office investment opportunity
TRANSCRIPT
OFFICE INVESTMENT OPPORTUNITYBlack Horse Tower & Holbrook and Churchwood Houses,Cockfosters, Hertfordshire EN4 0DR
LOCATION
The popular and affluent north west London suburb ofCockfosters is located partly in the London borough ofEnfield and partly in the London Borough of Barnet,approximately 12 miles (19km) North West of CentralLondon. The town benefits from excellentcommunications being located on the A111 whichprovides direct access to the North Circular Road (A406)with Southgate and Oakwood located in close proximity.Cockfosters underground station (Piccadilly line) servesthe town and is located adjacent to the property. Busservices also operate along the A111 Cockfosters Road.
The subject property is situated in the extremelyprominent location set on the east side of Cockfostersroad (A111) adjacent to Cockfosters tube station.
DESCRIPTION
Built in the mid 1960’s the property is concrete framed inconstruction. It comprises two main elements, namely a nine storey curved tower block which is connected to two, threestorey adjoining blocks, known as Holbrook House andChurchwood House.
The tower block is occupied by Lloyds who have replaced all the window furniture with double glazed units havingrefurbished much of the interior which is still ongoing,installing raised floors and suspended ceilings andconverting the 8th floor into a restaurant area. Three of thefloors are currently being refurbished and in excess of £8Mhas recently been spent on refurbishing the property toinclude air conditioning throughout.
There are site service car parking spaces for approximately189 vehicles.
Black Horse Tower & Holbrook and Churchwood Houses, Cockfosters, Hertfordshire EN4 0DR
COCKFOSTERS
COCKFOSTERS
LONDON
INVESTMENT SUMMARY
• An extremely prominent office building located adjacent to the underground station
• 67% of the income guaranteed by Lloyds TBSBank Plc
• Freehold
• Lot size of £14.83M (Fourteen Million Eight Hundred and Thirty Thousand Pounds)
• Attractive initial yield of 8%
• Capital value psf of £126
• Potential alternative use to residential subject to the necessary planning consents
ACCOMMODATION
The property provides approximately 10,913.89 sq m (117,480sq ft) of net internal accommodation as set out in theaccommodation and tenancy schedule.
We understand that the site area is approximately 0.957hectares (2.37 acres).
TENURE
Our clients will be disposing of their freehold interest.
TENANCY
The property is multi let as shown in the accommodation andtenancy schedule providing a current passing rent of£1,254,792.50 per annum.
The property is effectively full repairing and insuring via theservice charge.
Black Horse Tower & Holbrook and Churchwood Houses, Cockfosters, Hertfordshire EN4 0DR
Tenant Description Area (Sq m) Area (Sq ft) Lease Terms Next Rent Review Rent PA Comments
Black Horse Ltd(Guaranteed by Lloyds TSB Plc)
BLACK HORSE TOWER Crescent Block
7,261.06 78,160 15 yearsFrom: 01/04/2007To: 31/03/2022
01/04/20125 yearly thereafter
£840,220 Tenant option to break 01/04/2017 subject tonine months notice125 car parking spaces
Enfield Primary Care Trust HOLBROOK HOUSEPart Ground Link
249.90 2,690 10 yearsFrom: 01/04/2007To: 31/03/2017
01/04/2012 £33,625 4 car parking spaces
Enfield Primary Care Trust Part Ground Link 235.04 2,530 19 years 10 monthsFrom: 30/08/1994To: 24/06/2014
£31,625 Revisionary lease in place until 24/06/20174 car parking spaces
Enfield Primary Care Trust 1st and 2nd Floors Link 1,140.44 12,276 10 yearsFrom: 01/04/2007To: 31/03/2017
01/04/2012 £153,450 18 car parking spaces
Enfield Primary Care Trust CHURCHWOOD HOUSEPart Ground Floor 'L' Block
245.72 2,645 10 yearsFrom: 01/04/2007To: 31/03/2017
01/04/2012 £33,062.50 3 car parking spaces
Lovell Partnerships Limited Part 2nd Floor 'L' Block 696.10 7,493 10 years 6 monthsFrom: 30/11/1999To: 31/05/2010
£82,500 15 car parking spaces
Barn Doc Ltd Part First Floor 'L' Block 489.86 5,273 10 yearsFrom: 25/01/2010To: 24/01/2020
£52,730 Tenant entitiled to a total of six months rentfree if option to break at third year is notexercised.Outside the Landlord and Tenant 1954 Act.Landlord option to break 23/06/2017.Service charge capped at £6 psf plus RPI.8 car parking spaces
Enfield Primary Care Trust Part First Floor 'L' Block 189.33 2,038 7 years 5 monthsFrom: 25/01/2010To: 23/06/2017
£20,380 Service charge capped at £6 psf plus RPI.Outside the Landlord and Tenant 1954 Act.3 car parking spaces
Unit Vacant Part Ground Floor 'L' Block 406.44 4,375
Mr. Kwaka Adu Caretaker’s/Residential Flat 1 yearFrom: 01/04/2009To: 31/03/2010
£6,000
Enfield Primary Care Trust Air conditioning licence 15 years 3 months 7 daysFrom: 18/03/1999To: 24/06/2017
£1,200
Eastern Electricity Board Electricity Sub Station 125 yearsFrom: 04/05/1966To: 03/05/2091
Total 10,913.89 117,480 £1,254,792.50
TENANCY SCHEDULE
LEWIS & PARTNERS LLP FOR THEMSELVES AND FOR THE VENDORS OF THISPROPERTY WHOSE AGENT THEY ARE GIVE NOTICE THAT:-
1. These particulars do not constitute any part of the offer for sale or contract for sale.
2. All statements contained in these particulars as to this property are made without responsibility on the part of Lewis & Partners LLP or the vendors or lessors.
3. None of the statements contained in these particulars as to this property areto be relied on as statements or representations of fact.
4. Any intending purchasers must satisfy themselves by inspection or otherwiseas to the correctness of each of the statements contained in these particulars.
5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the property. The plans are photographically reproduced and therefore not to scale except where expressly stated. The plans, photographs or drawings are for identification purposes only.
6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale.
7. Any properties or drawings of the relevant property or part thereof or the neighbouring areas may not depict the property or the neighbouring areas atthe date a prospective purchaser or tenant inspects the property. Prospectivepurchasers are strongly advised to inspect the property and neighbouring areas.
8. Lewis & Partners LLP have not measured the property and have relied upon clients information. Therefore Lewis & Partners LLP give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements.
9. All terms quoted are exclusive of value added tax unless otherwise stated.
10. The vendors do not make nor do Lewis & Partners LLP any person(s) in theiremployment give any warranty whatsoever in relation to this property.
11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.
12. These details were prepared as of February 2010.
Adrian Gates Photography & Design 07710 316 991
15/19 Cavendish Place, London W1G 0QE
Tel: 020 7580 4333Fax: 020 7580 5111
SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
FURTHER INFORMATION
For further information please contact, sole agents:-
Stephen Raingold [email protected]
Stephen Gevertz [email protected]
COVENANT
Black Horse LtdFor the year ending 31st December 2008 the companyreported a turnover of £713M, pre tax profits of £44.9M andshareholder funds of £267M.
Lloyds TSB Bank PlcFor the year ending 31st December 2008 the companyreported a turnover of £20.3Bn, pre tax profits of £825Mand shareholder funds of £9.3Bn.
VAT
VAT will not be applicable on the sale of this property. Thelandlord has agreed not to VAT the property unless legislationchanges.
PROPOSAL
We are seeking offers in excess of £14.83M (Fourteen MillionEight Hundred and Thirty Thousand Pounds) subject tocontract and exclusive of VAT for our client’s freehold interestin the above property. A purchase at this level would reflect anet initial yield of 8% based on the acquisition costs of 5.76%.
1
15
16
8
7
Box
Signal
SLs
SL
NORFOLKCLOSE
2
1
ChurchwoodHouse
114a
Holbrook House
167
169
COCKFOSTERSROAD
97.2m
116
House
North
side
ckfostersParade
12
ckfosters Station
13to
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