Commercial property
Investment for sale
LONG-LET GROUND RENT INVESTMENT - VACCINE MANUFACTURING & INNOVATION CENTRE - THOMSON AVENUE, HARWELL CAMPUS, DIDCOT, OXFORDSHIRE OX11

Investment for sale
£12,350,000 / NIY 2.75%
Summary

Investment Summary

Rare long-let science park investment opportunity with index linked rental kickers

 

  • Located on the established Harwell Science and Innovation Campus, lying within the Oxbridge Growth Corridor, the Campus covers over 700 acres, (283.28 hectares) encompassing over 500,000 sq ft  (46,452 sq m) of R&D space
  • The Campus is home to over 250 organisations and 6,000 research and development employees benefiting from over £2 billion of scientific infrastructure and a further £500 million of recent research investment
  • Strategically located with excellent road, rail and air communication links, both Birmingham and Bristol can be reached by road in less than 1½ hours
  • Regular trains to London Paddington from Didcot Parkway Mainline Rail Station provide access to the capital in less than 40 minutes
  • The Campus benefits from a formal partnership with the University of Oxford, as well as having exceptional relationships with over 30 Universities
  • £103 million is to be invested into the new Rosalind Franklin Institute alone in the next two years at Harwell, providing 240 scientists linked to 10 major universities a unique centre specialising in research and development into physical sciences, engineering and life sciences
  • Excellent amenity offer including a gym, cafes, a conferencing facility and sports grounds
  • The tenant will enter into a 100 year ground lease benefiting from annual RPI rent reviews (uncapped and upwards only). The lease is contracted outside the security of tenure provisions of the 1954 Landlord & Tenant Act
  • Initial passing rent of £72,500 per gross acre, equating to £362,500 per annum
  • Vaccine Manufacturing and Innovation Centre UK are supported by the University of Oxford, Imperial College and the London School of Hygiene and Tropical Medicine
  • A core part of the UK Government’s national medical security infrastructure
  • Vaccine Manufacturing and Innovation Centre will enter into an agreement to lease to construct a new research, development and manufacturing facility that totals approximately 126,475 sq ft (11,750 sq m) (GIA) situated on 5.00 acres (2.02 hectares)
  • ERV today in excess of £30 psf (c. £3.7m pa) as fitted out as office / lab
  • VP value of the site is worth more than double the day one price, i.e. the ground rent value is approximately 30% - 40% of the VP value
  • Proposal: Our client is seeking offers in total in excess of £12,350,000, for the SPV holding the site, reflecting a net initial yield of 2.75%, assuming purchaser’s costs of 6.71%. This will consist of an initial payment of £3,000,000 on completion of the lease to VMIC and a second payment of the balance on practical completion of the base build. Consideration should be given to SDLT savings
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