Oxford Business Centre Oxford, Ox1 1Tb

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A rare opportunity to secure an income producing freehold investment property with development potential in central Oxford, forming part of the land allocated for mixed use redevelopment under the adopted Oxpens Masterplan SPD.

1 CARFAX

CENTRAL WESTGATE CENTRE BUS STATION

OXFORD CHERWELL VALLEY COLLEGE

ICE RINK

OXFORD RAIL STATION CAR PARK

Key to nearby Oxford University Colleges

1. christ church 10. all souls 2. worcester 11. ashmolean 3. nuffield museum 1 / 9 12. st johns 4. st peters Oxford Business Centre 13. keble 5. radcliffe camera OXFORD, OX1 1TB 6. hertford 14. balliol 7. queens 15. jesus 8. st edmund hall 16. exeter 9. magdalen 17. pembroke 1 / 9 OXFORD BUSINESS CENTRE OXFORD, OX1 1TB

Summary

XX An extremely rare opportunity to secure a freehold site of scale in close proximity to central Oxford and its retail and transport links.

XX The site extends to c1.66 acres and forms an integral part of the adopted Oxpens SPD Masterplan.

XX The Masterplan zones the site for potentially 5 floors of student accommodation or alternative uses as part of a comprehensive redevelopment of the wider Oxpens site.

XX The property comprises 26,941 sq ft (Gross Internal Area) of modern commercial accommodation let to a variety of tenants, generating an annual rent roll of £260,558.

XX All leases expire or contain mutual breaks before the end of 2017.

XX Oxford has nearly 32,000 full time university students with a significant amount more studying at the numerous respected language schools.

XX The University of Oxford was ranked 1st in the UK and joint 2nd in the world in the Times Higher Education supplement’s World University Rankings 2013-2014. It is also repeatedly ranked in the top ten of universities worldwide.

XX The University of Oxford is ranked 1st and Oxford Brookes University is ranked 49th in the UK by The Times and Sunday Times Guide (2015).

XX The vendors are seeking offers for the freehold, on an unconditional basis.

Christ Church College

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location SITE PLAN

NE to 12 EY LA 7 Oxford mainline train station is 0.3 miles from retail. Public and Brookes Bus links in the area from the Westgate Shopping Centre. Gloucester Bridge OSN Foot 57.3m 1 to 6

1 3 the site and provides direct services to London t provide direct routes to the main Oxford Brookes Green Bus Station is 0.6 miles which also serves Richard Gray o

Court 1 every 8-14 minutes and direct services to Reading, campus, Headington, Wheatley and the city centre. the Oxford Tube which runs bus services to 8 WB S Didcot, Worcester and Hereford. central London every 12-15 minutes. L The nearest Oxford University colleges can be SL

The site is well located for local amenities in found 0.3miles from the site at Nuffield and MP 63.25 Oxford City Centre, with nearby leisure facilities, Pembroke Colleges. The site is within 2.4 miles Kings Mead House parks and access to superstores and high street of Oxford Brookes University. The site is 0.4miles 1

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OXPENS masterplan spd land ownership opportunity description Oxford Citizens Housing Association 0.12 Ha 0.3 Acres The Oxford Business Centre is located in the centre of one of The property comprises two terraces of well specified light the world’s most famous cities, Oxford. The proposals set out industrial units of varying sizes. The property was built in Royal Mail 0.45 Ha in the Oxpens Masterplan zone the Oxford Business Centre the mid 1980’s and is of steel portal frame construction with 1.1 Acres Oxford Business for up to 5 floors of student accommodation and refers to profile metal clad elevations. A number of the units have been Centre - Milton Property Investments Ltd Sinclair Dalapa c10,600 sqm of student cluster bed spaces being provided adapted under licence to meet specific occupier demands. 0.66 Ha (Esso) on the wider site. Other uses including residential, retail / Each unit benefits from: 1.63 Acres 0.09 Ha 0.22 Acres leisure, employment (e.g. office, research and development) or a hotel may be permissible. • A roller shutter door;

The plan to the left sets out how the site fits in context with • Generous forecourt loading and parking; the Oxpens SPD. The key land owners within the Oxpens site • Integral offices. include Oxford City Council, London and Continental Railways Oxford Business Centre - Other (LCR), Royal Mail, Oxford Citizens Housing Association and Ownership 0.29 Ha Sinclair Dalapa. The Oxpens site is bounded by distinct edges; 0.72 Acres Oxpens Road to the east, Osney Lane to the north, the railway British Rail Board (Residuary) line to the west and water courses to the south. (BRBR) 3.21 Ha 7.93 Acres Oxford City Council Including FIT Area 3.52 Ha 8.7 Acres

View north along the site

Oxpens Master Plan SPD Site Boundary

Land Ownership Boundaries (Informed by Land Registry plans)

Fields in Trust (FIT) Boundary

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Current Tenants / Income

It is expected that full Vacant Possession of all the units could be secured by December 2017, subject to securing planning permission for redevelopment so that leases which fall inside the act can be terminated. The site will be sold with the benefit of the existing income stream.

Areas Lease Option to Notice Unit Tenant (G.I.A) Expiry Rent p.a Break Date 1954 Act Break Period sq ft Date

25/12/2017 1 Avis Budget UK Limited 2,915 30/05/2023 £36,000 Mutual 12 months Outside (Rolling)

2 Macintyre Care 1,586 08/08/2016 £17,500 Inside

25/12/2017 3 John E Wight & Co Ltd 2,771 24/12/2020 £18,500 Mutual 12 months Outside (Rolling)

4 Gigastream Plc 5,752 18/10/2017 £47,430 Inside

6 months The Oxfordshire County 02/04/2017 tenant, 12 5 5,151 01/04/2022 £51,510 Mutual Outside Council (Rolling) months Landlord

6 Adlens Limited 2,149 24/12/2017 £23,500 Tenant 15/05/2016 6 months Outside

6 months The Oxfordshire County 02/04/2017 tenant, 12 7 2,116 01/04/2022 £22,218 Mutual Outside Council (Rolling) months Landlord

8 Adlens Limited 2,113 24/12/2017 £23,500 Tenant 15/05/2016 6 months Outside

25/12/2017 9 A.V.C Motors Ltd 2,388 20/06/2023 £20,400 Mutual 12 months Outside (Rolling)

TOTAL 26,941 £260,558

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planning indicative SKETCH PLAN 1st – 4th Floor Plan The sale site falls within a larger site known as Oxpens; a Site Analysis masterplan SPD setting out how the site could be redeveloped was adopted by Oxford City Council in 2013 click here. N The overarching development plan document covering the Oxford City Local Planning Authority is the Oxford Core Strategy 2026 click here, which promotes sustainable development of brownfield land.

The West End Area Action Plan, adopted in 2008, sets out key planning policies for the West End of Oxford, including the Oxpens site click here.

A number of other policies relating to affordable housing, Community Infrastructure Levy, housing mix sustainability and design may apply to development of the site.

A Feasibility Study prepared by Aros Architects which considered the capacity of the site proposed circa 495 bed spaces of student accommodation if the sale site were to be developed as part of a wider regeneration scheme, or circa 370 bed spaces of student accommodation if the site were developed in isolation, a copy of the study is available to interested parties. If you would like to discuss the study with Aros, speak to Simon Coles [email protected] / 0207 928 2444.

Please see the Planning Note provided by Savills and collated policy documents within the supporting data room. All interested parties should make their own enquiries with regard to any future development with the local authorities. If you require any advice from Savills Oxford Planning Team, please speak to Roger Smith [email protected] / 01865 269 057.

Source: Aros Architects - Subject to planning

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Oxford Oxford Oxford Major Developments and Residential Commercial Regeneration Market Market

Oxford has seen significant inward public and private investment in recent years, with modern Recent research undertaken by Savills confirms Recent research undertaken by Savills cites development and improvements complimenting the historic core of the city. Further projects include: that Oxford house prices have out performed increasing confidence in both office and the regional and national averages, driven industrial sectors in Oxford, with a bias in the u The Westgate Centre – Redevelopment of this important 14 acre site on the western edge of the city by continued demand from occupiers and industrial market towards smaller units under centre is set to commence imminently, following grant of planning permission for circa 100 shops investors attracted by top schools, strong local 20,000 sq ft. In general rents are rising and with John lewis secured as an anchor tenant, 120 homes, a cinema and extensive leisure offer. employment and a high standard of living. incentives falling, with a corresponding drop in yields being achieved on freehold sales. u Barton Park – initial infrastructure work lead by a joint venture between Grosvenor Developments Historic low levels of supply of new build housing and Oxford City Council is expected to begin in 2015, unlocking this 900 dwelling development are set to increase over the short to mid term, Research as well as information regarding on the north eastern edge of the city; with high eco standards and exemplar community facilities, driven by large scale schemes such as Barton key commercial lettings and sales is available including a linear park, primary school and retail hub, the scheme will set the benchmark for new Park and the Northern Gateway – however the within the data room. development within the area. recent Oxfordshire Strategic Housing Market Assessment, undertaken by all five Oxfordshire u Northern Gateway – A draft Area Action Plan providing a development framework for this important district and city councils indicates that demand mixed use site on the northern fringe of Oxford proposes 90,000 sq m of commercial space will continue to outstrip supply. focussed on the research and development sector, plus 500 new homes. Research as well as information regarding key u Oxford Rail Station – A recently adopted masterplan for the Oxford Train Station and surrounding new homes sales comparables is available area promotes circa £75m of works including improved platform arrangements and station facilities, within the data room. and commercial and residential development, aimed at delivering a transport hub worthy of the world famous City of Oxford. u Frideswide Square - £5m of works will begin Autumn 2014, reducing congestion and providing improved public realm. “The University of Oxford is ranked 1st in u Water Eaton Parkway Station – a new Parkway Station is planned to open in Summer 2015, adjacent to the existing Water Eaton Park and Ride to the north of the city, complimenting improvements to the UK and 5th in the World” the existing Oxford Rail Station.

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National Student Accommodation Market

The student accommodation investment market has been The main driver for the strong performance of the sector is the also emerged as lenders, with the likes of L&G, M&G, and AIG all characterised by a positive level of transactional volumes and a low structural supply/demand imbalance prevalent in the UK in terms lending into the sector for long term money. volatility in rental and yield over the last 7 to 10 years. Although of purpose built student accommodation. Aside from these supply/ certainly not immune to the economic downturn, it has proved to demand characteristics, other factors supporting investment, The autumn of 2012 saw the “perfect storm” with the introduction be a resilient asset class and has demonstrated counter-cyclical particularly when compared with other residential investment of higher tuition fees, a drop in A-level grades, UKBA issues and characteristics in comparison to wider property market movements. asset classes, include the potential to secure commercially-driven the impact of AAB caps on student numbers. As a result there were income streams with annual rent reviews, rental growth and an university and private operators who experienced an increase in The volume of deals in the student sector has been high, suggesting inherently lower risk profile as a result of the ‘granular’ nature of voids in their accommodation portfolios. that investors have continued to see value in the sector when the income/tenant profile. compared to other asset classes. Over the last 4 years we have Since then, take up of university places has steadily improved year seen the following level of transactions based on gross assets sold: Improved debt availability and greater lender choice for those on year with a number of operators with portfolios of 5,000+beds investors with a good track record has encouraged more have indicated that occupancy rates are stronger than for u 2011 circa £1.5 billion development funding and trading of assets, in turn evidencing more 2014/2015 than they were for 2013/2014. confidence within the sector. The market has witnessed increased u 2012 over £2.6 billion activity from institutional investors such as M&G and LaSalle u 2013 circa £2.8 billion Investment Management as they move away from traditional long-hold investments towards direct let assets providing prospects u 2014 circa £1.4 billion to date (Sept 2014) for income control at a granular level. Insurance companies have

Oxford Brookes 9 1 / 9 OXFORD BUSINESS CENTRE OXFORD, OX1 1TB

Student Language Accommodation Schools in Market in Oxford Oxford

Oxford Brookes University is ranked 49th in The University of Oxford is ranked 1st in the Within Oxford there is a particularly high number the sector by The Times Good University Guide sector by The Times Good University Guide of international language students who study 2015 and had 7.4 applicants per place. Oxford 2015 and has 5.5 applicants per place. It has a on a short and long term basis and may require Brookes University has a total of 13,070 full total student intake of 25,670, of which 18,830 accommodation. There are in the region of time Higher Education students registered. (73%) are full time. There are 11,525 (61%) 30 language colleges in Oxford catering for Of the total student intake, 11,295 (86%) are full-time undergraduates and 7,305 full-time overseas students. The students tend to reside in full time undergraduates and 1,775(14%) are (39%) postgraduates. There are 7,015 (28%) either Halls of Residence, Homestays or in HMO postgraduates. Of the University’s full time intake, international students. style accommodation. 3,230 of its students (25%) are from EU / overseas (HESA 2012/13). Oxford is the oldest and probably the most The prominent language schools Include: famous university in the English-speaking world. Oxford Brookes is one of the UK’s leading modern The introduction of £9,000 fees had predictably u Kaplan International Language School universities and enjoys an international reputation little impact on the demand for places. There are u Bellerbys for teaching excellence and innovation as well 30 undergraduate colleges. as strong links with business and industry. The u Kings College Oxford demand for places following fee increases barely Oxford’s biggest capital development for dropped in 2012 and continues to have more more than a century will provide more student u EF International Language School than 7 applicants per place. Planned campus accommodation for neighbouring Somerville developments on Headington, Wheatley and College, a new Mathematical Institute building u OISE Harcourt Hill over the next few years will involve and a new building for the humanities. Among £132 million being invested in new libraries and the many current projects is an £11m Middle East u St. Clare’s teaching space. Centre, due to open in 2014. u Regent

u Oxford International Study Centre

u British Study Centres

u College of International Education

u Lake School of English

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Direct Let Student Accommodation Comparables

WEEKLY WEEKLY TENURE SCHEME NAME OPERATOR ROOM TYPE TERM RENT LENGTH 14/15 Direct Let Alice House The Student Housing Company Studio 51 £220.00 Direct Let Cheney UPP / Oxford Brookes University Single En-Suite 50 £132.18 Single En-suite 42 £156.00 Studio 50 £181.50 Nominations Agreement Dorset House CRM Standard Studio 50 £190.00 Large Studio 50 £195.00 Single En-Suite 42 £145.00 Nominations Agreement Slade Park CRM Studio 50 £173.50 Nominations Agreement Sinnet Court Dominion Housing Group Single En-Suite 50 £117.91 Medium Double En-suite Studio 51 £175.00 (Classic) Medium Double En-suite Studio 51 £210.00 (Mansion) Direct Let 4-6 Cambridge Terrace Mansion Medium Double En-suite Studio 51 £221.00 (Premium) Large Double En-suite Studio 51 £201.00 (2 bed flat) Classic 4-6 bed En-Suite 34 £175.00 Direct Let Mansion Mews Mansion Premium Studio 34 £215.00

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Oxford Student Market Statistics u University bedspaces – circa 16,098 Student Accommodation Provision (PBSH) Proportion of Students at Home/in HMO’s or in PBSH for full time STUDENTS u Private accommodation bedspaces – circa 1,415 PBSH Full Time Student Numbers u Development pipeline – 885(Sept 2014) PBSH (No Beds) Students in HMO’s / At home u Total existing accommodation – circa 17,513 50000 15000 u Total existing accommodation + development pipeline – 18,398 40000 12000 u Current Supply vs. Demand – 17,468 / 31,900 (OBU) = 54% 30000 9000 u Supply vs. Demand (incl. pipeline) –18,398 / 31,900(OBU) = 57% u Students Not Housed in Purpose Built Accommodation 20000 6000 (incl. pipeline) – circa 14,432 10000 3000

Source: HESA & Savills Research 0 0 University of Oxford Oxford Brookes Total University Provision University & Total Inc Development University Private Sector Pipeline

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Tenure Supporting Contacts

The site is held Freehold. Dataroom Lizzie Whetman MRICS Jason Hill MRICS Savills Student Accommodation Team Savills Development, Oxford Information 0207 016 3863 / 07807 999 174 01865 269019 Disposal [email protected] [email protected] A dataroom including relevant planning, legal Matt Davis MRICS method and technical information is available and Savills Development, Oxford managed by the vendor’s appointed solicitor, 01865 269000 / 07812 965 301 Our clients have instructed us to sell the scheme ASB Law. Access can be secured via Savills, [email protected] through an informal tender process. A date for please contact us for details. offers will be set and interested parties will be notified accordingly. Please note that our client is not obligated to accept the highest or any Viewings other offer. Offers should include the following information: Viewings are to be arranged strictly through Savills. The site can be viewed externally but 1. Purchase price. please be aware that parking on site is managed by permit, and permission should be sought prior 2. Identity of the purchaser - please state track to visiting. Accompanied viewings will be offered record with any supporting information. during the marketing period, please contact us to reserve a viewing slot. 3. Solicitor’s details. 4. Finance details (if applicable) or proof of funds vat 5. Extent of due diligence undertaken to date and further due diligence required prior to The property is elected for VAT. It is anticipated Important Notice purchase. that the sale will be treated as a TOGC. 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 6. Proposed timetable for exchange/completion. 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. 7. Details of Board or any other approvals that 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only may be required. 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 8. Any other matters to which the offer is subject. must satisfy themselves by inspection or otherwise. Rents quoted in these particulars may be subject to VAT in addition. October 2014