Oakcroft Road Chessington KT9 1RH - TYPHOON BUSINESS CENTRE - Altitude Investments
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TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
ALTITUDE
INVESTMENTS
TYPHOON BUSINESS CENTRE
Oakcroft Road Chessington KT9 1RH
ALTITUDE - RAISING THE GAME 1
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
DESCRIPTION
● Hugely busy South East location
● Excellent reversionary potential
● Planning permission to extend the building
● Attractive 7.2% net initial yield
● Freehold
● Guide Price £3,500,000.00
The property comprises of a mixed use building, with
predominantly good quality office accommodation with
one warehouse. The offices have been well refurbished
offering open plan, light and spacious accommodation
over a range of sizes. The office specification includes
a suspended ceiling, new LED lights, comfort cooling
cassettes and dedicated on-site parking which is at a
premium in Chessington.
The warehouse is accessed from the rear with a full
height roller shutter door, solid concrete floors and 6m
eves. The roof contains translucent light panels.
There are currently no voids in either the office
accommodation, or the warehouse element. There has
been a long history of no voids and is currently a
waiting list for interested occupiers, with no arrears on
the any of the rent payments.
ALTITUDE - RAISING THE GAME 2
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
LOCATION
Chessington is located in Kingston, South West
London, 6 miles inside J9 of the M25.
Kingston is one of the famous and affluent borough of
London, it is known as one of the top retail destinations
in the South East, outside of central London, and its
proximity to beautiful stretches of the river Thames.
SITUATION
The property is situated in Chessington, a densely
populated area of Greater London, with a local
population of near 20,000.
Chessington provides a strong commercial location
within easy commute from central London and the
Surrey, Kent & Berkshire counties. The immediate
location is a mixture of industrial and office uses, with
minimal local vacancy and a huge premium for car
parking. The area hosts a number of established
occupiers including Prochem, Screwfix & Alliance
Healthcare.
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● Heathrow – 15 miles
● Gatwick – 22 miles
● Central London– 15 miles
● Putney Bridge – 15 mins away by car
● Chessington to Waterloo – 36 mins
● Tolworth to Waterloo – 34 mins
ALTITUDE - RAISING THE GAME 3
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
ACCOMMODATION
The total floor area for the building is 2,209 sq m (23,783 sq ft) with the breakdown as There is allocated off street parking to the front of the building, as well as a well sized
follows. car park to the rear, with a total of 46 spaces for the building. There is also additional
income from four freight containers stored in the corner of the car park. The income is
OFFICE SPACE WAREHOUSE set out in the tenancy schedule attached.
● 1,666 sq m (17,943 sq ft) ● 542 sq m (5,840 sq ft)
Space for parking is at a massive premium in Chessington and there is scope to charge
for parking to further increase the rent roll.
Offices range from 780 sq ft up to 2,719 sq ft. a breakdown of the offices sizes is
available on the tenancy schedule below.
CONVENANT
Please click here to view covenants
ALTITUDE - RAISING THE GAME 4
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
TENANCY SCHEDULE
GROUND ANNUAL ORIGINAL RENEWAL
TENANT TYPE SQ FT PSF RENT REVIEW BREAK LEASE END
FLOOR RENT LEASE START LEASE START
Mutual break
Warehouse IMX Ltd Warehouse/Office 5,840 97,500.00 16.70 31/08/2016 31/08/19 & 31/08/21 31/08/2023
at reviews
01/02/2015 &
Unit 1 Your-Move.co.uk Limited Office 2,017 38,323.00 19.00 22/01/2010 01/02/2015 31/01/2020
01/02/2017
31/10/2017 & 31/10/2019 &
Unit 2 Tiffany Rose Ltd Office 1,043 79,359.00 20.56 01/11/2014 31/10/2019 31/10/2024
31/10/2021
31/10/2017 & 31/10/2019 &
Unit 3 Tiffany Rose Ltd Office 780 79,359.00 20.56 01/11/2014 31/10/2019 31/10/2024
31/10/2021
31/10/2017 & 31/10/2019 &
Unit 4.1 Tiffany Rose Ltd Office 2,037 79,359.00 20.56 01/11/2014 31/10/2019 31/10/2024
31/10/2021
Unit 4.2 Culross Aerospace Limited Office 2,719 43,008.00 15.82 06/02/2008 05/02/2016 None 05/02/2018
1st Floor
Unit 5 Briggs Amasco Limited Office 1,757 40,000.00 22.77 29/11/2002 30/11/2020 & 31/11/2021 30/11/2019 30/11/2022
01/05/2014 & 08/02/2016 &
Unit 6 Human Race Limited Office 1,746 53,500.00 15.13 08/02/2014 01/12/2014 30/04/2017
01/05/2016
01/05/2014 & 08/02/2016 &
Unit 7 Human Race Limited Office 1,791 53,500.00 15.13 08/02/2014 01/12/2014 30/04/2017
01/05/2016
Holden Group Holdings
Unit 8 Office 1,444 45,382.80 31.43 ONGOING ONGOING ONGOING ONGOING ONGOING
Limited
Big Thoughts on Food and
Unit 9.1 Office 1,306 6,000.00 18.22 01/02/2015 01/02/2015 None 31/01/2017 31/01/2018
Drink Limited
Unit 9.2 Insta Clean Office 1,306 8,500.00 18.22 15/02/2016 15/02/2017
Aaron Anderson & McK-
Unit 9.3 Office 1,306 9,300.00 18.22 22/02/2012 22/02/2016 None None 21/02/2019
insey Limited
Tokenhelp (UK) Limited Office 1,303 21,879.24 16.79 02/04/2011 None 02/04/2016 31/08/2017
Total 23,783 442,752.04 18.62
Less: Service
-166,367.00
Charge
Plus: Container
15,840.20
Rent
Net rent 292,225.24 12.29
ALTITUDE - RAISING THE GAME 5
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH PROPOSAL Our client is seeking offers of £3,500,000 (Three Million, five Hundred Thousand Pounds), subject to contract, reflecting an attractive net initial yield of 7.24% with purchases costs at 6.5%. The trading businesses in The Typhoon centre are not affected by the sale. The vendors (who currently occupy part of the building) have already agreed a new 5 year lease on 1,444 sq ft, showing their commitment to the location. TENURE Freehold TENANCY The property is let to 12 different tenants, on varying lease lengths. The tenants pay an ‘all in price’ for accommodation, rates and services. Total income comes to £442,752 per annum, with total costs (service charge) coming in at £166.367. A breakdown of the service charge costs can be provided on request. Net income is therefore £292.225 per annum. INVESTMENT CONSIDERATIONS ● Huge reversionary rental uplifts ● Great asset management potential ● Planning permission to add third floor ● Thriving SE commercial location ● Great access to Central London and the major motorway network ALTITUDE - RAISING THE GAME 6
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
ASSET MANAGEMENT
The building offers a number of ways to increase rent roll and add value. ● A mezzanine level could be put in the warehouse (as has been done in the
rest of the building), to double the floor area and increase income by another
● The rents are currently well below market level, which has been established by c.£133,000pa gross.
the latest review to Briggs at £22.77 psf gross. The majority of the tenants are on
● There is a newly received planning consent for another story to the front elevation
rents set in the recession, and they currently average below £18 psf across the
of the building The consent would provide another 150 sq m (1,600 sq ft) on its own
centre. The ERV is clearly set above £20 psf and therefore the rental level is more
private level. Rents are expected to be in the region of £25 psf or above, therefore
like £500,000 gross (up from the current £420,000).
offering another £40,000 pa gross. The sale of the asset will prevent the vendor
● Rent reviews have been done in house, these could be set up in a traditional from implementing the consent, but development can be commenced at any point
manner on an open market or RPI basis to bring the rents into line. after purchase.
● The warehouse (5,840 sq ft) could be converted into office accommodation, ● Parking is a massive premium in the area, and people are even resorting to building
bringing the rent up from £12.84 psf to the office levels of £22.77 psf adding underground parking lots as the rents back up the cost of doing so. This site does
another £58,000 pa gross. not currently charge for parking, so further income could be derived from that with
ERV at £2,500 per space per annum.
All in all, the income potential from the site is significant. The initiatives mentioned
about add c.£270k pa gross not including the car parking or adding another story
to the front elevation.
As you can see, there is scope to almost double the gross rental income. The
service charge currently equates to c.35% of the gross income.
With car parking removed (as it doesn’t add any cost to service charge),
the increase in NET INCOME would be in the region of £300,000 per annum.
INITIATIVE RENTAL INCREASE PER ANNUM
RENT REVIEWS TO ERV £80,000
CONVERTING WAREHOUSE GF £58,000
ADDING WAREHOUSE FF £133,000
NEW THIRD STORY ON FRONT ELEVATION £40,000
PARKING £115,000
TOTAL £426,000
ALTITUDE - RAISING THE GAME 7
TYPHOON BUSINESS CENTRE OAKCROFT ROAD, CHESSINGTON, KT9 1RH
CONTACT US
Exeter Office: 20 Southernhay West, Exeter, EX1PR
Tel: 01392 660 000
London Office: Stratford Place, Mayfair, London, W1C 1ES
Tel: 0203 770 2828
Midlands Office: 5-7 High Street, Henley In Arden, West Midlands, B95 5AA
Tel: 0203 770 2828
Contact: George Turnbull
Mobile: 07815 867 807
Email: george.turnbull@altitude-investments.com
Web: www.altitude-investments.com
ALTITUDE
Investments
0203 770 2828
www.altitude-investments.com
MISREPRESENTATI ON ACT 1967
Messrs Altitude Property Investments Ltd, for themselves and for the vendors or lessors of this
property whose agents they are, give notice that: (i) these particulars are produced in good faith, are set out
as a general guide only and do not constitute any part of an offer or contract. (ii) they are
believed to be correct but any intending purchasers or tenants should not rely on the them as
statements or representations of fact and must satisfy themselves as to the correctness of each of them; (iii)
no person in the employment of Altitude Property Investments Ltd has any authority to make or give any
representation of warranty in relation to this property.
Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Property Misde-
scriptions Act 1991 These details are believed to be correct at the time of compilation, but may be subject to
subsequent amendment.
ALTITUDE - RAISING THE GAME 8
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