CBXII
Midsummer Boulevard
mIlton keynes
CBXII
Midsummer Boulevard
mIlton keynes
investment
summary
milton keynes
An opportunity to acquire asubstantial and prominently located piece of real estate within Milton Keynes city centre office core adjacent to the HUB MK and close to Milton Keynes Central station. Milton Keynes is currently the 30th largest city in the UK. By 2031 it is estimated that it will be the 14th largest city in the UK.
The Milton Keynes office market provides in excess of 7 million sq ft of accommodation. The outlook for the city is extremely positive with the Government outlining plans for 100,000 new jobs and 68,600 new homes in the area by 2031.
Milton Keynes has now become a major retail and leisure destination with a catchment population of approximately 228,000. The city now provides a range of leisure and
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shopping facilities. These include thecentre:mk and Midsummer Place shopping centres, the hub: mk, the theatre district and Xscape Snowdome providing over 300 shops, cafes and restaurants between them and attracting over 52 million visitors each year.
75% of companies in Milton Keynes consider the town to be their UK headquarters.
Employment in Milton Keynes increased by 17% between 1999 and 2007.
£130 million of enhancements at Milton Keynes Central station are currently underway. The project will provide an extra platform and realign the track to provide additional services, especially at peak times.
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CBXII totals approximately 13,753 sq m (148,042 sq ft) of offices, retail and leisure accommodation. CBXII comprises three parts - Midsummer East and Midsummer West being constructed in the late 1980’s and Midsummer Court constructed in the mid 1990’s. Midsummer East and West are arranged over basement, ground and four upper floors. Midsummer Court is arranged over basement, ground and two upper floors. The building provides eight retail units and five leisure units. Four of the leisure units and one retail unit front Midsummer Boulevard with the remaining configured internally. The four upper floors over
Midsummer East and West and the two upper floors over Midsummer Court provide flexible office accommodation arranged either as open plan accommodation or smaller business suites.
CBXII has an impressive frontage to Midsummer Boulevard of some
160m (525 ft) and sits on a site of 2.24 acres (0.9065 hectares). The property has proved desirable to major companies and occupiers including Argos, Homes and Communities Agency, Regus and leisure operators such as mitchells & Butler, JD Wetherspoon and Pizza express.
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Recent activity within the office accommodation demonstrates the current tenant’s commitment to the building. This includes the Homes and Communities Agency opting to renew their lease and by passing their break. Argos and Regus also recently bypassed their break options.
The passing office rents show a generous discount to prime office rents in the city which are approximately £20 psf.
Average office passing rents of
£13.19 psf in Midsummer East and West with recent rental evidence from the new HCA letting which equates to £14.23 psf overall. Asset management opportunities include letting the vacant leisure and office accommodation, re-gearing the existing leases, implement the rolling refurbishment and maintenance programme to improve rental growth,
re-configure entrance, reception and lobby areas and the possibility of extending the fourth floor office accommodation.
Average weighted unexpired term certain on the office accommodation is 3.81 years
giving numerous opportunities to implement an asset management programme.
Average weighted unexpired term certain on the retail and leisure accommodation is 11.14 years
providing income security. Total passing rent of £2,094,513 per annum. • • • • • • •
We are instructed to seek offers in the region of £22,000,000 (Twenty Two million pounds), subject to contract and exclusive of VAT. Assuming purchaser’s costs of 5.725%.
o Net initial yield 9%
o Reversionary yield 10.37% o Equivalent yield quarterly in
advance 10.88%
o Equivalent yield annually in
arrears 10.21%
o Reversionary yield in say March
2010 upon letting vacant units and imminent rent reviews 10.14%
The property shows an attractive capital value of approximately
£148 psf. • • Office74% Retail 6% Leisure 18% Other 2%
Sector Income Split
CBXII
CBXII has attracted occupiers including Argos, Homes & Communities Agency,
Regus, Mitchells & Butler, JD Wetherspoon and Pizza Express
Network Rail BIRMINGHAM Oxford Cambridge LONDON London Luton London Gatwick London Heathrow London Stansted M25 M1 MILTON KEYNES
location
Milton Keynes is the centre point between London (53 miles south), Birmingham (69 miles north
west), Oxford (40 miles south west) and Cambridge (44 miles north east). Its location makes
it ideal for moving goods and people across the UK and Europe. Approximately 30% of the
country’s population can be reached within a 90 minute drive.
Road Milton Keynes is served by excellent road communications located between junctions 13 and 14 of the M1 motorway with the A5 trunk road situated immediately to the west of the centre.
Rail Rail services are available from Milton Keynes Central which serves many destinations directly including London Euston (35 minutes) and Birmingham New Street (45 minutes) and Manchester Piccadilly (1 hour 48 minutes).
Air Luton International Airport is located approximately 19.5 miles to the south east of the Milton Keynes. The airport currently serves over 30 destinations across 3 continents and handled almost 10 million passengers in 2007.
milton keynes
a place to locate and live
Over £1 billion of private investmentis currently translating into
infrastructure, architecture and jobs. Continuing to attract businesses and people at a phenomenal rate – on average 5 businesses per month move to or expand in Milton Keynes and 10 new people per day arrive in the town.
In September 2008 the new University Centre Milton Keynes (UCMK) was founded in the city centre, other universities close by include Cranfield University, The Open University and University of Buckingham resulting in one third of the local working age
population being skilled to at least degree level or higher.
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A recently commissioned study by English Partnerships (Homes and Communities Agency) sets a target for Milton Keynes to create 65,000 jobs by 2021 and more than 100,000 by 2031 together with 68,600 new homes to be built by 2031.
Milton Keynes has successfully attracted a range of world class companies including Abbey National, BP, British Telecom, Argos, Volkswagon Group, Mercedes-Benz, Coca-Cola and the Foreign &
Commonwealth Office.
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midsummer West
midsummer east
midsummer Court
situation
The subject property is prominently positioned in a prime business location on the southern side of Midsummer Boulevard, adjacent to the recently developed hub: mk. Midsummer Boulevard provides the main linkage between Milton Keynes Central Station, the Central Business District and Shopping Centres.
The subject property is situated within 800m from Milton Keynes Central Station which is situated to the west of the property. The station is undergoing a £130m regeneration project.
the hub:mk 2
West end Cmk Phase 1
the hub:mk
CBXII midsummer Boulevard
For site identification purposes only Picture taken: Saturday 7th February 2009
the Pinnacle
milton keynes Central station
description
The property comprises three buildings which are Midsummer East and Midsummer West, linked by ground floor lobby and retail areas and Midsummer Court which is effectively self contained.
Midsummer East and West were built in the mid 1980’s and provide ground floor retail and leisure accommodation totalling approximately 1,515 sq m (16,304 sq ft) and office accommodation on four floors, including a mezzanine floor, totalling some 8,850 sq m (95,261 sq ft). Midsummer Court was built in the mid 1990’s and provides for ground floor leisure accommodation totalling approximately 1,317 sq m (14,175 sq ft) and office accommodation on two further floors extending to approximately 2,072 sq m (22,302 sq ft).
Midsummer East and West comprise a mix of open plan and cellular office accommodation with each building having their own entrances and lobby areas. The lobbies are each served by 2 x Kone 16 person passenger lifts (4 in total). The accommodation benefits from air conditioning, perimeter heating units, raised floors, suspended ceilings with recessed lighting, and a floor to ceiling height of 3.5m (slab to slab). The fourth floor of Midsummer East has
been comprehensively refurbished to include new carpets, refurbished WC’s, motion sensored recessed lighting and redecoration thoughout.
The ground floor comprises eight retail and two leisure units predominately centred round an open mall area, two of which front Midsummer Boulevard. The Pizza Express unit is served by a goods lift. Midsummer Court, a self contained building, benefits from a separate entrance and lobby area with an 8 person passenger lift serving each floor. The office accommodation is arranged as cellular offices and each floor has a break out area. The office accommodation benefits from air conditioning, central heating, raised floors, suspended ceilings, recessed lighting and a floor to ceiling height of 4.12m (slab to slab).
The ground floor comprises three leisure units, all fronting Midsummer Boulevard. Two separate goods lifts serve the leisure accommodation.
site
The site extends to 2.24 acres (0.9065 hectares) and benefits from a 160m (525 ft) frontage to
Midsummer Boulevard.
tenure
Freehold.
car parking
The property benefits from excellent car parking which is provided in a 12 level multi-storey car park located to the rear of Midsummer Court.
The multi-storey car park is held freehold and provides 590 car spaces of which 199 are sold off on a long lease to Frontier Estates, leaving the remaining 391 to CBXII.
There are an additional 69 spaces provided in the service road of which 59 are demised to various tenants and 10 which are currently unallocated. There are a further 7 spaces provided to the front of the building which are also let to various tenants.
The service road which runs
underneath the multi-storey car park also provides access to the good lifts and storage areas.
A car parking schedule is available upon request.
accommodation table
Floor Tenant Allsop Area (sq ft) Use Car parking
Midsummer East
Ground Black and White 441 Retail 0 Ground Hensmans Hair 736 Retail 0 Ground Marcello’s 2746 Leisure 1 Ground Pizza Express 4170 Leisure 2 1st Homes & Communities Agency 12910 Office 40 2nd Homes & Communities Agency 13075 Office
3rd Homes & Communities Agency 13075 Office 108
4th VACANT 6344 Office 28
Midsummer West
Ground + first Appledore Clinic 1661 Healthcare 0 Ground Cash-a-Cheque 1205 Retail 0 Ground MEM recruitment 694 Retail 1 Ground Hammond and Dummer 2528 Retail 1
Ground PHC 420 Retail 0
Ground + first Vinci Park Services 1703 Retail 0 Mezzanine Argos Ltd 6682 Office 30 1st Argos Distributors Ltd 13553 Office
2nd Argos Distributors Ltd 13042 Office 70 3rd Regus (UK) Ltd 12758 Office
4th Regus (UK) Ltd 3822 Office 40 Part basement Vacant 672 storage
Licence Regus (UK) Ltd Car Park 15 Licence MEM recruitment Car Park 3
Midsummer Court
Ground + first JD Wetherspoon 3919 Leisure 2 Ground + first VACANT 4795 Leisure 0 Ground All Bar One 5461 Leisure 0 1st United Business Centres 11151 Office
2nd United Business Centres 11151 Office 80 Licence United Business Centres Car Park 22
CBXII*
VACANT Car Park 14
Totals 148,042 457
*There are 10 further car parking spaces used by various tenants by way of an informal agreement.
A total of
117,563 sqft
of offices and a total of
30,479 sqft
of leisure and retail
accommodation. An exceptional office car parking ratio of
1:281 sqft
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tenants
covenants
Homes & Communities Agency (Commission for the New Towns/ English Partnerships)
The Commission was established under the New Towns Act 1959 and was responsible for managing and disposing of the land and property assets of the defunct English development corporations. In May 1999 CNT merged with the corporation functions of the Urban Regeneration Agency to create English Partnerships, now the Governments’ national regeneration agency. They have recently changed their name to the Homes and
Communities Agency. Argos Limited
Argos forms part of the Home Retail Group who de-merged from its parent company GUS in October 2006. For the year ending 01/03/2008 Argos Limited reported a turnover of £4.099bn a pre-tax profit of £439,987m and a net worth of £1,381,659m. (ICC: 10/02/09). Regus (UK) Limited
The Regus Group is the world’s largest provider of serviced offices operating over 950 business centres across 400 cities in 70 countries.
For the year ending 31/12/2007 Regus (UK) Limited reported a turnover of £114,604,000, a pre-tax loss of £5,512,000 and a net worth of £3,146,000 (ICC: 10/02/09). J D Wetherspoon Plc
For the year ending 27/07/2008 J D Wetherspoon plc reported a turnover of £907,500,000, a pre-tax profit of £54,159,000 and a net worth of
£176,130,000. (ICC: 10/02/09). Six Continents Retail Limited
Six Continents Retail Limited were taken over by Mitchells & Butlers in 2003. Mitchells & Butlers Retail Limited For the year ending 29/09/2007 Mitchells & Butlers Retail Limited reported a turnover of £1,628bn, a pre-tax profit of £163m and a net worth of £2.172 bn. (ICC: 12/02/09). United Business Centres plc
United Business Centres is dedicated to providing serviced office
accommodation and is the winner of two “Business of the Year” awards. The company currently operates in Birmingham, Glasgow, Gatwick, Manchester and Stansted with their headquarters based in Milton Keynes. Their major clients include Abbey National plc, TMP Worldwide, TNT and Exel plc.
For the year ending 30/4/2007 United Business Centres plc reported a turnover of £4,689,000 a pre-tax loss of £677,000 and a net worth of £496,000. (ICC: 10/02/09). Barclays Bank Plc
Barclays Bank Plc guarantee the United Business Centres Plc lease for the year ending 31/12/2007 Barclays Bank Plc reported a turnover of £40.2bn a pre-tax profit of £7.107bn and a net worth of £21.5765bn Hensmans Salons Ltd
For the year ending 31/01/2008 Henmans Salons Ltd did not report a turnover or pretax profits, however they reported a negative net worth of £211,000. (ICC 18/02/09)
Pizza Express (Franchises) Ltd
For the year ending 02/07/2006 Pizza Express (Franchises) Ltd reported a turnover of £765,000 a pre-tax profit of £40,000 and a net worth of £541,000. (ICC: 10/02/09).
Marcellos Ristorante & Pizzeria Limited For the year ending 30/06/2007 Marcellos Ristorante & Pizzeria Limited did not report turnover or pre-tax profits, however they reported a net worth of £45,000. (ICC 13/02/09) Cash-A-Cheque (UK) Limited For the year ending 31/01/2008 Cash-A-Cheque (UK) Limited did not report turnover or pre-tax profits, however they reported a net worth of £136,000.
Gary Paterson t/a PHC
PHC was established in 1994 and is a recruitment specialist in the medical, health, social and childcare division of The Paterson Group. PHC operate from four high street branches across the south of England in Milton Keynes, Bicester, Oxford and Witney.
Teresa Margaret Day T/A Appledore Clinic
Appledore Clinic operates from two locations in the UK; Milton Keynes and Binfield. Both clinics were renamed in April 2008 due to changing from sole trader (Dr Teresa Day) to Limited companies they now trade as Appledore Dental Clinic Binfield and Appledore Dental Clinic Milton Keynes. Ranger Healthcare Ltd
For the year ending 30/06/2008 Ranger Healthcare Ltd did not report turnover or pretax profits, however they reported a negative worth of £65,000.
Midsummer Court Midsummer W est Midsummer East CBXII
tenancy schedule
Floor Tenant Accommodation Current Rent PA(£psf) Lease Start Expiry DateLease Review DateNext Break DateTenant Years Term Certain(yrs.mths) (£psf)ERV Notes (sq ft) (sq m)
Ground Soliddisk Technology Ltd (t/a Black and White) 441 50.0 £11,500 (26.06) 14/06/1991 13/06/2016 14/06/2011 7.4 £10,600 (24.00) Lease sublet to David and Daniel Casey t/a Black and White. Rent deposit of £4,122.86 held. Ground Hensmans Salons Ltd 736 68.4 £15,000 (20.38) 04/12/2006 03/12/2016 04/12/2011 7.10 £17,700 (24.00) The rent for the 4th year of the term will increase to £17,000 p.a. and for the 5th year to £18,500 p.a. Assigned from ESP (Milton Keynes) Ltd. Ground Marcello’s Ristorante Pizzeria Ltd 2746 255.1 £50,000 (18.75) 04/02/1997 03/02/2022 04/02/2012 13 £51,500 (18.75) A rent deposit of £37,500 is held.
Ground Pizza Express (Franchises) Ltd 4170 387.4 £72,500 (17.39) 20/03/1992 19/03/2017 20/03/2012 8.1 £78,200 (18.75) Two separate co-terminus leases at a rent of £51,500 p.a. and £21,000 p.a. respectively. 1st Homes & Communities Agency 12910 1199.3 £170,000 (13.17) 02/04/2004 01/04/2019 02/04/2009 01/04/2014 5.2 180,700 (14.00) The April 2009 break option has not be exercised.
2nd, 3rd and Part Base Homes & Communities Agency 26150 2429.3 £372,026 (14.23) 01/01/2009 31/12/2021 01/01/2014 31/12/2011& 31/12/2016 2.10 372,100 (14.23) Service charge cap of £222,479 relating to 2nd & 3rd floor and £11,759.75 relating to basement area for the year ending 31/03/09. The service charge is recalculated annually linked to RPI.
4th VACANT 6344 589.4 (0.00) 0 £95,200 (15.00)
Sub Total 53,497 4969.9
Ground and 1st Theresa Margaret Day (t/a Appledore Clinic) 1661 154.3 £23,300 (14.03) 23/05/2004 22/05/2014 23/05/2009 5.3 £24,500 (14.70)
Ground Cash-a-Cheque (UK) Ltd 1205 111.9 £20,500 (17.02) 05/09/2007 04/09/2017 03/03/2012 8.7 £28,900 (24.00) Stepped rental increases from 03/03/09 to 02/03/10 - £22,000. From 03/03/10 to 02/03/11 - £24,000 p.a. From 03/03/11 to 02/03/12 - £25,000 p.a. Service charge is capped at £10,245 p.a. up to the 5th year. Ground Agency 2000 Ltd (t/a MEM recruitment) 694 64.5 £16,000 (23.07) 24/09/2006 23/09/2016 24/09/2011 23/09/2011 2.7 £16,700 (24.00) The lease is contracted outside the Landlord & Tenant 1954 Act.
3 car spaces Agency 2000 Ltd £3,150 18/09/2008 23/09/2016 7.7 £3,150
Ground Ranger Healthcare Ltd (t/a Hammond & Dummer) 2528 234.9 £39,000 (15.43) 19/07/2004 18/07/2022 14/07/2007 13.5 £60,700 (24.00) Rent deposit of £13,201.86 is held. Proposed rent of £43,000 p.a. for the rent review dated 14/07/07. Ground Gary Paterson Limited (t/a PHC) 420 39.0 £10,000 (23.81) 23/10/2008 22/10/2018 23/10/2013 21/10/2013 4.8 £10,100 (24.00)
Ground and 1st Vinci Park Services (UK) Ltd 1703 158.2 £24,000 (14.09) 20/09/1999 19/09/2009 0.7 £23,700 (14.37) Mezzanine (Unit No 382) Argos Ltd 6682 620.8 £90,000 (13.47) 02/03/2007 23/12/2011 2.10 £93,500 (14.00) 1st and 2nd Argos Distributors Ltd 26595 2470.7 £346,000 (13.01) 11/08/1997 23/12/2011 2.10 £372,300 (14.00) 3rd and 4th Regus (UK) Ltd 16580 1540.3 £212,000 (12.79) 21/10/1997 20/10/2012 3.7 £232,100 (14.00) 15 car spaces Regus (UK) Ltd £15,570 01/01/2008 31/12/2012 3.10 £15,570
Part basement VACANT 672 62.4 (0.00) 0 £1,680 (2.50) Formerly used as storage space
Sub Total 58,068 5394.5
Ground and 1st JD Wetherspoon PLC 3919 364.1 £90,000 (22.96) 24/06/2001 23/06/2036 24/06/2011 24/06/2021 12.5 £90,000 (22.96)
Ground and 1st VACANT 4795 445.5 (0.00) 2.0 £110,100 (22.96) Intrest from a number of A3 operators. Ground Mitchells & Butler Retail Ltd (t/a All Bar One) 5461 507.3 £106,000 (19.41) 24/01/2000 23/01/2025 24/01/2010 15.11 £125,400 (22.96)
1st and 2nd United Business Centres plc1 22302 2071.9 £388,707
(17.43) 11/05/2000 10/05/2020 11/05/2010 11/05/2015 6.3 £379,100 (17.00) All rental payments including service charge and insurance up to £388,707 reserved in the Lease are guaranteed by Barclays Bank plc 22 car spaces United Business Centres plc £19,250 01/01/2008 31/12/2011 2.11 £19,250
Sub Total 36,477 3388.7
Electricity Sub-Station East Midlands Electricity PLC 25/10/1996 24/10/2017 8.8
Electricity Sub-Station Powergen Energy PLC £10 11/05/2000 10/05/2025 16.3 £10
Totals 148,042 sqft 13,753 sqm £2,094,513 £2,412,760
MEM Recruitment Cash-a-Cheque Appledore Clinic Pizza Express Reception & Lift Lobby Reception & Lift Lobby Marcello’s Ristorante Pizzeria Hammond & Dummer Hensmans Salons Black & White PHC Stairs Vinci Park Services Reception & Lift Lobby JD Wetherspoon plc All-Bar-One Vacant
Ground Floor
new Milton Keynes developments
and market commentary
Milton Keynes is set for significant future growth with plans for the city to double in size and is projected to become the 14th largest city in the United Kingdom by 2031. With total office accommodation of over 7 million sq ft Milton Keynes has suffered from a lack of supply, especially in terms of Grade A accommodation. With it’s restricted supply and the on-going expansion of the City, it is expected that rents at all levels will increase over the medium term.
This restricted supply and increasing demand has seen a number of developments across all sectors. A number of comparable transactions are listed below.
the hub:mk which is a new and substantial mixed use development built by Frontier Estates is located immediately adjacent to the subject property on Midsummer Boulevard. There were two notable office pre-lets agreed in May 2007 when 848 sq m (9,130 sq ft) was pre-let to Davis Langdon LLP and 687 sq m (7,395 sq ft) was pre-let to HSBC both for 15 year terms at rents equating to £215 per sq m (£20 per sq ft).
The development provides 75,000 sq ft of retail and leisure accommodation and 100,000 sq ft of office accommodation and also
includes two hotels, Jurys Inn and Encore and 400 high quality plus affordable residential units. Due to its success it has attracted leisure operators such as Brasserie Blanc, Loch Fyne, Café Rouge, DimT, Zizzi and Nando’s.
The catering units within the hub:MK have been consistently achieving between £25-£30 per sq ft over the ground floor and £10 per sq ft for trading at 1st and mezzanine floors. The latest letting was to The Living Room where £30 per sq ft on the ground floor and £10 per sq ft on the 1st floor was achieved within the past 12 months. Frontier Estates are currently working on hub:MKII, the second phase to the adjacent scheme. The development will be located to the rear of CBXII and is planned to provide office and residential accommodation.
the Pinnacle is a new Grade A flagship office development developed by Hampton Brook, located on Midsummer Boulevard, it is expected to be
completed by summer 2009. It will provide the largest office
development in Milton Keynes for 25 years. The scheme will provide a 18,850 sq m (200,000 sq ft) office building. Two pre-lets have been agreed accounting for 40% of the total space to international professional service occupiers at rents equating to £188 per sq m (£17.50 per sq ft).
Other lettings in and
around Milton Keynes:
The Rok Developments scheme at Eastlake Park, located to the east of Milton Keynes city centre comprises approximately 13,935 sq m (150,000 sq ft) of office accommodation. Valois UK Ltd recently took accommodation on the park at £188 per sq m (£17.50 per sq ft), with other transactions regularly achieving £177 per sq m (£16.50 per sq ft).
Wavendon Business Park is a new business park development. A pre-let was signed in May 2007 by Electronic Data Systems who will fully occupy the park. The park comprises approximately 13,000 sq m (140,000 sq ft) and the rent agreed equates to £183 per sq m (£17 per sq ft).
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Woodlands Business Park, situated in Linford Wood which is approximately 6.4 km (4 miles) to the north west of central Milton Keynes provides approximately 11,150 sq m (120,000 sq ft) of high specification offices. We understand that achieved rents are approximately £183 per sq m (£17 per sq ft).
Other developments:
West End CMK phase I, will front Witon Gate and Avebury Boulevard. The development will provide two public squares and approximately 650 homes, a new school,
community facilities and a range of commercial and leisure uses.
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Jury’s Inn Hotel and Encore Hotel at the hub:
The building provides numerous asset management opportunities these include: Let the vacant office and leisure accommodation
Re-gear existing leases in both the office and retail accommodation Re-configure entrance, lobby plus reception areas
Implement a rolling refurbishment program of the common parts and office accommodation
Continue the ongoing maintenance programme
Utilise lobby areas by introducing additional amenity space Possibility of extending fourth floor office accommodation • • • • • • •
asset management
opportunities
service charge
The building is also currently undergoing major refurbishment renovations. In 2008 the roof of Midsummer East and West underwent major works and significant works for 2009 include:
Midsummer East and West will see the replacement of one of the atriums this year and one next year.
Two sets of boilers located in Midsummer East and West will be replaced.
Tenders are currently being reviewed for the refurbishment of all 8 lifts within CBX II.
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For the year ending 31 March 2009 the service charge budget is as follows:
midsummer Court
Office: £3.73 psf Leisure: £10.54 psf
midsummer east & West
Office: £10.75 - £12.15 Leisure & Retail: £10.75
For the year ending 31 March 2010 the service charge budget is estimated to be as follows:
midsummer Court
Office: £2.47 Leisure: £2.29
midsummer east & West
Office: £11.35 – £12.12 Leisure & Retail: £10.69
For the year ending 31 March 2010 the service charge budget excluding exeptional items is estimated to be as follows:
midsummer Court
Office: £2.43 psf Leisure: £2.29 psf
midsummer east & West
Office: £7.13 - £7.88 Leisure & Retail: £6.50
vat
The property is elected for VAT and therefore VAT will be payable on the purchase price.
Scott Tyler
020 7543 6719
[email protected] Andy Pointon020 7543 6720
[email protected] Will Dalton020 7543 6707
[email protected]proposal
We are instructed to seek offers in the region of £22,000,000 (Twenty Two
million pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive capital value of
£148 psf
and
the following yield profile after allowing for purchaser’s costs of 5.725%.
o Net initial yield
9%
o Reversionary yield
10.37%
o Equivalent yield quarterly in advance
10.88%
o Equivalent yield annually in arrears
10.21%
o Reversionary yield in say March 2010 upon letting vacant units
and imminent rent reviews
10.14%
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Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. 02.09