GLENNY DATABOOK Q3 2018

Transcription

1 GLENNY DATABOOK Q3 2 WELL PLACED PROPERTY ADVISORS I EAST LONDON I NORTH LONDON & HERTFORDSHIRE I SOUTH EAST LONDON & KENT

2 HERTFORDSHIRE 4- NORTH LONDON 6-7 EAST LONDON 8-9 NORTH LONDON & HERTS ARY Demand in the industrial sector has moved above m sq ft for the third time in four years, standing at.m sq ft at the end of Q3 2, but take up has fallen. It s interesting to note that the fi rst time we saw demand at this level across our region (2), supply was almost double the fi gure it stands at today and activity peaked at 8.m sq ft for the year SOUTH EAST LONDON & KENT AND & PRIME YIELDS EAST LONDON SOUTH EAST LONDON KENT Shortages in supply have impacted on the current years take up which is expected to fall to its lowest level since 212. In the fi rst three quarters of 2, take up across the Eastern M2 region stood at 3.3m sq ft and we estimate this to increase to.-.m sq ft by the year end. Market dynamics have had a signifi cant impact on both prime and secondary rents over the past fi ve years, with prime rents growing by 8.% p.a. on average, whilst secondary values are up by 1.9% p.a. There has been 1.m sq ft of new industrial stock completed over the past two years but occupiers are still faced with relatively little choice when looking for the right space to suit their needs. The offi ce market has been dominated by events in East London, with Stratford International Quarter and Here East attracting new occupiers, whilst ABP s development at Royal Albert Dock will transform the area when it completes in March 219. HMRC, Unicef and the V&A are the latest occupiers to take advantage of the competitive rents on offer at Stratford and more are expected to follow. John Bell Head of Business Space Agency and Investment INTRODUCTION Glenny LLP is the leading property consultancy and chartered surveying practice specialising in the region accessed by the North East and South East sections of the M2 motorway, which we service through a network of strategically located offi ces in Essex (Basildon), East London (Stratford), North London and Hertfordshire (Enfi eld & Harlow) and South East London and Kent (Bexley). The statistics in this report relate to Glenny s analysis of the property market as at 3th tember 2, based on property data obtained through our respective offi ces servicing the area delineated on the above map. GLOSSARY Market Availability Relates to the amount of built stock on the market at the period end. The availability fi gure does not include pre-let opportunities or new developments where construction is still ongoing. Prime Investment Yield The yield paid for an investment property let to an institutionally acceptable covenant for a lease term of 1- years at the current market rent. Prime Rent The rent achievable for the letting of a newly built property; typically for an industrial unit this would apply to a 2,-2, sq ft building and for an offi ce building, circa,-1, sq ft. Secondary Rent The rent typically achievable for good quality second hand offi ce space of,-1, sq ft and industrial space of 2,- 2, sq ft. Prime Capital Values The best freehold capital value payable by an owner occupier on an industrial building of circa 1, sq ft and an offi ce building of circa, sq ft.

3 INDUSTRIAL SECTOR AT A GLANCE OFFICE SECTOR AT A GLANCE INDUSTRIAL MARKET TAKE UP 6, OFFICE MARKET TAKE UP 3, Take up has slowed in the fi rst three quarters of 2 after two strong years of activity. We have recorded 3.3m sq ft of activity for the fi rst nine months of 2 which we expect to increase to m sq ft by the year end. A shortage of ready to occupy units of 1, sq ft and above has seen activity fall to its lowest level since 212, with only four lettings above this threshold. The largest transaction in the year to date has been the 2,2 sq ft and 22 acres letting at Baytree, Dagenham to Pacifi ca Studios. INDUSTRIAL MARKET, 1 yr average Take up in the Eastern M2 offi ce market is expected to fall below trend levels for the second successive year in 2, with activity of 2.1m sq ft recorded in the fi rst three quarters of the year. Whilst most of the sub markets across the Glenny region have seen a slowing in activity, the East London market, excluding Docklands has continued to attract new occupiers. The largest letting in the year to date has been the 24, sq ft pre-let to HMRC at Westfi eld Avenue, Stratford, whilst the Victoria & Albert Museum is to open a, sq ft new collection, research and learning centre at Here East. OFFICE MARKET 2, 1, 1 yr average Prime rents have continued to rise over the past 12 months, with all regions registering new record highs. South East London & Kent has seen the most signifi cant growth in prime rents over the past 12 months, appreciating by.8%, whilst North London & Herts and East London have also seen double digit growth of.3% and 12.1% respectively. Supply continues to be a major restriction to activity, with the availability rate across the Eastern M2 as a whole standing at 2.7% (7.6m sq ft), with only 1.m sq ft of ready to occupy grade A space available. INDUSTRIAL INVESTMENT MARKET TRANSACTIONS Investment transactions in the Eastern M2 industrial market in the nine months to the end of tember 2 have already exceeded previous levels of activity, with 66m of deals completed. The largest transaction over the past six months was the 36.2m purchase of Zenith Industrial Estate, Basildon by Orchard Street Investment Management, refl ecting a net initial yield of 3.8% for the reversionary investment. The year to date has been defi ned by the number of transactions, with 21 completions of 1m and above. M S N LONDON & HERTS E LONDON S E LONDON & KENT Prime offi ce rents have remained stable over the six months to the end of Q3 2, following fi ve years of strong growth. On average, prime rents across the region are 47.7% (8.1% per annum) higher than they were at the end of 213, with the emerging offi ce market at Stratford seeing the most signifi cant increase, 92.% (13.9% per annum). Secondary rents have also benefi tted from improving market conditions, rising by 64.2% (1.4% per annum) on average, with Basildon, Stratford and Enfi eld seeing rents more than double in value. OFFICE INVESTMENT MARKET TRANSACTIONS Investment in the Eastern M2 offi ce market look set to exceed 1bn for the third successive year in 2, with 87m of transactions completing in the fi rst three quarters of the year. Activity was boosted by a particularly busy second quarter, when more than 88% of the year to date total was completed. Three transactions of above 1m were concluded, the largest being the forward funding of HMRC s new Stratford headquarters at Westfi eld Avenue by Legal & General Property. Deutsche Asset Management have purchased the under construction S9 building at Stratford International Quarter for 24m. The majority of the building was let to Cancer Research and the British Council in 2. M S N LONDON & HERTS E LONDON DOCKLANDS E LONDON (OTHER) S E LONDON & KENT ,7 1, 1, INDUSTRIAL PRIME INVESTMENT YIELDS Prime industrial yields have continued to harden during 2, with average yields across the region compressing to 4.2%, a fall of 38 basis points since the start of the year. Prime investments in the North London & Herts and East London regions continue to trade at a premium relative to the regional average, standing at 4.%. The Essex and South East London & Kent markets have stabilised at 4.%, with the rental outlook remaining positive. 7.% 6.%.% 4.% 3.% 2.% 1.%.% Q3 2 OFFICE PRIME INVESTMENT YIELDS Prime offi ce yields continued to harden over the year to tember 2, although the pace of improvements has slowed. Average prime yields across the Eastern M2 market have fallen to.69%, with yields in the Docklands and East London regions now down to 4.% and.% respectively. Outside of the East London markets, both the north London & Herts and Essex regions have seen yields converge at.7%, as investors have looked to take advantage of the lower capital value per sq ft fi gures. 8.% 7.% 6.%.% 4.% 3.% 2.% 1.%.% Q3 2 AVERAGE PRIME INDUSTRIAL YIELD 1YR GILT YIELD AVERAGE PRIME OFFICE YIELD DOCKLANDS PRIME OFFICE YIELD 1YR GILT YIELD

4 INDUSTRIAL Supply fell to 1.9m sq ft at the end of Q3 2, the lowest recorded level of availability in the Essex market since 27. Grade A supply has reduced by 44% to 7,2 sq ft over the past months, whilst second hand space has edged up slightly (6%) over the same period, ending Q3 2 at 1.3m sq ft. The Essex market is the primary source of units above 1, sq ft in the Glenny region. At the end of Q3 2 there were fi ve big box units on the market, with two new grade A buildings, namely the, sq ft Logistics Centre at London Gateway and the 2,6 sq ft Thurrock 2, West Thurrock. Take up has slowed signifi cantly in 2, falling to 8,7 sq ft in the fi rst three quarters of the year. Despite the slowing in activity, Essex has registered the only take up of units above 1, sq ft in the Glenny region, with two transactions at London Gateway in the fi rst quarter of the year and the 13, sq ft letting to the Commodity Centre at the former Wolseley Building, West Horndon. INDUSTRIAL MARKET AVAILABILITY (as at tember 2) 7%, 2% >, 13% 11%,1 1, % 2,1, % 1,1 2, INDUSTRIAL MARKET REQUIREMENTS (as at tember 2) 3%, 61% 43% >, 6%,1 1, 12% 1,1 2, % 2,1, BASILDON BRAINTREE CHELMSFORD THURROCK Demand for industrial fl oor space in the Essex region has bounced back strongly in Q2/Q3 2, rising to 1.4 m sq ft, only 2% below the previous peak levels of demand at the end of 2. Larger requirements (>, sq ft) accounted for the majority of the increase in demand, with 2 requirements for units of 1, sq ft and above. TOTAL AVAILABILITY 1.9M SQ FT PERCENTAGE OF SQ FT ED INDUSTRIAL MARKET TAKE UP INDUSTRIAL MARKET AVAILABILITY INDUSTRIAL MARKET INDUSTRIAL 1, No ,2 1 yr average % 1, 9, 8, 7, 6,, %.% ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

5 OFFICES Take up in the Essex offi ce market is expected to approach trend levels of activity in 2 for the fi rst time since 2. Activity in the fi rst three quarters of the year was 26, sq ft, with 69% of take up in suites and units of, sq ft and below. The largest transaction over the six months to end tember 2 was the 11,3 sq ft letting at Kings House Brentwood to a serviced offi ce operator. Supply continues to tighten in the Essex offi ce market, with only 7,6 sq ft of accommodation available at the end of Q3 2. Grade A availability accounts for 97,2 sq ft of supply, with the 8% of stock located in Chelmsford including the largest grade A building on the market, the 44,8 sq ft Buckenham House at Coval Wells. Registered demand has weakened over the past 12 months, with total requirements standing at 382,6 sq ft, down from 3, sq ft at the end of 2. Whilst most sectors of the market have seen an easing in demand, requirements for buildings of,1-1, sq ft have strengthened signifi cantly. OFFICE MARKET AVAILABILITY (as at tember 2) % 2,1, 3% 1,1 2, % %,1 1, 34%, OFFICE MARKET REQUIREMENTS (as at tember 2) 28% 2,1, 3% 1,1 2, 12% 1%, 32%,1 1, BASILDON BRAINTREE BWOOD CHELMSFORD Prime and secondary rents stabilised following 12 months of strong increases. The only market to see an upturn in rental values is Basildon, where secondary rents moved up by 3.1% to. per sq ft. TOTAL AVAILABILITY.M SQ FT PERCENTAGE OF SQ FT ED OFFICE MARKET TAKE UP OFFICE MARKET AVAILABILITY OFFICE MARKET OFFICE No. 3 1, , 1, yr average % %.% 1 2ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

6 EAST LONDON INDUSTRIAL Supply in the East London industrial market bottomed out in mid 2 and has been increasing since. Total stock on the market at the end of Q3 2 was 1.4m sq ft, with grade A supply standing at 392,4 sq ft. There is only one ready to occupy building of 1, sq ft and above, the 13,6 sq ft R&D/lab facility, I-House Dagenham. After a strong start to the year, take up in the six months to the end of tember 2 slowed, with only one transaction above, sq ft, the 71,69 sq ft letting to JSM Group at Steel Wharf, Barking. Take up in the fi rst three quarters of the year has remained below the trend rate of activity at 66,6 sq ft. Demand edged up to its highest level on record for the East London industrial market, reaching 9.m sq ft, with the most signifi cant increase noted in larger requirements which represent 64% of the total. Contrary to the overall trend in demand, requirements for small units (<, sq ft) fell by 2% from the early part of the year. INDUSTRIAL MARKET AVAILABILITY (as at tember 2) 2% >, 3% 2,1, % 11%, %,1 1, % 1,1 2, INDUSTRIAL MARKET REQUIREMENTS (as at tember 2) 64% >, 2%, 6%,1 1, 11% 1,1 2, 62% % 2,1, BARKING / DAGENHAM BECKTON / ROYALS ROMFORD CANNING TOWN.. 3 Prime rents stabilised in Canning Town, following the sharp upturn seen in the early part of the year. Over the past 12 months, rents in Canning Town have increased by 12.1%, whilst all other locations have remained stable. TOTAL AVAILABILITY 1.4M SQ FT PERCENTAGE OF SQ FT ED INDUSTRIAL MARKET TAKE UP INDUSTRIAL MARKET AVAILABILITY INDUSTRIAL MARKET INDUSTRIAL No. 1,4 1, ,2 8 3% 2, 9, 8, 7, 6, ,, yr average %.% 1. 2ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

7 EAST LONDON OFFICES The fortunes of the Docklands and East London offi ce markets continued to follow different paths, with take up in the Docklands market running signifi cantly below trend levels, whilst activity in the East London market has remained above trend over the past months. Take up in the East London market reached 7,6 sq ft in the fi rst three quarters of the year, boosted by the 24, pre-let by HMRC at Westfi eld Avenue, Stratford in the early part of the year. An additional 268, sq ft was leased in Stratford over the period, with the largest letting being to the Victoria & Albert Museum who are opening a new, sq ft collection, research and learning centre at Here East. Supply edged down for the fi rst time in two years, falling by 4.% to 3.1m sq ft at the end of Q3 2. More than three quarters of ready to occupy available space is located in Docklands, although more than 1.2m sq ft of space is currently under construction in the East London market generally, with 46, sq ft already let. OFFICE MARKET AVAILABILITY (as at tember 2) 72% >, 4%, 3%,1 1, % 8% 1,1 2, 13% 2,1, OFFICE MARKET REQUIREMENTS (as at tember 2) 34% 2,1, 24% 1,1 2, % 7%, 3%,1 1, BARKING / DAGENHAM ROYALS ROMFORD STRATFORD Prime offi ce rents have remained stable fl owing the sharp increases seen in 2/. Values have increased by 21.8% on average over the past two years, whilst secondary rents have risen by a similar level,19.1%, over the same time frame. TOTAL AVAILABILITY 3.1M SQ FT PERCENTAGE OF SQ FT ED OFFICE MARKET TAKE UP OFFICE MARKET AVAILABILITY OFFICE MARKET OFFICE No. 9 3, 1, % Other 1 yr average Docklands 1 yr average 2, 1, 1, %.% DOCKLANDS OTHER 2ND HAND GRADE A NO OF REQS (RHS) OTHER DOCKLANDS (RHS)

8 NORTH LONDON & HERTS INDUSTRIAL Supply has continued to tighten, falling to 1.1m sq ft at the end of Q3 2. Current levels of supply represent an availability rate of 1.6%, the lowest level within the Glenny region. Grade A space accounts for only 12% of total availability, standing at 132,8 sq ft. The shortage of larger units has become a particular feature across the Glenny region, with only two secondhand ready to occupy buildings in North London & Herts, namely the 4,7 sq ft One Mollison Avenue Enfi eld and the,3 sq ft Cranbourne House Potters Bar. The largest grade A ready to occupy building on the market is the 84, sq ft Unit 4 at Enfi eld Distribution Park. Take up has eased signifi cantly following the strong year in 2, with just 447, sq ft of activity recorded in the fi rst three quarters of 2. Whilst there has been a lack of larger transactions, activity in the sub 4, sq ft sector has been strong, with some record rents achieved on lettings, including Unit at Enfi eld Distribution Park, where Farmdrop leased 24,298 sq ft at 13.7 per sq ft and 3/31 Great Cambridge Industrial Estate let to WWE at. per sq ft. INDUSTRIAL MARKET AVAILABILITY (as at tember 2) 6%, 2% >, 1% 1%,1 1, 21% 2,1, 11% 1,1 2, INDUSTRIAL MARKET REQUIREMENTS (as at tember 2) 66% >, 2%, %,1 1, 62% 1% 1,1 2, % 2,1, ENFIELD HARLOW HODDESDON TOTTENHAM / EDMONTON Demand bounced back strongly in Q2 and Q3, with 1.2m sq ft of requirements. Most sectors of the market saw an increase in demand, the only exception being for units of 1,1-2, sq ft, where demand was down by %. TOTAL AVAILABILITY 1.2M SQ FT PERCENTAGE OF SQ FT ED INDUSTRIAL MARKET TAKE UP INDUSTRIAL MARKET AVAILABILITY INDUSTRIAL MARKET INDUSTRIAL No. 1, yr average 6% 3, 2, 1, 1, 8, 6, % 6.1% ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

9 NORTH LONDON & HERTS OFFICES Take up in the North London & Herts offi ce market has continued to fall below trend levels in the fi rst three quarters of the year, with only, sq ft of activity recorded. Full year activity is expected to reach 2, sq ft, broadly in line with the totals recorded in 2. Several lettings of above 1, sq ft have boosted the total for the year, the largest being the 11,8 sq ft letting to Canada Life who took three fl oors at High Street Potters Bar, whilst Wates took 11,68 sq ft at the Civic Centre, Enfi eld. Following the trend of serviced offi ce operators increasing their regional presence, Regus took 1,2 sq ft at Vision 2 Innova Park Enfi eld. Supply has continued to edge upwards in the North London & Herts offi ce market, moving up to 1.2m sq ft at the end of Q3 2. Total availability is now 4% above the low point recorded in early/mid 2, due primarily to the release of space at North London Business Park, N11. There is now a total of 29 sq ft available at North London Business Park across four buildings. Rental values have remained stable across most locations in the six months to the end of Q3 2. The only exception to this was in Enfi eld, where secondary rental values moved up to 21. per sq ft, an increase of 7.%. OFFICE MARKET AVAILABILITY (as at tember 2) 34% >, 23% 2,1, % 12%, TOTAL AVAILABILITY 1.2M SQ FT 9%,1 1, 22% 1,1 2, OFFICE MARKET REQUIREMENTS (as at tember 2) 29% 2,1, 36% 1,1 2, 2% 7%, PERCENTAGE OF SQ FT ED 28%,1 1, ENFIELD HARLOW HODDESDON WELWYN GARDEN CITY OFFICE MARKET TAKE UP OFFICE MARKET AVAILABILITY OFFICE MARKET OFFICE No. 3 2, % 1 yr average 1,7 1, 1, % 12.% ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

10 SOUTH EAST LONDON & KENT INDUSTRIAL Supply remained stable at 3.1m sq ft in the six months to the end of q3 2, with availability dominated by second hand stock, which accounts for 88% of overall space on the market. Grade A supply remains restricted, with only 377,13 sq ft of ready to occupy space currently available, with the largest unit at the recently completed Belvedere Wharf (89,363 sq ft). There is only one building of above 1, sq ft on the market, the 139,28 sq ft unit at Springhead Enterprise Park, Gravesend, which is currently under offer. Take up has remained relatively buoyant, with activity of 1.4m sq ft recorded over the fi rst three quarters of the year. Despite this relatively strong year, there has been a lack of larger lettings, with only two transactions above, sq ft, the 71,8 sq ft letting to APP Wholesale at Hailey Road, Erith and the 96,774 sq ft freehold purchase by Bexley Co at Erith Distribution Centre. Demand for industrial and logistics fl oor space in the South East London & Kent market has rebounded strongly in the six months to the end of Q3 2, with 9.m sq ft of requirements recorded, up from.6m sq ft in the early part of the year. The most signifi cant increase in requirements has been at the larger end of the market, where demand has doubled over the six month period. INDUSTRIAL MARKET AVAILABILITY (as at tember 2) 21% >, % 2,1, % 12%, 31% 1,1 2, TOTAL AVAILABILITY 3.1M SQ FT %,1 1, INDUSTRIAL MARKET REQUIREMENTS (as at tember 2) 73% >, 2%, 3%,1 1, 9% 1,1 2, 61% PERCENTAGE OF SQ FT ED 13% 2,1, ASHFORD CHARLTON / WOOLWICH.. 26 BELVEDERE / DARTFORD MAIDSTONE INDUSTRIAL MARKET TAKE UP INDUSTRIAL MARKET AVAILABILITY INDUSTRIAL MARKET INDUSTRIAL No. 8, 1, 4 3 1,7 1, 1,2 1 yr average 7, 6,, 9, 8, 7, 6, , % % 4.% 1 2ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

11 SOUTH EAST LONDON & KENT OFFICES Take up in the South East London & Kent offi ce market is expected to fall below trend levels for the third successive year in 2, with 39, sq ft of activity recorded in the fi rst three quarters of the year. Full year activity is expected to reach, sq ft, 2% below the 1 year average for the region. Activity in the region continues to be dominated by smaller lettings, with only two deals above 2, sq ft completing, the largest of these was the 2,8 sq ft letting to Diebold Nixdorf at Radius House at Crossways Business Park, Dartford, whilst Regus took 24,7 sq ft at One Elmfi eld Park, Bromley. Supply continued to tighten, falling to 1.m sq ft at the end of Q3 2, with grade A stock accounting for only 6% of ready to occupy product. The largest grade A space is at the recently refurbished 23,69 sq ft County Gate One Maidstone, with a further 19,28 sq ft available at the new build Connect 38, Ashford. Prime offi ce rents stabilised in Q2 and Q3 but remain up over 12 months, with Maidstone and Dartford seeing growth of 12.% and 4.% respectively. Secondary rents have grown at a faster rate, increasing by 12.9% on average, with Maidstone (2%) and Bromley (12.%) seeing the most signifi cant growth. OFFICE MARKET AVAILABILITY (as at tember 2) 34% 1,1 2, % 2,1, 9% TOTAL AVAILABILITY 1.M SQ FT 33%, %,1 1, OFFICE MARKET REQUIREMENTS (as at tember 2) 22% 2,1, 3% 1,1 2, 6% 9%, PERCENTAGE OF SQ FT ED 34%,1 1, BROMLEY DARTFORD GREENWICH MAIDSTONE OFFICE MARKET TAKE UP OFFICE MARKET AVAILABILITY OFFICE MARKET OFFICE No. 8 3, % 1 yr average 2, 1, %.% ND HAND GRADE A NO OF REQS (RHS) AL (RHS)

12 GLENNY DATABOOK Q3 2 AND PRIME YIELDS KEY: CHANGES IN THE PAST 6 MONTHS PRIME OFFICE YIELDS 9.% PRIME INDUSTRIAL YIELDS 9.% PRIME OFFICE YIELDS 9.% NO CHANGE INCREASE DECREASE 8.%.7% Q3 2 8.% 4.% Q3 2 8.%.7% Q3 2 7.% HERTFORDSHIRE 1 7.% 6.%.% 7.% %.% Q3 2 4.% 3.% Q3 2 6.%.% Q3 2 The growth in prime industrial rental values slowed in the six months to Q3 2, increasing by 2.4% on average, down from 4.8% in the previous six month period. The slowdown arose because of the reduced number of locations recording growth in Q2 and Q3 2, six, compared to ten in the previous period. Secondary rental values exhibited a stronger growth pattern, with 11 of the locations seeing improvements in rents, resulting in average growth of 4.6%. Rental growth in the offi ce sector eased, with prime rents remaining stable over the six months to the end of Q3 2, whilst secondary rents edged up by 1.%. The slowing in growth in the offi ce sector follows two years of strong increases, when prime and secondary rents have risen by 8.4% p.a. and 11.% p.a respectively. NORTH LONDON EAST LONDON SOUTH EAST 3 LONDON INDUSTRIAL 3 4 KENT 6 OFFICE NORTH LONDON & HERTS KEY DEAL Flex Meadow, Harlow F&C Property Growth & Income Fund purchased the Clipper Logistics unit at Flex Meadow Harlow for 11.3m from Legal & General Property. The price paid represented a net initial yield of 4.3%. Clipper Logistics lease expires in 221 and a signifi cant reversion is expected at the next letting. EAST LONDON KEY DEAL Westfi eld Avenue, E2 Legal & General Property agreed to forward fund the new HMRC regional centre at Westfi eld Avenue Stratford for 248m following the government offi ce signing an agreement to lease in early 2. HMRC will occupy 24, sq ft of the 3, sq ft building in late 22 and have agreed a 2 year lease. The purchase price represents a net initial yield of 3.98%. HERTFORDSHIRE NORTH LONDON SOUTH EAST LONDON EAST LONDON PRIME INDUSTRIAL YIELDS 9.% 8.% 7.% 6.%.% 4.% KEY DEAL 4.% Q Q3 2 Zenith Industrial Estate, Basildon Orchard Street Investment Management purchased Zenith Industrial Estate in Basildon for 36.3m from Legal & General Property. The nine unit estate has a WAULT of 8. years, with the purchase price representing a net initial yield of 3.8% on the reversionary investment. 1 CANNING TOWN. 3 2 BECKTON BARKING / DAGENHAM / RAINHAM ROMFORD STRATFORD ROYALS BARKING / DAGENHAM / RAINHAM ROMFORD PRIME OFFICE YIELDS 9.% 8.% 7.% DOCKLANDS 4.% Q3 2 OTHER.% Q3 2 KENT 1 TOTTENHAM / EDMONTON ENFIELD % 2 ENFIELD WELWYN GARDEN CITY % 4 HODDESDON / CHESHUNT 9. HARLOW 9. 1 BRAINTREE CHELMSFORD 9. 4 BASILDON 9. THURROCK CHARLTON / WOOLWICH BELVEDERE / DARTFORD MAIDSTONE 9. 6 ASHFORD 1. 4 HODDESDON / CHESHUNT. 27 HARLOW. 3 1 BRAINTREE CHELMSFORD BWOOD BASILDON GREENWICH BROMLEY DARTFORD MAIDSTONE % EAST LONDON EAST LONDON OTHER PRIME INDUSTRIAL YIELDS 9.% 8.% 7.% 6.%.% 4.% 3.% Q3 2 DOCKLANDS 4.% Q Q3 2 PRIME OFFICE YIELDS 9.% 8.% 7.% 6.%.% Q % Q3 2 SE LONDON AND KENT PRIME INDUSTRIAL YIELDS 9.% 8.% 7.% 6.%.% 4.% Q3 2 4.% Q3 2 SOUTH EAST LONDON & KENT KEY DEAL Capacity Dartford Aberdeen Standard Investments forward purchased from Exton Estates Unit 3, which extends to 9 sq ft, for 21.m sq ft. The unit is let to Bressendon who agreed a 2 year lease in late 2, with construction expected to complete in early 219. The purchase price refl ects a net initial yield of 3.87%. WELL PLACED PROPERTY ADVISORS

13 GLENNY DATABOOK Q3 2 ARCHITECTURE Jim O Connell ASSET & PROPERTY MANAGEMENT j.oconnell@glenny.co.uk 3 Argent Court, Sylvan Way, Basildon, Essex SS 6TH BUILDING CONSULTANCY EAST LONDON Peter Higgins BUSINESS SPACE AGENCY p.higgins@glenny.co.uk COMPULSORY PURCHASE Fifth Floor, Unex Tower, Station Street, Stratford, London E 1DA NORTH LONDON & HERTS DEVELOPMENT Ivan Scott i.scott@glenny.co.uk INVESTMENT 1 Crossfi eld Chambers, Gladbeck Way, Enfi eld, Middlesex EN2 7HR LEASE ADVISORY SOUTH EAST LONDON & KENT Richard Seton-Clements PROJECT MANAGEMENT r.clements@glenny.co.uk 21 Bourne Road, Bexley, Kent DA 1LW EG EG REGENERATION & INFRASTRUCTURE DEVELOPMENT & INVESTMENT John Bell Philip Colman MOST ACTIVE AGENT RUNNER UP 2 MOST ACTIVE AGENT REGIONAL WINNER 2 RESEARCH j.bell@glenny.co.uk p.colman@glenny.co.uk GREATER LONDON INDUSTRIAL GREATER LONDON INDUSTRIAL Fifth Floor, Unex Tower, Station Street, Stratford, London E 1DA This document is for general informative purposes only. The information in it is believed to be correct, but no express or implied representation or warranty is made by Glenny LLP as to its accuracy or completeness, and the opinions in it constitute our judgement as of this date but are subject to change. Reliance should not be placed upon the information or forecasting opinions set out herein for the purpose of any particular transaction, and no responsibility or reliability, whether in negligence or otherwise, is accepted by Glenny LLP or by any of its members, offices, employees, agents or representatives for any direct, indirect consequential loss or damage which may result from any such reliance or other use thereof. All rights reserved. No part of this publication may be transmitted or reproduced in any material form by any means, electronic, recording, mechanical, further copying or otherwise, or stored in any information storage or retrieving system of any nature, without prior written permission of the copyright holder except in accordance with the provisions of the Copyright Design and Patent Act Warning: the doing of an unauthorised act in relation to a copyright work may result in both a civil claim for damages and criminal prosecution. tember 2. RESIDENTIAL DEVELOPMENT RESIDENTIAL MANAGING AGENTS STRATEGIC LAND STRATEGIC PLANNING VALUATION SERVICES OFFICE AGENCY & LEASE ADVISORY John Campbell William Martin j.campbell@glenny.co.uk w.martin@glenny.co.uk Fifth Floor, Unex Tower, Station Street, Stratford, London E 1DA RESEARCH For more information research@glenny.co.uk