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MULTI LET SOUTH EAST OFFICE INVESTMENTUnits 3 & 4, Brittingham House, Orchard Street, Crawley, West Sussex, RH11 7AE
INVESTMENT SUMMARY• Alargeprosperousandgrowingsouth-easttown;
• ProminentlysituatedonOrchardStreetintheheartofthetowncentreandimmediatelyadjacenttoanewretailledre-generationsite;
• Asemi-detachedoffice/A2buildingextendingtoaNetInternalAreaof6,801sqft;
• Lettoadiverserangeoffourtenantswithanweightedaverageunexpiredleasetermof4.95years;
• Atotalrentpassingof£69,070perannum;
• Anumberofrecentlettings/renewalsdemonstratingstrengthofdemand;
• Freehold;
• Offersareinvitedinexcessof£720,000subjecttocontractandexclusiveofVAT.ApurchaseatthislevelwouldreflectaNIYof9.0%afterpurchaserscostsof5.80%.
LOCATIONCrawleyisoneofthelargestconurbationsinWestSussex,situatedadjacenttoLondonGatwickAirportandapproximately30milessouthofCentralLondon.CommunicationsareexcellentandthetownbenefitsfromcomprehensivetransportcommunicationwithJunctions9and10oftheM23locatedimmediatelytotheeast.ThesejunctionsprovidedirectaccesstoJunction7oftheM2511milestothenorthwhichinturnprovidesaccesstotheremainderofthenationalmotorwaynetwork.
Thetownisservedbythreemainlinerailwaystations,Gatwick,ThreeBridgesandCrawleywithafastestjourneytimetoLondonVictoriaof30minutesandtoLondonBridgeof28minutes.Theairportislocatedimmediatelytothenorthofthetownandprovidescomprehensiveshortandlonghaulairtravel,beingthesecondlargestpassengerairportintheUK.Heathrowisconvenientlylocated40milestothenorthwestviatheM25.
Crawleyhasadiverseandgrowingpopulationofapproximately106,600(Census2011)andanextensiveprimarycatchmentpopulationof477,000benefittingfromitslackofproximitytocompetingcentres.Thestrengthofthetownisdemonstratedinitslowunemploymentratewithjobseekerscurrentlyaccountingfor2.3%oftheworkingagepopulation,considerablybelowthenationalaverage.
Approximatedistancesfromthesubjectproperty:
• M23(Junction10) 2Miles• M25(Junction7) 12Miles• LondonGatwickAirport 2Miles• Brighton 26Miles• CentralLondon 36Miles• CrawleyRailwayStation 0.25Miles• Croydon 10Miles
MULTI LET SOUTH EAST OFFICE INVESTMENT
ThepropertyislocatedinaprominentpositiononOrchardStreetadjacenttoCrawleytowncentresinnerringroadandwithinwalkingdistanceofalltowncentreamenitiesandrailwaystation.
ThereisalargeNCPcarparkoppositethepropertyonPeglarWayandafurthersurfacelevelcarparkdirectlytothesouthoftheproperty.
AdjacenttothepropertyistheLandSecuritiesre-generationprojectthatcompletesinDecember2013comprisinga75,000sqftMorrisonssupermarket,threeA3unitsanda110bedTravelodge.Thisschemeformsamajorpartofthetowncentrere-generationalongwiththeareadirectlytotheeastwhichwillinvolveStanhopecreatingacomprehensiverangeofadditionalretailspaceinconjunctionwithCrawleycouncilonTheBoulevard.
Theseschemeswilltransformtheareaaroundthesubjectpropertyandre-vitalisethenorthernsectionofthetowncentre.Theaimistoimprovethetown’sretailoffertotapintotheextensiveandwealthycatchmentpopulationandcomplementthetownsexistingfacilities.TheTownCentreNorthschemeistargettedforcompletionin2013.
SITUATION
MULTI LET SOUTH EAST OFFICE INVESTMENT
LandSecurities-Morrisons/Travelodge
Key
Brittingham House
Land Securities
Stanhope Town Centre North
DESCRIPTIONThepropertycomprisesasemi-detachedtwostoreyofficeandshowroompropertywithanextensivefrontagetoOrchardStreetdividedintotwogroundfloorA2unitsandtwofirstfloorofficesuites.
EachsuitebenefitsfromselfcontainedaccessfromtheOrchardStreetfrontage.Thepropertyisbrickbuiltunderamansardflatroof.Eachunitprovidesabasicspecificationincludingcarpets,perimetertrunkingandsuspendedceilingswithrecessedstrippedlights.
ACCOMMODATIONThepropertyhasbeenmeasuredinaccordancewiththeRICSCodeofMeasuringPractice(6thedition)andextendsto6,801sqft(631.83sqm)aspertheScheduleofAccommodationandTenancies.
Thesiteisrectangularinshapeandextentsto0.03hectares(0.8acres).
TENANCY DETAILSThepropertyismulti-letto4tenantsoneffectiveFullRepairingandInsuringtermsaspertheScheduleofAccommodationandTenancies.
Thecurrentweightedaverageunexpiredleasetermis4.95yearsand3.15yearswhenaccountingforbreakoptions.
Thepropertyhasanexcellentlettinghistorywith1lettingand2renewalsinthelast8monthsdemonstratingstrongoccupationaldemand.Thecurrentpassingrenttotals£69,070perannumandthereisnovacantaccommodation.
MULTI LET SOUTH EAST OFFICE INVESTMENT
*All leases are held outside the security of tenure provisions Landlord and Tenant 1954 Act.
Unit Tenant Area sq.ft
6,801
Area sq.m
631.83
Repair Lease Start Review Date Break Date Lease Expiry Passing Rent £pa
£69,070
Rent £psf Comments
Unit3GroundFloor
Unit3FirstFloor
Unit4GroundFloor
Unit4FirstFloor
RedhillPropertyServicesLtd
HuntressSearchLtd
Zoom995Ltd
McLarenConstructionLtd
TOTALS
1,168
1,430
1,913
2,290
108.51
132.85
177.72
212.75
IRI
FRI
FRI
FRI
28Oct2008
11Apr2013
22May2013
19Nov2012
28Oct2013
N/A
22May2018
N/A
N/A
11Apr2016
22May2018
N/A
27Oct2018
10Apr2018
21May2023
18Dec2013
£19.900
£14,300
£19,030
£15,840
£17.04
£10.00
£9.95
£6.92
October2013breaknotexercised.Rentdepositof£11,752.17.
TenanthasScheduleofConditionbutisboundtoredecorateandrecarpetatexpiry.Steppedrentof£9,515until21/02/14beingtoppedupbythevendor.Rentdepositof£5,709.94.
Rentdepositof£3,960.00.
SCHEDULE OF ACCOMMODATION AND TENANCIES
Units3&4BrittinghamHousearelettofourprofessionalservicescompaniesasfollows:
TENANT FINANCIAL INFORMATION
Huntress SearchHuntressSearchareanationalfirmofrecruitmentconsultantswithofficesthroughouttheUK.Fortheyearended31stDecember2012,thecompanyreportedaturnoverof£53.08millionpre-taxprofitsof£820,532andnetassetsof£3.03million.
Zoom995 LimitedZoom995Limitedarealocalfirmofestateagentsandconveyancersandwereincorporatedearlierthisyear.
TENUREFreehold.
VATThepropertyhasbeenelectedforVATandVATwillbechargeableonthepurchaseprice.ItisthereforeanticipatedthattheacquisitionwillbetreatedasaTransferofaGoingConcern(TOGC).
EPC’sEnergyPerformanceCertificate’shavebeenpreparedandcanbeviewedinthedataroomthathasbeensetuptoassistthedisposal.
PROPOSALWeareinvitingoffersinexcessof£720,000,subjecttocon-tractandexclusiveofVAT.
Apurchaseatthislevelwouldreflectanetinitialyieldof9.0%assumingpurchaserscostsof5.80%.
Apurchaseatthislevelwouldalsoreflectareversionaryyieldof10.19%basedonouropinionofERVofthe1stfloorofUnit3oncecosmeticallyrefurbished.
CONTACTForfurtherinformationortoarrangeaninspectionofthepropertypleasecontact:
Chris Dickin [email protected] Harrison [email protected] Atkins [email protected]
Telephone: 02079352831
IMPORTANT INFORMATION
1. No description or information given by Clay Street Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Clay Street Ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy himself by inspection or otherwise as to the correctness of any information given.
Designed and produced by Diablo: www.diablodesign.co.uk November 2013
Redhill Property Services Ltd.RedhillPropertyServicesLtdarealocalfranchiseofMartin&Co,thecountrywideestateagencywithofficesthroughouttheUK.Redhillareasmallcompanyandexemptfrompublishingdetailedaccounts.
McLarenMcLarenareanationalconstructionfirmwithanextensiveongoingdevelopmentpipeline.Fortheyearended31stJuly2012,thecompanyreportedaturnoverof£375.53million,pre-taxprofitsof£6.01millionandnetassetsof£21.26million.
