PRIME SOUTH EAST INDUSTRIAL DISTRIBUTION INVESTMENTHermes Parcelnet, 15 Mills Road, Quarry Wood Industrial Estate, Aylesford, ME20 7XB
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB2
· Premier distribution facility located on the established Quarry Wood industrial estate in aylesford.
· excellent transport communications to the national motorway network, london and the sea ports of south east england. Junction 5 of the m20 is only 1.2 miles (1.9 km) from the property.
· freehold.
· modern industrial unit providing 48,376 sqft (4,494.3 sqm) of warehouse accommodation on a site to 2.64 acres (1.068 hectares); site coverage of 35%.
· let to the undoubted covenant of Hermes Parcelnet Ltd (d&B rating: 5 a1), until 25th march 2022, providing a further 4.4 years of secure income.
· total passing rent of £290,000 per annum, reflecting a low passing rent of £5.99 per sqft providing excellent prospects for rental growth.
· offers are invited in excess of £4,950,000 subject to contract and exclusive of Vat. a purchase at this level would reflect a Net Initial Yield of 5.50%, after allowing for purchaser’s costs of 6.59%. This reflects a capital value figure of £102 per sqft.
inVestment summary
GLASGOW EDINBURGH
NEWCASTLE UPON-TYNE
MIDDLESBOROUGH
RUGBY
OXFORD
READING
NORTHAMPTON
HULL
MANCHESTER
LIVERPOOL
BIRMINGHAMCOVENTRY
NOTTINGHAM
PETERBOROUGH
CAMBRIDGE
SHEFFIELD
CARDIFF
BRISTOL
LONDON
PORTSMOUTH
DONCASTER
A1(M)
M6
M62
M6
M1
M18
M180
A1
A1
A14M1
A14
M11
M42
M42
M5
M50
M4
A34M3
M40
M25
M25
M62
M54
M3
M5
M23
M20AYLESFORD
M2
LEEDS
PORT OF DOVER
FELIXSTOWE
SOUTHAMPTON
PORT OF TILBURY
PORT OF FOLKESTONE
M40
4.5 hours3 hours2 hours
HGV DRIVE TIMES
PORT OFTILBURY31 MILES42 MINS
LONDON35 MILES1HR 10MINS
DOVER47 MILES53 MINS
CHANNELTUNNEL37 MILES56 MINSFOLKESTONE
40 MILES44 MINS
64 miles, 1h 5m
16 miles, 18m
11 miles, 18m
9 miles, 17m
5 miles, 8m
2 miles, 5m
M1
M25
M2
A2
M26
M20
76 miles, 1h 21m
58 miles, 1h 8m
56 miles, 57m
35 miles, 38m
LUTON
STANSTEAD
HEATHROW
GATWICK
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB3
aylesford is located 4.0 miles (6.4 km) north west of the Kent county town of maidstone. collectively they form a major commercial centre within the south east of england, which is home to a significant labour catchment.
location
aylesford is located approximately 35 miles (56.3 km) south east of central london and 30 miles (48 km) west of canterbury.
The town benefits from excellent road communications being adjacent to Junction 5 of the m20 motorway. the m20 motorway links with the national motorway network via the m25, which is accessed by either Junction 3 or 5, 15 miles to the west.
the Port of dover, which is europe’s busiest ferry port, handling £119 billion of trade or 17% of the uK’s trade in goods, is located 44 miles (71 km) to the south east. in 2016 the Port handled 13 million passengers, 2.4 million
tourist vehicles, 2.5 million freight vehicles and supported 22,000 jobs. the ports of folkstone and tilbury are also within a 45 minute drive.
aylesford train station is only 1.1 miles away and offers services into central london with a fastest journey time of 53 minutes. Ebsfleet international station is approximately 25 minutes drive and provides 4 trains an hour to london st Pancras, with a journey time of approximately 18 minutes.
the international airports of london Gatwick, london Heathrow, london stanstead and london city are all within 1.5 hour’s drive time.
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB4
situation
the property occupies a prominent position fronting mills road in the centre of Quarry Wood industrial estate. the site is bound to the west by Wealden Way and the north by lake road. there are two points of access into the property, one for staff and visitors accessed off mills road and delivery access for lorries and vans onto the service via lake road.
Given the unprecedented rise in online retail sales, the property offers an ideal location to provide crucial last mile distribution services and flexible delivery options to a large catchment of business and residential customers.
the property lies within close proximity to the vibrant south aylesford retail Park home to several national retailers including Homebase, marks & spencer, Halfords, curry’s Pc World, Harvey’s and a newly built nando’s unit.
HERMESPARCELNET
BURNT ASH ROAD
MIL
LS R
OA
D
WOOD CLOSE
MILLS ROAD
WE
ALD
EN
WA
Y
LAK
E RO
AD
LAKE ROAD
MILLS ROAD
A20 LONDON ROAD
BE
AD
LES
TO
YO
TA
AR
DE
NM
AID
STO
NE
BEA
DLE
SV
AU
XH
ALL
SKO
DA
AU
TO
BEADLES
VOLKSW
AGEN
GU
Y S
ALM
ON
LAN
D R
OV
ER
GUY SALMONJAGUAR
ADVENTUREKIDZ
DULUX
DECORATOR
CENTRE
SAINSBURY’SSUPERMARKET
UPPER MILLS ROAD
LOO
MIS
CREO RETAIL MARKETING
CSM: ICON WAREHOUSE
PLUMBING & HEATINGWAREHOUSE
LEAY
1-7 LAKE RD
IND. EST.
PLUMB
CENTER
8-13 LAKE RD
IND. EST.
14-18 LAKE RD
IND. EST.
SOUTH
AYLESFORD
RETAILPARK
WATERLOOAIR PRODUCTS
FLEET EFFICIENY
ACT COMMUNICATIONS
McDONALD’S
EU
RO
WA
YT
RA
DE
PA
RK
EU
RO
WA
YT
RA
DE
PA
RK
KMH
BR
ITAN
NIA
BU
SINESS P
AR
K
PALMER
AND
HARVEY
CLEANSING
SERVICE GROUP
RBS
HE
RM
ITA
GE
LA
NE
BURNT ASH TRADE PARK
BURNT ASH TRADE PARK
MILLS ROADINDUSTRIAL
ESTATE
5
M20
Holt Hill
Quarry WoodIndustrial Estate
Aylesford
London
AshfordA20
Ditton
A20
AYLESFORD
HERMESPARCELNET
UP
PE
R MILLS RD
BURNT ASH RD
HE
RM
ITAG
E LA
NE
B2
24
6
LAKE ROAD
KILN BARN ROAD
HO
LTWOO
D A
VEN
UE
WO
OD
LAN
D
S ROAD
MILLS ROAD
HA
LL R
OA
D
LONDON RD
LONDON ROAD
TEA
PO
T L
AN
E
STATION ROAD
STATION ROADRIVER MEDWAY
WOOD CL
WEALDENWAY
not to scale - for indicative purposes only
MILLS ROAD
MILLS ROAD
MILLS ROAD
WEALDEN WAY
LAK
E R
OA
D
A20
A20
M20M20 JUNCTION 5
HERMESPARCELNET
A
BC
E F
J
G HI
K
N
PO
Q
R
D
LM
A
F
K
B
G
L
SOUTH AYLESFORDRETAIL PARK
PALMER &HARVEY
C
H
M
D
I
N
E
J
O
PRIORY PARK
P
Q
RLOOMIS
BURNT ASHTRADE PARK
MILLS ROADINDUSTRIAL ESTATE
5 Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB6
the building comprises a single storey industrial warehouse of portal frame construction fronted by two storeys of standard office accommodation. The outer walls are clad with blockwork lined brick at ground level and lined profile metal sheeting at first floor level.
At first floor level the rear element of the office accommodation has been opened up to the warehouse to provide additional mezzanine accommodation. The front section of the first floor offices are not currently used by the tenant.
the building has 6 loading doors to the northern elevation accessed directly off the exterior service yard.
The property benefits from a highly secure 3 metre perimeter fence.
descriPtion
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB7
the property has been measured in accordance with the rics Property measurement (1st edition) and extends to 48,376 sqft (4,494.3 sqm).
The current internal configuration provides 34% office content. The rear part of the first floor office accommodation has been altered to open out to the warehouse to provide additional storage. Part of the front section of the first floor offices are currently unused by the tenant.
accommodation
the property is held freehold.
tenure
the site extends to 2.64 acres (1.068 hectares) which represents a low built site coverage of 35%.
service yard average depth from access of lake road is 35m, average yard width is 86m providing excellent access, turning and lorry parking facilities.
FLOOR SQM SQFT
Ground floor Warehouse 2,971.6 31,986
Ground Floor Office 757.0 8,148
First Floor Office 765.7 8,242
Total 4,494.3 48,376
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB8
the property is let to Hermes Parcelnet ltd by way of a full repairing & insuring lease for a period of 10 years from 26th march 2012, expiring 25th march 2022; therefore, providing a further 4.4 years of secure income.
the current passing rent of £290,000 per annum equates to a low overall rate of £5.99 per sqft.
the rent review dated 26th march 2017 remains outstanding.
tenancy coVenant information
Hermes Parcelnet limited (d&B rating: 5a1) is the uK’s leading consumer delivery specialist handling more than 245 million parcels each year. Hermes provides a range of flexible and affordable delivery options to home, work, neighbour, safe place or Parcelshop that are convenient for the consumer and fit within their increasingly busy lifestyles. Within the uK, Hermes operates a network of over 10,000 lifestyle couriers and over 4,500 Parcelshops.
YEAR END TURNOVER PRE-TAX PROFiT NET WORTH
28th february 2016 £510,369,000 £33,727,000 £74,132,000
28th february 2015 £442,569,000 £36,357,000 £65,777,000
28th february 2014 £382,313,000 £33,552,000 £61,450,000
notice has been served on the tenant at a rent of £337,284 per annum, which equates to £6.75 per sqft plus a rate of 50% on the canopied yard area.
the rent review provisions within the lease assume a hypothetical term of 10 years with a tenant’s break option in year 5.
further information can be provided upon request.
Hermes works with a wide range of leading high street, catalogue and online retailers in the uK including next directory, asos, tesco, John lewis, debenhams and arcadia Group. Hermes uK is owned by the German group Hermes logistik Gruppe deutschland (HlGd) who is the largest independent home delivery specialist for business-to-consumer (B2c) and consumer-to-consumer (c2c) sectors in Germany.
Hermes Parcelnet in aylesford
Hermes took occupation of the property in 2012 to serve the residential community of aylesford, maidstone and the wider Kent district (1.54m residents); the unit is operated on a 24/7 basis and has the capacity to process up to 42,000 packages over 24 hours.
Hermes Parcelnet Ltd (company reg: 03900782)
delta-simons carried out a Phase i environmental assessment of the site in June 2017. the report concluded that potential land contamination issues and associated environmental liabilities represent a ‘Low‘ risk in its current use.
enVironmental
The site is not located in an area at risk of flooding.
a copy of the full report is provided on the data site supporting the sale.
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB9
PROPERTY DATE STATUS PRiCE NiY SiZE TENANT WAULT AVG RENT CAP VAL (sqft) (Exp/Br) (per sqft) (per sqft)
unit a, tongwell street, milton Keynes oct-17 under offer £15,400,000 3.90% 103,644 Westcoast ltd 8.70/3.70 £6.19 £148.60
unit 4, Golden Business Park, leyton oct-17 under offer c.£4,800,000 c.3.75% 21,413 fedex uK ltd 5.20 £8.93 £224.16
unit K60, lister road, Basingstoke oct-17 completed £9,515,000 5.18% 58,504 Bunzl uK ltd 9.50/4.50 £8.98 £162.64
unit 18, mitcham industrial estate aug-17 completed £4,250,000 5.19% 29,109 Go carting for fun ltd 19.00/9.00 £8.00 £146.00
dawson road, milton Keynes Jun-17 completed £10,410,000 5.40% 108,018 yokokama H.P.t ltd 3.75 £5.55 £96.37
unit a, link 20, Bellingham Way, aylesford Jun-17 completed £2,475,000 5.50% 24,343 csc computer sciences ltd 9.00/4.00 £7.02 £101.67
aylesford is an established south-east distribution location situated midway between central london and the uK’s main coastal transport nodes of dover and the channel tunnel.
With approximately 80,000 residents within a 15-minute drive time and access to the m20 motorway in under 1.5 miles from the property, Quarry Wood is ideally positioned to serve both the local residents and the wider Kent population (1.54m people).
distribution accommodation is currently in limited supply, this combined with increasing demand from internet based commerce, “just in time” and “last mile” deliveries has sought to put pressure on rents within the surrounding area, as demonstrated by the recent lettings at invicta riverside and access Park in aylesford.
recent deals highlighting the strength in this sector include:
occuPational marKet commentary
inVestment marKet commentary
Access PArk access Park, north of the m20 between junctions 4 & 5, provides 85,871 sqft across three units. unit 2B has been let to Bunzl by way of a 10 year term in september 2017 at a rent of £7.75 per sqft. units 2a and 2c are also under offer to distributors, both at rents which equate to £7.75 per sqft.
INvIctA rIversIde invicta riverside, also north of the m20 between junctions 4 & 5, provides 189,673 sqft across three units. dfs agreed to take unit 3, 59,346 sqft for an unbroken term of 15 years in march 2017. the agreed rent equates to £7.25 per sqft. unit 1 & 2 were let late in Q4 2015 and Q1 2016, unit 1 extends to 89,307 sqft and was let to amazon for a 5 year term at a rent of £6.75 per sqft; unit 2 extends to 41,020 sqft and was let to tts ltd for 6 years term certain at a rent of £7.25 per sqft.
‘sectIoN B’ MILLs roAd opposite Hermes Parcelnet on mills road, Quarry Wood, ‘section B’ mills road was let to Horizon international cargo ltd in July 2017 by way of a 10-year lease with a break clause in year 5. the refurbished unit comprises 65,992 sqft, has one point of access, restricted circulation and a site cover of c. 50%. The rent agreed reflects a headline rate of £6.75 per sqft which after the 9 month rent free and 3 month break penalty provides a net effective rate of £6.41 per sqft.
iMPORTANT iNFORMATiON: 1. no description or information given by clay street ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. neither clay street ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.these particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.the photographs show only certain parts of the property at the time they were taken. any areas measurements or distances given are approximate only. 4. any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy themselves by inspection or otherwise as to the correctness of any information given.
designed and produced by diablo: www.diablodesign.co.uk november 2017
Hermes Parcelnet, 15 mills road, Quarry Wood industrial estate, aylesford, me20 7XB10
ePc
A copy of the Energy Performance Certificate (ePc) is available upon request.
Vat
the property is elected for Vat and therefore Vat will be payable on the purchase price. it is anticipated that the sale will be treated as a transfer of a Going concern.
ProPosal
We are inviting offers in excess of £4,950,000, subject to contract and exclusive of Vat.
A purchase at this level would reflect a Net Initial Yield of 5.50% allowing for purchaser’s costs of 6.59%.
This reflects a capital value figure of £102 per sqft.
dAtArooM: Gowling WlG are hosting the secure dataroom to support the sale. access details can be provided by clay street upon request.
sUBJect to coNtrAct
should you require further information or would like to arrange a viewing, please contact:
chris dickin: [email protected]
rob Atkins: [email protected]
George Freeman: [email protected]
Telephone: 0207 935 2831
furtHer information
Hermes Parcelnet, Mills Road forms part of the Quarry Wood Portfolio.
The Quarry Wood Portfolio comprises 2 multi let industrial estates and 2 single let industrial warehouse assets.
The portfolio is available as a whole or in individual parts.
LOOMiS, LAKE ROADHERMES PARCELNET, MiLLS ROADBURNT ASH TRADE PARK MiLLS ROAD iNDUSTRiAL ESTATE
Burnt asH trade ParK
mills road industrial estate
Hermes Parcelnet, mills road
loomis, laKe road
QUArrY Wood PortFoLIo
£687,694 76,397
£370,350 57,016
£290,00048,376
£81,7509,427
£1,430,525191,216
5.50%7.55
5.75%3.67
5.50%4.43
6.50%6.18
5.60%5.80
£153
£106
£102
£126
£125
£11,720,000
£6,040,000
£4,950,000
£1,190,000
£23,900,000
ProPertyrent
(per annum)area (sqft) niy
Wault (to exp.) caP Val PricinG