10 22 Victoria Street Bristol BS1 6BN. Prime Freehold City Centre Office Investment

Transcription

1 10 22 Victoria Street Bristol BS1 6BN rime Freehold City Centre Office Investment

2 Investment Summary rime Bristol office location at junction of Victoria Street and Counterslip Grade A offices over ground and four upper floors behind Grade II listed period façade Freehold 47,031 sq ft sq ft NIA Grade A Office space 61% income derived from a Serviced Office Management Agreement with Orega (Management) Ltd Two floors under offer; 3rd floor to Shaw Trust Ltd and 4th floor to laces for eople Homes Ltd WAULT 5 years to tenant breaks and end of Management Agreement Total income 892,863 per annum Offers are sought in excess of 12,056,000 (Twelve Million and Fifty Six Thousand pounds) for the freehold interest, reflecting a net initial yield of 7% assuming normal purchaser s costs of 5.8% Click photo to enlarge Investment Summary Aerial Location Communications Situation Description, Accommodation & Tenure Tenancies Covenants Bristol Market roposal Victoria Street

3 Aerial Temple Meads Temple Quay Victoria Street Queen Square Finzel s Reach Cabot Circus Broadmead

4 Location Bristol is the 5th largest conurbation in the UK and the South West s port re A370 A371 A370 Clevedon 21 M5 M4 20 A368 A ortishead A38 M5 M4 to Wales Avonmouth 19 Backwell A370 M a 18 A369 A38 Bristol International M49 1 M Thornbury 20/ BRISTOL A37 A38 M32 M4 M5 Keynsham M5 to Birmingham A4 M4 to London M4 A420 A46 BATH major commercial and retail centre. The city is consistently voted as one of the best places to live and work in the UK. Bristol has a strong banking and service sector with world class knowledge economy bases in Aerospace, Defence, Engineering, ICT, Electronics, Financial Services, Media, Creative and Environmental industries. Bristol has an estimated population of 428,000 (2011 census) and a larger urban zone with an estimated 1.6million residents. Bristol is ranked 3rd highest per capita GD after London and Nottingham. Bristol s employment rate is 71.4% (March 2014), the highest of the core cities. The city s two Universities, Bristol University and the University of the West of England, contribute to the skilled labour pool and Bristol accommodates more than 50,000 students in total. Bristol s major employers include BBC, BAE Systems, EE, Hewlett ackard, Lloyds Banking Group, Rolls Royce and the NHS. Cheddar A37 Midsomer Norton Clifton Suspension Bridge 2. Cabot Circus 3. Temple Meads Station

5 A38 TO M4 / M5 M32 TO CLIFTON Communications MARLBOROUGH STREET ARK STREET HOLIDAY INN BRISTOL ROYAL INFIRMARY REMIER INN LEWINS MEAD RUERT ST THE GUILDHALL HIODROME COLSTON AV BROAD QUAY BUS STATION BALDWIN ST OLD VIC THEATRE UNION ST THE HORSEFAIR BROADMEAD CASTLE ARK WINE STREET BROAD WEIR BOND STREET LOWER CASTLE STREET THE GALLERIES Victoria Street COUNTERSLI TEMLE BACK CABOT CIRCUS BOND STREET TEMLE WAY TO M4 JUNCTION 19 OLD MARKET STREET The city benefits from excellent strategic road links, located at the intersection of the M4 and M5 motorways providing access to the South West, South Wales, the Midlands and South East England. The M32 connects the city centre with the M4 at Junction 19. Bristol is located 120 miles west of London, 90 miles south of Birmingham and 44 miles east of Cardiff. HARBOURSIDE ANCHOR BRISTOL MILLENIUM SQUARE M SHED CUMBERLAND ROAD RINCE ST QUEEN SQUARE ARNOLFINI THE GROVE CO MMERCIAL ROAD WELSH BACK REDCLIFFE STREET REDCLIFF HILL ST THOMAS STREET VICTORIA STREET ORTWALL LN REDCLIFFE WAY TO BATH TEMLE MEADS STATION BATH ROAD Bristol is served by two main line railway stations, Temple Meads in the city centre and arkway 5 miles north of the city centre. Both stations provided regular intercity services to major destinations across the UK including London addington, Manchester, Birmingham and Cardiff. The fastest journey times to London addington are 1 hour 40 minutes and 1 hour 20 minutes respectively, which will improve further once electrification of the railway occurs by TO BRISTOL AIRORT CORONATION ROAD CLARENCE ROAD YORK ROAD Bristol International Airport is the fastest growing airport in the UK, located 8 miles south of the city centre via the A38. The airport serves over 6.2million passengers a year, flying to 114 scheduled destinations throughout the UK and all other major European countries.

6 Situation BATH STREET Bridgewater House COUNTERSLI The aragon Victoria Street is Bristol s prime office location and Victoria Street occupies a prominent location at the northern end of the street on the junction with Counterslip. Victoria Street is the principal route from Bristol Bridge and Cabot Circus, in the city centre, to Bristol Temple Meads railway station and Temple Quay. It adjoins the inner ring road (A4044) which links directly to the M32 and provides easy access to the M4/M5 national motorway network. TEMLE STREET THOMAS LANE VICTORIA STREET LONG ROW Victoria House ST THOMAS STREET EAST WATER LANE Colston lace The area around Victoria Street is home to many landmark office buildings; occupiers include Barclays Wealth and BDO in Bridgwater House, Thrings LL and EY in The aragon as well as Clarke Willmott, Lyons Davidson, TLT and a range of retailers including Tesco, Friska and Subway Victoria Street is situated next to Finzel s Reach a mixed use ST THOMAS STREET development of offices, residential and leisure. Significant proposed developments here include a new remier Inn and Finzel s Bridge, linking the development to Castle ark and Cabot Circus. These developments, the associated residential accommodation MITCHELL LANE and leisure occupiers, will further enhance the quality of the area.

7 Description The property was built in 1999 behind a retained period façade and is constructed over ground and 4 upper floors. The property was extensively refurbished in 2008 and the building provides the following amenities: Breeam very good VRV air conditioning LG3 lighting Metal tiled suspended ceiling Full access raised floors Two passenger lifts Accommodation Floor Sq Ft Ground Floor Reception 322 Ground Floor Offices 5,099 First Floor Offices 11,190 Second Floor Offices 11,190 Third Floor Offices 11,190 Fourth Floor Offices 8,040 Total 47,031 Four showers with locker facilities 16 secure onsite parking spaces The serviced offices benefit from a dedicated entrance on the corner of Victoria Street and Counterslip. There is a separate entrance situated on Victoria Street which provides access to all floors and both the lifts for the building. The reception area is being refurbished to include a manned reception desk. Tenure Freehold.

8 Tenancies Management Agreement Orega (Management) Ltd operate the ground, first and second floors under a Serviced Office Management Agreement from 1 December 2010 and expiring 30 November The agreement includes 9 car parking spaces. Tenancies The third floor, comprising 11,190 sq ft, is under offer to The Shaw Trust Ltd. The agreed term is for a 10 year lease, with breaks at year 5 and year 6, at a rent of 201,420 pa ( psf). The lease will include 4 car parking spaces. The equivalent rental income payable to the building owner varies annually depending on occupancy levels and services income. The equivalent rental income is payable monthly in arrears. An additional profit share payment is payable to the owner at the end of each year, assuming certain targets are met. Further information is available on request. The equivalent rental income under the Management Agreement for the year ending 30 November 2014 was 542,793. The fourth floor, comprising 8,040 sq ft, is under offer to laces for eople Homes Ltd. The agreed term is for a 10 year lease, with a break at year 5, at a rent of 148,740 pa ( psf). The lease will include 2 car parking spaces. Summary The total income from the property derived under the Management Agreement and the Tenancies is 892,863 per annum.

9 Serviced Office Operator Orega (Management) Ltd Co No Orega (Management) Ltd is a privately owned serviced office provider which opened its first business centre in Orega has 14 city centre locations in UK and Europe. Covenants The Shaw Trust Ltd Co No The Shaw Trust is the UK s largest third sector provider of employment services for disabled and disadvantaged people. It works in partnership with public sector organisations and provide diverse services for business. laces for eople Homes Ltd Co No I laces for eople is one of the largest property management, development and regeneration companies in the UK, owning or managing 148,000 homes and with assets in excess of 3 billion. Orega s operation at 10 Victoria Street has been running since Over the last 3 years the serviced office centre has run at an average occupancy rate of 85% and is currently 95% occupied. In addition, Orega offer a virtual office service for clients from the building. 31/03/ /03/ /03/ Turnover 107,897 96,590 85,634 re-tax profit 1,734 (3,821) (392) 31/03/ /03/ Turnover 485, ,086 re-tax profit 28,228 17,071 Further information is available on request. Shareholder Funds 42,576 40,826 42,643 Total capital reserves 1,983,197 1,874,451 lanning EC VAT The property is Grade II listed. Any owner will benefit from the fact that there are no empty rates payable on vacant space under current legislation. The property has an EC rating of B. A copy of the EC certificate is available on request. The property is elected for VAT. We anticipate that the sale will be dealt with as a Transfer of a Going Concern (TOGC).

10 Bristol Market Bristol City Centre Office Market Total stock 12.5million sq ft rime Headline rents psf Growing tenant demand The 2014 take up of 836,858 sq ft was the third highest central area office take up ever recorded Limited Grade A city centre accommodation available, estimated at 200,000 sq ft with very limited developments in the pipe line Reduction in grade B space Tenant incentives reducing Rental Evidence Date Address Headline Rent (per sq ft) Size sq ft Tenant Under offer Bridgwater House, Finzel s Reach ,000 EDF Energy March 2015 Broad Quay House ,057 Just Eat Jan 2015 One Victoria Street ,000 Mapfre Abraxus Dec Queen Square ,144 KMG LL Oct 2014 Two Glass Wharf, Temple Quay ,157 wc March 2014 Bridgwater House, Finzel s Reach ,917 BDO Investment Evidence Date Address urchase rice Yield Size (sq ft) Tenants Lease Terms Under Offer 66 Queen Square 32,700, % 61,497 KMG LL 15 years Jan Linear ark 17,250, % 51,622 Multi let 4.6 years Dec 2014 King s Orchard 29,750, % 89,010 Bevan Brittan 12.5 years Mar 2014 The aragon 29,450, % 75,373 Multi let 6.76 years

11 roposal We are instructed to seek offers in excess of 12,056,000 (Twelve Million and Fifty Six Thousand ounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7%, assuming normal purchaser s costs of 5.8%. Offers for the freehold interest are invited, subject to contract. The deadline for offers is 5pm on Thursday 21 May. Further Information For further information or to arrange an inspection please contact the sole agents: Ian Lambert T: E: ian.lambert@htc.uk.com Gemma-Jane Ogden T: E: gemma-jane.ogden@htc.uk.com Hartnell Taylor Cook LL for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LL has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn. Designed and produced by 04/