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To Let

Southgate House, 449-499 Midsummer Boulevard, Milton Keynes, MK9 3BN

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For Sale

Southgate House, 449-499 Midsummer Boulevard, Milton Keynes, MK9 3BN

Freehold

£9,445,000 / NIY 6.5%

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Property specification

  • Government let Central Milton Keynes office investment
  • Office accommodation totalling approx. 41,646 sq ft (3,869.1 sq m) over 4 floors with 18 car parking spaces
  • The property is entirely let to The Secretary of State for Levelling Up, Housing and Communities for a term expiring 31/03/2028, therefore providing 5.89 years to expiry
  • The next rent review is 01/04/2023
  • 2023 Tenant break clause removed
  • The passing rent is £655,000 per annum (£15.72 per sq ft overall)
  • Prime Grade A rents in Central Milton Keynes at £28.50 per sq ft.
  • Estimated headline rental value as existing £790,000 per annum, equating to £19.00 per sq ft with potential to increase this to a headline rent of £26.00 per sq ft with a full refurbishment
  • Potential to increase massing subject to necessary consents
  • £9,445,000 / NIY 6.5%

Lease terms

Offers are invited in excess of £9,445,000, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 6.5%, an estimated reversionary yield of 7.85%, and an equivalent yield of 7.75%, assuming purchaser's cost of 6.8%. This equates to a capital value of £226 per sq ft

Location

The building is prominently situated in Central Milton Keynes, on the corner of Saxon Gate and Midsummer
Boulevard

Location

The building is prominently situated in Central Milton Keynes, on the corner of Saxon Gate and Midsummer
Boulevard

Train Stations
  • Central Milton Keynes 1.05km
  • Stonebridge 4.02km
  • Bletchley 5.25km
  • Milton Keynes 5.4km

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