Information Memorandum for the sale of 2A Rodborough 1 Rd › PDFs › 12A_RodboroughRoad_IM-web.pdf · Plumbing $5,000.00 Pest Control $1,800.00 Garden $18,000.00 Security $7,750.44

0112A Rodborough Rd – April 2012 IM Document

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Information Memorandum for the sale of

12A Rodborough RdFrenchs Forest NSW


12A Rodborough Road, Frenchs Forest

High quality office & warehouse investment

For Sale by expressions of interest Closing Thursday 31 May 2012

7,286sqm + 179 car spaces

Major tenant Integrated Technology Services

Passing income $900,950pa net approx.

Potential to add value through further leasing

Information Memorandum


Introduction ................................................................... 01

Executive Summary ....................................................... 02

Location ........................................................................ 03

Description .................................................................... 04

Lease Summaries .......................................................... 05

Financial Summary ........................................................ 07

Investment Summary ..................................................... 08

Sale Process ................................................................. 09

Disclaimer ...................................................................... 09

Annexure 1 – Tenancy Schedule .................................... 10

Contents

01 12A Rodborough Rd – April 2012 IM Document

We are pleased to offer for sale by expressions of interest two excellent investments in the hi-tech business area of Frenchs Forest north of Sydney. The properties are on adjoining sites with separate title and can be sold individually or in one line.

12A Rodborough Road comprises a high quality office building plus 5 warehouse units. Total area is approximately 7,286sqm with 179 car spaces. The major tenant is Linfox owned Integrated Technology Services which has recently taken an additional 1,250sqm of offices and now occupies 50% of the building on leases running to 2017.

The property has a current income of approximately $900,950pa net and an estimated income fully leased of $1,575,000pa net.

� Office & warehouse complex

� 6m clearance warehouse

� 61% occupied

� Passing Income $900,950pa

� 7,286sqm + 179cars

� High quality offices on 3 levels

� WALE of 2.8yrs (By Income)

� Potential income $1,575,000pa

Separate Information Memorandum is available for the adjoining property 12 Rodborough Road. This comprises a 3 level office building of approximately 2,774sqm plus 100 car spaces, fully leased to Channel Nine Australia, until 2020 with a further 10 year option. Channel Nine has made a substantial investment in fitting out the property as their National Playout Centre.

The net income is approximately $658,000pa rising by 1 October to approximately $684,000pa

� 3 Level office of 2,774sqm

� Leased to 2020 + 10 yr option

� WALE of 8.25yrs (By Income)

� 100% Leased Channel Nine

� Income $658,325pa net approx.

� Major expenditure by tenant

If purchased together 12 & 12A Rodborough Road offers the following investment profile:

� 2 buildings totalling 10,060sqm

� ITS occupy 3,657sqm – on leases to 2017 + 5 year option

� 72% leased overall

� Passing income $1,559,275pa net

� 65% office / 35% warehouse

� Channel Nine occupy 2,774sqm on leases to 2020 + 10 year option

� Overall WALE 4.5yrs by income

� Estimated income fully leased $2,200,000pa net

Expressions of interest to purchase the above properties, either together or individually close 4.00pm Thursday 24 May 2012.

We look forward to your further interest.

Hartigan Bolt 02 9955 9211

David Bolt 0439 032 008 [email protected]

Chris Hartigan 0410 304 496 [email protected]

Jones Lang LaSalle 02 9938 2100

Martin O’Brien 0402 424 767 [email protected]

Introduction

0212A Rodborough Road – April 2012 IM Document

Property 12A Rodborough Road, Frenchs Forest

Description ▪ Mixed office (52%) and warehouse (48%) complex

▪ 5 Warehouse units on ground level with 6m clearance and access via steel roller shutter doors

▪ 3 floors of modern air-conditioned offices on levels 1 to 3 served by 2 passenger lifts

Areas (Approximate)

L3 Office 1,250.0sqm ITS

L2 Office 1,250.0sqm Vacant

L1 Office 1,306.0sqm ITS

Sub Total 3,806.0sqm

W1&2 Warehouse 1,101.0sqm ITS

W3 Warehouse 774.4sqm Vacant

W4 Warehouse 802.4sqm Telectran

W5 Warehouse 802.5sqm Vacant

Sub Total 3,480.3sqm

Total 7,286.3sqm

Parking 179 spaces – 118 secure spaces at basement and 61 on grade

Site Site area 8,725sqm

Zoned G4 Rodborough Road – Warringah LEP 2000

Leases Linfox owned Integrated Technology Services (ITS) occupy 50% of the building. ITS lease 2 levels of offices plus warehouse 1 & 2 for a term expiring 3 April 2017.

Telectran International occupy warehouse 4 on a lease expiring 30 April 2013.

Income Approximately $900,950pa net passing.

Estimated income fully leased $1,575,000pa net.

NAberS Zero Star NABERS Energy Rating

Sale Details Expressions of interest close 4.00pm Thursday 31 May 2012

Executive Summary


Location

The property is located on Sydney’s North Shore approximately 18kms north of the Sydney CBD and close to Sydney’s Northern Beaches.

Frenchs Forest has a large hi-tech business district with major occupiers including Del Computers, Miele, Ricoh, Dow Chemicals and Pharmaxis.

The property is on the north side of Rodborough Road accessed from Warringah Freeway via Allambie Road.

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Indicative location


12A Rodborough Road comprises a mixed office and warehouse complex totalling 7,286sqm set back from Rodborough Road on a large landscaped site of 8,725sqm with 118 secure car spaces and 61 on grade.

The building provides 5 ground floor warehouse units with 6m internal clearance accessed via steel roller shutter doors. The warehouse units each have loading access from the driveway. Internally they provide good clear storage and distribution space.

The office building which is positioned to the front of the site is accessed via automatic glass doors which open to the office foyer and the 2 passenger lifts which serve all floors plus the basement car par.

The offices are high quality with large 1,250sqm / 1,300sqm floor plate and have windows on all sides providing excellent natural light.

Areas

Level Area Occupier

Level 3 1,250.0sqm ITS

Level 2 1,250.0sqm Vacant

Level 1 1,306.0sqm ITS

Total 3,806.0sqm

Warehouse

Level Area Occupier

W1 & 2 1,101.0sqm ITS

W3 774.4sqm Vacant

W4 802.4sqm Telectran Int

W5 802.5sqm Vacant

Total 3,480.3sqm

Nabers

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Description


Major occupier Integrated Technology Services Pty Ltd (ITS) is owned by Linfox. ITS specialise in the maintenance of ATM’s and other technology for banks, retailers and computer companies – source www.i-t-s.net.au

ITS has recently expanded by taking the whole of level 3 and now occupy 50% of the building.

A summary of some of the lease terms is set out below but purchasers will be provided with copies of all leases and must rely on their own enquiries.

ITS Lease 1

Area Level 1 offices & Warehouse 1 & 2

Lessee Integrated Technology Services Pty Ltd

Commencement 4 April 2006

Expiry 3 April 2017

Option 5 Years

Outgoings Paid by the lessee

Rent See tenancy schedule – Annexure 2

Reviews Greater of CPI or 3%

Bank Guarantee 3 months rent

Lease Summaries


ITS Lease 2

Area Level 3 offices

Lessee Integrated Technology Services Pty Ltd

Commencement 1 March 2012

Expiry 3 April 2017

Option 5 Years



Reviews CPI

Bank Guarantee 3 months gross rent

Telectran International – www.telctran.com occupy warehouse unit 4 on the following outline lease terms:

Area Warehouse 4

Lessee Telectran International Pty Ltd

Commencement 1 May 2008

Expiry 30 April 2013



Reviews 3%

Bank Guarantee 3 months gross rent

There are various leases in place with telco’s for roof top aerials and equipment. Summary details are contained in the tenancy schedule in Annexure 2 and copies of the leases will be supplied for due diligence.

Income Outgoings Budget 2011/12

Office Rents $613,593

Outgoings Recovered Offices

$180,505

Warehouse Rents $272,128

Outgoings Recovered Warehouse

$66,619

Car Park Income $87,500

Roof Top Income $71,207

Total Income $1,291,552

Less Budgeted Outgoings Offices

$268,791 $70.62psm

Less Budgeted Outgoings Warehouse

$121,811 $35.00psm

estimated Current Net Income

$900,950

Potential Income Fully Leased – Assuming

L2 Offices @ $236psm net

$295,000

Outgoings $88,275

Warehouse 3 @ $150psm net

$116,160

Outgoings $27,104

Warehosue 5 @ $150psm

$120,375

Outgoings $28,088

Sub Total $675,002

Estimated Net Income Fully Leased

$1,575,952

Council Rates $21,855.82

Water Rates $3,535.28

Water Usage $7,444.32

Land Tax $82,528.71

Sub Total Statutory

Insurance $13,135.50

A/C Contract $9,743.58

A/C R&M $18,849.40

Cleaning $15,540.00

Window Cleaning $7,590.00

Electricity $67,000.00

Fire Protection $16,090.00

Lifts $22,900.00

Electrical Repairs $5,000.00

Repairs & Maintenance $12,000.00

Lights & Emergency Lighting

$13,000.00

Plumbing $5,000.00

Pest Control $1,800.00

Garden $18,000.00

Security $7,750.44

Auto Door $5,885.00

Building Supervisor $12,000.00

Management Fees $20,901.39

Misc $3,052.00

Total $390,601.44

Apportioned As Follows

Warehouse – 3,480.3sqm $35.00psm Fixed

$121,810.50

Offices – 3,806.0sqm $70.62psm

$269,790.94


Financial Summary

12A Rodborough Rd – April 2012 IM Document 08

12A Rodborough Road offers some of the best office and warehouse space available in Frenchs Forest. The combination of easily accessible warehouse with high quality offices is ideally suited to the market and has been instrumental in securing the growing occupation of ITS.

As an investment 12A Rodborough Road offers the following features:

� Impressive office and warehouse building of 7,286sqm + 179 car spaces

� 52% office and 48% warehouse

� High quality large floor plate offices with excellent natural light

� 5 modern warehouse units with 6m internal clearance

� Major tenant Linfox owned Integrated Technology Services occupy 50%

� Passing income approximately $900,950 net

� Estimated income fully leased $1,575,000pa net

If 12A Rodborough Road is purchased together with 12 Rodborough Road the combined property will offer the following investment features:

� 2 buildings totalling 10,060sqm + 279 car spaces

� 65% office and 35% warehouse

� High quality offices

� Modern high clearance warehouse

� Major tenants ITS 36% and Channel Nine 28%

� 4.5 year WALE (By Income)

� 72% leased

� Passing income approximately $1,559,275pa net

� Potential income approximately $2,200,000pa net

Investment Summary


12 & 12A Rodborough Road are being offered for sale by expressions of interest (EOI) closing at 4.00pm, Thursday 31 May 2012. EOI’s may be submitted for the properties individually or in one line.

Expressions of interest must be submitted in writing to the vendor’s agents and should include:

� Full details of the purchaser / company

� Purchase price

� Timing for exchange and settlement

� Any conditions / due diligence requirements

� Confirmation that funding is in place

� Solicitors details

Due diligence material will be available to interested parties upon request and will include copies of leases, sale contract, plans, Nabers rating. Separate Information Memorandum and due diligence information is available for 12 Rodborough Road.

All inspections must be made by prior appointment with the vendor’s agents.

Hartigan Bolt 02 9955 9211 L11, 75 Miller Street North Sydney 2060

David Bolt [email protected]

Chris Hartigan [email protected]

Jones Lang LaSalle 02 9938 2100 1 Dale Street Brookvale 2100

Martin O’Brien [email protected]

Disclaimer

This report has been prepared by Hartigan Bolt Pty Ltd and Jones Lang LaSalle for general information purposes only and does not make any warranties or representation in relation to the property. This document does not constitute a contract or offer to sell.

No warranty is given as to accuracy, completeness or currency and no responsibility is accepted for any errors or omissions. This report has been prepared using information provided by sources other than Hartigan Bolt and Jones Lang LaSalle and may be based on assumptions. The report may include material and information that has been passed on by the registered owner to Hartigan Bolt or Jones Lang LaSalle. Hartigan Bolt and or Jones Lang LaSalle are merely passing on such information and cannot guarantee its accuracy.

The report may include certain statements or representations including descriptions, dimensions and financial details. Any such statements or representations must not be relied upon as statements or representations of fact and purchasers must rely on their own enquiries, investigations and inspections.

Statements containing estimates or projections of past or future performance are given as opinions only and may be based on assumptions which are not expressly stated.

This report is provided for the recipient only and must not be passed on or copied without the prior approval of Hartigan Bolt and Jones Lang LaSalle.

Sale Process


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Annexure 1

Tenancy Schedule

Annexure 1 – Tenancy Schedule

12A Rodborough Rd – April 2012 IM Document11

NotesN

OTE

S

12A Rodborough Rd – April 2012 IM Document 12

© Copyright 2012 Hartigan Bolt Pty Ltd

The information contained in this publication is for guidance purposes only and must not be relied upon by purchasers or lessees. Whilst the information has been obtained from sources that are deemed to be reliable no warranty is given as to accuracy and no liability will be accepted. All descriptions, terms and areas are approximate. No guarantee is given as to the continued availability of the properties described.

Designed by Equation Corporate Design Pty Ltd. 02 9929 9800 www.equation.com.au

Hartigan bolt Level 11, 75 Miller Street North Sydney NSW 2060 Australia

02 9955 9211 www.hartiganbolt.com.au

Jones Lang LaSalle1 Dale StreetBrookvale NSW 2100 Australia

02 9938 3122 www.joneslanglasalle.com.au

Documents

Information Memorandum for the sale of 2A Rodborough 1 Rd › PDFs › 12A_RodboroughRoad_IM-web.pdf · Plumbing $5,000.00 Pest Control $1,800.00 Garden $18,000.00 Security $7,750.44