RARE OPPORTUNITY TO ACQUIRE A PRIME
INNER-LONDON INDUSTRIAL ESTATE
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
INVESTMENT OVERVIEW
•
Prime Inner-London Industrial Investment totalling 19,709 sq ft GIA across 13 units.
•
Strategically located in Canning Town to provide swift access to Central London, Canary Wharf and the City via the A12 and A13.
•
Fully let to seven tenants with a total rental income of £230,705 per annum, reflecting a low average rent of £11.71 per sq ft.
•
Average weighted unexpired lease terms of 5.2 years to lease expiries and 2.5 years to lease breaks.
•
•
•
Rare opportunity to invest in the London industrial market, a sector that offers short, medium and long term growth potential given the ongoing reduction of industrial availability
in locations that can offer direct access to Central London.
Recent letting evidence in other comparable inner London industrial locations achieving record rents of over £20 per sq ft which suggest this asset is highly reversionary.
We are instructed to seek offers in excess of £4,120,000 (four million one hundred and twenty thousand pounds), subject to contract and exclusive of VAT. A purchase at this
level would reflect a NIY of 5.25%, assuming purchaser’s costs of 6.55%.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
AERIAL VIEW
CANARY WHARF
CENTRAL LONDON
THE CITY OF LONDON
OLYMPIC PARK
ELECTRA BUSINESS PARK
CANNING TOWN
BUSINESS PARK
Berkeley Homes/GLA
major residential
development comprising
3,500 homes
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
LOCATION
A1
WALTHAMSTOW
HARRINGAY
A1
BRENT CROSS
The estate is located in the London Borough of Newham, approximately 7.5 miles (12.1 km) to the east of Central
London, approximately 2.5 miles (4 km) to the east of Canary Wharf and approximately 5.8 miles (9.3 km) east of The
WEMBLEY
Bank of England.
A41
ILFORD
STRATFORD
The location benefits from excellent road communications being located adjacent to the A12 (Blackwall Tunnel
Northern Approach) approximately 1 mile (1.6 km) to the west and the A13 (East India Dock Road/Newham Way)
approximately 1 mile (1.6 km) to the south.
BARKING
A10
A13
A501
A40
A5
The national motorway network can be accessed via the M11 approximately 9.7miles (15.6 km) to the north and the
M25 approximately 14 miles (22.5 km) to the east.
KENSINGTON
A406
West Ham Station is less than a mile to the north east of the estate, providing District, Hammersmith & City, Jubilee and
DLR services. Stratford Station is 3 miles (4.8 km) to the north and provides DLR and Central Line services. Stratford
International also offers swift access to Kings Cross St Pancras (7 mins). Star Lane DLR station is approximately 0.3 miles
(0.5km) south east of the estate and has a journey time of 5 mins to Stratford International Station. JourneyRICHMOND
time from
Star Lane Station to Bank Station is approximately 20 minutes via the DLR and Central Lines.
A12
A13
LONDON
A1203
A13
CANARY WHARF
WESTMINSTER
WOOLWICH
A2
A102
FULHAM
A23
A307
London City Airport is approximately 2.5 miles (4km) west.
A406
A12
A1
A205
BRIXTON
A306
A20
A2
A214
RICHMOND
PARK
FOREST HILL
A205
SIDCUP
A3
WIMBLEDON
A20
A23
SITUATION
Crescent Court Business Centre is situated on North Crescent and forms part of the Cody Road Industrial Area.
This is an established industrial location providing modern industrial accommodation for companies primarily
servicing Central London. Other occupiers within the vicinity include Iron Mountain, Amazon, Sainsbury’s,
Toolstation, Screwfix, Menzies Distribution, Viridor, Transport for London, Hire Station & UK Mail.
Locally there has been a large amount of re-development of industrial land to higher value uses, such as
residential. This process was accelerated through the regeneration of Bow and surrounds for the 2012 Olympics,
the facilities for which were developed on a 550 acre site, much of which was converted from existing industrial
accommodation.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
BROMLEY
A112
A118
B142
A11
CROYDON
SUTTON
WEST HAM STATION
PLAISTOW
A12
B116
A1011
B140
Stratford is approximately 3 miles (4.8km) to the north of the estate and benefited greatly from the improved
infrastructure created by the Olympic development. Since 2012 Stratford has become a key London commercial
centre with a large Westfield Shopping Centre, and a number of new major office occupiers such as the FCA, TFL
and BT Sport.
A video outlining the quality of this location and proximity to Central London can be accessed at http://www.
zincdigital.com/clients/stonehill-crescent-court/
BECKENHAM
A124
STAR LANE STATION
A13
A12
B125
POPLAR
A13
A1011
DESCRIPTION
SITE
The property comprises three terraces of industrial warehouse
accommodation arranged over two separate self-contained sites.
The total site area is approximately 0.99 acres (0.4 hectares).
The units are steel portal frame construction with external walls that
are a combination of masonry cavity walls and profiled steel cladding.
The roofs are profiled steel clad with c. 10% roof lights.
KEY:
Each unit has a single roller shutter loading door.
Long Leasehold demise
Crescent Court
Business Centre
UNITS 1-4
These units are self-contained and occupied by Viridor Waste
Management who also own and occupy Unit 5. Viridor also own the
access road to Units 1-4, however, these units benefit from a right of
access. The key use on this site is paper recycling.
Access rights
Plan and boundaries indicative purposes only
Boundary is for indicative purposes only. Unit 5 does not form part of the sale.
UNITS 6-14
TENURE
These units are configured in two terraces around a central courtyard
and with a secure gate providing security out of hours if required.
The estate is held by way of three Long Leasehold interests, outlined as follows:
The units provide single storey industrial accommodation with windows
at ground and first floor level.
Unit 7 has a mezzanine covering the majority of the floor area which was
left by the previous tenant when they vacated and re-let in the same
state. This mezzanine is not required to be re-instated by the tenant
on expiry.
There are 25 marked car parking spaces servicing these units.
Demise
Leasehold Title
Number
Duration
Rent
Units 1-4
EGL286192
200 years less 5 days from
25 December 1990
(approx 174 years
Unexpired Term)
Peppercorn
Units 6-14
EGL305228
200 years from 29
September 1992
(approx 176 years
Unexpired Term)
Peppercorn
Strip of land
to East of
Units 6-14
TGL35512
200 years from
10 October 2011
(approx. 176 years
Unexpired Term)
Peppercorn
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
Freeholder
Note
The Mayor and Burgesses
of the London Borough
of Newham
Viridor Waste Management
Limited have an
intermediary Leasehold
interest.
The Mayor and Burgesses
of the London Borough
of Newham
The Mayor and Burgesses
of the London Borough
of Newham
TENANCY SCHEDULE
Unit
Tenant
Area
(Sq Ft)
Lease
Start
Units 1-4
Viridor Waste
Management Ltd
5,759
Unit 6
BETA Distribution
(South) Ltd t/a
London Letterbox
Unit 7
Next
Review
Lease
Expiry
AWULT
AWULTC
Rent
(pa)
Rent
(psf)
% Income
Inside
L&T Act
Comments
05/04/2014
04/04/2019
2.4 yrs
2.4 yrs
£65,000
£11.29
28%
Y
Viridor own and occupy Unit 5 Crescent Court and the access road to Units 1-5. Units 1-4 have a right of way over the access road, as well as loading use.
1,445
12/07/2013
11/07/2018
1.7 yrs
1.7 yrs £17,340
£12.00
8%
N
Docklands
Hydraulics Ltd
2,408
01/01/2015
31/12/2019
3.2 yrs
3.2 yrs
£21,500
£8.93
9%
N
2,408 sq ft includes 963 sq ft Landlord Mezzanine which the tenant isn’t required to
re-instate.
Rent deposit of £6,450 including VAT.
Unit 8
Eurocell Building
Plastics Ltd
1,452
06/03/2014
05/03/2019
2.3 yrs
2.3 yrs £17,715
£12.20
8%
Y
Six months’ notice required on break.
Schedule of condition.
Pre-assignment clause in lease allowing lease to be transferred from Eurocell
Building Supplies Ltd to Eurocell Ltd, subject to conditions.
Unit 9
Hornchurch Dry
Cleaning
1,438
24/11/2014 25/11/2019 24/11/2019 24/11/2024
8.1 yrs
3.1 yrs
£19,000
£13.21
8%
N
Rent deposit of £11,400.
Break on six months’ notice.
Unit 10
JA Glover Ltd
1,450
24/06/2016 01/06/2020 31/05/2020 31/05/2025
8.6 yrs
3.6 yrs
£17,500
£12.07
N
Six months’ notice required on break.
N
Six months’ notice required on break.
N
Six months’ notice required on break.
Break
24%
Units 11/12
JA Glover Ltd
2,890
01/06/2015 01/06/2020 31/05/2020 31/05/2025
8.6 yrs
3.6 yrs
£38,650
£13.37
Units 13/14
London Tool
Hire Ltd
2,868
29/09/2014 29/09/2019 29/09/2019 28/09/2024
7.9 yrs
2.9 yrs
£33,000
£11.51
Units 13/14
External
Storage
London Tool
Hire Ltd
29/09/2014
7.9 yrs
2.9 yrs
£1,000
5.2yrs
2.5yrs
£230,705
£11.71
TOTAL
19,709
29/09/2019 28/09/2024
14%
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
Tenant has the right to erect a cage outside the units to house gas bottles and
non-mechanical equipment for a fixed rent of £1,000 pa. This is a personal
concession and is linked to the continued occupation of units 13 -14.
COVENANT INFORMATION
Units
Tenant
Company
Number
Last Published
Accounts
Turnover
Profit/Loss
Before Tax
Shareholders
Funds
% Income
Creditsafe Risk
Rating
Website
Units 1-4
Viridor Waste Management Ltd
00575069
31/03/2015
£411,512,000
£15,025,000
£233,975,000
28%
Moderate
www.viridor.co.uk
Unit 6
BETA Distribution (South) Ltd
t/a London Letterbox
04312971
31/03/2015
n/a
n/a
£682,093
8%
Very Low
www.londonletterbox.co.uk
Unit 7
Docklands
Hydraulics Ltd
05747247
31/05/2016
n/a
n/a
£418,876
9%
Very Low
n/a
Unit 8
Eurocell Building Plastics Ltd
03071407
31/12/2015
£102,661,000
£7,016,000
£8,993,000
8%
Very Low
www.eurocell.co.uk
Unit 9
Hornchurch Dry Cleaning
03672564
30/11/2015
n/a
n/a
£100,696
8%
Low
n/a
Unit 10/11/12
JA Glover Ltd
01333801
30/06/2015
£9,217,175
£2,475
£1,099,259
24%
Low
www.gloverventilation.net
Units 13/14
London Tool Hire Ltd
07442107
31/12/2015
n/a
n/a
£419,897
15%
Low
www.londontoolandlifthire.com
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
LONDON OCCUPATIONAL MARKET
PRIME LONDON RENTS
London industrial property has demonstrated a consistent level of rental growth
in recent years driven by two key trends:
The average passing rent on Crescent Court Business Centre is £11.71psf. This is significantly lower
than prime rents in other inner London locations as evidenced by the map below.
Ongoing Reduction in available industrial land in favour of higher value uses
Occupier demand to service large conurbations through last mile delivery
Walthamstow
WALTHAMSTOW
£14.50 psf
A1
HARRINGAY
The impact of the above has seen a shortage of available industrial
accommodation inside the North and South Circular which in turn has put
upward pressure on industrial rents.
BRENT CROSS
Staples Corner
£15.50
psf
A41
Wembley
£17 psf
WEMBLEY
The forecast growth in the London population will have a further positive impact
on both these trends, putting greater pressure on industrial land for change
of use to meet the Mayor of London’s high targets for housing in London,
along with retailers wanting to grow their occupational footprint to service the
increasing population.
The local area has seen evidence of the change of use from industrial to
residential with the recent consent gained by Berkeley Homes and the GLA
for the former Parcelforce site to the north of Crescent Court Business Centre.
Achieved Rent
Size
(sq ft)
Lease
Unit 18 Leyton Business Centre,
E10 7BT
2,010
5 years with 3
year TBO
£16.30
Unit 12, Redbridge Enterprise
Park, Ilford, IG1 1TY
1,010
3 years
£16.50
Sept 2016
9 Bayford Street Business Centre,
Bayford Street, Hackney, E8 3SE
1,800
3 years
£18.00
Sept 2016
10 Walthamstow Business Centre,
Clifford Road, Walthamstow,
E17 4SX
1,241
5 years
£14.50
Leyton Industrial Village
(Modern units)
800 – 2,300
Various
£18.00 - £24.00
March 2016
Sept 2016
H1 2016
ILFORD
Park Royal
£17 psf
Acton
£24 psf
A40
A
A501
A5
KENSINGTON
A406
Ilford
£16.50 psf
BARKING
A10
LONDON
Hackney
A13psf
£18
A1203
A12
A13
CANARY WHARF
WESTMINSTER
Battersea
£24 psf
FULHAM
WOOLWICH
A2
A102
A23
A307
Address
A406
STRATFORD
Below outlines the key comparable leasing transactions in the local market :
Date
Leyton
A12
£24 psf
A1
A205
RICHMOND
BRIXTON
£/sf
A20
Earlsfield
£15 (older stock) psf
A306
A2
A214
RICHMOND
PARK
FOREST HILL
A205
SIDCUP
A3
WIMBLEDON
A20
A23
BECKENHAM
CROYDON
SUTTON
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
BROMLEY
BERKELEY HOMES/GLA NEW DEVELOPMENT
INDUSTRIAL INVESTMENT MARKET
Given the positive occupational dynamics within the London industrial market, investor
sentiment towards the sector has remained strong during 2016.
We outline below the key recent market transactions, which reflect strong market demand in
the sector and prime yields all sub-5.0% NIY:
Subject Site
Address
Size
(sq ft)
Units
Purchaser
Lot Size
NIY
Price (psf)
Progress Industrial
Park, Croydon
31,006
18
Available
Quoting
£7.6m
Quoting
5.28%
Quoting
£245
September 2016
Chessington Industrial
Park, Chessington
95,400
10
RLAM
£18.07m
4.96%
£189
September 2016
Clayton Business
Centre, Hayes
35,667
8
CCLA
£7.5m
4.60%
£210
August 2016
Puma Trade Park,
Mitcham
47,599
11
DTZ iM
£10.75m
4.89%
£226
August 2016
Waxlow Road,
Park Royal
51,363
3
CBRE GI
£12.7m
4.10%
£247
October 2015
Leyton Industrial
Village
130,000
93
Capital
Industrial
£23m
4.80%
£177
Current
Berkeley Homes and the Greater London Authority have entered into a Joint
Venture to build 3,500 homes and a new community on the former Parcelforce
depot to the north of the subject site. The aim is to complete the first homes
in early 2019.
This development will provide a mix of affordable, private and build to rent
with the aim of creating a new community in the area. The masterplan also
includes 4.5 acres of open space and public realm and a secondary school
for 1,000 pupils.
A major re-generation scheme of this nature will not only improve the local
infrastructure and amenities for the commercial tenant base but puts further
pressure on availability of industrial land in Newham.
Furthermore, Newham council’s encouragement of this development sets a
positive precedent for conversion of commercial land to residential to help
meet Newham’s new home target, increasing the potential for higher value
use on Crescent Court Business Centre, subject to planning.
For further information see:
http://www.berkeleygroup.co.uk/press-releases/2016/new-era-beckons-foreast-end-site
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
EPCs
DATA ROOM
Copies of the EPCs are available and can be provided on request.
A website containing further information relating to the sale is available Access can
be provided upon request.
VAT
PROPOSAL
The property is elected for VAT and it is anticipated that the transaction will
be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in excess of £4,120,000 (four million one hundred
and twenty thousand pounds), subject to contract and exclusive of VAT. A purchase
at this level would reflect a NIY of 5.25%, assuming purchaser’s costs of 6.55%.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG
CONTACT
For further information or to arrange an inspection, please contact:
WILL DAVIES MRICS
DAN GRANT MRICS
PARTNER
PARTNER
M 07919 002 707
E
D 020 3198 4447
W stonehillpartners.co.uk
A
[email protected]
56-60 St. John Street, London EC1M 4HG
@stonehillptrs
willdavies
M 07956 573 297
E
D 020 3198 4446
W stonehillpartners.co.uk
A
[email protected]
56-60 St. John Street, London EC1M 4HG
@dgstonehillptrs
dangrant
Important notice: These particulars are not an offer or contract, nor part of one. The sole purpose of these particulars is to provide outline information on this property to prospective purchasers or tenants (as applicable), who are solely responsible for making their own investigations and seeking independent
advice, including the costs of doing so, and forming their own view as to the condition of the property and any related fixtures, fittings, services, equipment, plant and machinery, its and their fitness for their requirements and the accuracy and completeness of the statements herein. These particulars do not
constitute any recommendation or offer to enter into any contract regarding this property and neither Stonehill Partners Limited nor any of its employees, agents or representatives guarantees the accuracy or completeness of any description, dimensions, references to condition, necessary permissions for use and
occupation and other details contained herein. You should not rely on statements by Stonehill Partners Limited in the particulars or orally or in writing (each being a “Statement”) as being factually accurate about the property, its condition or its value. Neither Stonehill Partners Limited nor any of its employees,
agents or representatives have any authority to make any representations about the property, and accordingly any Statement given is entirely without responsibility or liability on the part of Stonehill Partners Limited, the seller(s) or lessor(s) or any of its or their employees, agents or representatives. Any photographs
provided show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only and you must satisfy yourself as to their accuracy. Any reference to alterations to, or use of, any part of the property does not mean that any necessary
planning, building regulations or other consent has been obtained. You must find out by way of your own inspection or in other ways that these matters have been properly dealt with and satisfy yourself as to the accuracy of all such information through your own investigations. To the extent that any third party
information or Statement is included within these particulars, this information has been received and passed on by Stonehill Partners Limited in good faith but without liability or responsibility of any kind. VAT may be chargeable in addition to sums referred to herein and may be subject to alteration. November 2016.
CRESCENT COURT BUSINESS CENTRE | NORTH CRESCENT, LONDON E16 4TG