Protected: High Yielding Attractive Office Investment

Accommodation

The property provides the following net and gross internal floor areas:

A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £820 + VAT.

We have provided a car parking plan showing spaces allocated to Building 2 totalling 152.

Site

We have supplied a historic Phase I Environmental Report from 2014 which was commissioned following the development of the site. The report is favourable in terms of environmental risk.

In addition, a Stage 1 Environmental Report was carried out by Access Environment in February 2024 which concluded that “the overall environmental risk at the site is low moderate” and “Subject to continued current use…the level of environmental risk associated with the site is assessed to be acceptably low for the current use.” A copy of this report is available to download.

Tenure

Freehold.

Tenancies

The ground floor north wing plus half the ground floor core, and first floor are let to G4S Facilities Management (UK) Limited at £90,585 per annum and £150,000 per annum respectively. The ground floor south wing is currently vacant.

Please refer to the tenancy schedule. In summary, the tenancy position is as follows:

Given the vacant suite, the current shortfalls to the landlord are as follows:

In order to ensure that the purchaser does not suffer an income shortfall whilst the ground floor south wing remains vacant, the vendor will place £230,000 in an escrow account on completion, to be drawn down by the purchaser, thereby providing three years’ cover.

[Note that the tenancy schedule includes the income information for the adjoining property for sale, Building 3.]

Service Charge

Please refer to the tenancy schedule and service charge information provided in the data room. The current service charge is £4.72 per sq ft, excluding charges relating to the utilities in the common areas; the leases provide for a cap on service charge contributions of £5.79 per sq ft (excluding charges relating to the utilities), subject to increases in accordance with the Retail Price Index. Note that the service charge cap within the leases is not breached.

Net Income

An investor will benefit from a true net income of £240,585 per annum. Once the vacant ground floor suite has been let at the suggested rental value of £8.50 per sq ft, the income will rise to £297,989 per annum.

Rates

We are advised that the rates payable are as follows:

The multiplier is 0.4990/0.5120

Covenant

G4S Facilities Management (UK) Limited has reported the following figures:

G4S Facilities Management (UK) Limited is a subsidiary of G4S Regional Management (UK&I) Limited, with the ultimate owner being Atlas Ontario LP.

G4S Regional Management (UK&I) Limited has reported the following figures:

Atlas Ontario LP Consolidated Financial Statements

G4S specializes in delivering employment support services across the UK. The company collaborates with local organizations to provide frontline assistance to targeted groups, aiding them in securing sustainable employment opportunities. Their Contact Centre serves as a central hub, offering guidance on various government regulations, including childcare benefits and pensions. For further information, please see: www.g4s.com/en-gb/what-we-do

G4S is a British multinational private security company headquartered in London offering a range of services including the supply of security personnel, monitoring equipment, response units and secure prisoner transportation. The company has operations in more than 85 countries employing over 800,000 people, making it one of the world’s largest private employers. In April 2021, G4S was acquired by Allied Universal, a global leader in integrated security solutions. For further information visit www.g4s.com.

VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

We are instructed to seek offers in the region of £1,620,000 (One Million, Six Hundred and Twenty Thousand Pounds) subject to contract, for the investment to reflect a net initial yield of 14% and a capital value of £47 per sq ft (net).

The investment yield will increase to 17.35% on letting of the vacant ground floor suite.

Please note that the purchase will be re-charged the costs of the measured survey (£820 + VAT) searches (£1,517.63) which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of £10,000 plus VAT.

We are also instructed to sell the adjoining property, Buliding 3, Callflex Business Park.

Investment Considerations

1. The opportunity to acquire a high yielding office investment

2. The investment provides secure income

3. Enhancement in value can be achieved by letting the vacant suite

4. The vendor is providing a full rates, service charge and insurance guarantee for three years

5. Attractive lot size

6. Attractive yield profile