Blackburn House, Romford, Essex28394.pdfBlackburn House, 22-26 Eastern Road, Romford, Essex, RM1 3PJ...

Blackburn House22-26 Eastern Road, Romford, Essex, RM1 3PJ

Well Secured Modern South East Office Investment

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investment Summary

• Modern purpose built office building with part red brick and part glazed façade in a prime central location.

• Total net internal area of 27,660 sq ft (2,570 sq m) on a self-contained site of 0.36 acres (0.14 hectares).

• Multi let to 5 tenants with 43.52% of the income secured against the excellent covenant of the Royal Bank of Scotland.

• 19 car parking spaces (1:1,456 sq ft).

• Current income of £358,000 including rental guarantee.

• Asset Management Opportunities to enhance income and potential change of use.

• Average weighted unexpired lease term of 7.08 years and 4.49 years to break options.

• We are seeking offers in excess of £3,500,000 for our clients freehold interest.

• Attractive net initial yield of 9.67% assuming purchasers costs of 5.80% and a low capital value of £126.53 psf.

Blackburn House, 22-26 Eastern Road, Romford, Essex, RM1 3PJWell Secured Modern South East Office Investment

Home investmentSummary

locationSituation

DescriptionAccommodation

Site AreaAsset Management Planning

TenureTenancy Schedule

Covenantinformation

EPCVATTransfer

ProposalContact Details


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location

Romford is a large town to the East of London situated within the M25 and part of the London Borough of Havering. The town benefits from excellent accessibility to both road and rail with access to the A12, A118, A124 and the M25 (J28 and J29). Romford Station is less than a minute’s walk at the end of Eastern Road and provides access to London Liverpool Street and Stratford.

A wide range of retail, commerce and leisure amenities can be found within walking distance of the subject property including The Brewery Shopping Centre.

Destination Distance Travel Times (Train)

M25 J28 4 miles

Stratford 11 miles 8 minutes

City Airport 11 miles 21 minutes

City of London 16 miles 17 minutes

Situation

Blackburn House is situated on Eastern Road within the town centre Ring Road a short walk from Romford Overground Station. Eastern Road is the principle office location within Romford and provides good access to the main road network.

Blackburn House is approximately equidistant from both The Brewery and The Mall Shopping Centres.

E ASTERN AV E

N C IRCU L A R R D

25 26

5

28

29

30

7

6/27

HARLOW

CHIGWELL

ILFORD

GREENWICH

HACKNEY

HASTINGWOOD

BARKING

LONDON

A414

A414

A12

A12

A13A12

A13

A406

A503

A10

A10

A2

A202

A103

M25

M11

R THAMES

LEYTONSTONE

A110

A112

A104

A121

A113

A414

A112

A1055A123

A113

A1112

WEST HAM

DAGENHAM

RAINHAM

HORNCHURCH

LOUGHTON

GR

T C

AM

BR IDG

E R

D

A406

4

N C

I RC

UL

AR

RD

A127

EAST HAM

London City

31

EDMONTON

WALTHAMSTOWROMFORD

B175

B174 COLLIER ROW

SOUTH ST

BRENTWOOD RD

UPPE

R BR

ENTW

OOD

RD

SQUIRRELS HEATH RD

SLEWINS LANE

OSBORNE RD

CRANHAM RD HILLVIEW AVE

CROW LANE OLD CHURCH RD

EASTERN RD C

ARLTON RD

VICTORIA RD

HEATH PARK RD

FAIRHOLME AVE

BALGORES LANE

HEATH DRIVE

A125 ROM VALLEY W

AY

A12

EASTERN AVENUE

A12

A125 NORTH ST

A118 LONDON RD

A125 THURLOE

GD

NS

A118 MAIN

RD

A12 COLCHESTER RD

A124 WOOD LANE

A124 RUSH GREEN RD HORNC HURCH RD HIGH ST

WATERLO

O RD

STONE AVE

ROMFORD

ROM VALLEYRETAIL PARK

EASTERN AVENUERETAIL PARK

GALLOWS CORNERRETAIL PARKRAPHAEL

PARK

GALLOWS CORNER

HORNCHURCH

HAROLDWOOD

HOSPITAL

HAROLDWOODA127 SOUTHEND ARTERIAL RD

THE BREWERY

THE MALL

SUBJECTPROPERTY

ROMFORDGOLF COURSE

GOLF COURSE

HAYNESPARK

THE NEWQUEENS HOSPITAL

ROMFORDSTADIUM

ROMFORD

EMERSON PARK

HAROLDWOOD

ROMFORDCEMETARY



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Description

Blackburn House is an attractive five storey modern purpose built office building featuring part red brick and part glazed elevations.

Primary access is via a main reception off Eastern Road. The reception houses a desk and provides access to stairs and two 8 person lifts. There is also a separate ground floor entrance that has been created for Hunt & Hunt Solicitors.

Separate enclosed car parking is also provided at ground floor level with 19 marked spaces. Additional spaces are used by Hunt & Hunt to the eastern flank.

Internally, the property provides five floors of flexible office accommodation with each floor being served by male and female WCs. The ground floor benefits from a disabled WC.

The office areas are mainly served by suspended ceiling grids with CAT II lighting, carpeted floors with many floors benefitting from air conditioning.

Heating is by way of gas fired radiators with majority of suites also benefitting from air conditioning/comfort cooling handling units set within the suspended ceiling grid.

Accommodation

The premises have been measure on a Net Internal basis and we are advised of the following floor areas:

Floor Sq M Sq Ft

Ground Floor 373.37 4,019

First Floor – East 395.76 4,260

First Floor – West 162.30 1,747

Second Floor – West 162.30 1,747

Second Floor – East 395.76 4,260

Third Floor – West 162.30 1,747

Third Floor – East 401.90 4,326

Fourth Floor – East 358.90 3,864

Fourth Floor – West 157.00 1,690

Total 2,569.66 27,660

Site Area

The property sits on a site of 0.36 acres (0.14 hectares).

Asset Management Strategies

There are the following asset management strategies to pursue:

• Negotiate the removal of the 2017 break from lease to RBS.

• Negotiate the removal of 2014 and 2015 breaks from Logistics Plus and ATOS.

• Implement outstanding 2012 review (Total Assist) to increase income.

• Consider alternative uses such as residential and design layouts.

Planning

New Parliamentary Guidance has recommended changes to the Permitted Development regulations. After a brief consultation with Local Authorities to highlight buildings they wish to retain as offices a change of use from offices to residential will be accepted. Blackburn House is one of the best office buildings in Romford but the potential to convert the property to an alternative use in future further underpins the property’s future occupancy.

Service Charge

The total service charge budget is £206,542.17 (£7.46 psf).


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Tenure

The property is owned freehold and subject to the tenancies set out below.

Tenancy Schedule

Floor Tenant Rent (£psf) Area (Sq Ft) Term (Years) Start Date Rent Review Expiry (Break) Comments

Ground Floor Hunt & Hunt £51,250 (12.75) 4,019 10 16/09/10 16/09/15 15/09/20 Ground floor self contained suite

First Floor East The Royal Bank of Scotland PLC £62,835 (14.75) 4,260 15 24/06/07 24/06/12 24/06/2022(24/06/17)

First Floor West Logistics Plus UK Ltd £18,344 (10.50) 1,747 10 25/06/09 25/06/14 24/06/19(25/06/14)

Second Floor West Total Assist Recruitment Ltd £19,665 (11.26) 1,747 10 29/09/09 28/09/12 29/09/19 Potential to increase to £22,700 pa

Second Floor East ATOS Origin IT Services UK Ltd £52,188 (12.25) 4,260 12 10/11/05 10/11/10 09/11/17(10/11/15)

Third Floor West Vacant £22,711 (13.00) 1,747 1 From completion Rent, rates and service charge guarantee

Third Floor East Total Assist Recruitment Ltd £49,749 (11.50) 4,326 10 29/09/09 28/09/12 29/09/19

Fourth Floor East The Royal Bank of Scotland PLC £56,994 (14.75) 3,864 15 24/06/07 24/06/12 24/06/22(24/06/17)

Property finance team

Fourth Floor West The Royal Bank of Scotland PLC £24,927 (14.75) 1,690 15 24/06/07 24/06/12 24/06/22(24/06/17)

Conference and meeting rooms

Total £358,663 27,660


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Covenant information

Royal Bank Of ScotlandThe RBS Group is a large international banking and financial services company 81% owned by HM Government. As at Q3 2012 the Bank reported operating profit of £1,047m and a core operating profit of £1,633m. Experian report an A Credit Rating for the business.

Date Of Accounts 31/12/2011 31/12/2010 31/12/2009

Currency GBP 000 GBP 000 GBP 000

Net Worth 49,489,000 45,775,000 43,237,000

Turnover 5,898,000 n/a n/a

Pre-tax Profit -864,000 -171,000 -3,000

Credit Rating A

Hunt and Hunt Hunt & Hunt have a long tradition in Romford being established in 1794 in the town. The firm of solicitors have an excellent reputation. The company concentrates on litigation, private client as well as property and commercial advice. The company trade as a Partnership so no accounts are available.

Total Assist Recruitment LtdTotal Assist Recruitment Ltd are a specialist healthcare recruitment company were established in 1999. The company are licensed to supply locum doctors under the terms of the NHS PASA National Framework Agreement. Blackburn House appears to be used principally as a call centre for the company.

Date Of Accounts 30/11/2011 30/11/2010 30/11/2009


Net Worth 1,091 1,366 1,208

Credit Rating A

Logistics Plus Europe LtdLogistics Plus are a global company established in 1996 and originally manage transportation for GE Transportation Systems in USA. The company now manage freight for small to large businesses and operate across 19 countries. Logistics plus are assessed by Experian with a Credit Score of A.

ATOS Origin ITAs one of the UK’s leading occupational health (OH) service providers, Atos Healthcare has extensive expertise in delivering healthcare solutions to large and complex organisations. The company employ medical professionals across disability assessment, and occupational health. In the UK, the company have a contract with the Department of Health and Primary Care Trusts to assess individuals ability to work.

Date Of Accounts 31/12/2011 31/12/2010 31/12/2009


Net Worth 1,406,265 1,291,887 1,353,245

Turnover 778,031 751,197 780,650

Pre-tax Profits 66,499 29,038 28,980

Experian Credit Rating A

Misrepresentation Act 1967.Glenny LLP for themselves and for the Vendors or Lessors of this property whose agents they are give notice that: 1. All descriptions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 2. Any services mentioned have not been tested and therefore prospective occupiers should satisfy themselves as to their operation. 3. These particulars are produced in good faith, and set out as a general guide only and do not constitute part of any offer or contract. 4. No person in the employment of Glenny LLP has any authority to make or give representation or warranty whatsoever in relation to this property. 5. All prices and rents are quoted exclusive of VAT unless otherwise stated. Designed and produced by Creativeworld. T 01282 858200. March 2013.



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EPC VAT

We are advised the Estate is elected for VAT.

Transfer of a Going Concern

We are advised the sale may be treated as a transfer of a going concern.

Proposal

We are seeking offers in excess of £3,500,000 (Three Million Five Hundred Thousand Pounds). A purchase at this level reflects a net initial yield of 9.67% assuming purchaser’s costs of 5.80%.

Contact

If you require further information or would like to arrange to inspect the premises please contact:

James McFeelyT: 020 8532 6820M: 07768 070249

http://www.glenny.co.uk

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