Key statistics at 31 March 2020

Valuation at 31 March 2019

£9.5 million

Valuation at 31 March 2020

£11.5 million

Size at 31 March 2020:

184,800 sq.ft                                  

Contracted rent at 31 March 2020:

£705,500

Occupancy at 31 March 2020:

94.9%                                                                                                         

Key tenants:

Tuff X Processed Glass Ltd, CED Fabrications Ltd, The Quality Moving Group Ltd

What is it?

Nexus is a 12-unit industrial estate totalling 184,800 sq ft, together with 4.2 acres of development land. The site is on junction 4 of the M57, giving it strong transport links, and is within eight miles of Liverpool city centre. We acquired the asset as part of a portfolio, shortly after IPO.

Why did we buy it?

We saw opportunities to enhance the value of the estate through asset management, in particular by working up a suitable scheme for the development land.

What have we done since purchase?

In April 2019, we received planning permission to develop the 4.2 acres of surplus land. The proposed development will comprise up to 35,000 sq ft of warehouse space, a petrol station with ancillary uses of 5,000 sq ft and a 2,200 sq ft drive-through.

In addition, we have invested capital expenditure to improve the existing units, by replacing substantial areas of the roof and thereby extending the lifespan of the units, signing lease renewals of up to 15 years unbroken term at higher rents.

In April 2020, we acquired Knowsley Business Park, a five-unit multi-let estate opposite Nexus (see page ● for more details).

What is the future?

We are close to agreeing terms to pre-let the petrol filling station and the drive-through, with encouraging initial marketing for the warehouse space. The potential uplift in value from the development is estimated at £2.5 million, before taking account of any ‘marriage value’ with the existing estate. We anticipate extending the WAULT on the estate and its overall value through lease renewals and regears.

Sustainability features 

  • Location served by both public and private transport
  • Lifespan of buildings extended by re-roofing
  • Lease renewal and expansion following improved insulation of noisy sub-station
  • Proposed new warehouse will be constructed in line with modern building regulations using sustainable materials, reducing energy consumption and resulting in an EPC rating of at least C
  • New development is likely to create jobs and will also include vehicle charging stations

Comment 

“A key part of our approach to value creation is to bring forward planning for unutilised land around our assets. We look forward to moving ahead with our proposals for this site over the coming months.”

Paul Makin
Investment Director, Tilstone