Property overview

Neos Engineering, Pedmore Road, Brierley Hill DY2 0RD

under offer

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£2,175,000
Mar 2022

Long income industrial sale & leaseback.  Detached high bay industrial building with ancillary two storey offices.

 

Dating from the 1950’s, the main building is arranged in three bays, has a steel frame and a metal truss roof, it has two storey ancillary offices on the eastern elevation. There is a separate two storey office block next to the main building which were extensively refurbished eight years ago. There are 28 car parking spaces around the site.

 

The property totals 44,807 sq ft on an overall  site of 1.91 acres.

 

The property lies in Brierley Hill just to the north of the Level Street/Hurst Lane road junction with Pedmore Road (A4036), directly to the west side of Pedmore Road near to Merry Hill Shopping Centre.  It is situated in an established longstanding industrial area bounded to the north and west by the Dudley Canal.

 

The property is to be let to Neos Engineering Ltd on a new 15 year FRI lease from completion of the sale. The rent will be £175,000 per annum (£3.90 per sqft). The rent will be reviewed 5 yearly to compounded CPI annual increases with an annual collar/cap of 1% to 3%. The lease will be subject to a Schedule of Condition.

 

Neos International Ltd will act as a guarantor to the lease.

 

Offers sought in excess of £2,175,000, a purchase at this price would reflect an initial yield of 7.50%, allowing for increased purchaser’s costs of 7.32%. Assuming CPI growth over the next 5 years of 2.75% per annum then the reversion at review in 2027 will be 8.59%.

 

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St Pauls Office Investments Retail & Retail Warehousing investments