JVCKENWOOD PRIESTLEY WAY, STAPLES CORNER LONDON NW2 7BA - JVC European Headquarters, Priestley Way, Staples Corner, London NW2 7BA Strategically ...
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JVCKENWOOD
PRIESTLEY WAY, STAPLES CORNER
LONDON NW2 7BA
JVC European Headquarters, Priestley Way, Staples Corner, London NW2 7BA
Strategically Located Prime Industrial and Office Investment
PRIME GREATER LONDON INDUSTRIAL AND OFFICE INVESTMENT
PROMINENT NORTH CIRCULAR LOCATION COMPRISING 250,910 SQ FT ON 9.26 ACRES 2
INVESTMENT SUMMARY
• Rare opportunity to purchase a prime, well-let industrial and office
investment situated in a core Greater London location on the M1-
North Circular intersection
• Located at the landmark Staples Corner – access via Junction
1 of the M1 Motorway, the A406 North Circular and the A5
Edgware Road
• The Property comprises JVCKENWOOD UK LIMITED'S
Headquarters facility, extending to 23,310 sq m (250,910 sq ft) on
3.75 Hectares (9.26 acres)
• The facilities on site include a modern Distribution Warehouse
together with a high specification 'flagship' Administration Office
building and two warehouses
• Fully let to JVCKENWOOD UK LIMITED on three separate FRI
leases at a total current passing rent of £3,395,873 per annum
• A weighted average unexpired lease term of 9.33 years with two
of the leases expiring in 2025 and the third in 2020
• Two of the leases, accounting for 90% of the income, are subject
to a fixed five yearly rental increase in 2020 equivalent to
2.75% per annum
• JVCKENWOOD UK LIMITED have sublet various parts of the
Property accounting for approximately 58% of the total current
rental income
• Freehold
• The opportunity provides investors and occupiers with 305m
(1,000 ft) frontage to the North Circular, a dominant orbital route
for Greater London
• Staples Corner will benefit from the ongoing £4.5 billion
regeneration of Brent Cross Cricklewood 1 mile to the north-east
We are instructed to seek offers in excess of £53,495,000 (Fifty Three
Million, Four Hundred and Ninety Five Thousand Pounds), subject
to contract and exclusive of VAT which equates to a Capital Value of
£213 psf.
A purchase at this level reflects a Net Initial Yield of 6.00% assuming
standard purchaser's costs of 5.80%.
3
10
14 Bedford A1
13 A505
LOCATION Milton
MiltonKeynes
Keynes The North
9
Staples Corner is a landmark road junction in North West London. It is located at the start of A5 M11
the M1 motorway and sits at the junction of the A406 (North Circular Road), and A5, leading
A6 A1(M)
London
LondonStanstead
Stansted Airport
Airport
into Central London. As such, it is one of the most prominent and accessible commercial A418 M1 A602 8
A12
locations in North London and continues to develop as an established commercial centre London Luton
Felixstowe/Harwich
and retail location due to its excellent transport links and diverse consumer catchment. 9 Airport
Birmingham/
A414
The North West A41 St Albans 3
The M1 motorway is England’s primary North-South motorway stretching over 190 miles, 7
A10
Chelmsford
connecting London with Leeds and further north via the A1 (M). The A406 is London’s 4 A414
A4010
primary ring road extending from Chiswick in the west to Woolwich in the east and the A5 A413 1
6
Edgware Road runs from Edgware in North London directly into Central London at Marble M25 Watford
Enfield
Arch to the south. All of these major routes converge at Staples Corner. M40 M1
4 A406 28
4
1
Immediately east of Staples Corner, the A406 North Circular connects with the A41 16 1 Wembley A41 Romford 29
Hendon Way. The A41 leads onto the A501, a major arterial route 10km to the south of the Slough A406 A5 A501
Property. The A501 provides direct access to Euston and King's Cross St Pancras stations Reading
Reading
8
Central
Central 31 A13
4 1
(two of London’s primary rail stations) immediately to the east, and the A5 Edgware Road, London
Marylebone and Paddington (the closest national rail line to the Property) to the west.
M4 Heathrow Airport Dartford
10 A20 2 A2
1
1 3 1
Cricklewood Railway Station (1.6 miles to the south-east) forms part of the Brighton Swindon/Bristol 2
to Bedford Thameslink Line, linking to St Pancras International in 12 minutes. Hendon M3 M2
4 3
Railway Station (1.5 miles to the north-west) provides direct access to London, Wimbledon A22 5
4
and Sutton southbound as well as St Albans and Luton northbound. Staples Corner also 9 5
M26 4 6
7
7
8
benefits from regular tube services from Brent Cross Underground (Northern Line) located 8 7
M25
Dover 8
approximately 1.4 miles north-east of the site. A28
Gatwick Tonbridge A229
Not to scale
Brent Cross Cricklewood, 1 mile to the north-east of the Property, is undergoing a Gatwick 9a 9 9
significant £4.5bn regeneration project, spanning a 20 year period to develop the area into 10 Folkeston
a ‘world class destination’. This will see the building of 7,500 news homes, 4 million sq ft of M23 A22 Ashford
office space, improved transport links and an extension of the Brent Cross Shopping Centre. 11 A21
A26
Crawley
Distance By Road Km Miles
Central London 9.65 6
M25 / M1 Motorway Junction 24.14 15
London Heathrow Airport 25.75 16
London Luton Airport 43.45 27
London Stansted Airport 61.10 38
4
City of London
Paddington
Cricklewood
Brent Cross/Cricklewood Regeneration
A406
Brent Cross Shopping Centre
A5
Staples Corner Retail Park
Oxgate Centre
M1 JUNCTION 1 A406 North Circular Road
Staples Corner Business Park
The North/
Birmingham
M1
A5 Edgware Road
A406
Wembley/
Park Royal
JVCKENWOOD UK
A5
Hendon Waterside
5
SITUATION
Staples Corner benefits from a large catchment area due to the immediately surrounding residential
Rail/London Distance from
areas in the London Boroughs of Brent, Barnet, Harrow and Camden and the wider Greater London and Comments
Underground Services Property
North M25 location as a result of the exceptional transport links.
Brent Cross Underground
The Property sits approximately 400m to the west of Staples Corner Junction, in a prominent position 1.4 miles 17 minutes to London St Pancras
(Northern Line)
with a 305m (1,000 ft) frontage to the A406 North Circular Road. Junction 1 of the M1 motorway and the
A5 are located immediately to the east, both within half a kilometre.
Hendon Central 16 minutes to London St Pancras
1.5 miles
Rail Station 5 trains per hour
The site extends to approximately 3.75 Hectares (9.26 acres) and is bounded by the A406 to the south and
Brent Reservoir (Welsh Harp) to the north. Access is provided off the A5 Edgware Road via Priestley Way
to the north of Staples Corner junction. There is an additional point of egress directly onto the A406 North Cricklewood 12 minutes to London St Pancras
1.6 miles
Circular close to the junction with the A5. Rail Station 5 trains per hour
The immediate surrounding area is recognised as an important commercial location, as evidenced by the London Paddington Regular services to West London, Thames
5.1 miles
numerous and diverse commercial operators nearby, including those from the industrial, office and retail Rail Station Valley, South West England and South Wales
warehousing sectors.
A406
M25/The North M11/Enfield/Stansted
Watford/M25/
A406 The North
Enfield/M11/
Brent Cross Stansted
JVCKENWOOD UK
r
ED
ula
Circ
GW
rth
No
AR
A5
E
RO
A406 Hendon Brent Cross
AD
Waterside Shopping
Wembley A41 Centre
Priestley Way
Staples Corner
JVCKENWOOD UK Retail Park
A5
King’s Cross
Park Royal
Staples Corner
Euston
BP & Oxgate Centre
A501
M40/
Birmingham Euston/King’s Cross
Marylebone A501/West End/
Paddington City of
London Wembley/Park City of London
West End Royal/A40/M4/ Paddington/Marylebone/
London Heathrow West End/Mayfair
M4/Heathrow/
Bristol Hammersmith
Not to scale Not to scale
6
STAPLES CORNER
£4.5BN REGENERATION OF BRENT CROSS
Staples Corner is an historic and major landmark road junction The A5 is home to a wide and diverse range of commercial CRICKLEWOOD CURRENTLY UNDERWAY TO
at the start of the M1 motorway, England’s primary North-South occupiers located at various intervals, including a Hyundai car
motorway stretching over 190 miles, connecting London with Leeds showroom to the north of the site and a Vauxhall car dealership to
CREATE ‘WORLD CLASS DESTINATION’
and further north via the A1 (M). the south.
The iconic junction has two linked roundabouts and flyovers, which Staples Corner also benefits from an excellent retail provision,
connect the A406 North Circular (the primary ring road around owing in large to the Brent Cross Shopping Centre (set for
Central London) with the A5 Edgware Road (providing direct access refurbishment and extension this year under the Brent Cross
into Central London) and the start of the M1 motorway. Cricklewood plans) and the Staples Corner Retail Park, both of Brent Cross/Riverside Park
Transformed Brent Cross
which are immediately east of the Property across the A5. Shopping Centre
As a result, the junction is considered an important location,
providing unrivalled access across and into Central London as well Under the Brent Cross Cricklewood regeneration plans (discussed Future Housing
as to the north of England. A wide and diverse occupier mix has below), there is provision for a £200m investment in the local road
consequently been attracted to the immediate area. network, including a larger Staples Corner junction. This will
significantly improve traffic flow and the appeal of the area. A406 Brent Cross/Riverside Park
Industrial occupiers include Harrison Varma Joinery Ltd and
Magnet Ltd at the Oxgate Centre, a modern industrial estate located The Thameslink railway line (stopping at Cricklewood Railway Planned Office Living Bridge
a short distance south of the Property with frontage to the A5. Trade Station 1.6 miles to the south-east of the Property) runs from development (Phase 2)
counter operators include Howdens Joinery and Toolstation at the Bedford to Brighton (through London) and serves both London
1000 North Circular Road Industrial Estate immediately south of the Gatwick Airport and London Luton Airport. Under the Brent Cross
Planned Office
Property across the A5, and HSS Hire directly east of the Property at Cricklewood redevelopment plans a Thameslink station at Brent
Development (Phase 1)
the adjacent Aquarius Business Park. Cross is proposed.
Retail warehouse occupiers in the vicinity include Maplin at the
Staples Corner Retail Park immediately east of the Property and
B&Q a short distance south along the A5 at Cricklewood. Claremont Park
Planned Brent Cross
Thameslink Station A41
BRENT CROSS CRICKLEWOOD
The profile of Staples Corner is set to benefit further from the Brent The first phases of the regeneration project are now underway,
Cross Cricklewood regeneration plans, which covers an impressive having begun in March 2015. They include: the creation of two
area of approximately 350 acres immediately north-east of the community parks as well as creating the first phase of Brent Cross
Property. Riverside Park; improvements to local roads and junctions; along £5m Community Project
with works to prepare for a new town centre on either side of the (Clitterhouse Playing Fields)
Planning permission for the regeneration project was secured North Circular. The latter will be linked by a landmark new ‘Living
in 2014, for investment partners Hammerson and Standard Life Bridge’.
Investors to undertake a £4.5bn development. This is expected to Further information available at brentcrosscricklewood.com
cover six phases of development, spanning a 20 year period and
will transform the Brent Cross area into a ‘world class destination’. In 2016, the regeneration is expected to focus on the refurbishment
Argent Related has been selected to work with Barnet Council to to and extension of Brent Cross Shopping Centre, as well as
develop the Brent Cross South site. doubling the size of the existing bus station. Already in 2016, three
new international brands, including Tesla Motors and stationery
On completion, the development will see the building of 7,500 new shop Smiggle, have agreed deals to take space in the centre.
homes, 4 million sq ft of office space (in turn creating an estimated
27,000 full time jobs), improved transport links (including the Moving forwards, such impressive large scale investment and
creation of a larger Staples Corner junction) and an extension of the regeneration plans are set to further improve the appeal of the area
Brent Cross Shopping Centre. to a diverse range of occupiers.
Brent Cross Cricklewood Indicative Masterplan
7
DESCRIPTION
The Property comprises four buildings situated on a regular shaped The four buildings are let in their entirety to JVCKENWOOD UK The buildings sit within a secure site which benefits from 24
site. The buildings include a modern well specified Distribution LIMITED as the company’s UK headquarters and approximately hour security and provides ample parking provision to the south
Warehouse and ‘flagship’ Administration Office, both built in 2005, 84% of the accommodation is also sub-let to a diverse range of west corner, adjacent to the Administration Office building and
along with two additional detached warehouses, ‘Warehouse occupiers, equally attracted by the high profile Staples Corner Distribution Warehouse. Additional overspill parking areas are
3’ and ‘Warehouse 4’, which were subject to a comprehensive location. situated to the south-east corner of the site by Warehouse 3.
refurbishment in 2005.
8
9
DISTRIBUTION WAREHOUSE
This impressive modern facility provides a prime well specified distribution unit with
ancillary offices capable of single or multiple occupation, as evidenced by the recent
sublettings. The ancillary office accommodation at first and second floor level is linked,
via a bridge, to the main Administration Office building.
The warehouse benefits from the following key features:
• Steel portal frame construction with profile sheet clad elevations
• Eaves height ranging from 11-12.5m
• 12 dock level loading bays, 2 level loading doors and a 40 kn/sq m floor loading
• Solid concrete floor mezzanine structure with a clear height underneath of 5.5m
• Extensive yard area
The first and second floor office accommodation is of modern specification and
includes fully accessible raised, carpeted floors, suspended ceilings and four pipe fan
coil air-conditioning.
ADMINISTRATION OFFICE
This flagship office building is arranged over ground and four upper floors on a
rectangular floorplate. The floorplates provide open-plan accommodation and are
capable of single or multiple occupation. To the north elevation, the Property has a
clear double glazed curtain wall providing attractive views across Brent Reservoir and
the Welsh Harp.
The building is fitted out to a high specification which includes:
• Fully accessible raised, carpeted floors
• Four pipe fan coil air-conditioning
• Suspended ceilings and double glazed windows
• Floor to ceiling height of 2.7m
• Male and female WCs
• Three 10-person 800kg Kone passenger lifts
At ground floor level is a modern canteen facility known as the ‘Boathouse Café', which
is available for use by all occupiers on site.
Access between the Administration Office and the ancillary offices within the
Distribution Warehouse is provided by a link bridge at second floor level, which is
visible upon entering the Property via Priestley Way.
10WAREHOUSE 3
Located at the south-east corner of the site, this unit is of concrete frame construction
with part brick, part blockwork elevations and solid concrete floor. The unit connects
with the adjacent Warehouse 4 via two roller shutter doors .
Having been refurbished in 2005, the specification includes:
• Clear eaves height of approximately 5m
• 2 level access loading doors to the west of the building
• WC facilities
• Partitioned office accommodation
• CCTV and surveillance monitoring systems
Immediately to the south of the unit along the southern boundary of the Property is an
overspill parking area, which compliments the already extensive parking provision.
WAREHOUSE 4
This unit is of concrete frame construction with part brick, part blockwork elevations
and solid concrete floor.
Also subject to refurbishment in 2005, the specification includes:
• Clear eaves height of approximately 4m
• 5 electric operated dock level loading doors
• Partitioned offices within single storey office block to the front of the warehouse
• CCTV and surveillance monitoring equipment
11SITE AREA
The Property is situated on an extremely prominent and regular shaped
site with a total site area of 3.75 Hectares (9.26 acres).
ACCOMMODATION
The Property has been measured by Plowman Craven in accordance
with both the International Property Measurement Standards (IPMS 3)
(Administration Office building) and the RICS Code of Measuring Practice
(Sixth Edition) (Distribution Warehouse, Warehouse 3 and Warehouse 4).
The Property provides the following areas:
Building Sq m Sq ft
Administration Offices
5,163.4 55,579
(IPMS 3)*
Distribution Warehouse
12,496.8 134,516
(GIA)
Warehouse 3 (GIA) 2,721.9 29,299
Warehouse 4 (GIA) 2,927.9 31,516
TOTAL 23,310 250,910
In addition there is a further 4,396 sq ft of mezzanine accommodation in
the Distribution Warehouse.
*The Administration Office provides a NIA of 5,054.5 sq m [54,407 sq ft].
The Plowman Craven measured survey dated February 2016 is contained
in the data room and is intended to be assignable to the Purchaser, if
required.
12ADMINISTRATION OFFICE 1ST FLOOR PLAN
STAIRWELL LIFTS AND ACCESS STAIRWELL
PRIESTLEY WAY
PRIESTLEY WAY
For indicative purposes only
DISTRIBUTION WAREHOUSE GROUND FLOOR PLAN
PRIESTLEY WAY
DOCK LEVEL AND LEVEL LOADING BAY
FIRST AND SECOND FLOOR OFFICES
MEZZANINE
A406 NORTH
NORTH CIRCULAR
CIRCULAR ROAD
For indicative purposes only
13TENANCY INFORMATION
The entire Property is let to JVCKENWOOD UK LIMITED
Demise Tenant Area (sq ft) Lease Start Lease Expiry Rent (pa) Rent (psf) Comments
on three separate leases at a total rent passing of
£3,395,873 per annum. Rent increases to
Distribution Warehouse / JVCKENWOOD £3,152,225 on 25
190,095 29/09/2003 24/12/2025 £2,752,377 £14.48
The leases are subject to fixed rental increases equal Administration Office UK LIMITED December 2020. Outside
to 2.75% per annum, compounded every five years. the L&T 1954 Act.
The next rent review in the Distribution Warehouse / Rent increases
Administration Office and Warehouse 3 leases is on 25 JVCKENWOOD to £352,861 on 25
Warehouse 3 29,299 29/09/2003 24/12/2025 £308,102 £10.52
December 2020. The lease on Warehouse 4 is not subject UK LIMITED December 2020. Outside
the L&T 1954 Act.
to further review.
Rent not subject to
JVCKENWOOD
The Property has a weighted average unexpired lease Warehouse 4 31,516 29/09/2003 24/12/2020 £335,394 £10.64 further review. Outside
UK LIMITED
term of 9.33 years to expiries. the L&T 1954 Act.
TOTAL 250,910 £3,395,873
Under the terms of each lease the Tenant has an option
to renew, for either 10, 15 or 20 years (Distribution FB
Dr
ain
Warehouse/Administration Office, Warehouse 3) and for Both a Transformer Chamber adjacent to the Distribution Warehouse and a substation adjoining Warehouse 4 are held on leases. Further information held on the data room.
5,10, 15 or 20 years (Warehouse 4).
1
THE LINK
TENURE 3
Freehold. 4
9
JVC Business Park
6 to 8
JVC House
Works
1
3
El
Key
Sub Sta
10
Work
s
Wor
El Sub
11
ks
1. Administration Office 2
Sta
Works
43.5m
2. Distribution Warehouse
Work
719
s
3. Warehouse 3
45.7m
Wo
rks
4. Warehouse 4 46.2m Gantry
She
lter
FB
Shelt
er OAD
A RR
Work
CUL
CIR
TH 45.6m
NOR
s
998 Unit 2
1
16
5
721a
Unit
6 Unit
721
Unit 0
2
16
14 968
7
3
158
Unit
46.6m
970 1SUB-TENANCY INFORMATION
A number of parts of the Property have been sub-let, as per the sub-tenancy schedule below.
Area* Schedule of Outside the
Demise Tenant Start date Expiry Date Rent Review Break Dates Rent Comment
(sq ft) Condition L&T 1954 Act
Administration Office
04/02/2018 04/02/2019 At review rent increases to higher of
4th Floor IIAA 10,433 04/02/2013 24/11/2025 £177,702 Yes Yes
04/02/2023 04/02/2022 £194,369 or open market rent
At review rent is greater of £172,640
Stanmore Quality 24/06/2019 23/12/2018
3rd Floor 10,760 24/06/2014 24/11/2025 £172,640 Yes Yes or the passing rent multiplied by RPI
Surfacing Limited 24/06/2024 23/06/2021
Multiplier
23/06/2019
2nd Floor Casio 10,200 23/06/2014 24/11/2025 23/06/2021 £153,000 Yes Yes
23/06/2024
23/06/2019
1st Floor Casio 10,609 23/06/2014 24/11/2025 23/06/2021 £159,135 Yes Yes
23/06/2024
23/06/2019 23/06/2019
Ground Floor Casio 5,488 23/06/2014 24/11/2025 £54,885 Yes Yes
23/06/2024 23/06/2021
Distribution Warehouse
07/03/2018 review: Rent increases to
07/03/2015
GF Warehouse Vitabiotics 94,479 07/03/2012 06/03/2019 07/03/2018 £865,000 Yes Yes higher of £994,750 or open market
07/03/2017
value
04/02/2018 04/02/2019
GF Workshop IIAA 6,901 04/02/2013 24/11/2025 Included under £177,702 IIAA rent above
04/02/2023 04/02/2022
Warehouse 3
C.S. Lounge Suites
Unit 3 29,225 09/07/2012 08/07/2017 N/A 09/07/2015 £182,656 Yes Yes
Limited
Warehouse 4
C.S. Lounge Suites
Unit 4 31,963 09/07/2012 08/07/2017 N/A 09/07/2015 £191,800 Yes Yes
Limited
210,058 £1,956,818
*The areas above have been provided by the Vendor.
15OCCUPATIONAL MARKET
Staples Corner provides a well-established commercial location which is home to a wide range of local, regional, In addition to the examples above, 50,000 sq ft at Navigation Park, Enfield is currently under offer to Camden Brewery
national and global occupiers attracted by the close proximity to Central London and the excellent transport links at a rent in the region of £10-10.25 psf as well as 81,000 sq ft at 1 Western Avenue Business Park, at a rent considered
across the Regions and the rest of the UK. The Property provides accommodation suitable to a diverse occupier to be £12.50 psf on the warehouse element.
base, most of whom use this as their National Headquarters.
The follow map demonstrates prime industrial rents for surrounding locations:
Industrial Market M1(M)
Staples Corner offers occupiers a Greater London location with excellent, quick access into and across Central
£9.75 psf £12.50 psf
London (via the A5 and A41) and across the South East and the rest of the UK via the M1 and M25. M1
BOREHAMWOOD ENFIELD
The occupier market for logistics remains strong, driven primarily by the fast growing e-commerce and third party £10.25 psf
logistics businesses in an economy where occupier confidence remains positive. Much of the demand remains EDMONTON
£9.00 psf
focused on the big box requirements but healthy demand exists for mid-range and cross dock facilities as occupiers M1
seek to improve distribution networks across the UK. WATFORD
A406 M11
M25
JVCKENWOOD UK
The continued fall in the availability of Grade A space and improving headline rents in 2015 saw a notable increase M40 £13.50 psf
in Build to Suit opportunities and Speculative Development particularly across the South East. Supply for industrial A5
WEMBLEY
is particularly limited in the Greater London market, and for the London, South East (and East) markets availability
has consistently fallen since 2013, with 2015 levels down approximately 23% on 2013 and down 3% on 2014. £14.00 psf
PARK ROYAL
Prime Greater London rents are generally achieved in Park Royal and Heathrow where the demand and supply £12.00 psf
dynamics are most prevalent and recent lettings in Park Royal have proven headline rents of £14-14.50 psf SLOUGH M4 LONDON
(+20,000 sq ft).
M4 £13.75 psf
Supply constraints are expected to continue across Greater London and the South East and with a forecast of HEATHROW
economic stability throughout 2016 occupier growth is expected to lead to further rental growth in the short to
medium term.
The table below demonstrates recent rental transactions in and around the Greater London area: Office Market
M3
M25
Transaction As JVCKENWOOD UK LIMITED’s operations at the Property have transferred to Europe, recent sublettings have
Address Tenant Lease Term Area (sq ft) Rent (£/psf) £12.75 psf
Date highlighted the strong occupational demand from high profile, international brands seeking Headquarters grade
STAINES
premises outside of the core London locations.
Under offer -
Phase 2 Origin, Park Royal (Completion Wasabi 15 Years 65,000 c. £14.25
Across the Northern M25 office market 2015 showed an increase in take up with figures primarily driven by
March-16)
Pharmaceutical demand A3 generally but more specifically Astrazenica's acquisition of 850,000 sq ft in Cambridge.
G Park Enfield (IDI Gazeley) Dec-15 Yodel 10 Years 97,952 £9.25 Outside of this, take up levels were below 5 year averages due to limited availability and options for occupiers across
Classic Fine the region.
Units 18 and 20, Westway, Acton (SEGRO) Dec-15 15 Years 24,908 £14.75
Foods
In light of the above the region has experienced positive rental growth. In particular, prime rents in Watford continue
Units B & C - Mowlem Trading Estate, UK Power
Oct-15 15 Years 21,420 £9.50 to improve with Smith & Nephew recently acquiring 60,000 sq ftM23 on Croxley Green paying £23.25 psf. In addition,
Haringey Industrial Estate, Edmonton Network
limited supply of accommodation and ever increasing rental levels in the traditionally core office markets in the West
15 Years GATWICK
Unit 1, Brompton End, Hammersmith and Chiswick, is generating improved demand across the region including Quintains, Wembley
Aug-15 (Break in 85,999 £12.25 A3 Park scheme which is seeking pre let opportunities of up to 750,000 sq ft.
Greenford Park Bike
Year 10)
Unit 32, Horsenden Lane Deluxe Media Availability of space is expected to decline in A24
the South M25 markets as occupier demand continues to improve and in
Jun-15 15 Years 53,958 £11.95
Greenford UB6 7RL Europe Ltd the North M25 markets as a result of conversions to alternative uses. This is expected to continue as a result of the
Suite DC6A/B, Stockley Road, Adelie Foods extension to Permitted Development Rights (PDR).
Mar-15 15 Years 102,900 £13.00
Heathrow UB7 9BN Group Ltd
16INVESTMENT MARKET
The graph below demonstrates some of the current prime office rental levels in nearby locations: Despite the UK rate of economic growth slowing over 2015, economic activity is expected to remain firm in the long term with average
growth of 2.5% per year forecast over the decade to 2025.
Prime Office Rents / psf
The market faced continued downward pressure on initial yields in 2015 as improved occupier markets demonstrated positive rental
growth, driving investor returns.
£80.00
The investment market is set for continued stability through 2016 driven by the continued traditional demand for prime assets from the
£70.00
UK Institutions and increased appetite from overseas investors.
£60.00
The greatest demand for office and industrial investment opportunities remains in the Greater London and South East markets but
£50.00 investor demand remains for core regional geographies.
£40.00
Industrial Investment Commentary
£30.00
Greater London logistics opportunities have been, and are currently, extremely rare and as such benchmark yields exist in the core
£20.00 locations such as Park Royal and Heathrow with land constraints, greatest occupier demand and strongest rental growth prospects.
£10.00 UK institutions, overseas investors and property companies looking to grow logistics platforms have been the most active in these
sectors with prime yields of circa 4% achieved.
£0.00
Cambridge Chiswick Hammersmith London London
(Paddington) (King’s Cross) In September 2015 Eyre Estate paid £17.14m for the GeoPost, Dagenham asset which was let on a new 25 year lease reflecting 4.17%
and CBREGI recently acquired the Rygor Commercials unit in Bedfont, with a lease term of 14.8 years remaining, paying 4.78%.
Retail Warehouse Market
A number of recent transactions are set out below:
Proximity of Staples Corner to the North Circular, M1, A41 and Brent Cross has attracted
household retail warehouse operators including Maplin at Staples Corner and B&Q along the A5 Unexpired Cap Val
Property Date Size (sq ft) Price NIY (%) Purchaser
at Cricklewood. Prime rents for good quality, prominent retail warehouse space have recently Lease Term (£ per sq ft)
achieved in excess of £30 psf. Allport Cargo Services, Hayes Dec-15 11 years 105,000 £21,900,000 4.90% £209 SEGRO
CBRE Global
Residential Market XPO Logistics, Maidstone Dec-15 5 years 77,841 £6,930,000 6.09% £89
Investors
A number of residential schemes are underway in the vicinity of Staples Corner, the most relevant CBRE Global
Rygor Commercials, Bedfont Oct-15 14.8 years 22,312 £6,180,000 4.78% £277
being the residential phase of Brent Cross Cricklewood, which will see the development of 7,500 Investors
new homes. Within this scheme, capital values are expected to achieve in the region of £700 psf. Geopost, Dagenham Sep-15 25 years 65,746 £17,140,000 4.17% £261 Eyre Estate
Barratt Homes are in the process of developing Hendon Waterside in West Hendon, approximately
Office Investment Commentary
0.75 miles to the north of the Property, where thirty acres of land are being developed to provide
2,171 new homes. The latest phase, ‘Vista’, is set for completion in May 2016 and already 204 of
For the office investment market, investor sentiment has remained strong throughout 2015 across the South East with the Thames
the 216 plots have been sold, where sales values have achieved up to £790 psf.
Valley, South M25 and West London markets all recording high investment transactions volumes. Most notable transactions include
AEW Europe’s £325m purchase of Bath Road, Slough and M&Gs £167m purchase of Bedfont Lakes, Heathrow.
Other nearby pipeline developments include St George’s scheme at Beauford Park, Collindale
(approximately 2.5 miles due north of the Property), where sales values have reached in excess of
Transactions volumes for 2015 across the South East have increased by 31% on the previous year. The North M25 region recorded the
£700 psf.
highest 2015 increase with £266m transacted, an increase of 81% on 2014. Of note includes the £33.50m purchase of Skanska UK’s
Headquarters at Maple Cross by a Private Middle Eastern Investor in November.
With demand continuing for office stock from an increasingly diverse investor base and continued downward pressure on prime yields,
(West London yields of 4.40% and Thames Valley yields of 5.10%) investors are looking beyond core locations where occupational
demand exists, along with positive market dynamics which support rental growth in the medium to long term.
17COVENANT INFORMATION SUB-TENANCY COVENANT INFORMATION
The Property benefits from attractive income diversification with sub tenancy income accounting for approximately 58% of the annual rent. A brief
summary of the sub tenants is set out below:
JVCKENWOOD UK LIMITED
(company registration number 03537298)
JVCKENWOOD UK LIMITED is the UK arm of a multinational Vitabiotics Limited - established in 1971, Vitabiotics has Stanmore Quality Surfacing Limited - established in 1995 and
electronics company headquarters in Yokohama, Japan manufactured innovative healthcare products for over 40 years and Headquartered at The Property, Stanmore Quality Surfacing Limited
and was formed as a result of the 2008 merger of JVC and in 2013 became the UK’s No.1 vitamin supplement company (source: provides reinstatement and highway maintenance services to a wide
Kenwood Corporation. IRI value sales 52 w/e 20 April 2013). Headquartered a short distance range of clients including the three main utilities, local authorities,
from the Property on the A406 North Circular, the company has highways agencies and the private sector. Key clients include UK
Both businesses have well established, successful created a large portfolio of products at the forefront of scientific Power Networks, Amey, Skanska and Thames Water.
global brands with JVC dating back to 1927 and Kenwood developments with well-known brands such as Wellman, Wellwoman,
originating from 1946. JVCKENWOOD UK LIMITED now Jointace and Immunace. The company has a Dun & Bradstreet rating of 2A1, which represents
promotes itself under one brand and with three specific a minimum risk of business failure. The sublease to Stanmore
divisions of Automotive, Public Services and Media Services The Property is utilised as Vitabiotics global distribution unit, which accounts for 5% of the total rent pa.
focusing on car and home electronics, wireless systems, also utilises the Amazon SARL supply chain.
CCTV and Radio Equipment. Further information can be found at www.sqsltd.co.uk
The company has a Dun & Bradstreet rating of 5A1 which represents
JVCKENWOOD UK LIMITED products are seen in many a minimum risk of business failure. The sublease to Vitabiotics
everyday automotive and home devices and it has also accounts for 25% of the total rent pa.
recently extended its contract with McLaren Mercedes to IIAA Limited - International Institute for Anti-Ageing was established
provide the F1 Team with Digital Radio systems, a contract Further information can be found at www.vitabiotics.com in 1994 and is Headquartered at The Property. IIAA is a leading
they have held since 1991. The company has also recently provider of education, services and products to the professional
celebrated a successful 10 year relationship with Garmin beauty industry and supplies thousands of salons around the UK and
which began combining navigation systems into integrated Ireland with three major brands: Environ®; Jane Iredale®; and the
car mounted AV systems. This working relationship will Casio Electronics Co Limited - established in 1957 and Advanced Nutrition Programme®.
be further enhanced by the release, later this year, of a Headquartered at the Property, Casio is the UK subsidiary of
new model which supports Apple and Android products to Tokyo based Casio Computers Co Ltd, a multinational electronics The company, has a Dun & Bradstreet rating of 2A3. The sublease to
improve Digital Cockpit Systems for a global marketplace. manufacturing company. Casio is one of the leading consumer IIAA accounts for 5% of the total rent pa.
electronics companies in the world. It's activities comprise the
JVCKENWOOD UK LIMITED is Headquartered at the importing, sale and distribution of a wide range of products including Further information can be found at www.iiaa.eu
Property and distributes consumer electronic products calculators, mobile phones, cameras, musical instruments and
throughout the UK, Channel Islands, Isle of Man and watches.
Republic of Ireland.
The company has a Dun and Bradstreet rating of 3A1, which CSL Limited - Trading as Sofology since the beginning of 2016, the
The company has a Dun & Bradstreet rating of 2A1, which represents a minimum risk of business failure. The sublease to Casio business was established in 1983 and is a family owned retailer of
represents a minimum risk of business failure. Electronics Co Limited accounts for 11% of the total rent. furniture and lighting. Headquartered in Golborne, Warrington, the
company operates through 31 retail stores and 6 distribution centres
Further information can be found at www.jvckenwood.com Further information can be found at www.casio.co.uk across the UK. The nearest showroom is located at Brent Cross Retail
Park to the east of the Property.
OVER 40% OF THE INCOME IS SECURED AGAINST SUB The company has a Dun & Bradstreet rating of O 4. The sublease to
TENANTS THAT HAVE BEEN ASCRIBED A MINIMUM RISK CSL accounts for 11% of the total rent pa.
OF BUSINESS FAILURE
Further information can be found at www.sofology.co.uk
18EPCs PROPOSAL
Energy Performance Certificates are available for each building and provide EPC ratings ranging We are instructed to seek offers in excess of £53,495,000 (Fifty Three Million, Four Hundred and Ninety Five
from C (61) to D (99). Further information including recommendation reports are contained in the Thousand Pounds), subject to contract and exclusive of VAT which equates to a Capital Value of £213 psf.
data room.
A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser's costs of 5.80%.
ENVIRONMENTAL
INVESTMENT RATIONALE
WSP have undertaken a Phase 1 Environmental Survey dated February 2016 which is capable of
being assignable to the Purchaser. • Prominently located landmark Greater London location
• Unrivalled situation adjacent to major UK transport links
Further information is available on request.
• Modern well specified industrial and office buildings
• Fully let and benefits from a WAULT of 9.33 years to expiries
• Income risk diversified as a result of sub lettings accounting for 58% of the total income
VAT • Ongoing £4.5bn regeneration project adjacent to the Property at Brent Cross Cricklewood
• High diversity of income across the four buildings
The Property is elected for VAT purposes and therefore is capable of being treated as a Transfer of
Going Concern (TOGC). • Range of surrounding uses with potential to add value through change of use, subject to the usual
planning consents
CAPITAL ALLOWANCES
CONTACT
Capital Allowances can be made available as part of the purchase. Further information available on
request. For further information, to arrange an inspection, or for access to the data room, please contact one of the
following:
Jason Winfield Charles Howard James Clarke
DATA ROOM jason.winfield@cushwake.com charles.howard@cushwake.com james.clarke@cushwake.com
020 7152 5920 020 7152 5364 020 7152 5356
An electronic data room has been created containing relevant Title, Lease, Sublease and Pre 07768 695 126 07810 631 409 07860 593 670
Marketing Due Diligence information. Please contact Cushman and Wakefield to arrange access.
43/45 Portman Square,
London, W1H 6LY
MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property
but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars
shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the
photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the
property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any
part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and
the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in March 2016.
04671 / 020 7355 2500 / taylerreid.co.uk
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