Beech House, Reigate.cdr
OFFICE INVESTMENT - REIGATE
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Investment Summary •
Freehold south-east office investment situated in Reigate, a three-minute walk from the railway station.
•
Reigate is a prosperous Surrey commuter town strategically positioned approximately two miles south of Junction 8 of the M25.
•
Beech House provides 16,153 sq ft (1,501 sq m) of well specified office accommodation, arranged over ground and two upper floors, along with 83 car parking spaces (1:195 sq ft).
•
Let in its entirety to Ageas (UK) Ltd for a term of 10 years from 13th December 2009, at a current rent of £380,000 per annum rising to £400,000 per annum from 13th December 2013.
•
Offers are sought in the region of £5,000,000. A purchase at this price will reflect an attractive net initial yield of 7.56%, after purchaser's costs of 5.8%, from 13 December 2013 and a capital value of £310.00 per sq ft.
Location Reigate is one of the main towns in the Borough of Reigate & Banstead, with a population of approximately 137,800 (2011 census). The town lies 25 miles to the south of Central London and is one of the larger Surrey towns forming part of the Gatwick diamond and M23 corridor. Travel communications are excellent, with Junction 8 of the M25 approximately two miles north providing access to the wider motorway network and Junction 8 of the M23 five miles east, providing access to the south. Gatwick International Airport is approximately eight miles to the south and Heathrow International Airport 32 miles to the north-west.
2
Direct trains from Reigate railway station to London Bridge have a fastest journey time of 41 minutes.
Situation Beech House is located within the main office core of Reigate. It enjoys a prominent position on London Road with Reigate railway station approximately 250 metres away. The immediate area is predominantly office led. Reigate is the European headquarters for Kimberly Clark as well as the headquarters for Esure and Osborne. Other occupiers include Towers Watson and Regus.
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Brentwood Watford Basildon
LONDON
Slough
Tilbury
Heathrow
Gravesend Chatham
Bracknell Croydon Dorking
Basingstoke
Reigate
Guildford
Tonbridge
Gatwick
Crawley Horsham
Alton
Maidstone
Redhill
Royal Tunbridge East Grinstead Wells
oad A2 17 Reigate Hill
Petersfield
Lo nd
H ar
hw o
rth
le Ro
42
Holm esda
ad
d oa Cr oy do A25
et
A217
High Stre
et h Stre Churc
42
Ch
De
urc
hS
er
A2
ad
5
Ro
A2
oad
on
nR
A2
R cke
d on
Accommodation The accommodation provides for the following net internal area, in accordance with the RICS Code of Measuring Practice (sixth edition).
Road
17
dwi
L
There are 83 car parking spaces providing an excellent ratio of 1:195 sq ft, as well as an integral garage which has been converted by the tenant to provide a small loading area and IT suite.
Reigate
Ru s
The office space has fully accessible raised flooring with integrated electrical points and suspended ceilings with category II recessed fluorescent lighting. The property benefits from a comfort cooling system and a 13- passenger lift serves all three floors.
A2
on R
Yorke Road
Description The property comprises 16,153 sq ft of selfcontained modern office accommodation in accordance with the tenancy schedule. The property, over ground and two upper floors, provides flexible floor plates, suitable for single or multiple occupancy.
tree t
A25
Reig
ing
sR
oa d
ate R oad
sq m
sq ft
Reception area
44
471
Garage
39
418
Ground floor office
412
4,432
First floor office
503
5,416
Second floor office
503
5,416
1,501
16,153
Total
3
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Tenancy The property is leased to Ageas (UK) Ltd on an FRI lease from 13th December 2009 until 12th December 2019. The current passing rent is £380,000 per annum which reflects £23.53 per sq ft. The rent rises to £400,000 per annum with effect from 13 December 2013 and there is an open market upwards only rent review as at 13 December 2014. The tenant has an option to break on 12 December 2014 with no less than six months' prior written notice. If the break is not exercised, the tenant benefits from a 50% reduction in rent in the 6th year of the term and a 25% reduction in the 7th year.
Covenant Ageas is a leading provider of non-life and life products, which are distributed through a range of channels including brokers, intermediaries, IFA's, affinity partners and the internet, as well as a number of wholly or partially-owned companies that include; Ageas Insurance Ltd, Ageas Insurance Solutions, Ageas Protect, KwikFit Insurance Services and Tesco Underwriting. Ageas Group is a global company with over 6,000 employees across the UK, more than 13,000 worldwide and approximately eight million policyholders. Ageas (UK) Ltd reported an increase in overall net profit in the first nine months of 2013 up 5.6% to £73.7m (£69.8m in first nine months of 2012). Ageas (UK) Ltd have a Dun & Bradstreet rating of 5A1.
4
Ageas (UK) Ltd Pre-Tax Profit/Loss Year ending Dec 2012 £91,203,000
Net Assets £502,006,000
Year ending Dec 2011 £15,688,000
£377,517,000
Year ending Dec 2010
£286,473,000
£3,845,000
Tenure Freehold
VAT The property is VAT elected.
Energy Performance Certificate (EPC) The property has an energy assessment rating of E (123). A full copy of the EPC is available upon request.
Planning The permitted use is currently Class B1 of the Town and Country Planning (Use Classes) Order 1987. Reigate has not sought exemption from the recent permitted development rights. The opportunity to convert the property to residential (C3) use without requiring planning permission therefore exists, if the tenants were to action their break clause. The property would lend itself to residential use.
OFFICE INVESTMENT - REIGATE BEECH HOUSE
35 LONDON ROAD REIGATE RH2 9HZ
Market Commentary The M25 South market enjoyed a strong first half of 2013, with a total take-up of 376,881 sq ft. This is more than double the second half of 2012 and an increase of 21% on the whole of 2012. Of this take up, Santander took 47,018 sq ft at Terra Firma, Redhill in February, whilst in March Cameron Oil & Gas took 57,013 sq ft at 5 The Heights, Weybridge.
Proposal Offers are invited in the region of £5,000,000.00 (Five Million Pounds), subject to contract and exclusive of VAT, for the benefit of the Freehold interest. A purchase at this level will reflect an attractive net initial yield of 7.56% after purchaser costs of 5.8%, as of December 2013. This reflects a capital value of £310 per sq ft.
In addition, demand for office space in this area has increased and in the first half of 2013 supply decreased by 5% to 2.96m sq ft. With reported availability in the M25 south falling for the third quarter in succession, it is at its lowest level since the third quarter of 2011. There is also a positive outlook for the investment market. Some regional office markets are benefitting from the lack of investment stock in Central London, forcing investors to look further afield, with the south-east, M25 and Thames Valley growing in popularity.
5
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
For further details, please contact sole agents, Aston Rose: Ken Morgan FRICS 020 7629 1533 [email protected]
Adam de Swarte MRICS 020 7629 1533 [email protected]
Rob Cragg MRICS 020 7629 1533 [email protected]
www.astonrose.co.uk Aston Rose 35c North Row Mayfair London W1K 6DH
MISREPRESENTATION ACT
Tel: 020 7629 1533
These particulars are believed to be correct and, where practicable, reasonable steps have been taken to ensure their accuracy, however this cannot be guaranteed. They do not form part of any offer or other contract. The owner of this property does not make or give, representations or warranties in relation to this property. Aston Rose (West End) Limited and its employees do not accept any responsibility for information supplied to them by the owner or any third party. Any intending purchaser or lessee must satisfy itself by inspection or otherwise as to the correctness of the particulars. All measurements are approximate. The plans in these particulars are published for convenience of identification only, and although believed to be correct, their accuracy is not guaranteed and do not form part of any contract.
6
November 2013
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Investment Summary •
Freehold south-east office investment situated in Reigate, a three-minute walk from the railway station.
•
Reigate is a prosperous Surrey commuter town strategically positioned approximately two miles south of Junction 8 of the M25.
•
Beech House provides 16,153 sq ft (1,501 sq m) of well specified office accommodation, arranged over ground and two upper floors, along with 83 car parking spaces (1:195 sq ft).
•
Let in its entirety to Ageas (UK) Ltd for a term of 10 years from 13th December 2009, at a current rent of £380,000 per annum rising to £400,000 per annum from 13th December 2013.
•
Offers are sought in the region of £5,000,000. A purchase at this price will reflect an attractive net initial yield of 7.56%, after purchaser's costs of 5.8%, from 13 December 2013 and a capital value of £310.00 per sq ft.
Location Reigate is one of the main towns in the Borough of Reigate & Banstead, with a population of approximately 137,800 (2011 census). The town lies 25 miles to the south of Central London and is one of the larger Surrey towns forming part of the Gatwick diamond and M23 corridor. Travel communications are excellent, with Junction 8 of the M25 approximately two miles north providing access to the wider motorway network and Junction 8 of the M23 five miles east, providing access to the south. Gatwick International Airport is approximately eight miles to the south and Heathrow International Airport 32 miles to the north-west.
2
Direct trains from Reigate railway station to London Bridge have a fastest journey time of 41 minutes.
Situation Beech House is located within the main office core of Reigate. It enjoys a prominent position on London Road with Reigate railway station approximately 250 metres away. The immediate area is predominantly office led. Reigate is the European headquarters for Kimberly Clark as well as the headquarters for Esure and Osborne. Other occupiers include Towers Watson and Regus.
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Brentwood Watford Basildon
LONDON
Slough
Tilbury
Heathrow
Gravesend Chatham
Bracknell Croydon Dorking
Basingstoke
Reigate
Guildford
Tonbridge
Gatwick
Crawley Horsham
Alton
Maidstone
Redhill
Royal Tunbridge East Grinstead Wells
oad A2 17 Reigate Hill
Petersfield
Lo nd
H ar
hw o
rth
le Ro
42
Holm esda
ad
d oa Cr oy do A25
et
A217
High Stre
et h Stre Churc
42
Ch
De
urc
hS
er
A2
ad
5
Ro
A2
oad
on
nR
A2
R cke
d on
Accommodation The accommodation provides for the following net internal area, in accordance with the RICS Code of Measuring Practice (sixth edition).
Road
17
dwi
L
There are 83 car parking spaces providing an excellent ratio of 1:195 sq ft, as well as an integral garage which has been converted by the tenant to provide a small loading area and IT suite.
Reigate
Ru s
The office space has fully accessible raised flooring with integrated electrical points and suspended ceilings with category II recessed fluorescent lighting. The property benefits from a comfort cooling system and a 13- passenger lift serves all three floors.
A2
on R
Yorke Road
Description The property comprises 16,153 sq ft of selfcontained modern office accommodation in accordance with the tenancy schedule. The property, over ground and two upper floors, provides flexible floor plates, suitable for single or multiple occupancy.
tree t
A25
Reig
ing
sR
oa d
ate R oad
sq m
sq ft
Reception area
44
471
Garage
39
418
Ground floor office
412
4,432
First floor office
503
5,416
Second floor office
503
5,416
1,501
16,153
Total
3
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
Tenancy The property is leased to Ageas (UK) Ltd on an FRI lease from 13th December 2009 until 12th December 2019. The current passing rent is £380,000 per annum which reflects £23.53 per sq ft. The rent rises to £400,000 per annum with effect from 13 December 2013 and there is an open market upwards only rent review as at 13 December 2014. The tenant has an option to break on 12 December 2014 with no less than six months' prior written notice. If the break is not exercised, the tenant benefits from a 50% reduction in rent in the 6th year of the term and a 25% reduction in the 7th year.
Covenant Ageas is a leading provider of non-life and life products, which are distributed through a range of channels including brokers, intermediaries, IFA's, affinity partners and the internet, as well as a number of wholly or partially-owned companies that include; Ageas Insurance Ltd, Ageas Insurance Solutions, Ageas Protect, KwikFit Insurance Services and Tesco Underwriting. Ageas Group is a global company with over 6,000 employees across the UK, more than 13,000 worldwide and approximately eight million policyholders. Ageas (UK) Ltd reported an increase in overall net profit in the first nine months of 2013 up 5.6% to £73.7m (£69.8m in first nine months of 2012). Ageas (UK) Ltd have a Dun & Bradstreet rating of 5A1.
4
Ageas (UK) Ltd Pre-Tax Profit/Loss Year ending Dec 2012 £91,203,000
Net Assets £502,006,000
Year ending Dec 2011 £15,688,000
£377,517,000
Year ending Dec 2010
£286,473,000
£3,845,000
Tenure Freehold
VAT The property is VAT elected.
Energy Performance Certificate (EPC) The property has an energy assessment rating of E (123). A full copy of the EPC is available upon request.
Planning The permitted use is currently Class B1 of the Town and Country Planning (Use Classes) Order 1987. Reigate has not sought exemption from the recent permitted development rights. The opportunity to convert the property to residential (C3) use without requiring planning permission therefore exists, if the tenants were to action their break clause. The property would lend itself to residential use.
OFFICE INVESTMENT - REIGATE BEECH HOUSE
35 LONDON ROAD REIGATE RH2 9HZ
Market Commentary The M25 South market enjoyed a strong first half of 2013, with a total take-up of 376,881 sq ft. This is more than double the second half of 2012 and an increase of 21% on the whole of 2012. Of this take up, Santander took 47,018 sq ft at Terra Firma, Redhill in February, whilst in March Cameron Oil & Gas took 57,013 sq ft at 5 The Heights, Weybridge.
Proposal Offers are invited in the region of £5,000,000.00 (Five Million Pounds), subject to contract and exclusive of VAT, for the benefit of the Freehold interest. A purchase at this level will reflect an attractive net initial yield of 7.56% after purchaser costs of 5.8%, as of December 2013. This reflects a capital value of £310 per sq ft.
In addition, demand for office space in this area has increased and in the first half of 2013 supply decreased by 5% to 2.96m sq ft. With reported availability in the M25 south falling for the third quarter in succession, it is at its lowest level since the third quarter of 2011. There is also a positive outlook for the investment market. Some regional office markets are benefitting from the lack of investment stock in Central London, forcing investors to look further afield, with the south-east, M25 and Thames Valley growing in popularity.
5
BEECH HOUSE 35 LONDON ROAD REIGATE RH2 9HZ
For further details, please contact sole agents, Aston Rose: Ken Morgan FRICS 020 7629 1533 [email protected]
Adam de Swarte MRICS 020 7629 1533 [email protected]
Rob Cragg MRICS 020 7629 1533 [email protected]
www.astonrose.co.uk Aston Rose 35c North Row Mayfair London W1K 6DH
MISREPRESENTATION ACT
Tel: 020 7629 1533
These particulars are believed to be correct and, where practicable, reasonable steps have been taken to ensure their accuracy, however this cannot be guaranteed. They do not form part of any offer or other contract. The owner of this property does not make or give, representations or warranties in relation to this property. Aston Rose (West End) Limited and its employees do not accept any responsibility for information supplied to them by the owner or any third party. Any intending purchaser or lessee must satisfy itself by inspection or otherwise as to the correctness of the particulars. All measurements are approximate. The plans in these particulars are published for convenience of identification only, and although believed to be correct, their accuracy is not guaranteed and do not form part of any contract.
6
November 2013
