Derby is a historic city located in the heart of the country, approximately 12 miles west of Nottingham, 23 miles north of Leicester, 35 miles north east of Birmingham, 32 miles south of Sheffield and 112 miles north west of central London.
Derby has a population of some 257,000 people and an estimated workforce of 126,900. The city has a strong industrial heritage, becoming (and remaining) a major railway node and engineering centre in the nineteenth century. In addition, Rolls-Royce started the manufacture of aircraft engines in the city a century ago and civil aerospace engines is still the company's largest division and Derby its largest location. Therefore, manufacturing, and particularly high-tech manufacturing, accounts for a high proportion of employment (15.8% compared with 8.8% across England), while transport/logistics employment is also above average (5.8% compared with 5.0%).
With its strategic location, Derby has excellent transport links:-
The property is held freehold.
There is a small estate charge, relating primarily to Stoney Gate Road, which will be recoverable from the tenant under the lease.
The property will be let to Accrofab Limited on effectively Full Repairing & Insuring terms for 20 years from completion of the transaction without break. The initial rent will be £200,000 per annum exclusive, with 5-yearly rent reviews in line with the Retail Prices Index (RPI), subject to a collar and cap of 2%-4% per annum compounded; this will give an increase after five years to a minimum of £220,816 per annum exclusive and maximum of £243,331 per annum exclusive.
Accrofab is a manufacturer of precision engineered parts for the aerospace industry, primarily components for gas turbines, and has approximately 140 staff. Established as an independent business in 1977, the company is now part of Bromford Industries. Bromford Industries is a supplier of performance critical parts for the global aerospace, defence and industrial gas turbine sectors, whose customers include major OEMs such as Safran, Rolls-Royce, Siemens, Messier-Bugatti-Dowty, GE Power & Water and Alstom. Bromford Industries has some 450 staff across four UK facilities, as well as operations in the USA and India. Accrofab Limited has a Dun & Bradstreet rating of 3A 1, indicating a minimum risk of business failure, and a maximum credit rating of £405,000. Further information can be found within the schedule below.
The property is not elected to tax for VAT.
We are instructed to invite offers of £3,275,000 (three million, two hundred and seventy-five thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 5.74%, having deducted purchaser's costs of 6.48%, with reversion after five years to a minimum of 6.33% and maximum of 6.98%.