CITY ROAD LONDON EC1V 1NG Prominent Office Investment

Transcription

1 The Property Prominent Office Investment Headquarters Building let to The National Autistic Society

2 INVESTMENT SUMMARY A prominent office building fronting City Road, totalling 7,747 sq ft (719.5 sq m) Situated within 100 metres of Angel Underground Station, close to the junction of Upper Street A total current net rent of 160,416 per annum ( per sq ft overall) Freehold The property is let in its entirety to the National Autistic Society from 13th May 2011 for a term of 10 years with tenant only break options in 2014, 2016 and 2018 Occupied as their main UK Headquarters. A low capital value of 261 per sq ft Long term potential for change of use subject to VP and the necessary consents New build residential schemes are achieving in region of c. 900 per sq ft We are instructed to seek offers in excess of 2,025,000 (TWO MILLION AND TWENTY FIVE THOUSAND POUNDS), subject to contract and exclusive of VAT. A sale at this level would reflect an attractive net initial yield of 7.50%, assuming standard purchasers costs of 5.80%

3 Business Design Centre N1 Shopping Centre The Court House Duncan Terrace Angel Square City Basin The Angel Building Virgin Active City Road Angel Gate 261 City Road 259 City Road City University Campus City Forum

4

5 LOCATION The property is located in Islington, approximately 2.5 miles (3.75 km) north east of the West End, 2 miles (3 km) north west of the City and 1 mile (1.6 km) east of King s Cross. The London Borough of Islington has an urban population of 199,230 (Census 2010). Transport facilities are excellent with Angel Underground Station (Northern line) providing direct access to The City, London King s Cross and Euston Mainline railway station. By road, Islington is located on the A1 and the A501 inner ring road, which provides direct access to the West End, the City and North London. City Road forms part of a key office district within The City Fringe and to the south, the Old Street Roundabout and its surrounds have become a core focus for the IT related business. SITUATION ST PANCRAS EVERSHOLT STREET TAVISTOCK SQ SOUTHAMPTON ROW K I N GSWA Y Euston E U S T O N R O A D TOTTENHAM COURT R O A D Soho WAY Y O R K R O A D King s Cross King s Cross St Pancras G R A Y S Bloomsbury R O A D C A L E D O N I A N P E N T O N V I L L E R O A D I N N Russell Square Holborn Caledonian Road KING S C R OSS ROAD R O A D T H E O B A L D S R O AD H I G H H O L B O R N Holborn Business Design Centre R O S E B ERY L I V E R P O O L R O A D Finsbury Sadler s Wells Chancery Lane ANGEL AVENU E F L E ET S T R EET U P P E ST J OH FA R R I N G D O N R O A D N S T A 1 R S T R E E T R E E T CANO N BUR C I T Y R O AD GOS W E L L R O A D A L D E R SG A T E Y ROAD N EW E S S E X R OAD Islington Clerkenwell Farringdon City Thameslink S T R E E T O L D S T R E E T C HEA C ANNON STREET Essex Road NOR TH ROA D Old Street P S IDE Moorgate C I T Y R O A D L O N D O N W A L L City Hoxton CITY ROAD Bank COMMERCIAL ROAD Liverpool Street B I S H O P S G A T E R O A D A 1 0 S L A N D K I N G The property is situated on the north side of City Road at its junction with Duncan Terrace, 100 metres to the east of Angel Junction (Angel Tube station), where Pentonville Road, Goswell Road and St John s Street and Upper Street all meet. Islington is a thriving and vibrant cosmopolitan London village and like many suburbs, it has seen considerable regeneration. Major developments in the Borough include; The Angel Building, Angel Gate, Angel Square, The N1 Shopping Centre, The Business Design Centre and Central Foundation School. The area surrounding the property comprises a mixture of residential, office and leisure. Nearby office occupiers include: Balfour Beatty, HM Customs and Excise, The Financial Training Company, Royal Bank of Scotland, BT plc, Rail Track plc, Citizens Advice Bureau, Royal Mail, etc. To the rear of the property, Duncan Terrace comprises a predominantly residential terrace of Georgian and Victorian houses. We understand that a 2 bedroom flat at 27 Court House, Duncan Terrace (a new build scheme) was recently sold for 550,000 which represents a capital value of c. 900 per sq ft GIA. Immediately to the east of the property, planning consent has been submitted for the construction of a 36 storey residential development (no. 261) and a mixed use scheme at no. 259 over 29 storeys to provide commercial and residential accommodation.

6 DESCRIPTION The property was built in the 1980 s and comprises a self-contained office building, arranged over basement, ground and four upper floors. It is of concrete frame construction with brick elevations, with the fourth floor being set back behind a mansard roof. The basement extends out further to the rear. To the front of the property there is a large external area providing approximately 6 car parking spaces and a bike shelter. The raised ground floor entrance leads into an open plan reception area with access to the upper floors via an 8 person passenger lift. There is a stairwell to the front and rear of the property The accommodation is generally open plan throughout with natural light gained from the front elevation via double glazed metal framed units. The specification includes; solid carpeted tiled floors, perimeter trunking, suspended ceiling, category II lighting, wall mounted radiators served by a gas-fired central heating system and air conditioning cassette units throughout most floors. It is worth noting that the tenant has licensed to undertake light structural works to intercommunicate the subject property to the adjoining building (no 391). SCHEDULE OF ACCOMMODATION We have been informed by our client that the property provides the follow net internal areas: Floor (sq m) (sq ft) Basement ,399 Ground (Reception) Ground ,027 First ,247 Second ,259 Third ,259 Fourth ,208 TOTAL ,747

7

8 RATING ASSESSMENT We understand that the relevant entry appearing in the 2010 rating list is as follows: Building 162,000 Car Parking 9,000 Total 171,000 TENANCY The property is let in its entirety to The National Autistic Society for a term of 10 years from 13th May 2011 at a contracted gross rent of 175,000 per annum. The next rent review is due on 13th May The tenant has been granted one month rent-free in the month of June throughout the term. Therefore the total net rent received is 160,416 per annum exclusive. The tenant has an option to break in years 3, 5 and 7 (i.e. 13th May 2014, 2016, 2018), subject to 6 months prior written notice. The National Autistic Society s lease is let on full repairing and insuring terms, however the Tenant s repairing obligations are limited to repairing and maintaining the property as it was granted to them and they are not required to replace any of the services or building fabric. This includes the comfort cooling system, windows, roof coverings, boiler and plumbing pipework, as well as the lighting, small power and fire alarm services. SITE AREA The site area of the property is hectares (0.144 acres). RENTAL VALUE On the basis of capitalising the 6 car parking spaces at per week and placing a rate of 50% on the basement office accommodation, we calculate that the current passing rent equates to per sq ft. PLANNING The property is situated within the Duncan Terrace Conservation area.

9 TENURE The property is held Freehold. VAT The property has been elected for VAT. COVENANT STRENGTH The National Autistic Society is a large private limited company involved in the provision of services for people with Autism. It is a registered Charity, limited by guarantee and in 2009 the Autism Act achieved Royal Assent - the first ever disability specific legislation in the history of the UK. The NAS was first registered as a Charity in 1962 and was incorporated in 1975 as a company limited by guarantee. Their financial strategy is to break even year on year in real terms which they managed to achieve in the year ending 31st March Their accounts for the last 3 years are reported below. Year End 31/03/ /03/201 31/03/2009 Total incoming resources 91,302,000 88,310,000 84,522,000 Total assets less current liabilities 33,474,000 30,759,000 32,398,000 Total funds 22,190,000 17,253,000 22,657,000

10 PROPOSAL We are seeking offers in excess of 2,025,000 (TWO MILLION AND TWENTY FIVE THOUSAND POUNDS), subject to contract and exclusive of VAT. A sale at this level would reflect an attractive net initial yield of 7.5%, assuming standard purchaser s costs of 5.80%. Jonathan Milich jmilich@cbga.co.uk Alex Butler abutler@cbga.co.uk Misrepresentation Act. This brochure has been produced for illustrative purposes only and all prospective buyers should note that it is solely intended for their guidance and assistance and nothing contained in it should be considered as a definitive representation or legally binding warranty. All areas, measurements and layouts referred to are given as a guide only and are subject to change due inter alia to design development. Our obligations under the Property Misdescriptions Act 1991 are not affected and every effort has been made to ensure that no statements made in this brochure are false or misleading. No material contained within this brochure may be reproduced without prior consent. May 2012 Designed & produced by Oracle Creative