Bridgwater. Office Investment For Sale 18,725 sq ft (1,740 sq m) FULLY INCOME PRODUCING HOUSE

Transcription

1 Office Investment For Sae 18,725 sq ft (1,740 sq m) FULLY INCOME PRODUCING Air Conditioned Offices arranged over three foors with 86 parking spaces

2 INVESTMENT SUMMARY Basingstoke is North Hampshire s principa commercia and administrative centre, ocated approximatey 50 mies south west of London, served by Junctions 6 and 7 on the M3 motorway. Viabes Business Park is a highy regarded and we estabished business park situated 2 mies to the south west of Basingstoke town centre and features oca, nationa and internationa companies incuding; De a Rue, TayorMade/Adidas, Motoroa, Sony Broadcast, J P Morgan, Fujitsu and Capita Ltd. The property comprises a 3 storey office buiding, constructed in 2000, and extending to 18,725 sq ft (1740 sq m), measured net interna. 86 car parking spaces are provided at a ratio of 1:218 sq ft. Existing tenants are Kier Highways Limited, STERIS Soutions Limited and Openside Networks. Net income of 184, per annum. Long easehod interest with 135 years unexpired. The asking price is 2,250,000 (Two Miion, Two Hundred and Fifty Thousand Pounds), subject to contract and excusive of VAT. This price refects a yied of approximatey 7.67% assuming acquisition costs of 6.75%, and is a capita vaue of per sq ft.

3 THE PROPERTY House was constructed in 2000 and remains a modern buiding providing air conditioned offices arranged over ground and two upper foors. The buiding is understood to be a concrete framed structure with cavity brickwork eevations and doube gazed windows under a pitched sate roof. It offers 86 parking spaces with an exceent overa parking ratio of 1:218 sq ft. Internay the property incudes the foowing amenities; Fuy refurbished offices Four pipe fan coi air conditioning Fu access raised foors A recenty modernised reception area Suspended ceiings throughout Principay LG3 compiant ighting Carpeted throughout Passenger ift Toiets and shower Open pan first foor, before current occupation.

4 Viabes Roundabout A30 The Harrow Way M3 Motorway Goden Lion Roundabout Sony Broadcast Motoroa TayorMade/Adidas New Voice Media De a Rue J P Morgan ITT Capita Fujitsu Carefusion

5 LOCATION Basingstoke is a key office market aong the M3 corridor, ocated approximatey 48 mies to the south west of London. The motorway is accessed from either Junctions 6 or 7, whist the M4 at Junction 11 is within a 20 minute drive. The M25, inking to other motorway networks, is accessibe within a 30 minute drive time. Junction 6 on the M3 motorway has undergone very recent traffic fow improvement works, to great effect. Heathrow, Gatwick & Southampton airports are a within an hour s drive. By rai, the town offers a direct 45 minute trave time to London Wateroo, and other destinations. Reading s station is a 17 minute journey and offers the future benefit of the Crossrai service. A3(M) Basingstoke train station Heathrow airport 44 minutes from House (Source AA Route Panner) Town centre shopping at The Mas

6 SITUATION House is situated within the Viabes Business Park, one of the principa out of town ocations in Basingstoke, bordered by the M3 to the south. The Park itsef is some 2 mies to the south west of the town centre and is home to occupiers incuding; Sony Broadcast, Motoroa, De a Rue, Fujitsu, TayorMade/Adidas, J P Morgan and a division of Capita. The property is situated towards the southern perimeter of the Park affording prominence to Jays Cose. The Park is accessed from The Harrow Way which in turn eads to the town s Ringway system. WINCHESTER ROAD THE HARROW WAY Viabes Roundabout BASINGSTOKE WINCHESTER ROAD CHURCHILL WAY WEST THE HARROW WAY RINGWAY SOUTH JAYS CLOSE Goden Lion Roundabout Venture Roundabout GROVE ROAD CHURCHILL WAY EAST RINGWAY SOUTH New town centre Waitrose/John Lewis Festva Pace Shopping Centre Anvi Theatre

7 SCHEDULE OF AREAS The measured net interna foor areas of the property are as foows: FLOOR SQ FT SQ M Ground Foor Reception Ground Foor 5, First Foor 6, Second Foor 6, TOTAL 18,725 1, First foor (shown as open pan). VAT Uness otherwise stated, the price quoted is excusive of Vaue Added Tax (VAT). Any intending purchaser must satisfy itsef independenty as to the incidence of VAT in respect of any transaction. EPC The buiding has an EPC rating of E-106. HEAD LEASE The head ease is hed for a term of 99 years from 25 January 2001 subject to five yeary reviews with a tenant s option to extend for a further 51 years from the expiration of the term subject to six months written notice to the andord, served at any time during the ast year of the term. The ground rent is cacuated as equating to 12% of the rents received.

8 TENANCIES 1. STERIS Soutions Limited occupy the ground foor on a ease term which is due to expire on 03 Apri 2020, without further review, at a passing rent of 80,528 pa excusive. 26 parking spaces are aocated with the ease. 2. Part of the first and a of the second foor have been et to Kier Highways Limited for a term of 7 years from 10 June 2015, subject to rent review on 10 June 2020, on a fu repairing and insuring basis at an initia rent of 63,960 pa excusive rising after the first anniversary of the term to 111,960 pa excusive. The ease is subject to tenant ony break causes on 09 June 2019 and on 09 December 2020 subject to six months notice in each case. If the ease is not terminated on the second break date, the rent for the 12 month period from and incuding the second break date sha be reduced to the higher of 75,960 or 67.8% of the reviewed rent. 52 parking spaces are aocated with the ease. 3. The remainder of the first foor comprises a sma suite of 1,206 sq ft, et to Openside Networks for a term of 4 years from Apri 2016 at a rent of 16,884 per annum, without review. The suite is aocated with 8 parking spaces. TENANT COVENANT STRENGTHS Kier Highways Limited, in their accounts for the period unti 30 September 2014, posted a pre-tax profit of 16,900,000 and have a tota net worth of 15,700,000. They are described by Experian as having beow average risk and are subject to a Credit Rating of 880,000. STERIS Soutions Limited posted a pre-tax profit, in their accounts up unti 31 March 2014 of 641,097 and have a tota net worth of 5,339,050. They are described by Experian as a very ow risk company with a Credit Rating of 150,000. Openside Networks are a sma but we financed oca company. The Landord hods a rent deposit of 8,442. Open pan first foor, before current occupation.

9 MARKET COMMENTARY The office market in Basingstoke has improved significanty throughout the ast 18 months, with demand re-emerging and suppy eves having decreased by around 25-30%. Kier eased space within House eary in 2015 and New Voice Media signed a preet on 28,000 sq ft of offices at Rosaind House which is aso ocated within Viabes. In a third transaction within the business park, Capita have eased around 25,000 sq ft of offices within V3 Viabes. The town s centra business area has seen further investment from the Borough Counci and the competion of major projects with Network Rai and John Lewis/Waitrose. The motorway junction has been significanty upgraded and the Festiva Pace Shopping Centre remains one of the most successfu retai schemes competed in recent years. The improving eves of demand wi see a hardening in renta eves and good potentia for renta growth within House. The headine rents agreed on the Rosaind House and V3 ettings are reportedy at per sq ft and per sq ft. INVESTMENT PROPOSAL We are instructed to se the property for 2,250,000 (Two Miion, Two Hundred and Fifty Thousand Pounds) on ong easehod terms with existing tenancy arrangements. A purchase of the investment at this price refects a yied of approximatey 7.67% assuming purchasers costs at 6.75%. Each party woud bear their own ega costs. The price refects a capita vaue of per sq ft.

10 MISREPRESENTATION CLAUSE These particuars are beieved to be correct and, where practicabe, reasonabe steps have been taken to ensure their accuracy, however this cannot be guaranteed. They do not form part of any offer or other contract. The owner of this property does not make or give, representations or warranties in reation to this property. The Agents and its empoyees do not accept any responsibiity for information suppied to them by the owner or any third party. Any intending purchaser must satisfy itsef by inspection or otherwise as to the correctness of the particuars. A measurements are approximate. The pans in these particuars are pubished for convenience of identification ony, and athough beieved to be correct, their accuracy is not guaranteed and do not form part of any contract. VIEWING/FURTHER INFORMATION For further information or to arrange an inspection pease contact: commercia property consutants Graeme Ricketts gr@careandcompany.co.uk Richard Thomas richard.thomas@bdt.uk.com ọ