Unit 7 Delaware Drive, Tongwell, Milton Keynes, MK15 8HD

Highly Reversionary Production / Distribution Investment Opportunity
Key Features
Complete Freehold.
A prime single let industrial investment in the sought after South East of England with strong potential of rental uplift on lease expiry.
Milton Keynes is based in a strategic location lying immediately to the west of the M1, 30 miles to the north of the M25 (Junction 21) and 46 miles north of London city centre.
Unit 7 is situated on the corner of Delaware Drive, which is an established industrial location within Milton Keynes. Nearby occupiers include John Lewis, Ocado, Volkswagen, Screwfix and Mercedes Benz.
The property underwent an extensive refurbishment program in 2017.
The property comprises an industrial unit with ground and first floor offices, extending to approximately 43,460 sq ft.
The site area is approximately 2.25 acres (0.91 hectares), reflecting a low site density of 43%.
The property is let to Supreme Wheels Direct Ltd on a 10 year lease expiring 11th March 2030, with a tenant break option on 12th March 2025, which has not been exercised.
Supreme Wheels Direct Ltd was acquired by Capital British Car Auction (BCA) in 2017.
The passing rent of £360,978 per annum, which reflects a rent of £8.30 per sq ft. The lease is subject to a fixed rent review on 12th March 2025, at which point the rent will increase to £371,804 per annum, reflecting £8.55 per sq ft.
Low capital value of £109 per sq ft overall and a reversionary yield of 8.16%.
Location
50 miles north of London, 17 miles south of Northampton, and 69 miles
southeast of Birmingham.
Situation
Unit 7 is situated on the corner of Delaware Drive, on the north eastern side of Milton Keynes, about 2 miles northeast of the city centre. Delaware Drive is a well established industrial area within Milton Keynes, accessible from the A422 and approximately 1 mile from Junction 14 of the M1.
Available area
The accommodation comprises the following Gross Internal Areas:
Description sq ft sq m
Ground Floor Warehouse 32,453 3,014.98
Ground Floor Office 5,082 472.13
First Floor Office 5,136 477.15
Outbuildings 789 73.30
Total 43,460 4,037.56
Description
The property comprises a single let production/distribution facility featuring clear open plan warehousing to the ground floor level with ancillary offices situated within a self-contained site, offering approximately 43,460 sq ft (GIA) of space. Constructed in the late 1970’s/early 1980’s, the property benefits from a steel frame, quadruple pitch roof. The building underwent a significant refurbishment in 2017 with approximately £2.2m worth of capital expenditure to include a new roof, new windows, new lighting, new loading doors, new concrete floors and resurfacing of the car park and yard area. The ancillary office accommodation benefits from suspended ceilings with recessed lighting, comfort cooling and curtain wall fenestration.
The two-story internal office area is equipped with suspended ceilings, heating, lighting, and curtain wall fenestration.
Specification
• Extensively Refurbished in 2017 (Approximately £2.2m worth of capital expenditure to include a new roof, new windows, new lighting, new loading doors, new concrete floors and resurfacing of the car park and yard area)
• Min. eaves height of 5.45 rising to 7.25m at roof apex
• 45x Car parking spaces
• 2 Level access loading doors
• Site Area: 2.25 Acres
• Fitted offices
• Loading yard
Tenure
Freehold - Land Registry Title No. BM215277.
Proposal
We are instructed to seek offers in excess of £4,750,000, subject to contract and exclusive of VAT.
A freehold purchase at this level reflects an attractive Net Initial Yield of 7.13% and a 7.34% following the fixed rental uplift in March 2025 and a reversionary yield of 8.16% at lease expiry, *all assuming purchaser’s costs of 6.58%.
A purchase of this level reflects a low capital value of £109 psf overall.
Anti-Money Laundering (AML) Requirements
Interested parties will be required to provide the appropriate information to satisfy current AML regulations at the stage Heads of Terms are agreed.
Disclaimer
None of the amenities have been tested by Telsar.
Viewings
By appointment only, via joint sole agents:
TELSAR LTD
Dipesh Patel
T: 020 8075 1233 / 07906 696666
E: [e-mail]
Jack Pay
T: 020 8075 1238 / 07411 576313
E: [e-mail]
AITCHISON RAFFETY
Mark Bunting
T: 01727 732211 / 07977 495089
E: [e-mail]
Connor Harrington
T: 01727 732210 / 07811 804967
E: [e-mail]