Ridgeway Distribution Centre, Ridgeway Iver SL0 9HX

Ridgeway distribution centre, Ridgeway Iver SL0 9HX

PRIME freehold multilet Distribution Centre

On the instructions of HEATHROW AIRPORT LONDON M4 J15 READING

J5 M4

M25 THORNEY LANE NORTH

J1 M40

1F 1E 1D 1C 1G 1B

2C 1A 5A 5B

2A/B 5C 3B 5D 3A EXECUTIVE SUMMARY • An unbroken, core, Western Corridor multi-let industrial/ distribution park which is excellently located for access to the M4, M25, M40, Heathrow International Airport, London markets and the national motorway network.

• The Property comprises of 14 warehouse/distribution units which provide a range of unit sizes from 12,338 sq ft to 48,362 sq ft and comprises a total area of 381,740 sq ft.

• The units all benefit from separate parking and loading areas and are arranged in a combination of self-contained units with secured yards and more traditional terraced accommodation.

• Freehold.

• Ridgeway Distribution Centre extends to 7.66 hectares (18.92 acres) providing a site cover of 46%.

• Ridgeway Distribution Centre is let to 9 tenants on 12 leases with a total passing rent, including rent top ups on Units 2A/B and 3B, of £3,153,646 per annum reflecting a low average rent of £8.26 per sq ft.

• 65% of the contracted rent is secured against covenants with Credit Safe ratings of greater than 90/100.

• The Estate benefits from an average weighted unexpired term to expiry, to include rent top ups of 5.90 years and 3.00 years to earliest termination.

• We have been instructed to seek offers in excess of £39,000,000 (Thirty Nine Million Pounds), subject to contact and exclusive of VAT which reflects an attractive Net Initial Yield of approximately 7.65%, assuming standard purchaser’s costs of 5.80%.

Ridgeway DISTRIBUTION CENTRE, Ridgeway, Iver SL0 9HX EXECUTIVE SUMMARY / LOCATION / Communications / SITUATION / SITE PLAN / TENANCY SCHEDULE / COVENANTS / SERVICE CHARGE / COMPARABLES / PROPOSAL 2

M40

M1 M25 DENHAM A406 A355 1A SOUTH 16 1A 1 HARROW COOKHAM SOUTH RUiSLIP A404 A40 WEMBLY STOKE POGES IVER UXBRIDGE HEATH RIDGEWAY A4007 SWALLOW ST DISTRIBUTION WOOD LN BURNHAM CENTRE GREENFORD IVER NORTH ACTON MAIDENHEAD SLOUGH HIGH ST LADBROKE GROVE

A408 HAYES GRAND UNION LANGLEY 7 CANAL PARK RD 9A A412 M4 15 LONDON LONDON ROAD (A4) A404 DOMEY 6 B470 HIGH ST 8,9 LANGLEY (M) HAMMERSMITH 4 M4 4B M4 AND FULHAM A308 4B 3 9,8 ETON 5 2 1 CHISWICK A4 15 A312 CRANWORTH DATCHET WINDSOR COLNBROOK A3004

14 HEATHROW A30 ISLEWORTH A205 AIRPORT LOCATION M25

Ridgeway Distribution Centre is an 13 A3 established commercial area located adjacent to the M25 motorway 5.44 km STAINES-UPON- SUNBURY ON (3.4 miles) north of Junction 5 of the M4 THAMES EGHAM THAMES motorway at Langley and 8.53A332 km (5.3 A308 1 miles) toBRACKNELL the south of Junction 1 of the M40. M3 A329 Iver is located in the county of VIRGINIA WATER 12 Buckinghamshire, 30.27 km (18.8 miles) 2 SUNNINGDALE west of Central London, 8.86 km (5.5 miles) SHEPPERTON A3 east of SloughA322 and 4.83 km (3 miles) south of Uxbridge.

M3 11 A309 ADDLESTONE WINDLESHAM

BAGSHOT 3 A240

Ridgeway DISTRIBUTION CENTRE, Ridgeway, Iver SL0 9HX EXECUTIVE SUMMARY / LOCATION / Communications / SITUATION / SITE PLAN / TENANCY SCHEDULE / COVENANTS / SERVICE CHARGE / COMPARABLES / PROPOSAL COMMUNICATIONS

Ridgeway Distribution Centre benefits from excellent Air communication links. London Heathrow International Airport is located Road 14.32 km (8.9 miles) to the south east via the M4 and is the UK’s busiest airport. London Gatwick Junction 5 of the M4 motorway is located 5.44 km International Airport is London’s second largest airport (3.4 miles) to the south at Langley and provides easy and is located 70 km (44 miles) to the south. access to Junction 15 of the M25 3.1 km (1.9 miles) to the east. Junction 1 of the M40 is located 8.9 km (5.5 miles) to the north. Destination Distance Time M4, Junction 5 5.44 km 10 min Rail M25, Junction 15 8.74 km 13 min Regular direct rail services are available to Central M40, Junction 1 8.8 km 12 min London and the west country from Iver Railway Station 0.8 km (0.5 miles) to the south. The fastest journey Slough 8.96 km 15 min time to London Paddington is approximately Heathrow International 14.5 km 20 min 25 minutes. Airport Central London 28 km 44 min Uxbridge Underground station is situated 6.4 km (4 miles) to the north and provides access to the Piccadilly and Metropolitan Lines.

Iver Railway Station will be further improved with the new Crossrail service which is scheduled for completion in 2018 and will provide access to Central London.

Although not confirmed, Iver Railway Station is also the potential site for the new Heathrow Hub Railway Station which would see the station greatly expanded with twelve extra platforms and serving as the main interchange between Heathrow Airport, Crossrail and High Speed 2.

M40

B470 HIGH STREET ford lane B470

M25

grange way SITUATION

thorney lane north lane thorney Ridgeway Distribution Centre is situated directly to the grand union canAl east of the M25 and 0.8 km (0.5 miles) to the south of ridgeway B470 ridge way Iver village. The Property is accessed off Thorney Lane Distribution COURT LANE Centre industrial estate North via Ridge Way, which is unadopted by the Local Authority and forms part of the Property.

Access from Junction 5 of the M4 is off the A4 (London Road) via Sutton Lane, North Park, Thorney Lane South and Thorney Lane North. Alternatively,

thorney lane north access can be gained from Junction 1 of the M40, via COURT LANE Uxbridge, to Thorney Lane North via the B470, 8.53 IVER STATION km (5.3 miles) to the north.

LANGLEY BATHURST WALK DESCRIPTION thorney PARK GOLF GOURSE

thorney lane SOUTH Ridgeway Distribution Centre comprises a substantial, unbroken industrial and warehouse park on the SOMERSET WAY outskirts of Greater London and on the edge of the M25 motorway. The estate has been developed on a phased basis although the majority of the buildings B470 M25 were developed in 2002, with many of the earlier units having recently been refurbished or reconfigured. RICHINGS WAY

The Property comprises of 14 units which range in NORTH PARK ROAD size from 12,338 sq ft to 48,362 sq ft with a total area of 381,740 sq ft. The units are arranged around a one way, circular estate road with the newest element of J15 M4 the Property located within the estate road and the A4 older units arranged around the edge. J4B J5 The units are all of steel portal frame construction with either brick or steel clad elevations beneath pitched roofs with varying amounts of translucent roof lights. The eaves heights vary between the units, but they Route to RDC range from 5 metres to 7.25 metres at their lowest points. All of the units benefit from dedicated loading Satellite navigation ref: and parking areas and some of them benefit from SLO 9HX secured yards.

The Property comprises of a total area of 7.66 hectares (18.92 acres) providing a site cover of 46%. The site is very secure with full perimeter fencing and one access point. TENURE

The Property is held freehold. 2A/B 2C Ridge Way is not an adopted highway and is included within the Title of the Property. TENANCY SUMMARY 3B 3A ridge way • Ridgeway Distribution Centre is let to 9 tenants on 1G 12 leases. 1A • The passing rent, including rent top ups, is 5D 1F £3,153,646 per annum which provides a low 1E average passing rent of £8.26 per sq ft. 5C 1C 1D 1B • The average weighted unexpired term to expiry, to include rent top ups, is 5.90 years and 3.00 years to 5B earliest termination. 5A

thorney lane north

Unit Tenant Size Lease Current Income Next % of Comment (Company Number) Sq M Sq Ft Start Date Expiry £ pa £ psf Rent estate (TBO) Review income CEVA Logistics Ltd The unit is underlet to TNT Post UK Ltd on a 5 year lease term to expire on 1A 3,730.3 40,153 06.04.99 05.04.24 £350,000 £8.72 06.04.14 11.1% (01291251) 05.09.18 at the Head rent with 3 months’ rent free.

Schedule of Condition. Break notice on 3 months notice. If break is not served by TNT Post UK Ltd 01.09.18 1B 3,042.6 32,750 02.09.13 £294,750 £9.00 - 9.3% 01.12.13, tenant to benefit from 9 months’ rent i.e. 01.12.13 to 31.08.14. Lease (04417047) (01.03.14) excluded from the 1954 Act. TNT Post UK Ltd Schedule of Condition. Rent commencement date 09.03.14. Vendor rental top up. 1 C/ D 3,633.4 39,110 09.06.13 08.06.18 £342,250 £8.75 - 10.9% (04417047) Lease excluded from the 1954 Act. Café Connections 1E 2,037.2 21,928 06.11.07 05.11.17 £209,485 £9.55 06.11.12 6.6% Rent deposit of £128,196 held. (04502423) Flexpac Ltd 18.12.21 1F 2,038.0 21,937 19.12.11 £199,675 £9.10 19.12.16 6.3% Break notice on 6 months’ notice. Lease excluded from the 1954 Act. (00190711) (18.12.16) Schedule of Condition. There is an option which is exercisable for the period of 18 TNT Post UK Ltd 1G 4,179.8 44,991 30.12.12 24.03.17 £405,000 £9.00 - 12.8% months from 06.09.13 for the Tenant to call for a reversionary lease for a further term (04417047) commencing on 24.03.17 and expiring on 08.06.18. Recently refurbished unit. Being marketing via JLL/Vail Williams. Vendor to provide a 2 A/ B VACANT (RENT GUARANTEE) 4,492.9 48,362 - 15.10.15 £386,896 £8.00 - 12.3% 2 year rent, rates and service charge guarantee. Area on a Gross External Basis. Robeva Properties LLP 18.12.20 Schedule of Condition. Option to purchase at £2,332,960 which expires on 2C 2,709.2 29,162 09.12.10 £189,553 £6.50 08.12.16 6.0% (00352331) (08.12.16) 08.12.13. Half rent until 09.12.13. Lease guaranteed by Glass UK Ltd (4284453). Schedule of Condition. Rent commencement on 08.02.14, £62,062.50 pa (1/2 rent Fraikin Ltd 07.08.23 for 12 months). Rent increases to £124,125 pa on 08.02.15. Vendor rental top-up. 3A 1,537.5 16,550 08.08.13 £124,125 £7.50 08.08.18 3.9% (01350718) (08.08.19) If break not exercised tenant receives a 6 months’ rent free from 29.0919. Break penalty of £74,475. Recently refurbished. Being marketing via JLL/Vail Williams. Vendor to provide a 2 3B VACANT (RENT GAURANTEE) 3,153.2 33,941 - 15.10.15 £271,528 £8.00 - 8.6% year rent, rates and service charge guarantee. Schedule of Condition. Refurbished unit. Year 1 rent £55,500 per annum. Year 2 Andrews Sykes Hire Ltd 24.12.28 5A 1,374.0 14,789 25.12.13 £111,000 £7.51 25.12.18 3.5% rent £83,200 per annum. Year 3 rent and onwards £111,000 per annum. Vendor (02985657) (24.12.23) rental top up. Lease to be signed imminently. Rent passing £64,585 per annum. £77,502 per annum wef 01.03.15 and £89,773 Avron Trading Ltd 31.07.21 5B 1,198.0 12,895 01.08.11 £89,773 £6.96 01.08.16 2.8% per annum wef 01.03.16. Vendor rental top up. £20,000 rent deposit. Lease (04541189) (01.08.16) excluded from the 1954 Act. Schedule of Condition. Rent passing £38,751 per annum. £64,585 per annum wef 01.03.14, Avron Trading Ltd 22.02.22 5C 1,146.3 12,338 23.02.12 £89,773 £7.28 01.03.17 2.8% £77,502 wef 01.03.15 and £89,773 wef 01.03.16. Vendor rental top up. £24,000 rent (04541189) (01.03.17) deposit. Lease excluded from the 1954 Act. Fermod Ltd 31.05.22 Rent passing £44,919 per annum. £70,587 per annum wef 01.12.14 and £89,838 5D 1,192.4 12,834 01.06.12 £89,838 £7.00 01.06.17 2.8% (00832943) (01.06.17) per annum wef 01.02.15. Vendor rental top up. Break notice of 6 months. Totals 35,464.5 381,740 3,153,646 100%

TNT Post UK Ltd, CEVA Logistics Ltd, Andrews Sykes Hire Ltd and Fraikin Ltd all have strong covenant profiles and represent approximately 65% of the passing rent to exclude the rent top ups. We have provided basic financial information for these occupiers below:-

Tenant Unit(s) Company Sq ft % of Sq ft % of income Year Ending Sales Turnover Pre-Tax Profit Shareholder Credit Rating Number (excludes (000s) (000s) Funds (000s) (out of 100) * guarantees) TNT Post UK Ltd 1B, 1C/D, 1G 04417047 11,851 30.61% 43.56% 31.12.12 554,584 5,747 26,269 95 CEVA Logistics Ltd 1A 01291251 40,153 10.51% 14.03% 31.12.12 406,948 26,950 153,174 92 Andrews Sykes Hire Ltd 5A 02985657 14,789 3.87% 4.45% 31.12.12 37,087 9,750 15,329 95 Fraikin Ltd 3A 01350718 16,550 4.34% 4.97% 31.12.12 69,483 8,436 41,210 50

* Credit Ratings are provided by Credit Safe

Unit Band Rating Issue date The Western Corridor benefits from access to the national motorway network, principally via the M25, M4 1A C 68 15.07.09 and M3 motorways, and the UK’s only international hub 1B C 65 27.01.10 airport at Heathrow. 1C B 46 15.10.08 1D B 41 15.10.08 The Western Corridor contains the UK’s highest value 1E D 77 27.01.10 industrial areas being based around the London and 1F D 89 27.01.10 Heathrow markets. The Heathrow industrial area, 1G D 78 28.01.10 which includes Poyle, Feltham and Hounslow, together 2A/B C 56 27.10.13 with Park Royal and Slough provide for some of 2C D 92 30.10.13 Europe’s largest multi-owned industrial areas. 3A D 96 28.10.13 Recent statistics for the UK economy are now 3B C 68 28.10.13 suggesting that a recovery is gaining momentum which 5A C 74 27.01.10 is filtering through to improved business confidence 5B C 71 05.05.09 and therefore increasing requirements for space and a 5C D 93 25.10.13 continued erosion of availability:- 5D C 63 28.01.00 Demand SERVICE CHARGE • 2.4 million sq ft was occupied in the Western Corridor in the first half of 2013 which is 20% higher than the half year average over the past 10 years. The service charge budget to December 2013 is £155,500, which is just ahead of the expenditure for • Demand from occupiers remains robust, but the lack the year ending 2012 at £152,719.11. It is recovered of new supply in a market which is still providing very by way of a floor area apportionment which is little speculative development is hampering take up. equivalent to £0.41 per sq ft. There are no service • As a result of a lack of supply of new space, 70% of charge caps. the floor space taken up in the Western Corridor in the first half of 2013 was in Grade B space. The service charge shortfalls relating to the vacant units 2A/B and 3B, which account for 14.41% of the estate Supply by service charge apportionment, total £22,407 per annum based on the service charge budget for 2013. • The total available supply across the Western The Vendor will ‘top up’ the service charge shortfalls for Corridor fell by 14% over the twelve months to up to two years. mid-2013. • The most pronounced decline in availability was VAT recorded against Grade B space where availability fell by 28% over the twelve months to mid-2013.

The Property is elected for VAT and we understand • Availability as at the end of the second quarter of the sale can be treated as a Transfer of a Going 2013 is now at its lowest level since the recession. Concern (TOGC).

Demand for core south east, multi-let industrial holdings remains extremely strong. There are relatively few unbroken holdings of this size in the south east and they come to the market very infrequently. We highlight below some of the larger Greater London assets that have transacted this year which demonstrates the strength of demand and shortage of core holdings of this size:-

Property No. of Units Tenure Rent Capital Capital NIY % WAULT (Certain) Purchaser Date (£ psf) Value Value (£psf) Brentford, Westcross Industrial Park TW8 9EX 30 FH n/a £75.00m n/a 6.80% 6.10 years (5.12 years) L&G Oct 13 Poyle, Colndale Industrial Estate SL3 0HQ 10 FH £10.82 £14.35m £161 6.37% 8.30 years (6.70 years) Lothbury Aug 13 Dartford, Crossways Business Park DA2 6QB 12 FH £7.48 £17.93m £110 6.45% 5.69 years (4.15 years) Ignis June 13 Enfield, Voltage EN3 7XQ 4 FH £8.89 £15.35m £125 5.38% 16.7 years SWIP Mar 13 London, Grand Union Trade Park NW10 11 FH £9.00 £18.58m £161 5.47% 3.90 years (3.30 years) SWIP Mar 13

We have been instructed to seek offers in excess of £39,000,000 (Thirty Nine Million Pounds) subject to contract and exclusive of VAT.

A purchase at this price reflects an attractive Net Initial Yield of 7.65%, after allowing for purchaser’s costs of 5.80%. DATA ROOM

A legal pack including Title and occupational documents are available online. Also available for review is capital allowance, service charge, EPC’s and tenant covenant information. Access to the online data room is password protected and login details can be provided on request.

FURTHER INFORMATION

GVA is the trading name of GVA Grimley limited, conditions under which particulars are Should you require further information, or wish issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are to arrange a viewing, please contact:- set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation, Mark Beaumont and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations 020 7911 2183 of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) no person in the employment of GVA Grimley Limited or any joint agents has [email protected] any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT

David Bateman Reproduced by courtesy of the Controller of HMSO Crown Copyright reserved. License No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, 020 7911 2247 Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification [email protected] purposes only.

Ridgeway DISTRIBUTION CENTRE, Ridgeway, Iver SL0 9HX EXECUTIVE SUMMARY / LOCATION / Communications / SITUATION / SITE PLAN / TENANCY SCHEDULE / COVENANTS / SERVICE CHARGE / COMPARABLES / PROPOSAL