SOUTH EAST MODERN OFFICE INVESTMENT 200 & 210 EUREKA … · 2018. 3. 19. · Internet Business...

SOUTH EAST MODERN OFFICE INVESTMENT

200 & 210 EUREKA BUSINESS PARKUPPER PEMBERTON, ASHFORD, KENT TN25 4AZTHE MOST RECENTLY DEVELOPED AND FULLY LET OFFICE BUILDINGS ON ASHFORD’S PREMIER OFFICE PARK

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INVESTMENT SUMMARYAshford is an affluent, well located south east

town, situated 54 miles south east of London on

junction 9 of the M20 motorway with Ashford

International train station providing high speed

rail links to both London and Europe

Eureka Business Park is an established business

park location, situated 1 mile north west of

junction 9 of the M20 motorway and 2.5 miles

north west of Ashford town centre and Ashford

International train station

Buildings 200 & 210 were constructed in 2012

to provide two detached self contained, high

specification, air-conditioned offices

Total net internal floor area of 2,414.16 sq m

(25,985 sq ft) with 94 car spaces providing a car

parking ratio of 1:276 sq ft

Entirely let to two tenants with an AWULT of

7.48 years to expiry and 5.28 years to break

(inclusive of 1 year rent penalty)

Total net income of £503,081 per annum

exclusive (£19.36 psf overall) plus additional car

parking income of £10,557 per annum

Rent subject to one fixed uplift in 2022 to reflect

a total income of £518,422 per annum exclusive

(£19.95 psf overall)

Offers are sought in excess of £5,550,000

(Five Million Five Hundred and Fifty Thousand

Pounds) subject to contract and exclusive of VAT

(inclusive of costs of stamp on VAT)

A purchase at this level reflects an attractive net

initial yield of 8.60% assuming purchaser’s

costs of 7.61%

Low capital value of £213 per sq ft

200 Eureka Business Park


33

M20

M20

M26M25

M23

M2

A259

A251

A299

A299

A2070

A20A28

A28

A28

A22

A23

A23

A27

A26

A21

A21

A20

A2

A2

FolkestoneFolkestoneFolkestone

HastingsHastingsHastings

MaidstoneMaidstoneMaidstoneSevenoaksSevenoaksSevenoaks

EastbourneEastbourneEastbourneBrightonBrightonBrighton

CroydonCroydonCroydon

TunbridgeTunbridgeWellsWells

TunbridgeWells

DoverDoverDover

FavershamFavershamFaversham

DartfordDartfordDartford

CanterburyCanterburyCanterbury

GatwickGatwickGatwick

ASHFORDASHFORDASHFORD

LondonLondonLondon LOCATION Ashford is a significant Kent town with a population of approximately 118,000, which has had a 14.9% increase over the last decade, one of the fastest growing towns in the south east.

Ashford has excellent infrastructure being located 54 miles south east of London at junction 9 and 10 of the M20 motorway. In addition, the Government has committed to fund the long-awaited junction 10a. The proposed development will include a new dual carriageway link road to the existing A2070 Southern Orbital Road and will also connect to the A20 Hythe Road.

Ashford has seen rapid expansion over the last 15 years with Ashford International train station 2.5 miles away providing frequent high speed trains to London Kings Cross St Pancras in just 38 minutes. It is now a major terminus for Channel Tunnel trains providing 37 Eurostar trains per week to Europe.

The town has been designated ‘The Growth Town of Kent’, with local businesses benefiting from the creation of a further 27,810 jobs and homes for 30,780 residents by 2031. Now 6,000 businesses employ more than 51,000 people with 1.7m employees lying within a 60 minute drive from the town. As such Ashford has become a commercial powerhouse in the South East.

Retail in Ashford Town Centre is centred around County Square which has 5 million visitors per year with footfall to the town centre rising by 5.7% in 2016. 47% of the town centre shops are occupied by independent retailers.

Ashford has attracted nearly £700m of investment in the town. Current development activity includes:

Commercial Quarter - 16 acre site adjoining Ashford International Station, a joint venture between the Council, Quinn Estates and Wilson Holdings to provide 600,000 sq ft of office space, 150 residential units, and a new piazza.

Elwick Place - town centre leisure-led development by London developer Stanhope. Consent for a six-screen, 897 seat, boutique Picturehouse cinema, a 58 bed hotel, 8 new restaurants/cafes, 282 new car parking spaces and new public space.

Designer Outlet Extension - near the international railway station, owners McAthur Glen are underway to add a further 100,000 sq ft to this tented retail mecca. Fifty new stores, restaurants and extra car parking are proposed, creating up to 700 new jobs.

Chilmington Green - this residential development will provide around 5,750 new homes across the next 25 years. Construction started in Spring 2017.

Finberry Village - a new residential development by Crest Nicholson, which will eventually provide 1,180 homes on a 168 hectare site.

Ashford College - an exciting new £26m campus that opened in 2017 to provide state-of-the-art vocational skills and training facilities in the town centre.

Victoria Way/Aldi Foodstore - Developers U+I are working on a £180m rejuvenation project along Victoria Way which has already seen £25m of public realm improvement and will include 660 new homes. A second scheme will create a further 200 homes, a 120-bed hotel, and an Aldi supermarket.

Source; http://www.ashfordfor.com/space-to-grow/ashfords-big-8

200 & 210 EUREKA BUSINESS PARK

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M20

M20

Ashford Ashford InternationalInternationalAshford International

Ashford TownCentre

Eureka BusinessEureka BusinessParkPark

Eureka BusinessPark Eureka PlaceEureka PlaceEureka Place

Eureka LeisureEureka LeisureParkPark

Eureka LeisurePark

MAIDSTONE ROAD

GODINTON ROAD

RGEO LAF . TSEW

FAVERSHAM ROAD

HYTHE RD.

AVE.ILEW ENOMIS

LOWER PEMBERTON

J9

A28

A20

A28

A292

ToFolkestone

ToLondon

Eureka Place

SITUATION Buildings 200 and 210 (collectively referred to as Northdown 2), are located within the core of Eureka Business Park, accessed via Upper Pemberton, which adjoins Trinity Road (A251) directly.

Eureka Business Park is easily accessible. It is situated to the west of Trinity Road (A251) which connects the Park directly to the M20 motorway (junction 9), just 1 mile to the south, which in turn provides fast access to the M25 to the north in approximately 30 minutes.

Opposite Eureka Business Park is Eureka Place which comprises neighbourhood convenience retailing together with a public house, children’s day nursery, pharmacy and veterinary centre. Tenants include; One Stop Convenience Store, Corals, Delmergate

Pharmacy, Cinnamon Spice, Pizza Hut, Catch Fish Restaurant, Eureka Café, Eureka Veterinary Centre, Easy Smile Dental Practice and Busy Bees Day Nursery.

Less than a mile south of Eureka Business Park, situated directly off junction 9 of the M20 motorway, is Eureka Leisure Park. This provides numerous leisure amenities and facilities to the surrounding area including; a Travelodge and Premier Inn Hotel, Cineworld 12-screen Cinema, Dobbies Garden Centre, Bannatyne Health Club and Spa as well as numerous restaurants including; a Nandos, Burger King, KFC, McDonald’s, Subway, Chiquito and Frankie & Benny’s.

EUREKA BUSINESS PARK

The park had previous outline planning consent for a 62 hectare (153 acre) master planned area comprising over 300,000 sq ft of commercial space and outline consent for a total of 1.1 million sq ft. The Ashford Borough Council adopted Local Plan recognises the importance of maintaining the site as a high-order business park for the town. The site is proposed for a mix of commercial (20 hectares) and residential development (375 dwellings) through the development of an agreed masterplan in the 2030 local plan.

Northdown 1 - provides a range of small and large office suites with a number of occupiers including; Commidea, Eastern and Coastal Kent PCT, Invicta Foods, Countrywide Surveyors, Internet Business School and MLM Group.

Northdown 2 - includes the subject properties, buildings 200 and 210. To the rear is a site that has been sold to Basepoint, an established business centre operator.

Herald - 35,749 sq ft headquarter building, on three floors, entirely let to Smiths Medical International.

Local amenities include; Eureka Place, an 18-hole golf course, a range of state and private schools, restaurants, cinema, gym, and hotels.

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An emerging master planEUREKA BUSINESS PARK


BASEPOINT

BRAKES

M20

EUREKA LEISURE PARK

JUNCTION 9 (M20) TRINITY ROAD

M20

M20

SMITHSMEDICAL BRAKES GROUP

NORTHDOWN 1 PHASEEUREKA PLACEINCA HOUSE

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UNIT 200 UNIT 210

Not to scale, for indicative purposes only

ASHFORD INTERNATIONAL

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SITE 200 Eureka Business Park has a site of size 0.304 hectares (0.75 acres)

210 Eureka Business Park has a site of size 0.306 hectares (0.76 acres)

DESCRIPTION Both units were constructed in 2012 to provide high quality, two storey self-contained office accommodation. Key features include:

• VRV air conditioning

• Raised access flooring with 150mm clear void

• Suspended ceilings throughout with LG3 light fittings

• Demised WCs on each floor

• One 8-person passenger lift per building

• A total of 94 car parking spaces representing a car parking ratio of 1:276 sq ft


200 (Rift)

210 (Advanced)21

0

200

El Sub Sta

El

11

25

37

28

21

Sta

160

100

110

120

190

130Sub

UPPER

Shelter

PEM

BER

TON

TRINIT

YRO

AD

AYLE

SB

UR

YR

OA

D

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THE PROPERTY

Not to scale, for indicative purposes only

Proposed Phase II

10,000 sq ft to 27,000 sq ftAvailable to Pre-Let / Pre-Purchase BASEPOINT - Proposed scheme

200 Eureka Business Park210 Eureka Business Park

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ACCOMMODATION & TENANCY SCHEDULE The property is let to two tenants producing an income of £503,181 pa based on the ‘topped up’ income, as per the Schedule below. In addition, on land opposite the property, 25 additional car spaces* are demised to Advanced Heath and Care Ltd under the terms of their lease, at a current rent of £10,557 pa (reviewed annually in line with RPI). This income is to be received by a prospective purchaser whilst the existing lease subsists. Once the lease expires or is extinguished, this car parking reverts to the vendor.

Building Tenant Accommodation (NIA) Car Lease Term Rent per Next Rent Review Comments

... Floor Sq ft Sq m Spaces (Tenant Break) Annum Income Uplifts 200 RIFT Ltd 07/08/2012 £208,301 07/08/2022

..... 06/08/2027 Fixed to £223,542 pa

......

Subtotal 10,313 958.13 41

........ 210 Advanced Health Reception 304 28.24 23/06/2014 £294,880 23/06/2019

.... and Care Ltd 22/06/2024 Higher of £294,880 pa

............. (22/06/2019) or OMV ........

Additional Car Parking 25* £10,557

Subtotal 15,672 1,456.03 53

........... TOTAL 25,985 2,414.16 94 £503,181 £518,422

......... (£19.36 psf ) + additional

....... ....... + £10,557 car parking

........ income ......

Current rent is £193,059 pa. Rent free period from 07/08/18 until 07/02/19,

then stepped rent on 07/02/19 to £208,301 pa (rent topped up by vendor to

£208,301 pa until 07/02/19) and on 07/08/22 fixed uplift to £223,542 pa

Tenant break clause dated 06/08/2018 was not exercised. Lease inside the

1954 Act. Tenant rent deposit of £150,000

Half rent for first six years until 22/12/2020 (currently £147,440 pa), subject

to rent review on 23/06/2019 based on the higher of OMV or £294,880 pa

(rent topped up by vendor to 22/12/2020). Lease inside the 1954 Act.

Tenant break requires 6 months notice and the tenant must pay a penalty

of £294,880 (exclusive of VAT) if exercised

TENURE The property is held by way of 2 new long leasehold interests from completion to expire 22nd December 2160 (142 years unexpired) each at a fixed rent of £50 per annum, which doubles every 25 years from 2030.


Reception 304 28.24

Ground 4,988 463.42

First 5,021 466.47

Ground 7,675 713.08

First 7,693 714.71

Net income of £503,081 per annum (+ £10,557 for additional car parking).

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Indicative floor planIndicative floor plan


15.47m

45.83m

15.47m

30.40m


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ESTATE SERVICE CHARGE Each tenant pays a fair and proper proportion of the estate service charge. The estate service charge expenditure for the year 2016 - 2017 was £82,168 which the tenants contributed a combined amount of £30,820 for both properties. Further details available upon request.

TENANT COVENANT INFORMATION

Advanced Health and Care Limited have a D&B rating of 5A1. They produce computer software and technology solutions ranging from health care, payment managing, charity work, pension management and cloud solutions.

Advanced Health and 28 Feb 2017 29 Feb 2016 28 Feb 2015 Care Limited (£000s) (£000s) (£000s)

Sales Turnover 31,189 33,330 32,815

Tangible Net Worth 35,732 24,457 18,423

Net Current Assets 34,090 22,959 17,242

RIFT Limited 31 Dec 2015 30 Apr 2015 30 Apr 2014 ... GBP GBP GBP

Sales Turnover 5,590,555 7,050,367 -

Tangible Net Worth 995,831 741,711 582,437

Net Current Assets 318,497 1,470,153 2,366,009

RIFT Limited have a D&B rating of 1A2. They specialise in helping companies claim R&D tax relief credits. They are a family owned business established in Kent in 1999 and employ over 160 people. They currently process an average of 30,000 tax returns per year and have won numerous awards such as Kent Business of the Year Award 2012 and Business Growth Award for Kent Women in Business 2014.


Photos taken prior to occupancy

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OFFICE MARKET Activity in the office investment market improved notably towards the end of 2017 with early evidence suggesting total trading for offices across the UK will exceed £1.6bn. Rental growth is anticipated for prime rents in regional markets, with yields mostly remaining stable for core assets and softening slightly only on secondary property. Looking forward, it is expected factors such as location and quality will be key in determining how assets respond to changing markets ahead.

Ashford Investment Market Office market supply in south east London and Kent was slightly lower than the previous year by 2% at end Q1 2017 with a total availability of 1.4m sq ft. Demand has improved 27% over the same period with particularly strong demand for buildings exceeding 10,000 sq ft, which exhibited a 38% increase.

Prime yields hardened in town centres and remained stable in out of town parks throughout 2017 as the market exhibits steadily increasing rents and capital values on offices. This continuing increase in economic activity will no doubt be helped by the Government’s confirmation of the Lower Thames Crossing further improving connections between Kent, the south-east and London markets.

(source: 2017 Kent Property Market http://www.kentpropertymarket.com/)

Rental Market Rents at Eureka Business Park compare favourably in respect of offering value compared to other business parks in Kent which have shown an average prime business park rental increase of 14% over the last 3 years. Headline rents in 2017 are in the region of £25 per sq ft at Kings Hill and ranging from £22 - £24 per sq ft at Crossways Business Park.

Eureka Business Park has headline rents of approximately £19 psf, which provides good potential for rental growth when compared to rents achieved at comparable business parks. Headline rents in Ashford are set to be broken with the forthcoming building completion (PC due May 2018) of 66,000 sq ft ACQ One at Ashford Commercial Quarter, adjoining the train station, where a rent of £24 per sq ft is being quoted.

0 50 100

2013 2014 2015 2016 2017

150 200

£ per sq m250 300 350 400

Eureka Business Park

Chatham Maritime

Crossways

Kings Hill

Chineham Business Park, Basingstoke

Arlington Business Park, Reading

Stockley ParkHeathrow

Business park rents

Designer OutletDesigner OutletDesigner Outlet

Elwick Place

County Square Mall

Ashford College


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LETTING COMPARABLESAddress Size Tenant Rent Term Date

..... (sq ft) per sq ft

ACQ One, Commercial Quarter, 66,000 Available to let Quoting - PC due May 2018

Ashford rent £24 psf

Suite 4, 39 Kings Hill Avenue, 2,389 Shawbrook Bank Ltd £21.50 Undisclosed September 2017

West Malling

17 Kings Hill Avenue, 8,909 CLS Group £25.00 Undisclosed August 2017

West Malling

Great Hall Arcade, 5,787 Undisclosed £22.00 Undisclosed July 2017

Mount Pleasant Road,

Tunbridge Wells

River Bridge House, 7,476 Undisclosed £22.50 Undisclosed July 2017

Anchor Boulevard,

Crossways Business Park, Dartford

Wallside House, 7,544 EPG Health Media £20.00 10 Years June 2017

12 Mount Ephraim Road,

Tunbridge Wells

30 Tower View, West Malling 4,652 Africa Express Line Ltd £23.00 Undisclosed December 2016

Address Size Tenant Date Term certain Price NIY Purchaser

... (sq ft) (Years)

Vandervell House, 25,949 Multi-let to 7 tenants August 2017 2.47 to break, £7.9m 7.78% CCLA

Vanwall Business Park, Maidenhead 3.13 to expiry

3 Percy Way, St John’s Business Park, 9,248 Omega Pharma NV and May 2017 5.9 £1.6m 8.30% Private Buyer

Huntingdon Omega Pharma Ltd. (at auction)

Units 110 & 120, Trinity House, 20,737 NHS April 2017 12 £5.85m 6.16% London Borough of Bromley

Eureka Business Park, Upper Pemberton,

Ashford

Clarion House, Norreys Drive, 33,283 Multi-let to 4 tenants March 2017 5 £7.3m 6.50% Quantum Pension Scheme

Maidenhead

4 Cyrus Way, Cygnet Park, Huntingdon 11,045 Bulley Davey February 2017 5.6 £2.0m 7.00% Cambridge City Council

Kings Court, London Road, Stevenage 67,942 Multi-let to 4 tenants October 2016 4.1 to break, £8.3m 6.96% Land Charter Homes

..... 6.5 to expiry

INVESTMENT COMPARABLES




Please contact:

Richard Walden

DD: 020 3761 3649

Mob: 07967 831970

[email protected]

Darryl Stevenson

DD: 020 7297 6277

Mob: 07500 171292

[email protected]

Andrew Groves

DD: 020 7297 6274

Mob: 07771 973245

[email protected] Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

February 2018

FURTHER INFORMATION

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VAT

The property is elected for VAT.

EPC RATING

Building 200 – C53 Building 210 – C55

Further details available upon request.

PROPOSAL Offers sought in excess of £5,550,000 subject to contract and exclusive of VAT (inclusive of costs of stamp on VAT) which reflects a NIY of 8.60% assuming purchaser’s costs of 7.61%. This represents a low capital value of £213 per sq ft.



A development by

wwww.quadrantestates.com

QUADRANTESTATES

Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

bidwells.co.uk

IMPORTANT NOTICE

Bidwells LLP act for themselves and for the vendors of this property, whose

agents they are, give notice that:

Nothing contained in these particulars or their contents or actions, both

verbally or in writing, by Bidwells LLP form any offer or contract, liability or

implied obligation to any applicants, viewing parties or prospective

purchasers of the property to the fullest extent permitted by law and should

not be relied upon as statements or representative of fact. No person in the

employment of Bidwells LLP or any joint agents has authority to make or give

any representation or warranty whatever in relation to this property. Any

areas of measurements or distances are approximate. The text, photographs

and plans are for guidance only, may not be to scale and are not necessarily

comprehensive. No assumptions should be made that the property has all

necessary planning, building regulation or other consents. Bidwells LLP has

not carried out a survey, nor tested the services, appliances or facilities.

Purchasers must satisfy themselves by inspection or otherwise. All rentals

and prices are quoted exclusive of VAT unless otherwise stated. Prospective

purchasers may be asked to produce identification of the intended Purchaser

and other documentation in order to support any conditional offers

submitted to the vendors. Bidwells LLP accepts no liability of any type arising

from your delay or other lack of co-operation. We may hold your name on our

database unless you instruct us otherwise.

OS licence no. ES 100017734. © Copyright Bidwells LLP 2017. Bidwells LLP

is a limited liability partnership registered in England and Wales (registered

number OC 344553). Registered office is Bidwell House, Trumpington Road,

Cambridge CB2 9LD where a list of members is available for inspection.

Your statutory rights are not affected by this notice.

SOUTH EAST MODERN OFFICE INVESTMENT 200 & 210 EUREKA … · 2018. 3. 19. · Internet Business...

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Transcript of SOUTH EAST MODERN OFFICE INVESTMENT 200 & 210 EUREKA … · 2018. 3. 19. · Internet Business...