INNER LIGHT INDUSTRIAL INVESTMENT Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF 2 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

investment summary

·· Rare opportunity to acquire a prime ·· Modern facility providing 6,992 sq ft ·· Neighbouring industrial rents established at Inner London light industrial investment. (649.60 sq m) of light industrial and office levels in excess of £18.00 per sq ft. accommodation. ·· Located just 2.5 miles from the City of ·· Offers are invited in excess of £1,460,000, London and 4.5 miles from London’s ·· Freehold. subject to contract and exclusive of VAT. West End. ·· Let to the strong covenant of Morrison ·· A purchase at this level would reflect aNet ·· Outstanding connectivity, situated just off Facilities Services Ltd for a further Initial Yield of 6.00%, after allowing for the A2 (), providing direct 1.5 years. purchaser’s costs of 6.08%. This reflects a access to Central London and the M25. capital value figure of £209 per sq ft. ·· Total passing rent of £93,000 per annum, ·· Diverse Business Centre in a Zone 2 location reflecting a low passing rent of £13.30 with a varied mix of commercial occupiers. per sq ft. 3 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

LOCATION LOCATION DISTANCE (MILES)

Peckham is a densely populated south eastern (A205), 3.4 miles (5.5 kms) to the south. The Numerous buses pass along the Old Kent old Kent Road (A2) 0.2 suburb of central London, located within the A2 also provides direct access to Junction 2 Road, providing frequent access to the 0.7 Borough of . The property lies in (Darenth Interchange) of the M25, some 15.2 Elephant & Castle to the northwest (53, 172 a mixed use area and is located just 2.5 miles miles (24 kms) to the east, while the London and 453 routes). south Rail Station 1.1 (4 kms) from the City of London’s square mile Docklands area is some 3 miles (4.8 km) to The ‘Old Kent Road Area Action Plan’ is Queens Road Peckham Rail Station 1.2 financial district and 4.5 miles (7.2 kms) from the north. currently being promoted by Southwark 1.2 the UK’s primary media and cultural centre of Bermondsey overground railway station is Council and is aimed at significantly London’s West End. Rail Station 1.3 approximately a mile away and provides a regenerating the neighbouring area. This The area benefits from excellent transport direct service to (7 minutes), project will include significant infrastructure 1.6 links. The A2 (Old Kent Road) trunk road while Bermondsey tube station () improvements, most notably two new tube Bermondsey Tube Station 1.6 provides access to both the City and West and Elephant & Castle (Northern and Bakerloo stations on the extension and a End to the north and the South Circular Road lines) are both within walking distance. new overground station at New Bermondsey. denmark Hill Rail Station 2.2 City of London 2.5

D R south Circular Road 3.4 E S

G S O D T I U

R J T B A R H E A M 22 london’s West End W 4.5 W 06 E O S A ’ R L T S K O A R P 20 A W 1 O R ER K A201 A R M25 15.2 D O R A

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R U D A 2 7 CLERKENWELL O A R PROPOSED K O B A L E R O N SOUTH U WEST END D NEW STATION S CITY OF LONDON ’ W T S R S BERMONDSEY H SHEPHERDS E S O T D R BUSH R A M O E A

EALING CANARY WHARF D A E O A

Central London J T R D

KENSINGTON Y T

WOOLWICH N S 8 A 0 CHISWICK B 2 L 2 A A FULHAM CAMBERWELL

PECKHAM O

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O 2 OLD KENT ROAD RICHMOND HOUNSLOW PUTNEY CLAPHAM BRIXTON R Y OPPORTUNITY AREA

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5 D N ROA NY G A A STREATHAM ALB PROPOSED L GLENGALL MITCHAM L D NEW STATION R BUSINESS MORDEN O A

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RO A D Camberwell ROAD Peckham QUEEN’S ROAD HAM QUE PECKHAM PECK EN’S ROAD 4 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

SITUATION

Glengall Business Centre is approached via The proximity to Central London is appealing either Glengall Road to the west or Ossory to a diverse range of tenants. Nearby occupiers Road to the east. The property is within a short include Newey & Eyre, ABC Storage, Tesco, walking distance of the A2 (Old Kent Road), Asda, Currys PC World, Edmundson Electrical, which lies 0.2 miles (320 m) to the north. Plumb Center, Selco Builder’s Merchants and Southern Wood Retail Park where traders Unit 3 is situated in the centre of the eastern include Argos, DFS and Maplin. terrace opposite the estate’s car park and the Glengall Road entrance.

1 OSSORY OSSORY

GLENGALL ROAD

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Subject 8 Property 13 5 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

WEST END CITY OF LONDON

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C UNIT 3 GLENGALL BUSINESS D CENTRE D SOUTHERN WOOD OA E R RETAIL PARK L AL NG DAMIEN HIRST LE F G K D A H G F O R A2 Y O R L O D H S KE S N O T R L G OA I D

J I K SIX BRIDGES TRADING ESTATE

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ELEPHANT & CASTLE M TUBE STATION 6 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

DESCRIPTION PLANNING

The Glengall Business Centre was constructed The ground floor warehouse benefits from a The first floor office accommodation The current permitted use of the property falls in 2007 by Exton Estates and comprises 13 roller shutter door, floor loading of 30kn/sq m, incorporates a raised access floor, double within Classes B1(c) or B8 of the Town and light industrial units arranged in two terraces. 4.4 metres (14.4 ft) clear floor to ceiling height glazed windows, recessed lighting, gas-fired Country Planning (Use Classes) Order 2005. Unit 3 is arranged over two floors and provides and a small kitchen area and a disabled WC. central heating and male and female WCs. ground floor warehouse accommodation with a The tenant has largely fitted out the ground full floor of offices above. floor as office accommodation. 7 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

ACCOMMODATION TENURE

The property has been measured in accordance The property is held Freehold. with the RICS Property Measurement (1st Edition) and provides a total gross internal floor area of 6,992 sq ft (649.60 sq m).

DESCRIPTION SQFT SQM

Ground Floor Warehouse 3,496 324.80

First Floor Offices 3,496 324.80

Total Area (GIA) 6,992 649.60

The tenant has 2 spaces within their lease demise and reserves the right to park on 6 defined spaces on the estate car park, opposite the entrance to their unit. 8 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

TENANCY COVENANT INFORMATION

The property is let on fully repairing and (Company reg: SC120550) insuring terms for a period of 10 years from Morrison Facilities Services specialises in providing facilities services to private businesses and 12th June 2009 expiring on 11th June 2019. central and local government bodies. The core area of the business is the repairs and maintenance The current passing rent of £93,000 per annum of social housing. Morrison is responsible for the maintenance of more than 400,000 properties in represents a low rent of £13.30 per sq ft. the United Kingdom. Morrison Facilities Services Ltd was purchased by Mears Group Plc in November 2012 and the Service Charge company has produced the following accounts over the last three years:

Accounting Period Ending Turnover NET ASSETS Shareholders FUNDS The tenant is liable for a contribution to the general maintenance, upkeep and security of 31st December 2016 £72,453,000 £2,599,000 (£954,000) the Glengall Business Centre. The total service 31st December 2015 £85,767,000 £4,383,000 (£9,189,000) charge budget for the year ending the June 2018 is £54,860, which reflects approximately 31st December 2014 £93,422,000 (£770,000) (£8,740,000) £0.61 per sq ft. Full details of the service charge are available upon request.

FLOOD REPORT

Capita undertook a flood risk assessment in October 2016. The report highlighted that the wider estate represents a ‘Low’ risk of flooding. A copy of the report is provided on the Clay Street data site supporting the sale. 9 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

OCCUPATIONAL MARKET COMMENTARY

The dwindling supply of industrial accommodation imbalance. The combined result of this has seen Following is a list of recent comparable leasing coupled with robust occupational demand a continued increase in headline rental levels transactions highlighting this: continues to drive the rental tone in the south coupled with a reduction in incentive packages. east and in particular Greater London. PROPERTY DATE SIZE LEASE RENT Strong tenant demand has been from (sq ft) (Expiry/Break) (psf) e-commerce and discount retailers who have been on the acquisition trail to satisfy Unit 12, Deptford Trading Estate, SE8 Quoting 4,515 - q.£17.00 increased turnover. Tenants are particularly Unit 13, Ellerslie Square Industrial Estate, Brixton, SW2 Under Offer 18,574 10.0/5.0 c.£18.60 attracted to Inner London manufacturing hubs Unit C4, Six Bridges Trading Estate, Southwark, SE1 Sep-17 5,316 10.0/5.0 £18.00 to service the needs of clients based in the West End and City markets at short notice. 28-32, Ruby Street, Southwark, SE15 Aug-17 24,979 5.0/3.0 £16.50

The continued conversion of existing industrial Units 60-62, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 12,339 10.0/5.0 £18.00 stock to higher value alternative uses is Units 70-72, T-Marchant Industrial Estate, Bermondsey, SE16 Jul-17 5,276 10.0/5.0 £18.00 further intensifying the supply versus demand

INVESTMENT MARKET COMMENTARY

Demand continues to be strong for industrial PROPERTY DATE PRICE NIY SIZE TENANTS LEASE RENT CAP VAL assets, particularly in the London suburbs, with (sq ft) (Expiry/Break) (psf) (psf) investors drawn to towards the compelling Unit 18, Mitcham Industrial Estate, CR4 Aug-17 £4,250,000 5.19% 29,109 Go Carting for Fun Ltd 19.00/9.00 £8.00 £146.00 fundamentals of a strong occupational market Unit A, Link 20, Bellingham Way, Aylesford Jun-17 £2,475,000 5.50% 24,343 CSC Computer Sciences Ltd 9.00/4.00 £7.02 £101.67 with very low availability rates, strong rental growth and limited speculative development. Units 1-2 Brent Terrace, Staples Corner, NW2 Dec-16 £4,600,000 4.68% 25,834 Clockwork Removals Ltd 9.50 £8.89 £178.06

The industrial sector looks set to continue Unit 6 Glengall Business Centre, Peckham, SE15 Nov-16 £1,475,000 - 7,746 owner occupier - - £190.42 to deliver strong investment returns, driven 2 McNicol Drive, Park Royal, NW10 Aug-16 £5,500,000 4.43% 23,938 Binghams Ltd 6.50 £10.38 £229.76 by a combination of both capital growth and ongoing rental growth. Unit G, Hubert Road, Brentwood, CM14 Jan-16 £5,850,000 5.90% 48,362 Macarthys Laboratories Ltd 15.10/10.10 £7.55 £120.96

Recent industrial investment transactions 15 Ellis Road, Mitcham, CR4 Jan-16 £4,940,000 5.40% 32,586 Hovis Ltd 10.80 £8.65 £151.60 highlighting the strength in this sector include: 10 Unit 3 Glengall Business Centre, 43-47 Glengall Road, London SE15 6NF

EPC Proposal FURTHER INFORMATION

The property has an EPC rating of D (99). A full We are inviting offers in excess of £1,460,000 Should you require further information or DATAROOM: Additional information to copy of the Energy Performance Certificate is subject to contract and exclusive of VAT. A would like to arrange a viewing, please contact: support the sale can be found in the secure available upon request. purchase at this level would reflect a Net Initial dataroom hosted at www.claystreet.co.uk George Freeman: Yield of 6.00% allowing for purchaser’s costs of [email protected] Access details can be provided upon request. 6.08%. Rob Atkins: VAT This reflects a capital value figure of£209 per [email protected] sq ft. The property is elected for VAT and therefore Chris Dickin: VAT will be payable on the purchase price. It is [email protected] anticipated that the sale will be structured as a Transfer of a Going Concern. Telephone: 0207 935 2831

IMPORTANT INFORMATION: 1. No description or information given by Clay Street Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Clay Street Ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: www.diablodesign.co.uk November 2017