High Yielding Office Investment

Transcription

1 High Yielding Office Investment Links Business Centre Old Woking, Surrey GU22 8BF gva.co.uk/4695

2 Executive summary Three well configured self-contained office buildings comprising 1,693 sq m (18,256 sq ft) of office accommodation together with a further three buildings which have been sold off on a long leasehold basis. Old Woking is 2 km (1.25 miles) south west of Woking which is an affluent south east M25 town. The Links Business Centre is situated adjacent to Hoebridge Golf Course and set in an attractive landscaped setting. Multi-let to Berkeley Group plc (5A1), Avia Solutions (1A1), Oxford Strategic Marketing (2A1), Pilgrims Group Ltd (2A2) and Surrey Addictions Advisory Services. A weighted unexpired term of 4.62 years to lease expiries (3.70 to break options) A current total income of 337,508 per annum which reflects a low average rent of only 199 per sq m ( per sq ft). We are instructed to seek offers in excess of 2,600,000 (Two Million Six Hundred Thousand Pounds), exclusive of VAT which reflects a triple net initial yield of 11.67% after purchaser s costs of 5.80%. Minimum reversion in Jan 2015 to 11.94% This provides a low capital value of only 142 per sq ft. Subject to Contract.

3 Location Location Woking is one of the principal commercial centers in Surrey and is situated 36.2 km (22.5 miles) southwest of London and 8.5 km (5.25 miles) north of Guildford. The town is strategically located with nearby access to the M25 Junction 11 being 6.4 km (4 miles) to the northeast, the M3 being 11.3 km (7 miles) to the north, the M4 being 20.4 km (12.7 miles) to the north and the A3 London to Portsmouth trunk road 3.9 km (2.4 miles) to the south. Heathrow and Gatwick International Airports are situated 19.7 km (12.25 miles) and 31.4 km (19.5 miles) to the northeast and southeast respectively. In addition there are excellent rail links from Woking Railway Station to London Waterloo (quickest journey time of 24 minutes). Woking Railway Station is located just 1.9 km (1.2 miles) to the northwest. Please click on maps to link to online Bing maps Woking has attracted a number of established multi-national and national companies such as TAG McClaren, Phillips Petroleum, Allianz Cornhill, Cap Gemini, SAB Miller, Yum Restaurants Lastminute.com. and Telewest

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5 Situation The Links Business Centre is situated 6.4 km (4 miles) west of the M25 between the M3, 11.3 km (7 miles) to the north and the A3, 3.9 km (2.4 miles) to the south. All three of these major routes provide fast links with the rest of the country both to and from Woking. The site is situated just 1.9 km (1.2 miles) south east of Woking Railway Station which provides access to London with a journey time of approximately 24 minutes. The Links Business Centre is situated in landscaped grounds one mile southeast of the town centre and fronts on to Old Woking Road (B382) which leads in to Old Woking town centre. The site shares a turning with the Hoebridge Golf Club. Description The Links Business Centre, with its landscaped grounds offers a unique and picturesque working environment. Completed in 2001, The Links Business Centre is a development of 5 high quality buildings and a converted farmhouse of which Links 1, 2 and 3 are the income producing buildings. These buildings are outlined in blue on the following site plan. The site is served by 123 car parking spaces. We understand that Links 1 and 2 are new buildings of steel frame construction while Link 3 is a converted timber framed building. All three properties are characterised generally by providing good open floor plates and provide a high standard specification, including: Excellent natural light Double-glazed fenestration Clear open plan offices Full accessed raised floors with fitted carpet tiles throughout Tenure The property is held by way of a long leasehold at a peppercorn rent for a term of 125 years from 8th June 2001 expiring June 2126 (over 114 years unexpired term). Links 4 and 5 and the Farmhouse (which is converted to residential apartments) are sold off by way of long leaseholds at a peppercorn rent for a term of 125 years less 10 days from 8th June 2001 expiring 2126 (over 114 years unexpired term). These buildings are outlined on grey on the following site plan. All of these interests contribute to the estate s upkeep by way of an estate service charge available upon request.

6 Tenancy The primary income producing parts of the property are let in accordance with the following tenancy schedule: Tenant Name Demise Area (sq m) Area (ft²) Lease Start Expiry Date Break Rent (pa) Rent /sq m ( /sq ft) Comments Berkeley Group plc Links ,828 05/07/ /07/ /07/ , ( 15.95) Vendor will top up the rent to the rent commencement date of 25/12/12. Tenant to receive a 4 month rent free period if the break is not exercised. There is a service charge cap at 8,715 per annum which is increased with RPI. Southern Addictions Advisory Services Links 2 - part ground floor ,041 07/06/ /06/ /06/ , ( 20.07) There is a service charge cap at 11,589 per annum. Avia Solutions Ltd Links 2 part ground & part first floor ,274 19/05/ /05/ , ( 22.00) Oxford Strategic Marketing Ltd Links 2 part first floor ,328 10/08/ /08/ , ( 20.11) Pilgrims Group Ltd Links ,785 24/01/ /01/ , ( 18.45) Fixed rental uplift to 112,000 per annum on 24/01/15. Part ground floor sublet to Kentex Electric (Southern) Ltd until 22/01/2020. TOTAL 1, , ,508 Note: All leases are subject to the exclusion of sections Landlord and Tenant Act 1954.

7 Floor plan The following are typical of the Links Business Centre interior: Site The site area is ha (3.848 acres). Links 1 Links 2 Service Charge The service charge budget for 2011/2012 is to 96, per annum. This equates to per sq m ( 5.31 per sq ft). It should be noted that there is a service charge cap on Links 2, Unit 2 (Sothern Addictions Advisory Service) as a consequence there is a service charge short fall of 14,245 per annum. There is also a service charge cap on Links 1 of 8,715 per annum. This is increased in line with RPI annually.

8 Covenant status Links 1 The Berkeley Group Plc The Berkeley Group comprises a number of development companies including Berkeley, St James, St George, St Edward, Berkeley First, Berkeley Commercial and Berkeley Partnership. The Group has a number of joint venture development partners including Thames Water and Prudential. The Berkeley company is the Group s longest established brand, founded in 1976 creating medium to large-scale developments in towns, cities and the countryside, encompassing executive homes, mixed use schemes, riverside apartments, refurbished historic buildings and urban loft spaces. For more information visit: Dun & Bradstreet have rated the company 5A1 and their summarised figures for the last three years are: 30 Apr 2011 ( ) 30 Apr 2010 ( ) 30 Apr 2009 ( ) Comments Pre-Tax Profit 108,526,747 56,813, ,944,308 D&B 5A1 Net Worth 1,802,282,155 1,701,364,534 1,674,872,710 Net Current Assets Links 2 SADAS 400,887, ,864, ,287,198 Represents a minimum risk of business failure. Based in Guildford SADAS (Surrey Alcohol and Drug Advisory Service) is a voluntary organisation which is funded by Surrey County Council. Further information can be found at: Links 2 Avia Solutions Ltd Established in 2001 Avia Solutions provide management consultancy services for the air transport industry. Further information can be found at: Dun & Bradstreet have rated the company 1A1 and their summarised figures for the last three years are: 31 Dec 2010( ) 31 Dec 2009 ( ) 31 Dec 2008 ( ) Comments Turnover 2,358,000 2,437,000 3,227,000 D&B 1A1 Net Worth 1,026, ,000 1,110,000 Represents a minimum risk Net Current Assets 1,005, ,000 1,056,000 of business failure. Links 2 Oxford Strategic Marketing Ltd The tenant are marketing consultants who have been established for over 20 years who are focused on providing high level strategic advice from a customer s perspective. Further information can be found at: Dun & Bradstreet have rated the company 2A1 and their summarised figures for the last three years are: 31 Dec 2010 ( ) 31 Dec 2009 ( ) 31 Dec 2008 ( ) Comments Turnover 8,475,414 8,068,063 7,588,711 D&B 2A1 Pre-Tax Profit 1,253, ,062 1,010,201 Represents a minimum risk Net Worth 1,990,754 1,612,981 1,427,112 of business failure Net Current Assets 1,946,751 1,577,190 1,441,350 Links 3 Pilgrims Group Ltd The company is involved in risk management, security and service support that identifies and manages risk and operate as a detective agency and provide protective services. Further information can be found at: Dun & Bradstreet have rated the company 2A2 with a tangible net worth of 3,753, Nov 2010 ( ) 30 Nov 2009 ( ) 30 Nov 2008 ( ) Comments Turnover 21,672,940 15,940,798 - D&B 2A2 Pre-Tax Profit 1,277,594 2,772,097 (170,425) Represents a lower than Net Worth 3,753,844 3,110,073 1,475,342 average risk Net Current Assets 2,600,680 2,572,314 1,117,212 of business failure Home I Executive summary I I Location I I Situation I I Description I I Tenure Accommodation I Tenancy I I Floor Tenure plan I Tenancy I Site I I Covenant status status I Proposal I VAT I I Proposal Contact

9 Proposal The net income receivable equates to 321,128 pa after allowing for the service charge shortfalls. We are instructed to seek offers in excess of 2,600,000 (Two Million Six Hundred Thousand Pounds). Exclusive of VAT which reflects a triple net initial yield of 11.67% after allowing for the service charge shortfalls and purchaser s costs of 5.80%. This provides a low capital value of only 142 per sq ft. Subject to Contract. Minimum reversion in January 2015 to 11.87% following the fixed increase on Links 3. Further information Please click on an icon below: Simon Eddy Charles Fletcher Property website and downloads Simon Eddy simon.eddy@gva.co.uk Charles Fletcher charles.fletcher@gva.co.uk GVA, 10 Stratton Street London W1J 8JR Or for any other investment sales please visit: gva.co.uk/investment

10 Energy Performance Certificate For further information click here

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