THE KIRKGATE CHURCH STREET EPSOM SURREY KT17 4PF TOWN CENTRE OFFICE INVESTMENT OPPORTUNITY

Transcription

1 THE KIRKGATE CHURCH STREET EPSOM SURREY KT17 4PF

2 INVESTMENT SUMMARY The Kirkgate comprises a modern town centre Grade A office building totalling approximately 26,713 sq ft (2,482 sq m). Convenient underground car park with 92 spaces at an excellent ratio of 1 space per 290 sq ft. The tenant has spent substantial money modernising some of the accommodation to a high standard in the last 12 months. Epsom is located approximately 17 miles (27 km) south-west of Central London, 5 miles (8 km) to the north-east of Leatherhead and 9 miles (14.4 km) to the north-west of Reigate. Epsom benefits from excellent road, air and rail communications. Let to Taylor Nelson Sofres plc, a subsidiary of the WPP Group, by way of an FRI lease expiring on 29th September 2016 (Approximately 4.5 years unexpired). Current passing rent of 550,000 per annum ( per sq ft overall). Freehold. Offers in excess of 5,505,000 (Five Million, Five Hundred and Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 9.45% after allowing for acquisition costs of 5.80% and a low capital value of 206 per sq ft.

3 LOCATION M11 Epsom is an affluent town within north Surrey with a local working population of approximately 34,000 people. Over 40% are employed within the financial and business services sector. M40 WATFORD M1 M25 HARLOW Epsom is situated within the south-west quadrant of the M25 approximately 17 miles (27 km) south-west of Central London, 5 miles (8 km), to the north-east of Leatherhead and 9 miles (14.4 km) to the north-west of Reigate. MAIDENHEAD LONDON The town benefits from excellent road, air and rail communications. Junction 9 of the M25 is approximately 4 miles (6.4 km) to the south-west of the town centre via the A24 providing access to the national motorway network. There are frequent mainline train services from Epsom station, a 3 minute walk from the subject property to London Vauxhall, Waterloo and Victoria stations with a fastest journey time of 35 minutes. M3 M4 WOKING STAINES M25 HEATHROW EPSOM CROYDON WOOLWICH Gatwick Airport is approximately 19 miles (30.4 km) to the south-east and Heathrow Airport approximately 22 miles (35.2 km) to the north-west. M23 SITUATION The property is prominently situated on Church Street, on the eastern fringe of Epsom town centre, approximately 200 metres from the High Street and 300 metres from Epsom mainline station. The property is bounded by Depot Road and the Wells office building to the north-west, and Church Street and Epsom Fire Station to the south-east. The surrounding uses are a range of commercial, retail and residential. The property is adjacent to The Upper High Street, Depot Road and Church Street Development Area. This site is held under a number of different ownerships and the aim is to provide an additional 180 residential units alongside a new foodstore. House of Fraser Horsley Close TRAIN STATION Ashley Centre Station Approach High St A24 Ashley Ave Waterloo Rd Ashley Rd Ashley House Annexe Nando s Epsom A24 Adelphi Rd The Old Bank Epsom & Ewell Borough Council The Parade Ashley Court High St Fairbriar Court B284 The Cressinghams Rifleman Inn High St d Close Hook Road A24 The Vestry The Parade Laine Theatre & Arts Capitol Square East Street Clayton Road Upper High St Dulshott Green Rd THE KIRKGATE Depot Road Church St Epsom Delivery Office Odeon Cinema A24 Prospect Pl The Old Print Works Depot Road Surrey Police Homewater House B284 Worple Rd Epsom URC Church Hawthorne Pl A2022 Delaporte Close The Grove Stevens Close Grove Rd Grove Ave C Church R Pikes H Church Rd

4 DESCRIPTION The Kirkgate comprises a self-contained Grade A office building totalling approximately 26,713 sq ft (2,482 sq m). The building is arranged over ground and three upper floors with car parking in the basement. The building was completed in 1991 and is of framed construction with brick elevations, double glazed windows and a mixture of pitched and flat roofs. The main access to the property is situated on the corner of Depot Road and Church Street. Just off the reception there are two, 10-person passenger lifts that serve the basement to third floor, with secure key card entry to access each floor. The building comprises a rectangular shaped configuration with a central core containing two lifts, staircase and WC facilities. There is also an emergency staircase to the north-east of the building. Each floor provides a similar layout, with the office accommodation arranged around the central service core. The ground floor has been partitioned into meeting rooms, whilst the upper floors are predominantly open plan, with some glass partitioning for meeting rooms and private offices. The first floor has recently been refurbished by the tenant (April 2011). The property is finished to the following specification: Suspended ceilings with recessed Cat II lighting. Carpeted raised floors Double glazed windows Male and female WCs on each floor with disabled WCs and shower facilities on the ground and third floor. 2 x 10-person automatic passenger lifts within the central core. Ceiling mounted low temperature fan assisted VAV (variable air volume) air conditioning. Standby generator. The property also benefits from 92 car parking spaces in the basement of the building, equating to an excellent parking ratio of 1 space per 290 sq ft.

5 ACCOMMODATION We understand the property provides the following approximate net internal floor areas: Floor Description Sq Ft Sq M Ground Reception Ground Office 4, First Office 8, Second Office 7, Third Office 5, Total 26,713 2, SITE The freehold title extends to approximately acres ( hectares). TENURE Freehold. TENANCY The property is let to Taylor Nelson Sofres plc (Company Number ) on a full repairing and insuring lease dated 23rd January 2001 and expiring on 29th September The lease therefore has approximately 4.5 years unexpired. The current total passing rent is 550,000 per annum equating to per sq ft overall.

6 COVENANT INFORMATION Taylor Nelson Sofres is a leading market research and market information group. Recent South-East Office investment transactions include: Formerly listed on the London Stock Exchange and a constituent of the FTSE 250 Index, the firm was acquired by the Kantar/WPP Group in October Kantar is one of the world s largest insight, information and consultancy networks. Its 26,500 employees work across 95 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The Group s services are employed by over half of the Fortune Top 500 companies. WPP is the world s largest communications services group. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising; media investment management; consumer insight; public relations and public affairs; branding and identity; healthcare communications; direct, digital, promotion and relationship marketing and specialist communications. The company employs over 141,000 people (including associates) in 2,400 offices in 107 countries. Address Date Tenant SAB Miller House, Church Street West, Woking Ashbourne House, Guildford 3 Manor Park, Reading Centrium CT1 & CT2, St Albans Jan 2012 May 2011 Jan 2012 Mar 2011 SAB Miller Enodis Investments Ltd Thames Water Premier Foods Ltd Term Certain 7.3 years 6.25 years 10.6 years 7.2 years Price million million 8.00 million million NIY (Cap Value psf) 7.81% ( 256 psf) 7.85% ( 301 psf) 7.34% ( 222 psf) 7.54% ( 286 psf) WPP is rated as representing very low risk of business failure by Experian with shareholder funds at 31st December 2010 of 4,363,400,000. Taylor Nelson Sofres plc, the original tenant, now forms part of TNS Group Holdings Limited which is a company that was incorporated in August 1967 and is wholly owned by the WPP Group. The latest accounts for 2010 show a profit of 38,693,000 and net assets of 228,159,000. INVESTMENT MARKET The south-east office investment market continues to attract considerable interest from a wide range of investors with prime yields currently in the order of 6.00%- 6.25%. This proposal offers an investor the opportunity to purchase a well located, South-East office at a substantial discount to both current and historic yield levels.

7 ASSET MANAGEMENT OPPORTUNITIES Potential future lease re-gear. Residential conversion (subject to planning) VAT The property is elected for VAT. It is envisaged that the sale will be treated as a Transfer of a Going Concern for VAT purposes. ENERGY PERFORMANCE CERTIFICATE (EPC) Further information is available on request. PROPOSAL Offers are sought in excess of 5,505,000 (Five Million, Five Hundred and Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 9.45% after allowing for purchaser s costs of 5.8% and a low capital value of 206 per sq ft. FURTHER INFORMATION For further information, or to arrange an inspection please contact: Chris Utley Richard Pope cu@nightingalepartners.com rp@nightingalepartners.com Tel: Tel: Berkeley Square London W1J 5AE Tet: +44 (0) Fax: +44 (0) MISREPRESENTATION ACT 1967 Nightingale Partners is a trading name of Nightingale Partners Ltd. Messrs Nightingale Partners for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract. (ii) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) No person in the employment of Nightingale Partners Ltd has any authority to make or give any representation or warranty whatever in relation to this property. All rentals and prices are quoted exclusive of VAT. All plans and maps provided with the particulars are for identification purposes only. Market information has been provided by Third Parties and should be verified. March 2012.

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