Newly developed West Midlands day nursery investment - 20 year lease
Summary
- Newly developed 110 place children’s day nursery investment
- Pricing of £2,330,000 which reflects a net initial yield of 6.25% and a reversionary yield of 7.25% in 2030.
- Share of freehold
- Single let to Busy Bees Nurseries Ltd on a brand new 20 year lease
- Busy Bees are the UK’s largest day nursery chain with over 400 locations nationwide
- Contracted passing rent of £155,000 per annum plus VAT, which equates to £21.46 per sq ft on a GIA basis
- Five yearly, index-linked, upwards only rent reviews subject to CPI uplifts with a collar and cap of 1% - 3% per annum
- Standalone building extending to 7,224 sq ft GIA over ground and first floors with an enclosed outdoor garden and 16 demised car parking spaces
- Busy Bees latest accounts for the year to date 31.12.2024 show a 147% increase in profits (c.£46m) from the previous year
- EPC A
Location
Leamington Spa, officially known as Royal Leamington Spa, is a historic spa town located in central Warwickshire, within the West Midlands region of England. It lies approximately 90 miles northwest of London, 10 miles south of Coventry and 25 miles southeast of Birmingham.
The town benefits from excellent road connectivity, being situated near the M40 motorway, which provides direct access to both London and Birmingham. The A46 and A452 also serve the area, linking Leamington Spa to Warwick, Coventry and the wider Midlands region.
Leamington Spa Railway Station offers regular services on the Chiltern Main Line and the Leamington–Coventry line. Direct trains run to London Marylebone with the fastest journey time of around 1 hour 15 minutes. Other key destinations include Birmingham Moor Street (30 mins), Oxford (45 mins) and Reading (1 hr 15 mins). Connections to the West Coast Main Line via nearby Coventry provide access to the Northwest and Scotland.
The town is within a 1-hour drive of Birmingham Airport and is also accessible to East Midlands and London Luton airports, making it well-positioned for both domestic and international travel.
Get directions from Google Maps
Mainline Stations
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Leamington Spa12 mins
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Warwick40 mins
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Warwick Parkway63 mins
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Kenilworth95 mins
Underground Station
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Chesham1075 mins
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Amersham1108 mins
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Chalfont and Latimer1140 mins
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Chorleywood1178 mins
Further Information
Price £2,330,000 Net initial Yield 6.25%
Rates Payable Upon Enquiry
EPC Rating This property has been graded as A
Description
The building itself is arranged overground and two upper floors with fournursery classrooms, a kitchen, staff
room, parent meeting room, WC & laundry facilities and ancillary storage space. There is an internal plant room
at second floor level as well as an external plant room.
The site extends to approximately 0.25 acres. The site is fully fenced providing a safe and secure site for children and parents alike.
While traditionally a commercial area, the site offers a number of features that make it highly suitable for a nursery school environment:
• Secure gated access with electric barriers
• Generous on-site parking (16 spaces), ideal for staff and parent use
• Quiet cul-de-sac setting, providing a safe and calm environment for children
• Generous outdoor play space (over 200 sq m), making it an attractive place for parents to send their children
• Strong demographics, with the property located in the heart of a residential area with major new build housing developments under construction nearby
Situation
The property is situated off Tancred Close, which provides a quiet cul-de-sac setting given its situation on Jephson Court, a secure, gated business park located to the south of Leamington Spa town centre.
Positioned just a short drive from Leamington Spa town centre, the property benefits from excellent accessibility via Tachbrook Road and the Queensway, which intersects with the A452 at a roundabout on the western side of the town, which in turn links up with the M40 motorway. This ensures convenient drop-off and pick-up routes for parents commuting from nearby towns such as Warwick, Kenilworth and Coventry.
The nearby Leamington Spa Shopping Park offer exceptional local amenities to include supermarkets, cafés, gyms and healthcare facilities, adding further convenience for families.
Tenure
The property is held long leasehold , under title WK404403 (red line), with a share of management company that owns the freehold title under title
number WK363453 (Green line) 6 Jephson Court long leasehold is held on 999 year lease at a peppercorn from 1st July 1999, which leaves an unexpired term of circa 973 years.
The freehold is owned by Jephson Court Management Company Ltd (company number 11890347) and each of the six Long leaseholder benefits from a one sixth share in this company. An estate charge is levied by the freeholder to cover the repair and maintenance of the spine road, communal landscaped areas, the security barrier and CCTV. The annual estate charge for Unit 6 is currently £2,170.80 + VAT and this is fully recoverable from the occupational tenant, Busy Bees Nurseries Limited.
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