OFFICE & RESIDENTIAL INVESTMENT Charles House, Gosport Marina, Mumby Road, Gosport, Hampshire, PO12 1FJ
Investment Summary Gosport is a popular Hampshire seaside town, which is located at the mouth of Portsmouth Harbour. Office and marina facilities building situated within Gosport Marina one of the principal marinas in Portsmouth Harbour. Tenant s occupation of building is integral to the running of the marina. 150 year long leasehold interest from 27th January 2000 (133 years remaining) at a peppercorn. Modern detached mixed use office and residential block. 5,791 sq ft office let on a 20 year effective FRI lease from 1st February 2004, without break for 70,000 pa (approx. 12 psf). Let to Premier Marinas (Gosport) Ltd, which has a very low risk Experian credit rating of 91/100. Four residential apartments let on ASTs, at a gross rent of 43,200 pa. The combined, gross rental income is 113,200 pa. Offers in excess of 1,775,000 (One Million, Seven Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 6% assuming purchasers costs of 5.91%. 2
Location Gosport is a popular seaside town in Hampshire; it has a population size in excess of 80,000 and is located on the central south coast of England. Gosport is situated approximately 4 miles to the west of Portsmouth and 11 miles to the east of Southampton and occupies a peninsular bound by Portsmouth Harbour and the Solent. Road access is via the A32 (Fareham Road) which is the principal arterial route to the Gosport peninsular and links to the A27 and M27 (Junction 11) at Fareham. The M27 links the major towns and cities of the Solent and provides access to the M3 and the A3. The Gosport Ferry service (located just north of Gosport Marina) provides a regular pedestrian crossing to Portsmouth Harbour. It has a journey time of 4 minutes, departs every 7.5 minutes at peak times and runs 365 days a year from 5.30am until midnight. Portsmouth Harbour railway station has regular direct rail services to London Waterloo (journey time of approximately 1 hour 40 minutes), the bus station provides links to many major cities across the UK and the Wightlink and International ferry terminals provide crossings to the Isle of Wight and France and Spain. Flat 4 3
Situation Charles House forms part of the Gosport Marina development which is one of the principal marinas in Portsmouth Harbour, providing boat moorings, dry stacking, toilet, wash and laundry facilities, an on site café/restaurant, high quality residential, office and business accommodation and associated car parking. The property overlooks, Portsmouth Harbour, the Historic Dockyard and Gunwharf Quays Shopping Centre. It is within walking distance to Gosport Town Centre and the Gosport Ferry Terminal, which provides regular links to Portsmouth. Gosport Marina is accessed via Mumby Road (A32) the main arterial route in and out of the town. Local occupiers include STS Defence Ltd, Aldi, Vortec Marine, Marine Tech, Coffee no.1, The Boat House Café and Clipper Racing. 4
Description The property comprises a modern detached office and residential building of steel frame and brick construction under a profile metal, shallow pitch roof. Internally, the property provides 5,791 sq ft (538.1 sq m) of office space over the ground and 1st floors. The office space is currently arranged to provide four separate office suites and laundry, toilet and wash facilities for use by the berth holders of the marina, making this property integral to the running of the marina, reducing the tenant s likelihood of wanting to vacate. To the second and third floors there are four modern self contained residential apartments with separate lift and stair access. Two of the apartments have two bedrooms, and two have three bedrooms, each bedroom has en-suite facilities. All apartments have good size balconies to the front of the property providing views out to sea and towards Portsmouth. There are two lifts within the property, one for both the residential and commercial tenants and another service lift for use by the commercial tenants only. Externally there are bin stores and allocated car parking for 15 cars, including one disabled space. Flat 4 Accomodation Schedule of commercial areas: Description Sq ft Sq m Ground Floor Offices/ Laundry Room 1 st Floor Offices/ Wash Facilities 2,995 278.3 2,796 259.8 Total Office Area 5,791 538.1 Measured on an NIA basis in accordance with IMPS. Schedule of residential areas: Description Sq ft Sq m Apartment 3 (3 bedroom) 1,385 128.6 Apartment 4 (2 bedroom) 965 89.6 Apartment 5 (3 bedroom) 1,385 128.6 Apartment 6 (2 bedroom) 965 89.6 1 st Floor Office Total Residential Area 4,700 436.4 Measured on a GIA basis. 5
Tenancies The commercial unit to the ground and first floors of the property is let to Premier Marinas (Gosport) Limited by way of an effective full repairing and insuring lease, for a term of twenty years from 1st February 2004 ending 26th January 2024. There are no break clauses and the lease contains a provision for an upwards only rent review after every fifth year of the term. The current rent for the commercial element is 70,000 pa which equates to approximately 12.00 per sq ft pa. The tenant has underlet three of the four office suites to Clipper Racing, Clipper Brokerage and Sail Training International. Premier Marinas occupy a ground floor office suite and provide and maintain the wash, toilet and laundry facilities for use by marina customers. The four residential apartments provide a total rental income of 43,200 pa and are each let on an Assured Shorthold Tenancy, full tenancy details are provided below: Tenancy Schedule Flat 3 Unit Tenancy Description Passing rent pa Commercial Unit Effective FRI 20 year lease expiring 26.01.2024 Ground and 1st floor office suites and customer facilities 70,000 Apartment 3 Extended AST expiring 24.07.2017 2nd floor, 3 bedroom apartment 11,100 ( 925 pcm) Apartment 4 Extended AST expiring 03.08.2017 2nd floor, 2 bedroom apartment 10,500 ( 875 pcm) Apartment 5 Periodic AST expiring 19.06.2015 (holding over) 3rd floor, 3 bedroom apartment 11,400 ( 950 pcm) Apartment 6 Extended AST expiring 27.12.2016 3rd floor, 2 bedroom apartment 10,200 ( 850 pcm) Total 113,200 GF Office 6
Tenure Long Leasehold. 150 year lease from 27th January 2000 (133 years remaining) subject to a peppercorn rent. Covenant Information Premier Marinas (Gosport) Limited trading as Premier Marinas (registration number 04988074) are a subsidiary of Premier Marinas Ltd who own and operates nine of the UK s most prestigious marinas, offering wet and dry berthing for over 7,000 boats. Flat 5 The parent company was established in 1994 and had a group turnover of 24.9 million in 2015. Premier Marinas (Gosport) Limited have an Experian credit rating of 91/100, had a turnover of 3.29 million in 2015 and are deemed to be of very low risk. A copy of the credit report is available in the data room. VAT The property is elected for VAT. It is proposed the property is sold by way of a Transfer of Going Concern (TOGC). EPC The commercial space has two EPC ratings of D with scores of 78 and 89 and the residential units each have D ratings with scores of 69, 70, 75 and 77. Copies of the Energy Performance Certificates are in the data room. GF Office Service Charge The commercial tenant is responsible for their proportion of the buildings maintenance, insurance and estate/marina charges, payable by way of a service charge. The landlord is responsible for the residential element of the building. Further information regarding the service charge is available in the data room. 7
Further information To arrange inspections contact: Proposal Offers are sought in excess of 1,775,000 (One Million, Seven Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6% assuming purchasers costs of 5.91%. Julian Walker jwalker@vailwilliams.com 023 8082 0905 07836 774 406 Robert Lee rlee@vailwilliams.com 023 8082 0920 07880 362 951 Data Room Supporting documentation relating to the property is available in the Data room for access please contact Liz Dixon on ldixon@vailwilliams.com MISREPRESENTATION ACT 1967 Vail Williams as for the vendors themselves give notice that: 1) These particulars do not constitute an offer, or contract or any part thereof. 2) The statements contained in the particulars are made in good faith but are issued without responsibility on the part of Vail Williams or vendors and are not to be relied upon as statements or representations of fact. 3) Intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements made herein. 4) The vendor does not make or give, nor is Vail Williams or its staff authorised to give, any representation or warranty in respect of the property. 5) All negotiations are subject to contract and exclusive of VAT unless otherwise specifically stated. Sep 2016. 8