Phoenix Court was constructed in the early 1990's comprising three blocks of modern office / industrial units with on site car parking.
The subject units are located in the central block and have good prominence to Hawkins Road.
The units are of steel frame construction with aluminium windows and doors, with steel and brick elevations under a pitched profiled steel roof. Internally, the offices have been fitted out to a modern standard to include air conditioning in part, and modern toilet and kitchen facilities.
Accommodation
The property provides a gross internal area of approx. 13,885 sq. ft (1,290 sq. m) or a net internal area of approx.:
Unit 1 Approx. 3,895 sq. ft (361.9 sq. m)
Unit 25 Approx. 2,199 sq. ft(204.3 sq. m)
Unit 21 / 23 Approx. 4,098 sq. ft(380.7 sq. m)
Unit 19 Approx. 1,904 sq. ft(176.9 sq. m)
Total Approx. 12,096 sq. ft(1,124 sq. m)
Business Rates
We are advised that, as of 1st April 2023, Unit 1 has a rateable value of £27,000, and Units 19 / 25 have a rateable value of £75,500. We estimate that the rates payable are likely to be in the region of £52,480 per annum.
Interested parties are advised to consult with the local rating authority to confirm their liabilities in this regard.
Energy Performance Certificate (EPC)
The property has four separate assessments, with ratings of B (29), B (36), B (45), and C (60). Full copies of the EPC assessments and recommendation reports are available from our office upon request.
Tenancy
There are two leases: one for Units 1 and 25 (marked red on the above plan); and the other for Units 19-23 (marked blue on the above plan). Both are for a term of 15 years from September 2018 on full repairing and insuring terms (subject to Schedules of Condition), contracted Outside the Security of Tenure Provisions of the Landlord and Tenant Act 1954. The tenant has served notice to break the lease on 20th September 2023, and has vacated the premises in part.
The lease is guaranteed by DC Thomson Magazine Publishing Limited (SC442311).
The current rent passing on Units 1 and 25 is £85,000 per annum and on Units 19-23 is £80,000 per annum, both exclusive of business rates and VAT. The rents reflect approximately £13.94 per sq. ft net internal.
VAT
Units 1 and 25 are elected for VAT, Units 19-23 are not elected for VAT. It may be possible to agree a sale by a transfer of a going concern (TOGC) if requested.
Proposal
Offers are requested of £1,250,000 (One Million and Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT where applicable.
A purchase at this level reflects an initial yield of 12.36% (after deducting purchasers cost of 6.75%) and £90 per sq. ft capital value on the gross internal area.
Alternatively, a new lease on the whole would be considered. Rent to be agreed.
Anti-Money Laundering Regulations
Anti-Money Laundering Regulations require Fenn Wright to formally verify prospective purchaser's identify, residence and source of funds prior to instructing solicitors.
Legal Costs
Each party shall bear their own legal costs involved with this transaction.
Viewings Strictly By Appointment Via Sole Agents:
Fenn Wright
01206 85 45 45
colchestercommercial@fennwright.co.uk
( Agency Pilot Software ref: 14870109 )
