WICKES FRASER ROAD, , LONDON DA8 1QX

GREATER LONDON RETAIL WAREHOUSE INVESTMENT Open A1 (non-food) planning consent WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX

INVESTMENT SUMMARY

>  solus retail warehouse investment within the London Borough of . > Prominent and accessible retailing location on Fraser Road (A206) adjacent to Atlas Trade Park and proposed Lidl foodstore. > Purpose built solus retail warehouse totalling 30,842 sq ft (assumed 30,000 sq ft for rent review purposes) with 124 car parking spaces. > Large 2.13 acre site with low site coverage of 33%. > Open A1 non-food planning consent. > Freehold. > Secure income of 9.35 years unexpired to Wickes Building Supplies Ltd, rated 5A1 by Dun & Bradstreet. > Passing rent of £405,000 pa, reflecting a low rent of £13.50 per sq ft. > Low capital value of £218 per sq ft.

Our client is seeking offers in excess of £6,725,000 (Six Million, Seven Hundred and Twenty-Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 5.65%, assuming purchase costs of 6.64%. Page 2 orehamwood Enfield AM M25 Chigwell illericay rentwood Edgware Wickford M Warley

Rayleigh WICKES l FRASER ROAD, ERITH, LONDONHarrow DA8 1QX Romford asildon Hornchurch Ilford M25 Wembley Stratford LOCATION arking Dagenham South Ockendon Erith is located within the LONDON Canary in south-east London. The town lies south of the River Wharf Thames with excellent road communicationsM4 providing Woolwich direct access to Dartford. The M25 motorway is to the Grays east and central London is to the west via the A102. ERITH Erith railway station is in close proximity Richmondto the rixton Dulwich exleyheath property with a peak service that includes trains to Village Dartford Charing Cross Station and Cannon Street Station, via alham Gravesend Woolwich and Greenwich. Station, which is 2.8 miles to the west of the property, will benefit from Abbey Wood Crossrail Station ingston to Central London Crossrail services reducing journey timesupon to Central Thames romley London to 25 minutes and 11 minutes to Canary Wharf. Mitcham 25 MINS Rochester F Croydon Opington M20 Sutton M25 SITUATION M2 d R West ke A206 W o e br Purleys ingsdown l Epsom m t S Pe t R TDowne A206 The subject property is situated on the southern side of d le R rda Fraser Road (A206), which connects Erith town centre with ive R Belvedere and Woolwich to the west. B r o o k E r S L H ith Atlas Trade Park lies adjacent to the site, which is occupied t Hi gh d S dale R t by Topps Tiles, Screwfix, Bath Store, Tile Giant and Metro River ERITH Service Station (vehicle MOT centre). Lidl recently acquired R A220 S this site and are preparing to submit a planning application C to redevelop the property to provide a solus foodstore unit.

B Europa Industrial Estate is immediately north of the subject r es o Cr o ark k C P S a property and comprises a large multi-let estate, which is t rl ton Rd part owner occupied by Batt Cables Plc. Nl H R E A206 A220 d R e R enu Av

B r Page 3 o o k S t Rainham

WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX A020

A3 Wennington

CATCHMENT AND DEMOGRAPHICS Belvedere Abbey Wood The London Borough of Bexley has a catchment A206 population of 232,000 people (2011 Census), which is Woolwich Purfleet forecast to grow to 252,500 by 2026. The catchment Plumstead ERITH population within a 10 minute drive time is 90,667 A220 people (Source: Oxford Retail Consultants). Multiple car A206 ownership is significantly above the UK average within a 10 minute drive time. Shooters Hill Erith is an important district centre within the London Welling Borough of Bexley and is considered the dominant retail and service centre for the north of the Borough. Erith has been identified by the Borough as a key focus for regeneration and the area has experienced significant A2 inward investment with a focus on residential-led Avery Hill developments over recent years. The opening of the Dartford A282 Crossrail station at Abbey Wood has already attracted several large-scale residential developments in the Bexley surrounding area, which includes up to 5,200 new homes on four sites in Thamesmead. Drive time key A2 5 mins 10 mins 15 mins 20 mins Erith has a strong demographic profile with the following population characteristics within a 10 minute drive time: Sidcup Joydens Wood Wilmington Home ownership Above the national average

Economically active Above the national average · (Icon) Economically active – above the national average. Car ownership Above the national average · (Icon) Car ownership – above the nation- al average. Convenience goods spend · (Icon) Convenience goods spend – above Above the national average the national averag Page 4 WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX

DESCRIPTION “Open A1 (non-food) Centre Metro Service planning consent” The subject property comprises a purpose built solus retail warehouse unit that was originally developed in 2002. The unit is of steel portal frame construction with brick BATT Cables and profile steel clad elevations and extends to 30,842 sq ft (assumed 30,000 sq ft GIA at rent review). The ground floor area is approximately 30,036 sq ft and there is a lobby area to the front of the property totalling 806 sq ft. The accommodation is well configured for the tenant’s use Fraser Road (A206) with a loading area and a builder’s yard to the rear of Atlas Trade Park the property. Proposed Redevelopment 124 Parking Spaces There are approximately 124 car parking spaces to the front of the unit (1:249 sq ft). The site area is approximately 2.13 acres, resulting in a low site coverage of 33%.

PLANNING

The orignal planning consent (98/00234/FUL) was granted on 18 May 2000 for the “redevelopment of the site comprising non-food retail units and an open garden For indicative purposes only centre including a glazed area and associated car parking and access”. The use of the retail units shall be limited to the sale of pet foods and non-food goods only. Furthermore, all retail units comprised in the development shall be of not less than 929 square metres floor area and such units shall not be sub-divided to constitute smaller units without the prior written approval of the Local Planning Authority. Further information is available upon request.

Page 5 WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX

TENANCY

The subject property is let in its entirety to Wickes Building Supplies Limited on a 25 year term expiring on 23rd June 2027 (9.35 years unexpired). The passing rent is £405,000 pa, which reflects £13.50 psf based on the floor area specified in the lease (30,000 sq ft). Rent reviews are five yearly to open market value, with the next review in June 2022. The lease is drawn on institutional full repairing and insuring terms. The Tenant is allowed to assign the whole or underlet the whole or a Permitted Part (less than 6,000 sq ft), subject to the Landlord’s consent.

TENANT COVENANT

Wickes Building Supplies Limited opened its first store in The subject property is let to Wickes Building Supplies the UK in 1972 and now has a portfolio of over 220 stores. In Limited which is the operational company of the business February 2005 Wickes was acquired by Travis Perkins, which and the company against which their property leases is a leading company in the Builders’ Merchanting and Home are secured. Improvement markets.

Wickes Building Supplies Limited has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure. A summary of the company’s last three years’ accounts is set out below:

Year Turnover (000’s) Pre-Tax Profits (000’s) Tangible Net Worth (000’s) 2016 £1,213,269 £65,403 £304,109 2015 £1,104,950 £60,133 £404,992 2014 £1,039,986 £68,731 £355,080

Page 6 WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX

RENTAL GROWTH “Low passing rent PROSPECTS of £13.50 psf”

The subject property has a low passing rent of £13.50 per sq ft, which was agreed at the June 2017 rent review. The property has a history of strong rental growth, which has increased by 50% from the original letting at £9.00 per sq ft in 2002.

We believe the subject property still has good rental growth prospects and would highlight the below evidence:

Location Tenant Transaction Date GIA sq ft Rent (psf) Dartford Wickes Lease Renewal 03.2017 39,513 £15.00 Blackheath Wickes Rent Review 03.2017 26,497 £22.30 Catford Wickes Rent Review 06.2015 34,867 £18.62

RETAIL WAREHOUSE PROVISION

The subject property and adjacent Atlas Trade Park currently forms the only out of town retailing provision within Erith. Lidl acquired the adjacent trade park in 2015 and will shortly submit a planning application to redevelop the property to provide a new solus foodstore unit, which will greatly enhance the local retailing environment. The nearest competing centres are Dartford, and Bexleyheath. In terms of local DIY provision, B&Q occupy a recently reconfigured 57,475 sq ft in Belvedere approximately 1.7 miles to the north. The nearest Wickes store is in Plumstead, 3.6 miles to the west.

Page 7 WICKES l FRASER ROAD, ERITH, LONDON DA8 1QX

City of London

South Thamesmead ALTERNATIVE USE Abbey Wood

Given its strong Greater London location and surrounding uses, the subject property may also suit longer term redevelopment for residential use. The local area has been identified in the London Belvedere Borough of Bexley’s Growth Strategy as an area for mixed use development of medium density. The Quarry Residential redevelopment Atlas Trade Park Proposed Erith and the wider area has been subject to significant residential- Redevelopment led development, which is due to continue with several large schemes now under construction or having been identified as key regeneration areas within the Borough’s Growth Strategy. Europa Industrial Estate As a result, average residential values have increased in Erith by 13% between 2015 and 2016. Residential values are now in the region of £375 per sq ft and increasing.

Erith Park, Erith

Regeneration by Orbit and Wates of former 1970s tower blocks to Erith Train Station provide 588 new homes, which are 100% under offer. Values are in the region of £365+ per sq ft.

The Quarry, Erith Erith Park & A 20 acre site is being developed in close proximity to the subject Erith Riverside Shopping Centre property on Fraser Road by London & Quadrant, in partnership with Anderson Group, to provide 600 new homes. Phase One homes are now for sale and are achieving £375+ per sq ft. South Thamesmead The large-scale residential-led development will deliver up to 2,500 new homes over the next 10 years through a partnership between Peabody, the London Borough of Bexley and the Royal Borough of Greenwich. Residential values are approximately £450+ per sq ft. Europa Industrial Estate, Erith The site opposite the subject property has been earmarked by the London Borough of Bexley for future residential redevelopment providing up to 1,550 new homes.

Page 8 TENURE EPC PROPOSAL Freehold. B – 43. Available upon request. Our client is seeking offers in excess of VAT ENVIRONMENTAL The property is elected An environmental report is for VAT. available upon request. £6,725,000 (Six Million, Seven Hundred and Twenty-Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 5.65%, assuming purchase costs of 6.64%.

FURTHER INFORMATION

Edward George Nick Richardson Will Collins 020 7312 7489 020 7312 7420 020 7312 7405 [email protected] [email protected] [email protected]

Misrepresentation Act 1967

Montagu Evans LLP for themselves and for the vendors or lessors of this property whose agents they are, give notice that : (i) The particulars are set out as a general guideline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract.(ii) All descriptions, dimensions, references to condition and necessary permissions of the use and occupation, and other details are given in good faith without responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) Neither Montagu Evans LLP nor their employees has any authority to make or give any representation or warranties whatsoever in relation to the property. (iv) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only.

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