INTERTEK HOUSE - gkatest.com

A MODERN HIGH SPECIFICATION WAREHOUSE / INDUSTRIAL INVESTMENT OPPORTUNITY

CLEEVE ROAD, LEATHERHEAD, KT22 7SA

INTERTEK HOUSE

• A modern high specification warehouse / industrial unit with ancillary space totalling 17,407 sq ft.

• Site area of approximately 0.54 acres, reflecting a site cover of 49%.

• Excellent motorway connections, just 1.5 miles from J9 of the M25.

• Prominently located on The Axis Centre Business Park within ¾ of a mile of Leatherhead town centre and ½ a mile of Leatherhead train station.

• Let to Intertek Testing & Certification Ltd, subsidiary of a FTSE 100 listed company.

• The tenant has comprehensively refurbished the building internally and externally.

• The unit is currently used as a specialist testing facility but can be utilised as production or last mile logistics use.

• Let for a term of 10 years from 3rd April 2017.

• Passing rent of £240,000 per annum, equating to £13.79 per sq ft overall.

• Fixed uplift in 2022 to the higher of 2.00% per annum compound or OMV.

• Car parking for 32 cars, 13 spaces next to the building and 19 allocated on the estate.

• Freehold.

• Offers are sought in excess of £3,750,000 (Three Million, Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

• A purchase at this level reflects an attractive net initial yield of 6.00%, assuming purchaser’s costs of 6.54%, and a low capital value of £215 per sq ft.

Subject to Contract.

INVESTMENT SUMMARY

INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA

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LOCATION


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Leatherhead is an affluent Surrey town located adjacent to the M25 Motorway, 18 miles south west of Central London, 11 miles north east of Guildford and 10 miles west of Reigate.

Located on the south side of the M25 motorway the town benefits from excellent transport communications with Junction 9 of the M25 motorway just 1.5 miles to the north east. The M25 motorway provides fast access to the M3 motorway to the west (14 miles), the M23 motorway to the east (12.5 miles) and the wider motorway network. Access to central London is also direct via the A24 (23 miles).

By rail, Leatherhead railway station provides regular direct services to both London Waterloo and London Victoria, both within 45 minutes. The station is within walking distance to the subject property (800m) and further provides services to Guildford and Gatwick Airport, with journey times of approximately 30 minutes and 40 minutes respectively.

The town is also excellently located for international travel, with the two leading UK airports both within 25 miles. London Gatwick Airport is situated approximately 17.5 miles to the south east of the town while London Heathrow Airport is located 24.5 miles to the north west.

SITUATION

Intertek House is prominently situated on the Axis Centre. The park provides a mixture of office, laboratory and light industrial accommodation set in an attractive landscaped environment. Tenants on the park include Cobham, Smithers Pira and RIBA. The scheme is accessed from Cleeve Road, which links to Randalls Road (A245) providing direct access to Leatherhead town centre, train station and J9 of the M25 motorway.

Adjoining the Axis Centre to the west is Leatherhead Office Park, the town’s premier office location. The park comprises several high-quality headquarters buildings set in a landscaped environment. The parks occupiers including CGI Logica, KBR and Unilever who occupy a 175,000 sq ft premises as their UK headquarters.

Axis Centre is just 1 mile north west of Leatherhead town centre which boasts a wealth of leisure and retail amenities including The Swan Shopping Centre, home to many national multiple retailers.

M25ASHTEAD

BY-PASS RD

LEATHERHEAD ROAD A24

LEATHERHEAD

BY - PASS RO

AD

A24

STATION RD B

ULL

HIL

L

K

ING

STO

N

EPSOM R

OAD

ROAD A245

A246 YOUNG STREET

A246

A243 A243

RANDALLS WAY

OAKLAWN R

OAD

OXSHOTT ROAD

BY-PASS RD

RAND

ALLS

JUNCTION 9

JUNCTION 9

RO

AD

OXS

HO

TT R

D

CLEEVE ROAD

10

104

6

99

7

78

12

13

15

16

8 9/

11

12

M25

M40

M23

M3

M4

M25

4

A329 (M)

A4

A4

A31

A24

A24

A217

A23

A205

A406

A329

A316

A40

A30

A30

A3

BASINGSTOKEREDHILL

WINDSOR

LONDON

BRACKNELL

READING

HEATHROW

GATWICK

MAIDENHEAD

3

STAINES

WEYBRIDGE

A322

A246

A3

GUILDFORD

M1HIGH WYCOMBE

5

4a

UXBRIDGE

1

1

1

1

9

LEATHERHEAD

JUNCTION 9

M25

KINGSTON ROAD

CLEEVE ROAD

A243

LEATHERHEADBUSINESS PARK

INTERTEK HOUSEAXIS CENTRE

INTERTEK HOUSE

SMITHERS PIRA

COBHAMKBR

KBR

UNILEVER

CGI LOGICA

JUNCTION 9

DESCRIPTION


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Intertek House comprises a modern warehouse unit developed in 2005.

The property benefits from the following specification:• Portal frame construction• 6.6m eaves• 3 x roller shutter doors

The space is currently fitted out with part full height warehouse and part office/laboratory accommodation at ground and first floor levels.

To the rear of the site is an additional single storey portal framed unit.

The property benefits from the right to park 32 vehicles. 13 spaces are located within the demise with the remaining 19 spaces allocated within the wider estate.

REFURBISHMENT WORKS

The Tenant has recently completed a comprehensive internal and external refurbishment of the building, to include:

• External redecoration and roof works• Internal redecoration• New reception area & additional process rooms constructed• Refurbished lift • New a/c system to the office accommodation• New ceilings and LED lights in the office accommodation • New first floor toilet block• Refurbished toilets and shower at ground floor level• New fire alarm• New intruder alarm• Refurbished heating system• New ventilation system • New carpeting throughout

ACCOMMODATION


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Floor sq ft sq m

Ground Floor 10,224 949.84

First Floor Offices 5,838 542.36

Intertek House Total 16,062 1,492

Ancillary 1,345 125

Site Total 17,407 1,617

SITE

The estate comprises a site extending to 0.54 acres, reflecting a site coverage of 49%.

TENUREFreehold.

TENANCYThe property is let for a term of 10 years to Intertek Testing & Certification Ltd from 3rd April 2017, expiring 2nd April 2027. The passing rent is £240,000 per annum, equating to £13.79 per sq ft overall. The lease is to be reviewed on 3rd April 2022 to the higher of the open market rental value or 2.00% pa annum compounded. The minimum uplift is therefore to £264,980 per annum.

There is a tenant only break option on 03/04/2022 subject to 6 months’ written notice. The tenant will benefit from an additional 3 months’ rent free if the break is not exercised.

The lease benefits from the security of tenure provisions of the Landlord & Tenant Act 1954 Part II.

Not to scale. For identification purposes only.

COVENANT INFORMATION


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Intertek Testing & CertificationCompany Number 03272281

Intertek Testing & Certification Ltd is part of Intertek Group Plc. Intertek is a multinational inspection, product testing and certification company headquartered in London, United Kingdom. Intertek Group Plc reported a turnover of £2.576bn for the year ending December 2016, is listed on the London Stock Exchange and is a constituent of the FTSE 100 index.

The organisation has more than 42,000 employees across 100 countries, in over 1,000 locations. Centred around its testing services carried out in laboratories, the group provides quality and safety assurance to industries such as construction, healthcare, food and transportation on products including batteries, accessories, apparel and chemicals.

Further information can be found at www.intertek.com

Fiscal Non consolidated

GBP (000’s)31 Dec 2016


GBP (000’s)31 Dec 2015


GBP (000’s)31 Dec 2014

Sales Turnover 11,653 12,580 14,526

Profit / (Loss) Before Taxes (997) 387 (1,034)

Tangible Net Worth (3,554) (1,457) (1,402)

OCCUPATIONAL MARKET


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Throughout the UK prime headline rents have risen regardless of unit size over the past 5 years. Limited supply in the majority of markets has driven rental growth and this is likely to continue over the short and medium term.

Leatherhead take up totalled 29,609 sq ft in 2017, constricted by the acute lack of supply, with demand remaining robust. The most recent lettings took place at Leatherhead Trade Park, with Unit 4 and Unit 6 letting to Screwfix and Saracen Datastore. These units underwent a refurbishment to a good specification prior to occupation and the lettings provide evidence of a rental uplift at the estate.

Current supply stands at just 23,000 sq ft across three units.

Date Town Address Size (sq ft) Term Tenant Rent (psf)

Oct 17 Leatherhead Unit 4, Leatherhead Trade Park, Station Road 6,363 10 yr lease. Break in yr 5. Screwfix £12.75

Aug 17 Leatherhead Unit 6, Leatherhead Trade Park, Station Road 4,384 15 yr lease. Break in yr 10. Saracen Datastore £12.77

May 17 Leatherhead Unit 3, Mole Business Park 2,800 10 yr lease. Break in yr 5. Kew Electrical £15.00

Apr 17 Leatherhead Axis Centre, Cleeve Road 16,062 10 yr lease. Break in yr 5. Intertek £13.79

Jun 16 Leatherhead Unit A, Randalls Way 13,498 15 yr lease. Break in yr 5. Howdens £11.30

Address Size (sq.ft) Quoting rent (£ psf) Comments

Unit 1 – 5 Rydon Business Centre 7,500 £12.75

Unit 3 Leatherhead Trade Park 3,800 £12.75 Tenant recently vacated. Anticipated that rent will increase if refurbished.

Unit 5-8 Mole Business Park 11,750 £12.00 Currently being marketed as an assignment of current tenant’s lease for 3 years. Anticipated that new lease direct from landlord could be achieved at £13.50psf.

Comparable Occupational Transactions

Current availability

CLEEVE ROAD, LEATHERHEAD, KT22 7SA

INTERTEK HOUSE

Misrepresentation Act. These brief particulars have been prepared as agent for our client and are intended as a convenient guide to supplement an inspection or survey. Their accuracy is not guaranteed. They contain statements of opinion and in some instances we have relied on information provided by others, you should verify the particulars on your visit to the property and the particulars do not obviate the need for a full survey and all the appropriate enquiries. Accordingly, there shall be no liability as a result of any error or omission in the particulars or any other information given. Compiled April 2018.

For further information please contact:

James Archibald 020 3362 [email protected]

Rob Bray020 7629 [email protected]

Tom Jansons 020 3362 [email protected]

The property is elected for VAT which will be payable upon the purchase price.

VAT

Further details available upon request.

ESTATE CHARGE

Intertek House has an EPC rating of B. A copy of the EPC is available upon request.

EPC

Offers are sought in excess of £3,750,000 (Three Million, Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive net initial yield of 6.00%, assuming purchaser’s costs of 6.54%, and a low capital value of £215 per sq ft.

Subject to Contract.

PRICE

Documents

INTERTEK HOUSE - gkatest.com