PREMIER INN HOTEL AND RESTAURANT PRE-LET FUNDING PLOT 2, OXFORD TECHNOLOGY PARK, LANGFORD LANE, KIDLINGTON, OXFORDSHIRE OX5 1RY - Bidwells
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PREMIER INN HOTEL AND RESTAURANT PRE-LET FUNDING
PLOT 2, OXFORD TECHNOLOGY PARK, LANGFORD LANE,
KIDLINGTON, OXFORDSHIRE OX5 1RY
For indicative purposes only.
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Investment Summary
Forward funding of a new 4 storey Premier
Inn hotel and Beefeater restaurant on the
Oxford Technology Park
Oxford Technology Park is located on the
north side of Oxford adjacent to London
Oxford Airport
Development to comprise a 101 bed hotel
and 150 cover restaurant
New 25 year FR&I lease to Premier Inn Hotels
Limited, subject to a tenant break option in
year 20.
The initial rent is anticipated to be £660,500
per annum exclusive (reflecting £5,500 per
key plus £19.83 per sq ft for the restaurant)
The rent is subject to 5 yearly upwards only
rent reviews linked to CPI, collared and
capped at 0% and 4% pa
Premier Inn Hotels Limited are a subsidiary
of Whitbread Plc with a D&B rating of 5A1
Full forward funding sought with offers
invited in excess of £14,300,000 subject to
contract and exclusive of VAT which reflects
a net initial yield of 4.5% assuming actual
purchaser’s costs at 2.58%.
For indicative purposes only.
2
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Birmingham
M1 M40
A509 London Oxford
A1 Cambridge Airport
M5 Northampton KIDLINGTON
ANE
RD L
Worcester M40 M1 A44 LAN
GFO
The Site
Bedford
J9
A34 A5 A428 A4260
A44 Bicester
Milton M11 Begbroke A34
Keynes A1(M)
A5
KIDLINGTON J9
A421 A41 Luton
Aylesbury St Albans
Cheltenham A40 J8A
A40 Oxford Parkway
Oxford
A423 M40
M25 M25
A34 Heathrow
Reading A40
M4 A34
M4 LONDON To Oxford
Location Situation
Located 60 miles north west of London and well supported by the excellent transport links to Oxford Technology Park is situated directly opposite London
65 miles south east of Birmingham. Oxford the area. Kidlington is accessible from junction 8A Oxford Airport in Kidlington and will be the first dedicated science
Technology Park is on the outskirts of Kidlington or junction 9 of the M40, following the A40 or A34 and technology park to the north of Oxford, bringing much needed
in the Cherwell Valley District of Oxfordshire. respectively taking approximately 10 minutes by R&D space to the market. The park will also benefit from its
Kidlington is approximately 5 miles to the north car. The A34 connects Kidlington to the M4 proximity to Oxford, and its global brand. The availability of turnkey
of Oxford city centre and 7.5 miles south west motorway to the south east in approximately 30 solutions to suit specific needs is a major potential attractor for the
of Bicester. minutes and the M25 is within a 45-minute drive. development.
Kidlington is home to the Oxfordshire Fire and The site is adjacent to London Oxford Airport Oxford Technology Park is accessed off Langford Lane directly
Rescue Service HQ as well as Thames Valley and just a short distance from the new Oxford opposite London Oxford Airport.
Police, Elsevier European HQ, Airbus Helicopter Parkway Rail Station which can provide a
To the east lies Oxford Motor Park and to the west lies Kidlington
UK Ltd, CAE Technology Services Ltd and Airways connection to London in 1 hour. Oxford city
Ambulance Station and the National Tactical Response Group.
Aviation Flight Academies. centre is just 5 miles away and can be reached
The south of Oxford Technology Park borders with farm land and
via a regular bus service from Langford Lane in
Kidlington’s economy consists largely of light the north is bordered by Langford Lane.
approximately 30 minutes.
industrial and commercial business use which is
3
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
SUBJECT PROPERTY
A44 OXFORD MOTOR PARK OXFORD TECHNOLOGY PARK NATIONAL TACTICAL RESPONSE GROUP A44 LANGFORD LANE
TO OXFORD
TO KIDLINGTON
LANGFORD LANE INCHCAPE MERCEDEZ-BENZ THAMES VALLEY ELSEVIER LONDON AIRBUS
POLICE HQ EUROPEAN HQ OXFORD AIRPORT HELICOPTERS UK LTD
MARSHALL VOLKSWAGEN KIDLINGTON AMBULANCE SERVICE CAE OXFORD AVIATION ACADEMY
4
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Site
The entire park totals 8.26 hectares (20.40
acres), of which 2.00 acres forms the subject
property, Plot 2.
Oxford Technology Park is a planned major
new science and technology park poised
to provide much needed flexible R&D space
in the heart of Oxfordshire’s A34 Knowledge
Economy spine. The ‘masterplan’ proposes
a campus development with a signature office
building at the entrance to the park. A tree-
lined avenue will join 12 high tech units built
to occupiers' specifications, inclusive of up to
50% office, lab and fitted accommodation.
Outline planning permission permits the
construction of 40,362 sq m (434,453 sq ft)
of office, research and development,
laboratory business space. Planning for the site Key
has been broken down into 12 plots, further Hotel plot
split between 4 phases of development. Technology Hub with
The subject hotel funding is allocated to Plot 2 serviced space
falling within Phase 2 of the development Pre-let 30,000 sq ft
hybrid unit
(shown in red). Adjacent is a proposed
Technology Hub with serviced space (pink); Spec, hybrid building of
2 semi-detached units
pre-let discussions on a 30,000 sq ft hybrid
unit (dark blue); spec-built hybrid units (light Pre-let 100,00 hybrid building
blue) and pre-let discussions on a 100,000 sq Oxford Technology Park
ft hybrid building (green). site boundary
For indicative purposes only.
5
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Description
The 4-storey Premier Inn hotel and Beefeater
restaurant incorporated on the ground floor of
the development will be constructed with a
traditional steel portal frame.
The hotel will have a NIA of 34,972 sq ft
(3,249 sq m) and the restaurant will have a NIA
of 5,296 sq ft (492 sq m). There is an additional
2,583 sq ft (240 sq m) of shared areas and
communal space. The combined development
will have a total NIA of 42,851 sq ft (3,981 sq m).
Hotel
The hotel will provide 101 beds. This will be
split between 17 rooms on the ground floor,
22 rooms on the first floor, and 31 on each of
the second and third floors.
Restaurant
The restaurant is to be operated by Beefeater
and will provide 150 covers on the ground floor.
Parking
Vehicular and service access to the site will be
from the main access road into the park from
Langford Lane. There will be car parking for
134 vehicles including electric vehicle charging
points and 6 disabled spaces.
For indicative purposes only.
6
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Ground Floor Plan
HOTEL ACCOMMODATION RESTAURANT ACCOMMODATION SHARED ACCOMMODATION
GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m GF = ONLY GF = 65 sq m / 1F = 175 sq m
TOTAL AREA = 3249 sq m TOTAL AREA = 492 sq m TOTAL AREA = 240 sq m
Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request.
7
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
First Floor Plan
HOTEL ACCOMMODATION SHARED ACCOMMODATION
GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m GF = ONLY
TOTAL AREA = 3249 sq m TOTAL AREA = 492 sq m
Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request.
8
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Second/Third Floor Plan
HOTEL ACCOMMODATION
GF = 639 sq m / 1F = 638 sq m / 2F = 956 sq m / 3F = 956 sq m
TOTAL AREA = 3249 sq m
Indicative floor plans, not to scale. Detailed floor plans and elevations are available on request.
9
PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Tenure
Freehold.
Tenancy
On completion, the proposed development will be pre-let to
Premier Inn Hotels Ltd. on full repairing and insuring terms for
25 years (tenant break at year 20 subject to 12 months notice)
at an anticipated passing rent of £660,500 per annum exclusive.
This reflects £5,500 per key for the hotel and £105,000 (£19.83
per sq ft) for the restaurant. The lease will provide for 5-yearly
upward only rent reviews based on CPI, with a 0% collar and
4% cap per annum. The tenant will benefit from 6 months rent
free from completion, which will be topped up by the vendor.
Service Charge
Premier Inn Hotels Ltd. is required to pay a fair proportion of all
reasonable and proper costs incurred by the Landlord in the
upkeep of common parts.
Planning
Outline planning consent for the wider Oxford Technology Park
masterplan has been approved under planning reference
14/02067/OUT.
“Reserved Matters (17/00559/F) including details of siting, design,
layout and external appearances of units referred to as 1 and 3” has
been obtained under reference no. 17/01542/REM. In addition to
“Variation of conditions 1, 2, 3, 5, 7, 9, and 21 of 14/02067/OUT to
enable proper phasing of the development” under reference no.
17/00559/F.
The planning application relating to the hotel site, reference
17/02233/F “Hotel (Class C1) and ancillary restaurant (Class A3)
including associated works, comprising the provision of parking
spaces and landscaping | Land East Of Evenlode Crescent And
South Of Langford Lane Kidlington” was determined at the 15th
March committee meeting.
For indicative purposes only.
10PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Oxfordshire Market
The University of Oxford aims to be a leader in
innovation and entrepreneurship within the
science and technology sector, building on its existing
reputation as a world leading centre of learning,
teaching and research. Oxford University’s staff have
won a total of 32 Nobel prizes across the science and
medicine sectors which have a combined total
research spend of over £400m annually.
The University is investing a further £300m in the
form of a new partnership company, Oxford Science Oxfordshire Hotel Market “I write in support of this application, Oxfordshire has a
Innovation plc, backed by a multitude of well- Colliers ranked Oxford 3rd place, second to Chester and significant shortage of hotel bed space, bearing in mind its
established investors such as Invesco Asset York on their 2016 UK Hotel Index and rated Oxford in strong appeal as a destination for tourism. The county has
Management Limited, IP Group plc, Lansdown 1st place on their list of rising markets. For Oxford this 3 major draws in particular for national and international
Partners (UK) LLP, Oxford University Endowment represents a 25 place improvement in its ranking tourists, namely; The Blenheim Palace World Heritage Site,
Fund, the Wellcome Trust and Woodford Investment compared to the previous year, largely due to the the City itself and Bicester Village. In addition, its location
Management LLP, with the sole purpose being to increase in buyer demand, coupled with a low active next to the airport can also only be positive.”
assist in the development of science and research pipeline for future hotel developments and a strong Roger File BSc Dip Proj. Man MBA MRICS Chief Operating
spinout companies based on technology developed performing market. Office and Property Director at Blenheim Palace.
by Oxford University Researchers (University of
A 2016 study by Hotel Britain showed that Oxford had
Oxford, 2015).
an occupancy level of 80.6%, which is considerably
Oxfordshire Infrastructure Improvements
Driven by growth in the science and technology higher than the UK regional average of 75.9% and more
East West Rail Link has a planned scheme totalling £530m to
sector, particularly in out of town locations, the in line with the average for London which was 82.8%.
reopen the varsity railway line between Oxford and Cambridge
Oxford and south Oxfordshire office markets were This was also considerably higher than both York and
which is expected to be completed by 2024. £152m is bid for
the only markets within the Thames Valley to out- Chester. Average daily room rates for the same study
the development of Rapid Transit lines on upgraded A44
perform their long-term average in both 2016 and were £71 for Oxford, again putting it ahead of York and
and A4260 corridors, a new Park & Ride, and strategic cycle
H1 2017. Indicating there is huge demand for growth Chester and on par with Cambridge at average rates
infrastructure. Support is also sought for additional education
in this sector around Oxfordshire and thus a large of £72.20.
requirements (as yet uncosted). This would support the delivery
requirement for additional space in the form of the Average daily rates in the provinces are up by 2.4% on of 5,570 homes in Woodstock, Begbroke/Yarnton and the
Oxford Technology Park. 2016 and are forecast to increase by a further 2% in Northern Gateway.
2018 based on reports and forecasts by PWC.
11PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Premier Inn Hotel and Restaurant Investment Transactions
Evidence of recent Premier Inn investment transactions are set out below:
Property Covenant (Guarantor) Price Keys Rent pa Rent Per Years Unexpired Yield Date
..... Key (Break)
Batchworth Lock, Church Street, Premier Inn Hotels Ltd £14.75m 92 £496,800 £5,400 30 (20) 4.25% December 2017
Rickmansworth (Whitbread Plc) (reviewed 5 yearly to CPI 0% collar and 4% cap) 25 (15) (Under Offer)
Travis Perkins Trading £130,000 (reviewed 5 yearly to OMR)
...... Company Ltd
Custom House Street, Cardiff Premier Inn Hotels Ltd £34m 248 £1,524,000 (reviewed 5 yearly to CPI) £6,100 20 from PC 4.20% December 2017
...... (Whitbread Plc)
St Enoch Square, Glasgow Premier Inn Hotels Ltd £33.3m 249 £1,500,000 (reviewed 5 yearly to CPI) £6,000 25 from PC 4.25% December 2017
........ (Whitbread Plc)
+ small retail element
West Street, Brighton Premier Inn Hotels Ltd c.£20m 120 £900,000 + restaurant tbc. £7,500 25 c.4.1% December 2017
........... (Whitbread Plc)
12-16 Park Street, Camberley, Surrey Premier Inn Hotels Ltd £8.5m 95 £418,000 (reviewed 5 yearly to CPI with 5% cap) £4,400 20 (15) 4.9% September 2017
1-6 Waterloo Street, Birmingham Premier Inn Hotels Ltd £26.6m 152 £1,166,000 (reviewed 5 yearly to CPI with 5% cap) £7,600 20 4.12% August 2017
................................. (Whitbread Plc)
11-15 Bridle Path, Watford Premier Inn Hotels Ltd £13.5m 124 £663,400 (5 yearly CPI linked reviews with 0% and £5,350 25 (20) 4.6% August 2017
....... 4% collar and cap) Forward Funding Investment
Thyme restaurant
North River Road, Great Yarmouth Premier Inn Hotels Ltd £9.0m 80 £470,000 (5 years CPI linked reviews 0%-4%) £5,800 18 4.9% March 2017
Brewers Fayre
12PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Tenant Covenant Information Development Team
.. Premier Inn is part of Whitbread PLC which this year The development is being undertaken by Hill Street Holdings Ltd.
....... celebrates its 275th Anniversary as a British business.
Hill Street Holdings Ltd is the holding company for a privately-owned group of development companies
........ Premier Inn has plans to expand its markets in with a broad range of activities. Primarily involved in direct development of commercial schemes, they
.......... Germany and the Middle East after recently opening also deal with residential and mixed-use development, both as stand-alone principal and in partnership
............. its first hotel in Frankfurt earlier this year. with major house-builders, property companies and institutional funds.
Premier Inn was named the UK’s top-rated travel brand and the top-rated Hill Street Holdings specialise in building first class business space to meet occupier requirements and
hotel chain for 2016 by Which?. 2016 also saw Premier Inn being voted Best continue to provide high quality commercial accommodation in the south east of England. They have
UK Economy Hotel at the British Travel Awards and Best UK Hotel Group in recently worked with landowners and developers to realise the potential value of a variety of sites that
the National Geographic Traveller UK Reader Awards. stalled in the economic downturn. Whether that be master planning for a major mixed-use allocation
Premier Inn has been awarded the Best UK Family Hotel in the TripAdvisor or reworking an original planning consent to suit today’s market.
Travellers’ Choice Awards, Best UK Hotel Group in the Silver Travel Awards An example of a recently completed project includes Homefield Business Park, Haverhill, Suffolk.
and the Business In The Community Environmental Leadership Award. Ongoing projects include Bicester Gateway near Oxford, as well as multiple developments in Maldon.
Premier Inn have over 760 hotels in the UK and approximately 68,000
bedrooms. They have opened 26 new sites in the past 12-months creating
Professional Team Project Timing
3,700 new rooms. They are looking to build on this success with a target Developer Hill Street Holdings Planning application submitted
of reaching 75,000 bedrooms by the end of 2018 and 85,000 bedrooms Planning partners Bloombridge & Savills [December 2017]
Architect Allison Pike Partnership
by 2020. Planning consent secured
Civil & Structural Engineer Simpsons
Agents Bidwells (Hotel and Park) (Received April 2018)
Premier Inn Hotels Ltd 02 Mar 2017 03 Mar 2016 26 Feb 2015
Benedicts consultant surveyors (Park)
.... GBP GBP GBP Start on site [Q2 2018]
Solicitor Greenberg Traurig, LLP
Sales Turnover 812,000,000 743,195,000 374,540,000 M&E Engineer Jenks Associates Practical Completion [Q2 2019]
BREEAM consultants Sustainable Construction Services
Profit (Loss) Before Tax 268,397,000 255,471,000 148,523,000
A latent defect in indemnity policy is in place underwritten by
Tangible Net Worth 1,143,116,000 923,100,000 744,335,000 Aviva, which will be assigned to any purchaser.
Warranties will be available for the benefit of the purchaser from
Premier Inn Hotels Ltd have a D&B rating of 5A1 the professional team and contractors.
13PREMIER INN HOTEL & RESTAURANT KIDLINGTON OXFORD
Elevations
Full resolution elevations are available on request.
Specifications
The Premier Inn will be developed in accordance
with the Whitbread PLC’s WHISDOM specification
guidelines www.whisdom.co.uk
West Elevation
South Elevation For indicative purposes only.
14Further Information
Should you have any queries or
wish to make a site inspection,
please contact:
Andrew Groves
DD: 020 7297 6274
andrew.groves@bidwells.co.uk
Mike Fox
DD: 020 7297 6273
mike.fox@bidwells.co.uk
Richard Walden
For indicative purposes only. DD: 020 3761 3649
richard.walden@bidwells.co.uk
Capital Allowances Proposal Bidwells
Capital allowances can be made available to Our client is seeking offers in excess 25 Old Burlington Street
the purchaser by way of separate negotiation. of £14,300,000 subject to contract and
London W1S 3AN
exclusive of VAT on the basis of a full
Tel: 020 7493 3043
VAT funding, comprising an initial site payment
of £2,650,000 at construction finance
The property is elected for VAT.
and a balancing payment on completion. April 2018
EPC A purchase at this level would reflect
TBC on completion. a net initial yield of 4.5% assuming
The development will meet or exceed a actual purchaser’s costs of 2.58%
BREEAM ‘Very Good’ rating. (made up of 4.604% SDLT on the site
price and 1.8% fees on the total price).
15Bidwells 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 bidwells.co.uk IMPORTANT NOTICE Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: Nothing contained in these particulars or their contents or actions, both verbally or in writing, by Bidwells LLP form any offer or contract, liability or implied obligation to any applicants, viewing parties or prospective purchasers of the property to the fullest extent permitted by law and should not be relied upon as statements or representative of fact. No person in the employment of Bidwells LLP or any joint agents has authority to make or give any representation or warranty whatever in relation to this property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only, may not be to scale and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP has not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. All rentals and prices are quoted exclusive of VAT unless otherwise stated. Prospective purchasers may be asked to produce identification of the intended Purchaser and other documentation in order to support any conditional offers submitted to the vendors. Bidwells LLP accepts no liability of any type arising from your delay or other lack of co-operation. We may hold your name on our database unless you instruct us otherwise. OS licence no. ES 100017734. © Copyright Bidwells LLP 2017. Bidwells LLP is a limited liability partnership registered in England and Wales (registered number OC 344553). Registered office is Bidwell House, Trumpington Road, Cambridge CB2 9LD where a list of members is available for inspection. Your statutory rights are not affected by this notice.
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