RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE … LE Riversi… · · 2017-03-30riverside business...
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PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE GUILDFORD, GU1 4UG
Transcript of RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE … LE Riversi… · · 2017-03-30riverside business...
PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT
GUILDFORDRIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE
GUILDFORD, GU1 4UG
INVESTMENT SUMMARY
• GuildfordisahighlyaffluentcommutertownandtheprincipalcommercialandadministrativecentreinSurrey.
• RiversideBusinessParkisprominentlylocatedinGuildfordtowncentrejust0.4miles(0.64km)northofGuildfordRailwayStation.
• Theestatecomprises7industrialandtradecounterunitstotalling47,814sqft(4,442.1sqm),withunitsizesrangingfrom3,659sqftto15,329sqft.
• Letto8tenantsprovidingaWAULTof4.3yearstoexpiryand2.2yearstobreaks.
• Totalrentalincomeof£460,495perannum,reflectingalowaveragepassingrentof£9.63persqft.
• Highlyreversionaryrentalincomewithtopheadlinerentsinexcessof£11.50persqftinGuildford.
• OpportunitytoobtainvacantpossessionbyAugust2019allowingredevelopmentofthesiteforahigherusevalue(subjecttoplanning).
• Totalsiteareaof2.33acreswhichreflectsasitedensityof38%.
• Theredevelopmentpotentialunderpinsthesiteforalternativehighervalueuses.
• Weareinstructedtoseekoffersinexcessof£8,633,000 (Eight Million Six Hundred and Thirty Three Thousand Pounds) for thefreeholdinterest,subjecttocontractandexclusiveofVAT.
• Apurchaseatthislevelreflectsanet initial yield of 5.00%, an attractive reversionary yield of 5.71%andequivalent yield of 5.39% afterassumingpurchaserscostsof6.68%.
• Low capital value of £181 psf.
GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG
LOCATIONGuildfordistheprincipalcommercialandadministrativecentreinSurreyandbenefitsfromahighlyaffluentcatchmentpopulation.
Thetownislocatedapproximately31miles(50km)southwestofcentralLondon,27miles(43km)northwestofCrawleyand26miles(41km)eastofBasingstoke.
Thetowniswellconnectedbyroad,beingsituatedadjacenttotheA3whichprovidesdirectaccesstoJunction10oftheM259miles(14km)tothenortheast.GuildfordisservedbyregularrailservicestoLondonWaterloowithafastestjourneytimeof37minutes.
HeathrowandGatwickairportsarelocated21miles(34km)tothenorthand25miles(40km)tothesoutheastrespectively.
SITUATIONRiversideBusinessParkissituatedonaprominentsiteinGuildfordtowncentrewithsubstantialfrontageontoWalnutTreeClose.
ThepropertyisoneofthemostcentrallylocatedindustrialestateswithinGuildford,being0.4miles(0.64km)northofGuildfordRailwayStationand0.7miles(1.12km)southoftheA3.
TheUniversityofSurreycampusis0.6miles(0.96km)tothewestandGuildford’sprimeretailpitchis0.5miles(0.80km)southeast.
Thesurroundingareacomprisesamixofindustrial,tradecounter,office,residentialandstudentaccommodationuses.
A31
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A404(M)
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Cranleigh
CrawleyEast Grinstead
RedhillDorking
Alton
Farnham
Aldershot
Farnborough
WokingCamberley
WokinghamBracknell
Reading
Maidenhead
Windsor
Slough Hayes
Egham
Weybridge
Leatherhead
Epsom
BromleyKingston
upon Thames
Twickenham
HeathrowAirport
LONDON
Basingstoke
Haslemere
GUILDFORD
GatwickAirport
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WORPLESDON ROAD
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ALRESFORD ROAD RIDGEMOUNT
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OLD PALACE ROAD
AGRARIA ROAD WODELAND ROAD
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FARNHAM ROAD
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MILLBROOK
SYDENHAM ROAD
PEWLEY HILL
BRIGHT HILL
HIGH ST HIGH STNORTH STREET
EPSOM ROAD
A246 YORK ROAD WATERDEN RD
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WOODBRIDGE ROAD
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GUILDFORD
LONDON ROAD
GUILDFORDCATHEDRAL
TOWN CENTRE
University ofSurrey SUBJECT PROPERTY
PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT
WALNUT TREE CLOSE
FARNHAM ROAD
A3 A3
University ofSurrey
GuildfordCathedral
GuildfordBusiness Park
Guildford IndustrialEstate
Cathedral HillIndustrial Estate
Crown CourtGuildford
Scape 141 Student Accommodation Units.Completed
Station ViewResidential Developmentof 177 Units. Completed
Wey CornerResidential Developmentof 56 Units. Under Construction.
Walnut Tree Park Planning for c. 35,000 sq �of Grade A Oice Accommodation.
Pembroke HousePlanning for c. 30,000 sq �Speculative Grade A Oice Building.
GuildfordStation
SUBJECT PROPERTY
A3
GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG
DESCRIPTIONThepropertywasconstructedinthelate1980sandcomprises7industrialunitsarrangedacrosstwoterracesandonestandaloneunitonaself-containedsite.
Theestateprovidesatotalgrossinternalareaof47,814sqft(4,442.1sqm),withindividualunitsizesrangingfrom3,659sqft(339.9sqm)to6,792sqft(631.0sqm).
Unit1hasbeensubdividedintoanindustrialunitof6,792sqft(631.0sqm)andanofficeunitof8,537sqft(793.1sqm).
Unitsareofsteelframeconstructionwithpartglazed/partprofilemetalcladwalls,underpitchedprofilemetalcladroofs,incorporatingtranslucentroofpanels.Theunitsbenefitfromacleareavesheightofapproximately5.2m,singleup-and-overloadingdoorsandintegralofficeaccommodation.Servicingandparkingistothefrontofeachunit.
Thetotalsiteareais2.33acres(0.94hectares),whichreflectsalowsitedensityofapproximately38%.
Thereareapproximately109markedonsitecarparkingspaces.
PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT
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3
4
5 6 7
TENANCYThepropertyislettoeighttenantsoneffectivefullrepairingandinsurancetermsinaccordancewiththetenancyschedulebelowprovidingatotalrentalincomeof£460,495perannum(£9.63persqftoverall).TheWAULTtoexpiryis4.3yearsandtobreak2.2years.VacantpossessionofthewholeestatecanbeobtainedinAugust2019whenallbreakscanbeterminatedbythelandlord.
Unit Tenant Area Rent LeaseStart LeaseExpiry
NextRentReview
BreakOption
EPC InsideL&T1954Act
Comments
SqFt SqM £p.a £psf
Unit1,WarehouseandPartGroundFloor
EuropeanTyreEnterpriseLtdt/aKwikFit
6,792 631.0 £66,320 £9.76 10/10/15 01/08/23 01/08/19 01/08/19 D78 Outside Mutualbreakoption.Ifthebreakisnotexercisedbythetenant,theLandlordmustpayacapitalcontributionof£39,500+VATtotheTenant.Thelandlordcanonlybreakforredevelopmentwithapenaltypaymentof£75,000+VATtotenant.
Unit1,PartGroundFloor&1stFloorOffices
WielandElectricLtd 8,537 793.1 £80,000 £9.37 10/10/15 01/08/23 01/08/19 01/08/19 D78 Outside Mutualbreakoption.
Unit2 ManbatLtd 3,659 339.9 £38,000 £10.39 15/04/17* 11/08/19 - - D82 Outside Photographicscheduleofcondition. *Newleasewithengrossmentsout.
Unit3 FigmentProductionsLtd 5,237 486.5 £48,000 £9.17 26/09/13 01/08/19 26/09/18 - D82 Outside Photographicscheduleofcondition.
Unit4 CaltestInstrumentsLtd 5,789 537.8 £51,500 £8.90 01/07/14 30/06/19 - - D82 Outside Rentdepositheldof£25,006inc.VAT.Photographicscheduleofcondition.
Unit5 LouiseEmmaPierit/aPerformancePreparationAcademy
6,013 558.6 £55,500 £9.23 12/08/13 11/08/23 12/08/18 11/08/19 D78 Outside Mutualbreakoption.Thelandlordcanonlybreakforredevelopmentwithapenaltypaymentof£60,000tothetenant.
Unit6 EuroServicesLtd 5,698 529.4 £56,000 £9.83 24/03/14 01/08/19 - - D78 Outside Photographicscheduleofcondition.
Unit7 HydronixLtd 6,089 565.7 £65,175 £10.70 15/04/12 14/04/22 15/08/19 14/08/19 D78 Inside Mutualbreakoption.Thelandlordcanonlybreakforredevelopment.
ElectricitySubstation
SouthEasternElectricityPlc - - - - 13/11/86 12/11/85 - - - Inside
Totals 47,814 4,442.1 £460,495 £9.63
GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG
COVENANT INFORMATIONThepropertyislettoadiversemixofnationalmultiple,regionalandlocaloccupiers.Approximately65%oftheincomeissecuredtotenantswithaminimumriskofbusinessfailureandafurther21%issecuredagainsttenantswithalowerthanaverageriskofbusinessfailure.
Unit TenantLatest Reported
Financial YearTurnover Net Worth
Dun & Bradstreet Rating
Percentage of Income Company Website
Unit1,WarehouseandPartGroundFloorEuropeanTyreEnterpriseLtd
t/aKwikFit2016 - £358,000,000 5A1 14% www.kwik-fit.com
Unit1,PartGroundFloor&1stFloorOffices WielandElectricLtd 2015 - £1,257,418 1A1 17% www.wieland-electric.com
Unit2 ManbatLtd 2015 £49,894,000 £12,350,000 3A1 8% www.manbat.co.uk
Unit3 FigmentProductionsLtd 2015 - £448,484 A2 10% www.figmentproductions.co.uk
Unit4 CaltestInstrumentsLtd 2015 £2,102,215 £101,696 C2 11% www.caltest.co.uk
Unit5LouiseEmmaPierit/a
PerformancePreparationAcademy
- - - - - www.ppacademy.co.uk
Unit6 EuroServicesLtd 2016 £11,738,358 £2,911,457 2A1 12% www.eslceramics.co.uk
Unit7 HydronixLtd 2016 - £1,212,226 1A1 14% www.hydronix.com
TENUREFreehold.
SERVICE CHARGEThereisaservicechargewhichrelatestotheupkeepoftheestate.Thebudgetfortheyearending31stMarch2018is£34,952representing£0.74persqft.
PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT
REDEVELOPMENT POTENTIAL Thepropertysitsonaprimewellconfiguredsitethatlendsitselftofutureredevelopment.AnumberofsitesalongWalnutTreeCloseandtheimmediatesurroundingareaarebeingredevelopedintoresidential,studentaccommodationandofficeuses.Themostnotabledevelopments,bothproposedandcompleted,areasfollows:
Wey Corner Residential DevelopmentBellwayHomesarecurrentlydeveloping56residentialapartmentsonasiteadjacenttoRiversideBusinessPark.
Walnut Tree Park PeverilSecuritieshaveachievedplanningconsenttodeveloptwoGradeAofficesonWalnutTreeClosetotalling35,000sqft.
Scape Living, SurreyScapeLivinghasrecentlydeveloped141studentaccommodationunitsonWalnutTreeClose.
Pembroke House, Mary RoadInvestraareundertakinga30,000sqftGradeAspeculativeofficedevelopmentonMaryRoad.Theyacquiredthesitein2016for£3.45m(£5.4mperacre).
Station View, GuildfordTaylorWimpeyhasrecentlydeveloped177residentialunitsadjacenttoGuildfordStation.
Theredevelopmentpotentialunderpinsthesiteforalternativehighervalueuses.
OCCUPATIONAL MARKET TheindustrialandtradecountermarketintheSouthEastandspecificallyGuildfordhasseensignificantrentalgrowthoverthelast12months.Thishasbeendrivenbyanincreaseinoccupationaldemandandareductioninavailablesupplyduetotheredevelopmentofolderindustrialunitsinurbanareasforhighervalueuses.
Totalindustrialstockiscurrentlyaround3.93msqftinGuildford.Currentavailabilityforunitsizesof3,000sqft–10,000sqftisonly47,000sqft,across7industrialunits.Thisrepresentsjust1.2%oftotalindustrialstockinGuildford.
Thetablebelowoutlinesthemostrecentlettingcomparablesanddemonstrateshowtheacuteshortageofavailablestockhaspushedrentsinexcessof£11.50persqftforthebestunits. Asaresult,webelievethepropertyiscurrentlyreversionary:
Property Size Date Tenant Rent(psf) Term Incentives/Comments
Unit9GuildfordIndustrialEstate 7,356 Dec-16 SurreyHillsRemovals £11.56 10 6monthsrentfree.Rentreviewandbreakinyear5.
Unit7GuildfordIndustrialEstate 9,085 Nov-16 CCPSupplies £12.11 10 Noincentives.Rentreviewandbreakinyear5.
Unit7SlyfieldIndustrialEstate 19,489 Aug-16 AndertonMusicRetailing £10.50 10 10monthsrentfree.Rentreviewandbreakinyear5.
GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG
PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT
INVESTMENT MARKET Themulti-letSouthEastindustrialinvestmentmarkethasprovedincrediblyresilientsincetheEuropeanReferendumvotewithcontinuedstronginvestordemandforprimestock.AssetslocatedwithintheSouthEastremainthepreferenceasinvestorconfidencetowardslocation,occupationaldemandandvacancyriskimproves.
2016and2017haveseenanumberofSouthEastindustrialinvestmentslaunchedtothemarketthatwerereceivedverywell,withcompetitivebidding.Anumberofprimeassetshavetradedatnetinitialyieldsbelow5%drivenbypentupdemandforwell-locatedestates.
Recentcomparabletransactionsinclude:
Building Town/City DateArea (sqft)
AWULT(break)
Price NIY CV(psf)
Phase300CentennialPark Elstree U/O 112,214 2.9 c.£28.50m c.4.70% c.£255
OrchardBusinessPark Woking U/O 75,000 10 c.£21.00m c.4.75% c.£280
EghamBusinessPark(specfunding) Egham Jan-17 110,000 N/A £30.50m 4.60% £277
ReadingApproach Reading Jan-17 81,584 8.7 £13.00m 4.85% £159
ElstreeTradePark Borehamwood Dec-16 61,895 8.8 £23.15m 4.43% £275
ChessingtonPark Chessington Sep-16 95,400 3.8 £18.07m 4.96% £189
ClaytonBusinessCentre Hayes Sep-16 35,665 5.0 £7.58m 4.60% £212
PumaTradePark Mitcham Aug-16 47,599 7.1 £10.75m 4.89% £226
VAT ThepropertyiselectedforVATanditisproposedthatthesalewillbetreatedasaTransferofGoingConcern(TOGC).
DATA ROOM Thereisalegaldataroomforthepropertywhichcontainsanenvironmentalreport,floodrisksurveys,keytenancyandservicechargeinformation,titledocumentsandEPC’s.Accesstoitcanbeobtainedonrequest.
GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG
LewisEllisLLPforthemselvesornomineesorlessorsofthispropertywhoseagentstheygivenoticethat:(1)theparticularsaresetoutasageneraloutlineonlyfortheguidanceoftheintendingpurchasersorlessees,anddonotconstitutepartofanofferorcontract;(2)alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsaregiveningoodfaithandarebelievedtobecorrect,butanyintendingpurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthem;(3)nopersonintheemploymentofLewisEllisLLPhasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtotheproperty.DesignedandProducedbyCreativeworld.Tel:01282858200.March2017.
James ElkingtonTel: 02074933330Mob: 07810722459Email: [email protected]
John EllisonTel: 02074933330Mob: 07889437236Email: [email protected]
Julian GallagherTel: 02074933330Mob: 07941413299Email: [email protected]
FURTHER INFORMATION Shouldyourequirefurtherinformationorwishtoviewtheproperty,pleasecontacteither:
PROPOSALWeareinstructedtoseekoffersinexcessof£8,633,000 (Eight Million Six Hundred and Thirty Three Thousand Pounds)forthefreeholdinterest,subjecttocontractandexclusiveofVAT.
Apurchaseatthislevelreflectsanet initial yield of 5.00%, an attractive reversionary yield of 5.71%, an equivalent yield of 5.39%, and a low capital value of £181 per sq ft,afterassumingpurchaserscostsof6.68%.
