ASHCOMBE HOUSE 5 THE CRESCENT LEATHERHEAD KT22 8LQ

PRIME SOUTH EAST OFFICE INVESTMENT OPPORTUNITY
ASHCOMBE HOUSE
5 THE CRESCENT
LEATHERHEAD KT22 8LQ
INVESTMENT SUMMARY
nExcellent town centre location in prime M25 town
nPrime offices fully let to four excellent tenants
nHigh quality refurbished air conditioned space
nActive letting market
nShortage of quality town centre space
nGood size floorplates capable of sub-division
nTotal office area 17,343 sq ft
nExcellent car parking ratio of 1:361 sq ft
nWAULT of 8.79 years to lease expiries and
3.79 years to breaks
n 7.75% Net Initial Yield
nOffers in excess of £4,150,000 (£253 per sq ft)
LOCATION
Leatherhead is a prime M25 office location, adjacent to J9 of the M25
motorway, approximately 24 miles from Central London. It is also a
popular commuter town, with good links not only to London but also to
other M25 centres such as Woking (16 miles) and Guildford (13 miles).
M25
M4
SLOUGH
M4
CITY AIRPORT
CENTRAL
LONDON
A20
HEATHROW AIRPORT
RICHMOND
M25
STAINES
M3
Rail links to and from London are good, with direct trains to London
Waterloo and London Victoria, both within 45 minutes, and to Guildford
in 26 minutes.
M25
A3
A23
WIMBLEDON
M3
A232
BECKENHAM
A20
A3
M20
CROYDON
A24
CHERTSEY
M25
M25
CANARY
WHARF
A21
A232
A3
EPSOM
M25
A23
WOKING
Major global occupiers with Leatherhead HQs include Unilever,
KBR and Exxon Mobil.
A22
LEATHERHEAD
A3
M25
M23
M26
GUILDFORD
A24
SITUATION
REDHILL
REIGATE
M23
The property is located in Leatherhead’s town centre, approximately
0.5 miles from the train station and less than 5 minutes’ walk from
the shopping facilities of the High Street, Church Street and the Swan
Shopping Centre, with a Nuffield Health Club adjacent.
A24
A22
GATWICK AIRPORT
CRAWLEY
The property sits in an elevated town centre position fronting The
Crescent (B2122) which feeds directly into Epsom Road, providing quick
and direct access to the Leatherhead by-pass (A243), and Junction 9 of
the M25, approximately 1 mile away.
Recreation
Ground
HILL
B2122
LERET WAY
M
PSO
E
High St
E
TH
B12
E
CR
2
T
STREE
RCH
CHU
Leatherhead
Bridge
AD
RO
S EN
T
BULL
ON ROA
KINGST
D
Leatherhead
Rail Station
STAT
ION A
PPRO
ACH
A245
B2033
HIGH
LAND
S ROA
D
B 2 45
0
Mole Business Park
Leatherhead Station
The Swan Shopping Centre
Hig
h St
ree
t
Ashcombe House
Hig
hS
tre
et
DESCRIPTION
Stairs
Ashcombe House comprises a modern detached office building of
concrete frame construction with predominantly brick elevations, under
a tiled pitched roof. The building provides flexible office space across
ground, first and second floors. Constructed in 1984 and formerly the HQ
of the Merchant Navy Officer’s Pension Fund, Ashcombe House comprises
a total of 17,343 sq ft (1,611.2 sq m). The ground floor space has access
both from the ground floor common areas, but also directly from Elms
Road, providing excellent flexibility. Flexibility is increased by the good
sized floorplates which can be easily sub-divided.
First Floor Plan
The property was refurbished by Merchant Navy Officer’s Pension Fund in
2007. In 2013 further minor works have been undertaken to the common
areas and to the first floor. These works include extended toilet and
shower facilities on the first floor, lift refurbishment and the provision of
cycle parking within an improved external landscaping area to the front of
the property.
WCs and Showers
Stairs
There is excellent car parking provision, with 48 surface spaces providing
an outstanding in-town ratio of 1:361 sq ft.
Swa
1 to 36
PH
57
Alley
45 4
30 to 32
28
26
26A
28
24
32
12
6
to 1
1 to 4
22
12
2
lley
dA
15
7
21
to
24
17
to
22
6
19
AD
RO
26
lley
's A
ea
sH
5
M
EL
11
28
10
ate
g
Kin
TENURE
23
Surre
y
Court
Def
Ne
Posts
46.5m
ET
H STRE
34
HIG
35
46
Bdy
Ward
44.5m
33
25 to 29
30 to
7
5
n Upgraded toilet and shower facilities
23
34
21
m
36
n Refurbished reception
48.4
46a
nLift
7
37 39
42
t
Brickba
n Air Conditioning
63a
63
61
48
Swan
Mews
50
ULC
n Suspended ceiling
LB
b
63
n Double glazed windows
67
52
The building specification includes:
4
Two
6
9 to
17
FB
hc
As
se
ou
eH
b
om
2
8
10
12
r
Ca
e
or
nm
Ra
rk
Pa
1
E
WAVERLEY PLAC
T
HE
CR
ES
NT
CE
12
Thorndike Theatre
e
us
Ho
20
5
Bank
Ways
Sta
ub
7
S
El
5
The property is held freehold.
19
30
32
36
38
2
1
30m
1
20m
27
10m
1
2
25
0m
E
AC
PL
6
34
23
3
EN
OW
4
21
Bank
y
le
l
es
ia
W
or
m
ch
e
M hur
C
ACCOMMODATION & TENANCIES
Current rent
per annum
Current rent
per sq ft
Lease Start
Lease Expiry
Review Date
Break Date
1,225
£25,725
£21.00
12/06/2012
23/10/2020
25/10/2018
25/10/2015
2,496
£52,650
£21.09
24/10/2010
24/10/2020
25/10/2018
25/10/2015
113.8
1,591
£28,620
£17.99
03/09/2012
02/09/2022
03/09/2017
20/09/2017
First floor
587.2
6,321
£118,500
£18.75
27/01/2014
26/01/2024
27/01/2019
27/01/2019
Second floor
530.5
5,710
£114,920
£20.13
24/10/2010
01/03/2023
24/10/2015
01/03/2018
1,611.2
17,343
£340,415
Tenant
Floor/unit
Net internal area
Sq m
Sq ft
EVS Broadcast UK Ltd
Ground floor (Part)
147.8
EVS Broadcast UK Ltd
Ground floor (Part)
231.9
Taylor Maxwell
Ground floor (Part)
Mars Capital
Menzies LLP
Total
The property is fully let on leases averaging 8.79 years to expiry and 3.79 years to break options. Mars Capital is currently fitting out its space and will be in occupation by April 2014.
TENANT INFORMATION
Ashcombe House is occupied by four established tenants.
Tenant
EVS Broadcast UK Ltd
EVS Broadcast Equipment SA
(Guarantor)
Taylor Maxwell
Turnover from
latest accounts
Profit
Net worth
£1,164,000
£55,393
£242,325
£116,257,671
Not disclosed
£43,248,012
4A1
£44,910,458
£252,289
£4,915,305
2A1
D&B rating
Percentage of
current income
Comments
23%
EVS develop and supply multimedia technology and distribution
platforms, with a market-leading product being the technology
for sports action replays. Ashcombe House provides EVS’s UK
headquarters.
EVS Broadcast Equipment SA provide guarantee.
8%
Specialising in the provision of facades and flooring to the
construction industry, Taylor Maxwell now trades from 18
locations across the UK.
B1
Mars Capital
£1,278,247
£22,066
-£528,665
N4
35%
Mars Capital is a Financial Conduct Authority regulated
mortgage advisor, founded in 2008, who acquire and administer
mortgages, and purchase loan portfolios from high street banks
on behalf of investors. They also trade as Magellan Homeloans,
offering mortgage products to customers who have suffered
one-off events leading to a poor credit rating. Mars Capital
Holdings is owned by its management and funds managed by
Oaktree Capital Management Management LP
Menzies LLP
£28,435,635
£661,017
£107,144
C2
34%
Menzies LLP is a large South East accountancy practice, with
offices in London, Woking, Leatherhead, Farnborough, Whiteley
and Egham.
LEATHERHEAD OFFICE MARKET
The Leatherhead office market is divided between the town centre, and
out of town business parks. Town centre buildings tend to be smaller
floorplate buildings, and benefit from town centre amenities and
good transport connections, those with car parking spaces attracting a
premium. The out of town business parks tend to be larger, modern office
buildings, typically used as HQ buildings for companies such as Exxon
Mobil and Unilever.
Restrictions on green-belt development have led to low levels of new office
space being developed, with no new office developments completing in
2013, with just 4,000 sq ft of new office space being developed on average
between 2009 - 2013. There are currently no office developments under
construction in Leatherhead town centre, which will put further upward
pressure on rents as supply diminishes.
Prime headline rents are currently £23 per sq ft, down from the 2007 peak
of £26 per sq ft. Limited supply of good quality accommodation in the
town centre is expected to result in growth in headline rents.
Recent lettings in the property, to EVS and Taylor Maxwell in 2012 and to Mars
Capital in 2014 have been at headline rents of £17.99 to £21.00 per sq ft.
RECENT SOUTH EAST INVESTMENT SALES
Sale Price
Area (sq ft)
Net Initial
Yield
Multi Let
£16,900,000
39,609
6.25%
Beaufort House, Uxbridge
Multi Let
£14,850,000
43,438
6.50%
Dec-13
Bridge House, Leatherhead
Multi Let
£1,900,000
9,442
8.16%
1.9 years
£213
Dec-13
Crest House, Chertsey
Crest Nicholson
£8,370,000
22,970
6.20%
4.7 years
£386
Nov-13
One Gloucester Place,
Brighton
Multi Let
£11,025,000
37,721
6.66%
3.8 years
£309
Sep-13
Felstead House, Windsor
Intersystems Corporation
£4,600,000
13,466
7.30%
4.1 years
£361
Aug-13
Sun Chemicals Ltd
Gallions & Furzeney, Wexham
Otsuka Pharmaceutical
Springs, Slough
Europe Ltd
£9,430,000
36,727
8.05%
5.6 years
£272
Apr-13
Ranger House, Guildford
Multi Let
£13,700,000
42,098
6.75%
5 years
£344
First Secretary of State
c.£7,615,000
20,765
c.7.95%
4.25 years
c.£388
c.£8,600,000
59,260
c.7.7%
4.6 years
c.£154
Date
Address
Tenant
Jan-14
Braywick Gate, Maidenhead
Jan-14
Under Offer Heliting House, Staines
Under Offer The Quadrangle, Cheltenham Royal Bank of Scotland
Unexpired Term
/ WAULT
1.71 years
4.48 years to expiry
2.62 years to break
Capital
Value/sq ft
£451
£362
EPC
The property has an Energy Performance Asset rating of 90 (Grade D).
INVESTMENT CONSIDERATIONS
Residual value strongly underpinned by potential alternative use.
n Opportunity to regear leases with existing tenants
n Opportunity to increase income through rent reviews
n No Capex requirement
n Residual value strongly underpinned by alternative use value
PROPOSAL
We are instructed to seek offers in excess of £4,150,000 (Four Million
One Hundred and Fifty Thousand Pounds), subject to contract and
exclusive of VAT
A purchase at this level reflects a Net Initial Yield of 7.75%, assuming
purchaser’s costs of 5.80%.
VAT
DATA ROOM
The property is elected for VAT. It is anticipated
the transaction will be structured as a TOGC.
Further information is available
in our online data room at:
www.ashcombe-house.com
CONTACT
For any further information or should you
wish to arrange an inspection, please contact:
BNP Paribas Real Estate
Richard Talbot-Williams
Hugh Yates
Tel: +44 (0)20 7338 4244
[email protected]
Tel: +44 (0)20 7338 4336
[email protected]
5 Aldermanbury Square
London EC2V 7BP
www.realestate.bnpparibas.co.uk
Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not
constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must
satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management
UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT.
The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Feb 2014
For further information in relation to other investment sales from BNP Paribas Real Estate, please log on to www.realestate.bnpparibas.co.uk© Produced by Barbican Studio: +44(0) 207 634 9574