INNER LONDON LIGHT INDUSTRIAL INVESTMENT Unit 3 Glengall Business Centre, Glengall Road, London SE15 6NF

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1 INNER LONDON LIGHT INDUSTRIAL INVESTMENT

2 2 investment summary 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 ( 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 per sq ft. Neighbouring industrial rents established at levels in excess of 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.

3 B215 3 LOCATION LOCATION DISTANCE (MILES) 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 (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. 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 A201 ELEPHANT & CASTLE A201 TOWER BRIDGE RD A2206 South Circular Road 3.4 London s West End 4.5 A2206 ST JAMES S ROAD SOUTHWARK PARK ROAD LOWER ROAD M Southwark Park UXBRIDGE HARROW SHEPHERDS BUSH EALING CHISWICK HOUNSLOW RICHMOND KINGSTON KENSINGTON WOOD GREEN WALTHAMSTOW STOKE NEWINGTON ILFORD CAMDEN TOWN STRATFORD BARKING CLERKENWELL WEST END CITY OF LONDON Central London CANARY WHARF WOOLWICH FULHAM CAMBERWELL PECKHAM PUTNEY CLAPHAM BRIXTON HORN PARK STREATHAM MITCHAM MORDEN BROMLEY CROYDON SUTTON ROMFORD WALWORTH ROAD A215 CAMBERWELL ROAD RODNEY ROAD Walworth ALBANY ROAD B217 THURLOW STREET B217 A2 PROPOSED NEW STATION ALBANY ROAD Burgess Park B217 B203 OLD KENT ROAD GLENGALL ROAD OSSORY RD A2 GLENGALL BUSINESS CENTRE ST JAMES S ROAD PECKHAM PARK ROAD A2208 A2206 A2208 SOUTH BERMONDSEY OLD KENT ROAD OPPORTUNITY AREA A2 PROPOSED NEW STATION A2208 PROPOSED NEW STATION B207 BUS PECKHAM ROAD COMMERCIAL WAY PECKHAM HILL ST NEW CROSS ROAD Camberwell PECKHAM ROAD Peckham QUEEN S ROAD QUEEN S ROAD PECKHAM

4 4 SITUATION 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. 1 GLENGALL ROAD 2 OSSORY ROAD Subject Property 13 8

5 5 < > WEST END CITY OF LONDON M A C B A D E B UNIT 3 GLENGALL BUSINESS CENTRE C D SOUTHERN WOOD EN GL F DAMIEN HIRST G LL GA AD RO K RO A D E RETAIL PARK A2 SS O RY F H G OL DK EN O H I TR OA D L J I K SIX BRIDGES TRADING ESTATE J L & CASTLE M ELEPHANT TUBE STATION INVESTMENT SUMMARY LOCATION SITUATION AERIAL DESCRIPTION & PLANNING ACCOMMODATION & TENURE TENANCY & SERVICE CHARGE COVENANT INFORMATION MARKET COMMENTARIES EPC, VAT & PROPOSAL FURTHER INFORMATION

6 6 DESCRIPTION PLANNING 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. 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 current permitted use of the property falls within Classes B1(c) or B8 of the Town and Country Planning (Use Classes) Order 2005.

7 7 ACCOMMODATION 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 ( sq m). TENURE The property is held Freehold. DESCRIPTION SQFT SQM Ground Floor Warehouse 3, First Floor Offices 3, Total Area (GIA) 6, 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.

8 8 TENANCY The property is let on fully repairing and insuring terms for a period of 10 years from 12th June 2009 expiring on 11th June The current passing rent of 93,000 per annum represents a low rent of per sq ft. Service Charge 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. COVENANT INFORMATION (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 ,453,000 2,599,000 ( 954,000) 31st December ,767,000 4,383,000 ( 9,189,000) 31st December ,422,000 ( 770,000) ( 8,740,000) Full details of the service charge are available upon request. FLOOD REPORT Capita undertook a flood risk assessment in October 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.

9 9 OCCUPATIONAL MARKET COMMENTARY 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 imbalance. The combined result of this has seen a continued increase in headline rental levels coupled with a reduction in incentive packages. Following is a list of recent comparable leasing transactions highlighting this: PROPERTY DATE SIZE LEASE RENT (sq ft) (Expiry/Break) (psf) Unit 12, Deptford Trading Estate, SE8 Quoting 4,515 - q Unit 13, Ellerslie Square Industrial Estate, Brixton, SW2 Under Offer 18, /5.0 c Unit C4, Six Bridges Trading Estate, Southwark, SE1 Sep-17 5, / , Ruby Street, Southwark, SE15 Aug-17 24, / Units 60-62, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 12, / Units 70-72, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 5, / INVESTMENT MARKET COMMENTARY 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: 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, % 29,109 Go Carting for Fun Ltd 19.00/ Unit A, Link 20, Bellingham Way, Aylesford Jun-17 2,475, % 24,343 CSC Computer Sciences Ltd 9.00/ Units 1-2 Brent Terrace, Staples Corner, NW2 dec-16 4,600, % 25,834 Clockwork Removals Ltd Unit 6 Glengall Business Centre, Peckham, SE15 nov-16 1,475,000-7,746 Owner occupier McNicol Drive, Park Royal, NW10 aug-16 5,500, % 23,938 Binghams Ltd Unit G, Hubert Road, Brentwood, CM14 Jan-16 5,850, % 48,362 Macarthys Laboratories Ltd 15.10/ Ellis Road, Mitcham, CR4 Jan-16 4,940, % 32,586 Hovis Ltd

10 10 EPC Proposal FURTHER INFORMATION 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. 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. Should you require further information or would like to arrange a viewing, please contact: George Freeman: george.freeman@claystreet.co.uk Rob Atkins: rob.atkins@claystreet.co.uk Chris Dickin: chris.dickin@claystreet.co.uk Telephone: DATAROOM: Additional information to support the sale can be found in the secure dataroom hosted at Access details can be provided upon request. 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: november 2017