TESCO.COM CROYDON
33 Factory Lane CR0 3RL
Prime London Distribution Investment
INVESTMENT SUMMARY
- Croydon is a key commercial centre with
easy access to Central London (9 miles) and
the M25 (6 miles).
- Well located close to the A23, Purley Way.
- Modern distribution unit totalling 172,680 sq ft
(16,042 sq m), with 17,929 sq ft (1,666 sq m)
of additional loading canopies.
- 360 degree circulation with 34 loading doors
along three elevations.
- Site area 8.8 acres - 44% site cover.
- The property is currently used as a dot.com
warehouse and includes a dark store.
-Freehold.
- Let to Tesco Stores Limited until 23rd October
2020, with a rent review in October 2015.
- The passing rent is £1,227,000 per annum,
which equates to only £6.70 per sq ft.
- Offers invited in excess of £19,000,000
(Nineteen Million Pounds) which reflects a
net initial yield of 6.1%, allowing for standard
purchaser’s costs of 5.8%.
WEST END
CITY
To Central London
A23
A236 Roman Way
Factory Way
CROYDON
2 million sq ft redevelopment
Wandle Park Tramlink
A23
To M25 - 6 Miles
East Croydon
West Croydon
A236 Roman Way
LOCATION
Croydon is an important industrial/
distribution location due to its
proximity to Central London and the
national motorway network. 21 million
people can be reached within a 2.25
hour drivetime; 48.2 million within a 4.5
hour drivetime.
The A23 provides a direct link with Central
London 9 miles to the north and junction
7 of the M25, 6 miles to the south. The
M23 connects through to Gatwick Airport
18 miles to the south. London Heathrow
lies 23 miles to the west.
The Ports of Tilbury, Dover, London
Gateway, Southampton and Felixstowe
are all within 2.25 hours drivetime.
Rail connections are excellent with
frequent services from East Croydon
station to London Bridge, Victoria and
Gatwick Airport. The fastest journey time
to London is approximately 15 minutes,
with trains leaving every few minutes.
Croydon is also connected to
Wimbledon, New Addington and
Beckenham by the TramLink, which
was completed in 2002 at a cost of
approximately £200m. Wandle Park
TramLink station lies 500m to the west.
CROYDON
REGENER ATION
The London Borough of Croydon
(LBC) has a clearly stated ambition to
regenerate the town centre and build
upon the existing commercial centre.
LBC’s 2020 Vision seeks to promote
Croydon as a hub for business, living
and culture within South London and the
context of the South East generally.
Hammerson and Westfield have
recently entered into a 50/50 joint
venture called The Croydon Partnership
to transform the Whitgift and Centrale
Shopping Centres. The £1bn mixeduse scheme will include retail, leisure
and residential units with the potential
for hotels/offices and will further
confirm Croydon’s dominance as the
main centre serving South London.
Kings Cross
Reading,
Swindon &
Bristol
East Croydon railway station is currently
the subject of a significant upgrade and
work has commenced on the adjoining
Ruskin Square Development, designed
by Foster & Partners.
M4
Victoria
Blackfriars
Heathrow
Airport
Clapham
Junction
Canada
Water
Waterloo
M25
DLR
London
Bridge
A316
M3
For more information, please see
www.thecroydonpartnership.
com and www.croydon.gov.uk/
planningandregeneration
Woking,
Basingstoke &
Southampton
A23
J12
M25
Wimbledon
CRO
CR
ROYD
RO
DO
D
DON
ON
O
N
J10
In addition, there are a number of
higher value uses within close proximity
of the subject property including a
Sainsbury’s Supermarket (immediately
to the south); the Purley Way retail
warehouse centre and Barratt’s New
South Quarter Scheme.
The southern side of Purley Way
comprises retail warehousing fronting
the main road where occupiers include
John Lewis (Home), Currys, PC World
and Next Home amongst others, with
various industrial estates behind. 500m
to the west lies the iconic IKEA store.
Canary
Wharf
Beckenham
Junction
A3
SITUATION
The property is located just off the
main A23 Purley Way, a key
commercial area. Industrial occupiers
include Amazon, Royal Mail, WH Smith,
Kuehne & Nagel and DPD.
St Pancras
New
Addington
A235
Guilford &
Portsmouth
Biggin Hill
Airport
A23
Eurostar to
Paris, Brussels
& Lille
Maidstone
A22
J7/8
Gatwick
Airport
Tram
SAT NAV: CRO 3RL
Train / Underground
London Overground
A236 Roman Way
Factory Lane
To Central London
WANDLE PARK
Croydon Energy Power
New South Quarter Scheme
A23 Purley Way
Progress Way Business Park
Commerce Trade Park
To M25 - 6 Miles
DESCRIPTION
The property comprises a modern distribution
unit built in 1989 of steel portal frame construction
with profile metal clad elevations.
The specification includes:
• 12 dock levellers and 2 docks under
separate canopy
• 20 level access doors
• Covered loading bay
• 8m eaves
• Security gate house with barrier controlled
access
• Separate vehicle maintenance unit
• 10% office content
• 360 degree circulation
• Parking for 210 cars
• Parking for 120 vans
The property is currently fitted out as a dot.com
warehouse, including a dark store, which forms
part of Tesco’s E-fulfilment distribution network
and serves the South London market. It is a
24/7 operation.
ACCOMMODATION
The gross internal floor areas can be summarised
as follows:
Warehouse
Ancillary Office
Total
Loading Canopy
sq ft
sq m
156,071
14,499.5
16,609
1,543
172,680
16,042.5
17,929
1,665.6
There is a Plowman and Craven measured
survey dated May 2012, which can be assigned
to the Purchaser.
Fac
tory
32
Lan
e
Tra
nsfe
rS
ta ti
on
34
Wa
ste
SITE
Commercial
Fa
cto
The site extends to approximately
8.8 acres (3.55 hectares), reflecting a site
cover of only 44%.
TENURE
Freehold.
Electricity Generating Station
Ground
Sub Staion
TENANCY
ho
ar e
oW
sc
Te
The property is let to Tesco Stores
Limited for a term of 15 years expiring
23rd October 2020, with no breaks.
The current rent passing is £1,187,800
per annum, which equates to £6.70 per
sq ft. This includes 25% applied to the
loading canopy totalling 17,929 sq ft,
which was agreed at the last review.
There is a further review on the 24th
October 2015. In addition, there is
rent payable relating to the additional
car parking which currently equates to
£39,200 per annum.
e
us
The total rent currently receivable from
the property is £1,227,000 per annum.
Park
go
Ar
s
tra
Ex
Park
Park
Park
ry
COVENANT INFORMATION
Tesco Stores Limited is a subsidiary of Tesco Plc which is listed on the London Stock
Exchange. Tesco Stores Limited (company no. 519500) has a Dun and Bradstreet rating of
5A2 representing a lower than average risk of business failure based on a tangible net worth of
£3.113bn. The latest full year accounts can be summarised as follows:
Sales Turnover
Pre-Tax Profit
Tangible Net Worth
Year Ending
23/02/2013
£000’s
Year Ending
Feb 2012
£000’s
Year Ending
Feb 2011
£000’s
42,662,000
41,981,000
40,149,000
921,000
2,126,000
2,243,000
3,113,000
6,894,000
6,954,000
VAT
The property is elected for VAT purposes and it is anticipated that the sale will be treated as a
transfer of a going concern.
EPC
PROPOSAL
The property has an EPAR of D80 – further details available
upon request.
Offers invited in excess of £19,000,000 (Nineteen Million Pounds) which reflects a net initial yield of 6.1%, allowing for purchaser’s costs
of 5.8%.
To arrange an inspection, please contact:
ADDITIONAL INFORMATION
A dataroom will be available to interested parties which will
include title information, lease/associated documentation,
Measured Survey, Building / Environmental Survey dated
March 2012 prepared by GVA, all of which can be assigned
to the Purchaser.
Ed Cornwell
Edward Jackson
Edward Price
020-7484 8126
edward.cornwell@bnpparibas.com
020-7338 4032
edward.jackson@bnpparibas.com
020-7338 4184
edward.price@bnpparibas.com
Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars
as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property
Management UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are
believed to be correct at the time of compilation but may be subject to subsequent amendment. November 2014.