High Yielding, Secure Income, Office Investment Opportunity

Morgan Sindall House | Corporation Street | Rugby | CV21 2DW


subject to contract

Click To Purchase


  • Regional Headquarters office building

  • Prominently located in Rugby town centre

  • Let to Morgan Sindall Construction & Infrastructure Limited

  • Highly secure income (Pre-Tax Profits £50m, Net Assets £302m)

  • Parent company guarantee from Morgan Sindall Group Plc, a FTSE 250 listed company

  • Let until February 2029, without breaks

  • Freehold

  • £5,040,000, subject to contract

  • 8.50% Net Initial Yield



Rugby is the second largest town in Warwickshire, located approximately 137 km (85 miles) north-west of London. It is situated between Coventry, Leicester and Northampton at the crossroads of the motorway network where the M1, M6, M69, A5 and A14 join, making it a first-class location and easily accessible from the rest of the UK.

The town is connected to the national railway network with a fastest journey time to London Euston and Birmingham New Street of just 50 minutes and 40 minutes respectively, making it a popular commuter town. Birmingham International Airport is approximately 39 km (24 miles) to the north-west.

The market town dates back to the Iron Age and is the birthplace of rugby football and the jet engine. Rugby School is one of England’s oldest and most prestigious public schools. Rugby was ranked 15th in the best places to live in the United Kingdom in Halifax’s Quality of Life Survey 2020.


The property is prominently located fronting the A426 (Corporation Street) at the junction with West Leyes. The property also bounds Bennfield Road, thereby offering a large L-shaped site with three frontages.

The Rugby Art Gallery, Museum and Library is directly opposite, as is an Asda Superstore. The property is also in close proximity to Rugby Central Shopping Centre which provides a total of 19,509 sq m (210,000 sq ft) of retail space over four levels, plus a 535 space multi-storey car park. According to its website the centre benefits from over 80,000 visitors per week and has over 50 stores with retailers including Iceland, Wilko, Boots, New Look, Vision Express, Superdrug, Ryman and Subway.

The town’s high street is less than a five minute walk to the east and Rugby railway station is 1.6 km (1 mile) to the north-east. The property benefits from being surrounded by a number of commercial uses as well as residential.



The property comprises an office property built over basement, ground and three upper floors, on a large site, with an under-croft car park. The property has an entrance onto West Leyes. There are 88 car parking spaces provided on site.

The property is of reinforced concrete frame construction with cast insitu floor slabs, built in the 1970s. The internal areas provide bright offices, served by a lift to all floors. The property was refurbished by the current occupier in 2013. The Schedule of Works for the refurbishment can be found in the data room, showing a cost in the order of £1.265m in 2012.

At the time of the works in 2012 asbestos reports were prepared by Redhills Environmental Consultants and Overbury – these are provided in the data room. It was recommended to remove asbestos – we provide in the data room the current Asbestos Management Plan (outlining compliance with current requirements) and Asbestos Register of October 2022.

The Energy Efficiency Rating is “C”.


The property has been measured by BKR and provides the following floor areas:

Basement 88 car spaces  
Ground Floor 10,365 sq ft 962.91 sq m
First Floor 10,496 sq ft 975.08 sq m
Second Floor 10,493 sq ft 974.80 sq m
Third Floor 676 sq ft 62.80 sq m
Total Net Internal Area 32,030 sq ft 2,975.59 sq m

The floor plan and measurements will be assigned to the purchaser on completion at a cost of £1,945+VAT.



A Phase I Environmental Report of November 2022 by Avison Young is provided in the data room. The report concludes that the site represents a “Low/Moderate Environmental Risk” and will be assigned to the purchaser on completion at a cost of £2,500 + VAT.

A sub-station owned and operated by Western Power Distribution (East Midlands) Plc is located on the site within the structure of the existing building.





The property is let to Morgan Sindall Construction & Infrastructure Limited (previously known as Morgan Sindall Plc) on a full repairing and insuring lease for a term of 15 years from 6th February 2014, expiring on 5th February 2029. It is noted that the lease places a full repairing obligation on the tenant (which includes the exterior and structure), being responsible for any accumulated items at the date of the lease. This is a strong repairing obligation since it ensures the tenant is liable for any inherent defects should they exist.

The lease is guaranteed by Morgan Sindall Group plc.

The current rent is £375,378 per annum with rent reviews linked to increases in the Retail Price Index (compounded annually), subject to a cap at 21.6652% (4% per annum) and collar at 10.4080% (2% per annum).

In calculating the increase, reference is made to the Retail Price Index figure in the month preceding the review, namely January. Given RPI in January 2019 was 283 and in September 2022 347.6, the increase of 22.8269% has already exceeded the cap of 21.6652%.

Therefore, the vendor will top-up the income to the guaranteed maximum increase in February 2024 of 21.6652%, meaning the purchaser will benefit from an income of £456,704 per annum.


Morgan Sindall Construction & Infrastructure Limited (Co. No. 04273754) has reported the following figures:

Year Ending 31st December 2021 31st December 2020
Revenue £1,416,470,000 £1,533,146,000
Pre-Tax Profits £49,652,000 £28,246,000
Net Assets £301,811,000 £280,279,000

Morgan Sindall Construction & Infrastructure Limited is a UK construction and infrastructure business with a network of local offices. The Company works for private and public sector companies on projects and frameworks from £50,000 to over £1 billion. Activities range from small works and repair and maintenance to the design and delivery of complex construction and engineering projects. The Company also operates across the commercial, defence, education, emergency and custodial, energy, healthcare, industrial, leisure and community, nuclear, retail, science and technology, transport and water sectors.

The Company is part of the Morgan Sindall Group plc (Co. No. 00521970) which has reported the following figures:

Year Ending 31st December 2021 31st December 2020
Revenue £3,212.8 million £3,034.0 million
Pre-Tax Profits £126.2 million £60.8 million
Net Assets £474.2 million £420.1 million

Morgan Sindall is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. It is a group of specialist businesses, delivering construction and regeneration across the UK for the public, commercial and regulated sectors. The group employs approximately 6,900 people and operates through five divisions; Construction & Infrastructure, Fit Out, Property Services, Partnership Housing and Urban Regeneration.

2021 was a record year for Morgan Sindall, delivering a record set of results 42% above the Group’s last peak in 2019. The Group continued to win work throughout 2021; secured workload at the year end was £8,614m, up 4% on the prior year. Over 46% of this workload is secured for 2024 onwards. Adjusted operating profit increased by 92% to £131.2m (2020: £68.5m)

For further information visit www.morgansindall.com.



The property has been elected by the vendor for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).


We are instructed to seek a figure of £5,040,000 (Five Million and Forty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.50% assuming standard purchaser’s costs of 6.59%.

Please note that a purchaser will be re-charged the costs of the measured survey (£1,750 + VAT), environmental survey (£2,500 + VAT) and searches (£1,409.86 + VAT ) which are provided in the data room.


Investment Considerations

  1. An opportunity to acquire a regional headquarters office investment;

  2. A purchase at the asking price reflects an attractive net initial yield.

  3. The property provides highly secure income, being let to Morgan Sindall Construction & Infrastructure Limited (Pre-Tax Profits £50m, Net Assets £302m);

  4. The lease is guaranteed by Morgan Sindall Group Plc, a FTSE 250 listed company;

  5. Let until February 2029, without breaks;

  6. The property occupies a prominent position in Rugby town centre fronting the A426;

  7. Freehold;

Data Room and clicktopurchase®

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Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer  neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Daniel Elia daniel@singervielle.co.uk +44 (0) 203 701 1353

Vendors Solicitor

Stephenson Harwood  +44 (0) 207 809 2514
Stephen Laud stephen.laud@shlegal.com