Substantial Freehold Land Investment with Important Rent Review in 2020
Entirely let to IGas Energy Development Limited (guaranteed by IGas Energy Plc) on a recently re-geared lease until January 2039 (subject to option)
Yearly RPI linked uplifts (uncapped)
Scope for significant rental uplift at Open Market Rent Review in January 2020 (please refer to legal pack)
Operational oil well on a site extending
7.45 acres (3.01 hectares)
Property has been in current use for over
30 years
4 miles north of Winchester, strategically located with easy access to A34, A31, A303 and M3
Landlord only option to take a surrender of part of the lease demise in exchange for 25% rent reduction (see legal pack)
Future redevelopment potential (subject to consents)
Lot 16
Auction 11th July 2019
Rent £92,500 per Annum Exclusive
Status Sold
Price £950,000
Sector Development
Auction Venue The Montcalm Hotel 2 Wallenberg Place London W1H 7TN
On behalf of an Investment Manager
Property Information
Location
Miles
4 miles north-west of Winchester city centre
16 miles north of Southampton
17 miles south-west of Basingstoke
Roads
A272, A34, A31, A303, M3
Rail
Winchester Railway Station
Air
Southampton Airport
Situation
Winchester is an affluent cathedral city situated close to junctions 9 and 10 of the M3, which provides easy access to the M25 and London to the north-east and the M27 and Southampton to the south. The property is located to the north of the city centre on the A272, which is an arterial route between Winchester and Andover.
Tenure
Freehold.
Location
Miles
4 miles north-west of Winchester city centre
16 miles north of Southampton
17 miles south-west of Basingstoke
Roads
A272, A34, A31, A303, M3
Rail
Winchester Railway Station
Air
Southampton Airport
Situation
Winchester is an affluent cathedral city situated close to junctions 9 and 10 of the M3, which provides easy access to the M25 and London to the north-east and the M27 and Southampton to the south. The property is located to the north of the city centre on the A272, which is an arterial route between Winchester and Andover.
Tenure
Freehold.
Description
The property comprises an established operational oil well (with 9 active wells) on a site extending to approximately 7.45 acres (3.01 hectares). Built development includes an area of concrete hardstanding constructed over an impermeable membrane, upon which several storage tanks, office accommodation and welfare facilities have been erected.
The 2018 competent persons report prepared for IGas reports between Jan-Dec 2018 the pre-tax field level net cashflow is just in excess of £5m (excluded G+A, and transportation and storage) (Source: Phase 1 Environmental Report 2019 update - available in legal pack).
For further information please refer to the environmental report available within the legal pack.
VAT
VAT is applicable to this lot.
Planning
The property benefits from planning consent for use as oil and gas production until 31st December 2036. For further information please visit: planningapps.winchester.gov.uk (Ref: 16/02508/HCM).
EPC
The EPC will be available to view online in the solicitor’s legal pack.
Description
The property comprises an established operational oil well (with 9 active wells) on a site extending to approximately 7.45 acres (3.01 hectares). Built development includes an area of concrete hardstanding constructed over an impermeable membrane, upon which several storage tanks, office accommodation and welfare facilities have been erected.
The 2018 competent persons report prepared for IGas reports between Jan-Dec 2018 the pre-tax field level net cashflow is just in excess of £5m (excluded G+A, and transportation and storage) (Source: Phase 1 Environmental Report 2019 update - available in legal pack).
For further information please refer to the environmental report available within the legal pack.
VAT
VAT is applicable to this lot.
Planning
The property benefits from planning consent for use as oil and gas production until 31st December 2036. For further information please visit: planningapps.winchester.gov.uk (Ref: 16/02508/HCM).
EPC
The EPC will be available to view online in the solicitor’s legal pack.
Tenancy & Accommodation
Site Area
Tenant
Term
Rent p.a.x
Reviews
7.45 acres (3.01 hectares)
IGAS ENERGY DEVELOPMENT LIMITED guaranteed by IGAS ENERGY PLC (1)
A term of years from from 03/01/2019 until 02/01/2039 (2)
£92,500
Reviewed annually in line with Retail Price Index (RPI) and in addition subject to 5 yearly upwards only Open Market Rent Reviews (3)
Total
£92,500
(1) IGas Energy is a leading British oil and gas explorer and developer, producing c. 2,200 barrels of oil equivalent per day from over 100 sites across the country, with significant potential yet to be delivered from their assets. IGas has played a key role in Britain's onshore energy production, safely exploring, developing and producing onshore oil and gas at their sites for over three decades (Source: igasplc.com). (2) The lease is subject to a rolling tenant option to determine from 03/01/2024 subject to 12 months' prior notice. (3) The rent is reviewed annually in line with the Retail Price Index (RPI) (no minimum or maximum) and in addition is subject to five yearly upwards only Open Market Rent Reviews. Next important Open Market Review in January 2020.
