British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL

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British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
British Airways UK Maintenance
and R&D Facility Investment
British Airways Avionics Engineering
Ely Meadow, Talbot Green, Llantrisant CF72 8XL
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Investment Considerations
                                                               w   Three simultaneous fully repairing & insuring leases        We are instructed to seek offers in
w   British Airways UK maintenance and research &
    development facility                                           expiring on 24th March 2024 (c.5.5 years unexpired)         excess of £8,300,000 (Eight Million
                                                               w   Initial rental is £987,000 per annum, which reduces to      Three Hundred Thousand Pounds),
w   Strategically located adjacent to Junction 34 of the
                                                                   £805,011 per annum on 25th March 2019, reflecting a         subject to contract and exclusive
    M4 Motorway and within the Cardiff Capital Region,
                                                                   low rent of £7.25 per sq ft                                 of VAT.
    one of the UK’s fastest growing commercial locations
w   Modern office campus providing three, two-storey           w   The landlord can request the benefit of the tenant’s
                                                                   extensive fit out at lease expiry                           A purchase at this level would equate
    buildings including VAV air-conditioning, raised floors,
                                                                                                                               to a reversionary yield of 9.00% and a
    passenger lifts, suspended ceilings and atria              w   Major occupiers in the vicinity include The Royal Mint,
                                                                   Welsh Blood Service, Renishaw, Finning CAT, Leekes,         net initial yield of 11.05% until March
w   111,087 sq ft facility on a site area of 20.67 acres
                                                                   and The Royal Glamorgan Hospital                            2019, subject to purchaser’s costs of
w   Let to British Airways Avionic Engineering Ltd (D&B                                                                        7.54% and reflects a low capital value
    3A1), who have been in occupation for 25 years and         w   Aerospace and defence are a cornerstone of the Welsh
                                                                   economy, with world class training, innovation and          of £74 per sq ft
    have recently signed a new reversionary leases
                                                                   expertise attracting some of the world’s leading aviation   SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
                                                                   and defence companies to locate within Wales
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
M11
                                                                                                                        M5                                                        CAMBRIDGE
Location - Cardiff Capital Region                                                                                                                                 A1 ( M)
                                                                                                                  M50        CHELTENHAM
The British Airways facility is located within the Cardiff Capital
Region, one of the UK’s fastest growing commercial locations,                                         GLOUCESTER                              M40            M1
centred on Cardiff, the capital city of Wales. The Cardiff Capital
Region is a highly compact area, with a 1.6m population within
a 45 minute commute to Cardiff City Centre which is the focal
                                                                                                                                   OXFORD                              M25
business, commercial, economic, government and administrative
                                                                                                            M4
centre for Wales.                                                                                                                                                 LONDON
                                                                         SWANSEA
                                                                                                                                                M4
                                                                                                  CARDIFF               BRISTOL
Key drivers of the region’s success include:                                                                             Bristol                          Heathrow
                                                                                                                                                                                                 M2
          Quality of Life – Cardiff is ranked the UK’s number 1                               Cardiff                                           M3                                      M20
          city for quality of life. It is the closest European capital                                                  BATH                                       M23
                                                                                           International                                                                                              DOVER
          city to London and the work/life balance offered                                    Airport
          across the region is exceptional. The region has a very
                                                                                                      M5
          low cost of living being some 20% less than the UK                                                                                    SOUTHAMPTON
          national average while comparable salary costs are                                                                        M27
          approximately 40% lower than in the city of London.                                                                                                          BRIGHTON
                                                                                                                              BOURNEMOUTH
          Fast Growing – Cardiff’s population is projected to
                                                                                       EXETER
          grow by 20% over the next 20 years, faster than any
          other UK city including London. Growth has already
          been 12% over the last 10 years.

          Low Occupational Costs – Occupancy costs in the
          Cardiff Capital Region are up to 60% lower than prime
          sites in central London offering potentially huge annual
          savings on occupancy costs.
                                                                          Connectivity
          Transport Infrastructure – Fast developing transport
          networks enhance Cardiff’s position as the closest              The Cardiff Capital Region has outstanding road, rail and air communications. British Airways UK maintenance and research &
          European capital city to London.                                development facility is situated on juction 34 of the M4 motorway, and lies approximately 236 km (147 miles) from London in
                                                                          the east. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK
          World Class Retail and Leisure – The region has                 population lives within a 4-hour drive of the Cardiff Capital Region.
          outstanding retail, leisure and sporting facilities together
          with striking landscapes and coastline, much of which
                                                                          Distance by Road:                                                     National Rail Times:
          has National Park status. These elements combine to
          offer exceptional life style and leisure opportunities          London                              236 km         147 miles          London                                             2 hours
          across the region.
                                                                          Bristol                              69 km          43 miles          Bristol                                        50 minutes
          Highly Skilled Workforce – The Cardiff Capital Region           Birmingham                          182 km         113 miles          Reading                                 1 hour 35 minutes
          contains extensive Higher Education facilities with more        Swansea                              67 km          41 miles          Birmingham                              1 hour 59 minutes
          than 70,000 students studying at Cardiff University
          (ranked in the top 5 universities in the UK in terms of         Newport                              24 km          15 miles          Manchester                             3 hours 10 minutes
          the quality and impact of its research), The University
          of South Wales and Cardiff Metropolitan University.             High speed rail services give rapid access to all major cities        Electrification of the railway between London Paddington
          Significant numbers of students choose to remain in             across the UK. The extensive Valley Line Network serves the           and Cardiff Central is set to be completed in Q4 2018
          the region after graduating, providing an ever increasing       inland towns of south east Wales, from where a significant            reducing best travel times to 1 hour 45 minutes.
          skilled and highly qualified work force.                        proportion of the city’s work force is drawn. The delivery of an
                                                                          integrated Metro system has been allocated up to £730m from           The Cardiff Capital Region has its own international airport
          Inward Investment – The Cardiff Capital Region City             the Cardiff Capital Region Deal. The project may include the          located 19.2 km (12 miles) from the city at Rhoose. The
          Deal will see a £1.2 billion investment fund established,       introduction of a light rail system to Cardiff alongside delivery     airport serves many national and European destinations.
          with the target of delivering 25,000 new jobs and               of a major upgrade to the existing rail network around Cardiff.
          leveraging £4 billion of private sector investment. This        A contract was awarded to an Keolis Amey in 2018.                     London’s Heathrow airport is less than a two hour drive or
          investment is set to fund a number of major projects
                                                                                                                                                rail journey.
          including a new light rail Metro system for the region.
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Llantrisant
                                                                                                                                                                                                                                                                                                                   Business Park
Situation                                                                                                                                                                                                                            Forest View
                                                                                                                                                                                                                                                                            Royal Mint
                                                                                                                                                                                                                                     Business Park
Llantrisant is a key commuter town to Cardiff and is one of the growth locations within the Cardiff
Capital Region. It is located 12 miles from Cardiff City Centre and 159 miles west of London.                                                                                                                                           CAT

                                                                                                                                                                                                                                                                          Edwards
Cardiff Airport is located approximately 28 km (17 miles) to the south and Bristol Airport circa
                                                                                                                                                                                                                                                                        Business Park
92 km (57 miles) east providing daily flights to both domestic and international destinations.

The facility is well located on the A4119 dual carriageway, neighbouring Llantrisant Business
Park and having the benefit of proximity to Junction 34 of the M4 motorway and direct
access to the city of Cardiff.                                                                                                                                                                                                                                  H
                                                                                                                                                                                                                                                               Royal
                                                                                                                                                                                                                                                            Glamorgan
                                                                                                                                                                                                                                                             Hospital
The Welsh Blood Service and Royal Glamorgan Hospital are directly adjacent to the site and
other adjacent occupiers include Premier Inn (which is being extended) and a Brewers Fayre,

                                                                                                                                                                                                                                                                                  Ely Valle
plus a new Costa Coffee Drive-Thru which is under construction. Renishaw Plc occupy a major
facility of around 460,000 sq ft which is located at Junction 34 of the M4 and a number of                                                                                                                                                                 Welsh Blood
                                                                                                                                                                                                                                                             Service
other occupiers have established a presence in this location including Fillcare and Leekes HQ.

                                                                                                                                                                                                                                                                                            y
                                                                                                                                                                                                                                                                      Magden

                                                                                                                                                                                                                                                                                      Road
                                                                                                                                                                                                                                                                       Park
                                                                                                                                                                                                                                                                                                                    LLANTRISANT
To the south of the site towards the M4 is a significant retail offering including a Tesco Extra
superstore and retail park that is occupied by national retailers, such as M&S, Argos, Next,                                                                                                                                                                           Premier
                                                                                                                                                                                                                                                                         Inn
Boots, TK Maxx and Pizza Hut.
       A4
            0              Sennybridge
                           Sennybridg
                                                                                      70
                                                                                  A4

                                                                                                                                                                                                                                                                                                           B4595
                                                                                                                          BLACK
                                                  A             Brecon
                                                                Bre                                                                                                                                                M5
                                                                                                                 A479

                                                                                                                        MOUNTAINS
                                                      42
                                                        15                                           A4                                                                       Ross-on
                                                                                                                                                                              Ross
                                                                                                                                                                              Ross-on-Wye
                                                                                                                                                                               os on
                                                                                                          0
                                                                                                                                                                                                                                                                                            Talbot Green         CROSS INN
                                                                                                                                              65

                BRECON BEACONS                                                                                                                                                                                                                                                               Retail Park
                                                                                                                                                                                    A4
                                                                                                                                          A4

                                                                                                                                                                                     66

                 NATIONAL PARK                                                                                                                                                                   0
                                                                                                                                                                                              A4                                                                                                  Tesco Extra
                                                                                                                               65
                                                                 A4

                                                                                                                             A4                                                                                                                A473
                                                                                                                                                              Monmouth
                                                                     70

                                                           59                                                                                                                                                                                                           TALBOT GREEN                       Glamorgan
                               A4                 A4
                                                     0                                                                                  Aberg
                                                                                                                                        Abergavenny
                                                                                                                                           rgaven                                                                                                                                                          Vale Retail
                                                                                                                                                                                                                                                                                                                                                A473
                                                                                                                                                             A4
                                 22
                                    1                      Merthyr
                                                              t yr
                                                              th                                                                                                  0
                                                                                                                                                                                                                                                                                                              Park
                          Glyn-
                            y                              Ty l
                                                           T
                          N th
                          Neath                                                                                                                                             Raglan                                                         Coedcae                                    A473
                                                                  65
                                                                                                                        A4

                                                                A4                                                                                                                                                                       Lane Industrial                              Talbot Green town centre
                                                                                                                                                              49
                                                                                                           A4

                                                                                                                                                                                                                    8
                                                                                                                         67

                                                                                                                                                                                          A4

                                      Hirwaun
                                         wa                                                                                                                                                                    A4
                                                                                                                                            2

                                                                                                                                                             A4
                                                                                                              04

                                                                                                                                          04

                                                                                                                                                                                                                                             Estate                                   proposed development.
                                                                                                                                                                                              66

                      5
                                                                                                                 6

                                                                                                                                         A4

                   46                                                                                                                          Pontypool
                                                                                                                                                   ypool
                                                                                                                                                      o
                                           A4

                                                                                                                                                                                                                                                                                                                • 460 new houses
                                                                                      A4

                 A                                                     A4
                                                                           05
                                            061

                                                                                                                             A467
                                                                                      70

                                                                             9                                                                                     Usk                                                                                                                                          • Retail, leisure &
                                                                                                          A469

                N
                Nea
                Neath
                                                                                                                                                                                                                               M
                                                                                                                                                                                                                                5
                                                                                                                                                                                                        RN

                                                                                                                                                                                                                                                                                                                  commerial
           SWANSEA                                                                                                                                                   Chepstow
                                                                                                                                                                                                       VE

                                                                                                                                                                                                                                14                                                                                development
      42                                                             A40                                                                                                                  22
                                                                          58
                                                                                                                                                                                                     SE

                                                                                                                                                                             A48
                                                                                  Pontypridd
                                                                                   on     d                                                   26
                                                                                                                                                   M4
                                                                                                                                                                  M4                          M4
                                                                                                                                                                                                   8    21
           41
                41                                                                                                                A46          8
                                                                                                                                                         4
                                                                                                                                                        24
                                                                                                                                                                       23                                                                                                                                                                       MWYNDY
                                                                                                 Caer
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                                                                                                   errphilly
                                                                                                        il                           8   27 A4
   Port
                                                                      A4

                 400                                                                   A4                                                                                            M4
                                                                                                                                                        N
                                                                                                                                                        NEWPO
                                                                                                                                                           PORT
                                                                                           70
                                                                          119

   Talbott         39
                      8
                     38                    Llantrisant
                                                   antt                                                                             29
                                                                                                                                          8
                                                                                                                                         28                                                                        20
                                                                                                                                                                                                                   1
                                                                                                                                                                                                                   15
                                                                                                                                                                                                                     0
                                                                                                                                                                                                                                                                                                                                      A4119
                                                                                                                        30
                                                                                                                         0                                                                                    1
                                                                                                                                                                                                              16
                                                                                                                                                                                              9

                                                                                                                                                                                                                                                 PONTYCLUN                                                                                             Leekes
                                                                                                                                                                                          M4

                          37
                                      36
                                                       35
                                                                                                     32
                                                                                                                 A48
                                                                                                                   8
                                                                                                                                                                       Avonmouth
                                                                                                                                                                              th
                                                                                                                                                                               h                       1
                                                                                                                                                                                                       17
                                                                                                                                                                                                                          19                                                                                                                             HQ
                                                                                 34     33                                                    BRISTOL
                                                                                             A4

                                                                 M4                                                                                                                       1
                                                                                                                                                                                          18
                                                                                                                                              CHANNEL
                                    Brid end
                                    Bridgend
                                                                                                23

                                                                                                                                                                                    19                                                                              A4222
                                                                                                 2

                                                                       A48                                                                                                                                           32
                                                                                                                                                                              BR TOL
                                                                                                                                                                              BRIST
                                                                                                                                                                                  T
                                                                                                                                                                                                                   M
                                                                                                                        CARDIFF
                                                                                                                                                                                                                                                                                                                                                                 A4119
                                                                                                                                                                       5
                                                                                                                                                                       M
                                                                                                0
                                                                                             05

                                                                                                                                                                        0
                                                                                                                                                                       20
                                                                                                                                                                                                             A3

                                                                                                                                                                                                                               A4
                                                                                            A4

                                                                                                                    Penarth
                                                                                                                                                                                                             7

                                                                                                                                                                                           8
                                                                 Airport                                                                                                       70        A3                                                                                                                              MISKIN
                                                                                                  Barry
                                                                                                  Ba  y                                                                      A3
                                                                                                                                                                                                                                          M4
                                                                                                                                                             21

                                                                                                    Weston-Super-Mare
                                                                                                      ston-Super-Mare
                                                                                                                 Mare                                                                                                                                                                                                                         Miskin Manor
                                                                                                                                                                                                                                                                                                                                                 Hotel &
                                                                                                                                                                                                                                                                                                                                               Health Club
                                                                                                                                                        5
                                                                                                                                                        M

                                                                                                                                                                                                                                                                                                                                                       J34
   Ely Meadow, Talbot Green, Llantrisant CF72 8XL
                                                                                                                                                                                                                                                                                                                      Vale Resort Golf,                         M4
                                                                                                                                                                                                                                                                                                                     Spa & Leisure Hotel
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Description                                                                                               Accommodation
The facility comprises a complex of three buildings with associated car parking and additional            The property has been measured in accordance with the RICS Code of Measuring Practice (6th
land suitable for future expansion. The buildings were constructed in 1993 and are of steel frame         Edition) and provides the following approximate gross internal floor areas:
construction with insulated, coated steel cladding and double glazed curtain walling. Each building
is constructed in two wings over two storeys, linked by a central core area and has its own services
making it capable of independent and multi occupation.                                                     Building         Floor                     Sq M             Sq Ft            Sq M             Sq Ft
                                                                                                                            Ground                    1,833           19,730
The specification of the buildings includes:                                                               A                                                                            3,498            37,653
                                                                                                                            First                     1,665            17,923
                                                                                                                            Ground                     1,877          20,199
w    Fully accessible raised carpeted floors                                                               B                                                                             3,321          35,748
                                                                                                                            First                     1,445           15,549
w    Suspended ceilings incorporating Cat II anti glare lighting                                                            Ground                    1,832            19,714
                                                                                                           C                                                                             3,501          37,686
w    Air Conditioning                                                                                                       First                     1,670            17,972

w    Modern WC facilities                                                                                  Total                                                                     10,320           111,087
w    Double height reception/atria

w    One lift within each building
                                                                                                          For the purposes of the lease, the floor areas have been agreed at 3,438 sq m (37,012 sq ft) for each
w    Restaurant facility in Building C                                                                    of Buildings A, B and C, which provides a total area of 10,315 sq m (111,036 sq ft).

The buildings were constructed to shell & core specification with all services connected and with the
benefit of lifts, WC accommodation and boilers. The tenant subsequently undertook fit out works at
a cost of approximately £5 million. Importantly, at the expiry of the leases the landlord can request
which fit out works they wish for the tenant to leave in situ and those they wish them to remove.
These works include the installation of:

w    Raised floors

w    Suspended ceilings

w    Water storage heaters and pipe work

w    Air-conditioning and chillers

w    Ventilation system

w    Compressed air facility

w    Fire and security alarm instillation

w    Construction of single storey glazed link walkways between buildings

w    Security gatehouse and barrier controls

The site is bounded entirely by a 3.6 m (12 ft) high wire mesh fence and there is security gate access.

Parking                                                                                                                                                                                          Typical floor plan
                                                                                                                                                                                                 - not to scale
The property includes an extensive 299 space car park which provides a ratio of 1:372 sq ft.
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Site                                                Tenancies
The property extends to                             The property is held on four co-terminus leases expiring on 24th
approximately 8.36 hectares (20.67                  March 2024 at a current rent of £987,000 per annum. The tenant
acres) as edged in red the Ordnance                 has signed reversionary leases effective from 25th March 2019, at
Survey extract.                                     which point the rent will reduce to £805,011 per annum. There is
                                                    a nine month rent free period upon the commencement of the
                                                    reversionary leases, which will be topped up by the vendor.
Tenure
                                                    The leases are currently held under the name of ‘British Airways
The property is held on a long                      Avionic Engineering Ltd’ by way of an assignment from ‘British
leasehold basis for a term of 999                   Airways Plc’ in 1996.
years from 30th July 2004 at a
ground rent of £100 per annum                       British Airways use the facility to provide its UK’s one-stop solution
without review.                                     for the repair and maintenance of a broad range of electrical,
                                                    electronic and electro-mechanical aircraft components, employing
                                                    some 250 people.
Claw Back Provision
                                                    British Airways also undertake repairs and maintenance for other
If the site or part of it is used or                airline operators from this facility including Airbus, Thales, Euro Air
occupied for residential uses then                  Transport, Thomson Airways, Air Europa, Air France, Aero Flot
the owner of the site is required to                and Honeywell.
pay 50% of the ‘Development Value’
to a previous owner of the site more
particularly detailed on the title.
The ‘Development Value’ is defined
as the difference in value between
the ‘Industrial Market Value’ and
the ‘Residential Market Value’ based
upon the actual ‘Residential Use’ of
the ‘Conveyed Land’. ‘Residential
Use’ means use or occupation for
residential purposes (other than
residential uses which are ancillary
or incidental to the industrial or
main use) or use for all or any of
the uses specified in Classes A1, A2,
A3, C1, C3, D1 and D2 of the Town
and Country Planning (Use Classes)
Order 1987.

Further details on this clawback
arrangement together with all other
title matters are detailed on the title
to the Property which is available
on request.
                                          OS Plan
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
British Airways Avionic Engineering Limited                                                                  British Airways Engineering in Wales
British Airways Avionic Engineering provide highly skilled and specialised aircraft electrical, electronic   British Airways Engineering is the aircraft maintenance subsidiary of British Airways which provides
and mechanical component maintenance services to both British Airways and other airlines. Their              support services to British Airways and other airlines. It is responsible for the entire BA Boeing 747-
South Wales maintenance facility at Llantrisant provides avionic solutions to electronical, electronic       400 fleet maintenance, cabin interior conversions and general ramp maintenance work for both
and mechanical components through the use of new diagnostics and reliable technologies                       their own fleet and other airlines.
for a range of Boeing and Airbus Aircrafts for multiple airline carriers including British Airways.
Examples of the type of services provided include in-flight technology, radio and radar and lighting.        British Airways Engineering’s UK bases have a strong Welsh focus, and are as follows:
The services provided at the facility supports the continuous improvement and product development
to enhance future aircraft capabilities.
                                                                                                             w    British Airways Engineering Headquarters – London Heathrow Airport

                                                                                                             w    British Airways Maintenance – London Gatwick Airport

                                                                                                             w    British Airways Maintenance – Cardiff International Airport, South Wales

                                                                                                             w    British Airways Maintenance – Glasgow Airport, Scotland
British Airways Avionic Engineering Limited have a Dun & Bradstreet rating of 3A1 and recent
financial results are as follows:                                                                            w    British Airways Avionics Engineering – Llantrisant, South Wales

                                                                                                             w    British Airways Interiors Engineering – Blackwood, South Wales
                                                 Fiscal                 Fiscal                  Fiscal
                                      Non consolidated       Non consolidated        Non consolidated        w    British Airways Distribution Centre – London Heathrow Airport
                                     31 December 2016       31 December 2015        31 December 2014
 Sales Turnover                              26,334,000              31,676,000             29,368,000
 Profit / (Loss) Before Taxes                  2,211,000              2,114,000               1,434,000      In order to facilitate their substantial presence in South Wales, British Airways has a unique
                                                                                                             partnership with the University of South Wales. This provides graduates on the University’s Aircraft
 Tangible Net Worth                          11,243,000              13,656,000              11,979,000
                                                                                                             Maintenance Engineering, Aeronautical Engineering and Mechanical Engineering degrees access to
                                                                                                             real BA aircrafts to improve their career prospects, and gives British Airways staff the opportunity to
                                                                                                             develop their skills at the University. 2015 saw the opening of the Aerospace Centre at the University
Further financial information can be found at www.britishairways.com.                                        by the partnership, demonstrating British Airway’s commitment to their engineering facilities in
                                                                                                             South Wales.

                                                                                                             EPC
                                                                                                             The property has been assessed with a D95 rating. Further information is available upon request.
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Aerospace Industry in Wales                                                                     Market Commentary
Aerospace and defence is a cornerstone of the Welsh economy as one of the four main             The Llantrisant and Talbot Green office market is centred upon Junction 34 of the M4 Motorway
industries making up the Welsh Government’s manufacturing sector strategy. The industry         and is an important out of town business location within the Cardiff Capital Region. The location
in Wales is thriving, and Wales provides world-class training, innovation and expertise, from   provides occupiers with easy access into Cardiff city centre to the east, to the significant population
university research to government and private sector projects.                                  living in the Rhondda Valley towns to the north, and to Swansea city centre to the west, all accessible
                                                                                                within a 30 minute drive time.
Over 160 aerospace and defence companies are based in Wales, employing over 20,000
people and producing a turnover of £5 billion per annum for the Welsh economy. Some of          The Llantrisant and Talbot Green area is one of the most significant public sector locations in Wales,
the world’s leading aviation and defence companies are now based in Wales, including BAE        with public sector bodies including The Royal Mint, Welsh Blood Service, Welsh Wound Innovation
Systems, British Airways, GE Aviation, General Dynamics, Raytheon, Zodiac Seats, Qioptiq and    Centre, Public Health Wales and Royal Glamorgan Hospital occupying over a 1 million square foot
Airbus (who employ over 6,500 people at its aircraft wing plant in North Wales).                of space within a mile of Junction 34 of the M4 Motorway. With occupiers such as the University
                                                                                                of South Wales campus in Pontypridd, Cardiff Airport to the south and the GE Aviation campus at
The aviation and defence focus in Wales is upon:                                                Nantgarw, making Llantrisant and Talbot Green a popular location for occupiers serving these public
                                                                                                sector industries.
Defence Operations – Wales is a cornerstone of UK defence operations through provision of
workforce skills and availability of secure sites and airspace                                  Furthermore, private sector occupiers including Arthur J Gallagher (who are currently expanding in
                                                                                                this location), NFU Mutual, Renishaw, Leekes, Fillcare, Edwards Coaches, Arthur Llewelyn Jenkins,
Aerospace Maintenance Repair and Overhaul (MRO) – Wales is a major centre for MRO,              Blakemore Logistics occupy over 2 million square foot of office and industrial space within a mile of
with 10% of the UK’s activity managed here                                                      Junction 34 of the M4 Motorway.

Remotely Piloted Aircraft Systems (RPAS) – segregated airspace for RPAS off the coast of        Prime office rents around Llantrisant and Talbot Green have been achieved at Magden Park, adjacent
West Wales was the first of its kind in the world to be established                             to the British Airways campus, where office rents have achieved £14.00 per sq ft.

Aerospace Academic Focus – Wales produces over 6,000 science and engineering graduates
a year, with the 8 Welsh universities having a wealth of aerospace focussed expertise.
                                                                                                Investment Comparables

                                                                                                                                                      Area       Term
                                                                                                 Property                        Tenant                                      Price       Yield       Date
                                                                                                                                                    (sq ft)    Certain
                                                                                                 GE Campus,
                                                                                                                                 GE                198,055      7 years   £14.80m        7.72%     Mar-18
                                                                                                 Longwood Drive, Cardiff
                                                                                                 British Airways Interiors
                                                                                                 Engineering Campus,             British Airways   100,000      5 years    £5.15m        7.83%      Apr-17
                                                                                                 Hawtin Park, Blackwood
                                                                                                 Airbus Campus,
                                                                                                 Celtic Springs Business Park,   Airbus            153,000      6 years   £26.00m        8.75%     Dec-15
                                                                                                 Newport

                                                                                                VAT
                                                                                                We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price.
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Proposal
We are instructed to seek offers in excess of
£8,300,000 (Eight Million Three Hundred
Thousand Pounds), subject to contract and
exclusive of VAT.

A purchase at this level would equate to a
reversionary yield of 9.00% and a net initial yield
of 11.05% until March 2019, subject to purchaser’s
costs of 7.54% and reflects a low capital value of
£74 per sq ft.
SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

Further Information

For further information
or to arrange a viewing,
please contact either:
                                                       Nick Allan                                               Andrew Gibson                                                               Nick Lawley                                        Graham Davies
                                                       Cushman & Wakefield                                      Cushman & Wakefield                                                         Cooke & Arkwright                                  Cooke & Arkwright
                                                       T: 0117 910 5282                                         T: 02920 262 246                                                            T: 02920 346 333                                   T: 02920 346 371
                                                       E: nick.allan@cushwake.com                               E: andrew.gibson@cushwake.com                                               E: nick.lawley@coark.com                           E: graham.davies@coark.com

Disclaimer
Important Notice: Cushman & Wakefield and Cooke & Arkwright gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property
but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be
deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were
taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in
the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6 Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a
statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an
opinion and not by way of statement of fact.

September 2018
British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
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