ROYAL TUNBRIDGE WELLS

Transcription

1 ROYAL TUNBRIDGE WELLS 3 & 5 LONSDALE GARDENS, TN1 1NU Two prime freehold office investments with potential for conversion to residential (subject to planning)

2 Two freehold office buildings situated in the heart of Royal Tunbridge Wells

3 ROYAL TUNBRIDGE WELLS INVESTMENT SUMMARY Royal Tunbridge Wells is an affluent commuter town with excellent communications to London. Two freehold office buildings situated on a private road in the heart of Royal Tunbridge Wells. A prestigious location within walking distance of the railway station and local amenities. Excellent town centre car parking provision of 1:352 sq ft. Both properties are let to Thomson Snell & Passmore LLP on two separate leases both expiring on the 24th March There is a break option in favour of the tenant in March The combined topped up rents equate to 197,500 p.a. No. 3 provides 3,713 sq ft and No. 5 11,441 sq ft (NIA) of office accommodation - total 15,154 sq ft Potential to convert both buildings to residential subject to the necessary consents. Our clients will consider a sale of the properties either individually or as a pair; 3 Lonsdale Gardens we are seeking offers in excess of 800,000 (Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. This equates to a low capital value of 215 psf. 5 Lonsdale Gardens we are seeking offers in excess of 2,350,000 (Two Million Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Based on the topped-up rent, this equates to a net initial yield of 6.7% assuming purchasers costs of 5.8% and a low capital value of 205 psf. The purchase of both properties at 3,150,000 would reflect a net initial yield of 5.92%. LOCATION Royal Tunbridge Wells is a spa town located within the county of Kent in close proximity to its border with East Sussex with a population of 60,000 (2001 census). Kent is the largest county by population in the UK and is also one of the fastest growing. Between 2001 and 2026 its population is expected to increase by over 11%. Royal Tunbridge Wells is approximately 50km (31 miles) south east of London, 26km (16 miles) from Maidstone and 37km (23 miles) from Crawley. Access to Tunbridge Wells is provided by the A21 dual carriageway which, in turn, provides access to Junction 5 of the M25 which is approximately 21km (13 miles) to the north. In addition, Brighton, Eastbourne and Hastings are accessible via the A26/7 which links with the town. Communications are excellent, with Central London being within easy reach with a fastest journey time of 45 minutes to London Bridge and 50 minutes to London Cannon Street. Gatwick International Airport, London s second largest airport, is located 32 km (20 miles) to the west. Gatwick LONDON Crawley 7 M23 A22 M25 London City 5 A21 3 A20 M26 A26 M25 M20 ROYAL TUNBRIDGE WELLS Maidstone

4 ROYAL TUNBRIDGE WELLS A264 Crescent Road A26 London Road 3&5 Londsdale Gardens Moun tpleasent R oad Calverley Grounds Tunbridge Wells High Street Grove Hill Road SITUATION The subject properties are centrally located within the Town Centre on the Belvedere Estate, a historic private development dating back to the 1800s. Lonsdale Gardens is a private road and forms the heart of the Estate which comprises period office buildings in the main. Clanricarde Gardens to the north, has a mix of residential and office uses in similar period properties. Owing to the prime Town Centre location, there is a current trend for conversion from office use to residential. 3 & 5 Lonsdale Gardens are situated on the south side of the road adjacent to the retail offer provided on Mount Pleasant Road and a short walk from the High Street. Access to the town s mainline railway station is within 150 metres immediately to the south of the property. Within Tunbridge Wells, Lonsdale Gardens is one of two recognised established office locations with Mount Ephraim being the other. Other occupiers in Lonsdale Gardens include accountancy and solicitors practices, a doctor, a dentists surgery and a child s day nursery. The property benefits from all the amenities provided by the Town Centre including Sainsbury s and Morrisons supermarkets as well as the major retailers on Mount Ephraim Road and those in Royal Victoria Place Shopping Centre together with a host of restaurants, coffee shops and bars.

5 Shelters ROYAL TUNBRIDGE WELLS DESCRIPTION 3 & 5 Lonsdale Gardens are two interlinked buildings currently occupied by a single tenant - Thomson Snell & Passmore LLP. The two buildings are very different in character with 3 Lonsdale Gardens being of Victorian architecture dating back to the 1800s while 5 Lonsdale Gardens is a more modern red-brick building constructed in the late 1980s. To the rear of the properties, there is a car park which is accessed from Vale Avenue which provides parking for 43 cars and a ratio of 1:352 sq ft. In addition, the tenant currently benefits from 64 permits for parking within the Belvedere Estate. 3 Lonsdale Gardens 3 Lonsdale Gardens is a period detached property of traditional brick construction and untreated stone cladding and provides office accommodation arranged over lower ground, ground and two upper floors. It is interlinked with No. 5 at ground floor level by a walkway which provides access to the lobby. The property provides cellular office accommodation and benefits from attractive period features including single glazed sash windows. The layout of the property would lend itself to residential conversion. 5 Lonsdale Gardens 5 Lonsdale Gardens is a purpose built office building which provides more modern office accommodation arranged over lower ground, ground and three upper floors. The rear lower ground floor level, known as Belvedere House, provides potential for further extension with additional floors. The property benefits from a central core which provides a passenger lift and male and female WC facilities. The layout of the property would lend itself to occupation on a multi-let let basis as well as residential conversion. ACCOMMODATION SITE AREA The properties provide the following approximate net internal areas: 3 Lonsdale Gardens Net Internal Areas (NIA) Sq m Sq ft Lower Ground Floor Offices & Kitchen 86.2 sq m 925 sq ft Ground Floor Offices 92.1 sq m 992 sq ft First Floor Offices 83 sq m 893 sq ft Second Floor Offices & Kitchen 84 sq m 903 sq ft Childrens Nursery Surgery LONSDALE GARDENS 5 3 LB Mount Pleasant House The Barn Posts PLEASANT ROAD The total site area extends to approximately 0.19 hectares (0.46 acres) a site coverage of only approximately 33% providing an opportunity for further extension or development subject to the necessary consents. The site is split as follows: Total sq m 3,713 sq ft 5 Lonsdale Gardens Net Internal Areas (NIA) Sq m Sq ft Lower Ground Floor Offices sq m 3,736 sq ft Posts SL TC No.3 approximately hectares (0.21 acres) No.5 approximately 0.10 hectares (0.25 acres) Ground Floor Offices sq m 1,953 sq ft First Floor Offices sq m 2,001 sq ft Second Floor Offices sq m 2,005 sq ft Third Floor Offices sq m 1,744 sq ft Total 1,062.8 sq m 11,441 sq ft Ramp Ramp Multistorey Car Park (above) Central Station Turnbridge Wells Station Detailed floorplans have been commissioned by Allsop and are available upon request. Crown Copyright, ES For identification purposes only.

6 ROYAL TUNBRIDGE WELLS TENURE Freehold TENANCIES The properties benefit from the following tenancies: 3 Lonsdale Gardens is let to Thomson Snell and Passmore LLP for a term of 10 years from 25th March 2014 at a current rent of 27,125 pa ( 7.31 psf). The lease is drafted on full repairing and insuring terms with an upwards only rent review and a break option in favour of the tenant at the 5th anniversary (March 2019) when the rent will rise to the higher of 31,000 pa ( 8.35 psf) or open market rental value. 5 Lonsdale Gardens is let to Thomson Snell and Passmore LLP for a term of 10 years from 25th March 2014 at a current rent of 145,690 pa ( psf). The lease is drafted on full repairing and insuring terms with an upwards only rent review and break option in favour of the tenant at the 5th anniversary of the lease (March 2019), at which time the rent will rise to the higher of 166,500 pa ( psf) or open market rental value. Please note, the vendor intends to top up the current rents payable to their respective minimum uplift levels due in 2019 of 31,000 pa on No. 3 and 166,500 pa on No. 5. Therefore, the total topped up rents equate to 197,500 pa. TENANTS COVENANT INFORMATION Thomson Snell & Passmore LLP are the oldest law firm in operation with a history dating back to The firm is based in Tunbridge Wells with a further office at Thames Gateway and employs a total of 215 staff members with a turnover for the financial year ending 5th June 2015 of 16.8m. The firm is ranked by the leading independent guides to UK law firms in 26 specialist practice areas with 26 lawyers recognised as leaders in their field by Chambers UK PLANNING Both properties are currently used as lawyers offices and are within the Mount Pleasant Conservation Area. We consider that the properties would lend themselves to alternative uses including conversion to residential use under the recently extended Permitted Development Rights. Tunbridge Wells Borough Council has not excluded this location from these provisions The properties are not Listed or locally listed. Conservation area status does not affect Permitted Development Rights. In the immediate area surrounding the subject properties, a number of landlords have been successful in attaining prior approval for conversion from B1 (Offices) to C3 (Dwellinghouses) including 7-9 (adjacent to the subject property and currently being converted) and 14 & 16 Lonsdale Gardens (under Permitted Development Rights).

7 ROYAL TUNBRIDGE WELLS OCCUPATIONAL OFFICE MARKET With a number of large corporate organisations based in the town, Tunbridge Wells has an occupational market which continues to perform well and is supported by an established local professional services sector. The town, owing to a historic lack of commercial development and the change in Permitted Development rights has experienced steady office rental growth in recent years. Top rents are now in excess of 15 psf whilst older space is achieving psf depending upon size and quality. RESIDENTIAL MARKET COMMENTARY In recent years there has been a shortage of new development within Tunbridge Wells which has led to an increase in demand for new apartment accommodation. This is changing as a number of developments have begun including Royal Wells Park, a Berkeley Homes led mixed use scheme on the site of the former Kent and Sussex Hospital on Mount Ephraim Road. Units at the scheme have sold for in excess of 400 psf while remaining units currently on the market are being offered at in excess of 550 psf. More locally, a one bedroom flat on the neighbouring Clanricarde Gardens sold in August 2015 for 410 psf. EPC 3 Lonsdale Gardens has an Energy Performance Certificate rating of G(151). 5 Lonsdale Gardens has an Energy Performance Certificate rating of D(96). Full details are available upon request. VAT The properties are not subject to VAT.

8 PROPOSAL Our clients will consider a sale of the properties either individually or as a pair. 3 LONSDALE GARDENS we are seeking offers in excess of 800,000 (Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. This equates to a low capital value of 215 psf. 5 LONSDALE GARDENS we are seeking offers in excess of 2,350,000 (Two Million Three Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Based on the topped-up rent, this equates to a net initial yield of 6.7% assuming purchasers costs of 5.8% and a low capital value of 205 psf. A purchase of the pair at the above level would reflect a blended net initial yield of 5.92%. For further information or to make arrangements for viewing please contact: Jonathan Butcher jonathan.butcher@allsop.co.uk Alex Butler alex.butler@allsop.co.uk Karl Senghore karl.senghore@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD