PRIME, SINGLE LET INDUSTRIAL - INVESTMENT OPPORTUNITY
REAL ESTATE PRIME, SINGLE LET INDUSTRIAL INVESTMENT OPPORTUNITY BRADY CORPORATION LIMITED CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST
- INVESTMENT SUMMARY
- Excellent strategic location on the established Bredbury Industrial Estate, adjacent to J25 of the M60 Motorway, South Manchester.
- Prominent, well specified industrial warehouse providing 46,290 sq ft of accommodation.
- Large site extending to 3.05 acres, providing a low built density of just 30%.
- Potential to extend the warehouse accommodation (subject to planning).
- Let to the substantial covenant of Brady Corporation Ltd (D&B 4A1) on a 10 year lease from 4 April 2014, subject to an option to break on the 6th anniversary (3.5 years unexpired).
- Rent of £250,000 pa (£5.40 psf).
- Asset management opportunities including potentially extending the warehouse accommodation and re-gearing the existing lease to the tenant.
- We are seeking offers in excess of £3,610,000 (Three Million Six Hundred and Ten Thousand Pounds), subject to contract and exclusive of VAT.
- NIY of 6.5%, assuming purchaser’s costs of 6.51%. BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE M60 J25 ASHTON ROAD KEY UK Point of Sale Optimas Stocktons Smith News Convergys Kerry Fresh Hadfields Satake Europe Allied bakeries Ainscough Crane Hire TNT Aggregate Industries Yess Electrical Euro Car Parts Antala Ltd DVLA BT Woodstock Leabank Robinsons RSAAR Stanley Trescal Veridor Solutions SK Renthal Hilti Janome Boxes and Packaging Direct Express Logistics Subway 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE BREDBURY PROVIDES EXCELLENT ACCESS TO MANCHESTER CITY CENTRE, THE REGIONAL MOTORWAY NETWORK & MANCHESTER AIRPORT LOCATION Bredbury is a suburban town to the north east of Stockport and sits north and east of junction 25 of the M60 motorway, providing good access to Manchester City Centre (8 miles), the regional motorway network and Manchester Airport 10 miles to the south west. Stockport is one of the 10 boroughs forming the Greater Manchester conurbation and is a major administrative and commercial centre, being home to over 285,000 people.
Stockport Railway Station, within 2 miles of the property, offers frequent Virgin West Coast mainline services to Manchester (8 minutes) and London (2 hours), together with regional and local suburban and commuter services provided by Transpennine and Northern Rail. Bredbury is served by a local station that is part of this commuter network. Manchester Airport, the UK’s largest regional Airport outside of London, is located approximately 10 miles to the south east of Bredbury. The Airport handles approximately 120 tonnes of import and export freight and mail annually. The Airport also serves 22m passengers a year, providing flights to 220 destinations worldwide.
St Helens Ashton Leeds Manchester Airport Rochdale Widnes Sale Runcorn Leigh Manchester Bolton Wigan Warrington Stockport J18 J19 J24 J4 J25 J3 J2 J2 J1 J17 J15 J12 J7 J20 J19
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE INGARD LANE A6 01 7 A560 AS HT ON RO AD A5 60 STOCKPORT ROAD EAST STUART ROAD BRED BURY PARK WAY SOUT HSIDE CORRIE WAY WHITEFIELD ROAD RECYCLING CENTRE WASTE PROCESSING FACILTY M60 M60 M60 M60 SITUATION The property is located on the very busy and successful Bredbury Industrial Estate, which is one of south Manchester’s and the North West’s key industrial areas. The estate is home to over 100 businesses and extends to approximately 220 acres, making it one of the largest estates in the south Manchester conurbation.
The estate is well established having been developed since the 1980’s on greenfield land and is now fully developed, providing a mixture of distribution and manufacturing units, industrial estates, starter units and business office schemes.
The subject property is situated in a highly prominent position, located at the junction of Corrie Way and Horsfield Way, two of the main arterial routes running through the estate. The property benefits from access points from each of these roads. Occupancy levels on Bredbury Industrial Estate are extremely high and the property is surrounded by a variety of well-known occupiers including Smiths News, Frederick Robinson, Mitie Technical Facilities Management, Allied Bakeries, Euro Car Parts, Hilti and UK Point of Sale amongst many others.
- BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE HORSEFIELD W AY CORRIE WAY DESCRIPTION The property comprises a well specified industrial warehouse of steel portal frame construction beneath a metal clad roof. It has been constructed to a high specification as summarised below: WAREHOUSE
- Three electrically operated level loading doors.
- Heated and lit throughout the warehouse
- Eaves height of 5.9m to underside of haunch
- Metal clad roof incorporating translucent roof panelling
- Concrete floor slab
- 5 tonne gantry crane in situe OFFICES
- Two storey office accommodation adjoining the eastern elevation of the warehouse
- Fully heated and lit with air conditioning to part
- Open plan and cellular accommodation
- Male and Female WCs EXTERNAL
- Main concrete yard area to the rear of the property, with an additional service yard and staff / visitor parking to the front
- Secure fully fenced site with gated access from both Corrie Way and Horsfield Way The tenant has undertaken substantial fit-out works, including the installation of additional mezzanine accommodation.
ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following gross internal floor areas:- DESCRIPTION SQ M SQ FT Warehouse 3,223.64 34,699 GF Offices 531.59 5,722 FF Offices 545.22 5,869 TOTAL 4,300.45 46,290 SITE The site extends to a total of 1.23 ha (3.05 acres), providing a low built density of just 30%. The configuration of the site allows for the third bay of the industrial accommodation to be easily extended to the same length of the other two bays (subject to planning).
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE ASET MANAGEMENT OPPORTUNITY TO EXTEND THE THIRD BAY OF THE PROPERTY
TENANCY TENURE The property is held freehold. TENANCY The property is let to Brady Corporation Limited for a term of 10 years from 4 April 2014 on a full repairing and insuring basis. The tenant has the benefit of an option to determine on the sixth anniversary of the lease, subject to 12 months written notice. The passing rent of £220,000 pa (£4.75 psf) is subject to the following uplifts: Rent (£pa) Rent (£psf) 4 April 2017 £230,000 £4.97 4 April 2018 £240,000 £5.18 4 April 2019 £250,000 £5.40 For the purpose of this sale the vendor will top-up the rent to the headline rent of £250,000 pa (£5.40 psf).
There is a further upwards only rent review to Open Market Rent on 4 April 2020.
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE LOW SITE DENSITY OF JUST 30%
TENANT COVENANT BRADY CORPORATION Brady Corporation is an international manufacturer and marketer of complete solutions that identify and protect people, products and places. Brady’s products help customers increase safety, security,productivityandperformanceandincludehigh-performance labels, signs, safety devices, printing systems and software. Foundedin1914,theCompanyiscurrentlylistedontheNewYorkStock Exchange and employs 6,400 worldwide.
It has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady’s fiscal 2016 sales were approximately $1.12 billion. Brady Corporation Limited is the UK business of Brady Corporation and has a Dun and Bradstreet rating of 4A1. The company has published the following accounts: Year End 31 Jul 2015 Year End 31 Jul 2014 Year End 31 Jul 2013 Turnover £43,856,000 £44,743,000 £45,836,000 Pre-tax Profit £1,980,000 £2,775,000 (£6,420,000) Net Worth £3,468,000 £27,127,000 £22,777,000 ASSET MANAGEMENT The tenant has indicated that they would potentially be willing to undertake negotiations regarding extending the third bay of the property in order to provide additional warehouse accommodation.
It may therefore be possible to re-gear the lease as part of the these negotiations.
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE BRADY CORPORATION HAS A DUN & BRADSTREET RATING OF 4A1
MARKET COMMENTARY The Metropolitan area of Manchester is one of the UK’s largest urban areas, second only to London in terms of size and importance and has a large and healthy economy. The City is surrounded by the M60 Orbital motorway, which provides direct access to the M56, M61, M62 and M66 motorways as well as Manchester Airport. The south Manchester industrial and distribution market has performed strongly over recent years, driven by its excellent transport connectivity, skilled workforce and proximity to nearbywealthy south Manchester commutertowns.
This healthy level of demand, combined with a shortage of supply in the south Manchester market has resulted in a low void rate across Bredbury Industrial Estate, which in turn is driving increases in rental levels. BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE
BRADY CORPORATION LIMITED | CORRIE WAY | BREDBURY | SOUTH MANCHESTER | SK6 2ST REAL ESTATE PROMINENT, WELL SPECIFIED INDUSTRIAL WAREHOUSE PROVIDING 46,290 SQ FT OF ACCOMMODATION. REAL ESTATE