OLYMPUS HOUSE Long Income Office Investment with Fixed Uplifts - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LYMPUS HOUS OLYMPUS HOUSE O LY M P U S A V E N U E • L E A M I N G T O N S P A • W A R W I C K S H I R E • C V 3 4 6 B F Long Income Office Investment with Fixed Uplifts
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [2]
Asset Overview Proposal
• A long let modern office investment with fixed uplifts. We are instructed to seek offers in excess of £11,538,000 (Eleven
Million Five Hundred and Thirty Eight Thousand Pounds).
• A landmark headquarters office building located on
Leamington Spa’s premier office location, Tachbrook Assuming purchasers costs of 6.71%, this reflects a net initial yield of
Park, 2 miles south of Leamington Spa town centre 6.75% and a reversionary yield of 7.64% (2027) and a low capital value
and 3 miles north of Junctions 13 and 14 of the M40. of £260 per sq ft.
• The property occupies an extremely prominent
position fronting the A452 Europa Way, which links
Leamington Spa to the M40.
• A well specified office building extending to 44,411
sq ft across ground and two upper floors, occupying
a substantial site area of 5.2 acres.
• The property is let to Wright Hassall LLP, a full service
legal firm, with a maximum Experian Rating of 100.
• Wright Hassall LLP have been in Leamington Spa for
almost 175 years and in occupation of the property
since 2006. The tenant entered into a reversionary
lease in 2013, which expires on 24th December 2032.
In addition, the landlord has an option to extend the
lease by a further 12 months, therefore providing an
unexpired term of approximately 12.5 years.
• The passing rent is £752,697 per annum, which
reflects a low £16.95 per sq ft.
• The lease includes 5 yearly RPI linked rent reviews,
annually compounded, subject to a cap and collar of
3% and 1%. The next rent review is in December 2022.
Our client will top up the rent to the 2022 review based
on a conservative 2.0% per annum to £831,038 per
annum (£18.71 per sq ft).
• Freehold.
OLYM P US HOUSE O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [3]
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [4]
LICHFIELD
M6T
M42
M54 TAMWORTH
LEICESTER
M6
WOLVERHAMPTON
WALSALL
HINCKLEY
Location
M1
M6 NUNEATON The property is located on Tachbrook Park,
the premier office location in Leamington Spa,
DUDLEY
M69 2 miles to the South of the town centre.
M6
M5 Leamington Spa is located some 28 miles to
BIRMINGHAM the south east of Birmingham, 5 miles to the
M42 COVENTRY M6 east of Warwick and 94 miles to the north
west of London.
KIDDERMINSTER RUGBY
M42 A46 Leamington Spa is a prosperous and historic
spa town in central Warwickshire, to the south
THE PREMIER REDDITCH ROYAL of the West Midlands conurbation along the
M40 LEAMINGTON M40 corridor. It has a resident population of
OFFICE LOCATION M5
SPA
over 56,000, which is more affluent than the
IN LEAMINGTON SPA WORCESTER A46 A429 national average, and over 553,000 people
STRATFORD living within a 12 mile radius. Leamington Spa
UPON AVON has experienced above average employment
growth of 2.9% over the last 5 years and the
population is forecast to grow by 1.5% over
A425 the next 5 years.
ROYAL
LEAMINGTON Leamington Spa benefits from excellent
WARWICK A425 OLYMPUS SPA communication links, being accessed from
HOUSE
A46 OLYMPUS AVENUE junctions 13 and 14 of the M40. The M40 links
A4189 BRIDGE END EUROPA WAY
TACHBROOK PARK DRIVE with the M42 to the north west which provides
A452 access to the M6 and M5 and the wider
B4087
WHITNASH
motorway network.
A425 Leamington Spa railway station operates
HEATHCOTE
regular services with a journey time to
A452 London Marylebone of 80 minutes and
15 Birmingham New Street of 28 minutes.
Birmingham International Airport is some
A46 M40 14 A452 TACHBROOK
MALLORY
16 miles to the north west and is one of the
fastest growing airports in the country and
B4087 is currently the 5th largest in the UK.
A425
A429
M40
BARFORD
13
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [5]
Situation
Tachbrook Park is an established mixed use business park, situated
TACHBROOK PARK IS AN
off Europa Way (A452) to the south west of Leamington Spa town
centre. The A452 provides a main trunk road link between the town
ESTABLISHED MIXED USE
centre and Junctions 13 and 14 of the M40. The property occupies
an extremely prominent position overlooking the A452. SCHEME WITH OVER
Tachbrook Park is the premier office location in Leamington Spa with
other high profile occupiers in the town including Tata, Co-Op Energy, 1 MILLION SQ FT OF OFFICE,
Kantar, Bridgestone, Sega, Bravissimo, Wolseley Group and Johnson
Controls. Tachbrook Park also includes a 91 bed Holiday Inn and site
adjacent to the Shires Retail Park, which has attracted the likes of
INDUSTRIAL, HOTEL AND CAR
Sainsburys, Next, Boots, Halfords and a new M&S food store.
The immediate vicinity is currently undergoing a transformation
SHOWROOM PREMISES
with major residential development providing 4,500 new homes to
the area. This also demonstrates the growth of the town.
SPA PARK
TACHBROOK PARK
A452 HEATHCOTE
INDUSTRIAL ESTATE
OLYMPUS AV
EUROPA WY
OLYMPUS A452
PINEWOOD AV HOUSE
Catesby Estates
Residential Development Waterloo Housing Group
Residential Development
OLYM P US HOUSE O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [6]
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [7]
MYTON RD A425
WARWICK WARWICK
TECHNOLOGY PARK LEAMINGTON
A452
Warwick Catesby Estates
GALLOWS HILL District Residential Development
Council Site
RAILWAY STATION
LEAMINGTON SPA
SHOPPING PARK
Waterloo
Housing Group
Residential
Development
L&Q
Estates EUROPA WY
Residential
Development TACHBROOK PARK
A452
HEATHCOTE
INDUSTIRAL ESTATE QUEENSWAY
M40 J14
HARBURY LN
TACHBROOK PARK DR
TACHBROOK RD
HEATHCOTE LN
Development
The property will also further benefit from the future
planned development in the immediate area. Planning
permission has been granted for circa 4,500 new homes by
2029 along the A452 Europa Way corridor, together with
schools, healthcare, a care home, sport stadium and leisure
facilities with Waterloo Housing, Barratt, Catesby, Lindon
Homes, Barwoods and L&Q Estates having already
commenced development.
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [8]
Description Accommodation
Olympus House comprises an imposing office building The property has previously been measured by
across ground and two upper floors. Developed in Plowman Craven and provides the following Net
1988, the property is of brick elevations, with feature Internal Areas:
stone bands beneath a pitch slate roof. The building
includes a number of architectural features including a Floor Use Sq ft Sq m
circular, domed entrance hall and staircases, a central
atrium with roof lights and a boardroom with barrel- Ground Reception 1,006 93.5
vaulted ceiling.
Ground Office 15,899 1,477.1
The office accommodation benefits from the following
high specification: Ground Stores 640 59.5
• Suspended ceilings incorporating recessed lighting
First Office 15,282 1,419.7
and 4 pipe fan coil air conditioning.
• Full access raised floors. Second Office 11,584 1,076.2
• Panel radiators. Total 44,411 4,126.0
• Newly refurbished staff restaurant facilities.
The property occupies a substantial site area of
• Newly refurbished meeting room accommodation 5.2 acres (2.1 ha), providing a very low site density
on the ground floor. of 19.6%.
• Male and female W/C's on each floor.
Ground Floor First Floor PARTITION TO ALIGN
WITH EXTERNAL WALL
PARTITION TO ALIGN
WITH EXTERNAL WALL
PARTITION TO ALIGN
WITH EXTERNAL WALL
Second Floor
0 1 2
• Two passenger lifts and a goods lift.
UP UP UP UP UP UP
DOWN TO BASEMENT DOWN TO BASEMENT DOWN TO BASEMENT UP UP UP UP UP UP
STORE STORE STORE STORE STORE STORE
PIT PIT PIT
PIT PIT PIT
VENDING VENDING VENDING
VEND VEND VEND
• Extensive basement plant room and storage area. DOWN DOWN
VENDING
DOWN DOWN
VENDING
DOWN DOWN
VENDING
DOWN DOWN DOWN DOWN DOWN DOWN
MALE MALE MALE
TOILETS TOILETS
DISABLED DISABLED
TOILETS DISABLED
TOILET TOILET TOILET
Externally, the extensive, landscaped site offers car
DOWN TO DOWN TO DOWN TO
BASEMENT BASEMENT BASEMENT
FEMALE TOILETS
FEMALE TOILETS FEMALE TOILETS
parking for 264 cars, providing an excellent ratio of UP UP UP COURTYARD (1) COURTYARD (1)
LINK LINK
COURTYARD
COURTYARD (1)(2) COURTYARD (2)
LINK
COURTYARD (2) UP UP UP
UP
DOWN
UP
DOWN
UP
DOWN
UP
DOWN
UP
DOWN
UP
DOWN DOWN
D.R.
DOWN
D.R.
DOWN
D.R.
DOWN DOWN DOWN
1:168 sq ft.
D.R. D.R. D.R. D.R. D.R. D.R.
D.R. D.R. D.R.
D.R. D.R. D.R. D.R. D.R. D.R.
A/C A/C A/C
DUCT DUCT DUCT
SERVICE SERVICE SERVICE SERVICE SERVICE SERVICE
PASSENGER PASSENGER PASSENGER
There are two vehicular access points onto Olympus
PASSENGER PASSENGER SERVICE PASSENGER
SERVICE SERVICE PASSENGER PASSENGER PASSENGER
LIFT LIFT LIFT LIFT LIFT LIFT
LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT
LIFT LIFT LIFT
DATA DATA DATA
DATA DATA DATA DATA DATA DATA
ROOM ROOM ROOM DATA DATA DATA
ROOM ROOM ROOM ROOM ROOM ROOM ROOM A/C ROOM A/C ROOM A/C
DUCT DUCT DUCT
ELEC.
PASSENGER
ELEC.
PASSENGER ELEC.
PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER
RISER
LIFT RISER LIFT RISER
LIFT
ELEC.
RISER
ELEC.
RISER
ELEC.
RISER
LIFT LIFT LIFT LIFT LIFT LIFTELEC. ELEC. ELEC.
Avenue, directly linking to the A452 Europa Way.
ELEC. ELEC. ELEC. ELEC. ELEC. ELEC.
ELEC. ELEC. ELEC. RISER RISER RISER
RISER RISER RISER RISER RISER RISER
RISER RISER RISER
CLEANER’S CLEANER’S CLEANER’S
DISABLED DISABLED DISABLED VENDING VENDING STORE STORE
DOWN
VENDING
DOWN
STORE
DOWN
VENDING VENDING VENDING
SHOWER SHOWER SHOWER
TOILET TOILET TOILET
UP UP UP
MALE MALE MALE MALE TOILETS MALE TOILETS MALE TOILETS
TOILETS TOILETS TOILETS FEMALE FEMALE FEMALE
FIRST FIRST FIRST TOILETS TOILETS TOILETS
FEMALE AID
FEMALE AID FEMALE AID FEMALE FEMALE FEMALE MALE MALE MALE
VOID VOID VOID
TOILETS TOILETS TOILETS VENDING TOILETS
VENDING TOILETS VENDING TOILETS TOILETS TOILETS
VENDING VENDING TOILETS VENDING
SHOWER SHOWER SHOWER
UP UP UP
VEND VEND VEND
CLEANER’S CLEANER’S CLEANER’S VENDING VENDING VENDING
STORE STORE STORE
NEW DOOR & NEW DOOR & NEW DOOR &
DOWN DOWN DOWN GLAZED SECTION GLAZED SECTION GLAZED SECTION
UP UP UP
TRAINING ROOMTRAINING ROOM STORAGE
AREA
STORAGE
AREA
TRAINING ROOM STORAGE
AREA
DATA DATA DATA TRAINING ROOMTRAINING ROOM TRAINING ROOM
ROOM ROOM ROOM
LOCK LOCK LOCK
DOOR DOOR DOOR
PRINTER & PRINTER & PRINTER &
PHONE TABLE PHONE TABLE
LOCK DOOR LOCK DOOR PHONE TABLE LOCK DOOR
RECEPTION RECEPTION RECEPTION VOID VOID VOID
LECTURE THEATRELECTURE
(60)/ THEATRE (60)/ LECTURE THEATRE (60)/
TRAINING ROOM TRAINING ROOM TRAINING ROOM
Chairs from WH Chairs from WH Chairs from WH
existing premises existing premises existing premises
LOBBY LOBBY LOBBY
D.R. D.R. D.R. D.R. D.R. D.R.
D.R. D.R. D.R. VOID VOID VOID D.R. D.R. D.R.
D.R. D.R. D.R.
UP UP UP UP UP UP
DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN
UP UP UP UP UP UP
OLYM P US HOUSE O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [9]
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [ 10 ]
Unit A
Tenure
Freehold.
Tenancy Information
The property is let to Wright Hassall LLP on a
full repairing and insuring lease for a term of
15 years from 25 December 2006. In 2013 the
tenant entered into a reversionary lease on a
term expiring 24 December 2032. In addition
the landlord has an option to extend the lease
for a further 12 months, therefore providing an
unexpired term on approximately 12.5 years.
The current passing rent is £752,697 per annum,
which equates to a low £16.97 per sq ft.
The rent is subject to 5 yearly RPI-linked reviews,
which are capped and collared at 3% and 1%
respectively. The next review is 25th December
2022. Our client will top up the rent to the 2022
review based on a conservative 2.0% per annum
to £831,038 per annum.
THE PROPERTY EXTENDS TO
Part 2nd floor (2,896 sq ft) has been sublet
44,411 SQ FT ACROSS GROUND to Towergate Insurance at a current rent of
£54,000 per annum reflecting £18.65 per sq ft.
AND TWO UPPER FLOORS ON
A 5.2 ACRE SITE.OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [ 11 ]
Covenant Information Market Commentary
WRIGHT HASSALL LLP Occupational Market Investment Market
2020 has been one of the most turbulent years for the regional office As a result of the pandemic the focus from investors has been towards secure income to good
market on record, as a result of the uncertainty caused by the Covid-19 quality tenants with excellent credit. This has been characterised by a number of long income
pandemic. However with very little in the way of new stock, the M40 Office income deals generating good levels of interest from both domestic and international
Wright Hassall LLP (OC315843) has a maximum
market is still being choked by lack of supply. investors. A summary of recent transactions is below:
Experian credit rating of 100 and has released the
following financial results: Prime headline rents in Leamington Spa currently stands at circa £22.50 Size Price WAULT
although there are schemes which should push this on during 2021. Date Address Tenant Yield
(sq ft) (per sq ft) (yrs)
GBP ‘000 31/03/2020 31/12/2018 31/12/2017 At the topped up rent, Olympus House is at a discount compared to
Trinity Central,
prime providing an attractive prospect for future rental growth. Mar £9.60m
Bickenhill Lane, Beiersdorf UK Ltd 25,251 6.40% 7.2
Turnover 25,960 21,613 20,551 2021 (£380)
The table below shows the recent key M40 lettings. Birmingham
Pre-tax Building One,
1,853 3,122 3,591 Mar £5.49m
profit Price Quinton Business Highways Agency 23,154 6.50% 8.0
Date Address Occupier 2021 (£237)
(per sq ft) Park, Birmingham
Net Assets Nov Brookhill Way, £7.25m
Attributable 3,527 4,429 5,367 £23.50 Lloyds 33,150 7.00% 5.5
Current Aura Vacant 2020 Banbury (£219)
to Members (Quoting)
Nov 3 Devon Way, c.£6.65m
£21.00 Barnett Waddingham 21,434 6.20% 15.0
Established for 175 years in Leamington Spa, Wright Current Tata, Tachbrook Sublet 2020 Longbridge (£310)
Hassall is a top ranked Legal 500 and Chambers UK (Quoting)
Technology Drive,
Nov ATOS IT Services £10.93m
full service law firm based at Olympus House since Current Kantar, Tachbrook Under offer £20.00 Beeston 42,915 6.49% 10.0
2020 UK Ltd (£252)
2007. The company provides legal services including Business Park
corporate law, commercial law, litigation and dispute Q4 2019 Regent Sq House, Leamington Pixel Toys Ltd £19.50 Aug Lansdowne Gate, £18.95m
National Grid 61,000 6.46% 6.5
resolution, employment law and property law. The Q4 2019 Bishops House, Tachbrook Sumo Digital Ltd £18.50 2020 Solihull (£311)
firm also covers medical negligence, personal injury, June Sapphire Court, £22.20m
Q3 2019 B2 Technical Centre, Leamington Kwalee £18.50 AAH Ltd 91,733 6.19% 12.5
contentious probate, business immigration, debt 2020 Coventry (£242)
recovery, employee incentives, information governance,
professional negligence and private client matters.
Wright Hassall relocated to Olympus House in 2006,
establishing their headquarters, and have continued
to grow now employing over 275 staff with 47 partners.
Wright Hassall have enjoyed a period of growth, adding
a number of areas to the business to complement their
core services. In 2017, they were named as the Nations
Leading Law Firm at the National Lawyer Awards.
www.wrighthassall.co.ukOLYM P US HOUSE O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [ 12 ]
OLYM P US HOUSE
O LYM P U S AVE N U E • LE A M I NGTON SPA • WARWICKSHIRE • CV34 6B F [ 13 ]
VAT Contact
The property is elected for VAT and we For further information or to arrange
understand the sale can be treated as a an inspection contact the following:
Transfer of a Going Concern (TOGC).
Ashley Hudson
T +44 (0) 121 233 6443
M +44 (0) 7771 976 848
EPC E ashley.hudson@knightfrank.com
Jonathan Devaney
Further information is available upon
T +44 (0) 121 233 6490
request.
M +44 (0) 7717 346 610
E jonathan.devaney@knightfrank.com
Proposal
We are instructed to seek offers in excess
of £11,538,000 (Eleven Million Five
Hundred and Thirty Eight Thousand
Pounds). Assuming purchasers costs IMPORTANT NOTICE (1) Particulars: These particulars are not an offer, an
of 6.71%, this reflects a net initial yield invitation or a contract, nor part of one. Any information about price or value
contained in the particulars is provided purely as guidance, it does not
of 6.75% off the topped up income of constitute a formal valuation and should not be relied upon for any purpose.
You should not rely on statements by Knight Frank in the particulars or by
£831,038 per annum and a reversionary word of mouth or in writing (“information”) as being factually accurate about
the property, its condition or its value. Knight Frank has no authority to
yield of 7.64% (2027) and a low capital make any representations about the property. No responsibility or liability is
or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to
value of £260 per sq ft. the adequacy, accuracy, completeness or reasonableness of the
information, notice or document supplied or otherwise made available to
any interested party or its advisers in connection with the Proposed
Transaction. All and any such responsibility and liability is expressly
disclaimed. (2) Images: Photographs show only certain parts of the
property as they appeared at the time they were taken. Areas,
measurements and distances given are approximate only. (3) Regulations:
Any reference to alterations to, or use of, any part of the property does not
mean that any necessary planning, building regulations or other consent
has been obtained. A buyer or lessee must find out by inspection or in other
ways that these matters have been properly dealt with and that all
information is correct. (4) VAT: The VAT position relating to the property
may change without notice. (5) Financial Crime: In accordance with the
Money Laundering, Terrorist Financing and Transfer of Funds (Information
on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight
Frank LLP may be required to establish the identity and source of funds of
all parties to property transactions. Knight Frank is the trading name of
Knight Frank LLP. Knight Frank LLP is a member of an international network
of independent firms which may use the “Knight Frank” name and/or logos
as part of their business name and operate in jurisdictions outside the
United Kingdom. No “Knight Frank” entity acts as agent for, or has any
authority to represent, bind or obligate in any way, any other “Knight Frank”
entity. Knight Frank LLP is a limited liability partnership registered in
England with registered number OC305934. Knight Frank LLP registered
office is 55 Baker Street, London, W1U 8AN, where you may look at a list of
members’ names (this can also be found at www.knightfrank.co.uk/about-
us). April 2021. carve-design.co.uk 14983/7You can also read
