Modern Office Investment Opportunity Buildings 2 & 6 Drakes Meadow Business Park Penny Lane SN3 3LL gva.co.uk/7042
Investment Considerations is an important business location on the M4 corridor. Prominent situation fronting the A4312 Drakes Way dual carriageway, giving easy access to the M4 and town centre. Modern business park environment developed by Keir in 2002. Two high specification single let office buildings. Both buildings benefit from fully accessible raised floors, passenger lifts, air conditioning, LG3 lighting and excellent car parking facilities. Building 2 totals 11,122 sq ft, and is let to Quadrant Catering until 29 September 2021 with a tenant s break on the 29 September 2016 at a rent of 191,135 per annum ( 17.18 psf). Building 6 totals 21,505 sq ft, and is let to THRINGS until 24 December 2021 at a rent of 405,000 per annum ( 18.83 psf). The buildings total 32,627 sq ft and produce a combined income of 596,135 per annum. AWULT to expiry of circa 8.5 years, and AWULT to break of circa 6.5 years. Offers are sought in excess of 4,500,000 (Four Million, Five Hundred Thousand Pounds) reflecting a very attractive net initial yield of 12.5% after allowing for purchaser s costs at 5.8%, subject to contract and exclusive of VAT.
Location is located at the western end of the Thames Valley corridor between junctions 15 and 16 of the M4, with Reading 66 kilometres (41 miles) to the east and Bristol 64 kilometres (40 miles) to the west. The town has excellent dual carriageway links to junction 15 and 16 of the M4 while the A419/A417 dual carriageway connects to the M5, Cheltenham and Gloucester. The town is located 130 kilometres (81 miles) west of London. Intercity trains from to London Paddington are up to 3 times an hour, with the fastest journey time of just 55 minutes. There are also direct trains to major centres including Birmingham, Bristol, Cardiff and Reading, as a result this is an attractive business location. Excellent transport links, a pool of skilled labour and the location as a gateway to the south west has led the government to identify as a centre of major expansion. The town s attraction will be further enhanced as plans to improve the town centre progress. Major occupiers include the National Trust which relocated into a new 80,000 sq ft office building from 5 national offices. Other occupiers in the local vicinity include Honda, BMW, BP, Cable & Wireless, Nationwide Building Society and Zurich Financial Services. Situation The development has prime frontage onto A4312 Drakes Way dual carriageway, with direct access to junction 15 of the M4 motorway. The site is located 6.5 kilometres (4 miles) from junction 15 of the M4 motorway and 9 kilometres (5.4 miles) from junction 16 of the M4 motorway. town centre and railway station are both located 1.4 kilometres (0.9 miles) to the north. Drakes Meadow provides a modern landscaped business park environment with occupiers in the immediate vicinity including Torin, Car Shop, Ford, Cania, and Mercedes. Greenbridge Retail Park is situated approximately 500 metres to the north east of Drakes Meadow Business Park. It comprises over 20 shops, restaurant, and leisure facilities including Argos, Curry s, Boots, JJ Sports, Cinema World, McDonalds, KFC and Canons Gym. Drakes Meadow Business Park to Cirencester to Oxford CARDIFF M4 M5 22 23 A48 M5 22 21 18 BRISTOL A4 BATH A38 14 CHELTENHAM A417 A429 A4 A419 16 17 15 A346 9 OXFORD A40 8 A420 M40 SWINDON M4 NEWBURY A338 A303 READING A4 12 10 BASINGSTOKE M3 8 3 M25 LONDON 16 15 HEATHROW 12 M25 to Bristol 16 SWINDON M4 1 15 to London
Description Buildings 2 & 6 are two modern self-contained office buildings that were constructed in 2001. The property is two storey, and of steel frame construction with modern block and glass clad elevations under a flat roof. The configuration of both offices are open plan with clear office space providing maximum flexibility when space planning. Internally, the property benefits from the following high quality specification: Fully accessible raised floors l Passenger lifts Air conditioning l LG3 lighting Excellent natural light l Shower amenities Impressive entrance hall and receptions Externally, there are 112 delineated car spaces predominantly located to the front of the buildings providing an excellent ratio of 1:291 sq ft. Accommodation The accommodation provides the following net internal floor areas: Unit 2 Demise Sq m Sq ft Ground Floor 533 5,562 First Floor 553 5,561 Total: 1,033 11,122 Unit 6 Demise Sq m Sq ft Ground Floor 1,012 10,891 First Floor 984 10,588 Total: 1,996 21,4505 Total: 3,102 32,627 Tenure The property is held freehold.
Tenancy Property Tenant Floor Areas (sq ft) Lease Start Date Term Years Lease Expiry Annual Rent Comments Building 2 Quadrant Catering Ltd 11,122 29/09/2001 20 29/09/2021 191,135 ( 17.18 psf) There is a tenant s only break option on 29/09/2016 subject to 6 months prior written notice Building 6 THRINGS 21,505 25/12/2001 20 24/12/2021 405,000 ( 18.83 psf) Total 32,627 596,135 The total income is 596,135 per annum with Quadrant Catering representing 32% of the income and Thring Townsend representing 68%. The combined lease length of both buildings equates to AWULT to expiry of 8.5 years and AWULT to break of 6.5 years. Covenant Quadrant Catering Ltd Quadrant Catering Ltd are a company that are run as a joint venture with catering giant Compass, who supply the Royal Mail, NHS and numerous government agencies. They have an excellent Credit Safe rating of 92 out of 100 which represents excellent credit worthiness. For the last three years they have reported the following figures in their accounts: GBP 30 Sep 2012 (000 s) GBP 30 Sep 2011 (000 s) GBP 30 Sep 2010 (000 s) Sales Turnover 50,013 55,369 59,062 Profit / (Loss) Before Taxes 6,726 10,234 9,549 Tangible Net Worth 5,271 2,318 7,280 Net Current Assets (Liabilities) 4,900 1,805 6,749 Quadrant Catering are part of the Compass Group who have over 60,000 employees in the UK, and have a turnover in excess of 1.9billion. For further information, please go to www.compass-group.co.uk Thring Townsend Thrings have been providing legal advice to businesses and individuals for almost 300 years. Over the years they have grown to 55 partners and a total of 350 staff across London, Bristol, Bath and and they have an impressive national and international client base. The lease is guaranteed by a number of designated members of the LLP. Due to the LLP structure there is limited financial information available but they are a very well established business with excellent credit worthiness. For further information, please go to www.thrings.com
Office Market The first three quarters of 2013 have shown significant improvement in the office market as occupier confidence continues to improve. There is currently no office space under construction in with only an estimated 25,000 sq ft of Grade A accommodation available both in town and out of town. In 2013 top rents are still 17.50-18.50 psf, which reflects demand in the out of town market. The electrification of the mainline to Paddington by 2016 is estimated to reduce journey times by as much as 15 minutes, and this will undoubtedly create fresh opportunities for occupiers seeking space outside of London. We would highlight the following most recent 2013 comparable transactions: Property Size Sq ft Tenant Rent Per sq ft Washington House, Lydiard s Fields 26,853 Open Works 17.50 Station Square, Station Road 15,239 Prepay Technology 15.00 Stella, Windmill Hill Business Park 6,500 Under Offer 17.50 Opportunities for occupiers to secure good quality accommodation in excess of 10,000 sq ft are now severely limited due to the lack of new development or refurbishment across the town.
EPC Copies of the EPC s for the property can be downloaded from our website: gva.co.uk/7042 VAT The property has been elected for the purposes of VAT, and therefore VAT will be payable upon the purchase price, however we anticipate a sale can be structured as TOGC. Proposal We are instructed to seek offers in excess of 4,500,000 (Four Million, Five Hundred Thousand Pounds), subject to contract and exclusive of VAT for the freehold interest in this property. A purchase at this level will equate to a very attractive net initial yield of 12.5% subject to the usual purchaser s costs of 5.8%. Consideration may be given to selling the buildings separately. Contacts Further information or to arrange an inspection, please contact the sole agents: Richard Howell 0117 988 5210 richard.howell@gva.co.uk Barry Marshall 020 7911 2558 barry.marshall@gva.co.uk print save For other investment sales please visit: gva.co.uk/investment gva.co.uk/7042
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