7&8 CLARENDON DRIVE MILTON KEYNES, MK8 8ED - TWO FREEHOLD REVERSIONARY LOW RISE MULTI LET OFFICES - Finn & Company
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7&8 CLARENDON DRIVE
MILTON KEYNES, MK8 8ED
T W O F R E E H O L D R E V E R S I O N A R Y L O W R I S E M U LT I L E T O F F I C E S
W I T H F U T U R E D E V E L O P M E N T P O T E N T I A L
7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 2
INVESTMENT SUMMARY
• Situated 2 miles from Milton Keynes town centre • 4.25 years AWULT to break and 7.17 years to expiry
• Two single storey detached office buildings constructed in the 1980s • In 2016 (unit 7) and 2018 (unit 8) there was a complete replacement of the air-conditioning
systems
• Totals 40,512 sq ft
• Medium term development potential, subject to planning
• Freehold
• Offers in excess of £5,200,000 (FIVE MILLION, TWO HUNDRED THOUSAND POUNDS),
• Total site area of 4.55 acres
subject to contract and exclusive of VAT
• Low site cover of 29%
• A purchase at this level reflects a net initial yield of 8.62% and a reversionary yield
• 185 parking spaces, providing an excellent ratio of 1:219 sq ft of 9.68% based on ERV, allowing for purchaser's costs of 6.60%
• 100% occupied and multi let to 5 tenants producing a total rent of £477,879 pa • The price reflects a low capital value of £128 psf
equating to a low average rent of £11.80 psf
• New ERV established following completion of recent letting at £13.25 psf
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7. Caxton Industrial Estate
8. VW Group National
Learning Centre
9. Clarendon Industrial Park
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JUNCTION
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LOCATION
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SITUATION
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The property occupies the southern most point of the Wymbush Estate to the west of the town 15 centre. The
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7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 5 COMMUNICATIONS Milton Keynes is strategically located to benefit from excellent road connections. It is situated adjacent to Junction 14 of the M1 Motorway and the A5 trunk road. LOCATION DISTANCE JOURNEY TIME M1 Motorway (J14) 2 miles 6 mins M25 Motorway (J64) 34 miles 37 mins Central London 54 miles 1 hr 30 mins Birmingham 71 miles 1 hr 15 mins Cambridge 46 miles 1 hr 7 mins Oxford 41 miles 1 hr 5 mins Milton Keynes Central Station, offers a wide range of direct destinations. LOCATION JOURNEY TIME Northampton 15 mins Coventry 29 mins London Euston 30 mins Birmingham New Street 55 mins Manchester Picadilly 1 hr 38 mins All London Airports are located within an hour and a half drive of Clarendon Drive with London Luton only a 40 minutes drive. LOCATION DISTANCE JOURNEY TIME London Luton 27 miles 40 mins London Heathrow 50 miles 1 hr 10 mins London Gatwick 90 miles 1 hr 30 mins
7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 6
DESCRIPTION
The site comprises of two single storey detached office buildings
constructed in the 1980s. The buildings are of steel frame construction
with predominantly glazed elevations and a flat roof.
The properties provide a total of 40,512 sq ft. There are 185 car parking
spaces providing an overall ratio of 1:219 sq ft.
Both units are of similar configuration being predominantly open plan
around a central core.
In 2016 (unit 7) and 2018 (unit 8) the air-conditioning systems were
replaced.
TENURE
Freehold.
8 Building No. 8
7
For illustrative purposes only
7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 7
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7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 8
ACCOMMODATION & TENANCY
The property is fully let to 5 tenants in accordance with the tenancy schedule below, producing a total rent of £477,879 pa, with a WAULT of 7.17 years to expiry and 4.25 years to break options.
NET LEASE LEASE INSIDE/ NEXT RENT BREAK CREDIT
PARKING RENT RENT
TENANT UNIT LETTABLE START EXPIRY OUTSIDE REVIEW DATE ERV P.A ERV PSF SAFE COMMENTS
SPACES P.A PSF
AREA (SQ FT) DATE DATE ACT DATE (LL/T) RATING
Stepped rent as follows:
Feb 2019 - Feb 2020: £136,084 p.a.
Mirus IT 05-Feb-21
Unit 7A 12,659 55 05-Feb-16 04-Feb-26 Inside 05-Feb-21 £139,249 £11.00 £167,731 £13.25 95 Feb 2020 - Feb 2021: £139,249 p.a.
Solutions Ltd (T)
Vendor to top up.
Break option subject to 6 months notice.
6 months rent free and 12 months half rent.
National 24-Jun-24
Unit 7B 10,606 64 24-Jun-19 23-Jun-29 Inside 24-Jun-24 £140,530 £13.25 £140,530 £13.25 70 Vendor to top up.
Locums Ltd (T)
Break option subject to 6 months notice.
Service charge capped at £4.00 psf.
Stepped rent as follows:
Lucid
June 2019 - June 2020: £40,000 p.a.
Support Unit 8A 4,887 22 01-Jun-17 31-May-22 Outside £60,000 £12.28 £64,753 £13.25 52
June 2020 - June 2021: £50,000 p.a.
Services Ltd
June 2021 - May 2022: £60,000 p.a.
Vendor to top up.
Verify
Unit 8B 4,260 14 26-Nov-17 25-Nov-22 Outside £49,000 £11.50 £56,445 £13.25 84 Service charge cap: £4.00 psf.
Europe Ltd
RFE Europa
Unit 8C 8,100 30 28-Mar-13 27-Mar-28 Outside 28-Mar-23 £89,100 £11.00 £107,325 £13.25 56
Ltd
TOTAL 40,512 185 £477,879 £11.80 £536,784 £13.25
Creditsafe rating (out of 100) * 71 - 100 Very Low Risk | 51 - 70 Low Risk | 30 - 50 Moderate Risk | 21 - 29 High Risk | 1 - 20 Very High Risk
Building No. 8
7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 9
COVENANT INFORMATION
Mirus IT Solutions Ltd (04569266) Verify Europe Ltd (SC187289)
Mirus IT Solutions Ltd was founded in 2002 and provides award winning strategic IT, Telephony and Managed Verify Europe are part of the Verify Group of companies, who have for almost 40 years been supporting
Print services and support to companies of all sizes from a wide range of industries including financial services, the global aerospace, defence and high technology industries. Operating in over 40 countries, Verify delivers
marketing, recruitment and education. They have over 100 employees and also have strong relationships with supplier performance management solutions through three main service categories, those being; supplier
many industry leading companies including Gamma, Vodafone, EE, Olivetti and Develop and are a Microsoft performance management, engineering services and technical resources.
Gold Competency Partner. Mirus’s HQ is based in Milton Keynes.
Year to Date Turnover Pre-Tax Profit Shareholders Funds
Year to Date Turnover Pre-Tax Profit Shareholders Funds 31/10/2017 - - £2,924,656
31/10/2018 £8,980,338 £456,883 £1,238,732 31/10/2016 - - £2,485,944
31/10/2017 £7,576,817 £310,968 £1,178,491 31/10/2015 - - £1,993,673
31/10/2016 £7,352,202 £346,201 £1,106,670
National Locums Ltd (06808451) RFE Europa Ltd (07162852)
National Locums was established by brothers David and Glenn Cook and is one of the World’s leading, RFE Europa Ltd are part of RFE International who are a global sports and fitness company specialising in the
and fastest growing, specialist recruitment companies, supplying locum doctors and nurses to NHS and design, manufacture, marketing and sales of fitness equipment to both the commercial and home markets.
independent hospitals throughout the UK. National Locums currently employ up to 200 people. RFE cover more than fifty countries worldwide and currently operate their HQ from the Milton Keynes office.
Year to Date Turnover Pre-Tax Profit Shareholders Funds Year to Date Turnover Pre-Tax Profit Shareholders Funds
28/02/2018 £17,771,921 £234,034 £478,382 30/06/2018 £19.894,121 £2,305,814 £4,592,017
28/02/2017 £19,228,166 £290,112 £559,187 30/06/2017 £22,384,723 £38,035 £2,286,203
29/02/2016 - - £633,446 30/06/2016 £21,287,881 £196,448 £2,238,276
Lucid Support Services Limited (04419473)
Lucid was founded in 2002 and is an established, reliable and trusted IT Employment Services and IT Project
Delivery provider throughout the UK and parts of Europe. They currently employ up to 50 employees and
supply specialist qualified and certified IT Professionals for interim, project, temporary, back-fill and executive
level roles. Lucid’s HQ is based in Milton Keynes.
Year to Date Turnover Pre-Tax Profit Shareholders Funds
31/03/2019 - - £558,612
31/03/2018 - - £351,780
31/03/2017 - - £217,354
7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 10
FLOORPLANS
Unit 7 Unit 8
RAMP
RECEPTION
FtoC=2865
RAMP
Up
FEMALE
SHOWER CL.
MALE
Verify
Europe Ltd
TELECOMS
(Unit 8B)
PLANT ROOM
SHOWER
Mirus DIS.
(Unit 7A) MALE
FEMALE RAMP
RFE
National Europe
Locums (Unit 8C)
(Unit 7B)
Up Up Lucid
(Unit 8A)7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 11
Building No. 7A CITY OF GROWTH 7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 12
MILTON KEYNES – A CITY OF GROWTH
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GROWTH TABLE
Keynes include: phase two w The collaborative
2.80%
environment allows
2.80%
innovative local firms to partner alongside global giants on nationally.
next
scheduled for completion in March 2019.
The cities future growth is being driven by RegenerationMK, a government body which is providing a £500m programme of investment w Milton Keynes is a young and dynamic city with 48% of the population under 35 years old compared to 37%
in housing, public space and access to skills and employment. This has included the first phase of a new £130m rail link into London generation technologies. 2.70% 2.70%
Marylebone which completed in October 2015 with phase two scheduled for completion in March 2019.
World class occupiers located in Milton Keynes include: The cities future growth World leading
being names
driven include Red Bull Racing,
Top 5 Fastest Expanding Cites by GVA Growth
w is by RegenerationMK,
2.60% a 2.60% Honda F1, Prodrive,
government body whichAG Barr and Coca-Cola.
is providing a £500m programme of investm
2.80%
World class occupiers located in Milton Keynes include:
in housing, public space and access to skills and
2.50%
employment. 2.50%
This has included the first phase of a new £130m rail link into London
2.70%
Marylebone which completed in October
SANTANDER 2015HUB
UK TECH with phase two scheduled for completion in March 2019.
2.40% 2.40%
2.60%
Cambridge Milton Manchester
Cambridge Inner
Milton Coventry
Manchester Inner Coventry
Santander will be opening a new London
Keynes
2.50%
London Keynes
World class occupiers located state-of-the-art
in Miltonfacility
Keynes in 2022,
include:
2.40%
known as their UK Tech Hub,
ATTRACTING KEY GROWTH SECTORS: Cambridge Milton
Keynes
Manchester
to be located
Inner Coventry
opposite Milton
London
“BETWEEN 2010“BETWEEN AND 2016,2010 MILTON
ANDKEYNES2016, MILTON KEYNES Keynes Central train “HIGHLY
station. SKILLED
“HIGHLY
LABOURSKILLED
POOL LABOUR
WITH POOL WITH
A new index aimed at identifying the UK’s most active techBASE
BUSINESS innovation citiesBY
BUSINESS
GREW was launched
BASE
34%” GREW in Q3 BY2017
34%”by The 60% QUALIFIED60% TO DEGREE
QUALIFIEDLEVEL”TO DEGREE LEVEL”
Open Data Institute and Digital Catapult. The Tech Hub will accommodate
“BETWEEN 2010 AND 2016, MILTON KEYNES “HIGHLY SKILLED more thanPOOL
LABOUR 5,000 staff
WITH and will
The UK Tech Innovation Index unsurprisingly
24 identified London,
24 Edinburgh and Manchester as the three most be Santander's new world class 25
BUSINESS BASE
tech innovative cities,GREW BY 34%”(6th), Milton Keynes (8th) and Oxford (9th) were all were
whilst Cambridge 60%placed
QUALIFIED
in the TO DEGREE LEVEL”
digital hub workplace.
top 10 positions.
24 25
The index is intended to inform private and public decision makers when making investment and growth
decisions.
CGI7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 13
MILTON KEYNES OFFICE MARKET THE GROWTH CORRIDOR
OVERVIEW The UK government has forecast the ‘growth corridor’ encompassing Oxford, Milton Keynes and Cambridge
Milton Keynes is one of the most active markets in the South East, with increasing rents, strong demand and a as the top 3 locations in the UK for economic expansion. Targeted infrastructure improvements will facilitate
welcome return of development. With the town set to benefit from key transport infrastructure improvements, the delivery of 1,000,000 homes and 950,000 new jobs in this corridor by 2050, estimated to increase
the fundamentals for continuing rental growth and inward investment are in place over the short and medium economic output by £163bn.
term, both in town and out of town.
This will include a new Oxford to Cambridge Expressway road link via Milton Keynes, construction of which is
TAKE-UP due to commence 2021/2022. Further plans for the East West rail link have also been announced, which will
Take-up was strong in 2018, with 12 month with a take-up figure of 12% above the 10 year average. The TMT re-establish a rail link between Oxford and Cambridge, also via Milton Keynes.
sector continues to contribute to a growing occupier base, accounting for a number of the key deals in the last
12 months. Milton Keynes also continues to see inflows of occupiers relocating from London who are attracted by At the heart of the corridor, Milton Keynes is uniquely placed to benefit from future growth, with the Council’s
significantly lower occupational costs, strong connectivity and access to a highly skilled workforce. MK Futures 2050 commission aiming to double the size of the city by 2050 through the delivery of six big
projects.
SUPPLY
There is currently only 2.3 years supply in Milton Keynes, indicative of a 5 year consecutive reduction in availability,
in part due to the continued depletion of stock through PDR schemes.
A1 A14
A423 M1 NORTHAMPTON
ST NEOTS
RENTAL GROWTH
A5 CAMBRIDGE
CAMB
MB
A421
BEDFORD
A429 M40 M11
A413 A1
This lack of Grade A stock and healthy levels of occupier demand has put upward pressure on headline rents,
now standing at £27.50 per sq ft, marking a 22% increase on the previous level. This favourable demand-supply
dynamic paired with forecasts for substantial economic growth and infrastructure improvements bodes well for MILTON KEYNES A6
A
UCKINGHAM
UCK
BUCKINGHAM
future rental growth in Milton Keynes. A421
BLETCHLEY M1
M
Notable and recent lettings include:
A10
A361 A44
SIZE LEASE RENT A41
41 A418
DATE PROPERTY TENANT
(SQ FT) LENGTH (PSF)
M40
0 M1 A1(M)
Q2 2019 Ashton House, Silbury Boulevard Viva Wallet 7,008 5 £19.50 A40
Q1 2019 The Pinnacle, Midsummer Boulevard Technip 19,500 5 £21.50 OXFORD
M25
Q4 2018 100 Avebury Boulevard Shoomiths 19,800 15 £27.50 A420
ABINGDON
ABIN
N M25
M11
Q4 2018 Ashton House, Silbury Boulevard CityFibre 10,279 5 £18.00 A34 A4074
M40
O
DIDCO
DIDCOT
Q3 2018 100 Avebury Boulevard Spaces 47,000 12 £25.00
Q3 2018 7 St Annes, Caldecotte Lake Computacentre 10,115 5 £19.50
M4
Q2 2018 Bank House, Midsummer Boulevard Xero 7,000 5 £22.50 READING LONDON
M4
We believe that the property is highly reversionary following the recent letting to National Locums Limited (Unit NEWBURY M3
7B) at £13.25 psf. This has consequently established the rental tone for the remainder of 7 and 8 Clarendon Drive.7&8 CLARENDON DRIVE, MILTON KE YNES MK8 8ED 14
SOUTH EAST MULTI-LET OFFICE INVESTMENT TRANSACTIONS
Investment volumes in the south east office market remain resilient as a result of the robust fundamentals, improving occupational backdrop and prospects for rental growth. The sector remains a target for both domestic
institutions and property companies while overseas buyers have also recognised the relative attractiveness of regional investment.
DATE ADDRESS SQ FT WAULT SALE PRICE (£) PRICE (£ PSF) NET INITIAL YIELD PURCHASER
TO EXPIRY (%)
(TO BREAK)
Jun-19 Bell House, Milton 10,965 5.2 years £2,925,000 £266 7.27% South Somerset District
Keynes Council
Apr-19 Eskan Court, Milton 24,958 6.9 years £5,675,000 £227 6.62% Adur District Council
Keynes
Mar-19 Theta Building, Frimley 51,575 10.2 years £13,500,000 £262 7.74% Surrey Heath Council
(4.4 years)
Mar-19 Noble House, Milton 20,299 3.5 years £3,625,000 £179 7.15% Salaft Properties Ltd
Keynes (2.5 years)
Mar-19 Building A, Watchmoor 22,124 6.6 years £4,570,000 £207 8.50% London & County
Park, Camberley Estates
(2.4 years)
Sep-18 Medway Bridge House, 38,814 8.96 years £7,400,000 £191 7.64% Eskmuir Properties Ltd
Maidstone
(4.9 years)
Aug-18 Melita House, Chertsey 13,980 4.2 years £4,720,000 £338 7.05% Squarestone
(2.6 years)
Jul-18 Silbury Court, Silbury 78,545 6.30 years £12,580,000 £160 7.68% Shaviram
Boulevard (Net Price)
(3.57 years)SERVICE CHARGE
The service charge budget for the year ending 31/12/2019 was £112,780, equating to £2.78 psf.
EPC
Unit 7 has an EPC rating of C (61).
Unit 8 has an EPC rating of E (110). We are expecting the EPC rating to improve following the air-
conditioning upgrade in 2018. A new EPC has been commissioned.
VAT
Mathew Finn Ali Rana
It is envisaged that the property will be treated as a Transfer of a Going Concern for VAT purposes.
mathew@finnandcompany.co.uk ali@finnandcompany.co.uk
Charles Curtis Tom Kerins
charles@finnandcompany.co.uk tom@finnandcompany.co.uk
CAPITAL ALLOWANCES
Capital allowances may be available. Further information available upon request.
1 Portland Place
London W1B 1PN
PROPOSAL
Tel: 020 7631 1202
www.finnandcompany.co.uk
Offers in excess of £5,200,000 (FIVE MILLION, TWO HUNDRED THOUSAND POUNDS), subject to
contract and exclusive of VAT.
A purchase at this level reflects a net initial yield of 8.62% and a reversionary yield of 9.68%
based on ERV, allowing for purchaser's costs of 6.60%.
The price also represents a low capital of £128 psf.
Misrepresentation Act: Finn & Company for themselves and for the vendors of these properties whose agent they are give notice that:1. These
particulars do not constitute, nor constitute any part of the offer for sale or contract for sale. 2. All statements contained in these particulars
as to these properties are made without responsibility on the part of Finn & Co or the vendors or lessors. 3. None of the statements contained
in these particulars as to these properties are to be relied on as statements or representations of fact. 4. Any intending purchasers must
satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 5. Any plans or
FURTHER INFORMATION
photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the properties. The plans are
photographically reproduces and therefore not to scale except where expressly stated. The plans or photographs or drawings are not intended
to depict the interest to be disposed of. Where location plans are based on Ordnance Survey maps this is with the consent of HM Stationery
Office, Crown Copyright Reserved. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items
expressed to be included in the sale. 7. Any properties or drawings of the relevant properties or part thereof or the neighbouring areas may not
depict the properties or the neighbouring areas at the date a prospective purchaser or tenant inspects the brochure. Prospective purchasers
For further information, please do not hesitate to contact one of the Finn & Company team. or tenants are strongly advised to inspect the properties and neighbouring areas. 8. Finn & Company have not measured the properties and
have relied upon clients information. Therefore Finn & Co give no warranty as to their correctness or otherwise and the purchasers must rely on
their own measurements.9. All terms quoted are exclusive of value added tax unless otherwise stated. 10. The vendors do not give and neither
Inspections are strictly by appointment only. Finn & Co nor any person in their employment has any warranty whatsoever in relation to these properties. 11. These details are believed
to be correct at the time of compilation but may be subject to subsequent amendment. 12. These details were prepared as of JULY 2019
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