PROJECT CAROL SOLENT BUSINESS PARK · including a doctors’ practice, pharmacy, NHS dentist and a...

PROJECT CAROL SOLENT BUSINESS PARKF R E E H O L D O F F I C E I N V E S T M E N T O P P O R T U N I T Y

PROJECT CAROL, SOLENT BUSINESS PARK2

INVESTMENT SUMMARY

r StrategiclocationbetweenSouthamptonandPortsmouthbenefitingfromeasy access to the M27 and M3.

r 6detachedofficesonSolentBusinessPark.

r Theofficebuildingstotal57,778sqftofhighqualityaccommodationina landscaped setting.

r Multi-lettotenantsincludingBritishTelecommunicationsPLC,Shoosmiths ServicesLtd,MatchtechGroup(UK)LtdandCFBTEducationTrust.

r Matchtech(33%ofincome)haverecentlysigneda10yearleaseandare spendinginexcessof£1.3montheirbuilding.

r Numerousassetmanagementopportunities,includinglettingupthevacant space and regearing leases with existing tenants.

r Netincomeof£834,917.50perannum(£14.45psf).

r Averageweightedunexpiredleasetermof4.18yearstoleaseexpiriesand 2.37yearstobreaks.

r Offersaresoughtinexcessof£8,500,000 (Eight Million, Five Hundred Thousand Pounds)forthefreeholdinterests,reflectinganet initial yield of 9.21%assumingpurchaser’scostsof6.68%andalowcapitalvalueof£147 psf.

Strategic location between Southampton and Portsmouth benefiting from easy access to the M27 and M3

PROJECT CAROL, SOLENT BUSINESS PARK 3

M27

JCT 9

SOUTHAMPTON (10 MILES) SOUTHAMPTON AIRPORT (10 MILES) >

< PORTSMOUTH (10 MILES)

KEY 1. HSBC2. Regus3. Goodman4. Peach Technologies5. Specsavers6. Zurich7. Dominoes & Subway8. NATS9. Northrop Grumman10. Indra

1

23

45

6

7

8

9

10

SUBJECT PROPERTIES

PROJECT CAROL, SOLENT BUSINESS PARK4Path

Path

PARKWAY

Ramp

Ramp

ETL

SolentVillage

1480

1450

House

1600

1560

1570

El Sub Sta

El Sub Sta

1624 to

Yarm

outh H

ouse

Bembridge

11

1590

1550

El Sub Sta

1620

to 1

622

Forum One

El Sub Sta

Chemring House

1580

Solent Business Park

1643

1630

1650

1627

1631

Chestnut Rise

1645

1634

1642

1633

1632

1640

0m 25m 50m 75m

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. © Crown Copyright. All rights reserved. Licence Number LIG0074.

Units 1490, 1570, 1580 & 1590Solent Business ParkFareham, PO15 7AF

Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250


LOCATIONSolent Business Park is the South Coast’s principal business park. It is locatedequidistant between Southampton and Portsmouth, some 10 miles to the northwestandsoutheast respectively.ThePark liesadjacent toJunction9of theM27motorway,approximately80milessouthwestofLondonand20milessoutheastofWinchester.

The Southampton / Portsmouth conurbation is the main commercial centre in the SouthCoast,withanestimatedpopulationof2millionpeoplewithina45minutes’drive time.

Theareaisinternationallyrenownedforitsexpertiseinaerospace,defence,marine,automotive and business services.

The business park is served by two stations, Fareham station (5 miles) andSouthamptonAirportParkway(10miles)whichprovidesadirectservicetoLondonWaterloo,witharegularjourneytimeofapproximately1hour15minutes.Inaddition,SouthamptonInternationalAirportislocatedatJ5oftheM27.

Hampshire County Council will be undertaking a £20M improvement scheme towidenJunction9oftheM27aswellasParkwaySouthroundabout.Theschemewillreducecongestionandunlockeconomicdevelopment.

SITUATIONSolentBusinessParkisthelargestpremierofficeparkontheSouthCoastcovering49ha(130acres).ItisanestablishedofficelocationsituatedoffJunction9oftheM27inFareham.Theparkisamixedusedevelopmentcovering130acresandwasoriginallydevelopedbyArlingtonDevelopments,nowpartofGoodmanInternational.

Thereareover60companiesinoccupationonSolentBusinessPark,employingover5,000people.ThesecompaniesincludeNationalAirTrafficServices(NATS),ZurichInsurance,ITV,HSBC,Regus,SpecsaversandNorthropGrumman.TheParkbenefitsfromanumberofamenitiesincludingWhiteleyRetailVillagewithover50popularhighstreetretailersanchoredbyTesco.TheSolentCentreoffersretailandcateringfacilitiesincludingadoctors’practice,pharmacy,NHSdentistandaphysiotherapyclinic.The4*SolentHotelandSpaisalsosituatedwithinwalkingdistance.

Thebuildingsare situated towards the rear of SolentBusinessPark surroundingalandscapedfeature.

14

4

34

13

12

54

7

8

9

1011

12

5

4

3

1

2

12

PORTSMOUTH

SOUTHAMPTON

SOUTHAMPTONAIRPORT & PARKWAY

SOUTHAMPTONCENTRAL

FAREHAM

A34

A32

A3

A3

A27

A27

M27

M3

A3(M)

A27

A33

A35

GOSPORT

HAYLINGISLAND

PORTCHESTER

WICKHAM

WATERLOOVILLE

EASTLEIGH

BEAULIEU

HYTHE

FAWLEY

M27

T H E S O L E N T

PORTSMOUTH &SOUTHSEA

BOURNEMOUTH

BRISTOL

OXFORD

SOUTHAMPTON

L O N D O N

HEATHROW

GATWICK

SOUTHAMPTON

BRISTOL

CITY

LUTONGLOUCESTER

9

4

M3

M4

M1 A1(M)

M40

M11

M27

M20

M2

M5

A36

A34

A31A3

A24

A27

A23A22 A21

A303

A31

A36

A37

A4

A27

A3(M)

CHELTENHAM

CIRENCESTER

A10

A346

A419

A420

A44

A12

A2

READING

BRIGHTON

EASTBOURNE

ISLE OF WIGHT

E N G L I S H C H A N N E L

HASTING

DOVER

WORTHING

WOKING

GUILDFORD

WINCHESTER

MAIDSTONE CANTEBURY

SALISBURY

ANDOVER

NEWBURY

ROYALTUNBRIDGE

WELLS

WEYMOUTH

DORCHESTER

YEOVIL

BATH

SWINDON

AYLESBURY

CHELMSFORD

BISHOP’SSTORTFORD

BASINGSTOKE

FOLKESTONE

PORTSMOUTH

M25

M25

M25

M23

SOLENT

SOLENT


TENANCY SCHEDULE

Building Demise TenantArea NIA

(sq ft)Lease Start

Lease Break

Lease Expiry

Current Rent

Rent (psf)

Comment

1450 WholeMatchtech

Group (UK) Ltd17,751 12/03/2001 12/03/2022 11/03/2027 £275,140.50 £15.50

Currently undergoing an extensive refurbishment. Tenant signed a reversionary lease in 2016.

1490 Whole Vacant 5,581 - - - £78,134.00 £14.00 12 month rent, rates and service charge guarantee.

1550 Whole Shoosmiths Services Ltd 18,123 27/11/2003 - 25/12/2018 £262,845.00 £14.50

1570 Whole Vacant 5,091 - - - £71,274.00 £14.00 12 month rent, rates and service charge guarantee.

1580 Ground8 Wealth

Management Ltd2,894 04/01/2013 03/01/2018 03/01/2023 £21,324.00 £7.37 The tenant has served a break notice to end the

lease on the break date.1580 First CFBT Education Trust 3,299 19/12/2014 - 01/05/2019 £46,200.00 £14.00

1590 WholeBritish

Telecommunications PLC

5,039 26/11/2010 - 25/11/2020 £80,000.00 £15.87

The lease has recently been re-geared to remove a break option in 2018.The tenant has been granted a rent free period from 25/12/2017 to 23/06/2018.

Total 57,778 £834,917.50

TENURE

Freehold.

DEVELOPMENT RESTRICTIONS Thepropertiesaresubjecttostandardestatecovenantswhichregulatetheiruseandfuturedevelopmentbyreferencetodevelopmentstandards.


Demise Tenant Area NIA (sq ft)

Lease Start

Rent Review

Lease Break

Lease Expiry

CurrentRent (pa)

Rent (psf) Comment

WholeMatchtech Group (UK)

Ltd17,751 12/03/2001 12/09/2021 12/03/2022

11/03/2027 £275,140.50 £15.50

Currently undergoing an extensive refurbishment. Tenant signed a reversionary lease in 2016.

UNIT 1450 SOLENT BUSINESS PARK

Unit1450constructedin1995providesadetachedpurposebuiltofficebuildingarrangedoverthreefloorswith99carparkingspaces,reflectinganexcellentcarparkingratioof1:179sqft.

Thepropertyiscurrentlybeingextensivelyrefurbishedandfitoutatacostofover£1.3million.Oncecompletethespecificationwillinclude;

r NewVRFCasetteA/Csystemr NewelectricsincludingLEDlighting.r New carpetsr New teapointsr New datar Fullaccessraisedfloorsr MaleandfemaleWCsperfloorr Doubleglazingr 10-personlift

EPC–B45.



Lease Start

Lease Break

Lease Expiry ERV (pa) ERV (psf) Comment

Whole Vacant 5,581 25/06/17 - 24/06/18 £78,204 £14.0012 month rent, rates and service charge guarantee.


Unit1490providesanearly1990’sdetachedpurposebuiltofficebuildingarrangedovertwofloorswith29carparkingspaces,reflectinganexcellentcarparkingratioof1:192sqft.

Specification:

r Gasfiredcentralheatingandcomfort cooling r Category2lightingr Doubleglazing r Fullaccessraisedfloorsr MaleandfemaleWCsperfloorr DisabledWC

ThepropertyhasbeenmeasuredinaccordancewiththeRICSCodeofMeasuringPractice(SixthEdition)andprovidesthefollowingNetInternalAreas:

EPC–C69.

Floor Sq m Sq ft

First 261.27 2,812

Ground 246.43 2,653

Reception 10.76 116

Total 518.47 5,581



Lease Start

Lease Break

Lease Expiry

Current Rent (pa) Rent (psf) Comment

WholeShoosmiths Services Ltd

18,123 27/11/2003 - 25/12/2018 £262,845 £14.50


Unit1550constructedin1998providesadetachedpurposebuiltofficebuildingarrangedoverthreefloorswith90carparkingspaces,reflectinganexcellentcarparkingratioof1:201sqft.

Specification:

r Gasfiredcentralheatingandcomfortcoolingr Category2lighting-TBCr Doubleglazingr Fullaccessraisedfloorsr MaleandfemaleWCsperfloorr DisabledWCr 8-personlift


EPC–E106

Floor Sq m Sq ft

Second 575.72 6,197

First 557.13 5,997

Ground 516.26 5,557

Reception 34.56 372

Total 1,683.67 18,123



Lease Start

Lease Break

Lease Expiry ERV (pa) ERV (psf) Comment

Whole Vacant 5,091 - - - £71,274 £14.0012 month rent, rates and service charge guarantee.



Specification:

r Newcomfortcoolingsystemr Liftr Gasfiredcentralheatingr Doubleglazingr Fullaccessraisedfloors r Suspended ceilings r LG7lightingr MaleandfemaleWCsfacilities


EPC–C65.

Floor Sq m Sq ft

First 246.56 2,654

Ground 226.40 2,437

Total 473.96 5,091



Lease Start

Lease Break

Lease Expiry

Current Rent

Rent psf Comment

Ground8 Wealth

Management Limited

2,894 04/01/2013 03/01/2018 03/01/2023 £21,324 £7.37The tenant has served a break notice to end the lease on the break date.

FirstCFBT

Education Trust

3,299 19/12/2014 - 01/05/2019 £46,200 £14.00



Specification:

r Comfortcoolingandgasfiredcentral heatingr Category2lightingr Doubleglazingr Fullaccessraisedfloorsr MaleandfemaleWC’sperfloorr Generousreceptionlobby


EPC–E105.

Floor Sq m Sq ft

First 306.48 3,299

Ground 268.86 2,894

Total 575.34 6,193



Lease Start

Lease Break

Lease Expiry

Current Rent

Rent psf Comment

WholeBritish

Telecommunications PLC

4,816 26/11/2010 - 25/11/2020 £80,000 £15.87

The lease has recently been re-geared to remove a break option in 2018.The tenant has been granted a rent free period from 25/12/2017 to 23/06/2018.


Unit1590providesanearly1990’sdetachedpurposebuiltofficebuildingarrangedovertwofloorswith29carparkingspaces,equatingtoanexcellentcarparkingratioof1:166sqft.

Specification:

r Comfortcoolingandgasfiredcentral heatingr Category2lightingr Doubleglazingr Fullaccessraisedfloorsr MaleandfemaleWCsperfloorr Generousreceptionlobbyr DisabledWC


EPC–D93.

Floor Sq m Sq ft

First 233.85 2,517

Ground 213.55 2,299

Reception 20.70 223

Total 468.10 5,039


TENANT COVENANT INFORMATION

British Telecommunications Public Limited CompanyBritish Telecommunications Public Limited Company is one of the world’s leadingcommunications services companies. They provide fixed-line services, broadband,mobileandTVproductsandservicesaswellasnetworkedITservices.FollowingtheacquisitionofEE,theynowhave560EEbranchesintheUKalone.

BritishTelecommunicationsPublicLimitedCompanyhasaDun&Bradstreetratingof5A1representingaminimumriskofbusinessfailureandtheirlatestaccountsareshownbelow.

CFBT Education TrustEducationDevelopmentTrust(formerlyCFBTEducationTrust)isacharityregisteredinEnglandandWalesandincludesinternationalandUKtradingsubsidiaries.Thechangeinnamewaseffectedon1January2016.Establishedover40yearsago,theorganisationisfocusedonteachingandlearning.Thelargestsinglegroupofemployeesisteachers,mostlyinschools,othersinalternativesettings.

AlmostalloftheCharity’sincomeandthatofitssubsidiarycompaniesisderivedfromcontracts.TheCharityanditssubsidiariesarenotdependentontheservicesofunpaidvolunteersorondonationsinkind.

Matchtech Group LtdMatchtechisanengineeringrecruitmentspecialistwithover30years’experience.Theyprovide recruitment services across core engineering sectors including aerospace,automotive,energy,infrastructureandmaritime.

MatchtechGroupLimitedhasaDun&Bradstreetratingof5A1representingaminimumriskofbusinessfailureandtheirlatestaccountsareshownbelow.

Shoosmiths LLPShoosmiths is a national law firm acting for major companies and individuals in allUKjurisdictions.Shoosmithshaveanetworkof12offices,withthiernewest locationslaunched in December 2016 in Leeds and Belfast. Shoosmmiths LLP are the UK’sleadinglegaladviserbydealvolumein2016(and5thinEurope)-ExperianMarketIQ’sM&AReview.

Shoosmiths has a Dun & Bradstreet rating of 2A1 representing a minimum risk ofbusinessfailureandtheirlatestaccountsareshownbelow.

31/03/2016(£000’s)

31/03/2015(£000’s)

31/03/2014(£000’s)

Sales Turnover £19,042,000 £17,979,000 £18,287,000

Profit Before Tax £3,363,000 £2,867,000 £2,522,000

Tangible Net Worth £46,385,000 £39,298,000 £38,012,000

Net Current Assets £8,489,000 £7,515,000 £6,483,000

31/07/2016(£000’s)

31/07/2015(£000’s)

31/07/2014(£000’s)

Sales Turnover £314,311,000 £310,918,000 £299,987,000




31/07/2016(£000’s)

31/07/2015(£000’s)

31/07/2014(£000’s)

Sales Turnover £106,714,000 £102,660,000 £92,976,000




31/08/2016(£000’s)

31/08/2015(£000’s)

31/08/2014(£000’s)

Incoming Resources - £84,982,000 £125,179,000

Total Funds - £15,487,000 £14,920,000

Net Current Assets - £15,487,000 £14,920,000


SOUTH COAST OFFICE MARKET

AcontinuedreductioninsupplyofgoodqualityofficeaccommodationintheCityCentreofSouthamptonandPortsmouthhas led toan increase inactivity in theoutof townmarket, at the southern end of theM3 and along theM27motorway that runs fromSouthampton to Portsmouth.

Averageannualtakeuphasreached265,000sqftoverthepast10yearsandislikelytocontinueatthisrate.Thereisapproximately430,000sqftofofficespacecurrentlyavailable in theWesternM27market, half asmuch as 2011 and the lowest level ofsupplyonrecord.Thisequatestolessthantwoyearsofsupplyandindicatestheneedforthedevelopmentofnewofficespace.Withsuchlowlevelsofsupply,incentiveshavereducedsignificantlyandlongerleasetermsarebeingagreed.

ESTIMATED RENTAL VALUE

Somekeyrentalcomparablesareprovidedbelow:

PROPOSAL

Offers are sought in excess of£8,500,000 (Eight Million, Five Hundred Thousand Pounds) for the freehold interests, reflecting anet initial yield of 9.21% assuming purchaser’scostsof6.68%andalowcapitalvalueof£147psf.

INVESTMENT MARKET

RecentcomparabletransactionsinFareham;

Date Address Size Tenant Rent (psf) Term/Break

Q4 17 Part 2nd Flr, Solent Hse 2,613Provident Personal Credit Ltd.

£16.00 10/5

Q4 16 2nd Flr, 1650 Parkway 9,886 Slater & Gordon £11.50 5/3

Q3 16 2nd Flr, Forum 5 13,325 Peach Telecomm £17.25 10/5

Q2 16 1st Flr Solent House 5,867 8 Wealth Mgnt. £15.00 5

Q4 15 Forum 3 10,000 Innovation Group £16.00 10/5

Q4 15 1st Flr Solent House 5,857 8 Wealth Mgnt. £14.50 10

Q4 15 Spectrum 13,663 BMT Group £13.50 10

Q3 15 Spectrum 3,705 Cooper Homewood £10.50 10/5

Date Address Size Price Cap Val (£psf) NIY

Q3 16 1650 Parkway 29,591 £3.25M £110 9.17%

Q3 16 Forum 252,000 £43M £171 7.25%

Q2 16 Fusion 1, 2 and 3 157,000 £35M £223 7.15%

Q3 15 4000 Parkway 261,049 £67M £257 6.45%

Q3 15 4500 Parkway 56,387 £10M £177 7.43%

VAT

ThepropertiesareelectedforVATandthereforeVATwillbepayableonthepurchaseprice.Wewouldanticipate thesale tobedealtwithbywayofaTransferofaGoingConcern(TOGC).

Oliver PaineJLL+44 (0)117 930 [email protected]

Ross WigleyJLLTel: +44 (0)117 930 [email protected]

Oliver D’souzaBNP Paribas Real Estate UKTel: +44 (0)207 338 [email protected]

Louise WilliamsBNP Paribas Real Estate UKTel: +44 (0)207 338 [email protected]

MISREPRESENTATION ACT | COPYRIGHT | DISCLAIMERJLLandBNPParibasforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyare,givenoticethat:-a.theparticularsaresetoutasageneraloutlineonlyforguidanceanddonotconstitute,norconstitutepartof,anofferorcontract;b.alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsarebelievedtobecorrect,butanyintendingpurchasers,tenantsorthirdpartiesshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesthattheyarecorrectbyinspectionorotherwise;c.nopersonintheemploymentofJLLandBNPParibashasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtotheproperty;d.Anyimagesmaybecomputergenerated.Anyphotographsshowonlycertainpartsofthepropertyastheyappearedatthetimetheyweretaken.©October2017JonesLangLaSalleIP,IncandBNPParibas.Allrightsreserved.

FURTHER INFORMATION

Forfurtherinformationortoarrangeaninspectionpleasecontactthejointagents;

PROJECT CAROL SOLENT BUSINESS PARK · including a doctors’ practice, pharmacy, NHS dentist and a...

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