DRAFT - Cushman & Wakefield Lo… · DRAFT. Investment Summary • Single let industrial unit in an established distribution location. • Located just 8 miles west of Glasgow city

PRIME DISTRIBUTION WAREHOUSE INVESTMENTBURNBRAE DRIVE | PAISLEY | PA3 3BW

DRAFT

Investment Summary• Single let industrial unit in an established distribution location.

• Located just 8 miles west of Glasgow city centre and 1.5 miles from Glasgow Airport.

• Purpose built, high specification warehouse and storage facility extending to 12,278.86 sq m (132,168 sq ft).

• Let to Agility Logistics Limited (4A1 Dun & Bradstreet rating) on a full repairing and insuring lease expiring 21st December 2020.

• Current passing rent of £727,985.76 per annum (£5.51 per sq ft).

• Absolute Ownership (Scottish equivalent of English Freehold).

• Offers in excess of £7,410,000 (Seven Million, Four Hundred and Ten Thousand Pounds Sterling), subject to contract and exclusive of VAT are invited for the Absolute Ownership in the property.

• This represents an attractive net initial yield of 9.25%, after allowing for purchaser’s costs including LBTT, and a low capital value of £56.07 per sq ft.

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PRIME DISTRIBUTION WAREHOUSE INVESTMENT AGILITY LOGISTICS LIMITED | BURNBRAE DRIVE | PAISLEY

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GLASGOW AIRPORT

SHOWCASECINEMA

PHOENIXLEISURE

PHOENIX RETAIL PARK

WH MALCOLM RAIL TERMINAL

LocationThe property is located within Phoenix Business Park in Linwood, 8 miles west of Glasgow city centre and 2.5 miles from Paisley.

The business park lies on the western side of the A761 which links Paisley to Greenock and Port Glasgow. This area consists mainly of office, industrial and distribution facilities. The subject property is surrounded by major industrial occupiers including Menzies Distribution, TNT, DHL, Bunzl and WH Malcolm Ltd.

The park is complemented on the eastern side of the A761 by a retail and leisure scheme. This comprises an Asda supermarket, a 140,000 sq ft retail park, restaurants and a Showcase cinema.

M8 MOTORWAY

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Haulage contractsin Europe

MO

NDAY TO FRIDAY

7 DA

YS

7 DAYS

Main Rail NetworkRoutes to Ports

• Inverness

• Aberdeen

Glasgow •Linwood• Edinburgh

• Grangemouth

Mossend•

•

• ManchesterLiverpool

•

Birmingham •

•Bristol

London •

Southampton •

• Tilbury

Felixstowe •DIRFT

•

• Thamesport

A71

A71

A73

A721

A702

A702

A72

A707

A720

A68

A68

A1

A7

A7

A76

A70A77

A78

A78

A737

A82

A726

M74

M77

M8 M73

M80

M80

M9

M8

M77

GLASGOW

EDINBURGH

QUEENSFERRYGRANGEMOUTH

PEEBLES

HARWICKCUMNOCK

MAUCHLINE

DARVEL

DOUGLAS

CARLUKE

EAST KILBRIDE

BELLSHILL

KILMARNOCK

AYR

IRVINE

Troon - Larne

BEITH

DALRY

DUMBARTON

DENNY

LIVINGSTON

DUNFERMLINE

EDINBURGH AIRPORT

PRESTWICK AIRPORT

GLASGOW AIRPORT

A807

A879

A803

B819

A803

PAISLEYLINWOOD

TransportThe subject property benefits from good connectivity to Scotland’s motorway network. The nearby Linclive Interchange on the A737 provides direct access to the M8 motorway, allowing transport across and outwith Scotland’s Central Belt. The M8 links to the M74, providing onward connections to the south and the national motorway network.

Glasgow International Airport is located 1.5 miles north west of the development and is one of Scotland’s busiest airports. Freight distribution has increased over the past 5 years to reach over 15,000 tonnes in 2014, while passenger numbers in the same year were over 7.7 million.

The subject property is adjacent to a rail terminal operated by WH Malcolm. This provides daily and overnight freight transport services between five UK depots. The nearby Linwood depot is connected to Grangemouth, the UK’s largest feeder port, with throughput of 150,000 containers per year.

This local transport infrastructure has contributed to Phoenix Business Park’s popularity as a location for distribution warehousing.

AGILITY LOGISTICS LIMITED | BURNBRAE DRIVE | PAISLEY

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DescriptionThe subjects comprise a purpose built industrial/distribution unit constructed over two phases in 1997 and 1999. Ancillary office accommodation is arranged over two floors and was extended in 2000. The property was built to bonded standards and is of steel portal frame construction, with a double skin roof of insulated profiled cladding and reinforced concrete floor. The property benefits from the following features:

• Clear internal eaves height of 7.0 metres.• 8 loading doors, including 4 floor dock levellers.• Two steel frame canopies creating an external

loading bay.• Double height glazed reception area with staircase

and passenger lift.

• Modern office/staff accommodation over ground and first floors.

• Secure site with 24 hour security and CCTV cameras. • Security gatehouse and barrier control

vehicle access.• Site area of 2.5 hectares (6.4 acres).

Within the site there is a customer and staff car park located adjacent to the north elevation and further staff car parking located adjacent to the west elevation.


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AccommodationThe property has been measured on a gross internal area basis in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provides the following approximate areas:

Description GIA Sq M GIA Sq Ft

Warehouse 10,100.45 108,720

Offices 2,178.41 23,448

Total 12,278.86 132,168

TenureAbsolute Ownership (Scottish equivalent of English Freehold).


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Tenant InformationAgility Logistics Limited is part of Agility’s global integrated logistics business. This service line provides supply chain management and solutions, with a network of over 1,000 service centres worldwide. The company is a Top 15 industry leader following acquisition of over 40 logistics brands globally. Agility operates in 100 countries with over 20,000 employees and annual revenues of $4.85 billion.

Agility use the Linwood distribution centre for the purposes of freight forwarding primarily by sea and land. They provide a “pick and pack” service for their national and international clients in the I.T. and workwear businesses.

The property has a capacity for 13,000 pallets.

Agility Logistics Limited (Reg Number: 00112456) has a Dun & Bradstreet rating of 4A1, representing a minimum risk of business failure.

Year Ending 31st December 2012(000s)

31st December 2013(000s)

31st December 2014(000s)

Turnover £228,598 £235,851 £253,171

Pre-Tax profit £3,796 £2,594 £3,734

Total Net Worth £12,126 £12,275 £15,503

TenancyThe property is let to Agility Logistics Limited on a Full Repairing and Insuring lease for a term of 20 years from 21st December 2000, expiring on 21st December 2020.

The lease is subject to 5 yearly, upward only rent reviews. At rent review, the landlord is entitled to elect to review the property either as a whole or as two units.

The current rent passing is £727,985.76 per annum excluding VAT (£5.51 per sq ft).


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PRIME DISTRIBUTION WAREHOUSE INVESTMENT

Scottish Industrial MarketThe Scottish industrial market has seen good levels of activity over the past 18 months and has continued to attract a range of property investors. Recent comparable single let industrial investment transactions are highlighted in the table below.

Address Date Purchaser Price NIY Capital Value PSF Comments

M8 Central, Newhouse Industrial Estate, Newhouse

Oct 2015 Threadneedle £4.15m 8.04% £87.08 Let to UPS Limited until January 2020.

2 Campsie Drive, Glasgow Airport, Paisley

June 2015 Custodian REIT Plc £1.20m 7.53% £74.34 Let to DHL Express (UK) Ltd until February 2020.

21 Coddington Crescent, Eurocentral

May 2015 Exeter Property Group

£7.65m 4.53% £46.42 Let to Wincanton UK until January 2018 with tenant break option at January 2016.

55 Westburn Drive, Cambuslang

Apr 2015 Custodian REIT Plc £2.14m 8.75% £103.98 Let to Brenntag (UK) Limited until April 2021.

Condor Glen, Motherwell Sep 2014 Gatehouse Bank Plc/Sidra Capital

£24.21m 6.75% £66.67 Let to TDG until May 2027. Rent reviews in 2019 and 2024.

Central Point, Logistics Park, Eurocentral

May 2014 Mayfair Capital £16.10m 7.65% £65.80 Four high quality distribution units let to Wincanton, TRAC, Mentholatum and ACS, 12.1 years to expiry and 4.6 years to breaks.


Source: Cushman & Wakefield

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Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give 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 b 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. Date of publication – October 2015.

Steven NewlandsTelephone: 0131 226 8756

Email: [email protected]

Calum CoweTelephone: 0131 226 8759


Natasha RossTelephone: 0131 226 8735


VATThe property has been elected for VAT however it is anticipated the sale will be dealt with as a Transfer of a Going Concern (TOGC) in which event VAT, which otherwise would be due, will not be payable on the purchase price.

EPCThe property has an EPC rating of B+. A full EPC can be provided upon request.

ProposalWe are instructed to seek offers in excess of £7,410,000 (Seven Million, Four Hundred and Ten Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership in the property. A purchase at this level would represent an attractive net initial yield of 9.25%, after allowing for purchaser’s costs based on Land & Buildings Transaction Tax.

DRAFT

DRAFT - Cushman & Wakefield Lo… · DRAFT. Investment Summary • Single let industrial unit in an established distribution location. • Located just 8 miles west of Glasgow city

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