Investment / Development Opportunity 117 Bushey Mill Lane | Watford | WD24 7UN 117 Bushey Mill Lane | Watford | WD24 7UN
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Investment / Development Opportunity 117 Bushey Mill Lane | Watford | WD24 7UN 117 Bushey Mill Lane | Watford | WD24 7UN Investment Summary • Located close to Watford town centre, with excellent access to the M1 and M25 motorways and the A41. • Office and industrial property totalling approximately 2,260 sq m (24,327 sq ft) GIA. • Prominent corner position with a site area of 0.57 hectares (1.42 acres). • Mixture of surrounding land uses including trade counter, industrial, warehouse and residential. • Let to McNicholas Construction (Holdings) Ltd until May 2019, with a guaranteed uplift at next rent review in 2014. • Current passing rent of £227,130 p.a. (£9.34 per sq ft). • Guaranteed minimum uplift at the next review to £256,977 p.a. (£10.56 per sq ft), or open market value. • Planning permission secured for a trade counter redevelopment scheme of approximately 2,508 sq m (27,000 sq ft). • Offers sought in excess of £2,600,000 reflecting a net initial yield of 8.25%, with a guaranteed reversion to a minimum of 9.35% after purchase costs of 5.7625%. Aerial image courtesy of Blom Aerofilms Ltd Investment / Development Opportunity Location Watford is a principal town in Hertfordshire and is a strong commuter centre and retailing destination, located approximately 27km (17 miles) north west of Central London, 11km (7 miles) south of Hemel Hempstead and 13km (8 miles) south west of St Albans. The town benefi ts from excellent road communications, being strategically located within 5km (3 miles) of the M1 (Junction 5) and M25 (Junctions 20 & 21). In addition, the town is situated on the London Underground (Metropolitan Line) and also benefi ts from excellent rail communications into central London (Euston) with a fastest journey time of approximately 14 minutes from Watford Junction station. Watford benefi ts from being located within a 1 hour drive from all London airports. Greycaine Road Industrial Estate Situation M1 The property is situated approximately 1.6km (1 mile) to the north of Watford town centre in a prominent position at the A41 corner of Bushey Mill Lane and Greycaine Road. Bushey Mill Lane and Greycaine Road are established trade counter and showroom areas. Nearby occupiers include Dulux Paints, Partco, HSS, Booker Cash & Carry, Curtain Mill, A&A M1 Junction 5 Self Storage and Bathroom Heaven. The surrounding area is a mix of residential, retail and industrial uses. 117 Bushey Mill Lane | Watford | WD24 7UN Description We understand the property dates in the main from the early to mid 1970’s construction, whilst a small part dates from the 1930’s. The front office block (Building 1) is single storey, with a pitched and flat roof and a steel frame structure in the main, with brick / block elevations. The 2 storey office block to the rear (Building 2) is of similar construction but with concrete first floor and a timber roof. The industrial warehouse to the rear comprises single storey steel portal frame construction in part whilst the older industrial workshops comprises steel lathe roof trusses and channel section purlins. There is a storage yard to the rear. Accommodation We have been advised the unit provides a Gross Internal Area of 2,260 sq m (24,327 sq ft), a breakdown of which is as follows: Building Use Areas Sq m Sq ft Building 1 Offices 807 8,686 Building 2 Offices (Grd & 1st) 307 3,305 Industrial Warehouse/Workshops 1,146 12,336 Total 2,260 24,327 Site The property occupies a site area of approximately 0.57 hectares (1.42 acres). Investment / Development Opportunity Tenure Freehold Tenancy The property is let in its entirety to McNicholas Construction (Holdings) Ltd, for a term of 15 years from May 2004. The current rent payable is £227,130 per annum (£9.34 per sq ft). The lease is subject to a rent review in May 2014 and the rent will increase by way of a guaranteed minimum YARD increase to £256,977 per annum (£10.56 per sq ft), or open market value, whichever is the higher. The lease is on full repairing and insuring terms, subject to a schedule of condition. Covenant Information INDUSTRIAL McNicholas are a civil engineering company incorporated in 1971. McNicholas Construction (Holdings) Ltd have been awarded a risk score of 71 out of 100 by ICC Credit, indicating confidence with low risk potential. BUILDING 2 Date of 31/03/2008 31/03/2007 31/03/2006 Accounts BUILDING 1 Turnover £168,041,000 £169,918,000 £143,529,000 Pre Tax Profits £4,241,000 £3,219,000 £1,507,000 Shareholders Funds £13,417,000 £10,118,000 £7,471,000 McNicholas is a service provider with wide experience of working in the utilities, communications, renewables and rail markets (www.mcnicholas.co.uk) and has a long term relationship with National Grid Transco. 117 Bushey Mill Lane | Watford | WD24 7UN Trade Counter Development Opportunity Planning permission was granted on 28th February 2007 for North Watford Train Station the demolition of the existing buildings and erection of new A412 units B1 (Business), B2 (General Industrial) and B8 (Storage HSS Hire and Distribution) with service yard and car parking. Dulux Centre The units are permitted an element of retail / showroom / Partco trade counter use of no more than 10% of the maximum floor area of any individual unit. The B1 and B8 planning permission will specifically allow A&A Self Herts Equipment Rental approximately 27,000 sq ft of new accommodation to be Storage constructed. Potential occupiers for the scheme having regard Bushey4000 Mill sq ftLane 6000 sq ft 3850 sq ft – 11,600 sq ft Bathroom Heaven to the trade counter and showroom use could include the 2870 sq ft 2600 sq ft Decor Tiles following: • Tool / plant hire • Floor covering supplier A4008 • Tyre / Exhaust Centre • Plumbing centre supplier Greycaine Road • Tile Centre • Glass merchant / window Gap The Curtain Mill Plant and • Kitchen and Bathroom centre Tool Hire Centre • Electrical component • Office furniture distributor • Trade Paint supplier A copy of the planning permission can be made available to interested parties upon request. Investment / Development Opportunity Value Added Tax The property is elected for VAT and therefore VAT will be payable on the purchase price. Proposal Bushey Mill Lane Offers sought in excess of £2,600,000 reflecting a net initial yield of 8.25%, with a guaranteed reversion to a minimum of 9.35% after purchase costs of 5.7625%. UNIT 4,0 00 sq ft1 UNIT 3 UNIT 4 From 2,870 sq ft 2,600 sq ft 3,850 sq ft – 11,600 sq ft 6, UNIT 000 sq ft 2 Greycaine Road.