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CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG RARE OPPORTUNITY TO ACQUIRE A PRIME INNER-LONDON INDUSTRIAL ESTATE
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
RARE OPPORTUNITY TO ACQUIRE A PRIME INNER-LONDON INDUSTRIAL ESTATE
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
INVESTMENT OVERVIEW
• Prime Inner-London Industrial Investment totalling 19,709 sq ft GIA across 13 units.
• Strategically located in Canning Town to provide swift access to Central London, Canary Wharf and the City via the A12 and A13.
• Fully let to seven tenants with a total rental income of £230,705 per annum, reflecting a low average rent of £11.71 per sq ft.
• Average weighted unexpired lease terms of 5.2 years to lease expiries and 2.5 years to lease breaks.
• Rare opportunity to invest in the London industrial market, a sector that offers short, medium and long term growth potential given the ongoing reduction of industrial availability in locations that can offer direct access to Central London.
• Recent letting evidence in other comparable inner London industrial locations achieving record rents of over £20 per sq ft which suggest this asset is highly reversionary.
• We are instructed to seek offers in excess of £4,120,000 (four million one hundred and twenty thousand pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a NIY of 5.25%, assuming purchaser’s costs of 6.55%.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
AERIAL VIEW
OLYMPIC PARKCANARY WHARF
ELECTRA BUSINESS PARK
CANNING TOWN BUSINESS PARK
CENTRAL LONDON
Berkeley Homes/GLA major residential
development comprising 3,500 homes
THE CITY OF LONDON
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
SITUATIONCrescent Court Business Centre is situated on North Crescent and forms part of the Cody Road Industrial Area.
This is an established industrial location providing modern industrial accommodation for companies primarily servicing Central London. Other occupiers within the vicinity include Iron Mountain, Amazon, Sainsbury’s, Toolstation, Screwfix, Menzies Distribution, Viridor, Transport for London, Hire Station & UK Mail.
Locally there has been a large amount of re-development of industrial land to higher value uses, such as residential. This process was accelerated through the regeneration of Bow and surrounds for the 2012 Olympics, the facilities for which were developed on a 550 acre site, much of which was converted from existing industrial accommodation.
Stratford is approximately 3 miles (4.8km) to the north of the estate and benefited greatly from the improved infrastructure created by the Olympic development. Since 2012 Stratford has become a key London commercial centre with a large Westfield Shopping Centre, and a number of new major office occupiers such as the FCA, TFL and BT Sport.
A video outlining the quality of this location and proximity to Central London can be accessed at http://www.zincdigital.com/clients/stonehill-crescent-court/
LOCATIONThe estate is located in the London Borough of Newham, approximately 7.5 miles (12.1 km) to the east of Central London, approximately 2.5 miles (4 km) to the east of Canary Wharf and approximately 5.8 miles (9.3 km) east of The Bank of England.
The location benefits from excellent road communications being located adjacent to the A12 (Blackwall Tunnel Northern Approach) approximately 1 mile (1.6 km) to the west and the A13 (East India Dock Road/Newham Way) approximately 1 mile (1.6 km) to the south.
The national motorway network can be accessed via the M11 approximately 9.7miles (15.6 km) to the north and the M25 approximately 14 miles (22.5 km) to the east.
West Ham Station is less than a mile to the north east of the estate, providing District, Hammersmith & City, Jubilee and DLR services. Stratford Station is 3 miles (4.8 km) to the north and provides DLR and Central Line services. Stratford International also offers swift access to Kings Cross St Pancras (7 mins). Star Lane DLR station is approximately 0.3 miles (0.5km) south east of the estate and has a journey time of 5 mins to Stratford International Station. Journey time from Star Lane Station to Bank Station is approximately 20 minutes via the DLR and Central Lines.
London City Airport is approximately 2.5 miles (4km) west.
A501
A10
A12
A12
A12
A406
A13
A102
A20
A20
A13
A13
A1203
A1
A1
A41
A5
A40
A307
A406
A306
A2
A2
A3
A205
A205
A23
A23
A214
LONDON
STRATFORD
ILFORD
CANARY WHARF
WOOLWICH
WESTMINSTER
BARKING
ROMFORD
RICHMOND
RICHMOND PARK
WEMBLEY
KENSINGTON
WIMBLEDON
HARRINGAYBRENT CROSS
WALTHAMSTOW
BECKENHAM
FOREST HILL
BROMLEY
CROYDON
SUTTON
FULHAM
BRIXTON
SIDCUP
PLAISTOW
POPLAR
A12
A11
A13
A13
A124
A112
B125
B116
WEST HAM STATIONB142
B140
A1011
A1011
A118
A12
STAR LANE STATION
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
DESCRIPTION SITE
UNITS 1-4
UNITS 6-14
The property comprises three terraces of industrial warehouse accommodation arranged over two separate self-contained sites.
The units are steel portal frame construction with external walls that are a combination of masonry cavity walls and profiled steel cladding. The roofs are profiled steel clad with c. 10% roof lights.
Each unit has a single roller shutter loading door.
The total site area is approximately 0.99 acres (0.4 hectares).
Boundary is for indicative purposes only. Unit 5 does not form part of the sale.
Long Leasehold demise
Access rights
KEY:
These units are self-contained and occupied by Viridor Waste Management who also own and occupy Unit 5. Viridor also own the access road to Units 1-4, however, these units benefit from a right of access. The key use on this site is paper recycling.
These units are configured in two terraces around a central courtyard and with a secure gate providing security out of hours if required.
The units provide single storey industrial accommodation with windows at ground and first floor level.
Unit 7 has a mezzanine covering the majority of the floor area which was left by the previous tenant when they vacated and re-let in the same state. This mezzanine is not required to be re-instated by the tenant on expiry.
There are 25 marked car parking spaces servicing these units.
Plan and boundaries indicative purposes only
Crescent CourtBusiness Centre
TENURE
Demise Leasehold Title Number Duration Rent Freeholder Note
Units 1-4 EGL286192
200 years less 5 days from 25 December 1990 (approx 174 years Unexpired Term)
Peppercorn
The Mayor and Burgesses of the London Borough
of Newham
Viridor Waste Management Limited have an
intermediary Leasehold interest.
Units 6-14 EGL305228
200 years from 29 September 1992(approx 176 years Unexpired Term)
Peppercorn
The Mayor and Burgesses of the London Borough
of Newham
Strip of land to East of Units 6-14
TGL35512
200 years from 10 October 2011
(approx. 176 years Unexpired Term)
Peppercorn
The Mayor and Burgesses of the London Borough
of Newham
The estate is held by way of three Long Leasehold interests, outlined as follows:
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
TENANCY SCHEDULE
Unit Tenant Area(Sq Ft)
LeaseStart
Next Review Break Lease
Expiry AWULT AWULTC Rent (pa)
Rent (psf) % Income Inside
L&T Act Comments
Units 1-4 Viridor Waste Management Ltd 5,759 05/04/2014 04/04/2019 2.4 yrs 2.4 yrs £65,000 £11.29 28% Y Viridor own and occupy Unit 5 Crescent Court and the access road to Units 1-5.
Units 1-4 have a right of way over the access road, as well as loading use.
Unit 6BETA Distribution
(South) Ltd t/a London Letterbox
1,445 12/07/2013 11/07/2018 1.7 yrs 1.7 yrs £17,340 £12.00 8% N
Unit 7 Docklands Hydraulics Ltd 2,408 01/01/2015 31/12/2019 3.2 yrs 3.2 yrs £21,500 £8.93 9% N
2,408 sq ft includes 963 sq ft Landlord Mezzanine which the tenant isn’t required to re-instate.
Rent deposit of £6,450 including VAT.
Unit 8 Eurocell Building Plastics Ltd 1,452 06/03/2014 05/03/2019 2.3 yrs 2.3 yrs £17,715 £12.20 8% Y
Six months’ notice required on break. Schedule of condition.
Pre-assignment clause in lease allowing lease to be transferred from Eurocell Building Supplies Ltd to Eurocell Ltd, subject to conditions.
Unit 9 Hornchurch Dry Cleaning 1,438 24/11/2014 25/11/2019 24/11/2019 24/11/2024 8.1 yrs 3.1 yrs £19,000 £13.21 8% N Rent deposit of £11,400.
Break on six months’ notice.
Unit 10 JA Glover Ltd 1,450 24/06/2016 01/06/2020 31/05/2020 31/05/2025 8.6 yrs 3.6 yrs £17,500 £12.07
24%
N Six months’ notice required on break.
Units 11/12 JA Glover Ltd 2,890 01/06/2015 01/06/2020 31/05/2020 31/05/2025 8.6 yrs 3.6 yrs £38,650 £13.37 N Six months’ notice required on break.
Units 13/14 London Tool Hire Ltd 2,868 29/09/2014 29/09/2019 29/09/2019 28/09/2024 7.9 yrs 2.9 yrs £33,000 £11.51 14% N Six months’ notice required on break.
Units 13/14External Storage
London Tool Hire Ltd 29/09/2014 29/09/2019 28/09/2024 7.9 yrs 2.9 yrs £1,000
Tenant has the right to erect a cage outside the units to house gas bottles and non-mechanical equipment for a fixed rent of £1,000 pa. This is a personal
concession and is linked to the continued occupation of units 13 -14.
TOTAL 19,709 5.2yrs 2.5yrs £230,705 £11.71
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
COVENANT INFORMATION
Units Tenant Company Number
Last Published Accounts Turnover Profit/Loss
Before TaxShareholders
Funds % Income Creditsafe Risk Rating Website
Units 1-4 Viridor Waste Management Ltd 00575069 31/03/2015 £411,512,000 £15,025,000 £233,975,000 28% Moderate www.viridor.co.uk
Unit 6 BETA Distribution (South) Ltd t/a London Letterbox 04312971 31/03/2015 n/a n/a £682,093 8% Very Low www.londonletterbox.co.uk
Unit 7 Docklands Hydraulics Ltd 05747247 31/05/2016 n/a n/a £418,876 9% Very Low n/a
Unit 8 Eurocell Building Plastics Ltd 03071407 31/12/2015 £102,661,000 £7,016,000 £8,993,000 8% Very Low www.eurocell.co.uk
Unit 9 Hornchurch Dry Cleaning 03672564 30/11/2015 n/a n/a £100,696 8% Low n/a
Unit 10/11/12 JA Glover Ltd 01333801 30/06/2015 £9,217,175 £2,475 £1,099,259 24% Low www.gloverventilation.net
Units 13/14 London Tool Hire Ltd 07442107 31/12/2015 n/a n/a £419,897 15% Low www.londontoolandlifthire.com
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
London industrial property has demonstrated a consistent level of rental growth in recent years driven by two key trends:
The impact of the above has seen a shortage of available industrial accommodation inside the North and South Circular which in turn has put upward pressure on industrial rents.
The forecast growth in the London population will have a further positive impact on both these trends, putting greater pressure on industrial land for change of use to meet the Mayor of London’s high targets for housing in London, along with retailers wanting to grow their occupational footprint to service the increasing population.
The local area has seen evidence of the change of use from industrial to residential with the recent consent gained by Berkeley Homes and the GLA for the former Parcelforce site to the north of Crescent Court Business Centre.
Below outlines the key comparable leasing transactions in the local market :
LONDON OCCUPATIONAL MARKET PRIME LONDON RENTS
Date Address Size (sq ft) Lease
Achieved Rent£/sf
March 2016 Unit 18 Leyton Business Centre, E10 7BT 2,010 5 years with 3
year TBO £16.30
Sept 2016 Unit 12, Redbridge Enterprise Park, Ilford, IG1 1TY 1,010 3 years £16.50
Sept 2016 9 Bayford Street Business Centre, Bayford Street, Hackney, E8 3SE 1,800 3 years £18.00
Sept 201610 Walthamstow Business Centre,
Clifford Road, Walthamstow, E17 4SX
1,241 5 years £14.50
H1 2016 Leyton Industrial Village (Modern units) 800 – 2,300 Various £18.00 - £24.00
A501
A10
A12
A12
A12
A406
A13
A102
A20
A20
A13
A13
A1203
A1
A1
A41
A5
A40
A307
A406
A306
A2
A2
A3
A205
A205
A23
A23
A214
LONDON
STRATFORD
ILFORD
CANARY WHARF
WOOLWICH
WESTMINSTER
BARKING
ROMFORD
RICHMOND
RICHMOND PARK
WEMBLEY
KENSINGTON
WIMBLEDON
HARRINGAYBRENT CROSS
WALTHAMSTOW
BECKENHAM
FOREST HILL
BROMLEY
CROYDON
SUTTON
FULHAM
BRIXTON
SIDCUP
Walthamstow£14.50 psf
Wembley£17 psf
Park Royal£17 psf
Acton£24 psf
Battersea£24 psf
Hackney£18 psf
Leyton£24 psf
Ilford£16.50 psf
Staples Corner£15.50 psf
Earlsfield£15 (older stock) psf
Ongoing Reduction in available industrial land in favour of higher value uses
Occupier demand to service large conurbations through last mile delivery
The average passing rent on Crescent Court Business Centre is £11.71psf. This is significantly lower than prime rents in other inner London locations as evidenced by the map below.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
INDUSTRIAL INVESTMENT MARKETBERKELEY HOMES/GLA NEW DEVELOPMENT
Address Size (sq ft) Units Purchaser Lot Size NIY Price (psf)
Current Progress Industrial Park, Croydon 31,006 18 Available Quoting
£7.6mQuoting
5.28%Quoting
£245
September 2016 Chessington Industrial Park, Chessington 95,400 10 RLAM £18.07m 4.96% £189
September 2016 Clayton Business Centre, Hayes 35,667 8 CCLA £7.5m 4.60% £210
August 2016 Puma Trade Park, Mitcham 47,599 11 DTZ iM £10.75m 4.89% £226
August 2016 Waxlow Road, Park Royal 51,363 3 CBRE GI £12.7m 4.10% £247
October 2015 Leyton Industrial Village 130,000 93 Capital
Industrial £23m 4.80% £177
Given the positive occupational dynamics within the London industrial market, investor sentiment towards the sector has remained strong during 2016.
We outline below the key recent market transactions, which reflect strong market demand in the sector and prime yields all sub-5.0% NIY:
Berkeley Homes and the Greater London Authority have entered into a Joint Venture to build 3,500 homes and a new community on the former Parcelforce depot to the north of the subject site. The aim is to complete the first homes in early 2019.
This development will provide a mix of affordable, private and build to rent with the aim of creating a new community in the area. The masterplan also includes 4.5 acres of open space and public realm and a secondary school for 1,000 pupils.
A major re-generation scheme of this nature will not only improve the local infrastructure and amenities for the commercial tenant base but puts further pressure on availability of industrial land in Newham.
Furthermore, Newham council’s encouragement of this development sets a positive precedent for conversion of commercial land to residential to help meet Newham’s new home target, increasing the potential for higher value use on Crescent Court Business Centre, subject to planning.
For further information see:
http://www.berkeleygroup.co.uk/press-releases/2016/new-era-beckons-for-east-end-site
Subject Site
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
EPCs
VAT
DATA ROOM
PROPOSAL
Copies of the EPCs are available and can be provided on request.
The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).
A website containing further information relating to the sale is available Access can be provided upon request.
We are instructed to seek offers in excess of £4,120,000 (four million one hundred and twenty thousand pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a NIY of 5.25%, assuming purchaser’s costs of 6.55%.
CONTACT
WILL DAVIES MRICS DAN GRANT MRICS
PARTNER PARTNER
M
D
A
M
D
A
E
W
E
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07919 002 707
020 3198 4447
56-60 St. John Street, London EC1M 4HG
@stonehillptrs @dgstonehillptrswilldavies dangrant
07956 573 297
020 3198 4446
56-60 St. John Street, London EC1M 4HG
stonehillpartners.co.uk
stonehillpartners.co.uk
For further information or to arrange an inspection, please contact:
Important notice: These particulars are not an offer or contract, nor part of one. The sole purpose of these particulars is to provide outline information on this property to prospective purchasers or tenants (as applicable), who are solely responsible for making their own investigations and seeking independent advice, including the costs of doing so, and forming their own view as to the condition of the property and any related fixtures, fittings, services, equipment, plant and machinery, its and their fitness for their requirements and the accuracy and completeness of the statements herein. These particulars do not constitute any recommendation or offer to enter into any contract regarding this property and neither Stonehill Partners Limited nor any of its employees, agents or representatives guarantees the accuracy or completeness of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein. You should not rely on statements by Stonehill Partners Limited in the particulars or orally or in writing (each being a “Statement”) as being factually accurate about the property, its condition or its value. Neither Stonehill Partners Limited nor any of its employees, agents or representatives have any authority to make any representations about the property, and accordingly any Statement given is entirely without responsibility or liability on the part of Stonehill Partners Limited, the seller(s) or lessor(s) or any of its or their employees, agents or representatives. Any photographs provided show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only and you must satisfy yourself as to their accuracy. Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. You must find out by way of your own inspection or in other ways that these matters have been properly dealt with and satisfy yourself as to the accuracy of all such information through your own investigations. To the extent that any third party information or Statement is included within these particulars, this information has been received and passed on by Stonehill Partners Limited in good faith but without liability or responsibility of any kind. VAT may be chargeable in addition to sums referred to herein and may be subject to alteration. November 2016.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
