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.