hig yeldyegnstgnurygirha vgmuyna m nd ounivp … · glenrothes is one of scotland’s five new...

HIGH YIELDING SINGLE LET INDUSTRIAL INVESTMENT OPPORTUNITY

UNIT V9, VIEWFIELD INDUSTRIAL ESTATE,GLENROTHES, KY6 2RS

UNIT V9 VIEWFIELD INDUSTRIAL ESTATE,GLENROTHES, KY6 2RS


A92

Kingdom Shopping Centre

Queensway Industrial Estate

Michael Woods Sports & Leisure Centre

Eastfield Industrial Estate

Police Scotland

Saltire Retail Park

Fife Council

Queensway Data

Centre

Glenrothes Energy Network

Scheme

Tullis Russell Regeneration Site

(850 homes)

Outline for indicative purposes only.

B921

INVESTMENT CONSIDERATIONS ■ Single let industrial investment opportunity located

in the primary industrial area of Glenrothes

■ 219,023 sq ft (20,347.7 sq m) industrial facility with associated office accommodation

■ Heritable Interest (Scottish equivalent of Freehold)

■ Fully let to the excellent covenant of Brand-Rex Ltd (a company of Leviton Manufacturing Company Inc.)

■ Low passing rent of £492,832 per annum (£2.25 psf)

■ 8.4 years to expiry (3.4 years to break)

■ Fixed rental uplift in 2021 to £557,594 per annum

■ Tenant heavily invested in the building having been in occupation since 1973

■ Low site coverage of 36%

■ Excellent asset management opportunities including removal of break and/or lease re-gear

PROPOSALOffers sought in excess of £3,950,000 (Three Million, Nine Hundred and Fifty Thousand Pounds) for the Heritable interest, subject to contract and exclusive of VAT. A purchase at this level reflects a very attractive net initial yield of 11.75%, reversionary yield of 13.31% and a low capital value of £18.03 psf, after deductions of standard purchaser’s costs at 6.05%.

DATA ROOMFor access to the Allsop Data Room, please use the following link: https://datarooms.allsop.co.uk/register/glenrothes



LOCATIONGlenrothes is one of Scotland’s five new towns, located in the centre of Fife, approximately 30 miles north of Edinburgh, 27 miles south west of Dundee and 19 miles south west of Dunfermline. In recent years, Glenrothes has become a focus for electronics manufacturing, earning the nickname ‘Silicon Glen’, with several global organisations choosing the town for their HQ’s.

Glenrothes benefits from direct access to the M90 via the A92, which connects the town with Dundee in the north and Dunfermline to the south-west. Glenrothes has also benefitted from the recent opening of the Queensferry Bridge, which improves road connections to Edinburgh with a journey time of 45 minutes.

Markinch & Glenrothes as well as Thornton railway stations are located to the east of the property and provide regular services to Edinburgh, Glasgow and Perth. Glenrothes bus station provides regular services to surrounding towns including; Dundee, Perth and St Andrews.

Edinburgh and Dundee airports are located within 30 miles and 28 miles of Glenrothes respectively providing regular services to 130 global destinations.

A92

B921

B969

A911A911B969

B921

B9130B921

A92

GlenrothesGolf Course

TanshallPark

Over StentonPark

CarltonPark

RIMBLETON

SOUTH PARKS

MACEDONIA

PITTEUCHAR

WOODSIDE

QUEENSWAY

SOUTHFIELD

TANSHALLCASKIEBERRAN

AUCHMUTYKINGDOM SHOPPING

CENTRE



CAR Miles

Dunfermline 19

Dundee 27

Edinburgh 33

RAIL STATIONS Miles

Glenrothes with Thornton

3

Kirkcaldy 7

Dunfermline 18

AIRPORTS Miles

Dundee 28

Edinburgh 30

Glasgow 73

PORTS Miles

Rosyth 21

Dundee 28

Forth 37

TRAVEL TIMES

A78

M1

M6

M62

M65

M60

M56

M66

M18

A1

A52

A1(M)

A1(M)

M180

A697

A702

A737

A703

A811

A915

A985

A696

A168

A68

A72

A82

A84

A82

A83

A82

A85

A85

A91

A92

A90

A71

A76

A70

A77

A75

A71

A68

A68

A69

A7

A7

A1

A9

A9

A1

M8M8

M9

M9

M74

M77

M80

M90

M73

DUNDEEDUNDEE

PERTHPERTH

EDINBURGHEDINBURGH

MOTHERWELLMOTHERWELL

KILMARNOCKKILMARNOCK

AYRAYR

DUMFRIESDUMFRIES

KIRKCALDYKIRKCALDY

STIRLINGSTIRLING

GLASGOW

GLENROTHES

Gourock Forth Ports LimitedGlasgow

Cumbernauld

Wemyss Bay

Largs

Glasgow Prestwick

Dundee Port

RosythPorts



REGENERATION OF GLENROTHES

TULLIS RUSSELL PAPER MILL REGENERATION SCHEME:

Plans have been submitted for a major regeneration project to transform the 58-hectare, Tullis Russell paper mill site to the north of Glenrothes town centre. The proposed scheme comprises 850 homes as well as retail and leisure facilities, business space, industrial units and a new care home. The scheme will see significant inward investment into Glenrothes giving the town an economic boost and allowing for further growth in the future.

Further information available at: http://www.scottishhousingnews.com

THE GLENROTHES ENERGY NETWORK DISTRICT HEATING SCHEME:

Fife Council, in conjunction with RWE and the Scottish Government has commenced the construction of the £42m District Heat Network on the Tullis Russell paper mill site. The district heat network will provide sustainable low carbon heat to a mix of industrial, commercial, community and domestic properties in Glenrothes as well as the Fife House complex helping Fife Council achieve its goal of reducing carbon emissions by 42% by 2020.

Further information available at: https://www.investinfife.co.uk/content/glen-heat-power-overview/

QUEENSWAY PARK DATA CENTRE:

Construction has started on a new £150m data centre facility located on the old Tullis Russell paper mill site. The scheme will provide the largest and most energy efficient data centre campus in Scotland and provide over 300 construction jobs and 50 full time posts created on completion.

The data centre will be the first facility of its kind in the UK to draw 100% of its energy from renewable sources.

Further information available at: http://www.qpdc.co.uk/

SITUATION

The property is located to the south-west of Glenrothes forming part of the primary industrial location within the town. The property is accessed by the B921 via Viewfield Road which leads directly to the A92 (5 mins). The A92 provides direct access to the M90 (20 mins) which in turn leads Dunfermline (25 mins) and the newly opened Queensferry Crossing (25 mins).

The surrounding area is characterised by a mix of industrial, leisure and residential uses. Fife College and the newly constructed Michael Woods Sports and Leisure Centre are located adjacent to the subject property with other notable surrounding occupiers including; Bosch, Police Scotland, Fife County Council, Lexicon Europe, Travelodge and Royal Mail.

Glenrothes is under-going a significant regeneration programme with a pipeline of over £500m of inward investment to the town. There are a number of large scale developments currently under construction or in planning stages which will have a significant impact on the economic scale of Glenrothes and trigger further growth over the coming years. Examples of these schemes include the following:



SCHEDULE OF ACCOMMODATION

Floor Use Sq m Sq ft

Ground Warehouse 16,669.20 179,427

Office/Reception 2,959.10 31,851

First Office 719.40 7,743

Total 20,347.7 219,023*

*Areas exclude 2,536 sq ft of tenant fit out.

SITEThe property comprises a rectangular shaped site totalling 13.51 acres (5.466 hec) providing a low site coverage of 36%.

TITLEHeritable Interest (Scottish equivalent to Freehold).

DESCRIPTIONThe property comprises a large manufacturing facility arranged over ground and first floor totalling 219,023 sq ft (20,347.7 sq m). The property was originally constructed in 1973 and has been extensively extended and altered in subsequent phases, with the most recent additions constructed in the late 1990’s.

The building comprises predominantly open plan manufacturing/warehouse accommodation over the ground floor level with recently refurbished office, reception and staff kitchen facilities to part. The first floor provides a mix of office accommodation, staff rooms and laboratories/testing facilities. The main manufacturing/warehouse accommodation is of steel portal frame construction with brick elevations beneath a pitched roof over-clad with profiled steel. The more recent office buildings to the front of the facility are steel framed and flat roofed with predominantly glazed elevations.

On-site parking facilities are provided via a large car park to the east of the site. To the rear of the site there is a goods handling unit with dock levellers and roller shutters. To the south east corner of the site is a yard area for plant and material storage.

Coal Yard

100.6m

101.0m

Chy

FSFS

Chys

ESS

L Twr

WB

CABLE ROAD

BALFOUR GARDENS

VIEWFIELD

Viewfield Roundabout

ST

EN

TO

N R

OA

D

El

Sub Sta

ESS

El Sub Sta

El Sub Sta

10

12

Tank

Scrap Yard 23

3

El Sub Sta

16

Institute

1e

24

28

2

Glenrothes

1

ESSs

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:2054© Crown Copyright, ES 100004106. For identification purposes only.

TENANCYThe property is fully let to Brand Rex Limited on a 20 year lease subject to stepped rental uplifts in 2016 and 2021. The current passing rent is £492,832 per annum, reflecting £2.25 psf.

Tenant Name Area (Sq ft)

Area (Sq m)

Lease Start Expiry Date Rent Review Break Current Rent £pa

Rate £psf

Comments

Brand-Rex Ltd a company of Leviton Manufacturing Company Inc.

219,023 20,347.7 06/10/06 05/10/26 06/10/21 05/10/21 £492,832 £2.25 Step rental uplifts in Oct 2021 to £557,594 p.a.

Mutual break (subject 12 months written notice).

Lease subject to a schedule of condition.



Brand-Rex Limited is a market leading producer of wiring, structured cabling and optical systems for data centres and other telecommunication facilities. The company has two manufacturing factories in the UK including the subject property and a smaller facility in Leigh. Brand-Rex is synonymous with Glenrothes having been based in the subject property since the company started in 1973.

In 2015 Brand-Rex Limited was acquired by American electrical equipment manufacturer Leviton Manufacturing Company Inc. Leviton is the largest privately owned manufacturer of electrical wiring equipment in North America employing over 7,000 people globally and producing over 25,000 products, of which can be found in over 90% of American homes.

Brand-Rex was initially run as a subsidiary of Leviton’s Network Solutions division but in January 2018 the two companies fully merged. The intention was to amalgamate their product offerings under one company to become a global market leader in the electrical wiring manufacturing sector. Since the merger Leviton has made the subject property their Network Solutions European Head Quarters and invested a significant amount of money on re-branding the property and integrating their new data centre manufacturing facility.

Brand-Rex Ltd:D&B: 4A1 Risk Disk: 100 (Very low)

31/12/2014 31/12/2015 31/12/2016

Turnover £75,590,000 £67,379,000 £66,602,000

Pre-Tax Profit £4,684,000 £3,543,000 £4,156,000

Total Net Worth £19,139,000 £16,507,000 £20,165,000

Leviton Manufacturing Company Inc.:Further company information available on the dataroom:

https://datarooms.allsop.co.uk/register/glenrothes

COVENANT

More information is available via the following web links:

https://www.brand-rex.co.uk/ https://www.leviton.com/

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 05.18

James Salmon020 7543 [email protected]

Niamh Fleming020 7543 [email protected]

For further information or to make arrangements for viewing please contact:

www.allsop.co.uk

EPCAvailable upon request.

VATThe property is elected for VAT. It is anticipated the sale will be treated as a TOGC.

PROPOSALOffers sought in excess of £3,950,000 (Three Million, Nine Hundred and Fifty Thousand Pounds) for the Heritable interest, subject to contract and exclusive of VAT. A purchase at this level reflects a very attractive net initial yield of 11.75%, reversionary yield of 13.31% and a low capital value of £18.03 psf, after deductions of standard purchaser’s costs at 6.05%.

DATA ROOMFor access to the Allsop Data Room, please use the following link: https://datarooms.allsop.co.uk/register/glenrothes

hig yeldyegnstgnurygirha vgmuyna m nd ounivp … · glenrothes is one of scotland’s five new...

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