Stratford-upon-Avon is a historic market town located in the heart of the country, approximately 19 miles south of Coventry, 32 miles south east of Birmingham, 31 miles north east of Cheltenham, 41 miles north west of Oxford and 98 miles north west of London.
Famous globally as the birthplace of William Shakespeare, who remains a major draw (even 400 years after his death), tourism is important to the town's economy, with almost 5 million visitors to the district each year (compared with a resident urban population of approximately 26,400 people). The town also attracts workers, with net in-commuting of 12,500 people a day. In addition to tourism-related businesses, office-based employment is significantly higher than the national average; of note, NFU Mutual is headquartered in the town.
Strategically located in the centre of the country, Stratford-upon-Avon has excellent communications. The M40 motorway (between London and Birmingham) runs to the north/east of the town, with access to Junction 15 via the A46, a south west-north east arterial route that also provides access to Coventry and Cheltenham. Stratford-upon-Avon has a railway station, which is served by London Midland trains to Birmingham, with an approximate journey time of 50 minutes to Birmingham Moor Street, and by Chiltern Railways trains to London Marylebone via Warwick/Leamington Spa, with an approximate journey time of 125 minutes. Birmingham International Airport, which handled 11.6 million passengers flying to 143 destinations in 2016, is located approximately 27 miles to the north of the town, with access via the A46, M40 and M42.
Elm Court is a courtyard office scheme, of which Units 1-8 form the first phase constructed in 1990/1991 on the site of a former engineering works. The subject property comprises two predominantly 3-storey terraces, each originally containing four units, with Units 5-8 fronting Arden Street and Units 1-4 at the rear, on the other side of a central car park.
The buildings, which are believed to be of steel frame construction, have masonry elevations, sash-style windows with a mixture of single- and double-glazing and tile-clad pitched roofs. The office units are generally split vertically, each with its own entrance and services, but Units 2-4 Kings House were reconfigured in 2012 to split horizontally from a single entrance/core, providing larger floorplates. The general specification of the office accommodation includes: solid floors; perimeter power/data trunking; central heating with perimeter radiators; retro-fitted air conditioning units in a number of units; suspended ceilings with mineral fibre tiles; and inset lights. Kings House has a lift.
There is a landscaped block-paved car park between the two terraces, which also extends below Units 5-7 because Arden Street is at a higher level. The primary entrance to the car park, and rear terrace, is from/to Arden Street, with an archway and ramp under Unit 8; there is an external lift between the undercroft car park and ground floor level of Unit 8. The access road continues past Unit 1, and between 10 Elm Court and 11 Elm Court (both in separate ownership), to a second entrance on Birmingham Road.
The different buildings have separate energy performance ratings, generally of C; the individual ratings and scores are set out in the accommodation schedule below, while the Energy Performance Certificates (EPCs) and Recommendations Reports are available on request.
The property is held freehold, with separate titles for the main property and roadway.
The owners and occupiers of 10 Elm Court and 11 Elm Court have a right to use the access road, shown shaded blue on the site plan, contributing to the costs.
The property is 79% let to five tenants on six leases, as set out in the tenancy schedule available via the link below. The rental income is £203,801.30 per annum exclusive, with all tenants paying quarterly in advance on the modern quarter days (1st January, 1st April, 1st July and 1st October).
The vendor proposes to provide a guarantee to cover the rent (at £54,200 per annum exclusive), Business Rates and service charge for Unit 1 for a maximum of 18 months, resulting in an income of £258,001.30 per annum exclusive.
Svenska Handelsbanken AB (publ) - 13% of rental income
Handelsbanken is a full-service bank for both private and corporate customers. Founded in 1871, it has more than 800 branches in its six home markets of Sweden, Denmark, Norway, Finland, Holland and the UK, while it has operations in more than 20 countries. In the UK, the bank has 207 branches and an asset management operation, undertaking approximately two-thirds of its business with corporate customers, and accounting for 11% of global turnover.
Zinc Group Limited - 26% of rental income
Zinc Group is a credit control, recoveries management and business process outsourcing company, working in the banking & finance, utilities, insurance and telecoms sectors. Founded in 2008, it is headquartered at the subject property and has another office in Glasgow.
Lodders Solicitors LLP - 39% of rental income
Lodders is a regional law firm, headquartered in Stratford-upon-Avon (in the adjacent 10 Elm Court) and with offices in Henley-in-Arden, Birmingham and Cheltenham. Founded 230 years ago, the firm has 25 partners and 110 staff.
Burgis & Bullock - 10% of rental income
Burgis & Bullock is a regional firm of chartered accountants and business advisors, headquartered in Leamington Spa and with offices in Stratford-upon-Avon, Nuneaton, Rugby, Leicester and London. Founded in 1888, the firm has some 70 staff.
Further information can be found in the link below.
The property is elected to tax for VAT but it is anticipated that the transaction will be treated as a Transfer of Going Concern (TOGC) if the required conditions are met.
We are instructed to invite offers in excess of £2,555,000 (Two Million, Five Hundred and Fifty-Five Thousand Pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 9.5%, having deducted purchaser's costs of 6.39%, or £121 per sq ft Capital Value.