Modern Business Park Office Investment Opportunity. 4 Barton Close, Grove Park, Leicester LE19 1SJ

Size: px

Start display at page:

Download "Modern Business Park Office Investment Opportunity. 4 Barton Close, Grove Park, Leicester LE19 1SJ"

Leona Joseph
6 years ago
Views:

1 Modern Business Park Office Investment Opportunity 4 Barton Close, Grove Park, Leicester LE19 1SJ

INVESTMENT SUMMARY n Prime business park office investment n Let to Opsec Security Limited with a further 11½ years unexpired n Low passing rent of 133,680 per annum ( 12.50 per sq.

The city is the second largest in the East Midlands and is a major commercial and retailing destination.

The city benefits from excellent road communications with the A50, A46 and the A563 providing access to the city centre via junctions 21 (linking into the M69), 21A and 22, of the M1

2 INVESTMENT SUMMARY n Prime business park office investment n Let to Opsec Security Limited with a further 11½ years unexpired n Low passing rent of 133,680 per annum ( per sq.ft) n Offers in excess of 1,800,000 n Net initial yield of 7.00%, with a reversionary yield of 7.72% in November 2017 and a low capital value of 167 per sq.ft. LOCATION Leicester is strategically located 43 miles north-east of Birmingham, 31 miles south of Nottingham and 100 miles north-west of London. The city is the second largest in the East Midlands and is a major commercial and retailing destination. Leicester is home to over 40,000 students, attending both the University of Leicester and De Montfort University. The city benefits from excellent road communications with the A50, A46 and the A563 providing access to the city centre via junctions 21 (linking into the M69), 21A and 22, of the M1 motorway. The city s mainline railway station provides regular high speed train services to London St Pancras with a journey time of approximately 1 hour 10 minutes. East Midlands airport lies approximately 20 miles to the northwest of the city.

SITUATION Grove Park is considered to be the premier office and business park in the East Midlands and has been master planned over two decades to provide an exceptional working environment.

3 SITUATION Grove Park is considered to be the premier office and business park in the East Midlands and has been master planned over two decades to provide an exceptional working environment. The park includes generous landscaping including a lake, excellent car parking ratios and superior building design and construction in comparison to neighbouring office locations. The park lies immediately adjacent to J21 of the M1 motorway, the link with the M69, with the eastern boundary of the park forming part of Leicester s outer ring road. The city centre lies approximately 3 miles to the north east. Fosse Retail Park, generally considered to be the best out of town retail park in the UK, lies in very close proximity to Grove Park offering a full range of amenities along with Meridian Leisure Park and the Marriot Hotel on Grove Park itself. Occupiers on Grove Park include, BG Plc, HSBC, Regus, Sytner, My Home Move, Topps Tiles, Selfridges and Mattioli Woods. The park is now almost completely fully developed.

DESCRIPTION The property comprises a modern two storey office building constructed in 2012.

The first floor offices benefit from suspended ceilings, raised floors and air conditioning. There are male and female WC s to each floor and the building has an 8 person 630kg passenger lift.

4 DESCRIPTION The property comprises a modern two storey office building constructed in The property has been designed as a standard office building with ground floor currently being used as hi tech laboratory space. The first floor offices benefit from suspended ceilings, raised floors and air conditioning. There are male and female WC s to each floor and the building has an 8 person 630kg passenger lift. There are 49 car parking spaces within a secured car park accessed via a gated entrance. The car parking ratio is 1:220 sq.ft. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and extends to the following areas on a net internal basis: AREA sq.m sq.ft Ground Floor ,177 Reception First Floor ,426 TOTAL 1, ,772 SITE The site totals approximately 0.74 acres (0.30 Ha). TENURE Freehold. TENANCY The property is let to Opsec Security Limited for a term of 15 years with effect from 28th November The lease is held on full repairing and insuring terms and the current passing rent is 133,680 per annum which reflects a low rent of per sq.ft (assuming half rate on reception). The ground floor was let on the basis of a shell fitout to enable the tenant to fitout the space as a laboratory. The rent at review is on the basis an open market review subject to a discount of 16.66% on the ERV of the whole building to take into account the shell at ground floor. The next rent review is 28th November The lease is contracted inside the security of tenure provisions of the Landlord and Tenant Act 1954.

GROVE PARK SERVICE CHARGE There is a service charge payable by the tenant to GPC Management Limited on the basis of 550 per acre. The service charge is therefore approximately 370.00 Per annum.

5 GROVE PARK SERVICE CHARGE There is a service charge payable by the tenant to GPC Management Limited on the basis of 550 per acre. The service charge is therefore approximately Per annum. RENTAL VALUE The current passing rent of 133,680 per annum reflects per sq.ft (assuming half rent on reception) We are of the view that given recent rental activity on Grove Park that the rental value is in the order of 147,070 reflecting per sq.ft (assuming half rate on reception and a discount of 16.66% as per the rent review clause). A new office building totalling approximately 9,250 sq.ft has been pre-let to Priory Group on the basis of a new 15 year lease at a rent of in excess of per sq.ft. My Home Move have recently entered into a pre-let on a new 20,000 sq.ft office building at a rent of per sq.ft.

6 COVENANT The tenant Opsec Securities Limited are involved in the design, manufacture and provision of authentication, brand enhancement and anti-counterfeiting products and services. The company works across a number of sectors with clients including Hewlett Packard, Fuji, New Balance, North Face, LG and Adidas. The company also works for various governments across the world providing authentication of passports, bank notes and other security requirements. Due to the nature of the business, security on site is of paramount importance and as such the building offers a very high level of security including a gated entrance and CCTV. For the last 3 financial years the tenant reported the following accounts:- 31/03/15 ( 000s) 31/03/14 ( 000s) 31/03/13 ( 000s) Turnover 15,629 13,701 17,890 Pre Tax Profit ,310 Total Equity 9,188 8,837 8,282 VAT The property has been elected for VAT and therefore VAT will be payable. It is intended that the property will be sold as a TOGC. EPC The property has an energy performance rating of B-31. A copy of the certificate is available on request. PROPOSAL We are instructed to seek offers in excess of 1,800,000 (One Milion Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. On the basis of a rental value of per sq.ft (less 16.66%) a purchase at this level would represent the following yield profile, allowing for purchaser s costs of 6.24%. Net Initial Yield: 7.00% Reversionary Yield: 7.72% (November 2017) Capital Value: 167 per sq.ft. CONTACTS For further information or if you wish to arrange a viewing, please contact :- ANDREW FRANCK-STEIER andrew.franck-steier@fspproperty.co.uk ANDREW PRICE andrew.price@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House Colmore Row, Birmingham, B3 3BD Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and 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 or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Prime Long Let Day Nursery Investment Opportunity. Busy Bees, 2 Armstrong Road, Littlemore, Oxford OX4 4XT

Prime Long Let Day Nursery Investment Opportunity Busy Bees, 2 Armstrong Road, Littlemore, Oxford OX4 4XT INVESTMENT SUMMARY n The property is located in Littlemore 2½ miles south of Oxford city centre