KENT COUNTY COUNCIL UNIT 1 COMMERCIAL PARK NEW HYTHE LANE, AYLESFORD, ME20 7TW

PRIME LONG LET REVERSIONARY SOUTH EAST LOGISTICS WAREHOUSE SECURED TO A GOVERNMENT BACKED TENANT INVESTMENT SUMMARY

An incredibly rare opportunity to acquire a prime long let reversionary South East logistics warehouse secured to a government backed tenant.

• Located in a prominent industrial location within close • Let to County Council on a 25 year FRI lease • Freehold. proximity to the M20, M25, and Greater . expiring in October 2038, providing a 17.3 year unexpired lease term. • Offers sought in excess of £21,600,000 (Twenty One • A 110,000 sq ft modern logistics warehouse built in 2013 Million Six Hundred Thousand Pounds), subject to to an institutional grade specification including 12m • Passing rent of £807,000 per annum, reflecting a very contract and exclusive of VAT reflecting a capital value of minimum eaves and a 50m yard depth. low rent of £7.34 psf. £196 psf.

• The building has strong ESG credentials with highly • 5 yearly Open Market Value rent reviews, with the next • A purchase at this level reflects a Net Initial Yield sustainable design and management systems, and a very review due in October 2023 (2.3 years). of 3.50%, assuming normal purchaser’s costs of 6.75%. high EPC rating of A (22). Chelmsford M10 Epping M11 LOCATION M25

Aylesford Commercial Park is located on the east side of Aylesford, 33 miles to the south east of London and 6 miles to the north west of . Aylesford provides excellent transport links being located 1.5 miles to the north east of Junction 4 of the , and 14 miles east of Junctions 3 and 5 of the . M1 Ilford The property also benefits from a core south east locationM25 with excellent links to major south east international rail, port and airport terminals. The Aylesford/Maidstone area has a Basildon large labour catchment. Aylesford Commercial Park is immediately adjacent to New Hythe rail station, providing excellent links for the local workforce to the area. Furthermore the Barking station links the town to London St Pancras International via providing a journey LONDON Dagenham M25 time of approximately 1 hour. Rainham Greenwich Grays Name Distance Dartford New Hythe 0.4 miles (650 m) KCC Ebbsfleet International Terminal 17 miles (27.4 km) Rail Sidcup

Folkestone (Freight) 40 miles (64.4 km) Bromley Rochester Croydon London Gatwick International 35 miles (56.3km) M25 M20 Air London Heathrow International 60 miles (96.5 km) London Thamesport 22 miles (35.4 km) M2 Port of 47 miles (75.6 km) M26 Aylesford

Port Port of Felixstowe 98 miles (157.7 km) Caterham M25 Maidstone M20 SITUATION

The unit is situated on the North West boundary of Aylesford Commercial Park. It occupies M23 a highly prominent position on the corner of New Hythe Lane and Papyrus Way, two of the main estate thorough-fares, and is in close proximity to principal occupiers including XPO Royal Tunbridge Wells Logistics, Amazon, Brakes and TTS Logistics.

Crawley

Horsham

KCC M20

PANATTONI PARK AYLESFORD

SAFRAM

NEW HYHE STATION

ALL SAINTS

5 MINS TO J.4 M20 DESCRIPTION

The building comprises a modern distribution warehouse totalling 110,000 sq ft GIA, ESG CREDENTIALS with the following specification: The property has been developed to generate 10% of energy requirements on site. The unit • Steel portal frame construction with profile steel cladding elevations has incorporated highly sustainable design and management systems including a state of the art rain water harvesting and drainage system, townscape and landscape protection • • 12m minimum eaves height and enhancement initiatives and waste minimization systems.

• • Fully secured 50m loading yard The property has an EPC rating of A(22), highlighting the building’s highly sustainable credentials. • • 8 dock level loading doors, 8 van loading doors and 3 level access loading doors

• • 26 HGV parking spaces

• • 100 car parking spaces

• • Two storey integral office totalling 10,000 sq ft GIA (9% of total GIA) SITE AREA N

The site is well configured and extends to approximately 5.47 acres (2.21 hectares), providing a low site density of 46%. TENURE

Freehold. TENANCY SCHEDULE

Unit Tenant Area GIA Lease Start Rent Review Lease End UXT Passing Rent Rent (sq ft) (£pa) (£psf)

Kent County Unit 1 110,000 07/10/2013 07/10/2023 06/10/2038 17.3 £807,000 £7.34 Council

The unit has been sublet to Commercial Services Trading Ltd, trading as Kent County Supplies (KCS). COMMERCIAL SERVICES TRADING LTD T/A KENT COUNTY SUPPLIES (KCS) Kent County Supplies (KCS) is a part of the Commercial Services Group, one of the largest, local authority owned, trading organisations of its kind in the UK. With its schools supplies division set up over 90 years ago by Kent County Council, it has grown organically to become one of the leading suppliers of products and services to other publicly funded organisations, including education establishments, local government, emergency services and the voluntary and community sectors. COVENANT

KENT COUNTY COUNCIL The lease is let to The Kent County Council. Whilst as a specific entity their financial accounts aren’t publicly available, it goes without saying they are of undoubted financial status. They are awarded an equivalent bond rating by Income Analytics of AA-, which equates to an investment grade bond rating of ‘very low risk’. The following table shows the equivalent risk ratings from the Big Three credit rating agencies.

S&P Moody's FITCH Risk Band

AA- Aa3 AA- Very Low OCCUPATIONAL INVESTMENT MARKET MARKET

Whilst there have been limited recent completed developments of medium and larger The sector has continued to outperform other investment markets, buoyed by a scarcity of warehousing in the wider Aylesford area, there are a number of schemes set to commence good quality investment opportunities and demand-led upward pressure on rental levels which will prove the new rental tone for the area. - a trend which is expected to continue for the foreseeable future, especially for those properties located in key urban and distribution locations with the COVID-19 pandemic Wrenbridge and LaSalle’s speculative development in north Snodland, Arc Logistic Park, furthering all of the above fundamentals. has seen two pre-lets prior to commencement of the development. Unit A, which will provide 70,861 sq ft, has been pre-let to Swegon on a 15 year term at £9.50 psf. Units B & C, Address Size UNX Term Date Price NIY Cap Val Purchaser totalling 36,867 sq ft, have been pre-let to Must Have Ideas on a 10 year term at £10.50 psf. (sqft) Certain (yrs) (psf)

Restore PLC, Jun Adjacent to the subject property is the Panattoni Park Aylesford scheme, a 17.8 acre site 116,026 18.4 £31.9m 3.07% £274 CBREGi which has outline planning consent for 1.9m sq ft of industrial and logistics space. The Rainham 2021 scheme can accommodate a variety of ‘big box’ options from 500,000 sq ft, but also a Jun Aberdeen Amazon, Hinckley 525,500 20 £103m 3.10% £190 number of mid-box units ranging from 70,000 sq ft to 235,000 sq ft. Development is 2021 Standard expected to commence towards the end of 2022. Xpanse 120, Jan London 122,166 15 £18.10m 3.88% £148 RENTAL GROWTH Oldham 2021 Metric RealFor have forecasted the following industrial annual rental growth for the wider AF Blakemore, Dec 164,850 20 £27.50m 3.79% £166 CBRE GI Aylesford / Maidstone market: Bedford 2020 2021 2022 2023 2024 2025 Sainsbury’s, Nov 426,746 15.6 £90.529m 3.52% £212 BlackRock Bedford 2020 3.5% 3.8% 4.0% 3.9% 3.7%

PROPOSAL CONTACTS

We are instructed to seek offers in excess of £21,600,000 (Twenty One Million Six For further information please contact the selling agents: Hundred Thousand Pounds), subject to contract and exclusive of VAT. Based on rent of £807,000, a purchase at this level will reflect an attractive net initial yield of 3.50% after purchaser’s costs of 6.75%. CHARLIE FOSTER M: +44 (0)7977 998 837 E: [email protected]

FURTHER CHARLIE BURT M: +44 (0) 7870 999 124 INFORMATION E:[email protected]

DISPOSAL STRUCTURE HAMISH WEIR The property is marketed on the basis of an asset sale. However the Vendor would also M: +44 (0) 7866 203 346 consider a sale of the BVI listed SPV in which the asset is held. Further details available E: [email protected] upon request.

VAT The property is elected for VAT. It is intended that the sale will be treated as a Transfer of a Going Concern (TOGC).

INSPECTIONS As part of the tenant’s COVID protocols, all visitors to site are required to take a lateral flow test on the day of visit, and be able to show proof of the negative test result. Face coverings and hi-vis jackets will also be required.

Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 June 2021