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Accommodation
The property has been measured by BKR Floor plans and provides the following net initial and gross internal floor areas:
| Ground Floor NIA | 706.6 sq m | 7,606 sq ft |
| First Floor NIA | 81.38 sq m | 876 sq ft |
| Total NIA | 787.98 sq m | 8,482 sq ft |
| Ground Floor GIA | 762.24 sq m | 8,205 sq ft |
| First Floor GIA | 125.88 sq m | 1,355 sq ft |
| Total GIA | 888.12 sq m | 9,560 sq ft |
Site area approximately 0.35 acre (0.143 hectare).
A measured survey and set of floor plans are available to download. This will be assigned to a purchaser at a cost of £680 + VAT.
Tenure
Freehold.
Tenancy
The property is let to The Secretary of State for Levelling-Up, Housing and Communities (trading as Job Centre Plus) on a full repairing and insuring lease for a term of 10 years from 1st April 2018, expiring 31st March 2028.
Therefore, there are 4.5 years unexpired with no breaks.
The passing rent is £88,475 per annum. Based on the measured survey, the passing rent equates to £9.25 on the gross internal area and £10.43 on the net internal area.
The tenant has been in occupation for over 20 years.
Covenant
Jobcentre Plus is the public facing arm of the UK Department for Work and Pensions, providing direct employment support services. The services include training, employment opportunities and administration of benefit claims.
The unemployment landscape in the United Kingdom is such that the need for the Jobcentre Plus service is essential.
All the lease obligations and to UK Government, offering undoubtable income and covenant.
Estimated Rental & Capital Value
Our research suggests that 1- and 2-bedroom flats in this location with parking are worth in the order of £110,000 per flat or £210 per square foot / £2,260 per square metre.
Our research also suggests that the estimated rental value for a town centre office building with parking is in the order of £10.50 – £12.50 per square foot / £113 – £135 per square metre.
The price reflects a capital value of £95 per square foot / £1,019 per square metre. This is a significant discount to the estimated residential value.
VAT
The property has been registered for VAT and it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC) so that VAT will not be payable on the purchase price.
Proposal
We are instructed to seek offers of £905,000 (Nine Hundred and Five Thousand Pounds), subject to contract, reflecting a Net Initial Yield of 9.25%, assuming standard purchaser’s costs of 5.64%.
Please note that a purchaser will be re-charged the costs of the measured survey (£680 + VAT), the searches (£1,029.63) which are provided in the data room and a transaction fee of 1% + VAT.
Investment Considerations
The tenant is the Government body, offering undoubted income;
The property sits on a 0.35 acre (0.143 hectare) site;
Located within a mixed use town centre;
The property benefits from a gated car park;
With unemployment on the rise, the tenant is providing vital services;
Freehold;
Tenant in occupation for over 20 years
The property offers repurposing potential in the future, subject to planning;
The price reflects a capital value of £95 per square foot / £1,019 per square metre;
Attractive lot size to an investor;
High net yield of 9.25%;
The price reflects a capital value which is 50% lower than the approximate residential capital values in this location.
Selling on behalf of TTG
