Halfway Green | Walton-On-Thames | Surrey · 2019-12-10 · Weybridge 3.9 2.4 Kingston-upon-Thames...

Walton Green, Walton-on-Thames | 1

Halfway Green | Walton-On-Thames | Surrey

Prime South East Office Investment

1 | Walton Green, Walton-on-Thames

Investment SummaryFully refurbished Grade A headquarters office building

Located in the South West Greater London office market

Situated close to Walton-on-Thames railway station and the M25, providing easy access to the national motorway network

Let to Kia Motors (UK) Limited, with a parent company guarantee from Kia Motors Europe GmbH

Unexpired term certain of approximately 15 years

Rental income of £906,133 per annum, reflecting £29.50 per sq ft (£318 per sq m) on the office areas, with half rent on the reception area

The property provides 30,970 sq ft (2,877 sq m) of accommodation over ground and two upper floors

172 car parking spaces, within a secure car park providing an excellent ratio of 1:180 sq ft

Offers in excess of £12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 6.95%, allowing for purchaser’s costs of 5.8%


Location M4 M4

M3

M25

M25

M25

A244

A244

A315

A4 A4

A30

A30

A30

A308

A308

A309

A243

A316

A3

A3

A244

A3050

A3050

A317

A307

A307

Guildford

Woking

Basingstoke

Windsor

Hounslow

HeathrowAirport

Weybridge

Walton-on-Thames

Twickenham

Kingston-upon-Thames

Portsmouth

Reading

Staines-upon-Thames

London

1

10

9

11

12

13

14

15

4b 4 3

2

Walton-on-Thames is a town located within the M25, approximately 26.7 km (16.7 miles) south west of Central London. It is part of the South West Greater London office market, which includes the surrounding towns of Weybridge, Staines-Upon-Thames and Kingston-Upon-Thames.

Road

Walton Green is highly accessible by road, with Junction 11 of the M25 8.8km (5.5 miles) to the west and Junction 1 of the M3 only 7.4 km (4.6 miles) to the north. Central London can be accessed either via the A316 to the north, or the A3 to the south of the property.

Distance Km MilesCentral London 26.7 16.7

Weybridge 3.9 2.4

Kingston-upon-Thames 10.5 6.6

Staines-upon-Thames 12.2 7.6

Air

Walton Green is well placed in terms of access to London’s airports; Heathrow Airport is approximately 18.3 km (11.4 miles) to the north; Gatwick Airport is approximately 39.7 km (24.8 miles) to the south east; and London City Airport is approximately 40.7 km (25.3 miles) to the north east.

Rail

Access to the national railway network is provided at Walton-on-Thames railway station, located only a 2 minute walk to the south west of the subject property. From there, South West Trains run a regular service directly into London Waterloo approximately every 15 minutes, with a fastest journey time of 26 minutes. There are also regular services to Woking and Basingstoke to the west.

MinutesLondon Waterloo 26

Woking 12

Basingstoke 51

Not to scale: For Indicative Purposes Only

Postcode: KT12 1RS


BURWOOD RD

WES

TCA

R L

N

ROBINSW

AY

MO

LES

EY R

DAMBLESIDE AVE

AS

HLE

Y R

D

OAT

LAND

S DR

CHURCH ST

COTTIMORE LN

HERSHAM RD

RYDENS RD

QUEENS RD

QUE

ENS R

D

STATION A VE

WALTON BRIDGE RD

M25 (J11)

M3(J1)

Hersham

Halfway Green

Esher

A3 (West)

Walton-on-Thames

A317

A3050

A317 A244

A244

A244

A3050

West EndCommon

Queen Elizabeth IIReservoir

TownCentre

SituationWalton Green is situated on Halfway Green, off Station Avenue. This leads directly onto the A244, connecting the property with Hersham to the south and Sunbury to the north. The property is 1.6 km (1.0 mile) to the south of Walton-on-Thames town centre, which provides extensive amenities including The Heart Shopping Centre, with over 60 retail stores, as well as other retail and leisure offerings.

To the south, the property is bounded by further office buildings; Walton Court, formerly Unilever’s headquarters, is situated immediately to the south west, whilst KBC House, the headquarters of KBC Advanced Technologies, is situated immediately to the south east. Other surrounding uses include a local retail offering, car showroom and residential accommodation.

Not to scale: For Indicative Purposes Only


DescriptionWalton Green is a headquarters office building, which has recently been refurbished to Grade A specification.

The property is of brick construction, under a pitched roof. It provides 30,970 sq ft (2,877 sq m) of office accommodation arranged over ground and two upper floors. The floor plates are arranged as two ‘wings’ on either side of a central core, which contains two thirteen person passenger lifts, and there are staircases located at the end of each wing. As a result, the office accommodation is highly flexible and capable of multiple occupation on a whole or part floor by floor basis. The floor plate on the second floor is slightly recessed to accommodate two balconies which overlook Halfway Green.

The recent refurbishment involved the installation of new fan coils and chillers to the four pipe fan coil air conditioning, new ceiling tiles and new LG7 compliant lighting. The WCs and showers were also replaced, and the building benefitted from a new reception and full redecoration.

As part of their fit out, the tenant has applied for planning permission to construct a glazed extension to the rear of the property to incorporate their new reception area.


14.6m

15.5m

14.9m

Chy

HERSHAMRO

AD

HALFW

AYG

REEN

FERNLEIGH CLOSE

Halfway Green

1 to 3

AmbulanceLodge

109105

111

Court

The

93

Overthorn

107

77

99

40

103

13to27 7981

42 to

50

87

89

101

93a

401

to26

Oakdene

Station

Bungalow

2

91

97

26

Vincent Court

Site Area 1.631 Acres (0.660h)Quinton Scott

Chartered Surveyors

WALTON GREEN,HALFWAY GREEN WALTON-ON-THAMES SURREY KT12 1RS

Ordnance Survey © Crown Copyright 2012. All rights reserved. Licen ce number 100020449.Getmapping plc 2012. Plotted Scale - 1:1250

SpecificationFollowing the recent refurbishment, the property provides the following specification:

New fan coils and chillers to four pipe fan coil air conditioningNew metal tile suspended ceilingsNew LG7 compliant lighting2.7m floor to ceiling height1.5m planning gridFull access raised floors (120mm clear void)New WCsNew showers2 x 13 person passenger liftsBalconies on the second floor

ParkingThe building benefits from 172 car parking spaces, equating to an excellent car parking ratio of 1:180 sq ft.

Site AreaThe site area is 0.66 hectares (1.63 acres).

AccommodationThe property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas:

Floor Use Area (sq ft)

Area (sq m)

Second Office 9,986 928

First Office 10,495 975

Ground Office 9,983 927

Ground Reception 506 47

TOTAL 30,970 2,877

First Floor Plan

Not to scale: For Indicative Purposes OnlyCrown Copyright - licence no. 100018190. Based on Ordnance Survey 2013. Not to Scale - For Identification Purposes Only.


TenancyThe property is fully let to Kia Motors (UK) Limited, with a guarantee from Kia Motors Europe GmbH on a 15 year lease expiring 24th December 2027. The unexpired term is therefore approximately 15 years.

The current rent passing is £906,133 per annum, which equates to £29.50 per sq ft on the office accommodation and £14.75 per sq ft on the reception. The tenant benefits from a rent free period of 20 months, which will be topped up by the vendor.

The rent is subject to five yearly upwards only rent reviews, the next of which will be 25th December 2017.

The lease is drafted on full repairing and insuring terms.

The guarantee from Kia Motors Europe GmbH is in place until the tenant satisfies a Profits Test, whereupon the guarantor shall be released from its obligations. This requires the tenant to demonstrate that they have produced net profits of at least three times the passing rent, and have net assets of at least ten times the passing rent, for three consecutive years.

Tenant’s CovenantKia, headquartered in Seoul, is South Korea’s second-largest automobile manufacturer, with global sales in excess of 2 million vehicles a year. The largest manufacturer in South Korea, the Hyundai Motor Company is a 33.99% stakeholder in Kia, although the brands operate separately. Kia is a household name, with an ever-expanding range of models sold through a network of dealers in 172 countries, employing over 44,000 people globally.

Kia has been operating in the UK since 1991. Initially private car distribution firm MCL Group acted as an importer, until Kia Motor Corporation took direct control of the franchise in the UK in 2002, creating a new company, Kia Motors UK. As Kia has grown in the UK, so too has its dealer network, expanding from 90 dealers to in excess of 160 since Kia took direct control of distribution in 2002.

Kia Motors (UK) Ltd

Dun and Bradstreet give Kia Motors (UK) Limited a rating of 2A3.

Their financial records for the last three years are summarised below:

Year Ending

Sales Turnover (£000’s)

Profit / (Loss) Before Tax (£000’s)

Tangible Net Worth (£000’s)

Net Current Assets (Liabilities) (£000’s)

Dec-2011 547,229 18,889 1,610 (5,005)

Dec-2010 553,996 3,418 (17,279) 15,230

Dec-2009 519,166 (55,050) (20,697) (18,645)

Kia Motors Europe GmbH

Dun and Bradstreet give Kia Motors Europe GmbH a rating of 5A2, which indicates a lower than average risk of business failure.

Their financial records for the last three years are summarised below:

Year Ending

Net Sales Turnover (€000’s)

Profit / (Loss) Before Tax (€000’s)

Shareholders Equity (€000’s)

Current Assets (Liabilities) (€000’s)

Dec-2011 2,939,242 (2,481) 560,142 1,013,314

Dec-2010 2,030,487 1,721 534,659 1,137,017

Dec-2009 1,854,383 7,767 506,938 1,384,410

Kia Motors Europe GmbH is the parent company of Kia Motors (UK) Limited.

TenureThe property is held freehold.

Unexpired TermThere are approximately 15 years unexpired.

Rental Top UpThe vendor is proposing to top up the remaining rent free period on the lease.


Market CommentarySitting within the wider market of the South West M25 quadrant, Walton-on-Thames has an affluent catchment and excellent communication links. As such, it is an attractive area for office occupiers that wish to exploit the benefits of a suburban London location, combining an attractive working environment with close proximity to Central London. Surrounding locations, such as Staines, Chertsey and Weybridge, that attract occupiers for similar reasons provide accommodation for many blue chip occupiers including Proctor and Gamble, Mercedes, Sony, Centrica, IBM and Samsung.

The supply of available office accommodation within the South West M25 quadrant has declined significantly over the last decade, standing at just over 300,000 sq ft at the end of 2012. Conversely, take up has remained strong; 90,000 sq ft of space has been placed under offer since the start of 2013 and there are over 75 further active requirements. With a spike in lease expiries/breaks due over the next five years, and a limited amount of speculative development under construction, the amount of available Grade A accommodation is expected to continue to diminish, laying a strong foundation for rental growth.

Investment TransactionsRecent comparable transactions include:

Date Property Rent psf Term Certain (Years)

Price (Cap Val psf)

Net Initial Yield

Purchaser

Jan-13 IMG, 5 Longwalk, Stockley Park

£26.17 15.0 £42.27M (£391)

6.35% Overseas Investor

Jul-12 Unilever, Leatherhead £24.69 11.2 £61.15M(£361)

6.85% London Metric

Jul-12 Forum House, Staines £21.90 9.0 £5.16M(£303)

7.23% Private Investor

Apr-12 Costain House, Vanwall Business Park, Maidenhead

£29.46 12.6 £14.71M(£421)

7.00% Middle Eastern

Investor


VATThe property is elected for VAT.

EPCThe building has an EPC rating of C.

ProposalOffers in excess of £12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive net initial yield of 6.95%, allowing for purchaser’s costs of 5.8%.

Contact DetailsFor further information, or to arrange an inspection, please contact:

Mark Porter 020 7409 9944 [email protected]

Jhaklyne Hassan 020 7409 8765 [email protected]

Megan Garner 020 7409 8145 [email protected]

20 Grosvenor Hill London W1K 3HQ

Important NoticeSavills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 February 2013

Halfway Green | Walton-On-Thames | Surrey · 2019-12-10 · Weybridge 3.9 2.4 Kingston-upon-Thames...

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Transcript of Halfway Green | Walton-On-Thames | Surrey · 2019-12-10 · Weybridge 3.9 2.4 Kingston-upon-Thames...