HCA Presentation to stakeholders - Ian Knight, Cranbrook, 19 Nov 2014
Wholesale District, Nottingham, NG2 3JJ
1. Wholesale District | Clarke Road | Nottingham NG2 3JJ
INVESTMENT
OPPORTUNITY
• Well let market opportunity providing
accommodation totalling 35,806 sq ft
• Rare opportunity to acquire a large site
close to Nottingham City Centre
• Excellent transport links;
close to J25 of the M1
• Attractive initial yield of 9% with
scope to improve upon letting
of vacant units
• Current passing rent of £200,978
• Low capital value of £59 per sq ft
• Offers in excess of £2.1m
2. Location
Nottingham is the commercial and
administrative centre for the East Midlands.
The population of the Nottingham/Derby
metropolitan area is estimated to be 1,543,000.
The property is located in a mixed use area of predominantly
warehouse/trade counter accommodation sandwiched between
the 2 principle trunk roads, A60 and A612, on the north bank of the
River Trent approximately ¾ mile south of Nottingham City centre.
The Wholesale District is located at the end of Clarke Road,
just off Meadow Lane which is accessed via the A60 London Road
providing a rare opportunity within minutes of Nottingham City
Centre. It offers convenient access to the south of Nottingham
via the A60 and its ring road system providing access to M1
Junction 25 which is 10 minutes to the West. The rear secondary
access point is on to Meadow Lane, running east/west, a major
arterial route, along which Nottingham County football ground
is also located. It is immediately adjacent to the Lady Bay Retail
Park where the principle tenants are The Range, Staples, SCS,
Hobbycraft and Poundworld.
Other nearby occupiers of note include Royal Mail, a local
authority works department, the City’s waste incineration plant
and Yess Electrical.
Description
The development which was built in 1993 is on a site
of approximately 4 acres and comprises an L shaped
configuration of warehouse units together with a single
storey former administration block /café at the entrance
around a central car parking and loading area. The
warehouses have an eaves height of 6m
The units are of modern portal framed construction clad
with Plastisol coated corrugated sheeting with front and
rear roller shutter doors, front canopies above mainly glazed
ground floor frontages. Administrative offices are located
at first floor in most of the units.
Accommodation
The property has been measured in accordance with
the RICS Code of Measuring Practice (6th Edition).
The accommodation extends to 35,806 sq ft across
33 units that vary in size.
Tenure
The property is held under a long lease from Nottingham
City Council for a term of 125 years from 25 March 1993
at a peppercorn (103 years unexpired).
Tenancy
The property is fully let in accordance to the schedule
on the next page.
While the majority of tenants are market traders, uses have
now broadened to include B1, B2 and B8 use classes.
The leases are largely drawn on tenant internal repairing
terms with the landlord maintaining the foundations,
frame and external cladding of the units.
Covenant
70% of the rental income is derived from 4 tenants under
leases running until at least 2019 with 39% being paid by
Total Produce.
Total Produce Ltd
A significant company headquartered in Spalding
and incorporated in 2006 and employing 320 people.
According to their accounts to 31/12/13 they had a
Turnover of £82.4m, made a Pre Tax Profit of £1.46m
and had Shareholders Funds of £18.7m. They are part
of Total Produce Plc registered in Ireland with a Turnover
of €2.6 billion.
RW Fletcher Son
A small fruit and vegetable company incorporated in
1993 with shareholders funds of £9,000.
RM Flowers Ltd
Similarly was incorporated in 1988 and has shareholders
funds of £208,000.
Plumbline Ltd
A supplier and fitter of plumbing and heating appliances
incorporated in 1996 with shareholders funds of £206,000.
%
70
Wholesale District | Clarke Road | Nottingham NG2 3JJ
OF THE RENTAL
INCOME IS DERIVED
FROM 4 TENANTS:
• RM FLOWERS LTD
• RW FLETCHER SON
• TOTAL PRODUCE LTD
• PLUMBLINE LTD
4. Unit No Tenant
Area
sq ft
Passing rent
(£ p.a.)
Rent
per sq ft
Lease Start
Date
Next Review Expiry Break
Unit 1 R W Fletcher Son Limited 1,223 7,032 £5.75 09/05/2014 - 28/09/2019 -
Unit 2/3 R W Fletcher Son Limited 2,442 14,042 £5.75 29/09/2012 - 28/09/2019 -
Unit 4-7 R M Flowers Limited 4,844 19,733 £4.07 29/09/2012 29/09/2018 28/09/2022 -
Unit 8/9 Totally Brewed Ltd 2,442 14,652 £6.00 05/01/2015 - 04/01/2020 -
Unit 10 Vacant 1,198 - - - - - -
Unit 11 Intervend (UK) Ltd 884 5,250 £5.94 09/12/2014 - 08/12/2017 -
Unit 12 Creative Roots Landscaping Ltd 884 5,250 £5.94 09/12/2014 - 08/12/2017 09/12/2016
Unit 13/14 Vacant 1,800 - - - - - -
Unit 15 Solution Supplies Limited 900 5,000 £5.56 10/10/2014 - 09/10/2017 -
Units 16-23 Total Produce Ltd 12,438 77,675 £6.24 08/04/2014 - 07/04/2019 -
Unit 24 Plumbline Ltd 1,556 11,139 £7.16 28/02/2014 28/02/2019 27/02/2024 28/02/2019
Unit 25 Plumbline Ltd 1,556 11,139 £7.16 28/02/2014 28/02/2019 27/02/2024 28/02/2019
Unit 26 Albert L Robinson (Nottingham) Ltd 1,536 9,216 £6.00 29/09/2012 - 28/09/2017 -
Admin 1 Nigel Cosway t/a Nottingham Wholesale Packaging 163 2,312 - 01/08/2013 - 31/07/2016 -
Admin 2
W A G Bland, D Bland, R Bland, D Bland and A R Musson
t/a Bland Brothers
163 1,110 - 29/09/2003 - 28/09/2012 Holding Over
Admin 3 Clive Palethorpe 364 2,011 - 19/05/2014 - 18/05/2017 -
Admin 4 Dean Ward (trading as Flower Pot Men) 875 4,917 £5.62 01/01/2014 - 31/12/2016 -
Café Dean Ward 538 4,000 - 05/12/2014 - 04/01/2016 -
Storage G Walker - 5,000 - 29/09/2009 - 28/09/2015 -
CPP 2 Peter R Foster - 1,500 - 29/12/1995 -
Determinable on
1 months notice
-
Substation Substation - - - 30/11/1994 - 26/11/2119 -
Total rent £200,978
Tenancy Schedule
Wholesale District | Clarke Road | Nottingham NG2 3JJ
5. Service Charge
A general service charge (Approx. 57p/sq ft) is payable
in respect of the maintenance and upkeep of the
common areas of the site (save for units admin 1 4)
A higher charge (an additional £3.67) is levied to
wholesale operators to allow for the additional
services including waste disposal and cleaning.
The annual service charge is approximately
£100,000 per annum with a 1st April anniversary.
VAT
It is expected the transaction will take place as a TOGC.
EPC
Available on request.
site mapFigures denote unit number
1
Entrance
2/3
4/5
6
A1
A2
26
7 8/9
10
11
12
16
17
18
19
20
21
13/
14
15
22
23
24/
25
A4
A3
A5
Jonathan Brierley
T: 0113 323 7401 M: 07710 130 468
E: jbrierley@steadmanbrierley.co.uk
John Steadman
T: 0113 323 7400 M: 07710 130 469
E: jsteadman@steadmanbrierley.co.uk
Ted Hustler
T: 0113 323 7402 M: 07814 710 838
E: thustler@steadmanbrierley.co.uk
IMPORTANT NOTICE. These particulars do not constitute either the whole or any part of an invitation, offer or contract in relation
to the property described in the particulars. Steadman Brierley has no authority to make or give any representation or warranty,
express or implied, on behalf of any party in relation to the property. Whilst the particulars are given in good faith, intending
purchasers or tenants must satisfy themselves independently as to the accuracy of all matters on which they intend to rely.
All negotiations are subject to contract. March 2015
Further Information
For further information or to make arrangements to view the premises please contact:
Proposal
We have been instructed to seek offers
in excess of £2,100,000 (Two Million One
Hundred Thousand Pounds) subject to
contract for our client’s long leasehold
interest. A purchase at this price would show
an investor 9% with scope to increase upon
letting of vacant units, net of purchaser’s
costs at 5.8%.
Wholesale District | Clarke Road | Nottingham NG2 3JJ
