Ashdown House 125 High Street, Crawley, West Sussex RH10 1DQ - South East Office Investment Opportunity - Cushman & Wakefield
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Ashdown House 125 High Street, Crawley, West Sussex RH10 1DQ South East Office Investment Opportunity
INVESTMENT SUMMARY
Investment Summary Proposal
• High quality, South East office investment • Rent passing at £633,650 per annum, which • Offers are invited in excess of £7,260,000
totalling 34,235 sq ft equates to £19.39 per sq ft (Seven Million Two Hundred and Sixty
Thousand Pounds) for the freehold interest,
• Situated in an established office location in the • Low base rent £19.39 psf with prime rents now at
subject to contract and exclusive of VAT. A
heart of Crawley town centre, 0.5 miles north of £24.00 psf.
purchase at this level would reflect a net initial
Crawley Train Station
• Let to one of the world’s largest global insurance yield of 8.25% after allowing for purchaser’s
• Excellent micro location at the northern end of companies following the acquisition of The costs of 5.80%, reflecting a low capital value of
the High Street, near to the town’s retail Chubb Corp. £211 per sq ft
provision and opposite Crawley Leisure Park
• Excellent car parking ratio of 1:274 sq ft
• Let in its entirety by way of a reversionary lease
• Freehold
to ACE INA Services UK Limited with 5.4 years
unexpired
BRENTWOOD
4
M40
A34 1 A127
A404 1 UXBRIDGE LONDON
MAIDENHEAD A13
SLOUGH HAMMERSMITH
46 8
1A 1
READING M4
13 HE
HEATHROW
HEATHROW
DARTFORD
10 12
AI
AIR
A IRPOR
RT
AIRPORTT BROMLEY
11 1 A20
BRACKNELL 2 2
A33 CROYDON
WEYBRIDGE A232
EPSOM M20 M2
10 5
A339 4 WOKING
A22 7
9 5
M3 FARNBOROUGH 7
A34
M25 SEVENOAKS
6 MAIDSTONE
A21 A228
BASINGSTOKE GUILDFORD 8
A229
A24 M23
M2
M TONBRIDGE
A31
A3 GATWICK 10
LOCATION
AIRPORT
10
CRAWLEY A22
13
11 A21
Crawley Situation
M23
MANOR ROYAL
(J10)
Crawley is an established office location in the south east Ashdown House is prominently positioned to the northern
of England. The town is located 30 miles south of Central end of Crawley High Street, in the heart of the town centre. Ashdown
London, 23 miles north of Brighton and 27 miles south east The retail offer is quite extensive in the town centre and is House
of Guildford. concentrated in two main locations, the pedestrianised 1
A201
High Street and the County Mall, a modern, covered
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The town benefits from excellent transport
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shopping centre, are both located 0.6 miles to the south
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communications being within 2.6 miles of the M23, which
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KK
TESCO
east of the subject property.
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U E
VE
EN EXTRA
links directly to the M25. Gatwick Airport is 4 miles away
ENN
AV
AD
EY
UU
L
RO
EE
AW NORTHGATE
ROAD
CR
and is one of the town’s largest employers, generating The well-established Crawley Leisure Park is located
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IE
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around 23,500 jobs and a further 20,000 jobs through directly opposite, alongside the newly developed Origin
LONDON
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1
4
W
00
ILFIELD
related activities. Occupiers from the aerospace sector One and Two office buildings. Crawley train station is
A2
AVE
NU E
include Virgin Atlantic, British Airways, Thales and The Civil situated approximately 0.5 miles to the south of the
Aviation Authority. There is also a wide range of national property and the new Town Centre Morrisons store and THREE BRIDGES
and international occupiers including Deloitte, KPMG, PwC, Travelodge are located less than 100m away.
ET
STRE
Grant Thornton and Nestlé. 2 THREE BRIDGES
3
HIGH
RAIL STATION
Crawley has now developed into a main centre of industry, Communication THE MARTLETTS
commerce and employment between London and the
South Coast due to continuous economic growth and Central London – 30 miles COUNTY MALL HASLETT AVENUE EAST
SHOPPING CENTRE
Brighton – 23 miles 4
considerable residential development. Guildford – 27 miles
Portsmouth – 57 miles
M23 – 2.6 miles
M25 – 18 miles CRAWLEY
London Victoria – 42 minutes RAIL STATION
E NU
E
1 Crawley Leisure Park
London Bridge – 52 minutes AV
M23
CRAWLEY
TH
Brighton – 41 minutes HA
W 2 Travelodge Crawley
(J11)
Gatwick Airport – 8 minutes
3 Morrisons
Gatwick – 4 miles 4 Asda Superstore
Heathrow – 45 miles
DESCRIPTION Ashdown House comprises a self-contained, L-shaped office building arranged over ground and three upper floors. The office has a glazed atrium entrance leading onto a reception area, which provides access to the lifts and service core. The office accommodation is predominantly open plan with some partitioned offices. The tenant has recently upgraded part of the property to operate as a data centre for their global emergency back-up servers and are also undertaking a rolling refurbishment of the office accommodation. This commitment to the building was also evidenced by the newly agreed 5 year reversionary lease. The plan is for indicative purposes only The internal specification includes the following features: • Suspended ceilings • Two passenger lifts • Air conditioning throughout the building • Inset box lighting • WC facilities on each floor The property benefits from 125 car parking spaces providing an excellent ratio of 1:274 sq ft. Site The property is situated on a site with an area of approximately 1.24 acres (0.50 hectares). Tenant has recently upgraded the accommodation to include their global Data Centre
Accommodation Covenant Information
The building has been measured in accordance with the RICS ACE INA Services UK Limited (01509033)
Property Measurement 2015 and provides the following areas:
ACE INA Services UK Limited was incorporated in 1980 and
Description Area (sq m) Area (sq ft) provides tailored insurance solutions to a range of customers.
They provide local knowledge and expertise, with dedicated
Ground Floor 898 9,671 teams of professionals specialising in underwriting, survey risk
assessment and claims settlement to meet their customers’
First Floor 916 9,857 specific needs.
Second Floor 922 9,927 ACE INA Services UK Limited have a Dun & Bradstreet rating of
4A 2. They have a tangible net worth of £29,833,000 as at 31
Third Floor 444 4,781 December 2014 and a lower than average risk of business failure.
Total 3,181 34,235
31 Dec 2012 31 Dec 2013 31 Dec 2014
Description
(£000s) (£000s) (£000s)
Tenure Sales Turnover 184,614 209,223 186,168
The property is held freehold. Pre-Tax Profit 4,957 (476) (3,377)
Net Worth 6,345 33,113 29,833
Tenancy ACE Limited/The Chubb Corporation
The property is let in its entirety to ACE INA Services UK Limited ACE Limited (Parent Company) completed their acquisition of
and extended by way of a reversionary lease expiring 23 June The Chubb Corporation on 14th January 2016 for approximately
2021. The vendor will top up the rent to approximately £633,650 $29.5 billion in aggregate, in cash and stock. ACE are adopting the
pa (£19.39 psf). The tenant has an option of a new lease for the Chubb name and this merger has created one of the largest global
period starting 24th June 2021 and ending 23rd June 2024. insurance companies. They are now a market leader in commercial
and personal property and the casualty insurance business with
operations in over 54 countries. The company will continue to
target and offer their services to large corporate clients, mid-
market companies and to private individuals.
OFFICE MARKET OVERVIEW
Crawley Occupational Market
Top headline rents in Crawley currently stand at £24.00 per sq ft
in the town centre. This progression has been in conjunction with a
reduction in incentives, meaning that Crawley is also seeing rental
growth on a net effective basis. Key occupational transactions are
set out below:-
Area Term
Date Property Tenant Price Price (psf)
(sq ft) Certain
Apr-15 St Johns House, Haslett Avenue Broadsoft 10,988 5 years £247,230 £22.50
Jun-14 Portland Building, High Street Rawlinson Butler 11,096 – £266,304 £24.00
Mar-14 Origin Two, High Street RBW Consulting 5,000 5 years £115,000 £23.00
Mar-14 Origin Two, High Street ASB Law 11,000 5 years £247,500 £22.50
Feb-14 Pegasus Two, Gatwick Road Palmer & Harvey 12,700 10 years £273,050 £21.50
South East Office Investment Market
The following represent some of the more comparable investment transactions in the South East:
Area
Date Property WAULT Price NIY Purchaser
(sq ft)
Nov-15 Connaught House, Guildford 27,921 - £7,520,000 - Baltane Asset Management
Nov-15 Mallards Reach, Maidenhead 37,544 5.70 £16,850,000 6.25% Kames Capital
Aug-15 4 Tilgate Forest Park, Crawley 25,627 7.00 £6,830,000 7.10% London Borough of Bromley
Aug-15 Central Court, Orpington 67,007 3.50 £10,300,000 8.19% Brydell
Jul-15 Leonardo Building, Crawley 110,545 16.50 £45,300,000 5.30% F&C REIT
Jul-15 Gateway House, Guildford 16,781 3.00 £6,900,000 5.90% F&C REIT
Mar-15 Lakeview West, Dartford 26,759 2.83 £7,450,000 7.50% CCLA
Mar-15 Warwick House, Redhill 20,434 6.60 £5,180,000 7.90% MJP Nominees
Mar-15 Tubs Hill House, Sevenoaks 64,800 - £11,000,000 - Prime Place
Sep-14 Newplan House, Epsom 23,100 4.25 £6,890,000 6.25% Cornerstone Real Estate
Investment
Rationale PROPOSAL
South East office investment offering an
attractive Net Initial Yield
Fully income producing and let to one of the
world’s largest global insurance companies
following the acquisition of The Chubb Corp
Low base rent £19.39 psf with prime rents now
at £24.00 psf
Tenant committed to the building through the
newly agreed reversionary lease providing 5.4
years unexpired and have recently been
upgrading Ashdown House to include their
global Data Centre
Strategically located in the heart of Crawley
town centre at the northern end of the High
Street near to the town’s retail provision and
directly opposite Crawley Leisure Park
Excellent communication links and within close
proximity to Gatwick Airport
Offers are invited in excess of £7,260,000 (Seven Million Two
Hundred and Sixty Thousand Pounds) reflecting a net initial yield
of 8.25%, having allowed for purchaser’s costs of 5.80%, reflecting a low
capital value of £211 per sq ft.
VAT EPC Rating Web Access
The property has been elected for VAT. The property has an EPC rating of 120. www.cushwakesales.com/cw/ashdownhouse
OUR TEAM Cushman & Wakefield LLP Chris Lewis Josh Beebee Lyndsay Barnes 43/45 Portman Square E: chris.lewis@cushwake.com E: josh.beebee@cushwake.com E: lyndsay.barnes@cushwake.com London W1A 3BG T: +44 (0) 207 152 5554 T: +44 (0) 207 152 5266 T: +44 (0) 207 152 5295 February 2016 MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Production by PlusArt Limited 0115 972 4000
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