BUILDING 510 - Home - Cushman & Wakefield · INVESTMENT HIGHLIGHTS. 3 BUILDING 510 / BIGGIN HILL LOCATION A232 To A21/M25 J4 ... SITE PROPOSAL BOMBARDIER BUILDING 510 & HEATHROW CITY

BUILDING 510 LONDON BIGGIN HILL AIRPORT T N 1 6 3 B N

HIGH SPECIFICATION HANGAR 6 MINUTES FROM CENTRAL LONDON

BUILDING 510 / BIGGIN HILL

• Biggin Hill Airport is strategically located within

the M25, 14 miles east of Central London

• 6 minutes from Central London by helicopter

• Ranked within Top 15 Airports in Europe for

Business

• 18% market share of London’s private jet travel

• 750 destinations in 75 countries

• Dedicated UK Port of Entry with on-site Border

Agency

• Purpose-built high specification airport hangar

and associated flight support centre totalling

73,356 sq ft with direct airside access

• Site area 3.27 acres

• Long Leasehold until Jan 2120, at a current

rent passing of £228,099 pa

• Let to Biggin Hill Airport Ltd until 6th June 2026

subject to a mutual break on / after 6th June 2021,

at a rent of £728,099 pa

• Net rent currently receivable £500,000 pa

• Sub under-let to Bombardier and Signature

• Opportunity to simplify structure in June 2021

and increase the net rent receivable / secure

vacant possession

INVESTMENT HIGHLIGHTS

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LOCATION

A232

To A21/M25 J4

A233

A233

To Biggin Hill Town Centre

London Biggin HillAirport Terminal

LONDON BIGGIN HILL AIRPORT

LONDON BIGGIN HILL AIRPORT SITE PROPOSAL

BOMBARDIER

BUILDING 510

&

HEATHROW

CITY

Sevenoaks

LONDONBIGGIN HILL

AIRPORT

Croydon

Guildford

GATWICK

CENTRALLONDON

Bromley South

Orpington

A40A13

A2

A20

A233A24

A3

A3

A1

A23

A23

A22 A21

A22

A232A21

A205

A406 A406A12A11

M3

M4

4

M23

M25

M20CENTRAL LONDON IS 6 MINUTES BY HELICOPTER

LOCATION

The Property is located at London Biggin Hill Airport which is approximately 17 miles to the south east of Central London, 16 miles to the south west of Dartford, 9 miles to the south east of Croydon and 8 miles south of Bromley.

The town is located on the A233 which connects through to Junction 4 of the M25, 8 miles to the south east. Biggin Hill is one of only three Airports located within the M25.

Central London is 6 minutes by helicopter. Other major nearby transport links include the Channel Tunnel, linking Folkestone / Ashford with the Ports at London Gateway and Dover.

SITUATION

The Airport is accessed via the A233 which connects with the A232 / A21 through to Junction 4 of the M25. Property itself is situated immediately to the south of the runway with direct airside access.

TRANSPORT & TRAVELO

akla

nds

Lane Sal

tbox

Hill

BUILDING510

Biggin HillHeritage Hangar

West Kent Golf Club

Castle AirHelicopter Charter

Biggin Hill Airport Hotel Site

CentrelineAircraft Rental Service

London Biggin HillAirport Terminal

London Executive AviationAircraft Rental Service

Sovereign Business JetsAirline

A233


To A21 / M25 J4

To Biggen Hill Town Centre

To Bromley South / Orpington

A2

33

MA

I N R

OA

D

A 2 3 3 M A I N R O A D


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500 ACRES

70+ BUSINESSES

18% MARKET SHARE OF LONDON’S PRIVATE JET TRAVEL

TOP 15 RANKED WITHIN EUROPE’S TOP 15 BUSINESS AIRPORTS

£60M+ PRIVATE INVESTMENT

6 MINS HELICOPTER TRANSFER INTO CENTRAL LONDON

LONDON BIGGIN HILL HAS EMERGED AS A LEADING

BUSINESS IN THE SOUTH EAST AND IS ONE OF THE MOST

IMPORTANT PIONEERS OF THE BUSINESS AVIATION SECTOR IN THE UK… IT IS PROVING

A VERY SOUND INVESTMENT FOR THOSE CHOOSING TO

BASE THERE

SADIQ KHAN

• London Biggin Hill Airport (LBHA) totals c.500 acres with three terminals and a runway extending to 1,820m, with the capacity to accommodate a Boeing 737 / Airbus 320. It is home to 70+ businesses including Bombardier, Signature Flight Support, Textron Aviation, Castle Air Charter, Zenith Aviation and Formula One

• The airport has 18% market share of London’s private jet travel with flights to 750 destinations in over 70 countries. It is ranked within Europe’s Top 15 business airports. Services include VIP handling, hangarage, support and maintenance for a range of business jets

• The airport provides a gateway for business passengers to Central London with competitive opening hours (06:30 – 23:00); all weather landing aids; Border Agency on site; 6-minute helicopter transfer into Central London

• Alongside £60m+ of private investment in new hangars / infrastructure, funding has recently been approved for the London Aerospace and Technology College to open in 2020 which will provide a national base for the development / employment of newly qualified aero-engineers. Planning permission has also been granted for a boutique hotel adjacent to Building 510 together with a new flying school


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BUILDING 510

Building 510 comprises a modern purpose-built maintenance, repair and overhaul (MRO) hanger / ancillary accommodation constructed in 2011 together with a fixed base operations facility (FBO) constructed in 2012, totalling approximately 73,356 sq ft.

We understand that the overall initial build cost was in the region of £17.25m. The MRO benefits from the following specification:

• Steel portal frame construction

• 10m minimum eaves height

• Clear 89m span with six aluminium power sliding doors providing clear openings of 59m wide x 9.6m high

• 5mm resin finish floor with integral DPM

• Two overhead cranes with 2-tonne lifting capacity which span the entire floorplate and can be remotely controlled

• A ‘sky-walk’ glazed bridgeway joins the FBO and offices at either end of the facility

• Ratio of external / internal lighting provides the most effective share of light to support under / above maintenance

• Recessed floor boxes with single / triple phase power and compressed air connections

• 24/7 security, CCTV monitoring and gatehouse facility

• 500kva standby generator with ability to provide 5-days’ continuous power

• Dedicated airside apron extending to approximately 50m, providing direct airstrip access

• Complies with all industry standards for the maintenance / repair of private jets

• Grade A ancillary office accommodation benefitting from air-conditioning, raised floors and suspended ceilings

The FBO facility is fitted out to a top specification providing passengers with a high end arrival / departure experience and also includes a fully operational Border Control.

Externally, there is 70 spaces for cars in a secure site with barrier controlled access via a 24-hour manned gatehouse.


6


7

A MODERN AIRCRAFT HANGER TOTALLING APPROXIMATELY 73,356 SQ FT

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following Gross Internal Areas:

Demise sq m sq ft

Maintenance, Repair and Overhaul Hangar 3,168 34,100

Ancillary Offices 1,579 16,996

Fixed Base Operations Facility 2,068 22,260

Total 6,815 73,356

SITE

The site has an area of approximately 3.27 acres (1.32 hectares)

Not to scale / Indicative only.

BUILDING 510


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TENURE & TENANCY

TENURE

The Property is held long leasehold from 1st January 2010 for a term of 100 years, ie unexpired term of approximately 91 years.

The ground rent is subject to 5 yearly rent reviews linked to RPI currently set at £228,099 per annum. The next review is in January 2020.

TENANCY

The Property is sub-let in its entirety to Biggin Hill Airport Ltd under an FRI lease (subject to a Schedule of Condition) for a term of 10 years expiring 6th June 2026 with a mutual break option on / after 6th June 2021, subject to 18 months’ prior notice. This tenancy is excluded from the Landlord and Tenant 1954 Act. The current passing rent is set at £703,099 pa; the Vendor will top up the rent to the fixed increase of £728,099 pa on 7th June 2019. There is a RPI uplift on 7th June 2021.

The property has been further sub-let in its entirety to Bombardier and Signature.

SUPERIOR LEASE Lease dated May 1994 for 125 years made between:

(1) The Mayor and Burgesses of the London Borough of Bromley and 2) Biggin Hill Airport Ltd (BHAL)

Superior Landlord Bromley Council

Superior Tenant BHAL

FIRST HEAD LEASE (INTEREST BEING SOLD)

18th March 2010 for 100 years between Biggin Hill Airport Ltd and Biggin Hill Hangar Company Ltd (BHHCL)

BHAL BHHCL

HEAD LEASE

7th June 2016 for 10 years between Biggin Hill Hangar Company Ltd and Biggin Hill Airport Ltd

BHHCL BHAL

OCCUPATIONAL LEASES

10 years from June 2016 Between Short Brothers Plc / Signature Flight Support and Biggin Hill Airport Ltd

Landlord

BHAL

Tenant

Short Brothers Plc /Signature Flight Support

TENANCY SCHEDULE

DEMISE TENANT SQ FT LEASE START

LEASE EXPIRY/BREAK

RENT REVIEW

PASSING RENT (PA)

COMMENTS

Building 510 Biggin Hill Airport Ltd 73,356 07/06/201606/06/2026

Mutual break on / after 06/06/2021

07/06/2021£728,099 (£9.93 psf)

Stepped rent increase to £728,099 in June 2019 to be topped up by the Vendor (current rent passing £703,099 pa). Schedule of Condition. Outside L&T 1954 Act.

RPI uplift. Break notice requires minimum 18 months notice.

The net rent currently receivable is £500,000 pa assuming rent topped up to the fixed increase receivable from 7th June 2019.

SUB-TENANCY SCHEDULE

DEMISE TENANT SQ FT LEASE START

LEASE EXPIRY/ EXPIRY

RENT REVIEW

PASSING RENT (PA)

COMMENTS

MRO Hangar Short Brothers Plc(subsidiary of Bombardier Inc) 51,096 07/06/2016 31/05/2026

TBO - 06/06/2020 07/06/2021 £700,000 (£13.70 psf)

Fixed rent increase to £725,000 pa on 7th June 2019. Annual RPI uplifts from 07/06/2020 (subject to 3% cap). Tenant only Break notice minimum 12 months. Schedule of condition. Outside 1954 Act. L/L to pay rates.

FBO facility / Offices Signature Flight Support 22,260 13/06/2016 31/05/2026TBO - on/after 13/06/2021

01/01/202101/01/2025

£450,000 (£20.22 psf)

RPI review. Two sub-licences. Tenant only Break notice minimum 12 months. Schedule of condition. Outside 1954 Act. L/L to pay rates.

TOTAL £1,150,000

Should a purchaser choose to exercise the 2021 break option in the main sub-lease, the Signature / Bombardier leases would also be determined. New leases could then be created to form direct relationships with Signature / Bombardier. Alternatively, vacant possession could be secured in June 2021 for re-letting / owner-occupation.


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BIGGIN HILL AIRPORT LTD

Biggin Hill Airport Ltd provides specialist aviation and related services for the Business and General Aviation sector at Biggin Hill Airport. The company has a D&B rating of 3A1 and the latest financial information can be summarised as follows:

2018 2017 2016

Turnover £18,349,099 £14,736,046 £11,889,116

Pre-tax profit / losses £1,469,712 £893,384 £956,034

Net Worth £7,296,138 £6,116,935 £5,386,035

COVENANT INFORMATION

SIGNATURE FLIGHT SUPPORT

Signature Flight Support is one of the largest global Fixed Base Operations companies operating in over 200 locations worldwide delivering essential support services for business / private aviation including refuelling, hangarage, maintenance, repair / overhaul as well as a high-end passenger arrivals / departures experience. They have a D&B rating of 4A1 – see www.signatureflight.com

2017 2016

Turnover £24,176,201 £20,543,880

Pre-tax profit / losses £2,997,068 £2,789,043

Net Worth £23,870,678 £18,672,745OUR INVESTMENT IN BIGGIN HILL HAS BEEN A TREMENDOUS SUCCESS, AFFORDING US THE OPPORTUNITY TO GROW OUR

PRESENCE IN THE MOST INFLUENTIAL AND PRODUCTIVE BUSINESS AVIATION LOCATION IN THE UK, LONDON & SOUTH EAST

BOMBARDIER

BOMBARDIER (SHORT BROTHERS)

Short Brothers Plc is an aerospace company based in Belfast. Founded in 1908, it was the first company to make production aircraft and in 1989 was bought by Bombardier. Bombardier is the world’s leading manufacturer of both planes and trains headquartered in Montreal, Canada.

In 2016, Bombardier doubled its capacity at London Biggin Hill Airport by moving into Building 510 which accommodates over 100 technicians. The facility services aircraft, including scheduled / unscheduled maintenance, modifications and installations for Bombardier Learjet, Challenger and Global aircraft. This is Bombardier’s primary maintenance operation for UK / Europe having recently relocated from Germany.

Short Brothers is a subsidiary of Bombardier Inc. Bombardier Inc is a global leader in the transportation industry with over 68,000 employees worldwide across 28 countries. For the year ending December 2018, global revenues totalled $16.2 billion – see www.bombardier.com


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BOMBARDIER

FURTHER INFO

ASSET MANAGEMENT

• Simplify / re-gear the existing sub-lease structure

• Exercise the mutual break option in June 2021 within the Biggin Hill Airport Ltd lease to create a direct relationship with Bombardier / Signature Flight Support

• Increase the net rental income currently receivable from the property

• Secure vacant possession and drive rental growth upon reletting

• Secure vacant possession for own occupation in 2021

RATING ASSESSMENT

The Property has a rateable value of £595,000. The current uniform business rates multiplier is 49.3p.

VAT

The Property is elected for VAT purposes and it is anticipated that the sale can be treated as a Transfer of a Going concern.

DATAROOM

There is a dataroom containing relevant legal / lease documentation - access available upon request.

Note: The asset is held in a Jersey based SPV.

EPC

D(80) and D(87). Certificate available upon request.

PROPOSAL

WE ARE INSTRUCTED TO INVITE OFFERS FOR THE LONG

LEASEHOLD INTEREST IN BUILDING 510.


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CONTACT

For further information or to arrange an inspection, please contact:

Edward Cornwell

T 020 7152 5103M 07801 259 470E [email protected]

Brett Huxley


David Smeeton


Russell Nimmo

T 020 7152 5859M 07826 947276E [email protected]

Notices Relating to Property Misrepresentation and Property Misrepresentation Act. Cushman & Wakefield for themselves and for the Vendors of this property whose Agents they are, give notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures & fittings referred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Cushman & Wakefield has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of publication is May 2018.

Made by Tayler Reid. 020 7355 2500. taylerreid.london

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Documents

BUILDING 510 - Home - Cushman & Wakefield · INVESTMENT HIGHLIGHTS. 3 BUILDING 510 / BIGGIN HILL LOCATION A232 To A21/M25 J4 ... SITE PROPOSAL BOMBARDIER BUILDING 510 & HEATHROW CITY