WATERFRONT STUDIOS BUSINESS CENTRE

Transcription

1 1 1 DOCK ROAD, LONDON, E16 1AG

2 2

3 THE SHARD CITY OF LONDON NORTH GREENWICH UNDERGROUND CANARY WHARF GREENWICH PENINSULA Emerging Cultural district by Knight Dragon Developments THE O2 ARENA CANNING TOWN - UNDERGROUND STATION - DLR LONDON CITY ISLAND - BY BALLYMORE GROUP RIVER THAMES ORCHARD PLACE INDUSTRIAL ESTATE EMIRATES AIR LINE CABLE CARS ENTRANCE OFF DOCK ROAD HOOLA LONDON E16 BY STRAWBERRY THAMES WHARF THE CRYSTAL CONFRENCE CENTRE EXCEL WATERFRONT APARTMENTS NUPLEX RESINS EXCEL LONDON LONDON CITY AIRPORT

4 4 INVESTMENT SUMMARY Opportunity to acquire a 116,970 sq ft commercial business centre in the heart of the exciting and developing Royal Docks close to London City Airport. Located in an internationally recognised business and leisure district. Established business centre of 162 units offering flexible offices, light industrial and storage units. Unique property wholly constructed under the Silvertown Way in 2003 by Greater London Enterprise Properties. Let on flexible all-inclusive rents making landlord costs transparent. Flexible space offerings including 2 conference rooms rented out on daily rates and units from 150 sq ft to 3,000 sq ft. Currently producing a gross income of 1,820,501 per annum. Income risk spread over a number of occupiers, each with modest rental liabilities. Considerable active management potential with the opportunity to drive rents forward alongside the development of the Royal Docks. We are instructed to seek offers in excess of 15,442,000 (Fifteen Million Four Hundred and Forty Two Thousand Pounds) subject to contract and exclusive of VAT. This reflects a triple net initial yield of 8.00% and a reversionary yield of 10.12%, assuming purchaser s costs of 6.73%.

5 BATTERSEA 5 LOCATION & SITUATION REGENT S PARK MARYLEBONE NOHO BLOOMSBURY CLERKENWELL HOXTON BETHNAL GREEN SHOREDITCH Bethnal Green Road A1209 STEPNEY MILE END BROMLEY -BY-BOW PLAISTOW BARKING The Royal Docks is an internationally recognised business and leisure district in the London Borough of Newham, situated 1.5 miles east of Canary Wharf, 2.5 miles south of Stratford and 5.5 miles east of Central London. The property lies 2.5 miles west of the North Circular (A1020) and 11 miles west of the M25. The Greater London Authority has identified this area as being an outstanding place to live, work, play and stay. PARK MAYFAIR BELGRAVIA GREEN PARK PIMLICO SOHO ST JAMES S PARK WESTMINSTER COVENT GARDEN VAUXHALL SOUTHWARK BOROUGH LAMBETH KENNINGTON NEWINGTON ELEPHANT AND CASTLE THE CITY WALWORTH WHITECHAPEL WAPPING BERMONDSEY PECKHAM SURREY QUAYS NEW CROSS DEPFORD DOCKLANDS GREENWICH PARK GREENWICH CANNING TOWN BECKTON NORTH WOOLWICH WOOLWICH CHARLTON CAMBERWELL STOCKWELL Royal Victoria, and West Silvertown Docklands Light Railway (DLR) stations each lie within 350 metres from the property and provides services to Bank (20 minutes), Stratford International (15 minutes) and London City Airport (14 minutes). There is also direct access to the O2 Arena via the Emirates Air Line cable car which links to North Greenwich tube station offering Jubilee Line London Underground services and further access to the wider London bus network. Crossrail, when fully functioning later in 2018, will link Central London with Canning Town and Woolwich. The property lies in an excellent location which benefits from its proximity to the world famous exhibition and conference centre, ExCel London, London City Airport and Westfield Stratford City (one of the largest urban shopping centres in Europe).

6 B140 STAR LANE A124 A13 6 The area continues to benefit from mass regeneration and improving transport links such as the recently consented Silvertown Tunnel beneath the Thames which will provide further links with North Greenwich and is due to complete in The property is also less than 1.5 miles west of The Royal Albert Dock development which will create approximately 4.7 million sq ft of new commercial and residential space and to compliment this mass regeneration London s City Airport will be upgraded building a new platform, hotel, passenger terminal and car park. The Silvertown Partnership (Lendlease and Starwood Capital) are the developer behind the proposed redevelopment of the 62-acre Millennium Mills site which lies north of the Waterfront Centre fronting the Royal Docks. The proposed development will provide over 3,000 homes alongside flexible employment space. LANGDON PARK WEST INDIA QUAY HERON QUAYS POPLAR ALL SAINTS POPLAR ISLE OF DOGS A1261 CANARY WHARF CROSSHARBOUR BLACKWALL EAST INDIA A13 O2 ARENA A102 CANNING TOWN NORTH GREENWICH DOCK ROAD CANNING TOWN ROYAL VICTORIA VICTORIA DOCK ROAD WEST SILVERTOWN CUSTOM HOUSE A1020 A112 PRINCE REGENT N WOOLWICH ROAD PONTOON DOCK EXCEL LONDON R I V E R T H A M E S ROYAL ALBERT BECKTON BECKTON PARK A112 LONDON CITY AIRPORT LONDON CITY AIRPORT A The property itself lies beneath the Silvertown Way Bypass (A1011) and occupies a prominent position beside The Crystal Centre and fronting The Royal Victoria Docks. The main entrance to the business centre is off the Dock Road whilst the restaurant space is facing the waterfront. The immediate area is characterised by a mixture of residential, leisure and green space, offices and industrial premises. Nearby occupiers include The Crystal Centre by Siemens, London ExCel, Hanson, Wake Up Docklands (a water sports centre), creative arts space The Vision Centre, Nuplex Resins, Kloeckner Metals UK, The Good Hotel and a number of other leisure and retail operators.

7 7 DESCRIPTION Constructed in 2003 by Greater London Enterprise Properties, Waterfront Studios is a two storey concrete framed business centre constructed under the elevated roadway, Silvertown Way. The main reception entrance and the adjoining restaurant unit are more prominent and are not located under the flyover but have pitched sheet roofs with glazed facades. The office centre accommodation is arranged over two storeys and as the height of the overhead road decreases, the accommodation reduces to single storey space and smaller warehouse/ storage units. The newly refurbished fully manned reception area is located at ground level and the offices are arranged over a lower and an upper level. This shared entrance area incorporates a café facility, post boxes and seated breakout areas for occupiers including male/emale and disabled WC provision. There is also a conference room for 12 delegates at this level.

8 8 The office units range in size from 150 sq ft to 1,200 sq ft and are accessed through reception via stairs leading to both levels or via the passenger lift. Kitchen and further WC facilities are located on each floor. The office centre provides a standard specification of carpeted floors with painted walls, double glazed aluminium windows and central heating. Some of the units benefit from their own air conditioning. The office element and communal space have their own loading area with goods lifts. A conference room which seats 14 delegates is available within the office space, in addition to the one at reception. The warehouse units range in size from 900 to 3,200 sq ft and are accessed directly off the Dock Road with uncontrolled parking directly outside. The units have a variety of metal roller shutters and pedestrian entrances and are provided with heating and lighting as base build. The warehouse occupiers are responsible for their own utilities, they do not contribute towards the centre s service charge but contribute towards the buildings insurance. CCTV is in use throughout the site with a manned reception during office hours and a security guard in place from 5pm to 10pm on weekdays, weekends and bank holidays. The property benefits from 9 car parking spaces to the front of the property and free roadside parking directly outside the warehouse units.

9 9 ACCOMMODATION TENURE The property has been measured by Plowman Craven, and the Measured Survey will be fully assignable to a purchaser and is available on the dataroom. The property totals 116,970 sq ft over 162 units ranging in size from 156 sq ft to 3,200 sq ft. The property is held on two separate long leaseholds. Copies of the deeds and associated plans are available in the dataroom. 1 From Freeholder The Mayor and Burgesses of the London Borough of Newham for a term of 99 years from 14 August 2002 at a rent of 100,000 per annum. 2 From Freeholder the Royal Docks Management Authority for a term of 99 years from 14 August 2002 at a rent of 2,000 per annum.

10 10 TENANCY The centre is let in accordance with the tenancy schedule available in the dataroom. As at August 2018, the centre is 91% let and produces a gross annual income of 1,820,501. Allowing for the running costs of the business comprising 8.42 per sq ft per annum and the annual headrent of 102,000, the property produces a net operating income of circa 1,318,501 per annum. Rents are at a comparatively low base, with office accommodation available at passing rents in the order of per sq ft inclusive, and warehouse rents in the order of per sq ft inclusive. The tenant s agreements for the offices are all inclusive rents with the following services included: onsite management, electrical usage and lighting, central heating, water rates, waste disposal, cleaning and repair and maintenance of the common parts, grounds maintenance, buildings insurance, health and safety in the common areas, CCTV, manned security guard and patrol, electronic entry system, kitchen facilities, meet and greet visitor, post collection and distribution and courier handling. Tenants are responsible for their own telephone/media and business rates where appropriate. The tenant agreements for the light industrial/warehouse units are all inclusive bar the tenant being responsible for their own utilities/telephone and internet charges and they are exempt from service charge but contribute towards the buildings insurance and pay business rates where appropriate.

11 11 TENANT COVENANT STATUS PLANNING The income has a very good spread of risk across a number of occupiers who are predominantly small businesses, each with a modest rental liability. We have obtained accounts information for several of the tenants whose rental liabilities exceed 30,000 per annum. More information is available in the dataroom and on request. Nakhon Thai Restaurant Limited occupies the restaurant unit fronting the docks and have been trading since Five more restaurants have subsequently been launched by the restauranteur to form a chain around London and in Reading. Shareholders Funds as at 31/07/2017 stood at 23,681. Apex Engineering Services Ltd is a technical construction consultant working with clients such as Transport for London, National Rail and Thames Water. Shareholders Funds as at 30/09/2017 stood at 739,681. Yakelo Ltd distributes children s shoes worldwide and was founded in Shareholders Funds as at 31/03/2017 stood at 146,642. Waterfront Business Centre has planning for B1 use class offices and light industrial. Units F2, G4, G5, G7, G9, G10 and G12 received approval for change of use to nonresidential education and training (D1). EPC EPC ratings have been obtained on the units within the business centre and are detailed within the dataroom. VAT The property is elected for VAT. CAPITAL ALLOWANCES Our client s advisers have identified substantial unclaimed capital allowances in relation to the property. The benefit of any unclaimed capital allowances could be made available to a purchaser if reflected within the price. Please see the dataroom for further information. DATAROOM Access to the dataroom is available on request.

12 12 1 DOCK ROAD, LONDON, E16 1AG PROPOSAL We are instructed to seek offers in excess of 15,442,000 (Fifteen Million Four Hundred and Forty Two Thousand Pounds) subject to contract and exclusive of VAT. This reflects a triple net initial yield of 8.00% and a potential reversionary yield of 10.12%, assuming purchaser s costs of 6.73%. CONTACTS NEVILLE PRITCHARD T: +44 (0) M: +44 (0) Neville.Pritchard@eu.jll.com SARAH MARTIN T: +44 (0) M: +44 (0) Sarah.Martin@eu.jll.com BEN JONES T: +44 (0) M: +44 (0) Ben.Jones@eu.jll.com Crown Copyright All rights reserved. Promap licence number Jones Lang LaSalle licence number This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law Copyright Jones Lang LaSalle IP Inc August All rights reserved.