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MODERN DISTRIBUTION WAREHOUSE INVESTMENT
YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
INVESTMENT SUMMARY●● Freehold.
●● Distribution warehouse/ production facility located south east of York.
●● Located on an established and expanding business park with excellent road access to the A1(M), the M1 and wider motorway network.
●● Total floor area 59,242 sq.ft (5,504 sq.m).
●● Low site cover of 33%.
●● Let to York Mailing Limited (Current turnover £32m) - the tenant has been in occupation for 22 years.
●● Approximately 5.5 years unexpired term.
●● The rental income will be topped up to £245,000 per annum (£4.14 per sq.ft).
●● Offers in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT.
●● Net Initial Yield 9.21%, based on the topped up rent and after allowing for purchaser’s costs of 6.38%.
●● Capital value £42 per sq.ft.
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
A19
A19
A61
A168
A170
A614
A1035
A1079
A63
A15
A1041
A64
A64
A166
A1079
A59
A64
A19
A19
A638
A156A15
A1103
A46
A46
A1173
A180
A1
A61
A65
A59
A65
A629
A646
A628
A631
A6
A1 (M)
A1 (M)
A1 (M)
M1
M1
M1
M62
M62
M18
M62
M62
M62
M60
M65
M621
M180 M180
M66
YORKHarrogate
Leeds
Doncaster
Huddersfield
Hull
Sheffield
Wakefield
Scunthorpe
Manchester
Bradford
Grimsby
YORK MAILING
LOCATIONYork is located in North Yorkshire and is one of England’s finest and most beautiful historic cities.
It is strategically located 25 miles (40 km) north east of Leeds, 21 miles (34 km) east of Harrogate and 200 miles (322 km) north of London.
York is home to many diverse businesses but has a strong reputation for its economic strength in science and technology. Built on a foundation of academic excellence in these fields, the expanding York University and York Science Park is now home to over 100 companies.
York Railway station provides direct rail services to Leeds, Manchester, Newcastle and London Kings Cross, the latter of which has a fastest journey time of 1 hour 50 minutes.
SITUATIONThe subject property is situated off Brinkworth Rush, adjacent to Airfield Business Park, approximately 6 miles (9.6 km) south east of York City centre. Brinkworth Rush, in turn becomes Halifax Way as it passes through the Airfield Business Park. Halifax Way links to Elvington Lane and joins with the A64 to the north providing access to the A1(M) and linking with the M1 one junction south.
The property is in close proximity to the Yorkshire Air Museum and adjoining airfield and is surrounded by specialist industrial and trade counter occupiers. These include Intelsius (DGP Group), Sheppee International, Barratt Precision Tubes, Wilsden Steel and J Wedgewood & Sons.
B1228 ELVINGTON LANE B1228 ELVINGTON LANE ELVINGTON LANE
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Hunter Dr
Glenshire
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BRINKWORTH RUSH
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YORK MAILING(PART OF YM GROUP)
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
DESCRIPTIONThe property consists of a 45,225 sq ft (4,204 sq m) main production facility which is linked to an 11,522 sq ft (1,070 sq m) warehouse annexe and single storey office block. The tenant has installed a temporary warehouse on the southern elevation to provide both additional storage and access for deliveries.
The main warehouse is divided by a full height blockwork wall separating the large printing facility and warehouse storage area.
The property benefits from the following specification:
• Eaves height: Main Warehouse 7.7m Annexe 6.0m
• Front and rear access via roller shutter doors.
• Heating to warehouse.
• Large rear yard.
• Staff car park.
• CCTV and security lighting.
• Translucent roof lights in main warehouse and annexe.
The office specification includes comfort cooling, suspended ceilings, recessed lighting, double glazing, perimeter trunking and a floor to ceiling height of 2.62m.
The tenant has been in occupation of the property for over 22 years. They have undertaken a number of building improvements, including the installation of a two-storey mezzanine office block within the warehouse, a workshop facility and a printer control room. They have also upgraded the lighting within the Annexe to LED and have a programme to improve the lighting to the main warehouse within the next 12 months.
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
ACCOMMODATIONWe have been provided with the following Gross Internal Areas (GIA):
GIA
UNIT DESCRIPTION Sq ft Sq m
Ground Main Warehouse 45,255 4,204.4
Ground Rear Warehouse 11,522 1,070.4
Ground Offices 2,465 229.0
TOTAL 59,242 5,503.8
Temporary Structure* 2,827 262.7
* Tenant improvement
SITE AREAThe property is situated on a total site area of approximately 4.18 acres (1.69 ha) providing a low site cover of 33%.
TENUREThe property is held freehold.
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
TENANCYThe property is let in its entirety to York Mailing Limited on a full repairing and insuring lease expiring 24th March 2023 (5.5 years unexpired).
The current passing rent amounts to £222,490 per annum, equating to £3.76 per sq. ft. The tenant has recently re-geared their lease, demonstrating further commitment to the unit.
From 25th March 2018 the tenant has the benefit of 3 months rent free. From 23rd June 2018 until the end of the lease the rent will be increased to £245,000 per annum (£4.14 per sq.ft). The vendor proposes to top up the rent to £245,000 per annum until June 2018.
The web offset printer in the main warehouse is the newest and highest specification printer of its kind in the whole of the UK and is valued at £11m. York Mail group produces approx. 75% of all flyers in the UK. This facility is integral to the York Mailing Group (YM Group) who also occupy the adjacent building with separate ownership.
This site is the head office of York Mailing and they employ 90 staff on the site, typically they operate 24 hours a day, 6 days a week. In a normal week this facility can produce over 30 million leaflets ready for distribution to clients and stores across the country.
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
COVENANT INFORMATIONFor almost two decades York Mailing Limited, which are part of the YM Group, has been supporting major retailers and leading supermarkets with time-sensitive promotional materials, designed to drive footfall to stores. These retailers include Marks and Spencer, Tesco, Specsavers, Asda and Homebase. York Mailing Limited are the largest member of the YM Group.
YM Group are the largest print provider in the UK and produce approximately 75% of all leaflets for the UK market. They produce marketing material for the top retailers in the country. YM Group has a combined turnover of circa £104m.
YORK MAILING LIMITED31/05/16
(000’s)31/05/15
(000’s)31/05/14
(000’s)
Sales Turnover £32,623 £36,135 £39,255
Profit / (Loss) Before Taxes £1,929 £763 (£453)
Shareholder Funds £8,213 £13,475 £12,689
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YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
ENERGY PERFORMANCE CERTIFICATES (EPC’S)Energy Performance Certificates can be viewed via the data room, access to which is available upon application.
VATThe property has been elected for VAT, therefore VAT will be payable on the purchase price. However, it is anticipated that the sale of the property will be structured as a Transfer of a Going Concern (TOGC).
PROPOSALWe are instructed to seek offers in excess of £2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 9.21%, based on the topped up rent and after allowing for purchaser’s costs of 6.38% and a capital value of £42 per sq.ft.
YORK MAILING, AIRFIELD BUSINESS PARK, BRINKWORTH RUSH, ELVINGTON (NR YORK), YO41 4AU
Further InformationFor further information or to arrange an inspection, please contact:
83 Baker Street, London, W1U 6AG
Owain Jones Tel: +44 (0)207 870 3561 Mobile: +44 (0)7767 422 169 Email: [email protected]
Andy Byrne Tel: +44 (0)207 870 3566 Mobile: +44 (0)7779 611 765 Email: [email protected]
MISREPRESENTATION ACT 1967Conditions under which particulars are issued: Jones Realty for themselves and for the vendor of this property, whose agents they are give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the
statements contained in these particulars as to this property is to be relied on as a statement or representation of fact. 3. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of each of thestatements contained in these particulars. 4. The vendor does not make or give, and neither Jones Realty nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property.
Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescription Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2017.