HIGH YIELDING CITY CENTRE OFFICE INVESTMENT WEST GLAMORGAN HOUSE ORCHARD STREET SWANSEA SA1 5AD 1
WEST GLAMORGAN HOUSE ORCHARD STREET SWANSEA SA1 5AD Valuation Office Agency Virgin Atlantic Coastal Housing Tui Travel South Wales Evening Post NHS West Glamorgan House Admiral BT INVESTMENT SUMMARY L ocated in Swansea, on the M4 corridor, 42 miles west of Cardiff and 185 miles west of London. W ell situated in the city centre easily accessible from the M4 by car and walking distance from the railway station, prime retail pitch and prime leisure pitch. 2 Freehold Mixed use building totalling 30,780 sq ft arranged over six storeys. Ground floor retail/leisure and office accommodation on the 1st to 5th floors. 70% of income secured to national tenants Secretary of State, Working Links and Atkins. Low rent passing 265,741per annum 8.49 per sq ft overall. Offers are sought in excess of 2,500,000, which equates to a net initial yield of 10%. Low capital value of 79 per sq ft.
Swansea LOCATION The city of Swansea has a population of c185,000 persons, it is the second largest city in Wales on the M4 corridor 42 miles west of Cardiff and 185 miles west of London. The city is served by Junctions 47, 45 and 42 of the M4 motorway. Swansea railway station provides links to the local and national rail networks with the fastest time to London Paddington 2hrs 59mins. Swansea forms part of the Secretary of State for Transport plans to increase connectivity and decrease journey times through the electrification of the mainline railway from London Paddington to Swansea. 3 Swansea is a popular student destination and there are now more than 21,500 students in higher education at Swansea University and Swansea Metropolitan University (now part of University of Wales Trinity Saint David). Trebor Developments have recently been selected as development managers to deliver the 150m redevelopment of Swansea council s 20 acre civic centre to provide a residential and leisure led mixed use development scheme. SITUATION The property is situated in the city centre on Orchard Street. Orchard Street is easily accessible from the A483 and A4067 which provide access from north, west and east Swansea and Junctions 47, 45 and 42 of the M4. The property is situated within short walking distance to Oxford Street (the prime retail pitch), Wind Street (the prime leisure pitch) and Swansea railway station. There is a 512 space NCP car park immediately opposite. Office occupiers in the surroundings include: BT Valuation Office Virgin Atlantic TUI Travel South Wales Evening Post Coastal Housing Admiral Insurance Welsh Health Estates There have been a number of residential conversions in the vicinity. 1-7 College Street and 2 Orchard Street, was granted change of use from commercial to residential in 2015. The property is also within the consider zone in Swansea tall buildings strategy 2015. 125 metres Copyright and confidentiality Experian, 2016. Crown copyright and database rights 2016. OS 100019885 Experian Goad Plan Created: 08/06/2016 Created By: Savills For more information on our products and services: www.experian.co.uk/goad goad.sales@uk.experian.com 0845 601 6011
DESCRIPTION The property comprises a mixed use building totalling 31,295 sq ft constructed in 1990. The building provides retail/a3 accommodation on the ground floor and office accommodation on the first to fifth floor. The office accommodation has a separate entrance to the ground floor retail space and provides the following specification: 18 secure basement car parking spaces 8 person passenger lift Male and female toilets Double glazing Perimeter trunking Suspended ceilings Recessed lighting Central heating The service charge for the building is applicable to the office accommodation. The service charge budget for 2015/16 is 3.55 per sq ft. EPC EPCs available upon request. TENURE The property is held freehold. 4
ACCOMMODATION AND TENANCY Floor Use Tenant Size Start Break Expiry Rent Rent Psf Ground Floor Restaurant Wild Swan Restaurant 2,460 24/06/00 24/06/20 23/06/25 25,000 10.16 Ground Floor Retail Direct Choice Home Improvement Ltd 1,850 27/10/15 27/10/20 26/10/25 13,000 7.03 Ground Floor 600 1st Floor Office The Secretary of State for Communities & Local Government 5,200 11/03/15 31/10/18 95,650 8.50 2nd Floor 5,450 3rd Floor Office Working Links (Employment) Ltd 5,450 04/12/15 04/06/17 03/12/18 46,325 8.50 4th Floor Office Atkins Ltd 5,450 01/04/10 24/12/17 44,745 8.21 5th Floor Office Precision Financial Ltd 4,320 01/05/16 01/05/21 41,021 9.50 Total 30,780 265,741 The service charge for the building is applicable to the office accommodation. The service charge budget for 2015/16 is 3.55 per sq ft. 5
COVENANT INFORMATION SECRETARY OF STATE FOR COMMUNITIES AND LOCAL GOVERNMENT The lease was renewed in 2015. They are a long standing tenant which operate as a probation office. ATKINS LTD A global provider of engineering, design and project management consultancy. Atkins have a network of 100 offices across the UK. In the south west region they have Swansea, Cardiff and Bristol. Atkins Ltd have a Dun & Bradstreet credit rating of 5A1. Their last 3 year s financial figures are set out below: 31 March 2015 31 March 2014 31 March 2013 (000s) (000s) (000s) Sales Turnover 820,200 868,900 850,800 Profit Before Taxes 60,400 47,900 35,300 PRECISION FINANCIAL LTD A recent letting. Precision Financial Ltd are a Swansea based independent financial advisors. DIRECT CHOICE HOME IMPROVEMENT LTD Swansea based retailer of windows, doors, kitchens and bathrooms. WILD SWAN RESTAURANT A long standing restaurant operator. Personal guarantee on the lease. Tangible Net Worth 155,800 102,200 112,300 WORKING LINKS A recent letting. Working Links were established in 2000 and area national provider employments services to the public and private sector with 39 offices across the UK. Working Links (Employment) Ltd have a Dun & Bradstreet credit rating of 3A1. Their last 3 year s financial figures are set out below: 30 September 2015 30 September 2014 30 September 2013 (000s) (000s) (000s) Sales Turnover 121,557 86,283 81,368 Profit Before Taxes 2,196 2,526 (6,816) Tangible Net Worth 12,736 12,827 10,912 6
VAT The property is elected for VAT. However, we anticipate that the sale will be treated as a transfer of a going concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 2,500,000 (Two Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 10% assuming purchaser s costs at 6.38%. This equates to a low capital value per sq ft of 79 per sq ft. FURTHER INFORMATION Andrew Phillips Ross Griffin Savills Savills adphillips@savills.com rgriffin@savills.com +44 (0) 117 910 2354 + 44 (0) 2920 368 961 Tom Rees Lee Mogridge Lambert Smith Hampton Lambert Smith Hampton trees@lsh.co.uk lmogridge@lsh.co.uk +44 (0) 1792 702 800 +44 (0) 2920 490 499 SUBJECT TO CONTRACT Misrepresentation Act Messrs Savills (UK) Ltd and Lambert Smith Hampton, for themselves and for the vendors or lessors of this property whose agents they are, give notice that: 1 The particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute, nor constitute part of, an offer or contract. 2 All descriptions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct but any intending purchasers should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate. 3 No persons in the employment of Messrs Savills (UK) Ltd and Lambert Smith Hampton has any authority to make or give any representation or warranty whatsoever in relation to this property. 4 All correspondence regarding this offer is subject to contract. 7