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

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

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