VANWALL BUSINESS PARK MAIDENHEAD SL6 4UB

Size: px

Start display at page:

Download "VANWALL BUSINESS PARK MAIDENHEAD SL6 4UB"

Daniel Allen
6 years ago
Views:

1 P R I M E T H A M E S V A L L E Y O F F I C E I N V E S T M E N T VANWALL BUSINESS PARK MAIDENHEAD SL6 4UB

2 2

INVESTMENT SUMMARY Prime Headquarters Office Building located on one of the Thames Valley s premier Business Parks Crossrail and Western Rail Access to Heathrow are set to further improve Maidenhead

3 INVESTMENT SUMMARY Prime Headquarters Office Building located on one of the Thames Valley s premier Business Parks Crossrail and Western Rail Access to Heathrow are set to further improve Maidenhead s exceptional connectivity Vanwall Business Park is the premier out-of-town location in Maidenhead 55,958 sq ft (IPMS 3) Grade A office, constructed in 2004 and comprehensively refurbished in 2014 Freehold Let in its entirety to AbbVie Ltd, with a guarantee from AbbVie Investments Ltd, on a full repairing and insuring lease for a term of 11.5 years from 11 July 2014 Current rental income of 1,414,410 reflecting a low passing rent of per sq ft, allowing for a half-rate on reception, with a fixed uplift in July 2018 to 1,462,447, reflecting per sq ft on the same basis Prime quoting rents in Maidenhead are currently per sq ft providing excellent reversionary potential at open market review in July 2019 Generous car parking ratio of 1:245 sq ft PROPOSAL Offers are sought in excess of 23,000,000 (Twenty Three Million Pounds) for the freehold interest. A purchase at this level reflects a net initial yield of 5.81%, rising to 6.01% in July 2018 following the fixed uplift, assuming purchasers costs at 5.80%. 3

4 A40 M40 A404 MAIDENHEAD A4 A329(M) 10 A4010 HIGH WYCOMBE A404(M) M4 LOCATION 4 3 A4094 A404 A308(M) 8/9 A308 A330 A413 BEACONSFIELD 2 A335 A4155 SLOUGH 6 A329 BRACKNELL A41 A40 A4 5 WINDSOR HEMEL HEMPSTEAD M25 Maidenhead is one of the Thames Valley s principal commercial centres, benefitting from an affluent population and excellent connectivity. Strategically located in the heart of the Thames Valley in close proximity to London, it has a thriving business community with high profile occupiers including 3, Johnson & Johnson, Costain, GlaxoSmithKline, Adobe, Siemens, Volvo, Abbott Laboratories, Seiko and Biogen. Many of these companies operate from Maidenhead as their national or international headquarters M3 21 WATFORD A412 M1 UXBRIDGE HARROW A40 M4 A41 HEATHROW A315 A316 STAINES 1 A1(M) 23 A406 A205 A1 GREATER LONDON A3 COMMUNICATION Road Vanwall Business Park is located adjacent to the A404(M), which links directly to the M4 and M40 motorways. M4 Motorway M40 Motorway M25 Motorway Central London 2 miles 10 miles 12 miles 28 miles Rail There are up to 11 services an hour from Maidenhead Station direct to London Paddington. Western Rail Access to Heathrow (WRAtH) will provide direct access to the airport with a journey time of only 14 minutes. Reading London Paddington 16 mins 20 mins Air Heathrow, one of the world s busiest Airports, is located only 15 miles east of Maidenhead with three more international airports within 50 miles. Heathrow Airport London City Airport Luton Airport Gatwick Airport 15 miles 38 miles 42 miles 50 miles SITUATION Vanwall Business Park is the premier out-of-town office location in Maidenhead, comprising 14 buildings in a highquality, landscaped environment. The building is located on Vanwall Road at the centre of the park amongst major occupiers including: Abbott Laboratories, Mattel, Seiko, Costain and SAP. The park is situated to the west of Maidenhead, adjacent to the A404(M) and within 1 ½ miles of the town centre and the rail station. WOOTON WAY SHOPPENHANGER S A4 BATH ROAD NORREYS DR. A404(M) JUNCTIONS 8 & 9 READING ROAD A308 MARLOW RD MAIDENHEAD SHOP PENHANGER S RD A4 MAIDENHEAD GOLF COURSE HARVEST HILL ROAD T OW N C E N T R E A308 BRAYWICK ROAD A308(M) BRIDGE ROAD A330 ASCOT ROAD A308 River Thames A4 WINDSOR ROAD BATH ROAD HEATHROW / LONDON M4 The town centre is set to benefit from a major 250 million redevelopment which will further improve retail and leisure amenity. Access to Central London and the rest of the Thames Valley is unrivalled with excellent road and rail connections. The surrounding areas are among the most affluent in the South East and are home to a highly skilled labour pool. CROSSRAIL Crossrail will provide a new east-west rail connection across London with its western terminus in Reading. It is due to arrive in Maidenhead in 2019 and will revolutionise travel across the Thames Valley. Reading Taplow Burnham MAIDENHEAD Slough Langley Iver West Drayton Hayes & Harlington Heathrow Airport Southall Hanwell West Ealing Ealing Broadway Bond Street Acton Paddington Tottenham Main Line Court Road Farringdon Whitechapel Liverpool Street Stratford 12 mins Journey Times 26 mins 41 mins 48 mins 55 mins Maryland Canary Wharf Forest Gate Custom House Manor Park Woolwich Ilford Abbey Wood Seven Kings Goodmayes Chadwell Heath Romford Gidea Park Harold Wood Brentwood Shenfield 4

LOCAL OCCUPIERS 1 Town Centre 2 Maidenhead 3 4 5 6 7 Under-Refurbishment 12 6 11 7 13 10 9 To M4

5 LOCAL OCCUPIERS 1 Town Centre 2 Maidenhead Under-Refurbishment To M4 Junction 8/9 8 Mattel ATOS A404(M) 11 Available to let Biogen 1 To M40 Junction 4 5

6 6

DESCRIPTION AbbVie House comprises a modern, self-contained headquarters office building arranged over ground and two upper floors around a full-height central atrium.

It was originally constructed in 2004 and comprehensively refurbished in 2014 to provide the following Grade A specification: Air-conditioning Suspended ceilings with LG7 compliant lighting Fully

7 DESCRIPTION AbbVie House comprises a modern, self-contained headquarters office building arranged over ground and two upper floors around a full-height central atrium. The elevations are brick clad with extensive glazing to the second floor and a fully glazed three-storey entrance. It was originally constructed in 2004 and comprehensively refurbished in 2014 to provide the following Grade A specification: Air-conditioning Suspended ceilings with LG7 compliant lighting Fully accessible raised floors Floor to ceiling height of 2.7m Two 13-person passenger lifts and an additional goods lift Male, female and disabled WCs on each floor The tenant has completed a high-end fit-out, creating a modern working environment including a café, gym, additional showers, bicycle storage and extensive break out areas. The property benefits from 220 car parking spaces providing a generous ratio of 1:245 sq ft. 7

ACCOMMODATION The property has been measured in accordance with RICS Property Measurement 1st Edition. The IPMS 3 floor areas are as follows: SITE PLAN Floor Sq m Sq ft Reception 149.

8 ACCOMMODATION The property has been measured in accordance with RICS Property Measurement 1st Edition. The IPMS 3 floor areas are as follows: SITE PLAN Floor Sq m Sq ft Reception ,608 Ground Floor 1, ,165 First Floor 1, ,022 Second Floor 1, ,163 Total 5, ,958 Limited use areas (2,077) Net Usable Area 5, , A Plowman & Craven report dated January 2016 is available and upon which reliance can be provided. There are 220 spaces providing an exceptional ratio of 1:245 sq ft Not to scale, indicative only. 8

9 9 9

10 10

11 TENANCY The property is let in its entirety to AbbVie Ltd, on a full repairing and insuring lease for a term commencing on 11 July 2014 and expiring on 3 November There is a guarantee in place from AbbVie Investments Ltd. The passing rent is 1,414,410 per annum (26.50 psf, allowing for a half rate on reception) with a fixed uplift on 11th July 2018 to 1,462,447 per annum ( psf). There is a further upward only open market rent review in July El Sub Sta TENURE Freehold. El Sub Sta SITE e El Sub Sta The site extends to approximately 1.24 hectares (3.06 acres). 1 PARK MANAGEMENT A Management Company, paid for by the Freeholders on the Park, carries out the maintenance of landscaping and the estate road. The cost is recoverable from the tenant under the terms of the lease. Geoffrey House VANWALL ROAD 11

12 12

13 COVENANT AbbVie Ltd is the UK arm of AbbVie Inc, a research based biopharmaceutical company, headquartered in the United States and listed on the NYSE with a market capitalisation of $92.96 billion. AbbVie was formed on 1st January 2013 by the split of Abbott Laboratories into two separate companies. Abbott Laboratories maintained the production of diagnostics, medical devices, nutritional products and generic medicines. AbbVie was founded with focus and capabilities to address some of the world s greatest health challenges, developing medicines in areas where there is significant need, such as hepatitis C, neuroscience, immunology, oncology, chronic kidney disease and women s health. Globally AbbVie employs approximately 28,000 people and their products are used in over 170 countries. AbbVie House is the company s UK headquarters. Notably, Abbott Laboratories are also headquartered on Vanwall Business Park, having moved to Maidenhead in AbbVie Ltd (Company Reg. No ) AbbVie Investments Ltd (Company Reg. No ) 31 Dec Dec Dec 2012 Turnover 438,601, ,240, ,950,000 Pre-tax profits 39,390,000 23,704,000 13,284,000 Net worth 89,416,000 62,363,000 33,559,000 The company has a Dun & Bradstreet Rating of 5A1, representing a minimum risk of business failure. 31 Dec Dec Dec 2012 Turnover Pre-tax profits 5,217,000 1,791,000 3,542,000 Net worth 147,822, ,805, ,430,000 The company has a Dun & Bradstreet Rating of 5A1, representing a minimum risk of business failure. 13

14 OCCUPATIONAL MARKET Overview Demand for offices in the South East continued to strengthen through 2015 with the Thames Valley set to benefit further from the advent of Crossrail and the proposed expansion of Heathrow. Maidenhead is one of the leading office locations in the Thames Valley, favoured for its connectivity to Central London and excellent access to wider road, air and rail communications. The provision of excellent schools, good quality housing and leisure amenities in the surrounding areas serve an affluent and well educated labour pool. This has enabled businesses to flourish and has attracted a number of blue-chip companies to the town, many of which operate national and international headquarters from Maidenhead. Supply Maidenhead has a total office stock of 5.6 million sq ft with a significant out-of-town (OOT) provision; demand for OOT offices has exceeded demand for the town centre by 56% to 44% since As a measure of its strength as an office location, there has been a net addition to stock of 1.5% in Maidenhead over the last 5 years, during a time which has seen permitted development remove large quantities of stock in other centres. The average annual addition to stock over the last 5 years has been 60,000 sq ft demonstrating the sustained demand for Grade A offices in Maidenhead. Take-up The Thames Valley office market maintained momentum throughout 2015 to record a 20% increase in take-up compared to Annual total take-up exceeded 2m sf ft. Furthermore; enquiry levels across 2015 were up by 12% compared to 2014, demonstrating the depth of demand. Rental growth is being recorded in all of the primary markets as supply becomes restricted. Maidenhead has performed correspondingly well with prime headline rents increasing by 17% from 2014, driven by the addition of new, top-quality to stock to the market and stand at 35 per sq ft. Average annual take-up over the last 10 years has been 150,000 sq ft, which was surpassed in 2015 with recorded take-up of 185,000 sq ft. Three key transactions saw Maersk Line (UK) lease 40,900 sq ft and CSL Behrings lease 21,000 sq ft in the town centre at Point, and Acenden lease 52,000 sq ft at Ascot House on Maidenhead Office Park READING M3 M BRACKNELL A SLOUGH MAIDENHEAD EA Source: IPD Real Estate Strategies Index WOKING GUILDFORD A M4 Heathrow STAINES Quoting rents at competing buildings in the Thames Valley include: Address Location Size TOR, Maidenhead ID Maidenhead, Vanwall Business Park Heathrow Approach, Langley 5 Roundwood Avenue, Stockley Park M25 Gatw ick A24 Quoting Rent (psf) CHISWICK A RICHMOND LONDON M23 CRAWLEY Accommodation Town Centre 67,777 sq ft Refurbished Out-of-Town 35,665 sq ft Refurbished Out-of-Town 83,228 sq ft Being Refurbished Out-of-Town 46,770 sq ft Refurbished 14

15 OFFICE INVESTMENT MARKET Investment demand for South East offices continued to grow through 2015 with total volumes for the year in excess of 3.9bn across 183 transactions. The 2014 total of 2.5 billion has been easily surpassed and there remains a depth of demand from investors wishing to enter the market. This is being driven by strong underlying fundamentals and long-term confidence in the strength of the South East economy, which has supported a strong performance in the occupational market. Prime yields currently stand at 5.00% and are under downward pressure as rental growth becomes tangible allowing investors to price in reversionary value. Opportunities to acquire well-let, newly refurbished properties in prime locations are limited. Recent comparable transactions in the South East include: Date Property Tenant Term Certain Price (Million) NIY Capital Value (psf) Purchaser Jan 2016 Beta Building, Reading Prudential Assurance Company Ltd % 358 Mayfair Capital Nov Longwalk, Stockley Park Marks & Spencer % 463 CCLA Nov Roundwood, Stockley Park Multi-let % 456 CCLA Sep 2015 Mallards Reach, Maidenhead Sanofi Pasteur MSD Ltd % 479 Kames Capital Aug 2015 Griffin House, Hammersmith Virgin Media Ltd % 910 Overseas investor Aug 2015 Leonardo Building, Crawley Virgin Atlantic % 434 F&C Commercial Property Trust Jun 2015 One City Park, Hove Legal & General % 309 Kames Capital May 2015 Flow, Staines VMWare UK Ltd % 595 NFU Mutual Dec 2014 Grenfell Island, Maidenhead Hutchison 3G % 483 L&G Dec Roundwood Avenue, Stockley Park Gilead Sciences Europe Ltd % 473 TH TIAA-Henderson HUKPOEIC Sep 2014 Market House, Maidenhead Adobe (65%), rent guarantee on remainder % 545 Tesco Pension Fund 15

16 EPC The property has an EPC rating of C and a score of 53. A copy of the EPC and Recommendation Report is available upon request. VAT The property is elected for VAT and therefore VAT will be chargeable on the purchase price, however the intention is to sell the subject property by way of a transfer of going concern (TOGC). FURTHER INFORMATION For further information or to arrange an inspection, please contact: Charlie Lake / clake@lsh.co.uk PROPOSAL Offers are sought in excess of 23,000,000 (Twenty Three Million Pounds) for the freehold interest. A purchase at this level reflects a net initial yield of 5.81%, rising to 6.01% in July 2018 following the fixed uplift, assuming purchasers costs at 5.80%. Cliff Jackson / cjackson@lsh.co.uk Matt Jones / mhjones@lsh.co.uk Misrepresentation Act 1967: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. February / / taylerreid.co.uk

THAMES VALLEY TOWN CENTRE OFFICE INVESTMENT BELL TOWER HOUSE BELL STREET, MAIDENHEAD, SL6 1BU

THAMES VALLEY TOWN CENTRE OFFICE INVESTMENT BELL TOWER HOUSE BELL STREET, MAIDENHEAD, SL6 1BU INVESTMENT SUMMARY Town Centre office investment in the heart of the Thames Valley Exceptionally well located