Units B & C have been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Ground Floor Industrial / Warehouse||3,106 sq ft / 288.6 sq m|
|First Floor Office / Ancillary||3,003 sq ft / 279.0 sq m|
|Total Gross Internal Area||6,109 sq ft / 567.5 sq m|
A set of floor plans is available to download and the survey report will be re-addressed to a purchaser at a cost of £690 + VAT.
Units B and C, including designated car parking, are held on 999 year leaseholds at a peppercorn rent. The sale includes these leaseholds as well as the freehold of the terrace of which units B and C form part (please see title number SY819017).
Units B and C are offered with vacant possession. The freehold is sold subject to the long leases of units A to E.
The freeholder of the terraces insures the units and recovers from the occupiers/owners. Please see details within the data room, including the insurance invoices for the period 1st June 2023 to 31st May 2024.
The freeholder pays the service charges of the wider Coxbridge Business Park, received from the managing agents, Workman. Pro-rata contributions are then collected from the occupiers/owners of the terrace. Please see within the data room recent service charge demands received from Workman and associated service charge invoices issued by the vendor. It should be noted that Workman have failed to provide service charge accounts to support the demands, and as a result arrears are owed from the following companies to the vendor (as at 6 September 2023)
|Motor Parts Direct Limited||£2,478.95|
|Red Mist Pubs Limited||£10,272.37|
|The UK Electric Bike Co. Ltd||£3,747.82|
(Note that Red Mist Pubs Limited is the vendor of the long leasehold interests in Units B & C).
The vendor has, therefore, withheld £12,071.56 from Workman whilst they await appropriate information in relation to the charges. Arrears will be assigned to the purchaser.
For costs incurred by the vendor in maintaining the terrace, these are collected on an adhoc basis from the occupiers/owners.
Site (Coxbridge Business Park)
The Planning Officer’s Report in December 2013 states “The [Geo-technical Ground Contamination] Report has found no evidence of significant contamination of soils on the site that would be regarded as a threat to human health.” Furthermore, the Report states “The Council’s Environmental Health Officer has assessed the application and provided a condition of approval..”
A report from The Environment Agency of 25th October 2013 states “..the site is not significantly contaminated ”.
Planning Permission was granted for the Coxbridge Business Park development 28th November 2013 and 27th November 2014. A condition of planning required an application to amend the remediation statement should new contaminants be identified during the course of the development.
A Sitecheck Assess report of August 2023 recommends investigation in relation to contamination but having regard to the above it is appreciated that there is no issue for a purchaser.
Market Comparable Evidence
We are aware of the following letting activity in relation to industrial units:
|Address||Size||Letting date||Rent (psf)||Comments|
|F Grovebell Industrial Estate, Wrecclesham||2,730||May-23||£12.28||5 year lease break at 3, no rent free. Lease renewal.|
|8 Hurlands Business Centre, Farnham||3,396||May-23||£16.21||5 year lease break at 3, no rent free. Lease renewal.|
|Elder, Greenhills Enterprise Centre, Tilford||3,288||May-23||£11.92||5 year lease with no break, no rent free.|
|6 Dracott Park, Normandy||2,153||Apr-23||£14.98||5 year lease with break at 3, 3 months rent free up front and 2 months post break.|
|21 Riverside Industrial Park, Farnham||1,025||Nov-22||£18||5 years with 3 year break, no rent free.|
|Apple, Greenhills Enterprise Centre, Tilford||1,421||Jul-22||£15||5 year lease with 3 year break, no rent free.|
|3 Hurlands Business Centre, Farnham||1,676||May-22||£15.21||3 year lease with break at 2, no rent free.|
|Unit 3 The Enterprise Centre||1,053||Jul-21||£15.19||3 year lease with no break, no rent free.|
In terms of recent office lettings, we are aware of the following recent transactions:
|Address||Size||Letting date||Headline rent psf||Comments|
|Suite 5, 5 Mead Lane||879||Jun-23||£15.00||2 year lease, no rent free|
|First Floor A1 Endeavour Place, Coxbridge BP||1,110||Dec-22||£15.00||5 year lease, 3 year tenant break, 3 months’ rent free plus 2 months post break|
|Rose, Greenhills Enterprise Centre, Tilford||888||Aug-22||£12.11||5 year lease, no rent free|
|7 Borelli Yard, Farnham||831||Apr-22||£24||5 year lease with tenant break at 3, no rent free.|
|2nd Floor M3 Millenium Centre||3,945||Mar-22||£24||10 year lease with break at 5, 10 months’ rent free up front with further 3 months at start of year 6|
|Ground Floor North M4 Millenium Centre||3,782||Mar-22||£23.00||5 year lease with break at 3, 3 months’ rent free|
|Ground Floor A1 Endeavour Place, Coxbridge BP||1,132||Jan-22||£15.00||5 year lease, 3 year tenant break, 3 months’ rent free plus 2 months post break|
Potential Investment Value
We suggest that the property will command a rental value in the order £79,500 based upon £13 per sq ft / £140 per sq m
Based upon a market investment yield of 6.0%, the property has a potential value of £1.25m when let.
The freehold and the leaseholds of Units B and C are opted to tax and, therefore, VAT will be payable.
We are instructed to seek offers in the region of £832,500 (Eight Hundred and Thirty Two Thousand, Five Hundred Pounds), subject to contract, allowing for purchaser’s costs at 5.54%.
The asking price reflects only £136 per sq ft / £1,467 per sq m compared to the potential value suggested of £204 per sq ft / £2,202 per sq m. Hence, the asking price reflects a discount of 50% compared to the potential investment value.
The asking price reflects gross yield based upon the estimated rental value of 9.05%.
Please note that a purchaser will be re-charged the costs of the measured survey (£690 + VAT) and searches (£1,586.74) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
An attractive industrial/warehouse opportunity;
Of interest to investors and owner-occupiers;
Asking price represents a significant discount to the potential investment value;
The opportunity to gain a high yield once let;
Attractive lot size.