272,250 Sq Ft

Springtime Nursery

Great North Road

£400,000

Occupying very well located leasehold premises with immediate access to the north bound carriageway of the A1 immediately adjacent to services.
The site has potential for considerable expansion of growing Lilies and thus the turnover and profitability.

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

LocationThe nursery is incredibly well located just north of Letchworth Garden City and the A1M, south of Biggleswade and Sandy, with excellent lines of road communication.

SituationThe nursery is situated immediately to the west side of the A1, approximately 1 mile north of the Baldock services and immediately south of the BP services.
NB: Access is only from the North Bound carriageway and is a very sharp turn, just before the BP services

The SiteThe site is flat and set back from the road.
The site that is leased is hatched and edged red and extends to 2.53 hectares (6.522 acres).
Adjacent, the site cross hatched and edged yellow extends to 1.372 hectares (3.39 acres) and has planning consent for a further 1 hectare of glass and could be leased.
The field edged green extends to 6.422 hectares (15.869 acres) and could also be leased for further expansion of the business.

DescriptionAccess is off the A1 on a single carriageway concrete road, up to the field on the right and the smaller field with planning consent for glass on the left, alongside the glasshouse, round to the rear into a large concrete yard.
Adjacent to the yard is a long block building under pitched corrugated asbestos roof, which is divided as follows, boiler house, workshop/store, packing shed, main access to glass and feeding area and then the service area, which comprises two offices, WC and fully fitted staffroom.
Access is through this building into a 52 bay glasshouse 2.6 metres to the gutter with central wide concrete walkway.

AccomodationWe have measured the premises in accordance with the Code of Measuring Practice published by The Royal Institution of Chartered Surveyors and the floor areas are as follows measured gross internal:-
The structures are numbered on the line drawing attached.

ServicesWe are informed that the nursery is connected to mains electricity 3 phase.
Water is via an extraction license from the river at a cost of £400 per year and we are informed that there is far more water able to be extracted than is needed.
There is a large above ground metal reservoir with a capacity of a circa 20,000 litres.
Internally, there is trickle irrigation throughout the whole glasshouse.
Heating is via a 4-year-old Tenhorn 2 million Kilocalorie oil fired boiler with dual purifier which can be changed to liquid propane gas.
There are ceiling mounted hot air blowers fueled by liquid propane gas plus additional ground electric fired blow heaters.
There are 2 CO2 gas tanks and a Priva computer control providing full environmental control.

TenureThe premises are held on a lease for a term of 10 years from 2019 on a rent of £48,000 per annum exclusive, circa 7 ½ years unexpired, but subject to a landlord/tenant break clause in December 2024, which could allow the lease to expire on 31st December 2025. We understand that the landlords have confirmed that subject to the status of any new tenant, they will extend the lease.
We understand that the area cross hatched could be added to the lease for an extra £3,000 per annum.
The red hatched area is at the moment occupied by an antique vehicle restoration company, but we understand this could be added to the lease for circa £8,000 per year and where there is a 5,000 sq.ft. building and offices on that part of the site.

Rating AssessmentThe premises are unassessed for rates as a horticultural holding.

The BuisnessThe business is currently planting 24 thousand bulbs a week in trays, which were supplied to multiple retailers, websites flower packers, wholesalers and florists.
In 2020 due to lack of specialist equipment, the business generated £700,000 of turnover, using only half the glasshouse.
The new specialist equipment, which includes a box filler, cold store and larger version of the Calla and Lily grading machines that are already owned, have recently been installed, and this will allow for the whole glasshouse to be utilised for growing Lilies and the intention is to harvest from April to November each year, with the remainder coming from Italy where the business earns 10% commission, to keep the customers supplied all year round.
The nursery was only recently set up and earned around £700,000 of revenue in 2020 using half the glasshouse and was expected to increase to £1.3 million for the year ending 2022 as the glasshouse use is extended and then increasing further in the following years.
However in 2021 the owners agreed a sale with another party and they have run the nursery for the last 8 months but, due to the purchasers financial situation which has been affected by the crisis in Sri Lanka and subsequent non payment, it has not been possible to complete the sale and the owners have decided to put the business back on the market. Consequently, there are no figures available for the year ending April 2022.

The cash flow summary shown and the assumptions that have been used in producing these are as follows:
1. 100 sq.m. 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 free.
5. 10 year lease at fixed rent can extend 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 are not included in the projection but are expected to produce another £200,000 of turnover.
More detailed financial information can be provided to seriously interested parties

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

General Remarks/ Comments Appertaining to ValueSpringtime is a very interesting business with huge potential both in terms of turnover and profitability.
As part of the ongoing expansion of the business, a box filler, coldstore and larger version of the Cala and Lily grading machine that is already owned has recently been purchased and installed and so will be included in the sale.
Matthews Flower Group will introduce the purchaser to Morrisons, Asda, JZ flowers who supply Aldi,
Co-op and Sainsbury’s and to their list of wholesalers and florist customers

ProposalOffers are invited in the region of £400,000 for the trading potential of the business and the website to include all plant and machinery plus stock at valuation. Plus the leasehold interest in the glasshouse nursery assuming a new lease is agreed.
Our clients may consider a 2 stage payment option if required.

Plant and MachineryA detailed list can be made available to seriously interested parties following a formal viewing. However, the company has just paid £26,000 to have the glasshouse re-wired and installed £39,000 of new lights.
There are 44,000 plastic growing boxes, £63,000 of new drip irrigation and updated Priva software.
The 24,000 Priva computer runs the complete glasshouse, Co2 burners run by Flogas tanks, £11,000 of buckets and trollies, fully equipped canteen, offices with computers/printers, CCTV covering the complete site, boiler recently serviced and can change to gas for £12,000.
These items to include the new machinery are to all be included in the agreed asking price.
STOCK - Stock is available by separate negotiation.
STAFF - A staff list can be made available to seriously interested parties following a formal viewing.
FINANCE
In addition to our property services, we have extensive experience in raising money for individuals and businesses. We use a network of first-class lending agencies and we can arrange term loans and overdraft facilities.
We have no ties with any bank or other lender and we always act for you, not the bank.
If you want an independent, no obligation, appraisal of your requirements please call Simon Quinton Smith on 01635 262520 or 07785 732460.

Legal CostsEach party to pay their own legal costs.

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.