Wellington Row YORK YO90 1WR. York City Centre HQ Building 25 Year S&P A+ Income

Transcription

1 Wellington Row YORK YO90 1WR York City Centre HQ Building 25 Year S&P A+ Income

2 Investment summary Wellington Row is a Grade A corporate HQ York is a major UK regional city Wellington Row is at York s heart, close to the Station and City Centre 5 yearly open market rent reviews Aviva plc is long established in York and a major employer Offers in excess of 25,450,000 94,848 sq ft with 47 car spaces on a 0.8 acre site 25 year unbroken lease 1 Lease guarantor is Aviva Insurance Ltd (S&P A+ credit rating) Initial rent of per sq ft ( 1,548,481) Attractive initial yield of 5.75% net of 5.8% purchaser s costs

3 YORK TRAIN STATION ROYAL MAIL YORK COUNCIL CEDAR COURT GRAND HOTEL YORKSHIRE HOUSE NORTHERN HOUSE ROMAN HOUSE WELLINGTON ROW TO PARK INN BY RADISSON RIVER OUSE GUILDHALL CONEY STREET 2 Wellington Row, York YO90 YO1 6HY 1WR CIT YC ENT RE V 20 GEORGE HUDSON STREET

4 Location Founded by the Romans in AD71, York is the traditional county town of Yorkshire and a historic walled city where the Rivers Ouse and Foss meet. The city has been at the centre of major political events in England for much of the past 2,000 years. During the Middle Ages York was the major wool trading centre in the north of England and the Church of England s northern capital. During the 19th Century York grew as a principal hub of the railway network and focus for confectionery production in England with major factories for Rowntree (Nestlé) and Terry s. More recently York has become a very important location for services industries and a major tourist destination, being a recent winner of awards including European Tourism City of the Year and Condé Nast s safest place to visit. In 2012 total visitor numbers were circa 7 million making an estimated 440M contribution to the York economy. In 2013 York was the 14th most popular city in the UK with overseas visitors. In 2010 York was the 8th most visited English city by UK residents. York s economy has also been developing in the areas of science, technology and creative industries with a science park created alongside University of York. York benefits from two universities, University of York and York St John University and a branch of the University of Law, with student numbers of approximately 29,000. Connectivity York benefits from excellent communications. It is positioned approximately 10 miles east of the A1(M), with access either via the A64 or A59. The A1(M) intersects with the M62 25 miles to the south. By road Leeds and Manchester are 25 miles and 72 miles distant respectively. Situated midway between London and Edinburgh, York continues to be an important mainline rail hub. Services to London and Edinburgh take 1 hour 55 minutes and 2 hours 30 minutes respectively. In addition local rail services connect to Leeds (23 minutes), Newcastle (57 minutes) and Manchester (1 hour 22 minutes). York s closest airport is Leeds Bradford approximately 30 miles to the west and connects to many UK regional airports and more than 75 international locations. 3

5 Location A59 A61 KNARESBOROUGH 47 A59 HARROGATE A1(M) A661 A658 WETHERBY A19 YORK A64 A1079 A166 Demography/Employment At the 2011 Census York had a population of 198,000, a 9.4% increase since Since 1971 York s population has grown by nearly 31%. At 2011 York had total employees of 103,000, with slightly above average concentrations of finance, professional and business services and other services employees. Unemployment at September 2014 stood at 1% compared to the GB average of 2.6%. Major employers in York include Aviva, Network Rail, Northern Rail, City of York Council, York Hospitals NHS Trust, University of York and Tesco. Situation The property is prominently positioned on Wellington Row, overlooking the River Ouse at the heart of York s CBD. York station is only 250m away and the traditional city centre retail area, centred on Coney Street, Davygate and Parliament Street, is accessed via Lendal Bridge, within 25m of the property. The immediate area is high quality and mixed use but with offices as the predominant user. To the rear of Wellington Row is Northern House, the York home of Network/Northern Rail. To the rear is Yorkshire House, also occupied by Aviva. Adjacent to Yorkshire House is Roman House, formerly occupied by Aviva and now with Permitted Development Rights for conversion to residential. To the rear of Yorkshire House is Cedar Court Grand Hotel and Spa, York s only 5* hotel. Other hotels including Park Inn by Radisson and Hampton by Hilton are close by. A650 BRADFORD LEEDS A58 A61 A5120 M1 M20 A64 44 A63 42 A629 A58 M62 A1(M) HALIFAX M606 DEWSBURY WAKEFIELD HUDDERSFIELD A642 A638 A1 M1 YORK LEEMAN ROAD TO A64 QUEEN STREET STATION RD THE MOUNT BLOSSOM ST BOOTHAM WELLINGTON ROW MICKLEGATE NUNNERY LANE MUSEUM STREET ROUGIER STREET WELLINGTON ROW NORTH ST CONEY STRE ET SKELDERGATE GILLYGATE YORK MINSTER STONEGATE DAVYGATE MICKLEGATE BRIDGE ST RIVER OUSE BISHOPTHORPE RD BISHOPGATE LOWER PETERGATE CLIFFORD STREET ST MAURICE S ROAD PARLIAMENT ST COLLIERGATE TOWER ST A19 SELBY M62 MONKGATE FISHERGATE FOSSGATE FAWCETT ST A19 FOSS BANK RIVER FOSS A63 BARBICAN ST M18 ISLANDS FOSS ROAD 4

6 Description ry N Lendal Bridge Muni Offi Constructed in 1992, Wellington Row comprises a Grade A HQ office building arranged on basement, ground and 4 upper floors. The property is of frame construction, both steel and concrete, with attractive sandstone panels to the principal elevations and brick panels to the rear elevation. The main entrance to the building is raised and at the corner of Wellington Row and Tanner s Moat. The entrance leads onto an attractive reception area with three 16 person feature lifts. The office floor plates benefit from two atria providing high levels of natural light. The office specification includes: Air Conditioning Suspended Ceilings Raised Floors Double Glazed Aluminium Windows 4th floor executive suite including dining and conference facilities Extensive roof terraces accessible from 2nd and 4th floors Accommodation Floor Type Area (sq ft) Area (sq m) 4th Offices 10, rd Offices 18,548 1, nd Offices 20,438 1, st Offices 22,560 2,095.9 G Offices/Reception 21,723 2,018.1 B Ancillary/Storage 1, TOTAL NIA 94,848 8, m PH TANNER'S MOAT Northern House 4 7 to 9 ROUGIER STREET Ramp Roof Car Park 8.8m PH 1 TANNER STREET 17 PH PH Sloping Masonry For identification purposes only. Not to scale. The Site 6 7a WELLINGTON 7 ROW 1 9.4m 35 to 39 2 All Saints' Lane 33 1 All Saints' The site has an area of 0.8 acres (0.33 hectares). Tenure Freehold. ch 31 Wellington Row benefits from 47 basement car parking spaces, with access from Wellington Row, giving a car parking ratio of 1 car space per 1,986 sq ft of office space. 5

7 6 Wellington Row, York YO90 YO1 6HY 1WR

8 Tenancy The property is let on the following terms: Tenant: Aviva Central Services UK Limited Guarantor: Aviva Insurance Limited (S&P A+ credit rating) Alienation: Assignment only to S&P AA- rated entity or better Term: 25 years from completion Rent: 1,548,481 per annum ( per sq ft) Review Basis: The rent is to be reviewed five-yearly to open market value on an upwards-only basis Repair: Effective full repairing and insuring terms VAT: Landlord cannot elect for VAT Tenant Information Aviva is the UK s largest insurer, and one of the leading European and global insurance providers, with over 31 million customers worldwide. Aviva was launched as a brand in July 2002, the group having been formed by the merger of CGU and Norwich Union in The group has been in business for over 300 years. Aviva s lengthy history in York is via Yorkshire Finance Company Ltd which became General Accident in 1967 and the CGNU in 2000, later renamed Aviva. York is a hub for Aviva s Life Assurance business. Aviva Plc has recently released very impressive preliminary results for the y/e December 2014 showing operating profits increased by 6%, EPS by 10% and AUM up to 246Bn. In 2014 Aviva Plc announced its intention to merge with Friends Life in a deal likely to complete late April This will add considerable synergies to the combined business, approximately 70Bn additional AUM and additional 600M of cashflow. Aviva Central Services UK Limited (Company No ) is a subsidiary trading company and reported the following financial results over the last three years: Aviva Central Services UK Limited /12/ /12/ /12/2011 Revenue 1,070,000 1,002, ,000 Pre-Tax Profit Total Equity - 47,000-41, ,000 Aviva Insurance Limited (Company No. SC2116) is rated by Standard & Poor s as having an A+ Credit Rating. The company has reported the following financial results over the last three years: Aviva Insurance Limited - SC /12/ /12/ /12/2011 Net Earned Premiums 4,757,000 4,617,000 1,819,000 Pre-Tax Profit 1,277,000-99,000-2,597,000 Total Equity 7,246,000 14,535,000 14,619,000 EPC The property has an Energy Performance Rating of E

9 York office market As the county town for Yorkshire, public sector occupiers have traditionally been a source of demand for York s office market, accounting for 46% of take up over the past five years. The total office stock, approximately 3,700,000 sq ft has seen a significant amount removed from the market for conversion to residential use. Grade A office accommodation is in short supply with only approximately 50,000 sq ft available, and a very limited city centre supply pipeline. The only office building currently under construction is the new Hiscox office on Hungate, a 60,000 sq ft development, of which 20,000 sq ft of surplus space will be available to let at an anticipated rent of 18 per sq ft. With the lack of new build accommodation in York, headline rents currently stand at approximately per sq ft for refurbished office space, as evidenced by a letting currently progressing at 20 George Hudson Street at per sq ft. Elsewhere office accommodation at Northern House, and the former council-occupied space at Mill House have achieved lettings at 16 per sq ft. Investment Comparables Date Sold Address Town Tenants WAULT Size (sq ft) Rent (per sq ft) Sale Price NIY Purchaser On Market 66 Queen Square, Bristol, BS1 4JP Bristol KPMG LLP 15 yrs 61, Quoting 29,440,000 Quoting 5.50% On Market Jan-15 Port Hamilton, 69 Morrison Street, Edinburgh, EH3 8BW Edinburgh Lloyds Bank Plc 25 yrs 271, ,500, % Private Overseas Dec-14 Kings Orchard, One Queen Street, Bristol, BS2 0HQ Bristol Bevan Brittan 12.5 yrs 89, ,700, % Aviva Investors Nov-14 Walton Green, Halfway Green, Walton-on-Thames Walton-on- Thames Kia Motors (UK) Limited 15 yrs 30, ,313, % Aberdeen Asset Management Oct-14 Santander House, Station Road, Redhill, RH1 1PQ Redhill Santander Consumer UK Plc 20 yrs 47, ,100, % Blackrock Sep-14 Hunton House, Highbridge Estate, Oxford Road, Uxbridge, UB8 1HU Uxbridge British Alcan Aluminium Plc 9.5 yrs 24, ,750, % Aviva Investors 8

10 Wellington Row Wellington Row YORK YO90 1WR VAT The property is not elected for VAT, therefore VAT will not be charged on the purchase price. Proposal We are instructed to seek offers in excess of 25,450,000 (Twenty Five Million Four Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 5.75% assuming purchaser s costs of 5.8%. Vendor Due Diligence and Data Site The property is available with the benefit of a full survey pack and reliance letters. All information is contained on a data site, access to which is available on request. Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quoted exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. March Contact For any further information or should you wish to arrange an inspection, please contact: Richard Talbot-Williams Tel: richard.talbot-williams@bnpparibas.com Hugh Yates Tel: Hugh.yates@bnpparibas.com Jed Wolfe Tel: Jed.wolfe@bnpparibas.com