Thistlebrook Industrial Estate Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB
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Thistlebrook Industrial Estate Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB SecurelyThistlebrook Industrial Let, Highly Estate, Eynsham Reversionary, Drive, Abbey Wood, South Greenwich, East London London SE2 9RB Industrial Investment 1 THAMES BARRIER LONDON CITY AIRPORT t WOOLWICH PLUMSTEAD NATHAN WAY BIRCHMERE PARK EASTERN WAY (A2016) EYNSHAM DRIVE HARROW MANORWAY (A2041) ABBEY WOOD Crossrail Terminus Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 2 Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 3 Investment Summary • Well located industrial estate in Abbey Wood within The London Borough of • Low current rent of £322,480 per annum, which equates to £5.34 per sq ft. Greenwich. • Reviewed to 7,550 sq ft units. • Situated on the south side of Eynsham Drive, in close proximity to Abbey Wood Significant reversionary potential at next review on 20th November 2019. Train Station which is to be the south terminus of Crossrail opening in December • 2018. • Average ERV for Industrial rents in South East London of £12.50 - £14.50 per sq ft. • Comprising a terrace of eight adjoining warehouse units on a 2.51 acre site and • Seeking Offers in excess of £12,000,000 (Twelve Million Pounds) subject to providing an approximate GIA of 60,400 sq ft. contract and exclusive of VAT. • Entirely let to The London Borough of Greenwich on a full FRI lease for a term • Net initial yield of 2.5% after allowance for unadjusted purchasers costs of 6.8%. expiring 19th November 2104 (86.70 years unexpired). • Reversion in excess of 4.5% at November 2019 review based on our conservative ERVs. Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 4 Location Thistlebrook Industrial Estate is located within the Royal Borough of Greenwich, approximately 5.76 miles east of Canary Wharf, 9 miles south east of The City and 6 miles south east of Stratford. Greenwich benefits from excellent road communications with the A102 connecting Canary Wharf and Central London via the Blackwall Tunnel and to the M25 via the A2. The A2 also links into the South (A205) and North Circular (A406) serving London. Rail links are also strong with Abbey Wood train station providing regular direct services to London Bridge and Cannon Street stations in an approximate journey time of 24 minutes and 31 minutes respectively. The Thames Clipper operates a commuter service from Central London to the 02 and the 02 Express between Waterloo, London Eye Pier and North Greenwich Pier at the 02 on event nights. London City Airport is located approximately 2.45 miles to the north west, connecting Abbey Wood to over 42 locations across Europe and North America. ABBEY WOOD Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 5 Crossrail Abbey Wood is set to benefit further from a brand new rail station which will act as the south east terminus for Crossrail (Elizabeth Line) scheduled to open in December 2018. Abbey Wood will upon opening of the station, benefit from direct rail services into the City and West End with an approximate journey time of 17 minutes to Liverpool Street and 25 minutes to Bond Street Stations. Situation The subject property is situated on the south side of Eynsham Drive approximately 0.5 miles north of Abbey Wood Train Station (Crossrail due to open in December 2018). The A2041 (Harrow Manor Way) lies directly west of the property off the roundabout junction with Eynsham Drive. The A2041 connects to the south with the A206 and to the north with the A2016. Local occupiers in the area include Lidl, Sainsburys, PDSA and Jessops. The subject property is in close proximity to Cross Quarter, a new recently completed regeneration scheme which includes a brand new 81,000 sq ft Sainsburys food store, 5000 sq ft of retail space, a nursery and 200 new homes. The Scheme is forecast to generate over £125m of value for the local economy over the next 10 years, creating over 500 full and part time jobs. THISTLEBROOK Furthermore, Peabody have had planning permission granted to develop 1,500 new homes across four sites in close proximity to Abbey Wood Train Station. The first phase of the development will be Southmere Village which will include 525 new homes, a new SUBJECT PROPERTY library, and 40,000 sq ft of commercial space for cafes, retail and local enterprises. Southmere village is due to start in 2018 with the final phase to be completed by 2024. Further information can be found at: https://www.thamesmeadnow.org.uk/whats- happening/south/a-new-village-for-south-thamesmead Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 6 Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 7 OS Plan B&W 54710 54720 0 0 Description 179600 179600 Thistlebrook Industrial Estate comprises a terrace of eight warehouse units. The units were built in the late 1970’s of steel portal frame construction with elevations of part external brick, part profile cladding. Each unit provides a warehouse with a maximum eaves height of 6.25m and each incorporate a roller shutter door. At the front of each unit is a two-storey office block, some of the offices have been refurbished and benefit from heating and strip lighting. Units 1 and 2 had a new roof overlaid in 2014. Additionally unit 7 had its roof replaced in 2017. Externally, to the front of the estate, there is parking for approximately 77 cars. The estate is secured by fencing and benefits from dual access from Eynsham Drive, in front of and to the side of the Lidl unit. The property provides an approximate site area of 2.51 acres (1.014 hectares) and a low site coverage of 48%. 179500 179500 Accommodation The property provides a total gross internal area of approximately 60,400 sq ft. (5,611 sq m) in accordance with the accommodation table below. The purple shaded areas on the plan denote rights of way at all times and for all purposes with or without vehicles from Eynsham Drive. Area Sq m Sq ft EPC Rating Unit 1 701.41 7,550 C 54710 54720 Unit 2 701.41 7,550 D 0 0 Unit 3 701.41 7,550 D Metre s Unit 4 701.41 7,550 C 0 5 10 20 30 40 50 Unit 5 701.41 7,550 C Scale: 1:1250 Unit 6 701.41 7,550 C Thistlebrook Industrial Estate Unit 7 701.41 7,550 C Eynsham Drive Supplied by: National Map Centre Abbey Wood Plot centre co-ordinates: 547164,179533 Unit 8 701.41 7,550 E License number: Hert10003196s 1 Greenwich Download file: lewispart_thistlebrk.zip Produced: 20/02/2018 London Project name: lewispart_thistlebrk Serial number: 1950574 Total 5,611 60,400 SE2 9RB © Crown copyright and database rights 2018. OS 100031961 Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 8 Tenure London Industrial Market The subject property is held long leasehold for a term of 125 years from 20th November The London industrial market has seen significant rental growth across all London 1979, providing an unexpired term of 86.70 years at a peppercorn rent. boroughs over the past 5 years. In South East London, prime industrial rents in Charlton/Woolwich have seen the largest increase, rising by 22.7% in the year to date to £13.50 per sq ft. Secondary rental values have continued to outpace prime values, Tenancy with Charlton/Woolwich leading the way again with values up by 26.3%. The subject property is entirely let to The Mayor and Burgesses of The London Borough of Greenwich for a term of 125 years from 20th November 1979 expiring 19th Asking Rent Per Sq Ft November 2104, on FRI terms at a current rent of £322,480 per annum, only equating to £5.34 per sq ft. £18 The rent is subject to 5 yearly upwards only rent reviews to 7,550 sq ft units, based on £16 77.143% of the “commercial yearly rent”. The commercial yearly rent is defined as “the NOV 2019 aggregate of the clear yearly rents at which each individual factory or other unit erected £14 Review Date upon the demised premises might reasonably be expected to be let.” £12 The next rent review is on 20th November 2019. Greenwich Council occupy units 1 and 2 and have sub let the remaining units. £10 £8 £6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 w Light Industrial w London The above table produced by Costar is for the London Industrial market with Light Industrial shown in green. The graph forecasts increasing asking rents across the industrial sector in London. The average asking rent for Light Industrial (as defined by Costar) is currently recorded at £13.50 per sq ft. Costar forecasts that by Q4 2019 (rent review date for the subject property) that the average asking rent for Light Industrial will be approximately £15.00 per sq ft. The levels of capital growth witnessed throughout the London and South East market over the last three years has had an inevitable bearing on land values which have risen steadily within the core industrial areas. This is likely to result in developers shifting focus to more outlaying areas in the near future, where developers may see better value and an ability to construct more affordable units for the secondary market. Furthermore, strong levels of demand in the London Industrial market have focused on smaller unit sizes suggesting a strong argument for the next wave of speculative development to be focused on small and medium sized units.