Unit 19/21 Aberavon Road, Baglan Industrial Estate, Port Talbot, SA12 7DJ
- Property Type: Investment
- Size: 1,900 sq m (10,230 sq ft)
- INDUSTRIAL INVESTMENT OPPORTUNITY
- STEPPED RENT TO £81,840 pax (£4.00 PER SQ FT)
- COTERMINOUS LEASES EXPIRING 31 DECEMBER 2025 (NO BREAKS)
- OFFERS IN THE REGION OF £1,000,000 REFLECTING A 7.78% NET REVERSIONARY YIELD
The property is located within the heart of Baglan Industrial Estate, one of the main industrial locations in this part of South Wales. Junctions 41 & 42 of the M4 Motorway are located approximately two miles away. Swansea City Centre lies approximately 9 miles to the west, whilst Cardiff City Centre 35 miles to the east.
Prominent occupiers in the immediate vicinity include Howden Joinery, Screwfix, City Electrical Factors, Owens Road Transport, Warburtons Bakery and Freudenberg.
DESCRIPTION
The property comprises two terraced warehouse units with rear loading access and forecourt car parking. The buildings are of steel portal frame construction over clad with metal sheeting. The property comprises open plan warehouse accommodation, together with ancillary office and staff accommodation.
Vehicular access to the site is provided directly from the estate road leading to the forecourt car park with separate access to the rear loading area. Each unit has a large roller shutter door to the rear. Pedestrian access is given at the front of the building from the car park.
The Tenant occupies both properties under separate leases and has opened-up part of the dividing wall between the two units. We understand they are obliged to reinstate the opening at the end of the leases.
ACCOMMODATION
| Unit 19 | 950 sq m | 10,230 sq ft |
| Unit 21 | 950 sq m | 10,230 sq ft |
| Total: | 1,900 sq m | 20,460 sq ft |
TENURE
| Tenure | Title number | Term | Rent | |
| Unit 19 | Leasehold | CYM594208 | 999 years from 14 June 2013 | £50pa |
| Unit 21 | Leasehold | CYM594415 | 999 years from 14 June 2013 | £50pa |
TENANCY
| Tenant | Term | Breaks | Rent PAX | Other | |
| Unit 19 | Vizor Tempered Glass Limited
|
Five years commencing 1 January 2021, expiring 31 December 2025 | None | Yr 1 £33,248
Yr 2 £35,294 Yr 3 £37,340 Yr 4 £39,368 Yr 5 £40,920 |
Inside the Act, FRI subject to Schedule of Condition dated 18 August 2015. |
| Unit 21 | Vizor Tempered Glass Limited
|
Five years commencing 1 January 2021, expiring 31 December 2025 | None | Yr 1 £33,248
Yr 2 £35,294 Yr 3 £37,340 Yr 4 £39,368 Yr 5 £40,920 |
Inside the Act, FRI subject to Schedule of Condition dated 18 August 2015. |
PASSING RENT
The rent is stepped from a combined £66,496pax (£3.25psf) to £81,840pa (£4.00psf), producing an average rent across the term of £3.64 psf.
TENANT INFOMATION
Vizor Tempered Glass Limited, company registration number 03072172. Founded in 1995. Trading accounts for year ending 31 December 2019 show a turnover of £17,949,102, a gross profit of £8,383,702, net profit before tax of £516,446 and net assets of £10,694,604.
PROPOSAL
Seeking offers in the region of £1,000,000 (One Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a capital value of £49 per sq. ft, and the following yield profile:
Net Equivalent Yield: 7.07%
Net Reversionary Yield: 7.78%
Assuming standard purchaser’s costs at 5.28%.
Alternatively, the vendor would consider a sale of the individual leasehold titles at offers in the region of £500,000 (Five Hundred Thousand Pounds) for each unit.