GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Road, , London INVESTMENT SUMMARY LOCATION • Densely populated South London suburb Mitcham is situated in the London Borough of , Tube & tram located 7 miles from Central London; a prosperous commercial and residential area with a Morden underground station (Northern Line) is within population of approximately 203,500 (Experian Ltd easy reach. The Wimbledon–Croydon has • An established and prominent location 2010). It is strategically located 12km (7 miles) south numerous stops within Mitcham providing a further opposite Puma Trade Park; west of Central London, 12km (7 miles) north west of quick and convenient mode of public transport around • 3 buildings - 1 modern office & 2 industrial Croydon and 12km (7 miles) east of Kingston-upon- the area, including a stop adjacent to the property. Thames. The nearest major retail centre is Wimbledon warehouses providing 39,068 sqft in total Air plus 19,309 sq ft of hard standing; 4km (2.5 miles) to the north west. International airports surrounding the capital can be • Freehold; A low site cover of 30%; Road accessed with ease with London City Airport being The area benefits from excellent road links with two of located 19km (12 miles) to the north east, London • Let to 4 tenants providing a WAULT of 6.5 south London’s main arterial routes, the A23 and A24, Heathrow 21km (13 miles) to the north west and London years to expiry, 3.8 years to breaks; providing direct access to both Central London and Gatwick 27km (17 miles) to the south. the M25 and M23 motorways. Junction 9 of the M25 is • Rent passing of £344,224 p.a. equating to a Public Transport Journey Times low average rent across the 3 buildings of situated 15km (9 miles) to the south west. £7.85 per sqft, excluding the hard standing; Belgrave Walk Tramlink: Rail Wimbledon 7 mins • We invite offers in excess of £3,625,000, Mitcham is well served by public transport with two West Croydon 17 mins subject to contract and exclusive of VAT; overground railway stations at Mitcham Junction and Mitcham Junction Overground Station: Morden South. Both are within 1 mile of the property London Victoria 22 mins • A purchase at this level will reflect a net initial and provide direct links with London Victoria, London London Blackfriars 26 mins yield of 9.0% reversionary to 10.8% after Blackfriars and London Bridge. Morden Underground Station: allowing for purchasers costs of 5.8%; Oxford Street 30 mins Bank 32 mins

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB WIMBLEDON, A24 & MORDEN UNDERGROUND

A239

PUMA TRADE PARK

BELGRAVE WALK TRAM

ACCESS SELF STORAGE

LIONGATE ENTERPRISE PARK

MITCHAM TOWN CENTRE / MITCHAM JUNCTION TRAVIS PERKINS

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB SITUATION DESCRIPTION ACCOMMODATION The property is located in a highly prominent position 110 – 112 Morden Road comprises three buildings, one The property has been measured in accordance with on Morden Road which links with the A24 less than a modern office plus two industrial distribution units the RICS Code of Measuring Practice (6th Edition) and mile to the north west via the A217. Morden Road also along with a hard standing area used to store cars for provides the following accommodation: links to Mitcham town centre to the south east. the adjacent VW dealership to the rear as delineated by 110-112 Morden Road is surrounded by a number of the blue hatched line on the OS plan below. Basis of Description (sq m) (sq ft) industrial and trade led estates, and, further afield, measure by a number of housing estates providing a diverse Office building demographic catchment. Puma Trade Park is opposite, The office building was constructed in 2004 and is of Office NIA 806.96 8,686 comprising a VW Dutton-Forshaw car dealership and steel frame construction under a lined profile steel clad Ground Floor 7 trade units with tenants including Multi-Tile (Tops pitched roof. The elevations are in part profile panel Office NIA 927.17 9,980 Tiles) and Halfords. A large Access Self Storage facility clad with tinted double glazed windows, fully glazed to First Floor is also opposite with Liongate Enterprise Park a short the front elevation with brise soleil to the front section Warehouse 1 distance to the south. Other occupiers in the vicinity which is south west facing. GIA 658.50 7,088 ‘The Graphic Centre’ include Travis Perkins, Staples Promotional Products, Internally the office has solid floors to both ground and K-Pak and Linguaphone. Warehouse 2 first floors. The building is air conditioned with Cat 2 GIA 1,236.91 13,314 ‘The Vulcan Centre’ The Belgrave Walk Tram stop is located directly to the lighting and a combination of perimeter trunking and rear of the property and links into Wimbledon, Mitcham drop down work station power points. There is a shared Hard Standing Storage GEA 1,793.82 19,309 Junction train station and Croydon, whilst the 201 bus reception to the front with lift and stair access to the route stops outside the entrance of the property linking first floor. TOTAL 5,423.39 58,377 with Sutton, Morden, Mitcham and . The ground floor is used as offices, part sales/ showroom and part workshop. The entire ground floor has suspended ceilings whilst the first floor The site extends to approximately 0.96 ha (2.36 acres) has exposed pipe/duct work clear to the eaves of and is self contained providing a low site cover of 30%. the structure.

Industrial Units Both industrial units are single bay with part brick/part profile steel clad lined elevations under a pitched lined roof. Each has full height roller shutter door access and integral offices within. The Graphics Centre is occupied by Chrisanne Limited and is used to store, prepare and distribute material. The building has an internal eaves height of 5.7m. The Vulcan Centre is occupied by Phillips de Pury as a bonded warehouse used to store, distribute and photograph fine art. The building has an internal eaves height of 5m.

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB TENANCY DETAILS The property is let to 4 tenants and provides a total annual income of £344,224 per annum. The weighted average unexpired term to expiry is 6.5 years and when including break options is 3.8 years. 43% of the total income is derived from Chrisanne Ltd, 32% from Phillips de Pury, 14% from Manroland and 11% from Dutton-Forshaw Motor Company who rent a section of hard standing to the rear of the site. All leases are outside the provisions of s.24 - 28 of the L&T 1954 Act, both Chrisanne leases and the Phillips de Pury lease have upwards and downwards rent reviews.

Current Rent Total Area Review Rent Tenant Name Description Lease start Expiry Date Rate Comments (sq ft) (Break) (per (psf) annum) Office - Grd Flr 6,465 £12.00 Fixed increase from £93,500 to £96,500 on 01/01/2013 to be 01/01/2014 Chrisanne Limited Workshop - Grd Flr 2,221 01/01/2009 31/12/2018 £96,500 £8.50 topped up by the vendor. Tenant break option on 6 month’s (31/12/2013) 8,686 £11.11 notice. Review to open market rent, upwards and downwards. Former owner, concessionary rent granted by the administrators Manroland Sheetfed 06/03/2015 as part of the sale of assets to Langley Holdings plc. Office First Floor 9,980 06/03/2012 05/02/2019 £50,000 £5.01 (UK) Ltd (06/03/2015) Tenant break on 6 month’s notice. Upwards only rent review. SUB-TOTAL 18,666 £146,500 Warehouse 1 Fixed increase from £49,000 to £51,000 on 01/01/2013 to be 01/01/2014 Chrisanne Limited (The Graphics 7,088 01/01/2009 31/12/2018 £51,000 £7.20 topped up by the vendor. Tenant break option on 6 month’s (31/12/2013) Centre) notice. Review to open market rent, upwards and downwards. Phillips De Pury & Co Warehouse 2 13,314 28/07/2009 31/12/2017 28/07/2014 £109,224 £8.20 Review to open market rent, upwards and downwards. Limited (The Vulcan Centre) Dutton-Forshaw Secure hard standing 03/08/2017 Rent reviews are to RPI capped and collared at 2.5% and 3.5%. 03/08/2012 07/06/2024 £37,500 £1.94 Motor Co Ltd (0.44 acre) 03/08/2022 6 months rent free to be topped up by the vendor.

SUB-TOTAL 20,402 £197,724

TOTAL 39,068 £344,224

ENVIRONMENTAL EPC’s Geotechnical and Environmental Consultants Soils Limited carried out a Phase II investigative survey which was concluded in May 2012. The survey comprised drilling three shell and auger boreholes to a depth of 10m and fifteen sampler boreholes up to 4.5m. From these trial holes, sampling and testing of ground conditions, ground water flow and biogas monitoring was carried out. The report concluded that under its current ‘commercial’ use the site is of low risk. Further details can be provided upon request. Offices Graphics Centre Vulcan Building

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB TENANT FINANCIAL STATUS Chrisanne Ltd is a The former company Manroland AG went recognised leader in the into administration in December 2011. A Fashion, Dance Costuming, large part of the company was acquired and Entertainment Industry. The company makes from administrators by private engineering outfits for shows such as Strictly Come Dancing, group Langley Holdings plc. Manroland Sheetfed (UK) Dancing on Ice and Britain’s Got Talent and provides Limited was then set up in March 2012 to complete material for Jimmy Choo, Philip Treacy and Matthew the acquisition. The company specialises in web offset Williamson among others. printing and have supplied the British Graphic Arts The abbreviated accounts for the year ending Industry for over 100 years. 31st December 2011 reported the company to Langley Holdings plc was established in have net assets totalling £0.714m (Dec 2010 £0.679m). 1975 by chairman Tony Langley. The private Phillips de Pury & Company engineering group are a listed global business who employ 2,300 people. Ltd are an auction house /$1*/(< and international arts company dealing in Contemporary Art, Photographs Year End Year End Langley Holdings plc 31 Dec 2011 31 Dec 2010 and 20th & 21st Century Design. The company was £'000's £'000's founded in London in 1796 and now comprises one of Turnover 494,670 399,593 the leading contemporary art auction houses, based in Pre-tax profit (loss) 76,312 65,611 New York and with auction rooms in London, Moscow, Net Assets (liabilities) 295,852 237,589 Geneva, Paris and Berlin. In October 2008, Mercury Group, the Russian luxury retail company, acquired a majority share in Phillips de Dutton-Forshaw Motor Company Ltd are Pury & Company. In October 2012 it was reported that a wholly owned subsidiary of Lookers plc Mercury Group acquired 30 Berkeley Square for which has franchise agreements with 31 £100m and immediately leased the lower floors to of the worlds leading car manufacturers Phillips de Pury. including VW, Ford, Honda, Jaguar, Land Rover, Lexus, Mercedes Benz and Volvo. They are one of the principle The UK gallery and auction house is located on Howick vehicle retailers in the UK with 70 sites including a Place, London Victoria. Phillips also operate a retail showroom opposite the subject property. concession within Claridges Hotel on Brook Street in London. 110-112 Morden Road is the only warehouse Year End Year End Dutton-Forshaw Motor facility Phillips de Pury occupy in the UK. 31 Dec 2011 31 Dec 2010 Company Ltd £’000’s £’000’s Year End Year End Turnover 431,323 429,315 Phillips de Pury 31 Dec 2010 31 Dec 2009 & Company Pre-tax profit (loss) 3,136 6,425 £’000’s £’000’s Net Assets (liabilities) 37,383 37,383 Turnover £9,840 £8,142

Pre-tax profit (loss) (£11,369) (£10,118) For the year ending 31st December 2011, Lookers plc Net Assets (liabilities) (£43,311) (£31,266) reported a turnover of £1.9 billion, pre-tax profits of £33.8 million and a net worth of £197 million.

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB OCCUPATIONAL MARKETS

South London Industrial Market SOUTH LONDON Office Market Morden is a significant south London industrial centre, Mitcham is a secondary office location in comparison attracting a wide variety of businesses ranging from to Croydon and Wimbledon but has been successful in distribution and traditional manufacturing to trade, attracting occupiers due to the large discount in rents retail and car showrooms. Occupiers are drawn by for good quality accommodation within the area. the proximity and access to Central London, with Prime rents in Croydon currently stand at £20.00 per properties north of Croydon typically commanding a sq ft with rents of £29.50 and £21.00 per sq ft being premium over those located closer to the M25. achieved recently on good quality accommodation The industrial market in South London is more in Wimbledon and respectively. Grade B disparate than the markets in West London (Park Royal, accommodation in these centres is currently attracting Acton, Hayes) North London (Enfield, Walthamstow, rents in the region of £15.00 - £17.50 per sq ft. Loughton) and East London (Barking, Dagenham, Due to the concessionary rent of the first floor, granted Crayford, Dartford) and there is a shortage of supply by the Administrator to the previous owner Manroland, and robust demand. the office building is let of a very low average rent of This is exemplified in the area surrounding the property £7.85 per sq ft. This therefore provides for a meaningful where there is a lack of availability with only one unit reversion in March 2015. We are of the opinion that the vacant on Puma Trade Park and no current voids on office ERV is £12.00 per sq ft. Liongate Enterprise Park. This lack of availability will have a positive impact on rental growth for good quality accommodation in the short to medium term. Lettings of note within the last 18 months include the following:

Size Rent Address Tenant Date (sq ft) per sq ft Unit 12 Zennor Road Industrial J. Clarke Feb-12 2,100 £8.52 Estate SW12 Unit 1 Mitcham Industrial Estate Screwfix Jan-12 9,517 £9.00 CR4 Unit 9W Matform Business Park, Club Europe Nov-11 2,685 £12.47 Jaggard Way Ltd SW12 Patmore Unit 2 Puma Slade Jun-11 2,882 £10.93 Trade Park CR4 Horizons Unit 10 Puma Halfords May-11 3,733 £10.45 Trade Park CR4

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB INVESTMENT MARKET COMMENTARY Pressure on land supply in Greater London continues as employment land is lost to alternative uses. As a result occupier demand is focused to the established industrial areas of the capital such as Mitcham which has a large catchment and a good employee base. Investor sentiment for the sector remains positive, evident in recent Greater and South London transactions listed below: Lot Size Date Town Address Description (£ CV psf) NIY Vendor Purchaser £5,690,000 Teeside Council July-12 Park Royal 1-4 Minerva Road 4 units totalling 38,959 sq ft fully let to 2 tenants. 8 years to breaks. 6.30% Eskmuir (£146.05) Pension Fund

Riverside Cargo £6,150,000 June-12 Poyle 3 units totalling 43,063 sq ft, fully let at an average rent of £9.19 per sq ft. 6.08% Segro/Aviva Orchard Street Centre (£142.81)

Abbot House, Abbey Single let refurbished 1970’s industrial /trade unit. 32,449 sq ft, £4,590,000 All Souls College, May-12 Park Royal 6.37% AIF Road let for 3.75 years to break. Rent at £9.50 psf. (£141.45) Oxford.

£9,790,000 Nov-11 Harlow Ascent Trade Park 9 units totalling 90,799 sq ft let to 8 tenants with a WAULT of 7.4 years. 5.67% AXA Ignis (£107.82)

£8,075,000 August-11 Mitcham Puma Trade Park 11 units totalling 47,359 sq ft let to 6 tenants with a WAULT of 8.25 years. 6.05% Aegon Ignis (£170.51)

12 modern units totalling 138,035 sqft. WAULT of 4.3 years to break. £16,300,000 July-11 Croydon Commerce Way 6.40% Clipstone Threadneedle Rents from £8.00 - £9.00 psf. (£118.09)

VAT The property has been elected for VAT and VAT will therefore be chargeable on the purchase price. It is anticipated that the sale will be treated as a Transfer of a Going Concern.

PROPOSAL We are inviting offers in excess of £3,625,000, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 9.0% with a reversion to 10.8% when the first floor office reverts to a market rent of £12.00 per sqft, after allowing for purchasers costs of 5.8%.

SUBJECT TO CONTRACT

GREATER LONDON INDUSTRIAL & OFFICE INVESTMENT 110 – 112 Morden Road, Mitcham, London CR4 4XB On the instructions of:

FURTHER INFORMATION Should you require further information or would like to arrange a viewing, please contact: Chris Dickin [email protected] Nick Harrison [email protected] Rob Atkins [email protected] 020 7935 2831 Clay Street Property Consultants 11 St Christopher’s Place, London W1U 1NG www.claystreet.co.uk

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 himself by inspection or otherwise as to the correctness of any information given. David Robert Baxendale and Zelf Hussain were appointed as Joint Liquidators of MRGB Realisations Limited on 29 May 2012. David Robert Baxendale and Zelf Hussain are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales. Designed and produced by Hobs Reprographics plc. October 2012