Private client of dohertybaines sells Huntingdon distribution facility to Aberdeen Property Investors for £4.1 million (UK)

A private investment client of dohertybaines has sold a state-of-the-art production and distribution facility in Huntingdon, Cambridgeshire to Aberdeen Property Investors. Unit C, The Interchange Industrial Estate, located on Latham Road in Huntingdon, was purchased for £4.1 million (approx. €4.8 million), reflecting a net initial yield of 6.5%.

The approx. 4,500-m² unit is currently let to leading specialist meat-packing business, the Hilton Food Group. The company has 22 years remaining on its lease (12 to the break clause), which includes fixed annual rental increases.

Rob Nelson, Partner at dohertybaines, said: “The property is a modern, high quality unit let to a strong tenant which, combined with guaranteed rental growth provided by annual uplifts, will offer long-term secure income for the purchaser. The price achieved was above expectations and reflected the lack of quality product in that sector on the market at that time.”

dohertybaines instructed on 274/275 Abbeydale Road, Park Royal HA0 1TW

dohertybaines have been instructed by Kingston Estates to dispose of 274/275 Abbeydale Road.

The unit comprises a modern warehouse/industrial unit which has recently been refurbished and benefits from a large secure yard and an eaves height of up to 8.7 m.

The property is available as a whole (60,760 sq ft) or alternatively can be split to provide units from 22,120 sq ft. It is available on a leasehold or freehold basis.

For further information, please contact Michael Haines.

Are you still paying empty rates?

The government handed out more than £1bn in empty property relief last year as clever avoidance tactics employed by the industry started to take their toll.

Figures from the department for Communities and Local Government show the government missed out on £631m of empty property rates in 2009-10. The figures reveal that it awarded £1.1bn in relief last year, a 56% increase on the £487m concession a year earlier. A spokesman for CLG said the rise was due to the government's decision to raise the rate relief threshold temporarily from £2,200 to £15,000. However, the industry has disregarded that claim on the back of the fact that 2010 Valuation Office Agency figures show that the average rateable value of a non-domestic property in England and Wales was £32,200.

A major contributor to the rise in relief was the industry's use of tactics to avoid paying the tax. These tactics included intermittent occupation, whereby a tenant occupies a building for six weeks, enabling a six-month, rate-free period. If the occupier can make some use of the building for six weeks, they can claim a fresh rate-free period. There is no end to the number of times that can happen. A whole industry has sprung up around what they call the 42-day rule - more and more companies are saying we will occupy your building for just 42 days and then take a part of the saving that the landlord will achieve from the empty rate relief.

Between 2005 and 2008, empty property rate relief cost Whitehall roughly £1.3bn pa. Ministers then scrapped the relief, which cost the property industry £800m.

However, these latest figures show that the government is back to handing out near pre recession levels of relief.

Don’t miss out on your opportunity to avoid this tax, speak to dohertybaines today on how this can be avoided. dohertybaines are working with a number of occupiers who will occupy your premises and make use of the 42-day rule. Giving you up to 6 months empty rates relief on vacation.


For further information, contact Fiona Kelly.

Scotland expected to follow England in empty rates legislation

In Scotland the proposals for a “Tesco Tax” or an additional levy on large food stores and retail was kicked out by the Scottish Parliament last week. This left the Scottish Finance Secretary with a shortfall of circa £30 million in next year’s budget. The bad news is he is now considering “harmonising” with England and from next April Scotland will follow England and adopt the same empty property provisions. This will see empty rates relief on office and retail increase from the 50% rates currently payable to 100% and industrial property increase from 0% payable to 100%.

This is something that we have been expecting and if you have empty property in Scotland you should be preparing for the increase. Please call me if you would like information on your rates liabilities in Scotland.

Fiona Kelly
fkelly@dohertybaines.com

Compass West

dohertybaines have let Unit 11 Compass West, London N17 to Polbake Ltd, who are moving from East London to take advantage of the good access to the City and West End, that Edmonton provides.

This was the final unit in the estate that remained vacant, and now dohertybaines have let 3 units in the past 6 months on the estate: Units 11, 12 and 14.

This success followed hard on the heels of a further two lettings in the area on the Mowlem Trading Estate in December 2010.

For further information, please contact Paul Londra.

UK Broadband Telecoms Sites

Those of you who used to have UK Broadband installations on your rooftops will be aware that they decommissioned virtually all of their sites last year. I have just heard from them that perceived demand for mobile broadband and government support for such initiatives has enabled them to get new financial backing. They are now planning a new rollout.

The numbers are around 200 in London initially, followed by Birmingham and nationwide. The equipment is being redesigned but probably will consist of a small equipment cabinet and a couple of panel antennas. This is all still at its early stages but I expect they will go back their former landlords and seek rights for new installations. You may be hearing from them again later this year and my colleagues and I will be happy to help if you wish.

John Woodhouse
jwoodhouse@dohertybaines.com

dohertybaines will be hosting events at MIPIM 2011

dohertybaines will be attending MIPIM this year from 8th to 11th March 2011 and will be hosting a series of events including lunches and dinners on board the MY Five Fishes. Investors, developers and corporate occupiers are all welcome. We will also be co- hosting a party with Citygrove, on 10th March. This years theme is “The Boat That Rocks” with live music by The Fabba Girls.

Please let us know if you are attending MIPIM this year and we will be delighted to arrange a time to meet.

Nigel Doherty
ndoherty@dohertybaines.com

Now Fully Let The Chase Centre, Chase Road, Park Royal, NW10 6QD

Acting on behalf of LaSalle Investment Management, dohertybaines are pleased to announce that following the letting of Unit 3 The Chase Centre is now fully occupied.

Radiocoms Systems Limited have taken a 10 year lease on the property which is 3,790 sq ft.

For further information, please contact Michael Haines.

Newcastle Upon Tyne

dohertybaines, acting for clients who hold a head leasehold interest in the property, agreed terms with the occupational tenants to remove a break option in return for 3 months rent free. It was further agreed that the rent free allowance would be spent on repairing the property, thus reducing both parties’ terminal dilapidation liabilities.

The removal of the break has resulted in a reduction in the clients holding costs by over £160,000.

Graham Pepper commented ‘We, at dohertybaines, explore all asset management opportunities within the portfolios we manage. We are aware of the importance of reducing our clients holding costs, particularly in the current economic climate.’

New letting in Wycombe

dohertybaines have successfully sublet Unit 4 Sunters End Sands Industrial Estate, High Wycombe to local occupier Origin Frames for the remainder of their clients lease, expiring in 2014. This is despite competition from other available premises nearby who were offering large incentives.

The 12,117 sq ft unit previously had an occupier but they had gone into administration and as a result, our clients had to seek a subtenant to reduce their liabilities.

Unfortunately the situation described above is becoming more and more common. However, occupiers in this scenario should still seek to look at all options - one of which may be to sublet/assign their interests to reduce their outgoings (and may now include business rates) and not just pay the rent without thought.

If you require any further information on the above, please contact Paul Londra at dohertybaines.