BIRCHHOUSE BIRCHLEY PARK OLDBURY B69 2AQ. Modern office investment let to

Transcription

1 Modern office investment let to

2 01 INVESTMENT SUMMARY High quality modern office building situated in a strategic location off Junction 2 of the Motorway. Located within the Greater Birmingham conurbation, 8 miles north-west of Birmingham City Centre. Birmingham is the UK s second city and along with the wider Greater Birmingham area plays home to many leading corporate and public sector occupiers. Strategic location providing immediate access to the West Midlands and the wider UK Motorway network. Modern 3 storey Grade A office building comprising 3,321 sq m (35,749 sq ft) with a generous car parking ratio (1:202 sq ft). Freehold. Let in its entirety to Npower Ltd, part of the international energy provider RWE Group, providing excellent income security. The lease expires on 11th March 2021, providing 3.5 years to lease expiry. Passing rent of 517,650 per annum equating to a modest per sq ft. Extensively refurbished by the tenant in 2016, demonstrating commitment to the property. We are instructed to seek offers in excess of 6,070,000 exclusive of VAT for the freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 8.00% assuming full purchaser s costs of 6.63% and a low overall capital value of 170 per sq ft.

3 02 SOUTH A4034 BIRCHFIELD LN J2 Birchley Island Development Shell PFS A4034 NORTH TO M6 JOSEPH ST BIRCHFIELD LN Half Penny Farm Pub Swallowfield Courtyard The Stores Bar & Grill Birchfield House WOLVERHAMPTON RD

4 03 LOCATION Oldbury is positioned at the heart of the UK, only 8km (5 miles) north-west of Birmingham, the economic powerhouse for the West Midlands and the principal commercial and administrative centre for the wider Midlands region. Birmingham boasts a population of circa 1,101,000 (2017 est.) making it the largest regional centre in the UK in both population and economic terms. The wider Greater Birmingham conurbation has a resident population of circa 2.45 million (2014 est.) and the property benefits from access to over 50% of the UK population within 2 hours. Oldbury PARK ST WOLVERHAMPTON RD BIRCHFIELD LN JOSEPH ST A4034 CHURCHBRIDGE A454 4 M6 Wolverhampton Oldbury West Bromich A461 Walsall M6 Toll Sutton Coldfield M42 A444 A5 Nuneaton Oldbury and the West Midlands are due to benefit from significant investment over the next 10 years with an estimated 10bn of infrastructure due to be delivered, including Motorway improvements, Metro extensions and the arrival of HS2 to the region. The Black Country in particular has seen a significant increase in foreign and domestic investment over the last few years and was recognised as one of the top 5 cost-effective regions in the UK. This continued investment will cement the regions position in a National and European context in terms of premier business locations. KEY LOCAL OCCUPIERS INCLUDE: Travelodge Reservation Services Crow Clarke Whitehall Arnold Clarke The AA Birmingham produces nearly 25,000 graduates a year from its three universities and a further 100,000 graduates are produced from fifteen other leading universities within the region, all under one hour s drive from the property. This pool of educated and skilled labour is a major attraction for businesses and a significant factor in why the West Midlands is home to over 142,000 companies including over 1,900 international businesses. HM Revenue & Customs OCS Regus A4034 SITUATION WOLVERHAMPTON RD The property is situated adjacent to St Modwen s Birchley Island development scheme. The scheme involves a major capacity Improvement to the linked junctions of Birchley Island and, Junction 2, building on the Highways Agency scheme to widen the motorway off slips as part of the Pinch Point Programme erminster A449 A456 The property is accessed principally from Joseph Street, an estate road that connects to both the dual carriageway and A4034. Both these roads provide access to Birchley Island and the motorway whilst the connects with Dudley and the A4034 provides access to Oldbury town centre, Oldbury Green Retail Park and Sainsbury s supermarket all of which are in close proximity. Birmingham A435 Solihull M42 M40 M6 Coventry A46 The neighbouring area is predominantly commercial, supporting a variety of different uses, including modern office, retail warehousing, food retailing, industrial, trade counter and car showrooms with occupiers including, AA, Toys R U, Halfords, Dunelm Mill, CD Transport, McDonalds and Fayre Square Public Houses.

5 04 COMMUNICATIONS ROAD Benefitting from excellent access to the national Motorway network by virtue of a central UK location, the property is directly adjacent to Junction 2 of the motorway, providing close proximity access to the M6, M6 Toll, M42 and M40. Access to Central Birmingham is achieved in a journey time of circa 20 minutes via the Wolverhampton Road. Dudley and the Merry Hill retail area are just a short drive away via the A4034. RAIL Intercity rail links are provided from Sandwell and Dudley Railway Station, 2.6km (1.7 miles) to the north of the property, with regular services to Wolverhampton, Birmingham New Street, Birmingham International, Milton Keynes and London Euston. Journey times to Birmingham New Street are 10 minutes whilst Birmingham International, for airport access, can be reached in 22 minutes. Three services an hour run direct to London Euston with a journey time of approximately 1 hour 40 minutes. Local train services from Dudley Port Station serve the Birmingham to Wolverhampton line with three services an hour linking Oldbury to Wolverhampton in 12 minutes. MIDLAND METRO TRAM SYSTEM Oldbury and the wider area benefit from the Midland Metro tram system, one of the UK s most successful rapid transport systems. The Midland Metro is the light rail system for the West Midlands which operates between Birmingham and Wolverhampton via West Bromwich and Wednesbury. It operates seven days a week with a turn up and go every eight minutes during the day and every 15 minutes during the evenings and Sundays. West Bromwich Parkway offers park and ride facilities and is the closest Metro station to the subject property. Just 3 miles (5 km) north along the A4034, West Bromwich Parkway offers journey times into Birmingham Snow Hill in 19 minutes with further expansion works underway that will connect New Street Station with the current line. AIR Oldbury is served by Birmingham Airport, 23 miles (37 km) to the south west of the property via the M6 motorway and Manchester Airport, located 77 miles (123 km) north also accessed via the M6 motorway. Birmingham Airport can be reached from the subject property via a direct rail service to Birmingham International from Sandwell and Dudley station with a fastest journey time of 21 minutes. The new runway extension at the airport provides direct flights to the Far East and the west coast of America and makes Birmingham Airport the busiest outside of London in terms of passenger traffic.

6 05 PROPERTY DESCRIPTION Developed in 2001, Birch House is a modern office building of steel framed construction under a traditional pitched tiled roof. The façades are a mixture of brick and aluminium profile cladding with full height atrium creating impressive access to the office accommodation. The site extends to approximately 0.93 hectares (2.36 acres) and there are 177 car parking spaces, providing an excellent car parking ratio of 1:18.76 sq m (1:202 sq ft). The office specification includes: Tenant installed canteen and gym Male, female and disabled toilets on all floors Accessible raised floors with a minimum clear void of 150 mm Suspended ceilings with LED lighting Comfort cooling throughout and heating provided by way of a low-pressure hot water system Two 13-person passenger lifts

7 06 ACCOMMODATION SCHEDULE The vendor has provided the following Net Internal Areas: Floor Sq M Sq Ft Ground Floor Reception Ground Floor Offices ,076 11,584 1st Floor Offices 1,104 11,599 2nd Floor Offices 1,104 11,888 Total 3,321 35,749 TENURE The property is held freehold. TENANCY COVENANT Npower Ltd is the UK retail energy arm of RWE Group, one of Europe s five leading electricity and gas companies, active in the generation, trading, transmission and supply of electricity and gas. Npower supplies electricity and gas to six million residential customer accounts and is also the second largest supplier of energy to the business market serving around half a million customers. Npower employs around 11,500 people in the UK, with its headquarters based in Swindon. The Birch House facility accommodates Npower s major business and customer service teams. For further information visit ( 000s) ( 000s) ( 000s) Turnover 3,939,500 3,567,100 3,292,700 Profit before Tax 359, ,900 55,000 Net Worth 9,600 (357,100) (508,200) The property is let in its entirety to Npower Ltd on a Full Repairing and Insuring lease for a term of 20 years commencing on the 12th March 2001 and expiring on 11th March 2021, providing 3.5 years unexpired. The passing rent is 517,650 per annum reflecting per sq ft overall.

8 07 EPC The property has an EPC rating of D95. VAT We understand the property will be elected for VAT. It is intended that the sale will be treated a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 6,070,000 exclusive of VAT for the freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 8.00% assuming full purchaser s costs of 6.63% and a low overall capital value of 170 per sq ft. FURTHER INFORMATION For further information or to arrange a site inspection, please contact the following: KnightFrank.co.uk Jonathan Devaney jonathan.devaney@knightfrank.com Ben Wisher ben.wisher@knightfrank.com James Mattin jamesmattin@bondwolfe.net Important notice. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. September carve-design.co.uk 13088