Viables Business Park Basingstoke RG22 4BY

Transcription

1 Let to Fujitsu Services Ltd with a further 65 years unexpired Fujitsu, Jays Close Viables Business Park Basingstoke RG22 4BY Office Investment opportunity

2 Investment Summary ~~ Basingstoke is located 80 km (50 miles) south west of London ~~ The property provides approximately 62,004 sq ft (NIA) of office accommodation. ~~ Fujitsu pay a rent of 505,000 p.a. ( 8.14 psf on the overall area), plus 43,112 p.a. (being one third of the long leasehold rent) with the total rent therefore 548,112 p.a. ~~ Site area of approximately 1.53 hectares (3.77 acres). ~~ Total net rent received of 418,777 p.a. ~~ Let on a FRI lease to Fujitsu Services Ltd for a further 65.5 years term certain. ~~ We are seeking offers in excess of 6,885,000 (Six Million Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT which reflects a net initial yield of 5.70% and a capital value of only 111 psf assuming purchasers costs of 6.65%. ~~ Modern office facility fully utilised by the tenant. ~~ Leading international ICT Company rated 5A1 by Dun & Bradstreet. ~~ The property is held on a long leasehold basis for a term of 99 years from September 1982 with a tenants option to extend for an additional 26 years, which would provide an effective unexpired term of 91 years. The current leasehold head rent is 129,335 p.a. ~~ The property is held in a Jersey based SPV and is available to be purchased, further details are available on request.

3 Hampshire Police HQ (under construction) Jct 7 M3 Jct 6

4 Location Basingstoke is a major commercial centre located in the County of Hampshire, 80 km (50 miles) south west of London, 27 km (17 miles) south of Reading and 48 km (30 miles) north of Southampton. Basingstoke is well positioned next to junctions 6 and 7 of the M3 motorway which connects London to the South Coast and joins the M25 motorway at junction 12. Regular train services run into London Waterloo from Basingstoke, with a fastest journey time of approximately 45 minutes. Other direct services include Reading and Oxford. The town is well located for access to Heathrow Airport, approximately 56 km (35 miles) to the north east, whilst Southampton Airport is approximately 48 km (30 miles) to the south west. A37 A48 A40 of Dean TOL M5 M50 A433 A46 BATH Gloucestershire Airport Cheltenham M4 M5 GLOUCESTER A429 A350 A417 Evesham A46 A420 Stroud Cirencester Cotswold Airport Chippenham Trowbridge Frome A36 epton A361 Warminster Mallet A419 A424 SWINDON Royal Wootton Bassett A303 A36 A429 A40 A346 Marlborough A338 A420 A44 M40 Andover Banbury A422 Oxford A34 A34 Newbury OXFORD A339 M3 A43 A41 A421 BASINGSTOKE M1 A508 Aylesbury A418 A428 A509 A421 Milton Keynes Bletchley A4146 A5 A505 A41 A4280 A6 M1 LUTON Luton A1 M40 A4010 A413 High Wycombe A355 M25 A404 Maidenhead LONDON M4 Windsor READING Heathrow A323 A33 M3 M25 A331 Aldershot GUILDFORD Farnham A3 A24 A31 B3400 A3010 Churchill Way West Worting Road Winchester Road Jays Close The Harrow Way Jays Close Chapel Hill Timberlake Road Sarum Hill A30 Ringway South Basingstoke Festival Place Shopping Centre New Road Cliddesden Road Way Festival War Memorial Park Grove Road B3046 Farleigh Road Hackwood Road A339 London Road Ringway East Black Dam W ay M3 J6 Dickens Lane A339 Situation The subject property is situated within the Viables Business Park, a large business park extending to 38 hectares (97 acres) approximately 3 km (2 miles) to the south west of Basingstoke town centre. The Viables is one of the main commercial areas in the town with occupiers including De la Rue, Sony, TaylorMade-Adidas and Motorola. Phase 1a &1b is at the north eastern entrance to The Viables in a prominent position which provides easy access onto Grove Road which in turn leads to the Ringway and the M3 motorway. Junction 6 of the M3 motorway is approximately 3 km (2 miles) to the east and junction 7 is 7 km (4 miles) to the west. Description The property, known as phases 1a and 1b, comprises a self-contained office building constructed in the early 1980 s. The property provides accommodation over basement, ground and first floor level and is of steel framed construction with brick/block, curtain walling elevations under a pitched tiled roof. The tenant has recently installed a new chiller system. Internally the property benefits from the following specification: ~ Air-conditioning ~ Suspended ceilings with integral lighting ~ Perimeter trunking ~ 8 person passenger lift ~ Double glazing ~ Male, female and disabled WC s on each floor Phase 1a provides approximately 234 parking spaces which equates to a ratio of 1:265 sq ft. The area referred to as Phase 1b is the rear car park which was historically granted planning permission for 30,000 sq ft of offices that was never implemented. Accommodation The property provides the following approximate net internal areas: Net Internal Areas (NIA) First Floor Ground Floor Local Economy Description Sq ft Sq m Office Area Reception Area Office Area Reception Area 21, ,810 1,179 1,954, , *Lower Ground Floor Office Area 6, Total 62,004 5, *Area not rentalised at review Areas provided by vendor Basingstoke has been ranked as the number one place in the UK for the digital economy by the National Institute of Economic and Social Research (NIESR), building on the town s reputation as part of the area s tech corridor. The town is also recognised as an excellent place for inward investment by Local Futures, which ranked Basingstoke as being in the top three local authority areas in the country to base a business, as a result of the high levels of productivity, excellent business survival rates and the number of knowledge driven businesses based in the area. Basingstoke has been subject to major redevelopment with Network Rail having invested 46m in the construction of a 146,000 sq ft railway training and development campus, the only one of its kind in the country, completed in Q Further inward investment can be seen at Basing View with the recently completed 200m mixed use scheme anchored by Waitrose and John Lewis. Recent office lettings on Viables Business Park include a 25,000 sq ft letting at V3, Jays Close to Capita, the quoting rent was psf.

5 m 4 3 JAYS CLOSE Site The total site area extends to approximately 1.53 hectares (3.77 acres) provides a low site cover of approximately 24% m EPC The property has Energy Performance Certificate rating of D98. 0m 10m 20m 30m Mast M 3 Boro Const Bdy Co Const, ED & Ward Bdy VAT The property is elected for VAT and we would expect the transaction to be treated as a Transfer of a Going Concern (TOGC). Crown Copyright, ES For identification purposes only. Tenure Leasehold. The property is held long leasehold from The Borough Council of Basingstoke and Deane for a term of 99 years from 7th September 1982 with a tenants option to extend for 26 years. The current head rent is is 129,335 per annum. The rent is reviewed five yearly with the next review date being in September Tenancy The property is let in its entirety to Fujitsu Services Limited for a term of 99 years (less 10 days) from 7th September 1982 with a tenants option to extend for 26 years. The rent is reviewed five yearly, upward only, to open market rent plus one third of the rent payable to the Council. The next review date is in September The current passing rent is 505,000 per annum ( 8.14 per sq ft overall or 9.15 per sq ft on the rentalised area) plus 43,112 per annum (one third of the Headlease) with the total being 548,112 per annum. The total net rent is therefore 418,777 per annum having deducted the 129,335 per annum head rent. Covenant Information Fujitsu Services Ltd was incorporated over 100 years ago and specialises in providing ICT services. Fujitsu Services Ltd acts as a holding company for certain other companies owned by its immediate parent, Fujitsu Services Holdings Plc with the ultimate parent being Fujitsu Ltd. Fujitsu Ltd, a fully quoted public company incorporated in Japan, is one of the leading ICT service businesses in Europe, the Middle East and Africa employing over 14,000 employees. Fujitsu specialises in IT infrastructure management and outsourcing across desktop, networking and data centre environments. The company has key contracts within the private and public sector, including the Ministry of Defence. For more information, please see Fujitsu Services Ltd are rated 5A 1 by Dun & Bradstreet representing a minimum risk of business failure. For the past three years they have reported the following figures: Fujitsu Services Limited Sales Turnover Profit/(Loss) Before Taxes Tangible Net Worth 31/03/2015 GBP (000 s) 31/03/2014 GBP (000 s) 31/03/2013 GBP (000 s) 1,749,300 1,655,200 1,538,400 87,900 77,900 14, ,900 52, ,400

6 Proposal We are seeking offers in excess of 6,885,000 (Six Million, Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT which reflects a net initial yield of 5.70% assuming purchasers costs of 6.65%. The property is held in a Jersey based SPV and is available to be purchased, further details are available on request. For further information or to make arrangements for viewing please contact: Scott Tyler scott.tyler@allsop.co.uk Mark Dansky mark.dansky@allsop.co.uk Alex Butler alex.butler@allsop.co.uk Andrew Dunkley dunkley@bushegower.co.uk Misrepresentation Act: 1. Allsop LLP and Bushe Gower Associates on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Bushe Gower Associates is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop or Bushe Gower Associates nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD