• New 10-year lease from July 2020, without breaks

• Established tenant who has recently been subject to a management buyout, backed by an international investment group

• Property has benefitted from a partial refurbishment in 2020

• Established commercial location

• Freehold

• £1,500,000, subject to contract

• Rent only £2.67 per sq ft / £28.69 per sq metre

• 9.0% Net Initial Yield

• Low capital value of £28.06 per sq ft / £302.05 per sq metres

The property is accessed via Garter Street and is situated in an established commercial location with the surrounding area accommodating a variety of distribution, light industrial and heavy industrial uses. Nearby occupiers include Delicious Alchemy, Direct Special Metals, Ancon, Amazon, Royal Mail and UPS.

Sheffield City Centre is located approximately 3.2 km (2 miles) to the south-west and Meadowhall Shopping Centre is approximately 2.8 km (1.75 miles) to the north-east. Both these locations are accessed via the A6109.

The property comprises a detached industrial unit dating from the 1960’s which has been partly refurbished in 2020 (see below).

The property has three interconnecting bays (Bays 1-3) in addition to an adjoining single store office/ancillary element. The industrial unit is of steel framed construction with elevations a combination of brick and profile cladding, with an eaves height of approximately 8.8 metres (28.9 feet) to the underside of the haunch. The office/ancillary element extends along the south eastern elevation of Bay 3 with elevations of brick construction.

Bays 1 and 2 benefit from one level access loading bay to their north eastern elevations whilst Bay 3 provides three level access loading bays along its south eastern elevation.

The property has an EPC rating of “D”. A copy of the EPC is available to download.

Refurbishment Works

An external refurbishment of the buildings and car park / entrance was undertaken in 2020. A summary of the refurbishment works is outlined below and a copy of the specification is available to download.

• New cladding to Bays 1-3
• New gates and entrance onto Carwood Road with areas reinstated with C40 reinforced concrete for HGV turning, significantly enhancing access for HGVs and other vehicles
• Repairs to road surface and creation of 10 x new parking pays
• Widening of HGV turning area from 5 metres to 10 metres

In addition, a new modular office has been constructed. The unit is of steel framed construction with composite external elevations and double glazing. The internal specification includes suspended ceilings, LED lighting and comfort cooling. The specification and plans of the unit are available to download.

The 2019/20 Uniform Business Rate is 50.4 pence per pound.

We estimate the site area to be approximately 1.28 hectares (3.15 acres).

An Environmental Report carried out by Arcadis EC Harris in August 2013 concluded that “The environmental sensitivity of the site is considered moderate ….the site is considered fit for continued industrial operations”. A copy of this report is available to download.

A Groundsure Siteguard Report dated January 2020 concludes that the Flood Risk is Low. A copy of this report is available to download.

The property is let to Paralloy Limited on a full repairing and insuring lease (subject to a Schedule of Condition) for a term of 10 years from 24th July 2020, expiring on 23rd July 2030.

The current passing rent is £142,500 per annum which equates to £2.67 per sq ft / £28.69 per sq m. There is an upwards only rent review on 24th July 2025.

Paralloy has roots in the UK’s steel industry dating back to 1967 and specialises in transforming raw elements into products that power the petrochemical, ethylene and syngas industries. Paralloy primarily serves the synthetic natural gas and ethylene cracker petrochemical markets, manufacturing and fabricating specialist centrifugal castings. For further information visit www.paralloy.co.uk.

Up until December 2019 Paralloy, along with FVC, another leading manufacturer in the steel industry primarily serving the industrial gas turbine and aerospace industries, formed part of The Doncaster Group. The Doncaster Group is a leading international manufacturer of high-precision alloy components with 240 years of experience.

In December 2019 the Centrifugal Castings Division of The Doncaster Group, comprising Paralloy and FVC, was acquired by Nimbus, an international investment group. Nimbus backed Paralloy’s senior management team, led by chief executive Robert McGowan, to acquire the business, using its pan European footprint to support Paralloy and FVC’s growth and export plans. Arbuthnot Commercial ABL structured and delivered an £11.8 million asset-based lending transaction to support the acquisition. The statement on the company website can be found here.

“This is good news for our business. We are delighted to be working with Nimbus, we believe their background and expertise complements our strong management team and we have a partner that understands us, our business and is excited about the future.” Paralloy Chief Executive, Rober McGowean

The announcement by Nimbus can be viewed on the company website here .Nimbus has offices in Germany and the Netherlands, plus a UK base in Leeds. It specialises in investments into “industrial companies requiring both capital and management support”. For further information see www.nimbus.com and www.nimbus.com/en/our-companies/80/paralloy-fvc.

The most recent published accounts for Paralloy Limited (Co. No. 00260752), prior to the management buy-out in 2020, are as follows:

The ultimate parent company is Nimbus Investment Fund IV Cooperatief UA.

We are instructed to seek offers in the region of £1,500,000, (One Million, Five Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0% and a capital value of £28.06 per sq ft / £302.05 per sq metre, assuming purchaser’s costs of 6.10%.

Please note that no capital allowances are available.

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

1. An opportunity to acquire a high yielding industrial investment;

2. Let on a new 10-year lease from January 2020, without breaks;

3. The property is let to an established tenant who has recently been the subject of a management buyout, backed by an international investment group;

4. The property has benefitted from a partial refurbished in 2020;

5. The property is situated in an established commercial location;

6. A purchase at the asking price will provide an investor with an attractive net initial yield;

7. A purchase at the asking price reflects a low capital value;

8. An attractive lot size to an investor.