BUILDINGS 2, 4 & 5 OLYMPUS PARK BUSINESS CENTRE, GLOUCESTER, GL2 4DH

OFFICE INVESTMENT OPPORTUNITY

INVESTMENT SUMMARY• Three detached office buildings totalling circa 28,298 sq ft.

• Two storey, pavilion style self-contained office buildings constructed

in 1987.

• Located on Olympus Park Business Centre, an established commercial

area of circa 35 acres.

• Located two miles south west of Gloucester city centre.

• Excellent access and direct frontage to the Ring Road and A38;

providing easy access to motorway network.

• Freehold.

• Two of the buildings let to the strong covenants of Dutypoint Limited

and The Diocese of Gloucester Academies Trust, third building

currently vacant.

• Total rental income of £332,324 per annum including a vendor

12 month rent, rates and service charge guarantee on the vacant

building 5.

• Set in mature landscaped surroundings.

• Potential for alternative uses such as residential – existing hotel and

residential uses adjacent.

• Seeking offers in excess of £3,565,000 (Three Million, Five Hundred and Sixty Five Thousand Pounds) reflecting a net initial yield of 8.75%

assuming purchasers costs of 6.5%. This reflects a capital value of

£125 per sq ft.

LOCATION The historic Cathedral City of Gloucester is the administrative centre of Gloucestershire

and considered one of the principal commercial centres of the south west of England.

Gloucester is situated on the River Severn and lies close to the Welsh Border,

approximately 10 miles west of Cheltenham, 32 miles to the north east of Bristol, 45

miles south west of Birmingham and 94 miles west of London.

Gloucester benefits from excellent road communications, being located at the

intersection of the A40 and A438, providing a direct link to the M5 at Junctions 11, 11A

and 12. The M5 provides further links to the national motorway network including the

M4, M50, M6 and M42. Gloucester’s railway station provides regular services to London

Paddington with a fastest journey time of approximately 1 hour 45 minutes. Direct

services also operate to Bristol (54 minutes), Birmingham (55 minutes) and Cardiff (1

hour). Bristol International Airport lies approximately 35 miles south of Gloucester, and

offers domestic and international flights.

Gloucester has an urban area population of 136,200 (2011 Census) a catchment

population within 10km of 211,000 and within 20km of 402,000 persons (2011 estimates).

Gloucester’s economy is dominated by service industries with a strong financial and

business service sector. The majority of large employers in Gloucester are public sector

organisations, including education, health and public administration together with

financial and business services. Key employers include the County and City Councils,

Gloucestershire Royal NHS Trust GCHQ and HM Customs & Excise. Large private sector

employers include Dowty Aerospace Propellers, EDF Energy, Ecclesiastical Insurance,

Barnwood Group Ltd and International Plywood Ltd.

CLICK MAPS TO ENLARGE >>

SITUATION Olympus Park Business Centre is an established office park situated

approximately three miles north of junction 12 of the M5 Motorway

via the A38, and two miles south of Gloucester city centre. Local

amenities in the vicinity include Quedgeley Retail Park, a Tesco

Superstore, Costa and various hotels.

The property occupies a prominent corner location at the junction

of Bristol Road and Olympus Park. Occupiers close by include Kier

Group, The Orchid Hotel, Royal Mail, Next, Boots, SA Europe, Yodel

and Geo Technical.

Quedgeley provides an established commercial location due to its

proximity to the city centre and motorway. Access from the motorway

is via the A38 dual carriageway and Olympus Park Business Centre

is situated at the junction of the A38 and A430. The subject site

occupies a prime position, fronting onto the A38.

Occupiers on the nearby retail park include Next, Brantano, Matalan,

a Harverster public house, Tesco superstore/petrol filling station and

the county library.

CLICK PLANS TO ENLARGE >>

Plans are for illustrative purposes only.

DESCRIPTION Olympus Park was constructed in 1987 and comprises a range of office and warehouse/

industrial buildings together with retailing facilities.

Buildings 2, 4 and 5 comprise three, two storey, pavilion style self-contained office

buildings set in landscaped surroundings. Buildings 2 and 4 are arranged as a horseshoe

around a central courtyard area and Building 5 is situated separately and adjacent to the

main estate access road.

The buildings are of concrete frame construction with reinforced concrete floors and

brick elevations beneath pitched tiled roofs. Each building is arranged over ground and

first floors and provides open plan accommodation, which can be divided into cellular

offices.

Internally, the offices are finished to a similar specification as follows:

• Fully accessible raised carpeted floors

• Suspended ceilings with integral light fittings

• Double glazed aluminium framed windows

• Steel framed glazed entrance lobbies

• Gas fired central heating

• 8 person (630 kg) lift in each building

• Male and female WC facilities on ground and first floors in each building. Disabled WC’s

on the ground floor of each building

The properties benefit from attractive car parking ratios with 108 car parking spaces in

total. Building 2 has 27 spaces; Building 4 has 37 spaces and building 5 has 44 spaces.

BUILDING SQ FT SQ M

2 7,521 698.8

4 9,020 838.1

5 11,757 1,092.4

TOTAL 28,298 2,629.3

ACCOMMODATION

BUILDING TENANT SQ FT LEASESTART

LEASE EXPIRY

BREAKOPTIONS RENT PA RENT PER

SQ FT COMMENTS

2 Dutypoint Limited 7,521 18/05/2015 17/05/2020 £83,000 £11.00• Tenant repair obligation limited by

reference to schedule of condition attached to the lease.

4The Diocese of Gloucester Academies Trust

9,020 01/02/2019 31/01/2024 31/10/202031/10/2021 £108,240 £12.00

• Rent start date 1st May 2019• Tenant fitting out for occupation in

September 2019.• Unit will be used as a primary school

under permitted rights.• Tenant repair obligation limited by

reference to schedule of condition attached to the lease.

• Excluded from Landlord and Tenant Act 1954.

5 Vacant 11,757 - - - £141,084 £12.00• Vendor to provide a rent, rates and

service charge guarantee for a period of 12 months from completion of sale.

TOTAL 28,298 £332,324

Buildings 2, 4 and 5 Olympus Park Business Centre

TENANCY

COVENANT Dutypoint Ltd

Operating since 1976, Dutypoint is a leading company in the field of fluid technology with clients both in

the UK and overseas. Dutypoint is a manufacturer of fluid systems, including water pressure booster sets;

innovative combined pump and tank systems; pressurisation units; electromagnetic water conditioners; heat

interface units; packaged pump systems, and associated products.

Headline financial details for the past three years are outlined below:

Year To Date Turnover Pre-Tax Profit Shareholder’s Funds

31/12/2017 £17,044,257 £1,484,613 £2,465,364

31/12/2016 £14,017,423 £1,097,573 £1,631,455

31/12/2015 £13,119,556 £1,386,670 £1,182,943

Year To Date Turnover Pre-Tax Profit Shareholder’s Funds

31/08/2018 £21,213,315 £4,702,962 £31,820,989

31/08/2017 £17,717,745 £5,297,894 £26,250,027

31/08/2016 £14,580,124 £4,906,896 £20,262,133

The Diocese of Gloucester Academies Trust

The Diocese of Gloucester Academies Trust is a multi-academy Trust established by the Diocesan Board of

Education in 2012. There are currently fifteen primary schools and one infant school within the Trust. Fifteen

of the sixteen academies have religious designation as Church of England schools. All of the academies are

located in Gloucestershire Local Authority.

Headline financial details for the past three years are outlined below:

MARKET INFORMATION Occupational Market Commentary

Overall take-up of office space in Gloucester increased by 52% to 220,000 sq ft in 2018, the city’s highest

level for some years. Notable transactions included Ecclesiastical Insurance who plan to relocate from the

city centre to a new 65,000 sq ft building at Arlington’s Gloucester Business Park and entered into pre-let

terms. Demand for out of town space continues to outperform that of city centre space.

Supply of Grade A and secondary space remains at very low levels. The headline rent for Grade A out-of-

town space has risen for the second consecutive year to £21.50 per sq ft. Rents for secondary out of town

space have also risen and are now in the region of £14-£15 per sq ft and we are of the opinion that this rent

would be achievable on Building 5 after refurbishment.

Asset Management Opportunities

•Explore alternative uses for the site such as residential through permitted development rights or hotel use

•Potential to break up ownership and sell buildings to owner occupiers

•Refurbish and re-let Building 5

•Regear lease with Dutypoint

https://www.youtube.com/watch?time_continue=7&v=pDMDc5Dg77A

Tenure Freehold

EPC The EPC ratings are:

Building 2: C62

Building 4: B43

Building 5: C58

Reports are available on request.

VAT

The property has been elected for VAT and this will

be payable on the purchase price or dealt with by

way of a TOGC.

Proposal We are instructed to seek offers in excess of

£3,565,000 (Three Million, Five Hundred and Sixty Five Thousand Pounds) reflecting a net initial yield

of 8.75% assuming purchasers costs of 6.5%. This

reflects a capital value of £125 per sq ft.

Consideration will be given to offers for the

buildings separately.

FURTHER INFORMATION & INSPECTION ARRANGEMENTSFurther Information For further information or to arrange an inspection,

please contact the sole agents.

Important: Alder King for themselves and for the vendors of this property, whose agents they are, give notice that: 1. The particulars contained herein are for guidance purposes only and do not constitute either part or whole of an offer or contract. 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact, and must satisfy themselves as to their correctness. 3. No person in the employment of Alder King has any authority to make or give any representations or warranties whatsoever in relation to these properties. 4. No responsibility can be accepted for expenses incurred by intending purchasers in inspecting and considering the properties which are offered. Under the Control of Asbestos Regulations 2006 (CAR 2006), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAR 2006 is an offence and could adversely affect the value of the property. The detection and management of asbestos and asbestos related compounds is beyond the scope of our expertise and does not form part of the services that we have agreed to provide in respect of the property. Accordingly: 1. Alder King do not accept any responsibility for, and you should not place any reliance on us in respect of, the detection and/or management of any asbestos and/or asbestos related compounds contained in the property. 2. We strongly recommend that you obtain advice from specialist environmental consultants in respect of asbestos related issues. July 2017, Subject to contract & exclusive of VAT.

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