LONG LET HEADQUARTERS OFFICE INVESTMENT KING EDWARDS COURT KING EDWARDS SQUARE B73 6AY
INVESTMENT SUMMARY Sutton Coldfield is an affluent commercial centre within Birmingham and the West Midlands conurbation, located 12km (7.5 miles) north east of Birmingham City centre. King Edwards Court occupies a highly prominent position within the heart of Sutton Coldfield town centre and benefits from excellent amenity and public transport facilities, with easy access to the main pedestrianised retailing area and Sutton Coldfield Railway Station, located within 150 metres. King Edwards Court is a well presented office complex dating from the1980 s, extending to a Net Internal Area of 1,782.52 sq m (19,187 sq ft), arranged over ground, first and second floors. Freehold The property is let to Dignity Funerals Limited on three effective full repairing and insuring leases. All leases expire 22 March 2026 without break, providing an attractive unexpired term of 10.25 years. Current passing rent of 259,028 per annum exclusive of VAT reflecting 13.50 per sq ft. Dignity Caring Funeral Services is one of the UK leading funeral service providers in the UK. King Edwards Court is Dignity s headquarters facility. PROPOSAL We are instructed to seek offers in excess of 3,050,000 (Three Million and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.02%, assuming purchaser costs of 5.80%, and a low capital value per sq ft of 159.96. 2
LOCATION SUTTON COLDFIELD KING EDWARDS COURT Sutton Coldfield is located approximately 12 km (7.5 miles) north east of Birmingham City centre. The town has a population of 107,000 (ONS 2011) and a wider population of 595,000 within 10 km (6 miles) of the town centre. Sutton Coldfield is a polular and affluent commerical centre within Birmingham and the West Midlands Conurbation, benefitting from excellent transport links. Being in close proximity to the motorway network, Sutton Coldfield is 8 km (5 miles) from Junctions 5 and 6 of the M6 and Junction 9 of the M42. The town is also 5 km (3 miles) from Junction T3 of the M6 Toll Road. Sutton Coldfield is well served by the rail network, being located on Birmingham s electrified Cross City Line connecting the town to Birmingham New Street Station and Redditch in the south, and Lichfield to the north. Birmingham New Street is a 15 minute journey, where direct rail services to London Euston can be found with a journey time of 1 hour 20 minutes. Birmingham Airport is 22 km (14 miles) to the south, via the M6/M6 Toll road and M42 and providing direct flights to over 150 worldwide destinations, including direct flights to the Far East and the West Coast of America following the 2014 runway improvements. KING EDWARDS COURT SITUATION RAILWAY STATION King Edwards Court is prominently located on the corner of the A5127 Birmingham Road and Kind Edwards Square, affording it excellent frontage onto one of Sutton Coldfield s main arterial routes. The surrounding area is a popular commercial location featuring the principle office zone within the town centre, whilst Sutton Coldfield s main retail offering can be found just a short walk to the south including the Gracechurch Shopping Centre. The property lies within 150 metres of Sutton Coldfield Railway Station, providing excellent connectivity, whilst the on-site parking and adjacent pay and display car park provide ample parking for road users. Neighbouring occupiers include Mosely Chapman Solicitors, Green & Co, Hollyfield Personnel, Connells Estate Agents and Mouchel Construction Services. 3
DESCRIPTION King Edwards Court provides a well presented, self contained office building with secure parking accessed from both King Edward s Square to the front and Railway Road to the rear of the property. The property was constructed in the early 1980 s, and comprises five interlinked office units, all arranged over ground and two upper floors, The property has been extensively refurbished and interconnected as Dignity have expanded their HQ function into the entire property over recent years. The property provides masonary elevations, double glazed powder coated windows and a pitched tiled roof. Each individual block has a dedicated entrance that offers excellent future flexibility, however the current tenant occupies the entire property and provides a feature reception off the King Edward s Square elevation. Internally the office specification includes: Suspended Ceilings Recessed Fluorescent Lighting with PIR sensors Perimeter Trunking Air Conditioning with Individual Zone Control Two Passenger Lifts Male, Female and Disabled WC Facilties CCTV Protection Externally the property benefits from 82 parking spaces. 14 of these spaces are located in a secure courtyard, protected by a security barrier. A further 68 spaces are located to the south and west of the site adjoining the office building and benefit from full CCTV protection. The property benefits from an attractive parking ratio of 1:234 sq ft. 4
ACCOMMODATION The accommodation has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas:- Unit Floor Sq M Sq Ft Unit 2 Ground Floor 113.53 1,222 First Floor 126.81 1,365 Second Floor 129.32 1,392 Unit 3 Ground Floor 116.13 1,250 First Floor 128.02 1,378 Second Floor 128.21 1,380 Unit 4 Ground Floor 28.71 309 First Floor 74.41 801 Second Floor 74.41 801 Unit 5 Ground Floor 30.19 325 First Floor 32.61 351 Second Floor 32.61 351 Unit 5 Ground Floor 248.61 2,676 First Floor 259.48 2,793 Second Floor 259.48 2,793 Total 1,782.51 19,187 The Site Extends to approximately 0.323 Hectares (0.798 Acres) TENURE Freehold 5
TENANCY The property is let on effective full repairing and insuring terms as per the following tenancy schedule:- Tenant Demise NIA sq ft Lease Start Lease Expiry Break Rent Review Rent /sq ft Comments Dignity Funerals Ltd Unit 2 - Ground Floor 1,222 01/06/2015 22/03/2026-23/02/2020 16,500 13.50 Dignity Funerals Ltd Unit 2 - First Floor 1,365 15/03/2013 22/03/2026-23/02/2020 18,428 13.50 The tenant has the benefit of a rent free period until 1 st March 2016. The vendor will cover the outstanding tenant incentive. The tenant has the benefit of a rent free period until 15 th November 2017. The vendor will cover the outstanding tenant incentive. Dignity Funerals Ltd Unit 2 - Second Floor & Units 3, 4, 5 & 6 16,600 19/08/2010 22/03/2026-27/09/2019 224,100 13.50 Daniel Thwaites PLC Cellar Access - 25/12/1981 24/12/2980 - - Peppercorn - Total 19,187 259,028 6
COVENANT Dignity Funerals Limited (Company Number 00041598) Dignity funeral homes and crematoria have been serving local communities since 1812. The business has grown significantly since then, acquiring other family based funeral homes across the UK. In 2001 the funeral homes were consolidated under the banner of Dignity Funerals Limited whilst maintaining their individual trading names. Today Dignity Funerals are a FTSE 250 company listed on the London Stock Exchange, with over 2,800 employees. They own 718 funeral locations and operate 39 crematoria in the UK. King Edwards Court is the UK head office and registered trading address. 150 people are currently employed on site. Dignity Funerals Limited has an ICC rating of 95/100 which represents a Minimum Risk of business failure. Summarised below are three years of financial accounts. 26 Dec 2014 (000 s) 27 Dec 2013 (000 s) 28 Dec 2012 (000 s) Turnover 237,635 219,026 198,735 Pre Tax Profit 64,013 54,379 48,307 Total Assets 368,198 378,092 368,337 Net Worth (60,992) (45,271) (53,129) For further information, shareholder and investor reports please visit:- www.dignityfunerals.co.uk 7
ENERGY PERFORMANCE CERTIFICATE VIEWING AND FURTHER INFORMATION Unit EPC Rating For further information please contact: 2 C (66) 3 C (72) 4 D (76) 5 D (77) 6 D (77) ESTATE MANAGEMENT JLL - Birmingham 45 Church Street Birmingham B3 2RT James Hemstock T: +44 (0)121 214 9893 E: james.hemstock@eu.jll.com Ben Kelly T: +44 (0)121 634 6527 E: ben.kelly@eu.jll.com The property is subject to a Service Charge budget. There are no landlord shortfalls. Further information is available upon request. VAT This asset is being marketed on behalf of the joint Law of Property Act Receivers and therefore no warranties or guarantees in any respect, including VAT, can be given. The LPA Receivers are not bound to accept the highest or any offer and are acting without personal liability The property has been elected for VAT. It is envisaged the sale will be treated as a TOGC (Transfer of Going Concern). PROPOSAL We are instructed to seek offers in excess of 3,050,000 (Three Million and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.02% assuming purchaser costs of 5.80%, and a low capital value per sq ft of 159.96. Crown Copyright 2016. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. January 2016 Jones Lang LaSalle IP, Inc. 8