3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell

3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

Well-Secured | Reversionary | Modern Office Park Investment

HOME 1 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

Investment Summary

• Pair of modern two-storey office properties built in 2005 • Let on unbroken 15-year FRI leases from March 2016 to SDL • Total ERV: £192,500 per annum (£13.50 per sq ft) Surveying Limited and SDL Group Services Limited • Located on a popular, well-established business park near M1 (J25) • Offers in excess of £2,125,000 exclusive, reflecting 8.5% net initial • Total current rent: £120,000 per annum (reflecting a low rate of yield (after rent top-up and purchaser’s costs), 9% reversion (March • Freehold £8.40 per sq ft overall) 2021) and a capital value of £149 per sq ft • Totalling 14,253 sq ft (NIA) • Subject to upward only rent reviews in March 2021 and 2026 • Subject to Contract

2 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

6 86 6 6 6 6 6 7 2 6 6 1 M1 2 6 6 62 Location

6 3 7 2

Chetwynd Business Park, Chilwell 6 1 2

Chetwynd Business Park was developed by 6 6 William Davis in the early to mid-2000s and is a recognised office park within the Nottingham 6 1 6 out of town market. The estate comprises nine

2 pavilion style offices providing detached and 1

6 semi-detached buildings offering suites ranging

2 2 3 from circa 3,000 sq ft to 12,000 sq ft. 43 6

The estate is located in Chilwell, which is a well- 6 established residential suburb approximately 6 6 E four miles south-west of Nottingham City Centre via the A6005. M1 4 6 Major transport connections include the 43 A52 which links Nottingham with Derby (approximately 10 miles to the west), the M1 Motorway (J25 is three miles north-west via the A52) and East Midlands Parkway which is located on the Midland Main Line and connects M1 J24 Nottingham, Leicester and Derby. A453 M1 J25 In addition, Toton Tram Stop and Park & Ride is 1.5 miles north and East Midlands Airport is circa 10 miles south-west via the M1 (J24). Tesco Extra Chilwell The estate also benefits from extensive retail Retail Park Chetwynd Business Park and leisure amenities including Chilwell Retail Village Hotel Park, Village Hotel, Tesco Extra and West Point Shopping Centre (all within 0.5 miles). West Point Occupiers on Chetwynd Business Park include Shopping Centre First Response Finance, AECOM and Azets, among others.

3 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

3-4 Regan Way 17 Regan Way

Description Accomodation

The properties were constructed in 2005 and • Kitchen/canteen facilities (with projector and games The properties comprise the following net internal areas: each comprises a two-storey pavilion style office area in Unit 17) building of brick elevations with inset powder Property/Floor Sq M Sq Ft • Fully accessible raised floors coated aluminium framed windows beneath 3-4, Ground 411.50 4,430 a pitched slate tiled roof. Each building is • Double glazed windows 3-4, First 437.79 4,719 self-contained with its own paved car parking provision of 49 and 24 spaces respectively. • Suspended ceilings with inset category 2 lighting Sub-total 849.29 Sq M 9,149 Sq Ft and recessed comfort cooling Car Parking 49 spaces Each building comprises the following internal specification: • Carpeted floors 17, Ground 238.64 2,568 17, First 235.58 2,536 • Two floors of predominantly open plan office • 630 kg capacity lift (Unit 17) accommodation Sub-total 474.22 Sq M 5,104 Sq Ft

• Glazed meeting rooms and breakout space Car Parking 24 spaces Total 1,323.51 Sq M 14,253 Sq Ft Car Parking 73 spaces

4 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

3-4 Regan Way 17 Regan Way

5 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

3-4 Regan Way 17 Regan Way

Tenure & Tenancy Key Financials

Tenure surveying and now works with most major lenders in SDL Surveying Limited Established 08/08/1989 the UK, managing approximately 220,000 valuations Each property is held Freehold within a separate per year via a mixture of employed surveyors and an Credit Score 55 B: Low Risk title, comprising the building and car parking. external network of local independent surveyors. 31/03/2019 31/03/2018 31/03/2017 Turnover £25,781,901 £16,402,615 £15,298,675 Tenancy 17 Regan Way is let to SDL Group Services Limited as the Head Office of the SDL Group, which provides Pre-Tax Profit £821,253 £1,352,746 £1,979,394 Each property is let on an identical lease for 15 auction, property management, lettings and estate years from 29 March 2016 without break on fully Net Assets £99,464 £7,487,377 £6,631,144 agency services nationally. The Group’s brands repairing and insuring terms subject to 5-yearly Employees 81 191 131 include SDL Auctions and Auction Partners, SDL upward only rent reviews to Market Rent. The Property Management and Property Partners and initial rent is: 3-4 Regan Way: £72,000 per annum Century 21. SDL Group Services Limited Established 10/03/2017 and 17 Regan Way: £48,000 per annum. Both companies are subsidiaries of Mortgage and Credit Score 31 C: Moderate Risk Covenant Information Surveying Services Limited, which is an industry 31/03/2019 31/03/2018 leader in providing technology-led financial services Turnover £198 £23,150 3-4 Regan Way is let to SDL Surveying Limited, for the UK property market with a turnover of £92m Pre-Tax Profit -£33,911 £6,719 which is the UK’s largest independent provider of (31/03/2019), focusing on market leading mortgage, mortgage valuations. Established in 1989, SDL insurance and surveying services. Net Assets -£63,445 £6,729 pioneered the panel management approach to Employees 471 23

6 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

Market Commentary

Nottingham has a well-established out of town The subject properties are in good condition and to Storefeeder Limited (guaranteed by Royal Mail Columbia Threadneedle Investments for £3,350,000, office market, with average take-up of 150,000 sq ft well-specified, both benefiting from recent internal Group) at a rent of £14.75 per sq ft, which was reflecting a net initial yield of 6.75%. The 14,822 to 200,000 sq ft per annum. Relatively limited supply refurbishment to create attractive and productive sold in January 2020 for £1,250,000 reflecting a net sq ft office building is let to Centres for Assisted has helped to maintain and increase rental levels workspaces. The current rents set in 2016 reflect low initial yield of 6.9%. Reproduction for a further 12 years. within the out of town market, which shows similar rates of £7.87 per sq ft and £9.40 per sq ft respectively, A recent significant investment in the Nottingham Closer to Nottingham City Centre, the prime City Fringe levels of leasing activity to the City Centre and has reflecting scope for significant rental growth. out of town market is the acquisition of Beeston estates are NG2 and Castlebridge Office Village, where the benefit of good connectivity, ample car parking The most recent comparable letting on the estate Business Park by Regional REIT in December 2020 rental values are circa £17 to £19 per sq ft. and is relatively better value. was at 2 Regan Way to Azets (formerly Baldwins) for £16,400,000, reflecting a net initial yield of These transactions provide recent evidence of rents Chetwynd Business Park is a recognised office park for 10 years from January 2020 at £113,000 per 10.1%. The estate comprises 220,274 sq ft including and yields achieved within the Nottingham out of within the Chilwell area of Nottingham, which has annum, reflecting £13.87 per sq ft. This property was a flagship multi-let office building on a total site town market including at Chetwynd Business Park and been developed on former Ministry of Defence land subsequently sold in September 2020 at a net initial area of 26.5 acres. Tenants include Metropolitan support a rental value for the subject properties of to provide a mixture of residential, industrial, office, yield of 7.2% and a capital value of £175 per sq ft. Housing Trust, Worldwide Clinical Trials and Heart at least £13.50 per sq ft, with scope for further rental retail and hospitality accommodation in what has Internet (t/a GoDaddy), with an aggregate rent of Other principal estates include Interchange 25 at M1 growth over time. become a well-established and popular suburb. £1,463,670 per annum and a weighted average J25, Nottingham Business Park and Phoenix Business Occupiers on Chetwynd Business Park include First lease term of 7.8 years to break. This reflects an aggregate Market Rent of £192,500 Park at M1 J26, where rents are in the region of £14 Response Finance, AECOM and Azets and the estate per annum (3-4 Regan Way: £123,500 per annum, 17 to £15 per sq ft. An example of this is the letting of Also in December 2020 was the sale of John benefits from good occupancy levels with very Regan Way: £69,000 per annum). Davy House at Phoenix Business Park in January 2019 Webster House on Nottingham Business Park by limited availability.

7 3-4 & 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZ

Service Charge

Each property contributes to a nominal service charge in relation to the upkeep and maintenance of the estate, which is recovered from the tenants under the existing lease terms.

17 Regan EPC Way

3-4 Regan Way: C64 | 17 Regan Way: C65.

VAT

The properties are opted to tax. It is anticipated that the transaction will be treated as a TOGC.

Terms

Offers in excess of £2,125,000 exclusive for the Freehold interests. This value reflects a net initial yield of 8.5% (after rent top-up* and purchaser’s costs of 6.31%) a reversionary yield of 9% (March 2021) and a capital value of £149 per sq ft.

Offers for each property individually will also be considered.

* The vendor will top-up the current rent to the Market Rent of £192,500 per annum from the date of completion to the date of the next rent review. 3-4 Regan Way

Subject to Contract.

Contacts

For Further information, please contact:

Nick Hammond 0121 265 7587

07717 652 778 MisrepresentationOrdnance Act Survey Crown Copyright 2021. All rights reserved. Licence number 100022432. [email protected] Colliers InternationalPlotted gives Scale notice- 1:1250. that Paper these Size particulars – A4 are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. February 2021. Colliers International is the licensed trading name of Colliers International Property Advisers UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA.