logistics park and
J28
was master planned to provide approximately
CO-OP 2,160,000 sq ft (200,671 sq m) of space
M1 in units ranging in size from 13,000 sq ft
(1,208 sq m) up to 750,000 sq ft (69,677 sq m).
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
06 Current Occupiers
J28
M1
CO-OP M1
MIDDLEBROOK
TRANSPORT
ALLOGA
A38
Plot 2/3
ALLOGA MERIDIAN
MIDLAND
AEROSPACE
PARKER
KNOLL
BOMBARDIER
TRANSPORTATION
COSTA
SHELL PFS
SPAR
GREGGS
WH SMITH
Site shown for illustrative purposes only
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
07 The Site
PLOT
The site comprises 11.25 acres (4.55 hectares) and 7 a site cover of 50%.
provides
PLOT 8
9A
PLOT 5
PLOT 9
NE
PLOT 4B
LA
ON
XT
PIN
PLOT 4A
PLOT 2/3
PLOT 1
NE
LA
ON
XT
N
PI
Existing Alloga warehouse
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
08 Description
The warehouse has a target area of 249,500 sq ft (23,179 sq m) including a two storey
office building comprising 10,972 sq ft (1,019 sq m) which represents a 4.4% office content.
The warehouse will benefit from the following The offices will benefit from the following
specification: specification:
• The warehouse will be a steel portal frame • The office block frame will be constructed in
construction. structural steelwork.
• 12 metres (39 ft) clear height to the underside of the • The windows will be polyester coated aluminium
haunch. factory sealed double glazed units.
• The warehouse floor slab loading will accommodate • The first floor space is to be built to a shell finish with
a uniform distributed load of 50kN/per sq m and have suspended ceilings incorporating recessed lighting
Rack Leg Loading of 7 tonnes. and raised, carpeted floors.
• The warehouse floor will be a mesh reinforced concrete • The ground floor is to be built to a shell finish and the
slab with a power floated finish. floor will have a power floated concrete finish. The
• The floor in the warehouse will be built to an FM2 tenant will fit this area out for welfare purposes.
standard. • There will be a reception area.
• A curved roof clad in galvanised steel, coated with • The offices will have comfort cooling.
Colorcoat. • There will be a 10 person passenger lift.
• 10% roof lighting. • There will be 152 car parking spaces.
• The warehouse’s elevations will be clad in a • The property will be served by all the main utility
combination of Twin Therm insulated non composite services.
profiled colour coated steel cladding sheets; and Tata
• There will be male, female and disabled toilet facilities.
Steel Trimapanel composite panels. The elevations will
include full height curtain walling elements.
• There will be 25 loading doors, including 22 dock level
TENANT’S WORKS
doors and 3 level access doors, providing a ratio of The tenant is arranging to fit out the premises to
1:9,980 sq ft (1:927 sq m). include CCTV, security alarms, fire alarms, smoke
• The loading yards will have a minimum depth of 46.5m detection, sprinklers, racking, HVAC and LED lighting
and a maximum depth of 52m. in the warehouse. The tenant also plans to provide
a welfare block. The anticipated cost at this time is
• There will be 34 lorry parking spaces.
approximately £3.85M.
• Secure yard and Gatehouse.
ACCOMODATION
The subject premises has the following target floor areas:
SQ FT SQ M
WAREHOUSE 238,528 22,159.79
OFFICE 10,972 1,019.32
TOTAL 249,500 23,179.11
Existing Alloga warehouse
ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
09 Tenancy
Alloga UK Limited entered into an Agreement to Lease ALTERATIONS: The tenant may undertake internal non-structural alterations without TENURE
on the 27th July 2018. The Tenant is obliged to complete Landlord’s consent, subject to the tenant providing the landlord with duplicate plans
the lease on the Completion Date which is 5 working days prior to commencement of the works. All other works require landlord’s consent. Freehold.
after the later of: the Practical Completion Date; confirmation The landlord may withhold consent if the proposed works have an adverse impact on
of the GIA; delivery of collateral warranties, reliance letter and the structural integrity of the building, they prejudice the landlord’s ability to enforce
SERVICE CHARGE
an environmental report prepared by DTS Raeburn Limited. warranties, if the works are likely to diminish the value of the landlord’s interest in
the property or if the works reduce the GIA. At the end of the lease (to the extent Castlewood Business Park Management Company is
The key points of the Lease are as follows: required by the Landlord) the tenant must remove any alterations or additions and responsible for managing the estate. It currently provides
TENANT: Alloga UK Limited (Company Number: 03169255). reinstate the premises to the original state and condition (by references to the plans the following services:
and specification attached to the Lease) and make good any damage caused by such • The maintenance of the estate roads and footpaths.
LANDLORD: Clowes Developments (UK) Limited (Company Number: 00819793). reinstatement to the reasonable satisfaction of the Landlord. • Clearance of the estate road in the winter months.
ANNUAL RENT: The target area for the building is 249,500 sq ft. The agreement to ASSIGNMENT: The tenant may assign the whole of the property only. The landlord • Maintenance of Castlewood Business Park’s
lease provides that the property will be measured by a third-party surveyor as soon may withhold consent if in the landlord’s opinion the assignee is not of sufficient landscaping.
as is practicable, and in any event at least 6 weeks prior to the anticipated Practical standing to comply with the terms of the lease. The tenant is obliged to provide an • The servicing and maintenance of the balancing ponds.
Completion Date. The building is subject to a 2.5% measured tolerance above or below AGA. If assigning to a Group Company then that company must have a covenant
the target area. A rent of £4.65 per sq ft will be applied to the GIA. As such the annual The current estate service charge budget is £118,450
strength which is equal to or greater than the tenant.
rent is anticipated to be £1,160,175 p.a. If the GIA is greater than the Target Area per annum. The estate service charge is apportioned
the GIA is capped at the target area. UNDERLETTING: The tenant may under-let the whole or a “permitted part”. There on a pro rata basis having regard for the respective
must not be more than 3 separate occupations including the tenant. All sub leases sites’ proportion of the total net developable area.
RENT FREE: The tenant has an 18 month rent free period calculated must be contracted out of the 1954 L&T Act. The undertenant must be of sufficient The subject site’s proportion has been calculated
from the Practical Completion Date. financial standing to comply with the obligations of the tenant under the underlease. at 9.52% which equates to an annual service charge
in the order of £11,285.
LEASE TERM: 20 years. SHARING OCCUPATION: The tenant may part with, or share occupation/possession
of the whole or any part with any Group Company. All of the management costs are recoverable from
BREAK CLAUSE: There is a tenant’s option to break on the 15th anniversary of the lease.
the tenants.
The break is subject to 12 months notice. The break is conditional upon the tenant CONCESSIONS/FRANCHISES/CONTRACTORS: While the lease is vested in Alloga UK
having paid all the rent, and providing the Landlord with vacant possession (as defined Limited, the tenant is permitted to share possession or occupation of a “permitted The main estate road is currently in the ownership of
in the lease). In the event that the tenant does not exercise the break option the tenant part” with concessions, franchises and/or contractors (as those terms are defined). Clowes Developments (UK) Limited. The majority of the
is entitled to 3 months rent free in the 16th year of the term. Any such arrangement must automatically determine if the lease is terminated, or the main estate road will be transferred to the Management
lease is assigned or the property is sub-let as a whole, or the part occupied is sub-let Company in due course.
PERMITTED USE: Warehouse and/or distribution with ancillary offices falling
within Use Classes B1, B2 or B8. and the tenant must ensure that the premises is free from all such third-party interests
prior to assignment/sub-letting. If an occupier ceases to be a concession, franchise
REPAIR: The tenant is obliged to well and substantially repair, maintain and clean and/or contractor then such occupation will cease immediately. No more than 50% of
the premises and to keep the premises in good and substantial repair. the GIA will be occupied by such concessions, franchises and/or contractors and the
tenant is obliged to notify the landlord of the identity of any concessions, franchises
YIELDING UP: The tenant must yield up the premises repaired, maintained,
and/or contractors prior to occupation and provide the landlord with full details of
cleaned and decorated in accordance with the tenant’s covenants in the lease.
the concessions, franchises and/or contractors within 14 days of such a request. No
interest greater than a tenancy at will can be created by these arrangements.
RENT REVIEW: 5 yearly, upward only rent reviews to market rent assuming
a 5 year hypothetical lease.
INSURANCE: The landlord is obliged to provide insurance for the Premises
at the tenant’s cost.
Existing Alloga warehouseALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
10 Covenant
Alloga UK Limited (Alloga UK) is a member of Walgreens Boots Alliance, which is the first global pharmacy-led, health and wellbeing enterprise in the world.
Walgreens Boots Alliance was created through the combination of Walgreens and ALLOGA UK - ACCREDITATION
Alliance Boots in December 2014. This transaction brought together two leading
companies with iconic brands, complementary geographic footprints, shared values MHRA (Medicines and Healthcare products Regulatory Agency) and Home Office
and a heritage of trusted healthcare services through pharmaceutical wholesaling approved, and GDP compliant, Alloga UK’s extensive list of accreditations and licences
and community pharmacy care, dating back more than 100 years. allows Alloga UK to offer a comprehensive service portfolio designed to optimise
client supply chains. The company is also ISO accredited for ISO 9001: 2008 Quality
The Company, with a presence in more than 25* countries, employs over 385,000* Management Systems, ISO 14001: 2004 Environmental Management Systems, and
people and is the largest retail pharmacy, health and daily living destination in the ISO 22301: 2012 Societal Security - Business Continuity.
USA and Europe, and (including equity method investments) is:
• The global leader in pharmacy-led, health and wellbeing retailer with over 13,200* ALLOGA UK
stores in 11* countries – MARKET POSITION AND GROWTH
• One of the largest global pharmaceutical wholesale and distribution networks with Alloga UK is the UK’s undisputed leading healthcare supply chain service provider1.
over 390* distribution centres delivering to more than 230,000 pharmacies, doctors,
The company has experienced significant growth over the last five years. Today,
health centres and hospitals each year in 20* countries
the company employs 800 employees and has six warehouse facilities1. Alloga UK’s
• One of the world’s largest purchasers of prescription drugs and many other health multi-user environment supports over 135 clients1 including 20 of the top
and wellbeing products. 50 pharmaceutical companies.
* As at 31 August 2017. Source: AmerisourceBergen.
The company’s growth has been fuelled by a continued focus on quality and
differentiation of services, supported with ongoing investment in infrastructure.
The Company’s portfolio of retail and business brands includes: Walgreens, Duane
Alloga UK’s business has grown from a combination of additional activity with its
Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty
existing client base, supplemented with new clients placing their supply chain
product bands such as No7, Soap & Glory, Liz Earle, Sleek MakeUp, and Botanics.
requirements in the hands of Alloga UK.
Alloga UK is one of Europe’s leading specialist pre-wholesale and contract logistics
Alloga UK is located in South Normanton, Derbyshire, due to its excellent access to the
providers, and offers supply chain solutions to the UK healthcare industry. It provides
UK motorway network, along with the quality of the available local employee skills.
specialist storage, fulfilment and distribution services for pharmaceutical, healthcare,
1
Source: https://www.alloga.co.uk/AboutUs
medical device, veterinary and consumer product manufacturing companies.
These services include multi-temperature storage and transportation, Home Office
approved for storage and distributing of controlled drugs, Active Pharmaceutical
FINANCIAL PERFORMANCE
Ingredients logistics, contract packing and customer service solutions. According to Experian, Alloga UK (Company Number: 03169255) has produced the
following headline figures over the past 3 years:
The UK pharmaceuticals market is a highly regulated market, where the stock must
be stored under licensed conditions. Furthermore, there are strict regulations that 31st August 2015 31st August 2016 31st August 2017
determine the temperature range, and security provisions that certain products must Sales Turnover £59,496,000 £65,755,000 £71,386,000
be stored at. Alloga UK is a sophisticated and complex business with material barriers
Profit Before Taxes £14,667,000 £17,215,000 £17,760,000
to market entry by its competitors.
Shareholders’ Funds £19,240,000 £33,003,000 £34,143,000
Due to the sensitive nature of many of the products being handled, Alloga UK offers
the best possible service to its manufacturer clients and their customers, ensuring Alloga UK have an Experian risk rating of “Very Low Risk”.
the products arrive safely into pharmacies, hospitals, wholesalers, pharmacy
multiples, veterinaries, veterinary wholesalers, and retailers across the UK.
Existing Alloga warehouseALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
11 Market Commentary
SHEFFIELD
M1 Worksop
A619
OCCUPATIONAL Chesterfield INVESTMENT MARKET COMMENTARY
MARKET COMMENTARY £6.00 psf
J29 A1 The key features of the UK Investment Market for the warehouse sector continues to be an increasing
Tenant demand for Grade A industrial/warehouse THE PEAK weight of capital pursuing a very restricted level of stock. Investors continue to be attracted by the
DISTRICT A614
accommodation has been particularly strong over A61
Mansfield prospect of material rental growth which is being driven by ongoing occupational demand coupled with
the last 3 years. Consequently, the East Midlands A6 restricted supply. As such the sector has witnessed strong returns. Set out below is a table of the latest
A617
has witnessed both a reduction in existing supply, J28 comparable evidence:
and healthy levels of rental growth. As a result of A38 A60
A515
the diminution in supply, tenants are increasingly £6.00 psf J27 DATE ADDRESS AREA TENANT UNEXP LEASE PRICE PRICE ESF YIELD
being compelled to focus on the “design and build” A38 (SQ FT) TERM (YRS)
A46
development route to satisfy their requirements. Jul 18 The Hub, 241,885 Lifetime Brands 15 £33,800,000 £139.74 4.40%
J26 £6.25 psf
A map illustrating the current tone of headline A52 Birmingham Europe Ltd (t/a
rents in the region is illustrated to the right. Kitchen Craft)
£6.25 psf NOTTINGHAM May 18 Unit 2, Mountpark 317,585 Eddie Stobart Ltd 15 £39,575,000 £124.61 4.40%
DERBY J25
Bardon, Robson
A50 Way
£6.50 psf J24
Apr 18 DCS Prologis 213,526 Anixter 20 £26,500,000 £124.11 4.45%
Park, Fradley
Burton J23a Park, Lichfield
upon Trent A46
A42 Loughborough Jan 18 Tithe Barn Way, 172,928 Eddie Stobart Ltd 13.5 £19,900,000 £115.08 4.75%
M6 A38 M1 Swan Valley
M6TOLL
M42
A444 LEICESTER
J21 A47
M69 A6
M6
A5
BIRMINGHAM
M42 M6
J19
Existing Alloga warehouseALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
12 Environmental
WSP UK Limited have undertaken a Phase I Environmental Assessment of Plots 2 and 3.
The conclusion of the report is that the site represents a low/moderate risk.
A full copy of the report is available in the Data Room.
Parker Knoll warehouse, CastlewoodALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
13 Planning
The subject site forms part of the wider
development known as Castlewood
Business Park, which was originally
granted an outline Planning Permission
jointly by Bolsover District Council and
Ashfield District Council. Plots 2 & 3
are exclusively under the jurisdiction
of Ashfield District Council and a
detailed application was approved by
them on the 31st July 2018
(reference V\2018\0217).
BREEAM AND EPC RATINGS
The proposed building will have a BREEAM rating
of ‘Very Good’ and an EPC rating of A.
Proposed Alloga Unit
Proposed Alloga UnitALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
Co-op warehouse, CastlewoodALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
14 The Project Team
THE DEVELOPER THE CONTRACTOR
The CWC Group was founded over 50 years ago by the former Chairman, Charles W Formed in 2001, Winvic Construction Ltd is a privately owned main
Clowes. The group has established a strong and resourceful team within a resilient contractor operating throughout the UK, providing design and build
corporate structure, built on a family of focused and dedicated companies. construction services across five key sectors: industrial, fit-out, civils
& infrastructure, multi-room and retail & leisure.
The flexibility provided by this structure, together with prudent and entrepreneurial
management, has delivered strong year on year growth, even through recessionary Winvic is widely known as the UK’s leading ‘shed specialist’, delivering
periods. This has provided a sound financial platform for the Group to take up millions of square feet every year for the industrial and distribution
opportunities, through its own resources, as and when they arise. sector. Winvic can service any project stage from initial civils and
infrastructure works through to construction and fit-out, offering
CWC Group is now one of the strongest and largest privately owned property turnkey solutions for developers.
development groups in the UK. It is regarded as one of the premiere logistics
developers. CWC Group have a 1st class track record in delivering large, Winvic have an established relationship with the developer. Projects
and complex industrial and warehouse developments which have been funded out delivered to date include the 1,000,000 sq ft M&S warehouse at
by numerous well-known UK Institutional Investors. The Group is well placed to meet EMDC, and at Castlewood they have delivered the 480,000sq ft
the challenges and opportunities over the next 50 years with a material Balance Sheet Co-op distribution facility and Alloga’s existing 220,000 sq ft warehouse,
showing Shareholder’s Funds in excess of £168M. Unit C2.
The Group owns about 130 sites nationwide and which provides them with a land bank In addition to major infrastructure works at East Midlands Gateway,
of approximately 3000 acres (1,214 hectares). Winvic are currently delivering the first four development plots for
Roxhill and Segro, ranging from 120,000 sq ft to 1.3m sq ft, including
The Group operates from an extremely solid financial basis, built through a risk averse a 600,000 sq ft distribution centre with a 35m high bay facility.
approach and sound judgement.
The group has grown organically over many years with periodic company acquisitions.
CWC Group now owns industrial, commercial, office, retail, leisure, residential and EMPLOYER’S AGENT
mixed used sites and assets throughout the UK; which are run through 16 active
trading companies and a number of management/service companies.
Clowes Developments (UK) Limited (Company Number: 00819793) have an Experian David Postins has been in the construction and development business
Rating of Very Low Risk, and according to Experian have produced the following for over 35 years. After working at senior management level for a number
results: of main contractors David decided to migrate to the development side of
the industry joining ProLogis in 2000. After 4 years at the company David
Yr End March 2015 Yr End March 2016 Yr End March 2017
left to become self-employed providing project management services
Turnover £76,567,437 £46,567,711 £93,163,500 to a number of clients. In 2009 David set up Postins Project Services
Pre-Tax Profit £26,559,802 £18,207,948 £29,093,461 to continue providing Employers Agent/Project Management services
to private clients and developers. David has personally supervised the
Shareholders’ Funds £130,352,079 £144,998,547 £168,326,184
delivery of over 4.5 million square feet of B1/B2/B8 development ranging
in size from 15,000 sq ft to 750,000 sq ft.ALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
15 Proposal
PROGRAMME
The construction programme has commenced and Practical Completion is scheduled
for May 2019.
DATA ROOM
Please contact one of the Kimmre sales team for this project to gain access to the
Data Room. Contact details are provided at the end of this brochure.
VAT
The property is elected for VAT.
PROPOSAL
This funding proposal is being offered on a 2 cheque basis. We are seeking offers in
excess of £24,150,000 (TWENTY FOUR MILLION AND ONE HUNDRED AND FIFTY
THOUSAND POUNDS), subject to contract, and exclusive of VAT.
In the first instance, the purchaser will be required to buy the land for the sum of
£3,656,000* (THREE MILLION SIX HUNDRED AND FIFTY SIX THOUSAND POUNDS)
subject to contract and exclusive of VAT. As such the true* level of purchaser’s costs
would be 2.51%.
Below is a table illustrating a purchaser’s respective returns based on the asking
price, assuming an ERV of £6.00 per sq ft, and full purchaser’s costs (6.76%):
Net Initial Yield 4.50%
Equivalent Yield 5.50%
Reversionary Yield 5.81%
Capital Value per Sq Ft £97
Allowing for Purchaser’s costs of 2.51% the NIY will be 4.69%.
*Construction has commenced. As such, at the time of the land purchase, the land purchase price will need to be adjusted
to reflect the value of the works completed at that time.
Parker Knoll warehouse, CastlewoodALLOGA UK LTD
Castlewood Business Park | Nottingham | NG17 1BX
A Prime and Highly Reversionary
Pre-Let Logistics Investment Opportunity
16 Further Information
FOR FURTHER INFORMATION
PLEASE CONTACT
Peter Winfield
T: 0207 952 6101
M: 07778 159 402
E: peter.winfield@kimmre.com
Theo Quarendon
T: 0207 952 6299
M: 07741 633338
E: theo.quarendon@kimmre.com
MISREPRESENTATION ACT 1967
Kimmeridge Real Estate Ltd on its own behalf and for vendors
or lessors of this property, whose agent it is, gives notice that:
1. The particulars are produced in good faith, but are a general guide
only and do not constitute any part of a contract. 2. No person in the
employment of the agent(s) has any authority to make or give any
representation or warranty whatsoever in relation to this property.
3. The property is offered subject to contract and unless otherwise
stated all rents are quoted exclusive of VAT. 4. Nothing in these
particulars should be deemed a statement that the property is in
good condition, or that any services or facilities are in working order.
5. Unless otherwise stated, no investigations have been made
regarding pollution, or potential land, air or water contamination.
Interested parties are advised to carry out their own investigations
if required. Publication Date: September 2018.
Design by carve-design.co.uk 13674
Co-op warehouse, CastlewoodYou can also read
