BOUNDARY HOUSE 4 COUNTY PLACE, CHELMSFORD, CM2 0RE FREEHOLD MULTI LET OFFICE INVESTMENT FOR SALE

Transcription

1 BOUNDARY HOUSE 4 COUNTY PLACE, CHELMSFORD, CM2 0RE FREEHOLD MULTI LET OFFICE INVESTMENT FOR SALE

2 Investment Summary Modern office building in prime City centre location 1, sq m (11,396 sq ft) net internal area with 26 car parking spaces (1:438 sq ft) 64% of the income is let to covenants with a D&B rating of 2A1 or above. Tenants are Aviva Central Services Ltd, MacIntyre Hudson LLP and 3AAA Ltd Passing rent of 213,575 per annum exclusive ( psf overall) offering significant growth potential Ability to enhance value via lease restructuring or Permitted Development (subject to the necessary consents) Offers are invited in excess of 2,510,000 subject to contract and exclusive of VAT, reflecting a low capital value of 220 psf and an attractive net initial yield of 8.00% assuming standard purchaser s costs of 6.38%

3 A10 Stansted Airport A120 Braintree Colchester A602 A414 Harlow J8 A130 A131 Boundary House A12 Location M25 Epping J27 J7 A414 A12 A12 A130 Maldon was awarded City status in 2012 and is one of the principle commercial centres in the north east quadrant of the M25. is strategically located approximately 31 miles north east of central London and 47miles to the south east of Cambridge and 12 miles east of Brentwood. M11 benefits from excellent communication links. J28 By rail it has a direct high speed service to London Liverpool Street with an A127 standard journey time of 31 minutes with services running approximately 7 times A406 J29 Basildon per hour Southend-on-Sea By road the A12 dual carriageway provides access to both central London as well as Junction 28 of the M25. The A414 provides access to Junction 7 of the M11 and the A1016 River Can A1060 Parkway B1007 Victoria Rd South Boundary House Essex County Cricket Ground Moulsham St Market Rd Parkway Wa t e rloo Ln A1099 High Bridge Rd Victoria Rd Springfield Rd River Chelmer A130 / A120 provide duel carriageway access to Stanstead International Airport. By air, Stansted international airport is located 19 miles to the north west, Gatwick and Heathrow are located to the south west, 59 and 68 miles respectively and both can be easily accessed via the M25. is home to a thriving business community and is a major focus in the area for finance, local government, business and leisure. Banking, finance, & business services sector are major employers accounting for 25.6% of local employment, compared to the national average of 17.5%. The City enjoys an affluent residential catchment. has a district population of approximately 157,000 people and a catchment population within 20 km of 600,000 (2001 Census). The majority of the workforce is employed in professional or managerial jobs, accounting for 60.5% compared to the national Writtle Rd New London Rd an Diemans Rd Essex Yeomanry Way average of 51.1% reflecting the affluent nature of the area. has a well developed office market with a good range of major companies having representation in the city. These include M&G, Lloyds Bank, Aon, Coutts & Co, RSA, Baker Tilly, Galliford Try and The Amlin Group.

4 PARK CENTRAL ANGLIAN RUSKIN UNIVESITY CHELSMFORD TRAIN STATION COUNTY HALL CHELMSFORD CATHEDRAL RIVERSIDE LEISURE DEVELOPMENT A138 PARKWAY LINKS TO A12 CENTRAL LONDON PARK VIEW HOUSE TOWN CENTRE, HIGH STREET & BOND STREET RETAIL SCHEME RIVER CHELMER MEADOWS SHOPPING CENTRE ESSEX COUNTY CRICKET GROUND NEW WHITTLE STREET BOUNDAY HOUSE 4 COUNTY SQUARE COUNTY SQUARE NEW LONDON ROAD FENTON HOUSE

5 Parkway Situation Boundary House is situated in County Square, a modern high quality office park forming part of s prime office district and backing onto the Essex County Cricket Ground and linking with New Writtle Street. The train station is a short distance to the north via New London Road and Parkway. Local occupiers include Allianz Cornhill, AON, Crown Prosecution Services, Medtel, Gadsby Wicks and Kennedys. The High Street is within a few minutes walk. New Writtle Street New London Road Description Boundary House comprises an office building on 3 stories with basement car park constructed in the mid 1990 s. The internal finishes generally comprise open plan offices with ceiling mounted air conditioning cassette units (not at ground floor), suspended ceilings with recessed lighting, painted walls and carpet or vinyl floor coverings. Male and female WCs are provided to each floor of the premises with a disabled WC on the ground floor. Boundary House benefits from 26 car parking spaces (1:438 sq ft) Tenure Freehold

6 Tenancy Floor Tenant Sq M (Sq Ft) Start Date Expiry (Break) Rent pa ( psf) Comments Second Floor MacIntyre Hudson LLP (3,723) 04/08/ /08/ ,600 (20.57) S/C Cap at 19,150 from Dec 2011, then subject to RPI. 9 car parking spaces First Floor Aviva Central Services UK Ltd (4,018) 04/08/ /08/2021 (04/08/2017) 77,920 (19.39) The lease is guarantee by Aviva Insurance Ltd. 10 car parking spaces Ground Floor A Ground Floor B Aspire Achieve Advance Ltd Aspire Achieve Advance Ltd (2,961) 03/02/ /02/ , (16.16) (694) 03/02/ /02/ , (16.16) S/C Cap 25,837 pa until 31/12/16, then subject to RPI increase. 6 car parking spaces Total 1, (11,396) 213,575 (18.74) N.B. All leases are drawn on effective FR&I terms and are inside S of the 1954 landlord and tenant Act. Tenant Covenant AVIVA CENTRAL SERVICES UK LTD Aviva is one of the largest UK based general insurance underwriters, providing around 43 million customers with insurance, savings and investment products and is headquartered in Norwich. The company employs in excess of 36,600 people in the UK and occupies in excess of 1,000,000 sq ft. Further information can be found at Dun and Bradstreet have awarded a 5A1 rating with a minimum risk of business failure ( 000s) 2014 ( 000s) 2015 ( 000s) Sales Turnover 659, ,000 1,070,000 Profit/(Loss) Before Taxes Tangible Net Worth 2,000 1, ,000 (75,000) (90,000)

7 AVIVA INSURANCE LTD Aviva Insurance Ltd is the Guarantor for Aviva Central Services UK Ltd. Dun and Bradstreet have awarded Aviva International Insurance Ltd a rating of 5A1 with a minimum risk of business failure ( 000s) 2014 ( 000s) Sales Turnover 316,000 3,825,000 - Profit/(Loss) Before Taxes Tangible Net Worth 2015 ( 000s) 22, ,000 2,886,000 1,192, ,000 3,131,000 MACINTYRE HUDSON LLP MacIntyre Hudson LLP have evolved as chartered accountants, tax and business advisers to the SME sector but today, also provide a range of services to mid-market enterprises, be they audit, governance, tax compliance or corporate finance; on a global, national and local scale with 37 offices nationwide. Further information can be found at Dun & Bradstreet have rated MacIntyre Hudson LLP as N2 which represents a lower than average risk of business failure Sales Turnover 42,770,191 39,977,823 37,467,893 Profit/(Loss) Before Taxes Tangible Net Worth 0 14,729 15,908 (633,993) (436,777) (371,528) ASPIRE ACHIEVE ADVANCE LTD (3AAA) 3aaa is an outstanding training provider of Apprenticeships in England, specialising in the delivery of Professional Services Apprenticeships such as Technology, Web and Social Media, Digital Marketing, Accountancy, Financial Services and Business Administration. They are a national company offering a personalised, local service in over 40 locations across England helping to change the lives of young people through their work with local employers recruiting apprentices and helping these young people to find a pathway into the career of their dreams Sales Turnover 17,169,921 9,712,695 6,051,111 Profit/(Loss) Before Taxes Tangible Net Worth 2015 (1,688,022) 59, ,058 5,833,314 4,928,103 2,490,920 Dun & Bradstreet have rated Aspire Achieve Advance Ltd as 2A1 which represents a minimum risk of business failure.

8 EPC The energy performance certificate has a rating of E103. Office Market The occupational market in is undergoing a fundamental change with approximately 150,000 sq ft of secondary accommodation being removed from the office market for conversion under Permitted Development Rights. Therefore occupiers requiring cost effective accommodation have very few options, which is driving rental growth, especially in the Grade B market. Total office availability now stands at 190,000 sq ft (6% vacancy), with only circa 30,000 sq ft of available Grade A accommodation. As a result of the lack of supply, both the prime and secondary ends of the leasing market have seen significant rental growth, with prime rents in the city currently at per sq ft. This is forecast to continue as occupiers remain attracted to the city due to: Proximity to London Excellent access to the national motorway and rail network Affluent and well educated workforce

9 Occupational Market We are aware of the following recent occupational transactions in : Company Address Size (Sq Ft) Rent ( Psf) Date Lease Term Redstk Central House, Parkway, 5, June 2016 OML 10 year lease. 18 months at half rent. Birkett Long Faviell House, Parkway, 9, June 2016 Subletting Sublease from QBE. Grant Thornton 4th Floor, Priory Place, 3, June 2015 OML 10 year lease with review/break option in year months rent free but 3 month penalty if the break exercised. Galliford Try Hodgson House, Rainsford Road, 12, March 2015 Lease Renewal. 3 year lease outside the L&T Act. No rent free. Catlin Underwriters One Legg Street, 3, February 2015 OML 10 year lease with a break in year months rent free. 3 month break penalty. Armchair Partners 3rd Floor, Priory Place, 3, February year lease with a break in year months rent free. Benefit Cosmetics 1912 Building, 12, December year lease with a break in year months rent free. Linden Homes Eastwood House, Glebe Road, 8, November 2014 Subletting 7 year lease with break in months rent free. Seventeen Marlborough House, Victoria Road South; 4, August year lease with 5 years break. We believe the above demonstrates that the rent at the subject property has significant potential for growth.

10 Investment Market We are aware of the following investment transactions comparable to the subject property: Address Date Sale price Yield (NIY) Term Certain (Yrs) Rent (PSF) Price (PSF) Tenant Purchaser Kings House, Brentwood Feb ,700, % Multi-let Residential Developer Rosebery House, Sept ,000, % Multi-let Galliard Homes One Elmfield Park, Bromley Dec ,525, % Multi-let CLS Holdings Enterprise House, Cambridge Dec ,500, % Multi-let Royal London

11 VAT The property has been elected for VAT. Proposal We are instructed to seek offers in excess of 2,510,000 (two million, five hundred and ten thousand pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level reflects a net initial yield of 8.0%, assuming purchaser s costs of 6.38%. Further Information Should you have any queries or wish to make an inspection, please contact: LUCY YOUNG ANDREW GROVES Lucy.young@bidwells.co.uk Andrew.groves@bidwells.co.uk DDI DDI IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP have no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection. Bidwells 25 Old Burlington Street London W1S 3AN Tel: Fax: October 2016