HIGH WYCOMBE SWORD HOUSE, TOTTERIDGE ROAD, HP13 6DG

Transcription

1 LONG INCOME OFFICE INVESTMENT LET TO ENERGISER GROUP PLC FOR A FURTHER 83 YEARS HIGH WYCOMBE SWORD HOUSE, TOTTERIDGE ROAD, HP13 6DG

2 INVESTMENT CONSIDERATIONS A rare opportunity to acquire a single let office building let to the undoubted covenant of Energiser Group PLC (5A1 covenant) for a further 83.4 years. Strong town centre location adjacent to the mainline railway station and in close proximity to all town centre amenities. 4 Wycombe Abbey School Wycombe Hospital Buckinghamshire New University Eden Shopping Centre The Chiltern Shopping Centre Sainsburys Cineworld Comprising 46,207 sq ft over ground, basement and six upper floors. Wycombe Swan Theatre Large site with excellent parking provision of 123 spaces (1:376 sq ft). Held long leasehold from Wycombe Borough Council years unexpired at ground rent of 13,250 per annum. High Wycombe Station 4 Passing rent of 425,000 per annum reflecting a low rate psf of only Net income 411,750 per annum. SWORD HOUSE The property is the UK headquarters for Energizer Group. Offers sought in excess of 6,450,000 (six million four hundred and fifty thousand pounds), subject to contract and exclusive of VAT. A purchase at this level represents a net initial yield of 5.99% and equates to a capital value of 140 per sq ft. HIGH WYCOMBE SWORD HOUSE, TOTTERIDGE ROAD

3 LOCATION High Wycombe is the largest town in Buckinghamshire located approximately 16.5 miles (26 km) south of Aylesbury, 32 miles (51 km) south east of Oxford and 28 miles (46 km) north west of central London. Road communications to the town are strong with Junctions 3 and 4 of the 0 motorway situated approximately 2.5 miles (4.0 km) to the south, providing excellent access to the M25 and Central London. The 4 Marlow bypass provides a dual carriageway link from Junction 4 of the 0 motorway to Junction 8/9 the motorway via Maidenhead. High Wycombe is a popular commuter town and is well served by frequent train services into Central London (Marylebone and Paddington) with a fastest journey time of 27 minutes. Furthermore, Heathrow Airport is located approximately 19 miles (30 km) to the south east and Luton Airport is 36 miles (57 km) to the north east. High Wycombe has a growing population with an increase of 13% recorded between 2001 and The population of the town is considered highly affluent with 36% classified within the most affluent AB social groups compared to the UK national average of 13% (Census 2011). A34 13 A34 Oxford Abingdon Milton Didcot Compton Hermitage A4142 Thatcham Beenham 0 8 Wellingford Bradfield 12 7 Woodcote Long Crendon 0 Watlington Thame 11 6 Reading A418 Haddenham 5 Chinnor A329(M) Stoke Mandeville Princes Risborough Hambleden Marlow Henleyon-Thames Woodley HIGH WYCOMBE Wokingham 4 4 4(M) Crowthorne Aston Clinton Great Missenden Amersham A418 A355 Burnham Maidenhead Bracknell Hazlemere Tring Beaconsfield Wooburn Green Windsor Chesham 6 M3 Hemel Hempstead Berkhamstead Chorleywood A413 M25 Gerrards Cross Slough Egham 16 1A M B A41 19 Staines Watford Rickmansworth Uxbridge 4 4A HEATHROW A4 1 3 Weybridge A41 5 Hayes M1 Bushey South Oxhey Harrow A4 Hounslow St Albans 2 4 Hatfield 1 Welwyn Garden City Potters Bar LONDON Mitcham A10 Croydon 3 SITUATION Tadley Camberley The property is situated on the south side of Totteridge Road less than five minutes walk from all town centre amenities including the Eden and Chiltern Shopping Centres. The site borders the railway line and High Wycombe station with the entrance located 300m to the west. Totteridge Road leads east from Amersham Hill, the main 4 which provides easy access to the and 0 via the town centre. OXFORD RD EDEN SHOPPING CENTRE ARCHWAY LILY S WALK FROGMOOR TOWN CENTRE ABBEY WAY PROIRY RD CASTLE ST CORPORATION ST HIGH ST PRIORY AVE 4 AMERSHAM HILL TOTTERIDGE RD BIRDCAGE WALK SWORD HOUSE TOTTERIDGE RD High Wycombe SUFFIELD RD BUCKINGHAMSHIRE NEW UNIVERSITY QUEEN ALEXANDRA RD QUEEN VICTORIA RD EASTON ST ABBEY WAY WYCOMBE HOSPITAL 4 TO 0 LONG INCOME OFFICE INVESTMENT OPPORTUNITY LET TO ENERGISER GROUP PLC

4 DESCRIPTION The property comprises a mid 1970 s office building which extends to 46,207 sq ft over ground, basement and six upper floors. The property benefits from a dedicated reception on the ground floor and two 13 person passenger lifts. Within the last five years, the first and third floors have been refurbished which included a replacement of the perimeter central heating system with air conditioning, new carpeting and suspended ceilings with recessed fluorescent strip lighting. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following net internal areas: Floor Use Area (sq ft) NIA Area (sq m) NIA Sixth Office 6, Fifth Office 5, Fourth Office 6, Third Office 6, Second Office 6, First Office 6, Ground Office 5, Basement Storage 4, TOTAL 46,207 4,293.0 The property sits on a site of acres providing car parking for 123 vehicles, equating to an excellent ratio of 1:376 sq ft. An assignable area reference report prepared by Lane & Frankham is available in the Lewis Ellis dataroom. EPC The property has an EPC rating of 86 and a score of D. A copy of the EPC is available in the Lewis Ellis dataroom. HIGH WYCOMBE SWORD HOUSE, TOTTERIDGE ROAD

5 TENURE The property is held long leasehold from High Wycombe District Council on a lease commencing on 1st August 1971 and expiring on 31st July The current passing rent is 13,250. The ground rent is reviewed from an original base of 3,000 per annum in proportion to the uplift in the rental value of the building (as defined). The most recent review (August 2015) resulted in the ground rent being set at approximately 3.1% of the passing rent. There are further reviews in August 2036, August 2057 and August TENANCY The whole of the property is let on an FRI lease which was assigned from Wilkinson Sword Limited to Energizer Group PLC in The term of the lease is from 1st August 1971 to 28th July This provides an unexpired term of 83.4 years. The current passing rent is 425,000 equating to 9.20 per sq ft with the rent reviewed every seven years. The next rent review is in February All of the building, apart from the basement storage, has been sub-let as per the following schedule:- Floor Sub-Tenant Start Date Ground Floor, First Floor, Second Floor and Third Floor Fourth Floor and Fifth Floor Sixth Floor Wilkinson Sword Limited (company number ) Republic Technologies (UK) Limited (company number ) Republic Technologies (UK) Limited (company number ) In Solicitors Hands. Rent to be pro rata to head lease. Lease Expiry Date 21 July June July June July 2099 Republic Technologies have sub underlet the Sixth Floor as follows: Sixth Floor APM Group Limited (company number ) 01 March Feb 2025 Rent per annum ( ) Break Date - None 121, ( psf) 60, ( psf) 72,000 ( psf) None None 24 March 2020 (6 Months Notice) TENANT S COVENANT Energizer Group PLC is a manufacturer of batteries and torches with operations in more than 40 locations and distribution in more than 140 countries across the world. The ultimate parent is Edgewell Personal Care (USA) and their UK headquarters is at Sword House. Energizer Group PLC has a Dun and Bradstreet rating of 5A1 representing minimal business risk and has reported the following results for the past three years: Year Ending 30 Sept Sept Sept 2012 Turnover 53,060 53,592 48,079 Pre-Tax Profit 4,140 3,291 3,267 Tangible Net Worth 35,879 34,333 30,716 Net Current Assets 34,952 31,317 28,365 Wilkinson Sword Limited is a wholly owned subsidiary of Energizer Group Plc and has a Dun and Bradstreet rating of 2A1 representing minimal business risk. It has reported the following results for the past three years: Year Ending 30 Sept Sept Sept 2012 Tangible Net Worth 5,643 5,643 5,643 Net Current Assets 5,643 5,643 5,643 Republic Technologies (UK) Limited is involved in the design, manufacture and international distribution of accessories for smokers. The company has a Dun and Bradstreet rating of 2A1 representing a minimal risk of business future. It has reported the following results for the past three years: Year Ending 31 Dec Dec Dec 2012 Turnover 35,221 36,161 38,824 Pre-Tax Profit 3,456 2,193 5,519 Tangible Net Worth 5,475 6,813 8,145 Net Current Assets 4,101 5,343 6,518 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of a Going Concern (TOGC). LONG INCOME OFFICE INVESTMENT OPPORTUNITY LET TO ENERGISER GROUP PLC

6 DATA ROOM There is a Lewis Ellis dataroom for the property which contains a copy of the lease, head lease title plan, area referencing report and EPC. Access to it can be obtained via the current sales page on the Lewis Ellis website A full legal dataroom will be made available in due course. PROPOSAL We are seeking offers in excess of 6,450,000 (six million, four hundred and fifty thousand pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.99%, after deduction of the usual purchaser s costs of 6.64%, equating to a low capital value of 140 per sq ft. FURTHER INFORMATION Should you require further information or wish to view the property please contact either: David Kos Tel: Mob: dkos@lewisellis.co.uk Tony Burling Tel: Mob: tburling@lewisellis.co.uk Simon Lewis Tel: Mob: slewis@lewisellis.co.uk HIGH WYCOMBE SWORD HOUSE, TOTTERIDGE ROAD, HP13 6DG Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the 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 or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: March 2016.