Steelite International, Stoke on Trent_Property for Sale

Newcastle Street, Stoke-on-Trent, Staffordshire, ST6 3RB, UK

Steelite International, Stoke on Trent

Asset Description

The property provides Steelite with their Joint HQ facility, comprising of three principle elements providing both manufacturing and distribution accommodation, extending to a total of 44,005.73 sq m (473,675 sq ft).

During Steelite’s occupation, the property has undergone various extensions to accommodate their requirements and is positioned either side of the Trent and Mersey Canal, linked by a pedestrian foot bridge. The primary access point to the Main Site is Newcastle Street, while the distribution warehouse is accessed via Station Street. The property can be subdivided into three main components:

Main Site

Extends to 34,420.54 sq m (370,501 sq ft) and provides the pottery buildings and site office facilities. This area is used as Steelite’s production facility which accommodates and utilises raw materials carrying out various processes such as clay mixing, mould making, kiln firing, product decoration, as well as housing the main office and administrative accommodation.

Dish Cell Extension

Constructed in 2016 and located to the north of the Main Site, the Dish Cell Extension comprises a steel portal frame warehouse which connects to the main pottery buildings. The unit extends to approximately 2,273.06 sq m (24,467 sq ft) and serves as the final production stage area and houses automated machinery and product storage spaces.

Distribution Warehouse

The unit was constructed in 2005 and is located on the western bank of the Trent and Mersey Canal. The property comprises a steel portal frame structure extending to 7,312.13 sq m (78,707 sq ft). This building serves as Steelite’s main distribution facility and benefits from:

Mix of brick and profile clad elevations and profile clad roof
6 dock level loading doors
7.2m eaves
Suspended high bay lighting
2 level access doors
2 storey office block

...

Investment Highlights

Steelite International’s Joint Headquarters and sole manufacturing facility
Steelite International are the world-leading manufacturer and supplier of award-winning tableware and buffet solutions, selling into over 140 countries worldwide
Stoke-on-Trent is centrally located in the UK, between Birmingham and Manchester. With a rich pottery heritage, Stoke on Trent is renowned for being the ‘World Capital of Ceramics’
Exceptional transport connectivity, the property is situated in close proximity to the A500, providing unrivalled access to J15 and J16 of the M6 motorway
The property comprises a large-scale mission critical manufacturing and distribution facility, extending to a total of 44,005.7 sq m (473,675 sq ft)
Significant 5.1 hectare (12.7 acres) site
Fully let to Steelite International Ltd on three co-terminous leases expiring in March 2046, without break, providing a highly attractive unexpired term of 22 years
All three leases provide short term reversionary potential, with February 2025 open market rent reviews
Total current rent of £1,342,775 per annum equating to a very low average rent of £2.83 per sq ft
Steelite International Ltd offers robust covenant strength, with a Dun & Bradstreet rating of 5A2 representing a lower than average risk of business failure. Sales turnover improved significantly between 2021 and 2022, rising by more than 50% to in excess of £70m
Recent multi-million pound investment from Steelite into state of the art machinery to modernise and increase production volumes
Virtual Freehold

Proposal

We are instructed to seek offers in excess of £14,000,000 (Fourteen Million Pounds) subject to contract and exclusive of VAT for the long leasehold interest in the property.

A purchase at this level reflects an attractive net initial yield of 9.00%, and a low capital value of £29.56 per sq ft, assuming standard purchaser costs.