• Two adjacent industrial units

• Let to established tenants

• Established commercial location

• Low passing rents equating to only £2.96 per sq ft

• WAULT of 4.7 years

• Freehold

• £1,000,000, subject to contract

• 9.4% Net Initial Yield

• Low capital value of £29.80 per sq ft

The subject property is accessed via the B1069 (Station Road) and forms part of the established Masterlord Industrial Park which comprises 26 industrial/ warehouse units and office buildings. Occupiers include EDF Energy, Collins and East Coast Bakery. Leiston town centre and its various amenities are within a short walking distance.

Unit 6/6A comprises a single storey industrial unit of steel frame construction with a metal ‘A’ frame roof supporting corrugated sheeting. Externally the unit benefits from profile metal cladding, a single personnel door and an automatic roller shutter loading door with a clear height of 4.59 metres (15 feet). There is a large yard area to the front of the unit.

Unit 7 has part brick and part profile metal clad elevations and comprises a traditional manufacturing unit accessed via a roller shutter loading door to the north elevation, with two storey offices and visitor entrance to the south frontage. The roof is of steel truss construction with translucent panels affording good natural light. Internally the unit provides a large warehouse area and benefits from a 15 tonne gantry crane and a minimum eaves height of 6.5 metres (21 feet). There are 8 car parking spaces at the southern boundary of the property plus a large yard area at the north of the unit.

The tenant of Unit 7 is considering installing a mezzanine which shows their further commitment to the building.

According to the Valuation Office website the rateable value for the property is as follows:

*Rateable value includes additional units outside of the demise.

The Uniform Business Rate is 49.1 pence per pound if the rateable value is below £51,000 and 50.4 pence per pound for rateable values of £51,000 or more.

We estimate the site area to be approximately 0.45 hectares (1.12 acres).

A Phase I Environmental Assessment was carried out by Avison Young in February 2020 which concludes that “the site represents a Low Environmental Risk from an environmental perspective for continued light industrial/storage use”. A copy of this report is available to download and will be assigned to a purchaser at a cost of £2,250 + VAT.

Unit 6/6A is let to George East (Housewares) Limited from 14th March 2019, expiring on 23rd June 2022. There is a tenant’s break option on 23rd June 2021, subject to six months’ prior notice. The lease is subject to a Schedule of Condition and is outside 1945 Act protection.

The passing rent is £48,750 per annum (£33.13 per sq m / £3.08 per sq ft).

We understand the tenant has been in occupation since at least 2007 and renewed their lease last year. George East (Housewares) Limited has shown loyalty to the park through the purchase of a number of its occupied units.

Unit 7 is let to Tudor & Black Limited for a term of 10 years from 31st January 2017, expiring on 30th January 2027. The lease is subject to a Schedule of Condition and is outside 1945 Act protection.

The lease benefits from an upwards only rent review on 25th March 2020 and 25th March 2023. The March 2020 rent review has been agreed and documented at £50,644 per annum (£30.77 per sq m / £2.86 per sq ft), a significant uplift from the previous rent of £30,000 per annum.

Therefore, an investor will benefit from a total passing rent of £99,394 per annum (£31.88 per sq m / £2.96 per sq ft) with a WAULT of 4.7 years.

Tudor & Black Limited (Co. No. 9177582) has reported the following figures:

Established August 2014, Tudor & Black are specialists in the art of renovating and complete restoration of Classic Cars for clients in the UK and around the world. In addition to buying and selling, the Company offers a wide range of services to customers including valuations, appraisals before purchase, after-sales, storage and maintenance services. For further information visit www.tudorblack.co.uk.

George East (Housewares) Limited (Co. No. 03765504) has reported the following figures:

The principal activity of the company is that of the importation, marketing and sale of household products. Founded over 35 years ago, George East is one of the foremost non-food suppliers to major retailers.

George East is a subsidiary of Nedac Sorbo Mascot, a Dutch company which specialises in the sourcing, developing and distribution of non-food concepts for supermarkets, discounters, DIY stores and warehouses across Europe. The company delivers and distributes products under several brands of its own but also for retailers and third-party brands. Customers in the UK include Tesco, Sainsbury’s, Amazon, John Lewis, Fenwick, Waitrose, Asda, Morrisons, Co-Op, The Range and Ocado. For further information visit www.nedac.com.

Originally a manufacturing town, Leiston now sees storage and distribution as the primary industrial user. Demand for industrial space in the town has proven strong with limited vacancy on the surrounding estates, with further demand expected with the potential construction of Sizewell C.

As well as a strong occupational market the area benefits from strong underlying vacant possession values with recent transactions having achieved in excess of £30 psf.

We are instructed to seek offers in the region of £1,000,000 (One Million Pounds), subject to contract, reflecting a net initial yield of 9.4%, assuming purchaser’s costs of 5.75%, and a capital value of £320.78 per sq m / £29.80 per sq ft.

Please note that a purchaser will be re-charged the costs of searches which are provided in the data room, in addition to the measured survey and the environmental survey.

Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT.

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