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JVC European Headquarters, Priestley Way, Staples Corner, London NW2 7BAStrategically Located Prime Industrial and Office Investment
PRIME GREATER LONDON INDUSTRIAL AND OFFICE INVESTMENT
JVCKENWOODPRIESTLEY WAY, STAPLES CORNER
LONDON NW2 7BA
2
PROMINENT NORTH CIRCULAR LOCATION COMPRISING 250,910 SQ FT ON 9.26 ACRES
3
INVESTMENT SUMMARY
• Rareopportunitytopurchaseaprime,well-letindustrialandofficeinvestmentsituatedinacoreGreaterLondonlocationontheM1-NorthCircularintersection
• LocatedatthelandmarkStaplesCorner–accessviaJunction1oftheM1Motorway,theA406NorthCircularandtheA5EdgwareRoad
• ThePropertycomprisesJVCKENWOODUKLIMITED'SHeadquartersfacility,extendingto23,310sqm(250,910sqft)on3.75Hectares(9.26acres)
• ThefacilitiesonsiteincludeamodernDistributionWarehousetogetherwithahighspecification'flagship'AdministrationOfficebuildingandtwowarehouses
• FullylettoJVCKENWOODUKLIMITEDonthreeseparateFRIleasesatatotalcurrentpassingrentof£3,395,873perannum
• Aweightedaverageunexpiredleasetermof9.33yearswithtwooftheleasesexpiringin2025andthethirdin2020
• Twooftheleases,accountingfor90%oftheincome,aresubjecttoafixedfiveyearlyrentalincreasein2020equivalentto2.75%perannum
• JVCKENWOODUKLIMITEDhavesubletvariouspartsofthePropertyaccountingforapproximately58%ofthetotalcurrentrentalincome
• Freehold
• Theopportunityprovidesinvestorsandoccupierswith305m(1,000ft)frontagetotheNorthCircular,adominantorbitalrouteforGreaterLondon
• StaplesCornerwillbenefitfromtheongoing£4.5billionregenerationofBrentCrossCricklewood1miletothenorth-east
Weareinstructedtoseekoffersinexcessof£53,495,000 (Fifty ThreeMillion, Four Hundred and Ninety Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichequatestoaCapitalValueof£213psf.
ApurchaseatthislevelreflectsaNet Initial Yield of 6.00%assumingstandardpurchaser'scostsof5.80%.
4
LOCATION
StaplesCornerisalandmarkroadjunctioninNorthWestLondon.ItislocatedatthestartoftheM1motorwayandsitsatthejunctionoftheA406(NorthCircularRoad),andA5,leadingintoCentralLondon.Assuch,itisoneofthemostprominentandaccessiblecommerciallocationsinNorthLondonandcontinuestodevelopasanestablishedcommercialcentreandretaillocationduetoitsexcellenttransportlinksanddiverseconsumercatchment.
TheM1motorwayisEngland’sprimaryNorth-Southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).TheA406isLondon’sprimaryringroadextendingfromChiswickinthewesttoWoolwichintheeastandtheA5EdgwareRoadrunsfromEdgwareinNorthLondondirectlyintoCentralLondonatMarbleArchtothesouth.AllofthesemajorroutesconvergeatStaplesCorner.
ImmediatelyeastofStaplesCorner,theA406NorthCircularconnectswiththeA41HendonWay.TheA41leadsontotheA501,amajorarterialroute10kmtothesouthoftheProperty.TheA501providesdirectaccesstoEustonandKing'sCrossStPancrasstations(twoofLondon’sprimaryrailstations)immediatelytotheeast,andtheA5EdgwareRoad,MaryleboneandPaddington(theclosestnationalraillinetotheProperty)tothewest.
CricklewoodRailwayStation(1.6milestothesouth-east)formspartoftheBrightontoBedfordThameslinkLine,linkingtoStPancrasInternationalin12minutes.HendonRailwayStation(1.5milestothenorth-west)providesdirectaccesstoLondon,WimbledonandSuttonsouthboundaswellasStAlbansandLutonnorthbound.StaplesCorneralsobenefitsfromregulartubeservicesfromBrentCrossUnderground(NorthernLine)locatedapproximately1.4milesnorth-eastofthesite.
BrentCrossCricklewood,1miletothenorth-eastoftheProperty,isundergoingasignificant£4.5bnregenerationproject,spanninga20yearperiodtodeveloptheareaintoa‘worldclassdestination’.Thiswillseethebuildingof7,500newshomes,4millionsqftofofficespace,improvedtransportlinksandanextensionoftheBrentCrossShoppingCentre.
Distance By Road Km Miles
CentralLondon 9.65 6
M25/M1MotorwayJunction 24.14 15
LondonHeathrowAirport 25.75 16
LondonLutonAirport 43.45 27
LondonStanstedAirport 61.10 38
M25
M25
M23
M1A1(M)
M26
M2
M11
M40
M4
M3
M1
London Stanstead Airport
London Luton Airport
1
4
10
1
1
4
54 6
12
3 577
8
A21
A28
A13
A20 A2
A1
A26
A22
A22
A2299
10
7
9a 9
11
88
9
3
2
31
1
1
3
4
9
14
13
428
29
6
7
8
10
9
4
1
4
16
8 Central LondonCentral London
Gatwick
Ashford
Tonbridge
Folkestone
Crawley
Tonbridge
A413
A414
A406 A501A41
A5
A406
A418
A4010
A5A6
A41
A10
A12A602
A505
Milton KeynesMilton Keynes
Reading
St AlbansSt Albans
Watford
ChelmsfordChelmsford
Reading
Birmingham/The North West
Slough
Watford
Wembley
BedfordBedford
Slough
Heathrow AirportHeathrow Airport Dartford
En�eldEn�eld
Romford
The North
Gatwick
A414
London Stansted Airport
London Luton Airport
Swindon/Bristol
Felixstowe/Harwich
Dover
Nottoscale
5
JVCKENWOOD UK
Staples Corner Business Park
Cricklewood
Paddington
Staples Corner Retail Park
Oxgate Centre
Brent Cross/Cricklewood Regeneration
City of London
Hendon Waterside
Brent Cross Shopping Centre
M1 JUNCTION 1
M1
A5
A5
A406
A406 North Circular Road
A5 Edgware Road
A406
The North/Birmingham
Wembley/Park Royal
6
SITUATION
StaplesCornerbenefitsfromalargecatchmentareaduetotheimmediatelysurroundingresidentialareasintheLondonBoroughsofBrent,Barnet,HarrowandCamdenandthewiderGreaterLondonandNorthM25locationasaresultoftheexceptionaltransportlinks.
ThePropertysitsapproximately400mtothewestofStaplesCornerJunction,inaprominentpositionwitha305m(1,000ft)frontagetotheA406NorthCircularRoad.Junction1oftheM1motorwayandtheA5arelocatedimmediatelytotheeast,bothwithinhalfakilometre.
Thesiteextendstoapproximately3.75Hectares(9.26acres)andisboundedbytheA406tothesouthandBrentReservoir(WelshHarp)tothenorth.AccessisprovidedofftheA5EdgwareRoadviaPriestleyWaytothenorthofStaplesCornerjunction.ThereisanadditionalpointofegressdirectlyontotheA406NorthCircularclosetothejunctionwiththeA5.
Theimmediatesurroundingareaisrecognisedasanimportantcommerciallocation,asevidencedbythenumerousanddiversecommercialoperatorsnearby,includingthosefromtheindustrial,officeandretailwarehousingsectors.
M25/The North
Brent Cross
Wembley
Brent Cross
Park Royal
M11/En�eld/Stansted
North Circular
A5A406
A406
A406
A41
A501M40/Birmingham
M4/Heathrow/Bristol Hammersmith
West End
London
City of London
Marylebone
King’s Cross
Euston
Paddington
A5
Staples CornerRetail Park
Brent CrossShopping
Centre
Staples CornerBP & Oxgate Centre
HendonWaterside
Priestley Way
EDGWARE ROAD
Wembley/Park Royal/A40/M4/
Heathrow
Paddington/Marylebone/West End/Mayfair
Euston/King’s CrossA501/West End/City of London
En�eld/M11/Stansted
Watford/M25/The North
Rail/LondonUnderground Services
Distance from Property
Comments
BrentCrossUnderground(NorthernLine)
1.4miles 17minutestoLondonStPancras
HendonCentralRailStation
1.5miles16minutestoLondonStPancras
5trainsperhour
CricklewoodRailStation
1.6miles12minutestoLondonStPancras
5trainsperhour
LondonPaddingtonRailStation
5.1milesRegularservicestoWestLondon,Thames
Valley,SouthWestEnglandandSouthWales
NottoscaleNottoscale
JVCKENWOOD UK
JVCKENWOOD UK
7
BRENT CROSS CRICKLEWOOD
TheprofileofStaplesCornerissettobenefitfurtherfromtheBrentCrossCricklewoodregenerationplans,whichcoversanimpressiveareaofapproximately350acresimmediatelynorth-eastoftheProperty.
Planningpermissionfortheregenerationprojectwassecuredin2014,forinvestmentpartnersHammersonandStandardLifeInvestorstoundertakea£4.5bndevelopment.Thisisexpectedtocoversixphasesofdevelopment,spanninga20yearperiodandwilltransformtheBrentCrossareaintoa‘worldclassdestination’.ArgentRelatedhasbeenselectedtoworkwithBarnetCounciltodeveloptheBrentCrossSouthsite.
Oncompletion,thedevelopmentwillseethebuildingof7,500newhomes,4millionsqftofofficespace(inturncreatinganestimated27,000fulltimejobs),improvedtransportlinks(includingthecreationofalargerStaplesCornerjunction)andanextensionoftheBrentCrossShoppingCentre.
Thefirstphasesoftheregenerationprojectarenowunderway,havingbeguninMarch2015.Theyinclude:thecreationoftwocommunityparksaswellascreatingthefirstphaseofBrentCrossRiversidePark;improvementstolocalroadsandjunctions;alongwithworkstoprepareforanewtowncentreoneithersideoftheNorthCircular.Thelatterwillbelinkedbyalandmarknew‘LivingBridge’.Furtherinformationavailableatbrentcrosscricklewood.com
In2016,theregenerationisexpectedtofocusontherefurbishmenttoandextensionofBrentCrossShoppingCentre,aswellasdoublingthesizeoftheexistingbusstation.Alreadyin2016,threenewinternationalbrands,includingTeslaMotorsandstationeryshopSmiggle,haveagreeddealstotakespaceinthecentre.
Movingforwards,suchimpressivelargescaleinvestmentandregenerationplansaresettofurtherimprovetheappealoftheareatoadiverserangeofoccupiers.
STAPLES CORNER
StaplesCornerisanhistoricandmajorlandmarkroadjunctionatthestartoftheM1motorway,England’sprimaryNorth-Southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).
Theiconicjunctionhastwolinkedroundaboutsandflyovers,whichconnecttheA406NorthCircular(theprimaryringroadaroundCentralLondon)withtheA5EdgwareRoad(providingdirectaccessintoCentralLondon)andthestartoftheM1motorway.
Asaresult,thejunctionisconsideredanimportantlocation,providingunrivalledaccessacrossandintoCentralLondonaswellastothenorthofEngland.Awideanddiverseoccupiermixhasconsequentlybeenattractedtotheimmediatearea.
IndustrialoccupiersincludeHarrisonVarmaJoineryLtdandMagnetLtdattheOxgateCentre,amodernindustrialestatelocatedashortdistancesouthofthePropertywithfrontagetotheA5.TradecounteroperatorsincludeHowdensJoineryandToolstationatthe1000NorthCircularRoadIndustrialEstateimmediatelysouthofthePropertyacrosstheA5,andHSSHiredirectlyeastofthePropertyattheadjacentAquariusBusinessPark.
RetailwarehouseoccupiersinthevicinityincludeMaplinattheStaplesCornerRetailParkimmediatelyeastofthePropertyandB&QashortdistancesouthalongtheA5atCricklewood.
TheA5ishometoawideanddiverserangeofcommercialoccupierslocatedatvariousintervals,includingaHyundaicarshowroomtothenorthofthesiteandaVauxhallcardealershiptothesouth.
StaplesCorneralsobenefitsfromanexcellentretailprovision,owinginlargetotheBrentCrossShoppingCentre(setforrefurbishmentandextensionthisyearundertheBrentCrossCricklewoodplans)andtheStaplesCornerRetailPark,bothofwhichareimmediatelyeastofthePropertyacrosstheA5.
UndertheBrentCrossCricklewoodregenerationplans(discussedbelow),thereisprovisionfora£200minvestmentinthelocalroadnetwork,includingalargerStaplesCornerjunction.Thiswillsignificantlyimprovetrafficflowandtheappealofthearea.
TheThameslinkrailwayline(stoppingatCricklewoodRailwayStation1.6milestothesouth-eastoftheProperty)runsfromBedfordtoBrighton(throughLondon)andservesbothLondonGatwickAirportandLondonLutonAirport.UndertheBrentCrossCricklewoodredevelopmentplansaThameslinkstationatBrentCrossisproposed.
£4.5BN REGENERATION OF BRENT CROSS CRICKLEWOOD CURRENTLY UNDERWAY TO
CREATE ‘WORLD CLASS DESTINATION’
BrentCrossCricklewoodIndicativeMasterplan
A406
TransformedBrentCrossShoppingCentre
A41
BrentCross/RiversidePark
BrentCross/RiversidePark
FutureHousing
ClaremontPark
PlannedOfficedevelopment(Phase2)
PlannedOfficeDevelopment(Phase1)
£5mCommunityProject(ClitterhousePlayingFields)
LivingBridge
PlannedBrentCrossThameslinkStation
8
DESCRIPTION
The Property comprises four buildings situated on a regular shaped site. The buildings include a modern well specified Distribution Warehouse and ‘flagship’ Administration Office, both built in 2005, along with two additional detached warehouses, ‘Warehouse 3’ and ‘Warehouse 4’, which were subject to a comprehensive refurbishment in 2005.
The four buildings are let in their entirety to JVCKENWOOD UK LIMITED as the company’s UK headquarters and approximately 84% of the accommodation is also sub-let to a diverse range of occupiers, equally attracted by the high profile Staples Corner location.
The buildings sit within a secure site which benefits from 24 hour security and provides ample parking provision to the south west corner, adjacent to the Administration Office building and Distribution Warehouse. Additional overspill parking areas are situated to the south-east corner of the site by Warehouse 3.
9
10
DISTRIBUTION WAREHOUSE
Thisimpressivemodernfacilityprovidesaprimewellspecifieddistributionunitwithancillaryofficescapableofsingleormultipleoccupation,asevidencedbytherecentsublettings.Theancillaryofficeaccommodationatfirstandsecondfloorlevelislinked,viaabridge,tothemainAdministrationOfficebuilding.
Thewarehousebenefitsfromthefollowingkeyfeatures:
• Steelportalframeconstructionwithprofilesheetcladelevations
• Eavesheightrangingfrom11-12.5m
• 12docklevelloadingbays,2levelloadingdoorsanda40kn/sqmfloorloading
• Solidconcretefloormezzaninestructurewithaclearheightunderneathof5.5m
• Extensiveyardarea
Thefirstandsecondfloorofficeaccommodationisofmodernspecificationandincludesfullyaccessibleraised,carpetedfloors,suspendedceilingsandfourpipefancoilair-conditioning.
ADMINISTRATION OFFICE
Thisflagshipofficebuildingisarrangedovergroundandfourupperfloorsonarectangularfloorplate.Thefloorplatesprovideopen-planaccommodationandarecapableofsingleormultipleoccupation.Tothenorthelevation,thePropertyhasacleardoubleglazedcurtainwallprovidingattractiveviewsacrossBrentReservoirandtheWelshHarp.
Thebuildingisfittedouttoahighspecificationwhichincludes:
• Fullyaccessibleraised,carpetedfloors
• Fourpipefancoilair-conditioning
• Suspendedceilingsanddoubleglazedwindows
• Floortoceilingheightof2.7m
• MaleandfemaleWCs
• Three10-person800kgKonepassengerlifts
Atgroundfloorlevelisamoderncanteenfacilityknownasthe‘BoathouseCafé',whichisavailableforusebyalloccupiersonsite.
AccessbetweentheAdministrationOfficeandtheancillaryofficeswithintheDistributionWarehouseisprovidedbyalinkbridgeatsecondfloorlevel,whichisvisibleuponenteringthePropertyviaPriestleyWay.
11
WAREHOUSE 3
Locatedatthesouth-eastcornerofthesite,thisunitisofconcreteframeconstructionwithpartbrick,partblockworkelevationsandsolidconcretefloor.TheunitconnectswiththeadjacentWarehouse4viatworollershutterdoors.
Havingbeenrefurbishedin2005,thespecificationincludes:
• Cleareavesheightofapproximately5m
• 2levelaccessloadingdoorstothewestofthebuilding
• WCfacilities
• Partitionedofficeaccommodation
• CCTVandsurveillancemonitoringsystems
ImmediatelytothesouthoftheunitalongthesouthernboundaryofthePropertyisanoverspillparkingarea,whichcomplimentsthealreadyextensiveparkingprovision.
WAREHOUSE 4
Thisunitisofconcreteframeconstructionwithpartbrick,partblockworkelevationsandsolidconcretefloor.
Alsosubjecttorefurbishmentin2005,thespecificationincludes:
• Cleareavesheightofapproximately4m
• 5electricoperateddocklevelloadingdoors
• Partitionedofficeswithinsinglestoreyofficeblocktothefrontofthewarehouse
• CCTVandsurveillancemonitoringequipment
12
SITE AREA
ThePropertyissituatedonanextremelyprominentandregularshapedsitewithatotalsiteareaof3.75Hectares(9.26acres).
ACCOMMODATION
ThePropertyhasbeenmeasuredbyPlowmanCraveninaccordancewithboththeInternationalPropertyMeasurementStandards(IPMS3)(AdministrationOfficebuilding)andtheRICSCodeofMeasuringPractice(SixthEdition)(DistributionWarehouse,Warehouse3andWarehouse4).
ThePropertyprovidesthefollowingareas:
Building Sq m Sq ft
AdministrationOffices(IPMS3)*
5,163.4 55,579
DistributionWarehouse(GIA)
12,496.8 134,516
Warehouse3(GIA) 2,721.9 29,299
Warehouse4(GIA) 2,927.9 31,516
TOTAL 23,310 250,910
Inadditionthereisafurther4,396sqftofmezzanineaccommodationintheDistributionWarehouse.
*TheAdministrationOfficeprovidesaNIAof5,054.5sqm[54,407sqft].
ThePlowmanCravenmeasuredsurveydatedFebruary2016iscontainedinthedataroomandisintendedtobeassignabletothePurchaser,ifrequired.
13
ADMINISTRATION OFFICE 1ST FLOOR PLAN
DISTRIBUTION WAREHOUSE GROUND FLOOR PLAN
Forindicativepurposesonly
Forindicativepurposesonly
LIFTS AND ACCESS STAIRWELLSTAIRWELL
PRIESTLEY WAY
NORTH CIRCULAR ROAD
FIRST AND SECOND FLOOR OFFICES
MEZZANINE
PRIESTLEY WAY
DOCK LEVEL AND LEVEL LOADING BAY
PRIESTLEYWAY
A406NORTHCIRCULAR
14
Drain
45.7m
45.6m
46.6m
43.5m
46.2m
FBShelterGantry
FB
COLES
THE LINK
NORTH CIRCULAR ROAD
JVC Business Park
1000
North Circular
Road
10
1
719
4
Works
162
3
160
El
Unit
3
Sub Sta
Unit
56
1
Works
Works
721a
7
Works
6 to 8
970
998Unit 6
9
Works
5
158
Works
Unit
1
968
Unit
2
JVC House
El Sub Sta
Works
11
721
966
Shelter
Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1778
TENANCY INFORMATION
TheentirePropertyislettoJVCKENWOODUKLIMITEDonthreeseparateleasesatatotalrentpassingof£3,395,873perannum.
Theleasesaresubjecttofixedrentalincreasesequalto2.75%perannum,compoundedeveryfiveyears.ThenextrentreviewintheDistributionWarehouse/AdministrationOfficeandWarehouse3leasesison25December2020.TheleaseonWarehouse4isnotsubjecttofurtherreview.
ThePropertyhasaweightedaverageunexpiredleasetermof9.33yearstoexpiries.
UnderthetermsofeachleasetheTenanthasanoptiontorenew,foreither10,15or20years(DistributionWarehouse/AdministrationOffice,Warehouse3)andfor5,10,15or20years(Warehouse4).
Demise Tenant Area (sq ft) Lease Start Lease Expiry Rent (pa) Rent (psf) Comments
DistributionWarehouse/AdministrationOffice
JVCKENWOODUKLIMITED
190,095 29/09/2003 24/12/2025 £2,752,377 £14.48
Rentincreasesto
£3,152,225on25
December2020.Outside
theL&T1954Act.
Warehouse3JVCKENWOOD
UKLIMITED29,299 29/09/2003 24/12/2025 £308,102 £10.52
Rentincreases
to£352,861on25
December2020.Outside
theL&T1954Act.
Warehouse4JVCKENWOOD
UKLIMITED31,516 29/09/2003 24/12/2020 £335,394 £10.64
Rentnotsubjectto
furtherreview.Outside
theL&T1954Act.
TOTAL 250,910 £3,395,873
BothaTransformerChamberadjacenttotheDistributionWarehouseandasubstationadjoiningWarehouse4areheldonleases.Furtherinformationheldonthedataroom.
1
2
3
4
TENURE
Freehold.
1.AdministrationOffice
2.DistributionWarehouse
3.Warehouse3
4.Warehouse4
Key
15
SUB-TENANCY INFORMATION
AnumberofpartsofthePropertyhavebeensub-let,asperthesub-tenancyschedulebelow.
Demise TenantArea*
(sq ft)Start date Expiry Date Rent Review Break Dates Rent
Schedule of Condition
Outside the L&T 1954 Act
Comment
AdministrationOffice
4thFloor IIAA 10,433 04/02/2013 24/11/202504/02/201804/02/2023
04/02/201904/02/2022
£177,702 Yes YesAtreviewrentincreasestohigherof£194,369oropenmarketrent
3rdFloorStanmoreQualitySurfacingLimited
10,760 24/06/2014 24/11/202524/06/201924/06/2024
23/12/201823/06/2021
£172,640 Yes YesAtreviewrentisgreaterof£172,640orthepassingrentmultipliedbyRPIMultiplier
2ndFloor Casio 10,200 23/06/2014 24/11/202523/06/201923/06/2024
23/06/2021 £153,000 Yes Yes
1stFloor Casio 10,609 23/06/2014 24/11/202523/06/201923/06/2024
23/06/2021 £159,135 Yes Yes
GroundFloor Casio 5,488 23/06/2014 24/11/202523/06/201923/06/2024
23/06/201923/06/2021
£54,885 Yes Yes
DistributionWarehouse
GFWarehouse Vitabiotics 94,479 07/03/2012 06/03/2019 07/03/201807/03/201507/03/2017
£865,000 Yes Yes07/03/2018review:Rentincreasestohigherof£994,750oropenmarketvalue
GFWorkshop IIAA 6,901 04/02/2013 24/11/202504/02/201804/02/2023
04/02/201904/02/2022
Includedunder£177,702IIAArentabove
Warehouse3
Unit3C.S.LoungeSuitesLimited
29,225 09/07/2012 08/07/2017 N/A 09/07/2015 £182,656 Yes Yes
Warehouse4
Unit4C.S.LoungeSuitesLimited
31,963 09/07/2012 08/07/2017 N/A 09/07/2015 £191,800 Yes Yes
210,058 £1,956,818
*TheareasabovehavebeenprovidedbytheVendor.
16
Inadditiontotheexamplesabove,50,000sqftatNavigationPark,EnfieldiscurrentlyunderoffertoCamdenBreweryatarentintheregionof£10-10.25psfaswellas81,000sqftat1WesternAvenueBusinessPark,atarentconsideredtobe£12.50psfonthewarehouseelement.
Thefollowmapdemonstratesprimeindustrialrentsforsurroundinglocations:
Office Market
AsJVCKENWOODUKLIMITED’soperationsatthePropertyhavetransferredtoEurope,recentsublettingshavehighlightedthestrongoccupationaldemandfromhighprofile,internationalbrandsseekingHeadquartersgradepremisesoutsideofthecoreLondonlocations.
AcrosstheNorthernM25officemarket2015showedanincreaseintakeupwithfiguresprimarilydrivenbyPharmaceuticaldemandgenerallybutmorespecificallyAstrazenica'sacquisitionof850,000sqftinCambridge.Outsideofthis,takeuplevelswerebelow5yearaveragesduetolimitedavailabilityandoptionsforoccupiersacrosstheregion.
Inlightoftheabovetheregionhasexperiencedpositiverentalgrowth.Inparticular,primerentsinWatfordcontinuetoimprovewithSmith&Nephewrecentlyacquiring60,000sqftonCroxleyGreenpaying£23.25psf.Inaddition,limitedsupplyofaccommodationandeverincreasingrentallevelsinthetraditionallycoreofficemarketsintheWestEnd,HammersmithandChiswick,isgeneratingimproveddemandacrosstheregionincludingQuintains,WembleyParkschemewhichisseekingpreletopportunitiesofupto750,000sqft.
AvailabilityofspaceisexpectedtodeclineintheSouthM25marketsasoccupierdemandcontinuestoimproveandintheNorthM25marketsasaresultofconversionstoalternativeuses.ThisisexpectedtocontinueasaresultoftheextensiontoPermittedDevelopmentRights(PDR).
AddressTransaction
DateTenant Lease Term Area (sq ft) Rent (£/psf)
Phase2Origin,ParkRoyalUnderoffer-(CompletionMarch-16)
Wasabi 15Years 65,000 c.£14.25
GParkEnfield(IDIGazeley) Dec-15 Yodel 10Years 97,952 £9.25
Units18and20,Westway,Acton(SEGRO) Dec-15ClassicFineFoods
15Years 24,908 £14.75
UnitsB&C-MowlemTradingEstate,HaringeyIndustrialEstate,Edmonton
Oct-15UKPowerNetwork
15Years 21,420 £9.50
Unit1,GreenfordPark
Aug-15BromptonBike
15Years(BreakinYear10)
85,999 £12.25
Unit32,HorsendenLaneGreenfordUB67RL
Jun-15DeluxeMediaEuropeLtd
15Years 53,958 £11.95
SuiteDC6A/B,StockleyRoad,HeathrowUB79BN
Mar-15AdelieFoodsGroupLtd
15Years 102,900 £13.00
M25
M4
M4
A406
M1
M1(M)
M3
A3
A3
A24
M23
M40
M11
M25
A5
M1
£13.75 psf
£9.75 psf
£10.25 psf
£14.00 psf
£12.50 psf
£12.75 psf
£12.00 psf
£9.00 psf
£13.50 psf
LONDON
GATWICK
LOCATION
StaplesCornerisalandmarkroadjunctioninNorthWestLondon.ItislocatedatthestartoftheM1motorwayandsitsatthejunctionoftheA406(NorthCircularRoad),andA5,leadingintocentralLondon.Assuch,itisoneofthemostprominentandaccessiblecommerciallocationsinNorthLondonandcontinuestodevelopasanestablishedcommercialcentreandretaillocation,duetoitsexcellenttransportlinksanddiverseconsumercatchment.
TheM1motorwayisEngland’sprimarynorth-southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).TheA406istheprimaryringroadaroundCentralLondonandtheA5EdgwareRoadprovidesdirectaccessintoCentralLondon.AllofthesemajorroutesconvergeatStaplesCorner.
ImmediatelyeastofStaplesCorner,theA406NorthCircularconnectswiththeA41HendonWay.TheA41leadsintotheA501,amajorarterialroute10kmtothesouthoftheProperty,whichprovidesdirectaccesstoEustonandLondonKingsCrossStPancrasstations(twoofLondon’sprimaryrailstations)immediatelytotheeastandconnectswiththeA5EdgwareRoad,MaryleboneandPaddington(theclosestnationalraillinetotheProperty)tothewest.
CricklewoodRailwayStation(1.6milestothesoutheast)formspartoftheBrightontoBedfordThameslinkLine,linkingtoLondonStPancrasInternationalin12minutes.HendonRailwayStation(1.5milestothenorthwest)providesdirectaccesstoLondon,WimbledonandSuttonsouthboundaswellasStAlbansandLutonnorthbound.StaplesCorneralsobenefitsfromregulartubeservicesfromBrentCrossUnderground(northernline)locatedapproximately1.4milesnortheastofthesite.
BrentCrossCricklewood,1miletotheNorthEastoftheProperty,isundergoingasignificant£4.5bnregenerationproject,spanninga20yearperiodtodeveloptheareaintoa‘worldclassdestination’.Thiswillseethebuildingof7,500newshomes,4millionsqftofofficespace,improvedtransportlinksandanextensionoftheBrentCrossshoppingcentre.
Distance By Road Km Miles
CentralLondon 9.65 6
M25/M1MotorwayJunction 24.14 15
LondonHeathrowAirport 25.75 16
LondonLutonAirport 43.45 27
LondonStanstedAirport 61.10 38
Leeds 303 188
Manchester 310 193
Birmingham 180 111
HEATHROW
BOREHAMWOOD
EDMONTON
PARK ROYAL
ENFIELD
STAINES
SLOUGH
WATFORD
WEMBLEY
JVCKENWOOD UK
OCCUPATIONAL MARKET
StaplesCornerprovidesawell-establishedcommerciallocationwhichishometoawiderangeoflocal,regional,nationalandglobaloccupiersattractedbythecloseproximitytoCentralLondonandtheexcellenttransportlinksacrosstheRegionsandtherestoftheUK.ThePropertyprovidesaccommodationsuitabletoadiverseoccupierbase,mostofwhomusethisastheirNationalHeadquarters.
Industrial Market
StaplesCorneroffersoccupiersaGreaterLondonlocationwithexcellent,quickaccessintoandacrossCentralLondon(viatheA5andA41)andacrosstheSouthEastandtherestoftheUKviatheM1andM25.
Theoccupiermarketforlogisticsremainsstrong,drivenprimarilybythefastgrowinge-commerceandthirdpartylogisticsbusinessesinaneconomywhereoccupierconfidenceremainspositive.Muchofthedemandremainsfocusedonthebigboxrequirementsbuthealthydemandexistsformid-rangeandcrossdockfacilitiesasoccupiersseektoimprovedistributionnetworksacrosstheUK.
ThecontinuedfallintheavailabilityofGradeAspaceandimprovingheadlinerentsin2015sawanotableincreaseinBuildtoSuitopportunitiesandSpeculativeDevelopmentparticularlyacrosstheSouthEast.SupplyforindustrialisparticularlylimitedintheGreaterLondonmarket,andfortheLondon,SouthEast(andEast)marketsavailabilityhasconsistentlyfallensince2013,with2015levelsdownapproximately23%on2013anddown3%on2014.
PrimeGreaterLondonrentsaregenerallyachievedinParkRoyalandHeathrowwherethedemandandsupplydynamicsaremostprevalentandrecentlettingsinParkRoyalhaveprovenheadlinerentsof£14-14.50psf(+20,000sqft).
SupplyconstraintsareexpectedtocontinueacrossGreaterLondonandtheSouthEastandwithaforecastofeconomicstabilitythroughout2016occupiergrowthisexpectedtoleadtofurtherrentalgrowthintheshorttomediumterm.
ThetablebelowdemonstratesrecentrentaltransactionsinandaroundtheGreaterLondonarea:
17
Thegraphbelowdemonstratessomeofthecurrentprimeofficerentallevelsinnearbylocations:
Prime Office Rents / psf
Retail Warehouse Market
ProximityofStaplesCornertotheNorthCircular,M1,A41andBrentCrosshasattractedhouseholdretailwarehouseoperatorsincludingMaplinatStaplesCornerandB&QalongtheA5atCricklewood.Primerentsforgoodquality,prominentretailwarehousespacehaverecentlyachievedinexcessof£30psf.
Residential Market
AnumberofresidentialschemesareunderwayinthevicinityofStaplesCorner,themostrelevantbeingtheresidentialphaseofBrentCrossCricklewood,whichwillseethedevelopmentof7,500newhomes.Withinthisscheme,capitalvaluesareexpectedtoachieveintheregionof£700psf.
BarrattHomesareintheprocessofdevelopingHendonWatersideinWestHendon,approximately0.75milestothenorthoftheProperty,wherethirtyacresoflandarebeingdevelopedtoprovide2,171newhomes.Thelatestphase,‘Vista’,issetforcompletioninMay2016andalready204ofthe216plotshavebeensold,wheresalesvalueshaveachievedupto£790psf.
OthernearbypipelinedevelopmentsincludeStGeorge’sschemeatBeaufordPark,Collindale(approximately2.5milesduenorthoftheProperty),wheresalesvalueshavereachedinexcessof£700psf.
INVESTMENT MARKET
DespitetheUKrateofeconomicgrowthslowingover2015,economicactivityisexpectedtoremainfirminthelongtermwithaveragegrowthof2.5%peryearforecastoverthedecadeto2025.
Themarketfacedcontinueddownwardpressureoninitialyieldsin2015asimprovedoccupiermarketsdemonstratedpositiverentalgrowth,drivinginvestorreturns.
Theinvestmentmarketissetforcontinuedstabilitythrough2016drivenbythecontinuedtraditionaldemandforprimeassetsfromtheUKInstitutionsandincreasedappetitefromoverseasinvestors.
ThegreatestdemandforofficeandindustrialinvestmentopportunitiesremainsintheGreaterLondonandSouthEastmarketsbutinvestordemandremainsforcoreregionalgeographies.
Industrial Investment Commentary
GreaterLondonlogisticsopportunitieshavebeen,andarecurrently,extremelyrareandassuchbenchmarkyieldsexistinthecorelocationssuchasParkRoyalandHeathrowwithlandconstraints,greatestoccupierdemandandstrongestrentalgrowthprospects.
UKinstitutions,overseasinvestorsandpropertycompanieslookingtogrowlogisticsplatformshavebeenthemostactiveinthesesectorswithprimeyieldsofcirca4%achieved.
InSeptember2015EyreEstatepaid£17.14mfortheGeoPost,Dagenhamassetwhichwasletonanew25yearleasereflecting4.17%andCBREGIrecentlyacquiredtheRygorCommercialsunitinBedfont,withaleasetermof14.8yearsremaining,paying4.78%.
Anumberofrecenttransactionsaresetoutbelow:
Property DateUnexpired
Lease TermSize (sq ft) Price NIY (%)
Cap Val (£ per sq ft)
Purchaser
AllportCargoServices,Hayes Dec-15 11years 105,000 £21,900,000 4.90% £209 SEGRO
XPOLogistics,Maidstone Dec-15 5years 77,841 £6,930,000 6.09% £89CBREGlobal
Investors
RygorCommercials,Bedfont Oct-15 14.8years 22,312 £6,180,000 4.78% £277CBREGlobal
Investors
Geopost,Dagenham Sep-15 25years 65,746 £17,140,000 4.17% £261 EyreEstate
Office Investment Commentary
Fortheofficeinvestmentmarket,investorsentimenthasremainedstrongthroughout2015acrosstheSouthEastwiththeThamesValley,SouthM25andWestLondonmarketsallrecordinghighinvestmenttransactionsvolumes.MostnotabletransactionsincludeAEWEurope’s£325mpurchaseofBathRoad,SloughandM&Gs£167mpurchaseofBedfontLakes,Heathrow.
Transactionsvolumesfor2015acrosstheSouthEasthaveincreasedby31%onthepreviousyear.TheNorthM25regionrecordedthehighest2015increasewith£266mtransacted,anincreaseof81%on2014.Ofnoteincludesthe£33.50mpurchaseofSkanskaUK’sHeadquartersatMapleCrossbyaPrivateMiddleEasternInvestorinNovember.
Withdemandcontinuingforofficestockfromanincreasinglydiverseinvestorbaseandcontinueddownwardpressureonprimeyields,(WestLondonyieldsof4.40%andThamesValleyyieldsof5.10%)investorsarelookingbeyondcorelocationswhereoccupationaldemandexists,alongwithpositivemarketdynamicswhichsupportrentalgrowthinthemediumtolongterm.
£0.00
£80.00
£70.00
£60.00
£50.00
£40.00
£30.00
£20.00
£10.00
Cambridge Chiswick Hammersmith London(Paddington)
London(King’s Cross)
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COVENANT INFORMATION
JVCKENWOOD UK LIMITED(companyregistrationnumber03537298)
JVCKENWOODUKLIMITEDistheUKarmofamultinationalelectronicscompanyheadquartersinYokohama,Japanandwasformedasaresultofthe2008mergerofJVCandKenwoodCorporation.
Bothbusinesseshavewellestablished,successfulglobalbrandswithJVCdatingbackto1927andKenwoodoriginatingfrom1946.JVCKENWOODUKLIMITEDnowpromotesitselfunderonebrandandwiththreespecificdivisionsofAutomotive,PublicServicesandMediaServicesfocusingoncarandhomeelectronics,wirelesssystems,CCTVandRadioEquipment.
JVCKENWOODUKLIMITEDproductsareseeninmanyeverydayautomotiveandhomedevicesandithasalsorecentlyextendeditscontractwithMcLarenMercedestoprovidetheF1TeamwithDigitalRadiosystems,acontracttheyhaveheldsince1991.Thecompanyhasalsorecentlycelebratedasuccessful10yearrelationshipwithGarminwhichbegancombiningnavigationsystemsintointegratedcarmountedAVsystems.Thisworkingrelationshipwillbefurtherenhancedbytherelease,laterthisyear,ofanewmodelwhichsupportsAppleandAndroidproductstoimproveDigitalCockpitSystemsforaglobalmarketplace.
JVCKENWOODUKLIMITEDisHeadquarteredatthePropertyanddistributesconsumerelectronicproductsthroughouttheUK,ChannelIslands,IsleofManandRepublicofIreland.
ThecompanyhasaDun&Bradstreetratingof2A1,whichrepresentsaminimumriskofbusinessfailure.
Furtherinformationcanbefoundatwww.jvckenwood.com
SUB-TENANCY COVENANT INFORMATION
ThePropertybenefitsfromattractiveincomediversificationwithsubtenancyincomeaccountingforapproximately58%oftheannualrent.Abriefsummaryofthesubtenantsissetoutbelow:
Vitabiotics Limited-establishedin1971,Vitabioticshasmanufacturedinnovativehealthcareproductsforover40yearsandin2013becametheUK’sNo.1vitaminsupplementcompany(source:IRIvaluesales52w/e20April2013).HeadquarteredashortdistancefromthePropertyontheA406NorthCircular,thecompanyhascreatedalargeportfolioofproductsattheforefrontofscientificdevelopmentswithwell-knownbrandssuchasWellman,Wellwoman,JointaceandImmunace.
ThePropertyisutilisedasVitabioticsglobaldistributionunit,whichalsoutilisestheAmazonSARLsupplychain.
ThecompanyhasaDun&Bradstreetratingof5A1whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoVitabioticsaccountsfor25%ofthetotalrentpa.
Furtherinformationcanbefoundatwww.vitabiotics.com
Casio Electronics Co Limited-establishedin1957andHeadquarteredattheProperty,CasioistheUKsubsidiaryofTokyobasedCasioComputersCoLtd,amultinationalelectronicsmanufacturingcompany.Casioisoneoftheleadingconsumerelectronicscompaniesintheworld.It'sactivitiescomprisetheimporting,saleanddistributionofawiderangeofproductsincludingcalculators,mobilephones,cameras,musicalinstrumentsandwatches.
ThecompanyhasaDunandBradstreetratingof3A1,whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoCasioElectronicsCoLimitedaccountsfor11%ofthetotalrent.
Furtherinformationcanbefoundatwww.casio.co.uk
Stanmore Quality Surfacing Limited-establishedin1995andHeadquarteredatTheProperty,StanmoreQualitySurfacingLimitedprovidesreinstatementandhighwaymaintenanceservicestoawiderangeofclientsincludingthethreemainutilities,localauthorities,highwaysagenciesandtheprivatesector.KeyclientsincludeUKPowerNetworks,Amey,SkanskaandThamesWater.
ThecompanyhasaDun&Bradstreetratingof2A1,whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoStanmoreaccountsfor5%ofthetotalrentpa.
Furtherinformationcanbefoundatwww.sqsltd.co.uk
IIAA Limited -InternationalInstituteforAnti-Ageingwasestablishedin1994andisHeadquarteredatTheProperty.IIAAisaleadingproviderofeducation,servicesandproductstotheprofessionalbeautyindustryandsuppliesthousandsofsalonsaroundtheUKandIrelandwiththreemajorbrands:Environ®;JaneIredale®;andtheAdvancedNutritionProgramme®.
Thecompany,hasaDun&Bradstreetratingof2A3.ThesubleasetoIIAAaccountsfor5%ofthetotalrentpa.
Furtherinformationcanbefoundatwww.iiaa.eu
CSL Limited-TradingasSofologysincethebeginningof2016,thebusinesswasestablishedin1983andisafamilyownedretaileroffurnitureandlighting.HeadquarteredinGolborne,Warrington,thecompanyoperatesthrough31retailstoresand6distributioncentresacrosstheUK.ThenearestshowroomislocatedatBrentCrossRetailParktotheeastoftheProperty.
ThecompanyhasaDun&BradstreetratingofO4.ThesubleasetoCSLaccountsfor11%ofthetotalrentpa.
Furtherinformationcanbefoundatwww.sofology.co.uk
OVER 40% OF THE INCOME IS SECURED AGAINST SUB TENANTS THAT HAVE BEEN ASCRIBED A MINIMUM RISK OF BUSINESS FAILURE
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EPCs
EnergyPerformanceCertificatesareavailableforeachbuildingandprovideEPCratingsrangingfromC(61)toD(99).Furtherinformationincludingrecommendationreportsarecontainedinthedataroom.
ENVIRONMENTAL
WSPhaveundertakenaPhase1EnvironmentalSurveydatedFebruary2016whichiscapableofbeingassignabletothePurchaser.Furtherinformationisavailableonrequest.
VATThePropertyiselectedforVATpurposesandthereforeiscapableofbeingtreatedasaTransferofGoingConcern(TOGC).
CAPITAL ALLOWANCES
CapitalAllowancescanbemadeavailableaspartofthepurchase.Furtherinformationavailableonrequest.
DATA ROOM
AnelectronicdataroomhasbeencreatedcontainingrelevantTitle,Lease,SubleaseandPreMarketingDueDiligenceinformation.PleasecontactCushmanandWakefieldtoarrangeaccess.
PROPOSAL
Weareinstructedtoseekoffersinexcessof£53,495,000 (Fifty Three Million, Four Hundred and Ninety Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichequatestoaCapitalValueof£213psf.
ApurchaseatthislevelreflectsaNet Initial Yield of 6.00%assumingstandardpurchaser'scostsof5.80%.
INVESTMENT RATIONALE
• ProminentlylocatedlandmarkGreaterLondonlocation
• UnrivalledsituationadjacenttomajorUKtransportlinks
• Modernwellspecifiedindustrialandofficebuildings
• FullyletandbenefitsfromaWAULTof9.33yearstoexpiries
• Incomeriskdiversifiedasaresultofsublettingsaccountingfor58%ofthetotalincome
• Ongoing£4.5bnregenerationprojectadjacenttothePropertyatBrentCrossCricklewood
• Highdiversityofincomeacrossthefourbuildings
• Rangeofsurroundinguseswithpotentialtoaddvaluethroughchangeofuse,subjecttotheusualplanningconsents
CONTACT
Forfurtherinformation,toarrangeaninspection,orforaccesstothedataroom,pleasecontactoneofthefollowing:
MISREPRESENTATIONCLAUSECushman&Wakefieldgivesnoticetoanyonewhomayreadtheseparticularsasfollows:1.Theseparticularsarepreparedfortheguidanceonlyofprospectivepurchasers.Theyareintendedtogiveafairoveralldescriptionofthepropertybutarenotintendedtoconstitutepartofanofferorcontract.2.Anyinformationcontainedherein(whetherinthetext,plansorphotographs)isgiveningoodfaithbutshouldnotberelieduponasbeingastatementorrepresentationoffact.3.Nothingintheseparticularsshallbedeemedtobeastatementthatthepropertyisingoodconditionorotherwisenorthatanyservicesorfacilitiesareingoodworkingorder.4.Thephotographsappearinginthisbrochureshowonlycertainpartsandaspectsofthepropertyatthetimewhenthephotographsweretaken.Certainaspectsmayhavechangedsincethephotographsweretakenanditshouldnotbeassumedthatthepropertyremainspreciselyasdisplayedinthephotographs.Furthermorenoassumptionsshouldbemadeinrespectofpartsofthepropertywhicharenotshowninthephotographs.5.Anyareas,measurementsordistancesreferredtohereinareapproximateonly.6.Wherethereisreferenceintheseparticularstothefactthatalterationshavebeencarriedoutorthataparticularuseismadeofanypartofthepropertythisisnotintendedtobeastatementthatanynecessaryplanning,buildingregulationsorotherconsentshavebeenobtainedandthesemattersmustbeverifiedbyanyintendingpurchaser.7.Descriptionsofapropertyareinevitablysubjectiveandthedescriptionscontainedhereinareusedingoodfaithasanopinionandnotbywayofstatementoffact.TheparticularswerepreparedinMarch2016.
04671 / 020 7355 2500 / taylerreid.co.uk
Jason [email protected]
43/45 Portman Square, London, W1H 6LY
Charles [email protected]
James [email protected]