Ridgeway distribution centre, Ridgeway Iver SL0 9HX

Transcription

1 Ridgeway distribution centre, Ridgeway Iver SL0 9HX PRIME freehold multilet Distribution Centre On the instructions of

2 LONDON M4 J15 HEATHROW AIRPORT READING J5 M4 M25 THORNEY LANE NORTH J1 M40 1G 1F 1E 1D 1C 1B 2C 2A/B 3B 1A 5D 5C 5B 5A 3A

3 EXECUTIVE SUMMARY An unbroken, core, Western Corridor multi-let industrial/ distribution park which is excellently located for access to the M4, M25, M40, Heathrow International Airport, London markets and the national motorway network. The Property comprises of 14 warehouse/distribution units which provide a range of unit sizes from 12,338 sq ft to 48,362 sq ft and comprises a total area of 381,740 sq ft. The units all benefit from separate parking and loading areas and are arranged in a combination of self-contained units with secured yards and more traditional terraced accommodation. Freehold. Ridgeway Distribution Centre extends to 7.66 hectares (18.92 acres) providing a site cover of 46%. Ridgeway Distribution Centre is let to 9 tenants on 12 leases with a total passing rent, including rent top ups on Units 2A/B and 3B, of 3,153,646 per annum reflecting a low average rent of 8.26 per sq ft. 65% of the contracted rent is secured against covenants with Credit Safe ratings of greater than 90/100. The Estate benefits from an average weighted unexpired term to expiry, to include rent top ups of 5.90 years and 3.00 years to earliest termination. We have been instructed to seek offers in excess of 39,000,000 (Thirty Nine Million Pounds), subject to contact and exclusive of VAT which reflects an attractive Net Initial Yield of approximately 7.65%, assuming standard purchaser s costs of 5.80%. NEXT

4 2 M40 A404 MAIDENHEAD COOKHAM BURNHAM SLOUGH A355 STOKE POGES 1A RIDGEWAY DISTRIBUTION CENTRE M25 16 IVER HEATH WOOD LN SWALLOW ST 1A 1 A4007 IVER HIGH ST DENHAM UXBRIDGE A40 SOUTH RUiSLIP SOUTH HARROW GREENFORD WEMBLY A406 NORTH ACTON M1 LADBROKE GROVE 9A 9,8 A404 (M) 8,9 A308 7 DOMEY M4 WINDSOR 6 ETON A412 GRAND UNION CANAL LONDON ROAD (A4) DATCHET B470 5 HIGH ST LANGLEY LANGLEY PARK RD A4 COLNBROOK 4B M4 A3004 A408 4B 4 HAYES 3 A312 CRANWORTH M4 2 1 CHISWICK LONDON HAMMERSMITH AND FULHAM LOCATION M25 14 HEATHROW AIRPORT A30 ISLEWORTH A205 Ridgeway Distribution Centre is an established commercial area located adjacent to the M25 motorway 5.44 km (3.4 miles) north of Junction 5 of the M4 motorway at Langley and 8.53 km (5.3 A332 miles) to BRACKNELL the south of Junction 1 of the M40. Iver is located in the county of Buckinghamshire, km (18.8 miles) west of Central London, 8.86 km (5.5 miles) SUNNINGDALE A322 east of Slough and 4.83 km (3 miles) south of Uxbridge. A329 EGHAM VIRGINIA WATER STAINES-UPON- THAMES 2 A308 SUNBURY ON THAMES 1 M3 SHEPPERTON A3 A3 WINDLESHAM M3 11 ADDLESTONE A309

5 COMMUNICATIONS Ridgeway Distribution Centre benefits from excellent communication links. Road Junction 5 of the M4 motorway is located 5.44 km (3.4 miles) to the south at Langley and provides easy access to Junction 15 of the M km (1.9 miles) to the east. Junction 1 of the M40 is located 8.9 km (5.5 miles) to the north. Rail Regular direct rail services are available to Central London and the west country from Iver Railway Station 0.8 km (0.5 miles) to the south. The fastest journey time to London Paddington is approximately 25 minutes. Uxbridge Underground station is situated 6.4 km (4 miles) to the north and provides access to the Piccadilly and Metropolitan Lines. Air London Heathrow International Airport is located km (8.9 miles) to the south east via the M4 and is the UK s busiest airport. London Gatwick International Airport is London s second largest airport and is located 70 km (44 miles) to the south. Destination Distance Time M4, Junction km 10 min M25, Junction km 13 min M40, Junction km 12 min Slough 8.96 km 15 min Heathrow International 14.5 km 20 min Airport Central London 28 km 44 min Iver Railway Station will be further improved with the new Crossrail service which is scheduled for completion in 2018 and will provide access to Central London. Although not confirmed, Iver Railway Station is also the potential site for the new Heathrow Hub Railway Station which would see the station greatly expanded with twelve extra platforms and serving as the main interchange between Heathrow Airport, Crossrail and High Speed 2.

6 thorney lane north M25 grange way SITUATION B470 ridgeway Distribution Centre ridge way grand union canal COURT LANE industrial estate Ridgeway Distribution Centre is situated directly to the east of the M25 and 0.8 km (0.5 miles) to the south of Iver village. The Property is accessed off Thorney Lane North via Ridge Way, which is unadopted by the Local Authority and forms part of the Property. IVER STATION thorney lane north COURT LANE Access from Junction 5 of the M4 is off the A4 (London Road) via Sutton Lane, North Park, Thorney Lane South and Thorney Lane North. Alternatively, access can be gained from Junction 1 of the M40, via Uxbridge, to Thorney Lane North via the B470, 8.53 km (5.3 miles) to the north. LANGLEY BATHURST WALK thorney PARK GOLF GOURSE DESCRIPTION B470 SOMERSET WAY thorney lane SOUTH RICHINGS WAY M25 Ridgeway Distribution Centre comprises a substantial, unbroken industrial and warehouse park on the outskirts of Greater London and on the edge of the M25 motorway. The estate has been developed on a phased basis although the majority of the buildings were developed in 2002, with many of the earlier units having recently been refurbished or reconfigured. A4 NORTH PARK ROAD J4B M4 J15 The Property comprises of 14 units which range in size from 12,338 sq ft to 48,362 sq ft with a total area of 381,740 sq ft. The units are arranged around a one way, circular estate road with the newest element of the Property located within the estate road and the older units arranged around the edge. J5 Route to RDC Satellite navigation ref: SLO 9HX The units are all of steel portal frame construction with either brick or steel clad elevations beneath pitched roofs with varying amounts of translucent roof lights. The eaves heights vary between the units, but they range from 5 metres to 7.25 metres at their lowest points. All of the units benefit from dedicated loading and parking areas and some of them benefit from secured yards.

7 SITE The Property comprises of a total area of 7.66 hectares (18.92 acres) providing a site cover of 46%. The site is very secure with full perimeter fencing and one access point. TENURE The Property is held freehold. Ridge Way is not an adopted highway and is included within the Title of the Property. 2A/B 2C TENANCY SUMMARY Ridgeway Distribution Centre is let to 9 tenants on 12 leases. The passing rent, including rent top ups, is 3,153,646 per annum which provides a low average passing rent of 8.26 per sq ft. The average weighted unexpired term to expiry, to include rent top ups, is 5.90 years and 3.00 years to earliest termination. 3A 5D 5C 5B 5A 3B 1A 1B 1G 1C 1D 1E 1F ridge way thorney lane north

8 TENANCY SCHEDULE Unit Tenant (Company Number) Size Lease Current Income Next Sq M Sq Ft Start Date Expiry pa psf Rent (TBO) Review % of estate income Comment 1A CEVA Logistics Ltd ( ) 3, , , % The unit is underlet to TNT Post UK Ltd on a 5 year lease term to expire on at the Head rent with 3 months rent free. 1B 1 C/ D 1E 1F 1G TNT Post UK Ltd ( ) TNT Post UK Ltd ( ) Café Connections ( ) Flexpac Ltd ( ) TNT Post UK Ltd ( ) 3, , ( ) 294, % 3, , , % 2, , , % Rent deposit of 128,196 held. 2, , ( ) 4, , , % 2 A/ B VACANT (RENT GUARANTEE) 4, , , % 2C 3A Robeva Properties LLP ( ) Fraikin Ltd ( ) 2, , , , ( ) ( ) Schedule of Condition. Break notice on 3 months notice. If break is not served by , tenant to benefit from 9 months rent i.e to Lease excluded from the 1954 Act. Schedule of Condition. Rent commencement date Vendor rental top up. Lease excluded from the 1954 Act. 199, % Break notice on 6 months notice. Lease excluded from the 1954 Act. 189, % 124, % 3B VACANT (RENT GAURANTEE) 3, , , % 5A 5B 5C 5D Andrews Sykes Hire Ltd ( ) Avron Trading Ltd ( ) Avron Trading Ltd ( ) Fermod Ltd ( ) 1, , , , , , , , ( ) ( ) ( ) ( ) 111, % 89, % 89, % 89, % Totals 35, ,740 3,153, % Schedule of Condition. There is an option which is exercisable for the period of 18 months from for the Tenant to call for a reversionary lease for a further term commencing on and expiring on Recently refurbished unit. Being marketing via JLL/Vail Williams. Vendor to provide a 2 year rent, rates and service charge guarantee. Area on a Gross External Basis. Schedule of Condition. Option to purchase at 2,332,960 which expires on Half rent until Lease guaranteed by Glass UK Ltd ( ). Schedule of Condition. Rent commencement on , 62, pa (1/2 rent for 12 months). Rent increases to 124,125 pa on Vendor rental top-up. If break not exercised tenant receives a 6 months rent free from Break penalty of 74,475. Recently refurbished. Being marketing via JLL/Vail Williams. Vendor to provide a 2 year rent, rates and service charge guarantee. Schedule of Condition. Refurbished unit. Year 1 rent 55,500 per annum. Year 2 rent 83,200 per annum. Year 3 rent and onwards 111,000 per annum. Vendor rental top up. Lease to be signed imminently. Rent passing 64,585 per annum. 77,502 per annum wef and 89,773 per annum wef Vendor rental top up. 20,000 rent deposit. Lease excluded from the 1954 Act. Schedule of Condition. Rent passing 38,751 per annum. 64,585 per annum wef , 77,502 wef and 89,773 wef Vendor rental top up. 24,000 rent deposit. Lease excluded from the 1954 Act. Rent passing 44,919 per annum. 70,587 per annum wef and 89,838 per annum wef Vendor rental top up. Break notice of 6 months.

9 COVENANT INFORMATION TNT Post UK Ltd, CEVA Logistics Ltd, Andrews Sykes Hire Ltd and Fraikin Ltd all have strong covenant profiles and represent approximately 65% of the passing rent to exclude the rent top ups. We have provided basic financial information for these occupiers below:- Tenant Unit(s) Company Number Sq ft % of Sq ft % of income (excludes guarantees) Year Ending Sales Turnover (000s) Pre-Tax Profit (000s) Shareholder Funds (000s) TNT Post UK Ltd 1B, 1C/D, 1G , % 43.56% ,584 5,747 26, CEVA Logistics Ltd 1A , % 14.03% ,948 26, , Andrews Sykes Hire Ltd 5A , % 4.45% ,087 9,750 15, Fraikin Ltd 3A , % 4.97% ,483 8,436 41, Credit Rating (out of 100) * * Credit Ratings are provided by Credit Safe

10 ENERGY PERFORMANCE RATINGS Unit Band Rating Issue date 1A C B C C B D B E D F D G D A/B C C D A D B C A C B C C D D C SERVICE CHARGE The service charge budget to December 2013 is 155,500, which is just ahead of the expenditure for the year ending 2012 at 152, It is recovered by way of a floor area apportionment which is equivalent to 0.41 per sq ft. There are no service charge caps. The service charge shortfalls relating to the vacant units 2A/B and 3B, which account for 14.41% of the estate by service charge apportionment, total 22,407 per annum based on the service charge budget for The Vendor will top up the service charge shortfalls for up to two years. VAT The Property is elected for VAT and we understand the sale can be treated as a Transfer of a Going Concern (TOGC). WESTERN CORRIDOR INDUSTRIAL MARKET The Western Corridor benefits from access to the national motorway network, principally via the M25, M4 and M3 motorways, and the UK s only international hub airport at Heathrow. The Western Corridor contains the UK s highest value industrial areas being based around the London and Heathrow markets. The Heathrow industrial area, which includes Poyle, Feltham and Hounslow, together with Park Royal and Slough provide for some of Europe s largest multi-owned industrial areas. Recent statistics for the UK economy are now suggesting that a recovery is gaining momentum which is filtering through to improved business confidence and therefore increasing requirements for space and a continued erosion of availability:- Demand 2.4 million sq ft was occupied in the Western Corridor in the first half of 2013 which is 20% higher than the half year average over the past 10 years. Demand from occupiers remains robust, but the lack of new supply in a market which is still providing very little speculative development is hampering take up. As a result of a lack of supply of new space, 70% of the floor space taken up in the Western Corridor in the first half of 2013 was in Grade B space. Supply The total available supply across the Western Corridor fell by 14% over the twelve months to mid The most pronounced decline in availability was recorded against Grade B space where availability fell by 28% over the twelve months to mid Availability as at the end of the second quarter of 2013 is now at its lowest level since the recession.

11 INVESTMENT COMPARABLES Demand for core south east, multi-let industrial holdings remains extremely strong. There are relatively few unbroken holdings of this size in the south east and they come to the market very infrequently. We highlight below some of the larger Greater London assets that have transacted this year which demonstrates the strength of demand and shortage of core holdings of this size:- Property No. of Units Tenure Rent ( psf) Capital Value Capital Value ( psf) NIY % WAULT (Certain) Purchaser Date Brentford, Westcross Industrial Park TW8 9EX 30 FH n/a 75.00m n/a 6.80% 6.10 years (5.12 years) L&G Oct 13 Poyle, Colndale Industrial Estate SL3 0HQ 10 FH m % 8.30 years (6.70 years) Lothbury Aug 13 Dartford, Crossways Business Park DA2 6QB 12 FH m % 5.69 years (4.15 years) Ignis June 13 Enfield, Voltage EN3 7XQ 4 FH m % 16.7 years SWIP Mar 13 London, Grand Union Trade Park NW10 11 FH m % 3.90 years (3.30 years) SWIP Mar 13

12 PROPOSAL We have been instructed to seek offers in excess of 39,000,000 (Thirty Nine Million Pounds) subject to contract and exclusive of VAT. A purchase at this price reflects an attractive Net Initial Yield of 7.65%, after allowing for purchaser s costs of 5.80%. DATA ROOM A legal pack including Title and occupational documents are available online. Also available for review is capital allowance, service charge, EPC s and tenant covenant information. Access to the online data room is password protected and login details can be provided on request. FURTHER INFORMATION Should you require further information, or wish to arrange a viewing, please contact:mark Beaumont mark.beaumont@gva.co.uk David Bateman david.bateman@gva.co.uk GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission 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. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT Reproduced by courtesy of the Controller of HMSO Crown Copyright reserved. License No If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. NEXT