Eaton Green Road, London Luton Airport LU2 9HD · Luton Airport. For further information visit ....
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Uncapped RPI Surface Car Park Investment Eaton Green Road, London Luton Airport LU2 9HD
Transcript of Eaton Green Road, London Luton Airport LU2 9HD · Luton Airport. For further information visit ....
Uncapped RPI Surface Car Park Investment
Eaton Green Road,London Luton Airport
LU2 9HD
LocationLondon Luton Airport is located 2.4 km (1.5 miles) east of Luton towncentre and 50 km (30.5 miles) north of London. The airport is 3.2 km (2miles) from Junctions 10 and 10a of the M1 motorway providing accessto London to the south and Milton Keynes and Birmingham to the northwest.
The site is situated at the junction of Eaton Green Road and Vauxhall Waybordering the perimeter of London Luton Airport. The M1 Motorway(Junction 10a) is located within 3.2 km (2 miles) via the A1081. LutonParkway Station is within 2.4 km (1.5 miles) providing regular daily servicesto and from Central London and Luton town centre is within 4 km (2.5miles).
DescriptionA surface car park of approximately 2.18 hectares (5.4 acres) as outlinedin the Title Plan.
Planning HistoryOn 2nd August 1999 planning permission was granted for “constructionof car and lorry park with associated access”. We understand thispermission was implemented.
On 21st June 2000 planning permission was granted for the “Erection ofbuilding within Classes B1, B2 and B8 with ancillary car parking andaccess”. The consent was not implemented and has since lapsed.
On 28th January 2009 outline planning permission was approved by LutonBorough Council for the redevelopment of the land to provide a mix ofuses in four separate areas including a four storey B8 building (storageand distribution), B1 (offices), a 6 storey 250 bedroom hotel with arestaurant, bar, lounge, reception, gym and kitchen plus a 300 headfunction suite and 250 car parking spaces plus B1 (trade counter), B2 andB8 uses. The consent was never formalised as the Section 106 Agreementwas not signed/implemented. However, the proposed redevelopment waswelcomed due to the size of the site and it being largely underused by theprevious occupier, Vauxhall Motors.
Further details regarding the planning history are available to downloadfrom the data room.
London Luton AirportLondon Luton Airport is the United Kingdom’s 5th largest airport and wasused by 9.5 million passengers in 2012.
London Luton Airport is due a large scale expansion in the nearfuture.
Following a detailed review of the airport over several years proposals toextend and develop London Luton Airport to a capacity of 18 millionpassengers by the year 2031 are underway. A planning application wassubmitted to Luton Borough Council in November 2012.
The proposals contain seven main components, as follows;� Dualling of the road from the Holiday Inn roundabout to the Central
Terminal Area to cater for additional traffic flow on the road networkaround the airport that will occur as a result of the proposeddevelopment.
� Improvement to public transport area adjacent to the terminal forbuses and pedestrians.
� Improvements to the terminal building involving internalreorganisation, minor extensions and building works to improvecapacity and make passenger routes through the building as directas possible
� Construction of a new pier and associated link building to the mainterminal providing up to 7,000 sq m (75,000 sq ft) of floor space.
� Provision of a new taxiway to allow the airport to accommodate moreaircraft and increase activity. The proposal would see aircraftmovements increasing from approximately 113,000 in 2013 toapproximately 157,000 by 2031.
� Taxiway extensions and rationalisation of aircraft parking areas withnew stands replacing and improving existing stands
� Construction of a multi storey car park on part of the existing shortterm car park. There is already planning permission to provide anadditional 980 long stay car parking spaces and the new car parkwill include approximately 1,500 multi storey spaces and 1,000surface parking spaces.
The development will maintain London Luton Airport’s position as the keyeconomic driver for Luton. For further information please visitwww.london-luton.co.uk.
London Luton Airport is publicly owned by Luton Borough Council and isoperated, managed and developed by London Luton Airport OperationsLimited (LLAOL) on its behalf until 2031. In August 2013 a consortiumbetween the Spanish infrastructure group Aena Internacianal and AxaPrivate Equity acquired the shares in LLAOL in a transaction reported tobe worth £433m.
Development PotentialIt is considered that the site has a number of potential developmentpossibilities.
SiteA Phase 1 Environmental Assessment has been carried out by WSPGroup concluding a low/medium risk with respect to contaminated landliability. A copy of the report is available to download and is alsoassignable to a purchaser at the cost of the report.
TenureFreehold
TenancyThe property is let to easyJet Airline Company Limited (Co. No.03034606) for a period of 10 years from 6th September 2013 expiring5th September 2023 at a current passing rent of £324,000 per annum.The lease benefits from a rent review at the 5th anniversary in line withthe Retail Price Index (RPI) which is uncapped. A Schedule of Conditionis annexed to the lease, a copy of which is provided in the data room.
The tenant benefits from a rent free period equating to 5 months and 2weeks from commencement of the lease. The vendor will cover thisshortfall by an adjustment on completion.
CovenanteasyJet Airline Company Limited (Co. No. 03034606) has reported thefollowing figures;
easyJet Airline Company Limited is the principal operating subsidiary ofeasyJet Plc, the parent and ultimate controlling company in the group.easyJet Plc is listed on the London Stock Exchange and is a FTSE 100company.
In a trading update on 3rd October 2013 easyJet’s expectation is for apre-tax profit for the twelve months ended 30th September 2013 ofbetween £470 million and £480 million.
The airline was established in 1995 and is the largest airline of the UnitedKingdom, measured by number of passengers carried which last yearwas over 60 million, operating domestic and international scheduledservices on over 600 routes in 32 countries. As of March 2013, easyJetemploys more than 8,000 people based throughout Europe but mainlyin the UK.
easyJet’s head office is a building located on the grounds of LondonLuton Airport.
For further information visit www.easyjet.com.
Rental ValueLondon Luton Airport’s official Long Term car park has an average of240 spaces per acre and the daily rate for parking a car is £7.49.
The current passing rent of the subject opportunity equates £60,000per annum per acre which is £0.68 a day per parking space based on240 spaces per acre.
Therefore, we suggest this highlights a significant discount to car parkingrates in the immediate vicinity.
30th Sept 2012 30th Sept 2011Total Revenue £3,890m £3,484m
Pre-tax Profit £ 166m £ 36m
Shareholders’ Equity £ 397m £ 221m
Value Added TaxThe property has been registered for VAT. It is anticipated the sale willbe treated as a Transfer of a Going Concern (TOGC).
ContactSinger Vielle Dale Henry94-96 Wigmore Street [email protected] W1U 3RF Richard WolfrydTel: 020 7935 7200 [email protected]: 020 7486 8511 Neil Singerwww.singerviellesales.com [email protected]
Vendors Solicitor
Philip Ross & Co34 Queen Anne Street [email protected] W1G 8HETel: 020 7596 8677 [email protected]
ProposalWe are instructed to seek offers in the region of £5,100,000 (FiveMillion, One Hundred Thousand Pounds), subject to contract, for thefreehold interest reflecting a net initial yield of 6.00%.
Investment Considerations1. An opportunity to acquire an uncapped RPI investment comprising a significant parcel of land at London Luton Airport;
2. London Luton Airport is the subject of a major development proposal in the near future;
3. Let to easyJet Airline Company Limited (Shareholders’ Equity £397m);
4. easyJet Airline Company Limited is the principal operating subsidiary of easyJet Plc, a FTSE 100 company
5. New 10 year lease from September 2013;
6. A purchase at the asking price reflects an attractive net initial yield
7. It is considered that the site has a number of future potentialdevelopment possibilities.
Subject to Contract & Exclusive of VAT
Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them.3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.4. All maps are for identification purposes only and should not be relied upon for accuracy.5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.
Under no circumstances shall Singer Vielle be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Property.
Unless otherwise stated, all prices and rents are quoted exclusive of VAT.
These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.
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