Multi Let Office Investment on South Wales Premier Business Park
Unit’s E, F, G, H and J, Copse Walk Junction 30, Cardiff Gate International Business Park, Cardiff CF23 8XJ
Executive Summary _ Multi let office investment _ Located on the leading Business Park in South Wales, Cardiff Gate International Business Park _
Let to the Royal College of Nursing, Insight Law LLP, Cornerstone Loans Ltd, European Scanning Centre (Harley Street) Ltd, Baldwins Group, Vinci and Henstaff Construction
_ Freehold _ 42,467 sq ft (3,945.31 sq m) _ Passing rent of £488,789.50 (£11.50 per sq ft) _ We are instructed to seek offers in excess of £5,000,000 (Five Million Pounds), _ This represents an attractive Net Initial Yield of 9.10%, after deducting standard purchaser’s costs of 7.37%. _ This reflects a low capital value of only £117.73 per sq ft
Location
Amenities
Cardiff is the capital city of Wales, with an estimated resident population of 346,000 (2011 Census). The city has grown to become Wales’s economic and political centre along with it being the home to the Welsh Government. Significant recent inward investment has enhanced the city’s business profile and it is now considered to be one of Europe’s premier capital cities and a national and international business location.
Toby Restaurant and Public House
Cardiff Gate Retail Park comprising Asda, B&Q and McDonalds. Starbucks, Burger King Waitrose and WH Smith
Ibis Hotel
Creche
Doctor surgeries
Located 44 miles west of Bristol and 150 miles west of London, Cardiff benefits from excellent transport links being approximately 4 miles south of the M4 motorway. Junctions 29–33 of the M4 provide direct access to the city centre.
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High speed rail services give rapid access to all major cities across the UK. Frequent services run to and from London Paddington, with an average journey time of 2 hours. Electrification of this line in 2017 will only improve journey times further to a reduced time of 1 hour and 45 minutes. Cardiff’s international airport is located 19.2 km (12 miles) from the city centre.
Cardiff Airport 12 miles
London Paddington 1 hour 45
Unit’s E, F, G, H and J, Copse Walk
e Av se ou
Bristol 44 miles
lth Ma
M4 to Swansea
Situation The property is situated on Copse Walk at Cardiff Gate Business Park, South Wales’ premier business park location. Occupiers already present on the estate include Coca Cola, International Baccalaureate Organisation, Royal College of Nursing, SWALEC, Mercedes, Audi and Redrow Homes.
M4 to Newport J30
On site facilities include an Ibis Hotel, crèche, Regus serviced office centre, a Welcome Break featuring Waitrose, Starbucks, WHSmith and Burger King, a Toby Carvery restaurant and pub. The adjacent Cardiff Gate Retail Park includes an ASDA, McDonalds, DFS, Natuzzi and B&Q. Lloyds Bank
Redrow Regus
Occupiers
SSE Audi
Mercedes Mitie
Description The sale comprises of 2 buildings Unit E and Units F,G,H and J. They were constructed in 2000 and are both of traditional brick construction.
Oak tree court
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Unit E is a separate detached Three storey building let to Vinci and Henstaff construction. Externally, there is car parking for up to 38 cars on site providing a ratio of 1:252 sq ft.
Unit E Rhymney house
Units F,G,H and J were designed as four units providing office accommodation capable of subdivision and maximum flexibility in order to be let on a floor by floor and wing by wing basis. Units H and J comprise of a three storey building with a central part glazed entrance core to the front with communal lift and staircase. Units F and G are directly adjacent and also have a shared central part glazed core, with Unit G Three storey and Unit F Two storey.
Copse walk
Unit F, G, H and J Prennau house
The offices provide high quality accommodation to include fully accessible raised floors, carpeting, suspended ceilings, recessed VDU compatible lighting, double glazing, gas fired heating, male, female & disabled WC’s and kitchen facilities. There are two passenger lifts within the property serving all floors. Externally, there is car parking for up to 123 vehicles on site providing a ratio of 1:267 sq ft. The buildings benefit from the following specification: _ Fully accessed Raised floors and suspended ceilings _ Gas Fired heating (Air con in part and tenant improvement) _ Double glazed powder coated windows _ Intercom entry system _ W/C’s on each floor _ Passenger Lift’s servicing all floors
Cardiff Gate International Business Park, Cardiff CF23 8XJ
N * For reference purposes only
Tenancy / Accommodation Schedule
Tenure
There is an Estate Service charge and building service charge in relation to Unit E, F and G. Further information can be provided on request.
Freehold
Copse Walk
Tenant
Floor Area
Lease started
Ending
Unexpired Lease Term
Unit F, Gd FI
Baldwins Holdings Ltd
2,533
20/09/19
19/09/24
4.50
Unit F, First FI
Cornerstone Loans Ltd
2,533
25/04/19
29/04/24
4
Unit G, Ground
European Scanning Centre (Harley Street) Ltd
2,520
31/08/16
30/08/31
11.5
Unit G, First
Vacant Assume 12 month rent / rates and SC guarantee
2,519
Unit G, Second
Insight Law LLP
3,297
Unit H &J
Royal College of Nursing of the United Kingdom
Total
19,464
03/12/16
01/06/16
31/10/22
01/06/26
32,866
Rent per annum
Rent Per Sq ft
£28,050.00
£11.07
9 spaces. Lease outside 1954 Ll and T Act.
29/04/22
£28,127.00
£11.10
Tenant granted 2 months rent free if they don’t action their break.
31/08/26
£30,000.00
£11.90
Fixed increases on 31/08/20 to £31k then OMV thereafter
1
£30,000.00
£11.91
2.7
£32,890.00
£9.98
5.75
Tenant
Floor Area
Ground
Vacant Assume 12 month rent / rates and SC guarantee
3,155
Part First
Vacant Assume 12 month rent / rates and SC guarantee
1,614
Part First
Henstaff Construction Ltd
1,604
02/12/19
01/12/29
9.75
2nd floor
Vinci Construction UK lTd
3,228
07/03/17
06/03/22
Total's * Areas provided by Vendor
9,601 42,467
01/06/21
4.88
Unit E
Total
Break Clause
Lease started
Ending
Unexpired Lease Term
£243,300.00
£12.50
Comments
Open market rent reviews. If the tenant were to action their break they would have to give a minimum of 6 months notice. There is no penalty for exercising their break, but if they don’t action the break they are granted an additional 10 months rent free at 50% rent from the 1st June 2021.
£392,367.00 Rent per annum
Rent Per Sq ft
1
£36,282.50
£11.50
1
£18,076.00
£11.20
U/o @ £11.20 psf, 3 months rent free
£17,644.00
£11.00
Break at 5th year. Outside the Act. An additional 6 months rent free if they don’t action. There is a tenant schedule of condition.
2.0
£24,420.00
£7.57
4.58
£96,422.50
Break Clause
02/12/24
£488,789.50
Comments
Covenant Baldwins //
European Scanning //
They are one of the UK’s fastest growing accountancy firms and now part of the Cogital Group. They aim to help both business and personal goals by offering national coverage on a variety of professional accounting and business advisory services, including up-to-the-minute technical and personal advice.
Formed in 2003, the European Scanning Centre has established its as an internationally renowned diagnostic imaging centre.
They advise all types of businesses, from sole traders to large national corporations and everything in between. They have a special affinity with entrepreneurs who lead their own businesses, our expertise ensures we have a national vision and corporate understanding of wider economic and accountancy issues. They choose to deliver our services at a regional level with the insight that only comes from being part of local business communities. Their reputation is built on consistently delivering the highest levels of service, tailored to a client’s exacting requirements and budget.
Their ethos is to provide the very best diagnostic imaging services for referring clinicians and patients. This is delivered by:
Baldwins Holdings Limited / Company number 06365189 Period Ending June 2018
Period Ending June 2017
Period Ending June 2016
Turnover
£4,139,468
n/a
n/a
Pre-Tax Profit
(-£4,540,411)
£2,295,613
(-£1,314,819)
Net Assets
£44,561,431
£49,101,842
£2,482,902
Baldwins Holdings Limited has a Dunn & Bradstreet Rating of 4A3 representing a “Higher than Average Risk” rating.
Royal College of Nursing // The Royal College of Nursing (RCN) is a membership organisation and trade union with over 432,000 members in the United Kingdom. It was founded in 1916, receiving its royal charter in 1928. Her Majesty Queen Elizabeth II is the patron. The majority of members are registered nurses; however student nurses and healthcare assistants are also members. They also have a reduced cost retired persons membership. The RCN describes its mission as representing nurses and nursing, promoting excellence in practice and shaping health policies. It has a network of stewards, safety representatives and union learning representatives as well as advice services for members. Services include a main library in London and regional libraries around the country. The RCN Institute also provides courses for nurses. Royal College of Nursing / Company number RC000459
The European Scanning Centre (ESC) has developed a reputation for providing a high quality and professional imaging service dedicated to the needs and comfort of both patients and medical practitioners. Building upon this success in London’s world famous Harley Street, the ESC has expanded to open a centre in Manchester, in partnership with St Joseph’s Hospital in Newport and recently opened a new centre in Cardiff.
• • • • • • •
Utilising truly world class imaging technology Recruitment of senior experienced radiographers to maximise the potential of the scanners and obtain the best possible image quality Reporting of the images by renowned consultant radiologists in their area of specialist expertise Quick and flexible appointments coupled with speedy reporting and production of reports Having a transparent and competitive pricing policy Providing a friendly and responsive service Investing in a 5* environment where the emphasis is on patient comfort and relaxation
European Scanning Centre (Cardiff) LLP / Company number OC414655 Period Ending March 2018
Period Ending March 2017
Period Ending March 2016
Turnover
£201,820
n/a
n/a
Pre-Tax Profit
£7,131
n/a
n/a
Net Assets
£431,732
n/a
n/a
European Scanning Centre (Cardiff) LLP has a Dunn & Bradstreet Rating of A2, representing a “Lower than Average Risk” rating.
Covenant Insight Law //
Vinci Construction //
Experienced solicitors specialising in property law. They offer bespoke conveyancing services covering all residential, commercial & buy to let transactions.
VINCI Construction UK is a specialist civil engineering, construction and facilities management company. Part of the global VINCI Group, they are known for the innovation, creativity and technological mastery with which they tackle the most complex of projects.
Insight Legal Services Limited / Company number 10801797 Period Ending June 2018 Turnover
n/a
Pre-Tax Profit
n/a
Net Assets
£87,597
Period Ending October 2017
Period Ending October 2016
They undertake new build and refurbishment schemes as well as long-term contracts to operate and maintain assets and facilities. Their clients include national government, local authorities, transport bodies, hospitals, universities, housing providers, retailers and commercial firms in every sector. VINCI Construction UK takes a collaborative, partnership approach to projects, building professional relationships based on mutual respect and trust. They operate a culture of teamwork, openness and support, in which everyone is encouraged to strive for excellence. Social value and sustainability are at the heart of everything they do, they are also able to draw on the expertise of other VINCI companies and subsidiaries around the world.
Insight Legal Services has a Dunn & Bradstreet Rating of N2, representing a “Lower than Average Risk” rating.
VINCI companies in the UK turn over around £2 billion per annum and employ circa 9,000 people. VINCI Construction UK is the largest British subsidiary of the French-based VINCI Group, which has a turnover of just under €40 billion and employs around 185,000 people in 100 countries around the world. Vinci Construction UK Limited / Company number 02295904
Henstaff Construction // Henstaff Construction was established in 1997, they apply experience to delivering quality buildings in a safe environment. Their aim is to keep ahead of regulatory changes and pro-actively problem solve to add value to our projects. We excel at projects with high technical content/M&E, and those projects where the building is required to remain operational throughout refurbishment. Henstaff was the fastest growing company in Wales in 2001 according to the Western Mail Fast Growth Fifty Wales. www.fastgrowth50.com. Maintaining this again in 2005, 2008 and 2018. Henstaff Construction Limited / Company number 03361493 Period Ending April 2018
Period Ending April 2017
Period Ending April 2016
Turnover
£5,638,518
£5,876,425
£5,345,919
Pre-Tax Profit
£216,975
£319,463
£402,432
Net Assets
£803,598
£711,418
£628,736
Henstaff Construction limited has a Dunn & Bradstreet Rating of 1A2, representing a “Lower than Average Risk” rating.
Period Ending June 2018
Period Ending December2017
Period Ending December 2016
Turnover
£867,039,000
£855,102,000
£931,666,000
Pre-Tax Profit
£10,192,000
£20,497,000
£2,849,000
Net Assets
£132,456,000
£120,806,000
£95,478,000
Vinci Construction UK Ltd has a Dunn & Bradstreet Rating of 5A2, representing a “Lower than Average Risk” rating.
EPC An EPC is available on request.
VAT The property is elected for VAT and the intention is that the transaction can be treated as a TOGC (Transfer of a Going Concern).
Proposal We are instructed to seek offers in excess of £5,000,000 (Five Million Pounds), which represents an attractive Net Initial Yield of 9.10%, after deducting standard purchaser’s costs of 7.37%.
Further Information Ross Griffin Director Savills Commercial 2 Kingsway Cardiff CF10 3FD Tel: 02920 368961 Email: rgriffin@savills.com Subject to contract and Exclusive of VAT
This reflects a low capital value of only ÂŁ117.73 per sq ft. Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, images and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Rents quoted in these particulars may be subject to VAT in addition.
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