MODERN GREATER LONDON MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY PARK ROYAL INDUSTRIAL CENTRE Units A1-A12, Eldon Way, London NW10 7QQ
Investment Summary Greater London location Situated on the established Park Royal industrial estate, London s most popular industrial location Modern well-specified estate constructed in 2007 Fully-let providing an AWULT of 2.83 years to break, 4.56 years to expiry Currently producing 380,623 per annum, reflecting 13.49 per sq ft Freehold The property comprises a gross internal area of 28,223 sq ft (2,622.0 sq m) Tenants include The Walt Disney Company Ltd, Canon (UK) Ltd, Scandinavian Kitchen Ltd and Airstar France Seeking offers in excess of 5,535,000 (Five Million Five Hundred and Thirty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 6.50% after purchaser s costs of 5.80%. Nick Lloyd T: +44 (0)207 198 2221 M: +44 (0)7764 256 207 Steve Parry-Jones T: +44 (0)207 198 2233 M: +44 (0)777 138 8262 Charlie Lake T: +44 (0)207 198 2227 M: +44 (0)770 288 3495 nlloyd@lsh.co.uk sparryjones@lsh.co.uk clake@lsh.co.uk www.lsh.co.uk
8 to 10 7 5 to 6 4 3 RD D12 ELDON WAY D11 8 13 Location Park Royal is located in West London, spanning the Boroughs of Ealing, Brent and Hammersmith and Fulham. Park Royal is the largest industrial area in Europe and is the most important within inner London, occupying 750 hectares and home to more than 2,000 businesses and 40,000 employees. AMERSHAM M1 M25 WATFORD Park Royal London NW10 7QQ M25 Park Royal is located approximately 13km (8 miles) west of Central London. The area benefits from good road communications with the A406 North Circular Road linking to J1 of the M1 8km (5 miles) to the north-east, and the A40 Western Avenue providing access to J16 of the M25 and J1 of the M40, 19km (12 miles) to the west. The area is well-served by public transport with the Piccadilly, Central and Bakerloo Underground lines accessed by stations within close proximity, all of which provide direct access to Central London. In addition, numerous bus services serve the area. Heathrow International Airport, which serves over 180 destinations in 90 countries, is located approximately 19km (12 miles) south-west of Park Royal. SLOUGH Heathrow M4 STAINES N WEST END CITY LONDON Situation The property is situated on Eldon Way, just off Abbey Road, the main road leading through Park Royal. Immediately to the north and west of the property are a mix of industrial units, including older style units and a terrace of modern, light industrial units. The site is bordered to the south by Eldon Way, and the east by a commercial mixed use scheme. Due to the property s position within Park Royal the surrounding land use is predominantly industrial with a low vacancy rate across nearby estates. N CIRCULAR RD A406 TWYFORD ABBEY RD TWYFORD ABBEY RD RAINSFORD WHITBY WAY ABBEY RD ABBEY RD COMMERCIAL WAY ABBEY RD Park Royal is home to a number of large occupiers, including DHL, CEVA, Black Island Studios, Bakkavor and Royal Mail. HANGER LANE RAIL STATION WESTERN AVE A40 CUMBERLAND AVE Description The estate comprises a single terrace of 12 light industrial units with parking and loading accessed directly from Eldon Way, which is gated at its junction with Whitby Avenue. The properties are of steel portal frame construction under a pitched double skin aluminium clad roof including 10% translucent panelling. The elevations are clad with profiled aluminium sheeting with double glazed windows and ground level loading doors. Units 1-8 also benefit from canopied loading areas. King George IV (PH) Internally the units have been completed to a shell specification, with powder coated flooring on the ground floor and concrete floor on the first floor mezzanine level and electric power lines which have been capped off. The units are serviced with mains gas, water and electricity. The units are of varying sizes and benefit from a minimum of 6m clear eaves height, 30kn per sq m floor loading, three phase power and electrically operated loading doors. ELDON WAY WHITBY AVENUE 35.3m Depot El Sub Sta Tank ELDON WAY A1 A4 A6 El Sub Sta A12 Tank Ordnance Survey Crown Copyright 2011. All rights reserved.
ROYAL MAIL MCVITIES FEDEX PREMIER PARK TO A406 NORTH CIRCULAR AND M25 ABBEY ROAD INDUSTRIAL PARK GRAND UNION TRADE PARK ABBEY ROAD TO A40 AND CENTRAL LONDON WHITBY AVENUE TO A40 SEGRO - ORIGIN
Site The site totals approximately 1.52 acres (0.61 hectares) and has a site coverage of 43%. Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (6th edition) and provide the gross internal areas within the tenancy schedule. Tenure Freehold. Tenancy Demise Tenant Sq M Sq Ft AREA LEASE DATE RENT Start (Rent Review) Break Expiries pa per sq ft Comments Unit 1 C Workshop Ltd 246.75 2,656 13/07/2010 12/07/2015 34,663 13.05 Unit 2 The Walt Disney Company Ltd 215.26 2,317 05/10/2010 04/10/2015 28,000 12.08 Unit 3 Vinorium (UK) Ltd 210.24 2,263 24/07/2012 24/07/2015 23/07/2017 30,538 13.49 Tenant break on 6 months notice Unit 4 Under Offer - Details to be provided to bidders 212.47 2,287 02/12/2013 (02/12/2018) 01/12/2018 01/12/2023 30,538 13.35 Unit 5 Porcelain Tiles Ltd 188.60 2,030 22/12/2011 21/12/2016 26,390 13.00 22/12/2012 to 21/12/2013-13,195 per annum 22/12/2013 to 21/12/2014-22,330 per annum 22/12/2014 to 21/12/2016-26,390 per annum Unit 6 Rabih Hage Ltd 188.60 2,030 Unit 7 Yeoh Saxton-Pizzie Ltd 190.17 2,047 Unit 8 JD Building Supply Centre Ltd 189.71 2,042 Unit 9 Scandinavian Kitchen Ltd 218.51 2,352 09/03/2009 (09/03/2014) 07/03/2008 (07/03/2013) 16/10/2013 (16/10/2018) 21/06/2013 (21/06/2018) 08/03/2019 28,000 13.79 06/03/2014 28,587 13.97 Sub-let to Grocery Delivery E-Services UK Ltd from 17/08/2012 to 23/01/2014 16/10/2018 15/10/2023 27,322 13.38 21/06/2018 20/06/2023 31,750 13.50 Tenant break on 6 months notice Rent subject to annual CPI increases to the 16/10/2018 review. 16/10/2013 to 15/01/2014 - nil rent 16/01/2014 to 15/07/2015-50% of headline rent 16/07/2015 to 16/10/2015-100% of headline rent Tenant break on 6 months notice 21/06/2013 to 20/06/2015-15,875 per annum 21/06/2015 to 20/06/2018-31,750 per annum Unit 10 Canon (UK) Ltd 256.97 2,766 23/05/2008 22/05/2014 40,851 14.77 Unit 11 Airstar France 260.04 2,799 25/03/2010 24/03/2015 37,332 13.34 Unit 12 Sandbone Ltd 244.71 2,634 07/02/2013 (07/02/2019) 07/02/2019 06/02/2023 36,652 13.91 Tenant break on 6 months notice 01/05/2013 to 31/10/2014-17,826 per annum 01/11/2014 to 07/02/2019-36,652 per annum Totals 2,622.03 28,223 380,623 13.49
Service Charge The service charge at the property for the year ending June 2014 is anticipated to be 0.57 per sq ft. Investment Market Investor demand for well-specified South East multi-let industrial estates has remained consistently strong and we would highlight the following recent transactions in relation to the sale of the subject property: Date Address Area Purchaser Price Net Initial Yield May-13 Frogmore Industrial Estate 31,038 sq ft Private 5.76M 5.75% Jan-2013 Grand Union Estate 102,651 sq ft SWIP 16.575M 5.47% Aug-2012 Minerva Road 38,959 sq ft CBREI 5.695M 6.30% Jun-2012 Riverside Cargo Centre, Poyle 43,063 sq ft St James Place PF 6.15M 6.08%
EPC EPCs for all units are available on request. VAT The property has been elected for VAT. Proposal We are instructed to seek offers of 5,535,000 (Five Million Five Hundred and Thirty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 6.50% after purchaser s costs of 5.80%. Additional information on the property can be obtained from: www.lshinvestmentsales.co.uk Contact Nick Lloyd T: +44 (0)207 198 2221 M: +44 (0)7764 256 207 nlloyd@lsh.co.uk Steve Parry-Jones T: +44 (0)207 198 2233 M: +44 (0)777 138 8262 sparryjones@lsh.co.uk Charlie Lake T: +44 (0)207 198 2227 M: +44 (0)770 288 3495 clake@lsh.co.uk United Kingdom House 180 Oxford Street London, W1D 1NN T: +44 (0)20 7198 2000 F: +44 (0)20 7198 2001 www.lsh.co.uk Subject to Contract and Exclusive of VAT Lambert Smith Hampton December 2013. Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. Lambert Smith Hampton December 2013 Designed by: Barbican Studio +44(0) 207 634 9574