Tesco Distribution Unit, Flex Meadow, Pinnacles West, Harlow - Allsop

Freehold Industrial Distribution Investment Opportunity
Tesco Plc with an unexpired term of approximately 12.6 years
Tesco Distribution Unit, Flex Meadow, Pinnacles West, Harlow, CM19 5TJ 020 7588 4433

Tesco Distribution Unit, Flex Meadow,
Pinnacles West, Harlow, CM19 5TJ
Investment Considerations
■ Harlow is strategically located 4 miles
from junction 7 of the M11 motorway
which provides direct access to the M25,
Central London, Stansted Airport and
Cambridge.
■ A well specified chilled distribution unit.
■ Freehold.
■ Let to Tesco Stores Limited with the lease
guaranteed by Tesco plc, the UK’s largest
food retailer.
■ Unexpired term of approximately 12.6 years.
■ The unit extends to 25,372.3 sq m
(273,115 sq ft) on a site of 6.83 hectares
(16.84 acres).
■ Low site coverage of approximately 37%.
■ Current rent of £1,817,000 per annum
which reflects £71.61 per sq m (£6.65 psf).
■ Rent reviews to Market Rent or rents of a
3,251.6 sq m (35,000 sq ft) building on site.
We are instructed to seek offers in the region of
£24,500,000 which reflects a net initial yield of 7%
net of purchasers costs at 5.8%

Glaxo Smith Kline
Tesco
Distribution
Facility
Harlow Town
Centre
Norbert Dentressangle
DHL
Glaxo Smith Kline

4
Tesco Distribution Unit, Flex Meadow, Pinnacles West, Harlow, CM19 5TJ
High
Wycombe
M3
A404
A322
A41
M40
Slough
M4
Windsor
M3
A413
Woking
Hemel
Hempstead
M25
J16
J12
M25
M25
M25
J15
Staines
M25
A3
A41
M3
J20
J19
J10
Watford
M4
Heathrow
J21
St Albans
Harrow
M25
Brent
Cross
Epsom
M25
Hatfield Hatfield
J23
Guildford Reigate
Location
M1
M10
M1
A40
A3
A316
A309
M25
A1
M1
A3
A1(M)
Sutton
A414 A414
M25
Enfield
London
A23
A23
J7
M23
J25
Croydon
M25
A10
A10
A10
Tesco
A20
A12
M25
A13
A2
Bromley
M11
Harlow
J27
J7
M11
M11 M25
M25
A20
A12
A2
Stansted
Airport
30 mins
Romford
Dartford
M25
J3
A414
M25
A12
J2
J28
M25
M25
M20
J5
M26
Sevenoaks
Harlow is a strategic location in the south east of England located in the north
east quadrant of the London’s Orbital M25 motorway and situated 45 km (28 miles)
north of Central London.
The town benefits from excellent transport links being located 6 km (4 miles) from
Junction 7 of the M11 motorway and the A414. The M11 motorway provides direct
access to the M25 London Orbital 11 km (7 miles) to the south. Stansted Airport is
located 13 km (8 miles) to the north and Cambridge 61 km (38 miles) to the north.
The A414 3.2 km (2 miles) to the north provides access to the A10 and A1 (M).
Harlow benefits from good quality national rail services. Harlow Town railway station
provides frequent services to London Liverpool Street (30 minutes), Cambridge
(40 minutes) and Stansted International Airport (20 minutes).
Harlow has a resident population of approximately 88,000 people with approximately
190,000 living within a 10 km (6 miles) radius. The town is home to approximately
1500 businesses employing over 33,000 people and is particularly successful in
the fields of distribution, publishing and printing, precision engineering, electronics,
pharmaceuticals and telecommunications.
A21
A13
J29
A12
A2
Chelmsford
A414
A127
Basildon
Harlow Rd Harlow Rd Harlow Rd Roydon Rd Roydon Rd
A13
Tesco
M20
Situation
A12
M2
A130
Roydon Rd
FLEX MEADOW
Canons Brook
Golf Club
Elizabeth Way
M20
Fourth Ave
A1169
A1169 THIRD AVE
The property is situated on Flex Meadow,
to the west of Harlow town centre
within the established industrial location
of Pinnacles West.
The property is accessed from Junction
7 of the M11 via the A414 and is
surrounded by industrial distribution
units and multi-let estates. Nearby
occupiers include:
• GlaxoSmithKline
• DHL
• Christian Salvesen
• Nortel
A414
Hodings Rd
Hodings Rd Hodings Rd
Helions Rd Helions Rd
Fourth Ave Fourth Ave
Hamstel Rd Hamstel Rd
ELIZABETH WAY ELIZABETH WAY
A1169
KATHERINES WAY
Eastwick Road
A1169
A1025
A1169
Princess
Alexandra
Hospital
Harberts Rd Harberts Rd
Sharpecroft
Northbrooks
THIRD AVE
Abercrombie Way
A414
FIFTH AVE
Hodings Rd
Haydens Rd Haydens Rd
Kitson Way
W Gate
Burn t Mill Ln
Town
Centre
Town Park
The Dashes
Howard Way Howard Way Howard Way Howard Way Howard Way
Fourth Ave First Ave Mandela Ave First Ave MAndela Av First Ave Mandela Av
N Gate
A1025
A1019
Post Office Rd
E Gate
ALLENDE AVE
A1019
Terminus St
S Gate
Luther King Rd
Harlow
Town
VELIZY AVE
A1019
A414
Tending Rd Tending Rd
EDINBURGH WAY
Tripton Rd
Maddox Rd
Marston Rd
A414
Tending Rd Tending Rd
The Dashes
SECOND AVESECOND AVE
Jct. 7
M11
A1025
Tillwicks Rd

© Crown Copyright reserved ES 100004106. For identification purposes only.
Site
The site extends to approximately
6.83 hectares (16.84 acres), which
represents a low site coverage of
approximately 37%.
Description
The property is a high bay chilled industrial distribution warehouse facility, constructed in 1989 with ancillary ground and first floor
office accommodation, lorry parking and an extensive self contained car park.
The warehouse is of steel portal frame construction with profile metal sheeting to the front elevation and roof with double glazed
curtain walls with PVC coated aluminium frames to the side elevations. Internally, the warehouse has been divided into three
temperature controlled areas and an electric trolley maintenance workshop. The warehouse benefits from 11m (36 ft) eaves,
79 dock level loading doors and 3 surface loading doors. There is a power float finish concrete floor with a floor loading of
50 kn/m2 design load.
The integral office accommodation protrudes from the warehouse, arranged over two storeys providing a reception area, WC
and changing facilities, open plan offices used as a ‘goods in’ office, canteen and kitchen facilities. The first floor comprises
open plan offices, training facilities, meeting rooms and conference facilities, served by an 8 person passenger lift. To the rear
of the warehouse is a ‘goods out’ office. There are separate WC facilities on the warehouse floor. The office accommodation is
approximately 8% of the total floor area.
The property provides a gross internal area of approximately 25,372.3 sq m (273,115 sq ft).
Externally there is a security gate house, vehicle maintenance workshop, truck wash facility and fuel filling station within
an extensive, well proportioned yard area which includes 48 tractor spaces and 64 trailer spaces. There is a separate car park
for 331 cars.
Freehold Industrial Distribution Investment Opportunity

Tesco Distribution Unit, Flex Meadow, Pinnacles West, Harlow, CM19 5TJ
Tesco Harlow Operation
The property is in operation 24 hours a day, for 365 days a year operating as a
fresh and frozen goods facility serving all of London and parts of East Anglia.
This store is part of four distribution facilities that serve the south east of
England. Further facilities are located at Welham Green, providing dry goods
to London and parts of East Anglia. Snodland provides a chilled facility and
Thurrock provides a dry facility serving the remaining parts of the South East.
The tenant is currently reconfiguring an internal element of the unit to allow the
distribution facility to serve another 60 Tesco convenience stores in parts of
London and East Anglia.

Accommodation
The property provides the following floor area. These measurements have
been supplied by the vendor
Floor Description sq m sq ft
Ground floor Warehouse 22,925 246,771
Ground floor Offices 893.97 9,623
First Floor Offices 893.97 9,623
Gate House Offices 35.54 383
Vehicle Maintenance Warehouse 623.82 6,715
Total 25,372.3 273,115
In addition the tenant has extended the property to provide a further
236.53 sq m (2546 sq ft) of office accommodation. These are tenant
improvement works.
Tenancy
The property is let in its entirety to Tesco Stores Ltd, guaranteed by the
ultimate parent company Tesco PLC, for a term of 35 years from 25th
December 1988 expiring on 24th December 2023 on full repairing and
insuring terms. The unexpired term is therefore approximately 12.6 years.
The lease is subject to five yearly upward only rent reviews. The rent
review clause states the rent may be reviewed to either the actual
building’s or by reference to a notional standard warehouse assuming a
floor area of 3,251.6 sq m (35,000 sq ft) using a multiplier of 7.69. The
premises are therefore assumed with the rent review clause to comprise a
gross internal area of 25,007 sq m (269,182 sq ft).
The passing rent is £1,817,000 which equates to £71.61 per sq m
(£6.65 psf) on an overall basis.
Tenure
The property is held Freehold.
Covenant
Tesco is the UK’s largest supermarket operator and one of the world’s
largest retailers. The principle activity of the group is the operations of
supermarket stores throughout the UK. Tesco currently trades from
1,988 stores employing over 270,000 people, with a further 1,000 stores
outside the UK.
Tesco Stores Ltd have reported the following accounts
for the past 3 years:
27-Feb-10
£(’000s)
28-Feb-09
£(’000s)
23-Feb-08
£(’000s)
Turnover 38,742,000 38,027,000 34,786,000
Pre-tax profit 2,419,000 1,748,000 1,320,000
Net worth 6,515,000 5,475,000 4,728,000
Tesco PLC have reported the following accounts for the past 3 years:
27-Feb-10
£(’000s)
28-Feb-09
£(’000s)
23-Feb-08
£(’000s)
Turnover 56,910,000 53,898,000 47,298,000
Pre-tax profit 3,176,000 2,917,000 2,803,000
Net worth 10,419,000 8,773,000 9,479,000
Environmental
Freehold Industrial Distribution Investment Opportunity
A Phase 1 Environmental Review has been undertaken
by ENVIRON, dated January 2009. ‘ENVIRON’ are of
the opinion that the site represents a ‘low to moderate’
risk with respect to the ground contamination.
VAT
The property has been elected for VAT.
Capital Allowances
Capital allowances are available to the purchaser.
Further details can be provided upon request.

Tesco Distribution Unit, Flex Meadow, Pinnacles West, Harlow, CM19 5TJ
Proposal
We are instructed to seek offers in the region of
£24,500,000 (Twenty Four Million Five Hundred
Thousand Pounds) subject to contract and
exclusive of VAT for the benefit of the freehold
interest. This reflects a net initial yield of 7%
net of purchasers costs at 5.8%.
For further information or to make arrangements for viewing please contact:
Scott Tyler
020 7543 6719
scott.tyler@allsop.co.uk
www.allsop.co.uk
William Dalton
020 7543 6707
william.dalton@allsop.co.uk
Tom Dixon
020 7079 2052
tdixon@phillipsroth.co.uk
020 7437 6977
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property
are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations,
warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to:
(a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property;
and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. 05.11