ASHFORD UNITS ASHFORD INDUSTRIAL ESTATE SHIELD ROAD, ASHFORD, TW15 1AU

Transcription

1 PRIME WEST LONDON REVERSIONARY FREEHOLD MULTI-LET INDUSTRIAL ESTATE ASHFORD UNITS ASHFORD INDUSTRIAL ESTATE SHIELD ROAD, ASHFORD, TW15 1AU

2 INVESTMENT SUMMARY Excellent opportunity to acquire a well let industrial estate in a prime West London location. Ashford benefits from excellent connectivity to the, M4 and M3 motorways and is in close proximity to Heathrow Airport and Cargo Centre. Established commercial location with Shield Road Industrial Estate and Mereside Park adjoining the subject property. Nearby occupiers include GEFCO Forwarding UK, DH Airfreight, ARC Coachworks and Europa Worldwide Logistics. Multi-let industrial estate comprising 10 units totalling 62,010 sq ft (5, sq m) GIA with unit sizes ranging from 4,089 sq ft to 7,838 sq ft. The estate is fully let to eight tenants providing an AWULT of 8.5 years (to expiries) and 6.4 years (to break). Current passing rent of 666,259 per annum (including top ups), reflecting a low average passing rent of per sq ft. Total site area of 2.54 acres which reflects a site density of 56%. Freehold. Asset management opportunities in the short term to drive headline rental values. We are instructed to seek offers in excess of 12,495,000 (Twelve Million, Four Hundred and Ninety Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.00% and a capital value of 201 per sq ft, assuming purchasers costs of 6.72%.

3 LOCATION Ashford is located in the Surrey Borough of Spelthorne, approximately 17 miles (27.3 km) west of Central London and 3.3 miles (5.3 km) south of Heathrow Airport. Ashford benefits from excellent connectivity to the national motorway network, being situated inside the, 4 miles (6.4 km) east of junction 13. Furthermore, the town is located 2.1 miles (3.3 km) north of junction 1 of the M3 motorway and 5.7 miles (9.1 km) south of junction 3 of the M4 motorway, providing easy access to the west and south west respectively. Ashford train station provides direct rail services to London Waterloo with a fastest journey time of approximately 38 minutes. The Heathrow Express service from nearby Terminal 4 offers a fastest journey time of 15 minutes to London Paddington. Ashford benefits from very close proximity to Heathrow, the UK s premier international airport and Heathrow Cargo Centre. Over 80 airlines fly from Heathrow direct to over 180 worldwide destinations making it the sixth busiest airport in the world. The airport handles around 70 million passengers per year and over 1.3 million tonnes of commercial cargo equating to 75% of all UK cargo freight. The Heathrow Expansion for a third runway was recommended by the Airports Commission in 2015 and has the backing of the government. In total 906 hectares (2,240 acres) of land will be required for the development and related improvements, further reducing and limiting supply of industrial stock within the local market driving demand when businesses are forced to relocate. The extra runway is due to be built to the north west of Heathrow Airport and will therefore not affect the subject property. The global connectivity and proximity to Central London has established Heathrow as a major commercial location attracting a number of global corporate brands including British Airways, Coca Cola, IBM, Marks and Spencer, Toshiba, Canon and Samsonite. SITUATION Ashford Industrial Estate is located on Shield Road (accessed from Feltham Road B377) and benefits from excellent connectivity to the, M4 and M3 motorways together with Heathrow Airport and Cargo Centre. The subject property is adjoined by Shield Road Industrial Estate to the east and Mereside Park to the west. Nearby occupiers include GEFCO Forwarding UK, DH Airfrieght, ARC Coachworks, Europa Worldwide Logistics and Gap Group. The subject estate sits within an established commercial area with additional industrial stock to the north along Challenge Road where occupiers include S-Logibis UK, Rhenus Logistics, Keltbray and Concordia International. Slough Windsor M3 13 B376 Wraysbury Reservoir M4 Egham Woking A30 THE CAUSEWAY THORPE ROAD WRAYSBURY RD A4 A3044 Chertsey HEATHROW AIRPORT Weybridge Hayes M3 M4 A312 A312 ASHFORD INDUSTRIAL ESTATE A3 STAINES BYPASS CHERTSEY LANE A30 LALEHAM ROAD King George IV Reservoir LONDON RD Walton-on-Thames KINGSTON ROAD Cobham A3044 A30 4 STANWELL MOOR ROAD WORPLE ROAD A316 A3 Southall Hounslow Staines Reservoir M4 Twickenham Leatherhead B378 A4 TOW N R OAD STAINES BYPASS A3 A243 A406 A307 Richmond A40 New Malden Surbiton A24 A240 Epsom A3 A306 A24 A205 A240 A30 LONDON ROAD A30 KINGSTON ROAD SOUTHERN PERIMETER ROAD ASHFORD ROAD BEDFONT ROAD B378 STANWELL RD FORDBRIDGE RO AD CHURCH RD Queen Mary Reservoir A217 A217 Sutton HEATHROW AIRPORT A214 STANWELL RD CLOCKHOUSE LANE SCHOOL ROAD A501 Mitcham A3205 Coulsdon A23 LONDON A3212 A232 FELTHAM HILL ROAD A23 A23 KINGSTON ROAD A23 A30 GREAT SOUTH-WEST RD BE DFONT ROAD FELTHAM R OAD HATTON ROAD STAINES ROAD ASHFORD INDUSTRIAL ESTATE SHIELD RD CHAL LENGE ROAD CHERTSEY ROAD PRIME WEST LONDON REVERSIONARY FREEHOLD MULTI-LET INDUSTRIAL ESTATE

4 Heathrow Airport Mereside Park SUBJECT PROPERTY CHALLENGE RD Shield Road Industrial Estate SHIELD ROAD ASHFORD ROAD FELTHAM ROAD

5 DESCRIPTION Ashford Industrial Estate comprises 10 industrial units arranged as two back-to-back terraces and one solus unit. The estate provides a total GIA of 62,010 sq ft (5, sq m), with individual unit sizes ranging from 4,089 sq ft to 7,838 sq ft. All units are of steel portal frame construction with part brick/part steel clad elevations and pitched roofs. The units benefit from a clear internal eaves height ranging between 4.44 metres and 6.5 metres, level access loading doors, integral office accommodation (excluding Unit 26) and dedicated car parking / loading yards at the front. There are two entrances to the estate serving each terrace. The western entrance is shared with Shield Road Industrial Estate. Units 18, 22, 23, 24 and 25 have recently been refurbished with new roller shutter doors, new windows, painted warehouse floors, new roof lights and refurbished offices. PRIME WEST LONDON REVERSIONARY FREEHOLD MULTI-LET INDUSTRIAL ESTATE

6 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides a Gross Internal Floor Area of 62,010 sq ft (5, sq m). Unit Tenant Area 17 Fallbase 7, MVH Products 6, Vaughan Fabrication Services 6, Abacus Transtex 6, Fallbase 7, Mach II Shipping 7, DH Media Solutions 6, Oliver Kay 4, Abacus Transtex 4, M Capital Investments Ltd 4, Total 62,010 5, Sq Ft Sq M SITE The property sits on a site of circa 2.54 acres (1.03 hectares) with a site cover of approximately 56%. TENURE Freehold. EPC The property has an EPC rating ranging between C (67) and D (82). Further details available upon request. VAT The property is elected for VAT and will be treated as a TOGC.

7 TENANCY The property is let to eight tenants (in accordance with the tenancy schedule below), providing a total rental income of 666,259 per annum. The AWULT (assuming the agreed Fallbase leases are completed) to expiry is 8.5 years and 6.4 years to break. The vendor will top up any outstanding rent free periods. Unit Tenant Area (Sq Ft) Lease Start Lease Expiry Next Review Break Option Term Rent Rent (psf) 1954 Act SoC Comments 17 Fallbase Ltd 7,838 25/12/12 24/12/ , Outside No Reversionary lease for 10 years (tenant s break in year 5) agreed at 86,625 pa ( psf) and 4 months rent free. 18 MHV Products Ltd 6,192 21/10/16 20/10/ , Outside No First twelve months at half rent. 19 Vaughan Fabrication Services Ltd 6,286 10/02/17 09/02/27-10/02/ , Outside No Rent deposit of 47, Abacus Transtex Ltd 6,458 02/08/13 01/08/23 02/08/20 02/08/ , Outside No Rent deposit of 32, Fallbase Ltd 7,793 25/12/12 24/12/ , Outside No 22 Mach II Shipping Ltd 7,154 14/10/14 13/10/24 14/10/ , Outside Yes Reversionary lease for 10 years (tenant s break in year 5) agreed at 86,625 pa ( psf) and 4 months rent free. Rent deposit of 26,698 repayable after 10 consecutive quarter rent payments have been made on time. 23 DH Media Solutions 6,886 01/06/17 31/05/27 01/06/22 01/06/ , Outside No 2.5 months rent free. Rent deposit of 23, Oliver Kay Ltd 4,948 10/03/15 09/03/20-10/03/18 (exercised) 5 48, Outside Yes Service charge cap at 8,000 pa, indexed to build cost inflation. Tenant has exercised March 2018 break option. 25 Abacus Transtex Ltd 4,089 02/08/13 01/08/23 02/08/20 02/08/ , Outside No Rent deposit of 23, M Capital Investments Ltd 4,366 06/03/17 05/03/27 06/03/22 06/03/ , Outside No 6.5 months rent free (initial 3 months rent free then half rent over 7 months). Rent deposit of 25, , ,259 SERVICE CHARGE The service charge budget for the period ending 31/12/2017 is estimated at 48, equating to 0.78 per sq ft. Further details available upon request. DATA ROOM There is a legal data room for the property which contains key tenancy information, service charge documentation, title documents and EPC certificates. Access can be obtained via Lewis Ellis. PRIME WEST LONDON REVERSIONARY FREEHOLD MULTI-LET INDUSTRIAL ESTATE

8 COVENANT The estate benefits from a diverse tenant mix with a number of businesses linked to the aviation industry and Heathrow Airport. A schedule of covenant information is set out below. Unit Tenant Latest Reported Financial Year Tangible Net Worth Net Current Assets (Liabilities) Dun & Bradstreet Rating Percentage of income 17 & 21 Fallbase Ltd ,434,006 2,362,723 2A1 26% 18 MHV Products Ltd ,394 (- 28,985) D3 10% 19 Vaughan Fabrication Services Ltd ,951 22,357 D2 12% 20 & 25 Abacus Transtex Ltd , ,453 B2 16% 22 Mach II Shipping Ltd , ,891 1A2 10% 23 DH Media Solutions , ,788 B2 12% 24 Oliver Kay Ltd ,850,509 20,668,736 4A1 7% 26 M Capital Investments Ltd ,000 - H2 8% INVESTMENT MARKET The UK industrial investment market continues to remain in favour amongst investors with strong demand across the board from UK Institutional Funds, overseas investors, REITs, high net worth individuals and Local Authorities. In particular, investors are drawn towards assets located in Greater London and the south east with compelling property fundamentals and a strong occupational market with very low availability rates, occupier demand and relatively low speculative development. Recent comparable transactions include: Building Town/City Date Area (Sq Ft) AWULT (Break) Price NIY CV (psf) Units A, B & C, 120 Oyster Lane West Byfleet Available 20, (6.1) 4.30m 5.00% 198 Units A-C Boundary Park, Boundary Way Hemel Hempstead Under Offer 75, (6.7) c m c. 4.30% c. 187 Units 2-6 King George Close Romford Under Offer 34, (3.5) c m c. 4.50% c. 159 Wates Way Industrial Estate Mitcham Jun , (5.5) 20.0m 3.80% 151 Phase 300, Centennial Park Elstree Apr , m 4.75% 252 Units Leyton Business Centre Leyton Mar-17 24, m 4.60% 285 Perth Trading Estate Slough Jan , m 5.10% 144 Reading Approach Reading Jan-17 81, (8.7) 13.09m 4.85% 160 Progress Industrial Park Croydon Dec-16 31, m 4.98% 258 Theale Commercial Estate Theale Nov ,631 7 (5.3) 17.9m 5.39% 128

9 PROPOSAL We are instructed to seek offers in excess of 12,495,000 (Twelve Million, Four Hundred and Ninety Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this price would reflect a net initial yield of 5.00% and a capital value of 201 per sq ft, assuming purchasers costs of 6.72%. FURTHER INFORMATION Should you require further information or wish to view the property, please contact either: Simon Lewis Tel: Mob: slewis@lewisellis.co.uk David Kos Tel: Mob: dkos@lewisellis.co.uk Fred Daeche-Marshall Tel: Mob: FDMarshall@lewisellis.co.uk Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: June 2017.