BRIDGE HOUSE DY5 1XR WATERFRONT EAST MERRY HILL. High Yielding Government Let office Investment for Sale

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1 BRIDGE HOUSE WATERFRONT EAST MERRY HILL DY5 1XR High Yielding Government Let office Investment for Sale 4320 Merry Hill stage 8.indd 1 22/10/ :47

2 Investment Summary Modern office building totalling 42,841 sq.ft with excellent parking provision Prominently positioned on The Waterfront Business Park within close proximity to the Merry Hill Shopping Centre Let to The Secretary of State for Communities and Local Government with a term certain of 6.5 years Passing rent of 544,000 equating to psf Asset management angles Offers sought in excess of 4.25m reflecting a net initial yield of 12% and a low capital value of psf 4320 Merry Hill stage 8.indd 2 22/10/ :47

3 Bridge House, Waterfront East, Merry Hill, DY5 1XR Location Waterfront Business Park is well located adjacent to the Merry Hill Shopping Centre approximately km (10 miles) to the west of Birmingham city centre and km (7 miles) south of Wolverhampton city centre in the heart of the Black Country. Mainline rail services run from Sandwell & Dudley approximately km (7 miles) distant to Birmingham New Street and onwards to London Euston with services also to London Marylebone from Stourbridge Junction approximately 6.47 km (4 miles) away. Lye railway station is a 5 minute drive with services every 30 minutes between Stourbridge Junction and Birmingham Snow Hill. The A4036 connects the Waterfront to Junctions 2 and 4 of the M5 Motorway approximately 9.65 km Birmingham International Airport is approximately (6 miles) and km (12 miles) distant. Local bus km (30 miles) from the Waterfront serving services are well provided for in the area with frequent many European and International destinations. local and regional bus routes via Brierley Hill and Merry Hill bus stations Merry Hill stage 8.indd 3 22/10/ :47

4 Situation Bridge House is prominently positioned on the north side of Waterfront East Business Park immediately adjacent to Waterfront Way and enjoys pleasant views over the canal and marina. The Park provides an attractive working environment which has been developed over a number of years to include bars, cafes and sandwich shops fronting the canal together with the large Merry Hill Shopping Centre only a short walk away. Established occupiers nearby include Ambulance Service, Royal Mail, Lloyds TSB, Dudley Magistrates Court, Virgin Media and Higgs & Sons Solicitors. Description Bridge House comprises a modern office building over basement, ground and three upper floors of concrete framed construction and built in The L shaped configuration provides for a central core allowing easy sub-division if required. Externally, the building has brick walls together with double glazed aluminium windows and curtain walling together with a number of balcony features under a pitched concrete tiled roof. The main central reception comprises a double height marble clad atrium leading to two 8 person passenger lifts, together with a central stairwell giving access to all floors. The modern open plan office space includes raised floors, suspended ceilings and recessed lighting. The building is naturally ventilated and heated via radiators by way of a low pressure hot water system with gas fired boilers. Male, female and disabled toilet facilities are provided on all floors. The basement has an extensive file storage facility together with access to 36 designated underground car parking spaces providing a ratio of 1:111 sq m (1:1,190 sq ft). The Waterfront Estate is very well maintained with extensive landscaping and good quality public areas and street furniture. There is a 1,500 space communal car park serving the whole estate Accommodation The approximate net internal areas are as follows: Area Sq m Sq ft Basement Storage Ground Floor First Floor Second Floor Third Floor Total 3, ,841 Within the lease the floor area is stipulated at 41,050 sq.ft. TENURE Long leasehold interest from 24 June 2000 and expiring 22 December Fixed passing rent of 5,000 per annum with no further review Merry Hill stage 8.indd 4 22/10/ :47

5 TENANCY The property is let to The Secretary of State for Communities and Local Government (and occupied by the HMRC) formerly The Secretary of State for Transport, Local Government and the Regions, by way of a full repairing and insuring lease for a term of 25 years from 19 April 1993 together with a reversionary lease for an additional nine years giving an ultimate expiry of 2 April There is a tenant only break clause on 2 April 2021 on nine months written notice. The property therefore provides approximately 6.5 years term certain. The passing rent is 544,000 per annum reflecting per sq.ft off the area stipulated in the lease. Part of the building is sub-let (further information is available upon request). ASSET MANAGEMENT We believe the property offers an excellent combination of an undoubted income and other asset management angles in view of the sub-letting and the building directly opposite being converted into luxury flats (further information upon request). By way of further background we have spoken to the SEDO at the Council of Dudley who have a planning framework to see the entire Waterfront Development evolve as a mixed use town-centre destination linking the very successful Merry Hill shopping Centre through the Waterfront into Brierley Hill. Please see the links below for further information: showdecision.asp?id=4295 We would refer you specifically to Policy 36 which stipulates Dudley Council are seeking long term intensification in the Waterfront West Business Park for job protection and creation and a mixed use approach to include housing and D1. VAT The property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC). EPC The building EPC rating is C PROPOSAL We have been instructed by our clients to seek offers in excess of 4,250,000 reflecting a NIY of 12% and a very low capital value of psf. Based on the quoting price, the unexpired income will return the purchaser 83% of the initial investment which would present a residual holding price of 17 psf. This also ignores an allowance for dilapidations, which are not restricted. Design and produced by PLP London T: plplondon.com 4320 Merry Hill stage 8.indd 5 22/10/ :47