| Property Type | Investment / Industrial / Warehouse |
| Tenure | For Sale |
| Size | 43,460 sq ft |
| Price | Offers in excess of £4,750,000 |
| Business Rates | Interested parties to contact the Milton Keynes City Council |
| Service Charge | Available on request |
| VAT | Applicable. We understand the property is elected for VAT and it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC). |
| Energy Performance Rating | This property has been graded as C (52) |
50 miles north of London, 17 miles south of Northampton, and 69 miles
southeast of Birmingham.
Road Connectivity
Adjacent to the M1 motorway with access to Junctions 13 and 14.
Close to the A5 trunk road, 1 mile west of the town.
Population
2021 Population Census: 286,000 people.
Milton Keynes City Council anticipate population growth to 410,000 people by 2050
Infrastructure and Transport
Excellent public transport with fast, regular train services to London Euston and Birmingham New Street.
Fastest train journey times: 35 minutes to London Euston, 50 minutes to Birmingham New Street.
Business Attraction
Major national and global employers are represented in the town.
Government Support: Ongoing support for significant future growth.
Fastest Growing Town: Milton Keynes is one of the fastest-growing towns in the UK.
To Motorway
A5 - 1 mile
M1(J14) - 4 miles
M1(J13) - 5 Miles
M25 (J21) - 30 Miles
To City
Northampton - 13 miles
London - 46 miles
Birmingham - 57 miles
Manchester 155 miles
To Rail
Northampton - 17 miles
London Euston - 35 miles
Birmingham New St. - 50 miles
Manchester - 95 miles
To Airport
Luton - 22 miles
Heathrow - 54 miles
Stanstead - 55 miles
Birmingham - 59 miles
Gatwick - 91 miles
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.
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.
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 |
• 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 x 2 EV charging points
• 4 level access loading doors
• Site Area: 2.25 Acres
• Fitted offices
• Loading yard
Unit 7 Delaware Drive is let to Supreme Wheels Direct Ltd on the following terms:
• A tenure full repairing & insuring lease from 12 Mar 2020 expiring 11 Mar 2030
• Passing rent of £360,978 per annum (£8.30 per sq ft)
• Tenant only break on 12 Mar 2025 with 6 months prior written notice (not exercised)
• Fixed rent review on 12th March 2025, increasing rent to £371,804 pa (£8.55 psf)
• The lease is subject to a photographic schedule of condition
• The lease is contracted inside the 1954 Landlord & Tenant Act (part II) as amended
Supreme Wheels Direct Ltd (Company No. 07257520)
Supreme Wheels is Europe’s largest alloy wheel re-engineering specialist. Their corefocus is the re-engineering of alloy wheels for the automotive industry, a process that takes damaged wheels and returns them back to a high-quality finish.
Following the acquisition of Supreme Wheels Direct in 2017 by British Car Auctions (BCA), the purchase has allowed BCA and Supreme to work closely together to increase efficiencies between their operations and to service the growing demand for the refurbishment of alloy wheels, both for vehicles processed through BCA’s Services division and for vehicles handled through BCA’s remarketing centres nationwide.
Supreme Wheels Milton Keynes is adjacent to the existing 27,000 square feet operation and together they form the largest alloy wheel re-engineering facility in Europe, with a state-of-the-art production process utilising 12 specialist Haas lathes. Combined the facilities are capable of producing up to 500,000 wheels a year.
Supreme Wheels Direct Limited was incorporated in May 2010 and has a Experian Score of 66 (below average risk). Their parent company is BCA Trading Ltd (Company No. 02340242) with an Experian score of 99 (very low risk).
Milton Keynes is a well-established industrial / logistics location, located immediately to the west of the M1 and approximately equidistant between Birmingham and London. The logistics market has grown significantly since COVID and Brexit with demand outstripping supply and leading to a significant improvement in rental levels, with the recent letting to Tesla at £13 per sq ft. Notable occupiers within the area include John Lewis, Volkswagen, Electrolux, Mercedes and Red Bull Racing.
The industrial/logistics market has continued to be the in demand sector for the past few years due to the strong occupation demand for such space and equally the uncertainties surrounding the other mainstream sectors. Whilst yields have adjusted in line with the rise in interest rates, investment demand has continued. After transaction levels dipped slightly from record breaking levels in 2022, confidence resumed in 2023 which has continued through 2024. With the recent reduction in base rates, it is generally perceived that these have now peaked and it is anticipated that they will fall going forward. Accordingly, now could be judged as the ideal time to buy, with yield compression likely over the next few years.
Freehold - Land Registry Title No. BM215277.
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.
There are no unclaimed Capital Allowances available with the property.
We understand the property is elected for VAT and it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).
By appointment only, via joint sole agents:
TELSAR LTD
Dipesh Patel
T: 020 8075 1233 / 07906 696666
E: dp@telsar.com
Jack Pay
T: 020 8075 1238 / 07411 576313
E: jp@telsar.com
AITCHISON RAFFETY
Mark Bunting
T: 01727 732211 / 07977 495089
E: mark.bunting@argroup.co.uk
Connor Harrington
T: 01727 732210 / 07811 804967
E: connor.harrington@argroup.co.uk
Interested parties will be required to provide the appropriate information to satisfy current AML regulations at the stage Heads of Terms are agreed.
None of the amenities have been tested by Telsar.
