Lateral was constructed in 2005 to a BREEAM Excellent standard and provides 95,317 sq ft (NIA) of Grade A office accommodation arranged over ground and four upper floors.
The building has an impressive double height entrance/reception and the ground to third floors are arranged over two wings around a centrally located core. The fourth floor is smaller and arranged over a single wing, but all of Lateral's floor plates are flexible and can be easily and efficiently divided, providing excellent potential for multiple occupancy.
Lateral was constructed to the following specification:
Lateral is held freehold under title number WYK737393 as delineated on the plan.
The property is let by way of two co-terminus leases expiring 28 September 2021 as summarised below and provides an unexpired lease term of circa 4.0 years.
The leases are drawn on effective fully repairing and insuring terms and the rent equates to a rate of only £19.13 psf, assuming an allocation of £1,750 per car parking space. The current rents were agreed on a net effective basis at the 2016 rent reviews, proving that the building is reversionary on a headline basis.
Both leases were originally granted to The Secretary of State for Communities & Local Government, but the lease over the third and fourth floors was transferred to Highways England Company Limited (Company No: 9346363) in April 2015 by way of a transfer scheme made by the Secretary of State under section 15 of the Infrastructure Act 2015. The Secretary of State for Communities & Local Government provides an undoubted government tenant covenant. Highways England Company Limited is a wholly owned Government company which looks after the operation and maintenance of England's national motorway and major A road network. This includes modernising and maintaining the highways and the management (and prevention) of incidents on England's motorways through the Traffic Officer service. Further information on Highways England Company Limited can be found at www.gov.uk/government/organisations/highways-england/about
The property is subject to an option to tax and VAT will therefore be payable upon the purchase price. However, it is anticipated that the sale can be treated as the transfer of a going concern (TOGC).
We are instructed to seek offers in excess of £24,740,000 (Twenty-Four Million, Seven Hundred and Forty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 7.75% assuming purchaser's costs of 6.67%, and a low capital value of £260 per sq ft.