Chatham is located in the Medway unitary authority in North Kent and sits 30 miles south east of central London, 24 miles west of Canterbury and 8 miles north of Maidstone.
The town benefits from excellent road links and is located 3 miles north of Junction 3 of the M2 Motorway and 5 miles north of Junction 6 of the M20 Motorway. The M20 links to the M25 Motorway at Junctions 3 and 5 and also provides easy access to the Dartford Crossing.
Chatham Train Station provides regular direct services to London Bridge in 42 minutes, to London Victoria in 46 minutes, and to the nearby towns of Rochester and Gillingham, both in under 5 minutes.
The town is positioned with easy access to all major surrounding airports, including London Heathrow (66 miles west), London Gatwick (43 miles south west), London City (30 miles north west) and Stansted (54 miles north).
Further south, the channel ports can be reached in under a 60-minute drive.
Waterside Court provides modern office accommodation constructed in 1998 arranged over ground and two upper floors. The property extends to 48,204 sq ft and is of steel frame construction with a mixture of brick and glass cladding and a pitched slate roof.
The property is used as a call centre for RBS and NatWest, where approximately 500 employees work from site on a daily basis. The property also houses an in-house training facility for new recruits.
The property was built to a high-quality standard and was subject to substantial refurbishment in 2008, to include new carpets, wall coverings and installation of chillers. The tenant has also made further modernisations in 2017 to include a new boiler system and lighting to common parts.
The specification includes:
Long leasehold from National Westminster Properties No. 1 Limited for a term of 150 years (less 15 days) from 24th December 1997, thereby providing an unexpired term of 129 years.
No rent is payable to the landlord under the long lease.
The property is wholly let to NatWest Markets Plc (formerly The Royal Bank of Scotland Plc) until 17 December 2037, therefore providing in excess of 19 years unexpired.
The rent is reviewed on an annual basis on 25 December each year, linked to the UK's Retail Price Index (RPI) in the preceding October, subject to a cap of 3%.
The current passing rent of £1,035,230.15 pa reflects a low passing rent of £21.48 per sq ft overall.
NatWest Markets Plc (formerly known as The Royal Bank of Scotland Plc) is a principal subsidiary of The Royal Bank of Scotland Group Plc. In February 2018, The Group reported significant results with an annual profit of £752m for 2017. Its financial strength is a reflection of the UK Government's majority ownership and control of the business, which stands at 62% (June 2018).
On 29 April 2018, The Royal Bank of Scotland Plc was renamed NatWest Markets Plc, as part of a restructuring by the bank to separate domestic retail banking from investment banking sectors, in line with the UK ringfencing requirements required to be in place by January 2019. NatWest Markets Plc will sit outside of the ring-fencing requirements.
NatWest Markets Plc reported a significant sales turnover of £15.101bn in its 2016 accounts and is rated as investment grade as follows:
Standard & Poors: Long Term Debt - BBB+, Outlook - Positive
Fitch: - Long Term Debt - BBB+, Outlook - Positive
For further information on the above, including latest reports by Standard & Poors and Fitch to support the investment grade covenant rating, please review https://investors.rbs.com/fixed-income-investorscreditratings.aspx.
The tenant has a Dun & Bradstreet rating of 5A 1 (June 2018), representing a net worth of £29.592 billion and a minimum risk of business failure.
We understand that the property has not been elected for VAT.
Offers are sought in excess of £17,630,000 (Seventeen Million, Six Hundred and Thirty Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level would reflect an attractive net initial yield of 5.50%, assuming purchaser's costs of 6.74%, and a capital value of £366 per sq ft.
Based on Oxford Economics' 5 year RPI forecast, at the quoting price this would provide the following running yield profile: