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BUILDING 510 LONDON BIGGIN HILL AIRPORT T N 1 6 3 B N
HIGH SPECIFICATION HANGAR 6 MINUTES FROM CENTRAL LONDON
BUILDING 510 / BIGGIN HILL
• Biggin Hill Airport is strategically located within
the M25, 14 miles east of Central London
• 6 minutes from Central London by helicopter
• Ranked within Top 15 Airports in Europe for
Business
• 18% market share of London’s private jet travel
• 750 destinations in 75 countries
• Dedicated UK Port of Entry with on-site Border
Agency
• Purpose-built high specification airport hangar
and associated flight support centre totalling
73,356 sq ft with direct airside access
• Site area 3.27 acres
• Long Leasehold until Jan 2120, at a current
rent passing of £228,099 pa
• Let to Biggin Hill Airport Ltd until 6th June 2026
subject to a mutual break on / after 6th June 2021,
at a rent of £728,099 pa
• Net rent currently receivable £500,000 pa
• Sub under-let to Bombardier and Signature
• Opportunity to simplify structure in June 2021
and increase the net rent receivable / secure
vacant possession
INVESTMENT HIGHLIGHTS
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BUILDING 510 / BIGGIN HILL
LOCATION
A232
To A21/M25 J4
A233
A233
To Biggin Hill Town Centre
London Biggin HillAirport Terminal
LONDON BIGGIN HILL AIRPORT
LONDON BIGGIN HILL AIRPORT SITE PROPOSAL
BOMBARDIER
BUILDING 510
&
HEATHROW
CITY
Sevenoaks
LONDONBIGGIN HILL
AIRPORT
Croydon
Guildford
GATWICK
CENTRALLONDON
Bromley South
Orpington
A40A13
A2
A20
A233A24
A3
A3
A1
A23
A23
A22 A21
A22
A232A21
A205
A406 A406A12A11
M3
M4
4
M23
M25
M20CENTRAL LONDON IS 6 MINUTES BY HELICOPTER
LOCATION
The Property is located at London Biggin Hill Airport which is approximately 17 miles to the south east of Central London, 16 miles to the south west of Dartford, 9 miles to the south east of Croydon and 8 miles south of Bromley.
The town is located on the A233 which connects through to Junction 4 of the M25, 8 miles to the south east. Biggin Hill is one of only three Airports located within the M25.
Central London is 6 minutes by helicopter. Other major nearby transport links include the Channel Tunnel, linking Folkestone / Ashford with the Ports at London Gateway and Dover.
SITUATION
The Airport is accessed via the A233 which connects with the A232 / A21 through to Junction 4 of the M25. Property itself is situated immediately to the south of the runway with direct airside access.
TRANSPORT & TRAVELO
akla
nds
Lane Sal
tbox
Hill
BUILDING510
Biggin HillHeritage Hangar
West Kent Golf Club
Castle AirHelicopter Charter
Biggin Hill Airport Hotel Site
CentrelineAircraft Rental Service
London Biggin HillAirport Terminal
London Executive AviationAircraft Rental Service
Sovereign Business JetsAirline
A233
LONDON BIGGIN HILL AIRPORT
To A21 / M25 J4
To Biggen Hill Town Centre
To Bromley South / Orpington
A2
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MA
I N R
OA
D
A 2 3 3 M A I N R O A D
BUILDING 510 / BIGGIN HILL
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LONDON BIGGIN HILL AIRPORT
500 ACRES
70+ BUSINESSES
18% MARKET SHARE OF LONDON’S PRIVATE JET TRAVEL
TOP 15 RANKED WITHIN EUROPE’S TOP 15 BUSINESS AIRPORTS
£60M+ PRIVATE INVESTMENT
6 MINS HELICOPTER TRANSFER INTO CENTRAL LONDON
LONDON BIGGIN HILL HAS EMERGED AS A LEADING
BUSINESS IN THE SOUTH EAST AND IS ONE OF THE MOST
IMPORTANT PIONEERS OF THE BUSINESS AVIATION SECTOR IN THE UK… IT IS PROVING
A VERY SOUND INVESTMENT FOR THOSE CHOOSING TO
BASE THERE
SADIQ KHAN
• London Biggin Hill Airport (LBHA) totals c.500 acres with three terminals and a runway extending to 1,820m, with the capacity to accommodate a Boeing 737 / Airbus 320. It is home to 70+ businesses including Bombardier, Signature Flight Support, Textron Aviation, Castle Air Charter, Zenith Aviation and Formula One
• The airport has 18% market share of London’s private jet travel with flights to 750 destinations in over 70 countries. It is ranked within Europe’s Top 15 business airports. Services include VIP handling, hangarage, support and maintenance for a range of business jets
• The airport provides a gateway for business passengers to Central London with competitive opening hours (06:30 – 23:00); all weather landing aids; Border Agency on site; 6-minute helicopter transfer into Central London
• Alongside £60m+ of private investment in new hangars / infrastructure, funding has recently been approved for the London Aerospace and Technology College to open in 2020 which will provide a national base for the development / employment of newly qualified aero-engineers. Planning permission has also been granted for a boutique hotel adjacent to Building 510 together with a new flying school
BUILDING 510 / BIGGIN HILL
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BUILDING 510
Building 510 comprises a modern purpose-built maintenance, repair and overhaul (MRO) hanger / ancillary accommodation constructed in 2011 together with a fixed base operations facility (FBO) constructed in 2012, totalling approximately 73,356 sq ft.
We understand that the overall initial build cost was in the region of £17.25m. The MRO benefits from the following specification:
• Steel portal frame construction
• 10m minimum eaves height
• Clear 89m span with six aluminium power sliding doors providing clear openings of 59m wide x 9.6m high
• 5mm resin finish floor with integral DPM
• Two overhead cranes with 2-tonne lifting capacity which span the entire floorplate and can be remotely controlled
• A ‘sky-walk’ glazed bridgeway joins the FBO and offices at either end of the facility
• Ratio of external / internal lighting provides the most effective share of light to support under / above maintenance
• Recessed floor boxes with single / triple phase power and compressed air connections
• 24/7 security, CCTV monitoring and gatehouse facility
• 500kva standby generator with ability to provide 5-days’ continuous power
• Dedicated airside apron extending to approximately 50m, providing direct airstrip access
• Complies with all industry standards for the maintenance / repair of private jets
• Grade A ancillary office accommodation benefitting from air-conditioning, raised floors and suspended ceilings
The FBO facility is fitted out to a top specification providing passengers with a high end arrival / departure experience and also includes a fully operational Border Control.
Externally, there is 70 spaces for cars in a secure site with barrier controlled access via a 24-hour manned gatehouse.
BUILDING 510 / BIGGIN HILL
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BUILDING 510 / BIGGIN HILL
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A MODERN AIRCRAFT HANGER TOTALLING APPROXIMATELY 73,356 SQ FT
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following Gross Internal Areas:
Demise sq m sq ft
Maintenance, Repair and Overhaul Hangar 3,168 34,100
Ancillary Offices 1,579 16,996
Fixed Base Operations Facility 2,068 22,260
Total 6,815 73,356
SITE
The site has an area of approximately 3.27 acres (1.32 hectares)
Not to scale / Indicative only.
BUILDING 510
BUILDING 510 / BIGGIN HILL
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TENURE & TENANCY
TENURE
The Property is held long leasehold from 1st January 2010 for a term of 100 years, ie unexpired term of approximately 91 years.
The ground rent is subject to 5 yearly rent reviews linked to RPI currently set at £228,099 per annum. The next review is in January 2020.
TENANCY
The Property is sub-let in its entirety to Biggin Hill Airport Ltd under an FRI lease (subject to a Schedule of Condition) for a term of 10 years expiring 6th June 2026 with a mutual break option on / after 6th June 2021, subject to 18 months’ prior notice. This tenancy is excluded from the Landlord and Tenant 1954 Act. The current passing rent is set at £703,099 pa; the Vendor will top up the rent to the fixed increase of £728,099 pa on 7th June 2019. There is a RPI uplift on 7th June 2021.
The property has been further sub-let in its entirety to Bombardier and Signature.
SUPERIOR LEASE Lease dated May 1994 for 125 years made between:
(1) The Mayor and Burgesses of the London Borough of Bromley and 2) Biggin Hill Airport Ltd (BHAL)
Superior Landlord Bromley Council
Superior Tenant BHAL
FIRST HEAD LEASE (INTEREST BEING SOLD)
18th March 2010 for 100 years between Biggin Hill Airport Ltd and Biggin Hill Hangar Company Ltd (BHHCL)
BHAL BHHCL
HEAD LEASE
7th June 2016 for 10 years between Biggin Hill Hangar Company Ltd and Biggin Hill Airport Ltd
BHHCL BHAL
OCCUPATIONAL LEASES
10 years from June 2016 Between Short Brothers Plc / Signature Flight Support and Biggin Hill Airport Ltd
Landlord
BHAL
Tenant
Short Brothers Plc /Signature Flight Support
TENANCY SCHEDULE
DEMISE TENANT SQ FT LEASE START
LEASE EXPIRY/BREAK
RENT REVIEW
PASSING RENT (PA)
COMMENTS
Building 510 Biggin Hill Airport Ltd 73,356 07/06/201606/06/2026
Mutual break on / after 06/06/2021
07/06/2021£728,099 (£9.93 psf)
Stepped rent increase to £728,099 in June 2019 to be topped up by the Vendor (current rent passing £703,099 pa). Schedule of Condition. Outside L&T 1954 Act.
RPI uplift. Break notice requires minimum 18 months notice.
The net rent currently receivable is £500,000 pa assuming rent topped up to the fixed increase receivable from 7th June 2019.
SUB-TENANCY SCHEDULE
DEMISE TENANT SQ FT LEASE START
LEASE EXPIRY/ EXPIRY
RENT REVIEW
PASSING RENT (PA)
COMMENTS
MRO Hangar Short Brothers Plc(subsidiary of Bombardier Inc) 51,096 07/06/2016 31/05/2026
TBO - 06/06/2020 07/06/2021 £700,000 (£13.70 psf)
Fixed rent increase to £725,000 pa on 7th June 2019. Annual RPI uplifts from 07/06/2020 (subject to 3% cap). Tenant only Break notice minimum 12 months. Schedule of condition. Outside 1954 Act. L/L to pay rates.
FBO facility / Offices Signature Flight Support 22,260 13/06/2016 31/05/2026TBO - on/after 13/06/2021
01/01/202101/01/2025
£450,000 (£20.22 psf)
RPI review. Two sub-licences. Tenant only Break notice minimum 12 months. Schedule of condition. Outside 1954 Act. L/L to pay rates.
TOTAL £1,150,000
Should a purchaser choose to exercise the 2021 break option in the main sub-lease, the Signature / Bombardier leases would also be determined. New leases could then be created to form direct relationships with Signature / Bombardier. Alternatively, vacant possession could be secured in June 2021 for re-letting / owner-occupation.
BUILDING 510 / BIGGIN HILL
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BIGGIN HILL AIRPORT LTD
Biggin Hill Airport Ltd provides specialist aviation and related services for the Business and General Aviation sector at Biggin Hill Airport. The company has a D&B rating of 3A1 and the latest financial information can be summarised as follows:
2018 2017 2016
Turnover £18,349,099 £14,736,046 £11,889,116
Pre-tax profit / losses £1,469,712 £893,384 £956,034
Net Worth £7,296,138 £6,116,935 £5,386,035
COVENANT INFORMATION
SIGNATURE FLIGHT SUPPORT
Signature Flight Support is one of the largest global Fixed Base Operations companies operating in over 200 locations worldwide delivering essential support services for business / private aviation including refuelling, hangarage, maintenance, repair / overhaul as well as a high-end passenger arrivals / departures experience. They have a D&B rating of 4A1 – see www.signatureflight.com
2017 2016
Turnover £24,176,201 £20,543,880
Pre-tax profit / losses £2,997,068 £2,789,043
Net Worth £23,870,678 £18,672,745OUR INVESTMENT IN BIGGIN HILL HAS BEEN A TREMENDOUS SUCCESS, AFFORDING US THE OPPORTUNITY TO GROW OUR
PRESENCE IN THE MOST INFLUENTIAL AND PRODUCTIVE BUSINESS AVIATION LOCATION IN THE UK, LONDON & SOUTH EAST
BOMBARDIER
BOMBARDIER (SHORT BROTHERS)
Short Brothers Plc is an aerospace company based in Belfast. Founded in 1908, it was the first company to make production aircraft and in 1989 was bought by Bombardier. Bombardier is the world’s leading manufacturer of both planes and trains headquartered in Montreal, Canada.
In 2016, Bombardier doubled its capacity at London Biggin Hill Airport by moving into Building 510 which accommodates over 100 technicians. The facility services aircraft, including scheduled / unscheduled maintenance, modifications and installations for Bombardier Learjet, Challenger and Global aircraft. This is Bombardier’s primary maintenance operation for UK / Europe having recently relocated from Germany.
Short Brothers is a subsidiary of Bombardier Inc. Bombardier Inc is a global leader in the transportation industry with over 68,000 employees worldwide across 28 countries. For the year ending December 2018, global revenues totalled $16.2 billion – see www.bombardier.com
BUILDING 510 / BIGGIN HILL
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BOMBARDIER
FURTHER INFO
ASSET MANAGEMENT
• Simplify / re-gear the existing sub-lease structure
• Exercise the mutual break option in June 2021 within the Biggin Hill Airport Ltd lease to create a direct relationship with Bombardier / Signature Flight Support
• Increase the net rental income currently receivable from the property
• Secure vacant possession and drive rental growth upon reletting
• Secure vacant possession for own occupation in 2021
RATING ASSESSMENT
The Property has a rateable value of £595,000. The current uniform business rates multiplier is 49.3p.
VAT
The Property is elected for VAT purposes and it is anticipated that the sale can be treated as a Transfer of a Going concern.
DATAROOM
There is a dataroom containing relevant legal / lease documentation - access available upon request.
Note: The asset is held in a Jersey based SPV.
EPC
D(80) and D(87). Certificate available upon request.
PROPOSAL
WE ARE INSTRUCTED TO INVITE OFFERS FOR THE LONG
LEASEHOLD INTEREST IN BUILDING 510.
BUILDING 510 / BIGGIN HILL
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CONTACT
For further information or to arrange an inspection, please contact:
Edward Cornwell
T 020 7152 5103M 07801 259 470E [email protected]
Brett Huxley
T 020 7152 5123M 07747 770 100E [email protected]
David Smeeton
T 0121 710 4657M 07785 253 059E [email protected]
Russell Nimmo
T 020 7152 5859M 07826 947276E [email protected]
Notices Relating to Property Misrepresentation and Property Misrepresentation Act. Cushman & Wakefield for themselves and for the Vendors of this property whose Agents they are, give notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures & fittings referred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Cushman & Wakefield has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of publication is May 2018.
Made by Tayler Reid. 020 7355 2500. taylerreid.london
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BUILDING 510 / BIGGIN HILL