The property is located off Sir Thomas Longley Road on the main Medway City Estate, which is located on a peninsula section of land with the River Medway located east and west. Medway City Estate comprises a substantial industrial and commercial area proving approximately 2m sq ft of commercial accommodation. The Estate is served by the Medway Tunnel and the A228 road, which runs southwest to Strood and Junction 2 of the M2, the latter located approximately 5 kms to the southwest. The town centre of Rochester is located approximately 4 kms by road to the south.
Rochester, with a population of approximately 19,000, forms part of the Medway Towns conurbation, which has a total population of approximately 250,000. The conurbation is served by the M2, which connects with the A2 and runs west to the M25 (approximately 16kms to the west) and east to East Kent linking with the M20 to Folkestone (approximately 75 kms distant).
KEY FEATURES
- Fully let office investment for sale
- Established Medway commercial estate
- High yielding investment
- Now SOLD
Fully let office investment in established Medway city commercial estate.
PROPERTY DETAILS
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Fully Let Office
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12796 sq ft
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(1,188.79 m2)
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ACCOMMODATION
The net internal floor area of the building, calculated in accordance with the RICS Code of Measuring Practice, is as follows:
Ground Floor 6,408 sq ft (595.32 m )
First Floor 6,388 sq ft (593.46 m )
Total 12,796 sq ft (1,188.78 m )
Description:
Of concrete frame construction having brick faced elevations under pitched roof slopes. Windows are double-glazed and have aluminum powder coated frames.
Internally, the concrete floors are mostly carpet tiled, in part vinyl or ceramic tiled, and walls plastered, papered and/or painted, under suspended acoustic tiled ceilings incorporating integral lighting. Both floors, which incorporate floor boxes are largely open plan with some partitioned offices, meeting rooms and ancillary accommodation having been created with demountable partitioning. Space heating is provided by radiators supplied by independent gas fired boilers.
There are approximately 95 on-site car parking spaces.
TENANCIES
Ground Floor
Let to the Education Company Limited for a term of 8 years from 1st November 2006 on an effective Full Repairing and Insuring basis by way of a Service Charge collection.
The current rent is £57,638 per annum exclusive (approx £9/sq ft) subject to upward only rent review every three years. Next rent review due 1st November 2012.
First Floor
Let to West Kent NHS & Social Care Trust for a term of 10 years from 1st December 2003.
The current rent is £57,750 per annum exclusive (approx £9/sq ft) subject to upward only rent review every five years. Therefore no further rent review until the lease expiry 30th November 2013.
TOTAL CURRENT INCOME £115,388 per annum, exclusive.
Service Charge
Ground Floor leased to the Education Company Limited. The tenant is liable to pay an annual service charge of £27,000 toward the cost of the Landlord’s obligations to insure and maintain the building. Tenant responsible for all internal repairs.
First Floor leased to West Kent NHS and Social Care Trust. The tenant is liable to pay a service charge toward the cost of the Landlord’s obligations to insure and maintain the building. Tenant responsible for all internal repairs.
COVENANT
West Kent NHS & Social Care Trust
Part of the Kent and Medway NHS and Social Care Partnership Trust, having formed in April 2006 following the merger with East Kent NHS and Social Care Partnership Trust.
The Trust provides mental health, learning disability, substance misuse and other specialist services for 1.6 million people across Kent and Medway. The trust income is £177m with around 3,800 staff (plus 280 seconded staff) providing a range of mental health and other services from over 400 separate buildings across 260 sites.
The Education Company Limited
Established in 1987 and specializing in direct marketing to the education sector and developing an improving link between business and the education sector itself. We have been advised the current turnover is approaching £6m and the company directly employs approximately 80 staff.
Previously also traded as Education Direct and their website can be viewed at www.education.co.uk
PROPOSAL
Guide price £900,000 (nine hundred thousand pounds). A purchase at this level would reflect a Net Initial Yield (NIY) of 12.12% and a Gross Yield of 12.82% - assuming standard purchaser costs at 5.75% .
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Fully Let Office
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For Sale: £900,000
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Lease
Long leasehold interest from 28th February 2001 for a term of 999 years, subject to the existing tenancies.
VAT
We are advised that the building has not been elected for VAT and therefore will NOT be applicable to the sale.
Legal Fees
Each party to be responsible for their own legal costs.
Viewing Arrangements
Strictly via prior appointment through Agents Graves Jenkins