moorgate point, moorgate road, knowsley, liverpool l33

SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
StewartMontrose
Chartered Surveyors
Property Investment Consultants
0161 935 8245
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
INVESTMENT SUMMARY
High Yielding multi-let investment comprising 444,639 sq ft (41,308 sq m) of accommodation.
Prime location at the junction of the A580 and M57. M62 – 6 miles, M58 – 3 miles, M6 – 10 miles.
Situated on the established Knowsley Industrial Park, one of the largest employment areas in the UK.
Situated on the thriving Knowsley Industrial Park where there is a huge amount of industrial activity
on the back of its strategic location, growth in the Port, growth of companies such as JLR, QVC,
Home Bargains, B&M etc.
Good quality affordable accommodation with excellent occupational history.
Site of circa 27 acres in total including a development plot of 6.3 acres.
Current rental income of £1,254,245 pa reflecting low rentals of only circa £2.50psf on the industrial
accommodation and £4.75 psf on the office accommodation.
ERV of £1,402,643
Offers in the region of £11,000,000 reflecting an attractive net initial yield of 11.73% and a capital
value of only £22.61 psf excluding the value of the surplus development land.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
LOCATION
Liverpool is the sixth largest city in the UK and is the
commercial and administrative centre for the County of
Merseyside. The County has a residential population
of 1.5m, with 6.5m people within one hour’s drive.
The Liverpool City Region is located 212 miles (340
kms) north west of London, 98 miles (157 kms) north
west of Birmingham, and 32 miles (52 kms) west of
Manchester.
The Liverpool City Region has undergone a
renaissance in the last 10 years with significant
investment due in part to the international recognition
the city received being European Capital of Culture
2008. Recent developments include Grosvenor’s
Liverpool One Shopping Centre, The Met Quarter, the
new cruise liner facility, Liverpool Arena and
Convention Centre at Kings Dock, Liverpool John
Lennon Airport, The Port of Liverpool and the
automotive sector. More than £3 billion has been
invested within the city centre and surrounding area in
recent years.
Major employers include Matalan, Home Bargains,
QVC, Royal Sun Alliance, Santander, Bibby Line,
Jaguar Land Rover, B & M Bargains, Home Shopping
Group, Princes Foods, John West, United Biscuits
amongst others.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
COMMUNICATIONS
Liverpool benefits from excellent communications.
Road
The Merseyside region is served by the following
motorways:
M57, M56, M62, M58 and M6 making it an excellent
strategic distribution location in which to serve the North
West of England and beyond. The M62 motorway
connects Liverpool to Leeds via the M60 orbital
motorway.
Connectivity within the region is will be further enhanced
by the construction of the new Mersey Crossing which
will provide a state of the art toll bridge linking the A57,
Widnes to Runcorn and Speke. Construction work has
now started on the bridge, which is due to open in 2017.
Air
Liverpool John Lennon Airport handled over 4 million
passengers in 2013 and currently offers flights to
approximately 60 different locations across the UK and
Europe. The growth of the airport has led to recent
facilities to include a new multi-storey car park,
enhanced leisure facilities, together with a Hilton hotel.
Sea
Port of Liverpool is ranked among Britain’s major
containers ports and handles nearly 700,000 TEUS (20
ft container units) a year. The Port anticipates attracting
the World’s largest container vessels to the proposed in
river deep water terminal due to open in 2015. The
£300M Liverpool2 Container terminal will almost double
container capacity at the Port and allow it to handle two
280m mega post-panamax vessels simultaneously and
will accommodate 95% of global container vessels. This
will remove the need for goods to be transhipped to
smaller feeder vessels from larger ports in Europe.
Goods will be able to be transported directly into the
heart of the UK from around the globe making it
cheaper, quicker and more efficient. Particularly from
the Far East, the cost comparison based on a 40 ft
container of textiles delivered to Manchester from Hong
Kong is £300 cheaper than shipping via Southampton.
This development will also open up the Liverpool City
Region to businesses based throughout the UK
particularly in the Midlands, Yorkshire, Leicestershire
and Scotland.
Rail
Liverpool has major railway connections with the
mainline station being Liverpool Lime Street which is
served by Virgin Trains as well as regional and local
trains, with approximate journey times of 40 minutes to
Manchester, 1 hour 30 minutes to Birmingham and 2
hours 7 minutes to London Euston.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
M65
N
M6
SOUTHPORT
M61
SITUATION
M66
MOORGATE POINT
M60
M58
MANCHESTER
Seaforth
Container
Port
BIRKENHEAD
M6
M602
A580
M57
LIVERPOOL
M60
M62
Mersey Tunnels
WARRINGTON
A561
M53
M62
East Lancashire Rd
LIVERPOOL
JOHN LENNON
AIRPORT
M56
Runcorn Bridge
MANCHESTER
AIRPORT
RUNCORN
M56
M6
CHESTER
County Rd
Knowsley Industrial Park
South Boundary Rd
MOORGATE POINT
J5
Moorgate
Road
Cooper’s Lane
A580
A580
East Lancashire Rd
LIVERPOOL
Perimeter Rd
Hornhouse Lane
A5207
M6/MANCHESTER
SAT NAV: L33 7YQ
J4
M57
Knowsley Industrial Park is situated on the north side
of the A580 East Lancashire road, which provides
direct access to Jct 23 of the M6 and connects
Liverpool city to the West with Manchester city centre
to the East.
Knowsley Industrial Park is one of the largest
industrial parks in Europe. At almost 1,200 acres
(485 hectares) the Park and its sister, Knowsley
Business Park, are home to almost 600 companies.
Major occupiers located at Knowsley include:
A5208
A5208
Knowsley is situated approx. 17 kms (11 miles) east
of Liverpool and 47 kms (29 miles) west of
Manchester. Knowsley is one of the main industrial
areas in Merseyside and benefits from excellent
access to the regional motorway network including
the M57, M58, M62, M6 and Manchester’s Orbital
M60 motorways.
DRIVE TIMES
Distance
Time
miles
mins
M6 J23
10
12
8
15
Manchester
26
48
Leeds
53
78
Birmingham
95
121
Glasgow
185
230
London (M25 Jct 15)
200
244
Liverpool and Docks
Source: wwwtheaa.com
Moorgate Point is situated with significant frontage onto
Moorgate Road, which provides direct access to
Junction 4 of the M58 Motorway and the A580 (East
Lancs Road), both of which are immediately to the
south of the property.
• B&M Bargains
• QVC
• Jaguar
• DHL
• Home Bargains
• Vertex
• Toyota
• SIG
• Liverpool Football Club
• Matalan
• Stoves / Glen Dimplex
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
TO LIVERPOOL
NORTH AND M58
M57
JUNCTION 4
SOUTH AND M62
MOORGATE ROAD
MOORGATE POINT
DEVELOPMENT LAND
A580 EAST LANCS ROAD
KNOWSLEY INDUSTRIAL PARK
HORNHOUSE LANE
SOUTH BOUNDARY ROAD
COOPER’S LANE
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
DESCRIPTION
The property consists of a large refurbished and
modernised warehouse complex comprising a secured
site of 10 industrial units with a detached office block
split into larger suites and an enterprise Centre at first
floor level of smaller suites.
The main warehouse building is a mixture of steel
portal and steel truss construction with concrete floors,
brick elevations and a multi-pitched roof incorporating
glazed roof lights covered in a mixture of asbestos and
steel roof sheets.
The main warehouse has been subdivided to provide
6 units with gas fired heating and full access loading
doors together with one dock level. The eaves height
of the main warehouse varies between 7.6 metres (25
feet) – 7.8 metres (25’ 7” sq ft) and it benefits from a
full sprinkler system with the exception of Unit 4. The
warehouse is fully racked as part of the landlords
specification.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
Unit 7 is a separate detached terrace of 5 industrial
units, each with their own roller shutter loading door,
separate pedestrian access and an eaves height of 5.0
metres (16 feet).
The two storey office block is located to the front of the
site being of concrete framed structure with asphalt flat
roof throughout. The majority of office space has been
extensively refurbished comprising suspended
ceilings, Cat 2 type lighting, perimeter trunking and
central heating. There are 120 car parking spaces
which are adjacent to the offices together with an
overspill car park for a further 87 cars.
DEVELOPMENT LAND
A further 6.3 acre development site to the rear of the
property is included within the sale and is shown on the
attached site plan. We consider this has a modest
value of £150,000 per acre.
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
SITE AREA
The total site area is 27.3 acres including a 4 acre lorry
park with associated car parking and the additional 6.3
acres of development land.
ACCOMMODATION
The property provides a total of 444,639 sq ft (41,308
sq m) of accommodation which can be broken down
as follows:
Industrial Accommodation 408,098 sq ft (37,914 sq m)
Office Accommodation
32,573 sq ft (3,026 sq m)
Offices (Enterprise Centre) 3,968 sq ft (368.63 sq m)
A full breakdown of the accommodation is provided
within the enclosed tenancy schedule.
The property provides a total density of only 37%.
1
TENURE
ate
3
Un
it
Ro
ad
Un
it
We understand that the property is held on a 999 year
leasehold from 31 January 2005 at a peppercorn rent.
5a
The estate is multi-let to 13 tenants as per the
attached tenancy schedule. The passing rent is
currently £1,254,245 per annum
Un
it
5b
it
Un
2
it
Un
Of
fic
es
Mo
org
TENANCY
Lorry Park
Development Land
Un
it 4
The leases are on effective full repairing and insuring
terms (subject to a schedule of condition) through a
service charge.
Unit 7a-d
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
TENANCY SCHEDULE
Description
Unit 1
Units 2 & 3
Use
Industrial
Industrial
Tenant Name
Area Sq Ft Lease Start Lease Expiry
Breaks
Rent
£ psf
Gross Rent
£ pa
ERV
£ ERV
pa
£
Comment
psf
Impact Safety Glass Ltd
27,900
23/04/2004
22/04/2014
75,000
£2.69
83,700
Kammac Plc
137,250
21/08/2014
20/08/2017
325,000
£2.37
343,125
199,250
26/09/2014
25/09/2017
498,125
£2.50
498,125
Tenant was in occupation previously. Service charge cap of £0.60 psf. Effectively FRI terms
subject to a schedule of condition.
Effectively FRI terms subject to a schedule of condition. Break subject to 3 months notice.
£2.50 Outside L&T Act. Unit is fully racked (provided by the landlord).
31,499
02/02/2001
01/02/2021 02/02/2016 (6 months notice)
92,500
£2.94
102,372
£3.25
K&A Logistic Solutions Limited
(surety - Tailored Recruitment
Services Limited)
JJ Smith & Co (Woodworking
Machinery) Ltd
Mutual break any time after
26/9/2015
£3.00 Lease renewal in negotiations. Effectively FRI terms subject to a Schedule of condition.
£2.50
5a & 5b
Industrial
Unit 4
Industrial
Unit 7A
Industrial
Total Outsource Inc.
2,422
16/12/2009
15/12/2012
20,500
£8.46
10,899
Unit 7B
Industrial
Muni- Serv (Hire) Ltd
2,422
14/05/2009
13/05/2014
10,315
£4.26
10,899
£4.50 Effectively FRI terms subject to a schedule of condition.
Unit 7C
Industrial
TNT Post UK Ltd
2,500
19/03/2014
18/03/2016
10,000
£4.00
11,250
£4.50
Unit 7D & E
Industrial
Enterprise Liverpool Ltd
4,855
10/10/2008
09/10/2015
113,275
£4.53
21,848
£4.50 Effectively FRI terms subject to a Schedule of condition. Outside the L&T Act.
Land
Land
Enterprise Liverpool Ltd
Suite 1
Office
3501 Travel Limited
Suite 2a
Office
Suite 2b
Office
Suite 3
Suite 4
Suite 5a
Suite 5b - 5c
Suite 5d
Suite 5e
Suite 5f
Suite 6
Suite 7a & 7b
Office
Office
Office
451
01/08/2012
31/07/2013
A4E Ltd
4,809
29/05/2012
01/05/2018
Corporate Mobile Connections Ltd
1,851
14/02/2014
13/02/2017
Vacant
Vacant
Kammac Plc
Service charge cap of £1.70 psf.Effectively FRI terms subject to a schedule of condtion.
Outside L&T Act
£27,000 Lease for units 7D and E includes this 4 acre surfaced lorry and car park.
2,351
£5.21
2,706
45,686
£9.50
28,854
£6.00
Break subject to 3 montice notice subject to a rent penalty of £5,271.35. If the tenant does
not break up until 30/11/2014 they are granted a rent free period from 01/12/2014 28/02/2015. Outside the L&T Act. Effectively FRI terms subject to Schedule of condition.
Service charge cap of £9,730 plus RPI.
9,718
£5.25
11,106
£6.00
Effectively FRI terms subject to Schedule of condition.Tenant in occupation, lease agreed
waiting to be signed. Lease subject to 11 months rent free period. Lease outside L&T Act.
5,245
0
£0.00
31,470
£6.00 Fully refurbished. Not currently in rating list.
5,432
0
£0.00
32,592
£6.00 Fully refurbished. Not curretnly in rating list.
0
£0.00
822
137
01/09/2014 - 30/11/2014.
Any time after 01/04/2016
TBC
£6.00 Effectively FRI terms subject to a schedule of condition. Annual Licence, rolling over.
£6.00
New letting in legals for a 3 year term at a pepercorn rent. Effectively FRI terms subject to a
schedule of conditon. Under refurbishment at the tenants cost.
Office
Office
Office
Office
Kammac Plc
429
TBC
0
£0.00
2,574
£6.00 As above
Kammac Plc
Kammac Plc
Kammac Plc
194
404
1,846
TBC
TBC
TBC
0
0
0
£0.00
£0.00
£0.00
1,164
2,424
11,076
£6.00 As above
£6.00 As above
£6.00 As above
Office
Office
Vacant
6,318
£0.00
37,908
£6.00 Fully refurbished
Ardent Credit Services Ltd
5,457
25,500
£4.67
32,742
£6.00 Effectively FRI terms subject to a schedule of condition. Break subject to 6 months notice.
Lease outside the L&T Act.
Enterprise Centre Office
!
91,260
Effectively FRI terms subject to a schedule of conditon.Limited service charge liability on
roof / rainwater goods of £1657+RPI
Effectively FRI terms subject to a schedule of condition. Existing tenant still in occupation
£4.50
holding over paying a rent of £20,500 pa.
Various
19/01/2014
18/01/2019
20/01/2017
3,968
26,275
£6.62
33,728
8x 1 year agreements in place on all inclusive rentals as follows, £2,039 p.a (Cheshire
Distribution), £2,400 p.a (Merseychem), £3,000p.a (Tyrell Electrical), £1,440 p.a.
£8.50 (Merseyside Heating & Plumbing), £1,440 p.a. (Golfpro Direct), £2,040 p.a. (Taybros
logistics), £5,340 (Integral UK Ltd), £6,300 (Carlisle Security Services) £8,000 (Catch 22).
Total gross income is £32,239.52. Serivce charge shortfall of £5,964.37pa.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33 7XW
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
SERVICE CHARGE
ASSET MANAGEMENT
All of the previous has resulted in the region being able to attract new occupiers and facilitate the growth of
existing occupiers. This is evidenced by a number of recent transactions as follows:-
The total 2014 service charge budget is £314,040 and
is made up of 3 separate schedules. The service
charge provides for the maintenance of the common
plant and machinery such as sprinklers, fabric repair
and maintenance, 24 hour on site security, landscaping
and cleaning together with an on-site landlords
management team. The service charge runs below the
CAPS contained within the occupational leases that
are applicable
Date
Property
Size
Sq Ft
Occupier
July 14
The Bear,
Widnes
105,000
Express Gifts
June 14
Pimbo Point,
Skelmersdale
109,000
Victorian
Plumbing
£2.50
Low eaves
facility
May 14
The Hive,
Speke
150,000
Johnson Controls
£5.35
New
purpose
facility
2014
Switch Point,
Aintree
150,000
KTC Edibles
£10.00
Old low eaves manufacturing facility
The Merseyside industrial market continues to be very
active both in the manufacturing and distribution
sectors, driven by a number of factors as follows:-
2014
DBR, Aintree
105,000
IDR Logistics
£1.75
Old low eaves manufacturing facility
2014
XL
Skelmersdale
400,000
DHL
£4.25
Modern distribution facility
• Growth of the Port of Liverpool with a new deep sea
container terminal currently under construction due
for completion in 2016.
2014
Fallows Way,
Huyton
95,000
Liverpool Football
Club
£3.00
Second-hand distribution facility
2013
Jupiter,
Knowsley
148,000
Toyota
£4.15
Modern distribution facility
2013
The Cube
500,000
B&M Bargain
£4.25
2013
29 Lees Road,
Knowsley
85,000
Baker Hughes
£2.50
New
purpose
built
distribution
facility
Second-hand former manufacturing
facility
Big Rack,
Knowsley
425,000
B&M Bargains
£1.50
INDUSTRIAL MARKET
COMMENTARY - MERSEYSIDE
• A £300m investment for the construction of a new
Mersey Crossing bridge between Runcorn and
Widnes which is now committed and underway, due
for completion in 2017.
• The continuing growth of production at the Jaguar
Land Rover Halewood Plant, Speke creating a spin
off supplier and storage contract.
• An extensive and relatively congestion free motorway
network system.
• A good supply of cost effective and skilled labour
force.
The above transactions show the strength and depth
in the market for all types of industrial accommodation
in Merseyside from new build modern distribution units
to older former manufacturing facilities.
Price /
Rent
Per Sq
Ft
£2.75
Comment
High bay second-hand distribution
units.
former
manufacturing
built
We consider that there are a number of inherent
asset management opportunities, which include:
• Let the void space
• Improve the existing signage and branding of
the estate
• Improve the weighted average unexpired terms
through proactive re-gear and lease renewals on
forthcoming lease expiries
• Develop out site to the rear
distribution
ENERGY PERFORMANCE
CERTIFICATE
An Energy Performance Certificate has been
commissioned and is available on request. -
Second-hand former manufacturing
facility
This confidence in the market has resulted in a
developer commencing on a speculative scheme of
two new buildings in Knowsley, Venus 100 (110,000 sq
ft) and Venus 200 (200,000 sq ft) that should
commence next year.
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33
www.jpmrealestate.co.uk
www.jolivetgroup.com
SIGNIFICANT HIGH YIELDING MULTI-LET INDUSTRIAL AND OFFICE INVESTMENT OPPORTUNITY
VAT
We understand that the property has been elected for
VAT. As such it is anticipated a sale will be handled as
a Transfer of a Going Concern.
PROPOSAL
We are instructed to seek offers in the region of
£11,000,000 (Eleven Million Pounds), for the entire
property and site subject to contract and exclusive of
VAT.
A purchase at this level would reflect a net initial yield
of 11.73% and a capital value of £21.61 psf after
assuming a modest £150,000 per acre for the
development land assuming purchaser’s costs at
5.8%.
CORPORATE SALE
A corporate aquisition is possible. Further information
is available on request.
CONTACT
To discuss the opportunity or to arrange an inspection,
please contact the joint agents.
These particulars do not form part of any contract. The Joint Agents nor any of their directors,
employees or agents is authorised to give or make any warranty or representation on behalf of any
party. Whilst information and particulars are given in good faith, intending purchasers or tenants
must satisfy themselves independently as to the accuracy of all matters on which they intend to rely.
All negotiations are subject to contract. Subject to Contract. October 2014
StewartMontrose
Simon Wood
T: 01925 320 520
E: [email protected]
Andrew Stewart
T: 0161 935 8245
E: [email protected]
Andrew Littler
T: 01942 252 803
E: [email protected]
Chartered Surveyors
Property Investment Consultants
0161 935 8245
MOORGATE POINT, MOORGATE ROAD,
KNOWSLEY, LIVERPOOL L33
www.jpmrealestate.co.uk
www.jolivetgroup.com

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