MODERN SOUTH EAST OFFICE INVESTMENT NOBLE HOUSE MK

MODERN SOUTH EAST OFFICE INVESTMENT

NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP

NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP MODERN SOUTH EAST OFFICE INVESTMENT

INVESTMENT HIGHLIGHTS • Affluent South East office centre• The population has the fourth highest average

wage in the UK• 3 Miles to J14 of M1, 45 Miles to Central London• Attractive central business park location• Modern office building with NIA of 20,299 sq ft• Freehold

• Average passing rent of £13.60 psf• Comparable rental deals at c.£17.25 psf• Fully let to four tenants with a WAULT of 2.5 years

to break (3.5 years to expiry)• Three tenants occupying on renewed leases• 93 car parking spaces (1:220 sq ft)• 1.85 acres site

• Offers sought in excess of £3,235,000 (subject to contract and exclusive of VAT). A purchase at this level will reflect a Net Initial Yield of 8.0% and a Reversionary Yield of 10.0% after allowing for standard purchaser’s costs of 6.47%. This reflects a low capital value of £160 psf.

LOCATION

Milton Keynes is the dominant commercial centre in Buckinghamshire. The town has a primary catchment population of 248,400 (2011 Census) and is located 45 miles north west of London and a similar distance from Birmingham, Oxford and Cambridge.

It was designated as a new town in 1967 and is now is one of the most successful (per capita) economies in the South East, with a gross value added per capita index that was 47% higher than the national average (2005 data). The town has the fourth highest average wages in the UK.

The town is home to the UK headquarters of Domino’s Pizza, Mercedes-Benz, Suzuki, Volkswagen and Network Rail. The attraction of Milton Keynes is highlighted in Goldman Sachs recently taking their only office outside London to headquarter Marcus, their on-line savings bank.

Milton Keynes Rail Station provides up to eight trains an hour to London Euston with a fastest journey time of 33 mins. Road connections are excellent as the own is located adjacent to the Junction 14 of the M1.


M25

M25

M4

M5

M6

M6

M40

M45M42

M54

M69

M1

A1(M)

A1(M)

M11

MILTONKEYNES

OXFORD

SWINDON

READING

NORTHAMPTON

COVENTRYBIRMINGHAM

BEDFORD

CAMBRIDGE

PETERBOROUGH

LEICESTER

LUTONSTEVENAGE

LONDON

Elder Gate

Silbury

Blvd

Silbury

Blvd

Avebury

Blvd

Avebury B

lvd

Elder Gate

Midsummer Blvd

Witan G

ate

Elder Gate

Oldbrook Blvd

Evans Gate

Bradwell Common Blv

d

Hampstead G

ate

Secklow Gate

Midsummer Blvd

Millers Way

Oversteet

Oversteet

Sunrise Parkw

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Glazier D

rive

Tower Drive

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oure

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rive

Dansteed W

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Dansteed Way

Great M

onks St

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ay

Portway

Gra

fton Street

Grafton Street

Grafton Street

Grafton G

ate

Saxon Street

Saxon Gate

Saxon Street

Chaffron Way

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lds

Way

Childs W

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Childs W

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H3 Monks Way

H3 Monks Way

H3 Monks Way

Saxo

n Stre

et

Grafton Street

Dansteed Way

Dansteed W

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B4034 Marlborough Street

H3 Monks Way

Saxon Street

B4034 Marlborough Street

Dansteed Way

B4034 Ma

rlboroug

h Street

Childs Way Childs Way

Chaffron Way

Chaffron Way

Chaffron Way

A509 Portway

A509 Portw

ay

A509 Portw

ay

Watling St

Watling St

Watling St

Watling St

A509 Portway

A509 Portway

A5

A5

A5

A5

Standing Way

Standing Way

Tongw

ell St

Tongwell St

Chi

lds

Way

A509

J14

M1

Milton KeynesCentral

Campbell Park

OuzelValley Park

WillenLakeside Park

Pineham

WillenLakeside

North LoughtonValley Park

North LoughtonValley Park

Heelandssports field

Marshall Milton KeynesAthletic Club

TOWNCENTRE

NOBLE HOUSE

SITUATION

The property is located on a landscaped self-contained site adjoining Linford Wood Business Park and the 42 hectare woodland park of Linford Wood. The property is approximately 2.5 miles from Milton Keynes Central Train Station.

Noble House is located at the junction of Monks Way and Marlborough Street 3.4 miles from Junction 14 of the M1.

DESCRIPTION

Noble House was constructed in 1991 and is arranged over ground and two upper floors with a central glazed atrium. Each floor provides an open plan suites either side of the core. The specification includes:

• Fully raised access floors

• 4 pipe fan coil air conditioning

• Triple glazing with encapsulated blinds

• 1x 10 person passenger lift

• Male and female WCs to each floor

The property is located on a 1.85 acre landscaped site with car parking to the front and rear of the property providing 93 spaces and an excellent ratio of (1:220 psf).

SERVICE CHARGE

The service charge budget for the year ending September 2019 is £248,450 (including tenant’s utilities). Excluding tenant’s utilities the service charge equates to £7.68 per sq ft.

RPS Consulting Services Limited has a service charge cap of £28,725 (excluding utilities) which produces an estimated Landlord’s shortfall of £4,617 for 2019. There are no other service charge caps.

Full information is available on request.


Ordnance Survey © Crown Copyright 2019. All Rights Reserved.Licence number 100022432Plotted Scale - 1:1250. Paper Size - A4

OCCUPATIONAL MARKET

In 2018 the take up for office accommodation in Milton Keynes was 315,000 sq ft, marginally above the 5 yearly annual average of 305,000 sq ft. The town has seen higher than average conversions under permitted development rights. In the past 6 months at least 150,000 sq ft of office accommodation has received prior approval for conversion to residential.

Combined with a lack of new build development this has decreased supply and increased rental values.

Date Property Tenant Size Rent psf

- Noble House, Milton Keynes Multi-let - £13.50 average

Jan 19 Libra, Linford Wood Business Centre

Qmatic 3,000 £13.50 no rent free converted B1(c) building

Dec 18 Building 5 Caldercott Lake Business Park

ITC 5,000 sq ft £17.50

Nov 18 Ash House, Linford Wood Confidential 5,135 sq ft £17.25

Sept 18 Eskan Court, Campbell Park Alliance Automotive 5,900 sq ft £19.00

Date Property Purchaser Tenant Average Term certain

Price Cap Val (psf)

NIY

- Noble House, Milton Keynes Multi-let 2.5 years £3.235M £160 8.0%

Dec 18 Omron, Opal Drive, Milton Keynes

Council Omron 6.5 years £4.74M £210 6.45%

Dec 18 Hexagon House, Milton Keynes

Private Leica Geosystems

5 years £4.6M £142 5.29%

Aug 18 Melita House, Chertsey

Squarestone Multi-let 2.6 years £4.9M £350 6.75%

Jan 18 3 Queens Road, Reading Canal and River Trust Multi-let 3 years £6.27M £406 6.0%


SOUTH EAST OFFICE INVESTMENT MARKET

Despite Brexit related political uncertainty, the South East office market continues to experience strong demand for good quality buildings. The market recorded another strong year in 2018 with total investment transactions of £3.5 billion which is 35% ahead of the 10 year average.

The lack of speculative development and erosion of stock through permitted development conversions has led to the majority of south east centres experiencing strong rental growth in recent years. This supply demand imbalance is predicted to continue rental growth in the short to medium term and attract further investment.

TENUREFreehold.


Floor Tenant Area Sq Ft

Lease Start

Lease Expiry

Rent Review

Break option Rent PA(psf)

ERV PA (psf)

Comments

Ground Floor Celaton Limited 6,739 10/05/2018 09/05/2023 N/A N/A £94,346(£14.00)

£114,563(£17.00)

31 car spacesIn occupation since May 2013 Inside 1954 L&T Act

First Floor North Wing RPS Consulting Services Limited

4,350 22/02/2015 21/02/2025 22/02/2020 21/02/2020Tenant break option,6 month rent free if not exercised

£56,800(£13.00)

£73,950(£17.00)

20 car spacesIn occupation since Feb 2010 s/c cap of £28,725 Inside 1954 L&T Act

First FloorSouth Wing

Prestige Purchasing Limited

2,430 24/03/2015 23/03/2020 N/A N/A £32,643(£13.50)

£41,310(£17.00)

12 car spacesOutside 1954 L&T Act

Second FloorSouth Wing

Motor Insurers’ Bureau 4,432 11/03/2016 10/03/2021 N/A March ’19 break option not exercised

£60,000(£13.50)

£75,344(£17.00)

20 car spacesOutside 1954 L&T ActSchedule of conditionTenant in occupation since March 2011

Second Floor South Wing

Motor Insurers’ Bureau 2,348 25/09/2017 10/03/2021 N/A March ’19 break option not exercised

£31,800(£13.50)

£39,916(£17.00)

10 car spacesOutside 1954 L&T ActTenant in occupation since December 2013

Electricity Sub Station East Midland Electricity Plc

N/A 04/07/1991 03/07/2090 N/A N/A Peppercorn -

Total 20,299 £275,589 £345,083

TENANCY SCHEDULEThe property is let as below and has a WAULT of 2.5 years to break and 3.5 years to lease expiry. The property has been measured in accordance with RICS Code of Measuring Practice (6th Edition) and provides the following net internal area (NIA):

COVENANT INFORMATION

Celaton Limited (Company Number 02871879) is a privately owned company providing automated services. For the year ending June 2018 the company reported a Turnover of £3.32 million. Further information is available at www.celaton.com

RPS Consulting Services Limited (Company Number 01470149) specialises in consultancy service for the built environment. For the year ending Dec. 2017 RPS reported a Turnover of £115 million, a Pre-tax Profit of £8.8 million and Net Assets of £32 million.

Prestige Purchasing Limited (Company Number 03474045) provides procurement services to the food industry. For the year ending December 2017 the company reported Limited Accounts with Net Assets of £164,000.

Motor Insurer’s Bureau (MIB) is funded by the motor insurance industry to reduce uninsured vehicles on the roads and to settle any claims arising from uninsured drivers. For the year ending December 2017 MIB had a Total Income of £515 million. MIB owns and occupies Linford Wood House a 26,000 sq ft office building adjacent to Noble House.


Misrepresentation Act: Gain, for themselves and for the vendors of this property, whose agents they are, give notice that: i) These particulars are only for the guidance of prospective purchasers and do not form part of any offer or contract. (ii) Whilst the information contained herein is issued in good faith, neither the firm nor their client guarantee its accuracy and it is not to be relied upon as statements or representation of fact. (iii) Any intending purchasers must satisfy themselves as to the correctness of each of the statements made herein. (iv) The vendor does not make or give, and neither do Gain nor any of their employees have any authority to make or give, any representation or warranty whatever in relation to this property. (v) Nothing in these particulars constitutes a statement that the property and/or any services or facilities are in good condition or working order. (vi) These particulars were completed in January 2019. (vii) Gain will not be liable, in negligence or otherwise, for any loss deriving from these particulars. (viii) Gain is the Trading name for Gain Property Services - Registration Number 6723449. Design: CommandD www.commandHQ.co.uk Jan 2019

Brian Gavin t: 0207 412 8948m: 0759 562 0422 e: [email protected]

46 James Street, London W1U 1EZwww.gainproperty.co.uk

VATThe property is elected for VAT. The purchase could be structured as a transfer of a going concern.

ENERGY PERFORMANCE CERTIFICATEThe property has an EPC rating of E (121). The full EPC is available on request.

PRICE

We are instructed to seek offers of £3,235,000 (subject to contract and exclusive of VAT). A purchase at this level will reflect a Net Initial Yield of 8.0% and a Reversionary Yield of 10.0% after allowing for standard purchaser’s costs of 6.47%. This reflects a low capital value of £160 psf.

NOBLE HOUSE MKLinford Wood, Milton Keynes, MK14 6QP

Documents

MODERN SOUTH EAST OFFICE INVESTMENT NOBLE HOUSE MK