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Commercial Viability Report
Broadford Business Park, Shalford, Guildford, Surrey GU4 8EP
July 2017
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CONTENTS: Page
1 Instructions 3
2 Location 3
3 Situation 4
4 Description 5
5 Market Commentary 18
6 New Build Viability 23
7 Refurbishment Viability 24
8 Conclusions 26
9 Standard Conditions and General Assumptions 27
APPENDICES Appendix 1 – Workman LLP Report on Scope of Works and Budget Costings
Appendix 2 - Appraisal for 2 Storey Office Scheme Appendix 3 - Appraisal for 3 Storey Office Scheme
Appendix 4 - Appraisal for Industrial Scheme Appendix 5 – Workman LLP Planned Preventative Maintenance Reports Appendix 6 - Appraisal for Refurbishment
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1. INSTRUCTIONS 1.1. Savills originally prepared this Viability Report as part of the supporting documentation for the
proposed redevelopment of Broadford Business Park, Shalford GU4 8EP for residential purposes in July 2016. Following discussions with Guildford Borough Council we have been asked to update the viability report to reflect the feedback received as part of a pre- application enquiry in November 2016 and also address the Council’s proposed designation of Broadford Business Park as a Locally Significant Employment Site (LSES) as part of its Proposed Submission Local Plan
Despite being allocated in the previous version of the emerging Local Plan, which was consulted on between June and July 2016, as a residential development site capable of delivering 100 new homes, GBC have removed this allocation in the latest version of the PSLP. Instead, the Council propose to designate the Site as a LSES. Paragraph 6.7 of the Briefing Note to GBC’s Borough, Economy and Infrastructure Executive Advisory Board Committee states that the reason for change in the planning policy designation is as follows:
This site was allocated for 100 homes. Since the last iteration of the plan we have reconsidered how we intend to best meet both housing and employment needs. Given the loss of employment sites to housing that has already occurred due to permitted development rights, which is expected to continue, we are concerned at our ability to provide sufficient and varied office floorspace. Broadford is an established business park and, whilst not sequentially preferable, is considered suitable given our inability to identify sufficient sequentially preferable sites. The vast majority of our office floorspace is proposed to be allocated on the extension to the Surrey Research Park – retention of Broadford will help provide a variety and mix of floorspace.
Accordingly, we have been asked to consider the following;
Whether the existing buildings are suitable for refurbishment or whether they have reached the end of their economic life.
Whether redevelopment of the site for employment use is economically viable.
Whether there is a need for this current space within the Borough for employment purposes or whether there are sequentially preferable locations that will enable the Council to continue to satisfy its employment needs without reliance on this site.
1.2. Our opinions expressed in this paper are as at the date of this report in July 2017. The due diligence
enquiries were undertaken by Michael Cole BSc (Hons) MRICS and have been reviewed by Tristram Stericker BSc (Hons) MRICS and Edward James MRICS. We confirm that the aforementioned individuals have sufficient current local knowledge of the local market and the skills and understanding to undertake this exercise competently.
2. LOCATION
2.1. The Property is located in Shalford which forms part of Guildford. Its local government district is the Borough of Guildford. Guildford is a prosperous and affluent Surrey town situated in the London commuter belt.
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2.2. The village is located 2.5 miles south of Guildford, 9 miles south of Woking, 12 miles east of Farnham and 33 miles south west of London. Accessibility to and from the town are good via the A281 and the A3100 which provides a link to Guildford and the A3, approximately 3 miles to the north.
2.3. The A3100 links the town by road to Godalming, Milford and the A3 (London to Portsmouth) to the
south; the A281 links the town to Horsham to the south east. Shalford railway station is served by South West Train services between Guildford and Reigate. From Guildford trains can be caught to London Waterloo with a journey time of around 35 minutes.
3. SITUATION
3.1. The Property is situated to the west of Shalford on the southern side of the A248 (Broadford Road), approximately 300 metres beyond its junction with the A281 (Horsham Road). It is a semi rural location at the south western village boundary.
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3.2. The immediate location is predominantly residential in nature comprising detached housing. There is a substation located in the centre of the site, south of River House. To the west of the site is the River Wey and to the east and south is residential accommodation and Shalford Common.
4. DESCRIPTION
4.1. The Property comprises a purpose built office business park. The site provides accommodation
through 7 separate buildings with 8 separate occupiers. The remainder of the site is laid to hard standing to provide car parking for the office units.
4.2. We have relied on floor areas that have been provided by the owner which are used for the tenancy schedule. We have undertaken our own check measurements where feasibly possible. They are the gross internal floor areas measured in accordance with the RICS Code of Measuring Practice, published in August 2007 (6
th Edition) as updated. We summarise the accommodation as follows;
Building Use Sq ft Sq m
Broadford House Offices 3,120 289.8
Park House Offices 3,717 345.3
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Building Use Sq ft Sq m
Bishopsgate House Offices 22,340 2,075.5
Northfield House Offices 11,387 1,057.9
Southfield House Offices 5,932 551.1
River House Offices 15,324 1,423.6
Wharfside House Offices 15,919 1,478.9
Total Gross Internal Area 77,674 7,222.1
4.3. On the date of inspection, 24th June 2016, the weather was dry and sunny. We were able to gain
access to the majority of the site and the buildings. There were some areas which were locked or we were unable to gain access. We were unable to gain access to the whole of Park House, the first floor of River House and the ground floor or Southfield House. We had restricted access to some areas occupied by Gordon Murray Design Ltd in Wharfside and Wharfside Suites.
4.4. The quality of the units and how they presented themselves varied dependant upon the occupiers and
how well they had looked after the accommodation. However, following discussions with the tenants and from our own observations it was apparent that there were a number of issues with all of the units.
4.5. We have been provided with an updated building condition and costing summary report produced by
Workman LLP in February 2017 we have included a copy at Appendix 1 who manages the site on behalf of Zurich Assurance Ltd. We will discuss this in both this the description section and in the refurbishment viability section (7 p22).
4.6. Broadford House was occupied by Pull Digital at the time of inspection and we were able to gain full
access. The building is of traditional residential construction and is commensurate with its probable former use.
4.7. The tenants have fitted out the offices in a modern fashion in order to try and update what is now an
aged building, not fit for its current purpose. The building is not a traditional office design, having been a residential building initially, and has been adapted to suit the needs of the occupier. Raised floors had been installed to provide patch panels capabilities. The office doesn’t benefit from air conditioning and the windows were all single glaze timber frames, some of which were rotting and in need of replacement.
4.8. The lease is dated 10 April 2013 and is due to expire on 9 April 2018 and is let under FRI terms for 5
years. The tenant had undertaken a Cat B refurbishment to suit their occupational needs. There was no schedule of condition attached to the lease and the anticipated dilapidation works are listed as follows;
Reinstatement from 2013 lease and 2008 lease.
Internal decoration
External repairs
External decoration
Leave M&E in repair
Renew carpets (expressed covenant)
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4.9. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £45,000. The additional anticipated cost to the owner to achieve a benchmark standard and to achieve a long lease with no limitations is anticipated to be zero. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £115,000. The total assumed cost to the owner is anticipated to be £70,400.
4.10. This assumes that the lease is not renewed in 2018 and a limited sum for essential maintenance only is provided.
Broadford House – Front Elevation Cracking
Typical Office Evidence of Timber Frame Deterioration
4.11. Park House is occupied by a division of Surrey Police; we were unable to gain access and could only
view the property externally. The building appears to be of 1970s design and is of concrete frame construction with brick infill and both flat and mansard roof.
4.12. The roof appeared to be in poor condition externally with the bay windows showing signs of deterioration. The windows were powder coated aluminium frames and double glazed. The overflow pipe from the water tank in the roof had caused excessive staining to the wall, but due to access issues we could not ascertain whether this had caused any water issues internally.
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4.13. The lease is dated 19 November 2012 for a term of 5 years and is due to expire on 18 November
2017. The lease is on FRI terms and is inside the Landlord and Tenant Act 1954. No licence had been provided with information regarding tenant alterations for the 2012 or 2006 lease. The tenant had undertaken a basic Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove fixtures and fittings made during 2012 and 2006 lease
Roof repairs
External repairs
External decorations
Internal decorations
Clean stonework
Leave M&E in repair 4.14. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £91,000. The
additional anticipated cost to achieve a benchmark standard is expected to be zero, the additional anticipated capital expenditure to achieve a long lease with no limitations is anticipated to be £182,000. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £142,900. The total assumed cost to the owner is anticipated to be £233,900.
4.15. This assumes the lease is not renewed and a limited sum for essential maintenance only is provided.
Park House - Front Elevation Water Staining 4.16. Bishopsgate House is occupied by Open Bet and we were able to inspect the whole of the building.
The building is now typical of the rest of Broadford Business Park being of steel frame construction with glazed curtain walling and brick infill elevations, built in approximately the late 1980s.
4.17. The roof is of pitched metal profile sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods.
4.18. The internal accommodation has been altered to suit the occupational requirements of the current
tenant with a combination of office and warehouse facilities. The property is capable of being multi let
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with two incoming electrical supplies.
4.19. The day of inspection in June 2016 was after heavy rain and the reception area had become flooded. The ground floor was solid concrete and electrical socket floor to ceiling towers were installed to overcome this issue. There was evidence of wear and tear with carpet coming apart and damaged ceiling tiles. There was also evidence that the roof was failing because there were drip buckets located around the office.
4.20. The whole of the internal finish was very dated. Part of the ground floor was used as a storage area
with a painted non slip floor covering and had roller shutter doors. There was also a back up generator and fuel storage tank located under a brick built car port with pitched tiled roof.
4.21. The original lease is dated 25 August 1986 for a term of 25 years, there was a licence to assign dated
1 December 2010. A reversionary lease dated 7 August 2009 for a term of 15 years was granted commencing on 29 September 2011, a break was agreed at 28 September 2022 and expiry is due to fall on 29 September 2026. The lease is under FRI terms however it is limited by a schedule of condition and there are further limitations to repairs to the curtain walling and glazing reinstatement. There is a Deed of Variation which passed liability for the repair and maintenance of the glazed cladding system including the angled roof glazing and associated fixings to the Landlord as an irrecoverable cost.
4.22. Limiting factors to the anticipated dilapidation works are that there is no obligation to repair glazed
systems or roofs. There is no obligation to remove alterations from this or the previous lease. There is no obligation to decorate internally if affected externally by the defective curtain walling. There is no obligation to replace carpets.
4.23. The anticipated dilapidations works to comply with the lease are very limited and as such the
anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £42,000. The additional anticipated cost to achieve a benchmark standard is expected to be £1,000,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is anticipated to be £182,000. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £48,000. The total assumed cost to the owner is anticipated to be £1,671,000.
Front Elevation Backup Generator – Car Port
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Damaged Ceiling Tiles Damaged Carpets 4.24. Northfield House was occupied by Gordon Murray Design Limited (GMD) on the Ground Floor and
DPA on the first floor. The building is of steel frame construction and built in the late 1980s. The roof is of pitched metal profile sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods. Due to the sensitive nature of GMD’s work we were not allowed full access to the ground floor.
4.25. From the limited inspection of the ground floor of the building it would appear the building does not meet modern office standards without any patch panelling and dated facilities. The building comprises a single storey warehouse that has been converted to part office to suit the occupational requirement of the tenant. The internal demise has been configured to provide some office working but more geared towards a workshop. Additional staff welfare has been added as have design labs.
4.26. The first floor was occupied by DPA and has a modern fit out to make full use of the buildings ability to
provide an open plan environment. We were made aware from the current tenant that there had been water ingress from the ceilings during the previous heavy rain. The tenant said some works had been undertaken to patch the leaks however it had not been successful. The dividing wall has also had a section removed to link the first floor of Northfield and Southfield House.
4.27. For the ground floor the original lease is dated 8 October 2013 with expiry on 24 March 2017, we
assume Gordon Murray Design are currently holding over and no new lease has been agreed although we understand discussions have been taking place. The lease was outside the Landlord and Tenant Act 1954. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and bespoke welfare
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
M&E left in repair
Remove tenant small power
Reinstate window to replace roller shutter door
4.28. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £42,000. The additional anticipated cost to achieve a benchmark standard is expected to be £157,000, the additional
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anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The assumption was made that the lease was to be extended to 2022 and therefore no vacant period had been assumed. The total assumed cost to the owner is anticipated to be £115,000.
4.29. This assumes the letting strategy would be to market the unit in its current configuration as warehouse accommodation with ancillary offices.
4.30. For the first floor the lease is dated 8 October 2014 with expiry on 7 October 2024, the earliest
available break is 7 October 2019. The lease is outside of the Landlord and Tenant Act 1954. The tenant undertook a Cat B refurbishment and the anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
Remove tenant small power
Leave M&E in repair 4.31. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £52,000. The
additional anticipated cost to achieve a benchmark standard is £0 because the benchmark standard was achieved in 2013, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £191,800. The total assumed cost to the owner is anticipated to be £139,800.
4.32. This assumes the lease is broken in 2019 and GMD remains in occupation until 2022 so services
continue.
Northfield and Southfield House – Front Elevation Northfield House – First Floor Office
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Water running down support Ceiling Tile staining
4.33. Southfield House is occupied by Group Chantelle on the ground floor and DPA on the first floor. We were unable to gain access to the ground floor on the day of inspection. The building is of steel frame construction with brick infill and built in the approximately the late 1980s. The roof is of pitched metal profile sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods.
4.34. The first floor is linked through to the first floor of Northfield House. From speaking to the tenant we
understand that there have been issues with the roof leaking. Steps have been taken to fix the problem with some roof repairs having already taken place and more due to be carried out.
4.35. The ground floor letting to Chantelle Lingerie Ltd has a 5 year lease dated 13 November 2012 due to
expire on 12 November 2017. There is no break agreed however there is a service charge cap limited to £17,041 pa. The accommodation has been altered to suit the occupational requirements of the current tenants. The demise comprises several cellular meeting rooms, kitchen and stores. There is also a Licence to Alter dated 13 November 2012 with proposed plans to alter meeting rooms, repositioning AC and general Cat B works. The lease is outside the Landlord and Tenant Act 1954. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Re-carpet
Sundry repairs
Retain existing AC
Remove tenant small power 4.36. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £21,000. The
additional anticipated cost to achieve a benchmark standard is £65,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £141,400. The total assumed cost to the owner is anticipated to be £185,400.
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4.37. This assumes the lease expires in November 2019 and DPA remains in occupation until 2022 so a reduced maintenance cost for the period until 2022 to maintain the building in its current condition.
4.38. The first floor letting to DPA has a 10 year lease dated 8 October 2014 due to expire on 7 October
2017. There earliest break is 7 October 2019. The accommodation has been altered to suit the occupational requirements of the current tenants. The space has been refurbished to a good standard including meeting rooms, full kitchen, wall cladding and varying floor finishes. There is also a Licence to Alter dated 8 October 2014 with a full reinstatement obligation. The lease is outside the Landlord and Tenant Act 1954. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Re-carpet
Sundry repairs
Retain existing AC
Remove tenant small power 4.39. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £24,000. The
additional anticipated cost to achieve a benchmark standard is £72,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £126,200. The total assumed cost to the owner is anticipated to be £78,200.
4.40. This assumes the lease breaks in October 2019 and maintenance and servicing would continue for the
void period but at a reduced level.
Site of water ingress Site of water ingress
4.41. River House is located to the southern end of the site. The ground floor was part occupied by the
Legal Education Foundation and GMD. The first floor Suite 3 is occupied by Criterion Adjusters Ltd. The building is part single storey and part two storey and are of the same design and construction as the majority of the site. The only difference in the construction is that there is a disabled lift installed in the entrance lobby.
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4.42. Raised floors have been installed on the ground floor to offer some semblance of modern office
occupation. All of the buildings of this design have the services located in a separate area located at roof level; all have the benefit of boilers to provide central heating. We did notice however, on our inspection that flat panel electric heaters had been installed in the ground floor in corridors. This would suggest that there may be an issue with the central heating.
4.43. Suite 1 lease for ground floor occupation by GMD has an 8 year 1 month lease outside the Landlord
and Tenant Act 1954 dated 5 February 2009 and an expiry of 27 March 2017. The accommodation has been altered to suit the occupational requirements of the current tenants. They have converted the warehouse facility into various office suites, a new bank of toilets and a staff welfare kitchen/diner. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
Remove tenant small power
Leave M&E in repair 4.44. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £67,000. The
additional anticipated cost to achieve a benchmark standard is £190,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £195,975. The total assumed cost to the owner is anticipated to be £318,975.
4.45. This assumes an extended lease until September 2022 with scope to be determined on office or
warehouse use. It also assumes dilapidations works would be to reinstate to office layout but retain WCs installed by the tenant.
4.46. Suite 2 lease for the ground floor occupation by The Legal Foundation has a lease dated 6 January
2014 for a term of 5 years due to expire on 5 January 2019. The lease is inside the Landlord and Tenant Act 1954. There is a service charge cap in place limiting costs to £24,725 pa. The accommodation has been altered to suit the occupational requirements of the current tenants. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
Remove tenant small power
Leave M&E in repair 4.47. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £40,000. The
additional anticipated cost to achieve a benchmark standard is £100,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £141,400. The total assumed cost to the owner is anticipated to be £201,400.
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4.48. This assumes the lease does not renew at expiry.
4.49. Suite 3 lease for the first floor occupation by Criterion Adjusters Ltd has a lease dated 20 October 2016
for a term 5 years due to expire on 19 October 2021, there is a break clause dated 7 October 2019. We assume the lease is outside of the Landlord and Tenant Act 1954. The lease is inside the Landlord and Tenant Act 1954. The accommodation has been altered to suit the occupational requirements of the current tenants. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
Remove tenant small power
Leave M&E in repair
4.50. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £40,000. The additional anticipated cost to achieve a benchmark standard is £100,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is not applicable because it will be an IRI lease with a service charge for externals and base build services. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £99,600. The total assumed cost to the owner is anticipated to be £159,600.
4.51. This assumes the lease does is broken in 2019, the level of services are reduced after the operation of
the break.
Front elevation of River House Electric Panel Heater
4.52. Wharfside and Wharfside Suites are located at the southern end of the site and adjacent to River
House. At the time of our inspection they were wholly occupied by GMD and due to the sensitive nature of the work undertaken we were not allowed to take photographs. The buildings are of the same steel frame construction dating from the same period with a single storey warehouse section. Located between River House and Wharfside Suites is the electricity substation.
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4.53. Internally the buildings have been fitted out to a good standard however, they still suffer from the tired
construction that plagues all of the buildings on site. There is poor ventilation in parts of the building, in the production area of Wharfside which is double height there were a number of buckets catching drips from the leaking roof.
4.54. The electricity sockets on the ground floor were fitted around the perimeter at points but were not
located in perimeter trunking, which is not suitable for modern office occupation. We were able to gain access to the mechanical plant room at first floor level, the equipment appeared to be dated and suffering from leaking issues. There was also a disabled passenger lift located in the lobby.
4.55. The premises is let wholly to GMD with a lease dated 28 March 2007 for a term of 10 years expiring
on 27 March 2017. GMD is currently holding over, the lease is inside the Landlord and Tenant Act 1954 on an FRI basis. There are two Licences to Alter one dated 5 February 2001 for a Cat B refurbishment by previous tenant, the second is dated 5 February 2009 for air conditioning equipment and acoustic enclosure in the warehouse. The internal accommodation has been altered to suit the occupational requirements of the current tenants. A mix of office and warehouse/workshop facilities. The tenant undertook a Cat B refurbishment to suit their requirements. The anticipated dilapidations works to comply with the lease would be as follows;
Remove partitions and tea points
Rationalise lighting
Redecorate
Replace floor finishes
Sundry repairs
Remove tenant small power and works undertaken in 2009 licence
Leave M&E in repair 4.56. The key issues are the liability for the reinstatement of the previous layout, the removal of fixtures and
fittings and the extent of roof and glazing repairs. 4.57. The anticipated cost to fulfil dilapidations liabilities by the tenant is budgeted to be £386,000. The
additional anticipated cost to achieve a benchmark standard is £433,000, the additional anticipated capital expenditure to achieve a long lease with no limitations is anticipated to be £433,000. The anticipated non recoverable maintenance costs for the vacant period upon lease expiry is estimated to be £0. The total assumed cost to the owner is anticipated to be £480,000.
4.58. This assumes an extended lease until September 2022 with a question over the warehousing area
being converted into office space.
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Waiting Room Electrical and Network sockets
Mechanical Plant Evidence of leaking
4.59. From our inspection it is evident that the buildings are in need of full refurbishment. Although some of the buildings internally presented well, it became apparent from talking to the tenants that these were just the tenant’s decorative improvements. The actual fabric of the building was failing, reaching the end of its economic life, having gone through sporadic repairs and further repairs planned.
4.60. The other point to note is that modern office occupiers are looking for higher specification offices with improved facilities. In order to attract new occupiers, evidence of drip buckets and other visible worn areas should be removed by undertaking a full refurbishment programme.
4.61. The schedule of cost produced by Workman LLP shows that there is a total cost shortfall of £3,701,675
in order bring the buildings into an acceptable level of standard. Due to the limitations of service charge caps, schedules of condition and some of the leases are on Internal Repairing Insuring basis there are shortfalls in the service charge. This has been happing over a prolonged period, especially since the last recession, business have more discerning when it comes to the lease structures they take. Especially considering the age and the fabric of the buildings at Broadford Business Park, tenants do not want to take on the responsibility.
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4.62. A full estimation is yet to be undertaken of the cost to maintain the M&E and we have made allowances for this in our refurbishment viability assessment.
5. MARKET COMMENTARY Market Overview
5.1. Over the last 20 years completion of new office space in Guildford has totalled 1 million sq ft, from 2009 to 2015 the average completion has been 27,000 sq ft per annum. This follows from the previous period of 2004 to 2008 where completions averaged 63,000 sq ft per annum.
5.2. Guildford saw a particularly rapid increase in development during the late 1980s boom, therefore a
large proportion of stock dates from this time including the subject Property. There was also a surge of development in 2000, primarily reflecting the completion of the speculative 166,000 sq ft G3 scheme at Cathedral Hill.
5.3. Excluding these periods Guildford has typically seen low levels of development. There is currently
approximately 52,000 sq ft under construction across the Guildford market. All of this is being built speculatively and is all located in the Town Centre.
5.4. Compared to other office centres Guildford has a relatively small pipeline with 687,000 sq ft planned
which equates to 19% of stock. This includes one scheme over 100,000 sq ft and one scheme between 50 and 100,000 sq ft, by location 8% of this is planned for town centre with 92% out of town.
5.5. South of the town centre there are several business parks of varying sizes. On Portsmouth Road is the
Guildway office scheme which totals 118,000 sq ft across four buildings. Developed in the late 1992 and early 2000s the park provides good parking ratios and modern looking offices compared to Broadford Business Park.
5.6. Another large scheme is Weyside Business Park located on Catteshall Lane and offers
accommodation through 8 separate buildings over two sites. Langham Park is another small business park in Godalming, whilst the remainder of the out of town stock is located at Mill View Park near Milford and the subject Property.
5.7. The trend for any new speculative development has been to build close to good transport links with
access to a large workforce rather than more isolated locations. South of Guildford has now become very congested in the morning due to the poor capability of the roads to handle the rush hour traffic. Occupiers are looking for modern office space either in the centre of Guildford or to the north, east or west where access to the A3 and main line train services is more readily available.
5.8. Woodbridge Park Industrial Estate was identified in the Local Plan 2003 as a site on the edge of centre
bounded by the A325, Woodbridge Road to the east and the River Wey to the west, being suitable for further development. This area is characterised by a mix of light industrial and warehouses, including trade centres. This area was earmarked for a development of light industrial units and planning was approved in 2007. The site is owned by Travis Perkins Limited. This would make a preferable site to intensify the use of.
5.9. Further south of Shalford in Godalming there is still easier access to the A3 either at Compton or
Milford. Catteshall Lane is only a mile from the station and it is on the mainline from London Waterloo to Portsmouth. However, demand for office/industrial space has either fallen for this location or the cost of repairing the existing units has become unviable with the increased demand for residential accommodation in the area.
5.10. Generally the market as a whole has recovered following the economic downturn in 2008 however,
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residential development has been the largest driver in the South of England with commercial development not featuring. This has in part been due to all of the previous speculative development which sat vacant.
5.11. The development over time of Guildford town centre has rendered it attractive for employers, however
the office supply and development is limited due to the historic make up of the town. This has resulted in purpose built office space to be located away from the centre of the town. For example Surrey Research Park, The Astolat Business Park and Guildford Business Park.
5.12. Looking at the adopted and the draft local plan, whilst there are a town centre sites earmarked for redevelopment, these are predominately mixed use proposals which require significant land assembly and detailed masterplanning. As a result the delivery of office space in the town centre would be delivered in the longer term.
Employment Land Needs Assessment 2017
5.13. The Employment Land Needs Assessment has been produced by AECOM, an independent company, to contribute to the evidence base underpinning the proposed submission to the Guildford Borough Local Plan. The intention of the papers is to provide background information, it does not contain any policies, proposals or site allocations. It consists of;
A review of planning policy context;
An assessment of the socio-economic profile of Guildford borough;
An overview of the existing supply of employment land in the borough including an assessment of employment land quality and characteristics;
An analysis of the B-Use class property market; and
A forecast of the future demand for employment floorspace and land over the local plan period.
5.14. In terms of the evidence base to the emerging plan, the Employment Land Needs Assessment 2017 identifies that Guildford’s strategic employment land is typically characterised by town centre and out of town centre employment locations. Whilst much of the Borough’s office space is contained within the town centre, there are significant sites such as Surrey Research Park and Slyfield Industrial Estate.
5.15. In response to The Topic Paper: Employment June 2017, S2 of the emerging plan sets out the requirement to deliver between 36,100m2 and 43,700m2 of office and research and development floorspace over the emerging plan period which is expected to be delivered in established employment areas and newly allocated employment sites, including the expansion of Surrey Research Park under policy A26, which is an out of centre location with high levels of public transport accessibility. The central case of the forecast puts net demand for office floorspace at approximately 39,800 sq m over the period.
5.16. Section 4.16 in the Topic Paper: Employment June 2017 goes on to state that there is approximately
325,200 sq m of gross office/R&D (B1a/b) floorspace in Guildford of which approximately 6.5% is vacant (21,138 sq m). It is forecast that there will be a need for between 36,100 sq m to 43,700 sq m up to 2034.”
5.17. Table 4-3 in the Guildford Borough Employment Land Needs Assessment 2017 shows that planning
permissions have been granted to increase the net quantity of employment floorspace by 33,600 sq m. This comprises 19,052 sq m of office and R&D floorspace, 3,678 sq m of light industry and 10,877 sq m of industrial/storage floorspace.
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5.18. Table 1 in the Topic Paper: Employment 2017 looks at a comparison of the 2013 and 2014 ELA and 2015 and 2017 ELNA. For B1 a and b the assessed need has been reduced from 37,200 sq m - 47,200 sq m in 2015 to 36,100 – 43,700 sq m in 2017. There has also been a reduction in the assumed need for B1 c, B2 and B8 space from 4.7 – 5.3 ha in 2015 to 3.7 – 4.1 ha in 2017.
5.19. If we take the available gross floorspace that, at the time of assessment, was vacant and the total net
floor area of proposed planning permissions this provides a figure of 54,738 sq m as available and future floorspace within Guildford Borough. This is more than enough to cover the assumed increase in demand of B class floorspace the period the Local Plan covers. If this is the case we do not feel there is enough evidence in order to retain Broadford Business Park as a non-strategic employment site.
5.20. According to the Guildford Borough Employment Land Needs Assessment 2017 the occupational
structure of Guildford’s residents only offers a 36% of the population which are designated as administrative, skilled trades, caring, sales, machine operatives and elementary occupations. In the South East this level sits at 52% of the population. This goes to show that most of the employment located on Broadford Business Park would be for people commuting in to Guildford.
5.21. The non-strategic site list and assessment Table 4-2 in the Guildford Borough Employment Land
Needs Assessment 2017 shows that the majority of sites are smaller than 0.5 ha where as Broadford Business Park is 1.5 ha. The only site larger is the Pines Trading Estate which is 1.66 ha and is assessed to have 7,250 sq m of employment space. Broadford is stated as having 9,126 sq m in the same report. This goes to show that the site is already offering a large capacity and further development of the site would not be possible due to the level of parking required for employees.
5.22. The Local Plan states that development should have access to transport interchanges. The Topic
Paper: Employment June 2017 states that there are 5 train stations excluded as a transport interchange because of its locations nature, character and the size of the surrounding village or centre.
5.23. The lack of a suitable transport hub means that employs have to use their own method of transport in
order to access the site. There are bus stops in Shalford however, they are a smaller village service and changes would be need to made at larger interchanges such as Guildford.
5.24. The Enterprise M3 Commercial Property Market Study 2016 which the ELNA 2017 report made
reference to suggests that the reformed commercial property market area incorporates large parts of the borough of Waverley, including the towns of Godalming and Haslemere. Cattleshall Lane is just to the south in Godalming and has greater access to main roads and methods of public transport.
5.25. There is a greater amount of lower grade office and light industrial accommodation located here. There
has already been a number of applications here for change of use to residential and thus a larger more suitable location for cheaper rents offering a variety of stock is losing suitable space. It may be suggested that discussions should be entered in to with Waverley to discuss the loss of these more suitable sites in order to offer a variety of space to both Local Authorities.
5.26. According to the Guildford Borough Employment Land Needs Assessment March 2017 Guildford’s
non-strategic employment sites are smaller than out-of-centre strategic sites. Although non-strategic sites exhibit good quality environment and public realm characteristics a number of these sites suffer from poor access to amenities and facilities.
5.27. The Lambert Smith Hampton Industrial and Logistics Market 2013 report concludes that the current
supply of industrial and storage premises is not meeting existing demand. In addition local property agents identified traffic congestions as an issue for Guildford’s industrial and distributional property market.
5.28. The report also showed that the average rents for industrial and storage between 2009 and 2014
average between £7.50 and £8.00 for second-hand space and £9.00 to £10.00 for prime space. Using
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Costar a commercial property market analysis tool which shows available space and the deals that have been completed we can see that since 2014 the average asking rent for Industrial land is £9.31 and the average achieved rent is £9.64. Although this may seem like some disparity what it goes to show is that uptake for Grade A space is outstripping the lower quality stock.
5.29. The Employment Land Needs Assessment March 2017 goes on to conclude at 7.2.7 and 7.2.8 that
“commercial property market agents and research suggests that currently around 70% of office demand is met in out-of-centre locations and 30% in Town Centres. However, the analysis indicates that in the future, needs could increasingly be met in town centre locations...as they present more sustainably locations and there is evidence of demand for town centre office locations from potential occupiers.”
5.30. ‘A comparison between the supply and demand assessments therefore points towards a requirement
for additional employment land within the borough and the retention of existing sites. The current supply position points towards a requirement for new, large high quality office/R&D and industrial and warehousing stock to accommodate the growth anticipated to arise within the borough. The demand assessment indicates that the majority of demand will arise from out-of-centre office/R&D floorspace requirements, much of which will have to be met through the provision of new employment sites as well as the intensification of employment land at existing locations’.
Permitted Development
5.31. Both the Environmental Land Need Assessment 2017 and the Topic Paper: Employment 2017 talk about the affect that the introduction of permitted development rights had on the available office stock. This was only meant to last for three years but was made permanent in April 2016. When these rights were introduced there was a large flurry of prior approval applications, however we understand that a number of these applications were made but some of them are undeliverable due to the layout of the building.
5.32. With the removal of older office stock, it has had an upwards pressure on both demand for office space
and the rental levels. As a result some buildings which may have received prior approval applications may now be refurbished to take advantage of the higher town centre rental levels. Table 3 in the Topic Paper: Employment 2017 lists the office floorspace which will be lost through permitted development from April 2013 to December 2016.
Status of Planning Application
B1a lost (sq m)
Completed 3,134
Commenced 1,756
Approved 11,352
TOTAL 16,242
Source GBC: January 2017
5.33. What this goes to show is that there has been a large amount of applications, yet after three years only 30% of these applications have been completed or commenced. To completely remove this available floorspace from the land assessment we feel is not a true representation of that which will actually be lost to the market.
5.34. An article 4 direction is a direction under article 4 of the General Permitted Development Order which enables the Secretary of State or the local planning authority to withdraw specified permitted development rights across a defined area. According to the Topic Paper: Employment 2017 Guildford Borough Council is planning to introduce an Article 4 direction into the Town Centre Employment Core and Surrey Research Park to remove permitted development rights for a change of use of a property
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from Class B1(a) office use to Class C3 residential.
Office Quality
5.35. A recent survey undertaken by Savills and the British Council for Offices (BCO) has highlighted what British workers want from their office space in 2016. The main findings can be listed as follows;
The city/town centre is still the most popular place to work, as employees seek proximity to public transport and a wide selection of amenities. This is the case across all age groups.
Half of employees are not satisfied with the cleanliness of their working environment.
Open-plan offices are still the dominant choice of occupiers, but only 45% of respondents were satisfied with the noise levels in their office. It is therefore important to have areas where employees can concentrate on work in a quieter setting.
Employees are seeking greater control of their office. Lighting and temperature are of key importance to employees, and there is increased demand for new technologies that would allow these factors to be controlled at desk level.
Importantly for occupiers, 40% of respondents believe that the office positively impacts on their physical health and 48% believe the office positively impacts on their mental health. These proportions are higher than expected however, for physical health, 30% have the opposite view: 340 of the respondents effectively said the office does them harm.
5.36. From the research and information available to us the majority of vacant space within a 5 mile radius of
Broadford Business Park is within Guildford Town Centre (34 offices) and Godalming Town Centre (9 offices). There is approximately 220,756 sq ft available which is approximately 28% of office stock. The 5 year average for this is 141,617 sq ft or 18% of available stock.
5.37. The majority of the office space to let is older stock that has sat on the market for an average of 8 months because office occupiers want more modern facilities that will keep their staff moral and productivity up.
5.38. Broadford Business Park, although located in Shalford, has poor access to amenities for staff off site.
We have seen in other areas where there has been poor take up of commercial space that owners have developed the site to include a coffee station or other such facilities. In order to do this a higher service charge would need to be levied or increased rent which then removes the possibility of offering the office space at a more affordable rent for occupiers.
Rental Level
5.39. The average rent in the town centre has increased over the past 5 years from £20 per sq ft to £25 per
sq ft this is in part due to the availability of Grade A office accommodation being of limited availability and demand for this space located in the Town Centre with good transport links pushing this level up with top rents achieve reaching £30.50.
5.40. This increase in demand and upwards pressure on rent has persuaded some building owners to refurbish their existing space rather than convert to residential for a quick sale and retain the office space as a long term investment. Market sentiment is for more modern offices located in the Town Centre of Guildford or Godalming with good transport links for staff and deliveries.
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5.41. The Lambert Smith Hampton July 2016 report shows that take up in 2015 in Guildford remained above the 10-year average. In the first quarter of 2016 prime headline rents increased to £34 per sq ft and by the need of the year were due to hit £35 per sq ft. This is in part due to the low supply of office space in Guildford town centre, however there is no analysis of the incentives offered in order to achieve this headline rent. If discounts such as two years rent free are being offered then this is going to have a dramatic affect on the net average rental level.
5.42. The sentiment of the Employment Land Needs Assessment 2017 is to retain more affordable rental
properties for varied uses. However, there needs to be a balance between the quality of the space and the extra charges to the tenant in order to keep the property in a useable condition. With low rental levels on out of town business parks, these are usually characterised by steel frame portal which are cheaper to build and maintain. They can also be utilised further by installing a mezzanine level to provide office space. With these the costs of maintenance are lower and as such a lower more affordable rent can be charged.
5.43. The style of building on Broadford Business Park as discussed is a steel frame building but with glazed
curtain walling and roofing which is fitted out to provide office space. This means the maintenance costs are higher and in order to maintain the quality of the building a higher rental level needs to be achieved.
5.44. We are aware at Tanshire Park located in Elstead which has better access to the A3 and the A31 that
rental levels are hoping to be achieved at £23.50 per sq ft. The offices here provide a better quality offering and conform to the more traditional office business park design compared to Broadford. The average unit size is 1,472 sq ft with the largest measuring 5,684 sq ft and the next largest at 4,337 sq ft.
5.45. The office spaces are larger at Broadford Business Park with the average measuring 6,518 sq ft, this
however discourages a higher rental level on a per sq ft basis especially in these out of town locations. With the quality of the buildings needing increased levels of capital expenditure and the limitations on increasing the service charge the income received does not provide enough to cover the increased expenditure as a viable option especially when the average rental level sits at £12 psf.
6. NEW BUILD VIABILITY 6.1. We have undertaken a number of appraisals looking at possible new scheme developments for both
office and light industrial accommodation. 6.2. We have been provided with an alternative new build office scheme providing accommodation through
6 buildings. One lay out assumes 2 storeys, another 3 storeys and we have assumed a double height single storey light industrial scheme on the same floor plates as the office scheme.
6.3. To establish the average build costs for 2 and 3 storey office accommodation with air conditioning in
Surrey as well as industrial accommodation we used the BCIS that is available to us through the RICS. 6.4. We have assumed market facing rents, looking at comparable schemes and recent out of town lettings
which range from £17 to £21 per sq ft dependant upon location, parking and the facilities. Weyside Park achieved a letting in the second quarter of 2015 at £17psf for 9,300 sq ft. Abbey Mill Business Park in Eashing is in very close proximity to the A3 and provides modern office accommodation achieved a letting of £20 per sq ft on 5,700 sq ft of office space at the end of 2014.
6.5. Investment Sales in Guildford have taken place, the most comparable office sale to that of a new
vacant building not to be converted into residential would be that of buildings 1,000 and 2,000 Cathedral Hill. There was an average unexpired least length of 1.24 years and the sale at £39,000,000 represented a net initial yield of 8.04%. We would expect to see a similar yield to reflect the risk
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attributed to purchasing a new development.
6.6. Within our appraisals we have allowed for letting voids and rent free periods. We have assumed 5 year leases on the site with a renewal because occupiers may wish to assess how the business park suits their needs before tying themselves into longer lease terms.
6.7. The result of the appraisal for the two storey office scheme assuming a 20% developers profit shows a
rounded negative land value of £115,000. This goes to show that a new build office scheme would be an unviable prospect. We have attached a copy of the appraisal at Appendix 2.
6.8. The result of the appraisal for the three storey office scheme assuming a 20% developers profit shows
a rounded negative land value of £380,000. This goes to show a new build office scheme would be an unviable prospect. We have attached a copy of the appraisal at Appendix 3.
6.9. The result of the appraisal for the industrial scheme assuming a 20% developers profit shows a
negative land value of approximately £200,000. This goes to show that a new build industrial scheme would be an unviable prospect. We have attached a copy of the appraisal at Appendix 4.
7. REFURBISHMENT VIABILITY 7.1. Referring to our comments above, a refurbishment programme would need to be undertaken to make
the offices appear desirable in today’s market. Whilst there may be scope to refurbish the facilities at the subject property to bring the office space up to modern standards the cost of this does not appear to be economically viable due to the level of rent currently paid by the tenants which averages at £12per sq ft per annum. Rental levels if kept at the same level may appear cheap but in order to keep the fabric and integrity of the buildings intact an increased service charge could end up putting occupiers off when they could rent better quality offices in better locations at a rent equal to that of the subject property plus the service charge.
7.2. From talking to local commercial agents who have dealt with the refurbishment of offices in and around Guildford, the average cost to improve the current offering to serve the demand costs between £50 - £100 psf. There have been instances where refurbishment costs have cost upwards of £200 psf but this is in much higher value areas. In order to make a refurbishment programme viable the end rental level needs to achieve somewhere in the region of £30 psf.
7.3. We have been provided with planned preventative maintenance reports that have been undertaken by
Workman LLP, who manage the site on behalf of the owners, on behalf of Zurich Assurance Ltd. There are two reports, the Planned Preventative Maintenance Report of River House, Broadford Business Park, Shalford on Behalf of Zurich Assurance Life Ltd (September 2013) and the Planned Preventative Maintenance Report of Northfield and Southfield House, Broadford Business Park, Shalford on Behalf of Zurich Assurance Life Ltd (February 2016) copies of which are included at Appendix 5.
7.4. The River House report highlights that the building is suffering from heavy deterioration of a number of
elements of the fabric and will require ongoing maintenance in order to maintain it in a wind and watertight condition. The most significant costs highlighted by the report were as follows;
The roofs were noted to be in a poor condition and require repair and renewal of the existing roof coverings. The detailing to the roof is awkward and access is limited by various pitches and areas of flat roof; as such the cost of any repairs/replacement has taken into account the difficulties involved to undertake the work.
The windows and curtain walling are in poor condition with deteriorating gaskets, degrading polyester powder coating and individual defective casements.
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Areas of brickwork are in poor condition and heavily marked and dirty. 7.5. The Northfield and Southfield House report highlights that concerns have been raised over the
condition of the external cladding; sealant degradation, glazing film damage, panel corrosion and unfixing. It has also been noted that intermittent water ingress has been occurring specifically around the roof apex.
7.6. The report also makes reference to the mechanical and electrical part of the building and a large budget will be required to replace plant that is reaching the end of its economical life. It could be concluded this will also be the same for all the other buildings on the business park because they were all built in the same period.
7.7. From the break down of costs provided just for maintenance, the service charge increase for River
House averages an additional £6 per sq ft per annum and for Northfield and Southfield House it averages an additional £7 per sq ft per annum. However, the yearly increases dependant upon the nature of the work undertaken range from an additional £3 to £14 per sq ft.
7.8. The costing for full refurbishment could vary depending on the level of work to be undertaken however,
for the purpose of this exercise we have consulted the Build Cost Information Services (BCIS) and we have assumed the cost for refurbishment or conversion is £100psf.
7.9. In order to undertake a full refurbishment the buildings would need to be vacant and according to the
lease summary this would not be able to take place until the leases start to come to an end which doesn’t occur until March 2017. Some of the buildings are let in part and the end of the leases do not align. In order to avoid vacant units the landlord would have to allow the tenant to hold over or offer the space on short lease terms at a vastly discounted rent.
7.10. In the meantime, the maintenance would still need to be undertaken on the buildings in order to keep
the fabric of the building and the M&E functioning.
7.11. We have undertaken an appraisal of the site assuming the buildings will be refurbished and let once the refurbishment programme has taken place. For simplification we have assumed vacant possession of the site, once refurbishment has taken place on a particular building we have assumed void periods for marketing and new leases at £17 per sq ft. We have also allowed for rent free periods, making adjustments according to the size of the unit. A copy of the appraisal is attached at Appendix 6.
7.12. The appraisal indicates that currently the site would be worth only £870,000 to someone who would
wish to undertake the refurbishment work. This level is significantly below where we would expect commercial land values to be, this valuation causes the property to show a capital value of £235,000 per acre and £11 per sq ft which is less than the current rental level.
7.13. In order to provide a land value that we would consider more inline with commercial land values in the
area the rental level would have to be increased beyond the assumed £17 psf in the appraisal. However, the reason for retaining Broadford Business Park in the Local Plan is that it provides more affordable employment space.
7.14. The other factor to acknowledge with this scenario is that there is further risk involved than we have
allowed for. We have made market facing assumptions with regards to lease length and void and rent free periods. However, the site has previously been attractive because of its comparatively low rents. If the site were to go through refurbishment it would push the rental level up to cover costs. This would cause demand for the site to fall lower than it already is.
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7.15. The site will still suffer from the same issues such as poor transport communication links and the offices will not be to a Grade A specification. These factors alone would make the refurbishment programme unviable.
7.16. In order to improve the value of the site to an institutional investor the end rental level would need to be
higher in order to reflect the improvements, however there is no guarantee that if refurbishment work is carried out that any tenants would be secured at a higher level. As such the costs to undertake the work may never be recovered thus impacting on the value of the property with lower returns and reducing the appeal to institutional investors who would be the only purchasers a non-strategic site of this size would appeal to.
8. CONCLUSIONS
8.1. The Property comprises an office business park which is located to the South of Guildford where transport connections are poor and do not make for easy commuter access. Traffic in the mornings queues down both the Portsmouth Road (A3100) and the Horsham Road (A281). The location is no longer considered appropriate for business parks.
8.2. Demand for office accommodation south of Guildford has fallen and this is evident from the number of
office/industrial parks in traditionally commercial centres being converted or demolished to make way for residential accommodation. This is particularly prevalent in Godalming along Catteshall Lane where 5 separate business/industrial parks have been demolished for residential use or planning has been submitted for such action.
8.3. Reports we have seen, undertaken by Workman LLP, highlight that the Mechanical and Electrical
components of the business park are now nearing the end of their life and will be very costly to replace. This will also cause an increase in the service charge to tenants which makes the very low and attractive rent which encourages occupiers to move there no longer a viable option for their business model.
8.4. The office buildings themselves are also in poor condition and are reaching the end of their economic
life being in need of more frequent repair with the majority of the roofs needing work or replacement. The cost to refurbish the existing units would far outweigh the increased return on rental levels.
8.5. The appraisal to ascertain whether a refurbishment programme is viable goes to show that the site has
some value. However, this value is not representative of the true value of the site and no one would sell the site on this basis.
8.6. The appraisals of the new build schemes show that an industrial scheme would be more viable than a
three storey office scheme, the location itself is not suited to heavy goods vehicle activity which inevitably is the case with industrial occupiers. The narrow bridge to the west restricts access to the Portsmouth Road and thus more immediate access to the A3. However, both are still unviable.
8.7. Market trends show that currently speculative office development has been located close to good
transport links with access to a large workforce rather than more isolated locations such as Shalford. Occupiers are looking for modern office space either in the centre of Guildford or to the north, east or west where access to the A3 and main line train services is more readily available.
8.8. Recent surveys and letting activity shows that demand for occupation is located heavily around
transport links for staff and amenities as well as the quality of the office accommodation. Thus take up has been more heavily centred around Guildford town centre with results now showing a 58% town centre to 42% out of town centre share. Previously these levels were at 34% town centre to 66% out of town centre share.
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8.9. Take up trends in Guildford within the last 6 months to the end of the first quarter suggest that demand
in Guildford has been weak recording a fall of 50% from the previous 6 months, with take up on average falling by 18% across the whole of the west M25 area.
8.10. A new build scheme does not offer a viable proposition even when lowering the developer profit down
to 15% which would be unacceptable considering the risk attached to speculative building. For a scheme of this nature we would expect developers to see a larger profit than 20% which would be the industry standard for residential development.
8.11. There is no way of increasing the proposed office floor space in the hope that it will yield a greater
rental level compared to the build cost because the ratio of parking spaces to floor space would fall below the level stipulated by Guildford Borough Council and given the site’s sensitive location on the edge of the village.
8.12. Accordingly we consider that refurbishment of the existing office stock or the redevelopment of the site
with a new office scheme will not offer a viable proposition for developers or investors. If the Property were to be brought to the market in its current form we are of the opinion that demand will be from residential developers.
9. STANDARD CONDITIONS AND GENERAL ASSUMPTIONS
9.1. Our views are based on the information provided to us, which we have relied upon the information provided in formulating our opinions.
9.2. As is customary with market studies, our findings should be regarded as valid for a limited period of time and should be subject to examination at regular intervals. An updated version of this report will be produced upon the availability of further research data, as required.
9.3. Whilst every effort has been made to ensure that the data contained in it is correct, no responsibility
can be taken for omissions or erroneous data provided by a third party or due to information being unavailable or inaccessible during the research period. The estimates and conclusions contained in this report have been conscientiously prepared in the light of our experience in the property market and information that we were able to collect, but their accuracy is in no way guaranteed.
9.4. In accordance with our normal practice, we would state that this report is for general informative
purposes only and does not constitute a formal valuation, appraisal or recommendation. This report is for the stated purposes and for the sole and exclusive use of Zurich Assurance Ltd and any subsidiary company thereof to whom it is addressed and for their professional advisors, plus any person or institution whose identity has been previously communicated in writing to Savills (UK) Ltd as having an interest in the report. The report may not be relied upon by any third party without the express and written authorisation of Savills (UK) Ltd and no responsibility shall be accepted to any such third party whatsoever.
9.5. This report, in whole or part, shall not be used, referred to or included in any published document,
circular, statement or press release without the prior written approval of Savills (UK) Ltd as to the form, content and the context in which such publication shall take place.
Appendix 1
JRB/U162216 March 2017
Report on Scope of Works
and Budget Costings to put Units into a Lettable
Condition
at
Broadford Park
Shalford Surrey
GU4 8EP
for
Zurich Assurance Limited
Broadford Park, Shalford Surrey
JRB/U162216 March 2017
REPORT ON SCOPE OF WORKS AND COSTINGS TO PUT UNITS IN LETTABLE CONDITION
AT
Broadford Park, Shalford Surrey GU4 8EP
CONTENTS
1 INSTRUCTIONS AND INTRODUCTION 1
2 DESCRIPTION 1
3 GENERAL CONDTION 2
4 SCOPE OF WORKS AND BUDGET COSTINGS 3
APPENDICES
Appendix A – Lease Summary Appendix B – Cost Summary
Appendix C – Site Plan Appendix D – Watkins Payne Services Report
Broadford Park, Shalford Surrey
1 JRB/U162216 March 2017
REPORT ON SCOPE OF WORKS AND COSTINGS
TO PUT UNITS IN LETTABLE CONDITION
AT
BROADFORD PARK, SHALFORD SURREY GU4 8EP
1 INSTRUCTIONS AND INTRODUCTION
1.1 In accordance with instructions received from Threadneedle Portfolio Services Limited on behalf of Zurich Assurance Limited on 17 January 2017, we carried out an
inspection of the above Estate in order to review the extent of works required in
order to put the individual units into repair such that these may be in a condition suitable for offering to the short term letting market, as and when the current leases
fall in.
1.2 The standard of repair to achieve this scenario is to be based on the benchmark specification tendered on Northfield House with other rates applied obtained from our
own benchmark data from similar dilapidations and refurbishment projects. Data for
the communal aspects are provided by the estates asset manager.
1.3 You also requested that we consider the scope of works and anticipated Capex cost associated with marketing the units to attract a 10 year tenancy and the impact this
would have in mitigating the requirement for a schedule of condition and securing
the best possible future rental income.
1.4 The inspection was carried out on 23 January 2017, during which time the weather was dry and sunny, with a temperature of - 2 degrees Celsius.
1.5 Steve Milliner of Watkins Payne Partnership attended a walk round of the properties
in order to comment on the mechanical and electrical installations and provide cost
advice to incorporate into the cost summary for the short and long term proposals.
1.6 We understand that the advice is sought for consideration as part of a report being prepared in connection with a planning application for possible redevelopment of the
site.
2 DESCRIPTION
2.1 The Estate comprises 7 properties which form some 11 separate letting demises
occupied by 8 different Tenants, summarised as follows.
Unit Name Tenant Name Lease (FRI/IRI)
Bishopsgate House Open Bet Ltd FRI
Southfield Hse (Ground) Chantelle Lingerie IRI
Southfield Hse (1st Floor) DPA IRI
Northfield Hse (Ground) GMD IRI
Northfield Hse (1st) DPA IRI
River House (1st) Criterion Adjusters Ltd IRI
River House (Ground) Legal Education Fnd IRI
River House (Ground) GMD IRI
Wharfside GMD FRI
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 2
Broadford House Bite CP Ltd FRI
Park House Surrey County Council FRI
2.2 The buildings, with the exception of Broadford and Park House, are largely of the same design and are formed with steel frames, pitched and flat roofs with a
combination of brick, metal profiled cladding and glazed curtain walling to elevations. These buildings offer a combination of office and warehouse accommodation with
associated welfare.
2.3 Broadford House is traditional Victorian property with load bearing masonry walls with
a combination of pitched and flat roof with timber fenestration. Park House originates from the 1970’s with load bearing masonry walls, flat and mansard roofs
and metal crittal windows.
2.3 The general internal arrangements to all of the properties have been altered and
amended in some way from their original configuration to meet the operational requirements of the individual tenants, with former warehouse areas now converted
to offices and additional facilities provided for welfare for example.
2.4 All units are provided with mains electrical intakes, mains water and drainage and a
gas supply. Suitable fire alarms and detection, emergency lighting etc. is provided. The services have been altered and in some cases or updated to meet marketing or
occupational requirements. Full commentary on the existing services arrangement is provided in Appendix D.
2.5 The external areas comprise both concrete / tarmacadam surfacing with brick paviours to car parking. Landscaping is provided to all areas with low maintenance
plantations. A shared access road leads into the estate off the main carriageway.
2.6 All units are currently occupied.
2.7 Limited access was provided to Gordon Murray design due to the nature of their
business.
3 GENERAL CONDTION
3.1 The general condition of the properties varies, but all were found to range between poor and satisfactory condition, with backlog maintenance required (especially to the
FRI buildings) to both internal and external areas including elements of the common grounds. Bishopsgate house currently presents in the worst condition evidenced by
the additional cost per sq.ft required in order to achieve the benchmark standard set.
3.2 Where the properties are multi occupied, the landlord has undertaken planned and
reactive repairs to ensure the communal areas in a satisfactory condition, within the budget constraints of the service charge arrangement.
3.3 The metal profile sheeting and flat roof surfaces to the FRI buildings are in the whole
in poor order evidenced by previous crude repairs and localised internal leaks.
3.4 The curtain walling to the FRI buildings are also in a poor standard of repair,
commensurate with their age, exposure to sunlight and lack of maintenance during term.
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 3
3.5 External grounds and common areas included within the multi tenanted buildings are
generally in a poor to satisfactory condition with planned and reactive maintenance
undertaken as required part of ongoing planned maintenance.
3.6 The condition of the internal accommodation varies between units, with certain tenants having undertaken significant works to meet their occupation requirements.
4 SCOPE OF WORKS AND BUDGET COSTINGS
4.1 In considering the scope of works and associated budget costs to achieve both a
short and long term letting solution at lease expiries, we have been guided in part by a benchmark specification of works carried out in 2013 to Northfield House. This
comprised a strip out of the internal arrangement, new Air Conditioning, Cat A
refurbishment to offices areas and an element of external repairs and decorations. The cost per sq.ft spent on this unit has been applied to the other units as a
comparable guide.
4.2 Where a longer term solution is required we have applied cost data from our internal
data base gathered from experience on other dilapidations and refurbishment projects to provide budget cost data for a more substantial solution to the disrepairs
identified.
4.3 Anticipated non recoverable maintenance costs for the vacant period up to expiry of the longest remaining lease term, assuming the units cannot be re-let once vacant
have been ascertained by our asset manager employed on this estate using cost data
from their service charge information.
4.2 In view of the age, design and construction of the units in their current condition we are advised that these will have only limited interest to the letting market and as a
result any letting will be for a relatively short term with the tenant avoiding any
repairing liability by either having this fully excluded from their covenants or by having the repairing obligation qualified by means of a Schedule of Condition. As a
result the landlord would only carry out the minimum works necessary to (1) put the unit into a wind and watertight condition, (2) present the unit with safe and
operational services, and (3) offer the unit in an internal condition and form which a tenant would be willing to accept suitable for its intended use.
4.3 The outline scope of works and the associated budget costs based on the above criteria are outlined in the Cost Summary included in Appendix B (with a site
identification plan included as Appendix C). A lease summary is included in Appendix C with M&E overview in Appendix D.
4.5 It should be noted that the costs as shown in Appendix B do not allow for any
contingency sum or professional fees. The works do readily lend themselves to preparation of a specification and submission of competitive tenders as the full extent
and nature of the works will not be wholly established until works are commenced on
site.
4.6 It is anticipated therefore that an Outline Schedule of Works would be prepared describing the general intent of the works and a contractor requested to submit costs
on the basis of labour/day rates, and figure for overheads and profit. On the basis
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 4
that the works would then be professionally overseen I would consider a fee of circa
12% of the cost of the works to be reasonable.
4.6 It should be noted that the buildings may include asbestos containing materials. The extent of which is unknown. Before undertaking any works there is a requirement for
a Refurbishment and Demolition asbestos survey to be undertaken under the Control of Asbestos Regulations. There is no cost allowance for undertaking such surveys
within the costs included in Appendix B as the cost would vary considerably if they
are undertaken on individual buildings on an as and when required basis or if collectively on all buildings at once.
4.9 It is clear therefore that there are uncertainties in the budget costs included in the
schedule appended as Appendix A. It would therefore be appropriate to allow a
Contingency Sum in any costs; a figure of 10% is considered to be a reasonable allowance.
4.10 In summary therefor the costs are as follows:-
Individual unit costs as identified in the schedule included in Appendix A Refurbishment and Demolition Asbestos surveys
Contingency (10%) Professional Fees (12%)
Statutory approvals 8% VAT (if not recoverable)
4.11 Given the age and construction of units they are likely to have poor thermal performance. Heat losses through the roof and external walls/windows will be
significant in view of their high thermal transmittance values. This is reflected in the Energy Performance Certificate readings where all units except one are categorised
as D or E. This is at the bottom end of the range (which extends from A+ to G),
However there were 3 EPC’s missing from the data provided.
4.12 Whilst this may not put off a tenant of the type likely to be willing to occupy units of this construction it should be noted that as from April 2018 (as a requirement of the
Energy Act 2011) it will be unlawful to offer a building having an EPC rating of F or G. Unless further substantial expenditure is committed at this time to raise the EPC
Rating to at least an E (should the units where a rating has not been provided fall
into this category), some of the units may become unlettable irrespective of the condition of the units or incentive which may be given to any tenant.
Signed:- …………………………………………… Date: March 2017……………………
Jeff Breen
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 5
Appendix A : Lease Summary
: Quant
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
1 001 Bishopsgate House
Openbet Retail Ltd
Bishopsgate House comprises two storey office block built in the 1980s. The building is of steel framed construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods. Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suite the occupational requirements of the current tenant with a combination of office and warehouse facilities The property is capable of being multi let with 2 incoming electrical supplies. A Standby generator and fuel storage tank is located in car park
20,792 D 5.2 Repair and Decoration 5.2.1 - At all times to repair and to keep the Premises (including any part unbuiit upon) in good and substantial repair and condition 5.2.1.1 Tenant shall not be obliged to keep the Demised Premises in any better state of repair and condition than as at the date of this Lease as evidenced by the photographic schedule of condition annexed to this Lease 5.2.1.2 - At the Termination Date the Tenant shall not be obliged to replace any carpets within the Premises nor to redecorate the Demised Premises but the Tenant shall leave the Demised Premises vacant and completely cleared out and cleaned and vacuumed throughout and generally in a habitable condition with any damaged or water stained ceiling tiles replaced 5.2.3 Decoration In the last six months of the Term provided that decoration shall not be required more than once in any 18 month period 5.3 Alterations and Additions The Tenant shall not be obliged to remove prior to the Termination Date any alterations additions or improvements made to the Premises pursuant to this Lease or pursuant to the Original Lease PROVIDED THAT if and to the extent that the Tenant shall so remove any such alterations additions or improvements then the Tenant forthwith make good any damage caused by such removal to the Landlord's reasonable satisfaction Deed Of Variation 1993 – Waters down external cladding and glazing responsibilities
Original Lease Dated – 25 August 1986 for 25 years Licence to Assign - 01.12.10 Reversionary Lease Dated 07 August 2009 for a term of 15 years commencing on 29 September 2011 Earliest Break Date – 28.09.22 Expiry Date - 28.09.26 FRI (limited by schedule of condition) and further limitations to repairs to curtain walling, glazing and reinstatement. Deed of variation affects the external glazing and roof liabilities which are no longer a tenant responsibility. Inside the 54 Act
Limiting Factors No obligation to repair glazed systems (Curtain Walling, Glazing) or Roofs No obligation to remove alterations from this or the previous lease No obligation to decorate internally of if affected externally by the defective curtain walling No obligation to replace carpets Limited information on M&E but we would assume the base build services would be left in repair (including centralised ventilation supply and extract system) Comfort cooling installed by tenants (possible reuse if in repair) Anticipated Recovery Based on limiting effects of reversionary lease, deed of variation and schedule of condition, the dilapidations liabilities of the tenant are negligible.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
2 002 Southfield House – Grd Floor
Chantelle Lingerie Ltd
Southfield House comprises a two storey, interconnected (at first floor) office block built in the 1980s. The building is of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods. Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal
2,180 D 5.2 Repair 5.2.1 At all times to repair and to keep the Premises (including any part unbuilt upon) in good and substantial repair and condition and to yield up the same at the Termination Date 5.2.3.1 In the last six months before the Termination Date but no more than once in any 12 month period to paint and otherwise treat as the case may be all the inside wood and metal work of the Premises and to paint or paper in a workmanlike manner all walls and ceilings of the Premises usually painted or papered as the case may be such work in re last six months before the Termination Date 5.3 Alterations and additions 5.3.7 Remove any alterations additions or improvements made to the Premises and forthwith make good any damage Licence – 8 Reinstatement to original design
Lease Dated – 13.11.12 Earliest Break Date – n/a Expiry Date - 12.11.17 Licence to Alter – 13.11.12 Proposed plans provided in licence to alter documents detailing meeting rooms, repositioned AC and general CAT B works
The tenant has undertaken a basic Cat B refurbishment to suit their occupational requirements The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Re-carpet � Sundry Repairs � Retain existing AC (leave
in repair) � Remove tenant small
power
Broadford Business Park, Shalford
accommodation has been altered to suit the occupational requirements of the current tenants. The demise comprises several cellular meeting rooms, kitchen and stores.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
3 Southfield House – 1st Floor
DPA Corporate Communications Ltd
Southfield House comprises a two storey, interconnected (with the 1st floor of Northfield House) office block built in the 1980s. The buildings are of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods, Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suit the occupational requirements of the current tenants. The space has been refurbished to a good standard including meeting rooms, full kitchen, wall cladding and varying floor finishes
2,407 D 5.2 Repair 5.2.1 At all times to repair and to keep the Premises in good and substantial repair and condition and to yield up the same at the Termination Date 5.2.3.1 In the fifth year of the Term and In the last six months before the Termination Date to paint and otherwise treat as the case may be all the inside wood and metal work of the Premises usually painted or otherwise treated And to paint or paper in a workmanlike manner all walls and ceilings of the Premises usually painted or papered as the case may be such work in the last six months before the Termination Date 5.3 Alterations and additions 5.3.7 If the Landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises and forthwith make good any damage caused
Lease Dated – 08.10.14 Earliest Break Date – 07.10.19 Expiry Date - 07.10.24 Licence dated 8.10.14 Full reinstatement obligation
The tenant has undertaken a basic Cat B refurbishment to suit their occupational requirements The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Re-carpet � Sundry Repairs � Retain existing AC (leave
in repair) � Remove tenant small
power
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
4 003 Northfield House – Ground Floor
Gordon Murray Design Ltd
This section of Northfield House comprises a single storey warehouse facility that has been converted to part office to suit the occupational requirements of the tenant. The building is of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods, Elevations are formed in a combination of
5239 D 5.2 Repair
5.2.1 At all times to repair and to keep the Premises (including any part unbuilt upon) in good and substantial repair and condition and to yield up the same at the Termination Date Redecorate in final six months of term 5.3 Alterations and Additions
5.3.7 If the Landlord acting reasonably directs and gives notice to the Tenant in writing no later than 3 months before the Termination Date remove any alterations additions or improvements made to the Premises and Forthwith make good any damage
Lease Dated – 08.10.13 Earliest Break Date – n/a Expiry Date - 24.03.17 Licence dated 27 January 2015 Minimum 3 months’ notice required for reinstatement Not within 54 Act – Tenant negotiating new lease
The tenant has undertaken a Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and bespoke welfare
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � M&E left in repair � Remove tenant small
power � Reinstate Window (new
Roller door inserted)
Broadford Business Park, Shalford
brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suit the occupational requirements of the current tenants. The internal demise has been configured to provide some office working, but more geared for a workshop. Additional staff welfare has been added as have design labs
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
5 Northfield House – 1st Floor
DPA Corporate Communications Ltd
Northfield House comprises a two storey, interconnected office block built in the 1980s. The buildings are of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods, Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suit the occupational requirements of the current tenants. The space has been refurbished to a good standard including meeting rooms, full kitchen, wall cladding and varying floor finishes
5239
C 5.2 Repair 5.2.1 At all times to repair and to keep the Premises (including any part unbuilt upon) in good and substantial repair and condition and to yield up the same at the Termination Date 5.3 Alterations and additions 5.3.7 If the Landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises and forthwith make good any damage caused
Lease Dated – 08.10.14 Earliest Break Date – 07.10.19 Expiry Date - 07.10.24
The tenant has undertaken a Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � Remove tenant small
power � Leave Services in repair
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
6 River House – Suite 3 1st Floor
Criterion Adjusters Ltd
River House comprises a part two storey and part single storey office/warehouse block built in the 1980s. The building is of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external
3,442 E 5.2 Repair (a) At all times to repair and to keep the Premises in good and substantial repair and condition and to yield up the same at the Termination Date (i) in the last six months before the Termination Date to paint and otherwise treat as the case may be all the inside wood and metal work of the Premises usually painted or otherwise treated And to paint or paper in a workmanlike manner all walls and ceilings of the Premises usually painted or papered as the
Lease Dated – 20.10.16 Earliest Break Date – 23.09.19 Expiry Date - 19.10.21
The tenant has undertaken a basic Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � Remove tenant small
Broadford Business Park, Shalford
rainwater goods, Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suite the occupational requirements of the current tenants.
case may be such work in the last six months before the Termination Date. 5.3 Alterations and additions (i) remove any alterations additions or improvements made to the Premises and forthwith make good any damage caused 5.17 Yielding up At the end of the Term, the Tenant shall yield up the Premises (but not with trade and other tenant’s fixtures) with vacant possession and in good and substantial repair and condition
power � Leave Services in repair
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
7 River House – Suite 2 Ground Floor
The Legal Education Foundation
River House comprises a part two storey and part single storey office/warehouse block built in the 1980s. The buildings are of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods, Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suite the occupational requirements if the current tenant
3,442 E 5.2 Repair 5.2.1 At all times to repair and to keep the Premises in good and substantial repair and condition and to yield up the same at the Termination Date 5.2.3.1 as often as reasonably necessary and in the last six months before the Termination Date to paint and otherwise treat as the case may be all the inside wood and metal work And to paint or paper in a workmanlike manner all walls and ceilings of the Premises usually painted or papered as the case may be 5.3 Alterations and additions 5.3.7 If the Landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises and forthwith make good any damage
Lease Dated – 06.01.14 Earliest Break Date – n/a Expiry Date - 05.01.19 Inside the 54 Act
The tenant has undertaken a basic Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � Remove tenant small
power � Leave Services in repair
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
8 River House – Suite 1 Grd Flr
Gordon Murray Design Limited
River House comprises a part two storey and part single storey office block built in the 1980s. The buildings are of steel framed construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods, Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows.
6,685 E 5.2 Repair 5.2.1 At all times to repair and to keep the Premises (including any part unbuilt upon) in good and substantial repair and condition 5.3 Alterations and additions 5.3.6 If the landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises and forthwith make good any damaged caused.
Lease Dated – 05.02.09 Earliest Break Date – n/a Expiry Date - 27.03.17 Not within 54 Act – Tenant negotiating new lease
The tenant has undertaken a Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � Remove tenant small
power � Leave Services in repair
Key Issues
� Reinstatement to warehouse?
� Arguably you’d keep as
Broadford Business Park, Shalford
The internal accommodation has been altered to suit the occupational requirements if the current tenants. Converted warehouse facility into various office suites, new bank of toilets and staff welfare kitchen/diner
office although layout is bespoke to tenants
� Determine layout of space when tenants took space – office or warehouse?
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
9 005 Wharfside
Gordon Murray Design Limited
Wharfside comprises a two storey office block built in the 1980s with a single storey warehouse section The building is of steel frame construction with a combination of pitched metal profiled sheet roofs distributing water onto small flat roofs finished with an elastomeric coating where water is discharged to external rainwater goods. Elevations are formed in a combination of brickwork walls and glazed curtain walling with double glazed metal windows. The internal accommodation has been altered to suit the occupational requirements of the current tenants. A mix of office and warehouse/workshop facilities
15,456 TBC 5.2 Repair and condition
5.2.1 At all times to repair and to keep the
Premises (including any part unbuilt upon)
in good and substantial repair and
condition and to yield up the same at the
Termination Date
5.2.3 during the First Decorating Year and
every succeeding third year and in the last
six months of the Term (but not twice in
any one year) to paint with two coats of
good quality paint and otherwise treat
with the good quality materials as the
case may be all the inside wood and metal
work of the Premises usually painted or
otherwise treated
5.3 Alterations and additions
5.3.6 If the Landlord acting reasonably
directs the Tenant in writing on
reasonable prior notice to do so it shall
prior to the Termination Date remove any
alterations additions or improvements
made to the Premises and forthwith make
good any damage caused
Lease Dated – 28.03.07
Earliest Break Date
– n/a
Expiry Date
27.03.17
Inside the 54 Act –
Tenant holding over
Licence to Later
– 5 February 2009 (air
conditioning equipment
and acoustic enclosure
in warehouse)
Licence to Later
– 5th
February 2001 Cat
B Refurbishment by
previous tenant
FRI Lease The tenant has undertaken a Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove partitions and tea points installed during term
� Rationalise lighting � Redecorate � Replace floor finishes � Sundry Repairs � Remove tenant small
power and works undertaken in 2008 licence (inc bespoke AC)
� Leave base build services in repair
Key Issues
� Liability for reinstatement
of previous layout
� Removal of F&F
� Extent of roof and glazing
repairs
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
10 006 Broadford House
Bite CP Limited
Broadford House is of traditional loadbearing masonry construction with pitched roofs covered in slate and clay tiles The elevations are formed in brick with localised rendered sections Windows are timber sash and case The internal accommodation has been altered to suite the occupational requirements of the current tenants
3,120 TBC 5.2 Repair and Decoration
At all times to repair and to keep the Premises (including any part unbuilt upon) in good and substantial repair and condition and to yield up the same at the Termination Date
5.2.3 Decoration
during the last six months of the Term to paint with three coats of good quality paint and otherwise treat with materials of no lesser quality as are used at the date of this Lease as the case may be all the inside wood and metal work of the Premises usually painted or otherwise treated
5.3.6 If the Landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises
5.3 Alterations and Additions
If the Landlord acting reasonably directs the Tenant in writing on reasonable prior notice to do so it shall prior to the Termination Date remove any alterations additions or improvements made to the Premises including those made pursuant to the Original Licence for Alterations and
Lease Dated – 10.04.13 Earliest Break Date – n/a Expiry Date - 18.11.2017
FRI Lease The tenant has undertaken a Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Reinstatement from 2013 lease and from 2008 lease
� Internal Decoration � External Repairs � External Decorations � Leave M&E in repair � Renew carpets (expressed
covenant)
Broadford Business Park, Shalford
any alterations made without the Landlord's consent during the term of the Original Lease and forthwith make good any damage caused by such removal to the Landlord's reasonable satisfaction.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
EPC Lease Overview Lease / Licence
Information
Anticipated Dilapidations Works
11 007 Park House
Surrey County Council
Dating from around the 1970’s, Park House is a three storey building of traditional load bearing masonry construction with flat and mansard roofs weathered with slates and mineral felt overlaid in granite chipping. Part of the ground floor of this property is the original portion of Broadford House. The elevations are formed in brick with Aluminium sash windows The internal accommodation has been altered to suit the occupational requirements of the current tenant. The property is in a dated and tired condition.
3,647 TBC 3.3 To repair Keep the Demised Premises in good and substantial repair and condition 3.4 To redecorate 3.4.1 In the year 2015 and also in the last year of the Term (whether determined by effluxion of time or otherwise) to have professionally prepared and to paint and redecorate and otherwise treat as necessary all external parts of the Demised Premises 3.4.2 In the last year of the Term (whether determined by effluxion of time or otherwise) to have professionally prepared and to paint redecorate or paper of a suitable quality or otherwise treat as the case may be all internal parts of the Demised Premises 3.6 To yield up At the expiration or sooner determination of the Term peaceably and quietly to yield up the Demised Premises together with all additions and improvements made thereto in the meantime If so required by the Landlord to Tenant making good any damage caused thereby
Lease Dated – 19.11.12 Earliest Break Date – n/a Expiry Date - 18.11.17 FRI Lease Inside the 54 Act No licence provided to date with information regarding tenant alterations for 2012 or 2006 lease
FRI Lease The tenant has undertaken a basic Cat B refurbishment to suit their occupational requirements. The anticipated dilapidations works to comply with the lease would be as follows
� Remove F&F made during 2010 lease and 2006 lease
� Roof Repairs � External Repairs � External Decorations � Internal Decorations � Clean Stonework � Leave M&E in Repair
Broadford Business Park, Shalford
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 6
Appendix B : Cost Summary
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Advised Floor Area (Sq.ft)
Lease Information A Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
1 001
Bishopsgate House
Openbet Retail Ltd
Bishopsgate House comprises two storey office block built in the 1980s.
20,792 FRI – Limited by SOC and deed of variation Original Lease Dated – 25 August 1986 for 25 years Licence to Assign - 01.12.10 Reversionary Lease Dated 07 August 2009 for a term of 15 years commencing on 29 September 2011 Earliest Break Date – 28.09.22 (latest break date of all Units) Expiry Date - 28.09.26 Inside the 54 Act
£2 psf = £42k
£50 psf = £1 Million
£32 psf = £665k 6 years repairs of the glazed cladding system (for which landlord is liable) say £48,000.
£1,671,000 Lease has longest Break Option Date A Deed of Variation passed liability for the repair and maintenance of glazed cladding system including the angled roof glazing and associated fixings to the Landlord as an irrecoverable cost.
Ref Unit Tenant Property Description Advised
Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
2 002
Southfield House – Grd Floor
Chantelle Lingerie Ltd
Southfield House comprises a two storey, interconnected (at first floor) office block built in the 1980s.
2,180 Lease Dated – 13.11.12 Earliest Break Date – n/a Expiry Date - 12.11.17 - S/C cap @ £17,041 pa.
£10 psf = £21k £30 psf = £65k
Non Applicable – IRI lease with service charge for externals and base build Services
2017 s/c shortfall £3,200. 2018-2019 void s/c contribution £44,000. 2020-2022 3yrs reduced maintenance / service charge say £30,000 (includes Estate s/c contribution). Insurance inspections £3,000 Insurance £3000 Void Rates £58,200 Total £141,400
£185,400 Assuming Chantelle do not renew but the building continues to run until DPA on the first floor vacate. Reduced maintenance costs for the void period through to 2022 to maintain in current condition.
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease Information A Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
3 Southfield House – 1st Floor
DPA Corporate Communications Ltd
Southfield House comprises a two storey, interconnected (with the 1st floor of Northfield House) office block built in the 1980s.
2,407 Lease Dated – 08.10.14 Earliest Break Date – 07.10.19 Expiry Date - 07.10.24
£10 psf = £24,000 £30 psf = £72k
Non Applicable – IRI lease with service charge for externals and base build Services
2017-2019 no shortfall 2020-2022 3yrs reduced maintenance/service charge say £30,000 (includes Estate s/c contribution. Insurance inspection amounts covered by provision under Chantelle. Insurance £1200 Void rates £47,000 Total £78,200
£126,200 Assuming the Lessees break in 2019. Maintenance and servicing would continue for the void period but at a reduced level.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease Information A Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
4 003 Northfield House – Ground Floor
Gordon Murray Design Ltd
This section of Northfield House comprises a single storey warehouse facility that has been converted to part office to suit the occupational requirements of the tenant.
5239 Lease Dated – 08.10.13 Earliest Break Date – n/a Expiry Date - 24.03.17 Not within 54 Act – Tenant negotiating new lease
£8 psf = £42k
£30 psf = £157k
Non Applicable – IRI lease with service charge for externals and base build Services
Assume extended lease runs to September 2022
£115,000 Assumes letting strategy would be to market in current configuration as warehouse accommodation with ancillary offices, welfare
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease Information A Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
5 Northfield House – 1st Floor
DPA Corporate Communications Ltd
Northfield House comprises a two storey, interconnected office block built in the 1980s.
5239
Lease Dated – 08.10.14 Earliest Break Date – 07.10.19 Expiry Date - 07.10.24
£10 psf = £52k n/a – Benchmark Standard achieved in 2013
Non Applicable – IRI lease with service charge for externals and base build Services
2019-2022 3 yrs service charge contribution £82,500 Insurance inspections for 3 year £3,000. Insurance £3,300 Void rates £97,000 Tenant M and E caretaker maintenance £6000 as necessary. Total £191,800
£139,800 M&E 6 years old at break Assuming the lease is broken in 2019 and GMD remains in occupation until 2022 so services continue.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease Information A Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
6 River House – Suite 3 1st Floor
Criterion Adjusters Ltd
River House comprises a part two storey and part single storey office/warehouse block built in the 1980s.
3,442 Lease Dated – 20.10.16 Earliest Break Date – 23.09.19 Expiry Date - 19.10.21
£8 psf = £40k £30 psf = £100k
IRI lease with service charge for externals and base build Services
No shortfall to the break. 2019-2022 3 yrs of reduced management/maintenance services @ £33,000 Insurance inspections covered by the provision under The Legal Education Foundation. Insurance £600 Void rates £66,000 Total £99,600
£159,600 Assumes the lease is broken in 2019. The level of services are reduced after the operation of the break.
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
7 River House – Suite 2 Ground Floor
The Legal Education Foundation
River House comprises a part two storey and part single storey office/warehouse block built in the 1980s.
3,442 Lease Dated – 06.01.14 Earliest Break Date – n/a Expiry Date - 05.01.19 Inside the 54 Act Service charge cap in place at £24,725 pa.
£8 psf = £40,000
£30 psf = £100k Non Applicable – IRI lease with service charge for externals and base build Services
No s/c shortfall to expiry in January 2019. 2019 void s/c contribution £21,200. 2020-2022 3 yrs of reduced management/maintenance services @ £30,000. Insurance inspections £4000 Insurance £1200 Void rates £85,000 Total £141,400
£201,400 Assume the Lessee does not renew at expiry.
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
8 River House – Suite 1 Grd Flr
Gordon Murray Design Limited
River House comprises a part two storey and part single storey office block built in the 1980s.
6,685 Lease Dated – 05.02.09 Earliest Break Date – n/a Expiry Date - 27.03.17 Not within 54 Act – Tenant negotiating new lease This is an inclusive rental.
£10 psf = £67k
£30 psf = £190k
IRI lease with service charge for externals and base build Services which is paid by the Landlord.
Service charge short fall for 3 yrs 2017-2019 at £130,650. 2020-2022 3 further years at a reduced level of services £65,325. Total £195,975
£318,975 Assume extended lease runs to September 2022 Scope to be determined on warehouse or office use. Assumes dilapidations works would be to reinstate to office layout but retain Wc’s installed by tenant
Broadford Business Park, Shalford
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
9 005 Wharfside
Gordon Murray Design Limited
Wharfside comprises a two storey office block built in the 1980s with a single storey warehouse section
15,456 Lease Dated – 28.03.07
Earliest Break Date
– n/a
Expiry Date
27.03.17
Inside the 54 Act –
Tenant holding over
FRI Lease
£25 psf = £386k
£30 psf = £433k
£30 psf £433k
Assume extended lease runs to September 2022
No shortfall.
£480 k Question over
warehouse area
and converting into
office space
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
10 006 Broadford House
Bite CP Limited
Broadford House is of traditional loadbearing masonry construction with pitched roofs covered in slate and clay tiles
3,120 Lease Dated – 10.04.13 Earliest Break Date – n/a Expiry Date - 09.04.18 FRI Lease
£15 psf = £45,000
n/a
n/a
2018-2022 4.5 years following expiry service charge shortfall at £9,000. Insurance Inspections £4,500 Insurance £3400 Void rates 76,000 Void maintenance £22,500 Total £115,400
£70,400 Assuming the lease is not renewed upon expiry in Nov 18 and a limited sum for essential maintenance only is provided. FRI lease which should yield up property in repair.
Broadford Business Park, Shalford
Notes:
1) All costs exclude VAT
2) No allowance for Professional Fees / Statutory Approvals – Allow 20%
3) No allowance for Inflation
4) Assumes that properties remain vacant from expiry of leases / break dates through to 2022 (to coincide with Bishopsgate House)
5) Rates based on assumed NIA floor areas provided
6) Supersession not factored into dilapidations costs
7) Benchmark Standard cost based on Final Account for Northfield House dated March 2014 divided by the floor area for specified works
8) Costs based on Q1 2017 cost data
9) No Additional Capex allowed for the possibility of a future single let on the IRI properties at expiry of terms
10) Non recoverable costs determined on an approximate yearly basis assuming properties are void from being vacated
Ref Unit Tenant Property Description Floor
Area
(Sq.ft)
Lease / Licence
Information A
Budget Cost to fulfil Dilapidations Liabilities (£) (Exc fees)
B Capex to achieve Benchmark Standard (exc Fees)
C Additional Capex to Achieve Long Lease With No Limitations
D Anticipated non recoverable maintenance costs for vacant period
COST TO THE FUND Capex (B + C) – Dilapidations Recovery (A)+ Non Recoverable Costs (D)
Comments
11 007 Park House
Surrey County Council
Dating from around the 1970’s, Park House is a three storey building of traditional load bearing masonry construction with flat and mansard roofs weathered with slates and mineral felt overlaid in granite chipping
3,647 Lease Dated – 19.11.12 Earliest Break Date – n/a Expiry Date - 18.11.17 FRI Lease Inside the 54 Act
£25 psf = £91,000
n/a
£50 psf = £182k
2017-2022 5 years void service charge contribution £12,500 Insurance inspections £5,000 Insurance £4100 Void rates £96,300. Void Maintenance £25,000. Total £142,900
£233,900 Assuming the lease is not renewed upon expiry in Nov 17 and a limited sum for essential maintenance only is provided.
SUB TOTAL £3,701,675
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 7
Appendix C : Site Plan
20 0 20 40 60 80 100
Metres
NOTE :
WHEN PRINTING PDF PLANS, ALWAYS ENSURE THAT PAGE
SCALING (IN PRINTER DIALOGUE BOX) IS SET TO NONE.
USING FIT TO PAGE WILL INTRODUCE SCALING ERRORS.
NB
Responsibility is not accepted for
errors made by others scaling from
this drawing. All construction
information should be taken from
figured dimensions only
A3
Revision
Date
Title
Client
Project
Surveyor
Drawing Number
Scale
Drawn by
Rev Description By Date
BROADFORD PARK, SHALFORD,
GUILDFORD, GU4 8EP
ZURICH ASSURANCE LTD LIFE
SITE LOCATION PLAN
DRF JJB MAR 2016
1:1250 @ A3
L152160-D09-002
Broadford Park, Shalford Surrey
Report on Scope of Works and Costings to Put Units in
Lettable Condition
JRB/U162216 March 2017 8
Appendix D : Watkins Payne Services Report
001 Bishopsgate House
The premises are provided with 2 No. 400A TP&N supplies (one in workshop and one in switch
room) terminating into the main switch panels via utility service heads. Distribution of power to
various areas is via the two main switch panels and various distribution boards. The reception area
lighting is provided using LED wall up lights. The office area lighting is provided using LED modular
panels. The warehouse area lighting is provided using fluorescent batten type luminaires. The
workshop area lighting is provided using recessed modular luminaires with prismatic diffusers. The
toilet lighting is provided using fluorescent down lights. The lighting is controlled via PIRs in offices
and manual switches in majority of the other areas. An analogue addressable fire alarm system is
provided comprising a main fire alarm panel, smoke detectors, break glass units and sounders. A
door entry system is provided at the main entrance. The tenant has installed a standby generator in
the car park area to meet their operational requirements. The tenant has installed UPS units to meet
their operational requirements. The tenant has installed a computer equipment room to meet their
operational requirements. The tenant has installed data and IT installations throughout to suit their
occupational requirements.
The premises are provided with a small gas fired boiler plant and heating is provided to some
industrial areas by unit heaters. Generally the offices are provided with heating and cooling by a VRF
air conditioning system and there are ancillary heating devices (radiators and unit heaters) to
ancillary warehouse/workshop spaces.
Mechanical ventilation is provided to the toilet accommodation.
The tenant has installed workshop services.
Comments
� The lighting in the reception, corridor, warehouse and toilet areas look tired and dated and
will need to be replaced as part of any future Cat A works.
� The building is provided with 2 No. separately metered incoming supplies which provides a
facility to split the building into two units when the building becomes vacant as part of any
future Cat A works.
� The tenant has installed various additional plant and equipment such as standby generator,
switchgear, satellite TV dishes, computer equipment rooms, UPS, etc.
� The high level busbars in the warehouse/workshop areas are in the poor condition and will
require replacement as part of any future Cat A works.
� The tenant has installed various additional AC condenser units on the roof and ground floor
externally to serve their operational requirements.
� The main switch panels are from original installation and over 20 years old.
� The VRF installations are a relatively new addition circa 2014 and the small boiler is
relatively new whilst other mechanical services date from the time of construction are
appear to be the oldest at the business park
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as standby generator and associated switchgear
� Remove tenant installed satellite TV dishes on the roof
� Remove tenant installed computer equipment rooms and associated UPS units.
� Remove all tenant’s data and IT installations
� Remove all tenant’s cooling plant associated with computer equipment rooms
� Remove all tenant’s partitioned rooms and reinstate to open plan office areas.
� Repairs to the heating system valves
� Reinstatement of services to open plan arrangement
002 Southfield House
The building is provided with a 200A TP&N supply from the local site substation which terminates
into a main switch panel via a utility service head. The power distribution in the building is via the
main switch panel and various distribution boards. The lighting is provided using wall up lighters in
the reception area, modular LG3 fluorescent lighting in the office areas with linear fluorescent
profile luminaires in the pitched office areas at the perimeter and fluorescent down lights in the
toilet areas. Lighting in office areas is controlled via PIRs with manual switches provided for all other
areas. A raised floor system is provided for tenant’s power and data distributions. A conventional 8
zone fire alarm panel is provided in the reception area with detectors, break glass units and bells
provided throughout. A door entry system is provided at the main entrance.
Heating and cooling is provided to the office areas via 2pipe VRF system installed circa 2013, using
external condensers in the roof plant compound and ceiling mounted cassette units in the office
areas. The hot water is provided using an electric hot water heater installed within the roof plant
area. The building is served by mains fed water system and conventional sanitary plumbing.
Mechanical ventilation is provided to the toilet accommodation.
In 2015 a controls upgrade for the central heating and heating plant was provided.
Comments
� The tenants on the ground and first floor have created partitioned office areas to suit their
operational requirements.
� The first office areas are directly linked to the first floor office areas in the adjacent
Northfields House building.
� The plant room originally housed 2 No. gas fired boilers, associated pumps and controls
which have now been completely stripped out. It was not evident if this formed part of the
tenant’s fitout works or landlord’s Cat A works.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s partitioned rooms and reinstate to open plan office areas.
003 Northfield House
The building is provided with a 200A TP&N supply from the local site substation which terminates
into a main switch panel via a service head. The power distribution in the building is via the main
switch panel and various distribution boards. A raised floor system is provided for tenant’s power
and data distributions. The lighting is provided using wall up lighters in the reception area,
fluorescent batten type luminaires in the ground floor workshop areas and fluorescent down lights
in the toilet areas. The lighting in the first floor office areas is provided using modular LG3
fluorescent lighting in combination with linear fluorescent profile luminaires in the pitched office
area at the perimeter. Lighting in office areas is controlled via PIRs with manual switches provided
for all other areas. A conventional fire alarm system is provided comprising main fire alarm panel in
the entrance foyer, smoke detectors, break glass units and bells. A door entry system is provided at
the main entrance. The tenant has installed access control system to cover their areas.
Heating and cooling is provided to the office areas via 2pipe VRF system installed circa 2010 using
external condensers in the roof plant compound and ceiling mounted cassette units in the office
areas. The hot water is provided using an electric hot water heater installed within the roof plant
area.
The premises has a boiler plant which has limited use and appears to be switched off as it was not
running on the day of inspection (extremely cold) In addition an electric heater has been provided to
the reception but there is no heating on the supply ventilation system and this has been switched off
so that extract only provisions run.
Mechanical ventilation is provided to the toilet accommodation.
Comments
� The tenants on the ground and first floor have created partitioned office areas to suit their
operational requirements.
� The first office areas are directly linked to the first floor office areas in the adjacent
Southfields House building.
� The plant room originally housed 2 No. gas fired boilers, associated pumps and controls
which have now been completely stripped out. It was not evident if this formed part of the
tenant’s fitout works or landlord’s Cat A works.
� 1 No. gas fired boiler is not operational in the roof plant room and there is limited heating to
the reception plus the heating to the toilets via the supply plant is not operational.
� Redundant condensers are left in situ in the roof plant compound.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s partitioned rooms and reinstate to open plan office areas.
004 River House
The building is provided with a 1500A TP&N supply from the local site substation which terminates
in a switch panel. The supply serves the office areas as well as the workshop area. The power
distribution in the building is via the main switch panel and various distribution boards. Check
meters are provided for majority of the submain distribution boards for tenant billing. The lighting is
provided using tungsten halogen down lights and metal halide column up lighters in the reception
area and fluorescent down lights in the toilet areas. The lighting in the office areas is provided using
modular LG3 fluorescent lighting in combination with linear fluorescent profile luminaires in the
pitched office area at the perimeter. Lighting in office areas is controlled by a mixture of switches
and PIRs with manual switches provided for all other areas. A conventional fire alarm system is
provided comprising main fire alarm panel, smoke detectors, break glass units and bells. A door
entry system with access control is provided to the main entrance doors and tenanted areas.
Heating to the office areas is provided via perimeter heating system which is served by gas fired
boilers located in the roof plant room. The offices are cooled by a VRF system incorporating outdoor
condensers arranged on a floor by floor/suite basis connected to internal cassette or ducted fan coil
units. The toilets are provided with mechanical ventilation. The workshop areas have indirect gas
fired high level radiant heating tubes.
The water heating is provided by a centralised hot water heater and cold water is mains fed to the
building ablution appliances. The premises have standard sanitary plumbing facilities
Comments
� The tenants on the ground and first floor have created partitioned office areas to suit their
operational requirements.
� The front office suite tenant has converted the warehouse space into office space to suit
their operational requirements.
� There is limited provision of smoke detection in the office and core areas.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s partitioned rooms and reinstate to open plan office areas.
� Reinstate ground floor office areas to suit base build warehouse space.
� Remove tenant’s tea point installations and reinstate to open plan offices
� Remove tenant’s shower / toilet block and associated pumped drainage and reinstate to
open plan offices.
005 Wharfside House
The building is provided with a 400A TP&N supply from the local site substation which terminates in
a switch panel. The office areas are provided with Cat 2 fluorescent modular lighting in conjunction
with linear profile luminaires in the pitched office areas and controlled via grid bank switches. The
workshop areas are provided with fluorescent batten lighting controlled via grid bank switches.
Reception area is provided with up lighters and down lights controlled via local switches. Small
power and data distribution in the offices is via raised floor system whereas workshop areas are
provided with power to suit operational requirements. A conventional fire alarm system is provided
comprising smoke detectors, break glass units and bells.
Heating to the office areas is provided via radiator heating system which is served by 3 No. gas fired
boilers located in the roof plant room. The reception is provided via perimeter trench heating and
over door heater. The offices are cooled by a VRF system incorporating outdoor condensers
arranged on a floor by floor basis connected to internal cassette type fan coil units. The toilets are
provided with mechanical ventilation. The workshop areas have indirect gas fired high level radiant
heating tubes.
The water heating is provided by a centralised hot water heater and cold water is mains fed to the
building ablution appliances. The premises have standard sanitary plumbing facilities
Comments:
� There is limited provision of smoke detection in the office and break out areas.
� The tenant has installed access control, CCTV and security installations as part of their fitout
works.
� The tenant has installed bespoke power installations in the workshop areas as part of their
fitout works.
� The tenant has installed bespoke extract systems in the workshop areas as part of their fit
out works.
� The tenant has installed air compressor plant in the roof plant room as part of their fitout
works.
� The tenant has installed their own airconditioning system as part of their fitout works.
� Redundant condensers are left on the roof of the warehouse.
� The tenant has installed bespoke services such as a paint shop, woodwork extract and tea
point facilities and specialist welfare/dining rooms and meeting rooms.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s tea point installations
� Remove tenant’s comms room split unit and associated services
� Remove tenant’s bespoke power installations in the workshop areas and reinstate to base
build
� Remove tenant’s bespoke workshop extract systems and compressor plant
� Remove tenant’s airconditioning plant including external condensers, pipework and internal
units and other bespoke equipment.
006 Broadford House
The building is provided with a 100A TP&N supply from the local site substation which terminates in
loose switchgear comprising busbar chamber and fuse switches. Final circuit distribution is via
various distribution boards fed from the loose switchgear. The lighting is provided using suspended
direct/indirect linear profile fluorescent lighting in the office areas, compact fluorescent down lights
in the reception and corridor areas and fluorescent bulkheads in the staircase and corridor areas.
Lighting is controlled via manual switches. Small power distribution is via skirting trunking in office
areas with general purpose sockets and fused spurs provided in all other areas to suit requirements.
A conventional fire alarm system is provided comprising main fire alarm panel, smoke detectors,
break glass units and bells. A door entry system is provided at the main entrance door.
The office areas are provided with LTHW radiator heating system comprising panel radiators. The
radiators are served by 2 No. central boilers, associated pressurisation vessel and pumps. The
building is not provided with an airconditioning system.
Hot water heating is from electric heaters with a main fed water system provided plus conventional
sanitary plumbing installations.
Local fans are provided for ventilation to toilet accommodation.
Comments:
� The services installations in the building are basic in nature.
� The tenant has installed a split unit to serve their comms room.
� The tenant has installed access control, CCTV and security installations as part of their fitout
works.
� The tenant has installed data and power installations as part of their fitout works.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s tea point installations
� Remove tenant’s comms room split unit and associated services
007 Park House
The building is provided with a 100A TP&N supply from the local site substation which terminates in
loose switchgear comprising busbar chamber and fuse switches. Final circuit distribution is via
various distribution boards fed from the loose switchgear. The lighting is provided using modular
fluorescent LG3 lighting in the office areas, compact fluorescent down lights in the reception and
corridor areas and fluorescent bulkheads in the staircase and corridor areas. Lighting is controlled via
manual switches. Small power distribution is via skirting and DADO trunking in office areas with
general purpose sockets and fused spurs provided in all other areas to suit requirements. A
conventional fire alarm system is provided comprising main fire alarm panel, smoke detectors, break
glass units and bells. A door entry system is provided at the main entrance door.
A low temperature hot water heating system comprising 2 No. central boilers, associated
pressurisation vessel, pumps and radiators in the office areas is provided in the building. The
building is not provided with an airconditioning system. Hot water heating is from electric heaters
with mains fed water system provided plus conventional sanitary plumbing installations.
Local fans are provided for ventilation to toilet accommodation.
Comments:
� The services installations in the building are basic in nature.
� The tenant has installed a split unit to serve their comms room.
� The tenant has installed access control, CCTV and security installations as part of their fitout
works.
� The tenant has installed data and power installations as part of their fitout works.
� The main intake cupboard is in a poorly maintained and untidy condition with cables left
hanging loose.
Anticipated Dilapidations Works
� Remove all tenant installed equipment such as access control, small power and data
installations
� Remove tenant’s tea point installations
� Remove tenant’s comms room split unit and associated services
Grounds and Common Parts
The external car park areas are provided with column mounted globe type fittings which are
controlled via time clock and photocell. The external lights are in a reasonable condition.
The electrical supply to the business park is provided via 2 No. UKPN substations which are located
opposite Park House and behind River House respectively. The UKPN substation references are
Broadfield Park 173559 and GTO 174913.
Appendix 2
Savills (UK) Ltd
Development Appraisal
Broadford Business Park
2 Storey Office Scheme
Report Date: 21 July 2017
TIMESCALE AND PHASING SAVILLS (UK) LTD Broadford Business Park 2 Storey Office Scheme
Timescale (Duration in months)
Project commences Jul 2017 Phase 1 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Jul 2017 Mar 2018 Pre-Construction End 0 Phase End Jun 2022 Phase Length 9
Phase 2 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Apr 2018 Dec 2018 Pre-Construction End 0 Phase End Jun 2022 Phase Length 18
Phase 3 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Jan 2019 Sep 2019 Pre-Construction End 0 Phase End Jun 2022 Phase Length 27
Phase 4 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Oct 2019 Jun 2020 Pre-Construction End 0 Phase End Jun 2022 Phase Length 36
Phase 5 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Jul 2020 Mar 2021 Pre-Construction End 0 Phase End Jun 2022 Phase Length 45
Phase 6 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Apr 2021 Dec 2021 Pre-Construction End 0 Sale 6 Jan 2022 Jun 2022 Income Flow End 0 Phase End Jun 2022 Phase Length 60
Project Length 60 (Merged Phases - Includes Exit Period)
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 2 Storey Office Scheme
Summary Appraisal for Merged Phases 1 2 3 4 5 6
Currency in £
REVENUE
Rental Area Summary Initial Net Rent Units ft² Rate ft² MRV/Unit at Sale
Block A 1 3,372 20.00 67,440 67,440 Block B 1 7,313 20.00 146,260 146,260 Block C 1 5,463 20.00 109,260 109,260 Block D 1 11,645 20.00 232,900 232,900 Block E 1 9,779 20.00 195,580 195,580 Block F 1 13,447 20.00 268,940 268,940 Totals 6 51,019 1,020,380
Investment Valuation Block A Current Rent 67,440 YP @ 8.0000% 12.5000 843,000 Rent Free (67,440) YP 0yrs 6mths @ 8.0000% 0.4719
PV 5yrs 10mths @ 8.0000% 0.6383 (20,313) 822,687
Block B Current Rent 146,260 YP @ 8.0000% 12.5000 1,828,250 Rent Free (146,260) YP 0yrs 9mths @ 8.0000% 0.7011
PV 6yrs 7mths @ 8.0000% 0.6025 (61,781) 1,766,469
Block C Current Rent 109,260 YP @ 8.0000% 12.5000 1,365,750 Rent Free (109,260) YP 0yrs 6mths @ 8.0000% 0.4719
PV 7yrs 4mths @ 8.0000% 0.5687 (29,321) 1,336,429
Block D Current Rent 232,900 YP @ 8.0000% 12.5000 2,911,250 Rent Free (232,900) YP 1yr @ 8.0000% 0.9259
PV 8yrs 1mth @ 8.0000% 0.5368 (115,763) 2,795,487
Block E Current Rent 195,580 YP @ 8.0000% 12.5000 2,444,750 Rent Free (195,580) YP 1yr @ 8.0000% 0.9259
PV 8yrs 10mths @ 8.0000% 0.5067 (91,761) 2,352,989
Block F Market Rent 268,940 YP @ 8.0000% 12.5000 (0yrs 7mths Unexpired Rent Free) PV 0yrs 7mths @ 8.0000% 0.9561 3,214,165 Renewal Rent Free (268,940) YP 1yr @ 8.0000% 0.9259
PV 9yrs 7mths @ 8.0000% 0.4783 (119,102) 3,095,063
12,169,125
Income from Tenants Block A 247,280 Block B 390,027 Block C 236,730 Block D 213,492 Block E 32,597
1,120,125
NET REALISATION 13,289,250
OUTLAY
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 2 Storey Office Scheme ACQUISITION COSTS
Residualised Price 258,202 Residualised Price (Negative land) (374,251) Agent Fee 1.50% 3,873 Legal Fee 0.35% 904
(111,272) CONSTRUCTION COSTS Construction ft² Rate ft² Cost
Block A 3,729 ft² 155.00 pf² 577,995 Block B 7,932 ft² 155.00 pf² 1,229,460 Block C 5,920 ft² 155.00 pf² 917,600 Block D 12,271 ft² 155.00 pf² 1,902,005 Block E 10,398 ft² 155.00 pf² 1,611,690 Block F 14,144 ft² 155.00 pf² 2,192,320 Totals 54,394 ft² 8,431,070 8,431,070
Contingency 10.00% 843,107 Demolition 600,000 External Landscaping 300,000
1,743,107
PROFESSIONAL FEES Professional Fees 10.00% 843,107
843,107 MARKETING & LETTING
Letting Agent Fee 15.00% 153,057 Letting Legal Fee 1.50% 15,306
168,363
TOTAL COSTS 11,074,374
PROFIT 2,214,875
Performance Measures Profit on Cost% 20.00% Profit on GDV% 18.20% Profit on NDV% 18.20% Development Yield% (on Rent) 9.21% Equivalent Yield% (Nominal) 8.00% Equivalent Yield% (True) 8.41%
IRR 8.31%
Rent Cover 2 yrs 2 mths Profit Erosion (finance rate 0.000%) N/A
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 2 Storey Office Scheme
Initial MRV
67,440 146,260 109,260 232,900 195,580 268,940
1,020,380
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 2 Storey Office Scheme
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
SENSITIVITY ANALYSIS REPORT SAVILLS (UK) LTD
Broadford Business Park 2 Storey Office Scheme
Table of Land Cost and Profit Amount Construction: Rate pf²
Rent: Rate pf² -20.00 pf² -10.00 pf² 0.00 pf² +10.00 pf² +20.00 pf² 135.00 pf² 145.00 pf² 155.00 pf² 165.00 pf² 175.00 pf²
-3.00 pf² £443,026 £1,094,447 £1,747,174 £2,399,901 £3,052,630 17.00 pf² £1,882,644 £1,882,645 £1,882,644 £1,882,643 £1,882,644 -1.50 pf² (£367,182) £279,062 £929,489 £1,581,950 £2,234,679 18.50 pf² £2,048,760 £2,048,759 £2,048,760 £2,048,759 £2,048,759
0.00 pf² (£1,172,492) (£530,171) £116,049 £764,952 £1,416,729 20.00 pf² £2,214,876 £2,214,876 £2,214,875 £2,214,874 £2,214,876 +1.50 pf² (£1,975,586) (£1,334,713) (£692,829) (£46,940) £600,660 21.50 pf² £2,380,991 £2,380,992 £2,380,991 £2,380,991 £2,380,991 +3.00 pf² (£2,778,678) (£2,137,808) (£1,496,935) (£855,421) (£209,930) 23.00 pf² £2,547,108 £2,547,107 £2,547,108 £2,547,106 £2,547,107
Sensitivity Analysis : Assumptions for Calculation
Construction: Rate pf² Original Values are varied in Fixed Steps of £10.00
Heading Phase Rate No. of Steps Block A 1 £155.00 2 Up & Down Block B 2 £155.00 2 Up & Down Block C 3 £155.00 2 Up & Down Block D 4 £155.00 2 Up & Down Block E 5 £155.00 2 Up & Down Block F 6 £155.00 2 Up & Down
Rent: Rate pf² Original Values are varied in Fixed Steps of £1.50
Heading Phase Rate No. of Steps Block A 1 £20.00 2 Up & Down Block B 2 £20.00 2 Up & Down Block C 3 £20.00 2 Up & Down Block D 4 £20.00 2 Up & Down Block E 5 £20.00 2 Up & Down Block F 6 £20.00 2 Up & Down
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\2 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Report Date: 21/07/2017
Appendix 3
Savills (UK) Ltd
Development Appraisal
Broadford Business Park
3 Storey Office Scheme
Report Date: 21 July 2017
TIMESCALE AND PHASING SAVILLS (UK) LTD Broadford Business Park 3 Storey Office Scheme
Timescale (Duration in months)
Project commences Jul 2017 Phase 1 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2017 Jun 2018 Pre-Construction End 0 Phase End Dec 2023 Phase Length 12
Phase 2 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2018 Jun 2019 Pre-Construction End 0 Phase End Dec 2023 Phase Length 24
Phase 3 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2019 Jun 2020 Pre-Construction End 0 Phase End Dec 2023 Phase Length 36
Phase 4 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2020 Jun 2021 Pre-Construction End 0 Phase End Dec 2023 Phase Length 48
Phase 5 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2021 Jun 2022 Pre-Construction End 0 Phase End Dec 2023 Phase Length 60
Phase 6 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2022 Jun 2023 Pre-Construction End 0 Sale 6 Jul 2023 Dec 2023 Income Flow End 0 Phase End Dec 2023 Phase Length 78
Project Length 78 (Merged Phases - Includes Exit Period)
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 3 Storey Office Scheme
Summary Appraisal for Merged Phases 1 2 3 4 5 6
Currency in £
REVENUE
Rental Area Summary Initial Net Rent Units ft² Rate ft² MRV/Unit at Sale
Block A 1 3,372 20.00 67,440 67,440 Block B 1 7,313 20.00 146,260 146,260 Block C 1 5,463 20.00 109,260 109,260 Block D 1 11,645 20.00 232,900 232,900 Block E 1 9,779 20.00 195,580 195,580 Block F 1 13,447 20.00 268,940 268,940 Totals 6 51,019 1,020,380
Investment Valuation Block A Current Rent 67,440 YP @ 8.0000% 12.5000 843,000 Rent Free (67,440) YP 0yrs 6mths @ 8.0000% 0.4719
PV 4yrs 7mths @ 8.0000% 0.7028 (22,364) 820,636
Block B Current Rent 146,260 YP @ 8.0000% 12.5000 1,828,250 Rent Free (146,260) YP 0yrs 9mths @ 8.0000% 0.7011
PV 5yrs 7mths @ 8.0000% 0.6507 (66,723) 1,761,527
Block C Current Rent 109,260 YP @ 8.0000% 12.5000 1,365,750 Rent Free (109,260) YP 0yrs 6mths @ 8.0000% 0.4719
PV 6yrs 7mths @ 8.0000% 0.6025 (31,063) 1,334,687
Block D Current Rent 232,900 YP @ 8.0000% 12.5000 2,911,250 Rent Free (232,900) YP 1yr @ 8.0000% 0.9259
PV 7yrs 7mths @ 8.0000% 0.5579 (120,305) 2,790,945
Block E Current Rent 195,580 YP @ 8.0000% 12.5000 2,444,750 Rent Free (195,580) YP 1yr @ 8.0000% 0.9259
PV 8yrs 7mths @ 8.0000% 0.5166 (93,543) 2,351,207
Block F Market Rent 268,940 YP @ 8.0000% 12.5000 (0yrs 7mths Unexpired Rent Free) PV 0yrs 7mths @ 8.0000% 0.9561 3,214,165 Renewal Rent Free (268,940) YP 1yr @ 8.0000% 0.9259
PV 9yrs 7mths @ 8.0000% 0.4783 (119,102) 3,095,063
12,154,065
Income from Tenants Block A 331,580 Block B 536,287 Block C 318,675 Block D 329,942 Block E 81,492
1,597,975
NET REALISATION 13,752,040
OUTLAY
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 3 Storey Office Scheme ACQUISITION COSTS
Residualised Price 263,623 Residualised Price (Negative land) (646,842) Agent Fee 1.50% 3,954 Legal Fee 0.35% 923
(378,342) CONSTRUCTION COSTS Construction ft² Rate ft² Cost
Block A 3,729 ft² 165.00 pf² 615,285 Block B 7,932 ft² 165.00 pf² 1,308,780 Block C 5,920 ft² 165.00 pf² 976,800 Block D 12,271 ft² 165.00 pf² 2,024,715 Block E 10,398 ft² 165.00 pf² 1,715,670 Block F 14,144 ft² 165.00 pf² 2,333,760 Totals 54,394 ft² 8,975,010 8,975,010
Contingency 10.00% 897,501 Demolition 600,000 External Landscaping 300,000
1,797,501
PROFESSIONAL FEES Professional Fees 10.00% 897,501
897,501 MARKETING & LETTING
Letting Agent Fee 15.00% 153,057 Letting Legal Fee 1.50% 15,306
168,363
TOTAL COSTS 11,460,033
PROFIT 2,292,007
Performance Measures Profit on Cost% 20.00% Profit on GDV% 18.86% Profit on NDV% 18.86% Development Yield% (on Rent) 8.90% Equivalent Yield% (Nominal) 8.00% Equivalent Yield% (True) 8.41%
IRR 6.55%
Rent Cover 2 yrs 3 mths Profit Erosion (finance rate 0.000%) N/A
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 3 Storey Office Scheme
Initial MRV
67,440 146,260 109,260 232,900 195,580 268,940
1,020,380
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park 3 Storey Office Scheme
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
SENSITIVITY ANALYSIS REPORT SAVILLS (UK) LTD
Broadford Business Park 3 Storey Office Scheme
Table of Land Cost and Profit Amount Construction: Rate pf²
Rent: Rate pf² -20.00 pf² -10.00 pf² 0.00 pf² +10.00 pf² +20.00 pf² 145.00 pf² 155.00 pf² 165.00 pf² 175.00 pf² 185.00 pf²
-2.00 pf² £207,346 £856,359 £1,507,508 £2,160,236 £2,812,964 18.00 pf² £2,062,806 £2,062,807 £2,062,806 £2,062,805 £2,062,805 -1.00 pf² (£351,096) £295,125 £944,540 £1,595,653 £2,248,381 19.00 pf² £2,177,407 £2,177,407 £2,177,406 £2,177,406 £2,177,406
0.00 pf² (£908,890) (£263,317) £383,219 £1,032,722 £1,683,797 20.00 pf² £2,292,007 £2,292,007 £2,292,007 £2,292,007 £2,292,006 +1.00 pf² (£1,464,601) (£821,565) (£175,538) £471,345 £1,120,904 21.00 pf² £2,406,608 £2,406,607 £2,406,608 £2,406,607 £2,406,607 +2.00 pf² (£2,018,930) (£1,378,058) (£733,980) (£87,760) £559,472 22.00 pf² £2,521,208 £2,521,208 £2,521,208 £2,521,208 £2,521,208
Sensitivity Analysis : Assumptions for Calculation
Construction: Rate pf² Original Values are varied in Fixed Steps of £10.00
Heading Phase Rate No. of Steps Block A 1 £165.00 2 Up & Down Block B 2 £165.00 2 Up & Down Block C 3 £165.00 2 Up & Down Block D 4 £165.00 2 Up & Down Block E 5 £165.00 2 Up & Down Block F 6 £165.00 2 Up & Down
Rent: Rate pf² Original Values are varied in Fixed Steps of £1.00
Heading Phase Rate No. of Steps Block A 1 £20.00 2 Up & Down Block B 2 £20.00 2 Up & Down Block C 3 £20.00 2 Up & Down Block D 4 £20.00 2 Up & Down Block E 5 £20.00 2 Up & Down Block F 6 £20.00 2 Up & Down
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\3 Storey Office 140716.wcfx ARGUS Developer Version: 6.00.008 Report Date: 21/07/2017
Appendix 4
Savills (UK) Ltd
Development Appraisal
Broadford Business Park
Industrial Scheme
Report Date: 21 July 2017
TIMESCALE AND PHASING SAVILLS (UK) LTD Broadford Business Park Industrial Scheme
Timescale (Duration in months)
Project commences Jul 2017 Phase 1 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2017 Jun 2018 Pre-Construction End 0 Phase End Dec 2023 Phase Length 12
Phase 2 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2018 Jun 2019 Pre-Construction End 0 Phase End Dec 2023 Phase Length 24
Phase 3 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2019 Jun 2020 Pre-Construction End 0 Phase End Dec 2023 Phase Length 36
Phase 4 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2020 Jun 2021 Pre-Construction End 0 Phase End Dec 2023 Phase Length 48
Phase 5 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2021 Jun 2022 Pre-Construction End 0 Phase End Dec 2023 Phase Length 60
Phase 6 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 12 Jul 2022 Jun 2023 Pre-Construction End 0 Sale 6 Jul 2023 Dec 2023 Income Flow End 0 Phase End Dec 2023 Phase Length 78
Project Length 78 (Merged Phases - Includes Exit Period)
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Industrial Scheme 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Industrial Scheme
Summary Appraisal for Merged Phases 1 2 3 4 5 6
Currency in £
REVENUE
Rental Area Summary Initial Net Rent Initial Units ft² Rate ft² MRV/Unit at Sale MRV
Block A 1 1,864 11.00 20,504 20,504 20,504 Block B 1 3,966 11.00 43,626 43,626 43,626 Block C 1 2,960 11.00 32,560 32,560 32,560 Block D 1 6,135 11.00 67,485 67,485 67,485 Block E 1 5,199 11.00 57,189 57,189 57,189 Block F 1 7,072 11.00 77,792 77,792 77,792 Totals 6 27,196 299,156 299,156
Investment Valuation Block A Current Rent 20,504 YP @ 8.0000% 12.5000 256,300 Rent Free (20,504) YP 0yrs 6mths @ 8.0000% 0.4719
PV 4yrs 7mths @ 8.0000% 0.7028 (6,799) 249,501
Block B Current Rent 43,626 YP @ 8.0000% 12.5000 545,325 Rent Free (43,626) YP 0yrs 9mths @ 8.0000% 0.7011
PV 5yrs 7mths @ 8.0000% 0.6507 (19,902) 525,423
Block C Current Rent 32,560 YP @ 8.0000% 12.5000 407,000 Rent Free (32,560) YP 0yrs 6mths @ 8.0000% 0.4719
PV 6yrs 7mths @ 8.0000% 0.6025 (9,257) 397,743
Block D Current Rent 67,485 YP @ 8.0000% 12.5000 843,563 Rent Free (67,485) YP 1yr @ 8.0000% 0.9259
PV 7yrs 7mths @ 8.0000% 0.5579 (34,859) 808,703
Block E Current Rent 57,189 YP @ 8.0000% 12.5000 714,863 Rent Free (57,189) YP 1yr @ 8.0000% 0.9259
PV 3yrs 7mths @ 8.0000% 0.7590 (40,190) 674,672
Block F Market Rent 77,792 YP @ 8.0000% 12.5000 (0yrs 7mths Unexpired Rent Free) PV 0yrs 7mths @ 8.0000% 0.9561 929,711 Renewal Rent Free (77,792) YP 1yr @ 8.0000% 0.9259
PV 9yrs 7mths @ 8.0000% 0.4783 (34,451) 895,260
3,551,302
Income from Tenants Block A 100,811 Block B 159,962 Block C 94,967 Block D 95,604 Block E 23,829
475,173
NET REALISATION 4,026,474
OUTLAY
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Industrial Scheme 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Industrial Scheme ACQUISITION COSTS
Residualised Price 36,047 Residualised Price (Negative land) (241,495) Agent Fee 1.50% 541 Legal Fee 0.35% 126
(204,781) CONSTRUCTION COSTS Construction ft² Rate ft² Cost
Block A 1,864 ft² 80.00 pf² 149,120 Block B 3,966 ft² 80.00 pf² 317,280 Block C 2,960 ft² 80.00 pf² 236,800 Block D 6,135 ft² 80.00 pf² 490,800 Block E 5,199 ft² 80.00 pf² 415,920 Block F 7,072 ft² 80.00 pf² 565,760 Totals 27,196 ft² 2,175,680 2,175,680
Contingency 10.00% 217,568 Demolition 600,000 External Landscaping 300,000
1,117,568
PROFESSIONAL FEES Professional Fees 10.00% 217,568
217,568 MARKETING & LETTING
Letting Agent Fee 15.00% 44,873 Letting Legal Fee 1.50% 4,487
49,361
TOTAL COSTS 3,355,395
PROFIT 671,079
Performance Measures Profit on Cost% 20.00% Profit on GDV% 18.90% Profit on NDV% 18.90% Development Yield% (on Rent) 8.92% Equivalent Yield% (Nominal) 8.00% Equivalent Yield% (True) 8.41%
IRR 6.32%
Rent Cover 2 yrs 3 mths Profit Erosion (finance rate 0.000%) N/A
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Industrial Scheme 140716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
SENSITIVITY ANALYSIS REPORT SAVILLS (UK) LTD
Broadford Business Park Industrial Scheme
Table of Land Cost and Profit Amount Construction: Rate pf²
Rent: Rate pf² -20.00 pf² -10.00 pf² 0.00 pf² +10.00 pf² +20.00 pf² 60.00 pf² 70.00 pf² 80.00 pf² 90.00 pf² 100.00 pf²
-2.00 pf² £153,931 £479,527 £805,879 £1,132,231 £1,458,583 9.00 pf² £549,065 £549,065 £549,065 £549,065 £549,065
-1.00 pf² (£144,231) £179,689 £505,330 £831,682 £1,158,034 10.00 pf² £610,072 £610,072 £610,072 £610,071 £610,072
0.00 pf² (£439,786) (£118,582) £205,448 £531,134 £857,485 11.00 pf² £671,079 £671,079 £671,079 £671,079 £671,079 +1.00 pf² (£734,875) (£414,451) (£92,799) £231,255 £556,937 12.00 pf² £732,087 £732,087 £732,086 £732,086 £732,086 +2.00 pf² (£1,029,965) (£709,541) (£389,117) (£67,016) £257,125 13.00 pf² £793,094 £793,094 £793,094 £793,094 £793,094
Sensitivity Analysis : Assumptions for Calculation
Construction: Rate pf² Original Values are varied in Fixed Steps of £10.00
Heading Phase Rate No. of Steps Block A 1 £80.00 2 Up & Down Block B 2 £80.00 2 Up & Down Block C 3 £80.00 2 Up & Down Block D 4 £80.00 2 Up & Down Block E 5 £80.00 2 Up & Down Block F 6 £80.00 2 Up & Down
Rent: Rate pf² Original Values are varied in Fixed Steps of £1.00
Heading Phase Rate No. of Steps Block A 1 £11.00 2 Up & Down Block B 2 £11.00 2 Up & Down Block C 3 £11.00 2 Up & Down Block D 4 £11.00 2 Up & Down Block E 5 £11.00 2 Up & Down Block F 6 £11.00 2 Up & Down
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Industrial Scheme 140716.wcfx ARGUS Developer Version: 6.00.008 Report Date: 21/07/2017
Appendix 5
Planned Preventative Maintenance Report
Of
River House, Broadford Business Park,
Shalford, Guildford, Surrey GU4 8EP
On Behalf Of
Zurich Assurance Ltd Life
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
1
CONTENTS
1.0 Introduction and Instructions 2
2.0 General Description 3
3.0 Summary 3
4.0 Building Services 3
APPENDICES
Appendix A - Summary Schedule Appendix B - Planned Preventative Maintenance Schedules Appendix C - Site Plan Appendix D - Photographs
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
2
1.0 Introduction and Instructions
In accordance with instructions received from Hugh Davies, we have prepared a Planned Preventative Maintenance Report for the River House, Broadford Business Park, Shalford, Guildford, GU4 8EP. The aim of the Report is to advise on the general state of repair of the property and the liabilities for future maintenance items. We carried out our inspection of the property on 08 August 2013. The weather conditions were dry and bright. For reference purposes we have assumed that the front elevation faces South. The scope of our survey includes all the common parts of the building including: the roofs; elevations; service yards; car park decks; and ancillary areas internally etc. The subject building comprises the retail units and the offices over the same, the basement car park and the loading bay; we understand that the remainder of the building comprising the offices and residential units to the rear of the courtyard are separately managed and will not form a part of this report. We have not inspected the internal areas of the tenanted areas, where we assume that the tenant’s have responsibility for repair under the terms of the lease. We have also not inspected woodwork or other parts of the structure that are covered, not exposed or inaccessible and we are therefore unable to report that these areas are free from beetle infestation, rot or other defects. Where we believe it prudent to undertake further detailed inspection of parts of the property we have indicated this in the schedule. The schedule covers the service charge years from 2013-2018. The schedule also indicates the years from 2018-2023 in order to identify ongoing cyclical repair items such as decorations, but these costs should not be relied upon at this time. We recommend that a full inspection of the property be undertaken during 2018 in order to review and update the schedule. In the interim the budget costs in the schedule should be subject to an annual desk-top update in line with BCIS cost indices in order to reflect increasing tender prices. All costs shown are for budgetary purposes, these are not based on builders cost assessments or quantity surveyors cost plans. The Report is not intended to be an exhaustive list of repairs and does not highlight minor defects and items of a house-keeping nature which are dealt with on a day-to-day basis by the existing site management. However we have included for larger repair items (highlighted) for action by the site manager, but which may require building surveying support, or can be included within a larger contract if appropriate.
We have indicated professional fees at a flat rate of 15%. This figure takes into consideration the possibility of other consultants becoming involved and the size of the contract. You should be aware that the level of fees may vary depending on the size and scope of each individual contract undertaken during a specific year. It should also be noted that cost savings might be possible if several sections of work are undertaken as part of the same contract so as to benefit from economies of scale. In accordance with our standard practice, we would point out that this Report is purely based on our site inspection of the premises and the information made available to us at that time, which we assume to be correct. We would also point out that the Report is for the benefit only of the party to whom it is addressed, and this firm cannot be held responsible to any third party for the whole or any part of its contents.
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
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2.0 General Description
The property is part of a purpose built office development incorporating several buildings with external car parking and landscaping. The subject building known as River House comprises a two storey steel framed office block. The building is clad in masonry with polyester powder coated aluminium windows and sections of curtain walling. The roof is surmounted by a mixture of asphalt covered flat roofs and polyester powder coated profiled metal sheet pitched roofs. Access to the first floor office accommodation is via a platform lift and stairwell within a central atrium.
3.0 Summary The Schedule commences in 2014. The service charge year runs from January 2014. The total yearly figures are rounded to the nearest £500 for budget purposes. The breakdown of the envisaged costs for the relevant years is as follows:
Service Charge Year £ 2014 £199,180.00 2015 £33,695.00 2016 £53,682.50 2017 £29,382.50 2018 £53,130.00
The building is suffering heavy deterioration of a number of the elements of the fabric and will require on-going maintenance in order to maintain it in a wind and watertight condition. The principal costs identified within the report are as follows: -
• The roofs were noted to be in poor condition and require repair and renewal of the existing roof coverings. The detailing to the roof is awkward and access is limited by the various pitches and areas of flat roof; as such the costs of any repairs/ replacement has taken into account the difficulties involved in undertaking the works.
• The windows and curtain walling are in poor condition with deteriorating gaskets, degrading polyester powder coating and individual defective casements. An allowance has been made for on-going repairs and localised replacement to all of the window units.
• Areas of brickwork are in poor condition and heavily marked and dirty. Cleaning and
repointing and repair works have been included within the schedule.
4.0 Building Services
4.1 General
The anticipated life span of equipment is based on standard guidelines, such as those given by the Chartered Institute of Building Services Engineers, engineering experience, and the visible condition of the plant.
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
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In the majority of cases, the equipment may continue to operate beyond its anticipated lifetime, dependent on the quality of maintenance. However, due to the difficulty in obtaining spare parts, which will take longer to source, the system down time increases causing tenant disruption and possibly meaning the equipment is less economical to run. By operating older plant, the risk of failure increases. Whilst the costs have been based on existing equipment, suitable alternatives should be considered when looking at replacement, particularly where more energy efficient systems and equipment could be used. At least two competitive quotations should be sought wherever replacement or upgrade works are implemented. In the case of larger project works (£5,000 and above), we recommend a full specification and tender process for the works is carried out.
4.2 Specific 4.2.1 Building Description
River House is a steel framed curtain walled, two storey office building providing approximately 10,000 ft2 of usable office accommodation. Both the ground and first floors are open plan with the upper floor accessed via a centre staircase and a hydraulic disabled lift facility.
4.2.2 Mechanical Comfort cooling is provided to both the ground and first floor office spaces via Variable Refrigerant Volume (VRV) type units which comprise of ceiling mounted 4 way blower indoor units and air cooled condenser units which are roof mounted. Heating to the building is provided via 3 No Low Temperature Hot Water (LTHW) gas fired boilers. Heating is distributed throughout via a combination of perimeter mounted, sill height, continuous convector and single panel radiators (the latter serving toilet areas only). Mechanical ventilation is provided to the ground and first floor toilet areas only with the supply and extract units mounted at roof level.
4.2.3 Electrical The sites electrical installation contained within the ground floor office accommodation were not fully surveyed at the time of inspection due to access restrictions.
4.2.4 Public Health
Domestic hot water services are provided to the toilets of each floor via wall mounted electric point of use hot water storage heaters. Cold water services are provided via a sectional GRP type storage tank located within a purpose built roof space housing.
4.2.5 Fire Alarm System
The buildings fire alarm system comprises ceiling mounted automatic smoke detectors with wall mounted break glass units located at the ground floor final exit.
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
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4.2.6 Lift Installations The lift service is provided by one electric Disabled platform lift complete with glazed enclosure, manufactured by CIBES to a design to meet the Machinery Regulations and installed by UK Lifts in 2004. The lift is located in the atrium of the building and has a load capacity of 4 persons – serving 2 floors (G, 1). The lift has a cantilevered, inverter controlled, electric motor, worm and peg drive. The control panel passenger controls are of the microprocessor constant pressure type. The lift controller is located on the wall adjacent to the lift enclosure in the atrium. The worm and peg drive is concealed within the lift enclosure. Statutory inspection documents are not available on site. The survey revealed no outstanding health and safety issues requiring attention. The lift platform and structural finishes are in good condition. The lift meets the requirements of the Equality Act. It should be noted that the platform lift is designed for disabled use and should not be considered as a general purpose passenger lift. The lift has a remaining theoretical useful working life of 6 years before major refurbishment may be considered. Maintenance is being carried out by Murray Lift Services on approximately bi-monthly basis to an average standard.
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
Appendix A
APPENDIX A
SUMMARY SCHEDULE
River House, Broadford Business Park, Shalford, Guildford GU4 8EP
Summary of Costs Jan '14-'18
CJO/L130824September 2013issue 0 1 Appendix A
Jan-Dec '14 Jan-Dec '15 Jan-Dec '16
Jan-Dec '17 Jan-Dec '18 Jan-Dec '19- 24
Sub-Total £173,200.00 £29,300.00 £47,550.00 £25,550.00 £46,200.00 £104,400.00Allowance for Professional Fees
(15%)£25,980.00 £4,395.00 £7,132.50 £3,832.50 £6,930.00 £15,660.00
Total excluding VAT £199,180.00 £33,695.00 £54,682.50 £29,382.50 £53,130.00 £120,060.00
River House, Broadford Business Park, Shalford, Guildford GU4 8EP
Summary of Costs Jan '14-'18
CJO/L130824September 2013issue 0 2 Appendix A
SERVICE CHARGE YEAR Jan-Dec '14 Jan-Dec '15 Jan-Dec '16 Jan-Dec '17 Jan-Dec '18
COST(£) Excluding VAT £ 199,180 £ 33,695 £ 54,683 £ 29,383 £ 53,130
£-
£50,000
£100,000
£150,000
£200,000
£250,000
Jan-Dec '14 Jan-Dec '15 Jan-Dec '16 Jan-Dec '17 Jan-Dec '18
Tota
l Exc
ludi
ng V
AT
Service Charge Year
Planned Maintenance Expenditure Over 5 Years
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
Appendix B
APPENDIX B
PLANNED PREVENTATIVE MAINTENANCE SCHEDULE
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec '14 Jan-Dec '15
Jan-Dec '16
Jan-Dec '17 Jan-Dec '18
Jan-Dec '19- 24
1.0 FRONT ELEVATION
1.1 Masonry cladding External elevations are of stretcher bond masonry construction.
Generally the masonry appears sound but with some minor areas of efflorescence particularly around the parapets and some areas of staining around weep holes and parapets.
Clean down brickwork to remove all marks and staining.
2,500.00 2,500.00
1.2 Masonry cladding External elevations are of stretcher bond masonry construction.
1 No. redundant penetration was noted at low level together with a galvanised steel bracket from previously removed services.
Cut out and piece in cut bricks and remove bracket.
200.00
1.3 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The polyester powder coating has deteriorated through solar degradation.
Reapply polyester powder coating to worst affected casements.
8,000.00
1.4 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The gaskets likewise have deteriorated with age, leached or otherwise come adrift.
renew/ refix loose and defective gaskets.
1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
1.5 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
Individual blown or extensively leaking casements were noted throughout.
Renew individual blown or otherwise defective casements.
2,000.00 2,000.00 2,000.00 4,000.00
1.6 Masonry cladding. EPDM expansion joints within the brickwork.
Currently in fair condition but joint has opened up.
Cut out and renew expansion joint.
750.00
1.7 Emergency Egress routes.
A painted steel spiral fire escape staircase with chequer plate treads has been provided to the front elevation serving the first Floor.
Decorative finishes are deteriorating.
Redecorate on a cyclical basis.
1,200.00 1,200.00 1,200.00
1.8 Reception Curtain walling
The Principal entrance is provided with single glazed curtain walling as before noted and double pivot hinged entrance doors.
Condensation was noted to 1 No. high level pane of glass and is likely to occur elsewhere.
Renew defective casements. 5,000.00 5,000.00 5,000.00 10,000.00
1.9 Reception Curtain walling
The Principal entrance is provided with single glazed curtain walling as before noted and double pivot hinged entrance doors.
Pivot hinged doors heavily trafficked.
Undertake on-going repairs to the doors as necessary.
200.00 200.00 200.00 200.00 200.00 1,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
1.10 Reception Curtain walling
The Principal entrance is provided with curtain walling as before noted and double pivot hinged entrance doors.
Joints have opened up between a number of transems and mullions and further repairs to the curtain walling are going to prove necessary.
Undertake localised repairs to curtain walling including renewal of gaskets and putties as required.
500.00 500.00 500.00 1,000.00
1.11 Entrance canopy. Painted steel and glass canopy partially cantilevered and partially supported by tensile steel rods bolted back to the curtain walling system above.
areas of spot corrosion were noted.
Remove all corrosion and redecorate.
1,200.00
1.12 Reception Curtain Walling
4 No. smoke vents were noted at high level comprising louvered glazing.
Deterioration likely over time.
Renew smoke vents. 6,000.00
1.13 Entrance canopy. Painted steel and glass canopy partially cantilevered and partially supported by tensile steel rods bolted back to the curtain walling system above.
Bolt restraint ties. Undertake pull tests on a cyclical basis.
200.00 200.00 200.00 200.00 200.00 1,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
2.0 ROOFS
2.1 Principal Roof (profiled metal sheet covered pitches).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
Missing caps to holding down bolts.
Renew missing cover caps and corroded holding down bolts.
1,500.00
2.2 Principal Roof (profiled metal sheet covered pitches).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
Cut-edge corrosion. Treat cut-edge corrosion. 20,000.00
2.3 Principal Roof (profiled metal sheet covered pitches).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
Wide spread moss and lichen growth.
Clean down roof coverings to remove all moss and lichen growth.
8,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
2.4 Principal Roof (profiled metal sheet covered pitches).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
If extensive works prove necessary consideration should be given to over cladding areas of the pitched roof and upgrading the insulation.
Over clad pitched roofs (not carried through to collection).
(100,000.00)
2.5 Principal Roof (profiled metal sheet covered pitches).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
The roofs are quite awkward in terms of their construction and access to the same for repairs will require multiple lifts of scaffolding.
Access to various roof pitches etc.
15,000.00
2.6 Principal roof (glazed sections).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
Condensation was noted to 1 No. high level pane of glass and is likely to occur elsewhere.
Renew defective casements. 12,000.00 12,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
2.7 Principal roof (glazed sections).
The pitched sections of the roofs comprise a mixture of built up plastisol coated profiled metal sheeting and pitched glazed roofs of the same construction as the curtain walling.
Joints have opened up between a number of transems and mullions and further repairs to the curtain walling are going to prove necessary.
Undertake localised repairs to curtain walling including renewal of gaskets and putties as required.
6,000.00 6,000.00
2.8 Principal Roof (flat asphalt).
The flat sections of the roofs are asphalt covered.
The asphalt covering has deteriorated.
Overlay existing asphalt. Consider upgrading insulation as part of the works.
25,000.00
2.9 Principal Roof (flat profiled metal sheeting).
A small section of profiled metal sheet flat roof is provided to the rear of the building.
Widespread leaks and poor quality lead flashings.
strip off and renew roof coverings and associated upstands and flashings.
5,000.00
2.10 Roof top plant enclosure.
Asphalt covering. Localised deterioration, crazing etc of asphalt.
Undertake localised repairs to asphalt.
2,000.00 2,000.00
2.11 Roof top plant enclosure.
Rendered perimeter walls.
Localised areas of cracking/ live render.
Cut out and renew cracked/ live render.
500.00 500.00
3.0 LEFT-HAND SIDE
3.1 Masonry cladding External elevations are of stretcher bond masonry construction.
Generally the masonry appears sound but with areas of efflorescence particularly around the parapets and some areas of staining around weep holes and parapets.
Clean down brickwork to remove all marks and staining.
1,200.00 1,200.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
3.2 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The polyester powder coating has deteriorated through solar degradation.
Reapply polyester powder coating to worst affected casements.
4,000.00
3.3 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The gaskets are in poor condition, leached or otherwise come adrift.
renew/ refix loose and defective gaskets.
2,000.00
3.4 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling
Individual blown or extensively leaking casements were noted throughout.
Renew individual blown or otherwise defective casements.
2,000.00 2,000.00 6,000.00
3.5 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
Window units incorporate opening casements.
Undertake repairs to opening casements as required.
400.00 400.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
3.6 Foyer The principal entrance to this elevation comprises a more recent steel framed and structural glass foyer.
The underlying steel frameworks is suffering spot corrosion
Remove all spot corrosion and redecorate steel frame.
250.00
3.7 Foyer The principal entrance to this elevation comprises a more recent steel framed and structural glass foyer. and mastics and sealants will require renewal.
Mastics and sealants are deteriorating.
Renew mastics and sealants. 250.00
4.0 REAR ELEVATION
4.1 Masonry cladding External elevations are of stretcher bond masonry construction.
Generally the masonry appears sound but with areas of efflorescence particularly around the parapets and some areas of staining around weep holes and parapets.
Clean down brickwork to remove all marks and staining.
2,500.00 2,500.00
4.2 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The polyester powder coating has deteriorated through solar degradation.
Reapply polyester powder coating to worst affected casements.
8,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
4.3 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
The gaskets are in poor condition, leached or otherwise come adrift.
renew/ refix loose and defective gaskets.
1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
4.4 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
Individual blown or extensively leaking casements were noted throughout.
Renew individual blown or otherwise defective casements.
2,000.00 2,000.00 2,000.00 4,000.00
4.5 Fenestration Fenestration is provided by individual polyester powder coated aluminium framed double glazed units and areas of curtain walling.
Window units incorporate opening casements.
Undertake repairs to opening casements as required.
600.00 600.00
4.6 Emergency Egress routes.
A painted steel spiral fire escape staircase with chequer plate treads has been provided serving the first Floor.
Decorative finishes are deteriorating.
Redecorate on a cyclical basis.
1,200.00 1,200.00 1,200.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
4.7 Sub-station An UK power networks sub-station is located to the rear of the property in a brick enclosure with timber gated access.
Masonry enclosure is suffering friable and spalling mortar.
Repoint enclosure (ownership and liability to be ascertained).
200.00
4.8 Sub-station An UK power networks sub-station is located to the rear of the property in a brick enclosure with timber gated access.
Timber gates are in poor condition.
Renew timber gates (ownership and liability to be ascertained).
300.00
4.9 Fenestration 2 No. windows to the rear elevation have been applied with an opaque film.
Opaque film is peeling. Strip off opaque film and make good.
150.00
4.10 Masonry cladding. External elevations are of stretcher bond masonry construction.
Pointing to the high level brickwork to the rear right handside window unit has entirely spalled away and requires re-pointing with additional areas of spalling, mortar in the surrounding brickwork which also requires re-pointing.
Cut out defective masonry and repoint brickwork.
600.00
5.0 RIGHT-HAND SIDE
5.1 Curtain walling Curtain walling is provided to the entire elevation.
Condensation was noted to individual casements and is likely to occur elsewhere.
Renew defective casements. 5,000.00 5,000.00 5,000.00 10,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
5.2 Curtain walling Curtain walling is provided to the entire elevation.
Joints have opened up between a number of transems and mullions and further repairs to the curtain walling are going to prove necessary.
Undertake localised repairs to curtain walling including renewal of gaskets and putties as required.
500.00 500.00 1,000.00
5.3 Curtain walling Curtain walling is provided to the entire elevation.
The polyester powder coating has deteriorated through solar degradation.
Reapply polyester powder coating to worst affected casements.
1,000.00 1,000.00
5.4 Curtain walling Curtain walling is provided to the entire elevation.
The gaskets likewise have deteriorated with age, leached or otherwise come adrift.
renew/ refix loose and defective gaskets.
6,000.00 6,000.00
6.0 COMMON PARTS
6.1 Ceilings A mixture of mineral fibre suspended and plasterboard ceilings.
Areas of damp staining from rainwater penetration through the roof coverings and perimeter fenestration.
Renew defective areas of ceiling.
2,500.00
6.2 Walls Painted, plastered walls.
Areas of damp staining from rainwater penetration through the roof coverings and perimeter fenestration.
Cut out and renew defective areas of plaster.
1,000.00
6.3 Previously painted surfaces.
Walls, ceilings, skirting's, doors, frames and architraves.
Decoration required on a cyclical basis.
Redecorate on a cyclical basis.
12,000.00 12,000.00
6.4 Kitchenette Vinyl floor, tiled splashback, floor and wall units, worktop, ss sink and faucette.
Currently in fair condition. Undertake repairs as necessary.
500.00 500.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
6.5 WC Vinyl floors, tiled walls, IPS system and vanities, vitreous chins sanitary ware.
Currently in fair condition. Undertake sundry repairs/ refurbishment.
500.00 500.00 10,000.00
6.6 Plant room Painted concrete floor, blockwork walls.
Epoxy resin to concrete floor is deteriorating.
Renew floor paint. 1,200.00 1,200.00
6.7 Plant room Painted concrete floor, blockwork walls.
Steelwork is in poor decorative condition
Redecorate steelwork. 800.00 800.00
7.0 MECHANICAL
7.1 Boiler No 1 1st floor plant room Manufacturer Hamworthy model UR365 Rated heat output approximately 80kW. This unit is approximately 25 years old and is in moderate condition commensurate with its age.
The boiler has reached the end of its economic life. Allowance made for the replacement of the boiler, flue, pipework modifications, insulation, controls etc
15,000.00
7.2 Boiler No 2 1st floor plant room Manufacturer Hamworthy model UR365 Rated heat output approximately 80kW. This unit is approximately 25 years old and is in moderate condition commensurate with its age.
The boiler has reached the end of its economic life. Allowance made for the replacement of the boiler, flue, pipework modifications, insulation, controls etc
15,000.00
7.3 Boiler No 3 1st floor plant room Manufacturer Hamworthy model UR365 Rated heat output approximately 80kW. This unit is approximately 25 years old and is in moderate condition commensurate with its age
The boiler has reached the end of its economic life. Allowance made for the replacement of the boiler, flue, pipework modifications, insulation, controls etc
15,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
7.4 Primary heating pump No1
1st floor plant room Manufactured by Grundfos model 0940287P211 080002-5. This unit is approximately 3 years old and considered to be in good condition.
No remedial/ replacement works are anticipated during the period of this report.
7.5 Primary heating pump No2
1st floor plant room Manufactured by Grundfos model 0940287P211 080002-5. This unit is approximately 3 years old and considered to be in good condition.
No remedial/ replacement works are anticipated during the period of this report.
7.6 Constant Temperature heating pump No 1
1st floor plant room Manufactured by Grundfos model UPSD-40-60. This unit is approximately 3 years old and considered to be in good condition.
Replace the unit with new more energy efficient unit
1,000.00
7.7 Constant Temperature heating pump No 2
1st floor plant room Manufactured by Grundfos model UPSD-40-60. This unit is approximately 6 years old and considered to be in moderate condition.
Replace the unit with new more energy efficient unit
1,000.00
7.8 Variable temperature pump No 1
1st floor plant room Manufactured by Grundfos model 0940287P211 080002-5. This unit is approximately 3 years old and considered to be in good condition.
No remedial/replacement works are anticipated during the period of this report.
7.9 Variable temperature pump No 2
1st floor plant room Manufactured by Grundfos model 0940287P211 080002-5. This unit is approximately 3 years old and considered to be in good condition.
No remedial/replacement works are anticipated during the period of this report.
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
7.10 Pressurisation Unit 1st floor plant room Manufactured by Armstrong unit and includes an 80 litre expansion vessel. This unit is approximately 10 years old and is in moderate condition commensurate with its age. Signs of corrosion around the units casing.
Replace as part of the boiler upgrade work
1,500.00
7.11 Toilet supply fan unit
1st floor roof Manufactured by Entech model unknown. This unit is approximately 12 years old and is in moderate condition commensurate with its age. However the unit is showing signs of early corrosion.
Allowance to replace the unit with new.
3,000.00
7.12 Toilet extract fan unit
1st floor roof Manufactured by Entech model unknown. This unit is approximately 12 years old and is in moderate condition commensurate with its age. However the unit is showing signs of corrosion.
Allowance to replace the unit with new.
3,000.00
7.13 Perimeter continuous convector unit
Ground floor office accommodation
Manufacturer and model unknown. Visually inspected no defects noted.
Chemically clean and flush pipework as part of boiler replacement work
2,000.00
7.14 Perimeter continuous convector unit
1st floor office accommodation
Manufacturer and model unknown. Visually inspected no defects noted.
Chemically clean and flush pipework as part of boiler replacement work
2,000.00
7.15 Single panel radiator c/w TRV
Ground floor ladies and gentlemen's toilets
Manufacturer and model unknown. Visually inspected no defects noted.
Chemically clean and flush pipework as part of boiler replacement work
200.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
7.16 Single panel radiator c/w TRV
1st floor ladies and gentlemen's toilets
Manufacturer and model unknown. Visually inspected no defects noted.
Chemically clean and flush pipework as part of boiler replacement work
200.00
7.17 4 way blower comfort cooling indoor unit
Ground floor office accommodation
Manufactured by Sanyo Model unknown. These units are approximately 9 years old and considered to e in moderate condition commensurate with their age.
No remedial/replacement works are anticipated during the lifecycle period of the report.
7.18 4 way blower comfort cooling indoor unit
1st floor office accommodation
Manufactured by Sanyo Model unknown. These units are approximately 9 years old and considered to e in moderate condition commensurate with their age.
No remedial/replacement works are anticipated during the lifecycle period of the report.
7.19 Air cooled Condenser unit CD1 (Serving Ground Floor office)
1st floor roof Manufactured by Sanyo Model SPW-CR1154GDXH8, Refrigerant R410a. This unit is approximately 9 years old and is considered to be in moderate condition commensurate with its age.
Replace refrigerant pipework lagging which has deteriorated.
500.00
7.20 Air cooled Condenser unit CD2 (Serving Ground East)
2nd floor roof Manufactured by Sanyo Model SPW-CR1154GDXH8, Refrigerant R410a. This unit is approximately 9 years old and is considered to be in moderate condition commensurate with its age.
Replace exposed refrigerant pipework lagging which has deteriorated.
500.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
7.21 Air cooled Condenser unit CD3 (Serving Ground West)
3rd floor roof Manufactured by Sanyo Model SPW-CR1154GDXH8, Refrigerant R410a. This unit is approximately 9 years old and is considered to be in moderate condition commensurate with its age.
Replace refrigerant pipework lagging which has deteriorated.
500.00
7.22 Air cooled Condenser unit CD 4 (1st floor Master)
4th floor roof Manufactured by Sanyo Model SPW-CR1154GDXH8, Refrigerant R410a. This unit is approximately 9 years old and is considered to be in moderate condition commensurate with its age.
Replace refrigerant pipework lagging which has deteriorated.
500.00
7.23 Air cooled Condenser unit CD4 (1st floor slave)
5th floor roof Manufactured by Sanyo Model SPW-CR1154GDXH8, Refrigerant R410a. This unit is approximately 9 years old and is considered to be in moderate condition commensurate with its age.
Replace refrigerant pipework lagging which has deteriorated.
200.00
8.0 ELECTRICAL
8.1 Lighting Ground Floor Office Accommodation
600 x 600 lay in type fluorescent luminaires complete with Cat 2 type diffusers Manufacture and model unknown. The units appear to be approximately 10 years old and are in moderate condition commensurate with their age
No remedial/replacement works are anticipated during the period of this report except periodic relamping.
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
8.2 Lighting 1st floor office accommodation
60 x 600 lay in type fluorescent luminaires complete with Cat 2 type diffusers Manufacture and model unknown. The units appear to be approximately 10 years old and are in moderate condition commensurate with their age.
No remedial/replacement works are anticipated during the period of this report except periodic relamping.
8.3 Lighting Ground and 1st floor toilet accommodation
150mm diameter downlighters complete with compact energy saving fluorescent tube. These units are approximately 10 years old and are in moderate condition commensurate with their age.
No remedial/replacement works are anticipated during the period of this report except periodic relamping.
8.4 Small power Ground and 1st floor office accommodation
Compartmentalised electrical floor boxes make and model unknown.
No remedial/replacement works are anticipated during the period of this report except periodic testing.
8.5 Electric shower unit
Ground floor Gentlemen's toilet
Manufactured by Aura, model 200. This unit is approximately 1 years old and considered to be in good condition commensurate with its age.
Replace the unit with new. 100.00
8.6 MCC Panel 1st floor plant room Manufacturer and model unknown. Control panel serves the main heating and comfort cooling plant and incorporates a Trend IQ 220 outstation module.
Upgrade as part of boiler replacement works
5,000.00
River House, Broadford BusinessPark, Shalford, Guildford GU4 8EP
Planned Preventative Maintenance
CJO/L130820September 2013issue 0 Appendix B
9.0 PUBLIC HEALTH
9.1 Point of use hot water storage heater
1st floor cleaners cupboard
Manufactured by Heatrae Sadia model C3M 50 litre capacity serving 1st and ground floor. This unit is approximately 3 years old and was considered to be in moderate condition commensurate with its age.
Allowance made for the replacement of the heater in year 10
1,500.00
10.0 FIRE PROTECTION
10.1 Fire alarm system Ground and first floor
Estimated age 10 years. Allowance made for panel replacement year 5 and devices in year 10.
1,500.00 2,000.00
11.0 LIFT INSTALLATIONS
11.1 Lifts Foyer Disabled, platform lift Refurbishment 20,000.00
Sub-total 173,200.00 29,300.00 47,550.00 25,550.00 46,200.00 104,400.00
Allowance for Professional Fees (15%)
25,980.00 4,395.00 7,132.50 3,832.50 6,930.00 15,660.00
TOTAL Excluding VAT 199,180.00 33,695.00 54,682.50 29,382.50 53,130.00 120,060.00
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
Appendix C
APPENDIX C
SITE PLAN
20 0 20 40 60 80 100
Metres
NB
Responsibility is not accepted for
errors made by others scaling from
this drawing. All construction
information should be taken from
figured dimensions only
A3
Revision
Date
Title
Client
Project
Surveyor
Drawing Number
Scale
Drawn by
Rev Description By Date
BROADFORD PARK, SHALFORD,
GUILDFORD, GU4 8EP
ZURICH ASSURANCE LTD LIFE
RIVER HOUSE SITE
LOCATION PLAN
DRF CJO SEPT 2013
1:1250 @ A3
L130820-01
NOTE :
WHEN PRINTING PDF PLANS, ALWAYS ENSURE THAT PAGE
SCALING (IN PRINTER DIALOGUE BOX) IS SET TO NONE.
USING FIT TO PAGE WILL INTRODUCE SCALING ERRORS.
River House, Broadford Business Park, Shalford, Guildford, GU4 8EP
PPM Report
CJO/L130820 September 2013
Appendix D
APPENDIX D
PHOTOGRAPHS
River House, Broadford Business Park, Shalford, Guildford GU4 8EP
Photograph Schedule
CJO/L130820 September 2013
Appendix D
Photograph No. 1 Front elevation
Photograph No. 2 Left-hand side elevation
Eastgate Court, 195-213 High Street, Guildford, Surrey
Photograph Schedule
CJO/L130820 September 2013
Photograph No. 3 Rear elevation
Photograph No. 4 Rear elevation
Eastgate Court, 195-213 High Street, Guildford, Surrey
Photograph Schedule
CJO/L130820 September 2013
Photograph No. 5 Roof
Photograph No. 6 Roof
Planned Preventative Maintenance Report
Of
Northfield and Southfield House, Broadford Park, Broadford Road,
Shalford, Guildford, GU4 8EP
On Behalf Of
Zurich Assurance Ltd Life
JJB/152160 February 2016
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
CONTENTS
1.0 Introduction and Instructions 1
2.0 General Description 2
3.0 Summary 2
APPENDICES
Appendix A - Summary Schedule Appendix B - Planned Preventative Maintenance Schedules Appendix C - Site Plan Appendix D - Photographs
JJB/152160 February 2016
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
1.0 Introduction and Instructions
In accordance with instructions received from Zurich Assurance Ltd Life, we have prepared a Planned Preventative Maintenance Report for Northfield & Southfield House, Broadford Park, Shalford. The aim of the Report is to advise on the general state of repair of the property and the liabilities for future maintenance items. We carried out our inspection of the property on Monday 18th January 2016. The weather conditions were dry and cold but cloudy. For reference purposes we have noted that the front elevation faces west (please see the attached site plan). The scope of our survey includes all the common parts of the building and site including the: roofs; elevations; car park; shared mechanical/electrical and ancillary common parts internally. We have not included the internal areas of the tenanted areas in the report as it is assumed that the tenants have responsibility of repair under the terms of the lease. We should however note that an internal inspection of the cladding and roof apex have been undertaken to improve our understanding of the general state of repair. We are unable to report on areas that are covered, not exposed or inaccessible and therefore cannot report that these areas are free from infestation, rot or other defects. Where we believe it prudent to undertake further inspection of the property, this has been indicated this in the schedule. The schedule covers the service charge years between 2016 and 2020. The schedule also indicates the years between 2021 and 2025 in order to identify ongoing cyclical repair items such as decorations, but these costs should not be relied upon at this time. We recommend that a full inspection of the property be undertaken during 2021 in order to update the schedule and associated costs. Interim budget costs should be subject to an annual desk-top review in line with BCIS cost indices in order to reflect increasing tender prices. All costs shown are for budgetary purposes, these are not based on builder’s cost assessments or quantity surveyor’s cost plans. The Report is not intended to be an exhaustive list of repairs and does not highlight minor defects and items of a house-keeping nature which are dealt with on a reactive or day-to-day basis by the existing site management. However we have included for larger repair items for action by the Site Manager, but which may require building surveying support, or can be included within a larger contract if appropriate.
We have indicated professional fees at a flat rate of 15%. This figure takes into consideration the possibility of other consultants becoming involved and the size of the contract. You should be aware that the level of fees may vary depending on the size and scope of each individual contract undertaken during a specific year. It should also be noted that cost savings might be possible if several sections of work are undertaken as part of the same contract; this has been incorporated into the schedule for increased economy of scale. In accordance with our standard practice, we would point out that this Report is purely based on our site inspection of the premises and the information made available to us at that time, which we assume to be correct. We would also point out that the Report is for the benefit only of the party to whom it is addressed, and that this firm cannot be held responsible to any third party for the whole or any part of its’ contents.
JJB/152160 February 2016
1
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
2.0 General Description
Northfield and Southfield House is a two storey, interconnected office block built in the 1980s; the structure consists of a mix of metal clad and brickwork walls with profiled metal sheeting on the roof. Located on the Broadford Road in Shalford, the buildings are surrounded by three other units of similar design, as part of a Broadford business park. The river Wey runs adjacent to the site between Guilford and Shalford. The building and site was in a fair state of repair during the inspection. Concerns have been raised over the condition of the external cladding; sealant degradation, glazing film damage, panel corrosion and unfixing were some of the defects noted. It has also been previously noted by the tenants that intermittent water ingress has been occurring, specifically around the roof apex. We would suggest that a cladding consultant undertakes an inspection to verify condition details and any future action to be put into place. The cladding costs in the schedule have been divided into a yearly sum for full replacement; this cost can however be spread over the prospective maintenance period at the client’s request.
3.0 Summary The Schedule commences in January 2016. The Landlords service charge year runs from 1 January to 31 December on an annual basis. The total yearly figures are rounded to the nearest £50.00 - £100.00. The rounding up or down of the budget should take into consideration the overall service charge level and the scope of the works being undertaken for budget purposes. The breakdown of the envisaged costs for the relevant years is as follows:
Service Charge
Year
Northfield House
Southfield House
External Common Areas
Mechanical & Electrical
2016 £115,800.00 £6,100.00 £7,750.00 £30,500.00 2017 £11,350.00 £95,050.00 £8,950.00 £55,200.00 2018 £2,100.00 £7,850.00 £9,200.00 £24,150.00 2019 £3,050.00 £1,650.00 £3,950.00 £75,900.00 2020 £14,350.00 £7,750.00 £10,850.00 £6,350.00
Within the first five years there are three repair items that are a priority to the client. As mentioned previously the cladding is the most costly and pressing fabric element to be addressed within the first five years, with an estimated cost to repair of £180,000 including access. As part of the general fabric all of the polyester powder coated window frames require redecoration and the window glazing requires re-filming. According to the mechanical & electrical report, a large budget is required to replace plant that is reaching the end of its life; the associated costs within the first five years amount to £170,000. It should be noted that the majority of the scheduled work within the first five years is designed as remedial decoration other than the works mentioned above. Items within the first part of the schedule will be open to timescale variations depending on general condition or budgetary timings etc. Major works to the external common areas are thought to be required between years five and ten. This includes replacing the wearing course of tarmacadam, repairs to a significant proportion of the brick paving and various other external items; the cost total for these works comes to £55,000. No proposed changes to the building structure, façade or internal areas where highlighted during the writing of this schedule and have therefore not been allowed for.
JJB/152160 February 2016
2
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
APPENDIX A
SUMMARY SCHEDULE
JJB/152160 February 2016
Appendix A
Northfield Southfield House, Broadford Park, Shalford Summary of Costs
JJB/152160February 2016Rev 1 1 Appendix A
Jan-Dec' 2016
Jan-Dec' 2017
Jan-Dec' 2018
Jan-Dec' 2019
Jan-Dec' 2020
Jan-Dec' 2021-2025
Northfield House £115,770.50 £11,350.50 £2,058.50 £3,013.00 £14,317.50 £15,122.50
Southfield House £6,072.00 £95,024.50 £7,831.50 £1,644.50 £7,728.00 £22,367.50
External Common Areas £7,705.00 £8,912.50 £9,200.00 £3,910.00 £10,810.00 £60,432.50
Mechanical & Electrical £30,475.00 £55,200.00 £24,150.00 £75,900.00 £6,325.00 £38,525.00
Total excluding VAT £160,022.50 £170,487.50 £43,240.00 £84,467.50 £39,180.50 £136,447.50
SERVICE CHARGE YEAR Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025 £ 136,448
COST(£) Excluding VAT £ 160,023 £ 170,488 £ 43,240 £ 84,468 £ 39,181
£-
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Planned Maintenance Expenditure Over 10 Years
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
APPENDIX B
PLANNED PREVENTATIVE MAINTENANCE SCHEDULE
JJB/152160 February 2016
Appendix B
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
NORTHFIELD HOUSE
1.0 External Areas
1.1 Roof
1.1.1 Roof Covering Elastomeric deck. Heavily stained in certain areas, specifically around the plant equipment. Material finish degrading.
Deep clean in years 1, 5 & 9. Allow to part replace roof deck in years 2, 5 & 8.
£ 850 £ 1,700 £ 2,500 £ 2,500
1.1.2 Metal profiled cladding. Light staining noted. Intermittent hairline cracking throughout.
Deep clean in years 2, 5 & 8. Allow to replace broken cladding in years 1, 5 & 9.
£ 1,200 £ 980 £ 2,180 £ 2,180
1.1.3 Roof apex capping. Light staining noted. Deep clean in years 3 & 7. Allow provisional sum to refix loose capping in year 5.
£ 220 £ 560 £ 220
1.1.4 Roof apex seals. Rubber seals to window frame are starting to degrade.
Allow provisional repairs and replacement across the 10 year period.
£ 300 £ 300 £ 600
1.1.5 Other Louvre vents. Paint finish wearing. Redecorate in year 2. £ 250
1.1.6 Plastic walkway matting. Fair condition. Allow to check condition & part replace in year 5.
£ 300
1.2 Rainwater Goods
1.2.1 Downpipes Internal downpipes. Unable to Inspect. Ensure downpipes are clear of debris in years 3, 6 & 9.
£ 550 £ 1,100
1.2.2 Drainage Covers Upvc drainage covers. Light staining noted, otherwise fair condition.
Replace covers in year 5. £ 200
1.3 Walls
1.3.1 Brickwork Red brick fascia in stretcher bond.
Minor mortar degradation noted, specifically on the north elevation garage doors.
Allow for cyclical patch re-pointing.
£ 420 £ 420 £ 420
1.3.2 Wall Cladding Aluminium frame polyester powder coated frame.
Intermittent corrosion noted. Panels loose or missing and sealant degrading throughout.
Allow to completely overhaul frames, seals and fixed glazing.
£ 70,000
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
1.3.3 Movement Joints Rubberised seals. Fair condition. Replace in year 5. £ 500
1.4 Windows
1.4.1 Curtain Wall 16.No horizontal hung aluminium windows (1500x1200).
Fair condition. Allow to redecorate frames in year 2. Ease, adjust and replace solar film in years 4 & 8.
£ 1,500 £ 550 £ 550
1.4.2 17.No vertically hung aluminium windows (900x1500).
Fair condition. Allow to redecorate frames in year 2. Ease, adjust and replace solar film in years 4 & 8.
£ 1,200 £ 470 £ 470
1.4.3 Brickwork Wall 5.No arched aluminium windows (2100x3000).
Paint finish fading and weathered.
Allow to redecorate frames in year 2. Ease, adjust and replace solar film in years 4 & 8.
£ 750 £ 300 £ 300
1.5 Doors
1.5.1 Main Entrance Polyester powder coated aluminium double door.
Impact marked, weathered and corroded in areas, specifically on handles.
Allow to redecorate in year 1. Ease and adjust in years 3 & 7.
£ 250 £ 80 £ 80
1.5.2 North Exits 2.No arched aluminium double doors (2300x3000).
Impact damage and scuff marks noted.
Allow to redecorate in year 1. Ease and adjust in years 3 & 7.
£ 350 £ 160 £ 160
1.5.3 Metal rolling garage door. Fair condition. Allow to prepare and redecorate metal surface in year 5.
£ 300
1.5.4 East Exit Polyester powder coated aluminium single door.
Fair condition. Allow to redecorate in year 3. Ease and adjust in year 5.
£ 150 £ 80
1.5.5 South Exit Polyester powder coated aluminium single door.
Fair condition. Allow to redecorate in year 3. Ease and adjust in year 5.
£ 150 £ 80
1.6 Fixtures and Fittings
1.6.1 Fire Escape Stairwell
Steel framed. Metal work and paint finish corroding.
Allow to redecorate in with zinc based metal paint and test structure in years 2 & 7.
£ 700 £ 700
1.7 Access Costs
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
1.7.1 Scaffold. Standard, two storey required.
Required in year 1 to undertake cladding repairs.
£ 27,000
1.7.2 Access Platform. 25m platform required. Windows - Years 2,4 & 8. Movement joints - Year 5. Pointing - Years 2,5 & 8. Roof apex - Years 1,4 & 7.
£ 300 £ 1,300 1,000£ £ 700 £ 1,300
External Cost Total : £ 131,380
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
2.0 Internal Common Areas
2.1 Entrance Lobby and Stairs
2.1.1 Ceilings Aluminium cladding. Minor marks and dents noted; paint in good condition.
Allow to clean and part replace any damaged cladding in year 5.
£ 350
2.1.2 Mineral fibre ceiling tiles. 1.No damaged tile. Allow to replace tiles in years 1, 5 & 9. Clean ceiling grid in year 6.
£ 100 £ 100 £ 220
2.1.3 Walls Emulsion paint finish. Intermittent scuff marks. Allow to redecorate and undertake isolated repairs in years 2 & 7.
£ 500 £ 500
2.1.4 Brickwork cladding. Fair condition. Allow for patch repointing and cleaning in year 5.
£ 320
2.1.5 Varnished timber skirting boards.
Minor scuff marks and paint missing.
Allow for redecoration in years 2 & 7.
£ 250 £ 250
2.1.6 Floor Contract grade carpet tiles. Fair condition. Deep clean and treat surface in years 2 & 8. Replace in year 5.
£ 220 £ 2,600 £ 220
2.1.7 Entrance barrier matting. Stained. Deep clean and treat surface in years 1 & 7. Replace in year 5.
£ 90 £ 120 £ 90
2.1.8 Stairs Metal stair nosing's/ capping. Impact marks noted. Repair in year 5. £ 140
2.1.9 Painted steel handrail. Good condition. Clean and service in year 5. £ 350
2.1.10 Stainless steel wire balustrade.
Wires loose. Allow to tighten wires in years 1 & 6.
£ 230 £ 230
2.1.11 Doors 2No. timber single doors. Fair condition. Redecorate in year 5. £ 200
2.1.12 2No. timber doors with viewing panels.
Fair condition. Redecorate in year 5. £ 300
2.2 Plant Room
2.2.1 Ceiling Structural steel beams. Good condition. Redecorate in year 7. £ 600
2.2.2 Walls Concrete fairface blockwork walls.
Minor cracking noted. Allow to undertake isolated repointing in years 3,6 & 9.
£ 180 £ 360
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
2.2.3 Metal cladding. Fair condition. Clean in year 5. £ 150
2.2.4 Floor Vinyl. Dirty. Clean in years 2 & 6. £ 100 £ 100
2.2.5 Doors 1.No aluminium powder coated louvre door.
Paint finish wearing. Redecorate, ease and adjust in year 3.
£ 300
Internal Cost Total : £ 9,170
TOTAL COSTS Sub-total: £100,670.00 £9,870.00 £1,790.00 £2,620.00 £12,450.00 £13,150.00
Allowance for Professional Fees (15%)
£15,100.50 £1,480.50 £268.50 £393.00 £1,867.50 £1,972.50
TOTAL Excluding VAT: £115,770.50 £11,350.50 £2,058.50 £3,013.00 £14,317.50 £15,122.50
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
SOUTHFIELD HOUSE
3.0 External Areas
3.1 Roof
3.1.1 Roof Covering Elastomeric deck. Stained in areas, specifically around the plant. Material finish degrading in areas .
Deep clean in years 1 & 6. Allow to part replace roof deck in years 1, 5 & 9.
£ 1,400 £ 850 £ 1,400
3.1.2 Metal profiled cladding. Staining noted. Deep clean in year 3. Allow to replace broken cladding in year 6.
£ 330 £ 500
3.1.3 Roof apex capping. Light staining noted. Deep clean in year 3. Allow provisional sum to refix loose capping in year 6.
£ 200 £ 300
3.1.4 Roof apex seals. Rubber seals to window frame are starting to degrade.
Full replacement required in year 1 (water ingress noted internally). Repair in years 5 & 9.
£ 600 £ 280 £ 280
3.1.5 Other Louvre vents. Paint finish wearing. Redecorate in year 2. £ 250
3.1.6 Plastic walkway matting. Fair condition. Allow to check condition & part replace in year 5.
£ 300
3.2 Rainwater Goods
3.2.1 Downpipes Internal downpipes. Unable to Inspect. Ensure downpipes are clear of debris in years 3, 6 & 9.
£ 400 £ 800
3.2.2 Drainage Covers Upvc drainage covers. Light staining noted, otherwise fair condition.
Replace covers in year 5. £ 200
3.3 Walls
3.3.1 Brickwork Red brick fascia in stretcher bond.
Minor mortar degradation noted, specifically on the south elevation window headers.
Allow for cyclical patch re-pointing.
£ 300 £ 300 £ 300
3.3.2 Wall Cladding Aluminium frame polyester powder coated frame.
Intermittent corrosion noted. Panels loose or missing and sealant degrading throughout.
Allow to completely overhaul frames, seals and fixed glazing.
£ 65,000
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
3.3.3 Movement Joints Rubberised seals. Fair condition. Replace in year 5. £ 150
3.4 Windows
3.4.1 Curtain Wall 19.No horizontal hung aluminium windows (1500x1200).
Fair condition. Paint starting to fade.
Allow to redecorate frames in year 3. Ease, adjust and replace solar film in years 1 & 6.
£ 500 £ 1,600 £ 500
3.4.2 5.No vertically hung aluminium windows (900x1500).
Fair condition. Paint starting to fade.
Allow to redecorate frames in year 3. Ease, adjust and replace solar film in years 1 & 6.
£ 200 £ 400 £ 200
3.4.3 Brickwork Wall 2.No arched aluminium windows (2100x3000).
Fair condition. Paint starting to fade.
Allow to redecorate frames in year 2. Ease, adjust and replace solar film in years 4 & 9.
£ 300 £ 150 £ 150
3.5 Doors
3.5.1 Main Entrance Polyester powder coated aluminium double door.
Impact marked, weathered and corroded in areas.
Allow to redecorate in year 1. Ease and adjust in years 3 & 7.
£ 250 £ 80 £ 80
3.5.2 South Exit Polyester powder coated aluminium single door.
Fair condition. Allow to redecorate in year 4. Ease and adjust in year 5.
£ 150 £ 80
3.5.3 East Exit Polyester powder coated aluminium single door.
Fair condition. Allow to redecorate in year 4. Ease and adjust in year 5.
£ 150 £ 80
3.5.4 Polyester powder coated aluminium double door.
Fair condition. Allow to redecorate in year 4. Ease and adjust in year 5.
£ 250 £ 80
3.6 Fixtures and Fittings
3.6.1 Fire Escape Stairwell
Steel framed. Metal work and paint finish corroding.
Allow to redecorate in with zinc based metal paint and test structure in years 2 & 7.
£ 700 £ 700
3.7 Access Costs
3.7.1 Scaffold. Standard, two storey required.
Required in year 2 to undertake cladding repairs.
£ 15,000
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
3.7.2 Access Platform. 25m platform required. Windows - Years 1,3 & 6. Movement joints - Year 5. Pointing - Years 2,5 & 8. Roof apex - Years 3,5,6 & 9.
£ 800 £ 1,500 £ 700 £ 1,800
External Cost Total : £ 100,540
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
4.0 Internal Common Areas
4.1 Entrance Lobby and Stairs
4.1.1 Ceilings Aluminium cladding. Minor marks and dents noted; paint in good condition.
Allow to clean and part replace any damaged cladding in year 5.
£ 350
4.1.2 Mineral fibre ceiling tiles. Ceiling grid dirty. Tiles in good condition.
Clean ceiling grid in years 2 & 6. Allow to part replace tiles in years 3 & 7.
£ 150 £ 150 £ 300
4.1.3 Walls Emulsion paint finish. Intermittent scuff marks. Allow to redecorate and undertake isolated repairs in years 2 & 7.
£ 900 £ 900
4.1.4 Brickwork cladding. Fair condition. Allow to clean in year 3. Patch repoint in year 6
£ 200 £ 600
4.1.5 Floor Contract grade carpet tiles. Good condition. Deep clean and treat surface in year 3. Replace in year 7.
£ 330 £ 4,400
4.1.6 Entrance barrier matting. Fair condition. Deep clean and treat surface in years 3 & 6. Replace in year 7.
£ 100 £ 220
4.1.7 Stairs Metal stair nosing's/ capping. Impact marks noted. Repair in year 5. £ 140
4.1.8 Painted steel handrail. Good condition. Clean and service in year 5. £ 350
4.1.9 Stainless steel wire balustrade.
Fair condition. Allow to tighten wires in years 4 & 8.
£ 230 £ 230
4.1.10 Doors 7No. timber single doors. Fair condition. Redecorate in year 5. £ 700
4.1.11 2No. timber doors with viewing panels.
Fair condition. Redecorate in year 5. £ 300
4.2 Ground Floor WC's
4.2.1 Ceilings Mineral fibre ceiling tiles. Tiles intermittently lifted and damaged.
Allow to replace damaged tiles in year 1; fully replace in year 6. Clean ceiling grid in years 4 & 8.
£ 100 £ 200 £ 650
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
4.2.2 Walls Emulsion paint finish. Scuff marks to entrance. Repair cracking and redecorate walls in years 1, 5 & 9.
£ 450 £ 450 £ 450
4.2.3 Timber cladding. Fair condition. Redecorate in years 3 & 7. £ 100 £ 100
4.2.4 Floors Vinyl. Good condition. Allow for cyclical deep cleaning in years 3 & 6. Replace in year 8.
£ 120 £ 390
4.2.5 Sanitaryware Cubicle. Good condition. Allow to replace in year 6. £ 300
4.2.6 2.No toilets and urinal. Fair condition. Allow for cyclical deep cleaning and repair.
£ 180 £ 180
4.2.7 Wash basins and work tops. Fair condition. Allow for cyclical deep cleaning.
£ 100 £ 100
4.2.8 Doors 2No. timber single doors. Fair condition. Redecorate in years 3 & 7. £ 200 £ 200
4.3 First Floor WC's
4.3.1 Ceilings Mineral fibre ceiling tiles. Tiles intermittently damaged and stained.
Allow to replace damaged tiles in year 1; fully replace in year 5. Clean ceiling grid in years 3 & 8.
£ 100 £ 250 £ 500 £ 250
4.3.2 Walls Emulsion paint finish. Scuff marks to entrance and minor cracking noted.
Repair cracking/ impact damage and redecorate walls in years 1, 5 & 9.
£ 600 £ 600 £ 600
4.3.3 Timber cladding. Fair condition. Redecorate in years 3 & 7. £ 100 £ 100
4.3.4 Floors Vinyl. Good condition. Allow for cyclical deep cleaning in years 3 & 6. Replace in year 8.
£ 150 £ 450
4.3.5 Sanitaryware Cubicle. Good condition. Allow to replace in year 9. £ 300
4.3.6 2.No toilets and urinal. Fair condition. Allow for cyclical deep cleaning and repair.
£ 180 £ 180
4.3.7 4.No wash basins and work tops.
Fair condition. Allow for cyclical deep cleaning.
£ 100 £ 100
4.3.8 Doors Timber single door. Fair condition. Redecorate in years 3 & 7. £ 100 £ 100
4.4 Shower Rooms
4.4.1 Ceilings Emulsion paint finish. Fair condition. Redecorate in years 4 & 8. £ 270 £ 270
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
4.4.2 Walls Ceramic wall tiles. Fair condition. Re-grout wall tiles as required.
£ 360 £ 360
4.4.3 Emulsion paint finish. Fair condition. Allow for cyclical deep cleaning.
£ 250 £ 250
4.4.4 Floors Vinyl. Good condition. Allow for cyclical deep cleaning in years 4 & 8. Replace in year 8.
£ 120 £ 120
4.4.5 Sanitaryware 2.No shower cubicles. Fair condition. Allow for cyclical deep cleaning.
£ 100 £ 100
Internal Cost Total : £ 21,780
Sub-total £5,280.00 £82,630.00 £6,810.00 £1,430.00 £6,720.00 £19,450.00
Allowance for Professional Fees (15%)
£792.00 £12,394.50 £1,021.50 £214.50 £1,008.00 £2,917.50
TOTAL Excluding VAT £6,072.00 £95,024.50 £7,831.50 £1,644.50 £7,728.00 £22,367.50
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
5.0 EXTERNAL COMMON AREAS
5.1 Hardstandings
5.1.1 Car Park Deck Tarmacadam deck. Intermittent cracking noted. Patch repairs required in years 2, 5 & 8. Allow to replace wearing course in year 10.
£ 1,500 £ 1,500 £ 20,500
5.1.2 Brick herringbone paving. Soiled and uneven brickwork in areas; otherwise fair condition.
Patch repair and jet wash in years 3, 6 & 9.
£ 8,000 £ 16,000
5.1.3 Stone cobbled paving. Intermittently loose and uneven.
Allow to re-bed loose stones in year 1. Undertake replacement in year 6.
£ 800 £ 1,600
5.1.4 Kerbs Concrete kerb stones. Intermittent impact damage noted as well as missing mortar.
Allow to replace or repair kerbing as required.
£ 2,000 £ 2,000 £ 4,000
5.2 Soft Landscaping
5.2.1 Soft Landscaping Grass and shrubs. No action currently required. Allow sum for general maintenance in year 5.
£ 400
5.2.2 Gravel paths. No action currently required. Allow to maintain gravel surfaces in years 2 & 6.
£ 250 £ 250
5.3 Externals Other
5.3.1 Drainage Estimated 14.No iron rainwater drainage grates.
Covers have sunk. Re-bed 4.No sunken covers. Replace 50% in year 10.
£ 800 £ 1,400
5.3.2 Estimated 20.No Iron manhole covers.
Covers have sunk. Re-bed 5.No sunken covers. Replace 50% in year 8.
£ 1,000 £ 2,000
5.3.3 Bollards 25.No timber bollards. Timber is starting to rot. Replace in year 1. Redecorate with zinc based paint in year 6.
£ 2,700 £ 2,000
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
5.3.4 16.No metal bollards. Impact damaged. Metal covers starting to corrode.
Replace in year 2. £ 3,000
5.3.5 8.No Upvc bollards. Fair condition. Replace in year 4. £ 500
5.3.6 Lights 24.No metal lamp posts. Good condition. Prepare and redecorate with zinc based paint in year 4.
£ 7,500
5.3.7 3.No External down lighters. Good condition. Allow to redecorate in year 4. £ 500
5.3.8 Boundary line Timber post fence. Fair condition. Assumed within the landlords demise. Redecorate on one side in years 2, 6 & 10.
£ 2,000 £ 4,000
Brickwork wall. Minor mortar degradation. Allow to patch re-point as required.
£ 400 £ 400 £ 800
Sub-total £6,700.00 £7,750.00 £8,000.00 £3,400.00 £9,400.00 £52,550.00
Allowance for Professional Fees (15%)
£1,005.00 £1,162.50 £1,200.00 £510.00 £1,410.00 £7,882.50
TOTAL Excluding VAT £7,705.00 £8,912.50 £9,200.00 £3,910.00 £10,810.00 £60,432.50
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
6.0
6.1 Northfield House
6.1.1 Roof plant LTHW heating pumps Primary pump No2.
Leaking mechanical seal. Repair or replace as required. £ 3,000
6.1.2 LTHW heating pumps VT Zone 1 pump No1.
Leaking mechanical seal. Repair or replace as required. £ 3,000
6.1.3 Gas boiler. Original equipment end of life.
Replace equipment. £ 7,000
6.1.4 LTHW distribution system. Original equipment end of life.
Replace equipment. £ 20,000
6.1.5 LTHW heating pumps VT Zone 2 pump No2.
Original equipment end of life.
Replace equipment. £ 3,000
6.1.6 LTHW pressurisation unit. Original equipment end of life.
Replace equipment. £ 3,000
6.1.7 Hot water heater - cistern type.
Original equipment end of life.
Replace equipment. £ 3,000
6.1.8 Toilet supply and extract ventilation.
Original equipment starting to show signs of wearing.
Replace equipment. £ 10,000
6.1.9 Ground floor Main electrical switchboard. Original equipment starting to show signs of wearing.
Replace equipment. £ 10,000
6.1.10 Electrical distribution system. Original equipment starting to show signs of wearing.
Replace equipment. £ 10,000
6.1.11 Electrical distribution boards. Original equipment starting to show signs of wearing.
Replace equipment. £ 4,000
6.1.12 General Electrical system. Certificate of inspection and test in accordance with BS7671 expires 2019.
Test and inspect electrical distribution system in accordance with BS7671, repairs as necessary.
£ 5,000 £ 5,000
6.1.13 Electrical system. Repairs and replacements following inspection and test.
Complete cyclical repairs and replacements.
£ 5,000 £ 5,000
6.1.14 Gas distribution. Corroded distribution pipework.
Replace pipework. £ 10,000
6.1.15 LTHW radiators. Original equipment end of life.
Replace equipment. £ 9,000
MECHANICAL & ELECTRICAL
Northfield Southfield House, Broadford Park, Shalford PPM Report
JJB/152160February 2016Rev 1 Appendix B
Item Area Element Defects Suggested Remedy Jan-Dec' 2016 Jan-Dec' 2017 Jan-Dec' 2018 Jan-Dec' 2019 Jan-Dec' 2020 Jan-Dec' 2021-2025
Site Inspection '2016-2017'
Desktop review only '2017-2018'
Desktop review only '2018-2019'
Desktop review only '2019-2020'
Re-inspection '2020-2021'
Years 6-10 '2021-2025'
6.1.16 Lighting - General. Light fixtures intermittently dirty and worn.
Complete cyclical repairs and cleaning.
£ 1,500 £ 1,500 £ 1,500
6.1.17 Lighting - Emergency. Emergency light batteries at end of working life.
Replace emergency lighting batteries.
£ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 5,000
Northfield Cost Total : £ 129,500
6.2 Southfield House
6.2.1 Roof plant Toilet supply and extract ventilation.
Original equipment end of life.
Replace equipment. £ 10,000
6.2.2 Ground floor Main electrical switchboard. Original equipment end of life.
Replace equipment. £ 10,000
6.2.3 Electrical distribution system. Original equipment end of life.
Replace equipment. £ 10,000
6.2.4 General Electrical system. Certificate of inspection and test in accordance with BS7671 expires 2019
Test and inspect electrical distribution system in accordance with BS7671, repairs as necessary.
£ 5,000 £ 5,000
6.2.5 Electrical system. Repairs and replacements following inspection and test.
Complete cyclical repairs and replacements.
£ 5,000 £ 5,000
6.2.6 Gas distribution. Corroded distribution pipework.
Fully decommission gas system
£ 5,000
6.2.7 Lighting - General. Light fixtures intermittently dirty and worn.
Complete cyclical repairs and cleaning.
£ 2,000 £ 2,000 £ 2,000
6.2.8 Lighting - Emergency. Emergency light batteries at end of working life.
Replace emergency lighting batteries
£ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 5,000
Northfield Cost Total : £ 71,000
Sub-total £26,500.00 £48,000.00 £21,000.00 £66,000.00 £5,500.00 £33,500.00
Allowance for Professional Fees (15%)
£3,975.00 £7,200.00 £3,150.00 £9,900.00 £825.00 £5,025.00
TOTAL Excluding VAT £30,475.00 £55,200.00 £24,150.00 £75,900.00 £6,325.00 £38,525.00
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
APPENDIX C
SITE PLAN
JJB/152160 February 2016
Appendix C
20 0 20 40 60 80 100
Metres
NOTE :
WHEN PRINTING PDF PLANS, ALWAYS ENSURE THAT PAGE
SCALING (IN PRINTER DIALOGUE BOX) IS SET TO NONE.
USING FIT TO PAGE WILL INTRODUCE SCALING ERRORS.
NB
Responsibility is not accepted for
errors made by others scaling from
this drawing. All construction
information should be taken from
figured dimensions only
A3
Revision
Date
Title
Client
Project
Surveyor
Drawing Number
Scale
Drawn by
Rev Description By Date
BROADFORD PARK, SHALFORD,
GUILDFORD, GU4 8EP
ZURICH ASSURANCE LTD LIFE
SITE LOCATION PLAN
NORTHFIELD & SOUTHFIELD HOUSE
DRF JJB FEB 2016
1:1250 @ A3
L152160-D09-001
Northfield & Southfield House, Broadford Park, Shalford, GU4 8EP
PPM Report
APPENDIX D
PHOTOGRAPHS
JJB/152160 February 2016
Appendix D
Photographs Broadford Park, Shalford, Guildford
Photograph No. 1 – Northfield House – Front Elevation.
Photograph No. 2 – Northfield House – North Elevation.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 3 – Northfield House – East Elevation.
Photograph No. 4 – Northfield House – South Elevation.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph 5 – Example of degrading seals and loose cladding panels.
Photograph No. 6 – Example of window frame corrosion.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 7 – Roof covering heavily soiled.
Photograph No. 8 – Entrance door worn and damaged.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 9 – Northfield Hose Internal – general.
Photograph No. 10 – Metal ceiling cladding.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 11 – Impact damaged stairs.
Photograph No. 12 – Plant room – general.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 13 – Southfield House Front Elevation.
Photograph No. 14 – Southfield House South Elevation.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 15 – Southfield House East Elevation.
Photograph No. 16 – Poor sealant detail and polyester finish fading.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 17 – Example of poor previous repointing.
Photograph No. 18 – Fire escape staircase paint corrosion.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 19 – Example of cladding corrosion.
Photograph No. 20 – Roof apex seals worns and louvre vents.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 21 – Southfield House Internal – General
Photograph No. 22 – Ceiling cladding and glazing dirty.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 23 – Example of shower room.
Photograph No. 24 – Example of WC.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 25 – Roof apex internal seals degraded.
Photograph No. 26 – Tarmacadam wearing course worn.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 27 – Brickwork hardstanding uneven.
Photograph No. 28 – Drainage cover sunk and kerb movement noted.
JJB/GLC/L152160 February 2016
Photographs Broadford Park, Shalford, Guildford
Photograph No. 29 – Car Park – General.
JJB/GLC/L152160 February 2016
Appendix 6
Savills (UK) Ltd
Development Appraisal
Broadford Business Park
Refurbished Office Scheme
Report Date: 21 July 2017
TIMESCALE AND PHASING SAVILLS (UK) LTD Broadford Business Park Refurbished Office Scheme
Timescale (Duration in months)
Project commences Jul 2017 Phase 1 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 4 Jul 2017 Oct 2017 Pre-Construction End 0 Phase End Dec 2021 Phase Length 4
Phase 2 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 4 Nov 2017 Feb 2018 Pre-Construction End 0 Phase End Dec 2021 Phase Length 8
Phase 3 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 10 Mar 2018 Dec 2018 Pre-Construction End 0 Phase End Dec 2021 Phase Length 18
Phase 4 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 6 Jan 2019 Jun 2019 Pre-Construction End 0 Phase End Dec 2021 Phase Length 24
Phase 5 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 5 Jul 2019 Nov 2019 Pre-Construction End 0 Phase End Dec 2021 Phase Length 29
Phase 6 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Dec 2019 Aug 2020 Pre-Construction End 0 Phase End Dec 2021 Phase Length 38
Phase 7 Stage Name Duration Start Date End Date Anchored To Aligned Offset Phase Start Jul 2017 Construction 9 Sep 2020 May 2021 Pre-Construction End 0 Sale 7 Jun 2021 Dec 2021 Income Flow End 0 Phase End Dec 2021 Phase Length 54
Project Length 54 (Merged Phases - Includes Exit Period)
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Refurbished Office Scheme
Summary Appraisal for Merged Phases 1 2 3 4 5 6 7
Currency in £
REVENUE
Rental Area Summary Initial Net Rent Units ft² Rate ft² MRV/Unit at Sale
Broadford House 1 3,120 17.00 53,040 53,040 Park House 1 3,647 17.00 61,999 61,999 Bishopsgate House 1 20,792 17.00 353,464 353,464 Northfield House 1 10,524 17.00 178,908 178,908 Southfield House 1 4,587 17.00 77,979 77,979 River House 1 13,569 17.00 230,673 230,673 Wharfside 1 15,456 17.00 262,752 262,752 Totals 7 71,695 1,218,815
Investment Valuation Broadford House Current Rent 53,040 YP @ 9.0000% 11.1111 589,333 Rent Free (53,040) YP 0yrs 6mths @ 9.0000% 0.4686
PV 1yr 5mths @ 9.0000% 0.8851 (21,998) 567,335
Park House Current Rent 61,999 YP @ 9.0000% 11.1111 688,878 Rent Free (61,999) YP 0yrs 6mths @ 9.0000% 0.4686
PV 1yr 9mths @ 9.0000% 0.8600 (24,985) 663,892
Bishopsgate House Current Rent 353,464 YP @ 9.0000% 11.1111 3,927,378 Rent Free (353,464) YP 1yr @ 9.0000% 0.9174
PV 2yrs 10mths @ 9.0000% 0.7834 (254,025) 3,673,352
Northfield House Current Rent 178,908 YP @ 9.0000% 11.1111 1,987,867 Rent Free (178,908) YP 0yrs 9mths @ 9.0000% 0.6954
PV 3yrs 1mth @ 9.0000% 0.7667 (95,386) 1,892,480
Southfield House Current Rent 77,979 YP @ 9.0000% 11.1111 866,433 Rent Free (77,979) YP 0yrs 6mths @ 9.0000% 0.4686
PV 3yrs 6mths @ 9.0000% 0.7396 (27,026) 839,407
River House Market Rent 230,673 YP @ 9.0000% 11.1111 (0yrs 3mths Unexpired Rent Free) PV 0yrs 3mths @ 9.0000% 0.9787 2,508,405 Renewal Rent Free (230,673) YP 1yr @ 9.0000% 0.9174
PV 4yrs 3mths @ 9.0000% 0.6933 (146,726) 2,361,679
Wharfside Market Rent 262,752 YP @ 9.0000% 11.1111 (1yr Rent Free) PV 1yr @ 9.0000% 0.9174 2,678,410 Renewal Rent Free (262,752) YP 1yr @ 9.0000% 0.9174
PV 5yrs @ 9.0000% 0.6499 (156,670) 2,521,739
12,519,886
Income from Tenants Broadford House 163,540 Park House 154,998 Bishopsgate House 589,107 Northfield House 163,999
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Refurbished Office Scheme
Southfield House 77,979 1,149,622
NET REALISATION 13,669,508
OUTLAY
ACQUISITION COSTS Residualised Price 1,045,057 Residualised Price (Negative land) (173,446) Agent Fee 1.50% 15,676 Legal Fee 0.35% 3,658
890,945 CONSTRUCTION COSTS Construction ft² Rate ft² Cost
Broadford House 3,120 ft² 100.00 pf² 312,000 Park House 3,717 ft² 100.00 pf² 371,700 Bishopsgate House 22,340 ft² 100.00 pf² 2,234,000 Northfield House 11,387 ft² 100.00 pf² 1,138,700 Southfield House 5,932 ft² 100.00 pf² 593,200 River House 15,324 ft² 100.00 pf² 1,532,400 Wharfside 15,919 ft² 100.00 pf² 1,591,900 Totals 77,739 ft² 7,773,900 7,773,900
Contingency 10.00% 777,390 Demolition 77,739 ft² 10.00 pf² 777,390 External Landscaping 70,000
1,624,780
PROFESSIONAL FEES Professional Fees 10.00% 777,390
777,390 MARKETING & LETTING
Letting Agent Fee 15.00% 182,822 Letting Legal Fee 1.50% 18,282
201,104 Tenancy Void Costs
Total Tenancy Void Costs 123,137
TOTAL COSTS 11,391,256
PROFIT 2,278,252
Performance Measures Profit on Cost% 20.00% Profit on GDV% 18.20% Profit on NDV% 18.20% Development Yield% (on Rent) 10.70% Equivalent Yield% (Nominal) 9.00% Equivalent Yield% (True) 9.52%
IRR 7.77%
Rent Cover 1 yr 10 mths Profit Erosion (finance rate 0.000%) N/A
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Refurbished Office Scheme
Initial MRV
53,040 61,999
353,464 178,908 77,979
230,673 262,752
1,218,815
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
APPRAISAL SUMMARY SAVILLS (UK) LTD Broadford Business Park Refurbished Office Scheme
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Date: 21/07/2017
SENSITIVITY ANALYSIS REPORT SAVILLS (UK) LTD
Broadford Business Park Refurbished Office Scheme
Table of Land Cost and Profit Amount Construction: Rate pf²
Rent: Rate pf² -20.00 pf² -10.00 pf² 0.00 pf² +10.00 pf² +20.00 pf² 80.00 pf² 90.00 pf² 100.00 pf² 110.00 pf² 120.00 pf²
-3.00 pf² (£765,608) £158,418 £1,086,130 £2,017,507 £2,949,524 14.00 pf² £1,876,207 £1,876,207 £1,876,207 £1,876,206 £1,876,208 -1.50 pf² (£1,737,177) (£818,609) £105,417 £1,032,180 £1,963,558 15.50 pf² £2,077,230 £2,077,230 £2,077,230 £2,077,229 £2,077,229
0.00 pf² (£2,706,607) (£1,790,685) (£871,611) £52,416 £978,232 17.00 pf² £2,278,254 £2,278,252 £2,278,252 £2,278,253 £2,278,252 +1.50 pf² (£3,676,041) (£2,760,116) (£1,844,193) (£924,613) (£587) 18.50 pf² £2,479,274 £2,479,275 £2,479,275 £2,479,274 £2,479,274 +3.00 pf² (£4,645,471) (£3,729,548) (£2,813,625) (£1,897,702) (£977,615) 20.00 pf² £2,680,297 £2,680,297 £2,680,297 £2,680,297 £2,680,297
Sensitivity Analysis : Assumptions for Calculation
Construction: Rate pf² Original Values are varied in Fixed Steps of £10.00
Heading Phase Rate No. of Steps Broadford House 1 £100.00 2 Up & Down Park House 2 £100.00 2 Up & Down Bishopsgate House 3 £100.00 2 Up & Down Northfield House 4 £100.00 2 Up & Down Southfield House 5 £100.00 2 Up & Down River House 6 £100.00 2 Up & Down Wharfside 7 £100.00 2 Up & Down
Rent: Rate pf² Original Values are varied in Fixed Steps of £1.50
Heading Phase Rate No. of Steps Broadford House 1 £17.00 2 Up & Down Park House 2 £17.00 2 Up & Down Bishopsgate House 3 £17.00 2 Up & Down Northfield House 4 £17.00 2 Up & Down Southfield House 5 £17.00 2 Up & Down River House 6 £17.00 2 Up & Down Wharfside 7 £17.00 2 Up & Down
File: E:\GUDV\CONSULTANCY\Consultancy 2016\Broadford Business Park, Shalford, Guildford, GU4 8EP\Viability Assessment - June 2016\04 Comparables, Appraisals, Valuation Summary\Refurbished Office 150716.wcfx ARGUS Developer Version: 6.00.008 Report Date: 21/07/2017