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Accommodation
The property has been measured by BKR Floor Plans and currently provides the following floor areas:
| Accommodation | Sq Ft | Sq M |
| Ground Floor Warehouse | 25,102 | 2,331.98 |
| Ground Floor Ancillary | 1,354 | 125.79 |
| First Floor | 3,129 | 290.68 |
| Total Gross Internal Floor Area | 29,585 | 2,748.45 |
It should be noted that the area agreed between the freeholder and the tenant at the last rent review, and used for the recent lease renewal, is 28,323 sq ft / 2,631.29 sq m .
The areas listed in the schedule above show the current configuration after tenant’s alterations.
A set of floor plans and measurements is available to download.
Rates
The Rateable Value is £165,000. The Business Rate multiplier is 54.6 pence per pound resulting in a rates liability for a tenant of £90,090.
Site
The site area extends to approximately 1.36 acres / 0.55 hectares, providing a site cover in the order of 42%.
A Desktop Environmental Assessment was undertaken in June 2024 by Ramboll which reported the Contaminated Land Risk Ranking at “Low” and the Regulatory Flood Designation as “Flood Zone 1 (low probability of fluvial flooding).
Tenure
Freehold.
Tenancy
The property is let to UAV Tactical Systems Limited (Company number 5241592) on a full repairing and insuring lease for a term of 10 years from 10th October 2024, expiring 9th October 2034 at a current rent of £226,500 per annum which equates to £8.00 per sq ft based upon the floor agreed at the lease renewal in 2024.
The lease provides for a tenant’s break clause on 10th October 2030, the 6th anniversary of the term, subject to serving notice of no less than 6 months. The lease provides for an upwards only rent review at the 5th anniversary of the lease.
The tenant has renewed the previous lease which was for a term of ten years from 11th August 2014 expiring 10th August 2024. The rent settled at rent review in 2019 was £170,000 equating to £6.00 per sq ft based upon the floor areas agreed between the parties.
At the signing of the initial lease in August 2014, a side letter confirmed that the landlord at that time paid a capital contribution to the tenant to reflect items of disrepair at the property becoming the full responsibility of the tenant under their Full Repairing and Insuring lease, without exclusion from any future dilapidations settlement.
Tenant’s Capital Investment
The Licence to Alter of 11th August 2014 granted consent to the tenant to undertake “Works” (referred to in “The Schedule”) and specifically to remove these “Works” and reinstate at the end of the lease. However, the tenant is not obliged to reinstate “Excluded Works”, meaning:
a) “The improvements to the thermal envelope of the building at the Property
b) The internal walls to be put in surrounding the internal perimeter of the warehouse
c) Heating and Lighting to Office
d) Heating and Lighting to Warehouse
e) Security fence”
Whilst the tenant’s improvements are to be disregarded at rent review, the significant investment into the property will be to the benefit of the freeholder should the tenant choose to vacate in the future. In 2014 when the tenant first occupied the premises, the tenant spent £2.5m fitting-out. .
The significant tenant’s improvements (“Works”) as listed in the Licence to Alter include: Extension of mezzanine across full width; fire escape staircase; new toilet and shower areas; renewal of mechanical and electrical installations; security fence; connection to increased power supply.
A further Licence to Alter dated 30th June 2022 is available to download. The licence relates to works associated with the external fire escape.
Rental Value
The headline rent agreed at the lease renewal reflects a rent of £8.00 per sq ft / £86.11 per sq m.
We are aware of new open market letting which occurred in April 2024 at Unit 2, Meridian West, Meridian Business Park, LE19 1WX. We understand that the property provides accommodation of 16,565 sq ft / 1,538.94 sq m and was let to Technical Surfaces Limited on a ten-year lease with a six month rent-free period, at a rent of £155,000 per annum equating to £9.35 per sq ft / £100.64 per sq m.
It is reasonable to suggest that an open market letting would have achieved a rent in the order of £9.00 per sq ft / £96.88 per sq m. Based upon the current configuration and measured areas, this would result in a rent at open market letting of £266,265 per annum. Based upon the agreed floor areas, the rent at rent review can be expected to be no less than £255,000 per annum.
Therefore, we suggest the income is reversionary.
Covenant
UAV Tactical Systems Limited (Co. No.05241592) has reported the following figures:
| 31st December 2023 | 31st December 2022 | |
| Turnover | £21,362,000 | £16,141,000 |
| Pre-Tax Profit (Loss) | £1,210,000 | -£56,000 |
| Balance Sheet | £4,411,000 | £3,372,000 |
According to their website “U-TacS was created in 2005 for the purpose of delivering a specific Tactical Unmanned Air System capability to the British Army”. For further information on the tenant, please refer to their website u-tacs.co.uk/.
UAV Tactical Systems Limited is 51% owned by Elbit Systems UK Limited and 49% by Thales UK Limited.
Elbit Systems UK Limited is ultimately owned by Elbit Systems Limited, which is listed on the Nasdaq, view here, with a turnover of $6.8 billion and market capitalization (as at 2nd July 2025) of $19.6 billion.
Thales UK Limited is ultimately owned by “Thales”, the global technology business which operates in the areas of defence, aerospace, cyber and digital. The company’s results can be viewed here showing sales of €20.6 billion .
EPC
The property has an EPC rating of C.
VAT
The property is elected for VAT. We anticipate that the sale should be capable of being treated as a Transfer of Going Concern (TOGC).
Proposal
We are instructed to seek offers in the region of £3,295,000 (Three Million, Two Hundred and Ninety Five Thousand Pounds), subject to contract, reflecting a net initial yield of 6.5%, assuming standard purchaser’s costs of 6.46%.
Based upon the suggested rental value of £255,000 per annum, a purchase at the asking price reflects a reversionary yield of 7.3%.
Investment Considerations
An opportunity to acquire a prime industrial / warehouse investment;
The property is located within one of the premier business and industrial locations in the United Kingdom;
Secure income. The tenant operates within the defence industry which is likely to receive a significant boost given the Government’s recent announcements about increasing defence dpending
New ten-year lease signed in August 2024 at lease renewal;
Tenant is heavily invested in the property;
Attractive net initial yield
Reversionary income
