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KEITHHOUSENorth Hyde Road Hayes
A prominent industrial investment with significant asset management and development potential
Old Vinyl Factory
KEITHHOUSE
ASDA Superstore
Hyde Park Hayes
Hayes & Harlington
M4 Motorway
Hayes Town Centre
EXECUTIVE SUMMARY
Prominent freehold industrial investment with substantial redevelopment potential for uses including residential or industrial, subject to planning.
Warehouse totalling 2,875.9 sq m (30,957 sq ft), constructed in the early 1980’s.
The site extends to approximately 2.27 acres (0.92 hectares) and comprises a single let industrial unit in close proximity to Hayes & Harlington railway station.
The property is currently let to Yodel Delivery Network Limited until 28 November 2020 at a rent of £312,000 per annum; £10.08 per sq ft.
Vacant possession of the site can be achieved by December 2020 presenting numerous asset management opportunities.
Initial feasibility studies by JTP Architects demonstrate the potential to develop in excess of 200 new homes (subject to planning).
Strong underlying demand from the residential market supported by excellent transport links and the arrival of Crossrail in 2019.
Freehold.
Unconditional offers are sought.
Hyde Park Hayes
LOCATION
M4 M4
M25
M40
A40
A4
A316
A4
A40
A20
A24
A3
A501
A10A41
A312
J4BJ4
J3
J15
H A Y E S
W E M B L E Y
T W I C K E N H A M
R I C H M O N D
U X B R I D G ES T R A T F O R D
G R E E N W I C HC L A P H A M
W I M B L E D O N
A S H F O R D
H O L L O W A Y
C R Y S T A LP A L A C E
H A M M E R S M I T H
M25
M3
ROYALALBERT HALL
MARBLE ARCH
IMPERIALWAR MUSEUM
THE O2 ARENA
ROYAL GREENWICHOBSERVATORY
QUEEN ELIZABETHOLYMPIC PARK
H A R R O W
BUCKINGHAMPAL ACE
LONDON EYE
ST PAUL’S CATHEDR AL
CANARYWHARF
HAMPTON COURT PAL ACE
KEW GARDENS
HEATHROWAIRPORT
WIMBLEDON
BAT TERSEAPOWER STATION
WEMBLEY ARENAR AF NORTHOLT
CITY OF LONDON
TOWER BRIDGE
SHARD
TWICKENHAMSTADIUM
15 2.5 3.5 15miles to Central London
miles to Heathrow Airport
miles to the M25
minutes by trainto London Paddington
Hayes is well located between Central London and the M25, with a large catchment and excellent connectivity by road links, rail services and proximity to Heathrow airport.
Keith House is located just 15 miles west of Central London and less than 3.5 miles east of the M25 / M4 interchange.
Hayes is an established commercial and residential location that is undergoing a comprehensive regeneration program and inward investment owing in part to the arrivalofCrossrailin2019.Thesiteisinalocationbenefitting froma‘rippleeffect’asareaswithinthevicinityofHayes and Harlington station are improved.
The surrounding area is mixed use in nature, including commercial and residential accommodation. Numerous residential development schemes are underway or planned including The Old Vinyl Factory, which is situated to the north.
Hayes is within Zone 5 in West London, and sits in the London Borough of Hillingdon. It is situated approximately 2.5 miles north of Heathrow airport. Itbenefitsfromstrongtransportationlinkstocentral London.
IndustrialaccommodationwithintheHeathrowmarket has seen exceptional levels of demand from both occupiers and investors as the availability of existing stockisdepletedandrentshavebeenrisingsignificantly.
Average house prices in Hayes have risen by 51.4% over the last 5 years and outperformed the Greater London average by 5.4% over the last 3 years. (Land Registry)
The site is therefore situated in an ideal location, able to benefitfromexcellenttransportlinksandprominence inanareathathasalreadyundergonesignificantnew developmentinthelastfiveyears.
A312
TH
E PA
RKW
AY
M4
M4M4/J4
TOWN CENTRE
To M25
To Hammersmith
M4/J3
NORTH HYDE ROAD
DAWLEY RO
AD
SHEPISTON LANE
HIG
H S
T
S
TATI
ON
RD
STO
CKL
EY R
OAD
GRAND UNION CANAL
HAYES &HARLINGTON
CROWNE PLAZALONDON HEATHROW
LONDON HEATHROW
STOCKLEY PARK
CANON EUROPE
STOCKLEY GOLF CLUB
AIRLINKS GOLF CLUB
HEATHPARKGOLF CLUB
GSK
ASDA SUPERSTORE
CURRYS PC WORLD
TESCO
COSTCO
DAVID LLOYD
KEITHHOUSE
CONNECTIVITYThe site benefits from excellent transport links to both Central London and the south east of England.
Rail Road Air
Hayes & Harlington station is less than 0.4 miles from the property and provides regular services to Central London. Rail services are to be enhanced by the arrival of Crossrail in 2019 which will provide improved access to the West End and City from Reading and Heathrow in the west and ShenfieldandAbbeyWoodtotheeast.
Thepropertybenefitsfromconvenientroadlinkswith Junction 3 of the M4 lying 2 miles to the south providing connectivity with the Thames Valley corridor and the A4 dual carriageway.
Heathrow Airport can be reached by road in 10 minutes andprovidesflightsforapproximately67millionpassengersperyear,offeringunrivalledinternationaltraveloptions.Heathrow’slinkswouldbefurtherenhancedbyconstruction of the proposed third runway.
Ealing Broadway 8 mins
Heathrow Terminal 4 13 mins
London Paddington 15 mins
Maidenhead (via Crossrail) 19 mins
M4 Junction 3 1.2 miles
M25 Junction 15 3.3 miles
M40 Junction 1 5.9 miles
M3Junction1 7.3miles
Manchester 1 hour 5 mins
Brussels 1 hour 15 mins
NewYork 7hours50mins
Dubai 7hours10mins
CROSSRAIL
Crossrailwillprovideanewhigh-speedraillinkvastlyimprovingLondon’sconnectivity from east to west. The line is due to open in 2019 and is consideredoneofthemostsignificantinfrastructureimprovementstoLondon since the opening of the London Underground over 150years ago.
Thesiteislocatedwithinafewminutes’walkofthenewHayes&HarlingtonCrossrail station, where it is envisaged up to six Elizabeth line services an hourwillstop.Thestationisbeingupgradedwithworksduetocompletein 2019. This will allow passengers to travel right through Central London without having to change trains. The appeal of Hayes will increase to commutersasCrossrailopensupnewareastothoseworkingintheWestEnd and City of London.
CGI shows the proposed new Hayes & Harlington station
HAYES &HARLINGTON
HEATHROWAIRPORT
MAIDENHEADREADING TOTTENHAMCOURT ROAD
BONDSTREET
PADDINGTON
5 MINS19 MINS34 MINS 22 MINS20 MINS17 MINS
FARRINGDON
25 MINS
LIVERPOOLSTREET
27 MINS
WHITECHAPEL
30 MINS
CANARYWHARF
34 MINS
Piccadilly Line
Jubilee Line
Central Line
Northern Line
Hammersmith & City Line
Circle Line
Metropolitan Line
London Overground
District Line
DLR
HAYES &HARLINGTON
HEATHROWAIRPORT
MAIDENHEADREADING TOTTENHAMCOURT ROAD
BONDSTREET
PADDINGTON
5 MINS19 MINS34 MINS 22 MINS20 MINS17 MINS
FARRINGDON
25 MINS
LIVERPOOLSTREET
27 MINS
WHITECHAPEL
30 MINS
CANARYWHARF
34 MINS
Piccadilly Line
Jubilee Line
Central Line
Northern Line
Hammersmith & City Line
Circle Line
Metropolitan Line
London Overground
District Line
DLR
HAYES &HARLINGTON
HEATHROWAIRPORT
MAIDENHEADREADING TOTTENHAMCOURT ROAD
BONDSTREET
PADDINGTON
5 MINS19 MINS34 MINS 22 MINS20 MINS17 MINS
FARRINGDON
25 MINS
LIVERPOOLSTREET
27 MINS
WHITECHAPEL
30 MINS
CANARYWHARF
34 MINS
Piccadilly Line
Jubilee Line
Central Line
Northern Line
Hammersmith & City Line
Circle Line
Metropolitan Line
London Overground
District Line
DLR
Manchester 1 hour 5 mins
Brussels 1 hour 15 mins
NewYork 7hours50mins
Dubai 7hours10mins
THE SITEKeith House occupies a prominent site of 2.27 acres (0.92 hectares) within an area earmarked for significant growth and redevelopment.
The property provides a detached single bay industrial unit which benefitsfromdedicatedloadingprovisionalongoneelevationfromtheyard,togetherwithinter-linkedtwostoreyofficestotheeasterngableend of the unit. Internally the property is well proportioned witheavesheightof6.7mtotheundersideofthehaunch,andamaximumheight to the apex of 10.1m.
AccesstothepropertyisprovidedviaagatedentranceoffNorthHydeRoad.Additionally,carparkingisprovidedforapproximately27cars.Thetenant has installed further level access loading doors under licence, as well asinstallingaloadingbaywhichprovidestwodocklevelloadingdoors,allof which is to be reinstated by the tenant upon lease expiry.
A number of trees are positioned around the site boundary which provides additional privacy from the surrounding area. The trees are not protected and could potentially be removed as part of any development proposal.
The property has been measured in accordance with the RICS Code of MeasuringPractice(6thEdition),providingthefollowingareasonaGIA basis:
SQ M SQ FT
Warehouse 2,712.0 29,192
Offices 163.9 1,765
Total 2,875.9 30,957
Over the past 24 months’ the availability of both existing industrial stock and land capable of accommodating new industrial buildings has been diminishing dramatically, which has largely been due to the high demand seen within the South East and London for residential land. The West London industrial market has a chronic supply shortage, with demand from occupiers increasing further, particularly with those occupiers with links to the online retailing sector. The effect on the industrial market has been rising rents and reducing incentives, which is exacerbated for those locations such as Hayes which are considered to be key “last mile” strategic locations. The proximity to Heathrow Airport also presents an interesting dynamic from an existing use point of view, given that the Cabinet have recently approved plans for the expansion of Heathrow via a third runway. Prime rents on new build stock within the Hayes area currently stand at £15.00 per sq ft.
TENANCY
COVENANT
ThepropertyiscurrentlyletbywayofasingleleasetoYodelDeliveryNetworkLimited which commenced on 29 November 2015 and is due to expire on 28 November 2020, thereby providing an unexpired term of approximately 2.2 years.
The current passing rent is £312,000 per annum, equating to £10.08 per sq ft. Withintheleaseagreementthetenanthadtheopportunitytoexerciseabreakoptionon29November2018,subjectto6months’writtennotice,whichwasnotactivated.The tenant has carried out some alterations to the unit including installing additional low-levelloadingdoorswhichcreatesanexternalloadingbaywithtwodocklevelloading doors. These alterations are documented and have the necessary reinstatement provisions.
Yodel Delivery Network Limited (05200072)
Yodel is one of the largest courier and delivery services providers in the UK, headquartered in Liverpool. The business originally operated as HDN, the logistics armofShopDirectGroup,howeveritwasspunoffin2008.Sincethen,thebusinesshasgrownorganicallyaswellasthroughtakeovers(theB2BandB2CservicesfromDHL) and was rebranded in 2010 as Yodel. The company is owned by Sir David and SirFrederickBarclay.
Asummaryoftheirmostrecentfinancialresultsisshownbelow:
30 June 2017 30 June 2016 30 June 2015
Turnover £409,798,000 £422,673,000 £428,446,000
Pre-TaxProfit/(Loss) (£82,481,000) (£50,438,000) (£50,026,000)
TotalNetWorth £40,942,000 £38,264,000 £61,601,000
Tenant Size Lease Lease Rent per Rent per sq ft start expiry annum sq ft
YodelDelivery 30,957 29/11/2015 28/11/2020 £312,000 £10.08NetworkLtd
West London Industrial Market
PLANNING The property is located within the London Borough of Hillingdon.
The site is in an urban location with good access to public transport, which will improve with the introduction of Crossrail.
The site records a good Public Transport Accessibility Level (PTAL) of4,onascaleof1-6,where6isthehighest.Residentialdensitiesfor approvedschemesinthisarearangefrom126dwellingsperhectare up to 299 dwellings per hectare.
TheCouncil’scurrentpolicyLE2andProposalsMap(HayesWest) identifiesthesiteasanIndustrialBusinessArea,whichisdesignated for industrial and business use, where changes to other uses would normally be resisted. However, the Emerging Local Plan submitted to the Secretary of State on 18 May 2018 removes that allocation and simply shows the site as “white land” therefore the planning prospects for a pure residential scheme are very good.
ThesiteisinFloodZone1(lowrisk)-landassessedashavingaless than1in1,000annualprobabilityofriverorseaflooding(<0.1%).
The site does not fall within the Hayes Conservation Area and there are no Tree Preservation Orders.
Policy H2 of the Hillingdon Local Plan (Part 1 – Strategic Policies) indicates that 35% of all new units in the borough should be delivered asaffordablehousing,withanindicativeaffordabletenuresplitof 70%housingforsocialrentand30%intermediatehousing,subjectto viability.
LB Hillingdon CIL is chargeable at £95/m² and Mayoral CIL at £35/m².
AreasforminglinksinGreenChains
Conservation areas
Grand Union Canal
Green belt
Nature conservation sites of Metropolitan or Borough Grade I importance
Nature conservation sites of Borough Grade II or local importance
Hotel growth location
Officegrowthlocation
Locallysignificantemploymentlocation
Strategic industrial location
Site allocations, minerals and transport designations
Town centre
Summary of Proposed Changes to Land Designation in the Emerging Local Plan
INDICATIVE RESIDENTIAL SCHEMEJTP Architects have prepared a feasibility study that demonstrates the undoubted development potential of the site.
203residentialunitsarrangedaccrossfourblocks.
Sharedparkingareaonapodiumabovethecarpark.
Majority of apartments designed to be dual aspect and manyunitsbenefitingfromviewsovergreenspace.
134carparkingspaces.
Blocksarrangedupto10storeys.
Landscaped outside area to create a vast amenity space for residents and the local community.
Please note that the plans provided by the agents are to illustrate the development potential of the site. The delivery will be subject to obtaining the necessary planning consent. Prospective purchasers are encouraged toundertaketheirownduediligenceandformulatetheirowndevelopmentsolutioninformingtheiroffer.
7
11
4
5 85
3
1
92
8
2
8 9
102
11
48
6
A
B
C D
DAWLE
Y RO
AD
KEITH ROAD
NORTH HYDE ROAD
1. Existing entrance / vehicular entrance2. New pedestrian entrance3. Arrival space4. Focal building5. Active frontage6. Podium gardens
7. Taller buildings towards railway8. Existingtreebuffer9. Public footpath10. Pedestrian gated entrance11. Roof terraces
AreasforminglinksinGreenChains
Conservation areas
Grand Union Canal
Green belt
Nature conservation sites of Metropolitan or Borough Grade I importance
Nature conservation sites of Borough Grade II or local importance
Hotel growth location
Officegrowthlocation
Locallysignificantemploymentlocation
Strategic industrial location
Site allocations, minerals and transport designations
Town centre
Summary of Proposed Changes to Land Designation in the Emerging Local Plan
TITLE
Freehold.
VAT
We understand that the property is elected for VAT.
METHOD OF SALE
TheFreeholdinterestisofferedforsalebywayofinformaltender.
Offersareinvitedonanunconditionalbasis,subjecttocontract only.
Developersareaskedtoexplicitlystatetheirassumptionsmadeinproducingtheoffer,providingfulldetailsoffinancialaspectsincluding timing of payments, details of any conditions and proof of funding for the transaction.
Please also clearly state and identify any due diligence that you will require to be carried out and the timescale within which you anticipate achieving exchange of contracts and contractual completion.
FURTHER INFORMATION
Access to a data room can be provided to interested parties.
VIEWINGS
Viewings can be arranged by appointment only.
CONTACT
Daniel McDonaghD:02032964674M:[email protected]
Grant BeasleyD:02032964037M:[email protected]
David HaynesD:02071525373M:[email protected]
Andy DickensD:02071525030M:[email protected]
MisrepresentationAct1967:(i)Althoughmaximumcarehasbeentakentoensuretheaccuracy of the information contained within this report, such information is subject to changeandconfirmation.(ii)NoliabilitywillbeacceptedbyCushman&WakefieldLLPforany loss arising from information contained within this report as it may have been provided byathirdpartysourceandwillrequireverification.(iii)Thisreportprovidesageneraloutlineonly for the guidance of prospective purchasers and does not constitute the whole or any partofanofferorcontract.(iv)NoemployeeofC&WLLPhastheauthoritytomakeorgiveany representation or warranty or enter into any contract whatever in the relation to the property. (v) Rents and prices stated within this report may be subject to VAT. Designed and producedbyTheLookingGlassDesignwww.tlgd.co.uk.September2018.
