Walton Green, Walton-on-Thames | 1
Halfway Green | Walton-On-Thames | Surrey
Prime South East Office Investment
1 | Walton Green, Walton-on-Thames
Investment SummaryFully refurbished Grade A headquarters office building
Located in the South West Greater London office market
Situated close to Walton-on-Thames railway station and the M25, providing easy access to the national motorway network
Let to Kia Motors (UK) Limited, with a parent company guarantee from Kia Motors Europe GmbH
Unexpired term certain of approximately 15 years
Rental income of £906,133 per annum, reflecting £29.50 per sq ft (£318 per sq m) on the office areas, with half rent on the reception area
The property provides 30,970 sq ft (2,877 sq m) of accommodation over ground and two upper floors
172 car parking spaces, within a secure car park providing an excellent ratio of 1:180 sq ft
Offers in excess of £12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT, which reflects an attractive net initial yield of 6.95%, allowing for purchaser’s costs of 5.8%
Walton Green, Walton-on-Thames | 2
3 | Walton Green, Walton-on-Thames
Location M4 M4
M3
M25
M25
M25
A244
A244
A315
A4 A4
A30
A30
A30
A308
A308
A309
A243
A316
A3
A3
A244
A3050
A3050
A317
A307
A307
Guildford
Woking
Basingstoke
Windsor
Hounslow
HeathrowAirport
Weybridge
Walton-on-Thames
Twickenham
Kingston-upon-Thames
Portsmouth
Reading
Staines-upon-Thames
London
1
10
9
11
12
13
14
15
4b 4 3
2
Walton-on-Thames is a town located within the M25, approximately 26.7 km (16.7 miles) south west of Central London. It is part of the South West Greater London office market, which includes the surrounding towns of Weybridge, Staines-Upon-Thames and Kingston-Upon-Thames.
Road
Walton Green is highly accessible by road, with Junction 11 of the M25 8.8km (5.5 miles) to the west and Junction 1 of the M3 only 7.4 km (4.6 miles) to the north. Central London can be accessed either via the A316 to the north, or the A3 to the south of the property.
Distance Km MilesCentral London 26.7 16.7
Weybridge 3.9 2.4
Kingston-upon-Thames 10.5 6.6
Staines-upon-Thames 12.2 7.6
Air
Walton Green is well placed in terms of access to London’s airports; Heathrow Airport is approximately 18.3 km (11.4 miles) to the north; Gatwick Airport is approximately 39.7 km (24.8 miles) to the south east; and London City Airport is approximately 40.7 km (25.3 miles) to the north east.
Rail
Access to the national railway network is provided at Walton-on-Thames railway station, located only a 2 minute walk to the south west of the subject property. From there, South West Trains run a regular service directly into London Waterloo approximately every 15 minutes, with a fastest journey time of 26 minutes. There are also regular services to Woking and Basingstoke to the west.
MinutesLondon Waterloo 26
Woking 12
Basingstoke 51
Not to scale: For Indicative Purposes Only
Postcode: KT12 1RS
Walton Green, Walton-on-Thames | 4
BURWOOD RD
WES
TCA
R L
N
ROBINSW
AY
MO
LES
EY R
DAMBLESIDE AVE
AS
HLE
Y R
D
OAT
LAND
S DR
CHURCH ST
COTTIMORE LN
HERSHAM RD
RYDENS RD
QUEENS RD
QUE
ENS R
D
STATION A VE
WALTON BRIDGE RD
M25 (J11)
M3(J1)
Hersham
Halfway Green
Esher
A3 (West)
Walton-on-Thames
A317
A3050
A317 A244
A244
A244
A3050
West EndCommon
Queen Elizabeth IIReservoir
TownCentre
SituationWalton Green is situated on Halfway Green, off Station Avenue. This leads directly onto the A244, connecting the property with Hersham to the south and Sunbury to the north. The property is 1.6 km (1.0 mile) to the south of Walton-on-Thames town centre, which provides extensive amenities including The Heart Shopping Centre, with over 60 retail stores, as well as other retail and leisure offerings.
To the south, the property is bounded by further office buildings; Walton Court, formerly Unilever’s headquarters, is situated immediately to the south west, whilst KBC House, the headquarters of KBC Advanced Technologies, is situated immediately to the south east. Other surrounding uses include a local retail offering, car showroom and residential accommodation.
Not to scale: For Indicative Purposes Only
5 | Walton Green, Walton-on-Thames
Walton Green, Walton-on-Thames | 6
DescriptionWalton Green is a headquarters office building, which has recently been refurbished to Grade A specification.
The property is of brick construction, under a pitched roof. It provides 30,970 sq ft (2,877 sq m) of office accommodation arranged over ground and two upper floors. The floor plates are arranged as two ‘wings’ on either side of a central core, which contains two thirteen person passenger lifts, and there are staircases located at the end of each wing. As a result, the office accommodation is highly flexible and capable of multiple occupation on a whole or part floor by floor basis. The floor plate on the second floor is slightly recessed to accommodate two balconies which overlook Halfway Green.
The recent refurbishment involved the installation of new fan coils and chillers to the four pipe fan coil air conditioning, new ceiling tiles and new LG7 compliant lighting. The WCs and showers were also replaced, and the building benefitted from a new reception and full redecoration.
As part of their fit out, the tenant has applied for planning permission to construct a glazed extension to the rear of the property to incorporate their new reception area.
7 | Walton Green, Walton-on-Thames
14.6m
15.5m
14.9m
Chy
HERSHAMRO
AD
HALFW
AYG
REEN
FERNLEIGH CLOSE
Halfway Green
1 to 3
AmbulanceLodge
109105
111
Court
The
93
Overthorn
107
77
99
40
103
13to27 7981
42 to
50
87
89
101
93a
401
to26
Oakdene
Station
Bungalow
2
91
97
26
Vincent Court
Site Area 1.631 Acres (0.660h)Quinton Scott
Chartered Surveyors
WALTON GREEN,HALFWAY GREEN WALTON-ON-THAMES SURREY KT12 1RS
Ordnance Survey © Crown Copyright 2012. All rights reserved. Licen ce number 100020449.Getmapping plc 2012. Plotted Scale - 1:1250
SpecificationFollowing the recent refurbishment, the property provides the following specification:
New fan coils and chillers to four pipe fan coil air conditioningNew metal tile suspended ceilingsNew LG7 compliant lighting2.7m floor to ceiling height1.5m planning gridFull access raised floors (120mm clear void)New WCsNew showers2 x 13 person passenger liftsBalconies on the second floor
ParkingThe building benefits from 172 car parking spaces, equating to an excellent car parking ratio of 1:180 sq ft.
Site AreaThe site area is 0.66 hectares (1.63 acres).
AccommodationThe property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas:
Floor Use Area (sq ft)
Area (sq m)
Second Office 9,986 928
First Office 10,495 975
Ground Office 9,983 927
Ground Reception 506 47
TOTAL 30,970 2,877
First Floor Plan
Not to scale: For Indicative Purposes OnlyCrown Copyright - licence no. 100018190. Based on Ordnance Survey 2013. Not to Scale - For Identification Purposes Only.
Walton Green, Walton-on-Thames | 8
9 | Walton Green, Walton-on-Thames
TenancyThe property is fully let to Kia Motors (UK) Limited, with a guarantee from Kia Motors Europe GmbH on a 15 year lease expiring 24th December 2027. The unexpired term is therefore approximately 15 years.
The current rent passing is £906,133 per annum, which equates to £29.50 per sq ft on the office accommodation and £14.75 per sq ft on the reception. The tenant benefits from a rent free period of 20 months, which will be topped up by the vendor.
The rent is subject to five yearly upwards only rent reviews, the next of which will be 25th December 2017.
The lease is drafted on full repairing and insuring terms.
The guarantee from Kia Motors Europe GmbH is in place until the tenant satisfies a Profits Test, whereupon the guarantor shall be released from its obligations. This requires the tenant to demonstrate that they have produced net profits of at least three times the passing rent, and have net assets of at least ten times the passing rent, for three consecutive years.
Tenant’s CovenantKia, headquartered in Seoul, is South Korea’s second-largest automobile manufacturer, with global sales in excess of 2 million vehicles a year. The largest manufacturer in South Korea, the Hyundai Motor Company is a 33.99% stakeholder in Kia, although the brands operate separately. Kia is a household name, with an ever-expanding range of models sold through a network of dealers in 172 countries, employing over 44,000 people globally.
Kia has been operating in the UK since 1991. Initially private car distribution firm MCL Group acted as an importer, until Kia Motor Corporation took direct control of the franchise in the UK in 2002, creating a new company, Kia Motors UK. As Kia has grown in the UK, so too has its dealer network, expanding from 90 dealers to in excess of 160 since Kia took direct control of distribution in 2002.
Kia Motors (UK) Ltd
Dun and Bradstreet give Kia Motors (UK) Limited a rating of 2A3.
Their financial records for the last three years are summarised below:
Year Ending
Sales Turnover (£000’s)
Profit / (Loss) Before Tax (£000’s)
Tangible Net Worth (£000’s)
Net Current Assets (Liabilities) (£000’s)
Dec-2011 547,229 18,889 1,610 (5,005)
Dec-2010 553,996 3,418 (17,279) 15,230
Dec-2009 519,166 (55,050) (20,697) (18,645)
Kia Motors Europe GmbH
Dun and Bradstreet give Kia Motors Europe GmbH a rating of 5A2, which indicates a lower than average risk of business failure.
Their financial records for the last three years are summarised below:
Year Ending
Net Sales Turnover (€000’s)
Profit / (Loss) Before Tax (€000’s)
Shareholders Equity (€000’s)
Current Assets (Liabilities) (€000’s)
Dec-2011 2,939,242 (2,481) 560,142 1,013,314
Dec-2010 2,030,487 1,721 534,659 1,137,017
Dec-2009 1,854,383 7,767 506,938 1,384,410
Kia Motors Europe GmbH is the parent company of Kia Motors (UK) Limited.
TenureThe property is held freehold.
Unexpired TermThere are approximately 15 years unexpired.
Rental Top UpThe vendor is proposing to top up the remaining rent free period on the lease.
Walton Green, Walton-on-Thames | 10
Market CommentarySitting within the wider market of the South West M25 quadrant, Walton-on-Thames has an affluent catchment and excellent communication links. As such, it is an attractive area for office occupiers that wish to exploit the benefits of a suburban London location, combining an attractive working environment with close proximity to Central London. Surrounding locations, such as Staines, Chertsey and Weybridge, that attract occupiers for similar reasons provide accommodation for many blue chip occupiers including Proctor and Gamble, Mercedes, Sony, Centrica, IBM and Samsung.
The supply of available office accommodation within the South West M25 quadrant has declined significantly over the last decade, standing at just over 300,000 sq ft at the end of 2012. Conversely, take up has remained strong; 90,000 sq ft of space has been placed under offer since the start of 2013 and there are over 75 further active requirements. With a spike in lease expiries/breaks due over the next five years, and a limited amount of speculative development under construction, the amount of available Grade A accommodation is expected to continue to diminish, laying a strong foundation for rental growth.
Investment TransactionsRecent comparable transactions include:
Date Property Rent psf Term Certain (Years)
Price (Cap Val psf)
Net Initial Yield
Purchaser
Jan-13 IMG, 5 Longwalk, Stockley Park
£26.17 15.0 £42.27M (£391)
6.35% Overseas Investor
Jul-12 Unilever, Leatherhead £24.69 11.2 £61.15M(£361)
6.85% London Metric
Jul-12 Forum House, Staines £21.90 9.0 £5.16M(£303)
7.23% Private Investor
Apr-12 Costain House, Vanwall Business Park, Maidenhead
£29.46 12.6 £14.71M(£421)
7.00% Middle Eastern
Investor
10 | Walton Green, Walton-on-Thames
VATThe property is elected for VAT.
EPCThe building has an EPC rating of C.
ProposalOffers in excess of £12,325,000 (Twelve Million, Three Hundred and Twenty Five Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive net initial yield of 6.95%, allowing for purchaser’s costs of 5.8%.
Contact DetailsFor further information, or to arrange an inspection, please contact:
Mark Porter 020 7409 9944 [email protected]
Jhaklyne Hassan 020 7409 8765 [email protected]
Megan Garner 020 7409 8145 [email protected]
20 Grosvenor Hill London W1K 3HQ
Important NoticeSavills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 February 2013