The property comprises a detached industrial building providing warehouse accommodation to the rear with an integrated two-storey office block to the front, totalling 28,373 sq ft GIA. The unit is constructed of a steel portal frame with a combination of profiled metal and cement sheets on the roof and pre-case concrete cladding panels to the elevation. The roof was overclad circa 2005. The industrial space has two roller shutter doors to the southern elevation with 10% roof lights and gas blower heaters.
There is a large yard area to the front of the building which is secured by perimeter fencing. The offices provide open plan accommodation and benefit from air-conditioning, suspended ceilings, raised floors and Cat 2 lighting. There is also parking for approximately 69 spaces to the side and front of the unit.
Location
Farnborough is situated in the heart of the Blackwater Valley in the county of Hampshire, approximately 36 miles south-west of Central London. Neighbouring towns include Bracknell, Camberley, Farnham and Guildford via the A331. The town benefits from two railway stations, Farnborough Main and Farnborough North, which provide regular direct services (4 peak hour trains per hour) to central London Waterloo with a journey time of approximately 35 minutes and Frimley Station is also only 1.5 miles away.
The town benefits from excellent road communications and served by both Junctions 4 and 4a of the M3 motorway. The M25 Junction 12 is 15 minutes to the east, giving access to both Heathrow (23 miles) and Gatwick (36 miles) International Airports. The A331 Blackwater Valley Relief Road has further improved road communications, with dual carriageway access now possible from Junction 4 of the M3 through to the A3 trunk road via the A31.
Situation
The property is situated in an established industrial location, with good prominence onto Hawley Lane, less than half a mile north of the intersection with the A325 Farnborough Road. The M3 motorway Junction 4 is approximately one mile from the property and thereby benefitting from excellent motorway connections to Central London and the M25 network.
Occupiers in the immediate location include Lok'nStore, Forumla One Autocentres, Screwfix, The Savill Group and Cane Adams.
Frimley Business Park is located a short distance to the north east and occupiers include Hyster Yale Group, Novartis, Vysionics, Boeing, Geness, Nagra UK, Handelsbanken and Silverbean Coffee.
Accommodation
Ground floor light industrial/warehouse - 17,922 sq ft
Ground floor offices - 3,789 sq ft
1st floor offices - 6,695 sq ft
Total - 28,406 sq ft
The property occupies a site of 1.39 acres (0.56 ha) and has a low site coverage of 37%.
Terms
Refurbishment Potential
There is scope for a comprehensive reclad of the building as well as extending the building in creating smaller units by sub-division in order to drive the rental value towards those achieved at Evolution Park in the region of £10.50 psf.
Tenancy
The premises are let to Xylem Water Solutions UK Limited on an assignment from Pims (Services) Limited, with Pims Pumps Limited as guarantor. The lease is on full repairing and insuring terms, subject to a Schedule of Condition which expires 22nd May 2020. The current passing rent is £247,775 per annum exclusive, as well as an additional rent of £16,320 per annum exclusive for fit-out works by the Landlord. As such the total passing rent is £264,095.
Covenant Information
Xylem Water Solutions’ principle activities are the transport and treatment of water by the design, supply, rental and service of fluid handling equipment. The company provides waste water and de-watering pumps, biologic treatments, filtration and disinfection products for municipal and industrial use.
D & B rating of 4A1 representing a minimum risk of business failure and a tangible net worth of £19,240,000.
Xylem Inc. the parent company of the tenant has recently acquired Sensus US Inc, a provider of advanced metering technologies to utilities, for approximately $1.7bn in August 2016, demonstrating the strength of the sector.
Proposal
We are instructed to seek offers in excess of £3,100,000 subject to contract and exclusive of VAT which reflects a net initial yield of 8.00% and a capital value of £109 psf based on puchaser’s costs of 6.46%.
Specification
Investor Summary
- Freehold
- Excellent M3 motorway location
- Detached industrial unit totalling 28,373 sq ft on a secure self-contained site of 1.39 acres (0.53 hectares)
- Approximately 36% office content
- Let to a single tenant with an excellent covenant, Xylem Auto Solutions UK Limited, on a lease expiring 22nd May 2020.
- Offers in excess of £3.1 million, subject to contract and exclusive of VAT.