sign in sign up
<<
Home , Dudley railway station, Solihull, Wolverhampton

BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ

Modern office investment let to BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 01

INVESTMENT SUMMARY

High quality modern office building situated in a strategic location off Junction 2 of the . • Located within the Greater conurbation, 8 miles north-west of Birmingham City Centre. • Birmingham is the UK’s second city and along with the wider Greater Birmingham area plays home to many leading corporate and public sector occupiers. • Strategic location providing immediate access to the West and the wider UK Motorway . • Modern 3 storey Grade A office building comprising 3,321 sq m (35,749 sq ft) with a generous car parking ratio (1:202 sq ft). • Freehold. • Let in its entirety to Npower Ltd, part of the international energy provider RWE Group, providing excellent income security. • The lease expires on 11th March 2021, providing 3.5 years to lease expiry. • Passing rent of £517,650 per annum equating to a modest £14.48 per sq ft. • Extensively refurbished by the tenant in 2016, demonstrating commitment to the property.

We are instructed to seek offers in excess of £6,070,000 exclusive of VAT for the freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 8.00% assuming full purchaser’s costs of 6.63% and a low overall capital value of £170 per sq ft. BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 02

A4123 M5 SOUTH

A4034 BIRCHFIELD LN

M5 J2

A4123 Birchley Island Development

M5 Shell PFS

A4034

NORTH TO M6 JOSEPH ST

Half Penny Farm Swallowfield Courtyard BIRCHFIELD LN

The Stores Bar & Grill Birchfield RD House A4123 A41 A515 Burton A42 A53 upon Trent A6 BIRCHHOUSE A34 BIRCHLEY PARK • OLDBURY • B69 2AQ 03 A38 A41 A49 Oldbury LOCATION A4034 M54 A444 PARK ST A461 M42 A458 WOLVERHAMPTON RD Oldbury is positioned at the heart of the UK, only 8km (5 miles) north-west of BIRCHFIELD LN M6 Birmingham, the economic powerhouse for the and the principal Wolverhampton A5 commercial and administrative centre for the wider Midlands region. Birmingham JOSEPH ST boasts a population of circa 1,101,000 (2017 est.) making it the largest regional centre A4123 CHURCHBRIDGE A454 West Sutton M69 in the UK in both population and economic terms. The wider Greater Birmingham Bromich Coldfield M5 conurbation has a resident population of circa 2.45 million (2014 est.) and the property benefits from access to over 50% of the UK population within 2 hours. Oldbury

Oldbury and the West Midlands Birmingham produces nearly 25,000 M6 M1 are due to benefit from significant graduates a year from its three A442 Birmingham investment over the next 10 years with universities and a further 100,000 2 A456 an estimated £10bn of infrastructure due graduates are produced from fifteen to be delivered, including Motorway other leading universities within the WOLVERHAMPTON RD M42 improvements, Metro extensions and region, all under one hour’s drive from A4123 A435 A4034 Rugby the arrival of HS2 to the region. The the property. This pool of educated and A46 in particular has seen skilled labour is a major attraction for A456 M45 a significant increase in foreign and businesses and a significant factor M5 A423 domestic investment over the last few in why the West Midlands is home M5 A449 M40 years and was recognised as one of the to over 142,000 companies including top 5 cost-effective regions in the UK. over 1,900 international businesses. This continued investment will cement SITUATION the regions position in a National and A435 European context in terms of premier The property is situated adjacent The property is accessed principally The neighbouring area is predominantly business locations. to St Modwen’s Birchley Island from Joseph Street, an estate road commercial, supportingA46 a varietyA429 of development scheme. The scheme that connects to both the A4123 dual different uses, including modern office, involves a major capacity Improvement carriageway and A4034. Both these retail warehousing, food retailing, KEY LOCAL OCCUPIERS INCLUDE: to the linked junctions of Birchley Island roads provide access to Birchley Island industrial, trade counter and car • Travelodge Reservation Services • HM Revenue & Customs and M5, Junction 2, building on the and the M5 motorway whilst the A4123 showrooms with occupiers including, • Crow Clarke Whitehall • OCS Highways Agency scheme to widen connects with and the A4034 AA, Toys R U, Halfords, Dunelm Mill, the motorway ‘off’ slips as part of the provides access to Oldbury town CD Transport, McDonalds and Fayre • Arnold Clarke • Regus Pinch Point Programme. centre, Oldbury Green Retail Park and Square Public Houses. • The AA Sainsbury’s supermarket all of which are in close proximity. BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 04

COMMUNICATIONS

ROAD METRO SYSTEM Benefitting from excellent access to the national Oldbury and the wider area benefit from the Midland Motorway network by virtue of a central UK location, Metro tram system, one of the UK’s most successful the property is directly adjacent to Junction 2 of the rapid transport systems. The Midland Metro is the M5 motorway, providing close proximity access to light rail system for the West Midlands which operates the M6, M6 Toll, M42 and M40. Access to Central between Birmingham and Wolverhampton via West Birmingham is achieved in a journey time of circa Bromwich and . It operates seven days 20 minutes via the A4123 Wolverhampton Road. a week with a ‘turn up and go’ every eight minutes Dudley and the Merry Hill retail area are just during the day and every 15 minutes during the a short drive away via the A4034. evenings and Sundays.

West Bromwich Parkway offers park and ride facilities RAIL and is the closest Metro station to the subject Intercity rail links are provided from property. Just 3 miles (5 km) north along the A4034, and , 2.6km (1.7 miles) to Parkway offers journey times into the north of the property, with regular services to Birmingham Snow Hill in 19 minutes with further Wolverhampton, Birmingham New Street, Birmingham expansion works underway that will connect International, Milton Keynes and Euston. New Street Station with the current line. Journey times to Birmingham New Street are 10 minutes whilst Birmingham International, for airport AIR access, can be reached in 22 minutes. Three services an hour run direct to London Euston with Oldbury is served by , 23 miles a journey time of approximately 1 hour 40 minutes. (37 km) to the south west of the property via the M6 Local train services from Dudley Port Station serve motorway and Airport, located 77 miles the Birmingham to Wolverhampton line with three (123 km) north also accessed via the . services an hour linking Oldbury to Wolverhampton Birmingham Airport can be reached from the subject in 12 minutes. property via a direct rail service to Birmingham International from Sandwell and Dudley station with a fastest journey time of 21 minutes. The new runway extension at the airport provides direct flights to the Far East and the west coast of America and makes Birmingham Airport the busiest outside of London in terms of passenger traffic. BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 05

PROPERTY DESCRIPTION

Developed in 2001, Birch House is a modern office building of steel framed construction under a traditional pitched tiled roof. The façades are a mixture of brick and aluminium profile cladding with full height atrium creating impressive access to the office accommodation. The site extends to approximately 0.93 hectares (2.36 acres) and there are 177 car parking spaces, providing an excellent car parking ratio of 1:18.76 sq m (1:202 sq ft).

The office specification includes: • Tenant installed canteen and gym • Male, female and disabled toilets on all floors • Accessible raised floors with a minimum clear void of 150 mm • Suspended ceilings with LED lighting • Comfort cooling throughout and heating provided by way of a low-pressure hot water system • Two 13-person passenger lifts BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 06

ACCOMMODATION COVENANT

SCHEDULE Npower Ltd is the UK retail energy arm of RWE Group, one of Europe’s leading electricity and gas companies, The vendor has provided the following active in the generation, trading, transmission and supply Net Internal Areas: of electricity and gas. Floor Sq M Sq Ft Npower supplies electricity and gas to six million residential customer accounts and is also the second largest supplier Ground Floor Reception 63 678 of energy to the business market serving around half a million customers. Ground Floor 1,076 11,584 Offices Npower employs around 11,500 people in the UK, with its headquarters based in . The Birch House facility 1st Floor Offices 1,104 11,599 accommodates Npower’s major business and customer 2nd Floor Offices 1,104 11,888 service teams. For further information visit www.npower.com Total 3,321 35,749 31.12.2016 31.12.2015 31.12.2014 (£’000s) (£’000s) (£’000s) TENURE Turnover 3,939,500 3,567,100 3,292,700

The property is held freehold. Profit before Tax 359,000 103,900 55,000 Net Worth 9,600 (357,100) (508,200) TENANCY

The property is let in its entirety to Npower Ltd on a Full Repairing and Insuring lease for a term of 20 years commencing on the 12th March 2001 and expiring on 11th March 2021, providing 3.5 years unexpired. The passing rent is £517,650 per annum reflecting £14.48 per sq ft overall. BIRCHHOUSE BIRCHLEY PARK • OLDBURY • B69 2AQ 07

EPC FURTHER The property has an EPC rating of D95. INFORMATION

For further information or to arrange a site inspection, please contact VAT the following: We understand the property will be elected for VAT. It is intended that the sale will be treated a Transfer of a Going Concern (TOGC). KnightFrank.co.uk Jonathan Devaney PROPOSAL 0121 233 6490 [email protected] We are instructed to seek offers in Ben Wisher excess of £6,070,000 exclusive of VAT 0121 233 6456 for the freehold interest. A purchase at this level reflects an attractive [email protected] Net Initial Yield of 8.00% assuming full purchaser’s costs of 6.63% and a low overall capital value of £170 per sq ft. James Mattin 0121 524 1172 [email protected]

Important notice. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. September 2017. carve-design.co.uk 13088