KTC Edibles Multi-Million Pound Black Country Expansion
Freehold Acquisition - Search, Negotiations and Acquisition Service
To acquire upon behalf of client and for expansion purposes freehold industrial premises of between 100,000 sq ft and 200,000 sq ft, within reasonably close proximity of the existing plant in Wednesbury.
A meeting was set up to establish property criteria required and from which it was established location, headroom, 24-hour use, and a high voltage electrical supply were paramount.
Following the initial meeting our connections were used in making approaches to both Sandwell and Walsall Local Authorities, development and investment companies, other Midlands and nationally based industrial property agents, insolvency practitioners, and major industrial companies in the region, enquiring as to the possibility of surplus accommodation. In addition, searches were made of our own registers and the Internet before a comprehensive listing of available properties was compiled for discussion with the client.
Following a further meeting inspections were arranged of a number of properties with decision then taken to concentrate on the two most likely prospects. In relation to each consideration was then given to energy performance, Land Registry title information, planning, availability of services, ground conditions, adaption costs, business rates, grant availability, and budgetary considerations.
Following measured surveys negotiations were undertaken in respect of both prospects before agreeing terms in relation to the acquisition of a much larger property, being the former Caparo site, comprising industrial premises of 267,000 sq ft on a site of 9.44 acres. Heads of terms were agreed and solicitors instructed to progress legal documentation as soon as possible.
Following a solicitor’s meeting on site, reviewing contracts, searches and other legal documentation, exchange of contracts took place 14 days following agreement of the heads of terms, and with completion taking place in July 2016 at a price of £3,350,000.
Once fully operational the facility will be used for the manufacture of food packaging as well as food processing, packaging and distribution, and a considerable number of job opportunities will be created. KTC, together with White Rose, considered other potential sites but opted for the large industrial complex at Heath Road, being close to the existing major production facility in Wednesbury, convenient for access to the motorway network and in an area with a readily available labour supply.
KTC are a global concern who supply high quality cooking oils, fats, and other produce to the food industry throughout the United Kingdom and worldwide.
Jindy Khera, the Managing Director of KTC comments:-
“We pride ourselves in offering customers a first class service and product range which has enabled sales to increase year on year, and significant growth in a competitive international marketplace. The acquisition of the Darlaston property will enable further continued expansion”.
Chris White of White Rose comments:-
“KTC are one of the Midlands major success stories and important to the region. My first knowledge of KTC was when they operated out of a 10,000 sq ft unit. They now have facilities of about 750,000 sq ft and substantial workforce. With their hands-on management style, KTC are going from strength to strength”.