2 The Braccans, London Road, Bracknell

Transcription

1 2 The Braccans, London Road, Bracknell High Yielding Thames Valley Multi-let Office Investment INVESTMENT SUMMARY Bracknell is an established office market in the heart of the Thames Valley Bracknell will benefit from a 750 million mixed-use regeneration scheme which will rejuvenate the town centre 2 The Braccans is situated on London Road, Bracknell s traditional office pitch, close to the town centre and railway station Modern office building extensively refurbished in 2005 Excellent car parking ratio of 1:237 sq ft Freehold Multi-let to three tenants with D&B ratings of 5A 1, 3A 1 and 2A 1 Total income of 345,685 pa Attractive net initial yield of 8.5%

2 LOCATION Bracknell lies in a strategic position in the heart of the Thames Valley approximately 32 miles west of London, 9 miles south of Maidenhead, 11 miles south east of Reading and 16 miles north west of Guildford. The town benefits from excellent road communications with easy access to the M3 and M4 motorways. The A329(M) provides dual carriageway access to the M4 (junction 10) 5 miles to the north east and the A322 provides access to the M3 (junction 3) 4 miles to the south east. Bracknell railway station provides a direct train service to London (Waterloo) with a journey time of approximately 60 minutes. London s Heathrow and Gatwick Airports are both easily accessible, located 20 miles to the east and 45 miles to the south east respectively. The town s excellent communications, together with its affluent economic profile, means this established commercial location is favoured by both national and international occupiers. Local occupiers include AstraZeneca, Cable & Wireless, Dell, Hewlett Packard, ICL, Johnson & Johnson, 3M, Panasonic and Fujitsu Siemens. BRACKNELL REGENERATION Bracknell Forest Borough Council and Bracknell Regeneration Partnership are working together on a comprehensive 750 million mixed-use regeneration scheme which will rejuvenate Bracknell town centre. The scheme will include approximately 56,000 sq m (602,799 sq ft) of new retail space, 62,000 sq m (667,384 sq ft) of new and replacement business space, 15,000 sq m (161,464 sq ft) of leisure and entertainment facilities and approximately 1,000 new homes. Completion is scheduled for 2013/2014. Further information can be found on SITUATION 2 The Braccans is situated in Bracknell s traditional office pitch, in close proximity to the town centre and railway station. The property fronts London Road which connects Bracknell town centre and Ascot to the M25 motorway to the east. London Road has been the recent focus of significant inward investment which has enhanced and reinforced the commercial core to the east of the town centre. DESCRIPTION The property was constructed in 1995 and comprises a detached office arranged over ground, first and second floors. The building is of frame construction with brick elevations and glazed cladding to the front and rear elevations. The property mirrors the adjoining building (let to Johnson & Johnson) and together forms a striking development. The accommodation is arranged around a central core and offers maximum flexibility with self-contained suites ranging in size from sq m (1,251 sq ft) to sq m (5,555 sq ft). Internally, the accommodation was extensively refurbished in 2005 to a modern, high quality standard and benefits from the following specification: Attractive reception area with glazed revolving doors Raised floors Suspended ceilings with Cat II lighting VRV air conditioning system Flexible, open plan floor plates 10-person (800 kg) passenger lift serving all floors including basement Two stairwells (front and rear) Male and female WCs on each floor Security barrier Externally, the site extends to approximately 0.21 hectares (0.52 acres) and benefits from a secure underground car park (44 spaces) with additional parking to the rear of the building (24 spaces) providing an excellent ratio of 1:237 sq ft.

3 ACCOMMODATION Floor Description sq m sq ft Ground Suite 1 Offices ,728 Ground Suite 2 Offices ,251 First Offices ,555 Second Offices ,555 Total 1, ,089 TENURE Freehold. TENANCIES The property is multi-let to three tenants with an 18 month rent, rates and service charge guarantee on the vacant first floor. The total income is 345,685 pa. The attached schedule provides full tenancy information. COVENANT INFORMATION Johnson & Johnson Medical Ltd (27% of total income) Johnson & Johnson was founded in 1886 and is one of the most comprehensive health care businesses in the world. They have more than 250 operating companies in 57 countries employing 119,500 people. Further information can be found on Date 31/12/ /01/ /01/2005 ( ) ( ) ( ) Sales Turnover 420,936, ,296, ,489,000 Pre-tax Profit 44,128,000 47,863,000 77,453,000 Total Assets less 257,496, ,655, ,270,000 Current Liabilities Source: ICC D&B rating 5A 1. E.Surv Ltd (8% of total income) E.Surv Chartered Surveyors is the largest distributor of valuation instructions in the UK and was responsible for the panel management of over 950,000 instructions in The accommodation is currently occupied by Chancellors Associates, an independent national firm of Chartered Surveyors who are part of the E.Surv group of companies which also includes Your Move. Further information can be found on Date 31/12/ /12/ /12/2005 ( ) ( ) ( ) Sales Turnover 71,833,000 68,278,000 56,388,000 Pre-tax Profit 20,445,000 16,696,000 14,043,000 Total Assets less 16,994,000 22,461,000 26,719,000 Current Liabilities Source: ICC D&B rating 3A 1.

4 Atmel UK Ltd (29% of total income) Atmel Corporation was founded in 1984 and is a worldwide leader in the design, manufacturing and marketing of advanced semiconductors. The company employs approximately 7,400 people worldwide with manufacturing facilities in USA and Europe with test and assembly facilities in the Philippines and Malaysia. Further information can be found on Date 31/12/ /12/ /12/2004 ( ) ( ) ( ) Sales Turnover 2,285,000 2,272,000 2,498,000 Pre-tax Profit (Loss) (129,000) 424,000 (217,000) Total Assets less 3,696,000 3,848,000 3,548,000 Current Liabilities Source: ICC D&B rating 2A 1. BRACKNELL OFFICE MARKET Bracknell is an established office centre in the heart of the Thames Valley with an estimated office stock of 464,500 sq m (5 million sq ft). The current occupational market is extremely positive with take-up for 2008 to date of approximately 10,591 sq m (114,000 sq ft). This is comfortably ahead of the 2007 figure and shows take-up returning to the 5-year average level of 18,580 sq m (200,000 sq ft) per annum. Letting transactions in 2008 include: London House, London Road 1, sq m (13,910 sq ft) let to Software AG on a 10 year lease at per sq ft Columbia Centre, The Ring 1,858 sq m (20,000 sq ft) let to Quintiles on a 5 year lease at per sq ft Metier Centre, Berkshire Court, Western Road 2, sq m (29,708 sq ft) let to Bracknell Forest Homes on a 20 year lease (10 year break) at per sq ft Prime rents in Bracknell peaked at per sq ft in 2000 and are currently per sq ft which was set on the pre-let of Plot 5 Arlington Square to GMAC RFC Ltd. Quoting rents on existing Grade A space are in the region of per sq ft. The current supply of Grade A accommodation in Bracknell has reduced to its lowest point in the last 5 years, and with the improved level of take-up together with Bracknell s 750 million regeneration scheme, 2 The Braccans is well placed to benefit from the continued recovery in the Bracknell occupier market. VAT The property is elected for VAT. PRICING We are instructed to seek offers in the region of 3,850,000 (three million, eight hundred and fifty thousand pounds), subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 8.5% assuming purchaser s costs of 5.75%.

5 FURTHER INFORMATION For further information or to arrange an inspection please contact: King Sturge LLP 30 Warwick Street London W1B 5NH Noel Lander Alex Fordyce SUBJECT TO CONTRACT & EXCLUSIVE OF VAT Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge LLP nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. July 2008

6 2 The Braccans, London Road, Bracknell Tenancy Schedule Floor Tenant Accommodation Lease Details Current Income Comments sq m sq ft Start Expiry Review Break pa per sq ft Ground - Suite 1 Johnson & Johnson Medical Ltd ,728 14/09/ /09/ /03/2009 (Mutual) 92, Excluded from Sections of the Landlord & Tenant Act The break option may be exercised with effect from 14/03/2009 or a later date, provided that 6 months notice is given. Ground - Suite 2 E.Surv Ltd ,251 16/02/ /02/ /02/2010 (Tenant) 29, Excluded from Sections of the Landlord & Tenant Act First Vacant , , The vendor will provide an 18 month rent, rates and service charge guarantee from completion. Second Atmel U.K. Ltd ,555 28/07/ /07/ /07/ /07/2011 (Tenant) 101, Excluded from Sections of the Landlord & Tenant Act If the tenant does not exercise its break option, a 6 month rent free period will be granted. Total 1, , ,685

7 2 The Braccans, London Road, Bracknell

8 2 The Braccans, London Road, Bracknell Collins Bartholomew Limited Plotted Scale - 1: This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Crown Copyright. All rights reserved. Licence Number

9 2 The Braccans, London Road, Bracknell Crown Copyright All rights reserved. Licence number Plotted Scale - 1:7500 This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Crown Copyright. All rights reserved. Licence Number

10 The Braccans, London Road, Bracknell 7 19 to to to 36 El Sub Sta El Sub Sta Hall 37 Oak Bungalow to 18 BARN CLOSE 37 Oak Cottages BARN CLOSE a 2 2a 12 3 NEW ROAD BAY DRIVE 8 NEW ROAD The Braccans Shelter The Braccans Subway Shelter Foundation House Chy El Sub Sta Radius Court Subway Subway El Sub Sta El Sub Sta Eastern Crown Copyright All rights reserved. Licence number Plotted Scale - 1:1250 0m 10m 20m 30m This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Crown Copyright. All rights reserved. Licence Number