Horseshoe Park was built in the early 1980’s and the buildings are constructed via reinforced concrete structural frame with brick and PVC coated corrugated steel elevations.
Within Unit 20 there are four separate units ie Unit 20a & Unit 20b – on the ground floor and Units 20c & Unit 20d on the first floor. It is Unit 20b that we are offering for sale as an income producing investment.
Location
Pangbourne is a busy village approximately 5 miles north west of Reading. Access from the M4 is 4 miles away via Junction 12. Horseshoe Park is a small Business Park built in 1984 and is made up of circa 30 units occupied by a varied and vibrant mix of large and small businesses.
Accommodation
Unit 20B is a ground floor unit with a gross internal area of approx. 1,200 sq ft. Three car spaces are allocated within Horseshoe Park plus use of communal parking spaces
Terms
Tenant Details - The tenant is Pacer Components Limited ”Pacer “ ( company number 02448361 ) Established some 25 years ago and now a wholly owned subsidiary of Solid State plc. [ known as Solsta ] www.solsta.co.uk
In the Year End March 2023 accounts the reported turnover for Pacer was £3.4m with a gross profit of £1.6m and an operating profit of £56,000.
Occupational Lease information - Pacer occupy Unit 20b by way of a ten year lease from 20th December 2019 at an annual exclusive rent of £12,000. The lease therefore expires on 19th December 2029 and has over five years to run with no break clauses. There was a tenant break clause for December 2024 but this was not excercised by the tenant.
There is a review of the rent due on 19th December 2024 which has not be impemented as of August 2024.
As well the rent, the tenant pays for all utilities, business rates and service charges.
The tenant is responsible directly for the upkeep, repair and redecoration of unit 20b Horseshoe Park and via the Building Service Charge contributes with the other three owners of units within Unit 20 towards internal communal area upkeep plus roof repairs. The tenant is not liable for any repairs to the structure or foundations.
Service Charges - There are two service charges payable by the tenant.
1. Estate Service Charge : This charge is raised by the freehold Landlord of Horseshoe Park and covers items such as landscaping, security measures, site cleaning, estate management and sinking fund. This cost is £430 plus VAT per quarter and is paid by the tenant
2. Building Service Charge : This charge is raised to cover the utility running costs and upkeep of the internal communal areas of Unit 20 ( entrance hall, ground and first floor toilets ) plus building up a sinking fund for roof and other external building repairs . The cost is £40 per calender month and is paid by the tenant. There are four tenants within Unit 20 and each unit contributes the £40 per month.
Annual Building Insurance is arranged each year by the freehold owner of Horseshoe Park. The premium for 20b is circa £450 pa and is paid by the tenant.
Ground Rent A ground rent of £25 is paid annually to the freehold owner of Horseshoe Park, The tenant pays this.
The tenant of 20b is also the tenant of unit 20a and the dividing wall between the two units has been opened up. A Licence for alterations exists which will require the tenant to reinstate the wall when the leases expire in 2029.
Purchase Price - The asking price for the long leasehold interest og 20b with over 900 years remaining is £170,000 ( One Hundred and Seventy Thousand Pounds ) which provides a gross yield of 7% and 5 years rental income remaining from a financially strong tenant in Pacer Components Ltd
Ownership - Our client owns the long leasehold interest ( over 900 years remaining ) in Unit 20b Horseshoe Park
Note : Unit 20a is also let to Pacer Components Ltd until 19th December 2029 and the long leasehold interest of Unit 20a is also available for sale. Further details upon request.
Please Note there is no scope to change this property into residential use
Legal Costs - Each side to pay their own legal costs
EPC Rating - C
VAT - Finance Act 1989 - The terms mentioned in these particulars are exclusive of VAT.