GUILDFORD I TOWN CENTRE OFFICE INVESTMENT

Leys House
GUILDFORD I TOWN CENTRE OFFICE INVESTMENT
Leys House
86-88 Woodbridge Road I Guildford I Surrey I GU1 4QD
Investment Summary
• Guildford is an affluent town in Surrey situated adjacent
to the A3, 31 miles south west of Central London and 8
miles east of the M25.
• The town has excellent transport communications, retail
amenities and is one of the South East’s best performing
offices centres outside Central London.
•
Guildford railway station provides excellent access to
Central London, with direct services to London Waterloo
(8 trains per hour) and a journey time of approximately 35
minutes.
• Guildford is a principal office centre in the South East
with a low grade A vacancy rate of only 3.1%.
• Leys House is the main JobCentre Plus for the Surrey
area.
• Leys House is arranged over ground and three upper
floors providing flexible floor plates extending to 1,762
sq m (18,971 sq ft) with 12 car parking spaces. •
The property is held long leasehold from the Borough of
Guildford for 150 years from 10th January 1984 at a
current rent of £22,500 per annum. The rent is reviewed
to 5% of open market value with the next review being on
25th March 2016. •
The office building is let on a FRI basis to Trillium (Prime)
Property GP Ltd on a 10 year lease expiring 21 March
2021 with a tenant’s break option on 31 March 2018 at a
rent of £408,000 per annum (£21.51 per sq ft overall).
The net current rent is £385,500 per annum.
• Excellent asset management opportunities. • Offers sought in excess of £4,050,000 (Four Million and
Fifty Thousand Pounds), subject to contract.
•
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A purchase at this level reflects an attractive net initial
yield of 9.00% on the office assuming purchaser’s costs
of 5.80%. This gives a low town centre capital value of
only £213 per sq ft. 2
4
14
to A3
1
4
Guildford
High Street
3
4
2
4
13
1. Subject Property
12
2. Electronic Arts
3. Sanofi - Aventis
4. Friary Shopping Centre
5. Stevens & Bolton LLP
11
6
10
5
Standard Life
6. Health & Social Care Partnership
7. Scottish Equitable Plc
8.MWB
9
9. Guildford Train Station
7
10. Investec
11.Smith & Williamson
Clydesdale Bank
Penningtons LLP
12.Odeon Cinema
8
3
13.Guildford Law Courts
14.TWH Solicitors LLP
Tuffin Ferraby Taylor
Wood Mackenzie Ltd
4
To Portsmouth
A4
A316
A30
1
A320
A3050
Walton-onThames
Weybridge
3
A319
Camberley
A3
A245
To Southampton
A3
A331
A287
A322
A247
A323
To Winchester, M3 (J9)
and Southampton
ord
P
Guildford
Station
A24
am
r nh
d
Roa
A31
York Road A246
Nor
ale
t
Lan
e
reet
h St
Hig
The
Friary Shopping Centre
M
ill
b
81
A2
Fa
Dorking
Godalming
London Road
Station
Rd
p
Lea
k
A25
Artillery
o
ro
A248
Farnham
Gu
ildf
A246
A31
To Winchester
and M3 (J9)
A31
d
Roa
drid
Ma
A25
Guildford
Aldershot
Leatherhead
A320
A325
d
Rd
Church
9
d
oa
kR
ar
A324
ad
treet
Farnborough
Woking
Frimley
eld Road
Leys House
A244
M25
Markenfi
e Ro
Dapdun
A281
To Portsmouth
A29
A283
To Brighton
and the south coast
A24
Quarry Street
A286
A3
et
tre
hS
Gui
Guildford
uildfo d
A3
A287
Guildford has excellent road communications being situated adjacent to the A3 dual carriageway and 8 miles south east of
Junction 10 of the M25 motorway. Junction 3 of the M3 motorway lies 10 miles to the north west.
yS
rtse
Che
4
10
Stoke Park
Woodbridge
Rd
George
Leas R
Oxshott
A322
A30
Guildford is located in the county of Surrey approximately 30 miles to the south west of Central London, 5 miles south west of Woking and 8 miles east of Farnborough.
n Road
d A320
A317
e Close
t Tre
M3
A3095
lnu
Wa
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Location
Road
Stoke Roa
M3
A30
A322
A308
idge Road A322
2/12
Stocto
dbr
Woo
Bracknell
M25
A329
Parkway A
25
h’s
ad
A30
Jo
se
p
o
on R
A330
ead A25
Ladym
n Road A
25
rt
Kernal Cou
A332
o
let
id
d
Hay
Old Windsor
M
Hounslow
To M25 (J10)
and London
A3
10
0
Brentford
er s
hot
Roa
d
oa
d
M4
Holyport
M4
A3
Ald
M4
Lon
don
R
Southall
wS
tre
et
A308
A312
Onslo
M4
ad
0
A310
M25
A32
2
Commercial R o a d
Hayes
Slough
Ro
A4
Portsm
ou
th
Maidenhead
Epso
6
m Road A24
Guildford also benefits from excellent rail links. The regular mainline railway service from Guildford Station to London Waterloo
provides a fastest journey time of 35 minutes with trains every 7 - 10 minutes. There is also a regular east-west service linking
Guildford with Gatwick Airport and Reading. Guildford is also served by the London Road Station which provides a stopping service
to London Waterloo via Cobham and Epsom.
Heathrow and Gatwick International Airports are located 22 miles to the north and 35 miles to the east respectively.
Communications
Road
Central London Heathrow Airport
Gatwick Airport Woking Bracknell Reigate A3 M25 (Junction 10) M3 (Junction 3) 30 miles
22 miles
35 miles
7 miles
16 miles
18 miles
1 mile
8 miles
10 miles
Rail
London Waterloo Gatwick Airport Reading 35 mins
35 mins
30 mins
r
Situation
The property is located in a prominent position on Woodbridge Road, the major arterial route running through Guildford town
centre. There is vehicular access to the car park at the rear of the property via College Road.
The main shopping centre (The Friary Centre), restaurants, town centre car parks, mainline railway station and facilities are
all within a short walking distance. Guildford County Court is located opposite the property together with the Bedford Road
multi-storey car park (1,033 spaces).
The area surrounding Guildford railway station is currently being appraised by Solum as a potential regeneration scheme. The
plans comprise a £140 million redevelopment of the site providing improvements to the station, new homes and a broadening of
the hotel and retail offering in the town. Further information can be found at www.solumregeneration.co.uk. Regeneration of this
scale will only strengthen the office market further. Major occupiers currently include Standard Life Healthcare, Allianz Cornhill, Syngenta, Sanofi-Aventis, UOP, Clyde & Co, BDO Stoy
Hayward, Coutts, Philips, Electronic Arts, Tuffin Ferraby Taylor and Avaya.
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Description
Ley House comprises a 1985 office building arranged over ground and three upper floors. The building is of concrete frame
construction under a mainly pitched roof and a part mansard roof at third floor level.
The property offers the flexibility to be let as a whole, floor by floor or in two separate wings such that it could service a wide range
of occupier requirements. The internal specification includes:
•
•
•
•
•
•
•
Two separate entrances to the building
Suspended ceiling with recessed Category II lighting
Air-conditioning
Aluminium framed double-glazed windows
1 x 13 person (1,000 kg) passenger lift
Male and female WC’s on each floor (disabled WC at ground floor)
12 car parking spaces
The property is occupied as a JobCentre. The ground and first floors are used as walk-in areas for the public whilst the second and
third floors are used for offices and training facilities.
Accommodation
The property provides the following floor areas:
Ground Floor
Floor
Description
Sq m
Sq ft
Basement
Stores
38.55
415
Ground
Reception
41.81
450
Ground
Offices
431.71
4,647
First
Offices
430.22
4,631
Second
Offices
430.22
4,631
Third
Offices
389.90
4,197
1,762.4
18,971
Total
Areas agreed between parties at rent review.
Site Area
This property has a total site area of 0.09 ha (0.23 acres).
Tenure
The property is held long leasehold from the Borough of Guildford for 150 years from 10th January 1984 (approximately 121 years
unexpired) at a current rent of £22,500 per annum. The rent is reviewed to 5% of open market value with the next review being on
25th March 2016. 7
Second Floor
8
Tenancy
The property is let in its entirety to Trillium (Prime) Property GP Ltd for a term of 10 years commencing 22 March 2011 and
expiring 21 March 2021 with a tenant’s break option on 31 March 2018 (5.6 years unexpired). The passing rent is £408,000 per
annum which equates to £234.54 per sq m (£21.51 per sq ft) overall. The net current rent is £385,500 per annum.
The previous lease was to the Secretary of State for Communities and Local Government until 21 March 2011.
Covenant Status
Trillium (Prime) Property GP Ltd (Company Number: 03424587)
Trillium (Prime) Property GP Ltd is a real estate management company, with over 8,000 properties nationwide with a large
representation of tenants within local authorities and central government departments. Further information can be at www.trillium.co.uk.
31 March 2011
31 March 2010
31 March 2009
Sales Turnover
£583,857,000
£595,757,000
£571,172,000
Pre-Tax Profit
£23,454,000
£2,272,000
£114,629,000
Tangible Net Worth
£710,236,000
£605,616,000
£255,165,000
Net Current Assets (Liabilities)
£204,228,000
£111,858,000
(£38,433,000)
Source: D&B
Trillium (Prime) Property GP Ltd have a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure.
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Investment Market
The South East office investment market has seen significant recovery over the last 18 months. Well positioned offices with active management opportunities within strong South East town centre locations, such as Leys House,
have continued to attract strong investor demand.
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Term
Certain
Price
NIY
5.70
£14,350,000
7.20%
£284
08/2012
c.9.00
£5,160,000
7.20%
£292
06/2012
Multi-let
6.10
£11,530,000
6.91%
£305
05/2012
Milton House, Leatherhead
Logica UK Ltd
5.50
£8,500,000
9.65%
£247
04/2012
Hays House, Guildford
Multi-let
7.13
£4,500,000
7.20%
£252
02/2012
York House, Maidenhead
Multi-let
3.10
£2,440,000
8.50%
£230
02/2012
Broadway House, Hammersmith
Multi-let
4.00
£14,110,000
5.72%
£397
02/2012
65 Woodridge Road, Guildford
Multi-let
6.51
£12,057,000
6.27%
£395
12/2011
Anixter House, Uxbridge
Anixter Ltd
1.30
£5,300,000
10.50%
£219
12/2011
Citygate House, Winchester
The Secretary of State
for the Environment
5.50
£4,380,000
8.70%
£203
08/2011
40 Clarendon Road, Watford
Total (UK) Ltd
2.50
£9,952,000
9.50%
£201
08/2011
Address
Tenant
Lucidus, Watford
Multi-let
Forum House, Staines
The Secretary of State
1 Forbury Square, Reading
Capital Value
Date
(per Sq ft)
Asset Management Opportunities
The property offers a number of asset management opportunities, including:
•
•
•
•
Re-gear the long leasehold interest with the Council.
Re-gear the existing lease structure as lease expiry approaches.
Refurbish and re-let to take advantage of the improving occupational market and achieve a higher rental tone if the tenant
does not remain in occupation post lease expiry.
Potential future redevelopment of the site, as an office or an alternative use, subject to planning.
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VAT
The property is not elected for VAT.
Proposal
We are instructed to seek offers in excess of £4,050,000
(Four Million and Fifty Thousand Pounds), subject to
contract .
A purchase at this level reflects an attractive net initial yield
of 9.00% assuming purchaser’s costs of 5.80%. This gives a
low town centre capital value of £213 per sq ft. Contacts
For further information or to arrange an inspection please
contact:
Angus Minford
+44 (0)20 7087 5350
+44 (0)7967 506 535
[email protected]
Simon Verrall
+44 (0)20 7087 5393
+44 (0)7815 940 656
[email protected]
Anthony Sidoli
+44 (0)20 7087 5357
+44 (0)7854 016 058
[email protected]
020 7493 4933
© Crown Copyright 2012. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle
licence number 100017659. This plan is published for the convenience of identification only and although
believed to be correct is not guaranteed and it does not form any part of any contract.
Misrepresentations Act 1967 & Declaration
Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice
that: a) the particulars are set out as general outline only for the guidance of intending purchasers and
do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references
to condition and necessary permissions for use and occupation and other details are given in good faith
and are believed to be correct, but any intending purchaser should not rely on them as statements or
representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of
each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any
representation or warranty whatever in relation to this property.
September 2012 I Subject to Contract I Exclusive of VAT
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