3 St Kenelm Court, Steel Park Road, Halesowen, B62 8HD

Freehold office investment opportunity

Property details

Type Investment, Office
Price Offers over £235,000
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Features
  • Income producing investment opportunity
  • Modern two storey mid terrace business park office unit on an established park
  • Let to long term tenant at passing rent of £16,500 per annum
  • Ground floor sold off on long lease
  • Allocated car parking
  • Freehold, offers over £235,000 – equating to a net initial yield of 6.85% (after costs)
Location
St Kenelm Court is part of the wider Coombswood Business Park which lies just to the north of the town centre. Coombswood is a 40 acre business park developed by St Modwen and comprises distribution, manufacturing and office accommodation. It is divided by the Dudley No 2 Canal to form Coombswood East (approx. 25 acres) and Coombswood West (approx. 15 acres). The property is situated on Coombswood West and is accessed from Steelpark Road which links directly onto the A4099.
Description

St Kenelm Court is a 2006 built office development of four self contained office units arranged in an “L” shaped terrace. The property comprises a modern, two storey office building, of which the ground floor has been sold off on a 999 year lease. The offices have solid floor construction, perimeter trunking and have suspended ceilings and recessed lighting. The building has a gas fired heating system with radiators throughout. There are 6 on site car parking spaces allocated to 3 St Kenelm Court.

Accommodation
As below:
Price
Offers in excess of £235,000 are sought for the Freehold interest . A purchase at this level reflects a net initial yield of 6.85%, after standard purchasers costs of 2.52%.
Tenancy
The first floor is let to Sure Maintenance Ltd (who have been in occupation since 2006 years) on a renewed lease from 16/10/2019 to 15/10/2025 at a passing rent of £16,500 per annum.

The ground floor has been sold off on a long lease for a term of 999 years from 2020, at a peppercorn rent.

Tenant Profile
Sure Maintenance Ltd are a national gas, mechanical, electrical and property maintenance contractor. Established over 45 years ago they provide maintenance services to over 160,000 homes and businesses across the UK. Sure Maintenance have regional offices in Manchester, London, Halesowen.
VAT
The property has been elected for VAT, however, it is intended that the property will be sold as a TOGC.
EPC
The property has an EPC rating of C.
Legal Costs
Each party is to be responsible for their own legal costs that may be incurred in this transaction.
Anti Money Laundering
In accordance with Anti-money laundering regulations, two forms of identity and confirmation of the source of funding will be required from the successful purchaser.