The Longmead Business Centre LONGMEAD INDUSTRIAL ESTATE • • KT19 9QQ

Prime Highly Reversionary Greater London Industrial / Trade Park Investment The Longmead Business Centre 02 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY INVESTMENT SUMMARY LOCATION SITUATION • Exceptional opportunity to acquire a highly reversionary Greater London industrial/trade DESCRIPTION counter estate investment. ACCOMMODATION • A prime inner M25 industrial/trade counter location within an affluent catchment area SITE benefitting from excellent connectivity to Central London, and to the National PLANNING Motorway network. TENANCY SCHEDULE • The property is a well specified late 1980’s estate providing 77,982 sq ft GIA across 10 units ranging TENANCY from 3,894 sq ft to 13,301 sq ft. TENURE • Fully let to 9 tenants on 10 leases, with an average weighted unexpired term of 5.3 years COVENANT INFORMATION to expiries and 4.5 years to break options. • Let to recognised covenants including ASSET MANAGEMENT Saint-Gobain, Travis Perkins, Howdens OPPORTUNITIES and Ford, with 43% of the income Experian OCCUPATIONAL MARKET rated as ‘Very Low Risk.’ • The estate produces a rent of £760,180 per INVESTMENT MARKET annum which reflects a low average rent VAT of only £9.75 per sq ft. • Freehold. DUE DILIGENCE • Highly restricted supply of industrial premises SERVICE CHARGE in the general vicinity, which is exacerbated by the well documented erosion of industrial land EPC in Greater London. DATA ROOM ACCESS • Highly reversionary estate benefitting from tangible asset management opportunities, with PROPOSAL 100% of the income experiencing lease events within the next 3 years. CONTACT • We have been instructed to seek offers in excess of £17,800,000 subject to contract and exclusive of VAT. A purchase at this level would reflect < HOME > a net initial yield of 4.00%, and a capital value per sq ft of £232 per sq ft. Cambridge

A423 Bedford

A1 A5 A43 Banbury A6 Milton Keynes Sa ron Walden A131 A421 M1 A10 The Longmead Business Centre 03 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ A44 Leighton Buzzard Stevenage Bicester Luton Braintree INVESTMENT SUMMARY A120 A41 LOCATION LOCATION A1(M) SITUATION Epsom is an affluent Greater ROAD AIR RAIL London, prime industrial/trade London Heathrow Airport, the UK’s Epsom is well served by Epsom Railway Station which is less than 1 mile to the south. DESCRIPTION counter location of great LOCATIONA414 DISTANCE A40 Aylesbury largest cargo airport, lies 14 miles to the It provides services to the key mainline stations of London Waterloo, London Victoria strategic importance within the A3 (Kingston Rd turn off) 3.7 milesHarlow north, and London Gatwick Airport is and London Bridge, with a fastest journey time of 36 minutes. The station also provides ACCOMMODATION M25. This highly accessibleSt Albans and Oxford M25 (J9) 4.9 miles within 19 miles to the north. services to , Dorking, , and . Epsom is well served by Epsom A4popular1 commuter town is SITE M23 (J8) 11.6 miles ChelmsforRailwayd Station which is less than 1 mile to the south. It provides services to the key situated between the A3 and LOCATION DISTANCE mainline stations of London Waterloo, London Victoria and London Bridge, with a fastest the M25 Motorways; and benefits A414 PLANNINGA4010 HeathrowM11 14 miles journey time of 36 minutes. The station also provides services to Guildford, Dorking, from excellent access to both Gatwick 19 miles Ashtead, and Leatherhead. Epsom is the final regional branch of the proposed Crossrail TENANCY SCHEDULE Central London and the National City Airport 25 miles 2 train link, after Stoneleigh and West. There will be capacity for up to 8 trains per A420 Motorway network. TENANCYHigh Wycombe Watford Enfield hour in each direction after completion in 2033, significantly improving the Borough’s rail M25 services; particularly in terms of frequency and speed of connection to Central London. M25 A12 A34 TENURE COVENANT INFORMATION A10 M40 ASSET MANAGEMENT Romford Basildon A232 OPPORTUNITIES A40 Leytonstone Felstead Road OCCUPATIONAL MARKET SlougSloughh A13 Longmead Kiln Lane Industrial Estate Industrial Estate INVESTMENT MARKET M4 LONDON Longmead Rd VAT Heathrow Fulhamlham Longmead AAirportirport Richmond Dartford Business Centre DUE DILIGENCE WaWandsworthndsworth Bracknell Blenheim Rd SERVICE CHARGE Kingston upon A20 TThameshames MertonMerton Newbury A240 EPC M3 M20 B284 Weyybridgebridge Epsom SuttonSutton M2 A24 A33 DATA ROOM ACCESS Croydon A3 A23 PROPOSAL A24 Woking 10 BBansteadanstead EPSOM 9 CONTACT B280 Leatherhead M25 A34 8 < HOME > A24 MaidstoneA24 Guildford Dorking Reigate Andover M23 B290 M To Gatwick AirporAirportt Tonbridge

A31 A3

A22 Salisbury Winchester

M27 The Longmead Business Centre 04 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY SITUATION LOCATION SITUATION Longmead Industrial Estate is located off Longmead Road, with dual access DESCRIPTION points to the estate from Felstead Road and Blenheim Road, leading ACCOMMODATION directly to the A24. The A24 provides 14 direct access to Central London, the SITE 15 13 A3, and M25 Motorway. 6 PLANNING Longmead Industrial Estate is 16 recognised as the prime industrial/ TENANCY SCHEDULE 17 12 trade counter location in Epsom. Other 7 5 TENANCY occupiers on the estate include Ford, Kia, Skoda, Mitsibushi, Vauxhall, 18 8 TENURE Automotive Trade Supplies, Screwfix, HSS Hire, HPS Heating and Plumbing 11 4 COVENANT INFORMATION Supplies Limited, Wolseley, Hitchcock 20 9 and King Timber and Builders 10 ASSET MANAGEMENT 19 Merchants, Buildbase, Travis Perkins, OPPORTUNITIES Tchibo and Storage King. OCCUPATIONAL MARKET KEY INVESTMENT MARKET 1 Wolseley. 3 2 Skoda/Vauxhall. VAT 3 Kia/Mitsibushi. 4 Units A1 – A4 DUE DILIGENCE 5 Blenheim House 1 6 Ford SERVICE CHARGE 7 Units B1 – B3 8 Unit C EPC 9 Units D1 – D2 2 10 M R Mouldings Ltd. DATA ROOM ACCESS 11 TensCare 12 Tchibo 13 Screwfix PROPOSAL 14 HSS Hire 15 Storage King CONTACT 16 Awe 17 Photo-Me 18 Epsom & Ewell Borough Council 19 Hitchcock & King < HOME > 20 Travis Perkins The Longmead Business Centre 05 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY LOCATION SITUATION DESCRIPTION ACCOMMODATION SITE D2 PLANNING A1 D1 TENANCY SCHEDULE A2 A3 TENANCY DESCRIPTION ACCOMMODATION TENURE A4 C Longmead Business Centre is a well specified industrial/trade The estate has been measured on a Gross Internal Area basis in COVENANT INFORMATION counter estate that was built in the late 1980’s. The estate accordance with the RICS Property Measurement (2nd Edition). comprises 10 units and provides 77,982 sq ft in units ranging ASSET MANAGEMENT GIA GIA B3 from approximately 3,900 sq ft to 13,300 sq ft. The property Unit Tenant (SQ FT) (SQ M) OPPORTUNITIES is arranged in 3 terraces and 1 stand alone unit. The site has B2 A1 Saint-Gobain BD Ltd 6,068 563.7 B1 OCCUPATIONAL MARKET 2 separate access points. Units D1 and D2 are accessed off Felstead Road and the remainder of the estate is accessed A2 Ford Retail Limited 5,670 526.8 INVESTMENT MARKET off Blenheim Road. A3 Mould Growth Consultants Ltd 5,683 528 The units are of steel portal frame construction, with concrete A4 Sartourious UK Ltd 13,301 1,235.8 VAT floors to the warehouse areas and a minimum eaves height B1 Ergonomic Solutions Ltd 5,807 539.5 DUE DILIGENCE of 6m. The roofs comprise built up insulated profiled metal B2 Majestic Leisure Limited 3,894 361.8 sheeting incorporating GRP roof lights throughout. B3 Travis Perkins (Properties) Ltd 5,756 534.7 SERVICE CHARGE The elevations comprise a mixture of built up insulated profiled C Beacon Group Limited 8,427 782.9 metal sheeting and masonry cavity wall construction. EPC The warehouse space is served by insulated roller shutter D1 Howden Joinery Properties Ltd 12,108 1,124.9 ORDNANCE SURVEY PLAN – FOR vehicle access doors. D2 Travis Perkins (Properties) Ltd 11,268 1,046.8 DATA ROOM ACCESS INDICATIVE PURPOSES ONLY The premises have 2 storey office buildings. These areas are TOTAL GIA 77,982 7,244.9 PROPOSAL generally finished with suspended ceilings with mineral fibre tiles. The offices are either carpeted, or have ceramic glazed CONTACT floor tiles or vinyl floor finishes. The windows are aluminium framed powder coated double glazed units. The premises SITE PLANNING are served by all mains services and have toilet facilities for < HOME > both sexes. The estate comprises 3.8 acres (1.54 hectares) which provides The original Planning Permission, T.P.3/No.6/87/0728/0389, was granted on 24th Externally the estate benefits from good loading yards and a site cover of 37.44%. July 1987. This permits use within classes B2 and B8 of the Use Classes Order ample car parking. 1987 for industrial and warehouse purposes. The Longmead Business Centre 06 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY TENANCY SCHEDULE LOCATION

SITUATION SoT % of Area Lease Next Effective Lease UXT UXT Current Rent SoC Unit Tenant - L&T Comments Income sq ft Start Review Break Expiry (TBO) (Exp) Rent psf (Repair) DESCRIPTION 1954 ACCOMMODATION Unit A1 Saint-Gobain BD Ltd 8.0% 6,068 13-Mar-13 09-Nov-18 0.2 yrs 0.2 yrs £60,670 £10.00 Outside No SITE Unit A2 Ford Retail Limited 7.4% 5,670 23-Jun-15 22-Jun-20 1.8 yrs 1.8 yrs £56,108 £9.90 Inside Yes Mould Growth PLANNING Unit A3 7.4% 5,683 30-Jan-15 30-Jan-20 30-Jan-25 29-Jan-30 6.4 yrs 11.4 yrs £56,520 £9.95 Inside Yes Tenant only break option Consultants Ltd TENANCY SCHEDULE Break (Sept 2018 - 6m notice) not Sartorious UK Ltd exercised. Tenant only break option. TENANCY (Guaranteed by Unit A4 16.3% 13,301 29-Sep-88 29-Sep-18 28-Sep-23 5.1 yrs 5.1 yrs £124,000 £9.32 Inside No Part sublet to Sartorious Intec UK Ltd Sartorius Lab Holding from 26th March 2015 - 28 Sept 2020 TENURE GmbH) at £5,550 p.a.. COVENANT INFORMATION Ergonomic Solutions Tenant only break option - 6 months Unit B1 7.0% 5,807 14-Jul-14 14-Jul-19 14-Jul-19 13-Jul-24 0.9 yrs 5.9 yrs £53,000 £9.13 Outside No ASSET MANAGEMENT (WEur) Ltd written notice. OPPORTUNITIES Majestic Leisure Potential Reversionary Lease @ c.£13 Unit B2 5.1% 3,894 08-Oct-14 07-Oct-19 1.1 yrs 1.1 yrs £39,000 £10.02 Inside No Limited psf? Rent deposit of £15,600 held. OCCUPATIONAL MARKET Travis Perkins Unit B3 7.2% 5,756 01-Nov-09 31-Oct-19 1.2 yrs 1.2 yrs £54,587 £9.48 Inside No INVESTMENT MARKET (Properties) Ltd Beacon Group VAT Unit C 11.0% 8,427 09-Apr-15 08-Apr-20 1.6 yrs 1.6 yrs £83,520 £9.91 Outside Yes Rent deposit of £30,000 held. (International) Limited DUE DILIGENCE Howden Joinery Unit D1 17.1% 12,108 22-Jul-15 22-Jul-20 21-Jul-30 11.9 yrs 11.9 yrs £130,000 £10.74 Inside No SERVICE CHARGE Properties Limited Travis Perkins Break (29 Sept 2018 - 6m notice) EPC Unit D2 13.5% 11,268 29-Sep-13 29-Sep-18 28-Sep-23 5.1 yrs 5.1 yrs £102,775 £9.12 Inside No (Properties) Ltd not exercised. DATA ROOM ACCESS Elec South-East Electricity 20-May-88 17-May-38 17-May-38 120 yrs 120 yrs £0 £0.00 PROPOSAL sub-station Board Total 77,982 4.5 yrs 5.3 yrs £760,180 £9.75 CONTACT TENANCY TENURE < HOME > The property is fully let to 9 tenants on 10 leases, with an average weighted unexpired lease term of approximately 5.3 years to expiries and 4.5 years to break options. Freehold. The Longmead Business Centre 07 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

ASSET MANAGEMENT INVESTMENT SUMMARY COVENANT INFORMATION OPPORTUNITIES LOCATION SITUATION The estate is fully let, and benefits from a strong covenant profile with a number of recognisable national and regional trade and industrial There are several short and medium term opportunities to capture occupiers. Approximately 43% of the income is to an Experian rating of ‘Very Low Risk, with a further 41% of the income to Experian rated the rental growth through upcoming expiries and rent reviews on the DESCRIPTION ‘Below Average Risk.’ estate, with 100% of the income due to experience a lease event over the course of the next three years. Several tenants have approached ACCOMMODATION % Company Experian the Landlord already with a view to negotiating early lease renewals. Tenant Turnover Pre-Tax Profit Total Net Worth Income Reg. No. Risk Rating SITE The graph below indicates the annual percentage split of income Dec 17: £87,300,000 Dec 17: £68,900,000 Dec 17: £332,700,000 subject to a lease event over the next three years. Travis Perkins PLANNING 20.7% 468024 Very Low Risk Dec 16: £76,937,000 Dec 16: £90,233,000 Dec 16: £504,303,000 (Properties) Ltd Dec 15: £71,347,000 Dec 15: £32,318,000 Dec 15: £463,472,000 There are further opportunities to restructure the leases to obtain TENANCY SCHEDULE greater exposure to the excellent trade covenants of Travis Perkins Dec 17: £53,759,000 Dec 17: £1,532,000 Dec 17: £234,000 YEARS Howden Joinery Below Average and Saint-Gobain. 17.1% 5656171 Dec 16: £47,882,000 Dec 16: £501,000 Dec 16: -£381,000 TENANCY Properties Limited Risk YEARS Dec 15: £45,202,000 Dec 15: £228,000 Dec 15: -£312,000 TENURE YEARS24% YEAR Dec 16: £7,825,631 Dec 16: £129,893 Dec 16: -£615,595 Above Average Lease Event Analysis: Sartorious UK Ltd 16.3% 1126814 Dec 15: £7,461,509 Dec 15: -£54,733 Dec 15: -£731,769 COVENANT INFORMATION Risk Dec 14: £9,206,681 Dec 14: -£41,802 Dec 14:24 -£681,053% YEAR 24% YEARS YEAR38% ASSET MANAGEMENT Dec 17: £12,094,886 Dec 17: £57,945 Dec 17: -£605,227 Beacon Group Below Average OPPORTUNITIES 11.0% 8270847 Dec 16: £10,877,848 Dec 16: -£141,705 Dec 16: -£967,587 (International) Limited Risk Dec 15: £9,405,657 Dec 15: £191,351 Dec 15: -£1,067,766 OCCUPATIONAL MARKET 24% 38% 38 YEAR % Dec 16: £736,225,000 Dec 16: £26,775,000 Dec 16: £158,423,000 Saint-Gobain Building 8.0% 1647362 Very Low Risk Dec 15: £693,020,000 Dec 15: £30,090,000 Dec 15: £162,615,000 INVESTMENT MARKET Distribution Ltd Dec 14: £681,498,000 Dec 14: £6,640,000 Dec 14: £141,576,000 38% VAT Jun 17: £- Jun 17: £- Jun 17: £167,237 Mould Growth Below Average 7.4% 884771 Jun 16: £- Jun 16: £- Jun 16: £223,888 DUE DILIGENCE Consultants Ltd Risk Jun 15: £- Jun 15: £- Jun 15: £221,070 SERVICE CHARGE Dec 17: £1,729,307,000 Dec 17: £15,400,000 Dec 17: £71,900,000 Ford Retail Limited 7.4% 191596 Very Low Risk Dec 16: £1,634,526,000 Dec 16: £18,303,000 Dec 16: £59,173,000 EPC Dec 15: £1,628,682,000 Dec 15: £12,454,000 Dec 15: £50,111,000 DATA ROOM ACCESS Dec 16: £- Dec 16: £- Dec 16: £743,778 Ergonomic Solutions 7.0% 5956867 Very Low Risk Dec 15: £- Dec 15: £- Dec 15: £713,039 (WEur) Ltd PROPOSAL Dec 14: £- Dec 14: £- Dec 14: £914,927 Aug 17: £- Aug 17: £- Aug 17: £353,295 CONTACT Majestic Leisure Below Average 5.1% 6179186 Aug 16: £- Aug 16: £- Aug 16: £197,892 Limited Risk Aug 15: £- Aug 15: £- Aug 15: £117,868 YEARS Guarantee: Sartorius HOME 16.3% < > Lab Holding GmbH YEARS38%

38% YEARS

YEARS 38% 38% The Longmead Business Centre 08 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY OCCUPATIONAL MARKET LOCATION SITUATION There is an acute shortage of modern, existing warehouse/industrialCambridge space in Epsom and the Inner M25 markets; given there has been a scarcity of new speculative A423 Bedford DESCRIPTION development combined with limited redevelopment of older stock in the locality. This lack of supply is further exacerbatedA1 through the well documented erosion A5of industrial land supply for higher value uses. ACCOMMODATION A43 Banbury This historically low supply, coupledA6 with the continuing strength of tenant demand SITE Milton Keynes has resulted in significant rental growth over the last 36 months. ThisSa r haso ensuredn Walde thatn A131 A42this1 area has been one of the best performing for rental growth in the sector, and we M1 A10 PLANNING anticipate that this will continue in the foreseeable future. This market is typified by TENANCY SCHEDULE the sale of Wrenbridge’s Centron Scheme, on Crompton Way in Crawley in August 2018. This development is under construction and is vacant. It comprises 2 units. Unit 1 will TENANCY comprise about 19,700 sq ft and Unit 2 will be approximately 33,500 sq ft. It was bought by Henderson in August 2018 for £13.25M which reflects a capital value per sq ft TENURE of £250.00 per sq ft. A414 The rental map below provides indicative headline quoting rents for units below COVENANT INFORMATION 10,000 sq ft in the south western Greater London region. ASSET MANAGEMENT M11 OPPORTUNITIES WatfordEnfield High Wycombe OCCUPATIONAL MARKET M25 M40 A10 INVESTMENT MARKET A40 Stratford A13 VAT Slough LONDON M4 DUE DILIGENCE Dartford £16.00 psf A20 SERVICE CHARGE Bracknell £17.00 psf A33 M3 EPC £16.00 psf £15.50 psf Woking DATA ROOM ACCESS £16.00 psf M25 £14.50 psf £13.50 psf PROPOSAL £15.00 psf A31 CONTACT Godalming A24 Tonbridge A3 M23 A22 £14.00 psf HOME < > Headline Rents for sub 10,000Horsham sq ft Grade A Units The Longmead Business Centre 09 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY INVESTMENT MARKET LOCATION Investor demand for Greater London industrial SITUATION Size Unexp Term Initial Cap Val estates has been robust and sustained over the Date Address Price Purchaser DESCRIPTION past two years, with the positive occupational (sq ft) (years) Yield psf supply/demand dynamics providing strong Jun-18 Leatherhead Trade Park, 48,415 4 £10,500,000 4.50% £217 M&G ACCOMMODATION returns for investors in this sector. These May-18 The Gate Centre Brentford 82,419 5.5 £34,300,000 3.15% £416 M&G continued low levels of supply coupled with SITE limited development and persistent occupational May-18 Orbital One Trading Estate, Dartford 67,383 4.1 £10,400,000 4.00% £243 Valor Real Estate PLANNING demand are expected to continue to apply May-18 Martinbrindge Trading Estate, Lincoln Road, Enfield 283,686 7.5 £55,850,000 3.00% £197 Westbrook upwards pressure on rental growth in the region. May-18 Mill River Trading Estate, Suez Road, Enfield 93,786 2.5 £18,100,000 3.98% £193 Capital Industrial TENANCY SCHEDULE On the table to the right are key industrial estate investment transactions: Feb-18 Units 1-3, 15 Havelock Terrave, Battersea 16,347 8.8 £8,550,000 3.20% £523 Capital Industrial TENANCY TENURE COVENANT INFORMATION ASSET MANAGEMENT OPPORTUNITIES OCCUPATIONAL MARKET INVESTMENT MARKET VAT DUE DILIGENCE SERVICE CHARGE EPC DATA ROOM ACCESS PROPOSAL CONTACT

< HOME > The Longmead Business Centre 10 LONGMEAD INDUSTRIAL ESTATE • EPSOM • KT19 9QQ

INVESTMENT SUMMARY CONTACT LOCATION SITUATION For further information, or to arrange an inspection of the property, please contact : DESCRIPTION ACCOMMODATION Peter Winfield T: 0207 952 6101 SITE M: 0777 815 9402 E: [email protected] PLANNING TENANCY SCHEDULE Mike Needham T: 0207 952 6295 TENANCY M: 0790 313 6242 TENURE E: [email protected] COVENANT INFORMATION Theo Quarendon ASSET MANAGEMENT T: 0207 952 6299 OPPORTUNITIES M: 0774 163 3338 E: [email protected] OCCUPATIONAL MARKET INVESTMENT MARKET VAT SERVICE CHARGE PROPOSAL

VAT The property is elected for VAT and it is therefore For the year ended September 2017 the service charge was Offers are invited in excess of anticipated that the transaction will be treated as a £45,430 (£0.58 per sq ft). The budget for the current year £17,800,000 for the freehold DUE DILIGENCE Transfer Of A Going Concern. is £40,529 (£0.52 per sq ft). A copy of the last three year’s interest, subject to contract audited service charge accounts are held on the data site. SERVICE CHARGE and exclusive of VAT.

A purchase at this level would MISREPRESENTATION ACT 1967 EPC DUE DILIGENCE Kimmeridge Real Estate Ltd on its own behalf and for vendors EPC reflect a net initial yield of or lessors of this property, whose agent it is, gives notice that: 1. DATA ROOM ACCESS 4.00%, and a capital value of The particulars are produced in good faith, but are a general The vendor has had the following surveys undertaken: guide only and do not constitute any part of a contract. 2. No The units range from EPC ratings of C58 to D95 which are £232 per sq ft, after allowing person in the employment of the agent(s) has any authority PROPOSAL • Building Survey by Malcolm Hollis. to make or give any representation or warranty whatsoever provided on the data room. for the usual purchaser’s in relation to this property. 3. The property is offered subject • Measured Survey by Malcolm Hollis. costs of 6.75%. to contract and unless otherwise stated all rents are quoted CONTACT exclusive of VAT. 4. Nothing in these particulars should be deemed a statement that the property is in good condition, • Phase 1 Environmental Survey by Delta Simons – which or that any services or facilities are in working order. 5. Unless states that the site offers a“Low to Moderate risk”. DATA ROOM ACCESS otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own < HOME > The Purchaser will be offered reliance on all these surveys. Please contact one of the Kimmre team to arrange data investigations if required. The surveys are on the Data Room. room access. Publication Date: September 2018 carve-design.co.uk 13561