PREMIER INN HOTEL AND RESTAURANT PRE-LET FUNDING PLOT 2, OXFORD TECHNOLOGY PARK, LANGFORD LANE, KIDLINGTON, OXFORDSHIRE OX5 1RY

Transcription

1 PREMIER INN HOTEL AND RESTAURANT PRE-LET FUNDING PLOT 2, OXFORD TECHNOLOGY PARK, LANGFORD LANE, KIDLINGTON, OXFORDSHIRE OX5 1RY For indicative purposes only.

2 PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD Investment Summary Forward funding of a new 4 storey Premier Inn hotel and Beefeater restaurant on the Oxford Technology Park Oxford Technology Park is located on the north side of Oxford adjacent to London Oxford Airport Development to comprise a 101 bed hotel and 150 cover restaurant New 25 year FR&I lease to Premier Inn Hotels Limited, subject to a tenant break option in year 20. The initial rent is anticipated to be 660,500 per annum exclusive (reflecting 5,500 per key plus per sq ft for the restaurant) The rent is subject to 5 yearly upwards only rent reviews linked to CPI, collared and capped at 0% and 4% pa Premier Inn Hotels Limited are a subsidiary of Whitbread Plc with a D&B rating of 5A1 Full forward funding sought with offers invited in excess of 14,300,000 subject to contract and exclusive of VAT which reflects a net initial yield of 4.5% assuming actual purchaser s costs at 2.58%. For indicative purposes only. 2

3 Birmingham M5 Worcester A44 Cheltenham KIDLINGTON M4 A40 M40 Bicester Oxford A34 Northampton J9 M1 A423 A34 J8A A421 A5 Reading M1 A509 Milton Keynes Aylesbury M40 M4 A41 A5 M25 A428 A1 Bedford A1(M) Luton Heathrow St Albans LONDON Cambridge M11 M25 A44 Begbroke London Oxford Airport A40 LANGFORD LANE LANGFORD LANE A34 KIDLINGTON A4260 The Site M40 A40 A34 Oxford Parkway To Oxford J9 Location Located 60 miles north west of London and 65 miles south east of Birmingham. Oxford Technology Park is on the outskirts of Kidlington in the Cherwell Valley District of Oxfordshire. Kidlington is approximately 5 miles to the north of Oxford city centre and 7.5 miles south west of Bicester. Kidlington is home to the Oxfordshire Fire and Rescue Service HQ as well as Thames Valley Police, Elsevier European HQ, Airbus Helicopter UK Ltd, CAE Technology Services Ltd and Airways Aviation Flight Academies. Kidlington s economy consists largely of light industrial and commercial business use which is well supported by the excellent transport links to the area. Kidlington is accessible from junction 8A or junction 9 of the M40, following the A40 or A34 respectively taking approximately 10 minutes by car. The A34 connects Kidlington to the M4 motorway to the south east in approximately 30 minutes and the M25 is within a 45-minute drive. The site is adjacent to London Oxford Airport and just a short distance from the new Oxford Parkway Rail Station which can provide a connection to London in 1 hour. Oxford city centre is just 5 miles away and can be reached via a regular bus service from Langford Lane in approximately 30 minutes. Situation Oxford Technology Park is situated directly opposite London Oxford Airport in Kidlington and will be the first dedicated science and technology park to the north of Oxford, bringing much needed R&D space to the market. The park will also benefit from its proximity to Oxford, and its global brand. The availability of turnkey solutions to suit specific needs is a major potential attractor for the development. Oxford Technology Park is accessed off Langford Lane directly opposite London Oxford Airport. To the east lies Oxford Motor Park and to the west lies Kidlington Ambulance Station and the National Tactical Response Group. The south of Oxford Technology Park borders with farm land and the north is bordered by Langford Lane. 3

4 SUBJECT PROPERTY A44 OXFORD MOTOR PARK OXFORD TECHNOLOGY PARK NATIONAL TACTICAL RESPONSE GROUP A44 LANGFORD LANE TO OXFORD TO KIDLINGTON LANGFORD LANE INCHCAPE MERCEDEZ-BENZ THAMES VALLEY POLICE HQ ELSEVIER EUROPEAN HQ LONDON OXFORD AIRPORT AIRBUS HELICOPTERS UK LTD 4 MARSHALL VOLKSWAGEN KIDLINGTON AMBULANCE SERVICE CAE OXFORD AVIATION ACADEMY

5 Site The entire park totals 8.26 hectares (20.40 acres), of which 2.00 acres forms the subject property, Plot 2. Oxford Technology Park is a planned major new science and technology park poised to provide much needed flexible R&D space in the heart of Oxfordshire s A34 Knowledge Economy spine. The masterplan proposes a campus development with a signature office building at the entrance to the park. A treelined avenue will join 12 high tech units built to occupiers' specifications, inclusive of up to 50% office, lab and fitted accommodation. Outline planning permission permits the construction of 40,362 sq m (434,453 sq ft) of office, research and development, laboratory business space. Planning for the site has been broken down into 12 plots, further split between 4 phases of development. The subject hotel funding is allocated to Plot 2 falling within Phase 2 of the development (shown in red). Adjacent is a proposed Technology Hub with serviced space (pink); pre-let discussions on a 30,000 sq ft hybrid unit (dark blue); spec-built hybrid units (light blue) and pre-let discussions on a 100,000 sq ft hybrid building (green). Key Hotel plot Technology Hub with serviced space Pre-let 30,000 sq ft hybrid unit Spec, hybrid building of 2 semi-detached units Pre-let 100,00 hybrid building Oxford Technology Park site boundary For indicative purposes only. 5

6 Description The 4-storey Premier Inn hotel and Beefeater restaurant incorporated on the ground floor of the development will be constructed with a traditional steel portal frame. The hotel will have a NIA of 34,972 sq ft (3,249 sq m) and the restaurant will have a NIA of 5,296 sq ft (492 sq m). There is an additional 2,583 sq ft (240 sq m) of shared areas and communal space. The combined development will have a total NIA of 42,851 sq ft (3,981 sq m). Hotel The hotel will provide 101 beds. This will be split between 17 rooms on the ground floor, 22 rooms on the first floor, and 31 on each of the second and third floors. Restaurant The restaurant is to be operated by Beefeater and will provide 150 covers on the ground floor. Parking Vehicular and service access to the site will be from the main access road into the park from Langford Lane. There will be car parking for 134 vehicles including electric vehicle charging points and 6 disabled spaces. For indicative purposes only. 6

7 Ground Floor Plan HOTEL ACCOMMODATION GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m TOTAL AREA = 3249 sq m RESTAURANT ACCOMMODATION GF = ONLY TOTAL AREA = 492 sq m SHARED ACCOMMODATION GF = 65 sq m / 1F = 175 sq m TOTAL AREA = 240 sq m Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request. 7

8 First Floor Plan HOTEL ACCOMMODATION GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m TOTAL AREA = 3249 sq m SHARED ACCOMMODATION GF = ONLY TOTAL AREA = 492 sq m Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request. 8

9 Second/Third Floor Plan HOTEL ACCOMMODATION GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m TOTAL AREA = 3249 sq m Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request. 9

10 Tenure Freehold. Tenancy On completion, the proposed development will be pre-let to Premier Inn Hotels Ltd. on full repairing and insuring terms for 25 years (tenant break at year 20 subject to 12 months notice) at an anticipated passing rent of 660,500 per annum exclusive. This reflects 5,500 per key for the hotel and 105,000 ( per sq ft) for the restaurant. The lease will provide for 5-yearly upward only rent reviews based on CPI, with a 0% collar and 4% cap per annum. The tenant will benefit from 6 months rent free from completion, which will be topped up by the vendor. Service Charge Premier Inn Hotels Ltd. is required to pay a fair proportion of all reasonable and proper costs incurred by the Landlord in the upkeep of common parts. Planning Outline planning consent for the wider Oxford Technology Park masterplan has been approved under planning reference 14/02067/OUT. Reserved Matters (17/00559/F) including details of siting, design, layout and external appearances of units referred to as 1 and 3 has been obtained under reference no. 17/01542/REM. In addition to Variation of conditions 1, 2, 3, 5, 7, 9, and 21 of 14/02067/OUT to enable proper phasing of the development under reference no. 17/00559/F. The planning application relating to the hotel site, reference 17/02233/F Hotel (Class C1) and ancillary restaurant (Class A3) including associated works, comprising the provision of parking spaces and landscaping Land East Of Evenlode Crescent And South Of Langford Lane Kidlington was determined at the 15th March committee meeting. 10 For indicative purposes only.

11 Oxfordshire Market The University of Oxford aims to be a leader in innovation and entrepreneurship within the science and technology sector, building on its existing reputation as a world leading centre of learning, teaching and research. Oxford University s staff have won a total of 32 Nobel prizes across the science and medicine sectors which have a combined total research spend of over 400m annually. The University is investing a further 300m in the form of a new partnership company, Oxford Science Innovation plc, backed by a multitude of wellestablished investors such as Invesco Asset Management Limited, IP Group plc, Lansdown Partners (UK) LLP, Oxford University Endowment Fund, the Wellcome Trust and Woodford Investment Management LLP, with the sole purpose being to assist in the development of science and research spinout companies based on technology developed by Oxford University Researchers (University of Oxford, 2015). Driven by growth in the science and technology sector, particularly in out of town locations, the Oxford and south Oxfordshire office markets were the only markets within the Thames Valley to outperform their long-term average in both 2016 and H Indicating there is huge demand for growth in this sector around Oxfordshire and thus a large requirement for additional space in the form of the Oxford Technology Park. Oxfordshire Hotel Market Colliers ranked Oxford 3rd place, second to Chester and York on their 2016 UK Hotel Index and rated Oxford in 1st place on their list of rising markets. For Oxford this represents a 25 place improvement in its ranking compared to the previous year, largely due to the increase in buyer demand, coupled with a low active pipeline for future hotel developments and a strong performing market. A 2016 study by Hotel Britain showed that Oxford had an occupancy level of 80.6%, which is considerably higher than the UK regional average of 75.9% and more in line with the average for London which was 82.8%. This was also considerably higher than both York and Chester. Average daily room rates for the same study were 71 for Oxford, again putting it ahead of York and Chester and on par with Cambridge at average rates of Average daily rates in the provinces are up by 2.4% on 2016 and are forecast to increase by a further 2% in 2018 based on reports and forecasts by PWC. I write in support of this application, Oxfordshire has a significant shortage of hotel bed space, bearing in mind its strong appeal as a destination for tourism. The county has 3 major draws in particular for national and international tourists, namely; The Blenheim Palace World Heritage Site, the City itself and Bicester Village. In addition, its location next to the airport can also only be positive. Roger File BSc Dip Proj. Man MBA MRICS Chief Operating Office and Property Director at Blenheim Palace. Oxfordshire Infrastructure Improvements East West Rail Link has a planned scheme totalling 530m to reopen the varsity railway line between Oxford and Cambridge which is expected to be completed by m is bid for the development of Rapid Transit lines on upgraded A44 and A4260 corridors, a new Park & Ride, and strategic cycle infrastructure. Support is also sought for additional education requirements (as yet uncosted). This would support the delivery of 5,570 homes in Woodstock, Begbroke/Yarnton and the Northern Gateway. 11

12 Premier Inn Hotel and Restaurant Investment Transactions Evidence of recent Premier Inn investment transactions are set out below: Property Covenant (Guarantor) Price Keys Rent pa Rent Per Years Unexpired Yield Date... Key (Break) Batchworth Lock, Church Street, Premier Inn Hotels Ltd 14.75m ,800 5, (20) 4.25% December 2017 Rickmansworth (Whitbread Plc) (reviewed 5 yearly to CPI 0% collar and 4% cap) 25 (15) (Under Offer) Travis Perkins Trading... Company Ltd 130,000 (reviewed 5 yearly to OMR) Custom House Street, Cardiff Premier Inn Hotels Ltd 34m 248 1,524,000 (reviewed 5 yearly to CPI) 6, from PC 4.20% December (Whitbread Plc) St Enoch Square, Glasgow Premier Inn Hotels Ltd 33.3m 249 1,500,000 (reviewed 5 yearly to CPI) 6, from PC 4.25% December (Whitbread Plc) + small retail element West Street, Brighton Premier Inn Hotels Ltd c. 20m ,000 + restaurant tbc. 7, c.4.1% December (Whitbread Plc) Park Street, Camberley, Surrey Premier Inn Hotels Ltd 8.5m ,000 (reviewed 5 yearly to CPI with 5% cap) 4, (15) 4.9% September Waterloo Street, Birmingham Premier Inn Hotels Ltd 26.6m 152 1,166,000 (reviewed 5 yearly to CPI with 5% cap) 7, % August (Whitbread Plc) Bridle Path, Watford Premier Inn Hotels Ltd 13.5m ,400 (5 yearly CPI linked reviews with 0% and 5, (20) 4.6% August % collar and cap) Forward Funding Investment Thyme restaurant North River Road, Great Yarmouth Premier Inn Hotels Ltd 9.0m ,000 (5 years CPI linked reviews 0%-4%) 5, % March 2017 Brewers Fayre 12

13 Tenant Covenant Information.. Premier Inn is part of Whitbread PLC which this year... celebrates its 275th Anniversary as a British business.... Premier Inn has plans to expand its markets in... Germany and the Middle East after recently opening... its first hotel in Frankfurt earlier this year. Premier Inn was named the UK s top-rated travel brand and the top-rated hotel chain for 2016 by Which? also saw Premier Inn being voted Best UK Economy Hotel at the British Travel Awards and Best UK Hotel Group in the National Geographic Traveller UK Reader Awards. Premier Inn has been awarded the Best UK Family Hotel in the TripAdvisor Travellers Choice Awards, Best UK Hotel Group in the Silver Travel Awards and the Business In The Community Environmental Leadership Award. Development Team The development is being undertaken by Hill Street Holdings Ltd. Hill Street Holdings Ltd is the holding company for a privately-owned group of development companies with a broad range of activities. Primarily involved in direct development of commercial schemes, they also deal with residential and mixed-use development, both as stand-alone principal and in partnership with major house-builders, property companies and institutional funds. Hill Street Holdings specialise in building first class business space to meet occupier requirements and continue to provide high quality commercial accommodation in the south east of England. They have recently worked with landowners and developers to realise the potential value of a variety of sites that stalled in the economic downturn. Whether that be master planning for a major mixed-use allocation or reworking an original planning consent to suit today s market. An example of a recently completed project includes Homefield Business Park, Haverhill, Suffolk. Ongoing projects include Bicester Gateway near Oxford, as well as multiple developments in Maldon. Premier Inn have over 760 hotels in the UK and approximately 68,000 bedrooms. They have opened 26 new sites in the past 12-months creating 3,700 new rooms. They are looking to build on this success with a target of reaching 75,000 bedrooms by the end of 2018 and 85,000 bedrooms by Premier Inn Hotels Ltd 02 Mar Mar Feb GBP GBP GBP Sales Turnover 812,000, ,195, ,540,000 Profit (Loss) Before Tax 268,397, ,471, ,523,000 Tangible Net Worth 1,143,116, ,100, ,335,000 Premier Inn Hotels Ltd have a D&B rating of 5A1 Professional Team Developer Planning partners Architect Civil & Structural Engineer Agents Solicitor M&E Engineer BREEAM consultants Hill Street Holdings Bloombridge & Savills Allison Pike Partnership Simpsons Bidwells (Hotel and Park) Benedicts consultant surveyors (Park) Greenberg Traurig, LLP Jenks Associates Sustainable Construction Services A latent defect in indemnity policy is in place underwritten by Aviva, which will be assigned to any purchaser. Warranties will be available for the benefit of the purchaser from the professional team and contractors. Project Timing Planning application submitted [December 2017] Planning consent secured (Received April 2018) Start on site [Q2 2018] Practical Completion [Q2 2019] 13

14 Elevations Full resolution elevations are available on request. Specifications The Premier Inn will be developed in accordance with the Whitbread PLC s WHISDOM specification guidelines West Elevation South Elevation For indicative purposes only. 14

15 Further Information Should you have any queries or wish to make a site inspection, please contact: Andrew Groves DD: andrew.groves@bidwells.co.uk Mike Fox DD: mike.fox@bidwells.co.uk For indicative purposes only. Richard Walden DD: richard.walden@bidwells.co.uk Capital Allowances Capital allowances can be made available to the purchaser by way of separate negotiation. VAT The property is elected for VAT. EPC TBC on completion. The development will meet or exceed a BREEAM Very Good rating. Proposal Our client is seeking offers in excess of 14,300,000 subject to contract and exclusive of VAT on the basis of a full funding, comprising an initial site payment of 2,650,000 at construction finance and a balancing payment on completion. A purchase at this level would reflect a net initial yield of 4.5% assuming actual purchaser s costs of 2.58% (made up of 4.604% SDLT on the site price and 1.8% fees on the total price). Bidwells 25 Old Burlington Street London W1S 3AN Tel: April

16 Bidwells 25 Old Burlington Street London W1S 3AN Tel: bidwells.co.uk IMPORTANT NOTICE Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: Nothing contained in these particulars or their contents or actions, both verbally or in writing, by Bidwells LLP form any offer or contract, liability or implied obligation to any applicants, viewing parties or prospective purchasers of the property to the fullest extent permitted by law and should not be relied upon as statements or representative of fact. No person in the employment of Bidwells LLP or any joint agents has authority to make or give any representation or warranty whatever in relation to this property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only, may not be to scale and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP has not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. All rentals and prices are quoted exclusive of VAT unless otherwise stated. Prospective purchasers may be asked to produce identification of the intended Purchaser and other documentation in order to support any conditional offers submitted to the vendors. Bidwells LLP accepts no liability of any type arising from your delay or other lack of co-operation. We may hold your name on our database unless you instruct us otherwise. OS licence no. ES Copyright Bidwells LLP Bidwells LLP is a limited liability partnership registered in England and Wales (registered number OC ). Registered office is Bidwell House, Trumpington Road, Cambridge CB2 9LD where a list of members is available for inspection. Your statutory rights are not affected by this notice.