For Sale Deane Villa, Holywell Lake, Wellington, TA21 0HF Residential Care Investment Opportunity
Deane Villa, Holywell Lake, Wellington TA21 0HF 02 Investment Summary C3 residential care investment. Freehold, subject to a lease to Bettercare Keys Limited for a term of 8 years from 31 March 2016 (expiring on 30 March 2024). Lease guarantee from Keys Child Care Limited. Current rent of 42,000 per annum subject to RPI indexed rent reviews every 3 years (with minimum uplift multiplier based on 2.5% per annum compounded). The minimum increases upon review in 2019 and 2022 are 45,360 and 48,989 per annum respectively. Strong underlying vacant possession value as conventional residential dwelling. Offers sought in excess of 520,000 reflecting a net initial yield of 7.71% assuming purchasers costs of 5.8% A video of the property can be found at: https://youtu.be/o AB-FM cppac
Deane Villa, Holywell Lake, Wellington, TA21 0HF 03 Description Description The property comprises an extended 4 bedroomed detached country house, currently being used as a residential care facility. The property has rendered external elevations beneath a hipped roof. The accommodation includes an oil fired central heating system and predominantly hardwood double glazed windows. The property has been redecorated throughout by the current tenant and provides light and spacious accommodation. The first floor provides 4 principal bedrooms with a small box room used for staff overnight accommodation. Externally, there is a car parking area surrounding the property and extensive garden areas, with the property sitting in a plot of approximately 0.5 acres. Floor Description ft 2 m 2 Ground Entrance hall, kitchen, utility room, office, staff room/office, living room, WC and boiler room 1,087 101 Location & Situation The property is situated close to the village of Holywell Lake in a secluded rural location. The town of Wellington is around 4 miles distant and provides for local need shopping, recreation and school facilities whilst the County town of Taunton is approximately 12 miles to the east where there is a greater selection of facilities and connectivity with main line railway station linking to London Paddington (1 hour 45 minutes). The M5 motorway (junction 26) is around 6 miles from the property. First 4 principal bedrooms plus overnight staff accommodation, 2 bathrooms and landing 1,033 96 Total 2,120 197
Deane Villa, Holywell Lake, Wellington, TA21 0HF 03 Covenant Information Tenant Bettercare Keys Limitred The company engage in the provision of residential care and education to children. The company have reported the following financial results: 31/03/15 31/03/14 31/03/13 Turnover 38,244,750 38,377,668 37,599,321 Pre Tax Profit 987,639-53,342 251,470 Net Worth -4,813,277-6,237,579-6,555,624 The company have a CreditSafe rating of 55 (low risk) and a contract limit of 3,450,000. Guarantor Keys Child Care Limited (Guarantor) A subsidiary of Bettercare Keys Limited, operating from 80 childrens homes and 14 registered schools. In addition they operate from 4 crisis activity centres for short term care and children in crisis. In total they have 481 registered school places and all placements are funded through social services from the local authority. 31/03/15 31/03/14 31/03/13 Turnover 4,918,655 5,208,033 5,190,734 Pre Tax Profit 890,310 1,023,233 1,183,758 Net Worth 7,864,423 7,171,495 6,414,301 (www.keyschildcare.co.uk) The company have a Creditsafe rating of 58 (low risk) and a contract limit of 540,000. Tenure The property is held Freehold. Lease Summary The property is held on a business tenancy dated 31 March 2016 for a term of 8 years, expiring on 30 March 2024 (without break) at a rent of 42,000 per annum. The lease incorporates rent reviews on a 3 yearly basis on an upwards only basis calculated by reference to the index value of the Retail Price Index,subject to a minimum uplift calculated at 2.5% per annum compounded. The minimum increases upon review in 2019 and 2022 are 45,360 and 48,989 per annum respectively. The tenant is to keep the property in good repair. The lease is excluded from sections 24 to 28 of the Landlord & Tenant Act 1954. VAT The property is not elected for VAT. EPC The property has an EPC of C (71).
Deane Villa, Holywell Lake, Wellington, TA12 0HF 05 Contacts Viewing Arrangements For further information please contact : Alder King Property Consultants Suite 327, Bridge House 7 Bridge Street Taunton Somerset TA1 1TG Andrew Maynard 01823 444879 amaynard@alderking.com www.alderking.com Or via our Joint Agents: Greenslade Taylor Hunt (01823 334455) Proposal Offers sought in excess of 520,000 reflecting a net initial yield of 7.71% assuming purchasers costs of 5.8% SUBJECT TO CONTRACT AM/Nov2016 Important: Alder King for themselves and for the vendors of this property, whose agents they are, give notice that: 1. The particulars contained herein are for guidance purposes only and do not constitute either part or whole of an offer or contract. 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact, and must satisfy themselves as to their correctness. 3. No person in the employment of Alder King has any authority to make or give any representations or warranties whatsoever in relation to these properties. 4. No responsibility can be accepted for expenses incurred by intending purchasers in inspecting and considering the properties which are offered. Under the Control of Asbestos Regulations 2006 (CAR 2006), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAR 2006 is an offence and could adversely affect the value of the property. The detection and management of asbestos and asbestos related compounds is beyond the scope of our expertise and does not form part of the services that we have agreed to provide in respect of the property. Accordingly: 1. Alder King do not accept any responsibility for, and you should not place any reliance on us in respect of, the detection and/or management of any asbestos and/or asbestos related compounds contained in the property. 2. We strongly recommend that you obtain advice from specialist environmental consultants in respect of asbestos related issues.