For Sale - Under OfferModern single let office investment with fixed increases

Hestia House, 2 Edgewest Road, Lincoln, Lincolnshire, LN6 7EL

Description

Hestia House is situated at the west end of the University of Lincoln’s main campus with close proximity to the Lincoln Science & Innovation Park. The property is accessed via Ruston Way which leads from Brayford Way and the Brayford Pool. Surrounding amenity include Tritton Retail Park, Morrisons, B&Q, Holiday Inn Express, McDonalds and St Marks Shopping Centre. The Lincoln Performing Arts Centre and The Engine Shed are also a short walk away from the property.

The property was constructed in 2012 and comprises a modern, self contained two storey office building extending to approximately 26,331 sq ft (2,446.28 sq m). It is of steel frame construction with brick elevations beneath a pitched profile steel roof and developed over ground and first floor with onsite parking. The property benefits from a double height reception area on the ground floor and two rectangular floor plates of approximately 12,500 sq ft and served by one 8 person passenger lift. The tenant fit out is extensive and to a very high standard.

The property has been developed to a Grade A specification which includes:

  • Comfort cooling
  • Suspended ceilings with fluorescent recessed lighting
  • Raised access floors
  • WCs and shower facilities

The property also benefits from 100 allocated car parking spaces providing a parking ratio of 1:263 sq ft.

location

Lincoln is a cathedral city and county town of Lincolnshire, England. Lincoln’s major landmarks are Lincoln Cathedral and Lincoln Castle. The city is also home to the fast growing University of Lincoln and Bishop Grosseteste University.

Lincoln is located 18 miles north east of Newark-on-Trent on the A1 via the A46, 28 miles south of Scunthorpe via the A15, 37 miles south east of Doncaster via the A57 and A1(M) and 37 miles south west of Grimsby via the A46.

The non-metropolitan district of Lincoln has a population of 93,541 people according to the 2011 UK census. The entire Lincoln urban area, including North Hykeham and Waddington has a population of 130,200 according to the 2011 UK census. It is ranked 4th in the Experian East Midlands retail rankings. It is a university city with the main campus on the opposite side of the Brayfood Pool with over 14,000 students and staff in-situ, contributing an estimated £250 million into the local economy.

investment summary

  • Modern office building extending to approx, 26,331 sq ft (2,446.28 sq m)
  • Freehold
  • The building is let in its entirety to Barbon Insurance Group Limited for a term of 15 years expiring on 26th September 2027 (10.5 years unexpired)
  • Rent of £280,258 per annum equating to £10.85 per sq ft (allowing for half rate on reception)
  • Minimum 2% per annum compounded rental uplift in September 2022
  • 100 car parking spaces offering a car parking ratio of 1:263 sq ft
  • We are seeking offers in excess of £4,000,000 for the freehold interest, subject to contract, reflecting a Net Initial Yield of 6.58% and a mininum Reversionary Yield of 7.26% in 2022. We have allowed for purchaser’s costs of 6.54%

Please see the attached property particulars for full details regarding the investment.

VAT

The property is elected for VAT. It is anticipated that the transaction will be treated as a TOGC.