The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Zone A||102.28 sq m||1,101 sq ft|
|Zone B||38.09 sq m||410 sq ft|
|Ground Floor Total||140.37 sq m||1,511 sq ft|
|First Floor||195.18 sq m||2,101 sq ft|
|Second Floor||198.25 sq m||2,134 sq ft|
|Third Floor||180.60 sq m||1,944 sq ft|
|Total||714.40 sq m||7,690 sq ft|
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 £450.00 + VAT.
Overview, the property is let as follows:
• Part Ground, First, Second & Third Floors – let to Secretary of State for Defence until 24th March 2028 at £63,477 per annum.
• Ground Floor, 19 Rhosddu Road – retail unit, currently vacant.
• Electricity substation – let to SP Manweb until June 2111 at £1.00.
Halkyn House is let to Secretary of State for Defence on a full repairing and insuring lease for a term of 10 years from 25th March 2018, expiring on 24th March 2028 at a passing rent of £63,477 per annum. The lease benefits from 5 yearly rent reviews [25th March 2023 rent review is outstanding]. We understand the tenant has been in occupation since at least 2008 and entered into a lease renewal in 2018.
The tenant had a break option on 25th March 2023 which it attempted to exercise but failed to comply with the preconditions in accordance with the lease provisions. The lease states that the tenant may determine the lease subject to them giving up occupation on or before the break date and there being no arrears of the annual rent. However, the tenant has continued to occupy the property and rental sums remain outstanding. The vendor’s solicitor has notified the tenant that they have invalidated the break option and, as such, the lease has not been determined. Please refer to the data room for further information and correspondence between the parties. The vendor is leaving the purchaser to pursue the matter with the tenant or enter into discussions regarding a new lease; it should be noted that Heads of Terms were provisionally agreed early in 2023, prior to the tenant failing to exercise the break clause correctly, with a new lease rent of £30,300 per annum for the part ground and first floor, and a licence of £6,800 per annum in respect of the second floor. Since these terms were prior to the failed break by the tenant, a purchaser may chose to reject as now a landlord is in a more favourable position.
The tenant has a right to use eight car parking spaces in the car park at the rear.
The ground floor of 19 Rhosddu Road is currently vacant. There is an electricity substation let to SP Manweb Plc for a term of 99 years from 7th June 2012 at £1.00.
It should be noted that the current arrears position is as follows:
|Halkyn House (Secretary of State for Defence)||£106,436|
|19 Rhosddu Road (Vacant)||£3,568.88|
(As at 27th October 2023)
It should be noted that the purchaser is not required to pay for the arrears at completion in respect of the main tenancy. The purchaser will use reasonable endeavours to collect the arrears on behalf of the seller, failing which the right to collect will pass back to the seller.
For the period 1st October 2022 to 30th September 2023 the service charge budget is £71,814.25. A copy of the current service charge is available to download via the data room. Note that the current service charge covers three adjoining properties and the purchaser will need to implement a new service charge for the subject property.
It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC) and the purchaser will be required to submit the appropriate election to HMRC. It should be noted that the administrators may not hold documentation to prove VAT election at the point of completion.
We are instructed to seek offers in excess of £307,500 (Three Hundred and Seven Thousand Pounds), subject to contract, reflecting a net initial yield of 20.0% allowing for purchaser’s costs at 2.82%
Please note that a purchaser will be re-charged the costs of the measured survey (£450 + VAT) and searches (£515.46 + VAT) 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.
A high yielding office investment;
The property provides an investor with undoubted income, being let to the Government (Secretary of State for Defence) until March 2028;
The opportunity to negotiate with the tenant given the error in serving a valid break notice;
The property occupies a prominent position in the heart of the town centre;
A purchase at the asking price reflects an attractive yield;
Attractive lot size for an investor.
The affairs, business and property of the Company is being managed by the Joint Administrators Andrew Knowles and Steven Muncaster, who act as agents for the Company and without personal liability. Both are licensed by the Insolvency Practitioners Association and are bound by the Insolvency Code of Ethics.