Download - 59-65 Lowlands Road, Harrow HA1 3AW · The Heights 59-65 Lowlands Road, Harrow HA1 3AW Greater London Multi-Let Oﬃ ce Investment Opportunity

The Heights59-65 Lowlands Road,Harrow HA1 3AW

Greater London Multi-Let Offi ce Investment Opportunity

St George’s Shopping & Leisure Centre

Morrison’s Supermarket

To Watford

To Pinner

To London

A404 Lowlands RoadA312

St Ann’s Shopping CentreA312/A404 Interchange

Headstone Road

Bus Station

Harrow-on-the-Hill StationMetropolitan LineNational Rail (Chiltern services)

59-65 Lowlands Road, Harrow

The Heights

Executive Summary › Prime multi-let Greater London offi ce investment

with 101 car parking spaces.

› Located within the commercial and retail centre of Harrow.

› Excellent communications via the M40, M25 & M1 motorways.

› Situated adjacent to Harrow-on-the-Hill train and underground station providing services into Central London with a fastest journey time of only 15 minutes.

› High quality offi ce building with air conditioning, raised fl oors and suspended ceilings.

› Ground, lower ground and four upper fl oors comprising total accommodation of 3,627.40 sq m (39,045 sq ft).

› WAULT of 3.45 years to expiries and 3.02 years to breaks.

› Multi-let producing £622,582 per annum inclusive of vendor rent guarantee of £38,550 per annum.

› Low average passing rent of only £16.53 per sq ft off ering excellent rental growth potential.

› Excellent car parking ratio of 1:373 sq ft (101 spaces).

› Freehold.

› Reversionary with an ERV of approximately £865,978 per annum (£23.00 per sq ft).

We are instructed to seek off ers in excess of £8,340,000 (Eight Million, Three Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 7.00% after acquisition costs of 6.67%.

This refl ects a low capital value of approximately £228 per sq ft.

2 The Heights, 59-65 Lowlands Road, Harrow HA1 3AW

DescriptionThe property was constructed in the early 1990’s and comprises a high quality offi ce building arranged over ground and four upper fl oors. The building benefi ts from air conditioning, raised fl oors and suspended ceilings with recessed lighting.

The fl oor plates are arranged around a central core which has two 10 person passenger lifts serving all levels. Male and Female toilets are located on each fl oor and toilet facilities for the disabled are located on the second and fourth fl oors. The entrance hall is marble clad and has a full height atrium above. Basement and surface parking is provided for a total of 101 cars (1:373 sq ft).

St George’s Shopping & Leisure Centre

Morrison’s Supermarket

To Watford

To Pinner

To London

A404 Lowlands RoadA312

St Ann’s Shopping CentreA312/A404 Interchange

Headstone Road

Bus Station

Harrow-on-the-Hill StationMetropolitan LineNational Rail (Chiltern services)


The Heights

LocationHarrow is a major commercial and retail centre in the affl uent north west London borough of Harrow. The borough borders Hertfordshire to the north and the London boroughs of Ealing, Barnet and Hillingdon. Central London is 12 miles south east, and Wembley is 3 miles to the south.

The town has excellent communications with easy access to the M40 and M25 motorways, whilst the M1 is only 4 miles to the east. Rail communications into Central London are provided via Harrow-on-the-Hill railway station, which provides a regular service to London Marylebone every 30 minutes, with a fastest journey time of 15 minutes. London Underground services to Baker Street via the Metropolitan Line are also available with a journey time of 18 minutes. Heathrow airport is 11 miles to the south west.

The town centre has excellent shopping, amenity and recreational facilities. There are two shopping centres, St George’s and St Ann’s, with retailers including Primark, Boots, H&M and a Vue Cinema.

SituationThe Heights is situated on Lowlands Road on the south west side of the town centre in an established commercial area. The property is adjacent to Harrow-on-the-Hill station.

A406

A406

A316

A40

A41

A41

A4

A1

A1

M1

M25

A1(M)

M25

M40

M25

M4

M3

WATFORD

EDGWARE

BARNET

BRENT CROSS

WEMBLEY

RICHMOND

HARROW

RUISLIP

NORTHWOOD

HEATHROW

UXBRIDGE

CENTRALLONDON

EDGWAREEDGWARE

HARROW

NORTHWOODNORTHWOODNORTHWOODNORTHWOOD


The Heights


AccommodationThe property has been measured in accordance with the guidelines as described in the Sixth Edition (September 2007 of the Code of Measuring Practice, published by the RICS:

LEVEL USE SQ M SQ FT

Ground Floor Offices 694.73 7,478

First Floor Offices 703.74 7,575

Second Floor Offices 703.74 7,575

Third Floor Offices 693.06 7,460

Fourth Floor Offices 703.18 7,569

SUB-TOTAL: 3,498.45 37,657

Ground Floor Reception 100.71 1,084

Lower Ground Floor Storage/Ancillary 28.24 304

TOTAL: 3,627.40 39,045

TenureThe property is held Freehold.

TenanciesThe property is let in accordance with the tenancy schedule producing an annual current income of £622,582 per annum inclusive of a rent guarantee for the Ground Floor Front Right Suite. This reflects an average rent of only £16.53 per sq ft based on the NIA, providing excellent opportunities for rental growth.

Typical floor plan

SiteThe site fronts Lowlands Road and benefits from an extensive frontage. It is adjoined by other office buildings, with the railway station almost immediately behind the building.

The site totals approximately 0.61 acres (0.25 hectares).

The plan sets out the approximate position of the property and is for identification purposes only. We make no warranty, express or implied nor accept any responsibility for its accuracy or completeness.


Tenancy InformationThe property is multi-let and currently produces a total rent of £622,582 per annum inclusive of a vendor rent guarantee on the Ground Floor Front Right, as set out in the schedule below. Our ERV is based on assumed refurbished accommodation. The highest rent achieved in Harrow recently is £27.50 per sq ft.

UNIT AREA (SQ M)

AREA (SQ FT) TENANT

LEASE START DATE

LEASE EXPIRY DATE

BREAK CLAUSE

NEXT RENT REVIEW RENT (PA) RENT

(£ PSF) ERV

(£ PA)ERV

(£ PSF) L&T ACT

1954 COMMENT

Ground Floor Front Right 143.26 1,542 Vacant - vendor 12

month rent guarantee N/A N/A N/A N/A £38,550 £25.00 £38,550 £25.00 N/A Note 1.

Ground Floor Rear Right 233.56 2,514 RCN Publishing

Company Ltd 01/05/2015 23/06/2020 N/A N/A £40,000 £15.91 £62,850 £25.00 Inside 7 car parking spaces. Note 2.

Ground Floor Left 317.91 3,422 Richard Hodkinson

Consultancy Ltd 01/08/2014 31/07/2024 01/08/2019 01/08/2019 £54,672 £15.98 £85,550 £25.00 Outside 10 car parking spaces. Note 3.

First Floor 703.74 7,575 RCN Publishing Company Ltd 01/05/2015 23/06/2020 N/A N/A £130,000 £17.16 £170,438 £22.50 Inside 20 car parking spaces.

Note 4.

Second, Third & Fourth Floors 2,099.98 22,604 Metsa Wood UK Ltd

(not in occupation) 19/08/1996 21/03/2019 N/A 25/03/2014 £359,360 £15.90 £508,590 £22.50 Inside 60 car parking spaces. Note 5.

TOTALS 3,498.45 37,657 £622,582 £16.53 £865,978 £23.00

*Floor area above excludes ground floor reception of 100.71 (1,084 sq ft) and lower ground storage/ancillary of 28.24 sq m (304 sq ft).

Note 1. Vendor to provide 12 month rent guarantee.Note 2. Service charge capped at £20,240 pa + RPI uplift each year.

Lease guaranteed by the Royal College of Nursing of the United Kingdom.Note 3. Service charge capped at £8.50 psf + RPI uplift each year.

Tenant only break option on not less than 6 months notice.

Note 4. Service charge capped at £60,480 pa + RPI uplift each year. Lease guaranteed by the Royal College of Nursing of the United Kingdom.

Note 5. Tenant not in occupation. Sublet as follows: 2nd floor - the Royal Bank of Scotland until 18/03/2019. Part 3rd floor - Hussein Alibhai and other individuals until 31/01/2019. Part 3rd floor - Harrow Primary Care Trust until 25/02/2019. 4th floor - Harrow Primary Care Trust until 25/02/2019. Lease guaranteed by FinnForest OY.


Covenant InformationProvided below is summary account information for the tenants:

We have undertaken individual covenant reports for each tenant which we have set out below.

RCN Publishing Company Ltd (Guaranteed by the Royal College of Nursing of the United Kingdom)RCN Publishing Company Ltd is a wholly owned subsidiary of the Royal College of Nursing of the United Kingdom, the world’s largest organisation for nurses. RCN Publishing produces one weekly, eight monthly and two quarterly nursing publications.

COMPANY NO. 2119155 31/12/2014 31/12/2013 31/12/2012

Turnover £14,257,634 £10,683,717 £13,478,233

Pre-Tax Profits £910,741 £1,052,559 £1,410,290

Shareholders Funds £3,676,391 £3,505,274 £3,947,419

Vacant - rental guarantee (6% of income)

RCN Publishing Company Ltd (27% of income) Guaranteed by the Royal College of Nursing of the United Kingdom.

Richard Hodkinson Consultancy Ltd (9% of income)

Metsa Wood UK Ltd (58% of income)Guaranteed by FinnForest OY.

Royal College of Nursing of the United KingdomThe lease to RCN Publishing Company Ltd is guaranteed by the Royal College of Nursing of the United Kingdom.

COMPANY NO. RC000459 31/03/2010 31/03/2008 31/03/2006

Turnover £87,554,000 £82,587,000 £76,658,000

Pre-Tax Profits £14,429,000 £7,746,000 £1,279,000


Richard Hodkinson Consultancy LtdRichard Hodkinson Consultancy Ltd is an independent energy and environment consultancy working from planning application stage through to handover.

COMPANY NO. 3823513 31/08/2015 31/08/2014 31/08/2013

Turnover £1,608,505 £1,317,184 £1,295,415

Pre-Tax Profits £111,285 £115,111 £190,791

Shareholders Funds £531,142 £506,427 £477,927

Metsa Wood UK Ltd (Guaranteed by FinnForest OY - further information on request)Metsä Wood provides premium-quality wood products for construction, industrial and distribution customers. Metsä Wood is part of Metsä Group, a unique Finnish co-operative comprising some 116,000 forest owners with 5.2 million hectares of forest land under its control (about 46% of all private forests in Finland) and 9,500 employees globally across 20 countries.

COMPANY NO. 3071064 31/12/2014 31/12/2013 31/12/2012

Turnover £170,469,000 £182,237,000 £198,193,000

Pre-Tax Profits £1,999,000 £3,299,000 £10,977,000



Asset Management Opportunities › Low average passing rent of only £16.53 per sq ft

off ering excellent rental growth potential.

› Most recent offi ce letting for refurbished accommodation in Harrow has recently completed at £27.50 per sq ft.

› Use dilapidations on phased lease expiries to refurbish accommodation.

› Opportunities to regear leases with tenants and sub-tenants to create direct lease relationships.

› Flexible fl oorplates providing opportunities to subdivide accommodation to suit occupational market conditions.

› Let the newly refurbished vacant accommodation of 1,542 sq ft to create new rental tone.

› Explore higher value alternative uses including conversion to residential subject to necessary planning consents.

ProposalWe are instructed to seek off ers in excess of £8,340,000 (Eight Million, Three Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level refl ects a net initial yield of 7.00% after acquisition costs of 6.67%.

This refl ects a low capital value of approximately £228 per sq ft.

Service ChargeThe service charge budget for the year commencing 01/01/2016 equates to approximately £11.11 per sq ft.

PlanningThe property is located within the London Borough of Harrow and benefi ts from a B1 planning consent. The property is not listed and does not fall within a conservation area.

Value Added TaxThe vendor has elected to waive their exemption to charge VAT.

Assuming the purchaser complies with HMRC procedures, we understand the purchase can be treated as a transfer of a going concern and thus outside the scope of VAT.

Data RoomA data room has been set up to provide details of all the property and legal information which is deemed relevant to the sale. This includes the following:

› Title information.

› Occupational leases.

› Service charge information.

› Measured survey.

› EPC.

› Marketing details.


Misrepresentation Act 1967 Tudor Toone Ltd, for itself and for the vendors of this property, hereby give notice that:

These particulars do not constitute, nor constitute any part of, an offer or contract.

Tudor Toone Ltd and its members accept no legal responsibility for any statement or representation whether written, oral or implied or whether contained in any advertisement particulars or other matters issued or any correspondence entered into by them and whether made in any antecedent present or subsequent enquiries or negotiations.

Neither Tudor Toone Ltd nor their principals, members, agents, servants or representatives have any authority whatsoever to make or give any representation or warranty whatsoever whether written or implied in relation to this property.

Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly. Unless otherwise stated all prices and rents are quoted exclusive of value added tax (VAT). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction.

Subject to contract & exclusive of VAT.

Tudor Toone Ltd is a limited company registered in England and Wales (registered number 7330167). Registered office: 41/43 Maddox Street London W1S 2PD.

Details prepared July 2016.

Subject to contract and exclusive of VAT

Further InformationFor further information or to arrange an inspection, please contact:-

Rob Tudor Tel: 0207 495 5550 BSC (Hons) MRICS Mob: 07767 250 004 Director Email: [email protected]

Lee Evans Tel: 0207 495 5550 BSC (Hons) MRICS Mob: 07900 581 920 Associate Email: [email protected]

Hugh Faith Tel: 0207 495 5550 BSC (Hons) Msc MRICS Mob: 07824 810 910 Associate Email: [email protected]

Download - 59-65 Lowlands Road, Harrow HA1 3AW · The Heights 59-65 Lowlands Road, Harrow HA1 3AW Greater London Multi-Let Oﬃ ce Investment Opportunity

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