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The Drive, Great Warley, Brentwood, CM13 3FR
Well LetM25 South EastOffice Investment
Jubilee House
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Investment Summary
Excellent communications situated in a key geographical location
in the north east quadrant ofthe M25, adjacent to Junction 28.
Brentwood is one of the stronger eastern M25 markets and has
become a focus for majoroffice occupiers including Amstrad, BT,
Standard Life, BNY Mellon, The National Centre forSocial Research,
Ford Motor Company and Countryside Properties.
The property is located at the front of the Warley Hill Business
Park, one of the main officelocations in Brentwood, one mile to the
south of the town centre. Nearby facilities include a LAFitness Gym
(adjacent).
Self contained office building arranged over three floors
totalling 41,214 ft (3,830 m).
Let to Regus Business Centres (UK) Limited for a further 7.4
years with a guarantee from RegusLimited (formerly Regus Plc).
There are 184 car parking spaces providing an excellent car
parking ratio of 1:224 ft.
Brentwood is a host town for the London Olympics in 2012.
We are instructed to seek offers in the region of 9.4 million
(Nine Million Four HundredThousand Pounds), subject to contract and
exclusive of VAT for the benefit of our clientsfreehold interest. A
purchase at this level reflects a net initial yield of 8.75%,
allowing forpurchasers costs of 5.75%.
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Location
Brentwood is located in Essex, approximately 24 miles north east
of London, 12 miles southwest of Chelmsford and 10 miles north west
of Basildon.
Brentwood lies at the centre of a number of good road
communications. It is situated at thejunction of the A128 and
A1023, the principal arterial routes running through the heart of
thetown. The A1023 provides direct access to Junction 28 of the
M25, approximately 2 milesto the west and the A12 to the east. The
A128 provides direct access to the A414 to the northand the A127
and A13 to the south. The A12 dual carriageway is situated to the
east of thetown which provides access to Colchester, Ipswich and
the ports of Felixstowe and Harwichto the east and the M25 and
central London to the west.
Brentwood railway station provides a direct service to London
Liverpool Street every 10minutes with a fastest journey time of 33
minutes. All trains stop at Stratford where the newStratford
International Station is being built to serve the Olympic Village
and provide a directlink to Continental Europe. The introduction of
Crossrail will benefit Brentwood as it will beone of the key
stations east of central London. Brentwood is well positioned for
Londonsairports with Stansted (26 miles north west), Gatwick (47
miles south west) and Heathrow(56 miles west) all easily
accessible.
The mountain biking events at the 2012 Olympics will be held at
Weald Country Park,Brentwood. This event and the Olympics in
general are expected to have a positive impacton many businesses in
Brentwood and the surrounding area.
Demographics
Brentwood has a resident population of 71,600 (ONS 2007) and a
catchment population of320,386. The population is highly prosperous
with 15.4% classified as wealthy achieversby CACI compared to the
national average of 8.6%.
A30
A249
A404 (M)
A4010
A413
A418
A128
A127
A130A128
A414
A414
A13
A12
A12
A41
A355
A4
A2
M1
M1
M11
M25
A1 (M)
M4
M4
M25MAIDENHEAD
READING
SLOUGH
HIGH WYCOMBE
MARLOW
HENLEY-ON-THAMES
BRACKNELL
WOKINGHAM
WINDSOR
WOKING
AMERSHAM
AYLESBURY
HEMEL HEMPSTEAD
LONDON
BUCKSHERTS
ST. ALBANS
LUTON
DUNSTABLE
HARLOW
CHELMSFORD
ESSEX
BASILDON
BRAINTREE
WITHAM
GRAVESEND
ROCHESTER
HEATHROWAIRPORT
LUTONAIRPORT
STANSTEADAIRPORT
1
27
7
262524
1
2221A
7
8
9
10
11
2
4
5
6
7
8
20
19
18
17
1
23
4
4A
1
2
3
4
5
14
13
2
11
3
8/97
9A9B
65
154B
161A
4 3 2 1
10
11 1
2
1
543
4
3
2
1
31
30
29
28
216A
231
STEVENAGE
HATFIELD
M20
5
6
M3
M2
M25
M40 BRENTWOOD
ST JOHNS AVE
NUE
BRENTWOOD
W
ARLE
Y HI
LL
B
186
KIN
GS R
OAD
CRESCENT ROAD
C
ROMWELL ROAD M
ILTON ROAD
AVE ROAD HEADLEY CHASE
WOODMAN R
OAD
PASTORAL WAY
CHINDITS LANE
THE DRIVE
VAUG
HAN
WIL
LIA
MS
WAY
VAUG
HAN W
ILLI
AM
S WAY
MOUNT CRESCENT
SOUTH DRIVE
WHARF ROAD ST. JAMES ROAD
HUB
ERT
ROA
D
GRESHAM ROAD CORN
SLAND
WARLEY MOUNT
MYRTLE ROAD W
HARLEY M
OUN
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Q
UEEE
N S
TREE
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BRACKENS DRIVE
BRENTWOOD
JUBILEE HOUSE
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Situation
Jubilee House is situated to the front of the Warley Hill
Business Park approximately one mile to the south of Brentwood town
centre. Theproperty is located at the junction of The Drive and
Chindits Lane accessed off the B186 Warley Hill which provides
direct access to theA1023 and A128. The area comprises the main
commercial location outside the town centre and has become the
focus for major nationaland international companies. Occupiers
close by include Ford Motor Company, Ford Credit, Swift Group,
Countryside Properties andCommercial First Mortgages. The business
park location is augmented by facilities such as LA Fitness
Gymnasium, a Primary School anda cricket pitch (adjacent), and a
regular bus service (No. 73) to the rail station and town
centre.
Description
The property comprises a self contained three storey office
building, arranged in two wings around a central core area. The
property wasbuilt in the late 1980s and is of steel frame
construction with facing brick elevations beneath a pitched slate
roof. The property benefitsfrom a front and rear entrance and the
ground floor reception area includes a dual height atrium. The
property provides open plan, flexiblespace that has been subdivided
by the tenant into cellular accommodation, in line with its
business of providing serviced officeaccommodation.
The property provides highly specified office accommodation to
include:
Full accessed raised floors.
Suspended ceilings incorporating recessed lighting (with spot
lights at ground floor level).
Air conditioning (recently modified on the second floor to give
individual modular control).
Feature double height reception area, with automated doors.
Two passenger lifts serving all floors, each 13 person (975
kg).
Male, female and disabled WC facilities on each floor.
Externally, the site extends to approximately 1.9 acres (0.77
hectares) and provides 17 (visitors and disabled) car parking
spaces to thefront and a secure car park, controlled by a security
barrier, to the rear which provides a further 167 spaces. This
provides an excellent carparking ratio of 1:224 ft.
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Accommodation
The property has been measured on a Net Internal basis in
accordance with the RICS Code of Measuring Practice(6th Edition),
and provides a total of 41,214 ft (3,830 m).
DESCRIPTION ft m
Ground Floor Reception 1,332 124
Ground Floor 12,352 1,148
First Floor 13,604 1,264
Second Floor 13,926 1,294
TOTAL 41,214 3,830
TenureFreehold.
Tenancies
The property is let in its entirety on a full repairing and
insuring basis to Regus Business Centres (UK) Limited andguaranteed
by Regus Limited (formerly Regus Plc) for a term of 16 years from
22 November 2000, expiring on21 November 2016 (approximately 7.4
years unexpired). A request has been received from Regus for
assignmentto Regus Brentwood Limited with the existing tenant as
guarantor. We understand the existing guarantor, RegusLtd, can be
retained.
The current passing rent is 871,000 per annum (21.13 per ft /
228 per m), which is subject to 5 yearlyupwards only rent reviews,
the next being 1 November 2011.
The local office manager advises that until recently the
serviced offices have been circa 90% occupied. In late
May,Countryside Properties have consolidated into their
headquarters opposite, vacating part of the first floor.
Newlettings are under negotiation.
TH
E D
RIV
E
CHINDITS LANE
Number One
Jubilee House
El Sub Sta
Chindits House
Pavilion
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Tenant Covenant
Regus Business Centres (UK) Limited (2961188)
Date 31/12/2008 31/12/2007 31/12/2006() () ()
Sales Turnover 67,841,000 67,369,000 57,416,000
Pre-tax Profit (2,430,000) (260,000) (499,000)
Shareholders Funds 477,000 2,946,000 3,670,000
Source: ICC
Regus Limited (formerly Regus Plc) (3548821)
Date 31/12/2007 31/12/2006 31/12/2005() () ()
Sales Turnover - - -
Pre-tax Profit 2,590,000 73,082,000 2,649,000
Shareholders Funds 59,332,000 56,741,000 60,510,000
Source: ICC
Recent press reports suggest in the year to 31/12/2008 Regus
Group Ltd, the ultimate parent, recorded a 25%increase in pretax
profits to 149.2m, up from 119.4m the previous year. Sales also
grew about 25% to 1.1 billionup from 862.4 million in 2007. In the
UK the group operates 131 centres with 30,899 workstations and
sales grew6.7% to 222.1 million with 84% occupancy rates.
Brentwood Office Market
Brentwood is an established office market and due to its
excellent road and rail communications and proximity toCentral
London, it is one of the stronger eastern M25 markets. There are
three main office locations in Brentwood,namely in-town by the
railway station, out-of-town leading west along London Road and on
Warley Hill BusinessPark. Brentwood has attracted a number of major
office occupiers including Amstrad, BT, Standard Life, BNY
Mellon,The National Centre for Social Research, Ford Motor Company,
Ford Credit and Countryside Properties.
Supply has historically been limited by restricted planning
policies. There is limited availability in the Brentwood
officemarket with less than 120,000 ft currently being marketed.
This compares favourably to other office locationswithin Essex such
as Romford, Ilford and Harlow. The development pipeline is also
limited with the main site tocome forward in the short term being
the former NV Tool Site, St James Road, which has planning consent
for a31,784 ft headquarters office. Development in not anticipated
to be completed for at least 3 years.
Office rents in Brentwood have reached 25 psf.
The most recent letting in the town is the letting of the second
floor at the Kingsgate, 1 King Edward Road(12,500 ft2) in March
2008 at 20 psf. The space is similar in age and specification to
Jubilee House.
Juniper House, diagonally opposite on the Warley Business Park,
comprises 15,012 ft2 available to let at a passingrent of 19.50 psf
reflecting the fact that the building is not air conditioned and
its lack of prominence. We understandit is likely to be refitted to
an upgraded specification. It was formerly occupied by David Wilson
Homes.
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Proposal
We are instructed to seek offers in the region of 9.4 million
(Nine Million Four Hundred Thousand Pounds),subject to contract and
exclusive of VAT for our clients freehold interest. A purchase at
this level reflects a net initialyield of 8.75% allowing for
purchasers costs of 5.75%.
Further Information
If you require any further information or wish to view the
property please contact:
Neville Pritchard
Tel: 020 7087 5370
email: [email protected]
Sam Fairbairn
Tel: 020 7087 5382
email: [email protected]
Crown Copyright 2009. All rights reserved. Promap licence number
100020449. King Sturge licence number 100017659.
This plan is published for the convenience of identification
only and although believed to be correct is not guaranteed and it
does not form any part of any contract.
Misrepresentation Clause: The accuracy of any description,
dimensions, references to condition, necessary permissions for use
and occupation and other details containedherein is not guaranteed
and is for general guidance only and prospective purchasers or
tenants must not rely on them as statements of fact or
representations and mustsatisfy themselves as to their accuracy.
Neither King Sturge LLP nor any of their employees or
representatives has any authority to make or give any
representation or warrantyor enter into any contract whatever in
relation to the property. Rents quoted in these particulars may be
subject to VAT in addition.
The reference to any mechanical or electrical equipment or other
facilities at the property shall not constitute a representation
(unless otherwise stated) as to its state orcondition or that it is
capable or fulfilling its intended function. Prospective
tenants/purchasers should satisfy themselves as to the fitness of
such equipment for theirrequirements.
Subject to Contract Exclusive of VAT June 2009
