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Pontrilas Packaging, Trosserch Road, J4 M4 Motorway, Trosserch Road, SA14 8DZ

For sale: £4,037,000.00|0 - 179427 Sq Ft|General Industrial, Industrial Park, Industrial


FOR SALE£4,037,000.00
SIZE0 - 179427 Sq Ft
ADDRESSPontrilas Packaging, Trosserch Road, J4 M4 Motorway, Trosserch Road, Llanelli, SA14 8DZ
TYPEGeneral Industrial, Industrial Park, Industrial
TENUREInvestment Opportunity, Under Offer
POSTED ON19th October 2020


High Yielding, Low Capital Value Reversionary, Single Let Estate, Underpinned by its Redevelopment Value - • Freehold.
• Located in Llanelli, a regionally dominant town within close proximity to Swansea and is strategically located just 1.4 miles away from Junction 48 of the M4 Motorway.
• The property comprises a industrial estate totalling 179,427 sq ft (16,669 sq m) on a large site of 16.6 acres (6.72 hectares), with a low site cover of 24.8%.
• Let to Pontrilas Packaging Limited at a low rent of £346,432 per annum (£1.93 per sq ft) which is significantly below neighbouring industrial estates with an upwards only rent review in April 2023.
• The Tenant is a leading UK wooden pallet manufacturer supplying businesses across the manufacturing and distribution sectors with in excess of 60,000 pallets produced per week.
• The Tenant provides a strong covenant with a FAME Credit Score of 99% ‘Secure’ with a growing turnover in excess of £27.8 million and pre-tax profit of £1.16 million.
• Parent company guarantee from Pontrilas Sawmills Limited with the latest financial accounts reporting a turnover in excess of £51.8 million and tangible net worth of £21.5 million.
• Long income stream with an unexpired term of 7.60 years to lease expiry. The Tenant has been on site since approximately 1997.
• The Tenant has sub-let part to Howdens Joinery at a premium rent of £4.36 per sq ft, demonstrating the attractiveness of the estate to national operators.
• The Tenant has remained operational throughout the Covid-19 restrictions, having been deemed a company of ‘strategic importance’ by the UK Government. The Tenant has capitalised on a surge in demand for wooden pallets, particularly within the supermarket and pharmaceutical sub-sectors.

Offers invited in excess of £4,037,000 (Four Million and Thirty-Seven Thousand Pounds), reflecting an attractive Net Initial Yield of 8% (assuming standard purchaser’s costs of 7.27%) and a low Capital Value of £22.50 per sq ft.

Subject to Contract & Exclusive of VAT.


Location: Pontrilas Packaging, Trosserch Road, J4 M4 Motorway, Trosserch Road, Llanelli, SA14 8DZ

Llangennech (0.6 miles)

Bynea (1.9 miles)

Pontarddulais (2.1 miles)

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