UNIT 2 BRUNEL WAY Segensworth East, Fareham, Hampshire PO15 5TX INVESTMENT SALE
Investment Summary Fully let detached industrial/warehouse premises in close proximity to the M27. Regional Headquarters for Crown Records Management Limited. The unit provides a total of 38,618 sq ft (3,587.69 sq m) GIA. The premises benefits from a low site coverage Potential for rental growth. Short supply of units in excess of 30,000 sq ft on the South Coast. Low capital value of 75 per sq ft. Seeking offers in excess of 2,900,000 plus VAT for our client s long leasehold interest. An offer at this level would reflect a net initial yield of 7.33% and an anticipated reversionary yield of 8.04% after deducting purchaser s costs at 5.8%.
To Portsmouth UNIT 2 BRUNEL WAY M27 M27 Jct9 Barnes Wallis Road A27 Barnes Wallis Road Segensworth Road Segensworth Roundabout Southampton Road A27
Location Description Fareham is one of the M27 s most established commercial centres, approximately 13 miles to the south east of Southampton and 8 miles to the north west of Portsmouth. The town is served by Junctions 9, 10 & 11 of the M27 motorway, which links Southampton to Portsmouth as well as offering easy access to the A3(M) providing a direct passage to London and the M25. The town benefits from a regular main line railway service to London (Waterloo) with a journey time of approximately 1 hour and 35 minutes and is within close proximity to Southampton International Airport. Situation The unit was constructed in 1989 and comprises a detached, purpose built warehouse unit of steel portal frame construction with profile steel clad elevations. The warehouse benefits from an internal eaves height of approximately 11 metres as well as electronically operated steel roller shutter doors. There is two storey office accommodation contained within the front elevation of the building. This provides administrative offices and associated ancillary areas. Externally the property benefits from a secure serviced yard to the rear which contains additional ancillary accommodation with a vehicle wash. There is separate car parking to the front providing space for approximately 28 cars. The site extends to approximately 2.8 acres, which provides a low site coverage of approximately 31%. The property is located on Brunel Way, within the heart of Segensworth East Industrial Area, and in very close proximity to Junction 9 of the M27. Segensworth East forms part of the larger Segensworth commercial area, one of the primary industrial locations in Hampshire with established business occupiers including, Makro, CooperVision, Palmer & Harvey, Meggitt, Lloyds TSB, Scania and Estee Lauder. The area also benefits from two hotels; Premier Inn and Holiday Inn and the recently regenerated Whiteley Shopping Centre with occupiers including M&S and Tesco. Solent Business Park is also accessed off Junction 9 to the north and is an established office location with major occupiers including Zurich, NATS, Regus, Specsavers, Hampshire Police and Lokheed Martin. M40 Oxford A34 Reading M4 Newbury A338 M3 A34 Basingstoke A36 Salisbury Winchester Shaftesbury Southampton A3 M27 A354 FAREHAM Portsmouth Poole Bournemouth M25 London Heathrow M25 Guildford Brighton A27
Accommodation Tenant Covenant The subject property provides the following accommodation: Area Sq m Area Sq ft Ground Floor Offices 112.38 1,210 First Floor Offices 112.38 1,210 Fork Life Truck Area 39.94 430 Warehouse 3,322.99 35,768 TOTAL 3,587.69 38,618 Tenure The property is held on a long lease from Hampshire County Council for a term of 125 years from 20th June 1989 at a peppercorn rent without review. There are approximately 99 years unexpired. Tenancy The property is let on full repairing and insuring terms incorporating an upward only rent review as follows: Crown Records Management Limited (SC162101) Crown Records Management was established as a division of the Crown Worldwide Group in 1983 and currently operates from 19 facilities throughout the UK. In the latest accounts for the year ending December 2013, the company reported the following financial information: The Graydon Rating is 4B good with low risk. Crown Worldwide Holdings Limited The lease is guaranteed by Crown Worldwide Holdings Limited, which provides strategic Assignment Management Services and complete Relocations for multinational companies and government organizations. It operates in nearly 60 countries with offices in more than 265 locations, employing approximately 1,200 employees. Market Commentary December 2013 (000) December 2012 (000) December 2011 (000) Turnover 21,595 21,163 20,255 Profit (290) 866 (815) Tangible Net Worth (32,170) (33,644) (36,201) Tenant Guarantor Term Crown Records Management Ltd Crown Worldwide Holdings Ltd 10 years from 24.01.10 Rent Review Lease Expiry Rent (per annum) psf psm 24.01.15 23.01.20 225,000 pa 5.83 62.75 The South Coast industrial/warehouse market is experiencing an encouraging level of occupier activity. As with the wider South East region, the South Coast is experiencing a shortage of modern detached industrial/warehouse units, with only one unit over 30,000 sq ft currently available along the M27 corridor. The Landlords have served notice at the capped rent of 247,500 pa ( 6.47 psf) for the 2015 rent review. There is a Telecoms mast located in the north west corner of the site which was previously sub-let to O2 (UK) Limited. We understand the sub-lease expired in January 2010 and the sub-tenant is effectively holding over. Due to the level of occupier activity and the lack of supply, developers and institutions are now looking at the region with a view to speculatively constructing units of between 30,000 and 100,000 sq ft with rents likely to be well in excess of 8 psf. The region has experienced rental growth on modern industrial/warehouse units that have become available in the region. Examples include Unit 6 Kites Croft, which was let at a rental of 6.50 per sq ft to City Link and has been re-let to Estee Lauder at a rent of 7.50 per sq ft and Stock Park Eastleigh was originally let to Russ Berrie at 6.50 per sq ft and has been re-let to DHL at 7 per sq ft.
EPC The property has an energy performance rating of D with a score of 84. The certificate is available on request. VAT All prices, premiums and rents etc. are quoted exclusive of VAT at the prevailing rate. Proposal We have instructions to seek offers in excess of 2,900,000 (Two Million, Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT for our client s freehold interest. An offer at this level would reflect a net initial yield of 7.33% and an anticipated reversionary yield of 8.04% after deducting purchaser s costs at 5.8%. This would reflect a low capital value of 75 per sq ft. Viewing & Further Information For further information, please contact: Jerry Vigus jvigus@lsh.co.uk T: 023 8020 6111 Sarah Monk smonk@lsh.co.uk T: 023 8024 9180 5 Town Quay Southampton SO14 2AQ Misrepresentation Act 1967: Lambert Smith Hampton for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither Lambert Smith Hampton nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. All maps and plans are for indicative purposes only. Lambert Smith Hampton: March 2015 Produced by Barbican Studio: +44(0) 207 634 9574