Modern Business Park Office Investment Opportunity 2010, 2020, 2030, 2040 & 2050 Birmingham Business Park The Crescent Birmingham, B37 7YS
Investment Summary Four office buildings located on Midland s premier business park WOLVERHAMPTON WALSALL A34 SUTTON COLDFIELD TOLL TOLL A38 3 A5 A5 A444 A5 HINCK Considerable asset management opportunities Total of 47,203 sq.ft Excellent parking ratio 1:189 Total rental income of 817,793 per annum (average passing rent is only 16.96 per sq.ft) DUDLEY A4123 M5 M5 A34 A41 40 BIRMINGHAM 6 40 TOLL A446 A444 A47 NUNEATON 9 A5 Three buildings fully refurbished to a very high standard Quoting price of 9,300,000 Net initial yield of 8.24% Underlying capital value of only 197 per sq.ft 8 STOURBRIDGE 6 A491 M5 A38 A441 A435 A41 SOLIHULL A34 COVENTRY A444 A4114 A4600 A46 M5 A38 A441 A435 M40 WALSALL A4177 4 TAMWORTH COLESHILL A46 A446 A423 Second entrance & roadway onto park under construction. Due to complete by end 2018 Blackfirs Lane Location The property is located within the borough of Solihull. It lies immediately adjacent to Birmingham International Airport, Birmingham International Railway Station, the NEC and, on its completion, will be in close proximity to the HS2 Birmingham Interchange Terminal. The Metropolitan Borough of Solihull has a resident population of around 208,900 (Source: Nomis ONS 2013). Economically, the town s credentials support a strong service sector economy with Solihull town centre and key regional strategic assets (Birmingham Business Park, the NEC complex, Jaguar Land Rover and Blythe Valley Business Park) primarily responsible for drawing in around 85,000 workers to the borough on a daily basis. (Source: Solihull Observatory). BIRMINGHAM MARSTON GREEN COVENTRY RD BIRMINGHAM BUSINESS PARK BIRMINGHAM AIRPORT CHESTER RD COLESHILL HEATH RD SOLIHULL PKWY BICKENHILL PKWY BICKENHILL NEC The park is situated on the eastern fringe of Birmingham, and benefits from excellent communication links being in close proximity to Junction 6 of the and Junction 4 of the. Birmingham International Rail Station is less than 2.3 miles to the south and provides journey times of 1 hour 13 minutes to London Euston as well as regular trains to Birmingham New Street, Coventry, Manchester Piccadilly and Glasgow Central. The property is located less than 2.5 miles from Birmingham International Airport which operates regular routes to numerous major global destinations. 7 7A SOLIHULL 4 STONEBRIDGE RD Proposed HS2 Railway Station Birmingham Interchange PENDIGO WAY CHESTER RD 3A MAXSTOKE COVENTRY COVENTRY
UK Central Hub HS2 Birmingham Business Park The property is situated within an area identified as the UK Central Hub. It sits at the heart of the national motorway network with 75% of the UK population within a 3 hour drive time. The UK Central Hub Growth Infrastructure Plan has aspirations for the Hub to become globally renowned as the best connected business, leisure and entertainment destination in Europe. Key to the growth strategy is the Hub s connectivity and it will be unique in its own offer of providing a brand new HS2 station in close proximity to a major airport and an existing national railway station. It is anticipated that as part of the growth strategy, the UK Central Hub can provide at least 8.3 million sq ft of commercial mixed use floor space. HS2 received Royal Assent in February 2016 for the construction of HS2 Phase 1 between London and Birmingham. The first stop on HS2 will be at Birmingham Interchange Station which will be located immediately to the southeast of Birmingham Business Park and is due for completion by 2026. Birmingham Business Park is 12 miles east of Birmingham city centre and is the most established business park in the West Midlands. It comprises over 148 acres and circa 1.9 million sq ft of office accommodation. The park is home to over 100 companies and in excess of 7,000 employees. Major occupiers on the park include Rolls Royce, Fujitsu, Goodyear, West Midlands Police, Atos, Changan, EE, IMI, Uniper and WM Housing. The second phase of the line will extend the route to Manchester, Leeds and beyond by 2033. On completion of the first phase of HS2, the journey from Birmingham Business Park (including travel time from the property to the station) to London is expected to take less than 45 minutes. There are plans to connect Birmingham Business Park to the HS2 terminal by metro/tram as part of a wider regional connectivity plan. Atos Changan Ryder Trucks IMI Regus Rolls Royce EE WM Housing Group West Midlands Police Fujitsu Continuing Development On The Park The majority owner, the BlackRock UK Property Fund has a strong ongoing commitment to Birmingham Business Park. There have been substantial improvements and initiatives to the general amenity on the park in recent years including: On site Park Development Officer Foodie Friday Outdoor gym Walking circuits Birmingham business park Cycling Community Club Woodland walks Sports challenges Outdoor table tennis A children s nursery opened in June 2017. Further expansion of a wide variety of amenities and complimentary commercial uses are planned. A new entrance onto the park will be created from Bickenhill Parkway which will provide an alternative access to the main entrance at Solihull Parkway/ junction. This is scheduled to be completed by the end of 2018.
Tenancy Schedule The units are currently let to five tenants and have a AWULT of 3.6 years to expiries and 1.5 years to breaks. The average rent passing is only 16.96 per sq.ft. ADDRESS TENANT FLOOR AREA NIA (Sq Ft) 2010, The Crescent Beiersdorf UK Limited G - 14,566 1-13,198 T - 27,764 2020, The Crescent Marel GB Limited G - 3,089 1-3,303 T - 6,392 EPC RATING CAR PARKING SPACES PARKING RATIO ESTATE CHARGE INSURANCE LEASE START DATE LEASE EXPIRY DATE LEASE BREAK DATE NEXT RENT REVIEW DATE PASSING RENT (Per annum) PASSING RENT ( /Sq Ft) COMMENTS D 150 1:185 14,737 3,057 01/01/04 31/12/18 425,832 15.34 Tenant relocating to Trinity Park on expiry of lease. Dilapidation schedule has been served. Discussions ongoing. D 34 1:188 8,579 777 22/04/16 21/04/26 22/04/21 22/04/21 130,000 20.34 The rent will increase to 150,000 per annum if tenant remains beyond break. Tenant has 6 months at half rent if break not exercised. Break option requires 9 months notice. 2030 Ground Floor, The Crescent Vendor Guarantee 3,397 C 18 1:189 8,364 343 74,735 22.00 12 month rental guarantee provided by vendor. 2030 First Floor, The Crescent ISS Facility Services Limited 3,450 C 18 1:191 8,654 354 08/12/17 07/12/32 07/12/20 07/12/22 75,942 22.01 Break option requires 6 months notice. Further break options in December 2022 & 2027. 2040 Ground Floor, The Crescent Westleigh Partnerships Limited 1,528 C 8 1:191 3,354 197 21/11/16 20/11/21 20/11/19 31,284 20.47 Break option requires 6 months notice. Tenant has 4 months rent free if break not exercised. 2040 First Floor & 2050 The Crescent Actemium UK Limited 1-1,578 G - 1,542 1-1,552 T - 4,672 D 22 1:212 10,257 568 19/02/15 18/02/20 80,000 17.12 Total 47,203 250 1:189 817,793 Description The property comprises four well maintained business park offices in a very mature and well maintained business park environment. The buildings were developed in 1989/1990 and are of concrete frame construction with brick clad elevations, aluminium frame double glazed windows under pitched tiled roofs.
BUILDING 2010 The building was substantially refurbished by the current tenant in 2013 and comprises a self contained two storey headquarters office building totaling 27,764 sq.ft. There are 150 car parking spaces providing a ratio of 1:185 sq.ft. The building benefits from the following internal specification: Four pipe fan coil air conditioning Suspended ceilings LG7 lighting Raised floors (to the majority of the offices) Beiersdorf UK Limited The company is involved in the sale, marketing and distribution of skin care products with brands including Nivea, La Prairie and Eucerin. For the last 3 financial years the company reported the following accounts:- 31/12/2016 31/12/2015 31/12/2014 208,037 204,051 199,235 35,202 29,390 22,534 64,317 36,937 27,944 BUILDING 2020 The building was substantially refurbished in April 2016 and comprises a self contained two storey office building totalling 6,392 sq.ft with 34 car parking spaces providing a ratio of 1:188 sq.ft. The building benefits from the following internal specification: New VRF comfort cooling In floor and perimeter trunking Suspended ceiling Door entry system Marel GB Limited The company is involved in the import, distribution, installation and technical support of equipment and systems for the food processing industry. For the last 3 financial years the company reported the following accounts:- LED lighting High specification WCs 31/12/2016 31/12/2015 31/12/2014 18,224 17,340 16,072 349 1,074 1,089 1,555 1,300 1,194
BUILDING 2030 The building was substantially refurbished in April 2016 and comprises a self contained two storey office building totalling 6,847 sq.ft with 36 car parking spaces providing a ratio of 1:190 sq.ft. The building benefits from the following internal specification: New VRF comfort cooling In floor and perimeter trunking Suspended ceiling Door entry system ISS Facility Services Limited The company is involved in facility services including cleaning, landscaping and catering services along with building maintenance and security. For the last 3 financial years the company reported the following accounts:- LED lighting High specification WCs 31/12/2016 31/12/2015 31/12/2014 799,902 702,175 665,172 35,489 28,821 27,883 126,422 148,017 125,224 BUILDING 2040/2050 Building 2040/2050 was substantially refurbished in February 2015 and comprises two, semi detached two storey office buildings with separate entrances to both ground and first floor suites. The two units total 6,200 sqft. There are a total of 30 car parking spaces providing a ratio of 1:207 sq.ft. The building benefits from the following internal specification: Suspended ceilings Dedicated entrances for each office suite LED lighting In floor and perimeter trunking High specification WCs Westleigh Partnerships Limited The company is involved in the design and building of projects for affordable housing partners, private housing and commercial developments along with the manufacture of timber frame products. For the last 3 financial years the company reported the following accounts:actemium UK Limited The company is part of VINCI Energies and is involved in the provision of services in the energy and information technology sectors for industry, the service sector, infrastructure and telecommunications. For the last 3 financial years the company reported the following accounts:vacant Ground Floor Suite 31/03/2017 31/03/2016 31/03/2015 128,591 95,076 16,101 10,938 6,052 2,248 31,572 26,830 2,018 31/12/2016 31/12/2015 31/12/2014 28,233 25,981 33,206 1,730 1,934 2,537 8,320 9,626 8,057
Site Area The site area total 3.44 acres (1.39 ha). Tenure Freehold. Office Market The office market is the Midlands most established and significant office market beyond Birmingham city centre with the majority of activity taking place between Junctions 4-6 and Solihull town centre. The corridor has seen a resurgence with office takeup increasing to above prerecessionary levels and business confidence improving to the point where occupiers are seeking new accommodation, influenced by factors such as business growth, employee wellbeing, consolidation or a flight to improve the quality of space. Solihull and the corridor is home to a significant number of corporate occupiers including Arup, Kier, Siemens, Interserve, Rolls Royce and Jaguar Land Rover. Recent significant lettings include PKF Cooper Parry, BCA, Gymshark, Goodyear and Uniper. There is also unsatisfied demand from the serviced office sector. The sub-market has experienced the highest increase in office-using start-ups outside of Birmingham; a 37% uplift in the last five years. The number of medium-large (50-250 staff) businesses in the professional, scientific and technical industry has increased by a third in the last five years. This is the biggest increase of anywhere in the West Midlands. The market has been partly constrained by supply but Q1 2018 take up was 35% up on the same quarter in 2017 and the highest since Q1 2013. Many of the transactions were lease event driven with companies acquiring better quality and more efficient space. Four of the Q1 deals were over 10,000 sq.ft. Asset Management Building 2010 An exciting opportunity to reposition the asset on lease expiry through negotiation of dilapidations and refurbishment. The building lends itself to sole or multioccupancy and interest is likely to come from occupiers seeking a modern headquarters building or serviced office operators. Letting of vacant accommodation in Building 2030 of 3,397 sq.ft. Improving rental tone through active management and discussions with existing tenants. Capital Allowances Capital allowances could be made available by way of separate negotiation. Further information on request. EPCs The individual EPC ratings are detailed in the tenancy schedule. Full certificates are available on request. VAT The property is elected for VAT, however it is the intention that the sale will be dealt with by way of a Transfer of a Going Concern. Proposal We are instructed to seek offers in excess of 9,300,000 (Nine Million Three Hundred Thousand Pounds) for the Freehold interest. A purchase at this level would show a Net Initial Yield of 8.24%, after allowing for purchaser s costs of 6.69%. The underlying capital value is only 197 per sq.ft.
Further Information For further information or to arrange an inspection please contact:- ANDREW FRANCK-STEIER 0121 513 0891 andrew.franck-steier@fspproperty.co.uk ANDREW PRICE 0121 513 0892 andrew.price@fspproperty.co.uk Franck Steier Price Ltd Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD There is a dataroom with further information. Access can be arranged on request. There is a general Birmingham Business Park website where further information on the wider park, its facilities and occupiers can be found. www.birminghambusinesspark.co.uk Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.