INTERNATIONAL HOUSE LIVERPOOL INTERNATIONAL BUSINESS PARK ENTER WELL LET OFFICE INVESTMENT OPPORTUNITY LET TO COMMUNISIS PLC

Size: px

Start display at page:

Download "INTERNATIONAL HOUSE LIVERPOOL INTERNATIONAL BUSINESS PARK ENTER WELL LET OFFICE INVESTMENT OPPORTUNITY LET TO COMMUNISIS PLC"

Dylan Sherman
6 years ago
Views:

1 INTERNATIONAL HOUSE LIVERPOOL INTERNATIONAL BUSINESS PARK WELL LET OFFICE INVESTMENT OPPORTUNITY LET TO COMMUNISIS PLC ENTER

Investment Considerations Modern office building, located on Estuary Boulevard, Speke, Liverpool Prominently situated near Speke Boulevard close to Liverpool John Lennon

lease from 4th December 2013 Let off a rent of 125,000 pa which reflects a low rent of 4.83 psf Five yearly review to the higher of RPI or OMRV (capped at 7.

3 Investment Considerations Modern office building, located on Estuary Boulevard, Speke, Liverpool Prominently situated near Speke Boulevard close to Liverpool John Lennon Airport The office building extends to 25,877 sqft with the benefit of 94 car park spaces Let to Communisis UK Ltd with Communisis PLC acting as surety 10 year FR&I lease from 4th December 2013 Let off a rent of 125,000 pa which reflects a low rent of 4.83 psf Five yearly review to the higher of RPI or OMRV (capped at 7.50 psf) Virtual Freehold Offers of 1,600,000 reflecting a net initial yield of 7.38%, and a potential reversionary yield in year 5 of 11.46%, after allowing for purchasers costs of 5.8%

4 Location Liverpool is the sixth largest city in the UK and is located approximately 35 miles west of Manchester, 19 miles north of Chester and 212 miles north west of London. The city has an urban area population of 439,473 (2001 census), while there are approximately 6.7 million people within one hour s drive. The property is located in Speke, which lies 7 miles south of Liverpool city centre. The area is served by the A561 dual carriageway, which is the principal southern gateway into Liverpool, as well as providing access to Junction 6 of the M62 (via the A562 and A5300) and Junction 12 of the M56 (via the A533 and A557). The area has an economy traditionally based on manufacturing and has benefited from major public/private led regeneration initiatives during recent years. This has led to the completion of a number of significant commercial development schemes including Estuary Commerce Park, Liverpool International Business Park, Boulevard Industry Park, New Mersey Shopping Centre. Major occupiers attracted to the area include Jaguar Land Rover, B & M Bargains, GlaxoSmithKline, Eli Lilly, HBOS, DHL, National Blood Centre, Riverside Housing Association, Bertelsmann, Marriott Hotels, David Lloyd Leisure. Another major driver of the local economy is Liverpool John Lennon Airport which served 4.5 million passengers in 2012.

New Mersey Shopping Park A561 Speke Boulevard to Runcorn & Knowsley Expressway David Lloyd Leisure Crowne Plaza B&M Communisis B&M Situation The property is situation on Hurricane Court within

5 New Mersey Shopping Park A561 Speke Boulevard to Runcorn & Knowsley Expressway David Lloyd Leisure Crowne Plaza B&M Communisis B&M Situation The property is situation on Hurricane Court within Liverpool International Business Park which extends to circa 157 acres providing a range of offices, warehousing, research and development facilities and associated leisure and hotel facilities. The Park lies close to Liverpool John Lennon Airport, New Mersey Shopping Park, Marriott Hotel and David Lloyd Leisure Centre. The site opposite (The Hive) comprises a 25 acre development opportunity, the first property is nearing completion which will comprise a 150,000 sqft distribution unit occupied by Johnson Controls Automotive, which we understand is let at approximately 4.90 psf. Estuary Boulevard Johnson Controls New Facility The Hive Development Site INTERNATIONAL HOUSE B&M

Description International House was constructed in 2007, is a prominent self contained modern three-storey office building facing Estuary Boulevard providing the following specification: Full access

6 Description International House was constructed in 2007, is a prominent self contained modern three-storey office building facing Estuary Boulevard providing the following specification: Full access raised floors LG7 compliant light fittings Air conditioning Passenger lift Large, flexible and regular floor plates High quality finishes to reception, lobby and toilet areas. Benefit of 94 car parking spaces Indicitive Layout First/Second Floor Ground Floor

Accommodation The property comprises a total net internal floor area as follows: Floor SQ FT SQ M Ground Reception 526 48.86 Ground Office 8,294 770.51 First Floor 8,425 782.68 Second Floor 8,632 801.

7 Accommodation The property comprises a total net internal floor area as follows: Floor SQ FT SQ M Ground Reception Ground Office 8, First Floor 8, Second Floor 8, Total 25,877 2, Tenancy The entire property is let to Communisis UK Ltd with Communisis Plc acting as surety for a term of 10 years from 4 December 2013 on effective FR&I terms at a current rent of 125,000 pa ( 4.83 psf) with a rent review in year 5 which is based on the higher of RPI compound or the open market rental value (capped at 7.50 psf). The lease is outside the security of the Landlord and Tenant Act and was subject to an initial rent free period of 12 months. The tenant contributes towards a service charge for the up keep of the car parking spaces. The current rent equates to a low base of 4.83 psf overall which in our opinion offers potential excellent future rental growth, reflected by the tenants request for the cap on the open market rental value of 7.50 psf at the next rent review. In our opinion the property would have a potential ERV in excess of 7.50 psf at the next rent review but due to the cap on the rental level we are of the opinion the rental in year 5 would be at 194,000 pa based on 7.50 psf, thus offering an investor long term rental growth.

Covenant Communisis are specialists in data driven multichannel marketing communication services and employ approximately 1,500 employees in various locations throughout the UK, parts of Europe and

8 Covenant Communisis are specialists in data driven multichannel marketing communication services and employ approximately 1,500 employees in various locations throughout the UK, parts of Europe and India. The company is fully listed on the London Stock Exchange. The company has recently gained contracts from Nationwide Building Society (9 years), BT (5 years), Yorkshire Building Society (3 years) and Thames Water (3 years). In the summer of 2013 the company gained a ten year outsourcing contract to take over the in-house print operations of Lloyds TSB. The tenant occupies a large unit close by and requires the subject property for additional accommodation to undertake a long term contract which they have recently gained. Communisis UK Limited is a wholly owned subsidiary of Communisis PLC, the company reported the following trading figures for the previous three years: y/e 31 Dec 2012 y/e 31 Dec 2011 y/e 31 Dec 2010 Turnover 211,478, ,354, ,842,000 Pre-Tax Profit 11,411,000 6,717,000 11,461,000 Shareholders Funds 6,235,000 16,253,000 25,647,000 Communisis PLC acts as surety under the lease and the company reported the following trading figures for the previous three years: y/e 31 Dec 2013 y/e 31 Dec 2012 y/e 31 Dec 2011 Turnover 270,148, ,774, ,276,000 Pre-Tax Profit 6,273,000 5,157,000 4,160,000 Shareholders Funds 141,155, ,187, ,792,000

9 TENURE The property is held long leasehold for a term of 948½ years from 3 October 2007 at 1.00 pa. The long leasehold has the exclusive right to use 98 car parking spaces surrounding the subject property. VAT The property is VAT registered therefore VAT will be payable on the purchase price unless the transaction can be treated by way of a Transfer of a Going Concern (TOGC). EPC The property has an EPC rating of C-70, a copy of the EPC is available on request. Proposal We are instructed to seek offers of 1,600,000 (One Million Six hundred thousand pounds), subject to contract and exclusive of VAT, which reflects a net initial yield of 7.38%. In our view, the rental value of this property has the genuine potential to reach the level of the cap at review thereby providing an investor with a very attractive reversionary yield of 11.46%, based on purchasers costs of 5.8%.

Contact Stewart Montrose 82 King Street Manchester M2 4WQ Andrew Stewart T: 0161 935 8245 M: 07813 939898 E: astewart@stewartmontrose.

10 Contact Stewart Montrose 82 King Street Manchester M2 4WQ Andrew Stewart T: M: E: Rick Gordon T: M: E: Stephen Hamer T: M: E: DISCLAMER: Stewart Montrose Ltd Important notice relating to the Misrepresentation Act 1967 and the Property Misdescriptions Act 1991: Stewart Montrose Ltd for itself and the vendor as agents for the vendor give notice that: 1. We provide the information contained in these particulars for guidance to intending purchasers, licensees or any other third parties and they are for your general information only and will be used at your own risk. 2. We will use all reasonable endeavours to ensure the accuracy of information, however, we do not guarantee or warrant the accuracy or completness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties and do not accept any liability for any errors or omissions including any inaccuracies or typographical errors. 3. Any interested purchasers, licensees or any third parties should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and specific details in the particulars are correct and accurate especially in relation to floor areas and other measurements through inspection or other means, as appropriate and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject matter of these particulars. 4. We have not made any investigation or otherwise of any issues concerning pollution or potential land, building, air or water contamination. Prospective purchasers, licensees or any third parties must undertake their own enquires and satisfy themselves in this regard. 5. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. SUBJECT TO CONTRACT. Stewart Montrose Ltd, April 2014

TO LET Modern Purpose Built Office Suites 8,294 25,877 sq ft

TO LET Modern Purpose Built Office Suites 8,294 25,877 sq ft International House, Estuary Boulevard, Speke, Liverpool, Merseyside L24 8RF Liverpool is the sixth largest city in the UK and is located approximately