• Established commercial location, situated on an Eco Park

• A development of two detached office buildings with 68 car parking spaces

• Let to two established tenants

• 79% of the income secured against Premier Medical, wholly owned by Kuro Health (Net Assets £19.5m)

• Unit 3 let on a new lease from March 2021

• Low passing rents

• Investment Value underpinned by Vacant Possession Value

• £1,140,000, subject to contract

• 10.0% net initial yield

• Capital value £808 per sq m / £75 per sq ft

Ludlow Eco Park is situated just off the A49 bypass, approximately 1.6 km (1 mile) east of Ludlow town centre. The Park has been developed on environmental sustainability principles, with all buildings required to be constructed to BREEAM ‘Excellent’ standards – the building industry’s highest rating for environmental excellence in construction - in order to reduce greenhouse gas emissions by 50%. The Park is a partnership scheme involving South Shropshire District Council, regional development agency Advantage West Midlands and the Rural Regeneration Zone.

The Eco Park is also home to the Ludlow Park and Ride, providing easy, convenient and environmentally friendly access to Ludlow town centre.

Other occupiers on the Park include Capita Medical Reporting WR Partners accountants, Lanyon Bowdler solicitors, a DVSA driving test centre and Severn Edge Veterinary Group.

This area of Ludlow has established itself as the premier commercial location for the town. Other occupiers in close proximity include Pets at Home, The Co-operative Food and Travelodge. The property also benefits from being adjacent to Ludlow Business Park which is home to occupiers including Howdens, Toolstation, Screwfix, Travis Perkins, Wolseley Plumb & Parts and Land Rover.

The property comprises a development of two detached office buildings constructed around a central car park which provides approximately 68 parking spaces (1:21 sq m / 1:223 sq ft).

The larger of the two buildings (Block B, Unit 4) is single let and provides office accommodation over ground and first floors.

The smaller of the two buildings (Block A) has been split into three units, two of which have been sold off on long leases.

Built in 2007, both buildings are of steel frame construction with block and brickwork elevations with pitched roofs covered in profile metal cladding. The windows are metal framed and double glazed throughout and the atrium areas in the main stairwells feature full height glazing to both floors. The specification includes raised floors, gas fired central heating and individual comfort cooling cassettes to each unit. Unit 4 includes a passenger lift plus male, female and disabled toilets on each floor as well as a shower on the ground floor.

We understand the rateable value for the property is as follows:

The Uniform Business Rate is 49.9 pence per pound.

We estimate the site area to be approximately 0.466 hectares (1.152 acres).

Block A, Unit 3, Alliance Court is let to  Implemental Limited on effectively a full repairing and insuring lease for a term of 10 years from 9th March 2021, expiring on 8th March 2031. There is a tenant’s break option on 9th March 2026, subject to six months’ notice. The lease is subject to a Schedule of Condition. The lease is inside the 1954 Act.

The current passing rent is £25,000 per annum (£87.43 per sq m / £8.12 per sq ft). There is an upwards only rent review on 9th March 2026. The Landlord holds a rent deposit of £6,250.

The tenant has been in occupation since 2015 and entered into a lease renewal in 2021, demonstrating their desire to remain in the property.

Block A, Unit 1 will be sold off on a long lease for a term of around 984 years at a peppercorn rent.

Block A, Unit 2 was sold off a long lease for a term of 997 years from 25th March 2007 at a peppercorn rent.

Block B, Unit 4, Alliance Court is let to Premier Medical Group Limited, guaranteed by Premier Medical 1999 Limited, on effectively a full repairing and insuring lease for a term of 10 years from 29th March 2017, expiring on 28th March 2027. There is a tenant’s break clause on 28th March 2024, subject to six months’ notice. The lease is inside the 1954 Act.

The passing rent is £95,920 per annum (£85.24 per sq m / £7.92 per sq ft). The 29th March 2022 rent review is currently outstanding. The Landlord holds a rent deposit of £22,481.25.

Therefore, an investor will benefit from a total income of £120,920 per annum.

The tenants are required to contribute towards a service charge which for the year ending 31st March 2022 totals £9,012.00. The Service Charge Accounts and Service Charge Budget are available to download.

The property has been registered for VAT and the Seller has opted to tax. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

A purchase at the asking price reflects a capital value of £808 per sq m (£75 per sq ft).

The long leasehold interest of the ground and first floor of Block A, Unit 1, totalling 142 sq m (1,524 sq ft) was sold in September 2022 at a figure of £200,000 equating to a capital value of £1,408 per sq m (£131 per sq ft). Therefore, this demonstrates that the investment value is underpinned by the vacant possession value.

The property provides some of the most modern office accommodation in Ludlow with the majority of the supply comprising small offices above retail units in the town centre.

1. An opportunity to acquire a virtual freehold office investment;

2. The property is situated in an established commercial location on an Eco Park;

3. The property is let to established tenants;

4. 79% of the income is secured against Premier Medical, wholly owned by Kuro Health (Net Assets £19.5m);

5. Unit 3 has been let on a new lease from March 2021;

6. Low passing rents;

7. The investment value is underpinned by the vacant possession value;

8. A purchase at the asking price reflects an attractive net initial yield and capital value.

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