LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER - PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS - Cushman & Wakefield
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LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS
INVESTMENT
SUMMARY
• High quality, well specified business
park office investment.
• Cheadle Royal is the North West’s
premier Business Park.
• Striking, highly prominent modern
Headquarters’ building totalling
40,049 sq ft (3,721 sq m).
• Excellent car parking ratio
of 1:225 sq ft.
• Long leasehold for 215 years from
29 September 1995, at a peppercorn.
• Let to Balfour Beatty Group Limited
with guarantee from Nike Inc.
• Effective minimum of 4.25 years
guaranteed income.
• Initial rent of £800,161.63 per annum
reflecting just £20.14 per sq ft.
• Annual fixed uplifts of 2.5% per annum.
We are instructed to seek offers in
the region of £9,750,000 subject to
contract. This reflects a net initial yield
of 7.69% and a capital value of
£243 per sq ft.
LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER
Oakfield 3
Oakfield 2
Anglian
Water Group
Wienerberger
De Vere Venues Byrom
John Lewis Oakfield 1
Management
Centre
Sainsbury’s
David Lloyd Racquet Lakeside 5000
& Fitness Centre
Premier Inn
Brewer’s Fayre
Petrol Service TGI Friday’s
Station Regus
Jarden
Kuoni Corporation
Agilent
Technologies
Blemain Group
To Wilmslow
& Alderley Edge Wilm Trinity
s low Pharmaceuticals
/Ha Kids Allowed
n dfo
rth
By-
Pa ss -
A3
4
To Manchester
J3 M60 0.5 mile
CHEADLE ROYAL
BUSINESS PARK
6
DIDSBURY
30
29 9 Blackburn Rawtenstall Halifax
28
Leyland
8 Darwen
Todmorden
5 VILLAGE TO MANCHESTER
23
CITY CENTRE
M62
34
Chorley Rochdale
M6 1 22
Y A5103
YA
M61 Bury M66 21
WIL
27 Bolton 2
20
WA
6 3 19
MS
LO
PARKWA
5
WR
Wigan 4
M60 OAD B5145
GS
4 5 3
15
17 Oldham
M60
KIN
25 14
TO STOCKPORT
24
23 Manchester EAST
PRINCESS
M62 Salford 1 3
DIDSBURY
22
9
11
6
Glossop
M60 2
Warrington Sale
9 Stockport NORTHENDEN
7
AD A560
5
CHEADLE ALTRINCHAM RO
Widnes 20
M56 7
6 4 1
3
Runcorn MANCHESTER
11 10
Wilmslow
3 2
M56
SOU
12 19
GATLEY 0
Knutsford A56
THM
14
Northwich Buxton 560
A A56
O
Macclesfield 0
OR
FLO
M6
ROA
BROWNL
ATS
18
D
OAR CHEADLE
STY
D
AL RO
EY ROAD
M56
CHEADLE ROYAL
A34
BUSINESS PARK
AD
KI
WYTHENSHAWE
B5
N
G
4
166
SW
Cheadle Royal is the North West’s SIMO
AY
premier out of town business park NS
W
situated within the prosperous AY
CHEADLE
commuter belt of South Manchester. ROYAL
SIM
ON BUSINESS
It comprises over 600,000 sq ft of office, leisure and SW
amenity space, in approximately 70 acres of mature
5 AY PARK
D
parkland, close to the village of Cheadle and fronting
R OA
the A34. It is within the borough of Stockport, the
SS
third most populated borough in Greater Manchester,
MO
TO HALE/
SHADOW
with approximately 11,000 businesses and more than ALTRINCHAM HEALD
two million people within a 30 minute drive time. GREEN
RING
WAY
Originally developed by AMEC, Cheadle Royal ROAD
B5166
WEST
provides a very attractive working environment and
is home to major international occupiers including;
M56 MANCHESTER
AIRPORT TO WILMSLOW/
H OL
Blemain Finance, Wienerberger, Jarden Group, Regus ALDERLEY EDGE
and Freeclaim. It has unparalleled on-site amenities MANCHESTER MA
LIN LA E
including David Lloyd Leisure, TGI Fridays restaurant, AIRPORT
NC
De Vere Venues conference centre, Premier Inn
HE
hotel and ‘Kids Allowed’ children’s day nursery and is TE ROAD
N
S
RA INK
adjacent to Sainsbury’s and John Lewis. IRPOR TERNL
T EAS
A5103 INWARD INVESTMENT &
INFRASTRUCTURE IMPROVEMENTS
M60
5
Airport City UHSM Medipark
TO MANCHESTER
CITY CENTRE h
Airport City is 3 miles from Cheadle Royal and being The Manchester MediPark brings together c.200 acres of
Metrolink created through phased delivery over the next 15 years developable land, in and around UHSM, next to Airport
and upon completion, will provide up to: City. MediPark is a gateway from the Airport to a pool of
A560
M60 ‘talent’ which has few rivals, and comprises a 7 mile long
3/1
2
• 1.4m sq ft logistics & industrial corridor from Manchester’s University quarter to UHSM,
3a • 1m sq ft offices which hosts the highest concentration of higher education
TO STOCKPORT g • 650,000 sq ft advanced manufacturing and specialist institutes in Europe.
M67 & EAST
UHSM Metrolink • Circa 2,400 hotel beds
M56
MEDIPARK • 100,000 sq ft ancillary retail HS2
Manchester’s Airport City will become an international This will extend high speed lines to Manchester with two
4
destination in its own right. The scheme is being proposed stations at Manchester Airport and Manchester
Simonsway CHEADLE ROYAL
BUSINESS PARK
developed by its joint venture partners: Piccadilly, served by a spur off the main line.
5
On completion the fastest journey times to London Euston
HS2 AIRPORT
HEALD
GREEN are anticipated to reduce by 60 minutes, to 1 hour 8
CITY NORTH
minutes.
Manchester
6 Airport M56 Manchester Airport Link Road Metrolink (Manchester Airport Line)
M56 MANCHESTER
AIRPORT
INTERNATIONAL Construction of the A6 to Manchester Airport Relief Road The Airport Line opened in November 2014. The nine mile
CITY SOUTH
AIRPORT A34 Scheme is underway and expected to complete by Q3 2017. extension to the existing system has 15 stops and runs from
The route is planned to provide 10 kilometres of new 2-lane St Werburgh’s Road in Chorlton, via Sale to Manchester
f TO M6/M62 dual carriageway on an east-west route from the A6 near Airport.
BIRMINGHAM
& SOUTH Hazel Grove (south east Stockport), via the 4 kilometres of
existing A555 to Manchester Airport and the M56.
Styal Road
The scheme will provide much-needed connectivity for key
A560 strategic routes into the North West and to Manchester
M60 STOCKPORT Airport, including traffic from the A6, A523 and A34 – all of
which are key routes for business, leisure travel and freight
WYTHENSHAWE
from Cheshire, Derbyshire, Staffordshire, and beyond.
CHEADLE
ROYAL A6
M56 BUSINESS
PARK HAZEL Key benefits of the scheme will include:
GROVE
HEALD
A5102 · Economic growth generating additional economic
GREEN
output for the region of up to £2.5 billion and
A34
contributing towards the creation of up to 5,000
new jobs;
MANCHESTER
AIRPORT · Improved access to Manchester Airport and other key
A555
POYNTON destinations, particularly for Cheadle Royal
HANDFORTH
DEAN · Reduced congestion;
· Shorter journey times;
EXISTING ROAD
WOODFORD
· Increased investment encouraged in
PROPOSED LINK ROAD
South Manchester.
LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER
DESCRIPTION
Lakeside 5000 is prominently situated facing the entrance to the Park.
Comprising a modern striking, three storey self contained, highly specified office building, the
property is of steel framed and cavity brick construction with pre-cast concrete floors.
Elevations of buff masonry and feature blue curtain walling, along with a curved modern clad
entrance complement a distinctive “winged roof”, to provide a striking Headquarters building.
The building was designed to enable future sub-division if required.
SPECIFICATION
Lakeside 5000 has a rectangular floor plate and central core, providing Grade A Offices.
• Triple height, glazed atrium reception area.
• Suspended ceilings incorporating recessed low energy lighting to 400 Lux.
• Heating and cooling via four pipe fan-coil comfort cooling.
• Double glazed, aluminium framed windows.
• Gas fired heating.
• Two x 10 person (800 kg) passenger lifts.
• Male, Female and Disabled WC’s on each floor.
• Large rectangular floor plates over 12,000 sq ft designed for excellent efficiency and
flexibility for future sub-division/multiple occupancy if ever required.
• 178 car parking spaces providing for an excellent out-of-town office parking ratio of 1:208 sq ft.
Around a third of these are within undercroft parking, with direct lift access into the offices.
• Hermetically sealed double glazed windows.
• Fully accessible raised floor with 600mm x 600mm panels.
• Kitchen points provided on each floor.
• Granite surfaces in washrooms.
The site area extends to approximately 0.6 hectares (1.47 acres).
Planning permission for D1 medical use on the ground and first floors was previously obtained
in February 2009, which provides additional, future flexibility of uses for the building.
ACCOMMODATION TYPICAL FLOORPLAN
Floor Size sq ft Size sq m
Ground Floor 13,621 1,265
First Floor 13,214 1,228
Second Floor 13,214 1,228
Total 40,049 3,721
Floor areas have been measured in accordance with IPMS3. The property has previously been
measured on a NIA basis by an independent source.
LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER
TENURE Long leasehold from Muse Developments Plc (formerly AMEC Developments Plc) for 215 years less 3 days, from and including 29 September 1995 at a peppercorn rent. Muse has a 215 year long leasehold interest from the same date at a peppercorn, from Cheadle Royal Hospital. MANAGEMENT COMPANY To ensure the highest estate management standards are retained, Cheadle Royal Management Company was established and is currently controlled by Muse. The management company has responsibility for managing, cleaning, repair, upkeep and security of all common areas within the Estate, via a dedicated 24 hour on-site management centre. Maintenance costs are passed onto the individual tenants and investors, via a service charge provision. This estates charge is currently running at £0.63 per sq ft. TENANCY The property is occupied by Balfour Beatty Group Limited under a full repairing and insuring lease for a term of ten years from 1st June 2009, at a current rent of £800,161.63 per annum, reflecting £20.14 per sq ft. Nike Inc is the guarantor to the lease under an AGA following the assignment by Umbro Limited (formerly a Nike subsidiary) to Balfour Beatty in 2013. The lease benefits from annual fixed rental indexation increases of 2.5% per annum throughout the term, the next being on the 1st June. Balfour Beatty have the right to extend the lease for a further 5 years from expiry of the current lease, subject to not less than 9 months prior written notice. This extension would also be subject to annual fixed rental indexation increases of 2.5% per annum. In the event this is not taken up, the tenant must pay an additional one year’s rent, which will then equate to £861,685.48. An investor will therefore receive the equivalent of a minimum of 4.25 years income.
COVENANT INFORMATION
Balfour Beatty Group Limited is the principal UK operating
subsidiary of Balfour Beatty plc and is a multinational infrastructure
group with capabilities in construction services, support services and infrastructure
investments, with over 100 years of experience in delivering highly complex infrastructure
projects. A constituent of the FTSE 250 Index, Balfour Beatty works for customers
principally in the UK and the US, with developing businesses in Australia, Canada, the
Middle East and South East Asia.
‘Balfour Beatty is the largest construction contractor in the UK,
and employs 36,000 people in 80 countries’
Balfour Beatty Group Limited turned over £3.1Bn in 2014 and currently has Net Current
Assets of £24M. Balfour Beatty plc generated a revenue of £8.24Bn for the year ended
December 2015 with Net Current Assets of £830M.
2014 saw Balfour Beatty Group Limited’s performance adversely impacted by significant
issues in Engineering Services and in the regional businesses in London and the South
West. The Scottish, North and Midlands regions, however, performed well. Consequently,
in 2015, The Group launched the ‘Build to Last’ transformation programme designed to
deliver superior returns for all stakeholders. In its initial year, Build to Last has begun to
deliver measurable improvements: costs are coming down and cash flow has improved
substantially, such that the Board expects to reinstate the dividend at the interim results
in August 2016. Furthermore, more favourable markets in 2015 saw a strong cash
performance for the plc with £163M Net Cash, in addition to revenues and the order book
stabilising. The underlying pre-tax losses of 2014 reflected historic projects now being
managed through to completion, with more selective project bidding in place under the
Build to Last program. In December 2015, the Group agreed a new £400M syndicated
revolving credit facility extending through to 2020.
Nike Inc is an American multinational corporation that is engaged in the
design, development, manufacturing and worldwide marketing and sales
of footwear, apparel, equipment, accessories and services. The company is
headquartered near Beaverton, Oregon, US, and is one of the world’s largest suppliers of
athletic shoes and apparel and a major manufacturer of sports equipment.
‘Nike Inc employs more than 44,000 people worldwide, and in
2015, was the world’s most valuable sports brand, and 18th most
valuable brand in the world’. (Forbes)
For the year ending December 2015, Nike Inc recorded a revenue of $30.6Bn.
(Dollars in millions) FYE 31.05.2015 FYE 31.05.2014 FYE 31.05.2013
Revenues 30,601 27,799 25,313
Net Income 3,273 2,693 2,451
Market Capitalisation 87,044 66,921 55,124
LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER
SOUTH MANCHESTER OFFICE MARKET
South Manchester is the largest out of town office market in Greater 2015 take-up for South Manchester totalled 553,554 sq ft (51,425 sq m) with 169 transactions in
total, which is in line with the 5 year average of 572,690 sq ft (53,203 sq m).
Manchester, and one of the largest in the UK regions.
Furthermore, there are a number of high profile occupier requirements currently circling the South
Manchester has cemented its position in recent years as the UK’s leading office destination
Manchester market which will put further upward pressure on rents.
outside London, with levels of office take-up consistently exceeding the other “Big 6”
regional cities. There has been a resurgence of large occupiers to the market during the past
18 months. Large occupational requirements are set to continue over the next 4 to 5 years Company Size (Sq Ft)
with over 1.2 million sq ft of known Grade A lease events above 10,000 sq ft set to occur.
The Hut Group 50,000
Prime rents in Manchester are currently £34.00 per sq ft and forecast to grow to £39.00
per sq ft by 2019, demonstrating the strongest rental growth relative to the other UK “Big Intertek 45,000
Regional 6” during the next 5 years. Indeed, annualised rental growth in Manchester is 3%
Information Commissioner’s Office (ICO) 35 – 40,000
per annum since the late 1990s.
New College Manchester 25,000
Prime rents in South Manchester have remained stable over recent years, with headline rents
of £18.50 to £22.50 per sq ft. During this time, Cheadle Royal has firmly established itself as Advance Computer Systems 25 – 35,000
the premier out of town park in the North West. Convergys 15 – 20,000
A number of large lettings took place in South Manchester in 2015 pushing prime rents to AJ Bell 50 – 70,000
£22.50 per sq ft.
The supply of high quality business park accommodation within South Manchester remains
constrained. If available to let, Lakeside 5000 would be one of only a handful of buildings able to
Size Rent accommodate a requirement in excess of 35,000 sq ft, along with:
Property Tenant Date
(Sq Ft) (Per Sq Ft)
The Pavillion Building Size
1,163 Hitchner & Wakeford £22.50 December 2015
Towers, Didsbury
One Dovecote, Sale 61,000 sq ft
Venus Altitude, Atlas Business Park 45,000 sq ft
5,148 Club La Costa £21.50 December 2015
Trafford Way, Old Trafford
Lakeside 3400, Cheadle Royal 38,000 sq ft
Crescent House
32,230 Syngenta £22.00 September 2015 Other Key Competition:
Towers, Didsbury
Spectrum House Total size of office
8,088 Cisco £21.50 August 2015 Destination scheme currently Current availability Quoting Rent
Towers, Didsbury
developed
Ocean House Mason & Media City 800,000 sq ft 12% £24.00 per sq ft
11,717 £21.50 June 2015
Towers, Didsbury Vaughan Group
First Street 180,000 sq ft Fully-let £26.00 per sq ft
St Peters Square Airport City Pre-let only £24.50 per sq ft
17,918 Sky £18.50 May 2015
Stockport
Towers 290,000 sq ft 5% £22.50 per sq ft
Scotscroft
23,883 John Lewis £20.50 Sept 2014 There has been virtually no development activity since 2008, and this restricted supply of modern
Towers, Didsbury
space relative to demand is narrowing incentives, elongating lease terms and providing upward
pressure on rents. The outlook for Cheadle Royal is very positive.
LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTERCAPITAL ALLOWANCES
Any unclaimed allowances can be made available for the benefit of the purchaser via
separate negotiation. Interested parties should make their own investigations in this regard.
VAT
The property has been elected for VAT. It is anticipated that the sale of the property will be
treated as a Transfer of a Going Concern (TOGC).
EPC
E 114.
Certificate available upon request.
PRICING
We are instructed to seek offers in the region of £9,750,000 subject to contract.
This reflects a net initial yield of 7.69% and a capital value of £243 per sq ft.
Year Rent (£s) Guaranteed Running Yield
2016 820,164.64 7.88%
2017 840,668.76 8.08%
2018 861,685.48 8.28%LAKESIDE 5000
CHEADLE ROYAL BUSINESS PARK MANCHESTER
PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS
FURTHER INFORMATION
Craig Barton Simon Marshall
DDI: 0161 455 3712 DDI: 0161 235 7641
craig.barton@cushwake.com simon.marshall@cushwake.com
PROPERTY MISDESCRIPTIONS
Cushman & Wakefield for themselves and for the vendors or lessor 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) Cushman & Wakefield 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) rents quoted in these particulars maybe subject to VAT in addition;
iv) Cushman & Wakefield will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and Cushman & Wakefield
v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to it’s state or condition
or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements”. 1 Marsden Street
vi) no employee of Cushman & Wakefield (and its subsidiaries where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever Manchester M2 1HW
in relation to the property.
DATE OF PARTICULARS: April 2016. Designed & Produced by Creativeworld. Tel 01282 858200You can also read
