Town Centre Office Investment with Future Development Potential
• Finance House is a town centre office building in the historic Oxfordshire town of Banbury.
• The property comprises a self contained office building of 21,852 sq ft (2,030.12 sq m) arranged over ground and three upper floors.
• The property is multi let to Lagan Homes Limited and Lloyds Bank Commercial Finance Ltd.
• The current passing rent is £153,920 pa which reflects a low average rent of £9.46 psf on the office accommodation.
• The tenancies produce a WAULT of 3.70 years to expiries.
• Based on an ERV of £11.50 psf , the building has a reversionary rent of £251,298 per annum.
• There are 127 car parking spaces providing an excellent car parking ratio of 1:172 sq ft.
• Banbury sits within the Oxford Cambridge Arc , a “globally significant” area of investment and epicentre of the life sciences sector.
• Strong future alternative use and development potential subject to planning.
• Site area of 1.04 acres reflecting a low site cover of just 22%.
• The property is held freehold.
Our client is seeking offers in excess of £2,100,000 (Two Million, One Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 6.90% and a reversionary yield of 9.79%. The sale price reflects a low capital value of £96 psf assuming purchaser’s costs of 6.30%.
Finance House comprises a self contained rectangular shaped office building of reinforced concrete construction under a flat roof. The property is set over ground and three upper floors offering easily divisible floor plates of approximately 5,463 sq ft. The property provides a total net internal area of 21,852 sq ft.
The property benefits from the following office specification:
• Remodelled reception
• New boilers
• Suspended ceilings
• Raised access flooring with carpet tiles
• Air conditioning
• EV charging points
• Rooftop solar panels
• New passenger lifts with access to all floors
• 127 car parking spaces 1 172 sq ft).
The building is multi let to Lagan Homes Ltd and Lloyds Bank Commercial Finance Ltd on three separate effective FR&I leases providing a WAULT of 3.70 years The total passing rent of £153,920 per annum equates to a very low average rent of £9.46 psf. The leases are subject to 5 yearly upward only rent reviews and there is one outstanding rent review for Lagan Homes Ltd on 1 st July 2024. Both Lagan Homes Ltd and Lloyds Bank Commercial Finance Ltd extensively fitted out their respective floors and the landlord recently undertook refurbishments to the vacant 3rd floor.
Banbury is an expanding commercial hub in the north of Oxfordshire. It is located 41 miles southeast of Birmingham , 23 miles north of Oxford and 71 miles northwest of Central London . It’s prominent location within the ‘growth corridor’ and proximity to these major UK cities make it an extremely desirable business location.
The town is a key location, particularly for the technology, motorsport and automotive engineering sectors given its close proximity to Silverstone, the home of F1. Banbury also sits in the heart of the Oxford Cambridge Arc. This is one of the fastest growing economies in England and has been described as a “globally significant” area of investment by the UK government. The Arc has attracted a number of world leading research and development centres and is becoming the epicentre of the life sciences sector which has contributed £2.9 million to the UK economy.
Finance House is prominently situated just off the Southam Road (A423) with access via Beaumont Road. The A423 provides direct access to Banbury town centre which is 1.3 miles to the south. The immediate vicinity comprises a mix of residential, retail, industrial and office uses. Within walking distance of the property are retailers such as Home Bargains, Currys and Tesco and occupiers such as Fisher German and Ethos Technology.