Investment Sale Tungsten Building, Central Boulevard, Blythe Valley Park, Birmingham B90 8AU. Sale and Leaseback Opportunity

Transcription

1 Investment Sale Tungsten Building, Central Boulevard, Blythe Valley Park, Birmingham B90 8AU Sale and Leaseback Opportunity

2 Fore Business Park 8 miles to M6 Investment Summary Grade A office building extending to 2, sq m (23,844 sq ft) Arup Oracle 4 Located on Blythe Valley Park; the West Midlands premier business park Siemens / Atkin Infor Caterpillar To be let to Kier Construction Ltd with a Guarantee from Kier Ltd Virgin Active Hill.Hofstetter Balfour Beatty Goodman To the year ending 30 June 2012, Kier Ltd reported a Turnover of 1.92bn, Pre-tax Profits of 50.9m and Net Assets of 180m Regus St James s Place Wealth Management Store Twenty One UK Athletics itradenetwork Bam New 15 year lease subject to 5 yearly upwards only rent reviews linked to CPI 461,182 per annum Long leasehold (approx. 997 years unexpired) at a peppercorn rent Blythe Valley Innovation Centre We are seeking offers in the region of 6,500,000 (six million five hundred thousand pounds) subject to contract for the long leasehold interest. This reflects a Net Initial Yield of 6.71% assuming purchaser s costs of 5.8% 1.5 miles to M40.

3 A458 A456 M54 A454 A458 A442 A449 A491 A442 A449 M5 A44 A51 M6 Toll A452 M6 M5 A441 M40 A448 A435 A441 A422 A46 A38 A42 A444 A5 M69 M6 A444 A45 A4177 A423 A46 A426 A46 M40 A423 Norton Ln Va The Lakes (Warks) Station ley Rd B4102 Earlswood Common B4102 B4102 Salter St B4102 Cut Throat Ln Creynolds Ln Illshaw Heath Rd Scho ol Rd School Rd 3A M40 Kineton Ln Cut Throat Ln Stratford Rd Blythe Gate 4 Kineton Ln A3400 Stratford Rd Stratford Rd Spring Ln Gate Ln A3400 Box Trees Rd B4101 Crown Copyright All rights reserved. Not to scale. Location Blythe Valley Park is located at the heart of the UK s motorway network being positioned adjacent to Junction 4 of the Motorway. It is widely considered as the premier business park for the Greater Birmingham area and the Corridor. Birmingham is the UK s second largest city, located approximately 118 miles north west of London, 75 miles south of Manchester and 42 miles south west of Leicester. The city has a district population of 977,087 persons and an urban area population of 2,383,081 within 12.5 miles. The city therefore forms a significant regional commercial centre with a strong international profile. Birmingham is located at the centre of the national motorway network, with the M6, M6 Toll, M40, and M5 all serving the city and providing excellent access to the rest of the UK. Birmingham International Airport provides international air travel whilst Birmingham New Street and Birmingham International train stations provide rail connections to other major centres throughout the UK, with London reached in a fastest journey time of approximately 70 minutes. Situation Blythe Valley Park is strategically located at Junction 4 of the Motorway, approximately 12 miles south east of Birmingham city centre and 4 miles south west of Solihull; one of the county s most affluent towns. Junction 3A (M40 Motorway) is 1.5 miles to the southwest and Junction 7A (M6 Motorway) is 8 miles to the northeast. The site has excellent transport links, with its proximity to Birmingham International Airport and Birmingham International Railway Station (both circa 5 miles distant) complementing the park s position at the heart of the motorway network. Blythe Valley Park extends to over 257 acres and has consent for approximately 2 million sq ft of office accommodation. Occupiers on the park include Oracle, Goodman, Balfour Beatty, ARUP, Regus, St James s Place, Infor and ATKIN. The park s amenities can be summarised as follows: Dedicated Park management 24 hour on-site security, CCTV and vehicle registration recognition system 55,000 sq ft Virgin Active health club Busy Bees day care nursery 135 acre countryside park and nature trail Shuttle bus service: S9 (to Solihull), X20 (to Birmingham city centre) and B90 (to Birmingham International)

4 Description The property comprises a modern high specification two storey office building that was developed in Being of steel frame construction, the property is designed to suit either single or multiple occupation. The building s specification is as follows: Four pipe fan coil air conditioning Suspended ceilings with intelligent LG3 lighting Raised access floors (150mm) Double height reception Eight person passenger lift Shower facilities Full height glazed elevations 85 car parking spaces (1:281) Given the property s position in the centre of the UK, Tungsten forms a critical part of Kier s occupational estate, being a drop-in centre with hot-desking facilities for their nationwide network of staff. Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice and provides the following Net Internal floor areas: Floor Sq M Sq Ft Reception Ground Floor Offices 1, ,464 First Floor Office 1, ,394 Total 2, ,844 Tenure The property is held leasehold (approx 997 years unexpired) at a peppercorn rent. Tenancy The property is to be let in its entirety to Kier Construction Ltd with Kier Ltd as Guarantor. The lease is to be for a term for 15 years (without Break), subject to 5 yearly upwards only rent reviews. The rent reviews are to be equal to compounded annual growth linked to CPI with a collar and cap of 0-3%. The rent on commencement will be 461,182 per annum which equates to per sq ft with half rate on reception. The lease is to be drafted on a Full Repairing and Insuring basis. Tenant Covenant Kier Construction Ltd is part of Kier Group Plc, which employees over 10,000 staff worldwide and has a Turnover in excess of 2bn. The Group is a leading construction, services and property business specialising in building and civil engineering, support services, public and private house building, property development and structured property financing. For further information please go to Tenant Year End Turnover ( 000 s) Pre-tax Profit ( 000 s) Net Assets ( 000 s) Kier Construction Limited ( ) 30/06/2012 1,130,251 39, ,297 30/06/2011 1,215,830 58,100 95,960 30/06/2010 1,205,550 15,143 72,222 Kier Limited ( ) 30/06/2012 1,919,200 50, ,000 30/06/2011 2,015,900 70, ,200 30/06/2010 1,960,200 52, ,000

5 Market Commentary Birmingham s out-of-town office market is predominantly located along the corridor with the majority of schemes being situated between junctions 4 to 7. Blythe Valley Park is the most modern scheme of notable scale, with Birmingham Business Park being the largest but most dated park having first been developed in the 1980 s. Annual take-up within the corridor averaged around 240,000 sq ft between , but 2012 bucked this trend with an upturn in demand creating over 420,000 sq ft of lettings. Transactions of note include: itradenetwork leased 8,860 sq ft at Rhodium, Blythe Valley Park in Q at per sq ft Arcelor Mittal acquired c9,000 sq ft at Fore Business Park in Q at per sq ft. Being adjacent to Blythe Valley Park, the tenant took a 10 year lease Balfour Beatty leased 11,600 sq ft at Trigen House, Blythe Valley Park in Q at per sq ft and 4,305 sq ft at Cornwall House on Blythe Valley Park at per sq ft Caterpillar Finance acquired 12,000 sq ft at The Phoenix on Blythe Valley Park in Q at per sq ft

6 Proposal We are seeking offers in the region of 6,500,000 (six million five hundred thousand pounds) subject to contract for the long leasehold interest. This represents the following yield profile assuming purchaser s costs of 5.8% and average CPI growth of 2.5% per annum: Net Initial Yield: 6.71% Reversionary Yield (2018): 7.59% Reversionary Yield (2023): 8.58% VAT We understand that the property is elected for VAT. Contacts Lambert Smith Hampton Interchange Place Edmund Street Birmingham B3 2TA Lambert Smith Hampton United Kingdom House, 180 Oxford Street, London W1D 1NN Adam Ramshaw Charlie Lake aramshaw@lsh.co.uk clake@lsh.co.uk Further information on the property can be obtained from: Subject to Contract and Exclusive of VAT Lambert Smith Hampton April 2013 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.