Enterprise Court Rankine Road, Basingstoke, RG24 8GE Modern South East Multi-Let Industrial Investment
Investment Summary An exciting opportunity to invest in a modern South- East multi-let industrial estate Located in Basingstoke, a core business location on the M3 corridor Comprising 15 units constructed in the late 1980s and totalling 17,879 sq ft Multi-let to 12 tenants with a WAULT of 2.14 years to breaks and 4.22 years to expiries Low vacancy rate of 7% Total passing rent of 128,810 (including top-ups on stepped rents where applicable), equating to an average rent of 7.76 per sq ft on the occupied space Numerous asset management opportunities through re-gearing leases/removing break options and letting the vacant units Ample parking within a secure site Held long leasehold on a 125 year lease from 10 October 1988 at a current rent of 29,016 per annum (to provide a net current rent of 99,794) Total site area of 1.125 acres (circa 36% site cover) Offers are sought in excess of 1,078,000 (One Million and Seventy Eight Thousand Pounds), subject to contract. A purchase at this level reflects a net initial yield of 8.75% (based on a net current rent of 99,794) and equates to a low capital value of 60 per sq ft after standard purchaser s costs of 5.80%.
R < N NEWBURY ON M27 A339 M4 M3 WINCHESTER Location 12 Basingstoke is situated in the north west of Hampshire, PORTSMOUTH circa 45 miles south west of London, 30 miles north east of Southampton and 14 miles south west of Reading. The town serves as a key commercial location on the M3 Corridor, which is home to a cluster of UK and international corporate occupiers and small to medium size private businesses. The town benefits from excellent transport links and is located adjacent to the M3 motorway (Junctions 6 and 7), which offers direct road links to London, Southampton, Reading (via the A33 /M4 Junction 11) and Newbury (via the A339). Basingstoke benefits from a regular rail service into London Waterloo and London Victoria with journey times of 44 and 54 minutes respectively. Situation 6 WATERLOOVILLE READING A33 4 FARNBOROUGH PETERSFIELD FARNHAM HAVANT A27 CHICHESTER WOKING M25 GUILDFORD GODALMING The Property is situated on Rankine Road in an established commercial location off the A339 (access provided via Faraday Road), approximately 1.2 miles north east of Basingstoke town centre. The A339 connects with the M3 (Junction 6) to the south and leads into Reading to the north east and Newbury to the north west (and subsequently the M4 motorway via Junction 13). HEATHROW LONDON 12 KINGSTON UPON THAMES DORKING GATWICK HORSHAM WORTHING REIGATE M23 CRAWLEY CROYDON The Property is situated approximately 2 miles to the east of Basingstoke railway station. Immediately adjacent to Enterprise Court is the Newton Court estate, which is home to a range of local industrial and business occupiers. Other occupiers on Rankine Road include Access Self Storage and Ripley Engineering. At the entrance to Rankine Road from Faraday Road is Faraday Office Park, a small business park with office units let to a range of local tenants. Other occupiers in the surrounding area include Enterprise Rent a Car, Boots and Stagecoach as well as Hertz, Mars, Speedy Hire and Travis Perkins, immediately south east of the Property along Armstrong Road. The immediate surrounding area also comprises residential accommodation. Description RINGWAY NORTH A339 RANKINE ROAD SEVENOAKS CHURCHILL WAY WEST A3010 RINGWAY EAST A339 EAST GRINSTEAD BRIGHTON UCKFIELD Enterprise Court comprises 15 industrial/trade units arranged in three terraces totalling 17,879 sq ft, enclosing an irregular shaped yard. Units 1-9 comprise the first terrace which is situated at the north west of the site immediately upon entering the estate. A33 RINGWAY SOUTH A30 FARADAY R D ENTERPRISE COURT J6 SWING SWANG LN CRABTREE PLANTATION COMMON LONDON ROAD A30 M3 < N HATCH LANE < N El Sub Sta For identification purposes only Newton Court ENTERPRISE COURT These units offer business unit/light industrial accommodation, 0m 10m 20m 30m all of which are single storey with an eaves height of circa 4.20m. The units are of steel Ordnance frame Survey Crown construction Copyright 2014. All rights reserved. with brick and Licence number 100022432. Plotted Scale - 1:1250 metal cladding underneath profile sheet roofing. A number of the units have roller shutter doors in addition to regular access doors with windows to the front. 4 1 2 6 8 9 Units 10 to 14 provide a further terrace to the east of the site, with Unit 15 a self-contained standalone building. These units have first floor ancillary office accommodation and mezzanine levels, some of which have been installed by the various occupiers. The units all have roller shutter access doors as well as regular entrance doors and windows to the front. The eaves height for the warehouse element of these units ranges from approximately 6.50 6.70m. Enterprise Court offers ample parking to the front of the units. In total, there are 53 parking spaces, albeit the layout of the estate allows for further parking provision. 15 1 Path 14 MP 50.5m 10 11 89.0m 83.8m DAN
Site Area The Property comprises a trapezoid-shaped site totalling approximately 1.125 acres, providing a low site coverage of approximately 36%. Tenure The Property is held long leasehold on a 125 year lease from 10 October 1988 at a current rent of 29,016. The headlease is subject to five yearly reviews and is geared to 20% of rack rent (or 22,600, whichever is higher) and is not subject to further review until 10 July 2019. Freeholder s consent to assign is required, such consent not to be unreasonably withheld. The Property has a net current rent of 99,794. Tenancy and Accommodation The Property is let to 12 tenants on 12 leases. Two units (Units 8 and 5 - see tenancy comments) are currently vacant. A number of the units are subject to rental incentives. The vendor will top-up stepped rents to the full contracted level of income before break or expiry. The Property has a weighted average unexpired lease term of 2.14 years to breaks and 4.22 years to expiries (assuming completion of the lease regear on Units 10 & 11, which is currently in legals). Unit Tenant GIA Lease Next Rent Lease Break Rent Rent Percentage UXT UXTC Comments (Sq Ft) Start Review Expiry Option (pa) (psf) of Income Unit 1 Barcode Network Limited 885 03/06/2014 02/06/2019 03/06/2017 8,000 9.04 6% 4.14 2.14 FRI. Lease outside the Act. Current rent 7,000 - increases to 8,000 wef 03/06/2015 (topped up by Vendor). Tenant to pay 2,000 + VAT if break exercised (6m notice period). Unit 2 Barcode Zapper Limited 872 03/06/2014 02/06/2019 03/06/2017 8,000 9.17 6% 4.14 2.14 FRI Lease outside the Act. Current rent 7,000 - increases to 8,000 wef 03/06/2015 (topped up by Vendor). Tenant to pay 2,000 + VAT if break exercised (6m notice period). Unit 3 SOS Smalley Limited 415 04/10/2013 03/10/2018 04/10/2015 4,770 11.49 4% 3.47 0.48 FRI. Subject to Schedule of Condition. Lease outside the Act. Tenant to pay 1,192.50 + VAT if break exercised (3m notice period). 3m rent free if break not exercised. Additional break on 04/10/2016. Unit 4 NC Home Improvements Limited 415 08/11/2013 07/11/2016 08/11/2015 4,500 10.84 3% 1.57 0.57 FRI. Lease outside the Act. Tenant to pay 750 + VAT if break exercised (3m notice period). Additional break option at 08/11/2015. Unit 5 Vacant - see comments 416 Current lease in place to K M Tiling Services Limited. Company not in occupation and in process of being dissolved. Rent to cease imminently. Treated as vacant for marketing purposes. Unit 6 Katy Smith 414 01/09/2013 31/08/2016 4,770 11.53 4% 1.39 1.39 FRI. Lease outside the Act. Unit 7 Mr D Oram 415 11/03/2013 11/03/2015 10/03/2016 4,450 10.72 3% 0.91 0.91 FRI. Lease outside the Act. Unit 8 Vacant 872 Vacant since March 2015. Strong interest, including from Green Gecko Technology Limited who occupy Unit 12 on the estate. Unit 9 Virgin Media Limited 853 31/08/2000 30/08/2015 7,000 8.21 5% 0.38 0.38 FRI. Units Years 3, 5 Transpower Application Limited 3,940 TBC Year 5 10 Years 26,300 6.68 20% 10.00 3.00 10 & 11 ( ) ( ) ( and 7 ) FRI. Subject to Schedule of Condition. Lease regear in legals - 10 year lease with break options in years 3, 5 and 7 (6m notice period). 3m rent free (topped up by Vendor). Unit 12 Green Gecko Technology Limited 1,996 22/10/2012 21/10/2016 13,000 6.51 10% 1.52 1.52 FRI. Lease outside the Act. Roof repair is Landlord s responsibility and recovered through S.C. Unit 13 Ace Trainers Limited 1,994 25/07/2013 25/07/2016 24/07/2018 15,520 7.78 12% 3.28 3.28 FRI. Lease outside the Act. Current rent 13,100 - increases to 15,520 wef 25/07/2016 (topped up by Vendor). Unit 14 Chefbites Limited 2,093 05/11/2013 05/11/2015 04/11/2018 05/11/2016 16,250 7.76 13% 3.56 1.57 FRI. Subject to Schedule of Condition. Lease outside the Act. Tenant to pay 1,489.45 + VAT if break exercised (6m notice period). Current rent 12,000 - increases to 16,250 wef 05/11/2015 (topped up by Vendor). Unit 15 Southern Heath 2,299 02/04/2013 01/04/2018 16,250 7.07 13% 2.97 2.97 FRI. Subject to Schedule of Condition. Lease outside the Act. Tenant right to break at any time on NHS Foundation Trust not less than 12m notice. Subject to Schedule of Condition. Total 17,879 128,810 100% 4.22 2.14 Headrent 29,016 Current Net Rent 99,794
Service Charge The service charge budget of 21,059 for the year ending 31 October 2015 equates to 1.18 per sq ft overall. VAT The Property is elected for VAT which is payable upon the purchase price, although the sale may be treated as a Transfer of Going Concern. EPC EPCs for all units are available upon request. Proposal Offers are sought in excess of 1,078,000 (One Million and Seventy Eight Thousand Pounds), subject to contract. A purchase at this level reflects a net initial yield of 8.75% (based on a net current rent of 99,794) and equates to a low capital value of 60 per sq ft after standard purchaser s costs of 5.80%. Richard Murphy and Philip William Glenn, both of DTZ, were appointed as joint receivers of the Property. Please note that due to the nature of the Vendor, limited Warranties or Representations can be provided with regards to any information contained within this marketing material and purchasers should therefore satisfy themselves in this regard.
David Haynes James Clarke Jack Winsley 020 3296 2097 020 3296 4375 020 3296 4602 david.haynes@dtz.com james.clarke@dtz.com jack.winsley@dtz.com DTZ DTZ DTZ One Curzon Street One Curzon Street One Curzon Street London W1J 5HD London W1J 5HD London W1J 5HD MISREPRESENTATION CLAUSE DTZ gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in April 2015. 020 7060 4142