SEVERN HOUSE + RICHARD ANNAND VC HOUSE

Transcription

1 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH FULLY LET ARTIST IMPRESSION High Quality Multi-let Office Investment FOR SALE

2 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 01 INVESTMENT SUMMARY Two newly constructed, high quality office buildings located on a thriving business park, totalling 19,591 sq ft (1, sq m). Severn House is an established office building, multi-let to a range of national occupiers including Swiis Foster Care and Powerteam Electrical Services. Richard Annand VC House is fully let to Finchale Training college for a term of 15 years with 5 yearly upwards only reviews, benefiting from minimum rental increases. Finchale Training have a Dunn and Bradstreet rating of 2A1, representing Minimum Risk. Total rent passing of 274, per annum ( per sq ft average) with a WAULT of years (9.62 years to break). Adjacent to the ongoing development of a mixed use commercial estate which has demonstrated excellent take up to date. Strategic location at the interchange of the A1(M) and A690 Durham Road on a thriving business park. Attractive car parking ratio of 1:197 sq ft. We are instructed to seek offers in excess of 3,220,000 (Three Million, Two hundred and Twenty Thousand pounds), equating to a net initial yield of 8.00% after purchasers costs of 6.47%.

3 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 02 LOCATION Durham is a historic city and the economic and cultural centre of County Durham, situated in the North East of England on the River Wear. The city sits approximately 13 miles south west of Sunderland, 18 miles south of Newcastle and 22 miles north of Darlington. ARRIVA ROYAL MAIL PTS MICROCHEM SUBJECT PROPERTY MANDALE BUSINESS PARK A1 (M) DPD Durham benefits from excellent transport provisions being located in close proximity to the A690 and the A1(M) which link the city to the national road network. Rail connections are provided by Durham Railway Station which is situated on the East Coast Mainline and provides a fastest journey time to London Kings Cross of 2 hours 50 minutes. Durham Tees Valley Airport and Newcastle International Airport are approximately 25 miles south and 25 miles north of Durham respectively. Durham is well known for its world heritage sites including Durham Castle and Cathedral, attracting tourists year round. The city also hosts an internationally renowned university which is one of the UK s top 5 institutions and a member of the prestigious Russell Group. The university specialises in science, business and finance and awards degrees to over 3,000 top-flight graduates a year. The local workforce is therefore highly trained with relatively low living costs, creating an ideal environment for knowledge-based industries and start-ups. GODFREY SYRETT SOCCARENA INFINITE AIR A690 SG PETCH CATHEDRAL PARK DURHAM SKODA PREMIER INN COOPER BMW & MINI The inner city centre office market is very restricted, with the majority of space of a period nature and unable to cater for contemporary occupier requirements. As a result, take up is strong in more modern, fringe of city locations which offer greater flexibility and ease of access.

4 SEVERN HOUSE + RICHARD ANNAND VC HOUSE 03 MANDALE BUSINESS PARK, DURHAM. DH1 1TH S I T U AT I O N WEAR HOUSE RICHARD ANNAND VC HOUSE SEVERN HOUSE MULLEN STOKER HOUSE RIBBLE HOUSE Mandale Business Park is strategically located at Junction 62 of the A1(M), with access off the A690 which connects Durham City two miles to the west with Sunderland eight miles to the east. Newcastle City Centre is approximately 14 miles to the north. Mandale Business Park and the wider Belmont estate is a well established commercial area with notable occupiers including Durham and Darlington Fire Service Headquarters, Age UK Durham, BHP Law, Home Group and a number of car dealerships including BMW and Mini. The park has excellent links to all parts of the region with East coast mainline railway service to London Kings Cross and Edinburgh available at Durham city train station. The park is currently undergoing a large scale transformation, with 180,000 sq ft of new build spec industrial being developed by Mandale Group, alongside individual offices such as Severn House. Take up has been excellent, with phase 1 of the industrial scheme now approaching capacity, alongside 100% occupancy over the two office buildings. Rents of psf have been consistently achieved on all recent office lettings, with excellent growth potential as demand continues to improve.

5 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 04 DESCRIPTION The property comprises two adjacent, newly-constructed office units of steel frame construction with masonry infill, surmounted by a profiled metal clad roof. Fenestration throughout is of aluminium, double glazed construction. Full building specification is as described below: Suspended ceilings LED lighting Perimeter trunking for power and data Male, female and DDA WCs Passenger lift Reception/entrance lobby Extensive on site parking Kitchen facilities Fully carpeted DDA compliant 100MB dedicated data connection 55db sound proofing throughout

6 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 05 ACCOMMODATION The property provides 19,591 sq ft (1, sq m) Net Internal Area as detailed in the schedule below: Severn House FLOOR / SUITE SQ FT SQ M Ground / Whole 3, ,64 First / East 1, First / West 1, Second / East 1, Second / West 2, TOTAL 9, Richard Annand VC House FLOOR / SUITE SQ FT SQ M Whole 9, TENURE Severn House is held on a long lease for a term of 999 years from 8 February 2016 at a peppercorn rent without review. Richard Annand VC House is held on a long lease for a term of 999 years from 13 November 2018 at a peppercorn rent without review.

7 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 06 TENANCY The property is let on terms as detailed in the schedule below: UNIT TENANT SUITE START REVIEW BREAK EXPIRY RENT Severn House Distance Learning College & Training Ltd Ground Whole 01/06/ /06/ /06/ /05/ , Powerteam Electrical Services Ltd Part First East 19/05/ /05/ /05/ /05/ , Care Visions Part First West 01/11/2018 None None 31/10/ , Worldwide Quality Assurance Part Second East 01/11/ /11/ /11/ /10/ , Swiis Foster Care Ltd Part Second West 05/06/ /06/2022 None 04/06/ , Richard Annand VC House Finchale Training College Whole 13/11/ /11/ /11/2028 None 13/11/ ,194* TOTAL 274, *Reviews are upwards only to minimum rents of 141,058 pa in year 5 and 145,920 pa in year 10

8 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 07 FINCHALE TRAINING COLLEGE Finchale Training College is part of the Finchale Group, an independent charity and leading provider of specialist employment programmes that support people with complex barriers to employment that want to make a life change to realise their full potential. Through professional case-managed support, training and skills delivered in the community, Finchale Group have achieved a 100% record in bringing positive change to their clients, who range from armed forces personnel and their dependents, to ex-offenders. This is achieved via a network of case managers who live and work in the region, delivering tailored support including help with work skills, job searches, managing mental health issues, managing debt and finding stable housing. After 75 years of service, Finchale Group have moved from their previous facility in Pity Me to Richard Annand VC House, placing it at the heart of the community it serves. Their new home has been created with training suites, a drop-in centre and easily accessible office space that will enhance client experience and make the group fit for growth. Finchale Group is funded by the National Lottery, LIBOR Fund, Durham County Council, Department for Work and Pensions, The Soldier s Charity, Help for Heroes and Step Forward Tees Valley amongst others. Finchale Training College have a Dun & Bradstreet rating of 2A1, representing Minimum Risk. The D&B overall assessment of the company is Very Stable Condition with 0.13% probability of business failure. The new premises has been named Richard Annand VC House after North East WW2 hero Captain Dickie Annand who was awarded the Victoria Cross for an extraordinary act of heroism in May The new premises, alongside the sale of Finchale s prior Headquarters in Pity Me for residential use and a reviltalised brand has futureproofed the charity and provided a base for future expansion. As part of their relocation, Finchale Group have spent over 500,000 on state of the art technology, network systems, furnishings and high security CCTV and alarm systems.

9 SEVERN HOUSE + RICHARD ANNAND VC HOUSE MANDALE BUSINESS PARK, DURHAM. DH1 1TH 08 EPC The properties benefit from an EPC rating of 24 (A). Certificate available upon request. VAT The property has been elected for VAT and it is envisaged that the transaction will be treated as a TOGC. PROPOSAL We are instructed to seek offers in excess of 3,220,000 (Three Million, Two Hundred and Twenty Thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 8.00% after purchasers costs of 6.47%. FURTHER INFORMATION For further information or to arrange a viewing please contact: LUKE SYMONDS lsymonds@lsh.co.uk HENRY KING hking@lsh.co.uk EMILY WOOD ewood@lsh.co.uk ANDREW WILKINSON andrew@cpne.co.uk DESIGN BY: GRAFIKLEE.CO.UK