MODERN HEADQUARTERS OFFICE INVESTMENT FOR SALE

UNITS 1 & 2 BARNWOOD PARK SAW MILLS END GLOUCESTER GL4 3DE

■ Established business park location close to junctions 11

and 11a of M5 at Gloucester

■ Modern headquarters style office buildings extending to

29,625 sq ft (2,752 sq m) with 156 car parking spaces at

a ratio of 1 space per 190 sq ft (17.64 sq m)

■ Two freehold titles incorporating a long leasehold

interest within part

■ Entirely let to Intercall Conferencing Services Limited

until September 2025 (Unit 2 Ground Floor & small car

park) and October 2025 (Unit 1 & Unit 2 First Floor) subject

to break clauses in October 2020 (on 12 months’ notice)

■ Intercall Conferencing Services Limited represent a Very

Low Risk of business failure

■ Combined rental income of £281,874 in Year 1 rising to

£294,730 in Year 2 and £307,587 in Years 3-5. This reflects

an average of £9.51 per sq ft rising to £10.38 per sq ft.

P A G E T W O O F F I C E I N V E S T M E N T

We are instructed to seek offers in excess of

£2,900,000 (two million nine hundred thousand

pounds) subject to contract and exclusive of VAT for

the freehold and long leasehold interests in the

property. A purchase at this level would reflect a

net initial yield of 9.19% rising to 10.02% in Year 3

assuming purchasers costs of 5.8%.

This reflects an attractive capital value

of £98 per sq ft.

INVESTMENT SUMMARY

LOCATIONGloucester sits to the west of the M5,

approximately 32 miles to the north of Bristol

and 45 miles south of Birmingham. Cheltenham

is located on the eastern side of the M5,

approximately 8 miles to the east. The city has a

population of 121,700 (2011 Census) and the key

employment sectors are public sector, finance

and business services, manufacturing, care and

distribution, retail and wholesale.

The city has excellent transport connections,

especially by road. The close proximity to

junctions 11 and 11A of the M5 give good access

to Bristol and the wider south west as well as

Birmingham and the north. Furthermore, the

A40 and A48 serve South and Mid Wales whilst

the A417 serves Cirencester and junction 15

of the M4, giving access to London and the

South East.

Gloucester Railway Station sits within the city

centre and gives access to a number of different

services. Various direct services are available

with approximate journey times of 50 minutes to

Birmingham, 1 hour to Cardiff, 1 hour to Bristol

and 2 hours to both London and Nottingham.

Gloucester has a small airport which offers

flights to Belfast, the Isle of Man and Jersey.

Bristol and Birmingham Airports are located

approximately 45 and 60 miles away respectively.

These airports can be accessed by road or public

transport from Gloucester in approximately

60 – 90 minutes and offer a wide array of

international destinations.

P A G E T H R E E O F F I C E I N V E S T M E N T

M5

11a

11A40

A40

A417

A417

A40

A417

A430

A4301

A417

BARNWOOD

HUCCLECOTE

INNSWORTH

LONGFORD

LONGLEVENS CHURCHDOWN

Gloucester Cathedral

Gloucestershire Royal Hospital

BARNWOOD RD

CORINIUM AVENUE

EAST

ERN

AVEN

UE

CHELTENHAM RD

HUCCLECOTE RD

A40

The Docks

ESTCOURT RD

UNITS 1&2BARNWOOD

SAW MILLS END

200m

N

Gloucester Station

GLOUCESTER

Gloucestershire Airport

UNIT 1&2BARNWOOD

GLOUCESTERCHELTENHAM

WORCESTER

ROSS ON WYE

BIRMINGHAM

BRISTOL

HEREFORD

SWINDON

M5

M5

M50

M4M5

M48

M40

M42

8

2

19

4A

M32

1111A

6

7

UNITS 1&2BARNWOOD

M5

M5

M50

TWEKESBURY

CHELTENHAM

GLOUCESTER

ROSS-ON-WYE

STAUNTON

HARDWICKE

STROUD

CINDERFORD

TREDINGTON

A40

A417

A417

A46

A417

A40

A48

A449

LEA

WESTBURY-ON-SEVERN

Rive r Severn

8

2

4

9

10

11A

11

13

12

SITEGloucestershire Airport

UNITS 1&2BARNWOOD

SITUATIONThe subject property is situated

approximately 2 miles east of the

city centre and 2 miles west of

junction 11A of the M5.

The subject property is situated

just north of Eastern Avenue, an

established business location with a

variety of retailers and wholesalers

including Halfords, PC World,

MAGNET and The Range. The

property is located in an area known

as Barnwood which is also an

established business location in its

own right. Notable occupiers such

P A G E F O U R O F F I C E I N V E S T M E N T

SAW MILLS END

BARNWOOD RD

GROV

E CR

ESCE

NT

CORINIUM AVENUE

Hotel ibis Gloucester

Gloucester Coroners Office

Longlevens AFC

Western PowerDistribution

BP Petrol Filling Station and M&S Simply Food

New Newlands Homes

Develoment

Storage King

N

as EDF Energy, Barclays Data

Centre PLC and Lloyds Bank

Commercial Finance are located

within close proximity to the subject

property. A new Ibis Hotel sits

immediately to the west and services

such as Marks & Spencer Simply

Food are located within easy

walking distance.

A new residential development by

Newland Homes has recently been

built immediately to the south west

of the property comprising detached

2/3 storey dwellings.

Western PowwDistribution

The property also benefits from 128 car

parking spaces positioned around the

building. A further 28 car parking spaces

are provided within a dedicated car park to

the south of the property. This provides 156

spaces in total at an attractive ratio of 1

space per 190 sq ft (17.64 sq m).

The property sits on 1.96 acres (0.79

hectares) being the land edged red and

hatched yellow.

P A G E F I V E O F F I C E I N V E S T M E N T

SAW

MIL

LS E

ND

Unit 2

Unit 1

To CoriniumAvenue

N

Additional Parking

ACCOMMODATION

The property provides the following approximate Net Internal Floor Areas measured in accordance

with the RICS Code of Measuring Practice:-

Unit Floor Sq Ft Sq M

1 Ground 9,054 841

First 8,309 772

17,362 1,613

2 Ground 7,719 717

First 4,543 422

12,263 1,139

TOTAL 29,625 2,752

For indicative purposes only

DESCRIPTION

Units 1 and 2 Barnwood Park are both two storey office

buildings of steel frame construction with brick elevations

and pitched tiled roofs. The properties are linked by way of a

two-storey brick corridor at ground and first floor level.

The properties provide well-specified, open plan (in the main),

flexible floor space with solid floors, perimeter trunking,

suspended ceilings incorporating LG7 compliant lighting and

an HVAC comfort cooling and heating system.

ENERGY EFFICIENCY

The properties have an Energy Performance Rating of D81.

A copy of the Energy Performance Certificates and

Recommendation Reports are available on request.

P A G E S I X O F F I C E I N V E S T M E N T

MALE WC

FEM

ALE

WC

CORR

IDOR

WC

MALE WC

FEMALE WC

LOBBY

MALE WC

FEMALE WC

CORR

IDOR

MALE WC ROOM 1

FEMALE WC ROOM 1

GROUND FLOOR

FIRST FLOOR

Unit 2

Unit 1 Unit 2

Unit 1

For indicative purposes only

P A G E S E V E N O F F I C E I N V E S T M E N T

WESTERN POWER

EDF ENERGY

KOHLER

LLOYDSBANKINGGROUP

BOOKER

TSB SAINSBURYS ROLLSROYCE

SAPA

TENURE

Freehold (edged red) incorporating two long leasehold

interests and part of separate freehold title (edged

green).

The Freehold interest in Units 1 and 2 is shown edged

red on the plan on page 4. Within that title, the ground

floor of Unit 2 is let on a long leasehold basis to

Peregrine Gloucester Ltd (shown edged blue on the plan)

and a substation is let to Western Power

Distribution (shaded pink on the plan).

The freehold interest in that part of Saw Mills End and

the separate car park (hatched yellow) is shown edged

green on the plan and also forms part of the sale.

Unit NIA Lease Start Lease End Break Rent Rent Review Notes

1 & 2 (First Floor) 21,905 sq ft 26.10.2015 25.10.2025 26.10.2020 5th Anniversary Subject to a 3 monthEdged red on the plan (1,842 sq m) (12 months notice) Upwards Only rent free period. Linked to RPI

2 (Ground Floor) 7,719 sq ft 23.09.2015 30.09.2025 01.10.2020 5th Anniversary Subject to a 3 monthEdged blue on the plan (717 sq m) (12 months notice) Upwards Only rent free period. Linked to RPI Car Park (Hatched yellow 23.09.2015 30.09.2025 01.10.2020 £10,000 5th Anniversary Subject to a 3 month on the plan) (12 months notice) Upwards Only rent free period. Linked to RPI

Combined 29,625 sq ft (2,752 sq m)

Year 1: £190,394 (£8.69 per sq ft)Year 2: £199,370(£9.10 per sq ft)Years 3-5: £208,347(£9.51 per sq ft)

Year 1: £81,480(£10.56 per sq ft)Year 2: £85,360(£11.06 per sq ft)Years 3-5: £89,240(£11.56 per sq ft)

Year 1: £281,874(£9.51 per sq ft)Year 2: £294,730(£9.95 per sq ft)Years 3-5: £307,587(£10.38 per sq ft)

SERVICE CHARGE

The Landlord is

responsible for the

repair and maintenance

of the structure and

common parts, with

recovery of those costs

through the service

charge.

The service charge is

currently running at

£1.56 per sq ft per

annum.

Unit 2 (Ground Floor) is sub-let on

effective full repairing and insuring terms

for 10 years from 23 September 2015.

The additional car park (hatched yellow)

is also let on co-terminus terms to Unit 2

(Ground Floor).

The electricity substation shaded pink

on the plan is let to Western Power

Distribution for a term of 99 years from

7 January 1997.

The terms for each occupational lease are

more specifically set out in the table:-

TENANCIES

Unit 2 (Ground Floor) is let on an

effective full repairing and insuring long

lease of 999 years from 1st November

2003 to Peregrine Gloucester Limited.

This long leasehold interest forms part

of the sale.

The whole property is either let or

sub-let and occupied in its entirety to

Intercall Conferencing Services Ltd.

Unit 1 and Unit 2 (First Floor) are let on

effective full repairing and insuring

terms for 10 years from 26 October 2015.

P A G E E I G H T O F F I C E I N V E S T M E N T

P A G E N I N E O F F I C E I N V E S T M E N T

VAT

The property is elected for VAT and,

as such, VAT will be payable on

the purchase price although it is

anticipated that the transaction will

be undertaken as a Transfer of a

Going Concern.

FURTHER INFORMATION

Further information is available via a dataroom

on request to include:

■ Title Registers & Plans

■ Service Charge information

■ Copies of the leases

■ EPC Certificates

■ Floor Plans

Gloucester Docks area

Gloucester Docks area

Intercall Conferencing Year Ending Year Ending Year EndingServices Ltd 31/12/2014 31/12/2013 31/12/2012(Reg No 02775270)

Turnover £161,701,000 £164,247,000 £138,942,000

Pre-tax Profit / (Loss) £41,586,000 £49,874,000 £44,997,000

Shareholders’ Funds £17,769,000 £45,508,000 £26,872,000

TENANT COVENANT INFORMATION

Intercall Conferencing Services, founded in the early 1990’s, is

the largest conference and collaborations service provider and a

leading provider of global cloud-based unified communications

services. A subsidiary of West Corporation, which is a world leader

in technology-enabled business communications, Intercall is

headquartered in the US with operations around the world. They

employ in excess of 1,000 global account executives, account

managers and sales engineers and over 1,900 operators and

customer service representatives worldwide. Further information

can be found at www.intercalleurope.com.

Units 1 & 2 Barnwood Park are Intercall’s new European

Headquarters from where they currently employ 531.

Key Financial Information for

Intercall Conferencing Services Limited:-

Intercall Conferencing Services Limited have a ‘First Report Risk

Indicator’ of 87 representing ‘Very Low Risk’ and a D&B Rating of 3A1.

Recent nearby lettings include:-

Unit B, Brighouse Court, Barnett Way,

Barnwood Park, Gloucester

In October 2015 Amec Foster Wheeler

Group Ltd took 6,288 sq ft over two floors on a

10-year lease at a rent of £11.50 per sq ft.

John Deere House, Barnett Way, Barnwood

Park, Gloucester

In July 2015, John Deere Bank (SA) took 5,268

sq ft across three floors on a 10-year lease at a

rent of £11.39 per sq ft.

Building 1 – Olympus Park Business Centre,

Quedgeley, Gloucester

In August 2015 an undisclosed tenant took

7,544 sq ft of ground and first floor office space

on a 5-year lease at a rent of £12.00 per sq ft.

MARKET COMMENTARY

The majority of office based occupational

activity has been concentrated on or

around Barnwood Park on the eastern

edge of Gloucester in recent times. While

the city centre tends to attract local

professional services companies, the

business parks (mainly concentrated

on the eastern edge of the city, closest to

the M5 motorway) have tended to attract

larger national or international occupiers

for the location of their regional or local

offices.

Average rental levels on the edge of

Gloucester have improved in line with

stronger occupational demand and

diminishing supply. ERV’s for buildings of

a similar nature to Units 1 & 2 are around

£10.50 – £11.50 per sq ft.

FOR FURTHER INFORMATION

PLEASE CONTACT

Rob Championr.champion@hallscommercial.co.uk

T 01905 728 434

Subject to Contract Halls (and its subsidiaries and their joint agents where applicable) for themselves and for the vendors or lessors of this property for whom they act, give notice that: (i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract. (ii) Halls cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective

purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. (iii) no employee of Halls (and its subsidiaries and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. (iv) rents quoted in these particulars may be subject to VAT in addition. (v) Halls (and its subsidiaries where applicable) will not be liable, in negligence or otherwise, for any loss arising from the use of these

particulars. (vi) the reference to any plant, machinery, equipment, services, fixture or fittings at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements. November 2015.

PROPOSAL

We are instructed to seek offers in excess of

£2,900,000 (two million nine hundred thousand pounds) subject to contract and exclusive of VAT for

the freehold and long leasehold interests in the

property. A purchase at this level would reflect a

net initial yield of 9.19% rising to 10.02% in Year 3

assuming purchasers costs of 5.8%.

This reflects an attractive capital value

of £98 per sq ft.

Richard Tomlinsonr.tomlinson@hallscommercial.co.uk

T 01905 728 432