Exchange House, Petworth GU28 0BF
Exchange House, Petworth GU28 0BF Freehold Office Investment Let to Savills (UK) Limited
INVESTMENT SUMMARY • Petworth is an attractive market town • Rare self-contained three storey office building, plus basement in Petworth • Current office accommodation 317.35 sq m (3,416 sq ft) • Potential to increase office accommodation by a further 139.37 sq m (1,500 sq ft) by incorporating basement space • Total size NIA 456.72 sq m (4,916 sq ft) • Let to Savills (UK) Limited until 8 April 2023 on a FRI lease • Strong D&B rating of 4A1 • Passing rent £56,375 per annum exclusive • RPI rent review in April 2018 with an anticipated rent increase to £70,275 per annum Exchange House
• We have been instructed to seek offers in excess of £845,000 for the freehold interest, subject to contract • A purchase at this level would reflect a net initial yield of 6.34% allowing for graduated purchaser’s costs of 5.63% and an overall capital value of £172 per sq ft • A reversionary yield of 7.9% based on the anticipated rent in April 2018
LOCATION Petworth is an attractive market town located at the junction of the A272 between Billingshurst and Midhurst, and the A383 between Chichester and Guildford. The property is situated within the main public car park, which is a short distance from the town centre. Season ticket parking is available in this car park.
DESCRIPTION The property comprises a detached office building arranged over ground, first and second floors, plus a basement. The basement was originally designed for parking, but the restricted ramp access makes it only suitable for small cars. The basement is currently used for storage, due to the location of the building in a car park, but could be converted to provide additional office accommodation. The office accommodation benefits from air conditioning and accessible raised floors together with a lift. We have measured and calculate the accommodation to have the following approximate net internal floor areas: Floor Description sq m sq ft Upper Ground Floor First Floor Second Floor Sub Total Basement (GIA) Total
120.84 128.23 68.28
1,301 1,380 735
317.35
3,416
139.37
1,500
456.72
4,916
PLANNING We understand the premises benefits from a B1 (a) Office use under the Town & County Planning (Use Classes) Order 1987, as amended.
TENANCY
PROPOSAL
We understand the whole building is let to Savills (UK) Limited under a lease dated 9 April 2008 and is for a term of 15 years expiring on 8 April 2023 (approximately six years unexpired). The lease is fully repairing and insuring and benefits from security of tenure under the 1954 Act. The tenant is allowed to use the building as an office within Class B1 or A2.
We have been instructed to seek offers in excess of £845,000 for the freehold interest subject to contract.
The passing rent is £56,375 per annum, based on £14.50 per sq ft for the office space and £5 per sq ft allocated to the basement. The rent is due to be reviewed on 9 April 2018. The rent review is upward only and is to be in line with RPI with a collar of 15% and cap of 25% with the baseline being the rent payable immediately before the review date. We anticipate the rent will rise to £70,275 per annum (equivalent to £19.00 per sq ft plus £5 per sq ft for the basement) at the next review, based on the RPI today.
We anticipate a reversionary yield of 7.9% based on the anticipated rent in 2018.
COVENANT INFORMATION Savills (UK) Limited (company number: 02605138) have been trading since 1991, and operate from about 700 offices world wide. From the Petworth office they offer sales, lettings, planning consultancy, valuation, architecture and building services across residential, commercial and agricultural sectors. They have a D&B rating of 4A 1.
A purchase at this level would reflect a net initial yield of 6.34% allowing for graduated purchaser’s costs of 5.63% and a capital value of £172 per sq ft.
EPC To be confirmed.
VAT We understand that VAT will be applicable on the sale. It is anticipated that the matter can be dealt with by way of Transfer of Going Concern (TOGC).
FURTHER INFORMATION Please contact the sole agents Flude Commercial: Mark Minchell Sebastian Martin m.minchell @flude.com [email protected] 01243 929136 01243 929135
We have summarised below the companies last three years available accounts. 31/12/2015 GBP (000’s)
31/12/2014 GBP (000’s)
31/12/2013 GBP (000’s)
496,072
445,528
397,228
Pre Tax Profit
62,922
62,326
51,842
Tangible Net Worth
26,234
26,854
23,722
Turnover
Flude Commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.
FLOOR PLANS
MEETING ROOM
PRINTER
Cupboard as existing from attic room depending on fire boxes
cupboard from attic room
LIFT
ENTRANCE
1
3
5
2
4
6
1no. cupboard as existing from attic room
cupboard as existing
cupboard as existing
LIFT 12
DOWN
R.C.
10
11
7
MEETING ROOM
GROUND FLOOR
8
GROUND FLOOR 9
FIRST FIRST FLOORFLOOR
cupboard under layout table
A4 drawers
UP
PLOTTER
cupboard opposite SBW desk
PRINTER
PLAN CHEST
A3 drawers
LIFT
BASEMENT
SECOND FLOOR
SECOND FLOOR
table as existing
INVESTMENT SUMMARY • Petworth is an attractive market town • Rare self-contained three storey office building, plus basement in Petworth • Current office accommodation 317.35 sq m (3,416 sq ft) • Potential to increase office accommodation by a further 139.37 sq m (1,500 sq ft) by incorporating basement space • Total size NIA 456.72 sq m (4,916 sq ft) • Let to Savills (UK) Limited until 8 April 2023 on a FRI lease • Strong D&B rating of 4A1 • Passing rent £56,375 per annum exclusive • RPI rent review in April 2018 with an anticipated rent increase to £70,275 per annum Exchange House
• We have been instructed to seek offers in excess of £845,000 for the freehold interest, subject to contract • A purchase at this level would reflect a net initial yield of 6.34% allowing for graduated purchaser’s costs of 5.63% and an overall capital value of £172 per sq ft • A reversionary yield of 7.9% based on the anticipated rent in April 2018
LOCATION Petworth is an attractive market town located at the junction of the A272 between Billingshurst and Midhurst, and the A383 between Chichester and Guildford. The property is situated within the main public car park, which is a short distance from the town centre. Season ticket parking is available in this car park.
DESCRIPTION The property comprises a detached office building arranged over ground, first and second floors, plus a basement. The basement was originally designed for parking, but the restricted ramp access makes it only suitable for small cars. The basement is currently used for storage, due to the location of the building in a car park, but could be converted to provide additional office accommodation. The office accommodation benefits from air conditioning and accessible raised floors together with a lift. We have measured and calculate the accommodation to have the following approximate net internal floor areas: Floor Description sq m sq ft Upper Ground Floor First Floor Second Floor Sub Total Basement (GIA) Total
120.84 128.23 68.28
1,301 1,380 735
317.35
3,416
139.37
1,500
456.72
4,916
PLANNING We understand the premises benefits from a B1 (a) Office use under the Town & County Planning (Use Classes) Order 1987, as amended.
TENANCY
PROPOSAL
We understand the whole building is let to Savills (UK) Limited under a lease dated 9 April 2008 and is for a term of 15 years expiring on 8 April 2023 (approximately six years unexpired). The lease is fully repairing and insuring and benefits from security of tenure under the 1954 Act. The tenant is allowed to use the building as an office within Class B1 or A2.
We have been instructed to seek offers in excess of £845,000 for the freehold interest subject to contract.
The passing rent is £56,375 per annum, based on £14.50 per sq ft for the office space and £5 per sq ft allocated to the basement. The rent is due to be reviewed on 9 April 2018. The rent review is upward only and is to be in line with RPI with a collar of 15% and cap of 25% with the baseline being the rent payable immediately before the review date. We anticipate the rent will rise to £70,275 per annum (equivalent to £19.00 per sq ft plus £5 per sq ft for the basement) at the next review, based on the RPI today.
We anticipate a reversionary yield of 7.9% based on the anticipated rent in 2018.
COVENANT INFORMATION Savills (UK) Limited (company number: 02605138) have been trading since 1991, and operate from about 700 offices world wide. From the Petworth office they offer sales, lettings, planning consultancy, valuation, architecture and building services across residential, commercial and agricultural sectors. They have a D&B rating of 4A 1.
A purchase at this level would reflect a net initial yield of 6.34% allowing for graduated purchaser’s costs of 5.63% and a capital value of £172 per sq ft.
EPC To be confirmed.
VAT We understand that VAT will be applicable on the sale. It is anticipated that the matter can be dealt with by way of Transfer of Going Concern (TOGC).
FURTHER INFORMATION Please contact the sole agents Flude Commercial: Mark Minchell Sebastian Martin m.minchell @flude.com [email protected] 01243 929136 01243 929135
We have summarised below the companies last three years available accounts. 31/12/2015 GBP (000’s)
31/12/2014 GBP (000’s)
31/12/2013 GBP (000’s)
496,072
445,528
397,228
Pre Tax Profit
62,922
62,326
51,842
Tangible Net Worth
26,234
26,854
23,722
Turnover
Flude Commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of Flude Commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.
FLOOR PLANS
MEETING ROOM
PRINTER
Cupboard as existing from attic room depending on fire boxes
cupboard from attic room
LIFT
ENTRANCE
1
3
5
2
4
6
1no. cupboard as existing from attic room
cupboard as existing
cupboard as existing
LIFT 12
DOWN
R.C.
10
11
7
MEETING ROOM
GROUND FLOOR
8
GROUND FLOOR 9
FIRST FIRST FLOORFLOOR
cupboard under layout table
A4 drawers
UP
PLOTTER
cupboard opposite SBW desk
PRINTER
PLAN CHEST
A3 drawers
LIFT
BASEMENT
SECOND FLOOR
SECOND FLOOR
table as existing
