SIDNEY HOUSE FARM ROAD, , CR0 4XB

SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL SIDNEY HOUSE BEDDINGTON FARM ROAD, CROYDON, CR0 4XB

INVESTMENT SUMMARY • A rare opportunity to acquire a industrial investment with future redevelopment potential located in the established commercial centre of Croydon. • Croydon is currently undergoing a £5.25bn regeneration and is the UK’s fastest growing economy outside of Central London. • The subject property is situated on Beddington Farm Road, an established industrial location within Croydon. Nearby occupiers include DPD, Royal Mail, Travis Perkins, CCF and Kuehne & Nagel. • Held Freehold • The subject property provides a gross internal area (GIA) of approximately 4,378 sq ft on a site of 0.73 acres, which provides a very low site density of approximately 13.7%. • Total passing rent of £165,000 per annum. • 97% of the income is let to North Ltd on a 15 years FRI lease expiring 30th January 2034, with a tenant break option on 31st January 2028. • The Arriva current passing rent is £160,000 per annum which reflects a low rent of £9.50 per sq ft on the building and £5.50 per sq ft on the open storage land. • Five yearly upward only rent reviews to the greater of OMRV (industrial or bus depot) or RPI subject to a collar and cap at 2.00% p.a and 4.00% p.a respectively, providing a platform for guaranteed growth. The next review is 31st January 2024. • The subject property offers an attractive AWULT to break of 6.70 years and AWULT to expiry of 12.70 years. • Future development potential for a new industrial scheme providing 10,500 sq ft

We are instructed to seek offers in excess of £3,730,000 (Three Million Seven Hundred and Thirty Thousand Pounds), subject to contract and exclusive of VAT. A freehold purchase at this level reflects an attractive Net Initial Yield of 4.15%, assuming purchaser’s costs of 6.52%.

SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL SIDNEY HOUSE BEDDINGTON FARM ROAD, CROYDON, CR0 4XB

LOCATION Distance from Distance from Croydon is only 9.5 miles south of Central London. It is the largest London Car the property Rail Journey Time Airport the property borough and a major commercial centre with a resident population of Central London 9.5 miles London Bridge 13 minutes Gatwick 19.0 miles approximately 370,000, and 1.1m economically active individuals within a 14 minutes Heathrow 23.0 miles 30 minute commute. It is the UK’s fastest growing economy outside Central J7 M25 10.0 miles London and is currently undergoing a £5.25bn regeneration. J8 M23 10.0 miles London Victoria 15 minutes Luton 46.8 miles Brighton 43.9 miles Canary Wharf 34 minutes Stansted A12 46.9 miles Croydon benefits from extensive road and transport communications. The A23 is A5 A6 A10 Harwich a major trunk road leading north into Central London (9.5 miles), and south to A413 Stanstead A120 Junction 8 of the M23 and Junction 7 of the M25 (10 miles). The A22 also links Luton A418 A120 A120 Croydon to Junction 6 of the M25, 10 miles to the south east. Gatwick Airport is only Colchester M40 19 miles to the south. A12 A41 M1 A1(M) A414 Croydon has two mainline railway stations. provides fast and frequent links to London Victoria, London Bridge and Gatwick Airport, all in A10 M11 A413 A414 Chelmsford 15 minutes. offers easy access to Canary Wharf and the City High A130 via the Overground. Wycombe A12 Watford M1 A406 Croydon also benefits from , which provides an important east/west A127 A12 Southend connection with regular services from Beckenham to Wimbledon and is used Wembley Slough M25 A13 by 28m passengers a year. Maidenhead LONDON Southend London A205 City Airport Heathrow M4 Dartford A2 DEMOGRAPHICS M3 A20 Croydon Margate Epsom M26 Croydon boasts a primary catchment of 866,000 and is projected to see Ramsgate M2 M3 Woking significantly above average population growth in the period 2016-2021. A3 M25 A23 A22 Canterbury Maidstone 51% of the population are classed as being in the most affluent ABC1 social groups A21 M20 A28 A2 (PMA) which comprises a healthy mix of affluent families, London commuters A24 M23 Tonbridge A287 A229 and young working professionals. Croydon is becoming an increasingly desirable Gatwick Dover place to live highlighted by the growth in residential values over the last 5 years of Crawley Folkstone A22 A26 approximately 35% (Land Registry House Price Index). A3

A2070 Croydon is currently undergoing one of the most significant commercial regeneration A23 projects in Greater London thanks to a £5.25bn regeneration programme and is A272 A265 A272 becoming an increasingly desirable place to live. This is highlighted by the significant growth in residential values over the last five years of approximately 35% (Land A286 A24 A21 Registry House Price Index). Hastings A27 Brighton Worthing A27 Eastbournes

SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL SIDNEY HOUSE Arriva, Sidney House, Beddington Farm Road, Croydon, CR0 4XB BEDDINGTON FARM ROAD, CROYDON, CR0 4XB

SITUATION DESCRIPTION

4 CRYSTAL 2 A The majority of the subject property is currently used as open storage land for the storage and maintenance of the STREATHAM PALACE CRYSTAL 4 PALACE SOUTH 1 T COLLIERS 2 IGH S A WIMBLEDON MERTON H Arriva bus fleet, which benefits from Sui Generis use. WOOD GREEN LN

WAY 2 D TUN 1 R MERA 2 A24 A ON ST B G 2 A There is a 4,378 sq ft warehouse which is currently being used by the tenant as a workshop. The unit has one loading door N 8 23 KI 5 6 98 2 C A D W O H R E U and is covered by an asbestos clad roof. There is also a small temporary building at the tip of the site which is being used SE S T T R E R C R D N NORBURY H R S D N R O D as a café. R EASTFIELDS L W O

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H E 2 V 3 JUNCTION SOUTH A 7 R C THORNTON E R D I O R L D MITCHAM YD E R O N HEATH The subject property provides a gross internal area (GIA) of approximately 4,378 sq ft on an entire site of 0.73 acres, which N O H D JUNCTION R T R D N T O R SELHURST S F O D S C P H R D A T L O E R provides a low site density of approximately 13.7%. R A O H 2 S S S 3 M I N R GREE B H 6 O D O A S 7 O B L H 2 P 9 T E N E 7 N L 2 9 7 O T A I 1 R 2 N N A D H

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E R H L U M C P N P A E O R O The subjectE property is located to the north west of Croydon town centreS within the N T B EL T H S ARRIVA D R G O I I N S R E 5 R B main industrial holding off Beddington and Beddington Farm Road. The areaD has 3 2 A

A 2 attracted a number of well-known industrial occupiers which include: 1 PURLEY OAKS 7 D SUTTON R N FO O S XLEY T A COMMON LN H N IG D 3 R E B R D 2 S R A T N 35 E O 2 A GT WOODCOTE A D DIN LN H D TE IL A CO L OOD LITTLE W CAFE

SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL

created on Plotted Scale - 1:1,250

This map is published for convenience of identification only and although believed to be correct, is not guaranteed and it does not form any part of any contract SIDNEY HOUSE BEDDINGTON FARM ROAD, CROYDON, CR0 4XB

Lease Lease Tenant Current Rent Schedule DEVELOPMENT Unit Site Area Tenant Start Expiry Break Rent Review Rent Review of Security (Acres) Date Date Option(s) (£ pa) Date Mechanism Condition of Tenure Arriva London 31-Jan-24 Greater of POTENTIAL Bus Depot 0.62 North Ltd 31-Jan-19 30-Jan-34 31-Jan-28 £160,000 31-Jan-29 OMRV and RPI Yes Yes A potential scheme has been drawn up as per the plan below. Café 0.11 Erdogan Hemo 02-Jul-16 01-Jul-21 £5,000 n/a n/a No Yes

Total 0.73 £165,000 TENURE Freehold. COVENANT

31/12/2019 GBP 31/12/2018 GBP 31/12/2017 GBP Turnover £259,905,000 260,432,000 259,985,000 Profit before Tax £5,562,000 £12,820,000 £18,632,000 Net Worth £43,580,000 £76,034,000 £56,462,000 TENANCY 97% of the subject property is let to Arriva London North Ltd on a 15 year FRI lease from 31st January 2019 and expiry 30th January 2034. There are tenant break options at the 3rd and 9th anniversary of the term and the tenant has not served their January 2022 notice. The lease is subject to a schedule of condition. The current passing rent is £200,000 per annum which reduces to £160,000 per annum on 31st January 2022. The vendor will benefit from this additional rent. The rent of £160,000 per annum reflects a low £9.50 sq ft on the building and £5.50 per sq ft on the excess yard. The rent is to be reviewed on 31st January 2024 and 31st January 2029 on an upward only basis to the greater of Open Market Rent (industrial or bus depot) and RPI collared and capped at 2.00% p.a and 4.00% p.a respectively. In addition, there is a lease in place to a coffee operator on a small element of the site. This is let to Erdogan Hemo on a 5 year lease from 2nd July 2016 and expiry 1st July 2021, at a passing rent of £5,000 per annum. The property offers an attractive WAULT to expiry of 12.70 years and 6.70 years to break. SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL SIDNEY HOUSE

BEDDINGTON FARM ROAD, CROYDON, CR0 4XBM1 A1(M)

OCCUPATIONAL M11 M40 M1 BARKING PARK ROYAL £14.00 MARKET £20.00 per sq ft per sq ft In spite of arguably the most challenging trading conditions of the past Barking Park Royal LONDON M25 decade, Covid-19 has brought the importance of the industrial and logistics M4 sector into sharp focus. Leasing activity was particularly strong through 2020, FELTHAM culminating with the highest levels of take-up on record being achieved. HEATHROW £16.50 Heathrow £16.95 The Croydon industrial market has particularly benefitted from the growth and per sq ft Feltham per sq ft Dartford demand of ‘last mile’ delivery and local distribution centres which service the Sunbury CROYDON DARTFORD online retailing industry. It is strategically positioned in South London to service a SUNBURY Merton £16.25 £11.50 £14.50 MERTON per sq ft per sq ft wide range of conurbations within the Greater London area and Home Counties in per sq ft its immediate proximity. Equally, restrictions on the development of Green Belt land £16.00 Croydon and a severe lack of suitable alternative land for development locally have inhibited M3 per sq ft SUBJECT PROPERTY M26 the potential for larger scale logistic units. £9.50 M20 There is an extremely limited supply of quality stock available and an even thinner M25 per sq ft committed and speculative development pipeline on the horizon. Indeed, just 1.1% of total industrial stock has been built in the last five years which has placed REDHILL £13.00 Redhill upwards pressure on rental levels. Prime rents in Croydon are now in excess of per sq ft £20 per sq ft for newly constructed units. MSCI Rental Growth Forecast for Croydon outlined below: M23 CRAWLEY £14.50 Gatwick per sq ft Town 2021 2022 2023 2024 2025 Forecast 2021-25 Crawey Croydon 2.40% 3.20% 3.60% 3.30% 2.90% 3.10%

Size Achieved Cap Val INVESTMENT MARKET Address Tenant Date (Sq Ft) WAULT Price NIY £ psf The resilience of the logistics sector through the pandemic was clearly Old Oak Common Lane, Acton Saint Gobain Available 21,217 3.0 Q £7.61m Q 3.75% Q £359 reflected in the investment market. Total industrial volume was £6.9bn in 2020, Crown Works, Enfield Hunter Vehicles Apr-21 34,213 1.0 £4.55m 4.08% £132 the third highest annual total behind 2017 and 2018. However, this owed much to a phenomenal final quarter, with volume of £3.4bn in Q4 2020 smashing the 11 & 12 Wintersells Road, Byfleet Weybridge Skip Hire Mar-21 6,891 3.8 £2.85m 3.30% £414 previous record of £2.3bn set in Q4 2018. IO Centre, Barking Multi let Oct-20 25,676 7.7 £7.3m 3.81% £284 While the phenomenal final quarter volume of 2020 is unlikely to be repeated any time soon, positive momentum has certainly continued into 2021. Ongoing voracious School Road, Park Royal HR Owen Jul-20 42,722 2.8 £15.1m 2.84% £354 appetite from overseas buyers will drive volumes and further price rises in the distribution sector in 2021. Ocado, Walthamstow Ocado Jun-20 32,000 8.0 £10.9m 3.50% £340 Investor demand for greater London industrial assets remains very strong and buying Selco, Wembley Selco Mar-20 47,500 11.5 £16.1m 3.57% £355 opportunities are hotly contested. The supply/demand imbalance currently favours landlords and provides excellent future rental growth prospects which investors are 620 Western Avenue, Park Royal Nationwide Storage Jan-20 36,171 7.8 £9.8m 3.83% £271 looking to take advantage of. Units 2&3 Hook Rise South, Chessington Bishops Move / Carpetright Jun-19 23,815 7.4 £6.1m 4.43% £259 We have highlighted below some recent comparable transactions below: SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL SIDNEY HOUSE BEDDINGTON FARM ROAD, CROYDON, CR0 4XB

VAT We understand the property is elected for VAT and it is envisaged that We are instructed to seek offers in excess of £3,730,000 (Three Million the sale will be treated as a Transfer of a Going Concern (TOGC). Seven Hundred and Thirty Thousand Pounds), subject to contract and EPC exclusive of VAT. Available upon request. A freehold purchase at this level reflects an attractive Net Initial Yield of 4.15%, assuming purchaser’s costs of 6.52%. DATA ROOM Access to the data room will be made available upon request.

REVERSIONARY YIELD POTENTIAL

2.00% Projected 4.00% Projected Year min uplift Reversionary Yield min uplift Reversionary Yield

2024 £186,653 4.70% £204,664 5.15%

2029 £216,080 5.44% £259,006 6.52%

*assumes ERV on café of £10,000 pa FURTHER INFORMATION For further information or to arrange an inspection, please contact:

CHARLIE HOW NICK CARVEY JOE SKINNER [email protected] [email protected] [email protected] 020 7198 2248 020 7198 2095 020 7198 2293 07545 208 976 07851 116 426 07739 973 929

Subject to Contract and Exclusive of VAT © Lambert Smith Hampton May 2021 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.

SOUTH LONDON REVERSIONARY INDUSTRIAL INVESTMENT WITH FUTURE REDEVELOPMENT POTENTIAL