Olympia House Gelderd Lane Leeds LS12 6DD

Transcription

1 investment Olympia House Gelderd Lane Leeds LS12 6DD Freehold office /laboratory investment for sale LET To the environment agency for a further 7.75 years

2 Investment Summary Prominent Office and Laboratory building of 28,945 sq ft over three floors Situated 1.5 miles from Leeds city centre and 0.25 miles from M621 (J1) Let in its entirety to The Environment Agency until 7th December 2019 Tenant in occupation for over thirty years Tenant showing firm commitment to Olympia House by waiving break option, whilst government departments are breaking leases nationwide Annual rental income 255,000 pax Offers invited in the region of 2,300,000 for the freehold interest A purchase at this level will show an attractive net initial yield of 10.48%, after purchasers costs of 5.8% Low capital value of per sq ft

3 Location The City of Leeds is the administrative commercial and financial capital of West Yorkshire, situated approximately 180 miles north of London, 38 miles north east of Manchester and 50 miles west of Hull. Leeds has excellent communications by road, rail and air: The property is located 0.25 miles north of Junction 1 of the M621 motorway, which in turn provides excellent road communications to both the M1 and M62. There are regular rail services into London Kings Cross (journey time approx. 2 hours) and frequent rail services linking Leeds with Bradford, Sheffield and Manchester. Leeds Bradford Airport, to the north west of the city, provides regular flights to a host of European and domestic destinations. Situation Olympia House is accessed from Gelderd Lane and fronts onto Gelderd Road (A62), approximately 1.5 miles west of the city centre. Gelderd Road is regarded as one of Leeds most established commercial locations, benefiting from close proximity to the city centre and excellent motorway access. Nearby occuppiers include Mercedes Benz, Screwfix, HSS Hire and Newey & Eyre. Further, Leeds United Football Club s Elland Road stadium is situated within the vicinity. LEEDS CITY CENTRE ELLAND ROAD Olympia House A62 GELDERD ROAD A643 M621 RING ROAD

4 The Site The approximate site area comprises acres. The Building Olympia House is a key building operated by the Environment Agency to undertake environmental testing. The building is arranged over ground, first and second floors, with the following approximate net internal floor areas: Floor Size (sq ft) Ground 9,520 First 9,604 Second 9,821 Total NIA 28,945 sq ft The property is a purpose built office building, which has subsequently been fitted out to provide a mixture of office, laboratory and ancillary storage accommodation. The office accommodation has very good natural daylight, gas fired central heating, suspended ceilings with recessed lighting and an automatic passenger lift serving all floors. The tenants have installed air conditioning to discreet areas and there is a staff canteen and kitchen on the second floor. Externally there are 37 car parking spaces, including 2 disabled. Tenure Freehold. Tenancies The building is let in its entirety to The Environment Agency on a full repairing and insuring lease from 8th December 2004 until 7th December The passing rent is 255,000 per annum exclusive of outgoings and VAT ( 8.80 per sq ft). There is an upward only rent review in December Approximately 4,700 sq ft on the second floor has been sublet to Rosemont Pharmaceuticals Ltd until 7th December 2012 at an annual exclusive rent of 50,300 ( per sq ft). Approximately 3,358 sq ft of office and storage accommodation over ground, first and second floors has been recently sublet to the Secretary of State for Communities and Local Government until 7th December 2019 at an annual exclusive rent of 31, ( 9.24 per sq ft). This accommodation has been substantially refurbished by the sub tenant and is now occupied by DEFRA executive agencies, Rural Payments Agency and Animal Health. The Environment Agency have elected not to exercise their option to break on the 7th December 2012 (subject to serving notice by 7th February 2012). We believe this underlines the Environment Agency s continued strong commitment to Olympia House, as we understand government departments are presently required to exercise all breaks, where commercially viable.

5 Covenant Information The Environment Agency is an executive Non - departmental Public Body responsible to the Secretary of State for Environment, Food and Rural Affairs and an Assembly Sponsored Public Body responsible to the National Assembly for Wales. This covenant is undoubted. VAT We anticipate that the sale will be structured as a transfer of a going concern (TOGC). Proposal We are instructed to seek offers in the region of 2,300,000 for the freehold interest, subject to contract. A sale at this level would show an attractive net initial yield of 10.48%, after allowing for purchasers costs at 5.8%. Viewing By appointment through joint sole agents. Ian Kitchener Ian.kitchener@cfkllp.co.uk DD: Ben Hall ben.hall@gva.co.uk DD: ref: 3116 Asset Managers Misrepresentation Act CFK LLP and GVA for themselves and for the vendors or lessors of this property hereby give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute part of an offer or contract. 2. 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 of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No persons in the employment of CFK LLP or GVA has any authority to make or give any representation or warranty whatever in relation to this property. VAT: All prices and/or rentals are, unless stated otherwise, quoted exclusive of Value Added Tax, which maybe payable. Designed and Produced by February 2012.