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Well-Let Industrial Investment Premises Email Property Details mail_outline

3K's Engineering , Morfa Foundry, Burry Road, Machynys, Llanelli, SA15 2DN

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Investment Summary

The property comprises a large Industrial Premises let to a quality Tenant , offering a gross initial yield of 5.88%. Secured on established engineering premises, with longer term redevelopment potential. Annual Income £100,000 pax with 9.5 years unexpired term.

  • RPI-linked Upwards Only Review
  • £100,000 Annual Income
  • 5.88% Gross Initial Yield
  • Long-Term Redevelopment Potential
  • 9.5 years Unexpired Term
  • £44.50 psf Capital Value
Property Type Investment
Tenure For Sale
Status Available
Price £1.7m (5.88% GIY)
Size38,195 Sq Ft (3,548 Sq M)

Location

Situated in the SW Wales Coastal town of Llanelli in a former established Industrial locality which has been transformed in recent years into a modern environment with a mix of high end residential accommodation, golf course, business space and retail facilities.

Direct access is provided on to the new Coastal bypass road linking the property to J48 of the M4 motorway.

The quality of the location is indicated by the fact the the Council's Pentre Awel Medical / Leisure Scheme immediately abuts the property.

3K's Engineering , Morfa Foundry, Burry Road, Machynys, Llanelli, SA15 2DN

Covenant Info

The Tenant & Parent Company

3Ks Engineering was established in 1969 in Llanelli, South Wales. 3K Engineering offers a one stop shop for Large Fabrication & Heavy Machining service and is one of the largest companies offering this invaluable dual role to remain in the UK.

The company's customers are largely centred around the Oil & Gas market sectors and can provide a solution to Subsea, Offshore and Back Deck requirements.

3Ks are a wholly owned subsidiary of MBH Corporation PLC, who reported a turnover in excess of £60m for the last financial year, with a gross profit of £12.6m.

Further information on the covenant strength is included within the Technical Pack.

Accommodation

Accommodation

The premises provides 38,195 sq ft, measured on an GIA (Gross Internal Area) basis.

Unit

sq ft sq m
Machine Shop 1   668.34
Workshop   36.49
Ground Floor Stores   60.66
FF Staff Facilities   171.32
Stock Room   42.55
Fabrication Shop 1   865.92
Machine Shop 2   771.44
Fabrication Shop 2   732.21
Offices   199.45
Total 38,195 3,548.38

The accommodation onsite is provided in 4 main buildings, including an office block. The industrial space is a mix of fabrication shops, machine shops, storage and other ancillary space. The production areas all have high headrooms ranging form 8.4m to 12.4m and are provided with travelling gantry facilities.

Prospective purchasers are advised to rely on their own internal inspection.

Tenure / Terms

Tenure

The property is to be sold on a freehold basis subject to the occupational tenancy.

The property is let to 3K's Engineering Company Ltd for a term of 10 years from 26 February 2021, at a rent of £100,000 per annum.

3Ks Engineering Company Ltd are a wholly owned subsidiary of MBH Corporation PLC.

The lease is drawn on Full Repairing & Insuring Terms, which are NOT limited by a schedule of condition.

The lease is outside of the security of tenure provisions within the 1954 L&T Act.

There is an RPI-linked upwards only rent review provision upon expiry of the 5th year of the term.

A copy of the lease is available in the technical pack.

Terms

Freehold sale - £1,700,000 excl.

Further Information

Technical Pack

Further detailed information is contained within the technical pack which can be made available to interested parties upon formal expression of interest.

Planning

We understand that the premises benefits from B1/B2/B8 planning consent for its existing use. We would encourage interested parties to make their own enquiries with the local planning authority in this regard.

Business Rates

The property has a current rateable value of £34,000, click link below to view:

Valuation Office Rateable Value Assessment

EPC

An EPC has been commissioned and will be made available within the technical pack.

VAT & Legal Costs

All prices, premiums and rents are quoted exclusive of VAT. Each party is responsible for their own legal costs incurred in any transaction.

Viewing & Further information

For further information, or if you would like to arrange a viewing, please contact BP2 as sole selling agents.

image of Roger Poolman FRICS

Enquire Now

Roger Poolman FRICS

07775 037782

image of David Blyth MRICS

Enquire Now

David Blyth MRICS

07966 752301

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