Office and Fully Fitted Laboratories Investment For Sale AstraZeneca, Unit 310 Cambridge Science Park, Milton Road, Cambridge CB4 0FZ

Transcription

1 Office and Fully Fitted Laboratories Investment For Sale AstraZeneca, Unit 0 Cambridge Science Park, Milton Road, Cambridge CB4 0FZ Established in 1970 by Trinity College Cambridge

2 investment summary High quality office and fully fitted laboratories investment for sale 5, sq m (58,639 sq ft) on the internationally renowned Cambridge Science Park Let to the undoubted covenant of AstraZeneca UK Ltd (5A1 D&B rating) Gross initial rent of 1,356,864 per annum equating to per sq ft Net initial rent of 1,255,099 per annum Offers are sought in excess of 15,900,000 subject to contract and exclusive of VAT, reflecting a net initial yield 7.46%, assuming standard purchaser's costs of 5.8%

3 King s Lynn M1 A1 Leicester M69 A14 M6 J19 A14 A14 Northampton A11 Newmarket A1 Milton Keynes Luton Stansted A1M M11 A12 M1 Harlow Norwich Bury St. Edmunds Ipswich Felixstowe Harwich A12 location Cambridge, a city renowned worldwide for its history, ancient architecture and huge cultural appeal, is one of the UK s principle tourist locations, for both domestic and overseas visitors and is also an important location for the UK s research and development sector. AstraZeneca has recently announced plans to relocate its new 825,000 sq ft HQ to Cambridge from ECONOMY In the Centre for Cities, Cities Outlook 2013 report, Cambridge is ranked in the UK: M4 M25 LONDON M25 1st for Innovation with 94.5 patents granted in 2011 per 100,000 residents this was more than the next 10 most innovative cities combined. 2nd in terms of the highest proportion of highly skilled workers with 52.2% of its population with high level skills. 1st in the UK for the lowest unemployment JSA claimant count at 1.8%. TRANSPORT Road: 64 miles north of Central London. At the junction of the M11 and the A14 which links the Port of Felixstowe to the east with the M1 and M6 to the west. Rail: Fastest journey time of approximately 45 minutes to London King s Cross station. Air: Stansted Airport is located approximately 35 miles south at Junction 8 of the M11 (with rail connection).

4 DEMOGRAPHICS B Cambridge is ranked 4th in the UK for highest earnings growth between 2011 and (Source: Centre for Cities, Cities Outlook 2013). Current population - 123,900. (Source: 2011 census). Cambridge is ranked 5th in the UK in terms of annual growth in population increase between 2001 and 2011 at 1.2%. (Source: Centre for Cities, Cities Outlook 2013). Latest projections by the County Council forecast that the city is set to grow by approximately 21.5% by 2021 to 147,400. (Source: business/research/ population_research). TOURISM Tourism generates circa 390m of revenue for the local economy and employs circa 10,000 people. The city attracts 4 million visitors each year, and of those, 835,000 stay one night or more. (Source: Cambridge Hotel Futures April 2012). TRAVEL TIMES VIA RAIL* King s Cross Station: 45 minutes Liverpool Street Station: 1 hour 10 minutes Stansted Airport: minutes Heathrow Airport: 1 hour 55 minutes DISTANCE VIA ROAD Cambridge city centre: 4 miles M11: 2 miles Stansted Airport: 35 miles M25/M11 (J27): 47 miles Central London: 64 miles * Times from Cambridge Station...(Source (Source

5 situation The property is located on the Cambridge Science Park (CSP) which is situated within Cambridge's Northern Fringe Area, one of the most prominent and accessible business areas in Cambridge. It accommodates the highest concentration of R&D space and high technology companies in the market. The Northern Fringe comprises the Cambridge Science Park, St John's Innovation Park, Cambridge Business Park and Vision Park. Occupiers include Napp Pharmaceuticals, Cambridge Consultants, Cambridge Silicon Radio, WorldPay, Amgen, Bayer CropScience, Philips Research, Toshiba and the Royal Society of Chemistry. Cambridge Science Park J33 A14 J14 A1309 A14 A1307 J13 A1303 A1303 A1134 A10 Cambridge Science Park The CSP's main entrance is via the A1309 Milton Road which has direct access onto the A14. A secondary access is provided to Kings Hedges Road. The scheme is served by local bus services and has two dedicated stops on the Cambridgeshire Guided Busway which provides frequent, reliable public transport along the A14 corridor linking Huntingdon and St Ives to central Cambridge, and Addenbrookes hospital, the Biomedical Campus and Trumpington to the south. The CSP is opposite the old "Chesterton Sidings" site which is the proposed location of Cambridge's second mainline railway station due for completion in 2015/2016, which will run services to London. The existing Guided Busway will be extended and will connect to the new station. Planning consent was granted in December 2013 and comprises the new station, footbridge, 450 space car park, 1,000 space cycle park, new vehicle access from Cowley Road, new pedestrian and cycle links to the surrounding area and extension to the Guided Busway. J12 A603 M11 To London J11 A1309 A1307 King s Collage

6 NAPP Pharmacuticals IT IT UN UN Junction 33 Guided Busway Stop Cambridge Regional College St Johns Innovation Park Cambridge Science Park Guided Busway Stop Cowley Road Industrial Area Cambridge Business Park Proposals New guided bus interchange and link road Area of Major Change Potential mixed use Development Location of New Station and Parking For indicative purposes only.

7 Trinity Centre Terrace Trinity Centre Childcare Day Nursery Health and Fitness Centre the cambridge science park In the late 1960s, Whitehall urged universities to increase their contact with high technology industry. Trinity College was impressed with the importance of the idea, having a long scientific tradition from Newton onwards. It established the CSP principally to meet these government requests for a greater interchange of ideas, people and facilities between universities and high technology industry. The majority of the land has belonged to Trinity College since its foundation by King Henry VIII in Outline planning permission for the first 14 acres of the CSP was sought in April 1970 and granted in October The first detailed permissions were received in early 1973, and construction of roads, services and the first building commenced in April Over the years, development of the CSP has gathered momentum, both from the expansion of existing occupiers and from the attraction of new businesses. It was extended to 30 acres in 1975; to 58 acres by the addition of the Napp site in 1979; to 86 acres in 1982; to 110 acres in 1985; and now covers 152 acres including 22 acres of Trinity Hall land on Phase 6. It now contains more than 100 companies covering a wide range of high technology industries within buildings totalling around 1,650,000 sq ft. Trinity College plays an active role in promoting contacts of all kinds with University laboratories, with various other local research institutions, and with other CSP companies. Park facilities include: The Trinity Centre, providing bar, restaurant and conference facilities Health and fitness centre 115 place on-site childcare day nursery Cambridge Science Park Directory of tenants Free vacancy, news and profile advertising on Cambridge Science Park website Catalyst Cambridge Science Park magazine profiling occupier developments Cambridge Science Park Innovation Centre Planning consent for new 224 bed 4* hotel The Cambridge Science Park is now a world famous research centre and hot-bed of hi-tech enterprise and is considered to be the leading science park in the UK. It celebrated its 40th anniversary in For further information go to Established in 1970 by Trinity College Cambridge

8 GUIDED BUSWAY AND STOPS TRINITY CENTRE CENTRAL FACILITIES AND FITNESS CLUB DAYCARE NURSERY A14 CAMBRIDGE BUSINESS PARK A1309 MILTON ROAD ST. JOHN S INNOVATION PARK Approximate site boundary shown for illustrative purposes only.

9 MP Unit 0 9 to El Sub Sta 3l6 332 El Sub Sta El Sub Sta ETL KING'S HEDGES ROAD Cambury Court 3l0 ESS site Co Const, CP & ED Bdy Dismantled Railway 12.0m GARRY DRIVE El Sub Sta The site comprises approximately hectares (2.52 acres) on the south-west boundary of the CSP. For indicative purposes only.

10 description The property comprises basement storage, ground and first floors of office and laboratory accommodation with a double height entrance and atrium. There is a substantial plant room at second floor. Built in 1998, with an office extension added in 2011, Unit 0 is a steel frame construction with brick elevations under a pitched roof. The offices are finished with full access raised floors, suspended ceilings with recessed lighting, part partitioned for meeting rooms and Versatemp and VRF air conditioning systems. The laboratories are primarily fitted for molecular biology applications and benefits include; fan coil air conditioning system, metal tile ceilings with integral light fittings, 9 fume cabinets and walk-in cold stores and freezers. The property benefits from both male and female toilets on ground and first floor, a passenger lift, and a goods lift (which has access to the rear yard and plant room). There is a fully air conditioned basement communications room. Externally, the property has 161 delineated car parking spaces, plus two disabled spaces. There is also space for a further 11 spaces within the rear service area that are not currently delineated, thereby giving a total of 174 car parking spaces (1:337 per sq ft based on an NIA basis) and 46 covered cycle bays. The purchaser can benefit from a number of warranties in relation to the office extension. epc The property has been awarded an EPC rating for the Laboratory space of D91, Office space of F150 and the Office extension of B47. accommodation The property provides the following approximate internal floor areas; Sq M Sq Ft Basement ,129 Ground Reception Ground Atrium ,090 Ground Offices 1, ,994 Ground Labs GIA 1, ,678 NIA 1, ,350 First Meeting Area First Offices 1, ,440 First Labs GIA 1, ,678 NIA 1, ,407 Total GIA 5, ,238 NIA 5, ,639

11 BASEMENT LEVEL GROUND FLOOR LEVEL FIRST FLOOR LEVEL

12 tenure The property will be held on a new 150 year leasehold interest from completion, from Trinity College, Cambridge. The rent payable is the greater of the base rent ( 50,882 per annum) or 7.5% of the total rents receivable during the year immediately preceding the assessment date. The base rent is to rise by RPI annually, compounded five yearly. Based on the initial rent, the head rent will be 101,765 per annum. The user clause within the lease is as follows: Not to use the Premises or any part thereof other than for research and development within Class B1(b) of the Town and Country Planning (Use Clauses) Order 1987 as in force at the date of this Lease being a purpose appropriate to a Science Park that is to say any one or more of the following uses: scientific research associated with industrial production light industrial production of a kind which is dependent on regular consultation with either or both of the following: 1. The Tenant's own research development and design staff established in the Cambridge Study Area 2. The scientific staff or facilities of the University of Cambridge or of local scientific institutions 3. Ancillary buildings and works appropriate in the opinion of the Landlord acting reasonably to the use of the Premises as an integral part of a Science Park. There is an estate service charge in respect of the communal areas of the Cambridge Science Park which is managed by Trinity College, Cambridge as freeholder. The cost of this is passed on to the tenant under the terms of its lease. For the current year, this equates to 0.62 per sq ft. A copy of the headlease and occupational lease is available on request.

13 tenancy The property is let in its entirety to AstraZeneca UK Limited on a 5 year lease from 28 November 2013 at an initial rent of 1,356,864 per annum. Assuming a groung rent of 101,765, this would provide a net rental of 1,255,099 during the first year. The lease is held outside s of the Landlord and Tenant Act The tenant has the right to determine the lease on or any time after 28 November 2016 with rolling 6 months notice. The lease is subject to a photographic schedule of condition. tenant covenant AstraZeneca is a global biopharmaceutical business that develops prescription medicines primarily for the treatment of serious illnesses and diseases. AstraZeneca's new 330 million purpose built global headquarters in Cambridge is due for completion in The pharmaceutical giant will occupy approximately 11 acres of the Cambridge Biomedical Campus, at Addenbrookes Hospital, for its global research and development centre to house 2,000 members of staff. Following the closure of their London HQ and Cheshire facility. AstraZeneca are due to commence a significant refurbishment of unit 0 from April 2014, and its intention is to be operational from mid July for office staff and September for laboratory staff. Unit 0 will house 225 staff from various parts of the AstraZeneca business. AstraZeneca has a Dun & Bradstreet rating of 5A1, representing a minimum risk of business failure. The company has shown the following recent financial performance: Year to Year to Year to Dec 2012 Dec 2011 Dec 2010 ( 000's) ( 000's) ( 000's) Turnover 5,527,000 7,495,000 7,638,000 Pre-Tax Profit 9,714,000 3,246,000 2,219,000 Tangible Net Worth 3,639,000 3,132,000 2,496,000

14 cambridge office and laboratory market The Cambridge office and laboratory market comprises around 7.4m sq ft of accommodation. In spite of the general economic slowdown, the Cambridge office and laboratory market continues to show strong growth. Prime office rents in the city centre have now achieved 34 per sq ft and shown annual growth of 4.6% over the past 12 months and 8.3% per annum over the past three years. However, with limited supply of grade A accommodation, quality second hand space is achieving rents of per sq ft, up 22.0% over the year, and lesser quality second hand space has reached rents of per sq ft with substantial annual growth of 42.9%. Prime rents for fully fitted laboratories stand at per sq ft having remained stable during Take up for 2013 was recorded at an exceptional 780,150 sq ft compared to an annual average of circa 540,000 sq ft since Supply of good quality accommodation continues to fall with very limited availability. Supply on the Cambridge Science Park itself is now only 1.6% of total stock. Occupier demand remains robust with over 2,557,000 million sq ft of active office and laboratory requirements for Cambridge. Year Annual Office Annual Lab Take up (sq ft) Take up (sq ft) ,500 43, , , , , , , ,700 23, ,000 43, , , ,800 53, , ,000 Source: Bidwells Data Book (Dec 2013)

15 letting deals Cambridge Office and Laboratory Transaction Date Property Address Tenant Grade Area (sq ft) Rent Comment Office Deals March 14 Unit 194, Cambridge Napp Pharmaceutical New 102, New 15 year lease on 28,582 sq ft. Science Park Group Remainder on rent review at 25. May 13 Churchill House, CSR Existing 53, Lease regear. Cambridge Business Park April Station Road Pre let to Birketts LLP New 15, year lease. 15 year term certain. March Station Road Mott McDonald New 44, year lease. 10 year term certain. September 12 Cavendish House, Mathworks Refurbished 25, year lease. 6 months rent free. Cambridge Business Park September 12 Botantic House, KPMG New 7, year lease. 9 months rent free. 100 Hills Road May 12 Broers Building, Base 4 Innovation Ltd New 3, year lease with 3 year break. Hauser Forum Laboratory Deals February 14 Unit 418, Cambridge Takeda Cambridge Ltd 36, New 15 year reversionary lease Science Park from March months rent free ` and 1 year half rent. January 14 Unit 430, Cambridge Takeda Cambridge Ltd New 46, Shell and core only. Science Park June 10 Unit 410, Cambridge Chirotech/Dr Reddies Refurbished 32, A new 13 year sub-lease from Science Park AstraZeneca UK Ltd. Breaks at the end of the 5th and 10th years. December 12 Unit 436, Cambridge Astex Therapeutics Ltd 36, Rent review December 2012 Science Park

16 cambridge investment market There remains a shortage of institutional quality office stock in the South East compared to demand from investors seeking strong location and property characteristics. Cambridge is considered to be one of the most buoyant office markets outside London and has attracted a range of overseas and UK based investors. Since January 2011 it has enjoyed around 386m of office investment transactions. Recent transactions include: Address Tenant Area Lease Term Rent pa Transaction Price Comment Sq Ft ( psf) Date (Yield) 22 Station Road, Mott MacDonald, 64,770 AWULT of 11.7 years. 2,066,335 July m Long leasehold with 5% gearing Birketts LLP, One To breaks 10.6 years. ( overall) (6.30%) Pre let funding. vacant suite Broers Building, Various 41,807 AWULT of 5.88 years. 971,420 November 13.2m Long leasehold 121 years unexpired Hauser Forum To breaks 3.35 years. ( 23.24) 2013 (6.22% IY) at peppercorn rent 21 JJ Thomson Net income Avenue West after deduction Cambridge Site, for voids Cambridge 875,974 ERV 1,215,000 once 100% let Unit 270, World Pay Ltd 38,907 Lease expiry 750,000 November 8.4m Long leasehold expiring 25 December Cambridge ( 19.30) 2013 (6.85%) 2112 subject to a 15% gearing to Science Park rents receivable and minimum ground Cambridge of 60,000pa Unit 296, Xaar Plc 16,445 5 years unexpired 370,237 November 4.15m Long leasehold with 112 years Cambridge ( 22.50) 2013 (7.17%) unexpired with 15% gearing to ERV Science Park Mount Pleasant Various 41,614 AWULT of 3 years. 740,852 November m Freehold House, To breaks 3 years. ( 17.80) 2013 (6.6%) Huntingdon Road Cambridge Sovereign/Victory/ Various 89,889 AWULT of 7.41 years. 1,825,940 December 28.5m Freehold Conqueror/ To breaks 3.5 years. ( (6.06%) Endeavour House overall) Chivers Way, Vision Park, Histon, Cambridge

17 capital allowances The purchaser is to benefit from any unclaimed capital allowances. vat VAT will be chargeable on the purchase price. It is anticipated that the transaction can be structured as a Transfer of a Going Concern. proposal Our client is seeking offers in excess of 15,900,000 subject to contract and exclusive of VAT for its long leasehold interest. A purchase at this level reflects a net initial yield of 7.46%, allowing for standard purchaser's costs at 5.8%. Further Information Should you have any queries or wish to make an inspection, please contact: Andrew Groves DD: andrew.groves@bidwells.co.uk Saul Western DD: saul.western@bidwells.co.uk Lucy Young DD: lucy.young@bidwells.co.uk Bidwells LLP 8 Pollen Street London W1S 1NG Tel: March 2014

18 IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 AND THE PROPERTY MISDESCRIPTIONS ACT 1991 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form par t of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP has no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection Cert No 8542 ISO 9001, ISO bidwells.co.uk