Located in the centre of the United Kingdom with the largest regional population outside London, Birmingham is regarded as Britain's second city. With an economy of £24.8 billion, it forms a substantial part of the broader West Midlands economy which generated a Gross Added Value (GVA) of £127 billion in 2016, larger than 11 of the 28 EU nations, sitting between Hungary and Greece.
Birmingham is in the heart of a world class multi-modal transport infrastructure, providing access to 90% of Britain's economy which can be reached within a travel time of four hours. The subject property is located within 5 miles of 11 separate motorway junctions.
For information on local transport links, please see the Marketing Brochure.
The property comprises a substantial industrial site which provides a warehouse and manufacturing unit together with a self-contained office building. The original building was constructed during the 1910s and has been extended over time. The two-storey office block was constructed during the 1930s and this was extended in the 1950s with an additional interconnecting three-storey block.
The building is and has only ever been used for the production of aircraft tyres by the same occupier, Dunlop Aircraft Tyres.
Over the years, the occupier has added small extensions and made alterations as necessary to suit the business need. The occupier has a large amount of on-site machinery which is used for production, retreading and testing of aircraft tyres with a proportion of this having been in-situ for over 80 years.
The accommodation offered by the buildings is functional for the occupier's needs. Loading doors are provided around the site which comprise a mixture of level access and dock level loading doors.
There are a number of tunnels located beneath the building which are no longer used and which originally provided access to neighbouring buildings on the previous larger site.
A further pump house serving the building is located off-site but nearby, which is included within the sale and leaseback.
Access to the site is from the A47 Fort Parkway, from which there is a gated entrance and associated gate house. The majority of the car parking provision is provided on the west of the site as well as further spaces situated around the site perimeter.
The property is held freehold.
A small parcel of land to the west has been carved out and sold historically. This has been excluded within the site plan shown.
Upon completion of the sale, the property will be let to Dunlop Aircraft Tyres Limited for a term of 25 years without break.
The passing rent will be £879,909 per annum, equating to £3.00 per sq ft overall. The rent will be reviewed in-line with the Retail Price Index (RPI), subject to a collar of 2.00% and a cap of 4.00%, compounded annually and effective five yearly.
The tenant will have the automatic right to extend their lease for a term of 5 years for a maximum of two occasions.
Dunlop Aircraft Tyres Limited is the worlds only dedicated specialist manufacturer and retreader of aircraft tyres, having been in operation for more than 100 years. The subject property forms the global headquarters for the business, with other sites located in the USA and China.
The business supplies in excess of 150 different aircraft types with over 300 individual customers globally, and holds over 500 approvals from either the Civil Aviation Authority, or other such global equivalents. The business has both aircraft manufacturers and operators among its customer base. It supplies tyres directly to manufacturers such as Airbus, Boeing, Bombardier and Embraer, as well as providing tyres to operators such as Jet2, Flybe, Lufthansa, the US Airforce and China Express.
Sales turnover has increased year on year over the previous 5 years, headline figures from the most recent accounts can be seen in the link below:
The latest accounts show an inflated pre-tax profit which is due to exceptional administrative circumstances relating to an inter-company disposal. The business has a Dun & Bradstreet rating of 5A1, representing a minimum risk of business failure.
For further information on Dunlop Aircraft Tyres Site Operation, please see the Marketing Brochure.
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 £15,275,000 (Fifteen Million, Two Hundred and Seventy-Five Thousand Pounds) which reflects an attractive NIY of 5.35%, assuming purchaser's costs of 7.73%. This reflects a price of £52 per sq ft.
A purchase at this level will reflect a minimum yield of 5.90% in 2023 given the RPI collar provided (i.e. 2.00%), or a yield of 7.01% in 2023 given the RPI cap (i.e. 4.00% pa).