Peterborough is an established cathedral city within Cambridgeshire, being one of the largest cities within the South East region. The city is situated approximately 85 miles north east of London, 35 miles north of Cambridge and 75 miles east of Birmingham.
The city is situated east of the A1(M) Motorway, which provides an excellent north-south route along the east of England, down to the M25 and London in a southbound direction, and providing connections to Yorkshire, Lincolnshire and the North East in a northbound direction. The A47 provides access to Junction 21 of the M1 to the west, whilst the A47 eastbound provides access to East Anglia.
Peterborough Railway Station is situated on the East Coast Mainline which allows direct access to London King's Cross with a journey time of approximately 50 minutes. Northbound services run regularly to destinations such as York (1 hr 10 min), Leeds (1 hr 30 min) and Newcastle (2 hr 25 min). Furthermore, the station is served by the Cross Country operated Birmingham to Peterborough line which provides services to Leicester (55 min) and Birmingham (1 hr 45 min).
Peterborough is well served by local airports including Luton Airport which is approximately 60 miles to the south west and Stansted Airport which is approximately 65 miles to the south east. The A14 East West dual carriageway, which connects to the A1(M), provides access to the deep water ports of Felixstowe and Harwich.
The property comprises a prime detached logistics facility which was constructed in 2005, and which was subsequently extended by the previous owner occupier in 2012.
Constructed with a steel portal frame, the building provides a 6-bay warehouse with additional 3 storey concrete framed office building. Within one of the bays there are a number of concrete floor mezzanine structures allowing storage on three levels.
The specification includes:
The property is held freehold.
Upon completion of the sale, the property will be let to Stapleton's (Tyre Services) Limited for a term of 20 years without break.
The lease will be guaranteed by European Tyre Enterprise Limited (ETEL), the UK top-co.
The passing rent will be £900,000 per annum, equating to £4.95 per sq ft overall. The rent will be reviewed in line with the Consumer Price Index (CPI), subject to a collar of 1.00% and a cap of 3.00%, compounded annually and effective 5-yearly.
The tenant will have the automatic right to extend their lease for a term of 10 years on a maximum of two occasions.
Stapleton's (Tyre Services) Ltd is one of the UK's largest and leading tyre distributors, with in excess of 80 years' experience specialising in the passenger car, 4x4 and van tyres sector. Capabilities include tyre warehousing and distribution for the specialist tyre retail trade and the car dealership sector.
The business employs over 1,000 people at 11 strategic locations across the UK, supported by a nationwide fleet of 400 delivery vehicles.
Sales turnover has increased year on year for the past 3 years, with headline figures from the most recent accounts being found within the link below.
The business has a Dun & Bradstreet rating of 4A1, representing a 'minimum risk' of business failure.
European Tyre Enterprise Limited (ETEL) is the UK holding company which has control over the group's subsidiaries, as well as providing funding and central support services. The business was acquired in 1994 by the Japanese Itochu Corporation, which subsequently purchased the Kwik Fit business in 2011. The principal activities of the group are the wholesale, distribution and retail sale of passenger and commercial vehicle tyres alongside servicing activities and automotive repair, including brakes, exhausts, MOT testing, and air conditioning recharge.
ETEL incorporates a UK distribution fleet of over 450 vehicles from a national network of 11 locations, around 750 UK centres and 300 mobile vehicles serving five million retail customers a year.
Under the ETEL there are a number of brands, including the following of note:
The property is elected for VAT and therefore VAT will be payable on the purchase price and SDLT on the gross purchase price.
Offers are invited in excess of £15,900,000 which reflects an attractive NIY of 5.25%, assuming purchaser's costs of 7.73%. This reflects a price of £87 per sq ft.
A purchase at this level will reflect a minimum yield of 5.52% in 2024, given the CPI collar provided (i.e. 1.00% pa), or a yield of 6.09% in 2024 given the CPI cap (i.e. 3.00% pa).