Executive Summary
Executive Summary Introduction The Fern Portfolio comprises the sale of three prime, multi let industrial estates, two of which are located in the south of England and one in South West London. The key features of the portfolio are as follows: Three prime, multi-let industrial estates. A total portfolio floor area of 32,329 sq m (347,986 sq ft). Each property is held Freehold. Let to 16 tenants on 18 leases producing a total net income of 2,604,002 per annum (including vendor top ups of all rent-free periods and stepped-rent incentives). Strong income profile providing the purchaser with a WAULT of 9.4 years to expiry and 7.8 years to breaks. Potential to add value across the portfolio through lease restructuring and the letting of the vacant accommodation. Kidlington Swindon Wimbledon
Statistics Portfolio Overview Region by Income Expiry by Income Covenants by Income Property Address Tenure Floor Area (sq m) Floor Area (sq ft) Rental Income ( P.A) WAULT (to break) Units 1-12 Oxonian Park, Kidlington, Oxford OX5 1FP Freehold 11,818.02 127,208 929,040 9 yrs (6.7 yrs) Units 100 130 Faraday Park, Faraday Road, Swindon SN3 5JF Freehold 10,758.93 115,808 736,010 5.75 yrs (3 yrs) Units 1 5 Weir Road, Wimbledon SW19 8UG Freehold 9,752.04 104,970 938,952 12.9 yrs (N/A) TOTAL 32,328.99 347,986 2,604,002 9.4 yrs (7.8 yrs) South East - 64% Greater London - 36% Sub 5 years - 33% 5-10 years - 35% 10 years - 32% Minimum D&B risk of failure - 58.69% Lower than average D&B risk of failure -17.38% Higher than average D&B risk of failure - 8.16% High D&B risk of failure - 10.37% No information available - 5.40%
Further Information and Quoting Price VAT We are informed the properties have been opted to Tax and therefore it is envisaged the transaction will be conducted as a Transfer of a Going Concern, subject to applicable VAT regulations. Price We are instructed to seek offers in excess of 33,950,000 (Thirty Three Million, Nine Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, for the entire portfolio. Units 1-12 Oxonian Park Kidlington Oxford OX5 1FP Capital Allowances The benefit of all unclaimed capital allowances can be made available to the purchaser, subject to separate negotiation. Energy Performances Certificates Energy Performance Certificates have been undertaken for all properties and are available in the data room. Circle Valuation File A Circle valuation file containing the basic tenancy information and floor areas is available upon request. Data Room Full legal documentation will be made available via a legal data room, including Title documents, EPC s, licences for alteration and other relevant legal information. A purchase at this level reflects an attractive Net Initial Yield of 7.25% after purchaser s costs of 5.80%. Contact For further information, please contact: Rob Tudor BSC (Hons) MRICS Partner robtudor@tudortoone.com 0207 495 5550 Lee Evans BSC (Hons) MRICS Associate Partner leeevans@tudortoone.com 0207 495 5550
Units 1-12 Oxonian Park Kidlington Oxford OX5 1FP
Location Situation, Description, Accommodation and Site Information Kidlington is an established commercial location offering excellent communications on both a local and national level, occupying a strategic location on the northern outskirts of Oxford, approximately 9 km (5.5 miles) north of Oxford City Centre. London is located approximately 96 km (60 miles) to the south east, with Birmingham approximately 104 km (65 miles) to the north east. The town is situated on the main Oxford to Banbury Road (A4260) and is well served by roads lying adjacent to the M40 motorway and close to both the A34 and A40. The area benefits from excellent access to the national motorway network with easy access onto the A34 dual carriageway, which in turn leads to the M40 motorway (Junction 9) approximately 9.5 km (6 miles) to the north east and the M4 motorway (Junction 13) to the south. The Oxford Ring Road (A34/A40) is 6.4 km (4 miles) to the south providing access to Oxford City Centre and its suburbs. The town is headquarters to the Oxfordshire Fire and Rescue Service, Thames Valley Police and the Oxfordshire St John Ambulance Service. The major European publishing company Elsevier is also located in the town, with its headquarters behind the subject property. There is a fast and frequent rail service from Oxford into London (Paddington) and Birmingham (New Street) with fastest journey times of 60 and 70 minutes respectively. London Oxford Airport is located in Kidlington and is the region s primary business airport. Situation Oxonian Park is situated to the north of Kidlington town centre, immediately to the south of Langford Lane in the Langford Locks business area and close to London Oxford Airport which is less than 1.6 km (1 mile) to the north west of the property. The Langford Lane and Langford Locks business park form the heart of Kidlington s commercial area, with approximately 4,000 people employed in the area. Close by is the prestigious Spires Business Park with occupiers including DEFRA, Thames Valley Police and Elsevier. Access into Oxonian Park is obtained directly off Langford Lane which forms the main link between the A44 and the A4260 Banbury Road. Oxford Motor Park is nearby with representation from Ford, Nissan, Renault, Honda and Vauxhall, whilst Langford Business Park is situated immediately to the west of the property. Description The property comprises a high specification industrial/ warehouse estate totalling twelve units arranged in three terraces around a service yard and car parking areas. Units 1-4 have been amalgamated to form a single unit as have Units 11 & 12. metal cladding with low level brickwork and powder coated aluminium framed double glazed windows and doors. The units benefit from ancillary office accommodation and loading facilities. Internally, the warehouse areas have a minimum clear eaves height of approximately 7.5 m and the offices benefit from a base build specification comprising carpet tiles, painted plaster finish to walls and mineral fibre ceiling tiles with recessed fluorescent lighting. Male and female w/c s are proved at both ground and first floor level with disabled w/c s at ground floor level. The units are provided with incoming three phase electricity, gas, water, telecommunications and foul and surface water drainage. Externally, the site is well configured and each unit benefits from a concrete service yard and block pavior parking areas. Accommodation The property provides a total gross internal floor area of approximately 11,818.02 sq m (127,208 sq ft). Site The site area extends to approximately 2.52 hectares (6.22 acres). Langford Lane 12 11 10 9 8 1 2 3 7 6 5 4 The estate was constructed in 2003/04 and the buildings are of steel portal frame construction, below pitched roofs covered with Plastisol coated profiled metal cladding. Elevations are of full height profiled Tenure Freehold.
Tenancy The estate is multi-let in accordance with the tenancy schedule and produces a total net rent of 929,040 per annum. The weighted average unexpired lease term to breaks is approximately 6.7 years and 9 years to expiry, assuming the re-gear with Schedl Automotive System Service Ltd completes see Note 1. Covenant Information Dun & Bradstreet covenant analysis is available in the data room. Units 100 130 Faraday Park Faraday Road Swindon SN3 5JF Unit Tenant Area Lease sq m sq ft Start Date Expiry Date (Break Date) Next Rent Review Gross Rent Passing ( P/A) Rent Passing ( per sq ft) Comment 1-4 SCHEDL AUTOMOTIVE SYSTEM SERVICE LTD 5166.16 55,608 10/11/2005 31/03/2025 (31/03/2014) 10/11/2015 358,500 6.45 Note 1 5 WALTERS GROUP HOLDINGS LTD 558.16 6,008 30/07/2007 29/07/2017 30/07/2012 51,723 8.61 Note 2 6 RIDGEWAY GARAGES (NEWBURY) LTD 533.08 5,738 01/05/2007 30/04/2022 01/05/2012 45,645 7. 95 Note 3 7 M-SOLV LTD 558.63 6,013 25/01/2012 09/03/2020 10/03/2015 48,104 8.00 8 M-SOLV LTD 676.15 7,278 10/03/2005 09/03/2020 10/03/2015 57,876 7.95 Note 4 9 VACANT 806.96 8,686 16/10/2012 16/10/2014 N/A 69,488 8.00 Note 5 10 OXFORD UNIVERSITY PRESS 804.08 8,655 30/03/2007 29/03/2017 30/03/2012 68,220 7.88 Note 6 11 SAVONA PROVISIONS LTD 1353.69 14,571 31/05/2006 30/05/2021 31/05/2016 113,962 7.82 12 SAVONA PROVISIONS LTD 1361.12 14,651 31/05/2006 30/05/2021 31/05/2016 115,522 7.88 TOTAL 11,818.02 127,208 929,040 7.30 Note 1 - Break dated 31/03/2014 to be moved to 31/03/2019 in return for 15 months rent free, which will be topped up by vendor. Heads of terms being agreed and solicitors to be instructed. Break option on not less than six months prior notice. Tenant provides a rent deposit of 205,625. Note 2 - Outstanding rent review dated 30/07/2012. Note 3 - Outstanding rent review dated 01/05/2012. Note 4 - Assignment from Oxford Aviation Services Ltd who then assigned to CSE Bournemouth Ltd. Tenant provides a rent deposit of 36,748. Note 5 - Vendor to provide a 2 year rent rates and service charge guarantee at 8.00 per sq ft. Note 6 - Outstanding rent review dated 30/03/2012.
Units 100 130 Faraday Park Faraday Road Swindon SN3 5JF
Location Situation, Description, Accommodation and Site Information Swindon is a strategic location approximately 128 km (80 miles) west of London, 64 km (40 miles) east of Bristol, 72 km (45 miles) west of Reading and 48 km (30 miles) south west of Oxford. The town is the principal commercial and financial centre for Wiltshire and is home to a number of corporate headquarters for several major companies. Principal employers in the town include Honda, Nationwide Building Society, Motorola, Marks & Spencer, WH Smith and BP. Road communications are excellent with the M4 passing approximately 4.8 km (3 miles) from the town centre accessed via Junctions 15 and 16 to the south and south west respectively. The M4 provides easy access to the M5 to the west, the M25 to the east and the remainder of the national motorway network. The A417/419 trunk road, which runs from the M4 (Junction 15) to the M5 at Gloucester to the north, is now a dual carriageway for the majority of the route providing convenient access to the south west, the Midlands and the north. The A419/417 provides good access to Gloucester approximately 59 km (37 miles) to the north west and Junctions 11A and 13 of the M5 motorway. By rail, Swindon mainline train station provides a frequent train service to London Paddington with a fastest journey time of 55 minutes, and Bristol Temple Meads (40 minutes), in addition to serving other towns throughout the south west and Wales. Bristol International Airport is approximately 72 km (45 miles) to the west and Heathrow Airport is approximately 112 km (70 miles) to the east. Situation Faraday Park is situated in the prime industrial area of Swindon, close to and with direct access onto the A419 dual carriageway, within 2.5 km (1.5 miles) of Junction 15 of the M4 motorway. The A419 also provides access to Oxford to the north east. Swindon town centre lies approximately 5 km (3 miles) to the west. Description The property comprises a high specification industrial/ warehouse estate totalling five individual buildings that have been divided into six units, constructed in approximately 1998. The buildings are of steel portal frame construction below single and double pitch roofs clad with Plastisol-coated profiled metal cladding. The four buildings to the front of the estate comprise traditional light industrial units with either one or two sectional overhead level access doors, whilst a larger unit to the rear incorporates one level access door, six dock levellers to the southern elevation, two smaller access doors to the northern elevation and service yards to both the north and south elevations. The external cladding to the four buildings to the front of the estate comprise full height masonry whilst the larger warehouse to the rear of the estate incorporates profiled metal cladding combined with areas of full height masonry around the office accommodation. In addition, all buildings incorporate full height areas of curtain walling with aluminium frames. The units benefit from ancillary office accommodation with a base build specification providing for open plan office accommodation at ground and first floor, including male and female w/c s on both floors. Clear internal eaves heights range between 6 m and 8 m. A number of tenants have extended office areas to ground and or first floor level, formed cellular offices and meeting rooms and constructed communications and server rooms. Each unit is provided with incoming three phase electricity, gas, water, telecommunications and foul and surface water drainage. Externally, each unit benefits from concrete service yards, tarmacadam car parking areas and block paviors to footpaths and entrances to the offices. All buildings are accessed off a central spine road that runs off Faraday Road providing direct access to the car parking and service yard areas. Accommodation The property provides a total gross internal floor area of approximately 10,758.93 sq m (115,808 sq ft). Site The site area extends to approximately 2.71 hectares (6.7 acres). Tenure Freehold. 100 105 125 130 120 110
Tenancy The estate is multi-let in accordance with the tenancy schedule and produces a total net rent of 736,010 per annum. The weighted average unexpired lease term to breaks is approximately 3 years and 5.75 years to expiry. Covenant Information Dun & Bradstreet covenant analysis is available in the data room. Units 1 5 Weir Road Wimbledon London SW19 8UG Unit Tenant Area Lease sq m sq ft Start Date Expiry Date (Break Date) Next Rent Review Gross Rent Passing ( P/A) Rent Passing ( per sq ft) Comment Unit 100 Unit 105 CLIVE DERRECK NICHOLLS T/A Cameo Glass ULTIMATE RENAISSANCE LTD & UR HOLDING SpA 1,457.37 15,687 05/09/2011 04/09/2021 05/09/2016 94,368 6.02 1,101.65 11,858 24/11/2011 23/11/2021 24/11/2016 71,154 6.00 Unit 110 KERRY FOODS LTD 4,990.38 53,716 17/12/2003 16/12/2018 (17/12/2013) 17/12/2013 343,163 6.39 Note 1 Unit 120 MEDION ELECTRONICS LTD 1,495.00 16,092 18/02/2004 17/02/2014 110,325 6.86 Unit 125 WABASH TECHNOLOGIES LTD 855.64 9,210 25/03/2010 24/03/2015 50,000 5.43 Note 2 Unit 130 SAUER DANFLOSS LTD 858.89 9,245 16/10/2007 15/10/2017 (15/10/2013) 16/10/2012 67,000 7.25 Note 3 TOTAL 10,758.93 115,808 736,010 6.36 Note 1 - Tenant break option on not less than six months prior notice. Break penalty of 417,000. Note 2 - Tenant provides a rent deposit of 20,529. Note 3 - Tenant break option on not less than six months prior notice. Rent review dated 16/10/2012 agreed at 67,000 pa, and break clause moved from 15/10/2012 to 15/10/2013.
Units 1 5 Weir Road Wimbledon London SW19 8UG
Location Situation, Description, Accommodation and Site Information Wimbledon is a prosperous South West London urban centre within the London Borough of Merton located approximately 14.5 km (9 miles) south west of Central London, 11 km (7 miles) to the south east of Richmond and 11 km (7 miles) to the north west of Croydon. The town is renowned for the annual Wimbledon Tennis Championships which attracts approximately 425,000 visitors a year. Road communications are excellent, with the A3 trunk road approximately 4.8 km (3 miles) to the west of Wimbledon town centre, providing easy access to Central London, whilst Junction 10 of the M25 motorway is 24 km (15 miles) to the south west. The M25 in turn provides rapid access to the national motorway network. Wimbledon has excellent public transport facilities with a mainline rail service providing frequent direct services to London Waterloo (14 minutes), Clapham Junction (7 minutes) and Vauxhall (12 minutes). Wimbledon also benefits from a London Underground service (District Line) running to Edgware Road and Paddington via Earls Court (17 minutes), where passengers can take direct services to the West End, City and London Heathrow Airport. Extensions to the East London Line now serve West Croydon and Clapham Junction stations, both of which are easily accessible from Wimbledon, further improving accessibility to the City and Docklands. Situation The property is situated on Weir Road, approximately 2.3 km (1.4 miles) to the north east of Wimbledon town centre in an established mixed-use commercial area. The A218 Durnsford Road is located immediately to the west of the property and provides easy access into Central London via the A3 to the north, a journey of approximately 11.2 km (7 miles). Description The property comprises five units constructed in the mid 1980 s. The units are arranged as two adjoining semi-detached units numbered 1&2 and 3&4. Unit 5 is the first unit in the adjoining terrace, attached to Unit 6. All the units are of steel portal frame construction beneath a mixture of profiled metal sheet roof with Plastisol finish and Big 6 corrugated asbestos cement sheet roofs. External walls are clad with brickwork at lower level, above which is profiled metal cladding. Units 1&2 have steel concertina doors, whilst the remaining units benefit from steel roller shutter doors. The units benefit from ancillary office accommodation, with painted plaster walls, suspended mineral fibre ceiling tiles and recessed fluorescent lighting. Male and female and disabled w/c s are available in each unit. Clear internal eaves heights range between 5.5 m and 7.5 m. Each unit is provided with incoming three phase electricity, gas, water, telecommunications and foul and surface water drainage. Externally each unit benefits from concrete service yards and tarmacadam parking areas. Accommodation The property provides a total gross internal floor area of 9,752.04 sq m (104,970 sq ft). Site The site area extends to approximately 2.26 hectares (5.58 acres). Tenure Freehold. 1&2 3 4 Weir Road 5
Tenancy Price We are instructed to seek offers in excess of 33,950,000 (Thirty Three Million, Nine Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, for the entire portfolio. A purchase at this level reflects an attractive Net Initial Yield of 7.25% after purchaser s costs of 5.80%. The estate is multi-let in accordance with the tenancy schedule and produces a total of 938,952 per annum. The weighted average unexpired lease term is approximately 12.9 years. Covenant Information Dun & Bradstreet covenant analysis is available in the data room. Contact For further information, please contact: Unit Tenant Area Lease sq m sq ft Start Date Expiry Date (Break Date) Next Rent Review Gross Rent Passing ( P/A) Rent Passing ( per sq ft) Comment Rob Tudor BSC (Hons) MRICS Partner robtudor@tudortoone.com 0207 495 5550 Units 1&2 SELCO TRADE CENTRES LTD 4,783.86 51,493 11/10/2012 10/10/2027 11/10/2017 480,000 9.32 Note 1 Lee Evans BSC (Hons) MRICS Associate Partner leeevans@tudortoone.com 0207 495 5550 Units 3&4 OCADO LTD 3,577.05 38,503 03/02/2011 02/02/2026 03/02/2016 346,527 9.00 Unit 5 CLOCKWORK REMOVALS LTD 1,391.13 14,974 08/08/2000 20/06/2016 08/10/2014 112,425 7.51 Note 2 TOTAL 9,752.04 104,970 938,952 8.94 Note 1 - Guarantor to the lease is Grafton Group Plc. By way of a Licence to Alter, the tenant is undertaking works to the unit that will reduce the floor area. The hypothetical lease at rent review assumes a floor area of 51,493 sq ft (the floor area prior to the works). The works are subject to a full reinstatement provision. Note 2 - Tenant paying concession rent of 60% of 112,425 until 24/12/2012 whereupon the rent paid reverts to the full 112,425 pa. Misrepresentation Act 1967 Tudor Toone LLP, for itself and for the vendors of this property, hereby give notice that:- (i) These particulars do not constitute, nor constitute any part of, an offer or contract. (ii) Tudor Toone LLP and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations. (iii) neither Tudor Toone LLP nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property. (iv) Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. (v) 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. Subject to contract & Exclusive of VAT. Tudor Toone LLP is a limited liability partnership registered in England and Wales with registered number OC 305 411. Registered Office: 41/43 Maddox Street London W1S 2PD Designed & produced by Sectorlight (1201226) +44 (0)20 7255 5250 sectorlight.com October 2012