Download - Allsop

Harlow Enterprise Centre, 25/52 Burnt Mill, Elizabeth Way, Harlow, Essex CM20 2HS
Freehold Multi-let South-East Industrial Investment Opportunity

Harlow Enterprise Centre, 25/52 Burnt Mill, Elizabeth Way, Harlow, Essex CM20 2HS
Investment Considerations
■■
Harlow is an important south-east town which has attracted
1,500 businesses and employs over 33,000 people
■■
Harlow Enterprise Centre is strategically located 6 miles from
junction 7 of the M11 motorway, which provides direct access
to the M25, central London, Stansted Airport and Cambridge
■■
Excellent access to Harlow Town train station, which is within 0.5 miles
■■
28 units extending to 4,817.12 sq. m (51,851 sq. ft.) on a site
area of 1 hectare (2.45 acres)
■■
Low site coverage of 49%
■■
Freehold
■■
Significant asset management opportunities including re-letting
of vacant space, improving accommodation to drive rents and
re-gearing existing leases to improve income length
■■
The site benefits from Trade Counter uses
■■
High occupancy rate of 85%
■■
Current rent of £331,186 per annum and occupiers include:
Wolseley, Plumbase, City Electrical and Rexel UK
■■
We are instructed to seek offers in the region of £3,435,000
(Three million, four hundred and thirty five thousand pounds).
This reflects the following yield profile after usual purchaser’s
costs of 5.8%:
■■
Net initial yield of 9.1%
■■
Reversionary yield of 10.5%*
Location
*Assuming conservative ERV of £6.50 on the vacant accommodation.
Harlow is a strategic location in the south-east of England located in the north-east quadrant
of London’s Orbital M25 motorway and situated 28 miles north of Central London. A404
A322
A41
M3
J12
M25
A41
M1
Hemel
Hempstead
M3
J21
St Albans
The town has a resident population of approximately 88,000 people with approximately
J20
M1
J19
190,000 living within a 6 mile radius. The town is home to approximately 1500 businesses
M25
A1
employing over 33,000 people and is particularly successful in the fields of distribution,
Watford
High
A413
publishing and printing, precision engineering, electronics, pharmaceuticals M40 Wycombe
and telecommunications.
M25
M1
M40
Harlow benefits from excellent transport links being located 6 miles from Junction 7
Harrow Brent
Cross
J16
of the M11 motorway. The M11 motorway provides direct access to the M25 London
Wembely
A40
Orbital 10.2 miles to the south. Stansted Airport is located 8 miles to the north and
M25
Slough
Cambridge 38 miles. The adjacent A414 provides access to the A10 and A1 (M).
M4
J15 M4
Harlow benefits from good national rail services. Harlow Town railway station
Windsor
provides frequent services to London Liverpool Street (30 minutes), Cambridge
M25 Heathrow
M4
A316
(40 minutes) and Stansted Airport (20 minutes).
Staines
Weybridge
M10
A309
M25
Hatfield
A3
A1(M)
J23
A414
M25
A23
A10
A10
J25
A10
LONDON
Sutton
Hertford
Enfield
Croydon
A20
A12
HARLOW
A414
M25
A13
A2
Bromley
Epping
M11
J27
A12
A20
A2
M11
Chigwell
Roydon Rd
Parkway
A414 Eastwick Rd
M11
A13
J3
Stansted
Airport
20 Mins
A414
M25
M25
Chipping
Ongar
A12
Romford
Dartford
J2
J28
A12
Brentwood
A414
M25
A127
J29
Canons Brook
Golf Club
M25
Roydon Rd
Swanley
M20
lizabeth Way
A2
Chelmsford
A13
A12
Billericay
Wickford
Basildon
Gravesend
Fourth Ave
A1169
Elizabeth Way
M2
A130
Helons Rd
A414 Eastwick Rd
Hodings Rd
Parndon M
ill Ln
The Hornbeams
The Hornbeams
Hodings Rd
Fourth Ave
Harberts Rd
Hamstel
Rd
Burnt Mill
A1169 Elizabeth Way
Princess
Alexandra
Hospital
RiverMill
Sharpecroft
A414
Fifth Ave
Ha ydens Rd
BurntMill Ln
Hodings R d
Fourth Ave
Fourth Ave
Burnt Mill Ln
A414
Fifth Ave A1019 Allende Ave
TOWN
CENTRE
Harlow
Town
A1019 Velizy Ave
Third Ave
Terlings
Park
A414 Edinburgh Wa
Harlow Town
Park
Peace
Wood
First Avenue Mandela
Maddox Rd
A1025 Second Ave

Asset Management
The property presents a number of asset management opportunities,
which we have outlined below.
• Regear the existing leases and renew the leases currently holding
over to increase the average unexpired lease term
• Implement a refurbishment program to improve the quality of the
estate and increase rents
• Remove break clauses
• Potential to sell off units to individual owner occupiers
• Implement reviews and lease renewals to secure reversionary income
Energy Rating
The property has been rated C on the EPC scale (74).
EPC certificates available upon request.
VAT
The property is elected for VAT purposes and therefore VAT will be payable
by the purchaser, unless the sale is structured as a TOGC.
Covenant
Wolseley UK Ltd (5.3% of income)
Wolseley UK Ltd is the UK operating subsidiary of Wolseley PLC, one of the
largest distributors of building products in the world. The company is wholly
engaged in the distribution of construction products and materials through a
nationwide branch network.
The company is organised into trading brands, which service distinct customer
groups. Many of these brands are market leaders with outstanding reputations
for supplying professionals in the construction market. Names such as Plumb
Center, Parts Center, Pipe Center, Drain Center, Climate Center, William Wilson
are widely recognised throughout the industry.
There are 820 branches nationwide. In July 2012 the Group had a turnover of
£13.4bn and net assets of £3bn.
Plumbase Ltd (11.8% of income)
Plumbase is a national plumbers’ merchant supplying heating, plumbing,
bathrooms, showers, renewables and boiler spares to professional trade
installers - traditionally through a network of stores nationwide but now
with an online offering. Many of their units, such as the subject properties,
are used for storage and distribution as well as trade counter sales so
they are well equipped to deal with changing retail habits and provide
multi-channel retailing.
Plumbase have expanded to over 200 outlets nationwide and as at
December 2011 had a total net worth of £2.2m.
Rexel UK Ltd t/a WF Electricals (8.1% of income)
Rexel is a business-to-business distributor of electrical installation supplies.
They focus on the industrial MRO (Maintenance Repair and Operations),
safety and electrical markets.
Each of their established national distributor brands is comprised of a team
of experienced and knowledgeable experts, dedicated to understanding
their market and meeting or exceeding their customers’ needs.
From local independent contractors to blue chip multinational companies,
their sites are conveniently located to serve local markets.
Rexel UK is a Rexel Group Company. The Group operates in 37 countries, with a
network of some 2,100 branches, and employs over 28,000 people. In December
2012 the Group had a turnover of £11bn and total net assets of £3.5bn.
Total Waste Management Ltd (8.0% of income)
Total Waste Management Ltd is a scrap metal merchant and skip hire company.
As at March 2012, they posted a turnover of £20m and a total net worth of £2m.
City Electrical Ltd (7.2% of income)
City Electrical Factors Ltd are the United Kingdom’s leading Electrical
Wholesale Network. At 400 outlets, they have almost twice as many
distribution outlets as their nearest competitor. Their Group not only extends
throughout the United Kingdom but also North America, the Middle East,
and now Australia.
As at April 2012, the company posted a turnover of £484m and had total net
assets of £82m.

25
35
36
37
45
1
Situation
The property occupies a large rectangular site bounded by Elizabeth Way (A1169)
to the south and Burnt Mill to the north. The property is accessed via Burnt Mill.
The property is situated in a mixed use area where predominant uses
are residential and industrial.
25/32 Burnt Mill
Harlow, Essex
Description
The property comprises 4,817.12 sq. m. (51,851 sq. ft.) in 28 terraced industrial
units. The units are of concrete frame construction with metal shutter doors.
Internally the units have an eaves height of 4.1 m (13 ft).
5 to 6
Each unit benefits from off road parking and yard areas to the front,
which are accessed from Burnt Mill.
7
The service road (Burnt Mill) has been adopted by the local authority.
14
Site
The site area extends to 1 hectare (2.45 acres), which equates to a low site
coverage of 49%.
Warehouse
13
BURNT MILL
52
47
Tenure
44 43
46
Freehold
39 to 42
38
45.4m
30
86
44.5m
88
ELIZABETH WAY
90
91
93
89
92
46.6m
41.8m
© Crown Copyright, ES 100004106. For identification purposes only.
100
El Sub Sta
260
264
257
261

Tenancies and Accommodation
The property is let on the following occupational tenancies:
Unit Tenant Name Area
Sq m
Area
Sq ft
Current Rent £ p.a.
(£ per sq ft)
25 & 26 Excel Trailers Ltd 328.60 3,537 £27,500
(£7.77)
27 David Nicholas Perryman T/A Hybrid Motorsport & Paintworks 162.58 1,750 £13,125
(£7.50)
28 Burnt Mill Garage Ltd 162.58 1,750 £12,880
(£7.36)
29 Hand of Help UK Ltd 162.49 1,749 £12,000
(£6.86)
30 Essex Automatic Transmissions Ltd 235.60 2,536 £20,288
(£8.00)
31 Flexipower UK Ltd 162.12 1,745 £13,960
(£8.00)
32 James Lawrence Byrne T/A Protech 162.12 1,745 £12,000
(£6.88)
33 L Bennett & Son Ltd 163.23 1,757 £12,000
(£6.83)
34 C & A Tyres Ltd 166.02 1,787 £15,190
(£8.50)
35 & 36 Construction Training Partnership Ltd 333.06 3,585 £29,576
(£8.24)
37 Vacant 161.47 1,738
38 Wolseley UK Ltd 247.96 2,669 £17,400
(£6.52)
39 & 40 City Electrical Factors Ltd 330.74 3,560 £23,500
(£6.60)
41 Towning Wholesale & Distribution Ltd 162.39 1,748 £15,732
(£9.00)
42 Vacant 165.18 1,778
43, 44 &
45
Plumbase Ltd 492.67 5,303 £38,445
(£7.25)
46 Vacant 241.27 2,597
47 Vacant 162.39 1,748
48 & 49 Total Waste Management Ltd 324.70 3,495 £26,212
(£7.50)
50 Rexel UK Ltd T/A WF Electrical 163.04 1,755 £13,163
(£7.50)
51 Rexel UK Ltd T/A WF Electrical 163.70 1,762 £13,215
(£7.50)
52 Colin Philip Thorpe T/A C&S Auto’s 163.23 1,757 £15,000
(£8.53)
Total 4,817.12* 51,851* £331,186
Lease Start
(Review)
Lease expiry
(Break)
Comments
24/03/2011 23/03/2014 Schedule of Condition. Rolling tenant break with 3 months notice
£4,583.33 held as deposit. Rent paid on monthly basis.
01/01/2010 31/12/2014 £2,188 held as deposit.
Rent paid on monthly basis.
01/01/2010 31/12/2012 Holding Over £2,147 held as deposit.
Rent paid on monthly basis.
01/01/2011 31/12/2011 Holding Over £1,000 held as deposit.
Rent paid on monthly basis.
25/03/2009 24/03/2014 £5,072 held as deposit.
Rent paid on monthly basis.
01/12/2008 30/11/2013
21/05/2012 20/05/2015
(31/10/2013)
20/01/2012
(20/01/2015)
£2,000 held as deposit Rent rises to £12,000 on 20/05/2013.
Rent paid on monthly basis.
19/01/2017 £1,000 held as deposit.
Rent paid on monthly basis.
01/05/2007 30/04/2009 Holding Over £3,798 held as deposit
Rent paid on monthly basis.
01/09/2009 31/08/2011 Holding Over £7,394 held as deposit.
Rent paid on monthly basis.
01/06/2010 31/05/2015 Rent paid on monthly basis.
01/05/2012 30/04/2017 Rent paid on monthly basis.
01/04/2008 31/03/2010 Holding Over £3,933 held as deposit.
Rent paid on monthly basis.
29/09/2004
(29/09/2013)
28/09/2016 Tenant has ownership of mezzanine floor in unit.
01/10/2009 30/09/2012 Holding Over Rent paid on monthly basis
20/02/2006 19/02/2014
20/02/2006 19/02/2014
01/11/2008 31/10/2011 Holding Over £3,312.50 held as deposit.
Rent paid on monthly basis.
*Allsop have relied on vendors areas and verified where possible.

Proposal
We are instructed to seek offers in the region of £3,435,000 (Three million, four hundred and thirty
five thousand pounds). This reflects the following yield profile after usual purchaser’s costs of 5.8%:
n Net initial yield of 9.1% n Reversionary yield of 10.5%*
*Assuming conservative ERV of £6.50 on the vacant accommodation.
For further information or to make arrangements for viewing please contact:
Scott Tyler
020 7543 6719
scott.tyler@allsop.co.uk
Guy Scott Plummer
020 7543 6726
guy.scott-plummer@allsop.co.uk
Joe Raitt
020 7543 6890
joe.raitt@allsop.co.uk
www.allsop.co.uk
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. 03.13