On behalf of the joint LPA Receivers Tony How FRICS and Kevin Usher BSc FRICS
Freehold Government Let Office Investment with future development and/or conversion potential (STPP)
The property is situated on the north eastern side of London Road opposite Tunbridge Wells Common. Merevale House is located on the edge of Tunbridge Wells Town Centre and forms parts of a commercial area close to a Morrisons supermarket and multi storey car park.
Tunbridge Wells is an affluent spa town located approximately 40 miles to the south east of central London, the A26 runs through the town and the M25 is approximately 12 miles to the north.
Tunbridge Wells Station is nearby offering access to Charing Cross and Cannon Street Stations in a journey time of approximately 55 minutes. Gatwick Airport is approximately 20 miles to the west.
This building was constructed in the 1970’s and provides office accommodation on 1st to 4th floors with ground floor and basement car parking. It compromises a total of 1,660 sq m (17,871 sq ft) with car parking spaces. In addition, there are 16 separate car parking spaces which have been let on short term Licences. The building is of frame construction with brick elevations and of mansard roof. There is a lift serving all floors.
The office specification includes perimeter trunking, suspended ceilings with recessed lights and heating. The tenants have carried out works to convert some of the office space into Court Rooms and ancillary offices.
- Tunbridge Wells is an affluent spa town located 40 miles to the south east of central London.
- Merevale House is situated in a prominent location close to the Rail Station and Town Centre and comes within the “Vale Avenue Area of Change”.
- The offices are let to the Secretary of State for Communities and Local Government on a 5 year FRI lease from 29th September 2012 at a rental of £140,000 pa exclusive.There is a tenant’s break in September 2015.The rental value devalues to a low base of £7.83 psf.
- The property comprises approximately 1,660 sq m (17,871 sq ft) of office accommodation, of which a large part is used as Court Rooms for Tunbridge Wells County Court.The property has potential to convert into 30 self contained flats subject to all necessary consents.
- The property is freehold.
- There is potential for alternative uses in the future subject to obtaining planning consents especially given its location within the Vale Avenue Area of Change.
- There is some additional income from some car parking spaces let on short term licences which produces a further £9,600 pa.
- Offers are sought in excess of £2,000,000 for the freehold interest, which at this level reflects a net initial yield of 7% allowing for purchasers costs of 5.75%.
- There is potentially a substantial vacant possession reversionary value either in 2015 or 2017.
Merevale House has been identified in the Tunbridge Wells Borough Council Site Allocations Development Plan Document draft under policy AL/RTW3. The policy indentifies Merevale House as being within the Vale Avenue Area of Change. Within this area, a comprehensive scheme for redevelopment and refurbishment of sites, buildings and spaces will be prepared and proposals will be expected to deliver Employment use, Retail use, Parking, Hotel and Conference Facilities and Residential use. This has been received back from consultation and comments are currently being assessed to see what changes are required before the next stage of the Development Plan Document is produced.
CAR PARKING LICENCES SCHEDULE
There are 6 Licences relating to 16 car parking spaces.
The net internal floor areas are as follows:
First Foor - 4,510 sq ft
Second Floor - 4,385 sq ft
Third Floor - 4,484 sq ft
Fourth Floor - 4,492 sq ft
Total - 17,871 sq ft
We understand that the Rateable Value is £279,500 with rates payable for 2014/2015 being £134,719 although we would ask you to check this with the local authority.
Unconditional offers are sought for the freehold investment in excess of £2 million which at this level represents a net initial yield of 7% after costs of 5.75%.
The office building is elected for VAT.