272,250 Sq Ft

Great North Road

Stotfold

£950,000

The site is flat and set approximately 250 metres to the west of the A1 road. Total site area extends to 2.53 hectares (6.522 acres). To the immediate east of the glasshouse a further 1.372 hectares (3.39 acres) could be leased for approximately £3,000 per annum. This has planning consent for a further 1 hectare of glass. There is also a field located to the immediate north of the Nursery extending to 6.422 hectares (15.869 acres) which could be leased for a further expansion of the business.

The Nursery comprises a 52 bay 1970s Venlo glasshouse with gutter height 2.6 metres. The glasshouse area extending to approximately 1.683 hectares (4.18 acres). Access to the glasshouse is via a central concrete road. There are ridged concrete floors installed throughout as the glasshouse was previously used for the growing of hydroponic lettuce.

Key Features

1.   Leasehold for Sale
2.   Specialist Plant Nursery Business
3.   2.53 hectares (6.52 acres)
4.   Ancillary buildings
5.   www.bloomingbritish.co.uk website included within the sale

LocationSpringtime Nursery is located at ordnance survey grid reference TL165346. The Nursery lies to the immediate west of the Great North Road (A1) being approximately 1 mile to the north of Junction 10 where the A507 joins the A1. To the east of Junction 10 lies Baldock Services. The Nursery is situated to the north-east of Stotfold and the access road feeds directly onto the A1 road. From the A1 a shared access track leads to the glasshouse nursery, running along the north elevation of the glasshouse. On the western side there is a yard area from where access can be gained to the nursery buildings and glasshouse.

Please note access is only from the northbound carriageway, and the turning is very sharp, just before the BP Services. It is not possible to drive directly onto the southbound carriageway.

DescriptionThe site is flat and set approximately 250 metres to the west of the A1 road. Total site area extends to 2.53 hectares (6.522 acres). To the immediate east of the glasshouse a further 1.372 hectares (3.39 acres) could be leased for approximately £3,000 per annum. This has planning consent for a further 1 hectare of glass. There is also a field located to the immediate north of the Nursery extending to 6.422 hectares (15.869 acres) which could be leased for a further expansion of the business.

The Nursery comprises a 52 bay 1970s Venlo glasshouse with gutter height 2.6 metres. The glasshouse area extending to approximately 1.683 hectares (4.18 acres). Access to the glasshouse is via a central concrete road. There are ridged concrete floors installed throughout as the glasshouse was previously used for the growing of hydroponic lettuce.

Ancillary buildings:
•Boiler House - 22.5m² (242ft²). This houses a Tenhorn 2.5 pass oil fired boiler with associated equipment.
•Workshop Store – 102.0m² (1098ft²).
•Dispatch Area – 234.0m² (2519ft²)
•Access/Common Areas and Feeding Area – 130.0m² (1399ft²). This houses a Priva feeding rig for fertigation.
•Staff Area – 3.2m² (344ft²).
•Glasshouse Area – 16640m² (179113ft²) equating to approximately 4.18 acres.

ServicesThree phase mains electricity, water is via an extraction licence from the River Ivel at a cost of £400 per year. On site water storage - circular irrigation tank with capacity of approximately 20,000 litres. Internally there is a wander lead trickle irrigation system installed throughout the greenhouse. Heating is via a 4 year old Tenhorn 2 million Kilocalorie oil fired boiler with dual purifer burner which can be changed to liquid propane gas. There are a number of direct fired air heaters installed plus additional ground electric fired blow heaters. CO² gas tanks x 2. Environmental control via a Priva Integra computer.

TenureThe premises are held on a lease for a term of 10 years from 2019 on a rent of £48,000 per annum exclusive subject to a break clause as at 31st December 2025.

The Landlords have indicated that subject to status of any new tenant they would be willing to extend the existing lease. Additional land to the immediate east of the glasshouse could be leased for an additional £3,000 per annum. The land to the north of the Nursery, which is at the moment occupied by an antique vehicle restoration company, could be added to the lease for £8,000 per annum, the buildings extending to approximately 5000ft², buildings and offices on site.

Rating AssessmentHorticultural premises are exempt from rating.

Business DescriptionThe business is currently growing Oriental lilies and British Calla lilies direct from bulbs which are planted at a rate of 24,000 bulbs a week in trays filled with compost. These are then grown using Wander lead irrigation and a Priva fertigation rig to the point when cut flowers are produced. These are then harvested, graded and cut flowers supplied to both Morrisons and Flamingos on fixed price contracts. Harvesting takes place in May to November at 90 pence a stem for three buds and fours buds and 65 pence a stem for two buds.

The Nursery was set up in 2019 and generated a revenue of approximately £700,000 in 2020 using only half the greenhouse. The intention is to harvest from April to November each year with the remainder of the cut flowers coming from Italy where the business earns 10% commission, to keep continuity of supply. The Nursery is forecast to turn over £700,000 in 2020 increasing to £1.3million for the year ending 2022. Profit and loss projections are set out below:

2021 2022 2023 2024 2025 2026

Turnover £1,315,000 £1,900,000 £3,097,500 £3,097,500 £3,097,500 £2,987,500
Gross Margin 100% 100% 100% 100% 100% 100%
Operating Profit £652,000 £1,533,442 £2,640,114 £2,652,114 £2,668,242 £2,544,451
Operation Profit % 50% 80.7% 85.2% 85.6% 86.1% 85.2%

Forecasts are available upon request. The assumptions that have been used in producing these are as follows:

1.100m² of production have been taken out to allow for space for equipment.
2.No inflation is built into the model.
3.Springtime purchase of electricity is from the grid.
4.Water is free.
5.10 year lease at fixed rent can be extended to 25 years.
6.No growing in December and January.
7.Staff kept on packing tubers in pre-packs during December and January.
8.Pre-packed tubers and bulbs included in projections.

Equipment for sale includes 30 white boxes for bulb planting, wander lead irrigation system, lighting in some bays, 2 x container cold stores, canteen and office computers and equipment, 2 x grading machines, peat box filler, bulb planting at 24,000 a week, forklift is rented, sundry equipment, sprayers, hoses, grading tables, pallet movers, any feeds or chemicals, spare glass etc.

WebsiteThe website www.bloomingbritish.co.uk is also included in the sale.

General Remarks/Comments Appertaining to ValueSpringtime is a business with huge potential to both increase in terms of turnover and profitability. The owner informed us that in the 91 deliveries made to Morrisons, the business has never had anything but green notifications, never an amber or a red and apparently they are the only Morrisons flower supplier who has that record.

As part of the planned ongoing expansion of the business, the box filler, cold store and larger version of the Cala and lily grading machine has recently been purchased and installed and these will be included in the sale.

Matthews Flower Group will guarantee the contracts will continue with Morrisons Supermarket and others and using their floral consultancy company, can operate the flower sales for the Nursery for a small commission.

PriceOffers are invited for the leasehold interest in the glasshouse nursery assuming assignment of the existing lease, plus the trading potential of the business and the website to include all plant and machinery plus valuation. Offers in the region of £950,000 are invited for the leasehold interest. It may be possible to take payment in two halves, half up front and half at the start of year 2.

StockStock is available by separate negotiation.

StaffA staff list can be made available to interested parties following a formal viewing.

Legal CostsEach party to pay their own legal costs associated with the assignment of the ground lease and preparation of the sale contract.

Agent's NoteDetailed costing profit and loss statements are available for inspection by interested parties.

Confidentiality AgreementAll interested parties are expected to sign a Confidentiality Agreement before detailed information on this business is released.

ViewingStrictly by appointment through Agents.

Sheldon Bosley Knight - Contact: Tony Rowland
1-3 Merstow Green, Evesham, Worcestershire WR11 4BD.
Telephone: 01386 765700 Email: trowland@sheldonbosleyknight.co.uk

Joint Agent:
Quinton Edwards – Contact: Simon Quinton Smith
Bartholomew House, 38 London Road, Newbury, West Berkshire RG14 1JX
Telephone: 01635 551441 Email: simon@quintons.co.uk

Important NotesWe are required by HMRC to conduct anti-money laundering checks on all parties with an interest in the property and accordingly we will require forms of identification in due course.

Particulars: These Particulars do not constitute an offer or contract and should not be relied upon as being factually accurate, the photographs show only part of the property and the areas, measurements and distances given are approximately only.

A buyer or a lessee must make their own enquiries or inspections and should not solely rely on these Particulars or other statements by Sheldon Bosley Knight.

VAT: The VAT position relating to the property may change without notice.

Date of PreparationMarch 2021