1 LYON ROAD | Walton on Thames | | KT12 3PU

GREATER WAREHOUSE & OFFICE INVESTMENT 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 2 INVESTMENT SUMMARY

• single let 15,525 sq ft (1,443 sqm) warehouse & office property with 22 car spaces.

• Situated on the established Hersham Trading Estate being some 4 miles from J10 of the M25

• Let to Advanced Logistics for Aerospace (UK) Limited, (Dun & Bradstreet rating 2A 2 - lower than average risk), a wholly owned subsidiary of ALA SpA, an Italian Public Limited Company.

• Tenant holds a FRI 10 year lease from 25th March 2018 granted inside the Landlord & Tenant Act.

• A Tenants only break option on 25th March 2023, subject to no less than 6 months’ prior notice.

• One upward only rent review to market value on 25th March 2023.

• Passing rent of £155,250 per annum, reflecting £10.00 per sq ft overall.

• Site area of 0.36 acres which reflects a site cover of approx 59%.

• Freehold

• VAT elected. We understand the purchase can be treated as a Transfer of a Going Concern (TOGC).

• Reversionary rent and strong levels of occupational demand in the area, thereby providing excellent prospects for future rental growth. We are instructed to seek offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT, which reflects a net initial yield of 6.4% and a low capital value of £145 per sq ft. This assumes purchaser’s costs of 6.6%. 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 3

TRAVIS PERKINS

STORAGE MART Rugby Club GRAHAMS SCREWFIX HOWDENS TESCO EXPRESS

PET MATE

EMBER 1 LYON ROAD KOKORO CENTRE

To A38 HERSHAM M25 STATION 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 4 LOCATION

Hersham is part of Walton on Thames, a prosperous Surrey town and is situated in the affluent approximately

16 miles (26 km) south west of Central London and located between and .

There is good connectivity into the area, benefitting from excellent access to Central London and the national motorway network being located some 4 miles (6 km) north of Junction 10 of the M25 motorway, thereby providing access to the M3, M4, M23 and M40 motorways.

The area also benefits from being in close proximity to the A3 which provides a direct access to London to the north eastand HERSHAM to the south west.

Hersham mainline railway station is within 100 metres of the property with an approximate journey time of 30 minutes to London Waterloo. The town is also well connected to Heathrow and Gatwick Airports, located 9 miles (14.5 km) to the north and 27 miles (46 km) to the south east respectively. TOWNS MILES KM Approx Approx

Woking 11 17.5

Guildford 14 22.5

Central London 16 26

Reading 33 53

ROAD

M25 motorway J10 4 6

A3 3 5

M3 motorway J1 6 10

M4 motorway J4B 14 22.5

CONNECTIONS

Hersham Mainline Station 0.06 0.1

London 9 14

London 27 46 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 5 SITUATION

The property is situated at the entrance of the Hersham Trading Estate, fronting onto Road less than 100 metres from Hersham Mainline Railway Station. Also, within 400 metres of the Barley Mow which connects the Esher Road (A244) and the Hersham by-pass and Queens Road (A317). Occupiers on the Hersham Trading Estate include Howdens, Kokoro, Tesco Express, Screwfix,

Graham Plumbers Merchant and Pet Mate. SITE

The site totals approximately 0.36 acres (0.146 hectares) with an existing site coverage of circa 59%.

Not to scale - for indicative purposes only

1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 6 DESCRIPTION

The property comprises a detached 2-storey warehouse and office building constructed in the late 1950’s / early 1960’s. The warehouse is of a concrete frame with brick elevations under a pitched overclad roof. The exterior of the front of the building has been re-clad in an attractive steel cladding system.

The specification is summarised as follows:

WAREHOUSE OFFICES EXTERNAL

• Ground floor comprising 7,632 sq ft • First floor comprising 7,492 sq ft • Forecourt parking for 13 cars

• 3 phase power • Part comfort cooled units • 9 parking spaces to the side of the

• Electric panel rolling shutter door • Gas fired central heating property

• Fluorescent lighting • Partitioned private offices

• Male and female WCs • Kitchen

• Male and female WCs

ACCOMMODATION The approximate gross internal areas are as follows:

Sq Ft SqM

GROUND

Warehouse 7,632 709

Store 175 16

Garage Store 226 21

FIRST

Office 7,492 670

TOTAL 15,525 1,442 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 7 TENURE COVENANT PROFILE

The property is held Freehold. ADVANCED LOGISTICS FOR AEROSPACE (UK) LIMITED TENANCY The business was incorporated in 1988 and is an international distributor and supply chain services provider for the aerospace industry. The company has a Dun & Bradstreet rating of 2A 2 - lower than The property is let in its entirety to Advanced Logistics for Aerospace (UK) Limited (company average risk. registration number 02265000), a wholly owned subsidiary of ALA SpA, an Italian Public Limited

Company. Y/E 31.12.17 Y/E 31.12.16 Y/E 31.12.15

The property is held on a full repairing and insuring lease for a term of 10 years from 25th March Turnover £12,626,853 £13,334,387 £12,099,143 2018, expiring on 24th March 2028. There is a Tenant’s only option to determine the lease at the fifth Pretax Profit / (Loss) £374,642 (£837,933)* £854,986 anniversary of the term, ie 25th March 2023, subject to no less than 6 months’ prior written notice. Tangible Net Worth £5,263,498 £4,937,593 £4,567,777

The lease has been granted inside the security of tenure provisions of the Landlord & Tenant Act 1954, * Annual results mainly due to exceptional items as detailed in the company accounts. part II, as amended.

The current passing rent is £155,250 per annum (£10.00 per sq ft overall). The Tenant has been in ALA (ULTIMATE PARENT COMPANY) occupation of the building since 1998. ALA is an Italian specialist providing supply chain solutions for C-class components, indirect materials There is one upward only rent review on the 25th March 2023 to open market value. and a variety of aerospace specific parts to the Airframe, Engine, Systems and MRO of both Commercial and Defence Aerospace sectors. Their Head Office is based in Naples, Italy with logistics plants and operating companies and sales offices in Italy, France, UK, Asia and North America. 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 8 OCCUPATIONAL MARKET

The warehouse and industrial market in the south west Greater London market is suffering from a lack of supply similar to most other industrial markets around the M25. This has led to rent levels continuing to rise, exceeding £13 per sq ft in locations around the M25 sector, whilst an active demand suggests that further rental increases are expected.

Size Rent Term Date Tenant Address Sq Ft £psf (break)

May 2018 ETS Cable Components Unit 43, Barwell Business Park 11,667 13.00 10 years Mar 2017 Aztec Events Unit B, Gateway 3 14,562 13.46 10 years Davis Road

Feb 2017 Selco Trade Centre Limited Compass Business Park 51,889 12.50 10 years Davis Road

Oct 2017 Big Smoke Brew Sandown Park Industrial Estate 4832 14.49 5 Years

INVESTMENT MARKET

The Greater London investment market continues to show strong demand from investors who are attracted by the continuing rental growth prospects offered by limited supply levels.

Date Address Area WAULT Price Initial Capital Vendor Purchaser Sq Ft (to break) Yield Value

Aug 2018 Artis Glass Works 28,148 2.0 £3,300,000 5.37% £117 John Artis Private

Jan 2018 Sandown Industrial Park 58,083 n/k £14,075,000 3.67% £242 Milton Group Elmbridge Borough Council Esher

June 2017 Sutton Trade Park 14,470 n/k £4,285,000 4.49% £296 Private Private Mar 2017 Sky Business Park 27,960 n/a £6,320,000 4.70% £226 Private Private 1 LYON ROAD

Hersham | Walton on Thames | Surrey | KT12 3PU Page 9 ENERGY PERFORMANCE CERTIFICATE

The property has an EPC rating of D (88). A copy of the EPC is available on request. VAT

We understand the property is elected for VAT, however it is anticipated that the transaction will be considered as a Transfer of a Going Concern (TOGC). PROPOSAL

We are instructed to seek offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 6.4% and a low capital value of £145 per sq ft. This assumes normal purchaser’s costs of 6.6%.

DATA ROOM

Access to a marketing data room is available on request.

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

BOB CATTANEO ADAM SOLIMAN ANDY ARMIGER DD: 020 8481 4744 DD: 020 8481 4742 DD: 020 8481 4741 M: 07966 478472 M: 07714 759701 M: 07973 207424 [email protected] [email protected] [email protected]

Cattaneo Commercial 19-23 High Street MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Kingston upon Thames Cattaneo Commercial for themselves and for the vendors of this property whose agents they are give notice that: a) theparticulars are set out as general outline only for the guidance of Surrey intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy KT1 1LL themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Cattaneo Commercial has any authority to make or give any representation or www.cattaneo-commercial.co.uk warranty whatever in relation to this property.