Summary
Newly Refurbished Multi-Let Office Investment
Investment Summary
• Warwick Technology Park is an established and prime out of town office park in the M40 / M42 corridor.
• Strategic location near Junctions 13, 14 and 15 of the M40 Motorway.
• One Warwick Technology Park comprises a headquarters style office building, recently refurbished to Grade A standard.
• The property extends to 49,157 sq ft over three floors.
• Fully-let to three principal tenants; Accenture (UK) Ltd, Baker Hicks Ltd and Delphi Diesel Systems Ltd.
• The property currently produces a net rental income of £984,658.50 per annum (including additional car park rent), reflecting £18.14 per sq ft overall.
• Baker Hicks and Delphi Diesel Systems have both committed to new leases on refurbished accommodation, setting a new headline rental level in excess of £19.00 psf.
• Reversionary potential via the future refurbishment of Accenture's accommodation, which is yet to be refurbished and is currently let off £16.02 psf.
• Excellent covenant strength with all tenants offering D&B rated minimum risk covenants.
• Average weighted unexpired lease term of 8.75 years to expiry and 5.69 years to break, the property benefits from long term income security.
• Freehold.
Proposal
We are instructed to seek offers in excess of £13,175,000 (Thirteen Million One Hundred and Seventy Five Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive Net Initial Yield of 7.00% and a low capital value of £268.01 per sq ft, assuming full purchasers’ costs.