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

For Sale by private treaty.

Offers based on £2,750,000 for the Freehold interest, equating to a net initial yield of 4.95% (allowing for purchasers costs of 6.42%)

Freehold Student Investment Opportunity

Virginia House is a former office building that underwent a back to frame strip out in early 2020. The property has been refurbished to a high specification including full replacement of mechanical and electrical installations and windows.

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 located in the West Midlands and is the commercial & 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 & 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.

SITUATION
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 only 30m from The Hive Library and 15m from The Crowngate Shopping Centre which incorporates Worcester Bus Station and Crowngate Car Park.

The property is situated close to the junction with Croft Road (A449) and All Saints Road (A44) which forms part of the Worcester Ring Road and provides easy access to the M5 motorway.

THE UNIVERSITY OF WORCESTER
The University of Worcester has been ranked in the top 3 in the UK for quality education in 2019, 2020 & 2021 (Times Higher Education's University Impact Rankings). The university has been shortlisted three times as the Times Higher Education's University of the Year - in 2016, 2019 and 2020 - and twice for University of the Year in the UK Social Mobility Awards in 2019 and 2020.

The student population for the 2019 / 2020 academic year was 10,179 with approximately 82.5% of students studying an undergraduate course.

Tenure
The 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 122 years.

The current passing rent is £145,000 per annum, subject to annual (10th 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 C.

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.