Investment Sale – Unit 5-6 Cadwell Lane Industrial Estate, Bilton Road, Hitchin, Herts, SG4 0SB

DESCRIPTION

The property comprises one main and one subsidiary building within a self-contained site. Fronting Bilton Road is the main building of streel portal frame construction in a single bay with an eaves height of approx. 7.05m (8.35m to ridge).

It has (fire rating confirmed) profiled panelled external elevations and roof with concrete blockwork internally up to a height of 2m. The offices have an impressive reception area with 8-person passenger lift, smart ground floor staff / breakout area, attractive first floor open-plan offices (with exposed ceiling services), boardroom and meeting room. There is a heavy-duty concrete production mezzanine area at the rear.

There are various loading doors around the perimeter of the production area with a separate process bay with an overhead gantry (4.00m wide x 4.00m high and to the main bay 4.0m wide x 4.5m high).

All is fully serviced with a range of heating, power distribution and LED lighting.

A separate newer building at the rear was designed to be occupied separately in up to four bays but is currently divided into two without office accommodation. There is a concrete
mezzanine floor in one.

There is extensive parking at the front. Further car parking and open storage is at the rear (0.61 acres) with capacity for further development. Illustrative schemes are available upon request.

HITCHIN

The attractive market town of Hitchin is located in the area of North Hertfordshire District Council about 30 miles of central London.
It is close to Letchworth and approximately 4 miles west of Stevenage to which it is linked by the A405 dual carriagewayat A1(M) Junction 9. Luton is 10 miles to the west and Cambridge 27 miles to the north west

There is a fast-electrified train service to London Kings Cross / St Pancras in 36 minutes.

LOCATION

Located within the main commercial area accessed off Cadwell Lane it is in an estate of 6 units which are all owned individually.

APPROX. (GROSS INTERNAL) FLOOR AREAS

Unit 6   Ground Floor Main Production          23,264 Sq Ft

First Floor Offices                                 4,289 Sq Ft

Concrete Mezzanine production        4,184 Sq Ft

Total                                                     31,737 Sq Ft

Unit 5A       Ground Floor                                    5,704 Sq Ft

Concrete First Floor Mezzanine    1,117 Sq Ft

Unit 5B Ground Floor                      5,642 Sq Ft

Total                                                12,463 Sq Ft

Overall Total                                                    44,200 Sq Ft

Site Area                                  Approx.          2.5 Acres

LEASE

The property is to be let on a standard new FRI lease for a term to be agreed to Royde & Tucker Ltd at an initial rent of £360,000 per annum.

The lease will be on full repairing terms subject to a schedule of condition.

The permitted use is to be E(g)(iii), B2 and B8.

The tenant will reimburse the landlord's costs of insurance and estate service charge.

Full details are available on request.

SUBLETTING

To note Unit 5B is currently surplus to requirements and being offered to let at a rent of £65,000 per annum.

TENANT

Royde and Tucker will have been established 100 years in June 2024 and are the leading UK manufacturer of high performance architectural door hinges, other associated door hardware and pocket door systems with a strong brand.

Many of the landmark buildings in London, including the Gherkin, the Houses of Parliament, Windsor Castle and the Shard feature R&T products.

R&T, has a sound financial position and a secure business model. Further details are available on request.

Further information is available upon request.

MARKET COMMENTARY

Hitchin forms part of the north Herts cluster of commercial centres comprising Letchworth, Baldock and Stevenage. There is also good linkage with the adjoining centres of Luton and Welwyn / Hatfield.

The majority of the industrial and warehouse development in the town is located in the single large commercial area to the north west comprising Cadwell Lane/Lyon Way/Bilton Road and Wilbury Way / Hunting Gate / Knowl Piece / Hillgate.

Reflecting general occupier trends in the south-east, there are good continuing levels of occupier demand and very low levels of availability. There are no comparable buildings currently available within this market area and unsatisfied occupier requirements.

Established industrial and warehouse rents in Hitchin have clearly lagged behind the levels being achieved in adjoining centres, offering substantial rental growth potential.

Leading edge rentals in Stevenage are currently £15.00 psf and the IPIF Centrus scheme now under construction is quoting £16.50 psf.

Prime rents in Letchworth are establishing between £11 and £12 psf.

There have been no lettings of comparable properties in Hitchin recently to benchmark where we consider prime rents to be for properties of this quality but when it does occur, we anticipate this to be in excess of £10 psf.

2023 RATEABLE VALUE

A single assessment of £322,500

ENERGY PERFORMANCE CERTIFICATE

Unit 5 Category D (80) Unit 6 Category B (44)

TERMS

For sale on the basis of a 999-year lease from 2002 at a fixed rent of £100 per annum.

Offers are invited for the long leasehold interest in the region of £4,850,000 representing an initial yield of 7% after acquisition costs of 6%.

INSPECTION

For further information please contact either: Daniel Hiller or Mike Davies at Davies & Co

NOTES:

Unless otherwise stated all prices, rents or other stated costs are subject to VAT.

Under Anti-Money-Laundering Regulations we are required to obtain proof of identity for individuals and controlling Directors. The particulars contained within this brochure are believed to be correct but their accuracy cannot be guaranteed and they are therefore expressly excluded from any contract.