Halfway Green Walton-On-Thames Surrey

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1 Halfway Green Walton-On-Thames Surrey Prime South East Office Investment Walton Green, Walton-on-Thames 1

Investment Summary Fully refurbished Grade A headquarters office building Located in the South West Greater London office market Situated close to Walton-on- Thames railway station and the M25,

property provides 30,970 sq ft (2,877 sq m) of accommodation over ground and two upper floors 172 car parking spaces, within a secure car park providing an excellent ratio of 1:180 sq ft Offers in

2 Investment Summary Fully refurbished Grade A headquarters office building Located in the South West Greater London office market Situated close to Walton-on- Thames railway station and the M25, providing easy access to the national motorway network Let to Kia Motors (UK) Limited, with a parent company guarantee from Kia Motors Europe GmbH Unexpired term certain of approximately 15 years The property provides 30,970 sq ft (2,877 sq m) of accommodation over ground and two upper floors 172 car parking spaces, within a secure car park providing an excellent ratio of 1:180 sq ft Offers in excess of 12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 6.95%, allowing for purchaser s costs of 5.8% 1 Walton Green, Walton-on-Thames Rental income of 906,133 per annum, reflecting per sq ft ( 318 per sq m) on the office areas, with half rent on the reception area

3 Walton Green, Walton-on-Thames 2

Location Walton-on-Thames is a town located within the M25, approximately 26.7 km (16.7 miles) south west of Central London.

Road Walton Green is highly accessible by road, with Junction 11 of the M25 8.8km (5.5 miles) to the west and Junction 1 of the M3 only 7.4 km (4.6 miles) to the north.

6 Staines-upon-Thames 12.2 7.6 Air Walton Green is well placed in terms of access to London s airports; Heathrow Airport is approximately 18.3 km (11.

4 Location Walton-on-Thames is a town located within the M25, approximately 26.7 km (16.7 miles) south west of Central London. It is part of the South West Greater London office market, which includes the surrounding towns of Weybridge, Staines-Upon- Thames and Kingston-Upon-Thames. Road Walton Green is highly accessible by road, with Junction 11 of the M25 8.8km (5.5 miles) to the west and Junction 1 of the M3 only 7.4 km (4.6 miles) to the north. Central London can be accessed either via the A316 to the north, or the A3 to the south of the property. Distance Km Miles Central London Weybridge Kingston-upon-Thames Staines-upon-Thames Air Walton Green is well placed in terms of access to London s airports; Heathrow Airport is approximately 18.3 km (11.4 miles) to the north; Gatwick Airport is approximately 39.7 km (24.8 miles) to the south east; and London City Airport is approximately 40.7 km (25.3 miles) to the north east. Rail Access to the national railway network is provided at Walton-on-Thames railway station, located only a 2 minute walk to the south west of the subject property. From there, South West Trains run a regular service directly into London Waterloo approximately every 15 minutes, with a fastest journey time of 26 minutes. There are also regular services to Woking and Basingstoke to the west. Minutes London Waterloo 26 Woking 12 Basingstoke 51 Postcode: KT12 1RS Not to scale: For Indicative Purposes Only Reading Basingstoke M4 M4 Windsor M3 Portsmouth A4 A M25 12 A30 Woking A3 Guildford 4b 4 3 Staines-upon- Thames 2 11 A317 M25 Heathrow Airport A30 A308 Weybridge A244 A3050 M25 A30 A244 A308 Walton-on-Thames 10 1 A3050 A307 9 A315 A244 A316 A309 A307 A243 Hounslow Twickenham Kingston-upon-Thames A3 London 3 Walton Green, Walton-on-Thames

Situation Walton Green is situated on Halfway Green, off Station Avenue.

Centre, with over 60 retail stores, as well as other retail and leisure offerings.

situated immediately to the south west, whilst KBC House, the headquarters of KBC Advanced Technologies, is situated

Other surrounding uses include a local retail offering, car showroom and residential accommodation.

5 Situation Walton Green is situated on Halfway Green, off Station Avenue. This leads directly onto the A244, connecting the property with Hersham to the south and Sunbury to the north. The property is 1.6 km (1.0 mile) to the south of Walton-on- Thames town centre, which provides extensive amenities including The Heart Shopping Centre, with over 60 retail stores, as well as other retail and leisure offerings. To the south, the property is bounded by further office buildings; Walton Court, formerly Unilever s headquarters, is situated immediately to the south west, whilst KBC House, the headquarters of KBC Advanced Technologies, is situated immediately to the south east. Other surrounding uses include a local retail offering, car showroom and residential accommodation. A317 M25 (J11) M3 (J1) A3050 QUEENS RD A3 (West) A244 OATLANDS DR QUEENS RD Town Centre WALTON BRIDGE RD CHURCH ST A244 ASHLEY RD BURWOOD RD HERSHAM RD ST ATION A VE COTTIMORE LN Walton-on-Thames A317 A3050 WESTCAR LN ROBINSWAY AMBLESIDE AVE RYDENS RD Halfway Green Queen Elizabeth II Reservoir MOLESEY RD Hersham A244 West End Common Not to scale: For Indicative Purposes Only Walton Green, Walton-on-Thames 4

Description Walton Green is a headquarters office building, which has recently been refurbished to Grade A specification.

It provides 30,970 sq ft (2,877 sq m) of office accommodation arranged over ground and two upper floors.

staircases located at the end of each wing.

The floor plate on the second floor is slightly recessed to accommodate two balconies which overlook Halfway Green.

7 Description Walton Green is a headquarters office building, which has recently been refurbished to Grade A specification. The property is of brick construction, under a pitched roof. It provides 30,970 sq ft (2,877 sq m) of office accommodation arranged over ground and two upper floors. The floor plates are arranged as two wings on either side of a central core, which contains two thirteen person passenger lifts, and there are staircases located at the end of each wing. As a result, the office accommodation is highly flexible and capable of multiple occupation on a whole or part floor by floor basis. The floor plate on the second floor is slightly recessed to accommodate two balconies which overlook Halfway Green. The recent refurbishment involved the installation of new fan coils and chillers to the four pipe fan coil air conditioning, new ceiling tiles and new LG7 compliant lighting. The WCs and showers were also replaced, and the building benefitted from a new reception and full redecoration. As part of their fit out, the tenant has applied for planning permission to construct a glazed extension to the rear of the property to incorporate their new reception area. Walton Green, Walton-on-Thames 6

26 40 87 89 93 42 to 50 103 93a 111 Specification Following the recent refurbishment, the property provides the following specification: New fan coils and chillers to four pipe fan coil air

5m planning grid Full access raised floors (120mm clear void) New WCs New showers 2 x 13 person passenger lifts Balconies on the second floor Parking The building benefits from 172 car parking

8 to a 111 Specification Following the recent refurbishment, the property provides the following specification: New fan coils and chillers to four pipe fan coil air conditioning New metal tile suspended ceilings New LG7 compliant lighting 2.7m floor to ceiling height 1.5m planning grid Full access raised floors (120mm clear void) New WCs New showers 2 x 13 person passenger lifts Balconies on the second floor Parking The building benefits from 172 car parking spaces, equating to an excellent car parking ratio of 1:180 sq ft. Site Area The site area is 0.66 hectares (1.63 acres). WALTON GREEN,HALFWAY GREEN WALTON-ON-THAMES SURREY KT12 1RS Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas: Floor Use Area (sq ft) Area (sq m) Second Office 9, First Office 10, Ground Office 9, Ground Reception TOTAL 30,970 2,877 Oakdene Court 13 to m First Floor Plan to m HERSHAM ROAD to 3 Vincent Court 15.5m Halfway Green HALFWAY GREEN The Bungalow Chy FERNLEIGH CLOSE Overthorn Lodge Crown Copyright - licence no Based on Ordnance Survey Not to Scale - For Identification Purposes Only. Ambulance Station Not to scale: For Indicative Purposes Only 7 Walton Green, Walton-on-Thames Ordnance Survey Crown Copyright All rights reserved. Licen ce number Getmapping plc Plotted Scale - 1:1250 Site Area Acres (0.660h) Quinton Scott Chartered Surveyors

9 Walton Green, Walton-on-Thames 8

Tenancy The property is fully let to Kia Motors (UK) Limited, with a guarantee from Kia Motors Europe GmbH on a 15 year lease expiring 24th December 2027.

10 Tenancy The property is fully let to Kia Motors (UK) Limited, with a guarantee from Kia Motors Europe GmbH on a 15 year lease expiring 24th December The unexpired term is therefore approximately 15 years. The current rent passing is 906,133 per annum, which equates to per sq ft on the office accommodation and per sq ft on the reception. The tenant benefits from a rent free period of 20 months, which will be topped up by the vendor. The rent is subject to five yearly upwards only rent reviews, the next of which will be 25th December The lease is drafted on full repairing and insuring terms. The guarantee from Kia Motors Europe GmbH is in place until the tenant satisfies a Profits Test, whereupon the guarantor shall be released from its obligations. This requires the tenant to demonstrate that they have produced net profits of at least three times the passing rent, and have net assets of at least ten times the passing rent, for three consecutive years. Tenure The property is held freehold. Unexpired Term There are approximately 15 years unexpired. Rental Top Up The vendor is proposing to top up the remaining rent free period on the lease. Tenant s Covenant Kia, headquartered in Seoul, is South Korea s second-largest automobile manufacturer, with global sales in excess of 2 million vehicles a year. The largest manufacturer in South Korea, the Hyundai Motor Company is a 33.99% stakeholder in Kia, although the brands operate separately. Kia is a household name, with an ever-expanding range of models sold through a network of dealers in 172 countries, employing over 44,000 people globally. Kia has been operating in the UK since Initially private car distribution firm MCL Group acted as an importer, until Kia Motor Corporation took direct control of the franchise in the UK in 2002, creating a new company, Kia Motors UK. As Kia has grown in the UK, so too has its dealer network, expanding from 90 dealers to in excess of 160 since Kia took direct control of distribution in Kia Motors (UK) Ltd Dun and Bradstreet give Kia Motors (UK) Limited a rating of 2A3. Their financial records for the last three years are summarised below: Year Ending Sales Turnover ( 000 s) Profit / (Loss) Before Tax ( 000 s) Tangible Net Worth ( 000 s) Net Current Assets (Liabilities) ( 000 s) Dec ,229 18,889 1,610 (5,005) Dec ,996 3,418 (17,279) 15,230 Dec ,166 (55,050) (20,697) (18,645) Kia Motors Europe GmbH Dun and Bradstreet give Kia Motors Europe GmbH a rating of 5A2, which indicates a lower than average risk of business failure. Their financial records for the last three years are summarised below: Year Ending Net Sales Turnover ( 000 s) Profit / (Loss) Before Tax ( 000 s) Shareholders Equity ( 000 s) Current Assets (Liabilities) ( 000 s) Dec ,939,242 (2,481) 560,142 1,013,314 Dec ,030,487 1, ,659 1,137,017 Dec ,854,383 7, ,938 1,384,410 Kia Motors Europe GmbH is the parent company of Kia Motors (UK) Limited. 9 Walton Green, Walton-on-Thames

Market Commentary Sitting within the wider market of the South West M25 quadrant, Walton-on-Thames has an affluent catchment and excellent communication links.

11 Market Commentary Sitting within the wider market of the South West M25 quadrant, Walton-on-Thames has an affluent catchment and excellent communication links. As such, it is an attractive area for office occupiers that wish to exploit the benefits of a suburban London location, combining an attractive working environment with close proximity to Central London. Surrounding locations, such as Staines, Chertsey and Weybridge, that attract occupiers for similar reasons provide accommodation for many blue chip occupiers including Proctor and Gamble, Mercedes, Sony, Centrica, IBM and Samsung. The supply of available office accommodation within the South West M25 quadrant has declined significantly over the last decade, standing at just over 300,000 sq ft at the end of Conversely, take up has remained strong; 90,000 sq ft of space has been placed under offer since the start of 2013 and there are over 75 further active requirements. With a spike in lease expiries/breaks due over the next five years, and a limited amount of speculative development under construction, the amount of available Grade A accommodation is expected to continue to diminish, laying a strong foundation for rental growth. Investment Transactions Recent comparable transactions include: Date Property Rent psf Term Certain (Years) Jan-13 IMG, 5 Longwalk, Stockley Park Price (Cap Val psf) M ( 391) Jul-12 Unilever, Leatherhead M ( 361) Jul-12 Forum House, Staines M Apr-12 Costain House, Vanwall Business Park, Maidenhead ( 303) M ( 421) Net Initial Yield Purchaser 6.35% Overseas Investor 6.85% London Metric 7.23% Private Investor 7.00% Middle Eastern Investor Walton Green, Walton-on-Thames 10

12 VAT The property is elected for VAT. EPC The building has an EPC rating of C. Proposal Offers in excess of 12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.95%, allowing for purchaser s costs of 5.8%. Contact Details For further information, or to arrange an inspection, please contact: Mark Porter mporter@savills.com Jhaklyne Hassan jhassan@savills.com Megan Garner mgarner@savills.com 20 Grosvenor Hill London W1K 3HQ Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: February Walton Green, Walton-on-Thames

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