Beckton Triangle Retail Park

BECKTON TRIANGLE RETAIL PARK

1 CLAPS GATE LANE, BECKTON LONDON E6 6LH

PRIME EAST LONDON RETAIL PARK INVESTMENT

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH 2

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH INVESTMENT SUMMARY

Beckton is a major suburban district located Prominently positioned at the major junction of Open A1 planning consent with restrictions. in east London within the London Borough the A13 and the A1020, the scheme forms part of of Newham, approximately 8 miles east of a significant out of town shopping destination Part freehold and part long leasehold with central London. including the regionally dominant Gallions Reach in excess of 228 years unexpired at £1 pa. Shopping Park and a Sainsbury’s superstore. Extensive catchment population within a Unique opportunity to acquire a strategic 15 minute drive-time of 1,072,300 people, with The property comprises a modern cluster of nine retail 13 acre site in east London. population growth forecast to be significantly warehouse units plus two restaurant pod units above the national average. totalling 138,082 sq ft at ground floor. There are a total of 457 car parking spaces with a further 21 staff Beckton DLR station is located under 1 mile to the car parking spaces accessed via the service yard. south-west with journey times to Custom House in 11 minutes and into the City of London in 28 minutes. Let to a secure retailer line-up including PROPOSAL The opening of the Elizabeth Line (Crossrail) at Currys PC World, Dunelm, B&M, DFS, Our client is seeking offers in excess of Custom House will provide up to 12 trains an hour Harveys, ScS, Costa and Pizza Hut. 3 with journey times to Canary Wharf in 3 minutes and Liverpool Street in 10 minutes. Over 80% of gross passing rent secured by 5A1-rated covenants (D&B). £46,000,000 The £480m London City Airport expansion is (Forty Six Million Pounds) subject to contract underway and will provide a further economic Gross passing rent of £4,218,878 pa, and exclusive of VAT. A purchase at this level boost to the catchment area. with a WAULT to expiry of 4.65 years. would provide an attractive 8.55% Net Initial Yield, based on purchaser’s costs of 6.78% and the net income of £4,202,808. LOCATION M25 A12

Beckton is a major suburban district in east London A1 A10 Watford within the London Borough of Newham, which is Enﬁeld M11 A413 M1 strategically located 5 miles south-east of Stratford, Brentwood

3.7 miles east of Canary Wharf and 7 miles to the east Edgware A406 of the City of London. The A13 travels through the M25 A127 Borough, offering direct access to the City of London. A12 Romford Harrow A406 A12 A10 The Docklands Light Railway (DLR) transportation A41 A406 Stratford BECKTON TRIANGLE network facilitates trains from Newham into the A40 RETAIL PARK A13 City of London. Beckton DLR Station is located just Hayes 0.7 miles south-west of Beckton Triangle Retail Park, providing services to Custom House in 11 minutes and LONDON A102 the City of London in 28 minutes. A4 A2 A30 Dartford Custom House DLR Station is located 2 miles to Twickenham A3 A205 Gravesend the south-east and is currently undergoing significant A316 Staines A20 A2 improvements prior to the introduction of Crossrail Kingston Bromley 4 (Elizabeth Line). Once opened, Crossrail will provide M3 up to 12 trains an hour with journey times to Canary A24 A232 Wharf in 3 minutes and Liverpool Street in 10 minutes. M20 A228 A21 London City Airport is situated circa 1.5 miles to the A3 Epsom south of the retail park and is recognised as a major M25 Cobham A23 A22 international airport in the UK, servicing regular flights

to major European destinations such as Berlin, Milan Caterham A25 and Rome. It is the fifth-busiest airport in terms of A217 M25 A26 LUTON passengers and aircraft movements serving the London A21 Crossrail GATWICK STRATFORD area, handling over 4 million passengers per year. The Central DLR Metropolitan Hammersmith & City Overground airport is currently undergoing a £480m development Hammersmith & City District Jubilee Circle Overground programme to quadruple the terminal’s size and to Jubilee Central create the UK’s first Digital Air Traffic Control Tower. HEATHROW FARRINGDON WHITECHAPEL TERMINAL 5 BOND STREET

TOTTENHAM 10 mins COURT ROAD PADDINGTON LIVERPOOL Crossrail will provide services from Circle Northern Hammersmith & City STREET Central 3 mins CUSTOM Bakerloo Circle CANARY Custom House to Canary Wharf (3 mins) District Metropolitan HOUSE Hammersmith & City WHARF DLR Northern Jubilee and Liverpool Street (10 mins). Central DLR

STANSTED

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH Canary Wharf

Custom House Alpine Way, London Industrial Park ExCel London Royal Albert Dock University of London City Airport East London Beckton

A13 Beckton Retail Park

Gallions Reach

Beckton Gateway 5 Retail Park

Gallions Reach BECKTON TRIANGLE A13 Shopping Park RETAIL PARK

A1020

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH Beckton forecast to CATCHMENT AND have a population DEMOGRAPHICS M25 increase ofA12 15% A10 by 2024. A1 Beckton draws upon an extensive catchment populationWatford of Enﬁeld M11 384,437 within a 10 minuteA413 drive-time of the subject property and 1,072,326 within a 15 minute drive-time. The Newham M1 population stands at 324,000 and is forecast to reach Edgware A406 381,000 by 2024, showing a 15% population increase. M25 A127 The Local Plan (2018) reports major new housing and A12 Romford infrastructure provision within Beckton for at least 5,278 new A406 homes. The recent decommissioning of the gasworks site A10 A41 A12 A406 has provided a regeneration opportunity to redevelop the BECKTON TRIANGLE site to include a re-modelling of Gallions Reach as part of a A40 new town centre, which will provide a catalyst for growth in RETAIL PARK A13 the local area. Hayes

LONDON A102 6 Drive-time 384,437 A4 population 10 min A2 A30 Dartford Gravesend 20 minsA3 15 mins 10A205 mins Drive-time A316 1,072,326Staines A20 A2 15 min population Kingston

M3 A24 SITUATIONA232 M20 A228

A21 A3 The subject property occupies a highly Other uses in the immediate area include prominent position at the major junction of Alpine Way Industrial Park and London M25 Epsom Cobham theA23 A13 (NewhamA22 Way) and the A1020 (Royal Industrial park, which includes multinational Docks Road), forming part of one of the largest businesses such as Britvic, Reiss and Booker critical masses of retail warehousing in the UK. wholesale. Caterham A25 A217 The immediate area has over 730,000 sq ft of The imminent arrival of Crossrail has been a open A1 food and non-foodM25 retail warehousing catalyst for significant residential developmentA26 including Gateway Retail Park, Beckton Retail in theA21 wider catchment. Park, a dominant Sainsbury’s foodstore and Gallions Reach Shopping Park.

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH Barking

Beckton Retail Park, Alpine Way RETAIL WAREHOUSE 3 (CCLA Investment Management) PROVISION Size – 192,860 sq ft Tenants – Iceland, Topps Tiles, Poundstretcher, The subject property forms part of a significant retailing Selco, Home Bargains, Dreams, Matalan. BECKTON TRIANGLE destination comprising 730,000 sq ft of out of town RETAIL PARK provision in the immediate area. An overview of the Planning – Open A1 part-food. key schemes is provided below. Rental Tone – broadly £10.00 - £20.00 per sq ft. 2 4 Comment – Discount led scheme with phased Gallions Reach Shopping Park 1 redevelopment potential for residential use. A13 (Aberdeen Standard Investments) A1020 Size – 318,399 sq ft. Sainsbury’s, Beckton 4 3 1 Tenants – Tesco Extra (109,000 sq ft), Footlocker, (J Sainsbury Plc) 5 River Island, Clarks, Boots, TK Maxx, H Samuel, 139,318 sq ft Sainsbury’s superstore. Decathlon, Sports Direct, JD Sports, H&M, Superdrug, Beckton Next, Bella Italia, McDonald’s, Nando’s. East Beckton District Centre 7 Planning – Open A1 part food. 5 (Asda stores) Rental Tone – £20.00 - £40.00 per sq ft. 90,728 sq ft Asda superstore. Comment – Dominant shopping park, drawing on a large catchment. The scheme is allocated for a major town centre regeneration with the former gasworks.

Beckton Gateway Retail Park 2 (Aberdeen Standard Investments)

Size – 157,000 sq ft.

Tenants – B&Q (102,368 sq ft), Pets At Home, Halfords, Wren, Tapi, McDonald’s, KFC, Starbucks, Domino’s, Subway, Creams.

Planning – Open A1 non-food.

Rental Tone – £17.50 - £30.00 per sq ft.

Comment – A strong bulky goods tenant line up with no vacancies.

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH DESCRIPTION AND SITE

The subject property comprises a modern retail warehouse park arranged to provide a cluster of NEWHAM WAY nine retail warehouse units plus two restaurant A13 pod units totalling 138,082 sq ft at ground floor. Adjacent to the units are a total of 457

A1020 car parking spaces with a further 21 staff car parking spaces accessed via the service yard, providing a ratio of 1:289 sq ft.

ROYAL DOCKS RD 457 Customer access to the property is from A1020 (Royal Docks Road) and the units are serviced CAR SPACESPARKING from the rear via the shared customer access road. The property is also served by a dedicated bus stop on a slip road from the A13, which provides direct pedestrian access onto the site. 8 The total site area extends to approximately 13.1 acres with very low site coverage of 29%. The freehold site comprises 2.3 acres and the land held on a long lease comprises CLAPS GATE LANE approximately 10.8 acres. P.F.S.

TENURE

The park is held majority long leasehold on a PROPOSED DEVELOPMENT 250 year long leasehold from 21 November 1997 (in excess of 228 years unexpired) from the London Borough of Newham at an E N annual rent of £1. The western end of the site A L comprising Unit 2-3 is held freehold. TE A Freehold Long Leasehold S G There is a restrictive covenant in favour AP CL of Sainsbury’s preventing the sale of food on the site.

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH TENANCY

Unit Name Lease (Tenant) GIA (sq ft) Mezz (sq ft) Lease Start Lease Expiry Tenant Break Rent review Rent (pa) Rent (psf) Comments EPC

Unit 1 Dunelm (Soft 25,062 22,533 25/03/1998 25/03/2023 - - £1,013,000 £40.52 Former PC World. Fixed 5 yearly uplifts. Assigned B-42 Furnishings) Ltd to Dunelm in 04/2017. Under a side Deed, Dunelm (Dunelm) paid £572,000 pa, which increased to £600,000 pa from 25/03/2018, with DSG reimbursing the differential. Tenant installed mezzanine. Assumed area at review of no more than 25,000 sq ft. Unit 1a Vacant (Vendor 2,532 1,915 - - - - £76,000 £30.02 Former Maplin - occupational costs are with B-43 Guarantee) administrator. Interest from regional operator and for sub-division of the unit. Vendor to provide 2 year rent, rates and s/c guarantee at £76,000 pa. Unit 2&3 B&M Retail Ltd 20,169 873 03/02/2016 02/02/2031 - 03/02/2021 £405,780 £20.12 Rent review cap of £454,473.60. 2019/20 s/c cap A-25 (B&M) of £22,186.19 grown annually at RPI. Landlord shortfall of £16,069. Landlord covenant to retain car parking spaces across Estate. Unit 4a Steinhoff UK Group 9,924 6,640 24/06/1998 23/06/2023 - 24/06/2018 £288,300 £29.05 Assigned to tenant in 06/2012. Deed of variation C-59 9 Properties Ltd to allow sharing the occupation with subsidiary (Harveys/Bensons) companies. Unit 4b Carpetright plc 10,013 8,367 25/03/1998 24/03/2023 - - £0 £0.00 Carpetright in occupation at nil rent as part of CVA C-52 (Carpetright) (Cat C) but are covering occupational costs. Rolling landlord breaks on 3 months' notice. Unit 5 A Share & Sons Ltd 9,678 7,847 04/09/2000 23/06/2023 - 24/06/2020 £283,000 £29.24 C-58 (ScS) Unit 6 Argos Ltd (Argos) 15,202 15,095 24/06/1998 23/06/2023 - 24/06/2018 £424,500 £27.92 No build zone. D-79 Unit 7a DSG Retail Ltd 25,036 4,239 25/03/1998 24/03/2023 - - £1,013,000 £40.52 Lease varied in 06/2005 to provide fixed 5 yearly B-41 (Currys PC World) uplifts. Assumed area of 25,000 sq ft at review. Unit 7b DFS Furniture 15,182 464 25/12/1998 24/12/2023 - - £537,635 £35.41 Lease varied in 12/2005 to provide fixed C-71 Company Ltd (DFS) 5 yearly uplifts. Pod Costa Ltd (Costa) 1,744 - 26/10/2015 25/10/2030 - 26/10/2020 £73,663 £42.24 Tenant option to break lease in first 6.5 years of C-58 the term on 6 months’ notice if lease is granted to Starbucks or Caffe Nero in first 6 years of term. Restaurant Pizza Hut (UK) Ltd 3,540 - 24/06/1998 23/06/2023 - - £104,000 £29.38 No build zone. Rents paid monthly by side letter. D-59 (Pizza Hut) Uplift at last review from £101,500 pa.

Total / Average 138,082 67,973 £4,218,878 £30.55

Adopting a rental guarantee for Unit 1A, the gross passing rent is £4,218,878 pa with a WAULT to expiry of 4.65 years and a net operating income of £4,202,808 pa after the deduction of landlord shortfalls deriving from B&M’s service charge cap and the long leasehold headrent payment of £1 pa.

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH 10

BECKTON TRIANGLE RETAIL PARK – CLAPS GATE LANE, BECKTON, LONDON E6 6LH TENANT COVENANTS

Latest Accounts Turnover Pre-Tax Profits Net Worth D&B Rating 2018 £1,050,100,000 £91,500,000 £121,100,000 5A1 81% Latest Accounts Turnover Pre-Tax Profits Net Worth D&B Rating

2018 £2,629,145,000 £236,006,000 £600,542,000 5A1 of the current gross income is secured by covenants Latest Accounts Turnover Pre-Tax Profits Net Worth D&B Rating rated 5A1 (minimum risk) by 2017 £76,966,000 £2,120,000 £33,632,000 4A4 Dun & Bradstreet, offering excellent income security. Latest Accounts Turnover Pre-Tax Profits Net Worth D&B Rating

2017 £443,800,000 (£70,500,000) (£7,700,000) N4

11 Latest Accounts Turnover Pre-Tax Profits Net Worth D&B Rating

2018 £337,313,000 £13,985,000 £43,873,000 5A1