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Home , Bermondsey, Burgess Park, Dulwich Village, Herne Hill, London Docklands, South Bermondsey

URBAN LOGISTICS INVESTMENT

DRAFT

24–50 OSSORY ROAD LONDON SE1 5AN 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

DRAFT

2 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

SUMMARY

• A rare opportunity to acquire an ultra-prime modern single let trade counter/industrial warehouse in a location.

• Well located in the London of , approximately 3 miles south of Central London.

• Conveniently located c. 0.9 miles from Railway Station and 1.5 miles to Elephant & Castle Underground and National Rail stations ( & and Thameslink).

• The premises is configured as two industrial units utilised by a single tenant, totalling 22,991 sq ft GIA.

• The site is fully let to Rexel UK Limited, representing a ‘minimum risk of business failure (4A1).

• Currently producing a very low passing rent of £307,800 per annum equating to £13.39 per sq ft.

• Estimated Rental Value in excess of £20 per sq ft in its current layout. Opportunity for further growth subject to reconfiguration into two industrial units.

• 1.5 years to first break and9.5 years to expiry. • Freehold. DRAFT • Potential residential redevelopment opportunity, subject to obtaining consents.

We are instructed to seek offers in excess of £8,875,000 (Eight Million, Eight Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects acapital value of £386 per sq ft and a Net Initial Yield of 3.25%, assuming purchaser’s costs of 6.68%.

3 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

LOCATION PROPOSED

Bermondsey is a densely populated south-eastern suburb of Central South Bermondsey railway station is under a mile away and provides a London, located within the Borough of Southwark. The property lies in a direct service to (5 minutes), while both Elephant & Castle mixed-use area and is located just 3 miles south of Central London. stations (Northern & Bakerloo lines and National Rail) are within walking distance. In addition, the subject premises is approximately 750m from Ossory Road is located just off the A2 (Old Road). The area the proposed 1 Bakerloo Line station (at the benefits from excellent transport links to both the City, West End and to junction with Dunton Road) and approximately 1km from the prospective the south. The Old Kent Road also provides direct access to Junction 2 Asylum Old Kent Road 2 Bakerloo Line station (at the junction with Asylum (Darenth Interchange) of the M25, approximately 15 miles to the east, Road). Frequent bus services on the Old Kent Road provide frequent access OSSORY ROAD while the and is some 3 miles to towards Elephant & Castle and Central London (53, 172 and 453 routes). the north.

Regents Park A501 CLARKENWELL

MARYLEBONE A11 CITY OF A1020 LONDON POPLAR A13

Hyde WEST END Park Green CANARY London City Airport Park St James’s Park WHARF R I VICTORIA V E M E S R T H A Victoria Elephant & Castle A2 South Bermondsey

A205 Burgess Park Oval Park A3 Ossory Road A2 24-50 Ossory Road Queens Road BATTERSEA DRAFTA2

PECKHAM G

L E

N Blackheath

G

B

2

A 1

Denmark Hill L 5

L

O

R

CLAPHAM S SITUATION

O

S

O A

Clapham R

8 O

D

Y 0 L

R

Brockley M 2

O

Junction A 2

A R

A

D

A3 S

T

. A2

24-50 Ossory Road is accessed directly off the A2 (Old Kent Road), A2

Clapham

Common Park & Common

approximately 100m to the north.

HERNE HILL A2

DULWICH

B

21

A23 5 Ossory Road is superbly located for companies serving Central London

Brockwell RD. BIANCA Park as well as the . Nearby occupiers include A24 Shurgard Self Storage, Damien Hirst Studios, Tesco, Asda, B&Q, RD. A205 ONA LAT Halfords, Currys PC World, Edmundson Electrical, Plumb Center, A205 Selco Builders Warehouse, B&M and Southern Wood Retail Park where traders include Argos, DFS, Ocado and Maplin.

4 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

DESCRIPTION

The property comprises two modern industrial units combined which are utilised as a single warehouse, totalling 22,991 sq ft GIA. Specifications include:

• Portal steel frame construction • High-quality first floor offices in both units • Trade counter • Three level access roller shutter loading doors • Concrete surfaced secured yard • 60% site coverage • 6.0m eaves height

ACCOMMODATION

Unit sq ft sq m 1 13,879 1,289.44 2 9,111 846.48 Total 22,991 2,135.93

SITE El Sub Sta The site occupies an area of approximately 0.36 hectares (c. 0.88 acres) DRAFT which represents a site cover of approximately 60%. The red line site boundary is shown for illustration purposes. OSSORY ROAD

1

Line Of Posts CURRENT USE Glengall Business Centre Use Class B8 – Storage & Distribution with ancillary trade counter.

ESS

TENURE

4

Freehold. Works 13 52

5 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

TENANCY

The property is let to Rexel UK Limited (00434724), Previously Hagemeyer (UK) Ltd on fully repairing and insuring terms for a period of 25 years from 4th May 2004 expiring on 3rd May 2029. The current passing rent of £307,800 per annum, reflects a low rent of £13.39 per sq ft. The lease is subject to 5 yearly rent reviews, the next being 25 March 2021, and the final being 25 March 2026. The tenant is entitled to early determination on 31 March 2021, or on 31 March in any subsequent year by not less than six months’ notice.

COVENANT INFORMATION

Rexel UK was established in 1947 and specialises in the distribution of electrical supplies to professional users and distributes products and services in the areas of automation, technical supply and energy management. The Rexel Group is headquartered in France and has 2,000 sales outlets across 32 countries and 27,000 employees. Rexel UK Limited has a Dun & Bradstreet rating of 4A 1 representing a ‘minimum risk’ of business failure.

The company recorded the following accounts over the last 3 years:

Rexel UK Limited 31 Dec 2018 31 Dec 2017 31 Dec 2016

Sales Turnover £707,247,000 £739,632,000 £765,011,000

Profit/(Loss) (£4,441,000) £9,530,000 (£1,826,000) before Taxes DRAFT

Shareholder’s Funds £76,458,000 £57,116,000 £43,995,000

Net Current Assets £91,740,000 £99,281,000 £63,936,000 (Liabilities)

6 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

OCCUPATIONAL MARKET - PRIME INDUSTRIAL RENTS Prime rents in South achieved at £24 psf Industrial stock diminishing West End leading to increased value London City Very low passing rent of £13.39 psf Airport Victoria 24–50 OSSORY ROAD Canning Town

5% forecast London industrial Ideal ‘Last Mile’ location £28.00 £25.00 rental growth in next 12 months Battersea Bermondsey £30.00 £27.00 A2 INVESTMENT MARKET £24.00 Village Term Capital Net Size Capital A205 Date Property Certain Value Initial £24.00 Forest Hill (sq ft) Value (Years) (PSF) Yield A21 Wimbledon Sergeants Industrial Estate, Sep-19 51,958 2.2 £28.15 £542 2.3% Crystal Palace Wandsworth £18.50 A222 A20 B&M, 593-613 Old Kent Road, Sep-19 13,595 6.0 £10.25m £754 2.41% Bermondsey

Matthew Clark, Central Way, Feb-19 78,619 4.0 £34.5m £439 3.23% Area Rent Term Tenant AddressA23 Date (sq ft) (psf) Certain M25 , 25-33 Unit 13 Ellersie Square, A232 Jan-19 15,634 0.5 £8.5m £544 N/a Confidential U/O 18,574 £18.60 5 Years Parkhouse Street, Camberwell London SW2 A21 A224 SMSSutton Unit 2 Admiral Hyson Industrial Aug-19 5,294 £20.00 2 Years Oct-18 14-18 Verney Road, Bermondsey 22,224 9.0 £12.0m £540 3.00% Network Ltd Estate, London SE16 4 Unit 2 Bermondsey Trading Dulux Dec-18 5,146 £23.03 5 Years May-18 2-10 Ossory Road, Bermondsey 10,667 Vacant £5.5m DRAFT£515 N/a Estate, London SE16 TLC Electrical Unit 1, Chiltonian Industrial Dec-18 7,000 £18.50 10 Years The Gate Centre, Syon Gate Distributors Estate, London, SE12 May-18 82,419 5.5 £34.3m £416 3.15% A233 Way, Great West Road, Units 1 -2, Zennor Trade Park,A22 Amazon Sep-17 4,412 £23.00 3 Years London SW12 Units 1-3, 15 Havelock Terrace, Mar-18 16,347 4.1 £8.569m £524 3.20% Battersea TLC Electrical Unit C4 Six Bridges Trading Sep-17 5,316 £18.00 5 Years Distributors Estate, London SE1 5 Units 1-4, 221 , Feb-18 14,587 Vacant £6.6m £452 N/a Souvenir Scenic Units 60 - 62, T-Marchant Bermondsey Jul-17 12,339 £18.00 5 Years Studios Ltd Industrial estate, London, SE16 Zennor Road Industrial Estate, Unit 5 Mandela Way, Sep-17 67,001 3.0 £30.015m £448 2.89% DPD UK Feb-17 14,888 £17.50 4 Years London SE1

7 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

RESIDENTIAL OPPORTUNITY

The subject premises is located within the OKR10 area of the Old Kent Road Area Action Plan, an ‘Opportunity Area’, as designated by the through the . There is significant regeneration activity proposed for the ‘Old Kent Road Opportunity Area’, as part of the Old Kent Road Area Action Plan (December 2017), including the delivery of 20,000 new homes and 10,000 new jobs by 2037. The site currently has a PTAL of 3 on a scale of 1-6b where 6b is the highest. A PTAL Rating of 3 denotes a ‘Moderate’ level of public transport accessibility. An indicative feasibility study has been drawn up by architects Broadway Malyan which has received a positive response from the London Borough of Southwark. The scheme provides 138 residential units over 10 storeys with 2170 sq m (23,360 sq ft) of industrial accommodation situated at ground floor level. The unit mix provides 9 studios, 63 1-beds, 47 2-beds and 19 3-beds of which 45 units are designated affordable. DRAFT For further information in respect of the residential development opportunity please contact the Levy Real Estate residential team. Kit Haig D 020 7747 0111 M +44 7854 963 145 [email protected]

8 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS

EPC

TBC.

DATA SITE

Access to the data site will be granted upon request.

SALE

The asset is currently held in a SPV company. It is the vendors preference to sell 100% of the shares in this SPV. Further information is available upon request.

PROPOSAL

We are instructed to seek offers in excess of £8,875,000 (Eight Million, Eight Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects a capital value of £386 per sq ft and a Net Initial Yield of 3.25%, assuming purchaser’s costs of 6.68%.

FURTHER INFORMATION DRAFT To arrange an inspection, please contact:

INDUSTRIAL INVESTMENT

Simon Higgins Gavin Quinn Jeremy Grundy Will Edgley D +44 (0) 20 7747 0130 D +44 (0) 20 7747 0121 D +44 (0) 20 7747 0131 D +44 (0) 20 7747 0120 M +44 7976 266 608 M +44 7879 408 035 M +44 7973 667 015 M +44 7748 286 333 [email protected] [email protected] [email protected] [email protected]

Messrs Levy Real Estate, for themselves and for the vendors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract: (ii) all description, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements of representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them: (iii) no person in the employment of Levy Real Estate has any authority to make or give any representation of warranty in relation to this property. November 2019.

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