TRADE CITY. Kier Property.

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1 TRADE CITY Kier Property

2 INTRODUCTION KIER PROPERTY INTRODUCTION INTRODUCTION The Property division is an integral part of the Kier Group and we are keen to utilise Group resources to continue to grow. The Kier Property division undertakes investment, development and asset management across a broad spectrum of property assets. Kier has built up an enviable track record of performance within the industrial market. Kier Property s success is driven by determination not to overcomplicate the development process, and deliver against key milestones for occupiers and investors alike. Within the traditional industrial estate market, Kier has created the Trade City brand comprising high quality industrial developments in prime locations to suit owner occupier business needs. So far, Kier has successfully delivered over 2 million sq ft of largely speculative Trade City units equating to a development value in excess of 120 million. Kier Group s financial strength underlies this performance and is making continued investments across the property sector to expand its current activities. We are also seeking portfolios in need of regeneration, corporate acquisitions and short-term income where there is an angle. 02 Bracknell East l Bracknell West l Bicester l Chelmsford l Chingford l Edmonton l Enfield l Exeter l Feltham l Frimley l Hayes l Hemel

3 KIER PROPERTY CONTENTS Current Sites 01 Uxbridge Phase I 4 02 Uxbridge Phase II 6 03 Sydenham 8 04 Sunbury Hayes Bracknell, Easthampstead Road Feltham 16 Coming Soon 08 Frimley Oxford Bracknell, Western Road 22 Hempstead l Loughton l Oxford l Romford l Sandy l Swindon l Sunbury l Sydenham l Thurrock l Uxbridge l Waltham Point l Weybridge 03

4 KIER PROPERTY TRADE CITY 01_ uxbridge PHASE I Kier Park Uxbridge is a former gas works site, with planning consent for 200,000 sq ft. Kier purchased the site from National Grid and due to its historic nature, Kier undertook immediate works to remediate the heavily contaminated site. Phase I was granted planning permission to develop 13 units ranging from 2,045 sq ft - 35,458 sq ft of light industrial warehouses. This speculative scheme was immediately anchored with two pre-lets off plan to AGS Fourwinds taking 35,458 sq ft and the Driving Standards Agency. Phase I is complete and of the remaining 11 units, 25 percent were sold to freehold owner occupiers before practical completion and another two units sold only three months after completion. CLIENT: LOCATION: Project Role: Value: AGS / Driving Standards Agency / Speculative Cowley Mill Road, Uxbridge Developer / Contractor 13.2 million 04

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6 KIER PROPERTY TRADE CITY 02_ uxbridge PHASE II With Phase I complete Kier developed Phase II, another speculative Trade City development of 121,000 sq ft over 11 units. This development has been undertaken with our joint venture partner DTZ Investment Management on a 50:50 basis. The completed speculative scheme delivered a range of unit sizes to accommodate different occupier requirements, as well as being completed to a high standard and on programme. The light industrial and warehouse units are available to let (B1, B2 & B3) ranging in size from 4,000-24,000 sq ft. All units comprise of fully fitted first floor office space, the largest unit was built with its own secure yard and units in excess of 15,000 sq ft include air conditioning. Partner: LOCATION: DTZ Investment Management Cowley Mill Road, Uxbridge Project Role: Value: Developer / Contractor 18.5 million 06

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8 KIER PROPERTY TRADE CITY 03_ Sydenham The wider Sydenham site, totalling 13 acres, was purchased competitively from National Grid. Kier has since developed a 120,000 sq ft bulky goods retail park on the majority of the site. The remaining 2.5 was developed speculatively for a high quality Trade City scheme, comprising 75,000 sq ft of trade counter industrial space. Sydenham has a large catchment area which has a limited supply of new, good quality industrial units and therefore this scheme caters to both local and national trade operators. Phase I of the development was constructed as part of the retail scheme and totals 19,000 sq ft over four units. These units were let to occupiers such as Halfords Autocentres and the Wolseley Group (trading as the Plumb Centre). Phase II comprised the remaining 56,000 sq ft of space and 30 percent of the scheme was pre-let to a Mercedes Benz servicing centre. The remaining eight units were constructed with the absence of mezzanine space to give future occupiers flexibility for their trading requirements. Also as part of the development, a number of electrical car charging points were provided to encourage sustainable travel. This Trade City scheme, along with the attraction of the new Bell Green Retail Park and adjacent Sainsbury s superstore, helps to create a successful new destination for trade operators. CLIENT: LOCATION: Project Role: Value: Speculative Bell Green, Sydenham Developer 10 million 08

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10 KIER PROPERTY TRADE CITY 04_ Sunbury Kier acquired the 1.4 acre site for office use with a number of tenants on short-term licences. Once Kier achieved vacant possession, planning was achieved for a 36,500 sq ft industrial scheme. The nine unit scheme was developed speculatively and two units were pre-sold to local businesses prior to practical completion. The development has provided much needed, high quality industrial space for a number of local occupiers and has helped increase the reputation, as a destination for local businesses. All but one of the units were sold within 12 months of practical completion (beating initial estimates) and setting a benchmark for freehold sales locally. The high specification provides quality electric roller shutter doors, high quality first floor office accommodation and renewable energy via PV panels. As of September 2014, Kier completed disposal of the final unit on the scheme. CLIENT: LOCATION: Project Role: Value: Speculative Brooklands Close, Sunbury-on-Thames Developer 5 million 10

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12 KIER PROPERTY TRADE CITY 05_ HAYES Kier was selected ahead of stern competition as preferred developer by the London Borough of Hounslow Council to regenerate the historic Western International Market. Having worked closely with the Tenants Association of the market and the Council, Kier obtained planning consent for this well known site at Junction 3 of the M4. The flagship project included a new 136,000 sq ft produce hall and a 38,000 sq ft flower hall with associated maintenance and entry buildings. Working alongside the London Borough of Hounslow, Kier has delivered new state-of-the-art facilities to replace the obsolete existing premises. Kier has also developed the former market. Plot 1 was undertaken speculatively on a 50:50 basis with clients of DTZ Investment Management creating a speculative 56,000 sq ft Trade City development consisting of 9 terraced units. Plot 2 was pre-let to Costco for a 136,000 sq ft membership warehouse club. The development opened for trade in the summer of 2014 and was pre-funded. A site sale of Plot 3 was completed to Virtus for a 180,000 sq ft data centre. PARTNER: LOCATION: Project Role: Value: DTZ Investment Management Hayes Road, Hayes Developer 10 million 12

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14 KIER PROPERTY TRADE CITY 06_ Bracknell, Easthampstead road The 2.4 acre site was purchased from Valad and comprised of a vacant office block, which was previously let to 3M. The site was purchased with a view to developing a speculative industrial scheme on the back of the strong local demand for industrial accommodation. Post demolition, Travis Perkins signed an agreement for lease subject to planning, taking five of the seven units on the scheme totalling 38,000 sq ft, (83 percent of the whole scheme). With the remaining two units being let to third parties. The scheme was forward funded by Aberdeen Asset Management and the development has provided Bracknell with a much needed trade counter destination and regenerated a previously vacant site. The scheme achieved a Very Good BREEAM rating and includes PV panels to provide sustainable energy. partner: CLIENT: LOCATION: Project Role: Value: Aberdeen Asset Management Travis Perkins Easthampstead Rd, Bracknell, RG12 1NJ Developer 6 million 14

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16 KIER PROPERTY TRADE CITY 07_ feltham Kier exchanged a sale and purchase agreement in an off-market deal, to purchase this five acre cleared site to deliver a GeoPost pre-let. The agreement for lease was exchanged with GeoPost in June 2013 for a 41,000 sq ft pre-let distribution centre on a 20 year term which, when at full operation, will handle up to 4,000 parcels an hour. Prior to completing the site purchase, Kier secured forward funding on a developer s lease basis from AXA s UK long lease property fund. As part of the forward funding, the sales agreement was varied to transfer the site directly from the existing owner to AXA, thus achieving a SDLT saving. CLIENT: LOCATION: Project Role: Value: PARTNER: GeoPost Forest Road, Feltham Developer 9.6 million AXA 16

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18 1K KIER PROPERTY TRADE CITY Industrial Estate ALBANY P 08_ frimley 1F 1F Dolphin House Tank Tank Kier acquired this 13 acre site as part of a portfolio of properties bought from Laing. cycles The first phase of the development completed with a 90,000 sq ft office scheme developed on behalf of BAE who signed a 25-year lease as a pre-let. Tank In June 2013 Kier sold 2.5 acres of land to Frimley Park Hospital NHS Foundation Trust to facilitate their expanding hospital. MS Drain Tanks Kier also obtained planning permission for 165,000 sq ft of industrial employment space for the remaining land in The hybrid planning permission of B1c, B2 and B8 industrial uses, reflect the local market trends. Drain Balancing Pond The small units, developed on a speculative basis will attract smaller local occupiers. The remainder of the site was retained for build to suit opportunities, targeting regional and national occupiers, offering both freehold and leasehold tenures in order to be as flexible as possible. Gantry A 331 Drain cycles CLIENT: Speculative A331 LOCATION: Lyon Way, Frimley FB Project Role: Developer Value: 15 million 18

19 Drain 37 1 LYON WAY Absolute El Sub Sta El Sub Sta cycles refuse extg s/s to refuse existing pond STATION ROAD Drain 7 27 Currently under construction STATION ROAD 14 THE C cycles BURRELL RO A Surgery Surg 11 1

20 6 KIER PROPERTY TRADE CITY 09_ OXFORD Kier Property in joint venture with Investec purchased the 2.1 acre freehold interest at Sandy Lane West, Oxford from Rego Property in August 2014, under the Kier Trade City brand. The intention is to develop a speculative c.45,000 sq ft Trade City scheme, comprising of nine Trade City units of varying sizes between 3,000 sq ft to 6,500 sq ft. A freehold scheme is being progressed and will be the first new build development for a number of years. 9 8 This site is perfect for trade counter occupiers, as the site benefits from an existing planning consent which was granted in October 2013 for a 35,000 sq ft three unit development. Following an amended planning application, and planning approval, start on site is scheduled to be in early 2015 with practical completion forecasted before PARTNER: LOCATION: Project Role: Value: Investec (Kier Trade City LLP) Sandy Lane West, Oxford, Oxfordshire Developer 6 million 20

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22 KIER PROPERTY TRADE CITY 10_ BRACKNELL western road Kier Property acquired the 2.8 acre freehold interest at 251 Western Road, Bracknell in April 2014 from M&G Investments. The intention is to develop a speculative industrial and trade counter scheme for c.55,000 sq ft catering to both the LH and FH markets. The site benefits from a previous planning permission which includes four trade counter units at the front of the site. Kier intends to implement these front four units, whilst a new planning application on the remainder of the site was submitted in August Following achieving planning permission a start on site is scheduled to begin early 2015 with practical completion forecast for Q3, At present, three units out of the 12 in total are under offer and there remains strong occupier demand across the rest of the site PARTNER: LOCATION: Project Role: Value: Investec (Kier Trade City LLP) Western Road, Bracknell RG12 1RE Developer 8.5 million 22

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24 CONTACT_ Kier Property Ltd 6 Cavendish Place London W1G 9NB t w kier.co.uk w trade-city.co.uk