Investment Sale Connaught House, 850 The Crescent, Colchester Business Park CO4 9QB. South East Business Park Investment Sale

Transcription

1 Investment Sale Connaught House, 850 The Crescent, Colchester Business Park CO4 9QB South East Business Park Investment Sale

2 Connaught House, 850 The Crescent, Colchester Business Park CO4 9QB Executive Summary Single let South East Office investment opportunity. Located in Colchester an important commercial and retail centre, located 63 miles north east of Central London. Situated on Colchester Business Park, which is considered to be Essex s premier business park. The property is held Long Leasehold at peppercorn. The property provides 18,686 sq ft (1,736 sq m) of quality office accommodation arranged in a two storey office building and benefiting from 101 on-site parking spaces, providing an excellent car parking ratio of 1:185 sq ft. Single let to the strong covenant of Care UK Limited, with an unexpired term certain of 7.64 years. Producing a total income of 301,934 per annum, reflecting a rate of per sq ft. We are seeking offers in excess of 3,000,000 (Three Million Pounds), subject to contract, for the benefit of the long leasehold interest. This reflects a Net Initial Yield of 9.51% after allowing for purchasers costs of 5.8% and a low capital value of only 160 per sq ft.

3 Connaught House, 850 The Crescent, Colchester Business Park, Colchester A5 A41 M40 M4 M3 A6 A1 A10 A1(M) M25 M1 A1 A406 A316 A3 A23 M25 A14 M11 A318 A12 A12 A127 A13 A20 M2 A249 M20 A120 A299 A2 841 El Sub Sta El Sub Sta 0m 10m 20m 30m 847 Connaught House El Sub Sta Crown Copyright All rights reserved. Not to scale. THE CRESCENT Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1:1021 Location Colchester is Britain s oldest recorded town and is an important commercial and retail centre, located approximately 63 miles (101 km) north east of Central London, 24 miles (39 km) north east of Chelmsford and 18 miles (29 km) south west of Ipswich. Road communications are excellent; the A12/A120 by-pass is immediately to the North-East connecting the town to London, Stanstead Airport, the M25 and the M11 motorways. Rail services to London Liverpool Street are available in approximately 46 minutes from Colchester Town Railway station. Major retailing facilities include the Culver Square and the Lion Walk Shopping Centre s. Situation Connaught House is situated on Colchester Business Park which was developed in 1988 by Guardian Properties and Churchmanor Estates in conjunction with Colchester Borough Council. Together with the adjoining Severalls Business Park, it is considered to be the premier business park in Essex and comprises of approximately 250,000 sq ft of office space within a superb landscaped setting. Occupiers include Natwest, Essex County Council, and Linklaters. On site amenities include: Restaurant, full bank facilities, Convenience store, Hairdresser. A Tesco Superstore is adjacent to the park. Colchester Business Park is strategically located directly adjacent to the A12/A120 interchange with excellent access to the national motorway network. Colchester Business Park is only 2.5 miles from Colchester Town Centre and main line railway station, with a regular bus service. Description The property is a modern self-contained detached two storey office building constructed in the year It is of steel portal frame construction with brick elevations and double glazed aluminum casement windows under an artificial slate pitched roof. The building is set within a landscaped environment with 101 on-site parking spaces, providing an excellent car parking ratio of 1:185 sq ft. The office accommodation benefits from the following specification: Suspended ceilings with integral Category II lighting fully accessible raised floors VAV air conditioning 10 person passenger lift male/ female WC facilities on each floor Shower facilities Full height glazed reception area.

4 Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition) and calculate that the property provides the following net internal areas: Floor Area (Sq Ft) Area (Sq M) Reception Ground 9, First 9, TOTAL 18,686 1, Site The property occupies a site of approximately hectares (1.345 acres). Tenure The property is held on a Long Leasehold from Colchester Borough Council for a term of 150 years from 22 August 2000 expiring on 21 August 2150 at a peppercorn rent. Tenancy The property is let in its entirety to Care UK Ltd on a 15 year Full Repairing and Insuring lease, from 24 June 2005 expiring on 23 June 2020, with no break options, providing an unexpired term of 7.64 years. The lease is subject to upward only rent reviews every 5 years with the next review due 24 June Current rent is 301,934 per annum, which equates to per sq ft exclusive. Tenant Demise Total Area Lease Start Term Expiry Date Rent Review Current Rent Pa Sq Ft (Break) (per sq ft) Care UK Limited Reception /06/ /06/ /06/ ,934 Ground Floor 9,159 ( 16.15) First Floor 9,148 TOTAL 18, ,934

5 Covenant Care UK Limited (Company Number ) Care UK Limited, previously Care UK Plc (formerly known as Anglia Secure Homes) is the largest independent provider of health and social care services to the NHS. Working in close partnership with Local Authorities and Primary Care Trusts, they provide care and support for older people, operate NHS Walk-in centres, GP surgeries and treatment centres and provide a range of specialist care. In total, Care UK operates over 200 facilities across the United Kingdom. In the year ended 30 September 2011, Care UK employed on average approximately 13,867 people across the United Kingdom, including surgeons, GPs, nurses and registered carers. Care UK s principal sources of revenue are publicly funded entities in the United Kingdom, principally Local Authorities and Primary Care Trusts and, in Care UK s health care business, the NHS. In April 2010 the company de-listed from the stock exchange and Care UK Plc changed its name to Care UK Limited. This was following a management buyout, when private equity group Bridgepoint became the major shareholder in Care UK, allowing the company to continue to invest in new facilities and expand the range of services it offers. The fostering division of Care UK s children s services was sold to CareTech in December In early 2011 Care UK acquired Rhodes Farm Clinic which treats eating disorders in young people and sold the Children s residential services business to Keys Education and Care Limited. Care UK Limited has a Credit Safe rating of 93/100 which indicates very good credit worthiness and low risk. In 2010 the company reported a turnover of 445,700,000, pre tax profits of ( 7,600,000) and shareholder funds of 95,800,000. We understand that the reported loss in 2010 was due to the management buyout and the restructuring of the company and its assets as explained above. Date of 30/09/ /09/ /09/2009 Accounts Turnover 445,700, ,300, ,200,000 Pre Tax Profit ( 7,600,000) ( 20,400,000) 20,600,000 Shareholder Funds 95,800, ,700, ,400,000 Market Commentry Colchester Business Park is an established park, with excellent parking provisions. The park is occupied by a number of long established tenants; notably Linklaters since early 2008/09, and Essex County Council, who occupy similar larger size units and have been in occupation for over 10 years. There is very little availability of similar size office space within the park, with much of the vacant space being smaller 1,000-2,000 sq ft accommodation with quoting rents from per sq ft. The Colchester Town Centre office market is a very different to the subject property and Colchester Business Park, with older, low quality buildings and very limited car parking space. Chelmsford Town Centre is just 46 minutes to London by train. Notable tenants include International Financial Data, Barrat Homes, Essex Magistrates, and Clifford Thames Group. The historic headline rent achieved on Colchester Business Park was in 2007 to Lancaster plc on 770 The Crescent at per sq ft, a 5,290 sq ft detached office building.

6 VAT We understand that the property is elected for VAT. Proposal We are seeking offers in excess of 3,000,000 (Three Million Pounds), subject to contract, for the benefit of the long leasehold interest. This reflects a Net Initial Yield of 9.51% after allowing for purchasers costs of 5.8% and a low capital value of only 160 per sq ft. Contacts Lambert Smith Hampton United Kingdom House, 180 Oxford Street, London W1D 1NN Mike Tench mtench@lsh.co.uk Further information on the property can be obtained from: Subject to Contract and Exclusive of VAT Lambert Smith Hampton May 2012 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.