NORTH LONDON SUBURB OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL LINK HOUSE, SOUTHBURY ROAD, ENFIELD, HERTFORDSHIRE EN1 1TS

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Caroline Gordon
5 years ago
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1 NORTH LONDON SUBURB OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL LINK HOUSE, SOUTHBURY ROAD, ENFIELD, HERTFORDSHIRE EN1 1TS

2 Investment Summary Enfield is a vibrant and affluent North London suburb with a strong residential, commercial, retail and industrial core located approximately 8 miles from Central London which is easily accessible by public transport within 30 minutes. Link House is prominently located on Southbury Road just off the A10 Great Cambridge Road within 250m of Southbury Rail Station and one mile to the east of Enfield Town Centre. Neighbouring occupiers include Morrisons, ASDA Depot, Sainsbury s, Pure Gym, B&Q, Curry s PC World, Argos, Travelodge, Starbucks, McDonald s and Cineworld. Purpose built well-specified 26,000 sq ft office building arranged over raised ground and three upper floors with 58 lower ground floor car parking spaces. Predominantly let to Tradewise Insurance Services Limited on five FRI leases with July 2019 co-terminus expiry dates. Annual rental of 348,224 p.a. Office rents range between per sq ft offering potential uplifts at the outstanding July 2014 rent reviews. Excellent prospects for future rental and capital value growth through re-gearing of the leases or redevelopment subject to obtaining necessary consents. Offers sought in excess of 4,400,000 subject to contract reflecting the following yield profile assuming an uplift to 382,000 after the outstanding rent reviews: Initial Yield: 7.48% Reversionary Yield: 8.21% Equivalent Yield: 8.13% Capital Value: 168 per sq ft

Heathrow Airport is located approximately 25 miles to the south west and Stansted Airport approximately 29 miles to the north east.

3 Location Enfield is located approximately 8 miles north of Central London. The town benefits from excellent communications with close proximity to the A10, M25, M11, M1 and the A406 North Circular Road. Heathrow Airport is located approximately 25 miles to the south west and Stansted Airport approximately 29 miles to the north east. Rail communications are strong with services running into London Liverpool Street in approximately 30 minutes from Southbury Station and Enfield Town with Underground interchange at Seven Sisters (Victoria Line). Enfield Town is a large vibrant commercial district both within the town centre and on the periphery given its prominence to the A10 Great Cambridge Road which forms part of the Upper Lea Valley, a six mile corridor extending from the Olympic Park in the south to Hertfordshire in the north. In addition to parks and waterways the Upper Lea Valley extends over 3,000 hectares and provides the largest concentration of industrial and commercial land in Greater London. The local population is approximately 318,000 with a total catchment population of 1.62 million.

Situation Link House is prominently situated on Southbury Road at the junction with Baird Street, approximately 225m to the east of the A10 Great Cambridge Road and 250m to the west of Southbury Rail

4 Situation Link House is prominently situated on Southbury Road at the junction with Baird Street, approximately 225m to the east of the A10 Great Cambridge Road and 250m to the west of Southbury Rail Station. Enfield Town Centre is approximately one mile to the west. The immediate area provides a vibrant mix of retail and commercial businesses and an abundance of well-known occupiers including Morrisons, ASDA Depot, Sainsbury s, B&Q, Curry s PC World, Argos, Travelodge, Starbucks, McDonald s and Cineworld to name a few; all are situated within easy walking distance Honda 21. McDonald s 41. Puregym Carcraft 3. Westmill Food 22. Sainsbury s 23. Supplies House 42. Morrisons 43. Curry s PC World Dhamecha Cash & Carry 5. Kiddicare 6. Pets At Home 24. Enfield Trade City 25. BM Polyco Ltd 26. Crown Place 44. Oak Furnitureland 45. Harveys/Benson Beds 46. Argos SOUTHBURY 7. Nike 27. Northgate Business Centre 47. ASDA Depot Halfords 28. Fortuna Healthcare 48. DFS 9. Sports Direct 29. KFC 49. BMW / MINI 10. M & S Simply Food 30. Gala Bingo 50. Magnet 11. Electrical Clearance Store 31. Dunelm 51. Travelodge 12. Toys R Us / Babies R Us 13. Nando s * 32. B & Q 33. Verve Clothing 52. CEF / Halfords Autocentres / YESSS Electrical 53. Virgin Media Carphone Warehouse * 15. Subway * 16. Boots / Costa 17. Renault 34. Lee House 35. Enfield Car Repairs 36. Wates 37. Southbury House 54. Toyota 55. Big Yellow * 56. Esso Petrol 57. HSS Hire / Topps Tiles Selco 19. Paragon / One Call 38. Graham Plumbers Merchants 39. Formula 1 Autocentres 58. Cine World / Starbucks Krispy Kreme 40. AJ Cars * Under Development 56 57

Site The property forms part of a regular and flat site of approximately 0.17 hectare (0.41 acre). The footprint of the subject building shows a site cover of approximately 44%.

5 Site The property forms part of a regular and flat site of approximately 0.17 hectare (0.41 acre). The footprint of the subject building shows a site cover of approximately 44%. Description The subject property comprises a purpose built office building constructed in the 1980s arranged over lower ground, ground and three upper totalling 2,428 sq m (26,133 sq ft). The building has internally been recently refurbished to an attractive and high specification benefitting from excellent natural light from windows to all four elevations as well a flat roof which offers the potential for future extension subject to obtaining the necessary consents. Generous floor plates in excess of 6,500 sq ft offer modern and well specified open plan and cellular accommodation including a spacious ground floor reception as well as staff canteen and games room. The specification includes: Full air conditioning and central heating Suspended ceilings with recessed lighting Perimeter and underfloor trunking Passenger lift Double glazing Male, female & disabled toilets Shower CCTV surveillance Swipe card & video entry system Staff canteen & games room The lower ground floor provides predominantly covered car parking with 58 bays and lift access. Accommodation The building has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor areas. Floor Use Sq m Sq ft Third Office ,640 Second Office ,691 First Office ,735 Ground Office ,484 Ground Reception Basement Car park 2, ,133

7 Tenure The property is held freehold. Tenancies The property is predominantly let to a single tenant, Tradewise Insurance Services Limited, on five FRI leases with a co-terminus expiry date of 18 July Additional income is derived from Vodafone for a telephone aerial on the roof of the building. Full details of the tenancies are set out in the tenancy schedule below. The total passing rent for the property is 348,224 per annum. Floor Use Area Tenant Lease Start Term Rent Review Lease Expiry Passing Rent Comments p.a. psf Third Floor (North) Office 3,202 Tradewise Insurance Services Ltd 17-Feb-10 9 years & 5 months 19-Jul Jul-19 47, FRI. Third Floor (South) Office 2,438 Tradewise Insurance Services Ltd 21-Jul years 19-Jul Jul-19 33, FRI. Second Office 6,691 Tradewise Insurance Services Ltd 01-May-12 7 years & 79 days First Office 6,735 Tradewise Insurance Services Ltd 01-May-12 7 years & 79 days 19-Jul Jul-19 76, FRI. 19-Jul Jul-19 77, FRI. Ground Office 6,484 Tradewise Insurance Services Ltd 19-Jul years 19-Jul Jul-19 95, FRI. 6 months rent deposit Ground Reception 583 Lower Ground Car Parking Tradewise Insurance Services Ltd 58 spaces Roof Aerial Vodafone 28-Dec years 28-Dec Dec-22 17,583 5 yearly RPI reviews 26, ,

8 Covenant Tradewise Insurance Services Limited offers a range of industry leading products specialising in insurance for Motor Traders and Commercial Vehicles through a nationwide network of independent insurance brokers. The company dates back to 1994 with its headquarters in Enfield, North London whilst its trading partner, Tradewise Insurance Company Limited, is based in Gibraltar. In 2014, the London Stock Exchange Group in its publication, 1000 Companies to Inspire Britain, recognises Tradewise Insurance Services as one of the UK's most inspiring companies identifying its among some of the fastest-growing and most dynamic small and medium-sized enterprises (SMEs) in the UK. For further information please visit Tradewise Insurance Services Limited reported the following financial accounts for the years ended April 2011 to 2013: Rental Value Recent office lettings in Enfield, as evidenced at Nicholas House, have achieved rents in excess of per sq ft. The current passing rents at Link House range between per sq ft. We consider the current passing rents of the first and second floors and part third floor (south) to be reversionary at the outstanding July 2014 rent reviews increasing the property s rental value to approximately 382,000 per annum. The strong demand for converting existing office buildings to residential through permitted development offers excellent underlying rental and capital value growth prospects for Suburban London office buildings which are well-located and retain their existing use. Planning The property is not listed and nor is it situated within a conservation area. Y/E 31 Dec 2013 GBP Y/E 31 Dec 2012 GBP Y/E 31 Dec 2011 GBP The property offers scope in the medium term for a change of use to residential or other uses subject to obtaining the necessary consents. Turnover 19,709,521 19,582,424 16,245,739 Pre-Tax Profit 1,059,580 1,528, ,931 Energy Performance Certificates To be forwarded upon request. VAT The property is elected for VAT however it is anticipated the transaction will proceed as a TOGC.

9 Investment Considerations Prominent building surrounded by national occupiers and multiples equidistant between A10 Great Cambridge Road and Southbury Railway Station which connects with London s Liverpool Street in thirty minutes. Attractive, refurbished and well-specified offices with generous floorplates and 58 car parking spaces. Pricing Offers sought in excess of 4,400,000 (Four Million Four Hundred Thousand Pounds) subject to contract for the unconditional purchase of the freehold interest. A purchase at this level shows the following yield profile reflecting assuming an uplift to 382,000 per annum: Let for a further 4¾ years at passing rents ranging from per sq ft offering potentially immediate reversion at the current outstanding rent reviews.. Tradewise Insurance Services Ltd was recognised by the London Stock Exchange Group in 2014 as one of the UKs most inspiring, fastest growing and dynamic SMEs in the UK. Initial yield: Reversionary Yield (2014): Equivalent yield: Capital Value: 7.48% 8.21% 8.13% 168 per sq ft The rise in the number of office buildings converting to residential through permitted development offers excellent underlying rental and capital growth prospects due to reduced supply in the future. Building offers excellent potential for extension and conversion to alternative uses such as residential, hotel or alternative uses subject to obtaining the necessary consents. Further Information For further information or to arrange an inspection contact: Paul Hanison paulhanison@ianscott.com 15 Bolton Street, Mayfair, London, W1J 8BG Misrepresentation Notice November 2014 Subject To Contract Ian Scott International for themselves and for the vendors or lessors of this property for whom they act give notice that (1.) These particulars are only intended as a general outline for the guidance of the intending lessees or purchasers. (2.) All descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details are given in good faith and are believed to be correct but any intending lessee or purchaser should not rely on them as statements or representations of fact but must satisfy themselves by inspection, or otherwise, as to the correctness of each of them. (3.) If for any reason any party wishes to rely on any aspect of the particulars or statements at any particular date without further investigation such interested party should seek written confirmation from Ian Scott International who reserve the right to charge a fee for this service. (4.) The particulars do not constitute any part of an offer or a contract. (5.) Whilst every effort has been made to check the floor areas provided, complete accuracy cannot be guaranteed and intending lessees or purchasers must satisfy themselves with regard to this information. (6.) Any quoting terms have been summarised for the purposes of presentation. Intending lessees or purchasers must satisfy themselves as to the accuracy of this information by reference to the legal documentation, which is available from the vendor s solicitors. (7.) The vendor does not make or give any representation or warranty whatsoever by these particulars, neither does Ian Scott International nor any employee of theirs have any authority to do so. (8.) The information provided is believed to be correct as at the date below but may be subject to variation thereafter.

REGENT HOUSE FOR SALE CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY REGENT HOUSE 76 RENFIELD STREET GLASGOW G2 1NQ

REGENT HOUSE FOR SALE CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY - 02 - INVESTMENT SUMMARY Substantial mixed-use city centre investment opportunity. Situated on Renfield Street in the heart of Glasgow