Keyline Builders Merchants Ltd, · Keyline Builders Merchants Ltd (Reg.No:SC042425) Accounts Turnover Pre-Tax Profit Total Equity Y/end 12/2018 £523.3m £24.6m £209m Y/end 12/2017

Centrally Located Trade Counter/Showroom Investment

Keyline Builders Merchants Ltd, County Park, Shrivenham Road, Swindon, SN1 2NS

• Trade counter unit(1990’s)of29,765sqftGIA,withextensiveyardandlow site coverage: 24%

• Tenant – Travis Perkins (Properties) Ltd - D&B 5A1

• Occupier - Keyline Builders Merchants Ltd(TravisPerkinsplcsubsidiary)–D&B 5A1

• FRIleasefor12.4 years, expiring 30th November 2031(subjecttoaScheduleofCondition)

• Virtual Freehold–200yearleaseholdfrom2006atapeppercornrentalwithanOption to purchase Freehold for £1

• Lowcommencingrentof£4.54 psf(payablemonthly)forthetradeunit;(assuming45%sitecoverage,£1.50psfforadditionalyardandmezzaninesat50%)

• Minimum fixed increases at rent review in Dec 2022 & Dec 2027 to the higher of two thirds of Market Rent or 3% pa(15.93%)

• Current estimated Market Rent: £195,000 pa(£6psfGIAplus£1.50psfforadditionalyard)

• Offers in excessof £2,615,000,exclusiveofVAT(£88psfCapitalValue,incl.mezzanines)

Investment Summary


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Income Yield

NetInitialYield £146,037pa 5.25%

MinimumRev.Yield-1stDec2022 £169,297pa 6.09%


NetEquivalentYield - 6.55%

YieldProfile:assuming 6.40% Purchaser’s Costs

LocationSwindon is Wiltshire’s principal town and commercial centre. It is strategically located on the M4 corridor, between Jcts.15 & 16 and is home to a diverse employment base, including many national and international companies such as BMW, Intel, Catalent Pharma. Solutions and Nationwide Building Society.

Swindon has excellent road links to major conurbations and the motorway network, being 80 miles west of London; 40 miles equidistant between Bristol or Reading, and 34 miles south east of Gloucester, via the A419 to the M5. This has cemented the town as a logistics hub with established occupiers such as Howard Tenens, with new facilities for B&Q and Iceland Foods.

First Great Western’s £10bn upgrade to the principal east/west rail-line will improve connections into Bristol, Reading and London. Regular services of c 50 mins to London Paddington have made Swindon a viable commuter town for the capital. The current population is 220,363 (2017), projected to grow to 264,300 by 2036.

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J7

J9

J11

J6

J5

A24

CRAWLEY

LEATHERHEAD

TONBRIDGE

BURGESS HILL

BRIGHTONWORTHING

HORSHAM

EASTBOURNE

M25

M25

M23

A264

A23

A24

A272

A27

A27

A22A26

A272

A26 A21

A21

A264

A22

A22

A273A23

M4

M40

M4

M5

A40

A419A420

A346

A34M3

MAIDENHEAD

AYLESBURY

BASINGSTOKE

BATH

BRISTOL

CHELTENHAM

STROUD

SWINDON

GLOUCESTER

J15

J16

J12

J8a

J9

J13

J15J20

J11a

J11

A417


BURGESSHILL

A273

CHARLES AVENUE

YORK ROAD

ALBERT DRIVE

VIC TORIA CLOSE

VICTORIA ROADVICTORIA WAY

ROYAL GEORGE ROAD LOWER CHURCH RD

PARK ROAD

CRESCENT ROAD

CIVI

C WAY

STATION ROAD

CHAN

CTON

BURY

ROA

D

KEYMER ROAD

JUNC

TION

ROA

D

MILL ROAD

LEYLANDS ROAD

VICT

ORIA AVE

SWINDON TOWNFOOTBLL CLUB

SWINDON RUGBY CLUB

COPSE AVE

SHRIVENHAM RD

BRIDGE END RD

CHAPEL ST

CIRENCESTER RD

A4313

OCOTAL WAY

SHRIVENHAM RD

A4289

A4312

DRAKES WAY

QUEENS DRIVE

MARLOWE AVE

STRATON RD

SWINDON RD

Keyline Builders Merchants Ltd

BMW Swindon Pressings

Empire Imax Cinema

Greenbridge Retail & Leisure Park

Mercedes Benz

Big Yellow Self Storage

CarShop Swindon

MG

Allen Ford

Enterprise Rent-a-car

Keyline Builders Merchants Ltd

M4 Self Storage A4312

SHR

IVEN

HA

M R

D


WH Smiths

SituationThe property is situated in an established commercial area c.1.5 miles to the east of the town centre. Greenbridge Retail Park is the dominant OOT location for the town and is 0.5 miles to the east. Roundabout access is off Shrivenham Rd and the property occupies a prominent self contained site fronting the estate road within County Business Park. The remaining properties within the Park comprise three purpose built, multi-let office and warehouse blocks. Tenants include Hills of Swindon, Verelogic, and Vets Now Referrals.

There are a number of automotive operators in the immediate area, including Carshop Swindon, Ford and Mercedes Benz. Additional trade operators including Kellaway, Wickes and Screwfix, which are all located on the Techno Trading Estate.

A recent residential scheme, centred on Culverhouse Rd, immediately abuts the property to the south west.

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The property comprises a single light industrial unit, incorporating trade counter/showroom; office, mezzanine and ancillary accommodation. The extensive service yards have a maximum depth of 45m to the rear and 29m to the side of the unit with dual vehicular access from the estate road, permitting future subdivision and/or extension of the unit.

Description

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Principal features include:

• Steelportalframeconstructionwithprofiledmetalsheetcladding/roofing

• Concreteslabfloorsand5.6meavesheight

• Twosteel-framedmezzaninefloors,usedforstorage

• Customeraccesstothetradecounterandoffices

• Threerollershutterdoors

• Serviceyardsecuredbybrickwalls,palisadefencingandgates

Accommodation

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Area Sq m GIA Sq ft GIA

Ground Floor

Warehouse 1,784.6 19,209

Office 152.0 1,636

Ground Floor Total 1,936.6 20,845

Overall Total 2,765.3 29,765

First Floor Office 151.8 1,634

Mezzanine 1 401.7 4,324

Mezzanine 2 275.2 2,962

A Plowman Craven report can be provided on a ‘non-reliance’ basis.

N.B. Mezzanines rentalised at review.

Total site area is approximately 1.98 acres (0.80 h.a.) with a site coverage of 24% (based on ‘building footprint’).

Site Area

Site boundary indicated in red for illustrative purposes only.

• Term:200 years from 1st December 2006 at a peppercorn rental

• Freeholder:KeylineBuildersMerchantsLtd

• Guarantor:TravisPerkins(Properties)Ltd.

• ‘CallOption’:The Freehold interest can be bought for £1 by the Head Leaseholder, exercisable on expiry of the occupational lease or if a Group company of Travis Perkins plc ceases to have an interest in it.

Tenure - Virtual Freehold

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Accounts Turnover Pre-Tax Profit Total Equity

Y/end12/2018 £92.2m £52.2m £277.1m

Y/end12/2017 £87.3m £68.9m £332.7m

Y/end12/2016 £76.9m £44.9m £324m

Both companies have a 5A1 D&B Rating, representing a “minimum risk of business failure” and summaries from the available accounts for the three previoustradingyearsare:

Travis Perkins (Properties) Ltd (Reg. No: 00468024)

Tenant’s and Occupier’s Covenant

Keyline Builders Merchants Ltd (Reg.No:SC042425)

Accounts Turnover Pre-Tax Profit Total Equity

Y/end12/2018 £523.3m £24.6m £209m

Y/end12/2017 £517.3m £29.1m £239.2m

Y/end12/2016 £484.4m £32.7m £266m

Travis Perkins plc is the UK’s leading company in the builders’ merchanting and home improvement markets, with 20 businesses trading from over 2,000 sites. It reported a 4.9% increase in like-for-like Group sales to £6.74bn in 2018, with EBITA 1.3% lower at £375m and total Assets of £5.12bn. The Group reported a 7.3% increase in ‘like for like’ sales in their Q1 2019 trading update. Keyline sits within the ‘Merchanting Division’ which reported a ‘like for like’ sales increase of 10.6%.

• Tenant:Travis Perkins (Properties) Ltd

• Term:25yearsfrom1stDecember2006 (12.4 years unexpired), FRI (subject to a Schedule of Condition).

• CurrentRental:£146,037 pa, payable monthly

• Rent Review – 5 Yearly to higher of two-thirds of Market Rent or 3% pa compound increase (15.93% increase).

• Minimum Reversionary Rental: 1st December 2022 - £169,297 pa 1st December 2027 - £196,262 pa

• Occupier:KeylineBuildersMerchantsLtd,asapermittedGroupoccupierof Travis Perkins plc.

• RenewalOption:TheTenanthasanoptiontorenewtheleasefor25years,atMarket Rent but otherwise on identical lease terms, including the rent review basis.

Occupational Lease

Current estimated Market Rent: £195,000 pa (at £6 psf on GIA & £1.50 psf for surplus yard, assuming 45% site coverage and excl. mezzanines).

ERV

Occupational Market

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Date Address Postcode Sq Ft Rent PA Rent PSF Comment Tenant

U/O Unit18,EquityTrade&IOCentre SN34NS 3,816 £47,700 £12.50 CurrentlyU/O Kitchen+BathroomCo

Jun-19 Unit1Westerngate,HillmeadPark SN55WN 25,449 £176,616 £6.94 Detachedwarehousewithyard MTDUK&IRE

Mar-19 UnitB2StirlingCourt SN34TQ 25,589 £166,329 £6.50 Modernsemi-detachedwarehouse RecyclingTechnologies

Jul-18 12MurdockRoad,DorcanIndEst SN35HY 38,278 £290,000 £7.58 Detachedwarehousewithyard ConstructorGroup

Jun-18 Unit10TechnoTradingEstate SN28ER 3,415 £24,008 £7.03 Endterracetradecounterunit BarryShadickTyresLtd

Apr-18 Unit13KembreyPark SN28UU 3,119 £20,274 £6.50 Modernmulti-letunits SJHarrisServices

Investment Market Date Address Price NIY Sq Ft Rent PSF Cap Val psf Comment

Jun-19 Selco,Erdington £5,270,000 4.96% 37,961 £7.35 £139.00 Selcowith12.5yrsunexp(OMV)+25%sitecoverage.

May-19 Fedex,LysanderRd,Bristol £6,180,000 4.40% 49,120 £5.90 £126.00 Fedexwith6.25yrsunexp(OMV)+43%sitecoverage.

May-19 SpeedyHire,Gloucester £1,950,000 5.50% 18,923 £5.99 £103.00 SpeedyHire,new10yearlease(omv),TOB5yrs+22%sitecoverage.

Dec-18 MKMBuilders,Crewe £3,430,000 4.94% 19,709 £9.16 £174.00 MKMBuildingServiceswith15yrsunexp(OMV)

Oct-18 TravisPerkins,MeltonMowbray £1,400,000 4.38% 8,966 £7.24 £156.00 TravisPerkinswith9yrsunexp(OMV)

Jun-18 Jewson,Huntingdon £2,650,000 4.72% 16,668 £7.97 £159.00 LettoJewsonwith9.8yrsunexp(OMV)+18%sitecoverage.

May-18 TravisPerkins,AcreRoad,Reading £4,825,000 3.79% 15,863 £12.30 £304.00 TravisPerkins,7.9yrsWAULT+30%Sitecoverage

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PlanningPlanning permission was granted for ‘County Park’ in 1990, permitting “the construction of four B1,B2 and B8 business/storage units, including use as a builders merchants, offices (B1), associated car parking and construction of a new vehicular access off Shrivenham Road”.

Business Rates CurrentRateableValue:£107,000.

EPC ThepropertyhasanEPCratingof:C 75. A copy of the report is available on request

VATThe property has been elected for VAT and the transaction will be treated as a TOGC.


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MISREPRESENTATION ACT 1967 DISCLAIMER - Messrs Hoddell Stotesbury Morgan Limited (9050701) trading as HSM, for themselves and for the vendors of this property whoseagentstheyaregivenoticethat:-(i)theparticularsaresetoutasageneraloutlineonlyfortheguidanceofintendingpurchasersand do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to conditions and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchaser should not rely upon them a statement or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of HSM has any authority to make or give any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) HSM has not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or watercontamination.Prospectivepurchasersmustundertaketheirownenquiriesandsatisfythemselvesinthisregard.Date:June2019.

An electronic dataroom has been prepared. Please contact the selling agentsforaccesstothedataroomandforformalinspections:

Additional Information and Inspections

Tom Larkin

E:[email protected]:02073181938

www.hsmuk.com

Paul Yeadon

E:[email protected]:02073181931

ProposalSeeking offers in excess of £2,615,000 (Two Million, Six Hundred and Fifteen Thousand Pounds) for the virtual freehold interest, subject to contract and exclusive of VAT. A purchase at this price would show the following yield profile, assuming the minimum fixed increases in income at review and standard Purchaser’sCostsof6.40%.(incl.SDLT):

SUBJECT TO CONTRACT

AML When submitting a bid for the property, potential purchasers will need to provide appropriate documentation capable of satisfying the requirements of the Anti Money Laundering Regulations.

Income Yield

NetInitialYield £146,037pa 5.25%



NetEquivalentYield - 6.55%

Documents

Keyline Builders Merchants Ltd, · Keyline Builders Merchants Ltd (Reg.No:SC042425) Accounts Turnover Pre-Tax Profit Total Equity Y/end 12/2018 £523.3m £24.6m £209m Y/end 12/2017