One Park Lane, Hemel Hempstead, HP2 4YL Freehold M25 Headquarters Office Investment - 64% of total income secured for 20 years with upwards only ...
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One Park Lane, Hemel Hempstead, HP2 4YL
Freehold M25 Headquarters Office Investment
64% of total income secured for 20 years with upwards only CPI increases every five years
Investment Summary • One Park Lane is the premier office building in Hemel Hempstead town centre. • It is situated on a 0.87 acre site within a few minutes walk of the Riverside and Marlowes shopping centres, only 1.5 miles from the M1 motorway (J8) via the A414 and 4.5 miles from the M25 motorway (J20) via the A41. • The building was constructed in 1989 and comprises 9,057.40 sq.m. (97,490 sq.ft.) of air-conditioned office accommodation on ground and three upper floors with the benefit of 317 car spaces (1:308 sq.ft.). • The building is let at a total rental of £1,227,380 pa reflecting only £12.59 psf. • 75% of the income is from Bourne Leisure Limited who occupy the building as their UK headquarters and who have recently committed to a new 20 year CPI indexed lease on approximately 70% of the accommodation. • Bourne Leisure is one of the UK’s largest leisure companies operating under three major brands, Haven Holidays, Warner Leisure Hotels and Butlins, employing nearly 12,000 staff across 52 sites around the UK. • The average weighted unexpired term on the property is 13.5 years We are instructed to seek offers for the freehold interest in excess of £14,500,000 (Fourteen million, five hundred thousand pounds), subject to contract and exclusive of VAT, after allowing for the usual costs of purchase. This reflects a net initial yield of 8.00% with CPI linked upwards only reviews on the Bourne Leisure Limited lease in June 2016, 2021 and 2026. The quoting price reflects a capital value of only £149 psf.
DERBY
KING'S L
M6
Location
SHREWS BURY
Hemel Hempstead is a key south east commercial centre benefitting from
exceptional communication M54
links and an abundant high quality workforce. LEICESTER
Following it’s designation as a New Town in 1947, Hemel M42 has grown
rapidly and enjoyed significant
WOLVERHAMPTON and continued inward investment. It is the PETERBOROUGH
most populated urban area in Hertfordshire with a resident population of
M69
approximately 83,000 (2001 Census), a district population of 138,000 and
over 1 million people within a 12 miles catchment area. M6 A1(M)
Hemel benefits from some of the best communication
BIRMINGHAM links in the south
east located adjacent to the M1 motorway (junction 8), 25 miles north of
M42 COVENTRY
central London close to its intersection with the M25 motorway. Luton
Airport is just 10 miles to the north and the town is served by the London
Midland Rail service with regular links to London Euston (26 minutes),
Milton Keynes, Birmingham and the north. NORTHAMPTON
This unrivalled accessibility, skilled labour force (almost a quarter of local CAMBRIDGE
residents have a degree or higher qualifications) and proximity to Central
London and London Airports has attracted over 400 UK and international
businesses such as BP, Next, Epson, M5
Toshiba, DSG, ASOS.com, Kodak,
Steria Group and
HEREFORD3COM. As a result the Unemployment Claimant Count M40 MILTON
in the Hemel travel to work area has been dropping steadily since it briefly KEYNES
peaked in October 2009 in M50 contrast to the Country as a whole and as at M1
January 2011 stood at 3.0% compared to a national figure of 5.3% (HMSO
Claimant Count Data).
LUTON STANSTEAD
CHELTENHAM HEMEL A1(M)
HEMPSTEAD
8
AYLESBURY A41
4
A41 ST ALBANS M11
21/6a
OXFORD M25
HIGH 20
CIRENCESTER
WYCOMBE
WATFORD
M40
M4
SWINDON A34
LONDON
BRISTOL M4 READING A4
WINDSOR HEATHROW
M5
A4
BATH
A414 to M1
One Park Lane
Marlowes Shopping Centre
Riverside
Situation
LEIGHTON BUZZARD ROAD A4146
Marlowes
Shopping Centre One Park Lane
The property is situated on a 0.87 acre site in the
USE STREET
heart of the Town Centre close to the junction with
WOLSEY STREET
THE MARLOWES
1.5 miles to M1
LANE
the A414 which provides direct access to the M1
ERHO
ARK LA
PARK
motorway. It is within a few minutes walk of the
WAT
PA
14
A4
pedestrianised shopping area within the Marlowes, Riverside S RO
AD
The Marlowes Shopping Centre (anchored by ST
A LB
AN
Marks & Spencer, New Look and River Island) and
the new Riverside Shopping Centre (anchored by
Debenhams, H&M, Next and TK Maxx). GH
ROUNDA
U
BO
PLO
UT
46
41
A414
DA
OA
ST J
NR
OHN
S RO
AD
IO
AT
ST
Description One Park Lane is a headquarters office building constructed in 1989 and is the best office building within Hemel Hempstead town centre. It comprises 9,057.04 sq.m. (97,490 sq.ft.) of office accommodation on ground and 3 upper floors with two levels of basement car parking providing 317 spaces (an excellent ratio of 1:308 sq.ft). The office accommodation provides column free open plan space divided into two wings (north and south) and benefits from: • A full height fully glazed reception area with two 16-person scenic lifts • Three additional 13-person lifts • Four-Pipe Fan-Coil Air-Conditioning • Cat II Lighting • Fully Accessible Raised Floors • Floor to Ceiling Heights within offices of 2.64m • Internal courtyard • 317 Car Parking Spaces (Ratio of 1:308) The landlord has recently replaced the chillers within the building and will be funding the refurbishment of the main reception area, the lift cars, and the toilets and lobby areas on the ground to second floors at a total cost of £235,000.
Accommodation
The property comprises the following net internal floor areas:
Accommodation Wing Area Sq.M. Area Sq.Ft.
Ground Floor North 816.24 8,786
South 1,580.64 17,014
2,396.88 25,800
First Floor North 828.87 8,922
South 1,581.94 17,028
2,410.81 25,950
Second Floor North 828.87 8,922
South 1,581.94 17,028
2,410.81 25,950
Third Floor North 837.98 9,020
South 1,000.56 10,770
1,838.54 19,790
Total North 3,311.97 35,650
South 5,745.07 61,840
9,057.04 97,490
MALE
LIFT
LIFT LIFT
GARDEN TERRACE
FEMALE
M
IU
R
AT
Typical Floor Plan
Tenure - Freehold Tenancies Bourne, as principal tenant within the
property, has been appointed as facilities
•T
he property is let for an average weighted unexpired manager of the building and will be
term of 13.74 years. responsible for the implementation
of an agreed planned preventative
• The total rental is £1,227,380 pa reflecting £12.59 psf.
maintenance (PPM) programme. In
•7
5% of the income is from Bourne Leisure Limited, addition, they will be responsible for the
one of the UK’s largest leisure companies, who main reception area within the building
occupy the property as their UK headquarters. and will provide access to their restaurant
•6
4% of the total income is for a term of 20 years facility on the ground floor to other
subject to upwards only CPI increases every 5 years. tenants within the building. Full details
on the PPM programme and service
charge are available upon request.
Tenant Name Accommodation Area Area Car Current Rent Lease Term Expiry Rent Comments Sq.M. Sq.Ft. Spaces Rent pa PSF Start Date Review Bourne Leisure Ground Floor 2,396.88 25,800 227 £784,069 £11.40 10/6/2011 20 9/6/2031 5 yearly Basic Service Charge exclusive Limited First Floor 2,410.81 25,950 linked to of utilities capped at £5.40 psf. Second Floor South 1,581.94 17,028 CPI capped Additional service charge relating to 6,389.63 68,778 at 5% planned preventative maintenance capped at £1.50 psf. Both reviewed annually in line with CPI. Bourne Leisure Second Floor North 828.87 8,922 27 £138,291 £15.50 10/6/2011 10 9/6/2021 10/6/2016 Service charge provisions as above. Limited Tenant’s option to break from 10/06/2016 on 6 months notice Vacant Third Floor North 837.98 9,020 28 £135,300 £15.00 2 2 year rent, rates and service charge guarantee from completion. Spectrum Part Third Floor South 591.79 6,370 20 £95,500 £14.99 19/8/2008 4 18/8/2012 Service charge capped at £6.50 psf Interactive inclusive of utilities. Tenant has right Limited to use 15 additional car spaces. If cannot be provided on site, external parking to be secured at Landlord’s cost. Carestream Part Third Floor South 408.77 4,400 12 £68,820 £15.64 3/3/2010 10 2/3/2020 3/3/2015 Service charge capped at £8.50 psf subject Health UK, to CPI increases. Tenant option to break Limited on 02/03/2013 subject to 12 month penalty and 9 months notice. Additional Tenant option to break on 02/03/2015 subject to 9 months notice. Carestream Car Parking 12 £5,400 3/3/2010 5 2/3/2015 Licence subject to determination on Health UK, 3 months notice. Car parking included Limited in spaces allocated for third floor north. 9,057.04 97,490 317* £1,227,380 £12.59 *Includes 3 visitor spaces
The Tenants
It finances itself by a mixture of shareholders In addition, it supplies internet and wireless
funds, a short term revolving credit facility and solutions to over 1,000 hotels and 50 marinas in
long term bank debt. Based on this latest financial the UK. Clients include BAA Group, Hilton, Hyatt,
information the group’s financing costs are covered Radisson, Travelodge, Premier Inn, Holiday Inn,
approximately 6 times by EBITDA and the group’s Brewers Fayre, Accor, Center Parcs, Whitbread,
strong recurring cash flows underpin their ability Moto and Greene King.
to service the debt.
For the year ending 30th June 2010 Spectrum
Bourne Leisure is one of the largest holiday The tenant, Bourne Leisure Limited, is a holding Interactive had pre-tax profits of £514,000 on a
businesses in the United Kingdom. Established company which holds investments in all the main turnover of £12.996 million. Full accounts are
during the 1960’s, and now employing nearly operating subsidiaries of the Bourne Leisure available upon request.
12,000 staff, this privately owned group operates Group and receives investment income from those
under three major brands, namely: subsidiaries. In addition, the company is paid fees for
•Haven Holidays – trades as a caravan park providing central services to all group companies.
operator and caravan vendor across 36 sites Its latest results for the year ending 31st December
throughout the UK; 2010 highlight revenues of approximately
•Warner Leisure Hotels – trades as a hotel £30 million and profit after tax of approximately
operator in 13 hotels throughout the UK; and £53 million. Full accounts are available upon
• Butlins – trades as family holiday resort operator request.
from three sites in Minehead, Bognor Regis and
Skegness
Carestream Health UK, Limited (6% of total
Across all three brands guest loyalty and repeat income) is a wholly owned subsidiary of Carestream
business are the key drivers behind the long Health Inc which was established In 2007 when
term growth strategy of the business. This is Onex Corporation of Canada purchased Eastman
underpinned by the group’s significant and ongoing Kodak Company’s Health Group.
capital program across the business – as an
example £175 million has been invested across the It is a leading global provider of medical and
Haven Holidays business over the last five years. dental imaging products and services employing
Spectrum Interactive Limited (8% of total income) over 7,300 people in 150 countries worldwide.
Financially the group is very strong. Latest results was established in 1991 and is now the market Carestream Health UK Limited acts as sales agent
show revenues of just over £800 million (prior leader of public access internet provision in UK for Carestream Health within the UK.
year - £792 million), operating cash flows were airports with services in operation at over 20
approximately £194 million (p/y - £200 million) and airports. For the year ending 31st December 2009
profits after tax were approximately £70 million Carestream had pre-tax profits of £3.917 million
(p/y - £69 million). on a turnover of £5.938 million. Full accounts are
available upon request.VAT
The property has been elected for VAT.
Proposal
We are instructed to seek offers for our client’s
freehold interest in excess of
£14,500,000
(Fourteen million, five hundred thousand
pounds), subject to contract and exclusive of VAT,
after allowing for the usual costs of purchase.
This reflects a net initial yield of 8.00% with fixed
increases based on the CPI linked reviews on the
Bourne Leisure Limited lease in 2016, 2021 and
2026. The quoting price reflects a low capital value
psf of only £149.
Further information
For further information or to arrange an
inspection then please contact either:
Lawrence Gluckstein
Direct Line: 020 7659 9742
email: lg@johnmilesco.com
Neil Edwards
Direct Line: 020 7659 9741
email: neil@johnmilesco.com
Chartered Surveyors
76 New Bond Street London W1S 1RX
Misrepresentation Act:
Messrs John Miles & Company (Investments Surveyors) Ltd for themselves and
for the vendors or lessors of this property whose agents they are give notice
that (i) the particulars are set out as a general outline for the guidance of the
intending purchasers and do not constitute part of an offer or contract; (ii) all
descriptions, dimensions, references to condition and necessary permissions
for use and occupation and other details are given without responsibility and any
intending purchasers should not rely on them as statements or representations
of fact but must satisfy themselves by inspection or otherwise as to the
correctness of each of them; (iii) no person in the employment of John Miles
& Company (Investment Surveyors) Ltd has any authority to make or give any
representation or warranty whatever in relation to this property. October 2011.You can also read
