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500 Capability Green 77,723 SF 100% Leased Office Building Luton LU1 3LU $39,785,314 ($511.89/SF) 7.50% Cap Rate
Investment Highlights
- A leading business park on the M1 corridor and home to major occupiers such as Astra Zeneca, Ernst & Young, Leonardo and Regus.
- Direct access to J10a of the M1 Motorway provides excellent regional connectivity.
- The building provides immediate access to London Luton Airport, just 1.5 miles away.
Executive Summary
An opportunity to acquire a prime office investment pre-let to an occupier who boasts group revenue in excess of €20bn.
The building is scheduled to undergo a substantial refurbishment to provide a Grade A office fully repositioned for the future. The building extends over ground and two upper floors with a full height central atrium entrance.
Originally built in 1989, the building commands a strong position on the park, close to the amenity offering, and boasts 416 car parking spaces reflecting a superb ratio of 1:191 sq. ft.
TUI Travel Limited have signed an agreement for lease to commence once the refurbishment has completed. This FR&I lease is for a term of 15 years with a fixed rental uplift at the end of year 5 (equivalent to 2% pa compounded growth) and an Open Market Rent Review after year 10. This agreement was based upon the IPMS-3 floor areas with 50% of the reception area rentalised.
Offers sought in the region of £29,095,000, subject to contract and exclusive of VAT on either:
1. a forward commitment to purchase the investment upon practical completion of the refurbishment works.
2. a full forward funding basis.
A purchase at this level reflects a net initial yield of 7.50% increasing to 8.41% by way of a fixed rental uplift in 5 years’ time.
Yields are quoted net of purchaser’s costs at 6.8% although we envisage savings can be achieved via an appropriate funding structure.
The building is scheduled to undergo a substantial refurbishment to provide a Grade A office fully repositioned for the future. The building extends over ground and two upper floors with a full height central atrium entrance.
Originally built in 1989, the building commands a strong position on the park, close to the amenity offering, and boasts 416 car parking spaces reflecting a superb ratio of 1:191 sq. ft.
TUI Travel Limited have signed an agreement for lease to commence once the refurbishment has completed. This FR&I lease is for a term of 15 years with a fixed rental uplift at the end of year 5 (equivalent to 2% pa compounded growth) and an Open Market Rent Review after year 10. This agreement was based upon the IPMS-3 floor areas with 50% of the reception area rentalised.
Offers sought in the region of £29,095,000, subject to contract and exclusive of VAT on either:
1. a forward commitment to purchase the investment upon practical completion of the refurbishment works.
2. a full forward funding basis.
A purchase at this level reflects a net initial yield of 7.50% increasing to 8.41% by way of a fixed rental uplift in 5 years’ time.
Yields are quoted net of purchaser’s costs at 6.8% although we envisage savings can be achieved via an appropriate funding structure.
Property Facts
Sale Type
Investment
Property Type
Office
Tenure
Freehold
Building Size
77,723 SF
Building Class
B
Year Built/Renovated
1989/2024
Price
$39,785,314
Price Per SF
$511.89
Cap Rate
7.50%
NOI
$2,983,899
Percent Leased
100%
Tenancy
Multiple
Building Height
3 Stories
Typical Floor Size
26,082 SF
Building FAR
2.37
Lot Size
0.75 AC
Parking
378 Spaces (4.83 Spaces per 1,000 SF Leased)
Amenities
- 24 Hour Access
- Food Service
- Security System
- Signage
- Kitchen
- Reception
- Storage Space
- Central Heating
- Demised WC facilities
- Direct Elevator Exposure
- Natural Light
- Open-Plan
- Partitioned Offices
- Secure Storage
- Shower Facilities
- Wi-Fi
- Air Conditioning
- Smoke Detector
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500 Capability Green
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