The Story So Far

THE COPELAND BUILDING BATH ROAD THATCHAM BERKSHIRE

The Property  This is a modern single storey industrial building of just over 3,250 sqm/35,000 sqft, fronting A4 Bath Road about 4 miles to the east of Newbury. It has particularly good road links to the M4, being almost equidistant from Junction 13 at Newbury and Junction 12 at Theale. It has an eaves height of 6 m/20 ft with comfort cooled offices and was let at only 60 per sqm/5.60 per sqft when we bought it. We thought the figure was low for the location.

The building was let to Royal Dutch Sphinx of Holland and underlet to Copeland Corporation of America. Copeland vacated in Spring 2006.

Why Buy?  A good quality single storey industrial building, with a large amount of external area, fronting a busy main road. We thought that there was potential for enhancement in both rental and capital values via alternative uses which could make better use of the frontage to the A4 trunk road, such as a trade counter, builders merchant, commercial vehicle showroom and similar. We were right but could not possibly have conceived the end use. A training centre.

Royal Dutch Sphinx and Copeland paid 450,000 to be released following which Centrica took a new 10 year lease with a break at the 5th year at 72.50 per sqm/6.75 per sqft. Centrica obtained planning permission to use the building as a British Gas training centre and spent over 1 million on the fit out.

Why sell? We felt that we had extracted most, if not all, of the growth in rental value as a result of the letting to Centrica. We were conscious that Centrica had a break at the 5th year, although believed that they were very unlikely to break having just spent so much money on the building. However, lease length was at its longest and yields were, at the time, about as compressed as they could be and we sold to Credit Suisse at a sub 6% net initial yield.

Please click on the image below to enlarge.

Thatcham   Thatcham
     
From air conditioning gas to
British Gas
   

Contact Us

10 Knaresborough Place
Kensington
London SW5 0TG

Ivor A French FRICS
T 020 7244 4202
M 078 9999 1111
Email Ivor

David Coleman MRICS
T 020 7244 4214
M 079 5696 6677
Email David