Investment summary:

• Freehold multi-let industrial estate in an established commercial location.

• Good access to the South West Bypass, the A38 ring road and Junction 12 of the M5 motorway.

• Excellent location 300m from the A430 Bristol Road.

• Seven units fully let to four tenants.

• Site area of 0.82 acres (0.33 hectares).

• Total floor area of 21,948 sq ft (2,039 sq m).

• Total passing rent of £128,000 per annum reflecting £5.83 per sq ft, offering reversionary potential.

• Estimated Rental Value of circa £137,177 per annum reflecting £6.25 per sq ft.

• Weighted Average Unexpired Lease Term (WAULT) of 2.92 years to expiry and 2.43 years to break options.

• High occupational demand in this location.

• Offers trade counter flexibility.

• We are seeking offers in excess of £2,095,000 (Two Million and Ninety Five Thousand Pounds) for our client's interest, subject to contract and exclusive of VAT.

• A purchase at this level would reflect a net initial yield of 5.75%, a reversionary yield of 6.16% and a low capital value of £95 per sq ft, assuming purchasers' costs of 6.3%.

The property is a multi-let industrial estate constructed in 1981, situated in an established and popular industrial location. The property comprises a single terrace of seven units totalling approximately 21,948 sq ft (2,039 sq m).

The units are of steel frame construction of pitched asbestos cement construction with brick block and clad elevations beneath roofs with translucent panels. The majority of the units have ground and first floor offices and WC's. Car parking is provided to the front of the units.

The internal eaves height of the units is approximately 5.6 metres. Access to the industrial/warehouse area is provided by roller shutter doors (4.1m wide x 5m high) in the front elevation.

The total site area is approximately 0.82 acres (0.33 hectares).

EPC: Copies of the EPC's will be available in the data room.

Location:

The property is situated in an established commercial location on Tuffley Trading Estate. Tuffley Trading Estate is located on Pearce Way, in an excellent and highly accessible location just off the A430 Bristol Road. The Bristol Road provides access to the South West Bypass, the A38 ring road and Junction 12 of the M5 motorway. Tuffley Trading Estate is an established and popular commercial area with a mixture of trade, industrial and warehouse units.

Gloucester is the administrative centre of the county of Gloucestershire and is one of the principal commercial centres in the South West of England. 

The historic cathedral city is located close to the border between England and Wales and is approximately 28 miles from Worcester, 32 miles from Bristol and 94 miles from Birmingham. The city benefits from excellent road communications with access to the M5 via junctions 11, 11a and 12.

The A417/9 also links the city to junction 16 of the M4 at Swindon. Gloucester Railway Station provides a direct link to London Paddington with a journey time of approximately 1 hour 50 minutes as well as direct links to Bristol (54 minutes), Birmingham (55 minutes) and Cardiff (63 minutes).

Gloucester Airport is located 5 miles to the north and provides domestic flights around the UK, whilst Bristol International Airport is located 50 miles south and offers direct flights to over 125 destinations throughout the UK, all of the major European economies and the USA.

Accommodation: Tenancies

Hydraproducts Limited

Unit 5: 3,163 sq ft

Lease start: 26/01/2022

Lease expiry: 23/09/2023

Passing rent per annum: £20,000

Passing rent per sq ft: £6.32

Estimated rental value per annum: £19,770

Estimated rental value per sq ft: £6.25

Unit 6: 3,167 sq ft

Lease start: 23/09/2018

Lease expiry: 22/09/2023

Passing rent per annum: £16,000

Passing rent per sq ft: £5.05

Estimated rental value per annum: £19,795

Estimated rental value per sq ft: £6.25

Carterdale Limited

Unit 7: 3,181 sq ft

Lease start: 30/11/2021

Lease expiry: 29/11/2026

Next break: 30/10/2024

Passing rent per annum: £17,500

Passing rent per sq ft: £5.50

Estimated rental value per annum: £19,880

Estimated rental value per sq ft: £6.25

Six months' notice on break.

Unit 8: 2,897 sq ft

Lease start: 31/10/2019

Lease expiry: 30/10/2024

Passing rent per annum: £16,000

Passing rent per sq ft: £5.52

Estimated rental value per annum: £18,106

Estimated rental value per sq ft: £6.25

Comments: Photographic schedule of condition.

Cloverleaf Car Services Limited

Unit 9: 3,410 sq ft

Lease start: 12/03/2021

Lease expiry: 25/08/2025

Next break: 12/03/2024

Passing rent per annum: £18,500

Passing rent per sq ft: £5.43

Estimated rental value per annum: £21,313

Estimated rental value per sq ft: £6.25

Comments: Photographic schedule of condition.

Etiquette Events Limited

Unit 10: 2,658 sq ft

Lease start: 31/08/2021

Lease expiry: 30/08/2026

Next break: 31/08/2024

Passing rent per annum: £18,500

Passing rent per sq ft: £6.96

Estimated rental value per annum: £16,613

Estimated rental value per sq ft: £6.25

Comments: Uncapped RPI rent review on August 31, 2024. 6 months' notice on break. Photographic schedule of condition.

Unit 11: 3,472 sq ft

Lease start: 26/04/2022

Lease expiry: 25/04/2027

Passing rent per annum: £21,500

Passing rent per sq ft: £6.19

Estimated rental value per annum: £21,700

Estimated rental value per sq ft: £6.25

Comments: Photographic schedule of condition.

Total: 21,948 sq ft

Passing rent per annum: £128,000

Passing rent per sq ft: £5.83

Estimated rental value per annum: £137,177

Estimated rental value per sq ft: £6.25

*All tenancies excluded from sections 24-28 of the Landlord and Tenant Act 1954.

Tenure:

The property is held freehold under title number GR72123.

Tenancy:

The property is multi-let to four tenants across seven units. All tenancies are contracted out of sections 24-28 of the Landlord and Tenant Act 1954 and so do not have security of tenure. The WAULT across the property is 2.92 years to expiry and 2.43 years to break options.

ERV:

The current rent passing is £128,000 per annum which reflects £5.83 per sq ft. Our opinion of current rental value is £137,177 per annum reflecting £6.25 per sq ft. 

Total supply in the region remains low, which supports the ongoing trend of upward pressure on rents. This supply/demand imbalance has led to strong rental growth in recent years. Prime rents now stand at circa £7.50 per sq ft in Gloucester and are projected to continue on an upward trajectory, largely due to a lack of supply of quality industrial stock.

Covenant:

Units 5 & 6 - Hydraproducts Limited

Hydraproducts Ltd designs and manufactures hydraulic power packs. Hydraulic power packs are used in industrial, mobile, materials handling and mobility and an ever-expanding range of applications where power required is below 75kW.

Further information - www.hydraproducts.co.uk 

Units 7 & 8 - Carterdale Limited

Carterdale Ltd is a long-established wet coatings paint specialist with over 40 years' experience working mainly in the automotive industry, supplying Jaguar Land Rover, Magna, Vauxhall Opel and BMW Mini as well as military contracts.

Further information - www.gloucesterpowdercoating.co.uk 

Unit 9 - Cloverleaf Car Services Limited

Set up in 1994, Cloverleaf Car Services are Alfa Romeo, Fiat and Abarth servicing and repair specialists. Further information - www.cloverleafcarservices.co.uk Units 10 & 11 Etiquette Events Limited Etiquette Events are an event and wedding planning service based in Gloucester but working on events across the UK.

Further information - www.cloverleafcarservices.co.uk 

Units 10 & 11 - Etiquette Events Limited

Etiquette Events are an event and wedding planning service based in Gloucester but working on events across the UK.

Further information - www.etiquetteevents.co.uk 

Data room:

Access to the data room is available on request.

AML:

A successful bidder will be required to provide relevant information to satisfy the AML requirements when Heads of Terms are agreed.

VAT:

The property is elected for VAT, and it is therefore envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal:

Alder King Property Consultants are seeking offers in excess of £2,095,000 (Two million and ninety five thousand pounds) reflecting a net initial yield of 5.75% and a reversionary yield of 6.16%. This reflects a low capital value of £95 per sq ft, assuming purchasers costs of 6.3%.

Contact:

Alder King Property Consultants 

Oliver Stretton

ostretton@alderking.com 

07990 891 024

Adrian Rowley

arowley@alderking.com 

07771 874 175

Heywood & Partners

Bradley Lewis

bml@heywood-p.co.uk 

07990 591 759