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Thistlebrook Industrial Estate Eynsham Drive, , , SE2 9RB

ThistlebrookSecurely 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

PLUMSTEAD

NATHAN WAY

BIRCHMERE PARK

EASTERN WAY (A2016)

EYNSHAM DRIVE

HARROW MANORWAY (A2041)

ABBEY WOOD 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 , 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 via the 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, and North 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 Street and 25 minutes to 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-

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 0 54720 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 0 54720 0 Unit 2 701.41 7,550 D 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.

Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 9 ERV The below table outlines recent rental transactions in the South East London Industrial market.

Address Size (sq ft) Achieved Rent (psf) Date Unit 10, 119-121 Nathan Way, SE28 0AQ 510 £16.67 Nov-17 Unit 6, 119-121 Nathan Way, SE28 0AQ 2,334 £14.71 Mar-17 Unit 2, Orchard Business Centre, Kangley Bridge Road, Sydenham SE26 3,369 £13.50 Feb-17 Unit 13 Quadrant Court, Crossways Boulevard, Crossways, Dartford, 3,555 £12.50 Jan-17 Unit 1 io Centre, Woolwich 2,998 £13.50 Nov-16 Unit 1 Orchard Business Centre, Kangley Bridge Road, Sydenham, SE26 2,946 £13.50 Oct-16 14 Meridian Trading Estate, Bugsby’s Way, Charlton SE7 8,680 £13.75 Sep-16 Unit 7 Business Park, Farraday Way 7,541 £12.50 Nov-15 Unit 1 Matrix Trade Park, Victoria Road, Dartford 4,000 £12.50 Jun-15 Unit 7, Block 2 Woolwich Industrial Dockyard 2,486 £12.47 Under Offer Unit 6, Veridian Park, 8,287 £12.51 (quoting) Under Offer Unit 11 Schooner Park, Crossways, Dartford 3,528 £15.02 (quoting) On the market

Based on this rental evidence, we understand that the potential ERV at next review (Q4 2019) should be in the range of £12.50 - £14.50 psft. An increase in this range would reflect the following potential rental uplifts:

Uplift @ £12.50 psft £582,429*

Uplift @ £13.50 psft £629,024*

Uplift @ £14.50 psft £675,618*

*This rent is calculated as 77.143% of ERV in accordance with the rent review provision in the tenants lease.

Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 10 Asset Management Initiatives The following may be suitable asset management opportunities in the short/ medium and longer term:

• Benefit from the next rent review on 20th November 2019. • Re gear the head lease with the Council. • Purchase Freehold from the Council. • Agree surrender of the underlease to the Council and refurbish individual units. • Long term alternative uses such as residential or leisure (subject to necessary planning consents).

VAT Value added tax is applicable to the sale of this property and it is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

Proposal We are seeking offers in excess of £12,000,000 (TWELVE MILLION POUNDS) subject to contract and exclusive of VAT. A purchase at this level will reflect a net initial yield of 2.51% after allowance for unadjusted purchaser’s costs of 6.8%.

Depending on the next review in November 2019, the reversionary yield could reflect the following

Potential Rent per sq ft Reversionary Yield Review to £12.50 per sqft 4.50% Review to £13.50 per sqft 4.90% Review to £14.50 per sqft 5.27%

Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 11 Further Information Should you wish to view the property or require any further information please contact the sole agents.

Stephen Raingold [email protected]

Joseph Rantor [email protected]

Lewis & Partners Chartered Surveyors and Property Consultants 15/19 Cavendish Place, London W1G 0QE

Tel: 020 7580 4333 www.lewisandpartners.com

SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT

LEWIS & PARTNERS LLP FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY WHOSE AGENT THEY ARE GIVE NOTICE THAT:-

1. These particulars do not constitute any part of the offer for sale or contract for sale. 7. Any properties or drawings of the relevant property or part thereof or the neighbouring areas may not depict the property or the 2. All statements contained in these particulars as to this property are made without responsibility on the part of Lewis & Partners LLP or the neighbouring areas at the date a prospective purchaser or tenant inspects the property. Prospective purchasers are strongly advised to vendors or lessors. inspect the property and neighbouring areas. 3. None of the statements contained in these particulars as to this property are to be relied on as statements or representations of fact. 8. Lewis & Partners LLP have not measured the property and have relied upon clients information. Therefore Lewis & Partners LLP give no 4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in warranty as to their correctness or otherwise and the purchasers must rely on their own measurements. these particulars. 9. All terms quoted are exclusive of value added tax unless otherwise stated. 5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the property. The 10. The vendors do not make nor do Lewis & Partners LLP any person(s) in their employment give any warranty whatsoever in relation to this plans are photographically reproduced and therefore not to scale except where expressly stated. The plans, photographs or drawings are for property. identification purposes only. 11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale. 12. These details were prepared as of MARCH 2018

Adrian Gates Photography & Design 07710 316 991 Thistlebrook Industrial Estate, Eynsham Drive, Abbey Wood, Greenwich, London SE2 9RB 12