delta 900, delta business park, swindon sn5 7xqbcmre.com/assets/img/delta900/delta900.pdf · delta...

SECURE LONG DATED OFFICE LET TO OXFORD BROOKES UNIVERSITY

DELTA 900, DELTA BUSINESS PARK, SWINDON SN5 7XQ



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INVESTMENT SUMMARY

■ Location Swindon is the principal commercial and financial centre in Wiltshire. It is strategically located 78 miles (125 km) to the west of London, 35 miles (56 km) to the west of Reading, 35 miles (56 km) east of Bristol and 30 miles (48 km) southwest of Oxford, situated on the M4 at junction 15 & 16.

■ Situation The subject property is situated on Delta Business Park,to the west of Swindon, 2 miles (3.2km) to Junction 16 of the M4.

■ Description Thepropertycomprisesaself-containedofficebuildingof 30,605 sq ft (2,843.20 sq m)overgroundandfirstfloors, with 90 car parking spaces (1: 340 sq ft). Oxford Brookes Universityhasspentover£3monfittingoutthebuilding. Thebuilding is for theOperatingDepartment fornursing and healthcare courses.

■ Tenure The property is held for a term of 125 years from 27th February1987(circa96 years remaining). The headlease is subject to a current annual headrent of £30,000 per annum.Thisheadrentiscalculatedeachyearonthe24th December to thehigherof£30,000perannumor10%of rentsreceivedbythetenantfromanyunderleases.Ifthe propertyorpartofthepropertybecomesvacantthenthe rent will again be £30,000 per annum or 10% of market value.

■ Tenancy The property is let to Oxford Brookes University for a term of 15 years from 23rd May 2016, expiring 22nd May 2031. There is a tenant’s break option on 22nd May 2026 with 12 months notice. There are 9.65 years remainingtothebreak.

■ Rent The current passing rent stands at £308,345 per annum, equating to £10.07 per sq ft, which is based on 77.5% of office rents in the area. The lease is subject to upward only rent reviews every five years based on the higher of the rent prior to re view or 77.5% of the Market Rent of the premises. The net rent therefore is £278,345.00 per annum.

■ VAT The property is elected for VAT and it is envisage that the property will be sold by way of a Transfer of a GoingConcern(TOGC).

■ EPC C69.

■ Proposal We are instructed to seek offers in excess of £3,475,000 (Three Million, Four Hundred and Seventy Five Thousand Pounds),whichreflectsaNIY of 7.52% based on purchaser’s costsof6.50%,andacapitalvalueof£120 psf gross.



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LocationSwindon istheprincipalcommercialandfinancialcentre inWilt-shire with a resident population of 209,156 and a catchment pop-ulation of 275,000 within a 12 mile (20 km) radius of the town centre(BoroughCensus2011).Thispopulationhasgrownby16.2%within the last 10 years. English Heritage, the National Trust, Nationwide Building Society and Zurich Insurance all have their UK headquarters within the town.

Thetownisstrategicallylocated78miles(125km)tothewestofLon-don,35miles(56km)tothewestofReading,35miles(56km)eastofBristol and 30 miles (48 km) southwest of Oxford.

ByRoadSwindon benefits from excellent transport links situatedontheM4atjunction15&16.TheM4provideseasyaccessto the M5, 25 miles (40 km) to the west, the M25, 55 miles (88 km) totheeastandthewidernationalmotorwaynetwork.Bristolliessome40minutesdrivetothewestandReadingisapproximately1hour to the east. The A419 is accessible and provides access to the north and west to Cirencester and Gloucester.

ByRailInadditiontotheexcellentroadlinks,Swindonisideallylocatedfor rail travel,with fast train servicesbeingprovided to LondonPaddington (55minutes) and BristolTempleMeads (40minutes).

ByAirTheM4alsoprovideseasyaccesstoLondonHeathrow(viatheM4)and Bristol airports (via the M5) some 55 miles (88 km) to the east and some 40 miles (64 km) to the west.

M62

M42

M40 M11

M1

M1

M4

M3

A1 A12

M25

M20

M25

M6

M5

M6

GRIMSBY

SHEFFIELD

MANCHESTERLIVERPOOL

NOTTINGHAM

LEICESTERNORWICH

DOVER

FELIXSTOWE

LONDON

SOUTHAMPTON

BIRMINGHAM

CARDIFF

EXETER

BRISTOL

SWINDON



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Situation Thesubjectproperty issituatedonDeltaBusinessPark,beinganestablishedandsuccessfulstrategiccommercialemploymentareasituated to the west of Swindon.

Delta Business Park is one of themajor out-of-town office areasof Swindonbeing ideally locatedclose to Junction16of theM4,some 2 miles (3.2 km) to the southwest and is accessed via Welton Roadconnectingtothedualcarriageway,theA3102GreatWesternWay.Swindontowncentre isalsoaccessedviatheA3102headingeastbound.

Major local occupiers include Iceland Frozen Foods (DHL)distribution unit, Pets at Home, Royal Mail, Howdens,Smart Car UK, Walker Logistics Ltd, Brandon Tool Hire and RSM. On Delta Business Park other occupiers include L & L Ltd, Oats Ltd, DBM Swindon, Capita Business Services, Sabre andIntergraph.

Iceland Distribution

Sainsbury’sSuperstore

1

2

3

4

5

6

7

8

9

10

11

Pets@Home

RoyalMail

RSM

Lidl

B&Q

Mini

Honda

Porsche

Infinite GroupMEAD W

AY

B4006B4006

WES

TMEA

D DR

WESTMEAD DR

BARNFIELD RD

REDCLIFF ST

SHAW RIDGEPARK

WESTLEAPARK

MANINGTONRECREATION

GROUND

SWINDON TOWN CENTRE

BRIDGEMEAD CL

WELTON RD

WESTLEA DR

LANDSTONE WAY

RIVERMEAD DR

B4553

B4006

B4553

B4534

B4006

B4006 B4289

B4289

A3102

ROD

BOU

RNE

RD

KEMBLE DR

PADDINGTON DR

PENZANCE DR

B4534

TH

E MEADSRO

U

N D A B O

UT

SWINDON TOWN CENTRE

NINE ELMS

4

12

3

5

6

8

9

10

11

7



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DescriptionThepropertycomprisesaself-containedofficebuildingconstructedin1989andoriginallyoccupiedbytheMinistryofDefence.Itisarrangedovergroundandfirstfloors.Thereiscarparkingtothefront,sideandrearofthebuildingaswellasanareaoflandscapedgrounds.

Thepropertyisofsteelframeconstructionwithbrickelevationsthatincorporatesdouble-glazedantiglarewindowsbeneathapitchedprofilemetalsheetingroof.Thereisacentrallightwellintheridgeoftheroof.

MALE WC14.3 m2

FEMALE WC14 m2

WC7.6 m2

WC7.8 m2

CATERING

70 m2

COMMON ROOM/SOCIAL LEARNING /LIBRARY195 m2

CLASSROOMS70 m2 - 245 m2 - 335 m2 - 230 m2 - 125 m2 - 3TOTAL 490 m2

LECTURE THEATRE 240 m2CATERING 150 m2SOCIAL LEARNING 195 m2MEETING 45 m2FAITH SPACE 15 m2

BALANCERESOURCES 41 m2FLEXIBLE SPACE 115 m2TEACHING/OFFICE 25 m2STORE 19 m2

MALE WC14.3 m2

FEMALE WC14 m2

KITCHEN32 m2

STORE7.5 m2

CLASSROOM

100 m2

OPTION 12

25 m2

115 m2

OFFICE/TEACHING

FLEXIBLE SPACE

240 m2TIERED LECTURE THEATRE (200 SEATS)

24 m2OFFICE/RECEPTION

22.5 m2MEETING

28 m2CATERING

21 m2RESOURCES

8.5 m2

66 m2

STORAGE

15 m2FAITH ROOM

45 m2

16 m2RESOURCES

6.5 m2CLEANER

2.5 m2STORE

DISABLED WC7.8 m2

SHOWER

CLASSROOM

36 m2CLASSROOM

INTERVIEWS7 m2

7.8 m2FIRST AID

7 m2

7 m2

38 m2CLASSROOM

58 m2CLASSROOM

CLASSROOM

70 m2CLASSROOM

Area:

Scale:

Dwg No:

Drawn:

Dwg Title:

Date:

Site:

Rev No:

JAN '15MD

1/200

PROPOSED GROUND FLOOROPTION 12

SWINDON

DELTA 900 Crown copyright and database rights 2012. Ordnance

Survey 0100031673

No responsibility to the accuracy of all informationincluding any building and underground services shownis taken. Any services are indicative only and should bechecked on site. The drawing must never be used for

setting out of works

All dimensions and sizes to be verified on site.

Do not scale from this drawing.

The accuracy of these drawings relies on the feedbackfrom the users. If any discrepancies are discovered,

please call. Tel: 01865 484637

Ground Floor

KITCHENETTE

6.7 m2

3.3 m2

FEMALE WC9.7 m2

MALE WC10.3 m2

DISABLED WC6.7 m2

DISABLED WC

ADMIN OFFICES

CLASSROOMS135 m2 - 140-45 m2 - 2TOTAL 210 m2

OFFICEOPEN PLAN OFFICES 190 m2ADMIN 120 m2MEETING 30 m2

BALANCEFLEXIBLE SPACE 66 m2OFFICE/TEACHING 84 m2RESOURCE 83 m2STORE 19 m2

225 m2

45 m2CLASSROOM

135 m2GENERAL WARD

84 m2OFFICE/TEACHING

OPERATING THEATRE / HIGH CARE

66 m2FLEXIBLE SPACE

OPTION 12

MALE WC14.3 m2

FEMALE WC14 m2

WC7.6 m2

WC7.8 m2

WC3.2 m2

CATERING

70 m2

COMMON ROOM/SOCIAL LEARNING175 m2

CLASSROOMS70 m2 - 060-65 m2 - 250 m2 - 225 m2 - 430 m2 - 1

SOCIAL/CATERING 145 m2COMMON ROOM 175 m2RESOURCE 25 m2MEETING 52 m2FLEXIBLE SPACE 115 m2TEACHING/OFFICE 102 m2LECTURE HALL 147 m2

MALE WC14.3 m2

FEMALE WC14 m2

KITCHEN50 m2

STORE7.5 m2

CLASSROOM

88 m2

OPTION 4

51 m2 66 m2

11 m2

11m2

30 m2

50 m2

115 m2

CLASSROOMCLASSROOM OFFICE/TEACHING

OFFICE/TEACHING

OFFICE/TEACHING

OFFICE/TEACHING

FLEXIBLE SPACE70 m2CLASSROOM

25 m2

CLASSROOM

147 m2FLAT LECTURE HALL

25 m2CLASSROOM

50 m2CLASSROOM

30 m2CLASSROOM

28 m2

RESOURCES

28 m2MEETING

25 m2CLASSROOM

25 m2CLASSROOM

8 m2INTERVIEWS

8 m2 8 m2

8.6 m2

RECEPTION

190 m2

120 m2

OPEN PLAN OFFICES

40 m2

30 m2

RESOURCES

MEETINGSPECIALISTGENERAL WARD -135 m2OPERATING/HIGH CARE - 225 m2GENERIC WARD - 90 m2

2 m2STORE

4.5 m2CLEANERS

2.8 m2STORE

10 m2STORE

130 m2CLASSROOM

90 m2 (Based on standarddimensions for 4 beds)

GENERIC LAB40 m2CLASSROOM

43 m2RESOURCES

14 m22 PERSON OFFICE

4.5 m2KITCHEN

CLEANERS

Area:

Scale:

Dwg No:

Drawn:

Dwg Title:

Date:

Site:

Rev No:

JAN '15MD

1/200

PROPOSED FIRST FLOOROPTION 12

SWINDON

DELTA 900 Crown copyright and database rights 2012. Ordnance

Survey 0100031673

No responsibility to the accuracy of all informationincluding any building and underground services shownis taken. Any services are indicative only and should bechecked on site. The drawing must never be used for

setting out of works

All dimensions and sizes to be verified on site.

Do not scale from this drawing.

The accuracy of these drawings relies on the feedbackfrom the users. If any discrepancies are discovered,

please call. Tel: 01865 484637

First Floor



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Dialogue Semi-Conductor

Delta Tennis Centre

Alcatel Lucent

Mini

Honda

McDonalds

Orbit Centre

Spectrum Porsche

SWINDON TOWN CENTRE

JCT 14 M

4



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Refurbishment worksOxfordBrookesUniversityhasspentover£3monfittingoutthebuildingwith£5.4mbeingapprovedforthetotalrefurbishment.Thebuildingnowcontainsthefollowingfacilities:-

› 10 classrooms› Abrandnewlibrary› A200-seatlecturetheatre› A“skills”laboratory› Afullyfittedoutoperatingtheatre› Ageneralward› A new canteen› AllWC’shavebeenfittedoutandashowerroom incorporated. › ThebuildingisnowfullyDDAcompliant

The new surgery is for the Operating Department PracticecoursesforOxfordBrookesUniversity.Thisbuildingisaresultofincreasingdemandfromstudentsfornursingandhealthcarecourses.

Site Area2.181acres(0.882hectares)andasiteareaof32.24%.

AccommodationFloor Description Area sq ft Area sq m

1st Floor Offices 15,314 1,422.67

Ground Offices 15,291 1,420.53

TOTAL 30,605 2,843.20



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AvailabilityAvailability has reduced to 750,000 sq ft, falling over250,000 sq ft in the last 5 years. With the conversionto residential within the town centre itself, again thereis a diminishing supply. There is currently no Grade A office space available in Swindon and there are no new developmentsunderway.

Take-upOver the last 12 months there have been 91 transactions on 248,259 sq ft.

Rental LevelsPrime headline rents now stand at £17.50 per sq ft. Experian forecast an average rental growth figure of 1.8%perannumoverthenext5yearsinSwindon.Therefore,itis anticipatedthisheadlinerentwillreach£19.00persqftby2020.

MarketCommentarySwindon is a employment area in Southern England with virtually all of the South East, SouthWest and SouthWaleswithin a 2.25 hour drivetime.

Due to excellent road and rail links, the town is an office centre for a number of the UK’s major companies including English Heritage, the National Trust, Nationwide Building Society and Zurich Insurance. The office market enjoys a wide range of sectors with the Financial & Business Services sector being the biggest employerinthetown.

SupplySupply stands at 5.925m sq ft and there is anon-going restriction of the market across all offices with increasing rental levels and reducing incentives. With a lack of land supply, there are limited options for developers and occupiers alike.

TenureThepropertyisheldonaleaseholdforatermof125yearsfrom27thFebruary1987(circa96 years remaining). The headlease is subject to a current annual headrent of £30,000 per annum. This head rentiscalculatedeachyearonthe24thDecembertothehigherof£30,000perannumor10%ofrentsreceivedbythetenantfromanyunderleases.Ifthepropertyorpartofthepropertybecomesvacantthentherentwillagainbe£30,000perannumor10%ofmarketvalue.

TenancyThepropertyislettoOxford Brookes University for a term of 15yearsfrom23rdMay2016,expiring22ndMay2031.Thereisatenant’sbreakoptionon22ndMay2026with12months

notice. There are 9.65 years remaining to the break.Thecurrentpassingrentstandsat£308,345 per annum,equatingto £10.07 per sq ft,whichisbasedon77.5%ofofficerentsinthearea.Theleaseissubjecttoupwardonlyrentreviewseveryfiveyears.Therentreviewisalsobasedonthehigheroftherentpriortoreviewor77.5%oftheMarketRentofthepremises. Therefore the net rent is £278,345.00 per annum.

Covenant InformationOxford Brookes University for the year ending 31st July2015 had a Total Income of £180.2m(£175.7m-2014)andan EBITDA of £24.9 m(£25.5m-2016).TheUniversityhadatotalof 17,271 students (22.97% Part Time) and employed 2,847staff. There was a surplus of £6.9m£9.9m-2014).

Overthelast12monthstheaverageachievedrentonGradeBrefurbishedspacestoodat£13.50persqft.

KeytransactionswithintheSwindonmarketthatwe considercomparableare:-

› Delta 100, Delta Business Park, Swindon –9,602sqftwasletataheadlinerentof£14.00per sq ft. (June 2016)

› Unit 11, Pine Court, Swindon –2,013sqftwasletat£14.00persqft.(May2016)

› Unit 20, Greenbridge Road, Swindon –1,507sqftwasletat£13.00persqft.(Feb2016)

› Minton Place, Station Road, Swindon –1,178sqftwasletat£13.75persqft.(Dec2015)



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Date Address Area sq ft Purchaser Tenant Term Certain

Price Gross Price psf CV

NIY

June 2016 AspectPark,WakefieldHouse,Swindon 170,322 CLAL Nationwide 12 £24m £150 6.50%

May2016 WindmillHillBusinessPark,Swindon

102,992 Palm Capital Multi-let 5 £15.85m £164 8.37%

April 2016 HinsherwoodBuilding,Oxford 31,567 MayfairCapital HolidayLettingsLtd 4 £9.6m £323 6.24%

March 2016 TrimbridgeHouse,Bath 20,959 ScotsgroveHoldingsLtd Investment Funds Direct Ltd 5.25 £6.5m £331 5.85%

August2015 EndeavourHouse,Langford BusinessPark,Kidlington

23,414 Standard Life Bio-Rad 5 £4.755m £216 8.25%

May2015 TheGeminiBuilding,Didcot 27,692 Development Securities AEATechnology 10 £4.3m £165 8.67%

April 2014 InterfaceHouse,BinknollLane,Swindon 35,055 MayfairCapital SwindonSiliconSystemsLtd 16 £4.65m £141 7.76%

Investment ComparablesTheSouthEastofficemarketlooksincreasinglyinexpensiveasinstitutionalandprivateinvestorsarehavingalookfurtherintotheregions.Swindon,withitsexcellentlocationhasbenefitedfromthisandwiththeforecastofrentalgrowth,weexpectitspopularitytocontinue.



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VATTheproperty is elected forVATand it is envisaged that thepropertywillbesoldbywayofaTransferofaGoingConcern(TOGC).

EPCC69.

ProposalWe are instructed to seek offers in excess of £3,475,000 (Three Million, Four Hundred and Seventy Five Thousand Pounds),whichreflectsaNIY of 7.52%basedonpurchaser’scostsof6.50%,andacapitalvalueof £120 psf gross.

Further Information

Andrew DobsonT 0203 667 8402E [email protected]

Philip CooperT 0203 667 8401E [email protected]

St.Christoper’sHouse,St.Christoper’s Place, London,W1U1NZT 0203 667 8400

Misrepresentation Act: Theseparticularsareissued,withoutresponsibilityonthepartofthevendor,BCMRE,oranyoftheirrespectiveemployeesoragentsandserveonlyasanintroductoryguidetothepremises.Nopartofthemconstitutesatermofacontractorastatementorrepresentationuponwhichanyreliancecanbeplaced.Anypersonwithanactualorprospectiveinterestinthepremisesmustsatisfythemselvesastoanymatterconcerningthepremisesbyinspection,independentadviceorotherwise.BCMRE,noranyoftheiremployeesoragentshaveauthoritytomakeorgiveanyrepresentationorwarrantyastothepremiseswhetherinthisreportorotherwise.UnlessotherwisestatedallfiguresquotedaretobeconsideredexclusiveofVAT.Theplansarepublishedforconvenienceofidentificationonly,andalthoughbelievedtobecorrect,theiraccuracyisnotguaranteedanddoesnotformpartofanycontract.October2016. DesignandproducedbyPLPLondonT:02031373079•plplondon.com

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