Alpha & Beta, Springfield Drive, Leatherhead, KT22 7NL

Summary

Investment Opportunity

Location

Leatherhead is located south west of Central London. Strategically positioned adjacent to the M25, Leatherhead is home to a thriving business community and benefits from an affluent and skilled workforce. Leatherhead is a dominant M25 office market and has attracted a number of blue chip multi-national companies to the area. Set in a landmark headquarters business park, Alpha & Beta are prominently positioned in the centre of the park, the town’s premier business park.

Additional Description

Alpha & Beta were constructed in the 1980s and comprise two self-contained office buildings arranged over ground and first floors totalling 43,423 sq ft. The buildings are of concrete and steel frame construction with brick clad elevations and both benefit from a full height central atrium. The internal specification includes:

• Comfort cooling
• Part raised/solid floors
• 8 person passenger lift in each building (provision for additional lifts)
• Male, female and disabled WCs plus shower facilities
• Exceptional car parking ratio of 1:167 sq ft

The tenant has recently made a number of improvements to the building including new cabling and will be installing new fire systems throughout as well as upgrading the toilet facilites.

Accommodation

Investment Summary

• Let to Kellogg Brown & Root Ltd. (KBR) producing £674,000 per annum equating to a low average rent of £15.52 psf.
• Kellogg Brown & Root Ltd. is rated 5A1 by Dun & Bradstreet, representing a minimum risk of business failure.
• Alpha & Beta are let at a 50% discount to prime rents in Leatherhhead thereby providing a low base for future rental growth.
• Offers sought in excess of £7.9 million reflecting an attractive net initial yield of 8% exclusive of purchaser's costs of 6.67% and a low capital value of £182 psf.

Please see attached particulars for lease information.

Investment Rationale

• Opportunity to redevelop the site to create two landmark headquarters office buildings, doubling the existing square footage yet maintaining an attractive car parking ratio.  Currently the site has one of the best (1:167 sq ft) parking ratios in the M25 office market.
• With no spec schemes in the town in the near future plus a shortage of larger supply we expect rental growth over teh short to medium term.
• KBR have been on Leatherhead Office Park for 20 years and occupy three other buildings on the Park, demonstrating its commitment to the locality.
• Opportunity to remove the break option to improve the income profile.

Best offers to be received by midday on Wednesday 4th May 2016.  For further details please contact Nic Pocknall - nicXXXocknall@hurstwarne.co.uk