The Story So Far

WATERSIDE COURT WATERSIDE DRIVE LANGLEY BUSINESS PARK
LANGLEY BERKSHIRE

The Property  This investment is a little unusual for us as it is drier than the type of property we usually look for. It is two stand alone office buildings constructed in 1989 and set in a landscaped courtyard. Both buildings are air conditioned with full access raised floors. One of the major attractions of these buildings is the exceptional car parking provision of 106 spaces, a ratio of 1 space per 17 sqm/185 sqft. Building One totals 1,090 sqm/11,700 sqft and Building Two is 1,735 sqm/7,900 sqft.

Building One was let to HSBC Asset Finance (UK) Limited and has now been assigned to Osram, a subsidiary of Siemens of Germany. Building Two is let to Chubb Group Properties Limited, who have a current net worth of about £390 million, ultimately owned by United Technologies Corporation of America, manufacturers of Otis Elevators, Pratt and Whitney Engines and Sikorsky Helicopters.

Why Buy?  Two stand alone modern office buildings, very well let, in a location only 3 miles from the M4 motorway and 5 miles from Heathrow Airport. We anticipated growth in rents as a result of expansion at Heathrow.

Why Sell?  We updated our research into the prospects for growth at Heathrow, in particular as a result of Terminal 5. This new research showed that current passenger figures for LHR are 69.2 million passengers per annum, forecast to grow to 87 mppa by 2015/2016. This assumes that the 280,000 air traffic movements (ATM) cap is reached in 2008/09 and will not be increased. It also assumes that the A380 Airbus, the worldıs largest ever commercial passenger aircraft and capable of carrying up to 650 passengers, is in service.

The A380 needs new aircraft stands. BAA currently plan 18 A380 stands out of a total of 180 stands by 2011. Only 10% of the total.

We came to the conclusion that the potential for growth in demand for office space around the Airport is limited by the constraints on further development. We believe that the ATM cap will be maintained. We do not believe that the proposed third runway will gain consent. The fact that only 10% of stands at the Airport will be capable of servicing the A380 further limits the potential for growth. We therefore took the decision to sell, in Summer 2006, whilst the demand for high quality income from good covenants was exceptionally strong. We sold to a Pension Fund at a net initial yield of 6.5%.  

Please click on the images below to enlarge.

Langley   Langley
     
Building 1   Building 2
     
Langley   Langley
     
Building 1 Interior   Building 2 Interior

Contact Us

10 Knaresborough Place
Kensington
London SW5 0TG

Ivor A French FRICS
T 020 7244 4202
M 078 9999 1111
Email Ivor

David Coleman MRICS
T 020 7244 4214
M 079 5696 6677
Email David