LONDON URBAN LOGISTICS INVESTMENT DRAFT 24–50 OSSORY ROAD BERMONDSEY LONDON SE1 5AN 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS DRAFT 2 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS SUMMARY • A rare opportunity to acquire an ultra-prime modern single let trade counter/industrial warehouse in a central London location. • Well located in the London Borough of Southwark, approximately 3 miles south of Central London. • Conveniently located c. 0.9 miles from South Bermondsey Railway Station and 1.5 miles to Elephant & Castle Underground and National Rail stations (Northern Line & Bakerloo Line and Thameslink). • The premises is configured as two industrial units utilised by a single tenant, totalling 22,991 sq ft GIA. • The site is fully let to Rexel UK Limited, representing a ‘minimum risk of business failure (4A1). • Currently producing a very low passing rent of £307,800 per annum equating to £13.39 per sq ft. • Estimated Rental Value in excess of £20 per sq ft in its current layout. Opportunity for further growth subject to reconfiguration into two industrial units. • 1.5 years to first break and9.5 years to expiry. • Freehold. DRAFT • Potential residential redevelopment opportunity, subject to obtaining consents. We are instructed to seek offers in excess of £8,875,000 (Eight Million, Eight Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects acapital value of £386 per sq ft and a Net Initial Yield of 3.25%, assuming purchaser’s costs of 6.68%. 3 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS LOCATION PROPOSED BAKERLOO LINE EXTENSION Bermondsey is a densely populated south-eastern suburb of Central South Bermondsey railway station is under a mile away and provides a London, located within the Borough of Southwark. The property lies in a direct service to London Bridge (5 minutes), while both Elephant & Castle mixed-use area and is located just 3 miles south of Central London. stations (Northern & Bakerloo lines and National Rail) are within walking distance. In addition, the subject premises is approximately 750m from Ossory Road is located just off the A2 (Old Kent Road). The area the proposed Burgess Park Old Kent Road 1 Bakerloo Line station (at the benefits from excellent transport links to both the City, West End and to junction with Dunton Road) and approximately 1km from the prospective the south. The Old Kent Road also provides direct access to Junction 2 Asylum Old Kent Road 2 Bakerloo Line station (at the junction with Asylum (Darenth Interchange) of the M25, approximately 15 miles to the east, Road). Frequent bus services on the Old Kent Road provide frequent access OSSORY ROAD while the London Docklands and London City Airport is some 3 miles to towards Elephant & Castle and Central London (53, 172 and 453 routes). the north. Regents Park A501 CLARKENWELL MARYLEBONE A11 CITY OF A1020 LONDON POPLAR MAYFAIR A13 Hyde WEST END Park Green CANARY London City Airport Park St James’s Park WHARF R I BELGRAVIA VICTORIA V E M E S LAMBETH Canada Water R T H A Victoria Elephant & Castle A2 PIMLICO South Bermondsey WOOLWICH A205 Burgess Park Oval Battersea Park A3 Ossory Road New Cross A2 24-50 Ossory Road CAMBERWELL Queens Road Peckham BATTERSEA DRAFTA2 Stockwell PECKHAM G L E N Blackheath G B 2 A 1 Denmark Hill L 5 L O R CLAPHAM Nunhead S SITUATION O S O A Clapham R 8 O D Y 0 L R Brockley M 2 O Junction A 2 A R A D A3 S T . A2 24-50 Ossory Road is accessed directly off the A2 (Old Kent Road), A2 Clapham Peckham Rye Common Park & Common approximately 100m to the north. HERNE HILL A2 DULWICH B 21 A23 5 Ossory Road is superbly located for companies serving Central London Brockwell RD. BIANCA Park as well as the South London boroughs. Nearby occupiers include A24 Shurgard Self Storage, Damien Hirst Studios, Tesco, Asda, B&Q, RD. A205 ONA LAT Halfords, Currys PC World, Edmundson Electrical, Plumb Center, A205 Selco Builders Warehouse, B&M and Southern Wood Retail Park where traders include Argos, DFS, Ocado and Maplin. 4 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS DESCRIPTION The property comprises two modern industrial units combined which are utilised as a single warehouse, totalling 22,991 sq ft GIA. Specifications include: • Portal steel frame construction • High-quality first floor offices in both units • Trade counter • Three level access roller shutter loading doors • Concrete surfaced secured yard • 60% site coverage • 6.0m eaves height ACCOMMODATION Unit sq ft sq m 1 13,879 1,289.44 2 9,111 846.48 Total 22,991 2,135.93 SITE El Sub Sta The site occupies an area of approximately 0.36 hectares (c. 0.88 acres) DRAFT which represents a site cover of approximately 60%. The red line site boundary is shown for illustration purposes. ROAD OSSORY 1 24-50 Line Of Posts CURRENT USE Glengall Business Centre Use Class B8 – Storage & Distribution with ancillary trade counter. ESS TENURE 4 Freehold. Works 13 52 5 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS TENANCY The property is let to Rexel UK Limited (00434724), Previously Hagemeyer (UK) Ltd on fully repairing and insuring terms for a period of 25 years from 4th May 2004 expiring on 3rd May 2029. The current passing rent of £307,800 per annum, reflects a low rent of £13.39 per sq ft. The lease is subject to 5 yearly rent reviews, the next being 25 March 2021, and the final being 25 March 2026. The tenant is entitled to early determination on 31 March 2021, or on 31 March in any subsequent year by not less than six months’ notice. COVENANT INFORMATION Rexel UK was established in 1947 and specialises in the distribution of electrical supplies to professional users and distributes products and services in the areas of automation, technical supply and energy management. The Rexel Group is headquartered in France and has 2,000 sales outlets across 32 countries and 27,000 employees. Rexel UK Limited has a Dun & Bradstreet rating of 4A 1 representing a ‘minimum risk’ of business failure. The company recorded the following accounts over the last 3 years: Rexel UK Limited 31 Dec 2018 31 Dec 2017 31 Dec 2016 Sales Turnover £707,247,000 £739,632,000 £765,011,000 Profit/(Loss) (£4,441,000) £9,530,000 (£1,826,000) before Taxes DRAFT Shareholder’s Funds £76,458,000 £57,116,000 £43,995,000 Net Current Assets £91,740,000 £99,281,000 £63,936,000 (Liabilities) 6 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS OCCUPATIONAL MARKET - PRIME INDUSTRIAL RENTS Prime rents in South East London achieved at £24 psf Industrial stock diminishing West End City of London leading to increased value London City Very low passing rent of £13.39 psf Airport Vauxhall Victoria 24–50 OSSORY ROAD Canning Town 5% forecast London industrial Ideal ‘Last Mile’ location £28.00 £25.00 rental growth in next 12 months Greenwich Battersea Brixton Bermondsey £30.00 £27.00 A2 INVESTMENT MARKET £24.00 Dulwich Village Wandsworth Term Capital Net Size Capital A205 Date Property Certain Value Initial £24.00 Forest Hill (sq ft) Value (Years) (PSF) Yield A21 Wimbledon West Norwood Sergeants Industrial Estate, Sep-19 51,958 2.2 £28.15 £542 2.3% Crystal Palace Wandsworth £18.50 A222 Mitcham A20 B&M, 593-613 Old Kent Road, Bromley Sep-19 13,595 6.0 £10.25m £754 2.41% Bermondsey Matthew Clark, Central Way, Feb-19 78,619 4.0 £34.5m £439 3.23% Area Rent Term Park Royal Tenant AddressA23 Date (sq ft) (psf) Certain M25 Croydon Metropolitan Police, 25-33 Unit 13 Ellersie Square, A232 Jan-19 15,634 0.5 £8.5m £544 N/a Confidential U/O 18,574 £18.60 5 Years Parkhouse Street, Camberwell London SW2 A21 A224 SMSSutton Unit 2 Admiral Hyson Industrial Aug-19 5,294 £20.00 2 Years Oct-18 14-18 Verney Road, Bermondsey 22,224 9.0 £12.0m £540 3.00% Network Ltd Estate, London SE16 4 Unit 2 Bermondsey Trading Dulux Dec-18 5,146 £23.03 5 Years May-18 2-10 Ossory Road, Bermondsey 10,667 Vacant £5.5m DRAFT£515 N/a Estate, London SE16 TLC Electrical Unit 1, Chiltonian Industrial Dec-18 7,000 £18.50 10 Years The Gate Centre, Syon Gate Distributors Estate, London, SE12 May-18 82,419 5.5 £34.3m £416 3.15% A233 Way, Great West Road, Brentford Units 1 -2, Zennor Trade Park,A22 Amazon Sep-17 4,412 £23.00 3 Years London SW12 Units 1-3, 15 Havelock Terrace, Mar-18 16,347 4.1 £8.569m £524 3.20% Battersea TLC Electrical Unit C4 Six Bridges Trading Sep-17 5,316 £18.00 5 Years Distributors Estate, London SE1 5 Units 1-4, 221 New Kent Road, Feb-18 14,587 Vacant £6.6m £452 N/a Souvenir Scenic Units 60 - 62, T-Marchant Bermondsey Jul-17 12,339 £18.00 5 Years Studios Ltd Industrial estate, London, SE16 Zennor Road Industrial Estate, Unit 5 Mandela Way, Sep-17 67,001 3.0 £30.015m £448 2.89% DPD UK Feb-17 14,888 £17.50 4 Years Balham London SE1 7 24–50 OSSORY ROAD • BERMONDSEY • LONDON • SE1 5AN LONDON URBAN LOGISTICS RESIDENTIAL OPPORTUNITY The subject premises is located within the OKR10 area of the Old Kent Road Area Action Plan, an ‘Opportunity Area’, as designated by the Mayor of London through the London Plan.