business centre - cloudinary · 2018-09-17 · waterfront studios usiness centre we are instructed...

1 UNIQUE OPPORTUNITY TO ACQUIRE A MULTI LET LIGHT INDUSTRIAL AND OFFICE CENTRE IN THE HEART OF LONDON’S ROYAL DOCKS

WATERFRONT STUDIOSB U S I N E S S C E N T R E

U N I Q U E O P P O RT U N I T Y TO A C Q U I R E A M U LT I L E T L I G H T I N D U S T R I A L A N D O F F I C E C E N T R E I N T H E H E A RT O F L O N D O N ’ S R O YA L D O C K S

WATERFRONT STUDIOSB U S I N E S S C E N T R E1 D O C K R O A D , L O N D O N , E 1 6 1 A G


THE O2 ARENA

RIVER THAMES

GREENWICH PENINSULAEmerging Cultural district by Knight Dragon Developments

CANARY WHARF

THE SHARD

NORTH GREENWICH UNDERGROUND

CITY OF LONDON

THAMES WHARF

EXCEL LONDON

HOOLA LONDON E16BY STRAWBERRY

THE CRYSTAL CONFRENCE CENTRE

ORCHARD PLACE INDUSTRIAL ESTATE

LONDON CITY ISLAND - BY BALLYMORE GROUP

LONDON CITY AIRPORT

CANNING TOWN - UNDERGROUND STATION - DLR

EMIRATES AIR LINE CABLE CARS

EXCEL WATERFRONT APARTMENTS

NUPLEX RESINS


ENTRANCE OFF DOCK ROAD


We are instructed to seek offers in excess of £15,442,000 (Fifteen Million Four Hundred and Forty Two Thousand Pounds) subject to contract and exclusive

of VAT. This reflects a triple net initial yield of 8.00% and a reversionary yield of 10.12%, assuming purchaser’s costs of 6.73%.

Opportunity to acquire a 116,970 sq ft commercial business centre in the heart of the exciting and developing Royal Docks close to London City Airport.

Located in an internationally recognised business and leisure district.

Established business centre of 162 units offering flexible offices, light industrial and storage units.

Unique property wholly constructed under the Silvertown Way in 2003 by Greater London Enterprise Properties.

Let on flexible all-inclusive rents making landlord costs transparent.

Flexible space offerings including 2 conference rooms rented out on daily rates and units from 150 sq ft to 3,000 sq ft.

Currently producing a gross income of £1,820,501 per annum.

Income risk spread over a number of occupiers, each with modest rental liabilities.

Considerable active management potential with the opportunity to drive rents forward alongside the development of the Royal Docks.

INVESTMENT SUMMARY4 UNIQUE OPPORTUNITY TO ACQUIRE A MULTI LET LIGHT INDUSTRIAL AND OFFICE CENTRE IN THE HEART OF LONDON’S ROYAL DOCKS

ROYAL BOTANICGARDENS KEW

GUNNERSBURYPARK

RICHMONDPARK

HYDEPARK

BATTERSEAPARK

CLAPHAMCOMMON

GREENPARK

ST JAMES’SPARK

REGENT’SPARK

VICTORIAPARK

FINSBURYPARK

HAMPSTEADHEATH

GREENWICHPARK

Bethnal Green Road A1209

LAMBETH

ISLINGTONCAMDENTOWN

HACKNEY

HIGHBURY

SHOREDITCH

SHEPHERD’SBUSH

HAMMERSMITH

FULHAM

WESTKENSINGTON

CHELSEA

KNIGHTSBRIDGE

BATTERSEA

HOLLANDPARK

NOTTINGHILL

PIMLICO

MAIDAVALE

ST JOHNSWOOD

QUEENSPARK

BELSIZEPARK

BLOOMSBURY

MAYFAIR

BROMPTON

KENNINGTON

BERMONDSEY

NEWINGTON

CAMBERWELL

ELEPHANTAND CASTLE

THE CITYWHITECHAPEL

SOHOPADDINGTONCOVENTGARDEN

CLERKENWELL

KINGSCROSS

BETHNALGREEN

STEPNEY

MILEEND

BROMLEY-BY-BOW

WAPPING

DOCKLANDS

PECKHAM

DEPFORD

NEWCROSS

GREENWICH

CHARLTON

CANNINGTOWN

PLAISTOW

WESTHAM

FORESTGATE

HOXTON

DALSTON

BOW

STRATFORD

BOROUGH

WESTMINSTER

STOCKWELL

VAUXHALL

WALWORTH

BELGRAVIA

SOUTHKENSINGTON

NORTHKENSINGTON

WHITECITY

BRONDESBURYPARK

WILLESDENSOUTH

HAMPSTEAD

KENTISHTOWN

WESTHAMPSTEAD

TUFNELLPARK

HAMPSTEADDOLLIS

HILL

KINGSLAND

CLAPTON

STOKENEWINGTON

NOHO

MARYLEBONE

SOUTHWARK

CHISWICK

ACTON

EALING

GREENFORD

BRENTFORD

KEW

BARNES

RICHMOND

MORTLAKE

WIMBLEDON

ROEHAMPTON

ISLEWORTH

TWICKENHAM

PERIVALE

WEMBLEY

HARROW

BRENT

HORNSEY

FINSBURYPARK

HOLLOWAY

STAMFORDHILL

LEYTON

BLACKHEATH

BRIXTON

DULWICH

CLAPHAM

PECKHAM

SURREYQUAYS

LEWISHAM

CATFORD

PUTNEY

WANDSWORTH

PARKROYAL

ALPERTON

HANWELL

OSTERLEY

BARKING

BECKTON

NORTH WOOLWICH

WOOLWICH


LOCATION & SITUATION

The Royal Docks is an internationally recognised business and leisure district in the London Borough of Newham, situated 1.5 miles east of Canary Wharf, 2.5 miles south of Stratford and 5.5 miles east of Central London. The property lies 2.5 miles west of the North Circular (A1020) and 11 miles west of the M25.

The Greater London Authority has identified this area as being an outstanding place to “live, work, play and stay.”

Royal Victoria, and West Silvertown Docklands Light Railway (DLR) stations each lie within 350 metres from the property and provides services to Bank (20 minutes), Stratford International (15 minutes) and London City Airport (14 minutes). There is also direct access to the O2 Arena via the Emirates Air Line cable car which links to North Greenwich tube station offering Jubilee Line London Underground services and further access to the wider London bus network. Crossrail, when fully functioning later in 2018, will link Central London with Canning Town and Woolwich.

The property lies in an excellent location which benefits from its proximity to the world famous exhibition and conference centre, ExCel London, London City Airport and Westfield Stratford City (one of the largest urban shopping centres in Europe).




A13

A205

A1020

A406A124

A112

A1020

A112

B210

A206

A207A2

A201

A1203

A126A1202

A200

B205

A2206

A200

A2208

A200

A1205

B121

A107A108

A1208

A206

A206

A206

A1206

A11

DOCK ROADN WOOLWICH ROAD

A1261

A124A112

A1011A12

B140

A13

A13

A13A17

A112 VICTORIA DOCK ROAD

A102

NORTH GREENWICH

O2 ARENA

CANNING TOWN

ROYAL VICTORIACUSTOM HOUSE PRINCE REGENT

ROYAL ALBERT

BECKTON PARKCYPRUS

GALLIONS REACH

LONDON CITYAIRPORT

KING GEORGE IVPONTOON

DOCK

WESTSILVERTOWN

EASTINDIA

STARLANE

WESTHAM

BECKTON

WESTCOMBEPARK

CHARLTON

WOOLWICHDOCKYARD WOOLWICH

ARSENAL

PLUMSTEAD

CHARLTON

BECKTONCANNINGTOWN

EAST HAM

GREENWICH

PLAISTOW

LONDON CITY AIRPORT

PLUMSTEAD

BROMLEY-BY-BOW

LANGDON PARK

BLACKWALL

ALL SAINTS

POPLAR

WEST INDIA QUAY

CANARY WHARF

HERONQUAYS

WEST FERRY

CROSSHARBOUR

MUDCHUTE

ISLAND GARDENS

MAZEHILL

GREENWICH

CUTTY SARK

DEPTFORD

SOUTH BERMONDSEY

CANADA WATERBERMONDSEY

WAPPING

ROTHERHITHE

SHADWELL

WHITECHAPEL

BETHNAL GREEN

BETHNAL GREEN

STEPNEY GREEN

MILE END

ISLE OFDOGS

DEPTFORD

ROTHERHITHE

BERMONDSEY

POPLAR

R I V E R T H A M E S

EXCEL LONDON

UNIQUE OPPORTUNITY TO ACQUIRE A MULTI LET LIGHT INDUSTRIAL AND OFFICE CENTRE IN THE HEART OF LONDON’S ROYAL DOCKS

The property itself lies beneath the Silvertown Way Bypass (A1011) and occupies a prominent position beside “The Crystal Centre” and fronting The Royal Victoria Docks. The main entrance to the business centre is off the Dock Road whilst the restaurant space is facing the waterfront. The immediate area is characterised by a mixture of residential, leisure and green space, offices and industrial premises. Nearby occupiers include “The Crystal Centre” by Siemens, London ExCel, Hanson, Wake Up Docklands (a water sports centre), creative arts space The Vision Centre, Nuplex Resins, Kloeckner Metals UK, The Good Hotel and a number of other leisure and retail operators.

The area continues to benefit from mass regeneration and improving transport links such as the recently consented Silvertown Tunnel beneath the Thames which will provide further links with North Greenwich and is due to complete in 2023. The property is also less than 1.5 miles west of The Royal Albert Dock development which will create approximately 4.7 million sq ft of new commercial and residential space and to compliment this mass regeneration London’s City Airport will be upgraded building a new platform, hotel, passenger terminal and car park. The Silvertown Partnership (Lendlease and Starwood Capital) are the developer behind the proposed redevelopment of the 62-acre Millennium Mills site which lies north of the Waterfront Centre fronting the Royal Docks. The proposed development will provide over 3,000 homes alongside flexible employment space.

6



DESCRIPTION

Constructed in 2003 by Greater London Enterprise Properties, Waterfront Studios is a two storey

concrete framed business centre constructed under the elevated roadway, Silvertown Way.

The main reception entrance and the adjoining restaurant unit are more prominent and are not

located under the flyover but have pitched sheet roofs with glazed facades. The office centre accommodation is arranged over two storeys and as the height of the overhead road decreases, the accommodation reduces to single storey space and smaller warehouse/storage units.

The newly refurbished fully manned reception area is located at ground level and the offices are arranged over a lower and an upper level. This shared entrance area incorporates a

café facility, post boxes and seated breakout areas for occupiers including male/emale

and disabled WC provision. There is also a conference room for 12 delegates at this level.



The office units range in size from 150 sq ft to 1,200 sq ft and are accessed through reception via stairs leading to

both levels or via the passenger lift. Kitchen and further WC facilities are located on each floor. The office centre provides

a standard specification of carpeted floors with painted walls, double glazed aluminium windows and central heating. Some

of the units benefit from their own air conditioning. The office element and communal space have their own loading area with goods lifts. A conference room which seats 14 delegates is available within the office space, in addition to the one at reception.

The warehouse units range in size from 900 to 3,200 sq ft and are accessed directly off the Dock Road with uncontrolled parking directly outside. The units have a variety of metal roller shutters and pedestrian entrances and are provided with heating and lighting as base build. The warehouse occupiers are responsible for their own utilities, they do not contribute towards the centre’s service charge but contribute towards

the buildings insurance.

CCTV is in use throughout the site with a manned reception during office hours and a security guard in

place from 5pm to 10pm on weekdays, weekends and bank holidays.

The property benefits from 9 car parking spaces to the front of the property and free roadside

parking directly outside the warehouse units.



TENURE

The property is held on two separate long leaseholds. Copies of the deeds and associated plans are available in the dataroom.

1 From Freeholder The Mayor and Burgesses of the London Borough of Newham for a term of 99 years from 14 August 2002 at a rent of £100,000 per annum.

2 From Freeholder the Royal Docks Management Authority for a term of 99 years from 14 August 2002 at a rent of £2,000 per annum.

ACCOMMODATION

The property has been measured by Plowman Craven, and the Measured Survey will be fully assignable to a purchaser and is available on the dataroom. The property totals 116,970 sq ft over 162 units ranging in size from 156 sq ft to 3,200 sq ft.


TENANCY

The centre is let in accordance with the tenancy schedule available in the dataroom. As at August 2018, the centre is 91% let and produces a gross annual income of £1,820,501. Allowing for the running costs of the business comprising £8.42 per sq ft per annum and the annual headrent of £102,000, the property produces a net operating income of circa £1,318,501 per annum.

Rents are at a comparatively low base, with office accommodation available at passing rents in the order of £26.00 per sq ft inclusive, and warehouse rents in the order of £10.00 per sq ft inclusive.

The tenant’s agreements for the offices are all inclusive rents with the following services included: onsite management, electrical usage and lighting, central heating, water rates, waste disposal, cleaning and repair and maintenance of the common parts, grounds maintenance, buildings insurance, health and safety in the common areas, CCTV, manned security guard and patrol, electronic entry system, kitchen facilities, meet and greet visitor, post collection

and distribution and courier handling. Tenants are responsible for their own telephone/media and business rates where appropriate.

The tenant agreements for the light industrial/warehouse units are all inclusive bar the tenant being responsible for their own utilities/telephone

and internet charges and they are exempt from service charge but contribute towards the buildings insurance and pay business rates

where appropriate.

UNIQUE OPPORTUNITY TO ACQUIRE A MULTI LET LIGHT INDUSTRIAL AND OFFICE CENTRE IN THE HEART OF LONDON’S ROYAL DOCKS 10


PLANNING

Waterfront Business Centre has planning for B1 use class – offices and light industrial. Units F2, G4, G5, G7, G9, G10 and G12 received approval for change of use to non-residential education and training (D1).

EPC

EPC ratings have been obtained on the units within the business centre and are detailed within the dataroom.

VAT

The property is elected for VAT.

CAPITAL ALLOWANCES

Our client’s advisers have identified substantial unclaimed capital allowances in relation to the property. The benefit of any unclaimed capital allowances could be made available to a purchaser if reflected within the price. Please see the dataroom for further information.

DATAROOMAccess to the dataroom is available on request.

UNIQUE OPPORTUNITY TO ACQUIRE A MULTI LET LIGHT INDUSTRIAL AND OFFICE CENTRE IN THE HEART OF LONDON’S ROYAL DOCKS 11

TENANT COVENANT STATUS

The income has a very good spread of risk across a number of occupiers who are predominantly small businesses, each with a modest rental liability. We have obtained accounts information for several of the tenants whose rental liabilities exceed £30,000 per annum. More information is available in the dataroom and on request.

Nakhon Thai Restaurant Limited occupies the restaurant unit fronting the docks and have been trading since 2003. Five more restaurants have subsequently been launched by the restauranteur to form a chain around London and in Reading. Shareholders’ Funds as at 31/07/2017 stood at £23,681.

Apex Engineering Services Ltd is a technical construction consultant working with clients such as Transport for London, National Rail and Thames Water. Shareholders’ Funds as at 30/09/2017 stood at £739,681.

Yakelo Ltd distributes children’s shoes worldwide and was founded in 2010. Shareholders’ Funds as at 31/03/2017 stood at £146,642.




NEVILLE PRITCHARD

T: +44 (0)207 087 5370M: +44 (0)7889 [email protected]

SARAH MARTIN T: +44 (0)207 852 4439M: +44 (0)7814 [email protected]

BEN JONES

T: +44 (0)207 399 5826M: +44 (0)7720 [email protected]

PROPOSAL

We are instructed to seek offers in excess of £15,442,000 (Fifteen Million Four Hundred and Forty Two Thousand Pounds) subject to contract and exclusive of VAT. This reflects a triple net initial yield of 8.00% and a potential reversionary yield of 10.12%, assuming purchaser’s costs of 6.73%.

© Crown Copyright 2018. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law Copyright © Jones Lang LaSalle IP Inc August 2018. All rights reserved.

CONTACTS

WATERFRONT STUDIOSB U S I N E S S C E N T R E1 D O C K R O A D , L O N D O N , E 1 6 1 A G

business centre - cloudinary · 2018-09-17 · waterfront studios usiness centre we are instructed...

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