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)
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CAXTON WORKS
WELCOME TO CAXTON WORKS. A purpose-built, connected and successful commercial centre for east London.
ALL EYES EAST
INVESTMENT SUMMARY + +
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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.
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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.
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There are only two remaning vacant units. With continued strong levels of occupational demand, this offers a valuable asset management opportunity.
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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.
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As currently let the property offers an AWULT of approximately 10.3 years to expiry (3.96 years to TOTB).
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At the full contracted level the passing rents reflect between £15 and £20 psf, offering exceptional value to neighbouring areas such as Shoreditch.
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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.
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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.
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CAXTON WORKS
ALL EYES EAST
A Thriving Community
E&S LONDON
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CAXTON WORKS
ALL EYES EAST
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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
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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
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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
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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
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CAXTON WORKS
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ALL EYES EAST
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CAXTON WORKS CANNING TOWN
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E&S LONDON
SOUTH CAR PARK (38 SPACES)
H
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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
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ST
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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
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ON
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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.
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CAXTON WORKS
ALL EYES EAST
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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.