HIGH YIELDING OFFICE INVESTMENT OPPORTUNITY BRAMAH AVENUE SCOTTISH ENTERPRISE TECHNOLOGY PARK EAST KILBRIDE G75 0RD
2 INVESTMENT SUMMARY High quality office building located on one of Scotland s leading Science and Technology Parks. East Kilbride is Scotland s largest town and its fifth largest settlement with a population of approximately 74,000 people. Modern office pavilion, completed in 2008, extending to 1,419.41 sq m (15,278 sq ft). BREEAM Rating of Excellent. Fully let to two high quality tenants, with opportunities to add value through active asset management. Passing rent of 185,132 per annum, with an estimated rental value of 198,614 per annum.»» Offers in excess of 1,200,000 (One Million, Two Hundred Thousand Pounds Sterling) representing an attractive net initial yield of 14.63%, after allowing for purchaser s costs based on LBTT and a low capital value of 78 per sq ft.
3 LOCATION East Kilbride is Scotland s first, and most successful, new town, with a population of approximately 74,000 people and a catchment population of over 1.7 million. The town is located some 11 miles south east of Glasgow city centre and 6 miles west of Hamilton in the South Lanarkshire Council area. Lanarkshire sits at the hub of Scotland s road network where three main motorways converge. East Kilbride is strategically located within Lanarkshire benefiting from excellent accessibility to the M77, M74 and M8 which form the heart of the country s motorway network. The A725/A726 is the principal east/west route through East Kilbride and forms the Glasgow Southern Orbital which links the town with the M77 to the west and the M74 to the east. The M77 connects Ayr and ferry ports to the south west with Glasgow to the north, whilst the M74 is the principal cross border motorway connecting England and south west Scotland with Glasgow. The M74 also provides an essential link to the M8 at Baillieston, via the M73. The A749 connects East Kilbride to Glasgow s southern suburbs to the north. East Kilbride enjoys excellent rail communications with two stations situated within the town, as well as being 12 miles from Eurocentral, Scotland s first Eurofreight Terminal, linking Scotland via the Channel Tunnel to mainland Europe. Scotland s three main international airports at Glasgow, Edinburgh and Prestwick are all within a 45 minute drive time. The town supports a diverse range of national and international business organisations, many in the technology sector. SITUATION The property is situated on Bramah Avenue, within Scottish Enterprise Technology Park in East Kilbride. The Park is located off Birniehill roundabout, within a 5 minute walk of East Kilbride Shopping Centre and Bus Station. The Park comprises a well established 32.5 hectare business location which is home to a cluster of science, technology and research and development companies, from initial business start-ups to growing businesses and global leaders. PAISLEY A726 A82 GLASGOW INTERNATIONAL AIRPORT (24 MILES) J27 TO AYRSHIRE & PRESTWICK INTERNATIONAL AIRPORT (20 MILES) J26 M77 J22 A727 A726 GLASGOW SOUTHERN ORBITAL HIGHWAY GLASGOW M74 A749 EAST KILBRIDE M80 A726 M8 A725 M73 RAITH INTERCHANGE A80 A725 J5 HAMILTON TO EAST & EDINBURGH INTERNATIONAL AIRPORT (35 MILES) M74 A73
4 EAST KILBRIDE TECHNOLOGY PARK Glasgow is world renowned as an international centre of excellence for research and development (R&D), design and engineering of renewable and clean tech and is a hub for biotechnology and Life Sciences in Scotland. Glasgow s dominant universities and colleges provide a steady and well educated stream of staff, with over 130,000 students from 135 countries making it the largest student population in Scotland. The Park was established in 1994 when it was acquired by Scottish Enterprise to encourage and assist the growth of technology based companies. The Park offers a range of multiple occupancy and single let buildings, catering for a range of requirement sizes. Currently there are over 100 companies on site, employing in excess of 1,200 staff. Occupiers within the park benefit from a broad range of facilities including a security controlled, high amenity landscaped environment and conference facilities supplemented by an on site café/coffee bar which provides snacks and buffet services for meetings and corporate lunches. There is also an on site nursery and a direct interface with Scottish Enterprise who continue to own and operate the Technology Park. The park is already home to companies within the following sectors: Advanced engineering and electronics Environmental technology Medical and pharmaceutical Information technology and software development Biotechnology
11 10 A726 10 16 12 13 17 15 14 A725 KINGSWAY 18 9 A726 QUEENSWAY 8 7 6 5 EAST KILBRIDE SHOPPING CENTRE 1 2 KEY 3 4 1. Orion House 2. Weir Group 3. Heliex Power 4. EKES Engineering Solutions 5. Naismith Building 6. Clansman Dynamics 7. Brunel Building 8. Technology Centre 9. James Watt Centre 10. TUV NEL 11. South Lanarkshire College 12. Scottish Universities Environmental Research Centre 13. Natural Environment Research Council 14. Technotots Nursery 15. Ichor Systems, Cockayne Instrument Control 16. Torus Building 17. Prism House 18. Café
6 DESCRIPTION Orion House is a modern, two storey office building constructed in 2008. The property extends to approximately 1,419.41 sq m (15,278 sq ft) over ground and first floors. The L-shaped floor plate comprises two separate wings accessed off a central core area. The property provides high quality, open plan office accommodation which is easily sub-divisible, providing occupiers with maximum occupational flexibility. Ground Floor Plan The building achieved a BREEAM Excellent certification and its sustainability credentials were a key factor in the choice of Building Research Establishment and, previously, The Carbon Trust locating at Orion House. The specification includes: Striking double height reception foyer Full raised access floors with clear 250 mm void VRV Air conditioning 2.9m floor to ceiling height Suspended ceilings with modern lighting Male, female and disabled WC s Shower facilities 10 person passenger lift Quality internal finishes Attractive landscaped environment Secure cycle parking facility First Floor Plan
7 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and has the following approximate net internal floor areas: NIA (sq m) NIA (sq ft) Ground Floor 712.50 7,669 First Floor 706.91 7,609 TOTAL 1,419.41 15,278 TENURE The property is held by way of a long ground lease from Scottish Enterprise expiring 28 March 2132 at a rent of 1 per annum, if asked. CAPITAL ALLOWANCES There are no transferable plant and machinery capital allowances available to the purchaser as these are to be retained by the vendor. PLANT & MACHINERY ENERGY PERFORMANCE CERTIFICATE The EPC rating of the property is D. VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. However it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). None of the systems or equipment in the property have been tested by Cushman & Wakefield LLP and a prospective purchaser may wish to make their own investigations to check that they are in working order.
8 TENANCY The property is fully let in accordance with the tenancy schedule below. The property provides a purchaser with an overall weighted average unexpired term of 7.01 years to expiries and 3.54 years to breaks. Tenant Floor Area (sq ft) Car Parking Lease Start Lease Expiry Rent Review Break Rent (pa) Rent (per sq. ft.) ERV (pa) ERV (psf) Comments Gael Limited Building Research Establishment Limited 1st & Ground (Part) Ground (Part) 11,606 28/11/2008 27/11/2023 28/11/2018 28/11/2018 128,777 11.10 150,878 13.00 Area specified in lease as 11,707 sq ft. 3,672 27/10/2013 27/10/2018 56,355 15.35 47,736 13.00 Area specified in lease as 3,757 sq ft. 11 car parking spaces TOTAL 15,278 185,132 198,614
9 COVENANT INFORMATION Ideagen Gael Limited (Reg No: SC208191) [formerly Gael Limited] Gael are a leading provider of quality and risk management software to the aviation, manufacturing, healthcare and services sector. The company was established in 1992 and their Q-Pulse software application is the proven global compliance solution currently used in 86 countries worldwide, by over 2,500 organisations and 1.25 million users. Gael Limited were aquired by Ideagen Plc in December 2014 for 18m and are a wholly owned subsidiary of the Ideagen Group Plc. Further information is available on request Ideagen Gael Limited have a D&B Rating of 1A2, representing a lower than average risk of business failure. For the year ended 31st December 2013, the company showed a turnover of 8.045m and a pre-tax profit of 1.433m. www.gaelquality.com Building Research Establishment Limited (Reg No: 03319324) The BRE Group has a history stretching back over 90 years, initially as a government funded research laboratory before being privatised in the 1990s. The ultimate holding company of the BRE Group of companies is BRE Trust, who are a registered charity with a mission to support built environment research for the public benefit. For the year ended 31st March 2014, the company showed a turnover of 21.23m and a pre-tax profit of 0.61m with a D&B Rating of N1, representing a minimum risk of business failure. BRE provide a complete range of consultancy, testing, certification, research and training services to all aspects of the built environment and associated industries. www.bre.co.uk
PROPOSAL & FURTHER INFORMATION We are instructed to seek offers in excess of 1,200,000 (One Million, Two Hundred Thousand Pounds Sterling) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 14.63%, after allowing for purchaser s costs at 5.49%, and a low capital value of 78 per sq ft. For further information or to arrange an inspection please contact: CALUM COWE Tel: 0131 226 8759 Email: calum.cowe@eur.cushwake.com STEVEN NEWLANDS Tel: 0131 226 8756 Email: steven.newlands@eur.cushwake.com Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 1EL MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP, their clients and any joint agents, give notice that: (i) These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (iii) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents, is free of contamination, or that the services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. May 2015.