south east office let to nhs foundation trust - … brochure.pdfsouth east office let to nhs...
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South EaSt officE lEt to NhS fouNdatioN truSt
Berkeley House, 11-13 ockford road, GodalminG, Gu7 1Qu
on the instructions of
Investment Summary• Fully refurbished,highqualityofficebuilding.
• Agreementfora20yearleasetoSurreyandBorders PartnershipNHSFoundationTrustwithtenant’sbreakoptions on10thand15thanniversaries.
• Tenantmovinginimminentlyoncompletionofthe refurbishmentworks.
• Affluentcommutertownwithhighlyskilledlabourpool.
• 9,212sqftover2floorswithreceptionarea.
• 22carparkingspacesofferingexcellentparkingratioof 1:419sqft.
• Letoffaverylowbaserentof£115,000perannumreflecting £12.50 psfoverall.
• Excellentprospectsforrentalgrowthatfirstreview,with ERV of £15.00 psf.
• Offerssoughtinexcessof£1,670,000 (One Million Six Hundred and Seventy Thousand Pounds)
• ApurchaseatthislevelreflectsaNet Initial Yield of 6.50% (afterusualacquisitioncostsof5.80%).
• Reversionaryyieldof7.82%
Berkeley House, 11-13 ockford road, GodalminG, Gu7 1Qu
Location Godalmingisanaffluentcommutertownlocated5milessouthwestofGuildfordand40milessouthwestofCentralLondon.Thetownislocatedin the Surrey Hills, an Area of Outstanding Natural Beauty, and has apopulationofapproximately21,000people(Census2001).
TheA3linkingPortsmouthtoLondonislessthan2milesfromthetowncentreandtheA3100runsthroughGodalmingconnectingthetowntoGuildford.ThenearbyHindheadTunnelisdueforcompletionshortlyandwillgreatlyimprovejourneytimesontheA3.
Junction10oftheM25isapproximately14milestothenortheastandisaccessedviatheA3.Inaddition,Junction4oftheM3iseasilyaccessiblebeingsome12milestothenorthwestatFrimley.
ThetownbenefitsfromafrequentrailservicetoLondon(Waterloo)withafastestjourneytimeof40minutesandGatwickandHeathrowairportsarebothapproximately30milesfromthetown,onlya45minutedriveaway.AregularbusservicelinksGodalmingtoGuildfordgivingeasyaccesstotheamenitiesofferedbyGuildfordtowncentre.
Situation Berkeley House occupies a prominent location in Godalming, frontingOckford Road, a short walk from the High Street and local shoppingfacilitiesand500yardsfromthetrainstation.
The property is situated close to the junction of the High Street andA3100Godalmingreliefroad(OckfordRoad/FlambardWay)whichwascompleted in 1994 and has greatly improved traffic flow through thetown.
GodalmingHighStreetprovidesarangeofindependentshopscombinedwith regional and national chains including Café Nero, Pizza Express,Waterstones and WH Smith. A short walk from the picturesque HighStreet,JSainsburyandWaitrosebothhavesuperstoresontheoutskirtsofthetowncentre.
The retail catchment of the town is characterised by a high disposableincomeandhighlevelsofhouseownershipandcarownership.Housepricesin the area are substantially above average, with average house prices inWaverleyBoroughcurrentlyat£420,581comparedtothenationalaverageof£160,996(Source:LandRegistry).
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Berkeley House, 11-13 ockford road, GodalminG, Gu7 1Qu
Description
Thepropertycomprises9,212sqftofaccommodationover2floorswithmaleandfemaleWCsoneachfloor.ThecarparktotherearisaccessedviaentrancesonbothHollowayHillandOckfordRoad.22spacesareprovidedgivingaratioof1spaceper419sqft.
Priortotherecentletting,thepropertywasextensivelyrefurbishedwiththefollowinglandlord'sworkshavingbeencarriedout:
• Installationofpassengerliftfordisabledpersons.• NewsuspendedceilingandLG7lightingtogroundfloor.• Installationof3pipeVRFheatingandcoolingsystem,distributedvia ceilingcassettes.• Refurbishmentofallexternalareas(includingcleaningofroofandre- pointingofbrickwork,repaintingofwoodworkareasandcleaningof allpavedareasetc).• CompleterefurbishmentofallWCs.• Refurbishmentofkitchenpoints.• Newcarpetingthroughoutofficespace• FullcompliancewithDDA.
An Agreement for Lease dated 3 December 2010 defines Landlord andTenant works for the refurbishment. Landlord’s works are rentalised atreviewandthetenanthasanFRIlease.Thetenant’sworksmainlycomprisefit out works to the tenant’s specification, and were carried out by thelandlordinconjunctionwiththerefurbishmentbutatthetenant'scost.
AccommodationThe property has been measured in accordance with the RICS Code ofMeasuringPractice(6thEdition)andprovidesthefollowingapproximatenetinternalareas:
Description Use Sq M Sq Ft
FirstFloor Offices 478.00 5,145
GroundFloor Offices 330.29 3,556
GroundFloor Reception 47.50 511
Total 855.79 9,212
The property provides 22 surface level car parking spaces reflecting aparkingratioof1:419sqft.
Thepropertysitsonasiteofapproximately0.46acres,theextentofwhichisshownforidentificationpurposesopposite.
Tenancy ThetenanthasenteredintoanAgreementforLeasedated3/12/2010andthepropertywillbeletinaccordancewiththefollowingscedule:
Floor Tenant Sq Ft Lease Start
Lease Term
Rent Review
Break Option Lease Expiry
Rent PA Rent PSF
EntireBuilding Surrey&BordersPartnershipNHSFoundationTrust
9,212 TBC* 20years 5yearly 10th&15thanniversaries
TBC £115,000 £12.50
*oncompletionoftherefurbishmentworks
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0m 10m 20m 30m
Berkeley House, 11-13 Ockford Road, Godlaming GU7 1QU
Ordnance Survey © Crown Copyright 2011. All rights reserved.
Licence number 100020449. Plotted Scale - 1:1250
69.7m
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Business Park
Oxford Spires
Langford Hall
Fountain Court
Meadow House
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2011. All rights reserved. Licence number 100020449.
Getmapping plc 2011. Plotted Scale - 1:1250
69.7m
TH
E B
OU
LE
VA
RD
Business Park
Oxford Spires
Langford Hall
Fountain Court
Meadow House
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2011. All rights reserved. Licence number 100020449.
Getmapping plc 2011. Plotted Scale - 1:1250
Note: NB Real Estate Markets Ltd, trading as Capita Symonds, Part of The Capita Group Plc, ("NBML") and Cordatus Partners for themselves and as agents for the vendors or lessors (the "Seller") of this property, give notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptions in these particulars as to this property are made without responsibility or liability on the part of NBML or the Seller, (b) no such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of each of the statements, descriptions and measurements contained in these particulars (3) The Seller does not make or give, and neither NBML nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the incidence of VAT. (5) No liability is accepted and no representation is made by either NBML or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or NBML would otherwise have for any fraudulent concealment or for any statements made fraudulently by it, its employees or agents. May 2011.
Adrian Gates Photography & Brochures 07710 316 991
020 7544 2000
capitasymonds.co.uk/realestate
Berkeley House, 11-13 ockford road, GodalminG, Gu7 1Qu
Tenure
Thepropertyisheldfreehold.
Tenant Information
SurreyandBordersPartnershipNHSFoundationTrustprovideshealthandsocialcareservices
forpeopleofallagesinSurreyandNorthEastHampshire.
TheTrustemploysaround3,000staffacross74sites,servingapopulationof1.3million.
TheTrustwas formedon1April 2005 following the mergerofSurreyHampshire Borders NHS Trust, Surrey Oaklands NHS Trust and NorthWestSurreyPartnershipNHSTrust.FoundationTruststatuswasachievedon1May2008.NHSFoundationTrustsarenot-for-profit,publicbenefitcorporations.TheyarepartoftheNHSandprovideoverhalfofallNHShospitalservices.
NHS Foundation Trusts were created to devolve decision making fromcentralgovernmenttolocalorganisationsandcommunities.TheyprovideanddevelophealthcareaccordingtocoreNHSprinciples-freecare,basedonneedandnotabilitytopay.
TheTrusthadanoverallincomeof£174mforthe2009/10financialyear.
Market Commentary
GodalmingisabuoyantcommercialcentrewhichhasdevelopedduetoitsproximitytothetheA3, itsmainlinerailservicestoWaterlooandisasatellitetowntoGuildford.MajorofficeoccupierswhohavebeenattractedtothetownincludeWorldwideFundForNature,TriadSpecialSystems,MTITechnologyandSITA.
Somerecenttransactionsofinterestinclude:
ThefreeholdofSuttonHouse,WeysideParkwassoldinJanuary2011withvacant possession for £1.45m.The building totals 13,200 sq ft and waspreviouslyavailabletoletat£16.50psf.
ThePelicanBuyingCompanyacquired5,683sqftatAshHouse,ElsteadinSeptember2010ataheadlinerentof£19.00psf.
Quotingrentsforcomparablespacewithinthetownaretypicallybetween£17.00 and £23.00 psf and support the excellent prospects for rentalgrowthfromthecurrentlowbaserentof£12.50psf.
The lettingof thesubjectpremises includedno rent freeandwasonapreletbasis.
VAT
We understand that the property is elected for VAT and therefore VATwillbepayableon thepurchaseprice. It isenvisagedhowever that thetransaction will be dealt with by way of aTransfer of a Going Concern(TOGC).
Proposal• Recentlyrefurbishedproperty.• Lowbaserentwithexcellentprospectsforrentalgrowth.• Towncentrelocationclosetostation.• UndoubtedcovenantofanNHSFoundationTrust.• Affluenttownwithstronghousingmarket.
Weareinstructedtoseekoffersinexcessof£1,670,000 (One Million Six Hundred and Seventy Thousand Pounds) subjecttocontractandexclusiveofVAT.
A purchase at this level reflects a Net Initial Yield of 6.50% and areversionary yield of 7.82% withusualacquisitioncostsof5.80%.
Furtherinformationisavailabletoviewat:www.capitasymonds.co.uk/godalming
Further Information
William Bokenham020 7544 2047
Kate Donneky020 7544 2219
Gavin Abrams0131 240 1477