THE WILLOWS - Kindale Ltd Property Investors

THE WILLOWS

UNITS 2 & 3 THE WILLOWS • MARK ROAD STEVEN INVESTMENT CONSULTAN TS
HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN
ROSEN
• 2 HIGH QUALITY FREEHOLD INVESTMENTS FOR SALE
• LET TO PRIME TENANTS AND SITUATED CLOSE TO THE M1 & M25 MOTORWAYS ASSOCIATES
• LOW CAPITAL VALUE OF £120.40 PER SQUARE FOOT
CHARTERED SURVEYORS &

INVESTMENT SUMMARY

Two high quality modern freehold office
investments totalling 36,129 sq ft with 89
designated parking spaces.

Well located in the main Maylands Business
Area close to Hemel Hempstead town centre,
the M1 and M25 motorways.

Local Major Occupiers include BP, ACT, Unisys
Computers, Kodak HQ, Dixons. ASOS, DuPont,
BSI, Next, Toshiba, Gillette, GIST and Epson.

Let to the prime tenants, Draeger Medical Uk
Ltd, guaranteed by Draegerwerk AG & Co
KGaA and Capita Managed IT Solutions
Limited, a company wholly owned by
Capita PLC.

Guaranteed total income of £390,985 per
annum exclusive, reflecting an average rent of
only £10.82 per square foot with a rent review
on Unit 3 on 9 December 2015 and a fixed
increase on 15 October 2016 on Unit 2.

Low capital value of only £120.40 per
square foot.

Offers in excess of £4.35 million, subject to
contract and exclusive of VAT.

Attractive net initial yield of 8.49% after
purchaser’s costs of 5.8%.

LOCATION THE
WILLOWS
The Willows is located within the well established Maylands Business Area, approximately 1
mile east of the town centre. The Willows is on Mark Road just off Maylands Avenue, which
provides excellent links to both the M1 Junction 8, approximately 1.5 mile (2.4 km) and the
M25 Junction 21 approximately 4 miles (6.4 km).

Hemel Hempstead with a population of some 90,000 is located within Hertfordshire only
26 miles (41.8 km) north west of London, 9 miles (14.5 km) north of Watford and 11 miles
(17.7 km) south of Luton and the International Airport.

The town provides fast and frequent rail services to London Euston with a journey time of
25 minutes and to the national rail network.

Major occupiers in the area include BP, ACT, Unisys Computers, Kodak HQ, Dixons, ASOS,
DuPont, BSI, Next, Toshiba, Gillette, GIST and Epson.

THE
WILLOWS

LONDON

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

M1 • JUNCTION 8

THE WILLOWS

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

27 LB
4
THE WILLOWS • SITE DEMISE

Focus

31

MARK ROAD El Sub Sta

UNIT 3 ILLOWS El
CAPITA THE W Sub Sta

h

UNIT 1
SOLD OFF

PARKING ALLOCATIONS 34

UNIT 1 • 66 SPACES UNIT 2 12
DRAEGER
UNIT 2 • 54 SPACES Saracen Estate

UNIT 3 • 35 SPACES 6

TOTAL: 155 SPACES 1

NOTE: On each lease only the building Maylands Wood
footprint is demised. The leases refer to the no
of spaces allocated to each unit but the above
layout is at the landlords discretion.

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1392

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

UNIT 2 • THE WILLOWS

The premises comprise a detached modern high office content
production/warehouse facility of steel frame construction, concrete
floor slabs and aluminum double glazed units providing a continuous
glazed area on all elevations of both floors providing excellent
natural light throughout.
The unit benefits from full gas fired central heating, three phase
electricity and ample male and female toilets.
Approximately 65% of the ground floor has been fitted out by the
tenant providing offices, research and development space together
with storage facilities.
The first floor is mainly open plan and provides high quality offices
with suspended ceilings, fully accessible raised floors and has
recently been extensively refurbished by the tenant.
The property benefits from 54 designated parking spaces with a
ratio of 1:401 sq ft.

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

UNIT 3 • THE WILLOWS

The premises comprise a detached modern high office content
production/warehouse facility of steel frame construction, concrete
floor slabs and aluminum framed double glazed units providing a
continuous glazed area on all elevations of both floors providing
excellent natural light throughout.
The unit benefits from full gas fired central heating, three phase
electricity and ample male and female toilets.
The ground floor has been fitted out to provide a mix of office and
production space. The accommodation is flexible enough to be used to
provide additional offices, research and development space.
The first floor is mainly open plan and provides high quality offices
around a central atrium with suspended ceilings and fully accessible
raised floors.
The property benefits from 35 designated parking spaces with a ratio
of 1:413 sq ft.

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

TENANCIES & ACCOMMODATION

Unit 2 is let to Draeger Medical UK Limited (Co. Registration Number: 4310199) on Unit 3 is let to Capita Managed IT Solutions Limited Formally Northgate
an effective Full Repairing & Insuring lease for a term of 10 years from 4th Managed Services Ltd (Co. Registration Number: N132979) a wholly owned
January 2011 and expiring 14th October 2021. The current passing rent is subsidiary of Capita IT Services Holdings Ltd (Co. Registration Number
£235,000 per annum (£10.84 per sq ft) with a fixed increase on 15 October 2016 6002593) on an effective Full Repairing & Insuring lease from 9th December
to £256,960 per annum reflecting only £11.85 per sq ft. 2010 and expiring 1st October 2020. The passing rent is £134,025 per annum
reflecting only £9.27 per sq ft with a rent review on 2nd October 2015. The lease
The tenant has a break option on 8th January 2019 upon serving not less than 12 is contracted outside the Landlord and Tenant Act 1954. The tenant has been in
months notice. In the event of the break being operated, the tenant will pay a rent occupation since October 2006.
penalty of £78,333. However, if the tenant does not exercise the break clause they
will be receive a further three months rent free from 25th December 2018. The The tenants are wholly owned by Capita PLC.
tenant has been in occupation since March 2002. In February 2013 the tenant
carried out further internal fit out works of circa £250,000.

The lease is guaranteed by the German parent company Draegerwerk
AG & Co KGaA.

The vendor will top up the rent upon completion of the sale so that the purchaser
receives the full rental of £256,960 per annum.

UNIT 2 SQ FT SQ M UNIT 3 SQ FT SQ M
FIRST FLOOR OFFICES 8.027 745.73 FIRST FLOOR OFFICES 6,441 598.40
GROUND FLOOR OFFICES 10,154 943.30 GROUND FLOOR OFFICES/PRODUCTION 8,011 744.28
GROUND FLOOR PRODUCTION/WAREHOUSE 3,496 324.76
TOTAL 21,677 2,013.79 TOTAL 14,452 1,342.68
SQ FT
GRAND TOTAL SQ M
36,129
3,356.47

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

COVENANT

Please click the logo for further information Draeger Medical UK Ltd, was formed in 1968 to handle sales of medical equipment
in the UK. In 1989 Draeger Ltd acquired Draeger Medical Ltd, which became the
Draeger Medical UK Ltd is a wholly own subsidiary of Draegerwerk AG, Medical Division.
Lübeck, Germany.
Draeger Medical UK Ltd offers products, services and integrated CareArea™ Solutions
Dräger is an international leader in the fields of medical and safety technology. throughout the patient care process – Emergency Care, Critical Care, Perinatal Care,
Founded in Lübeck in 1889, Dräger has grown into a worldwide, DAX-listed enterprise Perioperative Care, Patient Monitoring & IT Solutions, Lifecycle Solutions and
in its fifth generation as a family-run business. Architectural Systems. Draeger Medical UK’s goal is to provide solutions that support
patient centred processes for high quality and effectiveness, which are also more
Dräger has nearly 11,000 employees worldwide and is present in over 190 countries cost effective.
around the globe. The Group maintains sales and service organisation in over 40
countries. Its development and production facilities are based in Germany, UK,
Sweden, South Africa, the USA, Brazil, the Czech Republic and China.

DRAEGER MEDICAL UK LTD 31 DECEMBER 2013 31 DECEMBER 2012
TURNOVER £35,993,000 £36,825,000
PRE-TAX PROFIT £9,020,000 £8,870,000
SHAREHOLDER FUNDS £5,258,000 £6,180,000

DRÄGER GROUP 31 DECEMBER 2013 31 DECEMBER 2012
TURNOVER €2,374,164,000 €2,373,495,000
PRE-TAX PROFIT €1,147,565,000 €1,167,010,000
MARKET CAPITAILISATION €1,404,046,000 €1,065,022,000

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

COVENANT

Please click the logo for further information CAPITA MANAGED IT 18 MONTHS ENDED 30 APRIL 2012
SOLUTIONS LTD 31 OCTOBER 2013 £139,880,000
CAPITA MANAGED IT SOLUTIONS LTD £3,732,000
(FORMALLY NORTHGATE £200,839,000 £66,728,000
(Formerly Northgate Managed Services Ltd) MANAGED SERVICES LTD) (£1,971,000)
£17,836,000 31 DECEMBER 2102
Capita plc. acquired Northgate Managed Services Limited from Northgate TURNOVER (£478,393)
Information Solutions on 12th March 2013. The business is now known as Capita PRE-TAX PROFIT £28,721,607
Managed IT Solutions and is part of Capita IT Services Ltd. SHAREHOLDER FUNDS £179,681,196

Capita Managed IT Solutions provides cloud based and infrastructure services and CAPITA IT SERVICES 31 DECEMBER 2013 31 DECEMBER 2102
solutions to public, private and third sector organisations and specialist managed HOLDINGS LTD £3,351,800,000
services in the education, government, utilities and charities sectors. (£536,910) £281,000,000
ADMINISTRATIVE EXPENSES £22,136,090 £878,100,000
They work in partnership with their customers to gain an in-depth understanding of PRE-TAX PROFIT £179,220,448
their organisation and create a technology strategy together, to support SHAREHOLDER FUNDS
transformation, drive operational efficiency and ultimately reduce costs.
CAPITA PLC 31 DECEMBER 2013
They employ over 1,000 staff, supporting 2,000 customers across the UK, 2,500
schools and colleges and 450,000 IT users and over the next three years they plan to TURNOVER £3,896,200,000
invest £29.9 million and create 400 new jobs. PRE-TAX PROFIT £215,000,000
SHAREHOLDER FUNDS £896,300,000
CAPITA GROUP

Capita Group is one of the UK’s leading provider of business process management
and integrated professional services employing over 64,000 people at more than
350 sites across the UK, Europe, South Africa and India.

They are a £3.9 billion turnover organisation and a FTSE 100 company with
Shareholder funds of over £896 million.

Capita Managed IT Solutions is a wholly owned subsidiary of Capita IT Services
Holdings Ltd which is one of the largest UK based IT services company in the UK
with resource of over 3,700 IT Professionals, many with specialist market expertise
within Local Government, Financial Services, Education, Commercial and Health.

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN

RATEABLE VALUE PROPOSAL

PROPERTY DESCRIPTION RATEABLE VALUE We are instructed to seek offers in excess of £4.35 million subject to
UNIT 2 OFFICES, WORKSHOP & PREMISES £174,000 contract for the freehold. This reflects a net initial yield of 8.49%
UNIT 3 OFFICES & PREMISES £99,500 after purchaser’s costs of 5.8%. A purchase at this level represents
an overall capital value of £120.40 per square foot.
The business rates multiplier for 2014/2015 is 48.2p in the £.
The vendor will top up the rent upon completion of the sale so that
EPC a purchaser receives the full rental of £390,985 per annum equating
to an average rental of only £10.82 per sq ft overall.
Unit 2 = EPC rating of 90 (D)
Unit 3 = EPC rating of 97 (D) Misrepresentation Act 1967
Both certificates are available on request. The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details
contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as
statements of fact or representations and must satisfy themselves as to their accuracy. Neither Steven Rosen Associates nor any of their
employees or representatives has any authority to make or give representation or warranty or enter into any contract whatever in relation
to the Property. Rents and prices quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or
electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or
condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the
fitness of such equipment for their requirements. February 2015.

TENURE

Freehold. (As outlined in red on the site demise).

VAT

The property has been elected for VAT and will be
treated as a Transfer Of Going Concern (TOGC).

VIEWINGS STEVEN INVESTMENT CONSULTAN TS

To arrange a viewing please ROSEN
contact the sole agent:
ASSOCIATES
Steven Rosen
T: 020 7935 7022 CHARTERED SURVEYORS &
E: [email protected]

UNITS 2 & 3 THE WILLOWS • MARK ROAD • HEMEL HEMPSTEAD • HERTFORDSHIRE • HP2 7BN