derby college final - gerald eve · derby college is a further education centre which was in...

DERBY COLLEGE - THE JOHNSON BUILDING

Locomotive Way | Pride Park | Derby DE24 8PU

DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU2

INVESTMENT SUMMARY

■ The Johnson Building, part of Derby College, presents itself as a rare opportunity to acquire a modern, purpose built further education college building.

■ Located on Pride Park, a highly successful mixed used business park in Derby City Centre, home to major occupiers such as Rolls-Royce, Royal Mail and Mercedes Benz.

■ The property benefits from excellent transport links, located 0.25 miles from Derby Train Station and 8 miles from J25 of the M1.

■ Long established, Derby College consists of 4 campuses, with The Johnson Building forming part of The Roundhouse Campus.

■ Purpose-built further education facility totalling 93,190 sq ft, constructed in 2008.

■ Site area of c. 3.04 acres, which reflects a low site density of c. 47%, with c.125 car parking spaces.

■ Let to Derby College until 19 October 2029 with 11.9 years unexpired term.

■ Current passing rent of £848,558 pa (£9.11 psf) subject to a fixed uplift in October 2019 to £960,066 pa (£10.30 psf) and a further 2.5% pa compounded rental uplift in October 2024 to £1,086,229 pa (£11.66 psf).

■ The vendor will top-up the rent to the fixed uplift in 2019.

■ Offers are sought in excess of £13,330,000. A purchase at this level reflects an attractive net initial yield of 6.75%, rising to 7.64% at a fixed increase in October 2024, and a capital value of £143 psf.


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3031

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2122

2325

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1. SNC Lavalin2. Resonate3. Software AG4. Seven Restaurant 5. Holiday Inn & Harvester6. Pride Veterinary Hospital 7. Chiquito 8. Seat9. VW10. Mortgage Advice Bureau 11. Geldards Law Firm12. Derwent Living

13. Miller Homes14. HSBC15. Assystem16. Chartwell17. Rayburn Tours18. Business Centre19. ISYS20. U/O David Brown 21. Pentahotel22. Derby College 23. Derby College 24. Derby College

25. Derby Station26. Royal Mail 27. Rolls-Royce28. Mercedes Benz29. David Lloyd30. Webhelp31. Store First Derby32. Network Rail33. Ford34. Derby County

Football Club

The Johnson Building


The Johnson Building is located at the Roundhouse Campus of Derby College within Pride Park. Pride Park is one of the UK’s most successful mixed use business parks. A number of offi ce, leisure, car showroom and hotel operators are also on the park such as David Lloyd, Derby County Football Club, Rolls-Royce, VW, Mercedes Benz, Holiday Inn and Harvester.

Situated just one mile from the centre of Derby and the Intu Shopping Centre, The Johnson building is perfectly located with excellent connections from the A52 and Junction 25 of the M1 motorway. It is also approximately 4 miles south east of Derby train station, which provides a direct link to Sheffi eld, Crewe, Leicester, Nottingham and London. Due to these outstanding transport links, Derby College attracts students from all over the county.

In 2016 the population of Derbyshire was estimated to be 787,000, whilst the population of Derby was estimated to be 254,374.

Of the total population of Derby, 5.4% are in the 16-19 age group band, which is a higher proportion than the average for England for this age band.

Approximate distances from the property

Derby - Demographics

Situated at the heart of Pride Park, The Johnson Building is perfectly positioned to attract those wanting to further their education.

Dartford

Bognor RegisPortsmouth

Chichester

Brighton

Colchester

Ipswich

Cambridge

BishopStortford

Bedford

Northampton

MiltonKeynes

Oxford

Bury St Edmunds

Sudbury

Buckingham

Stevenage

RoyalLeamington

Spa

Winchester

Andover

Newbury

BasingstokeWoking Sutton

Horsham

Maidenhead

HighWycombe

Slough

St.Albans

Sevenoaks

RoyalTunbridge Wells

Eastbourne

Godalming

Swindon

Stratford-upon-Avon

Cirencester

Chippenham

Bath

Salisbury

Bournemouth

Southampton

Weymouth

Shaftsbury

Marlborough

Cheltenham

Gloucester

GuildfordFarnborough

Crawley

Croydon

Bromley

EnfieldWatford

Maidstone

Gatwick

Heathrow

Chelmsford

Stanstead

Aylesbury

Reading

Yeovil

Taunton

Exeter

Torquay

PlymouthNewquay

Barnstaple

Western-Super-Mare

Newport

Swansea

Llanelli

Aberystwyth

Hereford

Monmouth

Worcester

Kidderminster

Shrewsbury

Redditch

WolverhamptonNuneaton

Peterborough

STOKE-ON-TRENT NEWARK-ON-TRENT

LINCOLNChesterfieldChester

Colwyn Bay

OldhamBolton

Blackburn

Southport

Blackpool

Preston

Wigan

Stockport

Huddersfield

Halifax

Grimsby

ScunthorpeDoncaster

Rotherham

Barnsley

Hull

YorkHarrogate

Scarborough

Morecambe

MiddlesbroughDarlington

Carlisle

Dumfries

Durham

Sunderland

Kilmarnock

East Kilbride

Livingston

Greenock

St. Andrews

Dunfermline

Stirling

PerthDundee

Wokingham Bracknell

Poole

Warminster

Southend-on-Sea

Norwich

Bradford

Felixstowe

Carrickfergus

Bangor

Newtonards

ComberLisburn

Lurgan

Ballymena

Sittingbourne

Abingdon

Runcorn

Knowsley

CREWE

Cumbernauld

Yardley

Rugby

Whetstone

Isle ofMann

M40

M1

M4

M3

M23

A1MM11

M25

M25

M25

M25

M26

M2

M4

M4

M3

M5

M5

M5

M5

M5

M5

M4

M4M48

M50

M40

M42

M42

M6

M6

M54

M6

M1

M1

M1

M1M6

M6

M6

M6

A74M

A74M

M53

M56

M57

M55

M60

M61

M55

M62

M62

M66

M62M62

M62

M18

M18

M18

M180

A1M

A1M

A1M

A1M

A1M

M74

M74

M8

M77

M80

M8

M9

M9

M90

M1

M1

E01

E01

M3

M3

M2

E01

N7

E20

M9

M9

E01

E01

M7

M8

E201

M6

M3

M3

M3

M58

M8

M73M80

M69

M6TOLL

A34

A34

A420

A40A418

A346

A34

A429

A338

A303

A37

A354

A361

A350

A37

A35

A31

A35

A303

A37

A361

A38

A361

A377A386A39

A30

A30

A386

A38

A39A30

A390

A31

A272

A27

A21A272 A259

A229

A2070

A28 A2

A28

A2

A21

A3

A24

A130

A127

A12A413

A41

A414

A120

A10

A10

A5

A1

A131

A43

A429

A44

A419

A48

A424

A465

A49

A456

A44

A449

A465

A438

A470

A470

A470

A487

A44

A40

A40

A483

A26

A22

A36A350

A30

A358

A417

A429

A46

A433

A303

A487

A487

A44A470

A470 A483

A483

A458

A494

A5

A470

A458

A41

A495

A494

A5

A470

A487

A55A55

A53

A53

A495A483

A50

A52

A515

A449

A442

A606

A15

A1

A423

A34

A141

A14

A38

A11A6

A47

A148

A1065

A1065

A1065

A134

A140

A141

A134

A143

A12

A17

A14

A14

A14

A428A6

A45

A605

A43

A16

A52A52

A17

A158

A16

A46A6A38

A444

A511

A515

A523

A34A46

A46

A16A156

A614

A631

A1

A61A6

A60

A623

A628

A523

A34

A15

A47

A458

A15

A614

A19

A59 A166

A64A19

A170

A565

A666A6033

A59

A65 A61

A19

A165A1079

A171

A66

A595

A591

A6

A69

A68

A68

A595A596

A68

A696

A1

A189

A697

A697

A1

A1

A68

A701

A702

A702

A721

A7

A75

A76

A701

A75

A75

A77

A70

A76

A71

A737

A78

A811A82

A84

A85

A85

A9

A91

A915

A91

A92A915

A92

A82

A85

A816

A83

A9

A90

A90

A72

A66

A698

A66

A66

A66

A685

A41

A49

A5

A483

A12

A12

A133

A140

A140

A146

A47

A646

A83

A985

A71

A7

A7

A1

A607

A26

A26

A7

A24

A2

A36

A8

A52

A1

A27

A28

A29

A44

A29

A505

A6

A5

N2

A4

A4A32

N15A5

A2

N13

N56

N54

A3N16

A509

N87

N3

N55

N2

N51

N52

N4

N55

N5

N63

A75

N80N52

N62 N7

N81

N81

N62

N76

N77N78 N80

N30

N25

E01

N24

N25

N25

N24

A775

J9

J13

J8

J15

Pontypridd

BIRMINGHAM

NOTTINGHAM

SHEFFIELD

LEEDS

LIVERPOOL

NEWCASTLEUPON TYNE

GLASGOW

EDINBURGH

CARDIFFBRISTOL

DUBLIN

BELFAST

LEICESTER

MANCHESTER

BIRMINGHAM

NOTTINGHAM

SHEFFIELD

LEEDS

LIVERPOOL

NEWCASTLEUPON TYNE

GLASGOW

EDINBURGH

CARDIFFBRISTOL

DUBLIN

BELFAST

LEICESTER

MANCHESTER

A406

Loughborough

Folkstone

Epsom

Dorchester

COVENTRYCOVENTRY

DERBY

Widnes

Wrexham

STAFFORDSTAFFORD

DERBY

CREWE

STOKE-ON-TRENT

LINCOLN

NEWARK-ON-TRENT

M27

A601

A5194

A514

A6

A6

Derby Station

The Johnson Building

Pride Park

A52

DERBY

RIVER DERWENT

LOCATION

Derby Train Station 0.25 miles

Derby City Centre 1 mile

M1, J25 8 miles

Nottingham City Centre 16 miles


SITE PLAN

The Johnson Building is a purpose built, further education facility which totals 93,190 sq ft, constructed in 2008.

The building houses a variety of accommodation and facilities which are primarily focussed around vocational training in sport, motor vehicle repairs and construction.

The ground floor includes a large sports hall, gym, dance studio, reprographics room, canteen, two large mechanic workshop facilities, a smaller mechanic garage (open to the public), and a construction workshop. Each of these elements has its own roller-shutter door providing flexibility of use. The first floor offers classrooms, a large IT suite and exam room.

At the front of the building is a large two-storey office block providing a large reception area, kitchen, canteen and board rooms at ground floor, with a large open plan office and further smaller offices at first floor level.

Externally, The Johnson Building has secure car parking areas to the front, side and rear with c. 125 spaces.

*Indicative purposes only

DESCRIPTION


ACCOMMODATIONThe building contains a variety of accommodation types.


TENURE

TENANCY SUB-TENANCY

The property is held freehold.

The property is let to Derby College until 19 Oct 2029, currently at a passing rent of £848,558 pa (£9.11 psf) subject to five-yearly fixed rental uplifts equivalent to 2.5% pa compounded. The next rental uplift is 20 Oct 2019 where the rent reaches £960,066 pa (£10.30 psf) with the final uplift in October 2024 reaching £1,086,229 pa (11.66 psf).

The vendor will top-up the rent to £960,066 pa.

DHU 111 (East Midlands) CIC have sub-let approximately 27,674 sq ft of The Johnson Building. Let on a term of seven years from 24 May 2017 until 23 May 2024 with a break on 23 May 2022. Rent of £217,688 pa (£7.87 psf) with a rent review on 20 October 2019 from which a fixed rental uplift equivalent to 2.5% pa compounded will apply.

A service charge is payable. The base service charge is currently £25,333 pa uplifted annually in line with increases in the General Building Cost Index.

DHU 111 provides NHS 111 and Out-of-Hours call centre and medical services for Derbyshire, Nottinghamshire, Leicestershire, Rutland and Lincolnshire.

Let for a further 11.9 years with guaranteed fixed rental uplifts in October 2019 and October 2024.


DERBY COLLEGE

Derby College is a further education centre which was in established in the 1960s. The Johnson Building principally provides for Derby College mechanics and engineering courses, but also leisure, sports, construction and general learning for approximately 600 full time students. There is close collaboration with surrounding workplaces within Pride Park to offer hands-on experience for the courses which Derby College provide such as at Rolls-Royce and Ford. The college is a member of the prestigious Collab Group of high-performing further-education institutions.

The College is judged as “Good” by Ofsted in all curriculum areas. Its engagement with employers is recognised as outstanding by Ofsted in their inspection report and in the Chief Inspector’s Annual Report published in December 2016.


FUNDING & COVENANT

Derby College operates as a further education college and therefore places considerable reliance on continued government funding. From an income perspective, 77% of the college’s revenue is public funding primarily through the Education Funding Agency (Department for Education) and Skills Funding Agency (Department for Business Innovation & Skills). In reference to fi nancial statements for year ending 31 July 2016, Derby College’s total income for the year was £48,159,000 and total expenditure £51,533,000.

The College is required to complete the annual Finance Record for the Skills Funding Agency and for 2016 the College is deemed to be “Satisfactory” in regards to fi nancial health.

Funding is calculated using a specifi c formula which is driven by student recruitment and includes factors which refl ect student retention, higher cost subjects, disadvantaged students and area costs.

The Further Education sector is currently undergoing change, largely prompted by the obligation for all children to undertake education until 18, formerly 16. The Government is therefore focusing on the Technical and Further Education Bill. 2017 is set to be a hugely signifi cant year for Apprenticeships and Skills as the Apprenticeship Levy comes into force and £2.5 billion is invested in apprenticeships by 2019-20.

DHU 111 provides the NHS 111 and Out-of-Hours services for Derbyshire, Nottinghamshire, Northamptonshire, Leicestershire, Leicester, Rutland and Lincolnshire. It is a ‘not-for-profi t’ organisation. DHU 111 is consolidating from several other offi ces around the East Midlands into this facility, which will become its main call centre operation. Approximately 150 staff are due to move in to the offi ce in the coming months in a phased manner.

DHU 111 (East Midlands) CIC was incorporated in 2016 as a subsidiary of DHU Health Care CIC, to support East Midlands NHS 111 calls. The company’s single largest contract was successfully retendered and awarded for a fi ve year term with the possibility of a further two year extension to 30 September 2023. The contract commenced on 27 September 2016.

DHU 111 (East Midlands) CIC - Sub-Tenant of Part

Derby College - Tenant


EPCThe property is rated C55. Further information available on request.

CAPITAL ALLOWANCESFurther information available on request.

VAT The property has been elected for VAT. It is proposed that the sale will be treated as a Transfer Of a Going Concern (TOGC).

For further information or to arrange an inspection, please contact:

John Rodgers

Richard Lines

T: 020 3486 3467M: 07810 307422 [email protected]

T: 020 7333 6274M: 07801 625680 [email protected]

Nick Ogden

Joanna Ireland

T: 020 3486 3469M: 07825 [email protected]

T: 020 3486 3485M: 07464 [email protected]

CONTACT

PROPOSALOffers are sought in excess of £13,330,000. A purchase at this level reflects an attractive net initial yield of 6.75%, rising to 7.64% at fixed uplift in October 2024, and low capital value of £143 psf. Purchasers costs are assumed to be 6.72%.

Conditions under which these particulars are issued: All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:- 1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract. 2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors. 3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property. This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve’s liability which cannot be excluded or limited by law. Particulars issued November 2017.

derby college final - gerald eve · derby college is a further education centre which was in...

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