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Property Ref: 30467

Prime Freehold Nw London Industrial Investment Let To Blue Chip Covenant - For Sale In Alperton

340 - 342 Athlon Road, Alperton, London, HA0 1BX
Available
sizes
We are instructed to seek offers in excess of £8,202,175 subject to contract and exclusive of VAT, reflecting a NET Initial Yield of 4.00% allowing for the usual purchasers costs of 6.67%.



Investment Considerations

- A rare opportunity to acquire a prime income producing industrial investment in NW London let to a reputable covenant.
- Alperton falls outside the ULEZ extension zone due to be enforced from 25th October 2021.
- Well established covenant, Ford Retail Ltd (Experian rating 94/100 - very low risk).
- Let on a new 15 year FR&I lease.
- 5 yearly RPI linked rent reviews providing a platform for guaranteed rental growth.
- Complete unbroken freehold.
- Accommodation of 19,909 sq ft (1,850 sq m).
- Self-contained and securely fenced site area of approximately 1 acre (0.40 hectares) with a low
site cover of just 40%.
- Excellent communication links with direct access to the A40 - Western Avenue leading to Central London, Heathrow & the wider motorway network.
- Located on the edge of an industrial and residential district with future potential for redevelopment (STPP).
- Close proximity to public transport to include underground stations and various bus routes.

Property Type

Warehouse / Industrial

Tenure

The property is held as a complete freehold.

Price

We are instructed to seek offers in excess of £8,202,175 subject to contract and exclusive of VAT, reflecting a NET Initial Yield of 4.00% allowing for the usual purchasers costs of 6.67%.

Location

Alperton is an area of North West London in the London Brough of Brent, forming the southern part of the town of Wembley. Alperton is some 9.5 miles northwest of Central London and 10 miles from London Heathrow Airport. Alperton is predominantly a residential area but also benefits from pockets of industrial property which are very popular due to lack of supply and excellent transport links.

ULEZ
Alperton falls outside the ULEZ extension zone due to be enforced from 25th October 2021.

Situation

The property is prominently located at the junction of Manor Farm Road and Athlon Road which is accessed via Alperton Lane B456 or alternatively the Bridgewater Road (A4005), bordering Perivale and Wembley which are both well established industrial districts. The North Circular Road (A406) leading to the M1 and the East of London and The Western Avenue (A40) serving Central London and the national motorway network are both within close proximity. Both Alperton (Piccadilly Line) and Hanger Lane (Central Line) Underground Stations are within walking distance while the area is well serviced by various bus routes.

Market Commentary

The general UK industrial investment market and in particular the North West London market continues to attract strong demand from the UK Institutions, Overseas Investors, Private Investors and Local Authorities. The industrial asset class has continued to gain popularity over the retail & office sectors and has further proved to be robust and resilient during turbulent economic conditions when occupier demand has remained strong. Investors are attracted to the sector by the strong occupational market fundamentals and positive rental growth prospects. This has resulted in yield compression across the whole industrial sector with prime yields now being sub 4%. Industrial land values in North West London have also experienced strong growth with values ranging from £7m - £10m per acre which further de-risks any investment.

Please refer to brochure for complete comparable transactions.

Description

The premises comprise a modern, detached steel portal framed industrial / warehouse facility with part brick and part profile sheet metal clad elevations beneath a triple bay pitched roof. Access to the warehouse is available via three full height loading doors. Ancillary two storey offices & welfare facilities are situated to the front of the building. Originally constructed in the late 1990s as a terrace of three independent units, which have been amalgamated and used by one occupier since 2004. The building sits on a self contained, securely gated and fenced site of approximately 1 acre incorporating 41 marked parking spaces and three 30m deep
loading bays.

Accommodation

All measurements are approximate and measured on a gross internal area basis
Ground Floor Warehouse 15,073 sqft 1,400.33 sqm
Ground Floor Offices 2,418 sqft 224.64 sqm
First Floor Offices 2,418 sqft 224.64 sqm
Total 19,909 sqft 1,849.61 sqm
Mezzanine Floor 4,984 sqft 463.03 sqm
Site Area (Low 40% Site Cover) 1 acre 0.40 hectares

Amenities

  • Detached unit with 24/7 access
  • Established industrial location
  • Prominently situated
  • Secure gated and fenced site
  • 41 designated parking spaces
  • 2 electric vehicle charging stations
  • 6m clear eaves rising to 7m at roof apex
  • Up to 3 level access loading doors
  • Loading bays - 30m depths
  • Grade A spec offices with passenger lift
  • Direct access to A40 Western Avenue
  • Excellent local labour pool
  • Walking distance from Alperton & Hanger Lane Underground Stations

Tenancy

The property is let to Ford Retail Ltd for a term of 15 years from 29 September 2020. Please refer to tenancy schedule below for terms.

- £350,000 per annum reflecting £17.58 per sq ft
- A new 15 year full repairing and insuring lease from 29th September 2020
- Lease contracted inside the 1954 Landlord and Tenant Act (part II as amended)
- 5 yearly rent reviews to be based on RPI with a collar and cap of 1% per annum and 3% per annum respectively
- A tenant only option to determine the lease on the 10th anniversary with 12 months' prior written notice
- 6 months' rent free period and following 12 months' at half rent
- Lease will be subject to a photographic schedule of condition

Covenant Profile

Ford Retail Limited owns and operates car dealerships. The Company focuses on new and used vehicles for both individuals and corporate purposes. Ford Retail offers fleet contracts, after sales service and maintenance, and has locations throughout the United Kingdom.

Use: The property benefits from Class B1c, B2 and B8

From an operational perspective, the property is to be utilised by Ford Retail Ltd as a workshop and ancillary MOT falling with class B2 to include the servicing and maintenance functions of its business.

Please refer to brochure for figures.

Planning

The property benefits from planning use classes of B1c, B2 & B8 of the Town and Country Planning (Use Classes) Order 1987.

Gross Annual Income

£350,000 per annum

Net Yield

4%

VAT

The asset has been elected for VAT and the transaction may be treated as a Transfer of Going Concern (TOGC).

Business Rates

Interested parties are advised to contact the London Borough of Brent to obtain this figure (020 8937 1234)

EPC

Rating: C:61

Legal Costs

Each party to bear their own legal costs.

Misrepresentation

Telsar Ltd and its joint agents, give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Telsar Ltd or its joint agents, has any authority to make any representation or warranty whatsoever in relation to this property. All rentals and prices are quoted exclusive of VAT.