parkway - images1.loopnet.com · unit 1 cannon viking ltd 39,847 10/09/18 09/09/28 09/09/23...

Prime Strategically Located Multi Let Industrial Investment Opportunity

ParkwayTrading Estate ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL

• A rare opportunity to acquire an established multi-let industrial estate situated within Trafford Park, the North West’s premier industrial location

• Strategically located at the entrance to Trafford Park, with immediate access to Junction 9 of the M60 motorway

• The estate comprises 11 well-specified industrial units, extending to 108,176 sq ft, with individual units ranging from 4,421 sq ft to 39,847 sq ft

• Site area of 6.38 acres with site coverage of 38%

• Let to 9 tenants by way of 10 leases with an AWULT of 5.3 years to expiries

• Total income of £587,692 per annum, reflecting a low average rent of £5.43 per sq ft

• Total estimated rental value of £654,444 per annum, reflecting a conservative average rent of £6.05 per sq ft

• Excellent opportunities to immediately add value through asset management and rental growth

• Freehold

Offers are sought in excess of £10,490,000 (Ten Million, Four Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 5.25%, a reversionary yield of 5.85% and a low capital value of £97 per sq ft

(assuming purchaser’s costs of 6.70%)

UNIT 1

Investment Summary

ALBA WAY I TRAFFORD PARK I MANCHESTER I M32 0TL

Parkway Trading Estate1



Barton Dock Rd

St Modwen Rd

Parkway Circle

Mercury ParkCaledonia Way

Westinghouse Road

Cobra Court

Park Way

B5211A5081

To Trafford Centre To M60 J9

To Stretford

Tenax Road

Ashburton Rd W

Mosley RoadA576

B5214

A5181

A5081Village Way

Alba Way

Trafford City

ParkwayTrading Estate

KUEHNE+NAGEL

Stretford MotorwayEstate

Manchester

The property is located within the Metropolitan Borough of Trafford, one of the 10 boroughs that comprise the Greater Manchester conurbation. Greater Manchester is regarded as the economic capital of the North West of England and is located approximately 35 miles east of Liverpool, 44 miles south west of Leeds, 200 miles north west of London.

Greater Manchester benefits from excellent transport links. The M60 Orbital Motorway is situated at the heart of an expansive motorway network, ensuring easy access to the UK’s other major cities and centres of commerce. Greater Manchester is well served by public transport links with Manchester Piccadilly providing regular services locally and nationally. Greater Manchester also benefits from the Metrolink light rail system, with a new £350m extension underway through Trafford Park to the Trafford Centre and completion of the works set for 2020.

Manchester International Airport, the UK’s largest regional airport, is located approximately 9 miles to the south. The airport handles approximately 120 tonnes of import and export freight annually, connecting the North of England to over 160 destinations around the world.

Trafford Park

Trafford Park is situated two miles south west of Manchester City Centre. It was the first planned industrial estate in the world and remains the largest in Europe, covering approximately 1,800 acres. Key global occupiers include Kellogg’s, Adidas, L’Oreal, SIG, Tate & Lyle and Proctor & Gamble amongst others.

Trafford Park benefits from excellent motorway connections with direct access to Junction 9 and Junction 10 of the M60 to the south west and Junction 2 of the M602 to the north, which leads to the M62 and beyond. Trafford Park also benefits from a freight line depot and Euro terminal offering a direct rail service to Europe via the Channel Tunnel. It handles in excess of 100,000 containers per annum.

18

1920

21

22

23

24

15

3

5

6

17

1615

14

21

12

1011

9

7

20A

21A

21

7

M60

M602

M61

M62

M60

M60

M56

M6

M67A56

A58

A58

A56A57

A50

A50

A560

A580

A579

A666

A673

A556

A6010

A5103

A635

A57

A34

A34

A6

A62

A56

A578

WARRINGTONWARRINGTON

MANCHESTERMANCHESTER

Prestwich

Swinton

Salford

Sale

Urmston

Eccles

Stretford

Stockport

GatleyAltrinchamLymn

Appleton

Birchwood

Croft

Glazebury

Bolton

Culcheth

TimperleyWythenshawe

UNIT 3D


Parkway Trading Estate3ParkwayTrading Estate


M60

M602

J9

J10

A56

A5181

A57

A5063

B5211

A576

Chester Road

Park Road

Trafford Road

Barton Dock Rd

Tenax Road

Alba Way

A5081Village WayTRAFFORD PARK

A5081Park Way

Trafford Centre

SituationThe property is situated on Alba Way, off Barton Dock Road, and accessed from Park Way (A5081), the main arterial route through Trafford Park providing access to Manchester City Centre and Junction 9 of the M60 motorway.

DescriptionParkway Trading Estate is an established multi let industrial estate, comprising 11 well-specified industrial units arranged over three terraces with one detached unit. Unit 1 was constructed in the early 1990’s with the remaining units constructed in the late 1970’s and generally provide the following specification:

• Steel portal frame construction

• Part brick and part profile metal clad elevations

• Full height loading doors with separate pedestrian access

• Eaves height of approximately 5.5m

• Demised loading area and car parking with five of the units benefiting from secure yard areas.

Unit 1 is completely self contained

UNIT 4A UNIT 3A UNIT 2A



M60 J10

M60 J9

Trafford Centre

Barton Dock RdB5211

Caledonia Way

Park WayA5081

St Modwen Rd

Alba Way


AccommodationThe property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on a Gross Internal Area (GIA) basis and extends to 108,176 sq ft (10,050 sq m), as detailed in the tenancy schedule.

SiteThe property comprises a site area of approximately 6.38 acres (2.58 ha) with site coverage of 38%.

TenureThe property is held Freehold, under Title Number: GM175827

UNIT 4A

SITE ENTRANCE & UNIT 4B



UNITS 3A-F, 2B & 2A



Tenancy

Unit Tenant Area (sq ft)

Start Date

Expiry Date

Break Date(s)

Next Review

Date

Rent (£pa)

Rent (£psf)

ERV (£pa)

ERV (£psf)

1954 L&T Act

Comments

Unit 1 Cannon Viking Ltd 39,847 10/09/18 09/09/28 09/09/23 £240,000 £6.02 £240,000 £6.02 Inside Lease renewal in legals - the lease term will be backdated to 10/09/2018.Tenant to benefit from 6 months’ initial rent free (vendor to provide top up). The rent is to be reviewed on an upwards only basis to 107% of the ERV to reflect the yard.

Unit 2A Bridgewater Contracts (Projects) Ltd

10,527 08/05/15 07/05/21 £47,370 £4.50 £63,162 £6.00 Inside

Unit 2B Project Kitchens Ltd 10,524 17/05/17 16/05/22 £56,303 £5.35 £63,144 £6.00 Inside

Unit 3A GARC Ltd 6,694 01/07/12 31/07/13 £30,150 £4.50 £40,164 £6.00 Outside Tenant is occupying on a rolling periodic tenancy.

Unit 3B MAK Fasteners Specialists Ltd

6,675 09/11/18 08/11/23 £38,381 £5.75 £40,050 £6.00 Inside Letting in legals - assumed the lease completes on 09/11/2018.Tenant to benefit from 4 months’ initial rent free (vendor to provide top up).The lease is subject to a schedule of condition.

Unit 3C Polycure Solutions Ltd 4,421 25/12/13 24/12/18 £22,110 £5.00 £27,631 £6.25 Inside In discussions with the tenant over a renewal.

Unit 3D Vacant 4,552 £26,174 £5.75 £28,450 £6.25 - Vendor to provide 12 months’ rent, rates and service charge guarantee. Previous tenant upsized to Unit 3b.

Unit 3E Cannon Viking Ltd 4,484 01/02/18 - £25,783 £5.75 £28,025 £6.25 Outside Tenant occupying on a licence, terminable upon one months’ notice.

Unit 3F R3 Polygon UK Ltd 4,421 24/06/18 23/06/23 £25,421 £5.75 £27,631 £6.25 Inside Stepped rental agreement from £4.60 to £5.75 sq ft (vendor to provide top up):Year 1 - £20,336 pa / £4.60 psfYear 2 - £21,663 pa / £4.90 psfYear 3 - £23,210 pa / £5.25 psfYear 4 - £24,316 pa / £5.50 psfYear 5 - £25,421 pa / £5.75 psf

Unit 4A Vale Cladding Supplies Ltd

8,015 03/10/15 02/10/20 £36,000 £4.49 £48,090 £6.00 Inside The lease is subject to a schedule of condition.

Unit 4B Vivalda Ltd 8,016 12/05/10 11/05/20 £40,000 £4.99 £48,096 £6.00 Inside The lease is subject to a schedule of condition.

Total 108,176 £587,692 £5.43 £654,444 £6.05



Covenant Information

Parkway Trading Estate benefits from a diverse and secure income profile with a broad range of regional, national and international tenants. Approximately 84% of the total income is secured against covenants rated as a minimum or lower than average risk of business failure by Dun & Bradstreet.

Cannon Viking Ltd (01691576) is the largest tenant on the estate with 45% of the total income secured against this covenant. The company employs approximately 70 staff and develops machinery for the production of flexible, semi-rigid and rigid foam blocks from its headquarters in Trafford Park, where they have been in occupation for over 25 years.

Tenant Line of Business % of Income

D&B Rating

Risk of Business

Failure

Net Current Assets /

(Liabilities)

Cannon Viking Ltd

Manufacturer of machinery for the production of polyurethane blocks.

45% 2A2 Low £1,974,741

Project Kitchens Ltd

Sale, distribution and installation of kitchens.

10% 2A2 Low £1,579,121

Bridgewater Contracts (Projects) Ltd

Contractor specialising in pub, restaurant, retail and hotel refurbishments.

8% A3 Moderate £453,300

Vivalda Ltd Sale and distribution of rainscreen cladding panels and fixing systems.

7% 2A1 Minimum £5,228,687

MAK Fasteners Specialists Ltd

Sale and distribution of roofing/cladding products and fastening/sealant products.

7% C2 Low £115,805

Vale Cladding Supplies Ltd

Sale and distribution of roofing and cladding products.

6% C2 Low £121,789

GARC Ltd Asset resales, working with leasing/financing companies and insolvency practitioners.

5% A2 Low £453,666

R3 Polygon UK Ltd

Property damage restoration. 4% 3A1 Minimum £7,116,000

Polycure Solutions Ltd

Manufacturer of ultraviolet and electrobeam coatings.

4% N4 High (£28,065)

UNIT 2B

UNIT 3D



Investment Market

Property Area (sq ft)

Price NIY Cap Val (£ psf)

Date

Apollo Park, Crewe 125,749 Q. £14,300,000 5.50% £114 Available

Midpoint 18, Middlewich 155,118 C. £13,100,000 6.00% £85 Under Offer

Quantum Park, Manchester 45,387 £9,000,000 4.94% £198 Sep18

Doranda Way Industrial Park, West Bromwich

152,311 £14,800,000 5.18% £98 May18

Olympic Court, Salford 108,639 £10,850,000 4.60% £100 Apr18

Occupational Market

Property Area (sq ft)

Tenant Rent (£ psf)

Term/(Break) Date

Unit 15 Guinness Road Trading Estate, Guinness Road

7,750 Diagraph £6.00 10 years (5 years)

Sep18

Unit 4 Caledonia Way 10,500 Undisclosed £6.00 5 years Feb18

Unit 30 Stretford Motorway Estate, Barton Dock Road

4,118 Masco UK £6.25 5 years Feb18

Unit 26 Stretford Motorway Estate, Barton Dock Road

4,689 Klass Online £6.25 5 years Nov17

Unit 1 Premier Park, Acheson Way

6,881 Creation 360 £7.00 5 years Aug17

UNITS 3F, 4A & 4B



Asset Management Opportunities• Improve the AWULT through proactive leasing,

re-gears and renewals

• Undertake a cosmetic refurbishment of the units to further enhance the estate

• Let the vacant unit (Unit 3D) to establish an improved rental tone across the estate

Service ChargeThe current service charge budget amounts to £0.29 psf for the year ending 28 September 2019. Further information is available upon request.

EPCEnergy Performance Certificates for the units are available upon request.

VATThe property has been elected for VAT. It is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).

Data RoomData room access can be provided upon request.

ContactFor further information or to arrange a viewing, please contact:

Mike PochinE: [email protected]: 0161 833 7692M: 07856 584 523

Johnny HawkinsE: [email protected]: 020 7861 1519M: 07766 554 948

Steve CarrickE: [email protected]: 0161 806 0455 M: 07711 042 584

ProposalOffers are sought in excess of £10,490,000 (Ten Million, Four Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 5.25%, a reversionary yield of 5.85% and a low capital value of £97 per sq ft (assuming purchaser’s costs of 6.70%).

UNIT 3B



carrickre.com

KnightFrank.co.uk

IMPORTANT NOTICE. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or Carrick RE in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP or Carrick RE has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. October 2018. carve-design.co.uk 13762

parkway - images1.loopnet.com · unit 1 cannon viking ltd 39,847 10/09/18 09/09/28 09/09/23...

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