INNER LONDON LIGHT INDUSTRIAL INVESTMENT · 2 Unit 3 GlenGall BUsiness Centre, 43-47 GlenGall road,...

INNER LONDON LIGHT INDUSTRIAL INVESTMENTUnit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

Unit 3 GlenGall BUsiness Centre, 43-47 GlenGall road, london se15 6nF2

· rare opportunity to acquire a prime inner london light industrial investment.

· located just 2.5 miles from the City of london and 4.5 miles from london’s West end.

· outstanding connectivity, situated just off the a2 (old Kent road), providing direct access to Central london and the M25.

· diverse Business Centre in a Zone 2 location with a varied mix of commercial occupiers.

· Modern facility providing 6,992 sq ft (649.60 sq m) of light industrial and office accommodation.

· Freehold.

· let to the strong covenant of Morrison Facilities services ltd for a further 1.5 years.

· total passing rent of £93,000 per annum, reflecting a low passing rent of £13.30 per sq ft.

· neighbouring industrial rents established at levels in excess of £18.00 per sq ft.

· offers are invited in excess of £1,460,000, subject to contract and exclusive of Vat.

· A purchase at this level would reflect a Net Initial Yield of 6.00%, after allowing for purchaser’s costs of 6.08%. This reflects a capital value figure of £209 per sq ft.

inVestMent sUMMary

UXBRIDGE

HOUNSLOW

HARROW

EALING

SHEPHERDSBUSH

WOOD GREEN

WEST END

ROMFORD

ILFORD

SUTTON

CROYDON

BROMLEYKINGSTON

STRATFORD

Central London

BRIXTONCLAPHAMPUTNEY

MORDEN

MITCHAMSTREATHAM

WOOLWICH

HORN PARK

CANARY WHARF

BARKING

FULHAM

KENSINGTON

CHISWICK

CAMDENTOWN

CLERKENWELL

STOKENEWINGTON

WALTHAMSTOW

RICHMOND

CITY OF LONDON

PECKHAMCAMBERWELL

ELEPHANT & CASTLE

QUEEN’S ROADPECKHAM

SOUTHBERMONDSEY

SOU

TH

WA

RK PARK R

OA

D

A2206

A2206LOW

ER ROAD

A2208

A22

08

ST J

AM

ES’

S R

OA

D

ST JA

MES’S R

OA

D

B20

3

ALBANY ROAD

ALBANY ROAD

PE

CK

HA

M H

ILL ST

B2

15

COMMERCIAL WAY

PE

CK

HA

M P

AR

K R

OA

D

A2

15

CA

MB

ER

WE

LL RO

AD

WA

LWO

RT

H R

OA

D

B217

B217

B217

A2206 A2208

OSSO

RY

RDG

LENG

ALL R

OA

D

THU

RLO

W STREET

RODNEY ROAD

B207 BU

SH R

OA

D

A201A201

NEW CROSS ROAD

A2

A2

OLD KENT ROAD

A2

PECKHAM ROAD

PECKHAM ROAD QUEEN’S ROAD

TOW

ER B

RIDGE RD

Walworth

Camberwell Peckham

Burgess Park

Southwark Park

GLENGALLBUSINESSCENTRE

OLD KENT ROADOPPORTUNITY AREA

PROPOSEDNEW STATION

PROPOSEDNEW STATION

PROPOSEDNEW STATION

Peckham is a densely populated south eastern suburb of central london, located within the Borough of southwark. the property lies in a mixed use area and is located just 2.5 miles (4 kms) from the City of london’s square mile financial district and 4.5 miles (7.2 kms) from the UK’s primary media and cultural centre of london’s West end.

The area benefits from excellent transport links. the a2 (old Kent road) trunk road provides access to both the City and West end to the north and the south Circular road

loCation

(a205), 3.4 miles (5.5 kms) to the south. the a2 also provides direct access to Junction 2 (darenth interchange) of the M25, some 15.2 miles (24 kms) to the east, while the london docklands area is some 3 miles (4.8 km) to the north.

Bermondsey overground railway station is approximately a mile away and provides a direct service to london Bridge (7 minutes), while Bermondsey tube station (Jubilee line) and elephant & Castle (northern and Bakerloo lines) are both within walking distance.

numerous buses pass along the old Kent road, providing frequent access to the elephant & Castle to the northwest (53, 172 and 453 routes).

the ‘old Kent road area action Plan’ is currently being promoted by southwark Council and is aimed at significantly regenerating the neighbouring area. this project will include significant infrastructure improvements, most notably two new tube stations on the Bakerloo line extension and a new overground station at new Bermondsey.

LOCATION DISTANCE (MILES)

old Kent road (a2) 0.2

Peckham 0.7

south Bermondsey rail station 1.1

Queens road Peckham rail station 1.2

elephant and Castle 1.2

Peckham rye rail station 1.3

Camberwell 1.6

Bermondsey tube station 1.6

denmark Hill rail station 2.2

City of london 2.5

south Circular road 3.4

london’s West end 4.5

M25 15.2


https://goo.gl/maps/WERJ7x4ane52


sitUationO

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13SubjectProperty

Glengall Business Centre is approached via either Glengall road to the west or ossory road to the east. the property is within a short walking distance of the a2 (old Kent road), which lies 0.2 miles (320 m) to the north.

Unit 3 is situated in the centre of the eastern terrace opposite the estate’s car park and the Glengall road entrance.

the proximity to Central london is appealing to a diverse range of tenants. nearby occupiers include newey & eyre, aBC storage, tesco, asda, Currys PC World, edmundson electrical, Plumb Center, selco Builder’s Merchants and southern Wood retail Park where traders include argos, dFs and Maplin.

WEST END CITY OF LONDON

A

BC

D E

F

G

H

I

J

K

L

UNIT 3GLENGALLBUSINESS

CENTRE

M

GLENGALL ROAD

OSSO

RY ROAD

A2 OLD KENT ROAD

A

B

C

D

E

F

G

H

I

J

K

L

SOUTHERN WOODRETAIL PARK

DAMIEN HIRST

SIX BRIDGESTRADING ESTATE

M ELEPHANT & CASTLETUBE STATION



PlanninG

the current permitted use of the property falls within Classes B1(c) or B8 of the town and Country Planning (Use Classes) order 2005.

the Glengall Business Centre was constructed in 2007 by exton estates and comprises 13 light industrial units arranged in two terraces. Unit 3 is arranged over two floors and provides ground floor warehouse accommodation with a full floor of offices above.

desCriPtion

The ground floor warehouse benefits from a roller shutter door, floor loading of 30kn/sq m, 4.4 metres (14.4 ft) clear floor to ceiling height and a small kitchen area and a disabled WC. The tenant has largely fitted out the ground floor as office accommodation.

The first floor office accommodation incorporates a raised access floor, double glazed windows, recessed lighting, gas-fired central heating and male and female WCs.


the property has been measured in accordance with the riCs Property Measurement (1st edition) and provides a total gross internal floor area of 6,992 sq ft (649.60 sq m).

aCCoMModation

DESCRIPTION SQFT SQM

Ground Floor Warehouse 3,496 324.80

First Floor Offices 3,496 324.80

Total Area (GIA) 6,992 649.60

the tenant has 2 spaces within their lease demise and reserves the right to park on 6 defined spaces on the estate car park, opposite the entrance to their unit.

the property is held Freehold.

tenUre


(Company reg: SC120550)

Morrison Facilities services specialises in providing facilities services to private businesses and central and local government bodies. the core area of the business is the repairs and maintenance of social housing. Morrison is responsible for the maintenance of more than 400,000 properties in the United Kingdom.

Morrison Facilities services ltd was purchased by Mears Group Plc in november 2012 and the company has produced the following accounts over the last three years:

ACCOuNTINg PERIOD ENDINg TuRNOvER NET ASSETS ShAREhOLDERS FuNDS

31st december 2016 £72,453,000 £2,599,000 (£954,000)

31st december 2015 £85,767,000 £4,383,000 (£9,189,000)

31st december 2014 £93,422,000 (£770,000) (£8,740,000)

the property is let on fully repairing and insuring terms for a period of 10 years from 12th June 2009 expiring on 11th June 2019. the current passing rent of £93,000 per annum represents a low rent of £13.30 per sq ft.

tenanCy CoVenant inForMation

the tenant is liable for a contribution to the general maintenance, upkeep and security of the Glengall Business Centre. the total service charge budget for the year ending the June 2018 is £54,860, which reflects approximately £0.61 per sq ft.

Full details of the service charge are available upon request.

serViCe CHarGe

Capita undertook a flood risk assessment in october 2016. the report highlighted that the wider estate represents a ‘Low’ risk of flooding.

a copy of the report is provided on the Clay street data site supporting the sale.

Flood rePort


PROPERTY DATE PRICE NIY SIZE TENANTS LEASE RENT CAP vAL (sq ft) (Expiry/Break) (psf) (psf)

Unit 18, Mitcham Industrial Estate, CR4 Aug-17 £4,250,000 5.19% 29,109 Go Carting for Fun Ltd 19.00/9.00 £8.00 £146.00

Unit A, Link 20, Bellingham Way, Aylesford Jun-17 £2,475,000 5.50% 24,343 CSC Computer Sciences Ltd 9.00/4.00 £7.02 £101.67

Units 1-2 Brent terrace, staples Corner, nW2 dec-16 £4,600,000 4.68% 25,834 Clockwork removals ltd 9.50 £8.89 £178.06

Unit 6 Glengall Business Centre, Peckham, se15 nov-16 £1,475,000 - 7,746 owner occupier - - £190.42

2 Mcnicol drive, Park royal, nW10 aug-16 £5,500,000 4.43% 23,938 Binghams ltd 6.50 £10.38 £229.76

Unit G, Hubert Road, Brentwood, CM14 Jan-16 £5,850,000 5.90% 48,362 Macarthys Laboratories Ltd 15.10/10.10 £7.55 £120.96

15 ellis road, Mitcham, Cr4 Jan-16 £4,940,000 5.40% 32,586 Hovis ltd 10.80 £8.65 £151.60

the dwindling supply of industrial accommodation coupled with robust occupational demand continues to drive the rental tone in the south east and in particular Greater london.

strong tenant demand has been from e-commerce and discount retailers who have been on the acquisition trail to satisfy increased turnover. tenants are particularly attracted to inner london manufacturing hubs to service the needs of clients based in the West end and City markets at short notice.

the continued conversion of existing industrial stock to higher value alternative uses is further intensifying the supply versus demand

demand continues to be strong for industrial assets, particularly in the london suburbs, with investors drawn to towards the compelling fundamentals of a strong occupational market with very low availability rates, strong rental growth and limited speculative development.

the industrial sector looks set to continue to deliver strong investment returns, driven by a combination of both capital growth and ongoing rental growth.

recent industrial investment transactions highlighting the strength in this sector include:

oCCUPational MarKet CoMMentary

inVestMent MarKet CoMMentary

imbalance. the combined result of this has seen a continued increase in headline rental levels coupled with a reduction in incentive packages.

PROPERTY DATE SIZE LEASE RENT (sq ft) (Expiry/Break) (psf)

Unit 12, deptford trading estate, se8 Quoting 4,515 - q.£17.00

Unit 13, Ellerslie Square Industrial Estate, Brixton, SW2 Under Offer 18,574 10.0/5.0 c.£18.60

Unit C4, Six Bridges Trading Estate, Southwark, SE1 Sep-17 5,316 10.0/5.0 £18.00

28-32, Ruby Street, Southwark, SE15 Aug-17 24,979 5.0/3.0 £16.50

Units 60-62, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 12,339 10.0/5.0 £18.00

Units 70-72, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 5,276 10.0/5.0 £18.00

Following is a list of recent comparable leasing transactions highlighting this:

IMPORTANT INFORMATION: 1. no description or information given by Clay street ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. neither Clay street ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.these particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.the photographs show only certain parts of the property at the time they were taken. any areas measurements or distances given are approximate only. 4. any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

designed and produced by diablo: www.diablodesign.co.uk november 2017


ePC

the property has an ePC rating of d (99). a full copy of the Energy Performance Certificate is available upon request.

Vat

the property is elected for Vat and therefore Vat will be payable on the purchase price. it is anticipated that the sale will be structured as a transfer of a Going Concern.

ProPosal

We are inviting offers in excess of £1,460,000 subject to contract and exclusive of Vat. a purchase at this level would reflect a Net Initial Yield of 6.00% allowing for purchaser’s costs of 6.08%.

This reflects a capital value figure of £209 per sq ft.

DATAROOM: additional information to support the sale can be found in the secure dataroom hosted at www.claystreet.co.uk

access details can be provided upon request.

should you require further information or would like to arrange a viewing, please contact:

george Freeman: [email protected]

Rob Atkins: [email protected]

Chris Dickin: [email protected]

Telephone: 0207 935 2831

FUrtHer inForMation

INNER LONDON LIGHT INDUSTRIAL INVESTMENT · 2 Unit 3 GlenGall BUsiness Centre, 43-47 GlenGall road,...

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