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MILLSHAW COURT

GLOBAL AVENUE | MILLSHAW LEEDS | LS11 8AN

FOR SALEPRIME SINGLE-LET OFFICE INVESTMENT LET TO BARCLAYS SERVICES LIMITED WITH PERMITTED DEVELOPMENT RIGHTS

FOR SALE PRIME SINGLE-LET OFFICE INVESTMENT LET TO BARCLAYS SERVICES LTD WITH PERMITTED DEVELOPMENT RIGHTS | 02

GLOBAL AVENUE | MILLSHAW

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MILLSHAW COURT

¡High Quality, Self-contained office building totalling approximately 81,043 ft² of accommodation with 355 car parking spaces.

¡Excellent location in close proximity to White Rose Office Park and within 3 miles of Junction 29 of the M62 motorway and 0.5 miles from junction 1 of the M621.

¡Single-let to Barclays Services Ltd at a current rent of £1,292,500 per annum.

¡Income secured to a 5A1 covenant on a reversionary lease terminating May 2022 with a tenant break in November 2021

¡In excess of 4 years to lease expiry and 3.5 years to break.

¡Redevelopment potential to residential permitted development upon lease expiry.

¡Approved permitted development for 142 apartments.¡Freehold ¡Quoting price of £12,100,000 (Twelve Million,

One Hundred Thousand Pounds) subject to contract and exclusive of VAT. This price represents an attractive Net Initial Yield of 10.01% assuming purchaser’s costs of 6.71% and a low capital value of only £149 psf.

INVESTMENT S U M M A R Y

LONDON

MANCHESTERLIVERPOOL

LEEDS

BRISTOL

SOUTHAMPTON

BIRMINGHAM

EDINBURGHGLASGOW

NEWCASTLE

M9

GLASGOW AIRPORT

EDINBURGHAIRPORT

NEWCASTLE AIRPORT

LEEDS BRADFORDAIRPORT

EAST MIDLANDSAIRPORT

BIRMINGHAMINTERNATIONAL

AIRPORT

LUTON AIRPORT

HEATHROWAIRPORT

GATWICK AIRPORT

STANSTED AIRPORT

COVENTRYAIRPORT

SWANSEA

MANCHESTERAIRPORT

CARDIFF AIRPORT

BRISTOL AIRPORT

CITY AIRPORT

M8

M77

M8

M74

A1(M)

M6

A1(M)

M55

M6

M62

M53

M60

M62

M18

M1

A1(M)

M180

M54

M6 M42

M11

A1(M)

M1M40

M5

M50

CARDIFF

M4

M4

M3

M27M5

EXETER

M25

M23 M20M2

DERBY


LOCATION

Leeds is the third largest city in the UK and the principal city of the Yorkshire and Humberside region. Government investment into the Northern Powerhouse will see the City’s partnership with Liverpool, Manchester, Newcastle and Sheffield transform Leeds into a truly global city.

LEEDS


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MILLSHAW COURT

Indicative purposes only

M621

A6110

M621J1 (M621) 0.5 miles



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E C O N O M Y Government investment in the northern powerhouse will speed the transformation of Leeds into a global city. Leeds’ partnership with Liverpool, Manchester, Newcastle and Sheffield is set to transform Northern connectivity and harness the economic potential of the North of England. Long term investment in HS2 and the northern hub mean faster and more reliable journeys linking a greater area of 15 million people with unparalleled transport facilities. In illustration of the economy size, Leeds is host to twenty FTSE 100 company HQ’s, in excess of 30 national and international banks and over 180 legal firms.

LEEDS

The City is widely recognised as the UK’s main financial and business services centre outside the City of London. This sector generates over £13 billion every year alongside its manufacturing industry which generates £7 billion. Leeds currently employs over 250,000 people with the city region having the largest workforce outside of London and is the fastest growing in the North of England. The working age population is set to increase by 26% between 2006 and 2031 demonstrating the high levels of growth expected. Over the last 20 years more jobs have been created in Leeds than any other UK city outside of London.

D I G I TA L E C O N O M YLeeds is at the forefront of the digital revolution and is already home to BT, EE, O2 and Cable and Wireless. The city also boasts the highest concentration of internet service and telecommunications providers in the UK. Leeds pioneered its own success with creation of its own superfast connectivity (IXLeeds) which attracted multi-national occupiers of Asda-Walmart,Telefonica and TomTom.



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MILLSHAW COURT

Second largest financial centre outside of London

employing 22,000 people

1.1% annual total Private Sector Office employment

growth (2018-2022)

UK’s firstregional financial tech accelerator

Home to – 709,000 companies

Financial employment of 1 in 4 people

5% of England’s total economic output

Population – 798,000

DEMOGRAPHICS/E M P L O Y M E N T

CONNECTIVITY

Leeds is centrally positioned in the UK with Millshaw Court located south of Leeds city centre fully serviced by road, rail and air:

A642

A6120

A6120

A6120

A61 A58

A61

A660A65

A647

A6120

A58

A658

A62A653

A6110

A647

A658

A650

A58

A64

LEEDS

ROTHWELL

HEADINGLEY

BEESTON

Roundhay

CHAPELALLERTON

MORLEY

HUNSLET

MIDDLETON

CITY CENTRE

A657

HORSFORTH

LEEDS BRADFORDAIRPORT

GARFORTH

A64

A656A63

A1

WAKEFIELD

DEWSBURY

A642

A654

CASTLEFORD

A655 A639

A6032

A63

KIPPAX

A639

A1

PONTEFRACT

A63

A644

A638

A653

A62

A644

A638

A643

A6117

A650

A643

A6107

A62

A650TINGLEY

A642A61

A642

NORMANTON

A655

A638

A61

A645 FEATHERSTONEA628 A639

A1

A645

HUDDERSFIELDA629

A642

A642

A629

A616

A635

A636

A635A629

A637

A61

DARTON

CRIGGLESTONE

ROYSTON

BARNSLEY

B6428

A61

A635A628

B6195

A628

SOUTH KIRKBY

HEMSWORTH

A638CROFTON

B6273A628 A638

UPTON

A638

BIRKENSHAW

CLECKHEATON

KEIGHLEY

HOLMFIRTH

ELLAND

BRIGHOUSE

BINGLEY

A650

A629

B6145

A629

A629

A58

A58

A646

HEBDONBRIDGE

A646

A629

A629

A640

A616

A6024

HALIFAX

BRADFORD

7

1

2

3

4

27

M621

46

44

43

47

44

M1

A1

43

28

42

A1

29 / 4230

31 3232a/41

33

5 6

41

40

39

38

M606

25

26

24

23

22



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Road Primary access to the property is via the A6110 which is a major arterial road serving west Leeds. This provides access to Junction 1 of the M621 which is 1 mile north of Millshaw Court. Junction 28 of the M62 is situated 2.6 miles south along the Millshaw and Dewsbury Road. Both the M621 and M62 provide connections to the M1 motorway and access to the wider region.

Rail Leeds City Station provides rail routes to national destinations with a direct rail service to the capital cities of London (Kings Cross) and Edinburgh with journey times of 2 hours and 10 minutes and 3 hours respectively.

Sea Humber Port is located 60 miles from Leeds directly connected by the M62. 23% of England’s cargo passes through this port benefiting the regions manufacturing base.

Buses Frequent public bus services shuttling from Millshaw, White Rose Shopping Centre and Office Park to the city centre.

Air Leeds Bradford International Airport is situated approximately 10.3 miles north of Millshaw Court providing international and domestic flights to over 65 locations and four daily flights to London. The airport currently caters for around 3.7 million passengers per annum (2016) which is forecast to expand to approximately 8 million passengers by 2026.

HS2 The planned high-speed rail link between Leeds, Manchester, Birmingham and London is expected early 2030’s. This will provide significantly improved transport and connectivity in the Northern Powerhouse with capacity to reduce journey times to London and Birmingham to 82 and 57 minutes.

bMILLSHAW COURT


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SITUATION Millshaw Court is prominently situated in the established commercial area of Millshaw approximately 3 miles South West of Leeds City Centre. The property benefits from excellent road infrastructure linking the property to the M62 and M1 via the A110 Leeds Outer Ring Road.

The immediate area is a hive of economic activity with White Rose Shopping Centre located 0.5 miles south anchored by Debenhams, Sainsburys, Next and Cineworld. More recently, the development of White Rose Office Park provides circa 425,000 sq ft of office space occupied by Inland Revenue, Capita and O2.

A6110

A6110

WHITE ROSE SHOPPING CENTRE

WHITE ROSE OFFICE PARK

J28 (M62) 2.5 miles

J1 (M621) 0.5 miles / J27 (M62) 3 miles

Indicative purposes onlyOwned by Barclays Services Ltd

MILLSHAW PARK INDUSTRIAL ESTATE



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SITE AREA & TENURE

The site extends to approximately 2.96 hectares (7.33 acres) and is held Freehold.

72.2m

Sub

El

Sta

38

30 to

36

Bungalow

14 to

20

22 to

28

1a

Bridge

Global Court

1

2

1b

49.4m

FB

GLOBAL AVENUE

MP 183.0

SM

Phoenix House

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432.

Getmapping plc 2018. Plotted Scale - 1:1605

ACCOMMODATION

Floor Area Sq Ft Area Sq M

Lower Ground 13,261 1,231.99

Ground 31,772 2,951.72

Ground Reception 1,371 127.37

First 34,639 3,218.07

Total 81,043 7,529.15

Indicative purposes only



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DESCRIPTION

The property comprises a part two/ part three storey office building configured in a quadrangle around a central courtyard. The property is constructed of steel frame with brick/block cavity infill panels and a pitched slate roof.

Internally, the offices have been refurbished in 2009 to provide a modern specification as follows:

¡Suspended Ceiling with integrated metallic ceiling tiles

¡LG3 Lighting

¡Double Glazed Windows

¡Air Conditioning throughout

¡WC’s on each floor

¡Fully raised access floors

¡Two x 13 passenger lifts

¡Canteen Facility

CAR PARKING

The property benefits from 355 surface car parking spaces which is equivalent to a beneficial out of town ratio of 1 space per 288 ft².

The tenant has an additional 190 car parking spaces on the neighbouring site which is under their ownership. This is not included within the title being marketed, shown on page 7.



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MILLSHAW COURT

TENANCY

The property is fully let to Barclays Services Ltd on a contractual rent of £1,292,500 pa with the lease expiring May 2019. A reversionary lease has been agreed with Barclays Services Limited at a rent of £1,292,500 per annum for a term expiring 11th May 2022. The reversionary lease contains a tenant only break option on the 12th November 2021. The tenant will receive the final 6 months of the term at half rent if the break is not exercised.

Assuming half rent on reception, the annual rent equates to £16.08 psf.

Existing Tenancy

Tenant Rent Lease Start Lease Expiry Break Option

Comments

Barclays Services Ltd

£1,292,500 10/11/1994 11/05/2019 - -

Reversionary Tenancy

Tenant Rent Lease Start Lease Expiry Break Option

Comments

Barclays Services Ltd

£1,292,500 12/05/2019 11/05/2022 12/11/2021 The tenant will receive a concessionary rent of £646,250 per annum for the final 6 months of the tenancy subject to the break notice not being served. This lease is outside the L&T Act 1954.

COVENANT STRENGTH

B A R C L AY S S E R V I C E S L I M I T E DConsidered a ‘Blue Chip’ covenant with a 5A1 Dunn & Bradstreet rating based on a tangible net worth of £450,355,000. This represents a minimum risk of business failure. Below outlines the pertinent financial information available:

Barclays Services Limited

2016 (000’s) 2015 (000’s) 2014 (000’s)

Turnover £4,135,504 £3,924,342 £3,843,984

Pre-Tax Profit £138,826 £92,163 £146,067

Tangible Net Worth £450,355 £222,442 £477,135



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REDEVELOPMENT POTENTIAL

Due to the configuration, location and site area of the property there is potential to redevelop the site and convert the existing offices to residential use and develop the car park.

A permitted approval notice has been granted by Leeds City Council on 22nd September 2017 for the permitted development under Application Number: 17/05216/DPD.

The existing building is capable of accommodating 142 flats should a developer wish to pursue permitted development. We highlight on Page 7 the adjacent site owned by Barclays and utilised for car parking. Subject to separate negotiation, this could provide additional value for a purchaser wishing to redevelop the site at a future point.

UPPER GROUND FLOOR LEVEL FIRST FLOOR LEVEL

LOWER GROUND FLOOR LEVEL



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Date Property Tenant Size Rent psf Term

April 2018 Optim, White Rose Office Park Perform Group 40,000 £21.50 15 years

March 2018 Lawnswood Business Park Equiniti 14,109 £15.50 10 years.

October 2017 Kirkstall Forge Zenith 18,000 £23.00 Co-terminus with existing lease.

September 2017 1 Sterling Way, Capitol Park Hermes Parcelnet 5,000 £17.50 10 years.

September 2017 Lawnswood Businesses Park GHD Livigunn 5,000 £16.50 5 years

February 2017 2150 Thorpe Park Bellway Homes 10,200 £17.00 10 years.

June 2017 Mayfield Business Park Ilkley Small Credit 18,179 £16.75 15 years Agreement for Lease.

March 2016 Kirkstall Forge Zenith 45,071 £23.00 15 years.

March 2016 Optim, White Rose Office Park The Gorse Academies Trust 10,000 £20.00 4 years.

LEEDS OCCUPATIONAL MARKET The Leeds office occupational market remained extremely robust in 2016 and 2017 with 2017 city centre office take-up exceeding 1 million sq ft. Leeds remains an attractive proposition for corporate occupiers with rent and business rates remaining competitive when compared to the cities of London, Birmingham and Manchester. Leeds is experiencing an increase in prime Grade A rents with the City Centre reaching £29.00 per sq ft and Out of Town achieving £23.00 per sq ft.

Leeds Out of Town office take-up continues to impress, with 2016’s take-up at 312,000 sq ft representing a 16% increase on 2015 and a further increase by 3.5% to 323,000 sq ft in 2017. 2018 has continued in the same manner with Q1 take-up at 123,252 ft².

We highlight the transactions which contributed to Leeds Out of Town Take-up:

* Internal images taken after working hours at the request of the tenant.



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Date Property NIA Tenant Term Certain Price Purchaser NIY CV

May 2018 2100 & 2200 Thorpe Park 58,656 Balfour Beatty, Daniels Chilled Foods and Age Partnership

4.3 years £12.0 m Private Investor 7.3% £204.58

Jan 2018 Renaissance House, Warrington

40,679 Independent Police Complaints Commission

25 years £10.85 m Private Investor 5.69% £266

Dec 2017 Blythe Valley Park, Solihull 92,984 Arup 6 years £23.54 m JHA Investments Ltd 7.23% £253

Dec 2017 Sonova House, Warrington 43,392 Sonova 10.5 years £11.42 m Trafford Borough Council 5.55% £300

April 2017 Trinity House, Kent 20,731 Kent Community Health NHS 12 years £5.85 m London Borough of Bromley 6.15% £282

Jan 2017 2180 Thorpe Park 25,204 Kier Construction 15 years £7.02 m Blythe Valley Park 5.54% £278

The regional office investment market is buoyant with strong fundamentals in the ‘Big 6’ regional centres. Supply of quality assets remains tight coupled with unprecedented rental growth. Significant investment transactions of Leeds and other Regional offices are outlined below:

INVESTMENT MARKET

FURTHER INFORMATION

For further information including access to the data room and viewing arrangements, please do not hesitate to contact one of the sole agents:-

DD: 0113 235 5209

© Crown Copyright 2018. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Disclaimer - JLL and Bulleys for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL and Bulleys has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law Copyright © Jones Lang LaSalle IP Inc May 2018. All rights reserved.

ANDREW SUMMERSGILL0113 235 [email protected]

MATHEW ATKINSON0113 261 [email protected]

ADDITIONAL INFORMATIONT E N U R E

Freehold

E P C

The building has an EPC rating of C:72.

V AT

A VAT option to tax has been made on the property and it is envisaged that the sale will be treated as a Transfer Of a Going Concern (TOGC) for VAT purposes.

P R O P O S A L

We are instructed to seek offers in excess of £12,100,000. A purchase at this level represents an attractive Net Initial Yield of 10.01% assuming purchasers costs of 6.71%.

The property is held in a SPV and the opportunity to acquire this entity is available.

MILLSHAW COURT

GLOBAL AVENUE | MILLSHAW LEEDS | LS11 8AN

RICHARD HINDS0113 235 [email protected]
mailto:[email protected]:[email protected]:[email protected]

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