taylormade court | jays close | viables business park

TaylorMade Court | Jays Close | Viables Business Park | Basingstoke | RG22 4BS


Investment Summary

• Basingstoke is a major commercial centre with excellent road and rail communications.

• Viables Business Park is a prime out of town location in the South East.

• The opportunity comprises a headquarter’s office / warehouse building of approximately 4,526.52 sq m (48,723 sq ft) on a 1.38 hectare (3.40 acre) site.

• Low site density of approximately 22%.

• Let to TaylorMade Golf Ltd until 28th September 2016.

• Guarantee to the lease provided by Adidas AG.

• Producing a gross rental income of £421,500 per annum, £337,200 per annum on a net basis following deduction of head rent.

• Leasehold.

• Offers in excess of £2,900,000 (Two Million, Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT (£63.00 per sq ft capital value).

• Attractive net initial yield of 11.00% after purchaser’s costs of 5.7625%.

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Location

Basingstoke is a major commercial centre located in the County of Hampshire, 80 km (50 miles) south west of London, 27 km (17 miles) south of Reading, and 48 km (30 miles) north of Southampton.

Road communications in the area are excellent with the M3 motorway (Junction 6) being located adjacent to the town, providing access to London and the national motorway network and the south coast. The M4 motorway (Junction 11) lies 24 km (15 miles) to the north via the A33. The A33 and the A339 provide direct routes to Reading and Newbury respectively. The town centre is served by a ring road known as the Ringway.

Regular train services run into London Waterloo from Basingstoke, with a fastest journey time of approximately 45 minutes. Other direct services include Reading and Oxford.

The town is well located for access to Heathrow Airport, approximately 56 km (35 miles) to the north east, whilst Southampton Airport is approximately 48 km (30 miles) to the south west.

Major employers in the town include AXA, Barclays, The AA, Motorola, Sony UK, Shire Pharmaceuticals, Ericsson, Huawei Technologies and ITT Industries.

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Situation

The property is situated within the heart of the Viables Business Park, a premier out of town business park location for Basingstoke. The park benefi ts from excellent access to the M3 motorway via Junction 6, approximately 3.2 km (2 miles) to the east.

The property is situated at the southern end of Jays Close which is accessed off The Harrow Way which in turn leads to the Ringway and the M3. Neighbouring occupiers include Sony UK, De La Rue, and Motorola.

The town centre is situated approximately 2.5 km (1.5 miles) to the north and is home to a number of major retailers. Festival Place, Hampshire’s regional shopping destination forms part of the town centre and comprises over 200 shops, restaurants, cafes, and a multiscreen cinema.

JAYS CLOSE

M3 MOTORWAY

VIABLES ROUNDABOUT

THE HARROW WAY

MotorolaDevelopment Site

De La Rue

Vibro-MeterMeggitt

Steris HouseSteris European

Headquarters

Rosalind HouseEnterprisemouchel

Sony UK

Data Centre

To M3

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Description

The property comprises a headquarter office and warehouse building, providing three floors of office accommodation to the front of the property and a single storey warehouse to the rear.

Originally constructed in the early 1980’s, the property was substantially refurbished approximately 10 years ago.

The office element is of reinforced concrete frame construction incorporating pre-cast concrete floors and roof deck. Elevations are clad with facing brickwork walls incorporating powder coated double glazed windows and entrance doors. Internally the offices benenfit fom raised floors, air conditioning and an 8 person passenger lift serving all floors.

The warehouse element is of steel portal framed construction under a plastisol coated profile metal clad roof with a combination of facing brickwork and plastisol coated profile metal cladding for elevations. The warehouse benefits from an eaves height of 9 metres (29’ 6”).

The major refurbishment in the late 1990’s included replacement of all cladding materials to the warehouse area and replacement of the original curtain walling to the offices with the current brick facade.

Externally there is car parking for 95 vehicles.

To M3

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SiteThe site is broadly rectangular in shape, with frontage to Jays Close of approximately 190 metres and a depth of approximately 80 metres. We understand the site extends to approximately 1.38 hectares (3.40 acres) providing a site density of approximately 22%.

The adjoining site of approximately 0.85 hectares (2.1 acres) is available on a ground lease from Basingstoke and Deane Borough Council, offering the potential to extend TaylorMade Court or alternatively a comprehensive development in the future.

TenureThe property is held Leasehold from Basingstoke Borough Council for a term of 125 years from 13 November 1981, leaving approximately 96 years unexpired. A ground rent is payable equivalent to 20% of rents receivable, but in the event part or the whole of the property is vacant, the rent payable is 20% of the rack rental value. The current ground rent is £84,300 per annum exclusive, subject to annual upward only rent reviews.

TenancyThe property is let to TaylorMade Golf Limited with a guarantee from Adidas AG, for a term of 15 years from 29 September 2001, expiring 28th September 2016 (approximately 6 years unexpired). The lease is drafted on full repairing and insuring terms. The current passing rent is £421,500 per annum and therefore the net annual income produced by the property is £337,200 per annum following deduction of the head rent payable. The lease is subject to a rent review in November 2011.

Floor Use sq m GIA sq ft GIA

Ground Floor - Warehouse 2,205.43 23,739

Ground Floor – Offices 777.41 8,368

First Floor - Offices 779.46 8,390

Second Floor - Offices 764.22 8,226

TOTAL 4,526.52 48,723

AccommodationWe have been advised the property provides the following gross internal floor areas:

5

Covenant Information

Tenant - TaylorMade Golf LimitedTaylorMade Golf Limited are involved in the wholesale of sports and leisure goods and are a leading manufacturer of golf equipment. Further information can be found at www.taylormadegolf.eu.

They have been awarded an ICC risk score of 57 out of 100, indicating normal, limited risk potential. For the previous 3 years they have reported the following figures:

Date of Accounts 31/12/2009 31/12/2008 31/12/2007

Turnover £79,691,000 £66,896,000 £59,870,000

Pre Tax Profits (£3,821,000) (£1,541,000) (£911,000)

Total Assets £34,673,000 £30,798,000 £27,118,000

Date of Accounts 31/12/2009 31/12/2008 31/12/2007

Turnover €1,399,182,000 €860,577,000 €816,564,000

Pre Tax Profits €200,046,000 €222,306,000 €131,914,000

Total Assets €5,617,107,000 €4,969,276,000 €4,722,353,000

Guarantor - Adidas A.G.Adidas A.G. is a global player in the sporting goods industry with brands including Adidas (72% of A.G. Sales), TaylorMade (8% of A.G. sales), Reebok (16% of A.G. sales), Rockport (2% of A.G. sales) and Reebok CCM (2% of A.G. sales). Further information can be found at www.adidas-group.com.

For the previous 3 years they have reported the following figures:

VAT

The property is elected for VAT and therefore VAT will be payable on the purchase price unless the transaction is structured by way of a TOGC.

Price

We are seeking offers in excess of £2,900,000 reflecting a net initial yield of 11.00% after purchaser’s costs of 5.7625%. This represents a capital value per sq ft of £63.00.

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For further information, or to arrange an inspection, please contact:

Misrepresentation Act 1967TUDOR TOONE LLP AND LONDON CLANCY, FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY, HEREBY GIVE NOTICE THAT:-

(I) THESE PARTICULARS DO NOT CONSTITUTE, NOR CONSTITUTE ANY PART OF, AN OFFER OR CONTRACT.

(II) TUDOR TOONE LLP/ LONDON CLANCY 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.

(III) NEITHER TUDOR TOONE LLP/ LONDON CLANCY 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.

(IV) 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.

(V) 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 VATTUDOR TOONE LLP IS A LIMITED LIABILITY PARTNERSHIP REGISTERED IN ENGLAND AND WALES WITH REGISTERED NUMBER OC 305 411.REGISTERED OFFICE: 41/43 MADDOX STREET LONDON W1S 2PDDETAILS PREPARED OCTOBER 2010

41-43 Maddox Street, London, W1S 2PD

www.tudortoone.comt: 0207 495 5550 f: 0207 495 5551

Michael Toone: [email protected]

Lee Evans: [email protected]

Jim London: [email protected]

Mark Clancy: [email protected]

taylormade court | jays close | viables business park

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