AJAX WORKS HERTFORD ROAD, BARKING, IG11 8DY - GREATER LONDON MULTI LET INDUSTRIAL INVESTMENT - Tydus Real Estate
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AJAX WORKS
HERTFORD ROAD, BARKING, IG11 8DY
GREATER LONDON MULTI LET INDUSTRIAL INVESTMENT
INVESTMENT SUMMARY
Unbroken industrial investment
in the heart of East London.
Locatedin Barking, an extensively regenerated
commercial and industrial centre.
Located in a highly prominent location
immediately adjacent to the North Circular Road
(A406).
Existing accommodation totals 16,921 sq ft GIA.
Multi let estate comprising 5 self-contained units
with a WAULT to break of 2.6 years and to expiry
of 3.7 years.
Low passing rent of £219,081 pa (£12.95 psf
overall) inclusive of rental top ups. TO CENTRAL LONDON
Freehold.
REGUS
Future development potential, subject to A406
NORT
obtaining the necessary planning consent. H CIR
CULA
R RD
.
WICKES/TOOLSTATION
BIG YELLOW
Seeking offers in excess of £4 million, subject
to contract, reflecting a NIY of 5.14% and a low
SELCO BUILDERS WAREHOUSE
capital value of £236 per sq ft after allowing for
purchasers costs of 6.54%.
BARKING REGENERATION Planning Policy Barking is recognised as a significant area for growth and regeneration in London. The London Borough of Barking and Dagenham adopted an ambitious strategy in 2013 to deliver 50,000 new homes and 10,000 new jobs within 20 years. The borough has the highest expected population growth of 15% over the next decade in London. There is a number of key completed developments in Barking with a strong pipeline under construction and seeking planning permission. Selection of Key Developments Address Description Developer Status Creative Industrial Quarters 272 apartments Linkcity Completed Discover Apartments 254 apartments County & Metropolitan Completed Abbieville Apartments 100 Apartments LinkCity Completed Weavers Quarter 1,575 apartments L&Q Under Construction Barking Riverside 10,800 apartments L&Q Under Construction Fresh Wharf 911 apartments Countryside Under Construction Barking Wharf 1,000 + apartments Weston Homes Planning Submitted
LOCATION FA
N SH
The property is located on the northern side of the North Circular Road (A406) at AW
E
AV
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its junction with Barking Road (A124) approximately 0.5 miles west of Barking town E
RD
GE
centre. Barking is a highly popular industrial location that benefits from fantastic road ID
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GB
R
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connections, the M25 is located 8 miles to the east whilst the A13 provides fast access
TH
LO
ST.
to Central London. Barking
WAY
ARA Rail Station
H E RT
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G
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Barking mainline railway station (C2C) provides fast and direct links to Liverpool Street,
NT
FOR
ON
NOR
D
Fenchurch Street and Barking Underground Stations (District and Hammersmith & City
RD
AJAX WORKS
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Lines).
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The subject property is adjacent to a large Big Yellow self-storage centre. Other notable D.
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NR
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ON
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local occupiers include Local occupiers include Wickes, Tesco and Selco.
R D.
ST
HC
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DESCRIPTION
OA
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RD
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DW
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IN S
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ABB
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BA PA .
ST RD
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The property is arranged over 5 warehouse type buildings with associated yard area. 24 PLE
A1 RIP M
D.
OV
The site area totals 0.89 acres. The total accommodation comprises 16,921 sq ft GIA. ER
TO LONDON AND A13 S
The property provides both vehicle and pedestrian access from Hertford Road. LN
.
TENURE
Freehold.
EPC
To be provided upon request.
TENANCY & INCOME
The property is let in accordance with the tenancy schedule below.
Rent pa
Property Tenant Size Sq ft Size Sq m Lease Start Lease End Break Rent Review (£ p/sq ft) Comments
Stepped rental increases
Feb 2020 - £50,208
Rental Uplifts
Aug 2020 - £52,091
Feb 2020 - £50,208 £52,091
Unit 1 Aldersbrook Engineering Ltd 4,177 388 20th May 2019 19th May 2022 Feb 2021 - £53,764
Aug 2020 - £52,091 (£12.44)
The Vendor will top up to stepped rent at
Feb 2021 - £53,764
Aug 2020 from completion.
Outside the Landlord & Tenant Act.
£25,440 Mutual break option subject to 6 months’
Unit 2 Nicholas Richard L’anson 2,140 199 24th May 2019 23rd May 2025 23th May 2022 n/a
(£11.89) notice. Outside the Landlord & Tenant Act.
£46,150
Unit 3 Vacant 3,692 343 Vendor 12 month rental guarantee
(£12.50)
£60,300
Unit 4 Bonlea Engineering Ltd 4,832 449 30th May 2019 29th May 2022 n/a Outside the Landlord & Tenant Act.
(£12.48)
£35,000
Unit 5 Transflow International Ltd 2,080 193 18th May 2018 17th Oct 2028 17th Oct 2023 18th Oct 2023 Outside the Landlord & Tenant Act.
(£16.83)
Strip of Land Milap Padda n/a n/a 14th Sep 1979 13th Sept 2078 n/a £100
Total 16,921 1,572 £219,081 pa
ASSET MANAGEMENT INDUSTRIAL LEASING MARKET
& DEVELOPMENT POTENTIAL Over the past few years London Industrial rents have risen due increased occupational
demand and through a significant proportion of the city’s industrial supply having disappeared
The property offers a number of asset management initiatives:
through development. We anticipate this trend to continue as tenants are forced to compete
for limited stock.
1. Increase passing rent
The most recent lettings at units 1, 2 and 4 are renewals and in our Recent comparable lettings include:
opinion higher rents could be achieved in the open market. Units at
Abbeygrange works adjacent to this property have recently achieved Address Size (Sq ft) Rent (psf) Date of Letting
rents of £15.65 psf for similar quality units. Abbeygrange works,
2,073 £15.65 psf June 2018
Hertford Road, Barking, IG11
The vendor is currently proposing to top up the rent on the vacant unit
3 at £12.50 psf. As discussed above, we believe a higher rent could be 19-21 Alpine Way, E6 35,463 £15.50 psf April 2019
achievable in the market.
2. Refurbish or redevelop the existing units 22-28 Bradfield Road, E16 808 £14.23 psf Jan 2019
We believe the properties could attract a significant rental premium if
they were to be repositioned as grade A space. Prime, newly developed
stock in the area is now achieving £25 psf. INVESTMENT MARKET
The London industrial market continues to outperform and remains one of the most attractive
investment markets in the entire property sector for the following key reasons:
Severely restricted supply of existing / pipeline stock and available land;
Extremely robust occupier demand;
Strong rental growth forecasts;
Excellent retention rates;
The table below highlights a schedule of recent comparable investment transactions:
Cap Val
Property Price NIY £psf Tenant Date
Units A-D Forest Trading Estate, Walthamstow, E17 £11,000,000 3.45% £404 Multi Let Q4 2018
St Margarets Business Centre, TW1 £7,900,000 2.62% £257 Multi Let Q4 2018
Single let
Abbeygrange works, Hertford Road, Barking, IG11 £1,700,000 4.82% £300 Q3 2018
(4 units)
Alfred's Way Industrial Estate, Barking, IG11 £13,900,000 3.67% £247 Multi Let Q2 2017
Units, 15-30, Leyton Business Centre, E10 £7,300,000 4.39% £293 Multi Let Q2 2017
INVESTMENT CONSIDERATIONS
Rare multi let London industrial investment.
Barking is currently undergoing major regeneration.
Fantastic industrial location moments from the
North Circular Road (A406).
Future development potential.
VAT
The property is elected for VAT. It is envisaged that the sale
will be treated as a Transfer of a Going Concern (TOGC).
The Vendor is seeking offers in excess of
£4 million, subject to contract. A purchase
at this level would reflect a NIY of 5.14% and
a low capital value of £236 per sq ft after
allowing for purchasers costs of 6.54%.
FURTHER INFORMATION
Tydus Real Estate GC Real Estate
Jamie Baruch George Collins
T: +44 (0) 20 3903 7310 T: +44 (0) 7872 605 362 2 Riding House Street
jamiebaruch@tydusre.com Tydus Real Estate george@gcrealestate.co.uk London W1W 7FA
50 Weymouth Mews, London W1G 7EH
Will Elphinstone www.tydusre.com
T: +44 (0) 20 3904 3573
willelphinstone@tydusre.com
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September 2019 Designed & Produced: Barbican Studio I 0207 634 9573 I www.barbicanstudio.com
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