A PROMINENT HQ OFFICE INVESTMENT IN THE HEART OF SOUTHAMPTON - 10-12 BRITON STREET SOUTHAMPTON SO14 3EB - Rightmove
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10-12 BRITON STREET SOUTHAMPTON SO14 3EB A PROMINENT HQ OFFICE INVESTMENT IN THE HEART OF SOUTHAMPTON
02
BRITON HOUSE
10-12 BRITON STREET
SOUTHAMPTON • SO14 3EB
INVESTMENT
SUMMARY
• Southampton City, is the principal
commercial and administrative centre on
the South Coast, strategically located 80
miles south-west of London and 20 miles
north-west of Portsmouth
• A prominent self-contained HQ office
totalling 21,681 sq ft (2,014 sq m) located
in the centre of Southampton City
• 44 car parking spaces providing an excellent
Southampton Central parking ratio of 1:493 sq ft
• Let to the strong covenant of D Young
& Co LLP, a law firm who have been
in occupation since construction
(Over 20 years)
• The unexpired term provides 3.75 years
term certain
• The tenant has not exercised the recent
May 2021 break option
• Current passing rent £310,000 per annum
• Very low passing rent equating to £14.30
per sq ft, reflecting 54% discount from
prime Southampton rents
• Freehold
• Potential to increase on-site massing
subject to planning
Offers are sought in excess of £3,850,000
(Three million, eight hundred and fifty
thousand pounds), subject to contract and
exclusive of VAT. A purchase at this level
reflects attractive Net Initial Yield of 7.56%,
a Net Reversionary Yield of 9.50% (Assuming
£18 per sq ft ERV) and a Capital Value of
£178 per sq ft after allowing for acquisition
costs of 6.53%.
The purchase price is materially below
replacement cost.
Oxford
Cirencester
03
M25
BRITON HOUSE
A419 M1
M5 M40 10-12 BRITON STREET
M4 Swindon
A429 A34 SOUTHAMPTON • SO14 3EB
Maidenhead A40
M4
M32 Chippenham Reading LONDON
Bristol
A33 A232
M20
A36 A338
A339 M25
LOCATION A371
Frome
Andover
Basingstoke
A331
Guildford
A22
CONNECTIVITY
A303
Southampton is regarded as the main A36 A31 M23 Southampton benefits from excellent CAR
commercial and administrative centre on M3 A3 communications via road, rail and air.
Crawley London 1 hr 55 mins
the South Coast with an economy estimated A303 The city is strategically positioned to provide
Salisbury Bristol 1 hr 50 mins
to be worth £7.7 billion. The city occupies a A23 easy access to the UK motorway network
strategic position 80 miles (128 km) south A350 A36 Winchester A272
with the M27 junction 3, 5.5 miles (8.8 km) Reading 1 hr 12 mins
A354
west of Central London, 20 miles (32 Yeovil
km) M27 to the west and M3 junction 14 just 3.7 miles Portsmouth 34 mins
north west of Portsmouth and 10 miles (16 (5.9 km) to the north of the city centre.
km) south of Winchester. Southampton M27
A3(M)
Brighton TRAIN
Chichester Rail communications are excellent with
A17 Portsmouth
Southampton has a population of 256,000 A31 A338 frequent services to London Waterloo and London (Waterloo) 1 hr 19 mins
Lymington
with approximately 1 million people within Bournemouth Isle direct trains across both the south east and
Bristol 1 hr 38 mins
10-mile (16 km) radius of the city centre. of Wight UK with destinations including Portsmouth,
Reading 49 mins
The city benefits from the presence of two Cardiff, Reading, Oxford, Birmingham,
universities, the University of Southampton and Manchester. Portsmouth 43 mins
and Solent University home to a combined Southampton Airport 7 mins
Southampton Airport is located 4 miles
43,000 students.
(6.4 km) north east of the city centre providing
Southampton is renowned as the busiest Southampton Cultural NORTHAM access to 29 national and international PLANE
Central Station Quarter A3024
cruise terminal and second largest container destinations. The airport currently handles Edinburgh 1 hr 20 mins
port in the UK with over £40 billion in annual 2 million passengers annually with significant Dublin 1 hr 35 mins
KINGSWAY
exports. Consequently, the city has seen WESTERN ESPLANADE expansion planned including a 164-meter
CHAPEL Jersey 50 mins
significant inwards investment in recent years. runway extension to allow for long haul flights.
West Quay PALMERSTON RD Berlin 2 hrs 5 mins
hen
Shopping Centre
Geneva 1 hr 30 mins
r Itc
MARINE
SITUATION HIGH ST PARADE
Rive
A33 ST MARY’S PL
Briton House is situated within Southampton
CITY QUEENSWAY
city centre at the junction of Briton Street CENTRE
and Orchard Place, in close proximity to the
city’s main shopping and leisure destinations.
Westquay Shopping Centre is situated a
short walk to the north with Ocean Village OXFORD ST A3025
to the south comprising a yacht filled marina
surrounded by shops, restaurants, bars, and TOWN QUAY
a cinema. In addition, Southampton Central
A33
Station is easily accessible via local bus
Ri QUEENS PARK
services or 20 minutes on foot. ve
rT Ferry Terminals
es
Click here for Google street view. t
OCEAN
VILLAGE
04
BRITON HOUSE
10-12 BRITON STREET
SOUTHAMPTON • SO14 3EB
DESCRIPTION TENURE
Briton House is a modern five-storey Freehold.
office building, constructed in the early
2000’s totalling 21,681 sq ft (2,014 sq m).
The property has brick elevations with a
pitched slate roof. Internally the property
benefits from a double height glazed
TENANCY
entrance, suspended ceilings, raised floors, The property is let in its entirety to D Young & Co LLP on an FRI lease
air conditioning and two passenger lifts. for a term of 10 years expiring on 1st May 2025, providing 3.75 years
term certain. The tenant recently underscored its commitment to
The property provides 44 secure car parking the building by not exercising the May 2021 break option.
spaces that are configured on ground and
lower ground floor level, providing The current passing rent is £310,000 per annum equating to
an appealing ratio of 1:493 per sq ft. a very low £14.30 per sq ft and reflecting a 54% discount from
Southampton’s prime headline office rents.
The tenant has been in occupation over 20 years and since
FLOOR AREAS construction in c.2000.
The property provides the following areas:
Floor NIA (Sq ft) NIA (Sq m)
D Young & Co LLP is a leading top-tier European legal intellectual
Ground 1,170 108.70 property practice which has been established for over 125 years. The
firm provides legal services to an international client base spanning all
First 4,494 417.50
industry sectors including academic institutions, blue-chip and global
Second 5,172 480.49 organisations, research institutes, start-ups and SME’s.
The company has over 200 employees including over 50 qualified
Third 5,110 474.73
attorneys and solicitors based in London, Munich and Southampton.
Fourth 5,115 475.20 Below is a summary of the last three years audited accounts for
←
D Young and Co LLP.
Total 21,681 1,956.62
Year to
Turnover
Pre Tax Shareholder’s
Employees INDICATIVE
Date Profit Funds FLOORPLAN
SITE 31/03/2020 £56,100,863 £15,839,675 £13,112,734 205
The site area extends to circa 0.3 acres.
31/03/2019 £55,201,730 £16,334,407 £13,806,402 188
31/03/2018 £47,538,745 £13,605,594 £11,280,289 187
Site plan for indicative purposes only
05
BRITON HOUSE
10-12 BRITON STREET
SOUTHAMPTON • SO14 3EB
MARKET COMMENTARY:
SOUTHAMPTON OCCUPATION MARKET SOUTHAMPTON OFFICE TENANTS INCLUDE:
Southampton is the principal commercial centre on the The on-going lack of quality town centre stock has
south coast, supporting a diverse range of occupiers resulted in developers focusing on the refurbishment of
dominated by the Professional & Business services sector existing offices in schemes such as those at Town Quay
which has accounted for the largest proportion of take- and Grosvenor Square, where prime headline rents have
up in recent years. Key office occupiers in Southampton been achieved. Current headline rents stand at £22.50 psf
include; Ageas, HSBC, PwC, Carnival, Aviva, Capita, with the letting of 17,800 sq ft at Beresford House in Q2
Quilter and BT. 2019 to Starling Bank which pushed rents forwards from
£21.00 psf.
Take up in Q1 2021 was one of the strongest on record
totalling nearly 60,000 sq ft. . New headline rents are starting to be achieved within the
city centre, with the refurbishment of Brunswick Gate
Availability in Southampton in 2020 totalled 248,000 sq ft
where quoting headline rents have now reached £25
representing a vacancy rate of just 4.9% significantly lower
per sq ft.
than the wider South East Region and 5-year average for
the city at 7.5%. Southampton has experienced significant rental growth
over recent years and this is expected to continue with
the increasing pressures on office supply. Current figures
indicate that that rental growth in Southampton will
significantly outperform the South East average.
Recent occupational transactions within Southampton include the following:
Area Headline
Property Date Tenant Terms
(sq ft) Rent PSF
Briton House 21,681 £14.30 D Young & Co LLP Subject Property
Imperial House Apr-21 9,570 £20.79 Cambridge Education Group 5 year term with break in year 3
Mountbatten House Mar-21 11,853 £22.50 Mott Macdonald 10 year term
Frobisher House Feb-21 23,740 £20.00 Instant Offices (DWP) 5 year term
10 year term break in year
Mountbatten House Jan-21 6,737 £19.75 Valuation Office Agency
5 with 12 months rent free
11 The Avenue Jan-21 4,406 £20.00 InComm 5 year term with 10 months rent free
10 year term with break in year 5
5 Waterside Place Aug-20 4,500 £20.00 NMT
with 6 months rent free
Mountbatten House Jan-20 4,298 £19.50 NCL (Prestige Cruises) TBC
10 year lease with break in year
2 Grosvenor Square Oct-19 12,237 £21.00 BE Offices
5 with 10 months rent free.
06
BRITON HOUSE
10-12 BRITON STREET
SOUTHAMPTON • SO14 3EB
MARKET COMMENTARY: MARKET COMMENTARY:
SOUTHAMPTON INVESTMENT MARKET SOUTHAMPTON RESIDENTIAL MARKET
With the successful national vaccination rollout and Prime yields have held steady at 5.50%. With investment Southampton has seen strong demand for city apartments Prime residential units are located to the south of
the easing of restrictions there is renewed activity and supply restricted and lockdowns easing we may see yield in recent years with apartments seeing significant capital Southampton City centre, towards Ocean Village which
confidence in the south east office market. compression over the year especially as office occupiers appreciation and recently outperforming guide prices. provide direct access to the River Itchen and Solent
make an anticipated return. Demand is driven by the range of local amenities, access where new flats and penthouses have achieved in excess
The second quarter of 2021 has seen a vast improvement
to the water frontage and Solent and excellent transport of £500 per sq ft, whilst city centre accommodation
in south east transactional volumes and occupational Below is a selection of available and recently transacted
links. The city benefits from a strong and expanding achieves values of between £350 - 400 per sq ft.
sentiment. Investment transactions for H1 are now comparable investments.
commuter population with direct access to Central
£2.32 bn or almost equivalent to the whole of 2020 There are numerous high rise buildings in the immediate
London within 1hr 20mins.
(£2.465bn). The £1.74 bn transacted in Q2 is significantly vicinity offering potential for increased massing on-site,
up on the £579 m traded in Q1 and far ahead of the Q2 subject to planning.
five year quarterly average of £564m.
Unexpired Cap
Size
Date Property Tenants Term Price (£m) NIY Value Purchaser
(sq ft)
(breaks) (£psf)
Imperial House,
May CEG UFP Ltd 5.9 £3,770,000 6.50% £286
Kings Park Road, 13,169 TBC
2021 AAP3 Ltd (3.0) (Quoting) (Quoting) (Quoting)
Southampton
Jan Foss House 182 High The Charity Bank First
9,909 4.5 £2,600,000 7.24% £262 Sakura Ltd
2021 Street, Tonbridge Actuarial LLP
Dec Amedocs Systems Wesleyan
Grosvenor House, Bath 18,546 5.00 £6,760,000 6.18% £363
2020 Group Assurance
Mountbatten House,
Aug Various 6.26 Castleforge
Grosvenor Square, 105,110 £17,500,000 7.63% £167
2020 (13) (2.30) Partners
Southampton
Worthing
April Decimal Place, Chiltern Barnett 8.00
25,425 £12,800,000 5.20% £464 Borough
2020 Avenue, Amersham Waddingham LLP (8.00)
Council
Feb Sherwood Place, NHS Property 4.17 Private
14,357 £3,670,000 7.67% £256
2020 Milton Keynes Services Ltd (4.17) Investor
07
BRITON HOUSE
10-12 BRITON STREET
SOUTHAMPTON • SO14 3EB
EPC PROPOSAL FURTHER
C-72. We are instructed to seek offers in excess of INFORMATION
£3,850,000 (Three million, eight hundred
For further information, access to the data-
and fifty thousand pounds only), subject to
room and to arrange an inspection, please
contract and exclusive of VAT. A purchase at
VAT this level reflects an attractive Net Initial Yield
of 7.56%, a Net Reversionary Yield of 9.50%
contact the sole agents:
Mathew Rogers
The property is elected for VAT purposes (Assuming £18 per sq ft ERV) and a Capital
and therefore VAT will be payable by the +44 (0)7940 706 011
Value of £178 per sq ft after allowing for
purchaser, unless the sale is structured mathew.rogers@avisonyoung.com
acquisition costs of 6.53%.
as a TOGC.
Daniel O’Sullivan
+44 (0)7557 487 329
daniel.o’sullivan@avisonyoung.com
Mark Frampton
+44 (0)7769 931 761
mark.frampton@avisonyoung.com
Avison Young hereby gives notice that the information provided either
for itself, for any joint agents or for the vendors lessors of this property
whose agent Avison Young is in this brochure is provided on the following
conditions: 1) The particulars are set out as a general outline only, for the
guidance of intending purchasers and/or lessees and do not constitute
an offer or contract, or part of an offer or contract. 2) All descriptions,
dimensions and references to this property’s condition and any necessary
permission for use and occupation, and any other relevant details, are given in
good faith and are believed to be correct. However, any intending purchasers
or tenants should not rely on them as statements or representations of
fact but satisfy themselves of their correctness by inspection or otherwise.
3) No person in the employment of Avison Young, or any joint agents, has
any authority to make or give any representation or warranty whatsoever in
relation to the property or properties in this brochure. 4) All prices quoted
are exclusive of VAT. 5) Avison Young shall have no liability whatsoever in
relation to any documents contained within the brochure or any elements of
the brochure which were prepared solely by third parties, and not by Avison
Young. Anti-Money Laundering: To comply with our legal responsibilities
for Anti-Money Laundering, it will be necessary for the successful bidder to
provide information necessary to complete these checks before the deal
is completed. Information required will include: 1) Corporate structure and
ownership details. 2) Identification and verification of ultimate beneficial
owners. 3) Satisfactory proof of the source of funds for the Buyers / funders /
lessee. September 2021. carve-design.co.uk. 15162/11
AY Ref no. 110309
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