Freehold Office Investment Opportunity. Riverside Court Guildford Road Leatherhead KT22 9DF

Transcription

1 Freehold Office Investment Opportunity Riverside Court Guildford Road Leatherhead KT22 9DF

2 Riverside Court Guildford Road Leatherhead KT22 9DF Investment Summary Leatherhead is strategically located 1 mile south of Junction 9 of the M25. The property is well located within a 5 minute walk from the town centre and railway station. The property comprises office accommodation arranged on ground, and two upper floors with a double height reception area. Net internal floor area is 1, sq m (18,266 sq ft). The property is let to Mercer Ltd until 24th March Freehold The total current income is 451,000 per annum ( per sq ft). There are 75 car spaces (1:250 sq ft). Investment Proposal Offers in excess of 3,200,000 (Three million, two hundred thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 13.32% after acquisition costs of 5.8%. This represents a net capital value of 175 per sq ft.

3 Situation Riverside Court is located fronting on to the Guildford Road (B 2122) on the southern edge of Leatherhead town centre, which is within a 5 minute walk. The property is within 1.6 km (1 mile) and a 5 minute walk south of the train station, and the surrounding area is a mix of similar office accommodation, a leisure centre and residential property. Leatherhead has attracted a number of international companies to the town, providing UK headquarters offices for Logica, Kellogg Brown and Root, and Unilever. Other occupiers include Wates Group, Exxon Mobil, Merchant Navy Pension Fund, The Police Federation and the NHS. Location Leatherhead is located within the Mole Valley District of Surrey, and is located approximately 34 km (21 miles) south west of Central London. It is strategically positioned 1.6km (1 mile) south of junction 9 of the M25, 31 km (19 miles) north west of Gatwick airport, and 39 km (24 miles) south east of Heathrow airport. Leatherhead is also situated adjacent to the A24, which links London with the south coast, and 1.6 km (1 mile) south of the A243, which provides access to central London via the A3. Leatherhead railway station is located less than 1.5 km (1 mile) to the north of the property with a journey time of approximately 45 minutes, and up to 7 departures per hour in peak times.

4 Description Riverside Court comprises a high quality office building, constructed in The building is of steel frame construction, with brick work and rendered cavity external walls, under a timber pitched roof construction with plain tile coverings. There are limited areas of flat roof coverings, with dormer windows on the second floor. The building provides 18,266 sq ft ( sq m) of office accommodation arranged over ground and two upper floors. The surface car park to the rear of the property provides 73 car parking spaces (1:250 sq ft). The specification includes: Raised floors. Two pipe fan coil air conditioning. Suspended ceilings with recessed lighting. 8 person passenger lift. Full height feature atrium. Male and female WC facilities to each floor, and a disabled WC at ground floor level. 73 car parking spaces (1:250 sq ft). Accommodation The property has been measured by Plowman Craven and Associates in accordance with the RICS code of measuring practice 5th addition, and provides the following net internal areas. Floor Use Sq ft Sq m Ground Reception Ground O ffi c e 7, First O ffi c e 6, Second O ffi c e 3, Total 18,266 1, Site Area The property has a total site area of hectares (0.894 acres). Tenure The property is held Freehold. Tenancy The property is let in its entirety to Mercer Limited for a term of 25 years from the 25th March The lease expires on 24th March The property is let on a full repairing and insuring lease, and is subject to five yearly upward only open market rent reviews. The current passing rent is 451,000 per annum, which equates to psf, with half rate on the reception area.

5 LEATHERHEAD OFFICE PARK M25 LEATHERHEAD RAIL STATION MOLE BUSINESS PARK TOWN CENTRE RIVERSIDE COURT

6 Covenant Information Mercer is the global leader for trusted and related financial advice and products and services. The principal activities of the company are to enhance the financial and retirement security, health, productivity and employment relationship of the global work force. As a wholly owned subsidiary of Marsh and McLennan Companies Inc, Mercer has more than 18,000 employees servicing clients in over 186 cities in 40 countries and territories worldwide. The company has 15 offices in the UK, including all the major regional cities. We set out below the most recent accounts for the company: Date of Accounts 31/12/ s 31/12/ s 31/12/ s Turnover 318, , ,892 Pre tax profit 72,925 72,511 84,023 Net Worth 301, , ,673 Further information on the company can be found at Occupational Office Market Leatherhead is an established office location within the south west M 25 region, with a total stock of approximately 2.7m sq ft. Leatherhead s office market is focused on the edge of the town centre, with the majority of office accommodation found either on the Leatherhead Business Park, or the adjoining Randalls Business Park located to the west of the town centre. Total availability in Leatherhead currently stands at circa 80,000 sq ft reflecting a low vacancy rate of sub 3%, of which only some 10,000 sq ft would be considered as Grade A accommodation. An additional 19,722 sq ft has recently been refurbished at Opus II, and has been launched this year at a quoting rental of psf. Leatherhead has witnessed a number of lettings over the last 12 months as displayed in the table below: Address Leatherhead House, Station Road Tenant Area (sq ft) Rent (per sq ft) Sembcorp 3, Kings Court,Kingston Road NGS Secure 13, Leatherhead House, Station Road Leaming Tree International 14, Hamilton House, Regent Park, Kingston Road Russell House, Regent Park, Kingston Road Western Digital Ltd 11, Halliburton 10, Lease Term (Break) 5 years (2 years) 10 years (7 years) 10 years (5 years) 10 years (6 years) 5 years (2 and 4 years) Date March 2011 March 2011 March 2011 January 2012 March 2012

7 Flood Assessment The Environment Agency s map shows that Riverside Court falls within the outline of an area shown to have only a 1% chance of flooding from rivers in any given year. This is classified as Moderate which is defined as the chance of flooding in any year is 1.3% (1 in 75) or less, but greater than 0.5% (1 in 200). The finished floor level of the property is approximately 750 mm above the external ground level to alleviate any potential risk of flooding. VAT We understand the property is elected for VAT, and therefore the purchase will be undertaken by way of a TOGC. Investment Proposal We are seeking offers in excess of 3,200,000 (Three Million, Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. An acquisition at this level reflects a net initial yield of 13.32% after purchaser s costs of 5.8%. This represents a net capital value of 175 per sq ft. For further information or to arrange a viewing please contact:- Antony Leech Tel: Mob: antonyleech@tudortoone.com Rob Tudor Tel: Mob: robtudor@tudortoone.com Jon Mcgloin Tel: Mob: jonmcgloin@tudortoone.com

8 SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT MISREPRESENTATION ACT 1967 TUDOR TOONE LLP, FOR ITSELF AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT: THESE PARTICULARS DO NOT CONSTITUTE, NOR CONSTITUTE ANY PART OF, AN OFFER OR CONTRACT. TUDOR TOONE LLP AND ITS MEMBERS ACCEPT NO LEGAL RESPONSIBILITY FOR ANY STATEMENT OR REP- RESENTATION WHETHER WRITTEN, ORAL OR IMPLIED OR WHETHER CONTAINED IN ANY ADVERTISEMENT PARTICULARS OR OTHER MATTERS ISSUED OR ANY CORRESPONDENCE ENTERED INTO BY THEM AND WHETHER MADE IN ANY ANTECEDENT PRESENT OR SUBSEQUENT ENQUIRIES OR NEGOTIATIONS. NEITHER TUDOR TOONE LLP NOR THEIR PRINCIPALS, MEMBERS, AGENTS, SERVANTS OR REPRESENTATIVES HAVE ANY AUTHORITY WHATSOEVER TO MAKE OR GIVE ANY REPRESENTATION OR WARRANTY WHATSOEVER WHETHER WRITTEN OR IMPLIED IN RELATION TO THIS PROPERTY. ANY INTENDING PURCHASER MUST SATISFY HIMSELF BY INSPECTION OR OTHERWISE AS TO THE CORRECTNESS OF ANY ANTECEDENT PRESENT OR SUBSEQUENT STATEMENTS OR REPRESENTATIONS, AND SHOULD NOT RELY UPON THE SAME UNLESS HE HAS SATISFIED HIMSELF ACCORDINGLY. UNLESS OTHERWISE STATED ALL PRICES AND RENTS ARE QUOTED EXCLUSIVE OF VALUE ADDED TAX (VAT). ANY INTENDING PURCHASERS OR LESSEES MUST SATISFY THEMSELVES INDEPENDENTLY AS TO THE INCIDENCE OF VAT IN RESPECT OF ANY TRANSACTION. SUBJECT TO CONTRACT & EXCLUSIVE OF VAT. TUDOR TOONE LLP IS A LIMITED LIABILITY PARTNERSHIP REGISTERED IN ENGLAND AND WALES WITH REGIS- TERED NUMBER OC REGISTERED OFFICE: 41/43 MADDOX STREET LONDON W1S 2PD. DETAILS PREPARED FEBRUARY MAY