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Property Ref: 29041

Income Producing Prime Cash & Carry Warehouse Investment - For Sale In Tamworth

Blue Chip Commercial Investment


Booker Cash & Carry, Apollo, Lichfield Road Industrial Estate, Tamworth, Staffordshire, B79 7TA
Available
27,190 SQ FT (2,526 SQ M)
We are instructed to seek offers in the region of £2,840,000 (Two Million Eight Hundred & Forty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5% after allowing for purchaser’s costs of 6.43%.



Enquiry about this Property

Property Type

Investment Industrial/Warehouse

Tenure

Freehold

Gross Annual Income

Current annual rental of £151,124 pa (£5.56 psf). Assuming the tenant does not exercise their break option in 2025, this ensures a minimum rental uplift on 28th February 2025 to Higher of £170,983 (£6.29 psf) per annum or OMV.

Price

We are instructed to seek offers in the region of £2,840,000 (Two Million Eight Hundred & Forty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 5% with a minimum Reversionary Yield of 5.66% in 2025 (subject to tenant break option not being exercised), after allowing for purchaser’s costs of 6.43%.

A purchase at this level equates to a low capital value of just £104 per sq ft.

Location

The historical market town of Tamworth, with a catchment population in excess of 76,000, is situated approximately 12 miles east of Walsall, 13 miles north-east of Birmingham, and 24 miles west of Leeds. The town benefits from excellent road communications being approximately 5 miles west of Junction 10 of the M42 motorway, via the major A5 trunk road, which in turn provides easy access to the M6, M69, M40 and M1 motorways.

Google Street & 360 view: https://bit.ly/3qaLQNU

Situation

The property is located on the Linchfield Road Industrial Estate approximately 1 mile to the west of Tamworth town centre, on the north side of Apollo, one of the main roads running through the estate. Nearby occupiers include Kimberly-Clarke, Powelectrics and Scolmore International.

Description

The property, a substantial cash and carry warehouse building, comprises warehouse accommodation on the ground floor and canopied loading area with a roller shutter door to the rear. In addition, the property benefits from car parking for some 38 cars and an approximate site area of 0.66 hectares (1.64 acres).

Accommodation

All measurements are approximate. Interested parties are advised to carry out their own surveys.
Warehouse 27,190 sqft 2,526.03 sqm
TOTAL 27,190 sqft 2,526.03 sqm
Site Area 1.64 acres 0.66 hectares

Tenancy

Freehold

Lease
Let to Giant Booker Ltd (Company No 00065519), formerly Booker PLC and guaranteed by Giant Bidco Ltd (Company No 05310162), for a term of 25 years from 28th February 2005 until 2030 on a full repairing and insuring lease. There is a tenant only option to determine the lease on 28th February 2025. The parent company of Booker Group PLC is Tesco PLC.


Rent Review
The rent is reviewed on a 5 yearly basis to the greater of either the Open Market Rental Value or the current rent reserved per annum with compounded increases of 2.5% per annum. Therefore, minimum rental increases are as follows: 28th February 2025 - £170,983 pa exclusive.

Covenant Profile

Booker PLC is a leading food wholesaler and distributor in the United Kingdom, operating a network of over 180 cash-and-carry warehouses that serve retailers and caterers rather than end consumers.

Booker's food wholesaling business is one of the largest in the U.K., supplying more than 400,000 independent grocers, CTNs, convenience stores, and caterers. Its national network of cash and carry branches now includes many that have extensive specialist departments dedicated to the needs of caterers.

The Booker Group was acquired by Tesco in 2017 in a deal worth £3.7 billion, combining Britain’s biggest retailer with the country’s largest wholesaler. The amalgamation is expected to further grow the Booker business and expand its significant market share.

Giant Booker Ltd has reported the following financial information for the last three years

For the year ended 30 March 2018 - turnover of £10.5m with a pre-tax profit of £5.8m and total Net Worth of £238,600,000 (excludes intangible fixed assets).

For the year ended 24 February 2019 - turnover of £11.5m with a pre-tax profit of £4.6m and total Net Worth of £243,400,000 (excludes intangible fixed assets).

For the year ended 1 March 2020 - turnover of £10.7m with a pre-tax profit of £30.5m and total Net Worth of £273,800,000 (excludes intangible fixed assets).

(Source: Experian)

Net Yield

Net initial yield of 5% after allowing for purchaser’s costs of 6.43%.

VAT

The property has been elected for VAT purposes and it is anticipated that the sale will be treated as a transfer of a going concern (TOGC), subject to applicable tax rules.

EPC

Energy Performance Asset Rating B:49

Legal Costs

Each party to bear their own legal costs

Further Info

Data Room
Access available on request.

Misrepresentation

Telsar Ltd and its joint agents, give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Telsar Ltd or its joint agents, has any authority to make any representation or warranty whatsoever in relation to this property. All rentals and prices are quoted exclusive of VAT.