INDUSTRIAL INVESTMENT FOR SALE TALLENTS HOUSE 21 SOUTH GYLE CRESCENT EDINBURGH EH12 9PB

Transcription

1 INDUSTRIAL INVESTMENT FOR SALE TALLENTS HOUSE 21 SOUTH GYLE CRESCENT EH12 9PB

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3 TALLENTS HOUSE 21 SOUTH GYLE CRESCENT INVESTMENT SUMMARY Prominently situated in Edinburgh s premier industrial and commercial location, South Gyle Industrial Estate, to the West of the City. Strong location, 4 miles from city centre, 3 miles from airport and next to major road interchange. Good quality warehouse and office accommodation extending to 94,323 sq ft (GIA) on a large rectangular site of 4.84 acres. Low site cover of only 35.6%. Let to Royal Mail Group Ltd, whose ultimate parent company is state owned and soon to be privatised. Main UK facility for distribution of Royal Mail memorabilia and collectable stamps and major West Edinburgh sorting office covering EH11 and EH12 postcodes. Current passing rent of 635,000 per annum. 20 year FRI lease from March Seeking offers in excess of 6,500,000. Net initial yield of 9.23% after allowing for purchaser s costs at 5.8%.

4 CAPITAL CITY & GLOBAL BUSINESS CENTRE The City of Edinburgh, which has a population of approximately 490,000, is at the heart of an economically strong and diverse city region, which is the fastest growing part of Scotland, with a population of more than 1.6 million, 30% of the Scottish total. Edinburgh is recognised for its strengths in banking, investment management and asset servicing. Measured by equity assets under management, Edinburgh is ranked as the UK s second largest and Europe s fourth largest financial centre. Edinburgh has an unemployment rate which is amongst the lowest in the UK. The City has, at 47.4%, the third highest proportion of residents with higher level qualifications, after Oxford and Cambridge, and through its four universities has a wealth of graduate talent that inward investing companies view as one of the key attractions of the City and its workforce. As the centre of Scotland s Government, as well as its legal system, the public sector also plays a central role in the economy of Edinburgh with the establishment in 1999 of the Scottish Parliament providing additional stimulus to the sector. There is a major public presence through the Scottish Office, UK Central Government Departments of State, major public sector institutions and executive agencies. Other major public sector related employers include NHS Lothian and Edinburgh s Universities. Edinburgh is the UK s most visited city outside London with 3.5 million visitors to the Scottish Capital in 2010 generating a total tourism spend in excess of 1 billion., SCOTLAND S CAPITAL CITY, IS ONE OF THE UK S MOST SUCCESSFUL AND PROSPEROUS CITIES. THIS ICONIC CITY IS HOME TO THE SCOTTISH PARLIAMENT, SCOTTISH GOVERNMENT AND SCOTLAND S LEGAL SYSTEM, AND IS GLOBALLY RECOGNISED AS A FINANCIAL CENTRE.

5 SOUTH GYLE TALLENTS HOUSE 21 SOUTH GYLE CRESCENT Tallents House occupies a prime position on South Gyle Crescent, which lies at the heart of the West Edinburgh Business District, approximately 4 miles West of Edinburgh City Centre. South Gyle benefits from excellent transport links via road, air, tram and rail. ROAD South Gyle is situated adjacent to the A720 Edinburgh City Bypass, and close to the intersection of the M8, A8 and A720. The M8 motorway provides access to Glasgow in the west and links with the M74 motorway which becomes the M6 in England. The A8 provides access directly to Edinburgh Airport (5 minutes drive time), the M9 and A90/M90. The M9 motorway to the west also provides access to nearby Falkirk and Stirling, whilst the M90 to the north across the Forth Road Bridge provides access to Dundee, Perth and Inverness. South Gyle provides easy access to Edinburgh city centre and surrounds. In addition 4 bus companies serve South Gyle/Edinburgh Park and the adjacent Gyle Shopping Centre. The bus services cover an extensive catchment area throughout Central Scotland. AIR Edinburgh International Airport, the fifth largest airport in the UK, is situated 3 miles West of South Gyle and is easily accessible. It is one of the UK s fastest growing airports and Scotland s busiest with over 9 million passengers each year to both international and domestic locations. The airport is serviced by over 40 airlines connecting Edinburgh to 120 destinations. TRAM Edinburgh s new tram network is due to be operational in 2014 and will provide a direct, quick route between the West and centre of Edinburgh, connecting with Edinburgh International Airport. The tram will pass through South Gyle and Edinburgh Park. There are 2 nearby tram stops at Edinburgh Park and Edinburgh Park Central. RAIL There are 2 rail stations nearby, South Gyle and Edinburgh Park, which are both in close proximity to the subject property. These provide regular services to Edinburgh city centre and over 30 other stations, covering the Lothians, Central Scotland, Fife and Tayside, as well as connecting with services to the rest of Scotland, London and the UK. The main Glasgow to Edinburgh rail line runs directly past Tallents House. There are plentiful local services with frequent connections across the Edinburgh City region.

6 SOUTH GYLE & WEST BUSINESS DISTRICT PARK RAIL STATION AIRPORT TO BE SAINSBURY S BANK GYLE SHOPPING CENTRE SOUTH GYLE RAIL STATION South Gyle is part of the West Edinburgh Business District. It is part of an established commercial area that boasts a number of the UK s largest firms in a mixture of industrial/distribution and office buildings, including: CITY BYPASS PARK AEGON RBS DAVID LLOYD Royal Bank of Scotland Lloyds Banking Group HSBC Tesco Bank Aegon UPS Yodel (formerly DHL Express) Virgin Media Scottish Ministers Edinburgh University Heineken Sainsbury s Bank NOVOTEL HERMISTON GAIT RETAIL PARK PREMIER INN LLOYDS BANKING GROUP YODEL VIRGIN MEDIA HEINEKEN TESCO BANK There are also amenities for staff within South Gyle and nearby Edinburgh Park, including the Gyle Shopping Centre, Hermiston Gait Retail Park, and a David Lloyd Leisure Centre on Glasgow Road. TALLENTS HOUSE HALFORDS / AUTOGLASS GLASGOW MAINLINE RAILWAY TRAMLINE (under construction) SOUTH GYLE TRADE PARK BANKHEAD INDUSTRIAL ESTATE CLOCKTOWER BUSINESS PARK

7 TALLENTS HOUSE 21 SOUTH GYLE CRESCENT DESCRIPTION Tallents House was constructed in 2000 and extended in It is of steel portal frame construction with brick built external walls and a pitched roof. The property provides office and warehouse accommodation with 3 loading bays, a secure internal loading bay plus extensive external yard and car parking areas. WAREHOUSE ACCOMMODATION The warehouse is situated to the rear of the office accommodation and provides both single and double height facilities. The single height warehouse (eaves height 5.6m) is used for production of Royal Mail stationery/memorabilia and the distribution of stamps to a worldwide market. The double height warehouse (eaves height 10.8m) is used as a major sorting office and returns/collections depot. The warehousing benefits from: sprinkler system blower heating system 3 single height roller shutter doors secure internal loading bay (accessed through an external cantilever door) secure HGV depot, with loading bay, turning circle and parking area. OFFICE ACCOMMODATION The office accommodation is formed over 3 floors primarily to the front of the property and houses payroll, customer services and conference rooms. The offices are centered around a full height atrium which provides good natural light to the floors. The offices are maintained to a high standard and benefit from: predominantly open plan (with areas of tenant installed partitioning) perimeter trunking carpeted floors wall mounted radiators suspended acoustic tiled ceilings 6 person passenger lift canteen on ground floor.

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9 FLOOR AREAS Plowman Craven have undertaken a measured survey on a Gross Internal Area basis that confirms an overall floor area of 8,763.0 sq m (94,323 sq ft). This includes 813 sq ft of plant at 2nd floor, 394 sq ft of external storage and 298 sq ft of external plant. If these are excluded the floor area is 8,623.1 sq m (92,818 sq ft). Plowman Craven s measured survey is available to suitably interested parties, further details upon request. At a previous rent review we understand that the offices were measured on a net internal (NIA) basis and the warehouse on a gross internal (GIA) basis, with the landlords analysis as follows. sq m sq ft Offices (NIA) 2,055 22,119 Low Bay Warehouse (GIA) 3,974 42,772 High Bay Warehouse (GIA) 1,664 17,915 TOTAL 7,693 82,806 SECOND FLOOR PARKING 139 car parking spaces (1:678 sq ft). GROUND FLOOR SITE AREA The site extends to approximately 1.96 Ha (4.84 acres). The site cover is only 35.6%. 1 MAIN OFFICE 2 PRODUCTION WAREHOUSE 3 HIGH BAY WAREHOUSE 4 LOADING BAYS 5 STAFF CAR PARK 6 MAIN ENTRANCE FIRST FLOOR

10 TENURE Heritable. TENANCY Tenant: Royal Mail Group Ltd ( ) Duration: From 17 March 2000 until 12 March 2020 (approximately 6.5 years unexpired) Rental: 635,000 per annum (rent review agreed on the basis of c per sq ft for the warehouse GIA and c per sq ft for the offices NIA). Next Rent Review: Upwards only on 28 May Repairing Covenant: Tenant has a full repairing liability. There is also a sub-station lease to Scottish Power plc until 27 August 2020 at 5 pa, subject to a mutual break option upon giving 12 months notice. TENANT COVENANT The unit is let to Royal Mail Group Limited, and a summary of their key financial data is as follows: A copy of an ICC Report is available upon request. 25/03/ /03/ /03/2010 Turnover 7,167,000,000 6,863,000,000 6,986,000,000 Pre-Tax Profit (Loss) 239,000,000 ( 343,000,000) ( 347,000,000) Total Assets 3,573,000,000 3,325,000,000 3,319,000,000 Average Employees 160, , ,483 As the sole provider of the Universal Service in the UK, Royal Mail Group delivers a six-days-a-week postal service to more than 29 million addresses across the UK. In , Royal Mail collected and delivered more than one billion parcels and 14 billion addressed letters across the UK. Royal Mail Holdings plc is directly owned by HM Government. The Group primarily operates within the United Kingdom, including a number of subsidiaries, associates and a joint venture. It also has a presence in most European countries, mainly through General Logistics Systems. On 1 April 2012, Post Office Limited was transferred from under the ownership of Royal Mail Group Limited to become a direct subsidiary of Royal Mail Holdings. PROPOSED ROYAL MAIL FLOTATION The Government has announced that it intends to sell a majority of its shares in Royal Mail through an Initial Public Offering this financial year. Shares will be offered to institutional investors as well as retail investors. An exact date for the sale of Royal Mail has yet to be announced. Market analysts expect Royal Mail will be Post Office Limited valued at 3bn. This flotation follows several other successful Government privatisations, including BA, BAE, BP, BT, British Gas, British Rail, British Steel, Rolls Royce and several water and electricity companies. Further information is available from: ASSET MANAGEMENT OPPORTUNITIES The tenant could be approached to extend the existing lease beyond the present expiry in The tenant previously agreed to remove their break option that was due on 17 March ENERGY PERFORMANCE CERTIFICATE The property has an Energy Performance Certificate (EPC) rating of D. Royal Mail Holdings Limited *Royal Mail Group Limited and its main subsidiaries Royal Mail Investments Limited Royal Mail Group Limited* General Logistics Systems B.V. Royal Mail Estates Limited

11 TALLENTS HOUSE 21 SOUTH GYLE CRESCENT INVESTMENT FOR SALE VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. However it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC). PROPOSAL Offers in excess of 6,500,000 (Six Million, Five Hundred Thousand Pounds), reflecting a net initial yield of 9.23% after standard purchasers costs at 5.8%. FOR FURTHER INFORMATION CONTACT 4th Floor, Exchange Tower 19 Canning Street, Edinburgh EH3 8EG Tel: Ross Burnett ross.burnett@montagu-evans.co.uk Elliot Cassels elliot.cassels@montagu-evans.co.uk LONDON 5 Bolton Street London W1J 8BA Tel: Tom Paton-Smith tom.paton-smith@montagu-evans.co.uk Messrs Montagu Evans LLP for themselves and for vendors or lessors 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 intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract. (ii) All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correction of each of them. (iii) No person in the employment of Montagu Evans has any authority to make or give any representation or warranty whatever in relation to this property. PROPERTY MISDESCRIPTIONS ACT 1991: 1. The information contained within these particulars has been checked and unless otherwise stated, is understood to be materially correct at the date of publication. After these details have been printed, circumstances may change outwith our control. When we are advised of any change we will inform all enquirers at the earliest opportunity. 2. Date of publication - August Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax. Prospective purchasers/lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction.

12 A90 FORTH BRIDGES TALLENTS HOUSE M9 M90 A8 M8 A90 PARK A90 SOUTH GYLE A71 A902 HAYMARKET WAVERLEY Edinburgh City Centre TALLENTS HOUSE 21 SOUTH GYLE CRESCENT INVESTMENT FOR SALE CITY BYPASS A720 A702