Multi-Let Office Investment Opportunity Sol House, 29 St. Katherine s Street, NN1 2QZ
64a Park Inn by Radisson 1 to 2 Investment Summary Refurbished, multi-let office investment, in a prominent location in town centre 31,352 ft² office building providing suites from 524 ft² 4,535 ft² Prominent town centre location, situated on the ring road, only 500 metres from the town centre, opposite the Park Inn by Radisson 89% let to 4 tenants on 11 leases with additional income from telecoms mast Current income 359,173 per annum (average rent 12.63 per ft²) ERV 434,939 per annum (average rent 13.65 per ft²) We are instructed to seek offers in excess of 3,970,000 (Three Million Nine Hundred and Seventy Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.5% with a reversionary yield of 10.3% assuming purchasers costs at 6.54% This price reflects an underlying capital value of 126 per ft² Location The town of is situated within the county of shire. The town occupies a strategic location in the East Midlands approximately 80 kilometres (50 miles) due east of Birmingham and 106 kilometres (66 miles) north west of London. The town has excellent road communications with junction 15 and 16 of the located 5 miles west of the town. The trunk road also provides direct link to the M40 in the south west, offering excellent access to Oxford and Birmingham. train station is a 5 minute walk away and is on the west coast mainline which provides regular rail services between London and Birmingham. The shortest times for both London and Birmingham is circa 1 hour. Situation Sol House is well situated on the edge of the town ring road, approximately 500 metres to the west of the town centre. The property is situated on St. Katherine s Street which has direct access off the town s ring road, Horse Market. In close proximity to the property is Sol Central which is a modern mixed use scheme and includes a range of bars, restaurants, a multiplex cinema and a 375 space multi-storey car park. Directly opposite Sol House is the Park Inn by Radisson which is a purpose built hotel providing 146 bedrooms and leisure facilities including a gym and swimming pool. In addition the hotel has a large pay and display car park (186 spaces) which is a useful addition to the subject property. The property is close to the towns new bus station, Northgate. ST MARY S STREET Vue Cinemas Sol MARE FAIR 30m HORSE MARKET (A508) 63 57 51 6 7a 7 0m 30m 4 2 Hall ST KATHERINE S SQUARE 29 29 64 County Court Bulk Centre 52 Hustlers Sports Bar Memorial Square ST KATHERINE S STREET 21 to 27 48 44 46 42 40 36 34 GOLD STREET 49a 49 43 41 Gold Street Mews 38 3 1 3 5 7 9 11 15 17 ST PETERS WALK Poundland 33 31 2 9 8 10 12 & 14 I N V E S T M E N T O P P O R T U N I T Y PAGE 2
Description The property comprises a multi storey office building extending over ground and five upper floors. The building was constructed in the early 1980 s. The offices are laid out in two wings, either side of a central lift core with a manned reception at ground floor level. The landlord has carried out significant refurbishment works recently in the common areas and also in conjunction with tenants on a number of floors, providing a bright and attractive working environment. The contract for the works was in excess of 1 Million. Detailed information regarding specific works are available upon request. The majority of the accommodation has been refurbished providing open plan space. The building provides the following specification: G01 Air conditioning Double glazing Perimeter trunking Central heating Two passenger lifts Suspended ceilings with recessed lighting Secure parking for 8 cars The vacant suites on 1st and 5th floors are unrefurbished. G02 Ground Floor Plan Not to scale. For information purposes only. Accommodation The property extends to 2,912 m² (31,352 ft²) on a net internal area basis. Individual suites are detailed in the tenancy schedule. The site extends to a total of 0.124 hectares (0.307 acres). The car park is accessed off St. Katherine s Street via a roller shutter door and provides 8 car spaces. I N V E S T M E N T O P P O R T U N I T Y PAGE 3
Covenant Information The majority of the income (71%) is secured against Xbridge Ltd t/a Simply Business. Xbridge Ltd t/a Simply Business 31/12/2015 31/12/2014 31/12/2013 Company No. 02762625 (000 s) (000 s) (000 s) Turnover 38,096 29,104 25,081 Profit/Loss before Tax 5,000 2,890 2,675 Tangible Net Worth 12,327 8,787 7,214 Net Current Assets 10,182 7,272 10,074 Tenure Freehold. Service Charge The suites are let on effective full reparing and insuring leases and a comprehensive service charge is in place. The service charge is currently budgeted at 6.40 per ft² and includes a manned reception. Estimated Rental Value A number of recent transactions in the building have set the rental tone for refurbished accommodation at 13.65 per sq.ft. We consider the ERV for the building to be 434,939 per annum, an increase of 17% on the current rent roll. VAT We understand that the property has been elected for VAT. We believe that the transaction can be treated as a transfer of a going concern (TOGC). Energy Performance Certificate The property has a single EPC rating of E125. A copy of the certificate is available upon request. I N V E S T M E N T O P P O R T U N I T Y PAGE 4
Schedule of Tenancies The Property is let to 4 tenants on 11 leases with two suites currently vacant, occupancy is currently 89%. There is one additional lease to a telecoms provider. The WAULT for the property is 7 years/8 months to expiries and 5 years/6 months to breaks. The overall headline rental income is 359,173 per annum. Suite Tenant Floor Area Lease Start Lease Expiry (Breaks) Rent Rent pa Rent ERV pa ERV Comments (sq.ft) Review ( /sq.ft) ( /sq.ft) Suite G01 Xbridge Limited t/a Simply Business 524 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 7,142 13.63 7,150 13.65 Inside the Act. The break is subject to 6 months notice. Suite G02 Xbridge Limited t/a Simply Business 4,878 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 62,451 12.80 66,600 13.65 Inside the Act. The break is subject to 6 months notice. Suite 101 Vacant 1,744 0 0.00 23,800 13.65 Terms out to a potential occupier on a 10 year lease with tenant break after 5th year at ERV. Suite 102 Xbridge Limited t/a Simply Business 4,535 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 61,884 13.65 61,900 13.65 Inside the Act. The break is subject to 6 months notice. Suite 201 Pearson Professional Assessments 1,744 01/10/2014 30/09/2019 (30/06/2017) 17,250 9.89 23,800 13.65 Outside the Act. 12 months notice on break which has Limited not been received. Suite 202 Xbridge Limited t/a Simply Business 4,535 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 58,860 12.98 61,900 13.65 Inside the Act. The break is subject to 6 months notice. Suite 301 Xbridge Limited t/a Simply Business 1,744 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 23,814 13.65 23,800 13.65 Inside the Act. The break is subject to 6 months notice. Suite 302 Xbridge Limited t/a Simply Business 4,535 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 57,807 12.75 61,900 13.65 Inside the Act. The break is subject to 6 months notice. Suite 401 Xbridge Limited t/a Simply Business 1,744 23/12/2016 22/12/2026 (23/12/2023) 23/12/2021 23,625 13.55 23,800 13.65 Inside the Act. The break is subject to 6 months notice. Suite 402 Vanessa Lawrence & Others 1,520 31/12/2012 30/12/2017 15,160 9.97 20,748 13.65 Not in occupation. Inside the Act. Suite 403 Vanessa Lawrence & Others 1,555 31/12/2012 30/12/2017 17,180 11.05 21,226 13.65 Not in occupation. Inside the Act. Suite 404 Logistics Support Analysts Limited 550 23/09/2010 22/09/2015 7,000 13.65 7,510 13.65 Holding over. Inside the Act. Suite 501 Vacant 1,744 0 0.00 23,800 13.65 Aerial Hutchinson 3G UK Limited and 0 01/11/2005 31/10/2020 01/11/2017 7,000 0 7,000 0 Mutual break. 12 months notice. Outside the Act. T-Mobile (UK) Limited Substation Western Power Distribution 0 07/08/1994 06/08/2015 5 0 5 0 Inside the Act. (East Midlands) PLC 31,352 359,173 434,939 I N V E S T M E N T O P P O R T U N I T Y PAGE 5
PROPOSAL We are instructed to seek offers in excess of 3,970,000 (Three Million Nine Hundred and Seventy Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.5% with a reversionary yield of 10.3% assuming purchasers costs at 6.54%. This price reflects an underlying capital value of 126 ft². I N V E S T M E N T O P P O R T U N I T Y PAGE 6
PUBLIC SECTOR HQ ASPERS CASINO CARLSBERG COLLEGE STREET LLOYDS BANK YORKSHIRE BANK TRAVELODGE ICELAND JUST FOR PETS WOOLMONGER STREET ST PETER S WAY RETAIL PARK ARGOS POUNDLAND ST KATHERINE S HOUSE TRIBUNAL HOUSE SOL HOUSE GOLD STREET Memorial Square HORSE MARKET VUE CINEMA SOL NORTHAMPTON ST KATHERINE S STREET A508
BRIDGE ST Sol House, 29 St. Katherine s Street, NN1 2QZ A45 A5 Railway Station 16 Starbucks Coffee A4500 50 m BUGBROOKE 1 Km ST ANDREW S RD A4500 KISLINGBURY A4500 CASTLE ST ST MARY S ST UPTON ROTHERSTHORPE VUE Cinemas Sol MARE FAIR 15A HARLESTONE RD A5076 A508 HORSE MARKET A5123 GREYFRIARS Park Inn by Radisson ST KATHERINES ST GOLD ST Argos St Peters Square P A5123 SOL HOUSE QUEENS PARK A5095 TOWCESTER RD MERE WAY NORTHAMPTON A508 15 COLLEGE ST Travelodge Aspers Casino Bus Station A45 SHEEP ST BRADSHAW ST Debenhams SOL HOUSE MERCES ROW A5123 GEORGE ROW A5095 QUINTON The Grosvenor Shopping Centre Market ANGEL ST A5123 A45 A428 GREAT HOUGHTON Guildhall Tesco Market DERNGATE Royal & Derngate Museum Art Gallery BRAFIELD- ON-THE-GREEN BIRMINGHAM M42 EVESHAM 3 A 7 STRATFORD UPON AVON 10 Km A429 M6 15 14 3 COVENTRY ROYAL LEAMINGTON SPA CHIPPING NORTON M40 M6 A423 Jonathan Ward T 0121 427 3366 M 07813 919866 E jonathan.ward@collingwoodrigby.co.uk 2 BANBURY RUGBY A425 11 M45 KETTERING NORTHAMPTON MILTON KEYNES Collingwood Rigby LLP, 6 Vine Terrace, High Street, Harborne, Birmingham B17 9PU 10 19 M40 9 17 A14 A5 MARKET HARBOROUGH 16 BUCKINGHAM A452 15A SOL HOUSE CORBY A509 A422 A6 A605 BEDFORD BICESTER LUTON Anthony Collingwood T 0121 427 3366 M 07973 155051 E anthony.collingwood@collingwoodrigby.co.uk 14 13 A5 A6 10 Callum Wing T 0121 427 3366 M 07775 751309 E A1(M) A1 14 10 A1(M) callum.wing@collingwoodrigby.co.uk MISREPRESENTATION CLAUSE: Collingwood Rigby acting for themselves and for the vendors or lessors of this property whose joint agents they are give notice that: (i) The particulars are set out as a general outline for the guidance of the purchasers and do not constitute part of an offer or contract; (ii) All descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given without responsibility and any intending purchasers should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) No person in the employment of Collingwood Rigby has any authority to make or give any representation or warranty whatever in relation to this property. (iv) All rentals and prices are quoted exclusive of VAT. (v) All plans and maps provided with the particulars are for identification purposes only. March 2017.