CEDAR HOUSE Spa Road, Gloucester, GL1 1XL SOUTH WEST OFFICE INVESTMENT WITH ASSET MANAGEMENT OPPORTUNITIES

Transcription

1 CEDAR HOUSE Spa Road,, GL XL SOUTH WEST OFFICE INVESTMENT WITH ASSET MANAGEMENT OPPORTUNITIES

2 INVESTMENT SUMMARY An extensive office building in central providing 38,427 sq ft (3, sq m) of Office (B) accommodation arranged over five floors. Freehold. Car parking for approximately 03 vehicles (part undercroft); a :373 sq ft ratio. The property occupies a site of 0.92 Acres (0.37ha) providing a site cover of approximately 24%. A mix of open plan office accommodation and storage on each of the upper floors with regular shaped floor plates over two wings. Ground and part first provide public access for Job Centre applicants. Constructed in the early 970 s the property was extensively refurbished in 99/992 with a recent upgrade in Let to the Secretary of State for Communities and Local Government on a full repairing and insuring (FRI) lease expiring 3st March 208. Fully income producing at a passing rent of 300,000 per annum reflecting 7.80 per sq ft. Various asset management initiatives available to include lease renewal negotiations, residential conversion or redevelopment of the entire site (subject to necessary planning consents). We are seeking offers in excess of 3,200,000 (Three Million, Two Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 8.8% and a low capital value of per sq ft NIA, assuming purchaser s costs of 6.47%. Cedar House, Spa Road,, GL XL

3 LOCATION The historic Cathedral City of is the administrative centre of shire and considered one of the principal commercial centres of the south west of England. is situated on the River Severn and lies close to the Welsh Border, approximately 32 miles (5 km) to the north east of Bristol, 45 miles (72 km) south west of Birmingham and 94 miles (50 km) west of London. A40The town benefits from excellent road B4063 communications being North located to at the intersection of the A40 and A438, providing a direct link to the at Junctions Birmingham, A and 2. The provides further links to the national motorway network including the M4, 0, M6 and M42. A38 s railway station provides regular services to A47 London (Paddington) with a fastest journey time of approximately 4 minutes. Direct services also operate to Bristol (54 minutes), A430 Birmingham (55 minutes) and Cardiff (63 minutes). Airport is located within 9 miles (4 km) from the city centre, which offers services to B4072 Belfast, Jersey and the Isle of Man as well as private charters. Additionally, SwindonBristol International Airport lies approximately 35 miles (63 km) south of, and & offers M4a wealth of domestic and international flights. a CEDAR HOUSE Docks Cathedral Spa Road Station edgeley icke A38 A473 B4073 SITUATION Bristol Cedar House is situated on Spa Road which lies 0.5 miles (800 metres) due south of the centre of the City and within 0.2 miles (350 metres) east of the popular historic attraction of Docks. 2 B4008 South to Bristol A473 CEDAR HOUSE A46 To the west of Cedar House (some 300 yards away) is the Quays designer outlet centre (opened in 200) which has an outstanding mix of high street and designer shops as well as a plethora of restaurants, cafes and bars. Spa Road itself comprises a mix of residential accommodation, care homes, a bowling club, recreational park and office premises. is set to benefit from 90m worth of regeneration across a number of schemes including the Blackfriars scheme, a redevelopment of s Waterside and at the Ladybellegate car park on which a large student accommodation scheme is to be erected. The 4.3 acre site next to Docks has undergone major ground works ready for the construction of new residential apartments as well as a 04-bedroom Premier Inn Hotel, Brewers Fayre restaurant and Costa Coffee. The regeneration plan also allows for a new Civic Centre, Magistrates and Crown Courts, improved traffic flow around the city centre and pedestrian links from the Cathedral to the Quays along the waterfront. provides a primary catchment population of 357,000 persons and in the last ten years, total employment in increased at a faster rate than the Retail PROMIS average. Over 75% of total employment in is accounted for by the service sector. Within this sector, financial and business services account for approximately 2% of total employment (Source: Promis). Cedar House, Spa Road,, GL XL

4 m a 3 0 DESCRIPTION Cedar House currently provides B office accommodation of approximately 38,427 sq ft (3, sq m) arranged over ground and four upper floors. The ground and part first floors provide accommodation for a Job Centre Plus with administrative offices in the remainder of the building and plant rooms above the 4th floor. Cedar House was built in the early 970 s and fully refurbished around 99, a further small amount of renovation was undertaken in 2006 when the Job Centre was upgraded to a Job Centre Plus. Internally, the office accommodation is dated although there are two (8 person/ 630 kg maximum) central core lifts and an additional public lift serving the ground and first floors. The property provides car parking facilities for approximately 03 cars with a large proportion housed in an undercroft at ground floor level in the east portion of the building. The property occupies a site area of 0.92 acres (0.37 ha) providing a site cover of approximately 24%. ACCOMMODATION We have been provided with the total floor area, being 38,427 sq ft (3, sq m) which we understand has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a net internal area (NIA) basis. In addition, we have sourced the following net internal floor areas from the Valuation Office Agency ( which gives a breakdown of the total on a floor by floor basis; Floor Sq m Sq ft 4.6m a to 0 5 Cedar House Spa Road GL XL Spa Mews Maitland Mews 2 Norfolk Mews 2 Ground ,62 First ,072 Garage c N 2 2 SPA ROAD 4 4.9m to 9 Maitland House 7 For identification purposes only 9 Second ,03 82 Club Third , m 4.3m SPA ROAD Fourth ,49 Total 3, , to 200 Shelter 37 El Sub Sta Cedar House TENURE 204 to 24 7 Pavilion Bowling Green Freehold. ST LUKE SOUTHGATE STREET 5 SOMERSET PLACE 53 53a THE CHESTNUTS 2 FS STREET m 25m 50m 75m PH 57 Cedar House, Spa Road,, GL XL 9

5 TENANCY The property is let in its entirety to the Secretary of State for Communities and Local Government on a full repairing and insuring (FRI) lease expiring 3st March 208. The lease is inside the security of tenure provisions of the Landlord and Tenant 954 Act. Negotiations are at an advanced stage with the tenant in relation to a three year lease extension. The current passing rent is 300,000 per annum. This reflects 7.80 per sq ft an overall basis. Cedar House currently accommodates a Job Centre Plus on the Ground and Part First floor with the remaining upper floors occupied by Job Centre Plus regional office. The building is currently fully occupied by the tenant. COVENANT Job Centre Plus was the name of a government executive agency, formed by the amalgamation of two agencies: the Employment Service, which operated Jobcentres, and the Benefits Agency, which ran social security offices. Job Centre Plus as an executive agency ceased to exist as of 4 October 20. Services offered by Job Centre Plus are now offered directly by the Department for Work and Pensions. Although the Job Centre Plus corporate brand remains in place at the present time, it functions just as a public brand of the Department rather than a separate entity. ASSET MANAGEMENT The asset currently provides a number of opportunities. Agree to a new lease to The Secretary of State for Communities and Local Government. To carry out refurbishment works on the office accommodation and let on a floor by floor or entire basis. Convert the existing accommodation to residential under the current Permitted Development planning regulations (subject to planning consents). Redevelop the entire site with a new building for commercial or residential use (subject to planning consents). EPC An EPC assessment is available upon request. Cedar House, Spa Road,, GL XL

6 VAT The property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC). PROPOSAL Offers are invited in excess of 3,200,000 (Three Million, Two Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 8.8% and a capital value of per sq ft NIA, after purchaser s costs of 6.47%. FURTHER INFORMATION Should you require further information or wish to view the property please contact either:- STEVEN POLLACK T: M: E: steven@buchananbond.com JONATHAN SKERRY T: M: E: jonathan@buchananbond.com 3-5 Barrett Street St Christopher s Place London WU AY Misrepresentation Act 967 & Declaration Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract. ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property. SEPTEMBER 207 Brochure: Adrian Gates Photography & Design. Tel: