Units 1-10 Aerodrome Way Industrial Estate Heathrow

A WELL ESTABLISHED GREATER LONDON MULTI-LET INDUSTRIAL ESTATE

AERODROME WAY INDUSTRIAL ESTATE UNITS 1-10 HEATHROW

CRANFORD LANE • HESTON • TW5 9QB INVESTMENT SUMMARY PROPOSAL • A well established Greater London multi- • Freehold. • Two fully refurbished vacant units offered let industrial estate located north-east of with 18-month rent, rates and service charge We are instructed to seek offers in • Let to seven tenants providing attractive Heathrow Airport. guarantees. excess of £14,750,000 (Fourteen income diversity, with no tenant accounting Million, Seven Hundred and Fifty • Aerodrome Way Industrial Estate is well for more than 23% of the rent. • Strong occupational dynamics in the Heathrow Thousand Pounds) subject to positioned 1.4 miles to Junction 3 of the M4, and West London industrial market, with high • Total passing rent of £825,184 per annum contract and exclusive of VAT. A providing excellent access to Central London demand and low supply driving rental growth. (£10.48 per sq ft) including guarantees on purchase at this level would reflect and the national motorway network. Units 1 & 2. • The estate offers value accretive asset a Net Initial Yield of 5.25% and • The estate comprises 78,760 sq ft (7,317 sq management opportunities for a potential • Attractive WAULT of 5.82 years to expiries and a capital value of £187 per sq ft, m), arranged as two terraces with nine units purchaser through the letting of Units 1 & 2, 5.53 years to breaks. assuming purchaser’s costs of 6.73%. ranging from 2,789 sq ft (259.1 sq m) to 12,511 and a medium term refurbishment across sq ft (1,162 sq m), and a stand alone unit of the estate. 918 sq ft (85 sq m).

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 2 LOCATION PRIME RENTS IN HEATHROW A40

Watford PARK ROYAL GREENFORD KENSAL GREEN

MARKET BEING ACHIEVED

A 4 0 2 0 2 IN EXCESS OF

HAYES 1 3 W A E S M25 TWAY

£13.50 PER SQ FT UX BR IDGE RO Y AD A A 402 0 W

WEST DRAYTON R

A Central P

E AERODROME WAY London H J4 T J15/J5 M4 M4 HAMMERSMITH J3 Osterley Park J1 Slough & J2 Maidenhead and House S HESTON OSTERLEY A4 AIR A4 Heston 4a B OAD ATH R Services ROAD WEST Heathrow Airport has a current GREAT J14 CRANFORD Royal Botanic capacity of 95 million passengers and Gardens Kew serves 194 destinations worldwide. Heathrow Airport ISLEWORTH In 2017 1.7 million metric tonnes of cargo freight passed through HOUNSLOW RICHMOND the terminal, making it one of the OAD 6 ES R 31 fastest growing major European hubs AIN A ST

for cargo. Following longstanding

AD O debate, construction of a third Staines R EY TWICKENHAM FELTHAM S RT runway is under consultation with 30 E Richmond Park A CH plans to publish proposals in 2018.

TRANSPORT URBAN AREAS

Well positioned south of the M4 and north of the A4 Bath Road, Aerodrome Way is located 14 miles to the The estate sits amidst the large east of Central London and 7 miles to the west of the M25. The M25 (Junctions 14 & 15) provides follow on urban areas of Hayes, Brentford, access across Greater London and the national motorway network. Central London can be accessed via the Hounslow and Feltham, as well Piccadilly line from Hounslow West Underground station or via the Heathrow Express running from Heathrow as more residential areas such International Airport. as Heston, Osterley and Cranford, providing an attractive employment The estate is well served by local transport links with regular buses from Cranford Lane to locations and business catchment population. including Hounslow, Heathrow Central and Kingston upon Thames.

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 3 CO 2 N VE 1 N T W SITUATION HAYES 3 AY A Western The Estate is situated on Cranford Lane which provides Interational SOUTHALL Market NOR THH access to the M4 (Junction 3) to the north and Bath Road M4 YDE LAN (A4) to the south via the A312 The Parkway. The Property J3 E is located in the established Heathrow industrial market, M25 (Junction 5) adjacent to a major ASDA distribution hub and Phoenix and the West Central Industrial Estate. Nearby occupiers include, TNT, ASDA, E N A London L

BPost, Ligentia and Sovereign Car Hire. L L A Heston Sports H Cranford Park T Ground M4 U

O Located adjacent to the Property is Heston Services. S

Heston services provide local amenities including a

HESTON SERVICES Travelodge and Petrol Station as well as food offerings

O including Burger King and Costa Express. The nearby E

Bath Road offers a wide selection of hotels from Premier

W D OA A R C N RA Y Inn to Hilton Hotel, positioned to serve the Airport. NFO TO RD ES Avenue Park L NEW H A N E

T H E P A R

K D W A ET AERODROME WAY E A O R Y R T S H M D R IG A H A O F

R E

L G L A E A

3 R W A 1

G C 2 N I I B V AT R H P RO S AD

A Brentford

U B B

T AT H H

RO A4 E AD D

P A ST R A E 4 EAT W

R GR

W A E

4 N Y A HOUNSLOW WEST A

L D

A N O A3006

A R O T T

3 S T E U

1 W S

2 H

T U Staines O

T A E R

Beaverfield

Park

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 4

DESCRIPTION Aerodrome Way Industrial Estate is a well presented multi- let industrial estate comprising 10 units, providing a terrace of seven units and three further units. Units 1-9 range from 2,789 to 12,511 sq ft, and are of steel portal frame construction with a half-height brick cavity wall and steel sheet profile clad elevations above. The units have pitched clad roofs, with eaves heights of 6.1m on Units 1 to 7 and 6.0m on Units 8 and 9. Unit 10 is a separate self-contained unit of 918 sq ft. In 2016, Units 1-3 were extensively refurbished and benefit from new automated roller shutter doors. Unit 8 underwent a more cosmetic refurbishment in 2015. More information on the refurbishment can be provided on request.

The site extends to 1.36 hectares (3.36 acres) and provides a site coverage of 54.29%.

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 5 TENURE Freehold.

Unit 10 is Grade II listed.

The Property has a right of access over Aerodrome Way, indicated on the map by yellow hatching.

There is an electricity substation on site let to SSE 6 Services Plc at a rent of £25 per annum. The tenant is currently holding over.

Further information is available on request. 7 5 4 3 ACCOMMODATION 2 1 UNIT SQ M SQ FT

1 1,079.3 11,618

2 1,066.7 11,482 10 3 1,066.7 11,481

4 1,066.1 11,476 8

5* 1,162.3 12,511

6 & 7 1,160.2 12,488 9

8 259.1 2,789

9 371.3 3,997

10 85.3 918

TOTAL** 7,317 78,760

* Unit 5 areas are inclusive of a Landlord mezzanine floor of 1,029 sq ft

** The total area excludes a Caretaker’s office, measuring 215 sq ft TANK

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 6

SHELTER

0m 10m 20m 30m

Aerodrome Way Industrial Estate Cranford Lane, Heston, TW5 9QB TENANCY The Property is let to seven tenants and benefits from an attractive WAULT of 5.82 to expiries and 5.53 years to breaks excluding guarantees. The Property produces a passing rent of £825,184 per annum reflecting an average rent of £10.48 per sq ft. This includes an 18-month rent, rates and service charge guarantee on Units 1 & 2 which are vacant and benefit from having undergone a comprehensive refurbishment.

AREA AREA TERM START EXPIRY BREAK REVIEW CURRENT RENT RENT INSIDE/OUTSIDE UNIT TENANT COMMENTS (SQ FT) (SQ M) (YRS) DATE DATE DATE DATE (PER ANNUM) (PER SQ FT) L&T ACT 1954

18-month rent, rates and service 1 RENT GUARANTEE 11,618 1,079.3 - - - - - £121,989 £10.50 - charge guarantee.

18-month rent, rates and service 2 RENT GUARANTEE 11,482 1,066.7 - - - - - £120,561 £10.50 - charge guarantee.

Half-rent incentive for 12 months ORANGE equal to £60,406, expiring 02/01/2019. 3 11,481 1,066.6 10 03/01/2018 02/01/2028 - 03/01/2023 £120,813 £10.52 OUTSIDE TRANSGROUP LTD Vendor to top-up. Rent deposit of approximately £108,731.70.

Tenant has served a break notice which has been rejected by the Seller. 2 month rent-free incentive from 4 COMPAC UK LIMITED 11,476 1,066.2 10 01/07/2013 30/06/2023 01/07/2018 01/07/2018 £116,330 £10.14 OUTSIDE 01/07/2018. Schedule of Condition included in the lease. Rent deposit of approximately £35,205.12.

15/11/2017 rent review outstanding. 5 MAX FOODS LIMITED 12,511 1,162.3 10 15/11/2012 14/11/2022 - 15/11/2017 £132,195 £10.57 OUTSIDE Two individual guarantors in place.

N B R (UK) LIMITED T/A 23/03/2017 rent review outstanding. 6&7 12,488 1,160.2 10 23/03/2012 22/03/2022 - 23/03/2017 £130,000 £10.41 OUTSIDE Rent deposit of approximately INTERLINK EXPRESS £78,981.56.

IMIQ PADDLE SPORTS Rent deposit of approximately 8 2,789 259.1 5 23/09/2015 22/09/2020 - - £30,068 £10.78 OUTSIDE LIMITED £36,165.91.

Stepped rent incentive in place, with current rent payable of £39,552, PACIFIC SEAFOOD increasing to £42,203 on 13/04/2019. 9 3,997 371.3 10 13/04/2017 12/04/2027 13/04/2023 13/04/2023 £42,203 £10.56 OUTSIDE Vendor to top-up. LIMITED 1 month rent-free incentive if tenant break not exercised. Rent deposit of approximately £27,123.23.

01/04/2015 rent review outstanding. 10 NOORALLAH RAMANI 918 85.3 10 01/04/2010 31/03/2020 - 01/04/2015 £11,000 £11.98 OUTSIDE Rent deposit of approximately £5,942.12.

Substation SSE SERVICES PLC - - 10 25/03/1995 24/03/2005 - - £25 - INSIDE -

TOTAL 78,760 7,317 £825,184 £10.48

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 7 COVENANTS

Tenant: Orange Transgroup Ltd Tenant: IMIQ Paddle Sports Limited Company number: 07975696 Company number: 07233753 Unit Occupied: Unit 3 Unit Occupied: Unit 8 % of Income: 21% % of Income: 5% About: Established in 2012, Orange Transgroup About: IMIQ Paddle Sports is a paddle sports Ltd specialise in the operation of company that supplies a wide range warehousing and storage facilities for of high-quality canoes and sports freight-forwarding purposes. gear across the UK. Established in 2010, the Company also has offices in Tenant: Compac UK Limited Central London. Company number: 06320910 Unit Occupied: Unit 4 Tenant: Pacific Seafood Limited % of Income: 20% Company number: 09540520 About: Compac UK Limited is a European Unit Occupied: Unit 9 Company involved in the manufacture % of Income: 7% and marketing of compacted, About: Established in 2015, Pacific Seafood technological quartz and marble Limited is a frozen seafood specialist surfaces. The Company has presence importing and distributing fresh across five continents via its own seafood across the UK. warehouses and a network of 250 distributors. Tenant: Mr Noorallah Ramani Company number: Private Individual Tenant: Max Foods Limited Unit Occupied: Unit 10 Company number: 06616995 % of Income: 2% Unit Occupied: Unit 5 About: Mr Noorallah Ramani, a private % of Income: 23% individual runs a Halal food About: Established in 2008, Max Foods Limited preparation business. specialises in the sale of food in specialist stores across the UK.

Tenant: N B R (UK) Limited / DPD Local Company number: 05076917 Unit Occupied: Units 6-7 % of Income: 22% About: Interlink Express rebranded as DPD LET TO SEVEN TENANTS, WITH Local, is an express parcel delivery NO TENANT ACCOUNTING service operating across the UK and worldwide. DPD Local is a member of FOR MORE THAN 23% one of Europe’s leading parcel groups DPD Group who operate from more OF THE RENT than 800 different locations.

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 8 Oxford

M40 High Wycombe M1 To Oxford Beaconsfield OCCUPATIONAL MARKET 4 Uxbridge £13.00 psf Heathrow is an established industrial market benefitting from excellent rail, road and M402 air connections as well as being in close proximity to the large customer and workforce bases of Central London and the surrounding towns of Hounslow and Kingston A404upon 16/1a 1 A34Thames. The mixture of unit sizes in the Heathrow market is varied, ranging from smaller A40 Park Royal £15.50 psf trade counter units to larger distribution hubs such as the adjacent ASDA distribution M25 warehouse. The demographic and infrastructural benefits of the location haveMaidenhead driven high Slough Hayes Greenford £12.50 psf £14.00 psf £14.00 psf CENTRAL levels of demand from occupiers in recent years. The impact of which can be seen on West Drayton £13.50 psf LONDON levels of supply within the Heathrow area, with availability in the Heathrow market having 7 6 A4 15/4a 4 M4 dropped by 16% from 2013 to 2016 (EGI,Reading PMA). 8/9 5 3 A4 4a AERODROME Heston £37.00 WAY £12.00 psf Prime rents in the surrounding Heston andReading Heathrow area for 10,000 sq ft units M4sit at London £10.50 psf around £13.50 per sq ft, evidenced by the recent deal at Vector Park. The following Heathrow Feltham M4 A329(M) £13.50 psf A316 13 rental evidence paints a picture of the rental levels being achieved in the vicinity of the Kingston 12 £13.50 psf subject Property: 10 Bracknell A308 1 A24 A3 A23 11 A308 12/2 Newbury HEADLINE AREA A322 Chertsey Croydon ADDRESS DATE TERM RENT £15.00 psf (SQ FT) M3 11 (PER SQ FT) A232 3 M25 UNIT 1-3, ALPHA ESTATE NOV 17 1,160 5 Years Camberl£13.50ey A33 M3 10 UNITS 1-2 & 22-23, 10 Years 9 SEPT 17 2,282 £13.704 HESTON INDUSTRIAL ESTATE TOB Yr 5 4a A339 9 7 UNITS 11-13, HEATHROW Hook 10 Years Leatherhead A34 SEPT 17 11,485 £12.20 Farnborough M25 INTERNATIONAL TRADING ESTATE TOB YrFl 5eet A3 7 5 8 6 UNITS 1-4, FELTHAMBROOKBasingstoke 10 Years A331 6 AUG 17 9,980 £11.25 INDUSTRIAL ESTATE TOBA287 Yr 5 Guildford M3 Redhill A22 £33.50 Dorking 10 Years GGuildfuildford £31.50 V3, VECTOR PARK 7 AUG 17 10,872 £13.30 TOB Yr 5 8 M23 To Southampton A303 A31 A24 Gatwick PRIME RENTS BEING ACHIEVED IN EXCESS OF A3 9a 9

£13.50 PER SQ FT 10

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 9 INVESTMENT MARKET THE GREATER LONDON INDUSTRIAL INVESTMENT MARKET IS CHARACTERISED BY HIGH DEMAND AND LOW SUPPLY DYNAMICS, DRIVEN BY OCCUPIER CONFIDENCE AND UNDERLYING LAND VALUE

Demand for multi-let industrial investment opportunities has seen continued improvement compression having been evidenced in recent transactions. In 2017, industrial transaction throughout 2017, with the strongest demand experienced across Greater London and the South volumes increased by 76% across the UK (RCA, 2018), reflecting the investor appetite for East where occupier confidence and a shortage of supply exists. The Greater London Industrial the asset class and the confidence in the underpinning occupational dynamics. Within the Investment market has attracted interest from a broad spectrum of investors, particularly UK Greater London market, potential for long term conversion to higher value alternative uses institutions, Private Equity, Local Authorities and overseas capital. has helped to support the rationale for investing in Industrial property.

The occupational confidence within the industrial market has underpinned and driven investor A combination of these supply and demand occupational market dynamics is expected to appetite. Combined with a shrinking supply of investment stock, yield profiles for the multi-let drive investor demand. With current rental growth forecasts in excess of 3% per annum industrial sector have fallen despite the economic and political uncertainty, with strong yield we expect this low initial yield environment to continue.

Detailed below is a summary of investment transactions that reflect recent pricing: INITIAL YIELD PROFILES ON REVERSIONARY MULTI LET INDUSTRIAL OF SUB 4%

WAULT AREA CAPITAL ADDRESS DATE EXPIRY PRICE INITIAL YIELD PURCHASER (sq ft) VALUE (BREAK)

3.91 yrs MILL RIVER TRADING ESTATE, ENFIELD MAR 2018 93,786 £18.25M 3.95% £195 CAPITAL INDUSTRIAL (2.39 yrs)

5.2 yrs GRIFFIN CENTRE, FELTHAM JAN 2018 104,305 £20.91M 4.13% £201 ORCHARD STREET (4.3 yrs)

401-409 OLDFIELD LANE, GREENFORD DEC 2017 38,367 8.4 yrs £8.4M 3.90% £219 CBREGi

6.1 yrs SANDOWN INDUSTRIAL PARK, EGHAM, ESHER DEC 2017 58,083 £13.60M 3.80% £234 ELMBRIDGE COUNCIL (2.2 yrs)

ODHAMS TRADING ESTATE, WATFORD NOV 2017 125,476 4.0 yrs £25.6M 3.97% £204 M&G

CROWN BUSINESS CENTRE, Nov 2017 69,214 3.0 yrs £19.25M 3.90% £278 ORCHARD STREET WEST DRAYTON

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 10 ENVIRONMENTAL RPS have undertaken an environmental liability review, which has identified there to be no significant risk of third party liability. The report is capable of being assigned to the Purchaser and is available on request.

SERVICE CHARGE The Service Charge budget is £37,615 for the year ending 31st December 2018, which equates to £0.47 per sq ft.

ASSET MANAGEMENT OPPORTUNITIES • Let Units 1 & 2 either through existing tenant expansion or delivery of existing or new interest, generated from the strong occupational market. • Reconfiguration of yard parking and servicing for improved estate circulation (planning permission granted as of 9th November 2017). • Refurbishment of remaining units to capitalise on rental growth. • Maximise the reversionary potential of the estate through active asset management over the hold period. EPC Energy Performance Certificates have been undertaken on the Units. Further information is available on request.

DATA ROOM An electronic data room has been created containing relevant Title, Lease and Pre-Marketing Due Diligence information. Please contact Cushman & Wakefield to arrange access.

CAPITAL ALLOWANCES Capital Allowances are available subject to agreeing terms. Further information is available on request.

VAT We understand the Property has been elected for VAT. It is anticipated the transaction will be treated as a Transfer of Going Concern (TOGC).

AERODROME WAY INDUSTRIAL ESTATE, HESTON TW5 9QB 11 PROPOSAL

We are instructed to seek offers in excess of £14,750,000 (Fourteen Million, Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 5.25% and a capital value of £187 per sq ft, assuming purchaser’s costs of 6.73%.

CONTACT

DAVID HAYNES CHARLES HOWARD PHILIPPA GUMLEY T: +44 (0)207 152 5373 T: +44 (0)207 152 5364 T: +44 (0)207 152 5377 M: +44 (0)7733 123 318 M: +44 (0)7810 631 409 M: +44 (0)7702 118 765 E: [email protected] E: [email protected] E: [email protected] www.cushmanwakefield.co.uk

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. May 2018