ALD AUTOMOTIVE LTD

ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
ALD AUTOMOTIVE LTD
VERTEX PARK, EMERSONS GREEN, BRISTOL
New Grade A office investment let to ALD Automotive Ltd
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
INVESTMENT
SUMMARY
> Located at Emersons Green, Bristol’s flagship
out of town business destination
> 36,188 sq ft of BREEAM “Very Good” office
accommodation
> Pre-let to ALD Automotive Limited (D&B 5A1)
> New 15 year FRI lease
> Estimated initial rent £660,431 per annum
(£18.25 per sq ft)
> Full capital allowances available to the
purchaser
> Freehold
> Practical Completion due November 2016
Offers are sought in excess of £9,426,000
(Nine Million Four Hundred and Twenty-Six
Thousand Pounds) subject to contract, on the
basis of a forward funding. A purchase at this level
reflects a Net Initial Yield of 6.75% from practical
completion, assuming purchasers costs of 3.80%.
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
“
Bristol has the fifth highest
GDP per capita in the UK ”
LOCATION
Bristol is the 5 th largest conurbation in the UK and capital of the South
West. It ranks amongst the most attractive, successful and culturally
prestigious cities in the UK and enjoys a rising profile due to it’s
world class knowledge economy based in aerospace, defence,
engineering, ICT and electronics, financial services, media and
environmental industries, as well as the global reach of its two
universities.
The city has developed a strong service sector and has become
one of the largest employment bases for banking, finance,
professional and insurance sectors outside London. It has an
estimated population of 550,000 and a surrounding larger urban
zone with an estimated 1.6 million residents. Bristol has the fifth highest
GDP per capita in the UK.
Bristol has attracted several very large business relocations over the
years including HP, AXA, Lloyds Banking Group, Ministry of Defence,
Orange, Rolls Royce, and Airbus. Many global and niche players
continue to thrive in Bristol, securing world firsts and triggering
record growth in the region’s core industries.
Emersons Green Enterprise Area
Emersons Green is located on the north eastern perimeter of Bristol
and has been the focus of extensive development activity in recent
years with the construction of approximately 2,800 homes and a
neighbourhood retail centre.
Strategically located close to the M4 / M5 corridors, with extensive
M4 frontage, Emersons Green is home to the Bristol and Bath
Science Park which includes the highly acclaimed Innovation
Centre (including The National Composite Centre) providing highspecification
office space alongside business advice and mentoring
to accelerate the early growth and success of new businesses
and provide a focal point for the coming together of science,
innovation, technology, creative and digital media. The location
is further underpinned by Emerald Park East, Vertex Park, Harlequin
and Brook Office Parks and the Sainsbury’s regional distribution
centre providing a substantial critical mass of office and industrial
accommodation.
With the potential for over 100 acres of development, Emersons
Green is recognised as a flagship employment location within the
Bristol area offering a broad range of opportunities that build on
the existing mix of small and medium office developments, light
industrial, warehousing and logistics alongside the adjoining new
residential community.
Planning
The site was granted planning permission by South Gloucestershire
Council (the Local Planning Authority) on the 14th June 2013 for an
urban extension on 99 hectares of land comprising up to 100,000
square metres of B1, B2, B8 and C1 employment floor space, residential
development of up to 2,550 dwellings, up to 2,450 square metres
of small scale A1, A2, A3, A4 and A5 uses, as well as three schools, a
cricket pavilion, health centre, and associated community facilities.
Following detailed pre-application discussions with South
Gloucestershire Council Planning Officers as well as other consultees,
the first reserved matters for the employment area was submitted for
approval. The application was validated under reference PK15/1404/
RM on the 1st April 2015 for:
‘”erection of a three storey office building with appearance,
landscaping, layout, scale and associated development including
road infrastructure”
The application is now being progressed through ongoing
dialogue with the Planning Case Officer and reserved matters
approval is anticipated by 1st July 2015.
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
SITUATION
1. Vertex Park
2. Harlequin Office Park
3. Brook Office Park
4. Emerald Park East
5. Bristol & Bath Science Park
6. Sainsbury’s Regional Distribution Centre
7. Innovation Centre
Bristol & Bath Science Park(Expansion Area)
C O A L S A C K
Emersons Green is located 3 miles to the east of
Junction 19 of the M4 motorway, 6 miles from the M4
/ M5 motorway interchange and 7 miles from Bristol
city centre, at a major focal point for transportation
including excellent rail, road and air access.
By Road
Emersons Green has direct access to the UK
motorway network and the nearby M4 / M5
interchange at Junction 20 of the M4 via the A4174
dual carriageway and the M32 motorway.
CARDIFF
M4
REDWICK
M4
M48
21
16
AZTEC WEST
TOCKINGTON
M5
15
20
15
M4
THE NORTH
B A D M I N T O N R O A D
2
3
A4174
4
M4
6
W E S T E R L E I G H R D
7
L A N E
W E S T E R L E I G H
1
R D
M
By Rail
Emersons Green is just a 10 minute drive from Bristol
Parkway and a 15 minute drive from Bristol Temple
Meads providing access to London Paddington.
Both stations have a service every 30 minutes with a
fast journey time to London of 1 hour 21 minutes.
By Air
Bristol is served by Bristol International Airport
which provides extensive links to a wide range of
UK and European destinations.
In addition Avonmouth and Portbury docks are
circa 9 and 11 miles to the west respectively.
PORTISHEAD
EXETER
M5
PORTBURY
DOCKS
AVONMOUTH
19
18
M49
A4174
STOKE
BISHOP
M5
17
BRISTOL
BRISTOL BUSINESS
PARK
M32
M4
1
19
M4
LONDON
EMERSONS
GREEN
A4174
WARMLEY
M4
CHIPPING
SODBURY
5
Not to scale and for indicative purposes only
A4174
A4174
BRITTON
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
THE PROPERTY
The property will occupy a 2.77 acre site (1.12
hectares) and will comprise a newly constructed,
Grade A specification office building with ancillary
car parking to include 250 spaces, providing
an excellent car parking ratio of 1:145 sq ft. It has
been designed as a sustainable building to
achieve a BREEAM 2014 rating of ‘Very Good’. It will
comprise a net internal area of 36,188 sq ft arranged
over ground, first and second floor levels and
the Landlord’s Category A specification of the
building will include:
> Fully accessible raised access floors
> Suspended ceilings with recessed LG7 lighting
> Comfort cooling and heating systems to offices
(VRV system with defined zones)
> Carpeted, fully accessible raised floors with
150mm clear void
> Clear floor to ceiling heights in the office areas
of 2.7 metres
> High quality WC’s, showers and locker rooms to
include disabled facilities
> Fire detection and alarm system
> Single lift serving all floors
> Static solar shading on external elevations
Full specification can be provided on request.
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
TENANCY
OCCUPATIONAL MARKET
TENANT COVENANT
An Agreement for Lease has been
entered into with ALD Automotive Ltd for
a new 15 year full repairing and insuring
lease, from Practical Completion, which
is scheduled for November 2016. The
lease is to be drafted inside the security
of tenure provisions of the Landlord and
Tenant Act 1954.
The initial rent will be based on a rate of
£18.25 per sq ft. Based on the floor area,
the rent will be £660,431 per annum.
The lease includes the provision for
open market rent reviews which will be
upwards only in every 5th year of the
term.
The tenant will have the benefit of a 6
month rent free period.
Bristol historically has been one of the best performing out of town markets in the UK and has
faired well in the recent economic downturn. The highest headline rents achieved are between
£19.50 per sq ft and £21.50 per sq ft in the nearby Aztec West business park, with quoting rents on
small suites of up to £22.00 per sq ft.
Recent deals include:
Date Address Tenant Area (sq ft) Rent (per sq ft)
Feb-14 910 Aztec West Business park Broadcom 25,230 £19.50
Feb-14 920 Aztec West Business Park SCC Technology Solutions 4,000 £19.75
Jul-13 210 Bristol Business Park Babcock Integrated
7,407 £19.50
Technology
Feb-13 Grow On, Bristol and Bath
Science Park
CFMS 7,140 £21.50
Grade A stock in particular is in very short supply, with no prime buildings in excess of 25,000 sq
ft available on the north fringe. The prospects for rental growth are very strong, with average
growth over the next five years forecasted at 3.6% per annum (Source: RealFor). The property
therefore provides an ideal opportunity to capture this growth at rent review.
ALD Automotive Ltd is the operational leasing and fleet management
division of Société Générale, the French banking and financial
services company. It is the second largest vehicle leasing operation
in Europe and manages over one million vehicles across 40 countries
worldwide.
A summary of the last 3 years financial accounts are set out below:
Year Ending: 31/12/2013 31/12/2012 31/12/2011
Turnover: £485,498,000 £273,857,000 £219,176,000
Profit / Loss before Tax: £36,802,000 £22,986,000 £16,909,000
Tangible Net Worth: £80,346,000 £50,509,000 £40,435,000
ALD Automotive Ltd has a Dun & Bradstreet rating of 5A1 representing a
minimum risk of business failure.
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
ACCOMMODATION
The property will provide the following net
internal floor areas (subject to final measurement):
Ground Floor
Floor: Sqm Sq ft
Telecoms
Cyclists Entrance /
Exit To Car Storage
Plant
Electric
Gas/
Water
Ground: 1,124 12,098
First: 1,119 12,045
Second: 1,119 12,045
Total: 3,362 36,188
Fire
Exit
Delivery
Fire Exit
Stair Above
GF FFL +50.1
Service
Void
6No. Unisex
Showers
Acc.
WC
Clnrs
Cup'd
Female WC
Male WC
Void
Lift
Service
Void
Fire Exit
Stair Above
Reception
USER CLAUSE
Waiting
Area
Entrance
Lobby
Main Entrance
Waiting
Area
The premises are to be used for B1 offices or other
associated uses within the definition of the Town
and Country Planning (Use Classes) Order 1987.
Typical Upper Floor
Ground Floor Plan
Scale 1:100
SF FFL +58.1
TENURE
Female WC
Lift
Male
WC
Service
Void
Fire Exit
Stair
Fire Exit
Stair
The property will be held Freehold.
Void
Floor plans are not to scale and are for indicative purposes only
Second Floor Plan
Scale 1:100
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
VAT
The property will be elected for VAT.
“
The building has been designed to achieve a
BREEAM 2014 rating of ‘Very Good’
CAPITAL
ALLOWANCES
Full capital allowances will be available to the
purchaser.
CONSTRUCTION
WARRANTIES
Warranties will be provided by the principle
design team, the building contractor, the
professional consultants and the main subcontractors
involved in the development.
E P C
It is anticipated that the property will have an EPC
rating of B or above.
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ALD AUTOMOTIVE LTD | EMERSONS GREEN, BRISTOL
PROGRAMME
PROPOSAL
Demolition / Site Preparation: September 2015
Construction Start: November 2015
Offers are sought in excess of £9,426,000 (Nine Million Four Hundred and Twenty-Six Thousand
Pounds) subject to contract, on the basis of a forward funding. A purchase at this level reflects a Net Initial
Yield of 6.75% from practical completion, assuming purchasers costs of 3.80%.
Practical Completion: November 2016
FUNDING STRUCTURE
CONTACTS
Site Purchase Price:
£1.6 million
For further information or to arrange an inspection please contact:
Interim Drawdowns:
£6.603 million (monthly on valuation certificates)
Savills:
Hartnell Taylor Cook:
Balancing Payment:
£0.608 million
Please note the following deductions are reflected in the appraisal:
Jonothan Holmes
020 7409 8826
07870 555 738
jholmes@savills.com
Mike Tench
020 7299 3015
07734 456 630
mtench@savills.com
Ian Lambert
0117 946 4525
07774 468265
ian.lambert@htc.uk.com
Rolled up Interest:
£0.301 million (coupon @ 6.75% on land and construction)
Rent Free: £0.314 million (6 months rent free PV’d @ 6.75%)
A development appraisal is available on request.
Andrew Phillips
01179 102354
07972 000 112
adphillips@savills.com
THE DEVELOPER
Stoford was founded in 1996 and has since grown significantly completing in excess of 10 million sq ft of
commercial development throughout the UK across a diverse range of sectors.
Their innovative approach to site and contract procurement has ensured they always deliver high quality
developments on time and within budget for some of the UK’s largest financial institutions and occupiers
including Standard Life, Axa, LaSalle, BlackRock, GE, Npower, and Tesco, together with Government
Departments such as HMRC, DSA, DEFRA and The Home Office. Stoford is privately owned, with an
experienced team ensuring they always remain highly competitive.
Important Notice
Savills, their clients and any joint agents give notice that:
1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own
behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars
do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily
comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not
tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
Designed and Produced by Savills Marketing: 020 7499 8644
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