SINGLE LET INDUSTRIAL INVESTMENT WITH ANNUAL RPI RENTAL UPLIFTS
Unit 4
Avondale Industrial Estate, Cwmbran, NP44 1XY
Investment Summary
- An opportunity to acquire a fully refurbished, long term single let industrial investment located in the established Avondale Industrial Estate, Cwmbran.
- Freehold.
- Let on a new 10 year FRI Lease to Allprint Supplies Ltd with RPI increases capped and collared at 2% and 4%.
- Long-term, secure income of £250,000 per annum on a new 10 year lease from 01/03/2023. No break option.
- Strategically situated west of the A4042 dual carriageway, the estate benefits from excellent road links to Junctions 25 and 26 of the M4 Motorway which provides direct access to Cardiff and Newport.
- 51,695 sq ft of warehouse space with loading and car parking. There is an attractive minimum eaves height of 7m.
- Recent refurbishment comprises a power upgrade to 800KVA, new overclad roof, LED lighting, new entrance, warehouse flooring and improved access.
- Allprint Supplies Ltd had a turnover of £13,405,702 in the year ending 31/12/2021, with a profit of £792,495 for the same year.
- The Tenant has a FAME score of 95/100.
- Tenant is making significant investment in machinery which is reliant on the uniquely high power capacity.
- Low base rent of £4.84 per sq ft provides strong rental growth prospects.
Proposal
Unit 4, Avondale Industrial Estate, Cwmbran, NP44
Seeking offers in excess of £3,335,000 (Three Million Three Hundred and ThirtyFive Thousand Pounds) reflecting an attractive Net Initial Yield of 7.00%, after deducting purchaser’s costs of 7.16%. This equates to a low Capital Value of £64.51 per sq ft.
Subject to Contract & Exclusive of VAT.
ASSET OVERVIEW
1XY
Avondale Industrial Estate is strategically situated west of the A4042 dual carriageway, the estate benefits from excellent road links to Junctions 25 and 26 of the M4 Motorway, just four miles to the south which provides direct access to Newport, 6 miles south and Cardiff, 17 miles south west.
The property is located within Torfaen County Borough, Torfaen has a population of 91,000 and is the 3rd most densely populated county in Wales. Cwmbran has a population of approximately 47,250 and was established in 1949 as the only “new town” development in South Wales. The region has seen significant regeneration and investment over recent decades to redevelop heavy industrial areas and to create new business parks, housing, and recreational initiatives.
Torfaen is one of 10 local authorities in South East Wales who have signed up to the ‘Cardiff Capital Region’. The region has a population of 1.5 million which equates to almost half the total population of Wales. It is a diverse region comprising the two cities of Cardiff and Newport, a range of market towns, the industrial heartland of the South Wales Valleys, rural communities, and a coastal belt.
Unit 4
Unit 4, Avondale Industrial Estate, Cwmbran, NP44 1XY BRISTOL CHANNEL RIVER SEVERN BRISTOL A48 A48 NEWPORT CARDIFF INTERNATIONAL AIRPORT Barry Avonmouth Pontypridd Weston-super-Mare Chepstow Raglan Pontypool Cwmbran Monmouth Abergavenny Ebbw Vale Tredegar Aberdare Merthyr Tydfil Neath Llantrisant Usk Port Talbot Bridgend CARDIFF SWANSEA M5 A4059 A470 A465 A4061 A465 A4119 A4058 A470 A469 A467 A48 A48 A48 A466 A40 A449 A4042 A465 A4232 A4050 A4059 A470 A465 A370 A38 A4 A37 M4 M5 M5 M32 32 34 37 35 29 28 27 26 24 23 22 19 20 18 M4
-For reference purposes only -NORTH
Location
Situation Connectivity
The property is situated in the heart of Avondale Industrial Estate, a sought after industrial and manufacturing location in South Wales.
Occupiers within the estate include Travis Perkins, Jewsons, Nuffield Health E-Warehousing and Quattro Plant. The wider commercial areas of Cwmbran are home to Crane, Airbus, Admiral and the ONS.
The estate is very accessible by a range of transport modes:
Road Cwmbran is located six miles north of Newport and 18 miles north east of Cardiff. M4 Motorway connectivity is via Junctions 25 & 26.
Rail The property is 0.7 miles from Cwmbran Railway Station which provides connectivity across south Wales.
Cwmbran Railway Station benefits from regular services to Cardiff Central and Newport, as well as longer services such as Carmarthen and Manchester Piccadilly.
Air Cardiff Airport is located 32 miles to the south west of Cwmbran and Bristol Airport is located 38 miles to the south east. Both offer scheduled flights to an array of European and international destinations.
Cwmbran has been included in the first phase of plans for the South Wales Metro which comprises a £800m investment in rail services in South Wales, this will mean more regular services on modern comfortable trains.
Bristol London Birm ngham Cambridge Brighton Cwmbran Swansea
2 hr 3 mins 2 hr 4 mins 53 mins 43 mins 37 mins 23 mins 1 hr 11 mins 1 hr 19 mins 3 hr 20 mins 1 hr 53 mins -For reference purposes only -NORTH
Description Site
The property comprises a single industrial unit of 51,695 sq ft with a minimum eaves height of 7m. The unit could be subdivided in the future if required. The site is secured by a perimeter fence and measures 2.08 acres.
The vendor has undertaken the following works as part of the agreement for lease:
- Power upgrade to 800KVA
- New overclad insulated roof
- Warehouse lighting upgrade to LED
- Office lighting upgrade to LED
- Full Epoxy Resin floor
- Full Industrial Clean of the warehouse, including all flooring, walls and high-level steel beams
- Full powder coat painting to external facade
The property occupies a site measuring approximately 2.08 acres.
Single Industrial unit of 51,695 sq ft with a minimum eaves height of 7m.
The property is held Freehold under title number CYM154433.
This property is elected for VAT and anticipate the sale will be undertaken as a Transfer of a Going Concern (TOGC).
The EPC rating is C(54).
EPC
Description Sq M Sq Ft Warehouse 4,345 46,777 Office 370 3,983 Plant room 87 935 Total 4,802 51,695 DESCRIPTION & PROPERTY INFORMATION
Tenure VAT
Accommodation
Tenant Financial
The Tenant is Allprint Supplies Limited, a printing, publishing and selfadhesive material manufacturer, established in 1999 and headquartered in Berkshire.
Upon completion of the lease, a sub-letting will be made to Allprint’s sister company, Nu-Coat Ltd. Allprint Supplies Limited remain as the Tenant and are responsible for ensuring rental payments and any other liability.
Nu-Coat Ltd have a long-term presence in South Wales. They are expanding having outgrown their previous location, the move will enable the business to expand their sales globally.
The Tenant has invested heavily in the latest coating and converting technology which is to be housed in a clean room environment as part of an extensive fit-out totalling over £300,000. Nu-Coat are one of the first manufacturers worldwide to use UV curing technology for self-adhesive signs and graphics materials. This is a speed-curing solvent-free process in which high intensity UV-C light instantly cures the coating, saving time and money and delivering significant environmental benefits, including much lower fuel usage at the factory.
Lease
Tenant Allprint Supplies Limited
Term 10 years with no break
Rent £250,000 per annum from 01/03/2023
Review Annual rent uplifts
Review basis RPI with a cap of 4% and collar of 2%
Repair FRI
There is a rent-free period of 13 months from completion of the lease. The Vendor will provide a top up to the Purchaser.
The Tenant has a FAME score of 95/100 – this represents a very low chance of company failure.
COVENANT AND
LEASE
YE 31/12/2021 YE 31/12/2020 YE 31/12/2019 Turnover £13,405,102 £12,709,056 £16,399,528 Profit (Loss) before Taxation £792,495 £570,007 £462,065 Net Tangible Assets (Liab.) £3,875,017 £3,374,514 £2,861,225
Investment Comparables
14,998 sq ft unit let to Royal Mail with on 10-year FRI lease. 5th year upward only. Rent review to market rent. 5th year Tenant only break (£91.03 per sq ft).
Date Address WAULT Price Yield Purchaser Comments Dec-22 Cubex155, Calidcot 15 years £25.5m 4.00% Private Investor Forward sale for single let 155,000 sq ft warehouse. Tenant is Owens Group. Oct-22 50-54 Lambourne Crescent, Cardiff 7.2 years £1.68m 5.04% Private Investor 15,540 sq ft, let to University of South Wales. Jun-22 Hadnock Road Industrial, Estate, Monmouth 3.5 years £1.6m 5.89% Private Investor 23,498 sq ft multi let trade and industrial estate located within a secondary location. May-22 Grange Rd Cwmbran TBC £14.05 4.75% Copley Point Capital Ltd Forward sale for single let 110,000 sq ft warehouse. Tenant is Crane. Mar-22 Royal Mail, Maritime Industrial Estate 9.5 years £1.37m 5.31% Private
Individual
Investment Considerations
• A rare opportunity to acquire a fully refurbished, freehold, single let industrial investment in a sought after commercial location.
• Strategically located within six miles of the M4 Motorway.
• Tenant has a FAME score of 95/100 which is considered very low risk.
• Long-term, secure income of £250,000 on a new 10 year lease from 01/03/23 with annual RPI uplifts.
• Low base rent of £4.84 per sq ft provides strong rental growth prospects
• Tenant is well-established locally and is making a significant investment in new equipment and technology.
• The unit benefits from a good minimum eaves height of 7m.
• A low capital value of £64.61 per sq ft.
Seeking offers in excess of £3,335,000 (Three Million Three Hundred and Thirty-Five Thousand Pounds) reflecting an attractive Net Initial Yield of 7.00%, after deducting purchaser’s costs of 7.16%. This equates to a low Capital Value of £64.51 per sq ft.
Subject to Contract & Exclusive of VAT.
Gareth Lloyd gareth.lloyd@knightfrank.com 07917 503 751
Tom Griffiths tom.griffiths@knightfrank.com 07870 861 077
Knight Frank Debt Advisory
For any financing queries, please contact:
Lisa Attenborough lisa.attenborough@knightfrank.com 07773 258 673
Important Notice
Further Information: Proposal
1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP 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 nor any joint agent 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).
2. 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.
3. 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.
4. VAT: The VAT position relating to the property may change without notice.
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