multi let college farm industrial estate, faulkner lane,...

College Farm Industrial Estate, Faulkner Lane, Sandown, Isle Of Wight PO36 9AZ

MULTI LET INDUSTRIAL ESTATE

College Farm Industrial Estate, Faulkner Lane, Sandown, Isle Of Wight PO36 9AZMULTI LET INDUSTRIAL ESTATE

INVESTMENT SUMMARY 9 unit multi let industrial estate.

Current income - £61,000 per annum.

One vacant unit.

Price - £600,000

Initial Yield – 9.60% with a reversion to 10.90% based on ERV.

LOCATION

The Isle of Wight is located off the south coast of England, 3.5 miles south of Southsea and

Portsmouth. There are regular ferry and hovercraft services to the island.

Sandown is located on the east side of the island, nine miles from Newport and seven miles from

Ryde. There is a regular train and bus service to the town from Ryde. Sandown is one of the

island’s popular tourist towns served by the A3055 which leads south from Ryde and onto the

other coastal towns of Shanklin and Ventnor.

The industrial area of the town is situated on its northern edge. Businesses in close proximity to

the subject property include Booker, Jewsons, Sydenhams Builders Merchants, City Plumbing and

several car showrooms.

The subject estate is located off East Yar Road and is surrounded by similar industrial

accommodation, Sandown Fire Station and new residential housing.

DESCRIPTION

The estate comprises three similar industrial blocks of starter units. The scheme dates from the

mid 1980’s and is of steel frame construction with brick and profile clad elevations under pitched

corrugated panel roofs. The eaves height of the units range from 3.5m to 4.5m. Each unit has a

single roller shutter door, loading apron and parking to the front.

ACCOMMODATION & SITE

The estate overall extends to 927.8 sqm (9,887 sqft), individual unit sizes are detailed on the tenancy schedule. The site overall extends to 0.30 hectares (0.74 acres).

TENURE

Freehold.

TENANCIES

The estate has a number of tenants that have been on site for years. Two units have recently been let to Wight Fire Company who have been in units on another industrial scheme opposite for years and have recently committed to upsizing on to College Farm Industrial Estate.

The estate has eight units currently let to six tenants with only one unit vacant. The current overall rental income is £61,000 per annum. This income reflects that the vendor will top up two of the new rental deals on Units 5&6 and 7.

The leases incorporate additional Maintenance and Insurance rents.

UNIT TENANTFLOORAREA

LEASE STARTLEASE EXPIRY

(BREAK)RENT

(£/SQFT)ERV COMMENTS

1 T Beardsall 1,488 26/05/2011 25/05/2016(26/05/2014)

£9,500(£6.38)

£10,415

2 Provision Golf Ltd 1,496 09/03/2012 08/03/2015(08/03/2014)

£7,500(£5.01)

£10,475 Break has not been exercised.

3 A Monteith t/aKey West Glass

982 01/02/2012 31/01/2014(Rolling break)

£6,500(£6.62)

£6,875 Break option at any time after first 12 months, on 3 months notice.

4 Vacant 995 £7,000 Refurbished unit. Quoting £7,000 per annum.

5&6 Wight Fire Co Ltd

1,486 10/09/2013 09/09/2023(10/09/2018)

£10,500*(£7.07)

£10,400 New letting. Mutual break option. Tenant paying half rent for first 12 months

7 Sandham Office Services Ltd e Services Ltd

1,476 10/09/2013 09/09/2023(10/09/2018)

£10,500*(£7.11)

£10,330 Lease re-gear. Tenant paying half rent for 18 months.

8 Sandham Office Services Ltd

974 15/10/2013 14/10/2014 £10,000(£10.27)

£6,820 Unit had only just become va-cant before new deal agreed. Lease outside Act.

9 C E Turner 990 12/07/2012 11/07/2015 £6,500(£6.57)

£6,930 Deposit of £2,600 held.

TOTAL 9,887 £61,000 £69,245


ERV

The latest lettings have established rental levels of over £7.00 per sqft, while the 12 month deal on Unit 8 is over £10 per sqft. Our conservative ERV for the estate is £69,245 per annum, an increase of 13.5% from the current passing rent.

COVENANTS

Toby Beardsall - trade as Beardsalls and Island Office Supplies. The family company was founded in 1901 and is now run by the fourth generation of the family. The company specialise in stationery and office supplies through retail outlets in Ryde and Shanklin and also online.

Provision Golf Ltd – the company are specialists in experiential sporting activities providing companies and sponsors with interactive activities at worldwide sporting events. The company host at events such as the BMW & Emirates world golf tour tournaments.

Key West Glass – is a family run glazing business of over 30 years. They are stockists of safety glass and double glazing units.

Wight Fire Company – the company were formed in the early 1980’s and are now the largest fire safety specialists on the island. They provide installation and maintenance services of fire alarms and smoke detection systems for the likes of Isle of Wight Council, the local Health Authority and Southern Housing Group.

Sandham Office Services - the company have been on the estate for over 30 years. The company are the largest independent supplier of office solutions to the island. They are one of the main Canon and Ricoh photocopier dealers, providing sales, leasing and maintenance contracts.

C E Turner - the business provides pole dance training and fitness sessions.

PRICE

We are instructed to seek offers in excess of £600,000 (Six Hundred Thousand Pounds). A purchase at this level would show an investor an initial return of 9.60%, based on purchaser’s costs of 5.8% and a reversion to 10.90% based on our ERV.

VAT

The property is elected for VAT and VAT would be payable on the purchase. The intention would be to sell as a TOGC.

EPC

Individual certificates for the units are available on request.

The individual ratings are as show:Unit 1 - 85-D Unit 4 - 99-D Unit 7 - 104-E

Unit 2 - 98-D Unit 5 - 83-D Unit 8 - 81-D

Unit 3 - 96-D Unit 6 - 83-D Unit 9 - 94-D

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function.

Andrew PriceDD: 0121 513 0892M: 07798 656 [email protected]

Andrew Franck-SteierDD: 0121 513 0891M: 07798 647 [email protected]

For further information or if you wish to arrange an inspection please contact:


multi let college farm industrial estate, faulkner lane,...

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