MODERN SOUTH EAST OFFICE INVESTMENT NOBLE HOUSE MK
Transcript of MODERN SOUTH EAST OFFICE INVESTMENT NOBLE HOUSE MK
MODERN SOUTH EAST OFFICE INVESTMENT
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
INVESTMENT HIGHLIGHTS • Affluent South East office centre• The population has the fourth highest average
wage in the UK• 3 Miles to J14 of M1, 45 Miles to Central London• Attractive central business park location• Modern office building with NIA of 20,299 sq ft• Freehold
• Average passing rent of £13.60 psf• Comparable rental deals at c.£17.25 psf• Fully let to four tenants with a WAULT of 2.5 years
to break (3.5 years to expiry)• Three tenants occupying on renewed leases• 93 car parking spaces (1:220 sq ft)• 1.85 acres site
• Offers sought in excess of £3,235,000 (subject to contract and exclusive of VAT). A purchase at this level will reflect a Net Initial Yield of 8.0% and a Reversionary Yield of 10.0% after allowing for standard purchaser’s costs of 6.47%. This reflects a low capital value of £160 psf.
LOCATION
Milton Keynes is the dominant commercial centre in Buckinghamshire. The town has a primary catchment population of 248,400 (2011 Census) and is located 45 miles north west of London and a similar distance from Birmingham, Oxford and Cambridge.
It was designated as a new town in 1967 and is now is one of the most successful (per capita) economies in the South East, with a gross value added per capita index that was 47% higher than the national average (2005 data). The town has the fourth highest average wages in the UK.
The town is home to the UK headquarters of Domino’s Pizza, Mercedes-Benz, Suzuki, Volkswagen and Network Rail. The attraction of Milton Keynes is highlighted in Goldman Sachs recently taking their only office outside London to headquarter Marcus, their on-line savings bank.
Milton Keynes Rail Station provides up to eight trains an hour to London Euston with a fastest journey time of 33 mins. Road connections are excellent as the own is located adjacent to the Junction 14 of the M1.
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
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MILTONKEYNES
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NORTHAMPTON
COVENTRYBIRMINGHAM
BEDFORD
CAMBRIDGE
PETERBOROUGH
LEICESTER
LUTONSTEVENAGE
LONDON
Elder Gate
Silbury
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Millers Way
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Grafton Street
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Saxon Street
Saxon Gate
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Chaffron Way
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Childs W
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H3 Monks Way
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Childs Way Childs Way
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Watling St
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Milton KeynesCentral
Campbell Park
OuzelValley Park
WillenLakeside Park
Pineham
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North LoughtonValley Park
North LoughtonValley Park
Heelandssports field
Marshall Milton KeynesAthletic Club
TOWNCENTRE
NOBLE HOUSE
SITUATION
The property is located on a landscaped self-contained site adjoining Linford Wood Business Park and the 42 hectare woodland park of Linford Wood. The property is approximately 2.5 miles from Milton Keynes Central Train Station.
Noble House is located at the junction of Monks Way and Marlborough Street 3.4 miles from Junction 14 of the M1.
DESCRIPTION
Noble House was constructed in 1991 and is arranged over ground and two upper floors with a central glazed atrium. Each floor provides an open plan suites either side of the core. The specification includes:
• Fully raised access floors
• 4 pipe fan coil air conditioning
• Triple glazing with encapsulated blinds
• 1x 10 person passenger lift
• Male and female WCs to each floor
The property is located on a 1.85 acre landscaped site with car parking to the front and rear of the property providing 93 spaces and an excellent ratio of (1:220 psf).
SERVICE CHARGE
The service charge budget for the year ending September 2019 is £248,450 (including tenant’s utilities). Excluding tenant’s utilities the service charge equates to £7.68 per sq ft.
RPS Consulting Services Limited has a service charge cap of £28,725 (excluding utilities) which produces an estimated Landlord’s shortfall of £4,617 for 2019. There are no other service charge caps.
Full information is available on request.
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
Ordnance Survey © Crown Copyright 2019. All Rights Reserved.Licence number 100022432Plotted Scale - 1:1250. Paper Size - A4
OCCUPATIONAL MARKET
In 2018 the take up for office accommodation in Milton Keynes was 315,000 sq ft, marginally above the 5 yearly annual average of 305,000 sq ft. The town has seen higher than average conversions under permitted development rights. In the past 6 months at least 150,000 sq ft of office accommodation has received prior approval for conversion to residential.
Combined with a lack of new build development this has decreased supply and increased rental values.
Date Property Tenant Size Rent psf
- Noble House, Milton Keynes Multi-let - £13.50 average
Jan 19 Libra, Linford Wood Business Centre
Qmatic 3,000 £13.50 no rent free converted B1(c) building
Dec 18 Building 5 Caldercott Lake Business Park
ITC 5,000 sq ft £17.50
Nov 18 Ash House, Linford Wood Confidential 5,135 sq ft £17.25
Sept 18 Eskan Court, Campbell Park Alliance Automotive 5,900 sq ft £19.00
Date Property Purchaser Tenant Average Term certain
Price Cap Val (psf)
NIY
- Noble House, Milton Keynes Multi-let 2.5 years £3.235M £160 8.0%
Dec 18 Omron, Opal Drive, Milton Keynes
Council Omron 6.5 years £4.74M £210 6.45%
Dec 18 Hexagon House, Milton Keynes
Private Leica Geosystems
5 years £4.6M £142 5.29%
Aug 18 Melita House, Chertsey
Squarestone Multi-let 2.6 years £4.9M £350 6.75%
Jan 18 3 Queens Road, Reading Canal and River Trust Multi-let 3 years £6.27M £406 6.0%
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
SOUTH EAST OFFICE INVESTMENT MARKET
Despite Brexit related political uncertainty, the South East office market continues to experience strong demand for good quality buildings. The market recorded another strong year in 2018 with total investment transactions of £3.5 billion which is 35% ahead of the 10 year average.
The lack of speculative development and erosion of stock through permitted development conversions has led to the majority of south east centres experiencing strong rental growth in recent years. This supply demand imbalance is predicted to continue rental growth in the short to medium term and attract further investment.
TENUREFreehold.
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
Floor Tenant Area Sq Ft
Lease Start
Lease Expiry
Rent Review
Break option Rent PA(psf)
ERV PA (psf)
Comments
Ground Floor Celaton Limited 6,739 10/05/2018 09/05/2023 N/A N/A £94,346(£14.00)
£114,563(£17.00)
31 car spacesIn occupation since May 2013 Inside 1954 L&T Act
First Floor North Wing RPS Consulting Services Limited
4,350 22/02/2015 21/02/2025 22/02/2020 21/02/2020Tenant break option,6 month rent free if not exercised
£56,800(£13.00)
£73,950(£17.00)
20 car spacesIn occupation since Feb 2010 s/c cap of £28,725 Inside 1954 L&T Act
First FloorSouth Wing
Prestige Purchasing Limited
2,430 24/03/2015 23/03/2020 N/A N/A £32,643(£13.50)
£41,310(£17.00)
12 car spacesOutside 1954 L&T Act
Second FloorSouth Wing
Motor Insurers’ Bureau 4,432 11/03/2016 10/03/2021 N/A March ’19 break option not exercised
£60,000(£13.50)
£75,344(£17.00)
20 car spacesOutside 1954 L&T ActSchedule of conditionTenant in occupation since March 2011
Second Floor South Wing
Motor Insurers’ Bureau 2,348 25/09/2017 10/03/2021 N/A March ’19 break option not exercised
£31,800(£13.50)
£39,916(£17.00)
10 car spacesOutside 1954 L&T ActTenant in occupation since December 2013
Electricity Sub Station East Midland Electricity Plc
N/A 04/07/1991 03/07/2090 N/A N/A Peppercorn -
Total 20,299 £275,589 £345,083
TENANCY SCHEDULEThe property is let as below and has a WAULT of 2.5 years to break and 3.5 years to lease expiry. The property has been measured in accordance with RICS Code of Measuring Practice (6th Edition) and provides the following net internal area (NIA):
COVENANT INFORMATION
Celaton Limited (Company Number 02871879) is a privately owned company providing automated services. For the year ending June 2018 the company reported a Turnover of £3.32 million. Further information is available at www.celaton.com
RPS Consulting Services Limited (Company Number 01470149) specialises in consultancy service for the built environment. For the year ending Dec. 2017 RPS reported a Turnover of £115 million, a Pre-tax Profit of £8.8 million and Net Assets of £32 million.
Prestige Purchasing Limited (Company Number 03474045) provides procurement services to the food industry. For the year ending December 2017 the company reported Limited Accounts with Net Assets of £164,000.
Motor Insurer’s Bureau (MIB) is funded by the motor insurance industry to reduce uninsured vehicles on the roads and to settle any claims arising from uninsured drivers. For the year ending December 2017 MIB had a Total Income of £515 million. MIB owns and occupies Linford Wood House a 26,000 sq ft office building adjacent to Noble House.
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT
Misrepresentation Act: Gain, for themselves and for the vendors of this property, whose agents they are, give notice that: i) These particulars are only for the guidance of prospective purchasers and do not form part of any offer or contract. (ii) Whilst the information contained herein is issued in good faith, neither the firm nor their client guarantee its accuracy and it is not to be relied upon as statements or representation of fact. (iii) Any intending purchasers must satisfy themselves as to the correctness of each of the statements made herein. (iv) The vendor does not make or give, and neither do Gain nor any of their employees have any authority to make or give, any representation or warranty whatever in relation to this property. (v) Nothing in these particulars constitutes a statement that the property and/or any services or facilities are in good condition or working order. (vi) These particulars were completed in January 2019. (vii) Gain will not be liable, in negligence or otherwise, for any loss deriving from these particulars. (viii) Gain is the Trading name for Gain Property Services - Registration Number 6723449. Design: CommandD www.commandHQ.co.uk Jan 2019
Brian Gavin t: 0207 412 8948m: 0759 562 0422 e: [email protected]
46 James Street, London W1U 1EZwww.gainproperty.co.uk
VATThe property is elected for VAT. The purchase could be structured as a transfer of a going concern.
ENERGY PERFORMANCE CERTIFICATEThe property has an EPC rating of E (121). The full EPC is available on request.
PRICE
We are instructed to seek offers of £3,235,000 (subject to contract and exclusive of VAT). A purchase at this level will reflect a Net Initial Yield of 8.0% and a Reversionary Yield of 10.0% after allowing for standard purchaser’s costs of 6.47%. This reflects a low capital value of £160 psf.
NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP