Leeds (1)

Leeds - Acorn Business Centre
Acorn Business Centre, Killingbeck Drive,
pure investment insight
Leeds, West Yorkshire, LS14 6UF
High Yielding Business Park Investment
On the instructions of
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Leeds - Acorn Business Centre
INVesTMeNT sUMMARY
17 detached office buildings
on the established Acorn
Business Centre, 2.5 miles east
of the City Centre.
ASDA
B&Q
Fully let to 11 tenants.
Provides a total of 3,813 sq m
(41,046 sq ft) & 114 car parking spaces
COMET
CARP E T R I G H T
MCDONALDS
ACORN BUSINESS CENTRE
ASDA PFS
Tenants include Leeds City Council,
Reg Vardy Ltd and Sanctuary
Housing Association.
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4
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1J
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Total Income of £567,008 p.a.
- assuming letting of unit 10
K
R
YO
Price £5,360,000
IT
Net initial yield 10%
Capital Value £130 p.s.f.
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A6
Leeds - Acorn Business Centre
LOCATION
Leeds lies approximately 198 miles north of London
and 44 miles north-east of Manchester. The City is
strategically located close to the intersection of the M1
and the M62 Motorways and in turn, the wider National
Motorway Network. The City has a district population
in excess of 715,000, and a catchment population in
excess of 6 million, within a 60 minute drive.
Leeds City station, the busiest railway station outside
central London, provides direct rail access to London
Kings Cross, with a fast journey time of 2 hours and
6 minutes. Leeds Bradford International Airport
lies approximately 9 miles to the north-west of the
City centre and services approximately 2.5 million
passengers annually.
Leeds is the UK’s largest financial centre outside of
London and is regarded as one of the UK’s premier
business cities. It is the region’s largest employer and
it is expected to provide 24% of the region’s additional
jobs over the next decade. Leeds is the second largest
employment centre outside of London and is home
to over 30 national banks. The financial services and
business sector employs 120,000 people, accounting for
approximately 1 in 4 jobs.
Major employers within Leeds include Leeds
Metropolitan University (3000), Unison (2500), Arla
Foods Plc (2000) and GE Capital Global (1800).
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Leeds - Acorn Business Centre
DES C R I P T I O N
Acorn Business Centre was constructed in the
late 1980s and comprises a campus-style office
development totalling 3,813 sq m (41,046 sq ft) in 16
self-contained detached two-storey office buildings.
In addition, there is a separate office building (Kernel
House) located on the north side of Killingbeck Drive.
Six of the office buildings on Acorn Business Centre
have been “sold off” on 999-year leases.
Each building is of similar age and construction,
with brick elevations under pitched, slate tile roofs.
Internally, the specification includes concrete floors
and staircases throughout, suspended ceilings
with Category II lighting, gas fired heating to wallmounted hot water radiators, with a number of the
units incorporating tenant installed comfort cooling
cassettes. Kernel House has the additional benefit of an
eight person AVIS passenger lift.
Externally, the properties are situated in a spacious,
landscaped environment where each unit benefits from
its own dedicated car parking spaces, with vehicle
access being directly off Killingbeck Drive. There is
ample parking provision for each property.
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Leeds - Acorn Business Centre
sITUATION
Acorn Business Centre is situated to the north of
the A64 York Road, some 2.5 miles to the east of
Leeds City Centre. York Road is a busy arterial route
which provides direct access into Leeds City Centre
to the west, and to Junction 46 of the M1 Motorway,
approximately 2 miles to the south-east via the
A63/A6120.
The immediate vicinity is characterised by a mixture
of retail, commercial and residential accommodation
with an Asda Supermarket and petrol filling station, a
McDonald’s “drive thru”, and three retail warehouse
units occupied by B&Q, Carpetright and Comet on
Killingbeck Drive. In addition, the Magistrates Court
have taken occupation of a building immediately
adjacent to the Acorn Business Centre and another
small B1 office scheme has recently completed
(Killingbeck Court) to the East.
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Leeds - Acorn Business Centre
TENANCY
As you will note from the attached schedule of
accommodation and tenancy, the property is let to 11
tenants and currently produces £567,008 per annum
(average rent £13.81 overall), assuming letting of unit
10. All the leases are effectively Full Repairing and
Insuring by way of a Service Charge.
TENURE
Please refer to the plan opposite.
- The area hatched in green is held long leasehold
for a term of 125 years from 18th July 1989, at
a peppercorn.
- The area outlined in red is held freehold.
- The areas hatched in red are car parking spaces
held long leasehold for a term of 999 years.
- The area outlined in blue has been sold off on
long leases.
ACCOMMODATION
We have been advised that the property provides a Net
Internal Area of approximately 3,813 sq m (41,046 sq ft),
as set out in the tenancy schedule.
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Leeds - Acorn Business Centre
Acorn B u s in ess Park , Killin gb ec k
Unit
Tenant Accommodation
sq.m
sq.ft
Term
Review Lease Start Rent
(Break Option)
Lease Expiry
Rent Passing
Rent
£ (psf)
Parking
Comments 04-Nov-2009
Unit 1 Leeds City Council
243.59
2,622
04-Nov-2004
25-Aug-2014
£38,500
£14.68
12 Car Spaces
(04-Nov-2012)
Unit 2
Arundel Williams & Surplice Ltd
149.48
1,609
29-Sep-2009
28-Sep-2014
28-Sep-2019
£17,600
£10.94
6 Car Spaces
Unit 3 †
Reg Vardy (TMG) Ltd
308.53
3,321
26-Jun-1988
24-Jun-2013
23-Jun-2013
£48,150
£14.50
12 Car Spaces
Unit 4
The Work Foundation
383.88
4,132
24-Jun-1988
24-Dec-2009
28-Sep-2014
£60,015
£14.52
15 Car Spaces
Unit 7
Mayer Brown Ltd
143.26
1,542
01-Aug-2003
01-Aug-2013
31-Jul-2013
£24,000
£15.56
-
Unit 10
U/O Daniels Chilled Foods
232.82
2,506
-
05-Oct-2013
04-Oct-2023
£20,093
£8.02
-
Unit 12
Specialist Computer Holdings Plc
317.08
3,413
25-Mar-1998
25-Mar-2009
24-Mar-2014
£50,000
£14.65
12 Car Spaces
Kernel
House†
Steria
1231.99
13,261
18-Jul-1989
18-Jul-2009
17-Jul-2014
£13.97
45 Car Spaces
Unit 13 †
Right Management Ltd
229.28
2,468
01-Mar-1993
£185,250
About to complete 15 months
rent free.
Rent was based on £12.50 psf with
17 months rent free.
01-Mar-2013
28-Feb-2018
£34,000
£13.78
-
(01-Mar-2013)
01-Mar-2013
Parking Right Management Ltd
23.23
250
01-Mar-1993
£1,000
£4.00
-
28-Feb-2018
(01-Mar-2013)
Unit 15
Sanctuary Housing Association
405.15
4,361
19-Jul-1991
18-Jul-2011
18-Jul-2011
£65,150
£14.94
6 Car Spaces
Unit 16†
Crown Financial Management Ltd
145.02
1,561
19-Mar-1989
25-Mar-2009
24-Mar-2014
£23,250
£14.89
6 Car Spaces
Total
3,813
41,046
£567,008
Please note that units 5,6,8,9,11 and 14 have been sold off on long leases.
† Not in occupation
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Leeds - Acorn Business Centre
Acorn B u s in ess Park , Killin gb ec k
Unit
1
Covenant
Turnover
Leeds City Council
2
Arundel Williams & Surplice Ltd
3
Reg Vardy (TMG) Ltd
4
The Work Foundation
Net Worth
n/a
n/a
n/a
n/a
n/a
n/a
2007
n/a
2007
n/a
2007
£60,726
2008
n/a
2008
n/a
2008
£61,321
2007
n/a
2007
£1,245,000
2007
£18,694,000
2008
n/a
2008
£0
2008
£18,694,000
n/a
n/a
n/a
n/a
n/a
n/a
2008
n/a
2008
£640,000
2008
£2,471,071
7
Mayer Brown Ltd
2009
n/a
2009
£183,817
2009
£2,406,506
10
n/a
n/a
n/a
n/a
n/a
n/a
2008
£2,321,393,000
2008
£3,216,000
2008
£143,572,000
2009
£2,040,850,000
2009
(£10,870,000)
2009
£136,091,000
n/a
n/a
n/a
n/a
n/a
n/a
13
Right Management Ltd
2007
£30,583,000
2007
£2,077,000
2007
£8,765,000
2008
£31,126,000
2008
£1,411,000
2008
£9,532,000
15
Sanctuary Housing Association
n/a
n/a
n/a
n/a
n/a
n/a
16
Crown Financial Management Ltd
n/a
n/a
n/a
n/a
n/a
n/a
U/O Daniels Chilled Foods
12
Specialist Computer Holdings Plc
Kernel
House
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Pre-Tax Profit (Loss)
Steria
Leeds - Acorn Business Centre
SITE
The property occupies a site area of approximately 0.96
ha (2.38 acres), - this excludes the area occupied by the
6 units (shown in blue) which have been sold off.
VAT
The property is elected for VAT and therefore VAT will be
payable on the purchase price.
PROPOSAL
We are instructed to seek offers in excess of £5,360,000
(Five Million,Three Hundred and Sixty Thousand
Pounds), which reflects a net initial yield of 10%, after
purchasers costs of 5.7625%.
FURTHER INFORMATION
For further information or to arrange an inspection
please contact:
CBGA
Chris Adams
[email protected]
020 7317 6283
Fineman Ross
Paul McNair
[email protected]
020 7491 9227
Alex Butler
[email protected]
020 7317 6284
Clive Ross
[email protected]
020 7491 9227
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pure investment insight
Subject to contract and exclusive of VAT
CBGA and Fineman Ross for themselves and for the Vendors or Lessors of these properties
CBgA
34 Dover Street
London, W1S 4NG
Tel:
Fax:
Email:
iiWeb:
020 7495 6838
020 7495 3056
[email protected]
www.cbga.co.uk
CONTACT
Chris Adams
[email protected]
020 7317 6283
FINeMAN ROss
Alex Butler
[email protected]
020 7317 6284
Tel:
Fax:
Web:
17 Grosvenor Hill
London, W1K 3QB
020 7491 9227
020 7491 9217
www.finemanross.co.uk
CONTACT
Paul McNair
mac@finemanross.co.uk
020 7491 9227
Clive Ross
clive@finemanross.co.uk
020 7491 9227
whose Agents they are give notice that the particulars are set out as a general outline only
for the guidance of intending purchasers or lessees and do not constitute nor constitute part
of an offer or contract. 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 purchasers or tenants should not rely on them as
statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of CBGA or
Fineman Ross has any authority to make or give any representation or warranty whatsoever
in relation to these properties.
Design: www.duplex.uk.com