4 Wyncolls Road, Severalls Business Park

£5,000,000.00 / For Sale
Address: 4, Wyncolls Road, Severalls Business Park, Colchester, Essex, CO4 9HU

Property Description

***INVESTMENT OPPORTUNITY***
INCOME: £375,000 pa increasing to £420,000 pa
*** Plus additional Solar Energy Income
*** Site area: 2.9 Acres
***Rare opportunity to acquire a freehold office and warehouse investment situated on the prime Colchester Business Park let to THINK BDW LTD for 15 years from 1st October 2019.

LOCATION
Colchester Business Park/Severalls Industrial Estate is an established 195-acre business park and is one of East Anglia’s Premier Business Parks and leading economic centre for North Essex, strategically located directly adjacent to the A12/A120 interchange providing excellent road links to the national motorway network to Ipswich, London and the Haven Ports. Severalls Business Park is the towns premier office and industrial location containing a wide range of international, national and regional companies including Betts UK, Anglian Crown Catering, Care UK, Dovercourt Ford, RBS/Natwest, Provide, Elmco Water Technologies, Hermes Abrasives, DAB Pumps, UK Power Networks, Scrutton Bland.

Colchester is the largest town in Essex situated in the north of the County located along the A12 having a residential population of approximately 200,000 and an estimated catchment population in the order of 300,000. The catchment area extends over a densely populated rural area being bounded by Ipswich approximately 18 miles to the north east, Braintree 16.5 miles and Chelmsford 24 miles to the west and south east respectively. In addition, Colchester is home to the ever expanding and evolving University of Essex with over 13,000 students.

SITE
The site is roughly rectangular in shape with a gentle fall from the busy Wyncolls Road. We estimate the total site area is approximately 2.9 acres (1.184 Hectares) providing a low site coverage of 32%.

DESCRIPTION
The property comprises a standalone hybrid office and warehouse building constructed of a steel portal frame with profile insulated metal sheet cladding to walls and roof extending to a total GIA of 40,849 sq ft (3794.9m2) with secure yard and staff/customer parking.

The offices have been completed to a high specification benefitting from suspended ceilings, LED lighting, air-conditioning, glazed partitioning, perimeter trunking, intercom access, male, female and disabled WC facilities. Access to the offices is via a full height glazed atrium fronting onto Wyncolls Road.

INVESTMENT SUMMARY

Standalone HybridOffice and Warehouse• Building totalling a GIA40,849 sq ft (3,794.93m2)

Strategically located on Colchester’s Prime Business Park

0.5 miles from Junction 28North Interchange onto the A12 and Junction 29 Ardleigh Crown Interchange onto the A12 and A120

Freehold Investment

Fully Let in its entirety to a strong Covenant, THINK BDW LIMITED

Term of 15 years, lease expiring 1st October 2034

Current rent passing of £375,000 per annum, increasing to £395,000 per annum from 1/04/2024 and £420,000 per annum from 1/04/2029

Site area of 2.9 acres (1.184 Hectares)• providing a low site coverage of 32%

Guide Price £5,000,000 (five million pounds) subject to contract and exclusive of VAT

A purchase at this level reflects an attractive Net Initial Yield of 7.05%, increasing to 7.43% from 1st April 2024 and 7.9% from 1st April 2029 after allowing for purchaser’s costs of 6.3%

Capital Value rate of £122 p.s.f.

Additional Solar Energy income averaging over the previous 3 years approximately £29,700 per annum


The main warehouse is located to the rear and benefits from roller shutter access and an eaves height of approximately 7.5m rising to an apex height of approximately 8.75m. there is a mezzanine floor of steel frame construction measuring approximately 30.5m x 15.7m providing additional storage.

The property fronts onto the busy Wyncolls Road and is accessed via a secure gate.

Specification The property benefits from a high specification to include: Steel portal frame construction with profile metal sheeting to roof and composite walling.

A minimum eaves height of 7.5 metres to the warehouse.

Tenure: Freehold Land Registry Title Number EX1988359

The office specification includes powder coated aluminium double glazing, carpeting throughout, recessed category 5 lighting, air-conditioning, suspended ceiling, raised flooring.

Concrete serviced yard and parking for over 70 cars.

ACCOMMODATION
The following approximate areas are expressed in accordance with RICS Code of Measuring Practice and described as follows:

Floor Area M² Sq ft
Ground Warehouse 1114.45 11,996.25
Mezzanine Warehouse 478.31 5,148.65
Ground Sign Production Workshop 888.62 9,565.38
Ground Offices/Reception 1114.45 11,996.25 First
Offices 199.1 2,143
Total 3794.93 40,849

TERMS
TENANCY
The property is let in its entirety on a full repairing and insuring lease to THINK BDW LIMITED (02167543) for a term of 15 years from 1st October 2019. The initial rent is £375,000 per annum increasing to £395,000 per annum from 1st April 2024 and £420,000 per annum from 1st April 2029. The tenant has the ability to share occupation with a member of the same group and has the ability to sub-let in part the 5 permitted parts of the building as referenced in the lease. The lease is a 15-year term with a tenants only option to break on the 10th anniversary of the term (1st October 2029). A copy of the lease is available upon request.

Covenant
Founded in 1987, THINK BDW LIMITED (02167543) is a full-service agency providing complete marketing, advertising and communications; from strategy to execution, all in house. THINK BDW are considered one of the UK’s leading property marketing agency but also cover all industries and sectors to include automotive, finance and leisure.

OTHER
Planning Permission
Additional Planning Permission (Unimplemented)Application Number 180611 was APPROVED 22/1/2019 for the construction of a detached self contained three-storey office building extending to a NIA of circa 520m2 (5,600 sq ft) with associated parking and landscaping.

EPC
The property has an EPC rating of C (70) A copy of the Energy Performance Certificate (EPC) and Recommendation Report is available upon request.

VAT
The property is elected for VAT. We would anticipate that the transaction will be treated as a Transfer Of Going Concern (TOGC)

Proposal
The guide price is £5,000,000 (Five Million Pounds) subject to contract and exclusive of VAT for the freehold interest in 4 Wyncolls Road (EX1988359). A purchase at this level reflects an attractive Net Initial Yield of 7.05% increasing to 7.43%from 1st April 2024 and 7.9%from 1st April 2029 assuming purchaser’s costs of 6.63%.

PLEASE NOTE: The above does not take into account the additional income received from the solar energy receipts which has provided an additional income averaging £29,700 per annum over the last 3 years.

VIEWING
Viewings Strictly by prior appointment through the sole agents:

Tom Noble
01206 563222 / 07899 898342
tnoble@nicholaspercival.co.uk
C4248

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