Thistle Express Hotel Swindon • Sn1 1Tn
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THISTLE EXPRESS HOTEL SWINDON • SN1 1TN Rare and highly reversionary Guaranteed by £450+ million Over £1.8 billion of inward Located in the new epicentre 43 year income NAV credit investment into the wider of Swindon adjoining the new Swindon area generating Fleming Way Bus Boulevard 17.6% fixed rental increase in All rent and service charge thousands of jobs and boosting and opposite the Kimmerfields December 2023 with uncapped payments up to date the local economy regeneration site CPI inflation linked uplifts Contractual rental obligations thereafter (with a minimum 1% £25 million of government Kimmerfields is anchored by over the 43 year term in excess P.A. compounded increase) funding secured from the the new c.100,000 sq ft Zurich of £10 million (2x guide price) Future High Streets Fund HQ which is due to complete in 2022 Guide Price: £5 million (£96 psf) | Bids due Tuesday 6th July unless otherwise agreed prior (subject to contract) INVESTMENT SUMMARY 4 We are instructed to seek offers in 1 INVESTMENT excess of £5,000,000 (Five Million Pounds) for the benefit of the Virtual Freehold interest, subject SUMMARY to contract and exclusive of VAT. Pricing at this level reflects a low price per bedroom of only £52,632 and a capital value of just £96 per sq ft, equating to a Net Initial Yield Newly created 999-year Low passing rent of £170,000 Low pricing vs of 3.19% (Reversionary Yield of 3.75% Virtual Freehold per annum (£1,789 per bedroom) reinstatement cost rising 17.6% to £200,000 per in 2023), assuming purchaser’s annum (£2,105 per bedroom) costs of 6.6%. in December 2023, with uncapped five yearly reviews Purpose built and recently Excellent transport to CPI thereafter (with 1% refurbished hotel providing connectivity being just compounded per annum 95 bedrooms across 500m from Swindon Train basement, ground and minimum uplifts) Station and in close proximity eight upper floors to J15 and J16 of the M4 Motorway 5A1 guarantor company with Total GIA of 51,918 sq ft an excellent net asset position (4,823.5 sq m) of £451.8 million in 2020 Located in the heart of Swindon adjacent to the retail core and opposite Kimmerfields, a major GLH Hotels Limited (Greater mixed-use regeneration Let to The Wiltshire Hotel London Hospitality) is one of the and the new commercial (Swindon) Limited and RUNNING YIELD ILLUSTRATION largest hotel owner operators centre of Swindon guaranteed by GLH Hotels in London with over 5,000 Limited DATE GROSS ANNUAL GROSS ANNUAL bedrooms and 130 meeting and RENT* RUNNING RENT** RUNNING event spaces, across 14 hotels, YIELD* YIELD** including the iconic Hard Rock Current £170,000 3.19% £170,000 3.19% Swindon has one of the London, The Royal Horseguards Dec-23 £200,000 3.75% £200,000 3.75% highest employment Rare and highly reversionary and The Tower Hotel Dec-28 £220,816 4.14% £231,855 4.35% rates in the UK and is inflation linked FRI lease with Dec-33 £243,799 4.57% £268,783 5.04% home to a range of major Dec-38 £269,174 5.05% £311,593 5.85% 43 years and 4 months corporate businesses Dec-43 £297,189 5.58% £361,222 6.78% unexpired term certain, with a The hotel reopened as Thistle including Zurich, Amazon, Dec-48 £328,121 6.16% £418,756 7.86% tenant option to renew for two Dec-53 £362,272 6.80% £485,452 9.11% Express Swindon in August Nationwide Building further 15 year leases, providing Dec-58 £399,978 7.50% £562,772 10.56% Society, Intel, Capita and a potential term of 73 years and 2017 following a significant£3.5 Dec-63 £441,608 8.29% £652,408 12.24% Aecom 4 months million refurbishment (equating to 70% of the purchase price) *Assumes 2% CPI from 2023 **Assumes 3% CPI from 2023 5 6 LOCATION & SITUATION 8 2LOCATION AND COMMUNICATIONS Swindon is the principal commercial and recently undergone a 10 year, multi- BIRMINGHAM administrative town within the county of billion pound upgrade to provide route 1 HR 48 MINS Wiltshire, located approximately 30 miles electrification, station improvements and (48 km) south west of Oxford, 40 miles (64 track upgrades. There are on average 165 km) east of Bristol, 40 miles (64 km) west trains per day to London Paddington Station of Reading and 80 miles (129 km) west of with a fastest journey time of 49 minutes Central London. and an average of 46 weekday trains per day to Bristol Temple Meads with a fastest train OXFORD Swindon benefits from excellent 32 MINS journey time of 36 minutes. SWANSEA connections to the national road network, 1 HR 51 MINS with 1.9 million people living within an hour’s Swindon is set to benefit further from a drive. The town is strategically located just proposed Western Rail Link with Heathrow CARDIFF LONDON 54 MINS BRISTOL 49 MINS 5.5 miles (8.8 km) north west of Junction 15 Airport, which will significantly reduce rail 36 MINS READING 24 MINS and 4 miles (6.4 km) north east of Junction journey times and improve connectivity 16 of the M4 Motorway. to Heathrow Airport from the Thames Valley, with an expected journey time of Swindon is located on the Great Western approximately 50 minutes from Swindon. SOUTHAMPTON Railway on the mainline route between 1 HR 45 MINS London and Bristol. The network has EXETER 1 HR 35 MINS Swindon has excellent access to London Heathrow Airport and Bristol Airport, both located approximately 1 hour by car and provide direct flights to national and international destinations. Swindon is also set to benefit further from a proposed Western Rail Link with Heathrow Airport. 10 3 SITUATION TO LONDON HEATHROW AIRPORT 18 17 OXFORD Thistle Express Swindon is situated serving as Swindon’s main retail offering, AND READING on Fleming Way at the new epicentre with a number of national brands of Swindon town centre, within close including H&M, Metro Bank, Schuh, proximity to a number of major Deichmann, Tesco and Superdrug. 21 businesses, several public car parks, Further retail provision is provided at Swindon’s retail core and the new 9 The Brunel Shopping Centre just 450 13 24 commercial and cultural district of 16 14 metres west, which offers over 100 15 12 the town. 20 shops, restaurants and cafes, along with 10 19 Sheppard St 3 Fleming Way The hotel is strategically situated on a McArthur Glen Designer Outlet Centre, 22 6 highly visible corner site in the town located 1.3km (0.8 miles) west of the hotel. 1 11 4 centre and is just 500 metres (5 minute 2 Princes St Swindon has a rich art and cultural walk) from Swindon Train Station and offering, with the proposedTo Bristol, Walesnew Cultural and the 7 is in close proximity to the central Quarter located withinSouth the West Kimmerfields 5 businesses district which includes a development. Just to the south along number of major businesses such as TO BRISTOL, 25 Islington Street lies the Wyvern Theatre, WALES AND THE Zurich, Aecom, Network Rail and Capita. SOUTH WEST 23 26 the Artiste Complex, the Museum of Commercial Rd Located immediately adjacent to the Computing along with the Town Hall 27 29 Combey St 28 hotel is The Parade Shopping Centre, and Library. 8 CAR PARKING MAJOR DEVELOPMENTS 1. Whalebridge Car Park – 110m (840 spaces) 19. Kimmerfields Regeneration and 2. Fleming Way Car Park – 170m (654 spaces) new Zurich HQ – opposite 3. The Parade Multi Storey Car Park - 220m 20. Fleming Way Bus Boulevard – adjoining The hotel is strategically (112 spaces) 21. Swindon Station / Swindon Arrival – 500m situated in Swindon town 4. Spring Gardens Car Park – 270m (662 spaces) 22. The Carriage Works – 700m centre adjacent to the central 5. Princes Street Car Park/Wyvern Theatre – 23. Aspen House & Granville Street – 700m 350m (112 spaces) business district and just CULTURAL QUARTER moments from an extensive RETAIL & LEISURE 24. New Cultural Quarter – 300m retail and leisure offering. 6. The Parade Shopping Centre – adjacent 25. Wyvern Theatre – 300m 7. The Brunel Shopping Centre – 450m 26. Artiste Complex – 500m 8. Regent Circus – 600m 27. Museum of Computing – 500m 9. Swindon Town Football Club – 850m 28. Swindon Town Hall / Library / Dance – 550m 10. STEAM, The Museum of the GWR – 1.2km 29. MECA Events Venue – 550m 11. Swindon Designer Outlet – 1.3km MAJOR BUSINESSES 12. Zurich – 300m 13. Aecom – 400m 14. Network Rail – 400m 15. Historic England – 1.0km 16. English Heritage – 1.0km 17. Space Agency UK – 1.1km 18. Medical Research Council – 1.1km 12 4 DEMAND DRIVERS- THRIVING BUSINESS HUB Swindon is a major commercial and The latest Good Growth for Cities Index industrial hub in the south west of by PwC 2021 suggests that Swindon is England given its strategic position at one of the most resilient cities/towns Swindon has a long heritage with Swindon is also home to a number of the heart of the M4 corridor and Great in the UK. The analysis highlights that transport and manufacturing industries, major distribution centres for some of Western main line. as result of Swindon’s sectoral mix from the GWR rail works to the BMW/ the UK’s best known firms including and historically strong economic and A new UK Powerhouse Report (2021) Mini factories. Today, the town serves Aldi, DHL and Royal Mail. The town is social performance, the town has been by Irwin Mitchell and the Centre for as a more diverse business hub for a also the chosen location for a number relatively less economically impacted Economic and Business Research range of sectors including advanced of established national headquarters, by the Covid-19 pandemic than other indicates that Swindon will have one of manufacturing and engineering, including the UK Space Agency, UK cities.