ProCook Limited, Unit 2, Gateway 12 Business Park

Davy Way, Gloucester GL2 2BY

Overview

  • 20 year sale and leaseback investment opportunity of a modern logistics building in a prime South West location
  • Excellent access onto the A38 and Junction 12 of the M5 motorway
  • The property comprises a modern well specified and purpose built warehouse facility extending to circa 43,629 sq ft
  • The property will be let by way of a new lease from completion to ProCook Limited for a term of 20 years without breaks, subject to 5 yearly upwards-only open market rent reviews
  • Total passing rent of £303,225 per annum, reflecting a rent of £6.95 per sq ft
  • ProCook Limited is a rapidly expanding internet and store based retailer with a Dun & Bradstreet rating of 2A2 representing a lower than average risk of business failure
  • Occupiers within the location include Parcelforce, DPD, Gloucestershire Constabulary, Amazon and Sci-MX Nutrition
  • Site area of 1.76 acres (0.711 hectares)
  • Long Leasehold (250 years from 30th December 2015)
We are instructed to seek offers in excess of £5,350,000 (Five Million, Three Hundred and Fifty 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 5.27%, assuming purchaser's costs of 7.60%, and a capital value of £123 per sq ft.

Location

The historic city of Gloucester is the administrative capital of Gloucestershire and is considered one of the principal commercial centres of the South West of England. The city serves a large and educated catchment of 402,000 persons (2000 estimate) within a 20 km radius of the city centre, which itself has an urban population of 136,000 (2011 census).

Its economy is well balanced and largely influenced by the distribution, service and manufacturing sectors, with the largest private sector employers being Downton Logistics, Lloyds Banking group and Ecclesiastical Insurance group. Large public sector employers include Gloucestershire Royal NHS Trust, HM Customs & Excise and the County and City councils.

Gloucester benefits from excellent road connections with junctions 11a and 12 of the M5 motorway running directly to the east of the city. The M5 provides further links to the national motorway network including the M4, M50 and M42.

Gloucester is also at the intersection of the A38 and A40, the principal route from the Midlands to the rest of the South West. The city is located 91 miles (147 km) west of London, 54 miles (87 km) south west of Birmingham, 32 miles (51 km) north east of Bristol and 10 miles (16 km) south west of Cheltenham.

Gloucester Train Station runs regular mainline services to London Paddington with journey times of approximately 1 hour 45 minutes. Other direct services include Bristol (54 minutes), Birmingham (55 minutes) and Cardiff (1 hour).

Gloucester Airport (formerly Staverton) is located 5 miles (8 km) to the north and provides domestic flights around the UK, whilst Bristol International Airport is located 50 miles (80 km) south and offers direct flights to over 125 destinations throughout the UK, all of the major European economies and also the USA.

Situation

The property is situated approximately 3 miles (4.8 km) south of Gloucester city centre on Gateway 12 Business Park, an established and well connected distribution and office location 1.5 miles (2.4 km) to the north of Junction 12 of the M5 motorway, which is easily accessed via the A38 trunk road.

There is also a designated 'Park and Ride' scheme which provides a regular shuttle service from the business park to the city centre.

The property occupies a prominent entrance position to St Modwen's £20 million Gateway 12 development. Gateway 12 comprises a 15 acre development site, completed in October 2018, delivering 285,000 sq ft of prime logistics and production space with a jobs potential of over 400 people.

The scheme has proved popular with mid-sized warehouse and logistics firms. This buoyed demand has underpinned St Modwen's continued speculative development in the area, which is now focussing on delivery of 178,000 sq ft of speculative industrial space at Quedgeley East in 2019, located to the south.

Surrounding major occupiers include Parcelforce, DPD, Gloucestershire Constabulary, Rochling, Amazon, Sci-MX Nutrition and Holiday Inn.

In addition to the various commercial uses, the wider surrounding area comprises residential use.

Site Area

The site totals approximately 1.76 acres (0.711 hectares).

Description

The property was completed in 2015 and comprises a high specification warehouse extending to around 43,629 sq ft (4,053.24 sq m).

The building includes the following specifications:

  • Steel portal frame construction with a mix of brick and profile steel sheeting
  • 8 metre clear internal eaves height
  • Power floated reinforced concrete floor to warehouse with loading capacity of 37.5 kN/m2
  • Self-contained surface car parking with 86 spaces
  • LPHW gas fired radiator heating
  • LED lighting to the warehouse
  • Excellent incoming electricity power capacity of 200 Kva
  • Three electronically operated level access loading doors
  • Large concrete loading yard extending to a maximum depth of 35 metres
  • High quality offices at ground and first floor level with LED lighting, 2.7m floor to ceiling height, perimeter trunking, aluminium double glazed windows, solid concrete floors, suspended ceilings and 8 person passenger lift.
ProCook has invested heavily in fitting out the property, including the following:
  • High quality office fit out on ground and first floors
  • Fully fitted kitchen and subsidised staff canteen
  • Fitted gym with shower facilities
  • Prototype shop fit out and photography studio

Accommodation

The property has been measured in accordance with the RICS Property Code of Measuring (6th Edition) and provides the following Gross Internal floor areas which can be viewed within the link below.


Tenure

The property is held long leasehold for 250 years from 30th December 2015 under title number GR400674 at a peppercorn rent.

Tenancy

Upon completion of the sale, the property will be let to ProCook Limited for 20 years without break on full repairing and insuring terms.

The initial rent will be £303,220 per annum, equating to £6.95 per sq ft. The rent will be reviewed 5 yearly on an upwards only basis to the greater of the passing rent or open market rent.

Covenant Information

ProCook Limited was established over 20 years ago and was the first company to sell cookware sets by direct mail in the UK. It is now a multi-channel specialist cookware company with 50 stores nationwide.

Sales are broadly split 60% retail; 40% e-commerce with sales to mainland Europe amounting to c.7%. Originally, ProCook provided essential cookware which has grown into extensive ranges of cookware, kitchen knives, bakeware, kitchen accessories/appliances and tableware.

The philosophy is to supply top quality cookware/kitchenware at competitive prices. This is achieved by buying the products direct from the manufacturers; these savings are passed directly onto the customer. ProCook currently has some 1200 product lines, the majority of which are sourced from the Far East.

In 2018, ProCook completed the purchase of Steamer Trading which provided access to a number of strategic High Street locations. Unprofitable locations were closed in the course of early 2019, with the remaining stores re-opened under the ProCook brand selling ProCook products alongside complementary branded ones.

ProCook Limited (Company No: 06639057) has a Dun and Bradstreet rating of 2A2 which represents a minimum risk of business failure.

For further information: www.procook.com

OCCUPATIONAL MARKET COMMENTARY

Further information can be found within the marketing particulars.

INDUSTRIAL & LOGISTICS INVESTMENT MARKET

Further information can be found within the marketing particulars.


VAT

The property is elected for VAT, however the transaction cannot be treated as TOGC for VAT purposes and therefore purchaser's costs are estimated to be around 7.60%.

PLANNING

The property benefits from planning consent for warehouse, general/light industrial and offices consent (B1, B2 and B8).

EPC

The property has an Energy Performance Certificate rating of B (43). A copy of this certificate is available upon request.

WARRANTIES

It is envisaged warranties will be transferable to the purchaser.

DATA ROOM

Access to the data room is available upon request.

Proposal

We are instructed to seek offers in excess of £5,350,000 (Five Million, Three Hundred and Fifty 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 5.27%, assuming purchaser's costs of 7.60%, and a capital value of £123 per sq ft.

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NET INITIAL YIELD:
5.27%
PRICE:
£5,350,000
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