INTERTEK HOUSE - A MODERN HIGH SPECIFICATION WAREHOUSE / INDUSTRIAL INVESTMENT OPPORTUNITY - Bray Fox Smith
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INTERTEK HOUSE
CLEEVE ROAD, LEATHERHEAD, KT22 7SA
A MODERN HIGH SPECIFICATION WAREHOUSE / INDUSTRIAL INVESTMENT OPPORTUNITY
2 INVESTMENT SUMMARY
• A modern high specification warehouse / industrial unit with
ancillary space totalling 17,407 sq ft.
• Site area of approximately 0.54 acres, reflecting a site cover of 49%.
• Excellent motorway connections, just 1.5 miles from J9 of the M25.
• Prominently located on The Axis Centre Business Park within ¾ of
a mile of Leatherhead town centre and ½ a mile of Leatherhead
train station.
• Let to Intertek Testing & Certification Ltd, subsidiary of a FTSE
100 listed company.
• The tenant has comprehensively refurbished the building internally
and externally.
• The unit is currently used as a specialist testing facility but can be
utilised as production or last mile logistics use.
• Let for a term of 10 years from 3rd April 2017.
• Passing rent of £240,000 per annum, equating to £13.79 per sq ft
overall.
• Fixed uplift in 2022 to the higher of 2.00% per annum compound
or OMV.
• Car parking for 32 cars, 13 spaces next to the building and 19
allocated on the estate.
• Freehold.
• Offers are sought in excess of £3,750,000 (Three Million, Seven
Hundred and Fifty Thousand Pounds) subject to contract and
exclusive of VAT.
• A purchase at this level reflects an attractive net initial yield of
6.00%, assuming purchaser’s costs of 6.54%, and a low capital
value of £215 per sq ft.
Subject to Contract.
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
3 LOCATION
HIGH WYCOMBE
M1
Leatherhead is an affluent Surrey town located adjacent to the M25 OXSH
OTT
ROAD
4
M40 1
Motorway, 18 miles south west of Central London, 11 miles north east of ASHTEAD
16 1 A406
OXSHOTT RD
JUNCTION 9
Guildford and 10 miles west of Reigate. M25
AD
UXBRIDGE A40
RO
A243
MAIDENHEAD M25
N
AW
Located on the south side of the M25 motorway the town benefits A4
KL
LONDON
OA
7 M4 15
from excellent transport communications with Junction 9 of the M25 8/9 1
motorway just 1.5 miles to the north east. The M25 motorway provides WINDSOR HEATHROW A205
A329 (M) A30
fast access to the M3 motorway to the west (14 miles), the M23
RA
INTERTEK HOUSE 13 A316
A 24
NDAL
12
READING 10 1
STAINES
motorway to the east (12.5 miles) and the wider motorway network.
3
A329
S L
AD 11 12
Access to central London is also direct via the A24 (23 miles).
ROAD
RO A4 BRACKNELL A23
VE WEYBRIDGE
EE JUNCTION 9
CL A24
By rail, Leatherhead railway station provides regular direct services to BY-PASS RD
4
3 A3
A2
AD
both London Waterloo and London Victoria, both within 45 minutes. The
Y A217
BY
WA RO
RO
AD
-P
S
LL AD 10 M25
AS
E 4 9
N
RH
station is within walking distance to the subject property (800m) and A30
A
SR
STO
E
ND
LEATHERHEAD TH 9
EA
RA
D
A2 L 4a A322
KING
45
further provides services to Guildford and Gatwick Airport, with journey BASINGSTOKE
M3 LEATHERHEAD 8
7
times of approximately 30 minutes and 40 minutes respectively. RO
AD
6
5
A246
REDHILL
L
BULL HIL
BY
M
-
GUILDFORD
PA
The town is also excellently located for international travel, with the M23
SO
SS
EP
two leading UK airports both within 25 miles. London Gatwick Airport
S TATION RD A24
RO AD
A3 9
is situated approximately 17.5 miles to the south east of the town while A31
A2
GATWICK
4
London Heathrow Airport is located 24.5 miles to the north west.
JUNCTION 9
SITUATION
M25 Intertek House is prominently situated on the Axis Centre. The
EET
A2
46 park provides a mixture of office, laboratory and light industrial
STR
NG
A243 accommodation set in an attractive landscaped environment.
46 YOU
A2 Tenants on the park include Cobham, Smithers Pira and RIBA. The
scheme is accessed from Cleeve Road, which links to Randalls Road
JUNCTION 9 (A245) providing direct access to Leatherhead town centre, train
KIN
GS
TO
N RO
AD
station and J9 of the M25 motorway.
Adjoining the Axis Centre to the west is Leatherhead Office Park,
CGI LOGICA the town’s premier office location. The park comprises several high-
AD
UNILEVER EE
VE
RO
quality headquarters buildings set in a landscaped environment. The
KBR CL
COBHAM
parks occupiers including CGI Logica, KBR and Unilever who occupy
KBR a 175,000 sq ft premises as their UK headquarters.
INTERTEK HOUSE Axis Centre is just 1 mile north west of Leatherhead town centre
LEATHERHEAD
BUSINESS PARK AXIS CENTRE which boasts a wealth of leisure and retail amenities including The
SMITHERS PIRA Swan Shopping Centre, home to many national multiple retailers.
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
4 DESCRIPTION
REFURBISHMENT WORKS
Intertek House comprises a modern warehouse unit developed
in 2005. The Tenant has recently completed a comprehensive internal and
external refurbishment of the building, to include:
The property benefits from the following specification:
• External redecoration and roof works
• Portal frame construction
• Internal redecoration
• 6.6m eaves • New reception area & additional process rooms constructed
• 3 x roller shutter doors • Refurbished lift
The space is currently fitted out with part full height • New a/c system to the office accommodation
warehouse and part office/laboratory accommodation at • New ceilings and LED lights in the office accommodation
ground and first floor levels. • New first floor toilet block
• Refurbished toilets and shower at ground floor level
To the rear of the site is an additional single storey portal • New fire alarm
framed unit.
• New intruder alarm
The property benefits from the right to park 32 vehicles. 13 • Refurbished heating system
spaces are located within the demise with the remaining 19 • New ventilation system
spaces allocated within the wider estate. • New carpeting throughout
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
5 ACCOMMODATION
Floor sq ft sq m
TENURE
Freehold.
Ground Floor 10,224 949.84
First Floor Offices 5,838 542.36
TENANCY
The property is let for a term of 10 years to Intertek Testing & Certification Ltd from 3rd
Intertek House Total 16,062 1,492 April 2017, expiring 2nd April 2027. The passing rent is £240,000 per annum, equating to
£13.79 per sq ft overall.
Ancillary 1,345 125
The lease is to be reviewed on 3rd April 2022 to the higher of the open market rental
Site Total 17,407 1,617 value or 2.00% pa annum compounded. The minimum uplift is therefore to £264,980 per
annum.
There is a tenant only break option on 03/04/2022 subject to 6 months’ written notice.
SITE The tenant will benefit from an additional 3 months’ rent free if the break is not exercised.
The estate comprises a site extending to 0.54 acres, reflecting a site The lease benefits from the security of tenure provisions of the Landlord & Tenant Act
coverage of 49%. 1954 Part II.
Not to scale. For identification purposes only.
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
6 COVENANT INFORMATION
Intertek Testing & Certification
Company Number 03272281
Intertek Testing & Certification Ltd is part of Intertek Group Plc. Intertek is a multinational
inspection, product testing and certification company headquartered in London, United Kingdom.
Intertek Group Plc reported a turnover of £2.576bn for the year ending December 2016, is listed on
the London Stock Exchange and is a constituent of the FTSE 100 index.
The organisation has more than 42,000 employees across 100 countries, in over 1,000 locations.
Centred around its testing services carried out in laboratories, the group provides quality and
safety assurance to industries such as construction, healthcare, food and transportation on
products including batteries, accessories, apparel and chemicals.
Further information can be found at www.intertek.com
Fiscal Fiscal Fiscal
Non consolidated Non consolidated Non consolidated
GBP (000’s) GBP (000’s) GBP (000’s)
31 Dec 2016 31 Dec 2015 31 Dec 2014
Sales Turnover 11,653 12,580 14,526
Profit / (Loss) Before Taxes (997) 387 (1,034)
Tangible Net Worth (3,554) (1,457) (1,402)
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
7 OCCUPATIONAL MARKET
Throughout the UK prime headline rents have risen regardless of unit size over the past 5 years. Limited supply in the majority of markets has driven rental growth and this is likely to
continue over the short and medium term.
Leatherhead take up totalled 29,609 sq ft in 2017, constricted by the acute lack of supply, with demand remaining robust. The most recent lettings took place at Leatherhead Trade Park,
with Unit 4 and Unit 6 letting to Screwfix and Saracen Datastore. These units underwent a refurbishment to a good specification prior to occupation and the lettings provide evidence of
a rental uplift at the estate.
Current supply stands at just 23,000 sq ft across three units.
Comparable Occupational Transactions
Date Town Address Size (sq ft) Term Tenant Rent (psf)
Oct 17 Leatherhead Unit 4, Leatherhead Trade Park, Station Road 6,363 10 yr lease. Break in yr 5. Screwfix £12.75
Aug 17 Leatherhead Unit 6, Leatherhead Trade Park, Station Road 4,384 15 yr lease. Break in yr 10. Saracen Datastore £12.77
May 17 Leatherhead Unit 3, Mole Business Park 2,800 10 yr lease. Break in yr 5. Kew Electrical £15.00
Apr 17 Leatherhead Axis Centre, Cleeve Road 16,062 10 yr lease. Break in yr 5. Intertek £13.79
Jun 16 Leatherhead Unit A, Randalls Way 13,498 15 yr lease. Break in yr 5. Howdens £11.30
Current availability
Address Size (sq.ft) Quoting rent (£ psf) Comments
Unit 1 – 5 Rydon Business Centre 7,500 £12.75
Unit 3 Leatherhead Trade Park 3,800 £12.75 Tenant recently vacated. Anticipated that rent will increase if refurbished.
Unit 5-8 Mole Business Park 11,750 £12.00 Currently being marketed as an assignment of current tenant’s lease for 3 years. Anticipated
that new lease direct from landlord could be achieved at £13.50psf.
INTERTEK HOUSE, CLEEVE ROAD, LEATHERHEAD, KT22 7SA
INTERTEK HOUSE
CLEEVE ROAD, LEATHERHEAD, KT22 7SA
VAT For further information please contact:
The property is elected for VAT which will be payable upon the purchase price. James Archibald
020 3362 4357
jamesarchibald@brayfoxsmith.com
ESTATE CHARGE
Rob Bray
Further details available upon request. 020 7629 5574
robbray@brayfoxsmith.com
Tom Jansons
EPC 020 3362 4358
Intertek House has an EPC rating of B. A copy of the EPC is available upon request. tomjansons@brayfoxsmith.com
PRICE
Offers are sought in excess of £3,750,000 (Three Million, Seven Hundred and
Fifty Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive net initial yield of 6.00%,
assuming purchaser’s costs of 6.54%, and a low capital value of £215 per sq ft.
Subject to Contract.
Misrepresentation Act. These brief particulars have been prepared as agent for our client and are intended as a convenient
guide to supplement an inspection or survey. Their accuracy is not guaranteed. They contain statements of opinion and
in some instances we have relied on information provided by others, you should verify the particulars on your visit to the
property and the particulars do not obviate the need for a full survey and all the appropriate enquiries. Accordingly, there
shall be no liability as a result of any error or omission in the particulars or any other information given.
Compiled April 2018.
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