Prime M42 Office Investment Opportunity
Birmingham is the regional capital of the Midlands and is firmly established as the UK’s second city. With a population of circa 1.1 million it is the largest regional centre in the UK by population and economic status. Birmingham sits at the centre of the larger West Midlands conurbation with a population of circa 2.45 million. As a result Birmingham has one of the largest regional labour pools in the UK, with 4.3 million people of working age living within an hour’s drive of the city centre. Birmingham has a strong and well balanced economy and is a major engine of UK growth. It is one of the fastest growing cities in the United Kingdom and Europe. Birmingham has the 10th largest city economy in Europe producing £100 billion + GDP per annum, ranking Birmingham ahead of Manchester (UK), Hamburg and Munich (Germany), Stockholm (Sweden) and Lyon (France). Birmingham is host to over 75,000 companies, including 1,200 international businesses. Birmingham benefits from world class transport infrastructure, providing exceptional local, national and international connections.
• Located within the prime Birmingham Out of Town Office Market, the M42 Corridor, which benefits from strong tenant demand, restricted supply and recent rental growth.
• The property fronts the A45 dual carriageway, less than 2 miles from Junction 6 of the M42.
• Blake House comprises a modern HQ style office building, built in 1999, extending to 37,597 sq ft.
• Single let to Lex Autolease Ltd as their headquarters facility on a new 5 year lease from September 2017, with tenant only break at year 3 subject to a rental penalty.
• Lex Autolease are the UK’s market leading vehicle leasing business, and have been in occupation of the building since construction in 1999.
• Excellent covenant strength - Lex Autolease Ltd benefit from a 5A1 Dun & Bradstreet credit rating, representing a minimum risk of business failure. Lex Autolease is a fully owned subsidiaryof Lloyds Banking Group plc.
• The property produces a net rental income of £626,095 per annum reflecting £16.92 per sq ft overall, assuming half rate on reception.
A purchase at this level reflects an attractive Net Initial Yield of 8.50% and low capital value per sq ft of £183.53, assuming full purchaser’s costs.
Blake House is situated on Eagle Court Business Park, 8km (5 miles) east of Birmingham City centre, and 3km (2 miles) west of Junction 6 of the M42. The property is in close proximity to Birmingham Airport, Birmingham International Railway Station, and the NEC. The property is within the M42 Corridor, Birmingham’s prime Out of Town Office Market, containing the Midlands most successful commercial locations including Birmingham Business Park, Trinity Park and Blythe Valley Business Park. Blake House is situated at the entrance to Eagle Court Business Park, with prominent frontage to the A45, a major arterial route providing dual carriageway access between Birmingham City centre and the M42 Motorway. In turn, the A45 dual carriageway affords direct access to Hatchford Way, the estate road serving the park. Eagle Court Business Park provides three HQ style office buildings; Blake House, Eagle 2 and Eagle 3. Eagle 2 and 3 are occupied by Virgin Media, Rexel and Goldbeck Construction . Birmingham Airport Terminal and Birmingham International Railway Station are 2km (1.5 miles) to the east, adjacent to the National Exhibition Centre and Resorts World. Construction is due to commence imminently on HS2’s Birmingham Interchange Station, adjacent to Junction 6 of the M42, enhancing the already excellent transport connections in the immediate vicinity. Junction 6 of the M42 is also due to be upgraded, incorporating a new direct link road from Birmingham Airport to the M42. Solihull town centre lies 5km (3.5 miles) to the south and Sheldon just 1 km (0.8 miles) to the west, providing additional retail and leisure amenities.
Blake House comprises a modern HQ style detached office building constructed in 1999. The property is arranged over three storeys, with an impressive central full height glazed reception area leading to two office wings, providing occupational flexibility. The property is of steel frame construction with elevations comprising a mixture of brickwork, steel-faced panelling and glazed curtain walling. The specification of the office accommodation includes; •Full height glazed reception atrium •Open plan office layout •Full access raised floors with 150mm clear zone •Finished floor to ceiling height of 2.70m • Suspended ceilings with recessed lighting •Four pipe fan coil air conditioning •Two 13 person passenger lifts •Male, female and disabled WCs, along with shower facilities The tenant has recently consolidated its operations into Blake House, and has refitted part of the building as part of this process. The building sits on a regular landscaped site, with a car park accessed from Hatchford Way providing 146 marked spaces, giving an excellent parking ratio of 1:250 sq ft. The car park benefits from an electronic access control gate, and CCTV is in operation across the site. The overall site area is approximately 0.76 hectares (1.87 acres).