Industrial, Industrial (B2), Investment, Storage/Distribution (B8)
For Sale £3,500,000 for the Freehold
Description
*** FREEHOLD MULTLET INDUSTRIAL ESTATE FOR SALE ***
Investment Summary
Multi-let estate of industrial/warehouse units.
12 units ranging in size between 176 sq. m (1,896 sq. ft) and 717 sq. m (7,713 sq. ft).
Site Office 76 sq. m (814 sq. ft).
5,414 sq. m (58,281 sq. ft) Gross Internal Area.
2.356 hectares (5.844 acres) with 25% site cover.
Development potential STPP.
Currently producing £120,725 per annum.
Significant Asset Management/Reversionary Potential.
Estimated Rental Value £269,339 per annum.
Potential to implement an Estate Service Charge.
We are instructed to seek offers in the order of £3,500,000. Assuming purchaser's costs at 5.85%, this reflects a net initial yield of 3.259%, a potential reversionary yield of 7.270% and an overall rate of £684/sq. m (£63.57/sq. ft).
Location
Hixon is located 5 miles northeast of Stafford / M6 J14, 8 miles southeast of Stone/A34, 6 miles northwest of Rugeley and 8 miles southeast of Uttoxeter/A50. The A51 connecting Stone and Rugeley runs to the west of Hixon and the A518 connecting Stafford and Uttoxeter runs to the north of Hixon. The Estate is immediately to the south of Hixon Airfield Industrial Estate.
Description
New Road Industrial Estate comprises an irregular shaped site extending to 2.365 hectares (5.844 acres) of which 0.700 hectares (1.750 acres) adjacent to the access road is undeveloped grassland. The remining 1.609 hectares (3.976 acres) is developed and comprises the access road, circulation areas and industrial units. The units are of steel-portal frame design with cavity-brick and profiled steel sheet clad walls and roofs. Units 1, 2, 3, 4 and 4a comprise a terrace of self-contained units constructed between 1980 and 1990. Units 5, 6 & 7 comprise a terrace of self-contained units constructed 1990. Units 8, 8a and 9 comprise a 'L' shaped arrangement of interconnecting buildings constructed between 1968 and 1975. Unit 10 was constructed 1992-1993. Each unit has three-phase electricity, water and drainage. In addition, there is a detached single storey office building of brick construction with a flat roof.
Energy Performance
Unit 1: C
Unit 2: C
Unit 3: C
Unit 4: D
Unit 4a: D
Unit 5: D
Unit 6: E
Unit 7: D
Unit 8: B
Unit 8a: B
Unit 9: B
Unit 10: D
Site Office: D
Asset Management Opportunity
The average rent across the occupied units is £2.30.sq. ft with a range of £1.88/sq. ft to £2.80/sq. ft. The estimated rental value of the units is £4.20/sq. ft to £5.50/sq. ft.
Unit 1 and the Site Office are available to let immediately upon completion.
Five leases expire in 2024 providing an immediate opportunity to increase rents by way of lease renewal.
The remainder of the leases expire in 2025.
Subject to planning the low site coverage offers further development potential.
Potential to implement an Estate Service Charge.
Tenure
Freehold: Title Number SF540402
Price
We are instructed to seek offers of £3,500,000 (Three Million, Five Hundred Thousand Pounds). Assuming purchaser's costs at 5.85%, a purchase at this level would reflect a net initial yield of 3.259%, a potential reversionary yield of 7.270% and an overall rate of £684/sq. m (£63.57/sq. ft).
VAT
Not applicable
Anti Money Laundering
In accordance with Anti-Money Laundering Regulations identification and confirmation of the source of funding will be required from the successful purchaser.
For further information please contact either Glenn Hammond MRICS or Phil Webb