for sale income producing office investment farr...
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FOR SALE
INCOME PRODUCING OFFICE INVESTMENT
FARR HOUSE, RAILWAY STREET, CHELMSFORD, ESSEX CM1 1QS
Location The city of Chelmsford is the county town of Essex, being a strategic commercial and administrative centre, located 35 miles North-East of London.
The town is a popular location for regional offices. Major occupiers represented include M&G Insurance; Royal Sun Alliance; Amlin; Essex County Council; Visteon and BAE.
The A12 provides easy access to the M25 (J28) some 15 miles south-west of the town, as well as to East Anglia and East Coast Ports of Felixstowe, Lowestoft and Harwich. Stansted Airport and the M11 (J8) is approximately 30 minutes drive via the A130 / A120.
Farr House is prominently located in Railway Street being only some 50 yards from Chelmsford main line railway station (London Liverpool Street – 35 minutes).
Description Farr House comprises a self-contained modern four storey office building providing predominantly open plan accommodation across all floors. Access is via reception lobby from Railway Street, the upper floors are served by a passenger lift and stairs.
The offices are gas centrally heated throughout. Each floor has a suspended ceiling with recessed lighting. W/C’s are located at each floor.
There is a private car park to the rear of the building with 17 allocated parking spaces.
Investment Summary• Modern office building let to
Property and Commercial Limited, a wholly owned subsidiary of Arthur J. Gallagher
• Producing £180,000 per annum exclusive
• Four storey building totalling 10,808 sq ft
• City centre location, adjacent to mainline rail station
• Price: £3,100,000 exclusive
Energy Performance Certificate Energy Performance Certificate: B48Accommodation
The property totals approximately 10,808 sq ft (1,004 m2) measured upon an net internal basis
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Duke Street
Rainsford Road
Rainsford Road
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Townfield Street
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Victoria Road
Duke Street
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Market Road
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Duke Street
A1016
A1016
A1060
A1099
A1099
A1184
A12
A12
A12
A13
A12
A12
A127
A127
A130
A120
A120
A120
A130
A131
A131
A414 A414A414
M25
M25
M11
M11
J8
J7
J6
J27
J29
SouthendAirport
Bishop’sStortford
Braintree
Southend-on-Sea
BasildonRayleigh
Wickford
Billericay
MarksTey
Gosfield
Danbury
HatfieldPeveral
Brentwood
RomfordHornchurch
ChippingOngar
Witham
Epping
HatfieldHeath
Abridge
Sat Nav Ref: CM1 1QS
Tim Collins 01245 342042 07720 806194 [email protected]
Paul Cooper01268 290291 07813 973113 [email protected]
Kemsley LLP for themselves and for vendors or lessees of this property whose agents they are give notice that: (i) the particulars are produced in good faith, are set out as a general guide only and do not constitute any part of the contract (ii) no person in the employment of Kemsley LLP has any authority to make or give representation or warranty whatever in relation to this property. Kemsley LLP is a limited liability partnership registered in England with registered number OC326192. All references to ‘Kemsley’ or ‘the firm’ should read as referring to Kemsley LLP. Customer Protection Regulation: It is recommended that applicants seek independent professional advice in relation to the acquisition of this property. Further information is available from the Useful Links page on our website. October 2015.
Tenure details and current income Farr House is let to FMW International upon a 25-year full repairing and insuring lease from 24 June 1998, subject to 5-yearly rent reviews at a passing rent of £180,000 per annum exclusive.
The lease was assigned / transferred on 19 December 2012 from Farr Limited to Property and Commercial Limited, a wholly owned subsidiary of Farr Limited / Barbon, that company having been acquired by Arthur J. Gallagher in May 2013.
For the year ending 31 December 2014 Property and Commercial Limited had a turnover of £11,425,000 and a pre-tax profit of £3,192,000. Property and Commercial Limited is rated A: Very Low Risk by Creditsafe UK. Source Creditsafe UK.
The Third Floor is sub-let to e-DBA Limited; upon the basis of a 5 year sub-lease from 1 December 2011, excluded from the 1954 Landlord & Tenant Act, Part II, at a rental of £45,883 per annum exclusive.
ProposalA price of £3,100,000 exclusive is sought for the freehold interest subject to the existing tenancy. A purchase at this level would reflect a net initial yield of 5.48%, allowing 5.8% for purchasers costs.
VATWe are advised that the property has not been elected for VAT.
Further informationFor further information or to arrange an inspection please contact the sole agents, Kemsley LLP.
Chelmsford
High Street
Stansted Airport
Chelmsford Railway Station
Chelmsford Bus Station