Description
Chelmsford is an important commercial centre in the South East, benefitting from its strategic location offering strong road and rail links to Central London and the wider eastern region.

The local area is set to benefit in the longer term with a new railway station to the north of Chelmsford as well as significant inward residential and commercial development.

The subject property is located in a prominent commercial location to the north of Chelmsford city centre, with frontage to Springfield Lyons Way and direct access to Colchester Road.

12,580 ft² (1,168.9 m²) of high quality office accommodation constructed in 2008 and arranged over ground and two upper floors.

50 car parking spaces, reflecting an excellent parking ratio of 1:250 ft².

Let in its entirety to B D W Trading Ltd who have a Dun & Bradstreet rating of 5A1 (report available upon request)

The tenant has not exercised their 2023 break option providing a WAULT of 5 years to expiry.

Fixed rental uplift Jan 24. to no less than £230,000 per annum, equating to £18.30 per ft².

Freehold - Offers are sought in excess of £3,500,000 (Three Million Five Hundred Pounds), subject to contract and exclusive of VAT.

Situation
The property is situated on a prominent out of town site neighbouring Hedgerows Business Park, one of Chelmsford’s most well recognised business park developments.

Situated approximately 2.5 miles North East of the city centre, the property benefits from excellent prominence to the A130 Colchester Road, a short distance from its intersection with Junction 19 of the A12 and the A138.

The property is located on Springfield Lyons Way accessed via a roundabout off Colchester Road which provides the main passage to neighbouring Hedgerows Business Park. Occupiers of note on the Park and in the vicinity include the National Health Service, The Secretary of State, Essex Chronicle, NFU and Anderson Group.

In the short term the micro location will benefit from the addition of a new railway station, Beaulieu railway station which will be situated between Chelmsford and Hatfield Peverel to the north of Chelmsford city centre. The station will support the established and expanding Beaulieu Park development which will eventually comprise 4,000 new homes and potentially up to 400,000 ft² of employment accommodation.

Description
The property is a purpose built self-contained office building developed in the early 2000’s, being arranged over ground and first floor. The property totals 12,580 ft² (1,168.9 m²) comprising mainly of high quality office accommodation with 50+ car parking spaces, reflecting an excellent parking ratio of 1:250 ft².

The tenant has been in occupation for several years and occupies the building as their reginal HQ.

We understand the property benefits from a good specification throughout, including:

• Heating and comfort cooling by VRF system
• Raised flooring.
• Suspended ceilings
• Passenger lift
• Male & Female WCs on each floor

Tenure
The property is held Freehold.

Tenancy
The property is let in its entirety to B D W Trading Ltd on a lease expiring on 31st December 2028, reflecting an unexpired lease term of 5 years. The tenant did not activate their 2023 break option.

The current passing rent stands at £211,803 per annum and is subject to a fixed uplift as of 1/1/24 to no less than £230,000 per annum equating to £18.30 per ft² overall.

Covenant Strength
We have obtained company accounts information and are aware that as of 30th June 2022 the following information is recorded: -

Note as: £000
Sales Turnover: £5,126,982
Profit/Loss (before tax): £642,456
Net Current Assets: £3,970,404

Chelmsford Occupational Market
Chelmsford is a successful regional office market with a total estimated office stock of c.3.1 million ft². The office market like many others in the south east has lost a significant proportion of its secondary and tertiary stock for conversion to residential, facilitated by Permitted Development Rights (PDR). The loss of secondary and tertiary stock to residential combined with the lack of development pipeline has seen total availability fall to just 304,000 ft² in the town, 9.8% of total office stock.

The fall in availability links to the rise in take-up in the City Centre with an annual average take-up of 75,000 ft² per year. Prime rents in the City currently stand at £28.00 per ft²,However, the top quoting rent has now reached £30.00 ft². The local letting agents expect to be able drive the rental tone of the City forward and achieve a new headline rent for Chelmsford within the next 12 months.

EPC
An EPC Assessment is awaited.

VAT
The property is elected for VAT. It is anticipated that the sale will/can be treated as a Transfer of a Going Concern (TOGC).

Proposal
Offers are sought in excess of £3,000,000 (Three Million Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a capital value of £238 per ft².

We believe the fixed rental increase to be low and would expect the revised rental to be in excess of £20 psf

Legal
Each party to bear their own legal costs incurred in the transaction.

Anti Money Laundering
In accordance with the latest Anti Money Laundering Legislation, the purchaser will be required to provide proof
of identity and address to the selling agents prior to solicitors being instructed.