LONDONURBANLOGISTICS INVESTMENT
24–50 OSSORY ROAD BERMONDSEY LONDON SE1 5AN
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
SUMMARY
• A rare opportunity to acquire an ultra-prime modern single let trade counter/industrial warehouse in a central London location.
• Well located in the London Borough of Southwark, approximately 3 miles south of Central London.
• Conveniently located c. 0.9 miles from South Bermondsey Railway Station and 1.5 miles to Elephant & Castle Underground and National Rail stations (Northern Line & Bakerloo Line and Thameslink).
• The premises is configured as two industrial units utilised by a single tenant, totalling 22,991 sq ft GIA.
• The site is fully let to Rexel UK Limited, representing a ‘minimum risk of business failure (4A1).
• Currently producing a very low passing rent of £307,800 per annum equating to £13.39 per sq ft.
• Estimated Rental Value in excess of £20 per sq ft in its current layout. Opportunity for further growth subject to reconfiguration into two industrial units.
• 1.5 years to first break and 9.5 years to expiry.
• Freehold.
• Potential residential redevelopment opportunity, subject to obtaining consents.
We are instructed to seek offers in excess of £8,875,000 (Eight Million, Eight Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects a capital value of £386 per sq ft and a Net Initial Yield of 3.25%, assuming purchaser’s costs of 6.68%.
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
LOCATION
Bermondsey is a densely populated south-eastern suburb of Central London, located within the Borough of Southwark. The property lies in a mixed-use area and is located just 3 miles south of Central London.
Ossory Road is located just off the A2 (Old Kent Road). The area benefits from excellent transport links to both the City, West End and to the south. The Old Kent Road also provides direct access to Junction 2 (Darenth Interchange) of the M25, approximately 15 miles to the east, while the London Docklands and London City Airport is some 3 miles to the north.
A2
Ossory Road
A3
A3
A2
A2
A2
A24
A23
A11
A13
A205
A205
A205
A501
A1020
MARYLEBONE
CLARKENWELL
POPLARMAYFAIR
CAMBERWELL
DULWICH
Blackheath
Regents Park
Hyde Park
Green Park St James’s
Park
Battersea Park
ClaphamCommon
BrockwellPark
Peckham RyePark & Common
BurgessPark
PECKHAM
LAMBETHVICTORIABELGRAVIA
WEST END
CITY OFLONDON
CANARYWHARF
London City Airport
WOOLWICH
HERNE HILL
BATTERSEA
CLAPHAM
PIMLICO
R
I VE R T H A M E S
VictoriaElephant & Castle
Canada Water
South Bermondsey
Queens Road Peckham
Nunhead
New Cross
Denmark Hill
BrockleyClaphamJunction
Stockwell
Oval
GLE
NG
ALL R
OA
D
B215 B
215
OS
SO
RY
RO
AD
OL
MA
R S
T.
A22
08
A2
A2
BIANCA RD.
LATONA RD.
24-50 Ossory Road
SITUATION
24-50 Ossory Road is accessed directly off the A2 (Old Kent Road), approximately 100m to the north.
Ossory Road is superbly located for companies serving Central London as well as the South London boroughs. Nearby occupiers include Shurgard Self Storage, Damien Hirst Studios, Tesco, Asda, B&Q, Halfords, Currys PC World, Edmundson Electrical, Plumb Center, Selco Builders Warehouse, B&M and Southern Wood Retail Park where traders include Argos, DFS, Ocado and Maplin.
South Bermondsey railway station is under a mile away and provides a direct service to London Bridge (5 minutes), while both Elephant & Castle stations (Northern & Bakerloo lines and National Rail) are within walking distance. In addition, the subject premises is approximately 750m from the proposed Burgess Park Old Kent Road 1 Bakerloo Line station (at the junction with Dunton Road) and approximately 1km from the prospective Asylum Old Kent Road 2 Bakerloo Line station (at the junction with Asylum Road). Frequent bus services on the Old Kent Road provide frequent access towards Elephant & Castle and Central London (53, 172 and 453 routes).
PROPOSED BAKERLOO LINE EXTENSION
OSSORY ROAD
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
DESCRIPTION
The property comprises two modern industrial units combined which are utilised as a single warehouse, totalling 22,991 sq ft GIA. Specifications include:
• Portal steel frame construction
• High-quality first floor offices in both units
• Trade counter
• Three level access roller shutter loading doors
• Concrete surfaced secured yard
• 60% site coverage
• 6.0m eaves height
ACCOMMODATION
Unit sq ft sq m1 13,879 1,289.442 9,111 846.48
Total 22,991 2,135.93
SITE
The site occupies an area of approximately 0.36 hectares (c. 0.88 acres) which represents a site cover of approximately 60%. The red line site boundary is shown for illustration purposes.
CURRENT USE
Use Class B8 – Storage & Distribution with ancillary trade counter.
TENURE
Freehold.
Centre
GlengallBusiness
Works
5213
1
El Sub Sta
4
OSSO
RY RO
AD
Line Of Posts
ESS
24-50
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
TENANCY
The property is let to Rexel UK Limited (00434724), Previously Hagemeyer (UK) Ltd on fully repairing and insuring terms for a period of 25 years from 4th May 2004 expiring on 3rd May 2029.
The current passing rent of £307,800 per annum, reflects a low rent of £13.39 per sq ft.
The lease is subject to 5 yearly rent reviews, the next being 25 March 2021, and the final being 25 March 2026.
The tenant is entitled to early determination on 31 March 2021, or on 31 March in any subsequent year by not less than six months’ notice.
COVENANT INFORMATION
Rexel UK was established in 1947 and specialises in the distribution of electrical supplies to professional users and distributes products and services in the areas of automation, technical supply and energy management. The Rexel Group is headquartered in France and has 2,000 sales outlets across 32 countries and 27,000 employees.
Rexel UK Limited has a Dun & Bradstreet rating of 4A 1 representing a ‘minimum risk’ of business failure.
The company recorded the following accounts over the last 3 years:
Rexel UK Limited 31 Dec 2018 31 Dec 2017 31 Dec 2016
Sales Turnover £707,247,000 £739,632,000 £765,011,000
Profit/(Loss) before Taxes (£4,441,000) £9,530,000 (£1,826,000)
Shareholder’s Funds £76,458,000 £57,116,000 £43,995,000
Net Current Assets (Liabilities) £91,740,000 £99,281,000 £63,936,000
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
INVESTMENT MARKET
Date Property Size (sq ft)
Term Certain (Years)
Capital Value
Capital Value (PSF)
Net Initial Yield
Sep-19 Sergeants Industrial Estate, Wandsworth 51,958 2.2 £28.15 £542 2.3%
Sep-19 B&M, 593-613 Old Kent Road, Bermondsey 13,595 6.0 £10.25m £754 2.41%
Feb-19 Matthew Clark, Central Way, Park Royal 78,619 4.0 £34.5m £439 3.23%
Jan-19 Metropolitan Police, 25-33 Parkhouse Street, Camberwell 15,634 0.5 £8.5m £544 N/a
Oct-18 14-18 Verney Road, Bermondsey 22,224 9.0 £12.0m £540 3.00%
May-18 2-10 Ossory Road, Bermondsey 10,667 Vacant £5.5m £515 N/a
May-18 The Gate Centre, Syon Gate Way, Great West Road, Brentford 82,419 5.5 £34.3m £416 3.15%
Mar-18 Units 1-3, 15 Havelock Terrace, Battersea 16,347 4.1 £8.569m £524 3.20%
Feb-18 Units 1-4, 221 New Kent Road, Bermondsey 14,587 Vacant £6.6m £452 N/a
Sep-17 Zennor Road Industrial Estate, Balham 67,001 3.0 £30.015m £448 2.89%
OCCUPATIONAL MARKET - PRIME INDUSTRIAL RENTS
4
5
M25A232
A222
A205
A224
A233A22
A23
A20
A21
A21
A2
Bromley
Croydon
London City Airport
Mitcham
Victoria
Sutton
Greenwich
Forest Hill
Dulwich Village
West Norwood
Crystal Palace
West End City of London
Wandsworth
£24.00
Battersea
£30.00
Canning Town
£25.00
Bermondsey
£24.00
Brixton
£27.00
Vauxhall
£28.00
Wimbledon
£18.50
24–50 OSSORY ROAD
Tenant Address Date Area (sq ft)
Rent (psf)
Term Certain
Confidential Unit 13 Ellersie Square, London SW2 U/O 18,574 £18.60 5 Years
SMS Network Ltd
Unit 2 Admiral Hyson Industrial Estate, London SE16 Aug-19 5,294 £20.00 2 Years
Dulux Unit 2 Bermondsey Trading Estate, London SE16 Dec-18 5,146 £23.03 5 Years
TLC Electrical Distributors
Unit 1, Chiltonian Industrial Estate, London, SE12 Dec-18 7,000 £18.50 10 Years
Amazon Units 1 -2, Zennor Trade Park, London SW12 Sep-17 4,412 £23.00 3 Years
TLC Electrical Distributors
Unit C4 Six Bridges Trading Estate, London SE1 Sep-17 5,316 £18.00 5 Years
Souvenir Scenic Studios Ltd
Units 60 - 62, T-Marchant Industrial estate, London, SE16 Jul-17 12,339 £18.00 5 Years
DPD UK Unit 5 Mandela Way, London SE1 Feb-17 14,888 £17.50 4 Years
Prime rents in South East London achieved at £24 psf
Very low passing rent of £13.39 psf
5% forecast London industrial rental growth in next 12 months
Industrial stock diminishing leading to increased value
Ideal ‘Last Mile’ location
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
RESIDENTIAL OPPORTUNITY
The subject premises is located within the OKR10 area of the Old Kent Road Area Action Plan, an ‘Opportunity Area’, as designated by the Mayor of London through the London Plan. There is significant regeneration activity proposed for the ‘Old Kent Road Opportunity Area’, as part of the Old Kent Road Area Action Plan (December 2017), including the delivery of 20,000 new homes and 10,000 new jobs by 2037. The site currently has a PTAL of 3 on a scale of 1-6b where 6b is the highest. A PTAL Rating of 3 denotes a ‘Moderate’ level of public transport accessibility.
An indicative feasibility study has been drawn up by architects Broadway Malyan which has received a positive response from the London Borough of Southwark.
The scheme provides 138 residential units over 10 storeys with 2170 sq m (23,360 sq ft) of industrial accommodation situated at ground floor level.
The unit mix provides 9 studios, 63 1-beds, 47 2-beds and 19 3-beds of which 45 units are designated affordable.
For further information in respect of the residential development opportunity please contact the Levy Real Estate residential team.
Kit Haig
D 020 7747 0111
M +44 7854 963 145
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24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS
EPC
TBC.
DATA SITE
Access to the data site will be granted upon request.
SALE
The asset is currently held in a SPV company. It is the vendors preference to sell 100% of the shares in this SPV.
Further information is available upon request.
FURTHER INFORMATION
To arrange an inspection, please contact:
Simon HigginsD +44 (0) 20 7747 0130
M +44 7976 266 [email protected]
Gavin QuinnD +44 (0) 20 7747 0121M +44 7879 408 035
Jeremy GrundyD +44 (0) 20 7747 0131
M +44 7973 667 [email protected]
Will EdgleyD +44 (0) 20 7747 0120
M +44 7748 286 333 [email protected]
INDUSTRIAL INVESTMENT
Messrs Levy Real Estate, for themselves and for the vendors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract: (ii) all description, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements of representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them: (iii) no person in the employment of Levy Real Estate has any authority to make or give any representation of warranty in relation to this property. November 2019.
PROPOSAL
We are instructed to seek offers in excess of £8,875,000 (Eight Million, Eight Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects a capital value of £386 per sq ft and a Net Initial Yield of 3.25%, assuming purchaser’s costs of 6.68%. DRAF T