Long Let Prime South East Headquarters Office Investment with RPI Linked Rent Reviews
In June 2023, Joiner Cummings acted on the sale of a long let office investment in Southampton on behalf of an institutional client.
- Trophy long let office investment in central Southampton, a major South East commercial centre and transport hub.
- Vibrant city centre location, with exceptional amenity within a few minutes of the building including West Quay Shopping Centre, Watermark and the city centre amenity of Above Bar and High Street.
- Highly specified Grade A headquarters office building built in 2009, totalling 152,571 sq ft (14,174 sq m).
- Tenant fit out is extensive and includes best in staff amenity including staff restaurants and catering facilities, and a major staff conference and training centre.
- UK headquarters for Carnival UK, the United Kingdom operating company of Carnival Corporation & plc, the world's largest cruise shipping company.
- The tenant is highly committed to the building, having re-geared in 2018 on a new 20 year lease (expiry 28th September 2038) providing a long unexpired lease term of 15.7 years unexpired.
- Topped up total rental income of £2,551,945 per annum which reflects the September 2023 anticipated rent review settlement.
- Exceptionally low rental base of £16.91 psf (by virtue of the long occupational lease). Prime Grade A quoting rents in Southampton currently stand at £27.50 psf.
- 5 yearly rent reviews are to annual compound increases to RPI with a 1.00% collar and a cap of 3.00% per annum.
- Carnival Plc is a well known international brand, and despite the pandemic have a capitalisation in excess of $11.9bn and a D&B rating of 5 A2.