Mendlesham Industrial Estate, Norwich Road

Long Established Strategic Logistics Estate Investment For Sale

• Property specification

  • Opportunity to acquire a long-established logistics estate of approx. 50 acres comprising 19 warehouses with ancillary offices totalling approx. 81,050.30 sq m (872,417 sq ft)
  • Strategically located on the A140 with easy access to the A14, serving the Port of Felixstowe and the UK’s national road and freight network
  • The property produces a net rent of £3,052,156 per annum with a WAULT of 3.52 years to expiries and 3.44 years to breaks
  • 743,470 sq ft of the estate is let to CEVA Logistics Limited with a guarantee from CEVA Group Plc, for term of 20 years, expiring 19th May 2030. CEVA’s passing rent is £2,551,365.55 (averaging £3.43 per sq ft). This increases annually fixed at 2.5%
  • CEVA Logistics Limited and its predecessors’ occupation of the site dates back c. 50 years
  • The Lumipaper Building (128,947 sq ft) is let to Commodity Centre UK Limited for a term of 18 months from 22 September 2025 subject to tenant’s breaks on 29 September 2026 and 31 December 2026 at a rent of £589,176 per annum (£4.57 per sq ft). There is a pay-away to CEVA of 15% netting the income back to £500,799.60 per annum
  • CEVA sub-lets four units totalling 137,250 sq ft to two tenants, Trade Counter Distribution Limited (which have been in occupation of part of the site since 1988) and TruckEast Limited.
  • Freehold
  • CEVA Logistics Limited has a current D&B rating of 4A1 representing ‘lower than average risk of business failure and a tangible Net Worth of £33,648,000. Their guarantor, CEVA Group Plc has a D&B rating of 5A2
  • Commodity Centre Limited has a D&B rating of B1
  • Clear asset management potential underpinned by secure CEVA income, with routes to rental growth through the 2030 lease event.
  • Offers are sought in excess of £34,000,000 (Thirty Four Million Pounds), subject to contract and exclusive of VAT, equating to a capital value of only £38.97 per sq ft (£419.49 per sq m) overall A purchase at this level will reflect a Net Initial Yield of 8.41% with a *running yield through to expiry of the Ceva lease as follows (assuming purchaser’s costs of 6.77%).
  • New key point...