Norden House 2 print.indd

BASINGSTOKE
SOUTH EAST OFFICE INVESTMENT
SOUTH WEST
DESTINATIONS
FESTIVAL PLACE
INVESTMENT SUMMARY
CROWN HOUSE
Basingstoke is a major commercial town located 52
miles south west of London with excellent road and
rail communications.
IBM
CHURCHILL PLAZA
MATRIX HOUSE
Norden House is situated in a prominent position in
Basingstoke’s main office pitch.
NORDEN HOUSE
Modern, flexible and affordable space within walking
distance of the town centre and the mainline railway
station.
RENAISSANCE
Long leasehold.
CHURCHILL
WAY
BASING
VIEW
LONDON
WATERLOO
Multi-let producing a total gross rental income of
£200,150 pa (low average rent of £132.16 per sq m/
£12.28 per sq ft).
Opportunity to add another floor (subject to planning).
Offers in the region of £1,730,000 (one million,
seven hundred and thirty thousand pounds), subject
to contract and exclusive of VAT, which reflects an
attractive net initial yield of 10% and a low capital
cost of £106 per sq ft assuming purchaser’s costs of
5.75%.
M3 (JUNC 6)
RINGWAY
1
London Waterloo
1
15/4b
READING
LONDON
Heathrow Airport
M4
M25
To Bristol
12
10
Basingstoke is a major commercial town, strategically located 52 miles south west of
London, 30 miles north of Southampton and 17 miles south of Reading. Other nearby
places include Newbury, Woking, Guildford and Winchester.
1
11
12/2
4
A33
A340
10
5
M3
A339
9
A3
8
6
BASINGSTOKE
LOCATION
7
GUILDFORD
A31
A339
To Southampton
The town benefits from excellent road communications lying just north of the M3
(junction 6). The M4 (junction 11) is 15 miles to the north of Basingstoke via the A33
and the A34 dual carriageway is 14 miles to the west via the A339. The M3 provides
direct access to London and the M25 to the north east and Southampton and the South
Coast to the south west. The centre of Basingstoke is served by a ring round called
The Ringway.
Roa
d
Gatwick Airport
ay W
hill W
0
A34
P
10
y E A30
A339
Churchill
A3010
Wa
Churchill
y East
Southampton & South West
0
B340
London Waterloo
Alencon Link
0
P
rc
Chu
Basingstoke
el
Hi
ll
A34
Way
bury
Winle
Ringwa
Rom
an
Ch
ap
P
Basingstoke’s mainline railway station provides a direct and frequent service to
London Waterloo with a fastest journey time of 45 minutes. Other direct services
include Reading, Oxford, the north of England and Scotland to the north; Southampton,
Bournemouth and Portsmouth to the south, and; Salisbury and Exeter to the south
west. Basingstoke is well positioned for London’s main airports with Heathrow (37
miles north east) and Gatwick (61 miles east) both easily accessible via the M3 and
M25. The closest international airport is Southampton, some 25 miles to the south.
Way W
BASINGSTOKE
R
ing
Wort
oad
Sa
r um
ad
on Ro
Lond
Hi
ll
DEMOGRAPHICS
Hackwood
La
ne
ad
Ro
d
oa
6
Western
Way
ck
sk
in
W
rR
te
es
ch
in
Bu
w
ng
Ri
ay
h
ut
So
A3
0
To London
M3
To Southampton
Basingstoke has a population of 96,224 (Hampshire CC, 2007) within the urban area.
The town is an established office location with 23% of the population employed in the
Banking, Finance & Business Services sector. The Claimant Count Unemployment Rate
for Basingstoke (as at April 2007) stood at 1.2% in comparison with the GB average
of 2.6%.
SITUATION
Path
Norden House is situated in a prominent position on the upper tier of Basing View,
the main office pitch for Basingstoke. Neighbouring occupiers include BNP Paribus,
Clydesdale Bank, EC Harris, Marshal Ltd, Penningtons Solicitors, Sun Life Assurance
Company of Canada (UK) Ltd, The AA and Unum Ltd.
Mast
El Sub Sta
Springpark
Norden House
Sloping masonry
BASING VIEW
Subway
The property offers easy access to the ring road and the M3 via Churchill Way and is
within walking distance of the town centre and the railway station. The town centre
is home to major retailers and provides a wide range of amenities. Festival Place has
transformed the town centre and provides 165 retail units, a cinema complex, a sports
centre and Festival Square, which includes a range of restaurants, cafes and bars.
3
DESCRIPTION
The property comprises a self-contained two storey office building arranged in two wings (east and west) around a central core area. The building is of concrete frame
construction with brick elevations and a flat asphalt roof. The property benefits from a front and rear entrance (to the car park) leading to a prestigious full height reception
area with a glazed frontage and marble tiled floor.
Norden House offers maximum flexibility as the accommodation can be let as a whole, on a floor-by-floor basis, on a wing-by-wing basis or in smaller suites. At present, the
property has been sub-divided to provide a number of smaller suites ranging in size from 84.82 sq m (913 sq ft) to 256.22 sq m (2,758 sq ft).
Internally, the majority of suites have been refurbished to a modern standard and provide the following specification:
• Carpeted, solid floors
• Perimeter trunking
• Suspended ceilings with recessed lighting
• Central heating
• Kitchenette facilities on each floor
• Male and female WC facilities
• Intercom entry system
Externally, the site extends to approximately 0.3 hectares (0.74 acres) and benefits from 60 marked car parking spaces to the rear of the property. This provides an excellent
ratio of 1:25.24 sq m (1:272 sq ft).
4
TENURE
The property is held long leasehold from Basingstoke & Deane Borough Council for a term of 125 years from 11 June 1984. The rent is 17.3% of the rents received by the
lessee subject to a minimum of £14,297 pa. The current rent is £17,357.61 pa.
TENANCIES
The property is currently let to three tenants on five leases. There are four vacant suites and the vendor will provide an 18 month rent, rates and service charge guarantee on
this space. The property will produce a total gross rental income of £200,150 pa which equates to a low average rent of £132.16 per sq m (£12.28 per sq ft).
Description
Tenant
Accommodation
Lease Details
Current Income
sq m
sq ft
Start
Expiry
Review
Break
£ pa
£ psf
-
-
-
-
32,407
11.75
-
19/05/2010
26,003
12.04
Comments
Ground Floor
(West Wing)
Vacant
256.22
2,758
Ground Floor
(Part East Wing)
Procius Ltd
200.57
2,159
Ground Floor
(Part East Wing)
Vacant
84.82
913
-
-
-
-
10,728
11.75
18 month rent, rates and
service charge guarantee
Ground Floor
(Part East Wing)
Vacant
203.64
2,192
-
-
-
-
25,756
11.75
18 month rent, rates and
service charge guarantee
First Floor
(West Wing)
Co-Operative
Insurance Society Ltd
252.22
2,715
15/08/1994 14/08/2009
-
-
36,930
13.60
Not in occupation
First Floor
(Part East Wing)
Portman Travel Ltd
110.74
1,192
25/03/2007 24/03/2012
-
-
15,450
12.96
First Floor
(Part East Wing)
Portman Travel Ltd
161.74
1,741
25/03/2007 24/03/2012
-
-
20,350
11.69
First Floor
(Part East Wing)
Vacant
244.51
2,632
-
-
30,926
11.75
4 Car Parking Spaces
Portman Travel Ltd
-
-
-
-
1,600
-
1,514.46
16,302
Total
19/03/2008 18/05/2011
-
-
25/03/2007 24/03/2012
18 month rent, rates and
service charge guarantee
18 month rent, rates and
service charge guarantee
200,150
5
COVENANT INFORMATION
Portman Travel Ltd - 19% of income
Procius Ltd - 13% of income
Portman Travel provides corporate travel management services through its
nationwide network of offices and worldwide online service. Further information
can be found on www.portmantravel.co.uk.
Procius was launched in 2003 to provide reference checking services to the UK
aviation industry in response to 9/11. Procius is now the largest airside pass
referencing agency in the UK operating at most of the UK’s international and regional
airports. Clients include international airlines, low-cost carriers, catering firms and
handling agents. Further information can be found on www.procius.com.
Date
31/01/2007
31/01/2006
31/01/2005
Turnover
£410,000
£274,000
£65,000
Pre-tax Profit
£144,000
£140,000
£12,000
Total Assets Less Current Liabilities
£160,000
£114,000
£62,000
Shareholders’ Funds
£125,000
£71,000
£12,000
(Source: ICC)
Co-Operative Insurance Society Ltd - 18% of the income
CIS was established in 1899 and they are the only co-operative insurance company
in the UK. CIS have approximately 4.7 million customers and currently administer
more than £20 billion of their money. For 2007, CIS recorded an operating profit
before tax of £49 million, net income of £821 million and total assets of £26 billion.
Further information on their finances can be found on the Investor Relations page
on www.cfs.co.uk.
6
Date
31/12/2006
31/12/2005
31/12/2004
£218,459,000
£194,318,000
£181,521,000
Pre-tax Profit
£4,955,000
£4,472,000
£4,161,000
Total Assets Less Current Liabilities
£13,830,000
£11,846,000
£9,435,000
Shareholders’ Funds
£8,753,000
£9,121,000
£9,435,000
Turnover
(Source: ICC)
BASINGSTOKE OFFICE MARKET
VAT
Basingstoke is an established and popular HQ location attracting a number of
multi-national occupiers. Basingstoke had an estimated office stock of 538,820 sq
m (5.8 million sq ft) at end-2007 which is larger than the M25 West average of
445,920 sq m (4.8 million sq ft). The average level of take-up over the last 5 years
to end-2007 has been 19,146 sq m (209,000 sq ft). Take-up for 2007 in Basingstoke
was estimated to be 2,434 sq m (262,000 sq ft) which is a 46% increase on the
2006 figure and above the 5 year average.
The property is elected for VAT.
Headline rents for prime offices in Basingstoke are currently in the region of £193.75
per sq m (£18.00 per sq ft) which compares favourably to other M25 and Thames
Valley centres. Significant transactions include:
PROPOSAL
We are instructed to seek offers in the region of £1,730,000 (one million, seven
hundred and thirty thousand pounds), subject to contract and exclusive of VAT,
which reflects an attractive net initial yield of 10% and a low capital cost of
£106 per sq ft assuming purchaser’s costs of 5.75%.
• Renaissance 2200, Basing View – Marshal Ltd took a new 10 year lease (break
in year 5) in 2006 of part ground floor (418.05 sq m/4,500 sq ft) at £193.75
per sq m (£18.00 per sq ft).
• Midpoint, Alencon Link – Scott Wilson Ltd has taken a new 10 year lease
from September 2007 of the whole property (6,317 sq m/68,000 sq ft) at
£172.23 per sq m (£16.00 per sq ft). The property was constructed in 1988 but
has been comprehensively refurbished. This is the largest letting in Basingstoke
for some 3 years and has reduced availability in the town by circa 10%.
Norden House offers occupiers modern, flexible and affordable space within walking
distance of the town centre and the railway station. With substantial amounts of
secondary town centre space along Alencon Link and Churchill Way being converted
into town centre flats together with a reduction in availability due to consistent
levels of take-up and a limited development pipeline, this property is well placed to
take advantage of future rental growth in the Basingstoke office market.
Rental Value Growth Forecasts for Basingstoke Offices (% pa)
All Offices
2007
2008
2009
2010
2011
Annualised
2007-2011
Basingstoke
2.3
2.4
2.4
2.4
3.1
2.5
(Source: REFL November 2007)
7
FURTHER INFORMATION
For further information or to arrange an inspection please
contact:
Noel Lander
Tel: 020 7087 5336
[email protected]
Tom Booker
Tel: 020 7087 5337
[email protected]
On the instructions of
© 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 April 2008