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.
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 detail including the latest Annual Report of their financial position is available within the technical pack.
The premises provides the following accommodation, measured on an gia (Gross Internal Area) basis.
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 facilties.
sq ft sq m
Machine Shop 1 668.34
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
Total 38,195 3,548.38
Prospective purchasers are advised to rely on their own internal inspection.
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.
Freehold sale - £1,700,000 excl.
Further detailed information is contained within the technical pack which can be made available to interested parties upon formal expression of interest.
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.
The property has a current rateable value of £34,000, click link below to view:
Valuation Office Rateable Value Assessment
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.