Well Located High Yielding South East Industrial Investment Unit 1, 106 Hawley Lane Farnborough GU14 8JE
Executive Summary MAIDENHEAD M4 SLOUGH Farnborough is located in the heart of the Blackwater Valley in the County of Hampshire in south east England. It is strategically located HEATHROW 12 Located in Farnborough 25 miles south west of central London 4 M3 BASINGSTOKE KINGSTON UPON THAMES M25 3 Situated in Hawley Lane a wellestablished trade and industrial location with excellent access to Junction 4 and 4a SALISBURY of the M3 motorway LONDON READING MARLBOROUGH NEWBURY Location M25 SWINDON WOKING 25 miles south west of London, and the town benefits from excellent CROYDON M3 motorway, providing quick access to London and Southampton FARNBOROUGH SEVENOAKS and Junction 12 of the M25, located 15 miles to the north east. GUILDFORD ANDOVER FARNHAM REIGATE Major nearby towns and cities in the South East include Reading (13.5 M23 GODALMING A31 M3 DORKING A3 miles) northwest along the A33 and Southampton (45 miles) southwest GATWICK CRAWLEY EAST GRINSTEAD WINCHESTER Self-contained industrial unit totalling 28,373 sq ft GIA via the M3 and A322, Farnham (7 miles) to the south and accessed via the, Guildford (9.6 miles) to the east via the and A31 and UCKFIELD SOUTHAMPTON SOUTHAMPTON Basingstoke (14.6 miles) accessed to the south on the M3. WATERLOOVILLE M27 HAVANT CHICHESTER Site of 1.39 acres with a low site coverage of 37.15% Freehold A26 Fully let to Xylem Water Solutions UK Ltd on a term to expire 22 May 2020 at a passing rent of 264,095 pax (which includes an additional rent of 16,320 pa) on the M3. Other neighbouring towns include Camberley (1.6 miles) to the north HORSHAM PETERSFIELD road communications being served by both Junctions 4 and 4a of the 10 WORTHING PORTSMOUTH BRIGHTON These strong communications provide an excellent base for industrial and logistics occupiers who benefit from the following journey times:m3 (Junction 4) 1.5 miles (4 minutes) Camberley 4 miles (9 minutes) M25 (Junction 12) 13 miles (19 minutes) Heathrow Airport 23 miles (34 minutes) Central London 36 miles (1 hour 15 minutes) Gatwick Airport 43 miles (45 minutes) Southampton (port) 41 miles (51 minutes) Farnborough Mainline Station and Frimley Rail Station are located 0.5 Secure income from tenant with a 4A1 D&B rating and tangible net worth of 19,240,000 miles and 1.5 miles away respectively, with the latter offering regular Future opportunity to refurbish, extend, reclad and create smaller units to drive rental value should the tenant vacate Farnborough Airshow and charters smaller private flights. The closest trains direct to London Waterloo with a journey time of approximately 35 minutes. Farnborough has an airport which annually holds the prestigious passenger airport is Heathrow, accessed via the M3 and M25, 30 miles towards the northeast which is due for further expansion with the recent announcement for the construction of the Third Runway, or Gatwick 35 miles to the east accessed by M3, M25 and M23 respectively. We are instructed to seek offers in excess of 3,100,000 which reflects a net initial yield of 8.00% and capital value of 109 per sq ft, based upon purchaser s costs of 6.46%. Major occupiers in the town include: SGE Oil and Gas, BAE Systems, BMW UK, Lockheed Martin UK Ltd, QinetiQ Holdings Ltd, Sodexo Defence Services, Zurich Insurance Company and Amamark (Farnborough) Ltd. Unit 1, 106 Hawley Lane Farnborough GU14 2
BENTALLS LOK N STORE YORKTOWN BUSINESS PARK < JUNCTION 4A & SOUTHAMPTON M3 MOTORWAY JUNCTION 4 TRADE COUNTER UNITS HA Y WLE LAN LONDON & M25 > E FRIMLEY BUSINESS PARK EVOLUTION PARK FA ORO RNB UGH ROAD ALBANY PARK FRIMLEY TRAIN STATION A325 A33 1 BLACKWATER RETAIL PARK Unit 1, 106 Hawley Lane Farnborough GU14 3
Situation The property is situated less than 1 mile south of Junction 4 of the M3, on Hawley Lane which runs from the A325 to the south and the A30 to the north. Hawley Lane is accessed off the A325 at the roundabout opposite Blackwater Retail Park and the property is a further 650m on the eastern side of the road. The property is directly adjacent to the Evolution Park development constructed by Chancerygate which totals 73,700 sq ft of brand new logistics/trade counter accommodation which further enhances the micro location. Occupiers in the immediate location are Lok n Store, Formula One Autocentres, Screwfix, The Saville Group and Cane Adams. Frimley Business Park is located a short distance to the north east BEDFORD and occupiers include Hyster Yale Group, Novartis, Vysionics, Boeing, Genesys, Nagra UK, Handelsbanken and Silverbean Coffee. Description The property has recently been self-contained and comprises a detached industrial building providing warehouse accommodation to the rear with an intergrated office two storey office block to the front, totalling 28,373 sq ft GIA. The unit is constructed of a steel portal frame with a combination of profiled metal and cement sheets on the roof and pre case concrete cladding panels to the elevation. The roof was overclad in c.2005. The industrial space has two roller shutter doors to the southern elevation with 10% roof lights and gas blower heaters. There is a large yard area to the front of the building which is secured by perimeter fencing. The offices provide open plan accommodation and benefit from air conditioning, suspended ceilings, raised floors and Cat 2 lighting. Site The property occupies a site of 1.39 acres (0.56 ha) and has a low site coverage of 37%. The occupier and those authorised by it in common with the Landlord and other persons having the right to pass on foot only over and along the access way shown cross hatched on the Plan. xxxxxxxxxxxxxxxxxxxxx Works N < LONDON > HAW LEY ROAD FRIMLEY ROAD M3 / JUNCTION 4 For identification purposes only < SOUTHAMPTON HAWLEY LANE UNIT 1 106 HAWLEY LANE FARNBOROUGH ROAD A325 FRIMLEY A325 Unit 1, 106 Hawley Lane Farnborough GU14 4
Accommodation We have been provided with the areas by the vendor and understand that the property has a GIA of 28,373 sq ft. Tenure Freehold. Tenancy The property is single let to Xylem Water Solutions UK Limited on assigment from Pims (Services) Ltd, by way of a 15 year lease which expires on 22 May 2020. There is a Schedule of Condition attached to the lease. The passing rent is 247,775 pax as well as an additional rent of 16,320 pax for fit-out works by the landlord. As such the total passing rent is 264,095 pax. Covenant Information Xylem Water Solutions UK Limited - 00479504 www.xylemwatersolutions.com D&B rating of 4A1 representing a minimum risk of business failure and a tangible net worth of 19,240,000 Xylem Water Solutions are a water technology provider, enabling customers worldwide to transport, treat, test and efficiently use water in public utility, residential, commercial, agricultural and industrial settings. Fiscal Consolidated Fiscal Consolidated Fiscal Consolidated GBP (000 s) GBP (000 s) GBP (000 s) 31 Dec 2014 31 Dec 2013 31 Dec 2012 Sales Turnover 155,869 113,354 78,979 Profit / (Loss) Before Taxes (449) 1,691 4,532 Tangible Net Worth 19,240 18,185 7,560 Xylem Inc, the parent company of the tenant has recently acquired Sensus US Inc, a provider of advanced metering technologies to utilities, for approximately $1.7bn in August 2016, demonstrating the strength of the sector. Unit 1, 106 Hawley Lane Farnborough GU14 5
Refurbishment Potential Please see the CGI of the subject property prepared by Guarnieri Architects opposite and below for a comprehensive reclad of the building as well as moving the loading door to the front elevation in order to modernise the unit and drive the rental value towards the headline level achieved at Evolution Park in the region of 10.50 psf. Computer Generated Image Computer Generated Image Investor Rationale South east industrial investment Strong micro location with easy access to the M3 motorway Self-contained, with good main road prominence Freehold Excellent yard area Low site coverage of 37% Secure income from tenant who has been in occupation since 2005 D&B 4A1 with a tangible net worth of 19.24m Low passing rent versus prime units adjacent Potential to regear lease with existing tenant who is presently investing in the unit (further details available upon request) Redevelopment/refurbishment opportunity Building has potential to be extended and divided into smaller units Potential to sell to owner occupier VAT The Property is elected for VAT and therefore it is envisaged that the sale will be treated as a TOGC. Data room EPC The Energy Performance Asset Rating for Unit 1 is C : 71. A data room is available and for access please contact the vendor s joint agents. Proposal We are instructed to seek offers in excess of 3,100,000 subject to contract and exclusive of VAT which reflects a net initial yield of 8.00% and a capital value of 109 psf based on puchaser s costs of 6.46%. Further Information For further information and to request access to the dataroom please contact either of the joint agents: Olly Spero Peter Bellion 020 7408 4624 01483 510491 oliver.spero@cyrilleonard.co.uk peter@kingstons.net Tom FitzGerald 020 7408 4646 Kingstons tom.fitzgerald@cyrilleonard.co.uk The Annexe Saxon House Cyril Leonard 28 Castle Street 22 Gilbert Street Guildford Grosvenor Square Surrey GU1 3UW London W1K 5EJ Unit 1, 106 Hawley Lane Farnborough GU14 6
SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT Cyril Leonard or Kingstons for themselves give notice that (i) these particulars do not constitute, nor constitute any part of, an offer or a contract; (ii) all statements contained in these particulars as to these properties are made without responsibility on the part of Cyril Leonard or Kingstons (iii) none of the statements contained in these particulars as to these properties are to be relied on as statements or representations of fact; (iv) any intending purchasers or lessees must satisfy themselves by inspection or otherwise, as to the correctness of each of the statements contained in these particulars; (v) the vendors or lessors do not make or give, and neither Cyril Leonard or Kingstons nor any person in their employment has authority to make or give, any representation or warranty whatever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction. In accordance with the Estate Agents Act 1979, the Directors of Cyril Leonard or Kingstons declare an interest in the property. November 2016 Brochure by Mango 020 7060 4142