MORTEC III:Layout 1

Mortec Office Park
York Road, Leeds
Multi-Let Office Investment
Investment Summary
• High quality, well-specified Business Park investment.
• Built/comprehensively refurbished in 1999/2000.
• Six modern purpose-built, self-contained office units and one refurbished
Grade II Listed building standing in 1.98 hectares (4.89 acres) of mature
landscaped grounds.
• The investment offers good income diversity and security with tenants
including Crosby Homes (Yorkshire) Limited, Technology In Motion Ltd,
Emcor Group Limited, Specialist Liability Services Limited and Trett
Contract Services Limited.
• Excellent overall car parking ratio of 1:17.32 m² (1:187 ft²).
• Long leasehold – 999 years at a peppercorn rent.
• Offers in the region of £2,500,000 (Two Million Five Hundred
Thousand Pounds), subject to contract and exclusive of VAT. This
reflects an attractive net initial yield of 13% after allowing for purchase
costs of 5.75%.
3
LEEDS BRADFORD
AIRPORT
A58
A61
45
A64
A6120
Roundhay
CHAPEL
ALLERTON
LEEDS
A6120
A65
LOCATION
A6120
HORSFORTH
HEADINGLEY
A660
A61
MORTEC OFFICE PARK
A1
A58
A647
44
CITY CENTRE
A6120
46
A64
Leeds is strategically located at the northern end of the M1 motorway, only 10 miles from the M62 transpennine
motorway, providing direct links to London and Manchester/Hull respectively. The completion of the M1/A1 link to the
south of the City, which provides a direct link between the M1/M621 and the A1(M) motorways, has further enhanced
the City’s road communications.
PUDSEY
46
A6110
GARFORTH
HUNSLET
BRADFORD
3
A63
M1
2
1
A58
4
BEESTON
A642
7
A656
M621
44
A62
27
A653
The City benefits from an excellent rail infrastructure, providing a regular intercity service with a fastest journey time to
London (Kings Cross) of 1 hour 56 minutes. Leeds also enjoys a regular service to Manchester, Liverpool, York and
Newcastle. Leeds City Station is the busiest rail station in the UK outside Central London, with an estimated 50,000
passengers using it each day.
ROTHWELL
43
MIDDLETON
Leeds is the principal financial and business service centre in the North East of England. The City has a district population
of over 727,000 persons (making it the second largest metropolitan district in England) and an estimated 2.2 million
persons living within a 30 minute drive time of the City Centre.
MORLEY
Leeds Bradford International Airport is located approximately 7 miles to the north west of the City Centre and offers
daily flights to both domestic and European destinations. The airport handles over 2.8 million passengers per year.
WHINMOOR
A6
YO
0
12
RK
A
RO
D
4
A6
SITUATION
MORTEC OFFICE
PARK
SCHOLES
SEACROFT
SWARCLIFFE
4
Mortec Office Park is prominently situated to the north east of Leeds City Centre on the A64 York Road, one of the City’s
main arterial routes. The development is 1 mile from Leeds Outer Ring Road, 4 miles from the M1/A1 link and only 5
miles from Leeds City Centre. Mortec Office Park therefore benefits not only from excellent road communications to the
local and national motorway network but is also less than a 10 minute drive from Leeds City Centre. Mortec Office Park
benefits from a perpetual right of access over the road hatched orange on the Ordnance Survey Extract.
DESCRIPTION
Mortec Office Park comprises a development of eight individual B1 office units developed between 1999 and 2000 and
set within 1.98 hectares (4.89 acres) of mature and landscaped grounds providing a total of 2,252 m² (24,245 ft²) of
accommodation.
Units 1 & 2 are occupied by Crosby Homes (Yorkshire) Limited and is a Grade II Listed property that forms part of a
property previously known as Morwick Hall. The property was substantially refurbished in 1999/2000 to a high standard
of office accommodation.
The remainder of the Park consists of five modern single/two-storey office buildings that were constructed in 2000 within
the extensive grounds of the original building, Morwick Hall.
The property benefits from 130 car parking spaces on site, representing an excellent car parking ratio of 1:17.32 m²
(1:187 ft²).
EXTERNAL SPECIFICATION
Superb landscaped setting forming part of a controlled business environment.
•
•
•
•
High quality finishes.
Impressive combination of new and Listed buildings.
Self-contained campus style office park with strong identity.
Attractive courtyard area and landscaping with pond and quest recreation areas.
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INTERNAL SPECIFICATION
Each of the buildings on the Park has the following specification:• Spacious contemporary offices with excellent natural lighting and ventilation.
• Full raised access floors.
• Category 2 lighting.
• Impressive high quality entrance areas.
• Aluminium framed double-glazed windows.
• Gas fired central heating.
• Male, Female and Disabled WC facilities.
TENURE
The property is held long leasehold by way of a 999 year lease with effect from 1 March 2000 at a peppercorn rent.
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TENANCY SCHEDULE
The property is let in accordance with the Schedule of Accommodation & Tenancies below.
Area ft2
NIA
Lease Start
Rent
Review
Lease Expiry
(Break)
Passing Rent
PA (£/ft2)
6,844
29/09/05
28/09/10
2,188
23/02/07
-
4
Crosby Homes
(Yorkshire) Ltd
Technology In
Motion Limited
Educational Ideas Ltd
861
01/11/07
-
5A
Emcor Group (UK) Plc
1,220
05/07/06
-
5B
Trett Contract Services
Limited
Selfserve (UK) Limited
2,161
01/01/03
01/01/08
28/09/15
(29/09/10)
22/02/12
(23/02/10)
31/10/12
(01/11/10)
04/07/11
(05/07/09)
31/12/12
£104,312
(£15.25)
£32,600
(£14.89)
£14,000
(£16.25)
£18,755
(£15.37)
£38,900
(£18.00)
£47,120
(£16.00)
Unit
Tenant
1&2
3
6A
1st Floor
6B
Gnd Floor
6C
Gnd Floor
7
8
Total
Vacant - 2 year Rent, Rates
and Service Charge Guarantee
Vacant - 2 year Rent, Rates
and Service Charge Guarantee
Vacant - 2 year Rent, Rates
and Service Charge Guarantee
Specialist Liability
Services Limited
2,945
1,071
1,622
3,349
1,984
24,245
2 year Rent, Rates and
Service Charge Guarantee
2 year Rent, Rates and
Service Charge Guarantee
2 year Rent, Rates and
Service Charge Guarantee
25/11/05
-
-
-
-
-
-
-
07/12/10
£17,404
(£16.25)
£25,952
(£16.00)
£53,585
(£16.00)
Comments
Selserve were granted a 1 year lease which has now expired
and this tenant is holding over. (Negotiations in hand to
downsize into Unit 6C.)
2 year Rent, Rates and Service Charge Guarantee.
2 year Rent, Rates and Service Charge Guarantee.
2 year Rent, Rates and Service Charge Guarantee.
Unit has potential to be sub divided and let on a floor by
floor basis.
£29,000
(£14.61)
£381,628
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OUT-OF-TOWN OFFICE MARKET
The Leeds out of town office market has positively developed over the last 10-15 years as business have realised the
benefits associated with locating away from the busy centre, as good commuting infrastructure along with the availability
of car parking is a major benefit. Occupiers can acquire office space at a discount to the city centre and still offer leisure
amenities for their staff.
Purpose built out-of-town office developments have included White Rose Office Park (Arlington Office Park) to the
south of the City Centre, Thorpe Park to the east, Leeds Valley Park to the south and Capitol Park and Airport West to the
north of Leeds. These purpose built developments have attracted national covenants and commanded rents of £20.00 £21.00 ft².
The subject property has an abundance of car parking and has exceptional travel links due to the A64 giving direct access
to Leeds city centre, and the A1 dual carriageway and then further York city centre. The setting can be argued is a strong
marketing point as the suites have excellent views over the Yorkshire Countryside.
ASSET MANAGEMENT OPPORTUNITIES
• Potential to increase the rental profile of the asset by developing a serviced office business.
• Underlying potential to develop the site to a higher density subject to the relevant consents.
• Medium / long term residential redevelopment potential subject to the necessary planning consents.
• Improvement of security of current income.
VAT
The property is registered for VAT purposes and VAT will be payable on the purchase price.
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PRICE
We are instructed to seek offers in the region of £2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, for
our client’s long leasehold interest. A purchase at this level reflects a net initial yield of 13%, after deduction of usual purchaser’s costs of 5.75%. (The yield assumes
the property is fully income producing with the vendor providing a 2 year rent, rates and service charge guarantee on the vacant accommodation).
Capital Value of only £103 ft2
FURTHER INFORMATION
Should you require any further information, or wish to arrange an inspection, please contact:
Ben Hall
Tel: +44 (0) 113 235 5248
Fax: +44 (0) 113 242 1404
Email: [email protected]
© Crown Copyright 2007. All rights reserved. Promap licence number 100020449. King Sturge 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.
Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective
purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge LLP nor any of their employees or representatives has any authority to make or give any
representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall
not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements.
Subject to Contract • Exclusive of VAT • January 2009