, Regents Court, The Crescent

Transcription

1 On the Instructions of , Regents Court, The Crescent Birmingham Business Park, Birmingham

2 , Regents Court, The Crescent Birmingham Business Park, Birmingham

3 Investment Summary Birmingham Business Park is situated approximately 13 km (8 miles) to the east of Birmingham City Centre and 6 km (4 miles) to the north east of Solihull Town Centre. Birmingham International Airport lies about 1.6 km (1 mile) south of the Park together with Birmingham International Railway Station and the NEC. Birmingham Business Park has been developed and continues to be developed by Arlington Securities and forms a high quality mixed use business park. In total, Birmingham Business Park provides approximately 139,000 sq m (1.5 million sq ft) of office accommodation on a site of approximately ha (235 acres). The property comprises 5 self contained office buildings totalling approximately 2, sq m (27,754 sq ft). Built to a high specification including full access raised floors and suspended ceilings. Excellent parking ratio of 1:16.85 sq m (1:181 sq ft). Freehold. Current rent of 525,806 per annum. ( per sq ft average) Currently let to 5 tenants with a range of unexpired lease terms. Offers in excess of 6.2 million, subject to contract and exclusive of VAT. An acquisition at this level will provide the purchaser with a net initial yield of 8% after purchaser's costs of %

4 Location Birmingham Business Park lies within the Metropolitan Borough of Solihull within the West Midlands and the commercially expanding M42 corridor. It is located approximately 16 km (10 miles) to the south east of Birmingham City Centre and 21.4 km (13 miles) to the west of Coventry , Regents Court, The Crescent Birmingham Business Park, Birmingham Communications are excellent with the M42 providing links to the M6, M40 and M5. Birmingham International Airport, Birmingham International Station and the NEC are all located within approximately 1.6 km (1 mile) of the business park. The airport has over 50 airlines serving approximately 100 destinations both to Europe and North America. The airport handles approximately 9 million passengers a year. Solihull forms the major out of town office market within The Midlands. It has become a popular choice for National Headquarters, for both domestic and international companies. Situation Located between Junction 4 of the M6 and Junction 6 of the M42, Birmingham Business Park lies adjacent to the A452 Chester Road Birmingham Bu The Crescent forms a phase of the business park developed in the 1990's and lies adjacent to the Chester Road (A452). Access is via the main estate road to the Business Park.

5 , Regents Court, The Crescent Birmingham Business Park, Birmingham 80, Regents Court, The Crescent siness Park, Birmingham Plan Kindly Supplied by Arlington Securities Plc

6 Birmingham Business Park Birmingham Business Park is the pre-eminent commercial centre along the M42 Corridor. The main office market along the M42 is located between Junctions 4 & 6, due to the location's proximity to the M40, M6 and M6 Toll Road. Other owners on the park include Insight (Equitable and CMG), BBC Pension Fund, Legal and General, Alba Life, British Steel Pension Fund and Stargas. Significant recent lettings on Birmingham Business Park include the following: Take up in the M42 Corridor during 2003 was estimated to be 305,000 sq ft and 385,000 sq ft in (Source: Promis). Occupier enquiries for small buildings and suites on the park have improved in line with the general economy. Arlington have recently let small suites (900-1,400 sq ft) within the Waterside complex at per sq ft and report increased levels of enquiries. On the vacant ground floor of unit 2470, they are quoting per sq ft. Arlington are nearing completion of the next phase of the park, known as The Forum (Phase 1) buildings and These buildings are due for completion in December 2004, the quoting rent is per sq ft. The buildings measure 35,641 sq ft and 47,950 sq ft respectively. In January 2004, Costain acquired the first floor of unit 2425, The Crescent at per sq m ( per sq ft). The suite measured 2,392 sq ft. Nextira One, acquired 6230 Bishop's Court in January 2004, the building measured 8,345 sq ft and the rent equated to per sq m ( per sq ft). Soft Lab acquired the last speculative units at 4020 Lakeside, in October The building is owned by Arlington and measures 1,445 sq m (15,554 sq ft), a 16 year lease was secured with a break clause at year 8. The rent equates to per sq m ( 20 per sq ft). Beiersdorf (UK) Ltd acquired 2,552 sq m (27,473 sq ft) at The building is owned by Legal & General and was let on a 15 year lease with breaks at years 10 and 12 in July The rent equates to per sq m ( per sq ft) for the refurbished building. Unit 6230 Bishop's Court, was acquired in June 2003 by Support Services Group on a 5 year lease at per sq ft.

7 Description Designed as an office campus, buildings form part of the 2000 series of development undertaken by Arlington in the mid-1990's. This element of the campus was completed in The accommodation provides 5 self contained, 2-storey office buildings forming approximately 50% of Regents Court, the other half is owned by the BBC Pension Fund. The offices are set in a landscaped environment and are of a steel framed construction with brick elevations to first floor sill level with glazing panels above, under a pitched tiled roof. Windows are tinted double glazed units. The office accommodation is arranged around a central staircase and core. The specification includes fully accessible raised floors, central heating with low level panel radiators, suspended mineral fibre ceilings with recessed Category 2 lighting. Male and Female toilets are provided at ground and first floor. The units were not built with air conditioning, however air conditioning can be retrospectively fitted (Unit 2460/Unit Tenant's improvement). With the exception of Unit 2480, none of the buildings have a lift.

8 Accommodation The property provides the following accommodation measured in accordance with the RICS Code of Measuring Practice. Planning Planning consent was granted for the business park in the late 1980's. Consent for Plot 2400 was granted in 1990 to provided 8 x 2 storey office units. Unit Area Sq m Area Sq ft , , , , ,784 Total net Internal Floor Area 2, ,754 Car Parking Approximately 153 spaces are provided to the property both to the front and rear of the buildings. All spaces are demised to individual buildings as follows: Unit Car Spaces Total 153 Site Area The property has a site area of approximately 0.75 ha (1.85 acres). The parking ratio is 1:16.85 sq m (1:181 sq ft). Tenure Freehold.

9 Tenancy Schedule Unit Tenant Start Term End Next Rent Area Rent ERV ERV pa Comments Date Date Review p.a. sq ft per sq ft 2450 Norwich Union Life & Pensions Co. Ltd 25/03/ yrs 24/03/2007 N/A 101,300 5, ,500 Co. no Sensormatic Camera Ltd 25/12/ yrs 24/12/ /12/ ,000 4, ,600 Co. no Arlington Property Developments Ltd 17/10/ yrs 25/11/ /11/ ,056 4, ,200 Co. no Ennstone Plc 01/03/ yrs 28/02/ /03/ ,000 3, ,100 Co. no Honeywell Control Systems Ltd 24/03/ yrs 23/03/2008 N/A 165,450 8, ,900 Co. no Totals: 525,806 27, ,300 Tenant's Covenant Strength Tenant D & B Rating Year End Turnover Pre-tax Profit Net Worth % of Rent Norwich Union Life & Pensions Co Ltd 5A1 31/12/2003 4,414,000, ,000,000 2,432, % Sensormatic Camera Ltd A2 30/9/2003 N/A N/A 617, % Arlington Property Developments Ltd H2 31/12/2002 N/A N/A % Ennstone Plc 5A1 31/12/ ,700,000 5,563,000 49,943, % Honeywell Control Systems Ltd 5A2 31/12/ ,124,000 14,162,000 52,140, % Unit 2450 Norwich Union have sublet to Prudential Assurance Co Ltd on a Co-terminus lease. The Prudential have their lease on the market through DTZ Birmingham. They have recently applied to sub underlease the property. Further details on the tenant are available at Unit 2460 Sensormatic Camera are a subsidiary of Sensormatic Ltd, in turn a subsidiary of Sensormatic Electronic Corporation of USA. The company design and manufacture Tyco Fire and Security Systems, CCTV and a range of anti shoplifting services. Sensormatic have sublet the whole building co-terminusly to Frontstep (UK) Ltd, trading as Mapics, an international company specialising in design of manufacturing software Unit 2470 Arlington Property Developments Ltd are a subsidiary of the park developer, Arlington Securities Plc, one of the UK's major business park developers who in turn are over 50% owned by Legal and General. Arlington are proposing to assign their lease to a sister company, Arlington Business Parks GP Ltd. Arlington have sublet the 1st Floor to NWS Bank Plc co terminusly, who in turn have assigned the lease to Career Management Consultants Ltd. Arlington are marketing the ground floor suite at per sq ft. Unit 2475 Ennstone Plc is a producer of aggregates, concrete and building products Currently the property is available for assignment through Lambert Smith Hampton in Birmingham. Unit 2480 Honeywell Control Systems are a subsidiary of Honeywell Inc. of America. The company is a world leader in control systems within building and aviation.

10 Service Charge The Units have two service charges. The first "Park" service charge covers the common parts throughout the business park. The second service charge "Plot" covers landscaping and maintenance within this property. In addition, Units 2470 and 2475 have a third service charge and are effectively full repairing and insuring via the service charge. The property owner has a shareholding in the management company which will be transferred to the purchaser as part of the sale. Further information available upon request.

11 Environmental No environmental report is available. VAT VAT will be payable upon the purchase price. Capital Allowances We are advised that the vendor has not claimed the benefit of Capital Allowances to date. These will be available to a purchaser by negotiation. Price Our clients are seeking offers in excess of 6.2 million representing a net initial yield of 8.0% after purchaser's costs of %, subject to contract and exclusive of VAT.

12 Contact For further information please contact Arun Sibal James Welch Cork Street London W1S 3LH Switchboard: Fax: Misrepresentation Act: Misrepresentation Act 1967 Ashworth Sibal Welch (ASW) for themselves and for the vendors of this property whose agents they are give notice that: 1. These particulars are a general outline only, for the guidance of prospective purchasers and do not constitute the whole or any part of an offer or contract; 2. ASW cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and therefore prospective purchasers much not rely on them as statements of fact or representations and must satisfy themselves as to accuracy; 3. ASW or their employees do not have any authority to make or give representation or warranty or enter into any contract whatever in relation to this property; 4. Rents and prices quoted may be subject to VAT in addition; 5. ASW will not be liable in negligence or otherwise for any loss arising from the use of these particulars; 6. No responsibility can be accepted for any expenses occurred by intending purchasers in inspecting properties which have been sold or withdrawn; 7. ASW have not made any investigations into the existence or otherwise of any issues concerning pollution, potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. Aug 2004