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.
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.
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).
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.
• 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 A.C.L Ltd as the headquarters for Lex Autolease Ltd on a new 5 year lease from July 2018, 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 – A.C.L Ltd benefit from a 5A1 Dun & Bradstreet credit rating, representing a minimum risk of business failure. A.C.L Ltd. and Lex Autolease are subsidiaries of 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.
• The property is available to purchase by way of a 131 year long-leasehold.
High quality self-contained office building with excellent parking provision
The property is located on The Oaks Business Park, ideally positioned adjacent to the A441 to the south of Redditch town centre. The property benefits to excellent access to the national motorway network at J 2 & 3 of the M42. The business park is situated adjacent to a number of restaurants and is in close proximity to a number of public houses and a Tesco Extra Superstore.
Suspended ceiling with recessed CAT II lighting New high quality carpet Newly refurbished W/Cs Gas-fired central heating system Ground floor kitchenette Excellent parking provision (1:245 sq ft)
Newly Refurbished Multi-Let Office Investment
• Strategic location near Junctions 13, 14 and 15 of the M40 Motorway.
• One Warwick Technology Park comprises a headquarters style office building, recently refurbished to Grade A standard.
• The property extends to 49,157 sq ft over three floors.
• Fully-let to three principal tenants; Accenture (UK) Ltd, Baker Hicks Ltd and Delphi Diesel Systems Ltd.
• The property currently produces a net rental income of £984,658.50 per annum (including additional car park rent), reflecting £18.14 per sq ft overall.
• Baker Hicks and Delphi Diesel Systems have both committed to new leases on refurbished accommodation, setting a new headline rental level in excess of £19.00 psf.
• Reversionary potential via the future refurbishment of Accenture's accommodation, which is yet to be refurbished and is currently let off £16.02 psf.
• Excellent covenant strength with all tenants offering D&B rated minimum risk covenants.
• Average weighted unexpired lease term of 8.75 years to expiry and 5.69 years to break, the property benefits from long term income security.
A purchase at this level reflects an attractive Net Initial Yield of 7.00% and a low capital value of £268.01 per sq ft, assuming full purchasers’ costs.