Virginia House, The Butts, Worcester, Worcestershire, WR1 3PA

For Sale by private treaty.

Offers are invited based on £1,950,000 for the Freehold interest, equating to a net initial yield of 7.00% (allowing for purchaser's costs of 6.26%).

Long-Income Student Accommodation Investment 119 Years Unexpired Lease Term

Virginia House is a former office building that has been refurbished to a high specification including full replacement of mechanical and electrical installations and windows.
The accommodation is arranged over ground and three upper floors and extends to approximately 15,332 sq ft (Gross Internal Area) in total containing 42 letting rooms in 3 distinct styles and layouts. Each apartment is self contained and comprises: bedroom, bathroom, kitchen and integrated storage.
The ground floor provides open plan communal living accommodation incorporating: gym, cinema room, dining area, kitchen and games room. There are laundry facilities located on the upper floors and 10 car parking spaces (includes 1 disabled space).
There is a passenger lift for access to the upper floors and dual entrances in the north and south elevation.
The tenant is currently exploring the potential to add two additional floors to the property which would deliver a further 28 rooms.

Accommodation
The property extends to 15,332 sq. ft. (1,424.90 sq m) of accommodation on a site of 0.23 acres (0.09 hectares).
Externally, the property benefits from 10 car parking spaces including 1 disabled parking space.

Ground Floor - Common Entrance, Cinema Room, Dining Room, Student Lounge, Gym, Fitness / Yoga Studio.
First Floor - 6 Studios, 4 Deluxe Studios, 4 Double Apartments, Laundry
Second Floor - 6 Studios, 4 Deluxe Studios, 4 Double Apartments, Laundry
Third Floor - 6 Studios, 4 Deluxe Studios, 4 Double Apartments, Laundry

Total - 18 Studios, 12 Deluxe Studios, 12 Double Apartments.

Location
Worcester is a Cathedral City and is the commercial and administrative hub for Worcestershire. The city has a population of 100,300 (2020) and is located approximately 135 miles north west of London, 32 miles south west of Birmingham and 25 miles north of Cheltenham.
Worcester city centre is situated approximately 3 miles to the west of the M5 Motorway (Junctions 6 and 7). The M5 Motorway connects with the M42 Motorway approximately 16 miles north of the property and to the M50 Motorway approximately 12 miles to the south.
Virginia House is situated in a highly prominent corner position on The Butts, one of the principal routes linking the inner ring road, Crowngate Shopping Centre and Worcester City Centre. The property is positioned in the heart of Worcester City Centre within walking distance of The Hive Library and The Crowngate Shopping Centre which incorporates Worcester Bus Station.

Tenure
This property is held Freehold under Land Registry Title number: WR22172

Tenancy
The property is let to Virginia House Limited (company registration number 11487209) on a FRI lease term of 125 years from 10 March 2020 until 9 March 2145, reflecting an unexpired lease term of 119 years.
The current passing rent is £145,000 per annum, subject to annual (10 March) upward only rent reviews. The rent will increase by a percentage of the gross rent received by the tenant, Virginia House Limited. This opportunity provides long term income security with minimal asset management input.

VAT
The property is elected for VAT. It is anticipated that the transaction will be treated as a transfer of ongoing concern (TOGC).

EPC
The property has an EPC rating of D.

Legal Costs
Each party is to be responsible for their own legal costs that may be incurred in this transaction.

Anti Money Laundering
The successful purchaser will be required to provide anti-money laundering information in accordance with HMRC regulations when Heads of Terms are agreed.