REGUS LAKESIDE 5300 CHEADLE ROYAL BUSINESS PARK CHEADLE, SK8 3GP High Yielding Single Let Business Park Investment
ONE Investment Summary Prominent, well specified office investment situated on an established out of town business park in South Manchester Cheadle Royal Business Park is one of the North West s premier business parks, comprising over 600,000 sq ft of office, leisure and amenity space The property comprises a modern, detached three storey office building, totalling 27,355 sq ft Excellent car parking ratio of 1:207 sq ft (132 car parking spaces) Let in its entirety to Manchester Cheadle Centre Ltd on full repairing and insuring terms for 10 years from 14 May 2010 (approximately 2 years unexpired), with a guarantee from Regus Business Centre BV Total passing rent of 450,000 per annum, equating to 16.45 per sq ft overall Offers in excess of 4,435,000 (Four Million, Four Hundred and Thirty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 9.50% and a low capital value of 162 psf, assuming purchaser s costs of 6.56%
TWO Location A580 A576 A62 Manchester City Centre 8.2 miles I 22 mins Cheadle Town Centre 1.7 miles I 6 mins M60 Junction 3 1.8 miles I 5 mins Gatley Train Station 1.6 miles I 6 mins Stockport Train Station 5.1 miles I 14 mins Manchester Airport 4.5 miles I 14 mins REGUS LAKESIDE 5300 HIGHFIELD A34 ROYAL CRES BROOKS DR LAKESIDE WILMSLOW RD A34 Croft 21A 10 Appleton 21 20A 11 A580 Glazebury Culcheth Birchwood M6 Lymn A57 A50 M62 M56 High Legh Partington Dunham Massey A556 7 Mere 12 M60 Urmston M602 9 2 Eccles 7 Sale Salford A56 Stretford 5 A56 Wythenshawe Timperley A560 Altrincham Ashley 6 Mobberley 1 5 MANCHESTER Castlefield A5103 Gatley Manchester Airport A6010 A6 A34 A34 REGUS LAKESIDE 5300 M60 Droylsden 23 A635 M60 A57 3 Stockport Rail Station Cheadle Cheadle Rail Station Alderley Edge 1 Cheadle Hulme 24 A6 M67 Stockport A523 Adlington Hyde Hazel Grove
THREE Situation Lakeside 5300 is situated on Cheadle Royal Business Park, a 67 acre business park in South Manchester which was largely developed by Muse Developments. Set in mature parkland, the business park enjoys excellent transport links, being within two miles of the M60 orbital motorway and within easy reach of Manchester Airport. The property is located off the A34, which provides a link to Manchester City Centre and Cheshire conurbations. A wide range of amenities have been developed at the park including shopping facilities, a health club, crèche, restaurants, bars and hotels. Major occupiers on Cheadle Royal Business Park include:
FOUR Description Accommodation Lakeside 5300 was constructed in 1999 to provide a detached, self-contained office building, arranged over ground and two upper floors. The buildings has L-shaped floor plates and is of steel frame construction with brick elevations under a pitched slate roof. The main entrance and reception area at ground floor level has full height structural double glazed screen with a revolving entrance door. Internally, the tenant has divided the accommodation to provide a mix of private and open plan offices together with meeting facilities of various sizes, in line with a typical serviced office concept. Specification includes: Suspended ceilings incorporating Male / female WC s and showers CAT II lighting on each floor Raised access floors CCTV and 24/7 secure access Four-pipe fan coil air conditioning (the 132 car parking spaces (1:207 sq ft), tenant replaced the chillers in Q1 2018) including 21 underground car Two passenger lifts parking spaces The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition on a Net Internal Area (NIA) basis. IPMS measurements are available upon request. Floor Sq Ft Sq M Basement (Storage) 1,307 121.41 Ground (Reception) 673 62.52 Ground (Offices) 8,401 780.51 First (Offices) 8,401 780.51 Second (Offices) 8,401 780.51 Total 27,355 2,541.41
FIVE Site Covenant Information The site extends to approximately 1.56 acre (0.63 hectares). Site coverage is 17%. Manchester Cheadle Centre Ltd (trading as Regus) Regus provides serviced offices, virtual offices, meeting rooms and videoconferencing to their customers on a contract basis. The company was founded in Brussels in 1989 and currently operates in 900 cities across 120 countries with almost 3,000 business centres, making it the world s largest provider of flexible workspace. In December 2016, Regus Plc changed its name to IWG Plc and established a new company under a scheme of arrangement. The company is based in Luxembourg and is listed on the London Stock Exchange, as a constituent of the FTSE 250 Index. Further information can be found at https://www.regus.co.uk/office-space/ united-kingdom/cheadle/manchester-cheadle Their financial position can be summarised as follows: Tenure The property is held Long Leasehold (under Title Number GM809161) for a term of 215 years (less 3 days) from 29 September 1995 at a peppercorn rent. There is approximately 192 years unexpired. Fiscal Consolidated 31 Dec 2016 Fiscal Consolidated 31 Dec 2015 Fiscal Consolidated 31 Dec 2014 Sales / Turnover 993,000 1,050,000 1,149,000 Profit / (Loss) ( 321,000) ( 261,000) ( 122,000) Tangible Net Worth ( 1,846,000) ( 1,525,000) ( 1,162,000) Net Current Assets (Liabilities) ( 1,847,000) ( 1,527,000) ( 1,166,000) Tenancy The property is let in its entirety to Manchester Cheadle Centre Ltd on full repairing and insuring terms for 10 years from 14 May 2010, expiring 13 May 2020, at a total passing rent of 450,000 per annum ( 16.45 per sq ft). The lease is guaranteed by Regus Business Centre BV.. There is currently an outstanding rent review from 15 May 2015.
SIX Occupational Market Investment Market South Manchester continues to be the best performing out of town office market in the North West. Take up in the South Manchester office market exceeded 635,000 sq ft in 2017, the highest in recent years and 17% above the 5 year average. This strong demand continued into Q1 2018 with take up totalling 169,170 sq ft. Prime rents in South Manchester have reached 24.00 per sq ft with secondary refurbished rents from 17.50 to 20.00 per sq ft. We anticipate further rental growth for refurbished buildings as supply for modern space continues to reduce and the development pipeline remains limited. At present, there are only three buildings available in South Manchester that can accommodate a requirement greater than 25,000 sq ft; Dakota House at Conchord Business Park, Dovecote House and Jackson House in Sale. Date Property Area (sq ft) Tenant Rent (per sq ft) March 2018 Manchester Green, Airport 6,934 CTS 17.50 Jan 2018 4M, Airport 27,758 The Hut Group 22.00 December 2017 MIOC, Airport 3,164 X-Rite 17.50 October 2017 Altitude, Atlas Business Park 5,317 EMCOR Group 17.50 September 2017 Manchester Green, Airport 14,687 Assetz Capital 17.50 September 2017 One Didsbury Point, Didsbury 8,255 Carrier Travel 18.00 July 2017 Towers Business Park, Didsbury 3,850 Stryker 24.00 The North West Out of Town office market has witnessed over 500m in transactions over the last 2 years with notable transactions including Birchwood Park, Soapworks, Exchange Quay, Manchester Green and Trident Business Park. Manchester Airport and Salford Quays have attracted the majority of this recent investment, which is linked to strong occupational activity and infrastructure improvements. Prime Out of Town Office yields are in the region of 6.50% offering a 200 bps discount to Manchester Prime City Centre Office Yields. This pricing discount combined with rental growth prospects continue to attract a diverse base of UK and International Investors. Date Property Area (sq ft) May 2018 Feb 2018 June 2017 Feb 2017 Dec 2016 Aug 2016 Jan 2016 Lakeside 3400, Cheadle Royal Renaissance House, Warrington Southern Gate, Parkway, Didsbury No.1 Lakeside, Cheadle Royal Lovell House, Birley Fields, Didsbury Lakeside 5000, Cheadle Royal Lakeside 5500, Cheadle Royal Tenant AWULT Price NIY Capital Value ( psf) 36,749 Vacant N/A 6,615,000 N/A 180 40,679 Secretary of State 9 years 10,500,000 5.69% 258 16,490 Vacant N/A 3,300,000 N/A 200 33,674 Multi-let 3.5 years 6,000,000 8.00% 178 27,110 Vacant N/A 4,450,000 N/A 164 40,049 Balfour Beatty 3.5 years 8,470,000 8.93% 211 26,281 Multi-let 4.5 years 5,475,000 7.82% 208
SEVEN EPC VAT Proposal Contact The property has an Energy Performance Asset Rating of C67. Further information is available upon request. The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated the transaction will be treated as a Transfer of a Going Concern. We have been instructed to seek offers in excess of 4,435,000 (Four Million, Four Hundred and Thirty Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 9.50% and a low capital value of 162 psf, assuming purchaser s costs of 6.56%. For further information or to arrange an inspection, please contact: Tom Dawson E: tom.dawson@knightfrank.com T: 0161 833 7717 M: 07468 727 122 Mike Pochin E: mike.pochin@knightfrank.com T: 0161 833 7692 M: 07856 584 523 Henry Wyld E: henry.wyld@knightfrank.com T: 020 7861 1520 M: 07768 833 478 KnightFrank.co.uk 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 OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. May 2018. Design by carve-design.co.uk 13534.