Prime Long Let Day Nursery Investment Opportunity Busy Bees, 2 Armstrong Road, Littlemore, Oxford OX4 4XT
INVESTMENT SUMMARY n The property is located in Littlemore 2½ miles south of Oxford city centre n The property extends to 6,084 sq.ft and includes 28 car parking spaces n Newly refurbished children s nursery n Planning permission for 270 dwellings on land surrounding the site n Let to the strong covenant of Busy Bees Nurseries Limited n New 20 year lease with effect from 6th May 2015. n 5 yearly upward only reviews to 2.5% per annum compounded n Current rent 110,000 per annum n Freehold n Offers sought in excess of 1,730,000 n Net initial yield 6.00%, assuming costs of purchase of 5.80% LOCATION Oxford is an internationally renowned University city and is the commercial and administrative centre for Oxfordshire. Oxford University is ranked as one of the top two universities in the UK and has acted as a centre for learning for over 800 years. The city has an estimated student population of 30,000. This historic city is located approximately 56 miles north-west of London, 26 miles north of Reading and 72 miles south of Birmingham. Road communications are excellent being situated close to the A40 dual carriageway, which connects to Junction 8 of the M40 Motorway and the A34 dual carriageway connecting the city with Junction 13 of the M4 Motorway to the south. Oxford has a fast and frequent train service to London with a fastest journey time of 56 minutes, with regular services to the South Coast via Reading, Birmingham and the North. London Heathrow airport is located approximately 49 miles to the south east.
St. Georges Manor SAE Institute Planning for 270 dwellings Oxford Science Park SITUATION The property lies on Armstrong Road in Littlemore. Littlemore is approximately 2 ½ miles to the south of the city centre and approximately ½ mile to south the of the A4142 Oxford Eastern By-pass. Directly to the north of the property is a former hospital site which has been developed into large scale high end housing with a mix of town houses and the conversion of a listed building into apartments on a landscaped 12 acre site. Oxford Science Park and the SAE Institute are in very close proximity and as per the plan attached, the 16 acre former hospital site surrounding the subject property has recently been granted outline planning permission (application number 4/02940). Outline planning consent was granted on 30th April 2015 for the development of 270 dwellings of various sizes. As such the nursery will be at the heart of the future development. DESCRIPTION The property comprises a purpose built single storey nursery building with along with a garden area and self contained car park. The building is fully DDA compliant. A full refurbishment has recently been completed to include, new kitchen, garden area and all internal areas. There are 28 marked car parking spaces including 3 disabled spaces to the front of the property which is accessed from a short driveway off Armstrong Road. SITE AREA The site area is approximately 0.70 acres. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and extends to a Gross Internal Area of 565.20 sq.m (6,084 sq.ft) TENURE The property is held freehold.
TENANCY The property is let in its entirety to Busy Bees Nurseries Limited for a term of 20 years (without break) with effect from 6th May 2015. The current rent is 110,000 per annum. The lease is held on full repairing and insuring terms subject to five yearly upward only reviews based on 2.5% per annum compounded increases at each review. COVENANT Busy Bees Nurseries is the largest UK childcare nursery provider with 237 properties nationwide. The business was founded in 1983 and was sold to Ontario Teachers Pension Plan in October 2013. A summary of the company s accounts is set out below. Busy Bees Nurseries Limited 31/12/2013 31/12/2012 31/12/2011 Turnover 33,182 33,407 32,250 Pre-tax Profit 4,253 4,572 4,137 Shareholders Funds 42,108 37,883 33,365 EPC The property has an EPC rating of C-69. The report can be provided upon request. VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC. PROPOSAL We are instructed to seek offers in excess of 1,730,000 (One Million Seven Hundred and Thirty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.00%, assuming usual costs of purchase of 5.80%.
CONTACTS For further information or if you wish to arrange a viewing, please contact :- ANDREW FRANCK-STEIER 0121 513 0891 andrew.franck-steier@fspproperty.co.uk BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.