exeter street, plymouth pl4 0ah prominent...

WEST POINT & CENTRE COURTEXETER STREET, PLYMOUTH PL4 0AH

PROMINENT CITY CENTRE OFFICE INVESTMENT

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com

WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

INVESTMENT SUMMARY■ Location Plymouth is the principal city of Devon, 118 miles (190 km) south west of Bristol, 55 miles (89 km) east of Truro and 44 miles (71 km) south west of Exeter. It is situated on the A38 and A30 providing access to the M5 and the national motorway network.

■ Situation The property is situated at the eastern end of the city centre fronting the A374 Exeter Street linking to the A38 to the east.

■ Description Two adjacent office buildings; Centre Court is a two-storey office building fronting the A374 and West Point is a four-storey building, accessed from Ebrington Street. The two buildings are linked with a courtyard.

■ Accommodation 27,815 sq ft (2,584.01 sq.m.) with 42 car parking spaces (1:662 sq.ft.).

■ Site Footprint Comprises 0.45 acres (0.182 Hectares)

■ Tenure Three titles - two are Freehold and one is Long Leasehold relating to a substation in the corner of Centre Court.

■ Tenancies The building is let to three tenants, The Secretary of State for Communities and Local Government, The First Secretary of State and Plymouth Community Healthcare CIC. The Wault is 4.9 years to expiry (2.7 years term certain).

■ Rent The property produces a total rent of £307,750 per annum equating to £11.06 per sq.ft. overall.

■ Proposal We are instructed to seek offers of £3,000,000 (Three Million Pounds only) which reflects a NIY of 9.64% based on purchaser’s costs of 6.45% and a low capital value of only £114 psf inclusive of acquisition costs.



PONTYPRIDDSWANSEA

LLANELLI

CARMARTHEN

A470

A465

A470

A470

A483

CHICHESTER

M3

M4

M4

M40

M40

M40

M25

M25M1

M1

M1

M20

M20

M2

M25

M25

M11

M23

M4

M3

M27 A3 (M)

A1 (M)

ALTON

GUILDFORD

BASINGSTOKE

SOUTHAMPTON

SWINDON

WESTON-SUPER-MARE

BRIDGE WATER

TAUNTON

WEYMOUTHEXMOUTH

DORCHESTER

YEOVIL

POOLE

GLASTONBURY

GLOUCESTER

PONYTPOOL

CHELTENHAM

BANBURY

STRATFORD-UPON-AVON

CIRENCESTER

CHIPPENHAM

BATH

OXFORD

WORCESTER

HEREFORD

CARDIFF

NEWPORT

BARNSTAPLE

WELLINGTON

MINEHEAD

NEWQUAY

FALMOUTH

DARTMOUTH

LAUNCESTON

TORQUAY

EXETER

SALISBURY

ANDOVER

NEWBURY

BRISTOL

WINCHESTER

BROCKENHURST

BOURNEMOUTH

ISLE OF WRIGHT

FARNHAM

PETERSFIELD

PORTSMOUTH

READING

BRACKNELL

SLOUGH

WATFORD

HATFIELDHARLOW

WAREHERTFORD

HIGHWYCOMBE

WESTDRAYTON

ROYALTUMBRIDGE

WELL

STALBANS

HEMELHEMPSTEAD

BISHOP’SSTORTFORD

AYLESBURY

DUNSTABLE

LUTON STEVENAGE

NORTHAMPTON CAMBRIDGE

NEWMARKET

AMERSHAM

CROYDON

SOUTHAMPTON

PORTSMOUTH

HEATHROW

STANSTED

LUTON

CHELMSFORD

BASILDON

SHEERNESS

MARGATEROCHESTER

MAIDSTONE

ASHFORD

UCKFIELD

NEWHAVENBRIGHTON

EASTBOURNE

HASTINGS

FOLKESTONE

DOVER

LEWES

SOUTHEND-ON-SEA

CLACTON-ON-SEA

COLCHESTER

FELIXSTOWE

HARWICH

IPSWICH

SUDBURY

SEVENOAKS

A22

A22 A26

A23

A3A31

A33

A41

A5

A5

A44

A44

A40

A420

A429

A429

A46

A6

A6

A1

A1

A11

A14 A14

A12

A12

A414

A414

A120

A505

A13

A2

A10

A36

A36

A36

A37

A46

A3

A24REIGATE

CRAWLEY

A272A272

A338

A350

A354

A354

A303

A350

A346

A433

A343

A322

A343

A303

A338

A338

BEDFORD

MILTONKEYNES

GATWICK

S TR A I TO F

D OVE R

ENGLISH CHANNEL

ENGLISH CHANNEL

NORTHSEA

LONDON

PLYMOUTH

LONDON CITY

BRISTOL

A38M5

M5

M5

M5

M48

M50

M4

M4

A39

CARDIFF

SWANSEA

A37

A361

A361

A449

A48

A40

A40

A388

A386

A30

A386

A377

A380

A385

A38

M5

EXETER

PLYMOUTH

BRISTOL CHANNEL

BRECON BEACONSNATIONAL PARK

DARTMOORNATIONAL PARK

LOCATIONThe property is located in Plymouth, which is the principal city of Devon and the second largest conurbation in the South West of England in terms of both employment and population. It is located 190 km (118 miles) south west of Bristol, 89 km (55 miles) east of Truro, and 71 km (44 miles) south west of Exeter.

The city has excellent road communications with both the A38 and A30 dual carriageways providing access to the national motorway network at Junction 31 of the M5 motorway at Exeter.

Plymouth has a mainline railway station with a direct journey time to London of just over 3 hours whilst there are other direct services to the Midlands, the North, South Wales and Scotland. Exeter Airport is 71 km (44 miles) away.

The city is also classed as a major port offering both passenger and vehicle ferry services currently operated by Brittany Ferries.

DEMOGRAPHICSThe city has a population of 462,000 within the primary catchment.

Public Services makes up the largest share of total employment in Plymouth at 37.2%

Plymouth is a major residential expansion area with a projected population growth of 0.8% by 2017. A programme to build 5,500 new homes on the edge of the city began earlier this year.

Plymouth University is home to 35,000 students and 3,000 staff with the main campus located a short walk from the subject property.



8

15

1

2

6

3

5

4

7

9

13

12

10

11

14

West Point & Centre Court

Old Tree Court

Unite Student Accommodation

Jury’s Inn

North Quay House

Salt Quay House

Mast House

Premier Inn

Barbican Leisure Scheme

National Marine Aquarium

Sutton Harbour Marina

Bretonside bus station

Drakes Circus shopping centre

Roland Levinsky Building

Plymouth College of Art

& Design

Beaumont

2

101

9

3

11

7

8

156

145

134

12

KEY

16

16



Reception – West Point Office accommodation – HMRC

Subject property – view from Exeter Street

SITUATIONThe properties are situated in a very prominent location at the eastern end of the city centre, fronting onto the A374 Exeter Street which is the main arterial route into the city from the Marsh Mills junction of the A38.

Close by lie the amenities of the main retail and leisure provision, including Drakes Circus Shopping Centre, Sutton Harbour Marina (home to the National Marine Acquarium), and the Barbican Leisure scheme. Plymouth University’s main campus lies close by, as does the Plymouth College of Art and Design, and many of the surrounding buildings provide residential accommodation for students.

Bretonside Bus Station, situated directly south of Drakes Circus, is due to see construction start soon on a large new cinema-anchored leisure extension. This will cement the location as the premier family leisure destination in the city.

The immediate area is also home to the city’s grade A office provision, including Old Tree Court and Salt/North Quay House’s. Significant occupiers include Plymouth University, Foot Anstey, DWP, the GPU, Cygna and Capita.

DESCRIPTIONThe properties comprise two adjacent office buildings with ancillary car parking constructed in 1990/91.

West Point provides accommodation over basement, ground and three upper floors, and Centre Court provides accommodation over ground and first floors. Both properties provide good quality modern office accommodation benefitting from suspended ceilings and raised floors.

ACCOMMODATIONCentre Court provides a total of 12,900 sq.ft. over two floors, and West Point a total of 14,915 sq.ft. over 5 floors. In total the property provides 42 car parking spaces, located in the basement, opposite the reception of West Point, and on the small plot of land along Hill Street.



TENUREThe property is held under three titles, two freehold and one long leasehold. Further information is available upon request. The long lease relates to a substation situated in the corner of Centre Court.

Building Floor Tenant Floor Area sq.ft.

Rent p.a.

Rent psf

Lease Start

Expiry Break Rent Review

Term Certain

Comments

West Point Part 2nd Floor

Secretary of State for Communities & Local Government (UK Border & Immigration Agency)

2,269 £32,300 £14.24 25-Mar-91 24-Mar-16 n/a n/a 0Occupied by UK Border and Immigration Agency which is in full occupation, holding over

Ground, 1st, Part 2nd & 3rd Floors

First Secretary of State (HMRC)

12,646 £136,500 £10.79 21-Mar-09 20-Mar-24 2-April-21 25-Mar-19 4.45 Occupied by HMRC and UK BIA

Centre Point AllPlymouth Community Healthcare CIC (Livewell Southwest)

12,900 £138,950 £10.77 25-Mar-16 24-Mar-20 30-Apr-18 1.56

TOTAL 27,815 £307,750 £11.06 2.7

TENANCIESThe properties are let in accordance with the schedule below. All the accommodation is fully occupied by the various tenants.

COVENANTSPlymouth Community Healthcare CIC– otherwise known as Livewell Southwest is directly responsible for the Plymouth area, as well as for co-ordinating work with the other south west PCTs.

HMRC and UKBA – both of these tenants are central government departments and therefore offer undoubted covenants. The GPU is responsible for the property estates of both departments.

SERVICE CHARGEThe service charge budget for y/e Dec 2016 is £179,320 which equates to £6.48 psf. Further details are available upon request.



PLYMOUTH OFFICE MARKETThe supply of offices in Plymouth City centre is primarily made up of secondary period or post war developments. Plymouth witnessed a spate of development in the 1960’s with schemes such as the Civic Centre being built, and since then very little development has taken place.

That which has taken place has been focused on Sutton Harbour, where Sutton Harbour plc has developed a number of buildings over the last 8 years and in the process have created what now constitutes the prime pitch within the City centre.

Although there is a surfeit of Grade B accommodation, the city centre currently has a critical under-supply of Grade A accommodation. In fact there is currently no grade A availability within the city centre, since the letting of the last floor at North Quay House in Sutton Harbour to Rame Consulting in 2015.

The most recent lettings in accommodation which are comparable to the subject property are as follows:

SALT QUAY HOUSE, SUTTON HARBOURIn Feb 2014 Bishop Fleming took an 8 year lease (TBO fifth year)on 5,900 sq.ft. at a headline rent of £15.50 psf with a 3 month rent free period.

NORTH QUAY HOUSE, SUTTON HARBOURIn August 2014 Rame Consulting took a 10 year lease (TBO fifth year) on 4,000 sq.ft. at a headline rent of £15.50 psf with 6 months rent free period.

The immediate facility is home to a number of central government departments. For example Old Tree Court which is situated directly opposite the subject property is occupied by the Department of Work and Pensions.

DEVELOPMENT PIPELINEThere is very little significant office development planned in the city centre. Sutton Harbour plc have one site upon which offices could be developed, but build costs mean that a pre-let at £20 psf is required.

The immediate vicinity is also seeing some significant development in the student sector. For example on Coburg street Knightsbridge Student Housing are developing a 22 storey scheme of 507 beds. This activity demonstrates the strong potential of the location for alternative uses.

Bretonside bus station is currently the subject of a proposal by British Land to develop a cinema-anchored leisure scheme which will cement this location as the prime family leisure destination in the city.

ASSET MANAGEMENT OPPORTUNITIES■ The tenants fully utilise the accommodation, offering the opportunity to re-gear the existing leases. Part 2nd

floor West Point has already expired. ■ The passing rents offer potential for future growth. Supply of office floors of 10-15,000 sq.ft. are extremely

limited in central Plymouth, and the PCT and GPU rents of £10.70 psf are significantly below the levels of recent comparable lettings.

■ Explore the development potential of the site. There would be an opportunity to significantly intensify the development if VP could be secured, and the site would suit student accommodation or hotel uses particularly well.

Old Tree Court



EPCAn EPC has been commissioned and is available upon request.

VATThe property has been elected for VAT and therefore it is envisaged that the sale will be treated as a transfer of a going concern (TOGC).

CONTACTFor further information or to arrange an inspection please contact:

TIM [email protected]: +44 (0) 203 667 8405M: +44 (0) 7789 690 863

ANDREW [email protected]: +44 (0) 203 667 8402M: +44 (0) 7789 690 753

TOM [email protected]: +44 (0) 203 667 8406M: +44 (0) 7789 690 753

Misrepresentation Act. All premises are offered subject to contract and availability. These particulars are issued, without responsibility on the part of the vendor, BCM, or any of their respective employees or agents and serve only as an introductory guide to the premises. No part of them constitutes a term of a contract or a statement or representation upon which any reliance can be placed. Any person with an actual or prospective interest in the premises must satisfy themselves as to any matter concerning the premises by inspection, independent advice or otherwise. Neither BCM, nor any of their employees or agents have any authority to make orgive any representation or warranty as to the premises whether in these particulars or otherwise. Unless otherwise stated all figures quoted are to be considered exclusive of VAT. October 2016.

BCMRESt Christopher’s House St Christopher’s Place London W1U 1NZ

PROPOSALWe are instructed to seek offers in excess of £3,000,000 (Three Million Pounds only) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 9.64% after allowing for purchaser’s costs of 6.75%. This would equate to a very attractive capital value of £114 psf including acquisition costs.

exeter street, plymouth pl4 0ah prominent...

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