Investment Sale
Well Secured Office Investment
In excess of 9 years unexpired
AWG Group/HF Developments
Prospect House
3 Stanley Boulevard
Hamilton International Park
Blantyre
G72 0BN
Prospect House, Hamilton International Park
Executive Summary
Prospect
House
Lambert Smith Hampton Investment
■
Hamilton is located approximately 19 km (12 miles)
south east of Glasgow and 8 km (5 miles) east of East
Kilbride.
■
Road communications are excellent with the M74
(Junction 5) situated 1 km (1/2 mile) east of the subject
property.
■
Hamilton International Park is situated approximately
4 km (2.5 miles) west of Hamilton which has a
population of around 48,500 people and a district
population of approximately 354,000. The town is also
the headquarters for South Lanarkshire Council.
■
Hamilton International Park extends to some 116 acres
and currently provides 400,000 sq ft of flexible Grade
A accommodation with current occupiers including
Scottish Power, HSBC First Direct, John Lewis
Partnership, Babcock and Carillion. The Park also
benefits from on-site retail facilities and accessibility
to public transport and motorway routes.
■
The property provides approximately 46,000 sq ft
of modern office accommodation built over ground
and two upper floors let to AWG Group Ltd and HF
Developments Ltd, on a joint and several basis, with
the lease expiring 4 January 2020.
■
The current income is £636,619.50 pa.
■
We are instructed to seek offers in excess of £7,000,000
(seven million pounds) for the long leasehold interest.
A purchase at this figure will reflect a net initial yield
of 8.5% assuming purchaser’s costs of 5.75%.
Location
Hamilton is a major town, located in Scotland’s central belt and is
one of the principal towns in South Lanarkshire. The town is located
approximately 19 km (12 miles) south east of Glasgow city centre
and 8 km (5 miles) east of East Kilbride. Hamilton is an important
regional centre, being the administrative focus of South Lanarkshire
Council. Other major employers being Scottish Power, Phillips
(Electrical manufacturers) and First Direct.
Road communications are excellent. The town is adjacent to
Junction 6 of the M74 providing access to all routes north, south
and west. Work is currently underway for the completion of the
M74 extension which will provide a more direct route to Glasgow
International Airport situated 25 miles north.
The park is situated approximately 4 km (2.5 miles) west of Hamilton
town centre, situated on a primary bus route and is also some 1.5
miles from Blantyre station which provides regular services to
Glasgow and the national rail network.
Demographics
© Crown Copyright 2010. All rights reserved. Not to scale.
Hamilton benefits from a resident population of approximately
48,500 people (2001 census) extending to a catchment population
within 6 and 12 miles of 354,000 and 1,138,000 persons respectively.
lift serving each floor. The premises benefit from full raised metal
accessed flooring, suspended ceilings, incorporating cat 2 lighting,
and a comfort cooling (VRV System).
Situation
Accommodation
The subjects benefit from excellent communication links, being
situated directly adjacent to the A725 East Klibride Expressway
leaving the premises minutes drive from the M74 (Junction 5) which
links into the M73 and M8 Motorways to the north and to the south
via the M6. Other occupiers on the park include Scottish Power,
Babcock Rail, HSBC First Direct and Carillion. John Lewis Partnership
is the most recent addition to the park, taking some 40,000 sq ft in
the adjacent Fintry House.
Description
The premises comprise a modern, purpose built office, completed in
2003 and provides modern open plan office accommodation over
ground and two upper floors. The building is entered through an
impressive triple height entrance feature with a 10 person passenger
The property has been measured in accordance with the RICS Code
of Measuring Practice (6th Edition) and provides the following
approximate net internal floor areas:
Floor
Use
Sq M
Sq Ft
Ground floor
Office
1,386.26
14,922
First floor
Office
1,437.98
15,478
Second floor
Office
1,433.16
15,427
4,257.40
45,827
Total
The property has the benefit of 189 surface car parking spaces
providing a ratio of 1:242 sq ft.
It should be noted that for the purposes of future reviews, it is
assumed the premises have a Net Internal Area of 47,157 sq ft
(4,381 sq m).
© Crown Copyright 2010. All rights reserved. Not to scale.
Lambert Smith Hampton Investment
Prospect House, Hamilton International Park
Rental Comparisons
Comparable lettings and rent reviews at nearby Strathclyde Business
Park (SBP.), East Kilbride and Hamilton International (HI) point to
strong reversionary potential for the subject premises at the next
rent review. Comparisons include:
Property
Term
Date
Sq Ft
Fintry House, HI
New lease
11/09
40,000
Rent (psf)
£17.00
Fenick House, HI
New lease
04/08
23,874
£17.00
GSO East Kilbride
New lease
01/08
3,778
£17.00
GSO East Kilbride
New lease
10/07
36,000
£15.00
Hamilton House, HI
New Lease
06/07
6,162
£15.50
Dalzell House, SBP
New Lease
10/06
4,788
£17.75
Hamilton Business Park
New lease
06/07
6,181
£15.45
Tenant Covenants
AWG Group Limited, previously known as Anglian Water Plc, is
regarded as a very low risk company with a Delphi score of 100 out
of 100 and a credit limit of £9,900,000. Their accounts at 21 March
2008 indicated a pre-tax profit of £123,100,000 and a net worth of
£994,900,000.
Tenure
Our client is offering for sale a long leasehold interest of 175 years
from the date of entry with rent at £1.00 pa if asked.
Tenancy
The property is let to Anglian Water Plc (now AWG Group) and
HF Developments Ltd on a joint and several basis meaning each
tenant is liable for all the obligations incumbent on the tenants
under the leases.
The property is held under 3 separate leases (floor by floor), which
are drawn on Full Repairing and Insuring terms and subject to
5 yearly upward only rent reviews. The next rent review is in
December 2012.
The current rent is £636,619.50 pa. This analyses to only £13.50 psf,
which having regard to the quality of the accommodation, offers
good potential for future rental growth.
The property is occupied by HF (Managed Offices) Limited. This is an
established serviced office provider in the Lanarkshire area with
Business Centres in Strathclyde Business Park and Hamilton
International.
HF Developments is also regarded as a low risk company with a
Delphi score of 87 out of 100 and a credit limit of £530,000.
VAT
The property has been elected for VAT.
Capital Allowances
No capital allowances are available.
Proposal
We are instructed to seek offers in excess of £7,000,000 (seven
million pounds) for a long leasehold interest. A purchase at this
figure would reflect a net initial yield of 8.5% assuming purchasing
costs of 5.75%.
Viewing and Further Information
Further information and arrangements to view the property can be
obtained from the sole agent:
Lambert Smith Hampton
227 West George Street, Glasgow G2 2ND
Bill Binnie
Tel:
0131 226 0330
Email: [email protected]
David Smith
Tel:
0141 226 6770
Email: [email protected]
Subject to Contract and Exclusive of VAT
© Lambert Smith Hampton February 2010
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.
www.lsh.co.uk