Tangent House, 16 Forbury Road, Reading High Yielding Multi-let Freehold Office Investment

Size: px

Start display at page:

Download "Tangent House, 16 Forbury Road, Reading High Yielding Multi-let Freehold Office Investment"

Adela Casey
6 years ago
Views:

1 Tangent House, 16 Forbury Road, Reading High Yielding Multi-let Freehold Office Investment

Investment Summary Reading is an important sub-regional centre Ranked 1st out of all major UK cities for anticipated annual GVA growth between 2010 and 2026.

2 Investment Summary Reading is an important sub-regional centre Ranked 1st out of all major UK cities for anticipated annual GVA growth between 2010 and (Experian Research) Key transport hub with excellent links to local, national and international destinations 800m infrastructure improvements to station increasing passenger capacity from 17m to 35m a year over next 5 years Tangent House is situated in a prime location only 150 metres from Reading Station and opposite Apex laza sq.m. (7,792 sq.ft.) of air-conditioned office accommodation on ground and 4 upper floors Total Income 109,146 pa equating to only psf. Two suites in the adjoining Forbury Court are currently on the market at a quoting rent of 24 psf. Let to two tenants with average weighted unexpired term (until breaks) of 3.67 years. We are instructed to seek offers in the region of 1,075,000 (One million and seventy five thousand pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 9.60% after allowing for the usual costs of purchase.

ORD ON-TRENT Location DERBY KI M6 SHREWS BURY Reading sits at WELSHOOL the heart of the Thames Valley, one of the most successful

It is the commercial and administrative centre of the region with an urban population of approximately 275,000 and a retail catchment of

M42 It is home to two universities Reading M69 University and Thames Valley University.

economy built M42 (junctions destinations.

WARWICK retail, research and development and railway station is the second busiest pharma-bio industries.

into London addington rudential, Verizon and Cisco as well as (25 minutes) as well as connections to Thames Water, Yell, BG Group,

RailAir provides a dedicated non-stop coach LEICESTER service every 20 minutes that links Reading Station with Heathrow Airport

A1(M) Communications will be further improved following completion of the 800m station upgrade which will accommodate a doubling in

3 ORD ON-TRENT Location DERBY KI M6 SHREWS BURY Reading sits at WELSHOOL the heart of the Thames Valley, one of the most successful subregions in Europe. It is the commercial and administrative centre of the region with an urban population of approximately 275,000 and a retail catchment of over 1.2m. Agency, Ernst & Young, Deloitte and M54 ricewaterhousecoopers. M42 It is home to two universities Reading M69 University and Thames Valley University. WOLVERHAMTON M6 It isbirmingham a key transport hub with excellent links to local, national and international It has a strong and mature economy built M42 (junctions destinations. The M4 10, 11 and COVENTRY ABERYSTWYTH around ICT, financial and business services, 12) is only 2 miles to the south; the mainline WARWICK retail, research and development and railway station is the second busiest pharma-bio industries. Major occupiers provincial station in the UK offering regular WORCESTER include global brands such as Microsoft, M40 non-stop services into London addington rudential, Verizon and Cisco as well as (25 minutes) as well as connections to Thames Water, Yell, BG Group, Environment EVESHAM M5 Birmingham (83 minutes), Cardiff (90 HEREFORD minutes) and Southampton (55 minutes); M50 BRECON GLOUCESTER RailAir provides a dedicated non-stop coach LEICESTER service every 20 minutes that links Reading Station with Heathrow Airport 25ETERBOROUGH miles to the west and there is an hourly rail service to Gatwick Airport as well. A1(M) Communications will be further improved following completion of the 800m station upgrade which will accommodate a doubling in passenger numbers from 17m to 35m NORTHAMTON passengers a year through five additional platforms, major track works, acambridge new bridge, BEDFORD and new northern and southern entrances. The new station will open in 2012, and the major track upgrades will be completed by MILTON KEYNES CHELTENHAM STEVENAGE LUTON M1 OXFORD CIRENCESTER A1(M) M25 WATFORD HIGH WYCOMBE SWANSEA M11 M40 M4 SWINDON A34 A404 LONDON M5 READING M4 BRISTOL HEATHROW A4 BATH NEWBURY A33 M3 M25 M23 A36 A303 BARNSTALE GUILDFORD A30 SALISBURY M5 A303 A36 A30 A3 WINCHESTER GATWICK

4 Ericsson Situation Tangent House is situated in an excellent town centre location 150 metres from Reading Station, directly opposite Apex laza and close to the new Yell HQ at the recently completed One Reading Central development. Forbury Gardens and the retail/restaurant facilities within Broad Street and the Oracle Shopping Centre are within a few minutes walk. The location will benefit considerably from the improvements to the station and, in the medium term, the regeneration of the area around the station. There are a number of significant schemes with planning permission. These include: Station Hill In early 2011, Benson Elliot Capital Management, a leading private equity real estate firm, and Stanhope plc, acquired a majority interest in the company established by Sackville roperties for the landmark Station Hill re-development in Reading. Outline consent was granted in September 2009 for the 1.4m sq ft mixed use scheme opposite Reading Station. The proposal provides for 800,000 sq ft of offices, 100,000 sq ft of retail, 650 flats and a cultural quarter including theatre, arts and gallery space. The joint venture partnership is currently reviewing the options on the site with a view to submitting a revised application in Reading Central Kier roperty and Invista Real Estate Management have consent for an additional 453,000 sq.ft. of offices in phases two and three. One Reading Central (217,000 sq.ft.) was completed in February 2010 with 153,500 sq.ft. prelet to Yell. A further 22,590 sq ft has since been let to international software business, egasystems. (See for further information) R+ Canmoor and Korine roperty artners have planning consent for the redevelopment of Aldwych House opposite Apex laza and the station to provide 103,000 sq.ft. on six floors. (See for further information) REET eet FRIAR STREET ST MARY S BUTTS CASTLE STATION HILL Station Hill STREET BROAD STREET S T GUN BRIDGE STREET VASTERN ROAD STATION ROAD AD BLAGRAVE ST FRIAR The Oracle MINS TE R S TR E E T Rail Air Link STREETT The Oracle MMA HSBS, Barclays, Ernst & Young, Olswang, Osborne Clark BLAGRAVE STREET Thames Water Apex laza R+ FORBURY RD VALY STREET ET Clarks Solicitors Network Rail, Santander, Lloyds TSB Market lace KING ST VASTERN RD DUKE STRE ET THE FORBU FORBURY READING ING BRIDGE THE FORBURY Forbury Square Environment Agency Yell & egasystems Reading Central Tangent House FORBURY RD ABBEY SQUARE Forbury F Gardens ABBEY ST KING S ROAD ABBOT'S S WALK The Blade ABBEY STREET Deloitte Foster Wheeler Kennet and Av

Description Second floor The property was reconstructed in 2000 around the existing frame and comprises 723.9 sq.m. (7,792 sq.ft.

The office accommodation has the benefit of: Fan-coil air-conditioning Underfloor trunking Suspended ceilings Recessed fluorescent CAT II lighting Male and

6 Description Second floor The property was reconstructed in 2000 around the existing frame and comprises sq.m. (7,792 sq.ft.) on ground and four upper floors. The office accommodation has the benefit of: Fan-coil air-conditioning Underfloor trunking Suspended ceilings Recessed fluorescent CAT II lighting Male and female toilets on each floor 5 parking spaces FORBURY ROAD Accommodation The property comprises the following net internal floor areas: Floor Accommodation Area sq.m. Area sq.ft. Ground Car parking First Offices ,500 Second Offices ,510 Third Offices ,520 Fourth Storage ,792

7 Tenure Freehold. lease note that part of the ground floor of the property is subject to the right for the owner of North Gate House, 21/23 Valpy Street, to park 14 cars. These spaces are self contained and accessed via the service road serving North Gate House.

Tenancies The property is let at a current rent of 109,146 pa equating to only 14.49 psf in accordance with the tenancy schedule below:: Tenant Floor Area sq.m. Area sq.ft.

8 Tenancies The property is let at a current rent of 109,146 pa equating to only psf in accordance with the tenancy schedule below:: Tenant Floor Area sq.m. Area sq.ft. Rent A Rent SF Lease Term Comments Halian First ,500 33, years Limited from 01/09/11 Tenant option to break at end of third year on 6 months notice. Service charge capped at 19,968 pa subject to annual RI increases. 8 months initial rent free (half rent for 16 months) with further 3 month rent free (half rent for 6 months) if break not exercised. Vendor will top up initial rent concession to 33,696 pa. First Intuition Second ,510 75, years Reading Limited Third ,520 from 04/01/2011 Rent review on 04/01/2016. Tenant option to break at end of fifth year on 6 months notice. Initial 3 month rent free then half rent for 15 months. Vendor will top up rent concession to 75,450 pa. Lease outside 1954 Act. 6 month rent deposit , , The Tenants Halian Limited (31% of the income) is an international IT services company established in 1996 with four offices in Reading, Brussels, Howald and Dubai. For the year ending 31st October 2010, it had revenues of 11.30m, pre-tax profit of 0.31m, a tangible net worth of 0.77m and net current assets of 1.33m. First Intuition Reading Limited (69% of the income) is a franchise of First Intuition which was founded in 2007 by a group of former B tutors and directors with the aim of becoming the first choice accountancy tuition provider for students and employers. The group now has 5 branches in London, Bristol, Cambridge, Maidstone and most recently Reading. The directors at the Reading office have over 40 years experience in accountancy tuition and opened the centre in January this year. A 6 month rental deposit has been provided in respect of this tenant.

9 VAT The property is elected for VAT. roposal We are instructed to seek offers in the region of: 1,075,000 (One million and seventy five thousand pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 9.60% after allowing for the usual costs of purchase. This compares favourably with the recent sale of the adjoining Forbury Court at a net initial yield of 9% and equates to a freehold capital value of only 138 psf. Further information For further information or to arrange an inspection then please contact either: Lawrence Gluckstein Direct Line: lg@johnmilesco.com Neil Edwards Direct Line: neil@johnmilesco.com Chartered Surveyors 76 New Bond Street London W1S 1RX Misrepresentation Act: Messrs John Miles & Company (Investments Surveyors) Ltd 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 for the guidance of the intending purchasers and do not 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 without responsibility and any intending purchasers 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 John Miles & Company (Investment Surveyors) Ltd has any authority to make or give any representation or warranty whatever in relation to this property. November 2011.

Virtual Freehold Leisure Investment Kiss Gyms, Paramount Building, Princes Street, Swindon, SN1 2SD

Virtual Freehold Leisure Investment Kiss Gyms, Paramount Building, Princes Street, Swindon, SN1 2SD Kiss Gyms, Paramount Building, Princes Street, Swindon, SN1 2SD Virtual Freehold Leisure Investment Investment