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500 Capability Green 77,723 sq ft 100% Let Office Property Luton LU1 3LU £29,095,000 (£374.34/sq ft) 7.50% Net Initial Yield
INVESTMENT HIGHLIGHTS
- A leading business park on the M1 corridor and home to major occupiers such as Astra Zeneca, Ernst & Young, Leonardo and Regus.
- Direct access to J10a of the M1 Motorway provides excellent regional connectivity.
- The building provides immediate access to London Luton Airport, just 1.5 miles away.
EXECUTIVE SUMMARY
An opportunity to acquire a prime office investment pre-let to an occupier who boasts group revenue in excess of €20bn.
The building is scheduled to undergo a substantial refurbishment to provide a Grade A office fully repositioned for the future. The building extends over ground and two upper floors with a full height central atrium entrance.
Originally built in 1989, the building commands a strong position on the park, close to the amenity offering, and boasts 416 car parking spaces reflecting a superb ratio of 1:191 sq. ft.
TUI Travel Limited have signed an agreement for lease to commence once the refurbishment has completed. This FR&I lease is for a term of 15 years with a fixed rental uplift at the end of year 5 (equivalent to 2% pa compounded growth) and an Open Market Rent Review after year 10. This agreement was based upon the IPMS-3 floor areas with 50% of the reception area rentalised.
Offers sought in the region of £29,095,000, subject to contract and exclusive of VAT on either:
1. a forward commitment to purchase the investment upon practical completion of the refurbishment works.
2. a full forward funding basis.
A purchase at this level reflects a net initial yield of 7.50% increasing to 8.41% by way of a fixed rental uplift in 5 years’ time.
Yields are quoted net of purchaser’s costs at 6.8% although we envisage savings can be achieved via an appropriate funding structure.
The building is scheduled to undergo a substantial refurbishment to provide a Grade A office fully repositioned for the future. The building extends over ground and two upper floors with a full height central atrium entrance.
Originally built in 1989, the building commands a strong position on the park, close to the amenity offering, and boasts 416 car parking spaces reflecting a superb ratio of 1:191 sq. ft.
TUI Travel Limited have signed an agreement for lease to commence once the refurbishment has completed. This FR&I lease is for a term of 15 years with a fixed rental uplift at the end of year 5 (equivalent to 2% pa compounded growth) and an Open Market Rent Review after year 10. This agreement was based upon the IPMS-3 floor areas with 50% of the reception area rentalised.
Offers sought in the region of £29,095,000, subject to contract and exclusive of VAT on either:
1. a forward commitment to purchase the investment upon practical completion of the refurbishment works.
2. a full forward funding basis.
A purchase at this level reflects a net initial yield of 7.50% increasing to 8.41% by way of a fixed rental uplift in 5 years’ time.
Yields are quoted net of purchaser’s costs at 6.8% although we envisage savings can be achieved via an appropriate funding structure.
PROPERTY FACTS Sale Pending
Sale Type
Investment
Property Type
Office
Tenure
Freehold
Property Size
77,723 sq ft
Costar Property Class
B
Year Built/Renovated
1989/2024
Price
£29,095,000
Price per sq ft
£374.34
Yield
7.50%
NOI
£2,182,125
Occupancy Rate
100%
Tenancy
Multiple
Number of Floors
3
Typical Floor Size
26,082 sq ft
Plot ratio
2.37
Total Plot Size
0.75 ac
Parking
378 Spaces (4.83 Spaces per 1,000 sq ft Leased)
AMENITIES
- 24 Hour Access
- Food Service
- Security System
- Signage
- Kitchen
- Reception
- Storage Space
- Central Heating
- Demised WC facilities
- Lift Access
- Natural Light
- Open-Plan
- Partitioned Offices
- Secure Storage
- Shower Facilities
- Wi-Fi
- Air Conditioning
- Smoke Detector
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CONTACTS
-
Bruce Poizer -
Ben Watson
-
Efan Morris
-
Andy Dickens -
George Poole
-
Cushman & Wakefield
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500 Capability Green
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