Vicon House is a multi-let warehouse, showroom and office investment set in a major retail and commercial cluster and located directly opposite a busy ASDA Superstore and adjacent to new retail warehousing (B&M Homestore & The Range) 2 miles to the west of the Bury St Edmunds town centre.
The two storey structure combines with three self contained buildings, providing a total floor area of approximately 4,601.09 sq m (49,527 sq ft) and 151 car spaces.
The freehold investment is available subject to the existing tenancies.
( Agency Pilot Software Ref: 1217 )
Location
Bury St Edmunds is located in the heart of the Eastern Region and forms one of the main commercial centres in the strategically important A14 corridor. It is situated 61 miles north of London, 32 miles east of Cambridge and 42 miles south west of Norwich. The town enjoys strong road communications lying on the A14, providing dual carriageway access via Cambridge to the Midlands and via Ipswich to the port of Felixstowe. The historic market town is a sub-regional employment and service centre with 400,000 people living within a 20 mile radius.
It is particularly well located for occupiers who want to be centrally placed in the region with excellent access to the East Coast Ports, the M1 and M11, Ipswich, Norwich and Cambridge, where there is a limited supply of similar industrial premises. Bury St Edmunds railway station, part of the Greater Anglia Network provides frequent services to Cambridge in a journey time of 42 minutes. Cambridge in turn provides a direct rail service into London’s Kings Cross with a fastest journey time of 48 minutes The town is 30 miles from Stansted Airport, the third busiest airport in the UK, serving around 19 million passengers and handling a cargo tonnage over 200,000 metric tonnes last year.
Bury St Edmunds has a district population of 91,000 with a residential population of 500,663 with a low unemployment rate of 3% against the UK average of 4.4%. There is a high proportion of ‘Executive Wealth’ Countryside Communities’, ‘Successful Suburbs’ and crucially, ‘Comfortable Seniors’ and ‘Mature Money’. Retailing is centred around the Arc Shopping Centre, which opened in 2009, with 37 shops and restaurants and 850 car spaces alongside the historic town centre retail pitch and market square.
Accommodation
A two storey structure together with three self contained buildings, providing a total floor area of 4,601.09 sq m (49,527 sq ft) and 154 car spaces, part of which are covered in an undercroft Site of 0.811 hectares (2.0 acres)
The property comprises a site area of 0.811 hectares (2.0 acres) which is mainly covered with tarmac and provides extensive car parking. The site has three access points off Western Way
Terms
Tenure The property is held freehold as shown edged red on the site plan
Service Charge The service charge for units 2 to 5 for the year ending 31st October 2018 was £29,455 (£0.66 per sq ft) and the budget to 31.10.2019 is £36,576.88 (£0.81 per sq ft). Unit 1 is charged at £175 per annum and Unit 6 is £300 per annum and there is no charge for Unit 7. Further information is available upon request.
Tenant Covenants Eastern Retailing Ltd (Unit 1) - The trading name for the business is World of Beds (www.worldofbeds.co.uk). It is an independent bed retailing company established in Norfolk in 1985. In 2005 they acquired "Eastern Beds" which is situated in the centre of the city of Norwich, opposite John Lewis, where it has been trading for over 40 years as a bed shop. In 2010 the company acquired Grant Street Beds of Norwich - another long-established company who had been retailing beds for 30 years.
EPC Ratings The property has the following EPC ratings: Unit 1 - C69 Unit 5 - D89 Unit 2 - D95 Unit 6 - E115 Unit 3 - E117 Unit 7 - E105 Unit 4 - D86
VAT We understand that the property is elected for VAT. It is assumed this transaction will be structured as a transfer of a going concern.
Proposal Our client is seeking offers in excess of £3,330.000 for its freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 8.00% based on standard purchaser’s costs of 6.48%. This reflects a low capital value rate of £67.23 per sq ft.
Specification
- Multi let warehouse, showroom and office investment set in a major retail and commercial cluster and located directly opposite a busy ASDA Superstore and adjacent to new retail warehousing (B&M Homestore, The Range) 2 miles to the west of the Bury St Edmunds town centre
- Proposed new £100m - £125m development at Western Way for new state of the art leisure facilities, health, education and commercial uses on one site
- A two storey structure together with three self contained buildings, providing a total floor area of 4,601.09 sq m (49,527 sq ft) and 154 car spaces, part of which are covered in an undercroft
- Site of 0.811 hectares (2.0 acres)
- Range of uses including warehouse, showroom, offices, storage and workshop
- Attractive car parking ratio of 1:322 sq ft
- Let to 6 tenants providing a total income of £283,825 per annum (£5.73 per sq ft overall)
- Most leases off rebased rents agreed in 2017 and 2018 - one is subject to minimum RPI uplifts
- AWULT of 7.09 years
- Medium term potential to redevelop for higher value uses subject to obtaining statutory consents
- Offers sought in excess of £3,330,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting an attractive net initial yield of 8.00% assuming standard purchaser’s costs of 6.48%. This reflects a low capital value rate of £67.23 per sq ft overall.