Marketing Report Heritage House 93 Eastworth Road KT16 8DX Prepared on behalf of London Property Investments Ltd 25 th September 2012 Prepared by: Nicolas Pocknall MRICS
Page No. Contents 1.0 INSTRUCTION 3 2.0 THE PROPERTY 3 3.0 ACCOMODATION 5 4.0 MARKET UPDATE 6 5.0 MARKETING 6 6.0 SUMMARY 8 7.0 APPENDIX 9 SUMMARY OF AVAILABLE OFFICE SPACE IN CHERTSEY 2
1.0 INSTRUCTION Hurst Warne received instructions from London Property Investments Ltd to market Heritage House jointly with Eggerdon & Holland in February 2011 and our appointment was subsequently confirmed formally on 26 th April 2011. Prior to this, Phil Eggerdon of Eggerdon & Holland (formally at Pearce & Co) gave initial advice to the landlord back in October 2006 whilst the previous tenant was in occupation. He gave updated marketing advice following refurbishment in April 2010 and started marketing the building formally in June 2010. 2.0 THE PROPERTY The premises comprise self-contained office accommodation with the main building being arranged over three floors and a rear extension providing additional offices over first and second floors. There is an attractive reception area with a marble effect floor and a steel glazed external canopy. The building has been tastefully refurbished throughout and offers modern quality offices with flexible floor space solutions for occupiers. The landlord has also installed new toilets and showers. It is worth pointing out that the landlord has installed numerous features such as alarm systems, door entry systems etc/ which is over and above a standard refurbishment. Furthermore, air cooling/heating has been installed so the building definitely is up to the standard required by current occupiers. Photos of the refurbishment can be seen below: 3
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There is on-site car parking to the front and rear and the first and second floor sections are capable of being sub-divided. In terms of location, Heritage House is prominently located on Eastworth Road which is one of the main routes into town centre. Amenities include shops, restaurants, banks and public car parking are all within walking distance. is strategically located for access to the M25 at Junction 11 as well as the national motorway network and Heathrow and Gatwick Airports. railway station provides a service to London Waterloo. 3.0 ACCOMMODATION We note that the premises provide the following approximate net internal floor areas: Ground Floor Reception 24.46 sq m 263.29 sq ft Left Wing 74.88 sq m 806 sq ft Right Wing 69.02 sq m 743 sq ft First Floor Front Section 216.08 sq m 2,326 sq ft (capable of being split) Rear Section 84.32 sq m 907.64 sq ft Floor Front Section 207.53 sq m 2,234 sq ft (capable of being split) Rear Section 81.29 sq m 875 sq ft ------------------------------------------------------------------------------------------------ Total Offices 733.13 sq m 7,891.64 sq ft 5
4.0 MARKET UPDATE The market remains extremely tough with little office letting activity taking place throughout the SW M25 area. Towns such Weybridge and Cobham have faired slightly better over the recession but still have empty offices that have been on the market for over 3 years. The location of Heritage House in is not an established office location which hinders the letablility when compared to town centre. It should also be pointed out that the client has over the period of marketing steadlily lowered the annual rental and offered increasingly attractive rent free periods as tenant inducements. Despite this there has been little or no demand for offices at Heritage House. 5.0 MARKETING We would confirm that all marketing initiatives are in place as follows: Brochure A high quality hard copy letting brochure has been produced and has been circulated to around 200 occupiers together with around 400 commercial property agents in the South West M25 who may have clients requirements for the premises. See below: 6
Letting Board A marketing board has been erected throughout the duration of marketing fronting onto Eastworth Road. It is worth pointing out that the board is fairly regularly vandalised and broken. Internet Marketing Both agents have the premises on their websites at www.hurstwarne.co.uk and www.eggerdonholland.co.uk. Furthermore, Heritage House has been uploaded on various other commercial property listing websites such as Focus and Novaloca. 7
6.0 SUMMARY In summary, Heritage has been extremely widely marketed over the past three years with very little interest being received. It is worth pointing out that the landlord has spent a considerable amount of money on the refurbishment and completed this to a high specification and despite this the agents have not been able to let the premises. It really is down to demand as the landlord has been very flexible in his stance with regards to rents received and also length of leases etc. I am happy to discuss my above thoughts in more detail if you so require. Nicholas Pocknall, MRICS T/ 01372 360190 E/ nic@hurstwarne.co.uk Hurst Warne & Partners LLP Subject to Contract and Without Prejudice. 8
AVAILABLE OFFICE SPACE WITHIN CHERTSEY 9
Address Floors & Charges Terms Description/Amenities 1 Culverdon House Abbots Way KT16 9LE 280,125 pa (approx 22.50 psf) 2nd Floor 3,210 298 22.50 242.10 Avail Ground 9,240 858 22.50 242.10 Avail a ground and second floor office accommodation within a modern three storey detached office building. An existing lease available until March 2014. 30 Days 2 Passenger Lift(s) Raised Floors Last Update: 19/09/2012 On market for circa 18 months. TOTAL 12,450 1,157 Total Outgoings: 96,135 pa (approx 7.54 psf) 74,700 pa (approx 6.00 psf) 36.04 psf 2 Parklands Bittams Lane KT16 9RG Not Specified 3rd Floor 7,381 686 NQ 2nd Floor 12,545 1,165 NQ 1st Floor 12,704 1,180 NQ Ground 13,062 1,213 NQ The development will comprise office space over ground to third floor. A new lease on terms to be agreed. Negotiable 126 Car Parking Spaces 2 Passenger Lift(s) Balcony Disabled Facilities LG7 Lighting Raised Floors Last Update: 05/10/2012 TOTAL 45,692 4,245 3 The Orega Centre 120 Bridge Road KT16 8LA 2nd Floor 6,300 585 NQ TOTAL 6,300 585 serviced office accommodation arranged over three floors. 350 per WS. Please contact the space provider for information on costs. Amenities:- Individually airconditioned offices. 3 floors of serviced offices. 2 passenger lifts. Shower. 4 meeting rooms for 30+ people. Secure on-site car parking. 24-hour CCTV security and access. State of the art IT and Telecoms. Staffed reception with postal service. Admin equipment and secretarial support on hand. Business lounge area with satellite TV and daily newspapers. Fully equipped kitchens on all floors. Daily office cleaning service. Negotiable 2 Passenger Lift(s) 24 Hour Access 68 Car Parking Spaces On-Site Management Reception Security System Storage Space Last Update: 19/09/2012 Half let since 2008. 10
4 Melita House 124 Bridge Road KT16 8LH 63,315 pa (approx 22.50 psf) 3rd Floor 2,814 261 22.50 242.10 Avail ground, and part of the second and third floors. A new FRI lease for a term to be agreed. 01/03/2006 Vacant 12 Car Parking Spaces Raised Floors Security System Last Update: 04/10/2012 TOTAL 2,814 261 Empty for 3 years. Total Outgoings: 22,512 pa (approx 8.00 psf) 13,226 pa (approx 4.70 psf) 35.20 psf 5 Chilsey House Chilsey Green Road KT16 9HB 222,102 pa (approx 18.00 psf) 1st Floor 3,921 364 18.00 193.68 Avail 1st Floor 4,497 418 18.00 193.68 Avail Ground 3,921 364 18.00 193.68 Avail TOTAL 12,339 1,146 ground floor office accommodation situated on the North Wing of the ground floor. A new FRI lease/s for a term by arrangement subject to periodic rent reviews. The lease will be up until September 2014. Two years rent free. 01/08/2003 Vacant 36 Car Parking Spaces Category 2 Lighting Disabled Facilities Raised Floors Reception Last Update: 20/09/2012 Total Outgoings: 103,771 pa (approx 8.41 psf) 67,864 pa (approx 5.50 psf) 31.91 psf 6 Heritage House 93 Eastworth Road KT16 8DY 118,380 pa (approx 15.00 psf) 2nd Floor 2,234 208 15.00 161.40 Avail 2nd Floor 875 81 15.00 161.40 Avail 1st Floor 2,326 216 15.00 161.40 Avail 1st Floor 908 84 15.00 161.40 Avail Ground 806 75 15.00 161.40 Avail Ground 743 69 15.00 161.40 Avail office accommodation on the ground first and second floor. The premises are available on a new lease direct from the landlord for a term to be agreed. First and second floor space is capable of being split. 30 Days 32 Car Parking Spaces Disabled Facilities Security Entry System Last Update: 16/07/2012 Subject property. TOTAL 7,892 733 11
7 Churchward & Systems House Gogmore Lane KT16 9AP 52,560 pa (approx 20.00 psf) 1st Floor 876 81 20.00 215.20 Avail 2nd Floor 876 81 20.00 215.20 Avail Ground 876 81 20.00 215.20 Avail 2,628 sq ft (244 sq m) of office accommodation across ground, first and second floors. 20 PSF. Rateable Value: 37,500. The property is available by way of a new lease on terms to be agreed. 30 Days Energy Performance Rating - C Last Update: 28/09/2012 TOTAL 2,628 244 43,470 pa (approx 16.54 psf) 8 Units A-c Hamilton Court Gogmore Lane KT16 8JX N/A Unit/suite- Unit B, 1st Floor 922 86 N/A Unit/suite- Unit B, Ground 858 80 N/A Freehold office accommodation arranged over the ground and first floors. Available freehold for 310,000. Vacant 6 Car Parking Spaces Entire Building Last Update: 02/10/2012 TOTAL 1,780 165 Sale Price: 310,000 Guide Price 9 Units A-c Hamilton Court Gogmore Lane KT16 8JX N/A Unit/suite- Unit C, 1st Floor 781 73 N/A Unit/suite- Unit C, Ground 709 66 N/A Freehold office accommodation arranged over the ground and first floors. Available freehold 265,000 Vacant 6 Car Parking Spaces Entire Building Last Update: 02/10/2012 TOTAL 1,490 138 Sale Price: 265,000 Guide Price 10 Gogmore Lane KT16 8JX N/A Unit/suite- Unit A, 1st Floor 645 60 N/A Unit/suite- Unit A, Ground 558 52 N/A Freehold office accommodation arranged over the ground and first floors. Vacant 6 Car Parking Spaces Entire Building Last Update: 02/10/2012 TOTAL 1,203 112 Sale Price: 220,000 Guide Price 12
11 Flaxman House Gogmore Lane KT16 9AP Not Specified 60,150 pa (approx 12.50 psf) 1st Floor 4,812 447 12.50 134.50 Avail TOTAL 4,812 447 the entire first floor of this 3 storey office building. Space is available from 2000-4812 sqft. A new effective full repairing/decorating & insuring lease is available for a term to be agreed. The lease will exclude the security of tenure and compensation provisions contained within the Landlord & Tenant Act 1954 Part 2 (as amended). 30 Days 16 Car Parking Spaces Last Update: 02/10/2012 12 Hamilton Court Unit D Gogmore Lane KT16 9AP N/A Total Size 1,752 163 N/A Freehold office accommodation arranged over the ground and first floors. Available freehold 310,000. Negotiable 8 Car Parking Spaces Entire Building Last Update: 02/10/2012 TOTAL 1,752 163 Sale Price: 310,000 Guide Price 13 Abbeymead House Gogmore Lane KT16 9AP 2nd Floor 3,381 314 NQ Ground 1,260 117 NQ NQ U/O 1st Floor 4,755 442 NQ TOTAL 9,396 873 office accommodation on the ground, first and second floors. The property is available either on a leasehold or freehold basis. Price and rent upon application. Business rates are payable direct to the Local Authority. For further information, please make representations direct to Runnymede Borough Council on 01932 425415. Our clients are proposing to carry out a refurbishment programme for the building to provide Grade A office accommodation. Negotiable 50 Car Parking Spaces Reception Last Update: 20/09/2012 14 Abbey Mead 73 Guildford Street KT16 9AS 8,501 pa (approx 11.26 psf) 1st Floor 755 70 11.26 121.16 Avail TOTAL 755 70 first floor office space, with suspended ceillings. A new full repairing /decorating & insuring lease is available for a term to be agreed. The Lease will exclude the security of tenure and compensation provisions contained within the Landlord & Tenant Act 1954 Part 2 (as amended). 30 Days 2 Car Parking Spaces Last Update: 02/10/2012 13
15 Laser House 75-79 Guildford Street KT16 9AS Not Specified 74,250 pa (approx 15.00 psf) 2nd Floor 2,320 216 15.00 161.40 Avail 1st Floor 2,630 244 15.00 161.40 Avail TOTAL 4,950 460 second floor offices, with a shared reception, and benefiting from a meeting room. A new full repairing and insuring lease is offered for a term to be agreed. Available from July 2011. 30 Days Last Update: 02/10/2012 Vacant for 2 years. 16 83-87 Guildford Street KT16 9AS 12,150 pa (approx 10.00 psf) Unit/suite- 2 1,215 113 10.00 107.60 Avail first floor office accomodation. A new FRI lease for a term by arrangement subject to periodic rent reviews. 01/09/2004 Vacant Category 2 Lighting Last Update: 20/09/2012 TOTAL 1,215 113 14,768 pa (approx 12.15 psf) 17 Heriot House 88-90 Guildford Street KT16 9AD 25,288 Per Annum (approx 12.50 psf) Suite A 915 85 12.50 134.54 Avail TOTAL 915 85 A new full repairing and insuring lease is available for a term to be agreed. The Lease will exclude the security of tenure and compensation provisions contained within the Landlord & Tenant Act 1954 Part 2 (as amended). The Suites are to let together or separately. Immediately on completion of legal formalities two office suites. 4 Car Parking Spaces Carpeting Kitchen Facilities Open Plan Layout Recessed Lighting Suspended Ceilings WC's Last Update: 08/05/2012 18 83-87 Guildford Street KT16 9AS 22,140 pa (approx 10.00 psf) Unit/suite- 1 2,214 206 10.00 107.60 Avail first floor office accomodation. A new FRI lease for a term by arrangement subject to periodic rent reviews. 01/09/2004 Vacant Category 2 Lighting Last Update: 20/09/2012 TOTAL 2,214 206 26,911 pa (approx 12.15 psf) 14
19 Galleon House 4-10 Guildford Street KT16 9BQ 11,000 pa (approx 10.00 psf) Unit/suite- 1, Ground 1,100 102 10.00 107.60 Avail TOTAL 1,100 102 office accommodation arranged over two floors and split into three suites. The accommodation totals 2,927 sq ft. A new lease for a term to be agreed. Negotiable Last Update: 20/09/2012 20 Airskill Building Hanworth Lane KT16 9JX N/A Unknown Floor 2,448 227 N/A Unit/suite- D 4,037 375 N/A Unknown Floor 1,141 106 N/A TOTAL 7,626 708 Sale Price: 750,000 Guide Price Freehold Investment two office buildings and an industrial unit. 750,000 for the freehold of the site. The entire site is sold with the benefit of the existing income, however given the short term nature of some units the income may vary. The properties are held on the follow terms. Airskil House Suite 1 Let to TMA Ltd 391.66 per month inclusive Suites 2&3 VACANT. 291 sq ft available Suites 4&5 Let to Divex at 800.00 per month inclusive Suite 6 VACANT. 300 sq ft available The tenancies for Airskil House are monthly renewable license agreements, inclusive of rates and running costs. SLL Building Office building let to Scientific Lessor Limited at 18,000 per annum exclusive. The tenancy with SLL is a minimum 12 month tenancy. Unit D Industrial /warehouse unit let to Stephen Clasper Interiors Limited at 24,000 per annum exclusive. Vacant Entire Building Storage Space Last Update: 20/09/2012 21 Montrose House Boulevard Hanworth Lane KT16 9JX 31,161 pa (approx 12.75 psf) Unit/suite- North Wing, 1st Floor 1,211 113 12.75 137.19 Avail Unit/suite- North Wing, Ground 1,233 115 12.75 137.19 Avail TOTAL 2,444 227 office accommodation. A new full repairing and insuring lease in respect of the whole building for a term to be agreed at a guide rent of 12.75 per sq ft per annum exclusive. Negotiable 10 Car Parking Spaces Disabled Facilities Energy Performance Rating - D Escalator Goods Lift Passenger Lift(s) Raised Floors Last Update: 04/10/2012 Empty for 4 years. Beaumont House at circa 4,000 sq ft. Fully refurbished. Been empty for 18 months. 15
22 Conrico House Hanworth Lane KT16 9LA 76,230 pa (approx 16.50 psf) Ground 2,370 220 16.50 177.54 Avail 1st Floor 2,250 209 16.50 177.54 Avail TOTAL 4,620 429 32,340 pa (approx 7.00 psf) a two storey office building with ground floor reception area and loft storage space. The premises are available for freehold purchase at an asking price of 900,000 plus VAT. The premises are also available to lease on a fully repairing and insuring basis at an asking rental of 16.50 per sq ft per annum, exclusive. 30 Days 22 Car Parking Spaces Reception Storage Space Last Update: 04/10/2012 Empty for 18 months. 23 Weybourne House 2-4 London Street KT16 8AA N/A Total Size 2,650 246 N/A Freehold office accommodation. The leasehold or freehold is available. Negotiable 6 Car Parking Spaces Entire Building Last Update: 05/09/2012 TOTAL 2,650 246 Sale Price: 620,000 Guide Price 24 15 London Street KT16 8AP 31,410 pa (approx 22.50 psf) 2nd Floor 1,396 130 22.50 242.10 Avail TOTAL 1,396 130 office accommodation, arranged in suites, over three floors. The premises are available on new fully repairing and insuring lease(s) on terms to be agreed. May also sell. 01/02/2011 Vacant 36 Car Parking Spaces Atrium Raised Floors Reception Last Update: 04/10/2012 Total Outgoings: 10,549 pa (approx 7.56 psf) 7,678 pa (approx 5.50 psf) 35.56 psf 25 Weybourne House 2-4 London Street KT16 8AA 74,200 pa (approx 28.00 psf) 2nd Floor 764 71 28.00 301.28 Avail 1st Floor 1,556 145 28.00 301.28 Avail Ground 330 31 28.00 301.28 Avail office accommodation. The leasehold or freehold is available. Negotiable 6 Car Parking Spaces Energy Performance Rating - C Last Update: 05/09/2012 TOTAL 2,650 246 16
26 The Old Fire Station Pyrcroft Road KT16 9BJ Not Specified 16,139 pa (approx 14.50 psf) 1st Floor 405 38 14.50 156.02 Avail Ground 708 66 14.50 156.02 Avail office accommodation from 405 sq ft to 1,113 sq ft. A new FRI Lease for a term to be agreed. 30 Days Last Update: 02/10/2012 TOTAL 1,113 103 22,000 pa (approx 19.77 psf) 27 Windsor House 37 Windsor Street KT16 8AT 2nd Floor 1,541 143 NQ 1st Floor 2,738 254 NQ Ground 2,713 252 NQ 6,992 sq ft (650 sq m) of office accommodation across ground, first and second floors. Upon application. 01/07/2012 Vacant 26 Car Parking Spaces Reception Last Update: 20/09/2012 TOTAL 6,992 650 28 317 Woodham Lane New Haw KT15 3PB 24,750 Per Annum (approx 14.98 psf) 1st Floor 484 45 14.98 161.26 Avail Ground Floor 1,168 109 14.98 161.26 Avail The premises are available To Let by way of a new full repairing and insuring lease for a term by arrangement. Vacant a two storey, self contained office building. 6 Car Parking Spaces Carpeting Central Heating Kitchen Facilities WC's TOTAL 1,652 153 Last Update: 29/05/2012 Rateable Value 16,250 No service charge payable 29 Tavistock House 319 Woodham Lane New Haw KT15 3PB 15,750 Per Annum (approx 15.04 psf) Ground Floor 1,047 97 15.04 161.91 Avail TOTAL 1,047 97 Rateable Value 10,250 No service charge payable A lease for a term to be agreed. Vacant ground floor office accomodation. Car Parking Central Heating Kitchen Facilities Self Contained WC's Last Update: 29/05/2012 END 17