Description
The property comprises a three-storey office building that has been comprehensively refurbished and substantially extended, with works completed in late 2022.
The landlord invested approximately £5.3 million in capital expenditure, equating to circa £140 per sq ft. The original building has been significantly enhanced through the addition of a two-storey rear extension, delivering a total of 38,330 sq
ft of high-quality Cat A office accommodation, complemented by generous communal areas.
Location
Basildon, situated in Essex, is the largest town and primary commercial hub in the Borough of Basildon. Located approximately 11 miles (17.6km) south of Chelmsford and 26 miles (41.6km) east of Central London, it occupies a strategic position within the northern part of the Thames Gateway, the UK’s largest regeneration area.
The property occupies a prominent position fronting Miles Gray Road at its junction with Bentalls, running parallel to the A127. It is situated to the north of Basildon town centre within the well-established industrial area of Pipps Hill.
Basildon
Basildon was one of eight ‘New Towns’ established in the South East of England following the introduction of the New Towns Act. On 4 January 1949, Lewis Silkin, the Minister of Town and Country Planning, formally designated Basildon as a New Town. In February 1949, the Basildon Development Corporation was created to develop the designated area into the modern town we see today.
Basildon is a key commercial hub in Essex, with a population of approximately 187,600. It has the second largest economy along the eastern stretch of the River Thames, after Canary Wharf.
The town is home to a number of internationally recognized and highly successful advanced manufacturing and engineering
companies, including Ford, New Holland Agriculture, Konica Minolta, Costa.
Executive Summary
Basildon has a resident population of over 187,700 people, with approximately 460,000 individuals within a 20-minute drive
time.
The town is located approximately 26 miles (41.6km) east of Central London and sits at the centre of one of largest urban areas in Essex.
The subject property has 30,150 sq ft net lettable area (NLA) of Grade A multi-let office accommodation from a total of 38,330 sq ft (NIA).
The property was refurbished and extended in 2022 to an excellent specification following £5.3m of capex (£140 psf), resulting in best in class office suites, with low total occupancy costs.
The accommodation has been divided into office suites ranging from 1,000 sq ft to 7,000 sq ft.
Current total rental income: £670,617.50 per annum (£22.50 per sq ft overall).
Currently 80% let, the asset offers immediate income with strong reversionary potential. The vendor is providing a 12-month rental guarantee on the vacant accommodation.
The freehold site is 0.917 acres (0.371 hectares).
Substantial capital allowances available by way of further negotiation.
Offers invited in excess of £7,000,000 (Seven Million Pounds) representing a Net Initial Yield of 8.96%, assuming purchasers cost of 6.65%. Reflecting a low capital value of £182 per sq ft NIA.
Tenure
The freehold interest of the site is held under title number: EX589133
Site Area of 0.917 acres (0.371 hectares)
The property includes a power substation on the North Eastern flank of the building.
Service Charge
The current service charge budge totals £135,675 equating to £4.50 per sq ft.
Further service charge information is available in the data room.
VAT
The property is elected for VAT. We anticipate the transaction will be treated by way of a Transfer of a Going Concern (TOGC).
EPC
Energy Performance Certificates are available in the dataroom.
Anti-Money Laundering
In accordance with AML Regulations, the successful purchaser will be required to satisfy the Vendor on the source of funds for this acquisition.
Capital Allowances
There are substantial capital allowances available by way of further negotiation
Proposal
Offers invited in excess of £7,000,000 (Seven Million Pounds), representing a Net Initial Yield of 8.98%, assuming standard purchaser’s costs of 6.65%. Reflecting a low capital value of £182 per sq ft NIA.
