FREEHOLD MULTI-LET CITY CENTRE OFFICE INVESTMENT SURREY STREET, NORWICH NR1 3NX

Transcription

1 FREEHOLD MULTI-LET CITY CENTRE INVESTMENT SURREY STREET, NORWICH NR1 3NX

2 Investment Summary Prominently located office investment within central Norwich's business district The property comprises sq m (7,999 sq ft) on basement, ground and four upper floors Modern offices providing comfort cooling and 5 secure car parking spaces Tenants include ATOS IT Services (5A1 covenant), Aspire Achieve Advance and Winterton Capital Total income of 117,714 per annum ( per sq ft overall) Offers in excess of 1,387,000 for the freehold interest, subject to contract and exclusive of VAT. This reflects a net initial yield of 8.00%, based on purchaser's costs of 6.04% 2

3 A1 Luton M25 M1 Peterborough A1 A14 Cambridge A1M LONDON Heathrow The Property King s Lynn A47 A10 M11 A11 M25 CHAPELFIELD Newmarket Stansted CITY CENTRE RETAIL SURREY ST. A47 A12 A1067 A11 PER KING ST AVIVA HQ A47 A14 A140 A140 Felixstowe Harwich A1042 NORWICH A47 Bury St. Edmunds Ipswich Norwich A47 A12 Location Norwich is a major East Anglian centre situated approximately 110 miles north of London, 60 miles north east of Cambridge and 40 miles north of Ipswich. The city had a resident population in 2011 of approximately 132,000 which is estimated to now be over 150,000 in 2018, and 250,000 within the Greater Norwich area and suburbs. The A11 connects Norwich to Cambridge and the M11. The A140 provides a link to Ipswich and the A47 links Norwich to the A1 and the Midlands. Road communications have recently improved further with the duelling of the A11. There are two mainline rail services per hour to London's Liverpool Street station with a fastest journey time of 1 hour 40 minutes. Norwich International Airport offers regular flights to domestic and European destinations including Amsterdam Schiphol, Aberdeen, Edinburgh and Manchester. The city has experienced significant development activity over recent years and is ranked as the 7th fastest growing economy. Norwich Cathedral Major projects include the regeneration of the Riverside area, completion of the Forum Library and Lendlease's shopping centre at intu Chapelfield which provides 530,000 sq ft of retail, leisure and catering space and 1,000 car spaces. Norwich is ranked 11th (2017 HDH) in the UK's top retail centres. TechVelocity, one of Norwich s principal digital accelerator companies has stated that it intends to double the size of the city s digital economy by The turnover of Norwich s digital economy was estimated at 211m in the latest Tech Nation Report, with digital tech businesses employing 3,027 people. The Quadram Institute, which researches into the global challenges in food related disease and human health, launched its new 40m Biotechnical and Bioscience Research Council (BBSRC) funded research program. The new strategy was launched at the Houses of Parliament on 19th June in an event hosted by Mid Norfolk MP George Freeman. The Institute s new HQ building at Norwich Research Park is scheduled to open in Q

4 A147 RING ROAD SURREY STREET NORWICH NORWICH RAIL STATION NORFOLK TOWER THE QUAD STUDENT DEVELOPMENT THE PROPERTY ALL SAINTS GREEN STUDENT ACCOMMODATION NORWICH CASTLE SENTINEL HOUSE TRAVELODGE MARSH MARKET PLACE PRIME RETAIL PITCH ST CATHERINE'S YARD STUDENT DEVELOPMENT NORWICH BUS STATION Not to scale, for indicative purposes only. 4

5 Situation Surrey Street is located in the heart of Norwich almost adjoining the entrance to Norwich Bus Station and opposite Aviva s offices. Other office occupiers on Surrey Street include Towergate insurance, The Cotswold Company, Voice Host, Proxama plc, and close by a former Aviva office has been converted into 200 apartments and a gym, known as Sentinel House. In the vicinity is also a M&S and Travelodge Hotel. The city centre s numerous shopping and leisure amenities are all within easy walking distance as is the Chapelfield shopping centre. The inner ring road, which links to the A11 and A140 at the St Stephens roundabout is within a short distance. Norwich railway station is approximately 1.5 miles away. Description The property comprises a six storey, brick built building, which has undergone extensive refurbishment in recent years to provide a combination of open plan offices and separate meeting rooms finished to a high standard. The specification includes the following: Comfort cooling and heating Suspended ceilings with LG7 recessed lighting Perimeter trunking Carpeting Passenger lift (10 person, 750kg) - serves ground to 3rd floor Kitchens and s on ground, 1st and 3rd floors Ground floor reception There is car parking to the rear which is accessed from Surrey Street via a secure gate to the side of the entrance, which provides 5 car spaces. 5

6 Ground Floor Plan NEW NEW CLEAR GLASS WINDOW FIRE EXIT STAIRS DOOR TURNED NEW S KITCHEN PIPES FEMALE DIS ELECTRICS STEP RAMP LEVEL BOARD LIFT ENTRANCE CANOPY NEW ENTRANCE PLANTERS ENTRANCE DOORS TO OPEN OUT ENTRANCE FLOOR WITH SILVER TRIM 2200 RECEPTION 1400 STORAGE MALE 6

7 First Floor Plan Second Floor Plan FIRE EXIT FIRE EXIT PIPES PIPES ELECTRICS CLEANER ELECTRICS CLEANER KITCHEN RAMP KITCHEN RAMP NEW DOOR NEW DOOR LOBBY LOBBY LIFT LIFT MALE FEMALE C SINK URINALS 7

8 Third Floor Plan Fourth Floor Plan FIRE EXIT FIRE EXIT A PIPES PIPES ELECTRICS KITCHEN RAMP CLEANER ELECTRICS NEW DOOR NEW BULK HEAD KITCHEN RUBBER FLOOR UNITS ABOVE LOBBY ROOF LOBBY LIFT LIFT ACCESS TO STORAGE MALE FEMALE C SINK URINALS 48

9 Tenure The property is held freehold as shown edged red on the plan. Tenancies The property is let to three tenants on effective full repairing and insuring leases with expiries in 2021, 2024 and The total income is 117,714 per annum, which reflects per sq ft overall. Please see the accommodation and tenancy schedule shown below: Tenacy Schedule Floor Floor Area Floor Area Car Tenant Lease Start Lease End Next Review Rent pa Rent Comments... (sq m) (sq ft) Spaces (Break) per sq ft Ground Reception Basement Aspire Achieve Advance Limited 25-Mar Mar Mar , Ground ,409 ( ) 1st ,577 2nd ,813 The intitial rent was 69,292 pa, which rose to the current rent of 73,553 pa in the 3rd year and is a peppercorn rent from the 6th year (25 March 2021) for 3 months and then the rent rises further to 78,034 pa until the end of the term. Sub total ,040 3rd ,626 1 Atos IT Services UK Limited 14-Feb /06/ Jun , A peppercorn rent from 1 July 2022 to (30/06/2022) and including 31 August There is a service charge cap of 14,634+VAT linked... to RPI. Currently no shortfalls.. 4th ,207 Winterton Capital Limited 07-Sep Mar , The tenant did not exercise its break t/a GuarantorMyLoan clause dated 24 March TOTAL ,999 5 on site 117,

10 Tenant Covenants.. Aspire Achieve Advance Limited (62% of income):... Trades as 3aaa Apprenticeships was founded in 2008 are an Ofsted Grade 1... Outstanding training provider with 38 locations across England with its headquarters in Derby. They specialise in the delivery of professional services Apprenticeships including IT, Software, Digital Marketing, Accountancy, Financial Services, Business Administration, Customer Service and Management. Clients include Royal London, Thomas Cook, Greencore, Moto amongst others SURREY STREET NORWICH D&B rating : 3A2 Year to 31/07/2016 Year to 31/07/2015 Year to 31/07/2014 Turnover 25,505,156 17,169,921 9,712,695 Profit Before Tax (Loss) 4,038,961 ( 1,688,022) 59,536 Net Assets 7,392,546 5,833,314 9,928,103 Atos IT Services UK Limited (22% of income): Are leaders in digital services delivering technology services, systems integration, business outsourcing services, consulting and managed services with pro forma annual revenue of circa 12 billion euros and circa 100,000 employees in 73 countries serving a global client base. It is the worldwide information technology partner for the Olympic and Paralympic Games. Its ultimate parent company is Atos SE, a company incorporated in France. D&B rating: 5A1 Year to 31/012/2016 Year to 31/12/2015 Year to 31/12/2014 Turnover 1,489,427,000 1,436,178,000 1,451,349,000 Profit Before Tax 100,735, ,547,000 88,103,000 Net Assets 1,647,403,000 1,685,285,000 1,605,404,000 Winterton Capital Limited (16% of income): Are a management consultancy business. D&B RATING: 3A1 Year to 30/09/2017 Year to 30/09/2016 Year to 30/09/2015 Net current assets 6,556,165 6,329,726 4,572,993 Net Assets 7,801,202 6,330,674 5,274,187 A subsidiary company, GuarantorMyLoan, occupies. They are a loan lender providing affordable guarantor loans to borrowers in the UK and regulated by the Financial Conduct Authority. 410 Service Charge The annual service charge for 2017 was 47,832 ( 6.07 per sq ft, excluding reception area) and the budget for 2018 is 54,520 ( 6.92 per sq ft). There is a service charge cap of 14,634 + VAT (linked to RPI) for Atos IT Services UK Ltd (3rd floor tenant) but to date the apportioned service charge has not exceeded that level.

11 Norwich Office Market Norwich was amongst the UK s fastest growing cities in Q4 2017, according to Irwin Mitchell s Spring 2018 UK Powerhouse Report. Norwich s economy expanded by 1.5% (the 7th fastest growing economy). The period of strong performance is forecast to continue through to the end of 2018 and forecast to grow by 1.6%. The availability rate is down to 4.5% from 11.1% in mid-2015 partly due to more than 500,000 sq ft being lost to alternative uses. This has had the effect of increasing rental growth in second hand office space - a 45% increase since Prime office rents currently stand at per sq ft and this is anticipated to grow to 18 per sq ft by (Source: Bidwells - Our View on Norwich Offices, Summer 2018) 11

12 Further Information Should you have any queries or wish to make a site inspection, please contact: Darryl Stevenson DD: darryl.stevenson@bidwells.co.uk Saul Western DD: saul.western@bidwells.co.uk EPC Ratings The EPC rating for the property is C66. A copy is available upon request. VAT We understand that the property is elected for VAT. We anticipate that the transaction will be structured as a TOGC. Bidwells 25 Old Burlington Street London W1S 3AN Tel: September 2018 Capital Allowances All capital allowances are to be retained by the vendor. Proposal Our client is seeking offers in excess of 1,387,000 for its freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.00% based on purchaser s costs of 6.04%. 6412

13 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.