All Eyes East: Caxton Works, Canning Town

A unique investment opportunity to acquire a micro, mixed-use estate in the heart of East London.

All Eyes East

CAXTON WORKS CANNING TOWN

Secured to an eclectic mixture of alternative retail and industrial tenants.

CAXTON WORKS

ALL EYES EAST

CANARY WHARF

NORTH GREENWICH

ROYAL DOCKS

EMIRATES AIRLINE

O2 ARENA

THE GOOD HOTEL

THE CRYSTAL (CITY HALL)

GOOD LUCK HOPE

THE SHARD

CAXTON WORKS

THE CITY

LONDON CITY ISLAND

CANNING TOWN JUBILEE LINE (5 MIN WALK)

REALLY LOCAL CINEMA

SILVERTOWN

LONDON CITY AIRPORT

CUSTOM HOUSE DLR & CROSSRAIL (15 MIN WALK)

01

CAXTON WORKS

WELCOME TO CAXTON WORKS. A purpose-built, connected and successful commercial centre for east London.

ALL EYES EAST

INVESTMENT SUMMARY + +

+

+ +

+

+

Caxton Works is an iconic, recentlydeveloped commercial quarter in the heart of Canning Town.

The two-acre site is conveniently linked to London’s travel network via Canning Town Underground Station, Crossrail, bus links and the nearby Emirates Air Line Cable Car. The asset forms part of a wider residential development advanced by industry leaders U+I, Galliard Homes and award-winning architects Studio Egret West.

+

Current tenants include a climbing wall fitness operator, separate chocolate, ice cream and cake manufacturers and traders, co-working studios, a bicycle manufacturer and workshop and a locally-popular nursery.

+

There are only two remaning vacant units. With continued strong levels of occupational demand, this offers a valuable asset management opportunity.

+

Long leasehold of 250 years from December 2013.

The subject property comprises of 13 commercial units at ground and mezzanine levels, which include floor to ceiling windows and an exposed concrete finish. Hoy Street, which runs between the North and South blocks, is pedestrianised, creating a community feel that drives footfall to local businesses.

In total Caxton Works offers 15,471 sq ft at ground floor and 9,598 sq ft at mezzanine level.

Secured to an eclectic mixture of tenants and use classes including retail, leisure and industrial. The current Landlord implemented a strategic leasing plan to ensure a sustainable and quality balance of tenants has been brought to Caxton Works.

The property’s tenancies offer a stepped rental profile, which the Landlord will ‘top-up’ to a proposed sale level of £492,697 p.a.

+

As currently let the property offers an AWULT of approximately 10.3 years to expiry (3.96 years to TOTB).

+

At the full contracted level the passing rents reflect between £15 and £20 psf, offering exceptional value to neighbouring areas such as Shoreditch.

+

We are instructed to seek offers of £5,200,000 subject to contract and exclusive of VAT. Allowing for purchaser’s costs of 6.60%, a purchase at this level would reflect 8.83% NIY and a low capital value per sq ft of £207.43.

02

CAXTON WORKS

ALL EYES EAST

Truly Unique, Fearlessly Independent Designed by award-winning architects Studio Egret West and regeneration specialists U+I, CAXTON WORKS features 25,069 sq ft of prime commercial space.

Already teeming with local entrepreneurs, eateries, community hubs and cultural happenings, CAXTON WORKS captures the energy of east London’s emerging commercial and cultural landscape.

03

CAXTON WORKS

ALL EYES EAST

A Thriving Community

E&S LONDON

04

CAXTON WORKS

ALL EYES EAST

04

CAXTON WORKS

2013 U+I ACQUIRED DERELICT INDUSTRIAL LAND in a forgotten corner of east London for a transformative mixed-use scheme

2018 PIONEERS OF THE NEW EAST U+I have led the transformation of Royal Docks and Canning Town, installing a careful selection of businesses to reflect the identity and intentions of the masterplan

ALL EYES EAST

2013 STUDIO EGRET WEST SELECTED TO MASTERPLAN NEW DEVELOPMENT with artisanal and industrial uses at its core

2019 INSTALLED ALPHABETTI SPAGHETTI by artist Alex Chinneck, one of only three in the country

2013 PLANNING CONSENT GRANTED FOR 336 homes and 13 commercial units in the heart of Canning Town

2021 UP AND RUNNING Caxton Works is a vibrant new centre for London, once again home to makers and artisans

06

CAXTON WORKS

The New Canning Town U+I were pioneers of Canning Town, now a thriving corner of East London. The regeneration specialist bought the old Moss Electrical and Goswell Bakeries sites in 2013 and masterplanned a mixed-use scheme with 13 independent commercial units at its core. At the time, Canning Town was more of a ghost town. Now, building on the success of City Island, the legacy of the 2012 Olympics, and its excellent transport infrastructure, Canning Town is a teeming new neighbourhood with its own unique identity. Since U+I’s buildings gained planning consent in 2013, others have followed. The Hallsville Quarter opposite Canning Town station has brought more homes and commercial space to the area. Brunel Street Works on Silvertown Way has been built with a mix of private, rented and affordable housing. The Greater London Authority is relocating from Tower Bridge to The Crystal in the Royal Docks, the new home of local democracy. It will add to the swelling stream of residents, workers and visitors that come to Canning Town. This special part of East London is growing fast.

THE CRYSTAL (CITY HALL)

EMIRATES AIR LINE

HALLSVILLE QUARTER

REALLY LOCAL GROUP

LONDON CITY ISLAND

BRUNEL STREET WORKS

D MANOR R

CAXTON WORKS

S TRA T FOR D B

K AR

IN

G

ALL EYES EAST

RD

Key Development Areas Tube Line

NEW

E I

O A D NDI

CK

HAM

WA

Y

RD

CA N N IN G TOW N 57 R E S TAURAN T & L OUNGE

SIL VE RT

PE PE N E RO

OW N

HOL I D AY IN N

W AY BUS S TOP

EAST IN D IA

RIV

CANAR Y WHARF

ROY A L VI CTORIA

Plugged in to the Network Caxton Works benefits from the following transport infrastructure:

Journey Times from Custom House, Elizabeth Line:

— 5 minutes walk from Canning Town Station (DLR and Jubilee Line) — 10 minutes walk from Custom House (DLR and Elizabeth Line) — 10 minutes walk to Emirates Air Line Cable Car (10 minutes journey to Greenwich Peninsula) — Pedestrian Link to Excel (15 minutes walk) — 15 minutes on the 474 bus to London City Airport

— Canary Wharf 5 mins — Liverpool Street 8 mins — Farringdon 10 mins — Bond Street 20 mins — Tottenham Court Road 15 mins — Paddington 18 mins — Heathrow Airport 41 mins

ER LE A

E XCEL LO N D O N

CAXTON WORKS CANNING TOWN RIV

ER

TH

AM

ES

P RINCE REGENT

CUS TOM H OUS E

6 mins ST R AT FO R D

W E ST H A M

POPL AR

B L AC K WA L L

15 mins

E M IRATE S A IR L INE

BANK SHADWELL

L I M E H O US E

W E ST F E R RY

E A ST INDIA

ROYA L V I C TO R I A

C USTO M H O US E

CY P RUS

CANNING TO W N TO W E R GAT E WAY

NORTH G REENWICH

E XCE L L OND ON

L OND ON C ITY A IRP ORT

20 mins

12 mins

GREEN PA R K

W E ST M I N ST E R

WAT E R LO O

S O U T H WA R K

LO N D O N BRIDGE

3 mins

BERMONDSEY

C A N A DA WAT E R

B O N D ST SU R R E Y Q UAYS

6 mins

N O RT H GREENWICH

C A N A RY WHARF

5 mins

Jubilee Line

LO N D O N C I T Y A I R P O RT

Docklands Light Railway

THE O2 ARENA

London Overground Elizabeth Line QUEENS RD P EC K H A M

N E W C RO SS GAT E

D E P T FO R D BRIDGE

08

CAXTON WORKS

ALL EYES EAST

Tenancies and Accommodation DESCRIPTION AND TENANT

Caxton Works is configured to offer 13 units that total 25,069 sq ft of high quality, mixed-use accommodation. Of these units, 11 are secured to a strong mix of tenants, with one unit being under offer and just one unit currently vacant. As let, the asset offers a strong Average Weighted unexpired lease term of approximately 10.3 years to expiry and 3.96 years to lease breaks.

FLOOR AREAS

LEASE

UNIT

TENANT

DEPOSIT

GROUND

MEZZANINE TOTAL

INSIDE LTA 54 ACT

LEASE START DATE

LEASE EXPIRY DATE

LEASE BREAKS

NEXT RENT REVIEW

RENT

RENT £PSF

COMMENTS

1

Brass Monkey Ice Cream

£5,000 (Released after 5 years if profits test passed)

564

733

1,297

N

5/11/2020

6/11/2035

4/11/2025 (T) 4/11/2030 (T)

5/11/2025

£19,455

£15

Passing rent £7,782 pa rising to £19,455 pa on 05/11/2023. Vendor to top-up

2

Guevara (t/a PeaCoc)

£3,500

590

692

1,282

N

9/4/2020

9/4/2025

N/A

£26,922

£21

Passing rent £7,692 pa rising to £23,717 pa on 09/04/2023 and £26,922 pa on 09/04/2024.

Vendor to top-up

3

Under Offer

£5,000

495

374

869

N

TBC

10 years

5th Year (T)

5th

£16,000

£18

Initial rent on completion £5,214 pa for three years rising to £14,000 pa in the 4th year and £16,000 pa in the 5th year. Vendor to top-up Mezzanine to be installed by landlord

4

Care In Mind

560

1,087

1,647

N

7/4/2020

6/4/2030

6/4/2025 (T)

7/4/2025

£32,940

£20

Service charge cap £2,883 pa subject to RPI review (being £1.75 per sq ft). Passing rent £9,882 pa rising to £28,823 pa on 07/04/2023 and £32,940 pa on 07/04/2024. Vendor to top-up

5

Loaf.ly Canning Town (Guarantor - Loaf.ly Ltd)

£4,200 (Reduces by 50% and Guarantor released if standard profits test is passed)

700

N

29/7/2020

28/7/2030

28/7/2025 (T)

29/7/2025

£11,900

£17

Passing rent £4,200 pa rising to £9,800 pa on 29/07/2023 and £11,900 pa on 29/07/2024.

Vendor to top-up

6

Rise Climbing Project

£16,000 2,952 (Reduces by 50% if standard profits test is passed)

4,600

N

TBC

10 years

5th Year (T)

5th year

£92,000

£20

Currently in an Agreement for Lease pending completion of landlords works due in November 2021.

Initial rent on completion £27,600 pa with 9 months rent-free rising to £80,500 pa in the 4th year and £92,000 pa in the 5th year. Vendor to top-up

7

The Baklava Company London

£3,000

890

890

N

22/9/2021

21/9/2026

21/9/2023 (T)

£17,800

£20

Passing rent £5,340 pa rising to £17,800 pa on 22/09/2023. Vendor to top-up

8

Bamboo Bicycle Club London

£3,500

904

904

N

7/8/2018

6/8/2028

6/8/2022 (T)

£18,080

£20

Passing rent £15,820 pa rising to £18,080 pa on 07/08/2022. Vendor to top-up

9

Golden Cradle

£16,226.80 (held for 5 years)

2,416

1,293

3,709

N

14/3/2019

13/3/2034

13/3/2026 (T) 13/3/2029 (T)

14/3/2024

£74,180

£20

Service charge cap £11,127 (£3 psf) + RPI. Passing rent £22,254 pa rising to £64,908 pa on 14/08/2022 and £74,180 pa on 14/03/2023. Vendor to top-up

10

Kad Cax Limited (t/a Keyboards & Dreams)

£20,000

1,589

959

2,548

N

1/7/2020

30/6/2035

30/6/2025 (T)

1/7/2025

£50,960

11

Kad Cax Limited (t/a Keyboards & Dreams)

£12,500 deposit held for duration or 50% returned if tenant passess profits test

1,748

800

2,548

N

26/10/2021

30/6/2035

25/10/2026 (T)

26/10/2026

£50,960

£20

Initial rent £15,288 pa with 15 months rent-free rising to £44,590 pa on 26/10/2024 and £50,960 pa on 26/10/2025. Vendor to top-up. Tenant to pay penalty of £14,600 + VAT if break exercised

12

VACANT

1,362

2,012

3,374

£67,480

£20

Vendor to top-up for three years Mezzanine to be installed by landlord

13

E&S London

£14,020

£20

Service charge cap £2,103 (£3 psf) + RPI. Passing rent £4,206 pa rising to £12,268 pa on 10/01/2022 and £14,020 pa on 10/01/2023.

Vendor to top-up

700

£2,000

701

TOTALS

15,471

1,648

701

9,598

25,069

N

10/1/2019

9/1/2024

9/01/2022 (T)

£492,697

Passing rent £15,288 pa rising to £44,590 pa on 01/07/2023 and £50,960 pa on 01/07/2024. Vendor to top-up.

Tenant to pay penalty of £14,600 + VAT if break exercised

09

CAXTON WORKS

R

JUDE

EE

T

STRE

ET

ALL EYES EAST

EL

TI N

ST

U

HOY

N

RE

H

CAXTON WORKS CANNING TOWN

SO

N

G

D

O

N

ST

N

STR

ET

EET

E&S LONDON

SOUTH CAR PARK (38 SPACES)

H

STRE

ET

Fi O re ,s Y S er vic T R in E E g an T ( d m Ped ai nt est en ria an ni ce sed ac b ce etw ss e (5 en .5 7 m am in w 7pm id ) e zo ne )

VACANT

JUDE

NORTH CAR PARK (62 SPACES)

X CA

TO

N

ST

RE

ET

R NO

TH

RES ID EN TIAL CO MMUN AL S P AC E UNDER OFFER

EM ILY ST RE ET (SH AR ED SP AC E)

G EO RG E ST RE ET

CA

XT

ON

ST

RE

ET

NO

R

TH PE

TO

R ST

EE

T

R NO

TH

10

CAXTON WORKS

ALL EYES EAST

Rent Commentary

Data-Room

The original planning consent required that the rents are to be capped at the equivalent of £6 per sq ft for the first three years of the first letting for each unit. Thereafter, terms are by negotiation where rents have been agreed at a stepped rent.

Access to the on-line data-room can be provided upon request.

Planning The original planning consent granted B1 (light industrial/office use) with the exception of Unit 5 that also permitted A3 (restaurant use). Over the course of the marketing campaign some units have obtained planning consent for alternative use classes to include D1, D2 and the new E class.

Offers

Tenure

We are instructed to seek offers of £5,200,000 subject to contract and exclusive of VAT. Allowing for purchaser’s costs of 6.60%, a purchase at this level would reflect 8.83% NIY and a low capital value per sq ft of £207.43.

Long-leasehold for a term of 250 years from 20th December 2013.

Anti-Money Capital Laundering (AML) Allowances Any prospective purchaser is to complete further financial checks in accordance with Anti Money Laundering Regulations.

There are no capital allowances available with this transaction.

11

CAXTON WORKS

ALL EYES EAST

12

Look No Further AGENTS

BOB ASHTON

BRADLEY MAHER

PHONE: +44 (0)207 093 1921 MOB: +44 (0)777 5522 705 E-MAIL: BOB@CHERRYMAN.CO.UK

PHONE: +44 (0)207 016 5348 MOB: +44 (0)782 7686 461 E-MAIL: BRADLEY@PRIMERETAILPROPERTY.COM

COLIN LESLIE PHONE: +44 (0)207 093 1907 MOB: +44 (0)777 5665 714 E-MAIL: COLIN@CHERRYMAN.CO.UK

DEVELOPER

IMPORTANT Whilst the particulars contained in this document are believed to be correct at the time of going to press, their accuracy is not guaranteed and any intending purchaser or tenant must satisfy themselves, by inspection or otherwise, as to the correctness of each of the statements contained in these particulars. The agents for themselves and for the vendors of this property whose agents they are, give notice that: 1. The particulars are produced in good faith, are set out as a guide only and do not constitute part of the contract. 2. No person in the employment of the agents has any authority to make or give any representation or warranty whatsoever in relation to this property.