HA RLO W ESSEX C M20 1 D R OFFICE INVESTMENT & DEVELOPMENT OPPORTUNITY

Transcription

1 HA RLO W ESSEX C M20 1 D R MITRE BUILDINGS OFFICE INVESTMENT & DEVELOPMENT OPPORTUNITY

2 INVESTMENT CONSIDERATIONS MITRE BUILDINGS HA RLO W ESSEX C M20 1 D R Freehold Harlow is a commuter town with excellent communications to London Six self-contained office buildings totalling a GIA of 37,048 sq ft (3, sq m) 6,640 sq ft ( sq m) GIA of vacant office accommodation presenting immediate development potential to residential subject to planning (STP) Part let to the secure covenants of The Princess Alexandra Hospital NHS Trust and The Secretary of State for Communities Total current rent passing of 292,466 pa Total site area of 0.75 acres including the adjoining car park Separate car park totalling 0.26 acres and provides further immediate development potential (STP) Our client is seeking offers in excess of 5,000,000 (Five Million Pounds) subject to existing leases, contract and exclusive of VAT reflecting a capital value of 119 psf (GIA) assuming a price of 600,000 for the car park site. DEVELOPMENT POTENTIAL The property provides a number of potential residential led development opportunities, including; Immediate conversion of Unit 2 and Unit 5 to residential subject to obtaining Permitted Development Rights Redevelopment and expansion of the existing buildings through a consented scheme, subject to planning Development of the 0.26 acre car parking site which forms part of the demise, subject to planning

3 Har Tript MITRE BUILDINGS, KITSON WAY, HARLOW, ESSEX, CM20 1DR LOCATION Harlow is an affluent London commuter town, within the M11 Corridor. The town is located approximately 20 miles (32 km) north of Central London, 40 miles (64 km) south of Cambridge and 7 miles (11 km) south of Bishops Stortford. Harlow benefits from excellent road communications, being located 4 miles (6 km) west of Junction 7 of the M11 and 8.5 miles (14 km) north of Junction 27 of the. The M11 provides access to Cambridge to the north and the to the south. J21 M10 M1 ord A40 w St Albans A1 M1 Harrow Brent Cross Wembley Hatfield A1(M) J23 A414 Hertford Enfield A10 A10 J25 A10 LONDON A20 A12 HARLOW A414 A13 A2 Epping M11 J27 A12 M11 Chigwell M11 A13 Stansted Airport 20 Mins A414 Romford Dartford Chipping Ongar J28 A12 J29 A Brentw Helons Rd Hodings Rd Parndon M Helons Rd ill Ln Hodings Rd Harberts Rd Hamstel Rd Burnt Mill A1169 Elizabeth Way The Hornbeams The Hornbeams Princess Alexandra Hospital Fourth Ave RiverMill oks Sharpecroft Fifth Ave BurntMill Ln Hodings R d Fourth Ave Ha ydens Rd Kitson Way Bu Fourth Ave A414 Fifth Ave A1019 Allende Ave Terminus St TOWN CENTRE Harlow Town A1019 Velizy Ave A1025 Third Ave A414 Edinburgh Way Harlow Town Park Peace Wood First Avenue Mandela Ave Maddox Rd Manston Rd Howard Way Vicarage Wood Maddox Rd A1025 Second Ave A1025 Second Ave Nettleswell Plantation Fir Howa Harlow boasts two railway stations, Harlow Mill and Harlow Town and therefore provides excellent rail connectivity with regular services to Bishops Stortford, London Liverpool Street and Cambridge with fastest journey times of 9 minutes, 31 minutes and 39 minutes respectively. Stansted International Airport is located 18 miles (29 km) to the north east and carries 24 million passengers per year (Sept 2016). LONDON LIVERPOOL STREET : 31 MINUTES M11 : 4 MILES : 8.5 MILES STANSTED : 18 MILES

4 MITRE BUILDINGS, KITSON WAY, HARLOW, ESSEX, CM20 1DR Harlow CAR SITUATION DESCRIPTION The property is situated in a mixed use area within the heart of Harlow town centre and is accessed from Kitson Way. It is located on the northern side of the town centre and partly fronts the pedestrianised West Square and West Gate which in turn provides access to the towns main shopping centre. The additional car park is situated on the northern side of Kitson Way at its junction with Northgate and the towns main hospital, The Princess Alexandra, is a short distance to the west. The property comprises 6 attractive self contained office buildings arranged around a courtyard over a mixture of 3 and 4 floors to provide good quality office accommodation incorporating raised floors and suspended ceilings. The properties are of brick construction under a pitched roof. To the rear of the property there is surface and undercroft parking for 18 cars. The towns main railway station, Harlow Town, is situated less than a mile north of the property. TENURE Freehold. K PAR There is an additional surface car park dedicated to Mitre Buildings immediately to the north and this provides parking for 23 cars. This car park is secure and benefits from barrier entry. SITE AREA The property has a total site area of 0.75 acres (0.3 hec) including the adjoining car park. The site area for the adjoining car park is 0.26 acres (0.1 hec). Crown Copyright, ES For identification purposes only. Experian Goad Plan Cr

5 MITRE BUILDINGS, KITSON WAY, HARLOW, ESSEX, CM20 1DR TENANCY SCHEDULE UNIT TENANT FLOOR AREA NIA SQ FT* AREA NIA SQ M* AREA GIA SQ FT AREA GIA SQ M LEASE START LEASE END RENT PA RENT PSF COMMENTS CAR PARKING SPACES Unit 1 The Princess Alexandra Hospital NHS Trust Ground 2, , /01/09 20/06/15 101, Holding over 12 First 2, , Second 2, , Third 2, , Total 8, , Unit 2 Vacant Ground First , Second 1, , Total 2, , Unit 3 The Princess Alexandra Hospital NHS Trust Ground /04/13 20/06/15 26, Not collecting 4 First , rent Second 1, , Total 2, , Unit 4 The Secretary of State for Communities t/a Essex Probation Services Ground 1, , /06/90 23/06/18 116, First 2, , Second 2, , Third 2, , Total 9, ,828 1, Unit 5 Vacant Ground , First , Second , Total 2, , Unit 6 4 Individual Partners t/a Whiskers Solicitors Ground 1, , /12/90 20/06/15 48, Holding over 5 First 1, , Second 1, , Total 4, , Sub-Stations EDF Energy TOTAL 29, ,048 3, , *NIA Areas provided by the VOA RESIDENTIAL MARKET COMMENTARY Owing to its proximity to Central London, Harlow is projected to see above average growth in population over the period In addition, house prices have increased at a considerable rate over the past 2 years (7%) and forecasts suggest that they will continue to grow. Recent residential flat sales have achieved between psf as reflected in the following schedule: PROPERTY ASKING PRICE NO.BEDS AREA SQ FT PSF Newstead Way, Fifth Avenue, Harlow, Essex Gladwin Way, Harlow, Essex Mill Court, Edinburgh Gate, Harlow 195, , , OFFICE MARKET COMMENTARY Harlow is a well-located office location situated within the London-Cambridge-Stansted Corridor, with all three locations accessible within 1 hour. The corridor offers a large and highly educated workforce with almost 40% qualified to a degree level or above with substantial recent investment into educational and public infrastructure. Take-up in 2016 totalled 50,000 sq ft, take-up in 2015 totalled 117,000 sq ft; both in excess of the 10 year average annual take-up of 32,000 sq ft. Harlow benefitted from a positive start to 2017, with 28,000 sq ft let to Pearson at KAO Park, at a headline rent of per sq ft. Supply in Harlow is currently 130,000 sq ft, owing largely to a significant development pipeline at KAO Park. The majority of supply is therefore Grade A office accommodation with quoting rents in excess of per sq ft. The supply of office accommodation for more cost sensitive occupiers, of which Mitre Buildings would be considered, has diminished in recent years through various redevelopments and conversion of traditional office supply to alternative uses such as residential.

6 2 MITRE BUILDINGS, KITSON WAY, HARLOW, ESSEX, CM20 1DR 11 SURFACE CAR PARK The standalone car park extends to approximately 11,000 sq ft and falls within the designated redevelopment area for Harlow. We are of the opinion the car park could be developed to provide a residential scheme, subject to obtaining the necessary consents. We apportioned a price of between 500,000 to 685,000 depending on the site density (50% - 70%) for a potential residential development. Further information is available upon request. Wych Elm House Shelter FOURTH AVENUE CR Ward Bdy Shelter El Sub Sta Aylmer House TCBs NOR 72.2m KITSON WAY 5 6 Mitre Buildings 1 to 4 4 Rothwell House West Square Westgate House El Sub Sta 7 Gate West Crown Copyright, ES For identification purposes only. ASSET MANAGEMENT OPPORTUNITIES We consider that the properties would lend themselves to alternative uses including conversion to residential use under Permitted Development Rights and subject to gaining the necessary consents. Harlow Council has not excluded this location from Permitted Development Rights The properties are not Listed or locally listed Conservation area status does not affect Permitted Development Rights Further information regarding the planning and development potential for the subject property is available through Harlow Council website at: The Property provides a number of potential residential led development opportunities, (STP), including; 1. Immediate conversion of Unit 2 and Unit 5 to residential through Permitted Development Rights 2. Redevelopment and expansion of the existing building through a consented scheme 3. Development of the 0.26 acre car parking site adjacent to the property which forms part of the demise

7 MITRE BUILDINGS, KITSON WAY, HARLOW, ESSEX, CM20 1DR COVENANT The Princess Alexandra Hospital NHS Trust runs the Princess Alexandra Hospital in Harlow, a 501 bedded District General Hospital. The Secretary of State for Communities and Local Government is an undoubted UK Government covenant, Unit 4 is in use as the Essex Probation Services. SERVICE CHARGE For the year ended September 2017, the service charge budget totals 31,850 pa. Further information is available in the dataroom. EPC Available upon request. VAT The property is opted to tax. It is assumed the transaction will be treated as a Transfer of a Going Concern (TOGC). DATAROOM For access to the Allsop Dataroom please use the following link: PROPOSAL Our client is seeking offers in excess of 5,000,000 (Five Million Pounds) subject to existing leases, contract and exclusive of VAT reflecting a capital value of 119 psf (GIA) assuming a price of 600,000 for the car park site. For further information or to make arrangements for viewing please contact: NATIONAL INVESTMENT RESIDENTIAL INVESTMENT AND DEVELOPMENT Jeremy Hodgson jeremy.hodgson@allsop.co.uk Lottie Hayward lottie.hayward@allsop.co.uk James Stewart Lockhart james.stewart-lockhart@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

8 MITRE BUILDINGS HA RLO W ESSEX C M20 1 D R