WELL LET SELF CONTAINED OFFICE INVESTMENT Let to the Excellent Admiral Insurance Plc Covenant Phase 2, Telelink, Swansea Vale, Swansea, SA7 0AD
INVESTMENT CONSIDERATIONS New 10 year lease Let to EUI Ltd trading as Admiral Insurance, a leading FTSE 100 Company with a 5A1 D&B credit rating Tenant only break at 5th year Low Passing rent of 200,000 per annum ( 5.30 per sq ft) 37,680 sq ft (3,500.54 sq m) Generous car parking ratio of 1:158 sq ft A long leasehold for a term of 125 years from 15th October 1998 at a rent of 500 per annum Offers in excess of 1,750,000 (One Million Seven Hundred Fifty Thousand Pounds) this reflects an attractive net initial yield of 10.73% after deducting standard purchasers costs of 6.20% Low Capital Value of 46.44 per sq ft
LOCATION The city of Swansea has a population of c.185,000. It is the second largest city in Wales, located on the northern shores of the Bristol Channel, about 85 miles west of Bristol and 42 miles west of Cardiff. The city is served by Junctions 42 and 47 of the M4 motorway. Swansea railway station provides links to the local and national rail networks with the fastest time to Cardiff being approximately 54 mins, Bristol Parkway 1hr 31mins and London Paddington 2hrs 59mins. Swansea is a popular student destination and there are now more than 21,500 students in higher education at Swansea University and Swansea Metropolitan University (now part of University of Wales Trinity Saint David). Swansea is the regional administrative centre for South West Wales. The economy has undergone significant restructuring over the last few decades and the city is now a major service centre, with increased employment in the public, medical, health, banking, legal and insurance sectors. Major employers in the area include Admiral Insurance, Amazon, 3M UK Plc, Virgin Atlantic and Virgin Media. RD River Tawe A4067 River Tawe SWANSEA VALE M4 BLAWD RD UPPER FFOREST WAY River Tawe CAMFFRWD WAY MILL STREAM WAY BLAWD RD M4 BLAWD SITUATION Swansea Vale, which spans 190 hectares (470 acres) of residential, commercial and nature reserves, continues to provide local infrastructure for the city. Throughout the last 20 years it has generated thousands of jobs and attracted significant investment for the local economy. It is managed by the Swansea Joint Venture a partnership between SCC and the Welsh Assembly Government. Sandringham Park, of which the subject property forms part, is situated within Swansea Vale. It is approximately 4 miles north of the city centre and lies within close proximity to the A4067 and adjacent to Junction 44 & 45 of the M4 motorway. HERON WAY CLARION CL A48 A48 There is a major presence from the DVLA in Swansea Vale with 1,000 employees working within their Call, Training and Innovation Centres. Other occupiers include Handelsbanken, Swansea College Training Centre and HSBC. Sat Nav: SA7 0AD
DESCRIPTION The subject property comprises a purpose built office building constructed in 1999. The property is of steel frame construction with a shallow pitched roof with tiled mansard surrounds. The elevations are predominately brick faced with the windows and doors upvc. The building is generally arranged over the ground floor with the exception of a first floor on the front elevation. Externally there is car parking for 238 cars within a designated car park which reflects an excellent ratio of 1:158. The property predominately comprises an open plan call centre with partitioned meeting rooms, toilets, staff room and canteen. A summary of the specification is as follows: Suspended ceilings with fibrous ceiling tiles Recessed modular fluorescent light fiings Fully accessible raised access floors Carpet and vinyl flooring Male, female and disabled WCs Ceiling mounted air conditioning The site of the property is irregular in shape. By reference to the Ordnance Survey Extract, we calculate that the property has an area of approximately 1.06 hectares (2.63 acres). ACCOMMODATION Phase 2 Telelink, Sq M Sq Ft Swansea Vale,Swansea Office 3,500.54 37,680 TENANCY The property is let on a new 10 year FRI lease to EUI Ltd from 22nd March 2016. The Gross passing rent is 200,000 per annum ( 5.30 per sq ft). The tenant does have the option to determine the lease at the end of the 5th year with not less than 6 months prior written notice. There is no rent review provision. The lease is subject to a schedule of condition. TENANT S COVENANT Since the launch in January 1993, the Admiral Group has become a highly profitable and fastgrowing financial services company. Admiral Group operates under a number of brands in the UK including the following: Admiral Insurance Bell Insurance Diamond Insurance (for female drivers) Gladiator (for commercial vehicles) Elephant.co.uk Confused.com Admiral is the only Welsh company in the FTSE 100 on the London Stock exchange. EUI Ltd (Tenant) EUI Ltd is the UK subsidiary of the Admiral Group, which offer services in direct motor insurance brokerage and providing other shared group facilities to the organisation. EUI Ltd have a Dun & Bradstreet rating of 5A1, - they have a minimum risk of business failure. The Group is one of the largest employers in South Wales and currently employs 7,000 people in operations worldwide. In the UK, Admiral have offices in Cardiff, Swansea and Newport. Further information about Admiral may be found on their website: www.admiralgroup.co.uk
TENURE The property is held long leasehold for a term of 125 years from 15th October 1998 at a rent of 500 per annum. This is common within Swansea, with the majority of the comparables also held long leasehold. VAT The property is elected for VAT and as a result VAT will be payable on the purchase price although we believe the transaction can be carried out as a transfer of a going concern. EPC The property has an asset rating of 78 (D Rating). PROPOSAL Quoting price of 1,750,000 (One Million Seven Hundred Fifty Thousand Pounds) this reflects an attractive net initial yield of 10.73% after deducting standard purchasers costs of 6.20%. Subject to contract and exclusive of VAT for our clients Long leasehold interest. This reflects an extremely low capital value of only 46.44 per sqft. FURTHER INFORMATION For further information, and arrangements to inspect the premises please contact. Ross Griffin Director 02920 368961 rgriffin@savills.com Savills Commercial 12 Windsor Place Cardiff IMPORTANT NOTICE Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Design by Martin Hopkins Design. Tel: 029 2046 1233 www.martinhopkins.co.uk