In uncertain and turbulent times good news can pass un-noticed. For Caxtons Chartered Surveyors, business is busy and has somewhat bucked the doom laden trend with success across both the commercial property management and investment sectors.
Hummerstone and Hawkins:
Recently, new business came from long-established professional commercial agent Hummerstone and Hawkins of Welling. Caxtons has taken on the commercial property management for their clients.
This new portfolio includes 16 clients with 65 commercial tenancies; 2 oasts; numerous ground rents and one residential block in Herne Bay. The residential property comprises 13-flats over three floors, some of which benefit from sea views.
Sidcup:
Following the acquisition of an office investment in August of this year by existing client BexleyCo, Caxtons was pleased to have been appointed as Asset Manager on their behalf.
Sargasso is a modern high spec office on Five Arches Business Park in Sidcup Kent just five miles from the M25/M20 with direct rail links to Charing Cross and Cannon Street.
The 15,837 sq ft office was built in 2006, refurbished in 2016 and is fully let to two tenants – Facilicom Cleaning Services Limited and Sun Chemical Limited – who occupy the entire building.
The property is a great addition to BexleyCo’s growing portfolio and will provide a steady income stream for the investor, as well as attractive potential asset management opportunities for the future, which Caxtons looks forward to assisting their client realise.
Buckingham:
Caxtons recently negotiated the freehold acquisition on behalf of client GDRE Investments of a purpose-built 4,500 sq ft unit with 15 parking spaces.
Located on a main route into the centre of the thriving town of Buckingham close to the other major conurbations of Oxford, Northampton and Milton Keynes. The property is currently let to Sainsbury’s as a convenience store and has 10-years remaining on a 15-year lease.
Rental income on purchase was £77,000, rising to £86,285 in June ’19. and the asking reflected an initial yield of 5.5%.
Bought for £1.576m, this realises an actual initial net yield of 5.16%.
Southampton:
A purchase made during the summer and on behalf of GDRE Investments was the freehold interest in a property, previously owned by Surplus Property Investments Ltd of Glasgow.
Situated in a busy area of the city, Stonegate Pub Company plc is the tenant of 103-105 Above Bar Street in Southampton, and operate a Slug and Lettuce, promoting a ‘friendly restaurant atmosphere at our busy bar!’ from the premises. Their lease does not end until 2032, but has a mutual break clause in 2024.
Currently, rental income is £110,000 per annum and the purchase price was £1.45m.
Tolworth, Kingston-upon-Thames:
In Tolworth, south west London, Caxtons identified an investment opportunity for GDRE Investments in a prominently located new build development.
11 miles from central London, Tolworth is a designated regeneration area with plans for residential, grade A office and new retail units, providing some 5,000 new jobs.
The acquisition comprises 3 ground-floor retail units with demised parking, as well as 50 residential 1 and 2 bed flats, sold on long leases. Caxtons Block Management department in Gravesend has been appointed to manage the residential flats. Two retail units are freehold, one is sold, on a 999-year lease. Retail tenants are HSL (Chairs) and Sainsbury’s and their leases had 15 and 10 years respectively at sale.
Offers in excess of £2.5m were being sought for the freehold interest. Caxtons secured the property for £2.35m, reflecting a yield of 8.28% per annum.
