ROYAL MAIL ADMIRAL HOUSEdocs.novaloca.com/26_8924_635754139681690000.pdf · 2015-08-17 · Royal...
Transcript of ROYAL MAIL ADMIRAL HOUSEdocs.novaloca.com/26_8924_635754139681690000.pdf · 2015-08-17 · Royal...
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
FOR SALE
Blue Chip Office Investment Located on Premier Regional Business Park
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
INVESTMENT SUMMARY
• Prominently located on the established Doxford International Business Park, Sunderland’s premier commercial estate
• High quality office accommodation benefitting from significant tenant’s improvements, providing 36,350 sq ft over three floors with high parking ratio of 1 space to 300 sq ft
• Superb transport connections to the A19 and wider region, with 11 bus routes serving the estate
• Fully let on FRI terms to the Royal Mail Group Ltd for 10 years from 16th November 2012, with a tenant’s break option on 15th November 2017
• Low rent passing of £390,000 per annum, equating to £10.73 per sq ft
• Excellent value-add potential through re-negotiating tenant’s break option and extending term certain
• Offers sought at £4.1M (Four Million, One Hundred Thousand pounds) reflecting a net initial yield of 9.00% after standard purchaser’s costs of 5.8%
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
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MORPETH
CHESTER-LE-STREET
ASHINGTON
SOUTH SHIELDS
Port of Tyne
Teesport
A66
A66
A68
A688
A688
A690
A690
A684
A66
A689
A689
A696
A181
A68
A68
A69
A171
A69
A167
A1(M)
A1(M)
A1(M)A19
A19
A19
A19
GATESHEAD
HEXHAM
HARTLEPOOL
SEAHAM
TYNEMOUTH
SCOTCH CORNER
NEWCASTLEUPON TYNE
MIDDLESBROUGH
DURHAM
DARLINGTON
NewcastleAirport
Durham Tees Valley Airport
SUNDERLAND
Em
pero
r Way
Admiral W
ay
B1286 CityWay
Arriva
EDF
Barclays
Barclays
Regus
RSA
RSA
Parseq
NorthernRock
SunderlandUni
SUNDERLAND
DURHAM
MIDDLESBROUGH
NEWCASTLE
Gentoo
UK AssetResolution
UK AssetResolution
Gentoo
Mo
narch
Way
A19
A19
A690
A690
ROYAL MAILADMIRALHOUSE
Doxford International is the premier business park in the City
of Sunderland region, located at the junction of the A19 and
A690 on the south western fringe of Sunderland city centre.
The estate provides circa 1.35M sq ft of high specification
office space constructed in the mid to late 1990s, on a site of
approximately 34 hectares (85 acres). Doxford boasts a strong
roster of corporate occupiers, including Barclays Plc, More
Than, EDF Energy, Sunderland City Council, Arriva plc, Parseq
and the Gentoo Group.
The estate benefits from excellent road communications, being
situated at the junction of the A19 and A690, with the B1286
running along the northern edge of the site. Doxford is also
served by a total of 11 bus routes, connecting the park directly
to Sunderland, Newcastle Upon Tyne, Durham, Hartlepool and
the wider Wearside region. International communications are
provided by Newcastle and Teesside International Airports,
both located within 30 minutes’ drive time.
LOCATION
London
EnglandWales
Scotland
LiverpoolManchester
Leeds
Edinburgh
Carlisle
Glasgow
BristolCardiff
Birmingham
Nottingham
NewcastleSunderland
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
DOXFORD INTERNATIONAL BUSINESS PARK
ROYAL MAIL ADMIRAL HOUSE
REGIONAL ECONOMY & NEWCASTLE CITY CENTRE
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
The subject property is located near to the entrance to Doxford International Business Park at the junction of Emporer Way and Admiral Way, providing highly visible frontage onto one of the main circulation routes through the estate.
Asking rents across Doxford are benchmarked at between £10.50 and £13.50 per sq ft dependent on the quality and quantum of space on offer.
SITUATION
EDF
RSA
RSA
PARSEQ
A19
B1286
ARRIVA
GENTOO
REGUS
BARCLAYS
BARCLAYS
NORTHERN ROCK
UNIVERSITY OF SUNDERLAND
UK ASSET RESOLUTIONS
GENTOO TRANSCO
Cit
yWay
Ad
mira
l Way
Emperor Way
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
ROYAL MAILADMIRAL HOUSEDoxford International Business Park
A66
A66
A68
A688
A688
A690
A690
A684
A66
A689
A689
A696
A181
A68
A68
A69
A171
A69
A167
A1(M)
A1(M)
A1(M)
A19
A19
A19
GATESHEAD
MORPETH
HEXHAM
CHESTER-LE-STREET
ASHINGTON
HARTLEPOOL
SEAHAM
SOUTH SHIELDS
TYNEMOUTH
SCOTCH CORNER
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NEWCASTLEUPON TYNE
SUNDERLAND
MIDDLESBROUGH
DURHAM
DARLINGTON
NewcastleAirport
Port of Seaham
Port of Tyne
Durham Tees Valley Airport
Teesport
A19
The North East economy has performed strongly within
the last 3 years with per capita GVA growing in average of
2.7% p.a. This figure exceeds both London and England as a
whole (NELEP).
Sunderland is one of the major commercial centres in
the north east region with a population of 174,286 (2011
Census). The main industries in Sunderland include
light manufacturing, call centre / service sector and the
automotive industry with Nissan being one of the region’s
major employers (12,000). Other significant employers
include Johnson Controls, TFW Systems and Unipres Ltd.
Sunderland is also a thriving University city with a student
population of 18,000 and strong partnerships with major
companies including IBM, Intel, BT, Procter and Gamble and
Glaxo Smith Kline whilst Pfizer has funded research projects
at Sunderland for over ten years. Sunderland University
boasts leading facilities including a £12 million flagship
sports facility, 200 seat cinema and new £8.5 million
science complex. The city centre is currently experiencing
a renaissance with new road alignment and public realm
schemes currently underway at a costs of £13.4M, designed
to create a ‘city gateway’ and enhance visibility.
The New Wear Crossing, a £118M new bridge development
which will cross the river between Castletown and Pallion
is also currently under construction, due for completion in
Spring 2018. This state of the art bridge, which is taller than
Big Ben, will enhance traffic flows across the River Wear
and increase road capacity through the immediate region.
REGIONAL ECONOMY 60 minute journey time
DOXFORD INTERNATIONAL BUSINESS PARK
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
The subject property comprises a modern, purpose built, high-
specification office building, constructed in the mid-1990s. Split
over three levels, this detached unit is of steel frame construction,
with cavity brickwork and glazed elevations, surmounted by a
pitched profiled metal clad roof.
Internally, the building provides modern office accommodation
arranged around a central core, with kitchen and welfare facilities
on each floor, accessed via an impressive full height atrium to the
eastern elevation.
The unit features 120 car parking spaces at a ratio of 1:303 sq ft
Key considerations include:
• Royal Mail have been in occupation since September 1997, incurring significant capital expenditure on the building over this time including over £1M on enhancing the air conditioning system alone
• Admiral House is the largest of Royal Mail’s four main contact centres, with others located in Plymouth, Dearne Valley and Stoke
• The subject property provides the main network server for all contact centres and Royal Mail customer services nationally, providing full connectivity for the National and International Business Accounts, Track & Trace, Postcode Allocation, Customer Accounts and ‘Something For You’ service lines. As such, the building benefits from an enhanced specification including a back up generator and failsafe cooling system within the server areas
• The unit employs 350 staff taking up to 10,000 calls and responding to circa 1,500 emails per day, 7 days a week
• Over the Christmas period, the property operates on a 24 hours per day basis, being one of only two Royal Mail buildings capable of supporting the ‘MDEK’ address recognition system
• Admiral House was awarded the Royal Mail contact centre of
the year 2014 / 2015
DESCRIPTION
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
VOID
VOID
TOILETS
CORE
CORE
14.99m
CORE26
.21m 14
.98m
29.96m
Floor Use sq m sq ft
Atrium / Basement Ancillary 98.1 1,056
Ground Offices 1,098.5 11,824
First Offices 1,089.6 11,728
Second Offices 1,090.9 11,742
Totals 3,377.1 36,350
ACCOMMODATIONThe property has a total NIA of 36,350 sq ft
(3,377.1 sq m) as detailed below:-
TYPICAL FLOOR PLAN
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
TENURE The property is held on a 999 year lease less 3 days from 4th
April 1996, at a peppercorn rent.
TENANCYThe property is fully let to Royal Mail Group Limited for a term of
10 years from 16th November 2012, at a passing rent of £390,000
per annum.
The lease provides for a tenant’s break option on 15th November
2017 on 6 months’ notice. Should the tenant not activate the
break option a rent free period of 9 months will be granted.
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
Royal Mail Group are the sole provider of the universal postal service in the UK, delivering to more than 29 million addresses across the UK six days a week and employing around 150,000 permanent postal workers.
Royal Mail Group Limited, which operates the Royal Mail and Parcelforce Worldwide brands, are wholly owned by Royal Mail Group PLC, which was successfully floated on the London Stock Exchange in October 2013. Today the Royal Mail Group PLC has a market capitalisation of £5.27Bn.
We have detailed key financial information for the company in the table below:
COVENANT
Year End Turnover PTP Shareholder’s Funds
30/03/2014 £7.78Bn £1.52Bn £2.13Bn
31/03/2013 £7.76Bn £520.00M £1.24Bn
25/03/2012 £7.17Bn £239.00M -£2.93Bn
Royal Mail Group Limited have a Creditsafe rating of 90 (Very Low Risk)
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW
The North East occupational market is experiencing a resurgence
as corporate occupiers in particular seek quality, inexpensive
space with low labour costs and a large local employment pool.
Improving take up combined with a lack of pipeline supply has
caused rents across the North East to improve and landlords
to reduce incentive levels. Historically the rental tone of Doxford
Park peaked at £12.25 per sq ft, with one exceptional deal agreed
on a design and build property for Nike at £14.50 per sq ft.
The current letting to Royal Mail Group within the subject
property is therefore agreed at a low base with excellent
opportunity for rental growth.
We have detailed comparable lettings from the region in the
table below:
OCCUPATIONAL MARKET
Building Tenant Size Rent Date
Rainton House, Rainton Bridge Npower 217,339 sq ft£12.00 per sq ft
(Sale & Leaseback)Q2 2015
Alexander House, Rainton Bridge Johnston Press 9,019 sq ft £13.00 per sq ft Q1 2015
Cobalt 9B, North Tyneside Siemens 40,000 sq ft £15.75 per sq ft Q4 2014
Quorum Q3, North Tyneside Cofely Workplace 26,996 sq ft £14.95 per sq ft Q2 2014
1 Victory Way, Doxford Parseq 32,104 sq ft £10.25 per sq ft Q2 2014
Cobalt 22, North Tyneside Utilitywise 77,890 sq ft £16.25 per sq ft Q2 2014
For further information or to arrange an inspection please contact the following:
Luke SymondsDirect Dial: 0191 269 0095Email: [email protected]
Simon Beanland Direct Dial: 0191 269 0512Email: [email protected]
GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.
Designed & produced by www.creativestreakdesign.co.uk Ref-820
gva.co.uk/8924
ASSET MANAGEMENTRoyal Mail Group Limited have shown commitment to the
building through continual investment and refurbishment
of the space, committing significant capital expenditure
since their occupation in September 1997.
The investment presents the opportunity to enhance
value through removing the tenant’s break option on 16th
November 2017 and agreeing a term extension.
EPC EPCs available on request.
VATThe property has been elected for VAT and it is envisaged
that the transaction will be treated as a ToGC.
PROPOSALOffers are sought of £4.1M (Four Million, One Hundred
Thousand pounds) exclusive of VAT reflecting a net initial
yield of 9.00% after deduction of standard purchaser’s
costs of 5.8%