Axis House is a modern three-storey office building providing 16,247 sq ft partially open plan, part celluar, partitioned office space, with an associated surface car park offering 83 spaces.
Benefitting from a large ground floor reception, each floor of Axis House has a WC and kitchen facilities, while the property could be easily split for multiple occupation.
Investment Summary
•Well located to the east of Runcorn town centre, with excellent transport links, via the Daresbury Expressway.
•Bilfinger Industrial Services (UK) Limited is a strong 4A1 covenant who is committed to the property.
•A modern three-storey headquarter office building providing 16,247 sq ft of good quality Grade B accommodation.
•Excellent parking ratio of 1:195 square foot.
•Unexpired term of 11.5 years (7 year to tenant break option).
•Passing Rent of £170,000 per annum (£10.46 per sq ft).
Seeking offers of £1,640,000 (One Million Six Hundred and Forty Thousand Pounds) after 5.8% purchasers’ costs. This reflects a Net Initial Yield of 9.8% and a capital value of £100.94 psf. Subject to contract and exclusive of VAT.
Asset Management Options
•Good rental growth prospects with a lack of office accommodation in the immediate vicinity.
•Prospect of re-gearing the lease with a strong tenant, Bilfinger Industrial Services (UK) Limited.
•The property provides easy sub-division allowing a flexible space in the future.
•In the unlikely event the tenant vacates there is a good opportunity to fully refurbish the accommodation.
Location
Runcorn is located in the north west of England in the County of Cheshire. The town is located on the southern bank of the River Mersey 2.0 miles (3.2 km) south of Widnes. Warrington sits 8.0 miles (12.9 km) to the north east, Chester is 15.6 miles (25.2 km) to the south west, Liverpool is 16 miles (26.0 km) to the west and Manchester is 26.6 miles (41.2 km) to the east.
Runcorn has a district population of 120,000 persons (Census, 2011). The town is recognised as one of the main commercial locations in Cheshire.
Runcorn, enjoyed “New Town” status and the town’s transport infrastructure reflects this through its series of dual carriageways “expressways” which form a ring around the town, providing excellent regional transport links connecting via Junctions 11 and 12 of the M56 (2 miles to the south) and Junction 7 of the M62 (6 miles to the north). In autumn 2017, the Mersey Gateway Bridge will open providing a new six lane toll bridge over the Mersey between Runcorn and Widnes.
Runcorn’s railway station is on the West Coast Main Line and provides frequent services to Liverpool and London Euston with a fastest journey time of 19 minutes and 2 hours respectively.
Manchester International Airport is within 30 minutes drive and Liverpool John Lennon Airport is within a 15 minute drive.
Manor Park is an extensive employment site providing a mix of industrial and office uses. It is situated between Daresbury Expressway and the Manchester Ship Canal approximately 2 miles east of Runcorn. Initial development at Manor Park started in the 1980’s, however Axis House was constructed as part of one of the more modern phases.
The property is situated on the north side of Tudor Road to the east of Norton Priory Museum and Gardens in a landscaped setting. The property is easily accessible via both road and rail, with Runcorn East railway station 1.9 miles (3.0 kilometres) to the south and Junction 11 of the M56 motorway 3.4 miles (5.5 kilometres) to the North West.
Local occupiers include Ricoh, Thermo Fisher and 3M UK Plc.
Accommodation
The building, which is used as Bilfinger’s Headquarters, provides a total measured area of 16,247 sq ft over three storeys.
Terms
Proposal
Seeking offers of £1,640,000 (One Million Six Hundred and Forty Thousand Pounds) after 5.8% purchasers costs. This reflects a Net Initial Yield of 9.8% and a capital value of £100.94 psf. Subject to contract and exclusive of VAT.
Tenancy
The building is let at £170,000 per annum to Bilfinger Industrial Services (UK) Limited with a remaining lease term of 11.5 years (7 years to tenant break option). This reflects an annual rent of £10.46 per square foot inclusive of car parking, with the next rent review on 28 March 2021.
The break option is subject to 6 months notice.
The property is Freehold
The property is elected for VAT. We anticipate the transaction will be dealt with by way of a Transfer of Going Concern (TOGC). Subject to purchaser compliance.
Copies of the EPC can be provided to interested parties.
Covenant
Bilfinger Industrial Services (UK) Limited provide an excellent covenant of 4A1 Minimum Risk of Business Failure by Dun & Bradstreet.
Bilfinger has recently secured a number of medium and long term contracts in addition to being awarded the ROSPA order of Distinction Award 2014, which further enhances their reputation as a leading Industrial Services supplier to the UK Process Petrochemical & Power Industries.
Specification
The current specification includes:-
- Modern, three-storey office, let to a strong covenant
- Solid concrete carpeted floors.
- Perimeter trunking.
- Single glazed timber framed windows, some with sliding doors to external areas including balconies.
- Independently controlled Fujitsu R407E air conditioning to all floors.
- A combination of recessed spot lighting and surface mounted Cat II Lighting.
- Tenant installed canteen to the ground floor.
- Landscaped gardens.
- CCTV and intruder alarm system.