SEGRO completes in Park Royal

SEGRO has completed the construction of Tudor Gate in Park Royal, with about a third of it already let to Warmup.

 

The whole scheme provides 34,433 sq ft of industrial space. 9,795 sq ft is already let to Warmup Plc, with the remaining 24,638 sq ft built on a speculative basis.

 

Warmup is a manufacturer and supplier of underfloor heating. They are moving in from another SEGRO facility.  The building they are moving to includes their own under-floor heating (electric and hydronic), and solar thermal hot water heating systems as well as SEGRO's photo voltaic cells. The new building is adjacent to Warmup's existing 10,870 sq ft premises.

 

The separate 24,638 sq ft facility, developed speculatively, is suitable for various uses, including urban distribution, food production and self-storage. Importantly it marks SEGRO's return to speculative development in Park Royal, one of its core London markets.

 

Both industrial facilities have a BREEAM "Excellent" and EPC "A" ratings. They also offer fuel cost savings advantages, such as discounted electricity generated from photo voltaic cells, with a potential saving of up to £1,000 per annum, and a fuel income benefit, courtesy of a feed-in tariff, of up to £1,400 per annum in the speculative facility.

 

Other environmental benefits include rainwater harvesting, air-source heat pumps providing air-conditioning and solar thermal hot water, resulting in 25% CO2 savings overall.

 

Andrew Stimpson, Charmain and Chief Executive of Warmup, said: "This building will enable us to showcase our electric and hydronic underfloor heating systems at their best."

 

Alan Holland, SEGRO's Business Unit Director for Greater London, said: "We have now started to actively market the facility that has been developed on a speculative basis and, given the shortage of well located, high wuality industrial accommodation in the area, as well as the strong sustainable features we have incorporated, this is already generating interest from potential customers."

 

JLL, dohertybaines and CBRE have been appointed to market the speculative development.

 

For further information, please contact Michael Haines mhaines@dohertybaines.com

EGi Most Active Agent 2012 - Results

We are delighted to announce our db Industrial Team have been voted the 3rd most active agent in London.

 

http://www.estatesgazette.com/deals-competition/2012/#London

 

For further information please contact:

 

David O'Donovan.

dodonovan@dohertybaines.com



LondonMetric pays £60.5m for Primark distribution hub

LondonMetric Property Plc ("LondonMetric"), the UK REIT recently created through the merger of London & Stanford Property Plc and Metric Property Investments plc, announces the acquisition of the Primark Distribution Unit, Thrapston from Moorfield Real Estate Fund II for £60.5 million. The acquisition will be funded from existing resources.

 

The scheme is Primark's central distribution centre for the UK and comprises 785,000 sq ft of space, strategically located for national distribution close to major road networks, including the M1. The unit is fully let to Primark Stores Limited until October 2032 at a rental of £3.9 million per annum. The lease benefits from annual fixed uplifts of 1.5% and upward only open market rent reviews every five years. Adjoining occupiers include Paperchase, Morrisons and DSV Logistics.

 

The purchase price reflects a net initial yield after purchasers' costs of 6.4% and will show an initial cash return of 11.5% per annum and a geared total return of over 15% per annum. These returns will grow annually as the built-in uplifts are triggered.

 

Following this acquisition, the LondonMetric distribution portfolio comprises 13 assets with a combined value of circa £245 million and a weighted average unexpired lease term of 13.0 years (12.8 years to first break). This represents 22% of the enlarged LondonMetric portfolio.

 

Andrew Jones, Chief Executive of LondonMetric, commented:

"The retail distribution sector is continuing to benefit from strong occupier interest as retailers' multichannel strategies continue to evolve. We regard this as a key area for growth within our core portfolio and aim to capitalise on this dynamic further by leveraging our deep occupier relationships to secure more opportunities.

"Primark is one of the UK's most successful retailers and the attractive lease terms reflect the demand/supply tensions within this sector. The investment offers excellent cash returns and exposure to prime real estate, let for nearly 20 years to a fantastic covenant, with guaranteed annual rental increases."

 

Cushman & Wakefield advised LondonMetric. Dohertybaines advised Moorfield Real Estate Fund II.

 

For further information, contact Stuart Atkinson satkinson@dohertybaines.com

SEGRO welcomes Media Lighting Specialist, Solar Lights Limited, to Victoria Industrial Estate

SEGRO, are pleased to announce that photographic and film lighting rental supplier Solalights Ltd is taking Unit 13 at Victoria Industrial Estate in London.

Solalights Ltd, which operates throughout the UK, is a leading supplier of lighting solutions for professional still and motion photography. The company is taking the 4,143 sq ft unit at Victoria Industrial Estate ona a five year lease. The new space will be used for the storage of specialist lighting equipment.

Mike Parker, Managing Director said: "Victoria Industrial Estate is a high quality location from which to drive our business expansion. The estate's range of units and flexible leasing terms, alongside its prominent location and high calibre occupiers make it an ideal place for us to continue to grow."

Ken Butcher of SEGRO commented: "We are delighted to welcome Solalights Ltd to Victoria Industrial Estate and there is now only one unit on this estate which has yet to be leased. As well as Solalights Ltd, we had the priviledge of welcoming a number of new customers to estate last year including River Island, Urban Cow, Red Creative and E.motion Capture Studio Ltd, to name just a few."

Unit 6 Trade City Business Park, Uxbridge UB8 2GG

dohertybaines have successfully completed the sale of unit 6 Trade City Business Park, Uxbridge on behalf of Kier Property.

The unit was sold to GVE, a creative, promotional merchandise supplier, and leaves only units 5 and 11 currently available.

For more information please contact Paul Londra or visit the website: www.trade-city.co.uk

Permitted development rights for change of use from commercial to residential

DCLG has sent an extremely important letter to Chiefs of Planning across the UK today setting out its proposal to introduce permitted development rights from B1(a) use to C3.

This is part of a package of measures to support economic growth announced by the Government in September 2012 and will come into force in Spring 2013.

The new rights will initially be time-limited for a period of three years, and consideration will be given towards the end of that period as to whether they should be extended indefinitely.

It is stated that "It should be recognised that this measure is seen as an important contribution to assisting the economic well-being of the country".

What will these permitted development rights allow?

They will permit change of use from B1(a) offices to C3 residential. This is subject to a prior approval process covering:

• Significant transport and highway impacts
• Development in safety hazard zones, areas of high flood risk and land contamination

The permitted development rights will only cover change of use: any associaetd physical development which currently requires a planning application will continue to need one.

Consequences

dohertybaines will be able to advice on a more straightforward change of the use of the many buildings in B1 (a) use. The detail of refurbs, layouts and additional development etc will still require consent, but this will now be a far more simple process given that the principle is consented.

The Government is asking for Local Authorities to opt out, and those that can demonstrate the overwhelming significance of commercial use in their borough of parts of their borough will do so, e.g. don't expect the most of the City and other parts of Central London to be included.

We can advice clients who have offices or those looking for redevelopment opportunities that we can deliver them consent for change of use. We can also advise on the suitability of the location and the mix and type of product that will be required to make schemes viable, plus CIL and other contributions, and so on.

For further information, please contact John Fosbraey.

Unit 10 Trade City Business Park

Unit 10 Trade City Business Park, Uxbridge was recently sold to Kudos Music. The mid terrace 3,627 sq ft unit, developed by Kier Property earlier in 2012, and built to a high specification completed earlier this month.

At the moment, out of 13 units, 7 have been sold with a further 4 now under offer.

Please contact Paul Londra for further information.

Double Success for dohertybaines

dohertybaines have successfully let unit 7 Fairway Drive, Green Lane, Heathrow TW4 to Inviron; the installation, maintenance and management of infrastructure firm.  The unit was let on a 6 year lease and was approximately 11,305 sq ft. It was also fully refurbished prior to marketing.

dohertybaines also let unit 15 Airlinks, which was approximately 2,952 sq ft and also fully refurbished prior to marketing. The premises were let to Multilight, on a 5 year lease.

For more information on the above, please contact Paul Londra.

dohertybaines sells The Matrix Building in Aldgate, London EC3 on behalf of Administrators

Asia-based hotel group Dorsett Hospitality International has bought the Matrix Building, London EC3 for £14.05m from Martin Ellis and Les Ross, partners in Grant Thornton UK LLP and joint administrators of No 9 Aldgate Limited.

dohertybaines advised the joint administrators on the sale of the building which is located adjacent to Aldgate underground station. It comprises 47,720 sq ft of offices and is set to be converted into a hotel by the purchasers. The property would become the group's second hotel in London, joining the Dorsett Londin in Shepherd's Bush, which is under construction and expected to be launched in the first quarter of 2014.

John Connolly, Head of UK Developmet for Dorsett Hospitality International which is headquartered in Hong Kong said: "We are delighted to have completed our second acquisition which demonstrates our commitment to the London Hotel market. We are in a unique position by using our internal financial resources to acquire, develop and operate under a single entity. We are actively pursuing further hotel and residential opportunities in Central London."

dohertybaines partner Rob Nelson who advised the joint administrators on the sale of the freehold and long leasehold interests said: "The price achieved reflected the strength of the location and the redevelopment potential which Dorsett Hospitality International has recognised."

2 Ventura Park, Radlett

Dohertybaines has let Unit 2 Ventura Park, Radlett on a new 10 year lease.  The 40,942 sq ft unit was fully refurbished which included a new roof.

Please contact Paul Londra for more information.