for sale - office investment
FOR SALE - OFFICE INVESTMENT Sterling House, Sitka Drive, Shrewsbury Business Park, Shrewsbury Shropshire SY2 6LG
• • •
Total Income £86,750 per annum Shrewsbury’s premier office park Excellent access to M54 and motorway network
Price: £965,000 at a Net Initial Yield of 8.5% (after allowing for purchasers’ normal costs) HALLS COMMERCIAL
2
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
FURTHER INFORMATION
INVESTMENT SUMMARY Shrewsbury Business Park is the County’s premier office location
Located 2 miles from the Town Centre, adjacent to the A5 leading to the M54.
Three storey high quality office building
Total Net Internal Area of 7,700 sq ft (715.28 sq m) Total Current income £86,750 per annum (with current sub lettings equating to £66,750 exclusive)
Suite currently let to Matrix IDC Limited for a term of 10 years (subject to tenants option to determine at year 5)
Rental value equating to £11.26 per sq ft and a capital value equating to £125 per sq ft
PROPOSAL
Term certain 5 years
Income:
Price: £965,000 (Exclusive) at a Net Initial Yield of 8.5% (after stamp duty and acquisition costs of 1.5%)
Price:
Net Initial Yield:
HALLS COMMERCIAL
£86,750 per annum (exclusive) £965,000 (subject to contract) 8.5% after stamp duty and acquisition costs at 1.5%
3
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION COVENANT TENURE PROPOSAL
LOCATION The property is located fronting onto Sitka Drive and forms part of Shrewsbury Business Park, which is the premier business park serving the town of Shrewsbury.
FURTHER INFORMATION
41 miles (66km) south of Chester 47 miles (75km) north
Direct rail services to Wolverhampton (40 minutes) Birmingham New Street (55
53 miles north west of Birmingham International Airport
The park is located approximately 41 miles (66 km) to the south of Chester and 47 miles (75 km) to the north west of Birmingham, Shrewsbury is a historic market town and the county town of Shropshire. The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average.
DEMOGRAPHICS
Road communications are excellent with the A5 ring road leading to the M54, 8 miles to the east, which leads to Junctions 10 and 11 of the M6 motorway and the rest of the national motorway network. Shrewsbury railway station provides direct services to Telford, Wolverhampton, Birmingham and London.
The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average and ranking the town 76 out of the PROMIS Centres. The level of car ownership in Shrewsbury is significantly above average with a particularly high proportion of 2 car households.
The town has recently been boosted by the opening of the University Centre, in conjunction with the Univerity of Chester.
HALLS COMMERCIAL
4
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
SITUATION The property is situated within Shrewsbury Business Park, approximately 2 miles to the south east of Shrewsbury town centre and fronting onto the A5 dual carriageway. The Park is a high quality office development on a site of some 30 acres. The first phase of the development comprised about 160,000 sq ft and the second phase, currently under construction, will provide an additional 150,000 sq ft of commercial offices. Occupiers on the Park include NFU, Brewin Dolphin, Shropshire Council, Handlesbanken, FBC Manby Bowdler, Whittingham Riddell, NHS, West Mercia Police Authority, Guestline and Jacobs Consulting. The Park benefits from a Holiday Inn Express and Busy Bee’s children’s day care nursery with the property providing retail and leisure support facilities. The property is located on Sitka Drive, which is a spinal road off the main arterial road serving the business park. The ownership of the property abuts onto London Road and therefore the property benefits from a profile road position within the Business Park.
DESCRIPTION The property comprises of a high quality three storey detached building providing a Total Net Internal Floor Area of approximately 7,700 sq ft (715.28 sq m). The property is of modern conventional construction benefiting from a high level of curtain wall glazing within the brickwork and profiled clad elevations. The roof cover is pitched and covered in slate. The property internally has been fitted out to a high standard, which can only be appreciated after an inspection of the property. The property benefits from 20 car parking spaces.
HALLS COMMERCIAL
5
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
ACCOMMODATION Ground Floor Shared Entrance Hallway Suite 1 185.79 sq m (2,000 sq ft) Suite 2 179.34 sq m (1,500 sq ft) First Floor Shared Landing Suite 3 139.34 sq m (1,500 sq ft) Suite 4 185.79 sq m (2,000 sq ft)
Second Floor Suite 5 27.22 sq m (250 sq ft) Suite 6 41.80 sq m (450 sq ft) Outside Car Parking for 20 spaces
(All measurements are approximate)
TENURE The property is long leasehold a 999 year lease at a peppercorn rent under Property Title SL 207210.
TENANCIES The property will be sold subject to a new lease to Matrix IDC Limited for a term of 10 The property is to be letRepairing to Matrix IVC a term 10 years on a per Tenants Ful years on a Tenants Full and Limited Insuringfor basis at aof rent of £86,750 annum. Repairing at to a rent of £86,750 perend annum. will be a tenant’s There willand be aInsuring tenant’sLease option determine at the of theThere 5th year, subject to 6 option determine the endisofsubject the 5th to year, subjectoftosub 6 months The to property is monthstonotice. The at property a variety lettingsnotice. equating a rent of subject to a variety of sub lettings equating to a rent of £66,50 per annum. Further details £66,750 per annum (excluding the suite which Matrix IDC Ltd currently occupy). can be provided upon request. Further details can be provided upon request from the selling agents.
HALLS COMMERCIAL
FURTHER INFORMATION
6
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
FURTHER INFORMATION
COVENANT
VAT
The property is let to - Matrix IDC Limited
The property is elected for VAT purposes. It is anticipated that the investment should be treated as a TOGC (Transfer of A Going Concern). Parties should rely on their own enquiries before submitting any offer.
Registered office - HLB House, 68 High Street, Tarporley, Cheshire CW6 0AT Company Number 04244465 Matrix IDC Ltd was incorporated in July 2001 There are two directors The key Financial Information relating to Matrix IDC Limited is as follows: Key Financials 2014 2015 Cash in Bank £289k £89.7k Net Worth £386k £406k Total Assets less current liabilities £962,733 £952,316
PROPOSAL We are instructed to seek offers for our clients long leasehold interest subject to the occupational tenancies of £965,000, subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 8.5% (after stamp duty and acquisition costs of 1.5%)
HALLS COMMERCIAL
LEGAL COSTS Each of the parties are to be responsible for their own legal costs incurred in respect of this matter.
7
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMA-
FURTHER INFORMATION
FURTHER INFORMATION Further legal and other details are available as a pack from the selling agents: Rebecca Welch 01743 450715 [email protected] James Evans 01743 450700 [email protected]
Halls for themselves and for the vendors of this property, whose agent they are, given notice that: i) These particulars are intended for guidance only. They are prepared and issued in good faith and are intended to give a fair description but do not constitute part of an offer or contract. Any information given should not be relied on as a statement or representation of fact or that the property or its services are in good condition. ii) Halls have not made any investigations into the existance or otherwise of any issues concerning pollution and potential land, air and water contamination. The purchaser is responsible for making his or her own enquiries in this regard. iii) Neither Halls nor any of their employees has any authority to make or give any representation or warranty whatsoever in relation to the property. iv) The images show only certain parts and aspects of the property at the time they were taken/created. Any areas, measurements or distances given are approximate only. Any plans are for identification purposes only. v) Any reference to alterations to, or use of, any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. An intending purchaser must verify these matters. An occupier should not rely upon the Use stated in these particulars and should check their proposed use with the relevant Planning Authority .
HALLS COMMERCIAL
• • •
Total Income £86,750 per annum Shrewsbury’s premier office park Excellent access to M54 and motorway network
Price: £965,000 at a Net Initial Yield of 8.5% (after allowing for purchasers’ normal costs) HALLS COMMERCIAL
2
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
FURTHER INFORMATION
INVESTMENT SUMMARY Shrewsbury Business Park is the County’s premier office location
Located 2 miles from the Town Centre, adjacent to the A5 leading to the M54.
Three storey high quality office building
Total Net Internal Area of 7,700 sq ft (715.28 sq m) Total Current income £86,750 per annum (with current sub lettings equating to £66,750 exclusive)
Suite currently let to Matrix IDC Limited for a term of 10 years (subject to tenants option to determine at year 5)
Rental value equating to £11.26 per sq ft and a capital value equating to £125 per sq ft
PROPOSAL
Term certain 5 years
Income:
Price: £965,000 (Exclusive) at a Net Initial Yield of 8.5% (after stamp duty and acquisition costs of 1.5%)
Price:
Net Initial Yield:
HALLS COMMERCIAL
£86,750 per annum (exclusive) £965,000 (subject to contract) 8.5% after stamp duty and acquisition costs at 1.5%
3
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION COVENANT TENURE PROPOSAL
LOCATION The property is located fronting onto Sitka Drive and forms part of Shrewsbury Business Park, which is the premier business park serving the town of Shrewsbury.
FURTHER INFORMATION
41 miles (66km) south of Chester 47 miles (75km) north
Direct rail services to Wolverhampton (40 minutes) Birmingham New Street (55
53 miles north west of Birmingham International Airport
The park is located approximately 41 miles (66 km) to the south of Chester and 47 miles (75 km) to the north west of Birmingham, Shrewsbury is a historic market town and the county town of Shropshire. The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average.
DEMOGRAPHICS
Road communications are excellent with the A5 ring road leading to the M54, 8 miles to the east, which leads to Junctions 10 and 11 of the M6 motorway and the rest of the national motorway network. Shrewsbury railway station provides direct services to Telford, Wolverhampton, Birmingham and London.
The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average and ranking the town 76 out of the PROMIS Centres. The level of car ownership in Shrewsbury is significantly above average with a particularly high proportion of 2 car households.
The town has recently been boosted by the opening of the University Centre, in conjunction with the Univerity of Chester.
HALLS COMMERCIAL
4
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
SITUATION The property is situated within Shrewsbury Business Park, approximately 2 miles to the south east of Shrewsbury town centre and fronting onto the A5 dual carriageway. The Park is a high quality office development on a site of some 30 acres. The first phase of the development comprised about 160,000 sq ft and the second phase, currently under construction, will provide an additional 150,000 sq ft of commercial offices. Occupiers on the Park include NFU, Brewin Dolphin, Shropshire Council, Handlesbanken, FBC Manby Bowdler, Whittingham Riddell, NHS, West Mercia Police Authority, Guestline and Jacobs Consulting. The Park benefits from a Holiday Inn Express and Busy Bee’s children’s day care nursery with the property providing retail and leisure support facilities. The property is located on Sitka Drive, which is a spinal road off the main arterial road serving the business park. The ownership of the property abuts onto London Road and therefore the property benefits from a profile road position within the Business Park.
DESCRIPTION The property comprises of a high quality three storey detached building providing a Total Net Internal Floor Area of approximately 7,700 sq ft (715.28 sq m). The property is of modern conventional construction benefiting from a high level of curtain wall glazing within the brickwork and profiled clad elevations. The roof cover is pitched and covered in slate. The property internally has been fitted out to a high standard, which can only be appreciated after an inspection of the property. The property benefits from 20 car parking spaces.
HALLS COMMERCIAL
5
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
ACCOMMODATION Ground Floor Shared Entrance Hallway Suite 1 185.79 sq m (2,000 sq ft) Suite 2 179.34 sq m (1,500 sq ft) First Floor Shared Landing Suite 3 139.34 sq m (1,500 sq ft) Suite 4 185.79 sq m (2,000 sq ft)
Second Floor Suite 5 27.22 sq m (250 sq ft) Suite 6 41.80 sq m (450 sq ft) Outside Car Parking for 20 spaces
(All measurements are approximate)
TENURE The property is long leasehold a 999 year lease at a peppercorn rent under Property Title SL 207210.
TENANCIES The property will be sold subject to a new lease to Matrix IDC Limited for a term of 10 The property is to be letRepairing to Matrix IVC a term 10 years on a per Tenants Ful years on a Tenants Full and Limited Insuringfor basis at aof rent of £86,750 annum. Repairing at to a rent of £86,750 perend annum. will be a tenant’s There willand be aInsuring tenant’sLease option determine at the of theThere 5th year, subject to 6 option determine the endisofsubject the 5th to year, subjectoftosub 6 months The to property is monthstonotice. The at property a variety lettingsnotice. equating a rent of subject to a variety of sub lettings equating to a rent of £66,50 per annum. Further details £66,750 per annum (excluding the suite which Matrix IDC Ltd currently occupy). can be provided upon request. Further details can be provided upon request from the selling agents.
HALLS COMMERCIAL
FURTHER INFORMATION
6
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMATION
FURTHER INFORMATION
COVENANT
VAT
The property is let to - Matrix IDC Limited
The property is elected for VAT purposes. It is anticipated that the investment should be treated as a TOGC (Transfer of A Going Concern). Parties should rely on their own enquiries before submitting any offer.
Registered office - HLB House, 68 High Street, Tarporley, Cheshire CW6 0AT Company Number 04244465 Matrix IDC Ltd was incorporated in July 2001 There are two directors The key Financial Information relating to Matrix IDC Limited is as follows: Key Financials 2014 2015 Cash in Bank £289k £89.7k Net Worth £386k £406k Total Assets less current liabilities £962,733 £952,316
PROPOSAL We are instructed to seek offers for our clients long leasehold interest subject to the occupational tenancies of £965,000, subject to contract and exclusive of VAT, which reflects a Net Initial Yield of 8.5% (after stamp duty and acquisition costs of 1.5%)
HALLS COMMERCIAL
LEGAL COSTS Each of the parties are to be responsible for their own legal costs incurred in respect of this matter.
7
INVESTMENT SUMMARY
LOCATION
DESCRIPTION
ACCOMMODATION TENURE
COVENANT PROPOSAL
FURTHER INFORMA-
FURTHER INFORMATION
FURTHER INFORMATION Further legal and other details are available as a pack from the selling agents: Rebecca Welch 01743 450715 [email protected] James Evans 01743 450700 [email protected]
Halls for themselves and for the vendors of this property, whose agent they are, given notice that: i) These particulars are intended for guidance only. They are prepared and issued in good faith and are intended to give a fair description but do not constitute part of an offer or contract. Any information given should not be relied on as a statement or representation of fact or that the property or its services are in good condition. ii) Halls have not made any investigations into the existance or otherwise of any issues concerning pollution and potential land, air and water contamination. The purchaser is responsible for making his or her own enquiries in this regard. iii) Neither Halls nor any of their employees has any authority to make or give any representation or warranty whatsoever in relation to the property. iv) The images show only certain parts and aspects of the property at the time they were taken/created. Any areas, measurements or distances given are approximate only. Any plans are for identification purposes only. v) Any reference to alterations to, or use of, any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. An intending purchaser must verify these matters. An occupier should not rely upon the Use stated in these particulars and should check their proposed use with the relevant Planning Authority .
HALLS COMMERCIAL
