TREMAINS BUSINESS PARK TREMAINS ROAD I BRIDGEND I CF31 1TZ

WELL-SECURED OFFICE INVESTMENT

INVESTMENT CONSIDERATIONS •

Modern office development of 26,460 sq ft, with 90 parking spaces

•

Prominent town centre location very close to the mainline railway station

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100% let to public sector and housing association tenants, of excellent covenant strength

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Let on three FRI leases at £239,736 per annum

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New headquarter office building for V2C Housing Association - 10 years unexpired.

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Average unexpired term of 7.5 years, with re-based rents of circa £9.00 per sq ft.

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Low capital value of only £83 per sq ft

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Quoting £2,200,000 reflecting an attractive net initial yield of 10.30%

LET TO 3 SECURE COVENANTS •

Bridgend Council

•

Probation Service

•

V2C Housing Association

LOCATION Bridgend has a population of circa 40,000 and is the administrative centre for Bridgend County Borough. The town is located between Cardiff (18 miles east) and Swansea (29 miles west) and benefits from excellent road communications, being served by three junctions of the M4 motorway (J35, 36 and 37). Bridgend also has a mainline railway station, with a regular direct service to London Paddington, taking around 2 hours 30 minutes.

SITUATION Tremains Business Park is easily accessible from Junctions 35 and 36 of the M4 motorway. Junction 35 is only 2 miles north of the property and is accessed via the A433 dual carriageway, while Junction 36 is accessible via the A4061. The office scheme is situated on Tremains Road in Bridgend town centre, on the north side of the railway station and within easy walking distance of the retail core. Nearby office occupiers include Berry Smith Solicitors, Bridgend County Borough Council, Remploy, the Inland Revenue and South Wales Police, while retail occupiers such as Asda, Wilkinson and Peacocks are also close by. Adare Street is the main retail thoroughfare in the town and includes familiar high street names such as Natwest, Santander, Vodafone, Superdrug and Clarks Shoes.

DESCRIPTION A modern office development comprising two separate buildings, constructed in 2002 with a steel frame, brick elevations and a pitched roof. Both properties are two-storey, although also have a basement/undercroft that was initially set out as additional parking but in part has been converted to office/storage use. Both buildings have a central core providing access to separate suites either side if required, while internally the offices benefit from the following specification:• • • • • • • •

Suspended ceilings Recessed Cat II lighting Perimeter trunking Gas central heating Double glazing Comfort cooling (in part) 8 person passenger lifts Male, female & disabled wc’s

The site comprises approximately 1.25 acres and is accessed directly from Tremains Road, via two-way barrier control system. There are approximately 90 car parking spaces, 72 situated externally and the remainder within the secure undercroft of each building. This reflects an excellent parking ratio of approximately 1 per 300 sq ft.

ACCOMMODATION Subject to formal measurement, the total net internal area of the office buildings is approximately:sq m

sq ft

Ground Floor

616.5

6,636

First Floor

612.7

6,595

Sub Total

1,225.2

13,231

Ground Floor

616.5

6,636

First Floor

612.5

6,593

Sub Total

1,299

13,229

2,524.2

26,460

Building 1

Building 2

TOTAL (NIA)

TENURE Freehold, subject to the occupational leases.

TENANCIES The property is let in accordance with the attached tenancy schedule and produces a rental of £239,736 per annum exclusive. The rent free periods will be topped up by the vendor. Unit

Tenant

Area (sq ft)

Lease Start

Lease Expiry

Rent

Rent per sq ft

Block 1 (First Floor & Part Ground)

Secretary of State (Probation Service)

10,080

06/08/2012

05/08/2017

£90,675

£9.00

Subject to a rent free period.

Block 1 (Part Ground Floor)

Bridgend CBC (Youth Offending Team)

3,151

24/06/2012

23/06/2017

£30,000

£9.50

Subject to a rent free period.

Block 2

Valleys 2 Coast Housing Ltd

13,229

21/09/2012

20/10/2022

£119,061

£9.00

Agreement to Lease signed V2C have taken occupation for fitting out. Subject to a rent free period.

26,460

£239,736

Comments

TENANT COVENANTS VALLEYS 2 COAST HOUSING LTD Valleys 2 Coast Housing Ltd was the first housing association in Wales to be formed by the large scale transfer of homes from a local authority. This transfer took place in 2003 and V2C now owns and manages over 6,000 homes within the County Borough of Bridgend. In addition V2C provides management services to some 780 leaseholders in the borough. The organisation is funded by a consortium comprising of the Nationwide and Principality Building Society, as well as the European Investment Bank. V2C are planning to spend over £65 million by 2014 to improve the condition of the homes they own, having already spent £61 million on improvements to date. The existing use value of the Company’s housing and other properties was independently values at £54.6 million as at 31 March 2011 – a copy of their financial statement as at 31 March 2011 is available upon request. The company is a not-for-profit business, registered as a Charitable Organisation. Further information is available at www.v2c.org.uk BRIDGEND COUNTY BOROUGH COUNCIL BCBC are the administrative authority for Bridgend and hence is understood to be of undoubted covenant strength. SECRETARY OF STATE FOR COMMUNITIES AND LOCAL GOVERNMENT The Probation Service is fully funded by the Secretary of State and hence is understood to be of undoubted covenant strength.

VAT We understand the property is elected for VAT and the sale can potentially be treated as a transfer of a going concern (TOGC).

PROPOSAL We are instructed to seek offers in the region of £2,200,000 (Two Million and Two Hundred Thousand Pounds) for our clients freehold interest in the above property, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 10.30% assuming purchaser’s costs at 5.75%. This equates to a low capital value for the entire property of only £83 per sq ft.

FURTHER INFORMATION For further information or to arrange an inspection, please contact: Jonathan Phillips Jones Lang LaSalle Haywood House Dumfries Place CARDIFF CF10 3UE

Simon Bennett Jones Lang LaSalle 40 Berkeley Square BRISTOL BS8 1HU

+44 (0) 29 2072 6046 +44 (0) 7989 528078 [email protected]

+44 (0) 117 930 5717 +44 (0) 7808 290869 [email protected]

029 2022 7666

0117 927 6691

© Crown Copyright 2011. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Misrepresentations Act 1967 & Declaration Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to this property. September 2012.