Investment Sale
London House, London Road, Bracknell, RG12 2UT
Freehold Office Investment
London House, London Road, Bracknell, RG12 2UT
Executive Summary
• Located in the heart of the Thames Valley.
• Excellent access to the A329(M) and A322 linking J10
of the M4 and J3 of the M3.
• Established office pitch.
• Modern well-specified town centre office.
• Total floor area of 13,913 sq ft (1,292.5 sq m).
• Excellent parking ratio of 1:272 sq ft.
• Freehold.
• Let to the strong covenant of Software AG (UK) Ltd for a
further 11.5 years (6.5 years to break).
• The property currently produces £336,775 per annum,
reflecting a rent of £24.21 per sq ft (£260.56 per sq m).
• Seeking offers of £3,350,000 (Three Million Three
Hundred and Fifty Thousand Pounds), subject to
contract, which reflects an attractive net initial yield of
9.50% after purchaser’s costs of 5.75%.
www.lshinvestmentsales.co.uk
LONDON HOUSE
LONDON ROAD
BRACKNELL
RG12 2UT
London House, London Road, Bracknell, RG12 2UT
21
52
46
39
36
18
16
14
35
© Crown Copyright 2011. All rights reserved. Not to scale.
50
10
12
20
22
48
28
6
8
4
24
26
2
32
27
28 9
2
30
31
London Court
Stylus
London House
House
251 to 269
232 to 250
Hotel
El Sub Sta
Continuity Hou
se
25
LONDON ROAD
53
39
27
Apex House
Manningford
13
10
Bracknell is considered to be the heart of the M25-west high-tech
region with 40.7% of the workforce employed in the “Financial &
Business Services” sector and 16.9% employed in the “Computing,
R&D and Telecoms” sub-sector. This ranks the town 1st in terms of
Greenwood House
Hayley
House
El Sub Sta
conditioning,
males & female WCs to each floor and double glazed
30m
windows. Externally the property benefits from a glazed front
elevation with brick-clad side and rear elevations, beneath a flat roof.
20
The town benefits from excellent road communications, being
linked via the A329(M) and A322 dual-carriageway to J10 of the
M4, approximately 6km (4 miles) to the west, and J3 of the M3,
approximately 8km (5 miles) to the south east. The M25 lies within
the 20-minute contour of Bracknell town centre, giving access to
the wider national motorway network. Bracknell is well-served by
rail connections, with frequent connections to London Waterloo
giving an average journey time of 62 minutes. International air travel
is provided via Heathrow airport, approximately 21km (13 miles) to
the east, and Gatwick airport, approximately 48km (30 miles) to the
south east.
Major employers in the area include Cable & Wireless, Dell, Waitrose,
Hewlett-Packard, 3M UK, Panasonic, Fujitsu and Johnson & Johnson.
20m
El
Sub
Sta
28
Bracknell is an established economic centre in the Thames Valley, the
premier office location in the South East. Bracknell is well located
being approximately 43km (27 miles) west of London and 16km (10
miles) east of Reading, with Oxford approximately 50km (31 miles) to
the north west.
the proportion of high-tech employment across the UK. The town0m 10m
benefits from a district population of 109,617 with a total population
of 1,157,144 within a 20km (12.5 miles) catchment.
THE OAKS
Location
THE OAKS
Ordnance Survey © Crown Copyright 2011. All rights reserved. Licence number 100020449. Plotted Scale - 1:1250
The property benefits from 51 car parking spaces to the rear
providing an excellent car parking ration of 1:272 sq ft.
Situation
The subject property is located on the northern side of the A329
London Road, immediately to the east of Bracknell town centre.
London Road feeds directly into the ring road giving access to the
A329(M) and A322. The property is located approximately 1km (½ a
mile) from Bracknell train station in a predominantly commercial area.
The immediate vicinity comprises offices with occupiers including LSI
and Netgear together with a Travelodge hotel immediately to the east
and residential blocks further west.
Description
The property comprises a prominent self-contained office building
fully refurbished in 2007 to a modern specification. The property
offers open plan office accommodation over three floors. Internally,
the property benefits from a ground floor reception area, 13-person
passenger lift, metal-tile suspended ceiling, raised floors, air
www.lshinvestmentsales.co.uk
London House, London Road, Bracknell, RG12 2UT
Site
Tenure
Covenant
The site is level and extends to an area of approximately 0.58 acres
(0.24 hectares).
Freehold.
Accommodation
The property is let to Software AG (UK) Ltd on full repairing and
insuring terms from 10th January 2008 until 9th January 2023 at a
rent of £336,775 per annum, reflecting £24.21 per sq ft. There is a
tenant-only break on 10th January 2018, providing an unexpired term
of 11.5 years to expiry, 6.5 years to break.
Software AG (UK) Ltd is a software developer and supplier of
integrated applications and systems. The last 3 years’ audited
accounts are as follows:
We have measured the property in accordance with the RICS Code
of Measuring Practice (6th Edition) comprising the following net
internal areas:
Floor - Use Sq Ft Sq M
Ground - Reception
506
47.0
Ground - Offices
4,157
386.1
First - Offices
4,611
428.4
Second - Offices
4,639
431.0
Total
13,913 1,292.5
Tenancy
The lease is subject to 5-yearly upward-only reviews, with the next
review due 10th January 2013.
Tenant
Software AG
(UK) Ltd
Year
Turnover Pre tax profit Shareholder
Ending
Funds
31/12/2009 £36,365,000 £8,406,000 £8,323,000
31/12/2008£33,887,000 £9,361,000£19,742,000
31/12/2007£24,507,000 £7,385,000£19,083,000
Planning
We understand that the property benefits from consent within Class
B1 of the Town and County Planning (Use Classes) Order 1987. The
property is not zoned under the Bracknell Forest Borough Local Plan,
adopted January 2002 (revised February 2008).
www.lshinvestmentsales.co.uk
London House, London Road, Bracknell, RG12 2UT
Market Commentary
VAT
Bracknell is an established economic centre strategically located
between London and Reading, at the eastern end of the Thames
Valley. The town is well-served by road and rail links, with Heathrow
airport in close proximity, making it an excellent strategic base for
occupiers. London Road is a central office location adjacent to the
town centre, providing easy access to the town centre amenities and
railway station.
The property is elected for VAT.
Contacts
Proposal
Lambert Smith Hampton
United Kingdom House
180 Oxford Street
London W1D 1NN
Lambert Smith Hampton
Holybrook House
63 Castle Street
Reading RG1 7SN
Hugh White
Tom Fletcher
020 7198 2212
0118 960 6914
The Thames Valley office market has remained robust during the
recent recession, with demand underpinned by the excellent multinational occupier base and highly-trained workforce. Bracknell
continues to host a large number of blue-chip occupiers who have
based themselves in the town for many years.
We are instructed to seek offers of £3,350,000 (Three Million Three
Hundred and Fifty Thousand Pounds), subject to contract, which
reflects an attractive net initial yield of 9.50% after purchaser’s costs
of 5.75%.
[email protected]@lsh.co.uk
Steve Parry-Jones
020 7198 2233
[email protected]
Bracknell town centre is subject to a proposed large-scale
redevelopment which will create new leisure and civic facilities and
revitalise the town’s main retail offering. Immediate plans include the
development of a new Waitrose supermarket on the north western
side of the town centre and the renovation of the entrance to
Princess Square.
Further information on the property can be obtained from:
www.lshinvestmentsales.co.uk
Subject to Contract and Exclusive of VAT © Lambert Smith Hampton July 2011
Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without
responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any
guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided
shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any
representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any
prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from
the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’
impressions or architects’ drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any
expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.