stop london-industrial-investment-opportunity-dartford - Singer Vielle Sales

London Industrial Investment Opportunity

Unit 19 Schooner Park | Crossways Business Park | Dartford | Kent | DA2 6NW

£625,000

subject to contract

SOLD

Summary

• Strategic Greater London location

• Modern industrial investment

• Investment value largely underpinned by VP value

• £625,000, subject to contract

• 7.0% Net Initial Yield

• £164 per sq ft Capital Value

Location

Crossways Business Park is a 300 acre commercial development in a key strategic location in the South East of England approximately 23 miles (37 km) south-east of Central London, 15 miles (24 km) east of Bromley and 2.5 miles (4 km) north east of Dartford town centre. It is positioned on the M25 at Junction 1a and is in the heart of the regeneration schemes of Bluewater, Ebbsfleet International and Paramount Park.

Dartford benefits from very good communication links and a strong professional employment base, making it an attractive commercial location of choice for both national and international occupiers. The town has a total working age population (16 – 64) of 53,184 (source: Census, 2011) and a very low rate of unemployment, standing at just 1.1%, well below the national average of 5.2% (source: ONS, Oct 2015).

Crossways benefits from two mainline railway stations at Greenhithe and Stone Crossing giving direct access to London with an average journey time of approximately 48 minutes to London Charing Cross. Ebbsfleet International is a only 8 km (5 miles) to the east and provides access to London in 17 minutes. The business park is also serviced by a modern bus service called Fastrack which links local areas including Dartford, Bluewater, Ebbsfleet and Gravesend.

Situation

Crossways Business Park is made up of 3 million square feet of high quality commercial buildings with a blend of hotels and amenities including The Living Well fitness club, an Asda superstore with pharmacy and petrol station, and The Wharf public house. The Business Park has been carefully landscaped and is maintained to provide a high quality business setting and to give the opportunity for employees to enjoy the lakeside walks and wildlife. The park is also close to Bluewater Shopping Centre, one of the UK’s most innovative retail and leisure destinations.

Schooner Park is situated on the south-eastern border of the Business Park neighbouring Masthead to the north and Waterside Court to the east. Schooner Park benefits from direct access to Anchor Boulevard via Schooner Court which eradicates the need to drive around the entirety of the central lake. The London to Gillingham railway line lies directly behind Schooner Park.

Access to the M25 (Junction 1a) is within 0.5 mile (800 metres) of the property and is some 0.8 miles (1.3 km) west of Stone Crossing Railway Station. Other well-known occupiers on the Business Park include, Laing O’Rourke, Kuehne and Nagel, HSBC, Mazda Motors, John Lewis Distribution Centre, Hilton and Howdens.

Description

The property forms part of the modern Schooner Park development which comprises 24 production and warehouse units. Unit 19 is prominently situated at the entrance to Schooner Park and forms part of a terrace adjoining Units 18, 20 and 21.

The property comprises a high quality, modern unit with ground floor warehouse accommodation and office accommodation on first floor. Constructed from a steel frame with metal profile cladding and brick elevations with 30 kN/sq m floorslab, a level access loading door of 3m x 3m, 7 designated car parking spaces (2 of which are disabled spaces) and a clear eaves height of over 5.5 m. The first floor office accommodation benefits from perimeter trunking, suspended ceilings, VRV heating and cooling and a Very Good BREEAM rating.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Gross Internal Areas;

Ground Floor 176.05 sq m 1,895 sq ft
First Floor 176.88 sq m 1,904 sq ft
Total 352.93 sq m 3,799 sq ft

A set of floor plans is available to download and the measured survey report can be re-addressed to a purchaser.

Rateable Value

We understand the Rateable Value for the property is currently £37,000.

The Uniform Business Rate is 48 pence per pound for 2015/2016.

Site

A Phase I Environmental Risk Assessment was carried out by BWB Consulting Limited in December 2016 which concluded that the site represents a low risk with respect to contaminated land and ground stability liability issues. A copy of the report is available to download and a reliance letter is available to a purchaser. 

Tenure

Freehold.

Tenancy

The property is entirely let to EW Cox UK Limited, t/a CoxGomyl, on a full repairing and insuring lease for a term of 10 years from 15 December 2010, expiring on 14 December 2020.

The current passing rent is £46,000 per annum (£130.34 per sq m / £12.10 per sq ft).

The permitted use is as light industrial and research and development within Classes B1 (b) and/or (c) and B8 of the Town and Country Planning (Use Classes) Order 1987 except for the ground floor of the Premises for which use as offices within Class B2 of the Use Classes Order.

Service Charge

The total service charge due for the year from the tenant is £2,255.19. Copies of the service charge accounts and service charge budgets are available to download.

Covenant

EW Cox UK Limited t/a CoxGomyl (Co. No. 06594425) have reported the following figures:

  30th June 2015 30th June 2014
Turnover £4,905,902 £4,622,237
Pre-Tax Profits (Loss) £123,902 (£195,285)
Shareholders’ Funds  £269,021 £175,873

CoxGomyl originated in 1955 and have become the global leaders in building maintenance units, commonly referred to as BMU’s. The group employs around 400 staff across the globe with the majority of employees working in engineering and production with Corporate HQ in Melbourne, design studios in Melbourne and Madrid, modern manufacturing facilities in Madrid, and sales companies in New York, Melbourne, Singapore, Hong Kong, Shanghai, Dubai, Abu Dhabi, Moscow, London and Madrid. For further information visit www.coxgomyl.com.

Capital Value

A purchase at the asking price reflects a capital value of £164 per sq ft. Adjoining properties on Schooner Park have recently been sold, demonstrating that the investment value is largely underpinned by the vacant possession value:

Unit Area Capital Value Date Sold
23  5,172 sq ft £141.72 per sq ft August 2016
21 3,588 sq ft £132.39 per sq ft September 2016
18 3,578 sq ft £136.95 per sq ft September 2016

   

  

   

  

VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers in the region of £625,000 (Six Hundred and Twenty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 7.0% and a capital value of £1,771 per sq m / £164 per sq ft, assuming purchaser’s costs of 5.12%.

Investment Considerations

1. An opportunity to acquire a modern Greater London industrial investment;

2. The property is strategically located within a highly established business park;

3. The investment value is largely underpinned by the vacant possession value;

4. A purchase at the asking price will provide an investor with an attractive net initial yield;

5. The investment provides a purchaser with an attractive lot size.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Clyde & Co  
Annabel Evans annabel.evans@clydeco.com +44 (0) 20 7876 5505 
Sam Cobley sam.cobley@clydeco.com +44 (0) 20 7876 5478 

Joint Agent

 

Buchanan Bond
3-5 Barrett Street
St Christopher’s Place
London W1U 1AY
Tel : 020 7042 6000

Steven Pollack: steven@buchananbond.com

Jon Skerry: jonathan@buchananbond.com

customer service