prime south east industrial distribution investment · 2 hermes parcelnet, 15 mills road, quarry...

PRIME SOUTH EAST INDUSTRIAL DISTRIBUTION INVESTMENTHermes Parcelnet, 15 Mills Road, Quarry Wood Industrial Estate, Aylesford, ME20 7XB

Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB2

· Premier distribution facility located on the established Quarry Wood industrial estate in aylesford.

· excellent transport communications to the national motorway network, london and the sea ports of south east england. Junction 5 of the m20 is only 1.2 miles (1.9 km) from the property.

· freehold.

· modern industrial unit providing 48,376 sqft (4,494.3 sqm) of warehouse accommodation on a site to 2.64 acres (1.068 hectares); site coverage of 35%.

· let to the undoubted covenant of Hermes Parcelnet Ltd (d&B rating: 5 a1), until 25th march 2022, providing a further 4.4 years of secure income.

· total passing rent of £290,000 per annum, reflecting a low passing rent of £5.99 per sqft providing excellent prospects for rental growth.

· offers are invited in excess of £4,950,000 subject to contract and exclusive of Vat. a purchase at this level would reflect a Net Initial Yield of 5.50%, after allowing for purchaser’s costs of 6.59%. This reflects a capital value figure of £102 per sqft.

inVestment summary

GLASGOW EDINBURGH

NEWCASTLE UPON-TYNE

MIDDLESBOROUGH

RUGBY

OXFORD

READING

NORTHAMPTON

HULL

MANCHESTER

LIVERPOOL

BIRMINGHAMCOVENTRY

NOTTINGHAM

PETERBOROUGH

CAMBRIDGE

SHEFFIELD

CARDIFF

BRISTOL

LONDON

PORTSMOUTH

DONCASTER

A1(M)

M6

M62

M6

M1

M18

M180

A1

A1

A14M1

A14

M11

M42

M42

M5

M50

M4

A34M3

M40

M25

M25

M62

M54

M3

M5

M23

M20AYLESFORD

M2

LEEDS

PORT OF DOVER

FELIXSTOWE

SOUTHAMPTON

PORT OF TILBURY

PORT OF FOLKESTONE

M40

4.5 hours3 hours2 hours

HGV DRIVE TIMES

PORT OFTILBURY31 MILES42 MINS

LONDON35 MILES1HR 10MINS

DOVER47 MILES53 MINS

CHANNELTUNNEL37 MILES56 MINSFOLKESTONE

40 MILES44 MINS

64 miles, 1h 5m

16 miles, 18m

11 miles, 18m

9 miles, 17m

5 miles, 8m

2 miles, 5m

M1

M25

M2

A2

M26

M20

76 miles, 1h 21m

58 miles, 1h 8m

56 miles, 57m

35 miles, 38m

LUTON

STANSTEAD

HEATHROW

GATWICK


aylesford is located 4.0 miles (6.4 km) north west of the Kent county town of maidstone. collectively they form a major commercial centre within the south east of england, which is home to a significant labour catchment.

location

aylesford is located approximately 35 miles (56.3 km) south east of central london and 30 miles (48 km) west of canterbury.

The town benefits from excellent road communications being adjacent to Junction 5 of the m20 motorway. the m20 motorway links with the national motorway network via the m25, which is accessed by either Junction 3 or 5, 15 miles to the west.

the Port of dover, which is europe’s busiest ferry port, handling £119 billion of trade or 17% of the uK’s trade in goods, is located 44 miles (71 km) to the south east. in 2016 the Port handled 13 million passengers, 2.4 million

tourist vehicles, 2.5 million freight vehicles and supported 22,000 jobs. the ports of folkstone and tilbury are also within a 45 minute drive.

aylesford train station is only 1.1 miles away and offers services into central london with a fastest journey time of 53 minutes. Ebsfleet international station is approximately 25 minutes drive and provides 4 trains an hour to london st Pancras, with a journey time of approximately 18 minutes.

the international airports of london Gatwick, london Heathrow, london stanstead and london city are all within 1.5 hour’s drive time.

https://goo.gl/maps/CDvch6dQH3F2


situation

the property occupies a prominent position fronting mills road in the centre of Quarry Wood industrial estate. the site is bound to the west by Wealden Way and the north by lake road. there are two points of access into the property, one for staff and visitors accessed off mills road and delivery access for lorries and vans onto the service via lake road.

Given the unprecedented rise in online retail sales, the property offers an ideal location to provide crucial last mile distribution services and flexible delivery options to a large catchment of business and residential customers.

the property lies within close proximity to the vibrant south aylesford retail Park home to several national retailers including Homebase, marks & spencer, Halfords, curry’s Pc World, Harvey’s and a newly built nando’s unit.

HERMESPARCELNET

BURNT ASH ROAD

MIL

LS R

OA

D

WOOD CLOSE

MILLS ROAD

WE

ALD

EN

WA

Y

LAK

E RO

AD

LAKE ROAD

MILLS ROAD

A20 LONDON ROAD

BE

AD

LES

TO

YO

TA

AR

DE

NM

AID

STO

NE

BEA

DLE

SV

AU

XH

ALL

SKO

DA

AU

TO

BEADLES

VOLKSW

AGEN

GU

Y S

ALM

ON

LAN

D R

OV

ER

GUY SALMONJAGUAR

ADVENTUREKIDZ

DULUX

DECORATOR

CENTRE

SAINSBURY’SSUPERMARKET

UPPER MILLS ROAD

LOO

MIS

CREO RETAIL MARKETING

CSM: ICON WAREHOUSE

PLUMBING & HEATINGWAREHOUSE

LEAY

1-7 LAKE RD

IND. EST.

PLUMB

CENTER

8-13 LAKE RD

IND. EST.

14-18 LAKE RD

IND. EST.

SOUTH

AYLESFORD

RETAILPARK

WATERLOOAIR PRODUCTS

FLEET EFFICIENY

ACT COMMUNICATIONS

McDONALD’S

EU

RO

WA

YT

RA

DE

PA

RK

EU

RO

WA

YT

RA

DE

PA

RK

KMH

BR

ITAN

NIA

BU

SINESS P

AR

K

PALMER

AND

HARVEY

CLEANSING

SERVICE GROUP

RBS

HE

RM

ITA

GE

LA

NE

BURNT ASH TRADE PARK

BURNT ASH TRADE PARK

MILLS ROADINDUSTRIAL

ESTATE

5

M20

Holt Hill

Quarry WoodIndustrial Estate

Aylesford

London

AshfordA20

Ditton

A20

AYLESFORD

HERMESPARCELNET

UP

PE

R MILLS RD

BURNT ASH RD

HE

RM

ITAG

E LA

NE

B2

24

6

LAKE ROAD

KILN BARN ROAD

HO

LTWOO

D A

VEN

UE

WO

OD

LAN

D

S ROAD

MILLS ROAD

HA

LL R

OA

D

LONDON RD

LONDON ROAD

TEA

PO

T L

AN

E

STATION ROAD

STATION ROADRIVER MEDWAY

WOOD CL

WEALDENWAY

not to scale - for indicative purposes only

MILLS ROAD

MILLS ROAD

MILLS ROAD

WEALDEN WAY

LAK

E R

OA

D

A20

A20

M20M20 JUNCTION 5

HERMESPARCELNET

A

BC

E F

J

G HI

K

N

PO

Q

R

D

LM

A

F

K

B

G

L

SOUTH AYLESFORDRETAIL PARK

PALMER &HARVEY

C

H

M

D

I

N

E

J

O

PRIORY PARK

P

Q

RLOOMIS

BURNT ASHTRADE PARK

MILLS ROADINDUSTRIAL ESTATE

5 Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB


the building comprises a single storey industrial warehouse of portal frame construction fronted by two storeys of standard office accommodation. The outer walls are clad with blockwork lined brick at ground level and lined profile metal sheeting at first floor level.

At first floor level the rear element of the office accommodation has been opened up to the warehouse to provide additional mezzanine accommodation. The front section of the first floor offices are not currently used by the tenant.

the building has 6 loading doors to the northern elevation accessed directly off the exterior service yard.

The property benefits from a highly secure 3 metre perimeter fence.

descriPtion


the property has been measured in accordance with the rics Property measurement (1st edition) and extends to 48,376 sqft (4,494.3 sqm).

The current internal configuration provides 34% office content. The rear part of the first floor office accommodation has been altered to open out to the warehouse to provide additional storage. Part of the front section of the first floor offices are currently unused by the tenant.

accommodation

the property is held freehold.

tenure

the site extends to 2.64 acres (1.068 hectares) which represents a low built site coverage of 35%.

service yard average depth from access of lake road is 35m, average yard width is 86m providing excellent access, turning and lorry parking facilities.

FLOOR SQM SQFT

Ground floor Warehouse 2,971.6 31,986

Ground Floor Office 757.0 8,148

First Floor Office 765.7 8,242

Total 4,494.3 48,376


the property is let to Hermes Parcelnet ltd by way of a full repairing & insuring lease for a period of 10 years from 26th march 2012, expiring 25th march 2022; therefore, providing a further 4.4 years of secure income.

the current passing rent of £290,000 per annum equates to a low overall rate of £5.99 per sqft.

the rent review dated 26th march 2017 remains outstanding.

tenancy coVenant information

Hermes Parcelnet limited (d&B rating: 5a1) is the uK’s leading consumer delivery specialist handling more than 245 million parcels each year. Hermes provides a range of flexible and affordable delivery options to home, work, neighbour, safe place or Parcelshop that are convenient for the consumer and fit within their increasingly busy lifestyles. Within the uK, Hermes operates a network of over 10,000 lifestyle couriers and over 4,500 Parcelshops.

YEAR END TURNOVER PRE-TAX PROFiT NET WORTH

28th february 2016 £510,369,000 £33,727,000 £74,132,000

28th february 2015 £442,569,000 £36,357,000 £65,777,000

28th february 2014 £382,313,000 £33,552,000 £61,450,000

notice has been served on the tenant at a rent of £337,284 per annum, which equates to £6.75 per sqft plus a rate of 50% on the canopied yard area.

the rent review provisions within the lease assume a hypothetical term of 10 years with a tenant’s break option in year 5.

further information can be provided upon request.

Hermes works with a wide range of leading high street, catalogue and online retailers in the uK including next directory, asos, tesco, John lewis, debenhams and arcadia Group. Hermes uK is owned by the German group Hermes logistik Gruppe deutschland (HlGd) who is the largest independent home delivery specialist for business-to-consumer (B2c) and consumer-to-consumer (c2c) sectors in Germany.

Hermes Parcelnet in aylesford

Hermes took occupation of the property in 2012 to serve the residential community of aylesford, maidstone and the wider Kent district (1.54m residents); the unit is operated on a 24/7 basis and has the capacity to process up to 42,000 packages over 24 hours.

Hermes Parcelnet Ltd (company reg: 03900782)

delta-simons carried out a Phase i environmental assessment of the site in June 2017. the report concluded that potential land contamination issues and associated environmental liabilities represent a ‘Low‘ risk in its current use.

enVironmental

The site is not located in an area at risk of flooding.

a copy of the full report is provided on the data site supporting the sale.


PROPERTY DATE STATUS PRiCE NiY SiZE TENANT WAULT AVG RENT CAP VAL (sqft) (Exp/Br) (per sqft) (per sqft)

unit a, tongwell street, milton Keynes oct-17 under offer £15,400,000 3.90% 103,644 Westcoast ltd 8.70/3.70 £6.19 £148.60

unit 4, Golden Business Park, leyton oct-17 under offer c.£4,800,000 c.3.75% 21,413 fedex uK ltd 5.20 £8.93 £224.16

unit K60, lister road, Basingstoke oct-17 completed £9,515,000 5.18% 58,504 Bunzl uK ltd 9.50/4.50 £8.98 £162.64

unit 18, mitcham industrial estate aug-17 completed £4,250,000 5.19% 29,109 Go carting for fun ltd 19.00/9.00 £8.00 £146.00

dawson road, milton Keynes Jun-17 completed £10,410,000 5.40% 108,018 yokokama H.P.t ltd 3.75 £5.55 £96.37

unit a, link 20, Bellingham Way, aylesford Jun-17 completed £2,475,000 5.50% 24,343 csc computer sciences ltd 9.00/4.00 £7.02 £101.67

aylesford is an established south-east distribution location situated midway between central london and the uK’s main coastal transport nodes of dover and the channel tunnel.

With approximately 80,000 residents within a 15-minute drive time and access to the m20 motorway in under 1.5 miles from the property, Quarry Wood is ideally positioned to serve both the local residents and the wider Kent population (1.54m people).

distribution accommodation is currently in limited supply, this combined with increasing demand from internet based commerce, “just in time” and “last mile” deliveries has sought to put pressure on rents within the surrounding area, as demonstrated by the recent lettings at invicta riverside and access Park in aylesford.

recent deals highlighting the strength in this sector include:

occuPational marKet commentary

inVestment marKet commentary

Access PArk access Park, north of the m20 between junctions 4 & 5, provides 85,871 sqft across three units. unit 2B has been let to Bunzl by way of a 10 year term in september 2017 at a rent of £7.75 per sqft. units 2a and 2c are also under offer to distributors, both at rents which equate to £7.75 per sqft.

INvIctA rIversIde invicta riverside, also north of the m20 between junctions 4 & 5, provides 189,673 sqft across three units. dfs agreed to take unit 3, 59,346 sqft for an unbroken term of 15 years in march 2017. the agreed rent equates to £7.25 per sqft. unit 1 & 2 were let late in Q4 2015 and Q1 2016, unit 1 extends to 89,307 sqft and was let to amazon for a 5 year term at a rent of £6.75 per sqft; unit 2 extends to 41,020 sqft and was let to tts ltd for 6 years term certain at a rent of £7.25 per sqft.

‘sectIoN B’ MILLs roAd opposite Hermes Parcelnet on mills road, Quarry Wood, ‘section B’ mills road was let to Horizon international cargo ltd in July 2017 by way of a 10-year lease with a break clause in year 5. the refurbished unit comprises 65,992 sqft, has one point of access, restricted circulation and a site cover of c. 50%. The rent agreed reflects a headline rate of £6.75 per sqft which after the 9 month rent free and 3 month break penalty provides a net effective rate of £6.41 per sqft.

iMPORTANT iNFORMATiON: 1. no description or information given by clay street ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. neither clay street ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.these particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.the photographs show only certain parts of the property at the time they were taken. any areas measurements or distances given are approximate only. 4. any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.

designed and produced by diablo: www.diablodesign.co.uk november 2017


ePc

A copy of the Energy Performance Certificate (ePc) is available upon request.

Vat

the property is elected for Vat and therefore Vat will be payable on the purchase price. it is anticipated that the sale will be treated as a transfer of a Going concern.

ProPosal

We are inviting offers in excess of £4,950,000, subject to contract and exclusive of Vat.

A purchase at this level would reflect a Net Initial Yield of 5.50% allowing for purchaser’s costs of 6.59%.

This reflects a capital value figure of £102 per sqft.

dAtArooM: Gowling WlG are hosting the secure dataroom to support the sale. access details can be provided by clay street upon request.

sUBJect to coNtrAct

should you require further information or would like to arrange a viewing, please contact:

chris dickin: [email protected]

rob Atkins: [email protected]

George Freeman: [email protected]

Telephone: 0207 935 2831

furtHer information

Hermes Parcelnet, Mills Road forms part of the Quarry Wood Portfolio.

The Quarry Wood Portfolio comprises 2 multi let industrial estates and 2 single let industrial warehouse assets.

The portfolio is available as a whole or in individual parts.

LOOMiS, LAKE ROADHERMES PARCELNET, MiLLS ROADBURNT ASH TRADE PARK MiLLS ROAD iNDUSTRiAL ESTATE

Burnt asH trade ParK

mills road industrial estate

Hermes Parcelnet, mills road

loomis, laKe road

QUArrY Wood PortFoLIo

£687,694 76,397

£370,350 57,016

£290,00048,376

£81,7509,427

£1,430,525191,216

5.50%7.55

5.75%3.67

5.50%4.43

6.50%6.18

5.60%5.80

£153

£106

£102

£126

£125

£11,720,000

£6,040,000

£4,950,000

£1,190,000

£23,900,000

ProPertyrent

(per annum)area (sqft) niy

Wault (to exp.) caP Val PricinG

http://www.claystreet.co.uk

prime south east industrial distribution investment · 2 hermes parcelnet, 15 mills road, quarry...

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