Building 1 Bocam Park, Bridgend

BUILDING 1, BOCAM PARK, JUNCTION 35 M4, BRIDGEND, CF35 5LJ Multi-Let, Fully-Occupied, Modern Business Park Investment

02 SUMMARY

MCDONALD’S

INVESTMENT SUMMARY

STARBUCKS / Situated in Bridgend, a regionally dominant commercial location along the South Wales M4 corridor. / Bocam Park is strategically located immediately on Junction 35 of the M4 Motorway. / Building 1 provides 27,883 sq ft of high quality office accommodation in a prominent position at the entrance of Bocam Park, directly visible from the A473 which is the main arterial road into Bridgend from Junction 35.

M4 JUNCTION 35

BUILDING 1, BOCAM PARK, JUNCTION 35 M4, BRIDGEND, CF35 5LJ

/ Current rent of £325,868 per annum. This equates to a low £11.59 per sq ft on the office income with genuine prospects for reversions to be achieved at rent reviews and a low base supporting future rental growth. / Fully-let to well established Tenants with a WAULT of 4.40 years to expiries and 3.63 years to break options with asset management potential to create a reversion. / Multi-let to 4 Tenants with 84% of income secured against Government-backed entities.

The remaining income is secured against a Public Limited Company with a 99% ‘Secure’ Fame rating and the undoubted covenant of the Macmillan Cancer Support Charity.

Offers are invited in excess of £3,576,000 (Three Million, Five Hundred and SeventySix Thousand Pounds) reflecting an attractive Net Initial Yield of 8.5% (assuming standard purchaser’s costs of 7.20%) and a low Capital Value of £128 per sq ft.

Subject to Contract and Exclusive of VAT. N

Bridgend is a large town strategically located at the mid-point between Cardiff and Swansea, two of Wales’ largest cities, which are 20 miles to the east and 23 miles to the west, respectively.

There are regular direct train services to Cardiff and Swansea with current journey times of approximately 18 and 31 minutes, respectively.

Intercity journey times have been compressed following the electrification of the main railway line at the end of 2019, as part of the wider £5 billion South Wales Metro Project.

SITUATION

LOCATION

03 LOCATION

Cardiff International Airport is located approximately 30 minutes’ drive from the town centre and offers flight connections to an expanding array of international destinations.

Bocam Park is an established business park located approximately 325,000 sq ft. This is the only facility immediately on Junction 35 of the M4 Motorway and outside of Asia to produce broadcast quality camera equipment. provides convenient access to Bridgend town centre 3 miles to the east via A473. Notable neighbouring The nearby Bridgend Retail Park and Park Plaza Retail occupiers on the park include the NHS, South Wales Park offer occupiers with a plethora of amenities Police, Skanska, Staedtler, Handelsbanken and Rock IT. including Starbucks, Costa, Subway, Greggs, KFC Bizzi Day Nurseries also provides child care facilities on and Marston’s PENPRYSG Cherry Laurel pub. Major retailers site with additional amenities of Starbucks, McDonalds PENCOED include B&Q, Dunelm, Tesco, Asda, Lidl, ASDA and and Pantruthyn Farm Family Pub on Junction RAILWAY 35.

STATION Next. The McArthur Glen Designer Outlet at J36 is the largest luxury retail outlet in South Wales and is Adjoining Bridgend town centre are Bridgend Industrial complemented by a 9-screen Odeon Cinema.

Estate, Waterton Industrial Estate and Bridgend Science Park, which collectively with Bocam Park, Several hotels nearby include Premier Inn Hotels at propel Bridgend as a regionally dominant commercial J35 and J36, Best Western’s Heronston Hotel & Spa, location. Major office occupiers include CGI, St.Mary’s Hotel & Spa and Coed-y-Mwstwr Hotel.

3M Healthcare, Severn Trent Water and the South The latter two also provide golf course facilities, as Wales Police HQ, amongst others. Sony Technology well as Bridgend Golf Complex. All three golf facilities are within close proximity to Bocam Park, also situated are within a 10 minute drive ofA473 Bocam Park. on Junction 35. Sony have been present in Bridgend since 1992 and occupy a substantial facility totalling

TO SWANSEA Sony UK Technology Centre

PENCOED

Invacare

A473

M4

COYCHURCH WAY

J35

NHS Wales Informatics Service

PENCOED WAY Sinclair Mercedes

Manning Construction

TO BRIDGEND

Business Clay Shaw in Focus Thomas Chartered Vale Accountants Consultancy Skanska Staedtler UK Ltd

BUILDING 1, BOCAM PARK

ReNeuron

National Imaging Academy Wales

Premier Inn Texaco Pantruthyn Farm Table Pub Starbucks McDonald’s

M4

TO CARDIFF

NEARBY & THE BUILDINGS

DRIVE TIMES

M50 ROSS-ON-WYE

CHELTENHAM

1,013,860 people within a 30-MINUTE drive time

ABERGAVENNY

GLOUCESTER

MONMOUTH

EBBW VALE

M5

M5

CWMBRAN M48

PONTYPRIDD

BRIDGEND

CAERPHILLY

NEWPORT

M4

M4

M4

AVONMOUTH

BRIDGEND

CARDIFF BRISTOL CARDIFF AIRPORT

M5

BRISTOL AIRPORT

M4

BATH

2,426,779 people within a 60-MINUTE drive time Source: CACI

Building 1 Bocam Park provides high quality office space in a well maintained business park setting. Building 1 sits at the entrance of Bocam Park and occupies a prominent corner plot with immediate visibility from theSWINDON A473, providing occupiers with the ability to display highly visible signage.

Constructed in 2005, Building 1 provides office accommodation totalling 27,883 sq ft over three storeys with two stairwell cores. Having two stairwells, enables the ability to sub-divide the office space further to capture a wider size range of occupier requirements and benefits from the following specification: / Comfort cooling and heating. / Suspended ceilings. / Recessed lighting. / Two stairwell cores. / Two passenger lifts. / Male, females and disabled WCs in each core. / DDA compliant. / Shower facilities. / 125 car parking spaces providing an excellent car parking ratio of 1:223 sq ft occupied.

EPC

SWANSEA

DESCRIPTION

MERTHYR TYDFIL

TENURE

04

The property has an EPC rating of C(69).

A copy of the certificate and report is available upon request.

Virtual freehold via a 999 year long leasehold at a peppercorn rent.

FLOOR

SIZE SQ FT

SIZE SQ M

TENANT

LEASE START LEASE EXPIRY

GF, Part 1st & Part 2nd

16,460

1,529.2

Public Services Ombudsman for Wales

10/08/2015

RENT REVIEW

BREAK OPTION

09/08/2025

RENT (£ PA)

RENT (£ PSF)

EXPIRIES

BREAKS

COMMENTS

£193,405

£11.75

4.94 years

4.94 years

64 spaces demised.

Service charge cap at £65,840 p.a. + VAT (£4.00 psf).

The SC is currently operating at £2.00 psf.

The passing rent is £164,400 per annum until the 9th August 2024 which will be topped up by the Vendor.

The Tenant was the first occupant in the building in 2005 and has since expanded significantly.

Part 1st

1,712

159

Davies Turner PLC

29/09/2016

28/09/2026

29/09/2021

29/09/2021

£21,886

£12.78

6.08 years

1.08 years

Part 1st

2,454

228

Macmillan Cancer Support

03/08/2016

28/09/2026

29/09/2021

28/09/2021

£28,000

£11.41

6.08 years

1.07 years

11 spaces demised.

10 spaces demised. Additional 5 spaces licenced at £1,250 PA (£250 per space PA).

Part 2nd

7,257

674.2

Swansea Bay University Health Board

20/09/2017

19/09/2022

£79,827

£11.00

2.05 years

2.05 years

29 car parking spaces demised.

The Tenant has been in occupation since 2006.

Additional 6 spaces licenced at £1,500 PA (£250 per space PA).

This function of the NHS has been present on Bocam Park since 2007 and expanded from 3,000 sq ft to their current suite in the subject building in 2017.

27,883

2,590.4

TOTAL ANNUAL INCOME

£323,118 £325,868

£11.59 PSF

4.40 YEARS 3.63 YEARS

(INCLUDING CAR PARKING LICENCES)

SERVICE CHARGE

TOTAL

VAT

TENANCY SCHEDULE

05 TENANCY

The current building service charge rate is £2.00 per sq ft.

These figures include the head landlords estates service charge contribution for the maintenance and grounds keeping of the external common areas.

We understand that the property is elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

06 COVENANT

COVENANT ANALYSIS

9.0%

6.7%

59.3%

25%

OF INCOME

OF INCOME

OF INCOME

OF INCOME

THE PUBLIC SERVICES OMBUDSMAN FOR WALES

DAVIES TURNER PLC (REG NO: 00062270)

MACMILLAN CANCER SUPPORT (REGISTERED CHARITY: 261017 AND COMPANY REG NO: 2400969)

SWANSEA BAY UNIVERSITY HEALTH BOARD

www.ombudsman.wales

www.daviesturner.com

www.macmillan.org.uk

www.sbuhb.nhs.wales

The Public Ombudsman for Wales is a government funded public entity with the legal powers to investigate complaints about public services, independent care providers and members of local government bodies in Wales. The Ombudsman is independent of all government bodies and provides a free public, independent service.

Established in 1870, Davies Turner PLC is one of the UK’s largest multimodal international freight forwarders and logistics organisations. Davies Turner provides services across all modes of logistics transport including air, sea, rail and road which are complemented by their 7 UK warehouse hubs.

Established in 1911, Macmillan Cancer Support has grown to become the UK’s largest source of cancer support at low or no cost, to include nursing staff and support centres. As of 2018, Macmillan provided personal support to over 1.9 million people, an increase of 300,000 on the previous year.

Over the same year, more than 6.7 million people accessed Macmillan’s information resources and online support.

The Swansea Bay University Health Board (SBUHB) is an arm of the National Health Service tasked with providing healthcare services in the Neath Port Talbot and Swansea areas.

The SBUHB covers an area with a population of approximately 400,000, employs 12,500 staff and has an annual budget of £1 billion.

Davies Turner PLC provide a 99% ‘Secure’ Fame Rating and as of March 2019 reported a turnover of £191.15 million, a pre-tax profit of £5.091 million and net tangible assets of £13.184 million. These figures demonstrate positive growth on the previous year whereby the company reported a turnover of £172.20 million, pre-tax profit of £4.595 million and net tangible assets of £12.67 million.

As of 2018, Macmillan received a total income of £235.7 million. £230.8 million of which is attributed to fundraised income whilst the remaining £4.9 million income was generated from investment sources.

Whilst SBUHB is the entity named on the lease, the accommodation at Building 1 Bocam Park is used to house an NHS team responsible for assessing the performances and maintaining high standards of care across all 7 NHS Welsh health boards and 3 NHS trusts operating across Wales.

INVESTMENT CONSIDERATIONS

07

INVESTMENT CONSIDERATIONS

/ The strategic location on Junction 35 means that Wales’ 3 cities, Cardiff, Newport and Swansea, are all accessible within a 30-minute drive time. / High quality office accommodation with increased subdivision flexibility to suit a range of occupier requirements through the presence of two stairwell cores. / Car parking provision is a key consideration of occupiers and the provision of 1 space per 223 sq ft occupied ensures the property provides a competitive offering. / Fully-let to 4 strong covenants. Of which, 84% of income is secured against Government grade covenants with the remainder against a PLC company in existence for 150 years and the UK’s largest cancer support charity, Macmillan. / Low average rent of £11.59 per sq ft is competitively attractive for offices strategically located immediately on the M4 motorway with genuine prospects for rental growth as demonstrated by the recent uplift agreed with the Public Ombudsman for Wales. / Remaining upcoming rent review creates an asset management opportunity to secure a reversion. / The Public Ombudsman for Wales, a Government-funded entity, provides a 4.94 year secure term certain and is attributable to 59.86% of the office income. / Overall WAULT of 4.40 years to lease expiries and 3.63 years with a strong occupational backdrop within the building. / The quoting price at a low £128 per sq ft is significantly below replacement cost levels. / Bocam Park represents the premier, most modern office accommodation in Bridgend and the wider region.

Consequentially, it is the destination of choice for occupiers.

FURTHER INFORMATION

08 CONTACT For further information or to arrange an inspection please contact:

GARETH LLOYD 029 2044 0141 07917 503 751 gareth.lloyd@knightfrank.com

ELLIOT EVANS 029 2044 0952 07468 727 941 elliot.evans@knightfrank.com

IMPORTANT NOTICE 1. Particulars: These particulars are not an offer or contract, nor part of one. Any information about price or value contained in the particulars is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. You should not rely on statements by Knight Frank 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 nor any joint agent has any authority to make any representations about the property. No responsibility or liability is or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness or reasonableness of the information, notice or documents made available to any interested party or its advisers in connection with the proposed transaction. All and any such responsibility and liability is expressly disclaimed.

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1. Regulations: 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.

1. VAT: The VAT position relating to the property may change without notice.

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Offers are invited in excess of £3,576,000 (Three Million, Five Hundred and Seventy-Six Thousand Pounds) reflecting an attractive Net Initial Yield of 8.5% (assuming standard purchaser’s costs of 7.20%) and a low Capital Value of £128 per sq ft.

Subject to Contract and Exclusive of VAT.

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Brochure – September 2020

Photography – August 2020

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