High Street, Harlington UB3 5DQ
Offers in excess of £6,000,000
Harlington is situated to the west of Central London within the London Borough of Hillingdon, the second largest of London’s 32 boroughs with a total population of approximately 300,000 people. The town is positioned just minutes from the M4, M25 and M40 interchanges, providing excellent access to Central London and the rest of the UK motorway network.
Harlington is a premier London industrial location providing direct access to Central London and the rest of the UK via the national motorway network. The property benefits from excellent road communications being situated adjacent to J4 of the M4 motorway and just 4 miles from J15 of the M25 motorway. Junction 1 of the M40 is also easily accessible 7 miles north of the property.
Heathrow Airport is situated 1 mile south of the property and is reachable within minutes by train from Hayes and Harlington Station. Heathrow Airport is Europe’s busiest airport by passenger traffic with 95% of the global economy within reach of a direct flight. Heathrow Airport has ambitious plans to double its cargo capacity to become Europe’s biggest cargo airport.
Hayes and Harlington Station is situated just 1.6 miles north of the property and provides regular and direct services to Heathrow Airport (5 minutes), London Paddington (16 minutes), and Reading (29 minutes). The station is also set to benefit from Crossrail which will open in 2022 and provide direct access to Central London.
The asset comprises a number of industrial, storage and retail units of varying sizes with two vehicle access points to the site, one from Harlington High Street and the other from Cranford Lane. The current occupiers of the site include building services, dog groomers, storage units, a veterinary practice and digital printers.
The existing site comprises c 35,660 sq.ft. of Use Classes E, B2 and B8.
The site provides an area of approximately 2.3 acres (0.93 hectares).
The property is part-let on short-term agreements outside the Landlord and Tenant Act 1954, all of which expire on or before March 2022. The current passing rent is circa £175,000 per annum.
Further details and a full tenancy schedule can be provided upon request.
The property is subject to an agreement dated 19 April 1996 with Orange Personal Communications Services Limited, the area is marked in orange on the plan. The agreement allows the operator to install, operate, maintain, repair and renew the PCN equipment on the site to connect into the operator’s PCN system. The rent is £2,500 per annum. The intended scheme has been designed to leave the telecoms mast in situ and maintain access as required.
Planning & Development Potential
The site is situated within the Heathrow Opportunity Area which the London Plan identifies as having the capacity to accommodate a minimum of 9,000 homes and 12,000 jobs. The London Plan recognizes the Hayes West Drayton corridor as offering a range of redevelopment opportunities including small business parks, logistics and mixed uses.
The London Plan would identify the site as a Non-Designated Industrial Site, owing to its existing and operational light industrial use.
The site is located within the Greenbelt, although circa 80% of the site coverage is with existing buildings and hardstanding and is therefore considered to be previously developed land. A formal pre-application process has been undertaken based on an industrial scheme, although the site is suitable for a variety of uses subject to planning permission, including residential, care home, open storage and other business uses.
The adjoining 2.4 acre field, as outlined in blue, which is within the greenbelt but without existing buildings, is also controlled by the vendor and may be available by way of separate negotiation.
The property is located within the London Borough of Hillingdon.
Industrial Development Potential
A pre-application planning process has been undertaken for the demolition of the existing of industrial, storage and distribution units and the erection of 46,600 sq.ft. (4,330 sq.m.) 7 self-contained units for flexible Class E(g), B2 and B8 use.
Copies of the submitted plans and Local Authority response is available within the dataroom.
Industrial Occupational Overview
London has seen very high levels of rental growth in recent times; we expect this to continue in the coming years. The fundamental trend of low supply and high occupier demand is extremely pronounced; as a result rental growth continues to be prevalent which is feeding the investment markets.
In addition, there are structural trends underpinning the prospects for further rental growth, such as the shortage of developable land (particularly in Heathrow), lack of availability and increased occupier demand for logistics space. COVID-19 has only acted as an accelerator for the increasing market share of online sales and occupier demand.
Locations such as Heathrow, with availability of labour, easy access to the wider UK population and strong motorway accessibility offer the greatest prospects of rental growth.
There is an overwhelming weight of capital targeting industrial & logistics space, particularly last-mile distribution. Prime logistics yields have been compressing due to robust sector fundamentals and rising investor interest, supported by the extremely low-yield environment.
Due to the severe lack of supply across the London industrial markets, developers are quoting and achieving inflated rental tones without the evidence to support them. This move by developers, as evidenced by SEGRO, is providing support for extreme levels of rental growth across London.
Last Mile Logistics
The ‘urban logistics’ phenomenon is driven by the demand from households to have parcels delivered to their door in the quickest possible time. This has resulted in logistics operators changing their delivery mindset, rather than servicing this demand from one large regional distribution shed, they now have additional smaller hubs closer to the end consumer. This is becoming commonly known as ‘last-mile logistics’.
The most expensive part of the supply chain is transport costs, which has encouraged distributors to opt for more central warehouses where rent is a small proportion of the transport cost it replaces – which is driving rents and occupational demand in locations such as Heathrow.
The purchaser will need to satisfy the vendors, CBRE’s and Kingsbury’s AML Policies.
Further information including planning documents and technical documents are available in the dataroom using access code ‘Elms’.
The vendor is seeking offers in excess of £6,000,000 exclusive of VAT and subject to contract for the freehold interest.
A purchase at this level reflects a low capital value of £162 per sq.ft. on the existing commercial floor area and £2,600,000 per acre.
Disclaimer - Kingsbury on its own behalf and on behalf of the Owner / Landlord of this property whose agent Kingsbury is, gives notice that this document does not constitute any form of contract for sale or lease. Statements should not be relied upon, and interested parties are advised to satisfy themselves as to the correctness of each statement. Kingsbury is the trading name of Kingsbury Investment & Development Consultants Ltd registered in England No: 06869268.
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- The sale of The Elms, Harlington provides a rare re-development opportunity, located adjacent to London Heathrow Airport and Hayes, Bath Road
- Located 1 mile from Junction 4 of the M4 motorway and 4 miles from Junction 15 of the M25 motorway
- Total size area of 2.3 Ac / 0.93 Ha.
- The site currently comprises c. 35,660 sq.ft. of light industrial and storage accommodation with 24/7 unrestricted access.
- The site benefits from dual access from both Harlington High Street and Cranford Lane
- A formal pre-application process has been undertaken on the site for a scheme comprising 46,600 sq.ft. of multi-let industrial, with Use Class E, B2, and B8 with associated car parking and service areas
- Further development potential for residential / care home or other uses, subject to planning permission
- The site has the potential to achieve industrial ERVs in excess of £20 per sq.ft. The Heathrow area is forecast to achieve high levels of rental growth
- The existing short term tenancies provide an opportunity to gain full planning permission whilst receiving income, with vacant possession achievable in March 2022
- The vendor is seeking offers in excess of £6,000,000 exclusive of VAT and subject to contract for the freehold interest. A purchase at this level reflects a low capital value of £162 per sq.ft. on the existing commercial floor area and £2,600,000 per acre
To discuss this opportunity further, please contact Ross Kemp at Kingsbury on 07793 746 270 or Chris Incledon at Kingsbury on 07787 130 719 or Jack Stacey at CBRE on 07718 046 033 or Matt Laing Williams at CBRE on 07568 301 851