The salient details are as follows:
- Modern well specified Swansea office investment on Sandringham Park, an established business location
- Single let office building totalling 66,855 sq ft
- Let in its entirety to the undoubted covenant of The Secretary of State for Transport and occupied by the Driver and Vehicle Licensing Agency (DVLA)
- The DVLA has occupied the facility since its completion in 2004 and it is used as their sole contact centre
- The tenant has recently regeared their lease for a further 10 years, expiring 29 August 2029, subject to a tenant break option on 30 August 2024
- The property has a WAULT of 11.25 years to expiry and 6.25 years to break
- Rent to be topped up to the contracted rent of £800,000 per annum, equating to £12.00 psf
- 125 year Long Leasehold from 20 December 2002
- We are instructed to seek offers in excess of £9,300,000, subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive Net Initial Yield of 8.00% and a low capital value of £138 psf, assuming purchasers costs of 7.57%.
Assuming the tenant does not activate their option to break in 2024, the fixed rental uplift in 2027 reflects a highly attractive reversionary yield of 9.00%.
The property is situated within the Swansea Vale, an extension of Swansea Enterprise Park, which has been at the heart of Swansea’s regeneration and development for over 25 years, attracting thousands of jobs and millions of pounds of investment to the local economy.
The property is situated on Sandringham Park, within Swansea Vale, approximately 4 miles north of the city centre and lies adjacent to Junction 44 and 45 of the M4 motorway. Sandringham Park is within the second phase of Swansea Enterprise Park which comprises 335 acres of mixed use commercial, residential and leisure facilities.