St Gobain

WELL LET GREATER LONDON INDUSTRIAL INVESTMENT
SAINT-GOBAIN
606 Purley Way, Croydon, CR0 4RF

INVESTMENT CONSIDERATIONS
The property provides a rare opportunity to acquire a Greater London Industrial investment let to an undoubted
covenant for a further 15.5 years. The salient points are as follows:
• Excellently located fronting Purley Way providing quick access to Central London, the M25 and the M23.
• Modern well specified unit with a secured yard area.
• The property extends to an overall total area of 7,661m² (82,462ft²) on a Gross Internal Basis (GIA).
• The property is let on an FRI lease to Saint-Gobain Building Distribution Limited, for a term of
25 years commencing 26 November 2003 and expiring on 25 November 2028, approximately
15.5 years unexpired term.
• Current passing rent of £634,847 per annum, what on an overall basis equates to £7.70 per ft², and
is subject to 5 yearly rent reviews.
We have been instructed to seek offers in excess of £10,000,000 (Ten Million Pounds) subject to contract
and exclusive of VAT. This reflects an attractive net initial yield of 6.00% subject to the usual purchaser’s
costs of 5.80%.
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SAINT-GOBAIN, CROYDON

LOCATION
Croydon is the principal commercial centre in south London with extensive industrial/
warehouse, business park and retail warehouse developments around Purley Way.
The A23 trunk road which runs to the west of the Town Centre provides the area with
excellent access to Junction 7 of the M25 and Junction 8 of the M23, 8 miles to the
south, and to Central London, 10 miles to the north.
SAINT -GOBAIN
The area was originally developed as a major industrial/warehouse location in the
early to mid-20th Century adjoining Croydon airport, then the principal London
airport. More recently the area has seen extensive redevelopment with more modern
industrial warehouse and retail warehouse buildings reflecting its strategic location.
The area benefits from excellent rail links with 4 main line stations, East Croydon,
West Croydon, South Croydon and Waddon as well as a Tram Service. The fastest
Train to Central London takes approximately 16 minutes.
Gatwick Airport, some 16 miles to the south, is directly linked via the A23 and M23.
There are also direct trains from East Croydon with approximate train times of 15
minutes.
SITUATION
The subject property is prominently situated fronting on to Purley Way (A23) at the
Junction with Queensway. The site can be accessed from both ends of the Queensway
and is surrounded to the north and west by modern warehousing, business units and
car show rooms fronting Purley Way.
Occupiers located in the vicinity include: UK Mail, Toyota, MSL, Real Digital
International, DHL, IKEA, Halfords, Lexus, Texaco and Porcelanaso.
SITE
The property has an approximate site area of 1.508 hectares (3.725 acres)
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SAINT-GOBAIN, CROYDON

DESCRIPTION
The subject property comprises a modern purpose built builder’s merchant
warehouse built around a steel portal frame construction. The elevations
are part brick part insulated profile sheet cladding surmounted by a multi
pitched roof. The property has an eaves height of 7.6m throughout.
The property provides 3 distinct areas with 2 warehouses either side of an
open ended loading area. The property is arranged with Building A fitted
out as a trade ‘retail warehouse’ with the southern part providing warehouse/
storage, sprinkler tap room and pump room. The retail area benefits from
suspended sodium lighting, high level gas heating, sprinklers and roof
mounted fans. Access to the yard is provided through 1 loading door to the
southern end of the warehouse.
Building B comprises warehouse accommodation space constructed to
the same specifications as Building A. A small section at the northern end
has been partitioned off to create a trade counter area. It has the benefit of
8 steel roller shutter doors.
Externally the property benefits from a secured yard area and car parking
spaces located to the front of the subject property.
ACCOMODATION
The property has been measured on a Gross Internal Basis (GIA) in accordance with
the RICS Code of Measuring Practice (6th Edition) and extends to an overall total area
of 7,661m² (82, 462 ft²). A break down is as follows:
Total (m²)
Total (ft²)
Unit A 3,606 38,816
Unit B 2,251 24,233
Covered Loading Area 1,155 12,428
Canopy 649 6,985
Total 7,661 82,462
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SAINT-GOBAIN, CROYDON

TENURE
The property is held freehold.
TENANCY
The property is let on an FRI lease to Saint-Gobain Building Distribution
Limited, for a term of 25 years commencing 26 November 2003 and expiring
on 25 November 2028, which amounts to unexpired term of approximately
15.5 years. It provides a current passing rent of £634,847 per annum,
reflecting £7.70 per ft² on an overall basis.
The rent is reviewed upwards only on a five yearly basis.
COVENANT
Saint-Gobain Building Distribution Limited
31/12/2011 31/12/2010 31/12/2009
Turnover
(£000’s)
Pre-Tax profit
(£000’s)
Shareholder’s
Funds (£000’s)
Source ICC
£534,833 £440,862 £290,057
£4,280 £64,805 £41,575
£323,529 £327,068 £300,510
PROPOSAL
We are instructed by our client to seek offers in excess of £10,000,000 (Ten
Million Pounds), subject to contract and exclusive of VAT. A purchase at
this level reflects a Net Initial Yield 6.00% assuming purchaser’s costs of
5.80%.
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SAINT-GOBAIN, CROYDON

FURTHER INFORMATION
Joel Duncan
T: +44(0)20 7087 5139
joel.duncan@eu.jll.com
Mark Wilson
t: +44(0)20 7399 5874
mark.wilson@eu.jll.com
Lois Locker
t: +44(0)20 7399 5196
lois.locker@eu.jll.com
© Crown Copyright 2013. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle
licence number 100017659. This plan is published for the convenience of identification only and although
believed to be correct is not guaranteed and it does not form any part of any contract.
MISREPRESENTATIONS ACT 1967 & DECLARATION
Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice
that: a) the particulars are set out as general outline only for the guidance of intending purchasers and
do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references
to condition and necessary permissions for use and occupation and other details are given in good faith
and are believed to be correct, but any intending purchaser should not rely on them as statements or
representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of
each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any
representation or warranty whatever in relation to this property.
Subject to Contract. Exclusive of VAT. June 2013.
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SAINT-GOBAIN, CROYDON