WELL SECURED OFFICE INVESTMENT ATLANTIC CLOSE TY DYFFRYN SA7 9FJ
INVESTMENT SUMMARY + + Established business area approximately four miles north of Swansea City Centre and adjacent to Junctions 44 and 45 of the M4 motorway + + Excellent car parking ratio of 1:198 sq ft + + Modern, detached office building totalling approx. 46,477 sq ft + + Let to the undoubted covenant of HSBC Bank Plc until March 2021 + + Held long leasehold until 2115 at a peppercorn rent + + Rent of 436,250 per annum (low base rent of 9.42 psf) + + Offers in the region of 5,000,000 (FIVE MILLION POUNDS), reflecting a capital value of 107.60 psf + + Attractive Net Initial Yield of 8.25% allowing for acquisition costs of 5.8%. + + Unexpired term of 5.42 years + + The tenant had a break option in March 2016 which they did not exercise, demonstrating their strong commitment to the building
A487 A483 A470 A470 A479 A438 A4112 A438 Hereford A438 A4103 A465 Great Malvern M50 Tewkesbury Carmarthen A48 A483 A470 Abergavenny A49 Gloucester C M4 SECOND LARGEST CITY IN WALES, 76 Milford Haven ESTABLISHED BASE FOR MAJOR PUBLIC AND PRIVATE SECTOR. Pembroke A477 A478 A477 Llanelli Swansea Ilfracombe Ammanford 43 Port Talbot Neath Porthcawl A465 M4 Merthyr Tydfil Minehead Aberdare Pontypridd A470 A465 Barry Caerphilly 42 Pontypool CARDIFF Westonsuper-Mare Burnham-on-Sea Cwmbran A449 Newport Clevedon A38 A361 A37 A48 Chepstow M48 M32 BRISTOL A4 M5 M5 Bath A361 A46 Frome A36 A433 A361 Stroud A429 A350 A417 A Chip Melks Trowbridge Warminste A3 LOCATION A39 Bideford Barnstaple A361 Bridgwater Taunton M5 A358 A39 3 88 Yeovil A37 3 A350 A386 A377 Tiverton 3 The city of Swansea, which has a population of about 230,000, is the second largest city in Wales and is located on the northern shores of the Bristol Channel, about 85 miles west of Bristol and 42 miles west of Cardiff. The city is well served by Junctions 42 47 of the M4 motorway and has a mainline railway station that provides a regular fast link to Cardiff and London Paddington. Swansea is the main city serving South West Wales and is host to two Universities, Bodmin A38 as well as being an established base for major public and private sector employers Newquay such as the DVLA and Admiral Insurance. A392 St Austell A391 A39 A395 A388 Saltash Torpoint A386 M4 PLYMOUTH Plympton 47 A385 A38 46 Exeter A380 M5 M4 A376 Dawlish Torquay Paignton Brixham Exmouth Teignmouth Newton Abbot 45 Swansea Enterprise Sidmouth Park 44 TY DYFFRYN A35 Bridport 43 42 A37 Dorchester Weymouth A354 A31 A350 A35 Truro A390 Fowey St Ives Redruth Camborne A39 Penzance A394 Helston Falmouth
SITUATION Swansea Enterprise Park is an established and well recognised retail and commercial location, situated approximately 4 miles north east of Swansea City Centre and in close proximity to Junctions 44 and 45 of the M4 motorway. The park was designated an Enterprise Zone in 1981 and in total covered 314 hectares (775 acres). Following considerable public and private sector investment in infrastructure, the area has attracted significant mixed use development, with office occupiers in particular including the Land Registry, Royal Mail, Welsh Assembly Government, EDS, John Collins Solicitors, Western Power & Distribution and the NHS Trust. DESCRIPTION The property was constructed in the early 1990 s and is a contemporary detached office building, arranged over ground and first floors. The accommodation is largely open plan with a core to the central part of the building providing a combination of cellular offices, reception and ancillary facilities. The property is constructed of steel frame with brick and blockwork cavity elevations under pitched roofs. Internally the property is currently fitted out to the following specification:- + + Raised floors + + 2 x 8 person passenger lifts + + Suspended ceilings + + On-site staff / canteen facilities + + Air conditioning + + Male and female WC s + + Gas central heating + + Double glazing
REFURBISHMENT WORKS The occupational tenant HSBC Bank Plc signed a reversionary lease in 2010 and also granted a licence for undertaking upgrading works. This included the installation of a new four pipe VRV fan coil comfort cooling system throughout the building, at the tenant s expense, in addition to various other improvements to the property. These improvements cannot be rentalised during the term of the reversionary lease, although if the tenant vacates, they are to become a landlord s fixture and fitting to be left in-situ and in good repair. If the tenant renews the lease with effect from 22 March 2021, the new system will be valued as if it had been installed by the landlord. ACCOMMODATION SQ M SQ FT GROUND 2,161.14 23,263 FIRST 2,156.65 23,214 TOTAL 4,317.80 46,477 The net internal area effective for rent review purposes is agreed as 46,282 psf.
CAR PARKING There are approximately 235 car parking spaces within the secure car park, at an excellent ratio of 1:198 sq ft TENURE The property is held on a long leasehold interest expiring on 10th December 2115 (100 years unexpired), at a peppercorn rent. LEASE The property is let to HSBC Bank Plc on a 15 year lease from 22nd March 1996. This was extended via a new reversionary lease for 10 years from 22 March 2011, thus expiring on 21st March 2021. There was a tenant option to break on 22 March 2016 subject to 6 months prior notice, which was not exercised, demonstrating the tenant s strong commitment to the building. RENT The passing rent is 436,250 per annum exclusive, equating to approximately 9.42 psf. This is subject to upward only reviews to open market value. The next rent review is due on the 22 March 2016.
THE WORLD S LARGEST BANKING AND FINANCIAL SERVICES GROUP AS WELL AS THE WORLD S 8TH LARGEST COMPANY. COVENANT STATUS HSBC Bank Plc is a leading global banking institution and is the world s largest banking and financial services group as well as the world s 8th largest company. HSBC has an enormous operational base in Asia and significant lending, investment and insurance activities around the world. The company has a global reach and financial fundamentals matched by few other banking multinationals. HSBC is listed on the London, New York, Hong Kong, Paris and Bermuda Stock Exchanges and is a constituent of the FTSE 100 Index and the Hang Seng Index. Further information is available at www.hsbc.com while a summary of their most recent accounts are as follows:- 31/12/2014 31/12/2013 31/12/2012 Turnover 18,313,000000 20,302,000000 20,451,000000 Pre Tax Profit 1,953,000000 3,294,000000 1,004,000000 Net Worth 28,784,000000 24,436,000000 23,849,000000
VAT We understand the property is elected for VAT. EPC The property has a rating of D 96. A copy of the certificate is available upon request. TOGC The property has been elected for VAT and will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL Offers are invited in the region of 5,000,000 (FIVE MILLION POUNDS) for the long leasehold interest. This reflects a net initial yield of 8.25% (assuming purchasers costs of 5.8%) and a low capital value of 107 psf FURTHER INFORMATION: For further information or to arrange an appointment to inspect, please contact the sole agent: Subject to contract. Finn & Company 1 Portland Place London, W1B 1PN Tel: 020 7631 1202 Fax: 020 7631 1203 www.finnandcompany.co.uk Mathew Finn mathew@finnandcompany.co.uk Charles Curtis charles@finnandcompany.co.uk Ali Rana ali@finnandcompany.co.uk Misrepresentation Act: Finn & Company for themselves and for the vendors of these properties whose agent they are give notice that:1. These particulars do not constitute, nor constitute any part of the offer for sale or contract for sale. 2. All statements contained in these particulars as to these properties are made without responsibility on the part of Finn & Co or the vendors or lessors. 3. None of the statements contained in these particulars as to these properties are to be relied on as statements or representations of fact. 4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the properties. The plans are photographically reproduces and therefore not to scale except where expressly stated. The plans or photographs or drawings are not intended to depict the interest to be disposed of. Where location plans are based on Ordnance Survey maps this is with the consent of HM Stationery Office, Crown Copyright Reserved. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale. 7. Any properties or drawings of the relevant properties or part thereof or the neighbouring areas may not depict the properties or the neighbouring areas at the date a prospective purchaser or tenant inspects the brochure. Prospective purchasers or tenants are strongly advised to inspect the properties and neighbouring areas. 8. Finn & Company have not measured the properties and have relied upon clients information. Therefore Finn & Co give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements.9. All terms quoted are exclusive of value added tax unless otherwise stated. 10. The vendors do not give and neither Finn & Co nor any person in their employment has any warranty whatsoever in relation to these properties. 11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. 12. These details were prepared as of October 2015.