730 AZTEC WEST WATERSIDE DRIVE BS32 4UE

PRIME FREEHOLD MULTI LET OFFICE INVESTMENT INVESTMENT SUMMARY

• Bristol is the regional and business capital of the South West of .

• Situated on Aztec West, Bristol’s premier business park.

• Freehold.

• Comprises a modern three storey office building totalling 38,301 sq ft NIA.

• Excellent car parking ratio of 1:176 sq ft.

• Comprehensively refurbished in 2016.

• Let to four tenants including Taylor Wimpey UK Ltd, Verex Insurance Services Ltd, Integral UK Ltd and Ceva Ltd.

• 12 month rent, rates and service charge guarantee on the vacant suite totalling 5,577 sq ft.

• WAULT of 7.5 years to expiry and 5 years to break.

• Currently producing £766,219 per annum which equates to £20.00 per sq ft overall.

• We are instructed to seek offers in excess of £9,900,000 reflecting a net initial yield of 7.25%, assuming purchaser’s costs of 6.69%.

• A purchase at this level reflects a low capital value of £258 per sq ft. LOCATION Road Bristol is the UK’s 5th largest conurbation Aztec West is prominently located and the business capital of the South West. adjacent to Junction 16 of the and within one mile of the The city is the UK’s largest banking, insurance M4/M5 Interchange, providing great York and financial services centre outside of London. In access links to London, South Wales, Blackpool Leeds Hull addition to financial services,Preston the city has a world class South West and the Midlands. The reputation in the aerospace and defence industries Business Park is located 7 miles from M62 M1 M18 Scunthorpe being home to the MOD Procurement Centre, Airbus, Grimsby via the A38. Doncaster Rolls-Royce and BAE. MANCHESTER Liverpool Rail A631 Holyhead The city is located approximately 120 miles westSheffield of Bristol Parkway railway station is located London, 85 miles south of Birmingham and 40 miles Chester A6 M1 Lincoln less than three miles to the south east Bangor M6 Skegness east of Cardiff. A617 A6 of the property and provides regular A17 A45 Wrexham Stoke-on-Trent high speed inter-city services to major Boston Nottingham A487 A50 Derby Grantham A52 A52 UK destinationsCromer with a journey time

Oswestry BS32 4UE A17 to London Paddington of 1 hour 25 Dolgellau A42 minutes. Shrewsbury M6 M1 King’s Lynn Welshpool A1175 CAR TRAVEL TIMES / DISTANCES Leicester Norwich A47 Network Rail are investing over £2 Peterborough Great Yarmouth City Distance in miles Travel Time Machynlleth BIRMINGHAM billion into the electrification of the A49 A11 London 116 2h 16m A483 Kettering Coventry ThetfordGreat Western route. This will result A140 Birmingham 90 1h 30m in faster and more frequent services M5 Cambridge A487 A456 Cardiff 36.5 44m Llandrindod Bury St between Bristol and London. The rail A421 Wells Edmunds Swansea 72 1h 20m electrification completes this year and Cardigan M40 Hereford Milton Keynes will shortenFelixstowe journey times to London A483 Brecon M50 Fishguard Cheltenham A131 by 20 minutes bringing the journey Carmarthen A40 M11 Harwich A40 Colchester Haverfordwest A40 A470 time down to 1hr 5 mins from Bristol Oxford Merthyr A417 Chelmsford M5 Parkway. Equally important is the Tydfil A449 M25 A34 Pembroke Newport Swansea Swindon frequency of trains between the two M4 M4 Reading LONDON cities which will double to four per hour. BRISTOL CARDIFF Bath A350 A346 Air Weston-super-Mare A37 A36 M25 M3 Bristol International Airport lies eight Bridgwater A31 A39 A303 miles toDover the south of the city centre Barnstaple A39 A303 Winchester Salisbury Folkestone Taunton and is one of the UK’s fastest growing Yeovil A354 A360 A350 A338 airports serving over 4.6 million Southampton A37 Worthing Hastings passengers a year. Portsmouth A30 A35 Exeter A35 Bournemouth Isle of Wight Weymouth

Torquay OCCUPIERS 1 730 AZTEC WEST SITUATION Occupiers in the area include: 2 Alcatel-Lucent 730 Aztec West is located on Bristol’s premier Business Park. Aztec West extends to approximately 158 3 Broadcom acres and attracts a wide range of national and international companies from sectors including manufacturing, 4 Atkins electronics, banking, public utilities, insurance and engineering. There are over 100 companies represented 5 Aardman Animation 6 Co-op on the park including EE, Atkins, Virgin, Aardman, Babcock and Allianz. 7 EE 8 GE Capital 9 Regus 10 Babcock To Exeter & the South West

AMENITIES 1 Aztec Centre Occupiers on the Park benefit from a 2 Lodge on the Park 1 2 3 number of excellent amenities including 3 Starbucks 4 Aztec Hotel & Spa the Aztec Hotel and Spa, Starbucks Coffee 5 Living Well Health Club 4 House and the Aztec Centre. Further 5 6 Hilton Hotel shopping facilities are located at the Mall

M5 at and the Willow Brook Centre in .

1 6 7 2 Almondsbury 20 3 15 M4/M5 4 interchange

9 B4055 16 M4 M5 8

10 Aztec West Bradley Stoke Way

7 Brook Way

Gloucester Road Road Gloucester Bradley Stoke Way 5 Coniston Road A38

6 Bradley To M4, Midlands Stoke & South Wales

J16 BS32 4UE DESCRIPTION 730 Aztec West provides 38,301 sq ft of high quality office accommodation over ground, 1st and 2nd floors, arranged in wings either side of the central core providing flexible, open plan space.

The offices benefit from a large secure car park with 217 car parking spaces. The car parking ratio at 1:176 sq

ft is one of the best on the business park.

0

t

o

7

1 5

The property was constructed in 1992 and ESS

underwent a comprehensive refurbishment

0

4 in 2016. It now provides the following 7

B specification: F

7 2 Pond 0 • New 3 pipe VRF air conditioning system

• 150mm full access raised floors Pond Southern • New LED lighting within metal tile Lakes suspended ceiling

• Enlarged and remodelled reception area

7

3 Almondsbury • Male and female WC facilities on each 0 20 15 floor M4/M5 interchange • New shower block with five showers (including a fully accessible shower and B4055 16 M4 changing room/locker facilities). M5 • Secured external covered bike racks for

Aztec West Bradley Stoke Way 32 bikes El Sub Sta • 2 x 13 person lifts

Brook Way Tu nn el Gloucester Road Gloucester • New landscaping to the front of the Coniston Road A38 Tu building nn el Bradley Stoke

0m 10m 20m 30m Patchway Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 ACCOMMODATION The property has been measured in accordance with the RICS Code of measuring practice (6th edition) and provides the following net internal floor areas:

ACCOMMODATION SIZE (SQ FT) SIZE (SQ M) Ground Floor 11,379 1,057.11 First Floor 13,514 1,255.45 Second Floor 13,408 1,245.60

TO TA L 38,301 3,558.16

Site Layout

W AT E R S ID E D R IV E

Typical Upper Floor

TENURE Ground Floor Freehold.

TENANCY SCHEDULE The property is let in accordance with the tenancy schedule below and provides a WAULT of 7.50 years to expiry and 5 years to break.

CAR SIZE LEASE LEASE RENT BREAK PASSING PASSING 1954 FLOOR TENANT COMMENTS PARKING (SQ FT) START EXPIRY REVIEW DATE RENT (PA) RENT(PSF) ACT SPACES

Taylor Wimpey Ground 11,379 20/01/17 27/02/27 28/02/22 £204,822 £18.00 65 Inside UK Ltd

Verex Insurance Part 1st 5,137 28/09/17 27/09/27 28/09/22 28/09/22 £98,887 £19.25 9 months notice on break. Service charge cap at 29 Outside Services Ltd £8.00 per sq ft subject to RPI increases.

Floor area subject to final measurement. 10 year lease, 5 year break. 9 months rent free to Part 1st U/O to Ceva Ltd 2,800 £61,600 £22.00 be topped up by the vendor. Break penalty of 4 16 Outside months rent. 6 months notice on break.

Part 1st Vacant 5,577 £122,694 £22.00 12 months rent, rates and service charge guarantee. 31

Integral UK Ltd Break penalty of 12 months rent. 9 months notice 2nd (Guarantor Jones 13,408 29/03/19 28/03/29 29/03/24 28/03/24 £278,216 £20.75 on break. Service charge cap at £8.00 per sq ft 76 Inside Lang LaSalle Ltd) subject to RPI increases.

38,301 £766,219 £20.00 217 COVENANT INFORMATION 31/12/2018 31/12/2017 31/12/2016 Taylor Wimpey UK Limited (Reg No: 01392762) is one of the largest homebuilders Turnover £3,979,800,000 £3,857,825,000 £3,566,543,000 in the UK, operating from 24 regional offices across England, Scotland and Wales. Pre Tax Profit £751,200,000 £609,385,000 £663,144,000 Net Tangible Assets £2,962,900,000 £2,736,208,000 £2,712,110,000 Fame rate the company as ‘92 out of 100 and Secure’. Shareholders Funds £2,148,800,000 £2,093,881,000 £2,044,221,000

Verex Insurance Services Limited (Reg No: 05686831), previously known as Original 30/06/2018 30/06/2017 30/06/2016 Insurance Services Limited, has a 30-year history in the automotive sector and brings major innovation to the UK motor insurance and vehicle manufacturer accident aftercare sectors. Turnover £7,703,570 - £4,396,716 The company currently operates 18 vehicle manufacturer affinity insurance and accident Pre Tax Profit (£135,327) - £442,879 aftercare schemes, with over 1,700 franchise dealers and 1,200 approved repairers. Net Tangible Assets £3,059,952 £3,153,860 £3,901,790 Shareholders Funds £3,107,778 £3,243,105 £2,704,624 Fame rate the company as ‘27 out of 100’.

Integral UK Limited (Reg No: 05307588) is a leading mechanical, electrical 31/12/2017 31/12/2016 31/12/2015 and fabric property maintenance business in the UK. It provides both planned preventative and reactive maintenance to over 1,600 clients in 60,000 locations. Turnover £354,885,000 £343,029,000 £323,216,000 The company has 17 regional offices and over 1,500 technicians and engineers. Pre Tax Profit (£28,269,000) £11,831,000 £12,159,000 Net Tangible Assets £1,005,000 £36,659,000 £40,007,000 Fame rate the company as ‘64 out of 100 and Stable’. Shareholders Funds £10,020,000 £38,274,000 £40,723,000 Latest published financial information is as follows (right):

Jones Lang Lasalle Limited (Reg No: 01188567) act as guarantor to the 31/12/2017 31/12/2016 31/12/2015 Integral UK Limited lease. Turnover £404,305,000 £358,935,000 £402,594,000

Fame rate the company as ‘99 out of 100 and Secure’. Pre Tax Profit £54,639,000 £28,333,000 £49,642,000 Net Tangible Assets £287,726,000 £236,060,000 £206,661,000 Shareholders Funds £271,811,000 £215,124,000 £205,154,000

Ceva Limited (Reg No: NI032358) was established in 2003 and is the leading licensor 31/12/2017 31/12/2016 31/12/2015 of wireless connectivity and smart sensing technologies. Headquartered in California, CEVA has more than 340 employees worldwide, with design centres in Israel, Ireland, Turnover £1,343,651 £1,160,524 £767,414 France and the . Sales and support offices are located in Europe, Pre Tax Profit £269,368 £51,486 £32,644 the U.S. and throughout Asia. To date, more than 10 billion CEVA-powered chips have been shipped Net Tangible Assets £1,324,762 £1,196,079 £960,645 worldwide. Shareholders Funds £1,324,762 £1,196,079 £960,645 Fame rate the company as ‘98 out of 100 and Secure’. BRISTOL OCCUPATIONAL MARKET Bristol’s prime out of town office space is concentrated in North Bristol within the areas surrounding the M4, M5 and M32 motorways with the two principal business parks being Aztec West and Bristol

Business Park. Major business sectors represented in the area include Defence (MOD Abbeywood, BRISTOL OFFICES: OUT OF TOWN TAKE UP 2008 - 2018 Thales, Boeing, Rolls Royce), Aerospace (BAE Systems and Airbus), Financial Services (Aviva and TSB), Telecoms (EE) andEducation (UWE). 450,000 Total supply in the out of market is 5.5m sq ft and take up in 2018 was 400,500 sq ft which is above 400,000 350,000 the 5 and 10 year averages. 450,000 400,000300,000 250,000 Availability of space in the North Bristol market remains close to its lowest level in 10 years at 350,000 200,000 316,000 sq ft, representing 5.7% of total office stock. We anticipate supply levels to remain under SQ. FT 300,000 150,000 pressure as no new schemes are currently under construction or anticipated in the short term. 250,000 100,000 200,000 Prime rents on Aztec West have reached £23.50 per sq ft following the recent letting of 2610. The SQ. FT 50,000 150,000 0 differential between city centre and out of town office rents has broadened to £11.50 per sq ft. 100,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 50,000 This rental differential, coupled with a shortage of Grade A stock in North Bristol together with no OUT OF TOWN TAKE UP 0 new developments in the pipeline, is driving rental growth in the out of town market. It is anticipated 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 that any Grade A lettings or pre-lets will be at a minimum £24.00 per sq ft. OUT OF TOWN TAKE UP

The property produces a current rent of £766,219 per annum which equates to a low level of £20.00 per sq ft. 600,000 NORTH BRISTOL OFFICE AVAILABILITY 2008 - 2018

500,000 600,000 Recent letting transactions on Aztec West include: 400,000 500,000 Date Address Size (sq ft) Tenant Rent (per sq ft) Term (Break) 300,000

Q1 2019 600 Aztec West 12,760 Elbit Systems £23.00 10 SQ. FT 400,000 200,000 Q1 2019 2610 Aztec West 40,760 St James Place £23.50 300,000

Q4 2018 800 Aztec West 32,007 Ministry of Defence £20.00 10 (5,7) SQ. FT 100,000 200,000 Q3 2018 800 Aztec West 15,000 Edvance SAS £21.50 10 (2) 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2018 800 Aztec West 15,000 Edvance SAS £21.50 10 (6) 100,000 OFFICE AVAILABILITY Q3 2018 140 Aztec West 5,982 Keep Moat £22.50 5 0 Q2 2018 2540 Azec West 2,590 Handelsbanken £21.00 10 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q2 2018 140 Aztec West 6,006 Agility £22.50 5 OFFICE AVAILABILITY

Given the rental evidence detailed above, should part of the building become vacant, we believe rental values could be significantly increased. The individual floor plates are an ideal size for the Bristol occupier market, and the property could be let as a whole or on a floor by floor basis. INVESTMENT MARKET DATE ADDRESS SIZE (SQ FT) PRICE CAP VAL (PSF) NIY WAULT There is still a considerable weight of money August 2019 410 & 420 Bristol Business Park 27,700 £8,000,000 £289 6.10% 7.50 looking to invest in Bristol offices. With an December 2018 430 Bristol Business Park 21,948 £6,425,000 £293 5.96% 7.00 increasingly positive sentiment towards the September 2018 660 Bristol Business Park 11,416 £3,120,000 £273 6.58% 4.40 occupier market and forecasted rental growth, July 2018 2630 Aztec West 61,806 £16,650,000 £269 6.92% 4.75 we predict the current high levels of demand January 2018 The Hub, Aztec West 102,483 £32,250,000 £315 6.69% 8.20 to continue. October 2017 100 Bristol Business Park 85,790 £30,060,000 £350 5.25% 15.00 August 2017 560 & 610 Bristol Business Park 30,736 £9,037,000 £294 5.73% 9.50 May 2017 930 Aztec West 30,430 £8,500,000 £279 6.86% 5.50

SERVICE CHARGE The service charge budget for the year ending 31st December 2019 is £226,435 reflecting a rate of approximately £5.91 per sq ft overall.

EPC

VAT We understand the property will be treated as a Transfer of a Going Concern for VAT purposes. PROPOSAL We are instructed to seek offers in excess FURTHER INFORMATION of £9,900,000 reflecting a net initial Nick Thurston Important Notice yield of 7.25%, assuming purchaser’s 1. 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 [email protected] the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any costs of 6.69%. representations about the property, and accordingly any information given is entirely without responsibility on the part of 0117 917 4536 the agents, seller(s) or lessor(s). 2. 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. A purchase at this level reflects a low 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary Steve Oades planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other capital value of £258 per sq ft. ways that these matters have been properly dealt with and that all information is correct. [email protected] 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered Subject to Contract and exclusive of VAT. 0117 917 4548 office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. September 2019 Design: Martin Hopkins Design | www.martinhopkins.co.uk | T 029 2046 1233