SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB INVESTMENT SUMMARY POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB • Modern high quality detached office building totalling 35,842 sq ft with 116 car spaces, on a site of 0.57 hectares (1.4 acres). • Situated within an established business location in a prominent position in close proximity to both Manchester Airport and Manchester City Centre. • Freehold. • Let to Thales Properties Ltd with a guarantee from Thales Holdings UK Plc on a reversionary 10 year lease (no break) from 14th September 2019, at a current passing rent of £500,000 per annum. • For the year ending 31st December 2017 Thales Holdings UK Plc reported a net worth of £1.13bn. • The company has a financial strength assessed by Dun and Bradstreet of 5A1, representing a minimum risk of business failure. • Thales are very well established in the immediate vicinity, occupying four additional buildings in close proximity to Poseidon House. • Offers are invited in excess of £6,500,000 reflecting a net initial yield of 7.21%, 7.54% on the SPV and a low capital value of £181 psf, assuming purchaser’s costs of 6.64%.
SECURE 5A1 LONG INCOME OFFICE INVESTMENT
A A5145 514 5
STOCKPORT
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1 POS IDON HOUSE 4 M60 5
OAKHURST DRIVE • CHEADLE • SK3 0XB K I N
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LOCATION 560 M60 A E CHEADLE HEATH N LA
AW J2 S PSH HA HEM Manchester is regarded as the UK’s W
H E AY second largest financial centre outside N W CIA EDG MER A London and is the administrative and ELEY T ROA H D
commercial hub of the North West 0 6 5 A
region. C A L E B G I R R E Manchester has the second largest D E
H N A urban population and the largest L L HEAVILY 0 C A 56 O L business centre outside London. As U A N N C E I such it is recognised as the financial L
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R POSEIDON and administrative capital of the North
R ADSWOOD
O West. It is located approximately 34 A HOUSE
D L A miles east of Liverpool, 44 miles west D Y DAVENPORT of Leeds, 87 miles north of Birmingham C B OU R N I C D and 207 miles north-west of central IL G LO E R R OA London. RO D AD DAVENPORT
The City benefits from an excellent ADS WOOD R ANE transport infrastructure, with the OAD GAMERS L M60 orbital motorway connecting directly with the M56, M67 and M62 motorways. In addition, both the M56 LEEDS A1(M) and M62 subsequently link with the BRADFORD ColnE AIRPORT M6 motorway. As a consequence, Leeds BLACKPOOL M55 BrADFORD approximately 60% of the UK’s BLACKBURN M65 BURNLEY M621 population is within a two hour drive PRESTON M606 time. M62 SOUTHPORT M6
Cheadle is situated within the Borough M62 SCUNTHORPE
of Stockport, which is one of the largest M18 towns within the Greater Manchester M61 BARNSLEY Doncaster conurbation. ManchestER M602 M1 M67 LIVERPOOL M57 M60 M67 A1(M) M62 1 4 miles from Manchester International 3 2 CHEADLE SHEFFIELD Airport LIVERPOOL JOHN M56 LENNON AIRPORT MANCHESTER M53 INTERNATIONAL AIRPORT M56 SECURE 5A1 LONG INCOME OFFICE INVESTMENT M1 Chester
M6
WREXHAM STOKE-ON-TRENT NOTTINGHAM A5103 INWARD INVESTMENT & INFRASTRUCTURE IMPROVEMENTS
M60 5 Airport City UHSM Medipark TO MANCHESTER CITY CENTRE h Airport City is 4 miles from Poseidon House and being created The Manchester MediPark brings together c.200 acres of Metrolink through phased delivery over the next 15 years and upon developable land, in and around UHSM, next to Airport City.
A560 completion, will provide up to: MediPark is a gateway from the Airport to a pool of ‘talent’ M60 3/1 which has few rivals, and comprises a 7 mile long corridor from 2 • 1.4m sq ft logistics & industrial Manchester’s University quarter to UHSM, which hosts the highest 3a TO STOCKPORT • 1m sq ft offices concentration of higher education and specialist institutes in g POSEIDON M67 & EAST HOUSE • 650,000 sq ft advanced manufacturing Europe. UHSM Metrolink M56 • Circa 2,400 hotel beds MEDIPARK • 100,000 sq ft ancillary retail HS2
4 Manchester’s Airport City will become an international destination This will extend high speed lines to Manchester with two proposed Simonsway in its own right. The scheme is being developed by its joint stations at Manchester Airport and Manchester Piccadilly, served by venture partners: 5 a spur off the main line.
HS2 HEALD On completion the fastest journey times to London Euston are AIRPORT GREEN CITY NORTH anticipated to reduce by 60 minutes, to 1 hour 8 minutes. Manchester 6 Airport Metrolink (Manchester Airport Line) M56 Manchester Airport Link Road M56 MANCHESTER AIRPORT CITY SOUTH INTERNATIONAL The Airport Line opened in November 2014. The nine mile AIRPORT A34 Construction of the A6 to Manchester Airport Relief Road Scheme extension to the existing system has 15 stops and runs from St completed in October 2018. The route provides 10 kilometres of f TO M6/M62 Werburgh’s Road in Chorlton, via Sale to Manchester Airport. BIRMINGHAM new 2-lane dual carriageway on an east-west route from the A6 & SOUTH near Hazel Grove (south east Stockport), via the 4 kilometres of existing A555 to Manchester Airport and the M56. Styal Road The scheme provides much-needed connectivity for key strategic routes into the North West and to Manchester Airport, including A56 traffic from the A6, A523 and A34 – all of which are key routes M60 S C R for business, leisure travel and freight from Cheshire, Derbyshire, Staffordshire, and beyond. H SHA
A6 Key benefits of the scheme include: M56 POSEIDON HOUSE HA L R · Economic growth generating additional economic A5 2 output for the region of up to £2.5 billion and H AL R contributing towards the creation of up to 5,000 A new jobs; · Improved access to Manchester Airport and other key MA CH S R A R R destinations, particularly for Cheadle Royal A555 · Reduced congestion; HA R H A · Shorter journey times; · Increased investment encouraged in
S R A South Manchester. R R S L R A
SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB Morrisons Stockport Academy
Cheadle Heath Police Station POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB
No.1 Park Square Biz Space Hercules Park
Orion Business Park
POSEIDON HOUSE
Bird Hall Lane
C HEAD LE HU LME >
SITUATION
Cheadle is an affluent town situated approximately 6 The immediate surrounding buildings are characterised by Nearby leisure and retail amenities includes Cheadle High miles south of Manchester and 3 miles west of Stockport. office, industrial and trade counter uses with companies Street (5 minute drive), Cheadle Hulme Shopping Centre Cheadle has a population of approximately 60,000 and including: Bosch, Landis+Gyr, Biz Space, Emcor, DAI and (5 minute drive), Cheadle Royal (Sainsbury’s, John Lewis), forms part of the Manchester commuter belt with nearby Panalpina World Transport situated in the vicinity. David Lloyd and De Vere Hotel are all located a 10 minute towns including Cheadle Hulme, Bramhall, Wilmslow and drive away. Alderley Edge. A Morrisons and Lidl supermarket are within walking distance whilst Cheadle Heath Police Station is 0.6 miles In addition, Thales also occupy further space within three Bird Hall Lane is a well-established business location within to the north of Poseidon House. separate buildings on the adjacent Lawnhurst Trading Cheadle. The property is prominently located just off Bird Estate, including Dolphin and Eagle House. The Thales Hall Lane, less than 1 mile south of the A560 Stockport Beyond the immediate commercial surrounds are affluent workforce at Poseidon House of approximately 300 staff Road which connects Junctions 1 and 2 of the M60. residential suburbs, including various schools, parks, golf is highly skilled, and retains strong ties with the significant clubs and sports clubs. engineering departments at Manchester’s universities.
SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB
DESCRIPTION
The subject property comprises a high quality modern detached self-contained office The property has a tarmacadam surfaced car park providing 116 spaces at a ratio of 1:309 building which provides flexible accommodation arranged in an ‘L’ shape over three floors. sq ft. The total site area is 0.567 hectares (1.401 acres), including a small additional plot of The property was constructed in 2004 and benefits from the following specification: land which provides for 26 of the car parking spaces.
• Fully glazed entrance and reception; Thales own the freehold of the car park that fronts Ashurst Drive, which provides • Full access raised floors; significant additional parking provision for Poseidon House. • Suspended ceilings incorporating category 2 lighting; • Gas fired heating; • Fan coil air conditioning; • Two 8 person capacity 680kg passenger lifts; • Male/female/DDA compliant toilet facilities are provided on each floor; • Entrance to the site is provided by an electronic gate system.
SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB
ACCOMMODATION
The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following net internal floor areas:
Description sq m sq ft Ground Floor 1,098 11,824 First Floor 1,118 12,009 Second Floor 1,118 12,009 Total Net Internal Area 3,334 35,842
EPC
The property has an energy performance rating of C75. The Energy Performance Certificate is available on request.
SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB
Osprey House Fa lcon House s C urrent O
14 15
Enterprise El Sub Sta House
Bird Hall Lane
TENURE TENANCY El Sub Sta Lawnhurst El Sub Sta Freehold. The entire property is let on a lease Eagle Trading House Phoenix to Thales Properties Ltd, with a Estate House Whilst only the site highlighted red guarantee from Thales Holdings UK El Sub Sta here is subject of the sale, the tenant Plc. The tenant recently signed a 16
13 El Sub Sta occupies a number of adjacent sites reversionary lease for a term of 10 C R on a leasehold and freehold basis. years from 14th September 2019. ESS Oakhurst Drive Dolphin Clearly this demonstrates the The annual rent of £500,000 is House 4 tenant’s commitment to this location. subject to an OMV (upward only) rent Ashurst Drive review after 5 years. 1
The tenant will benefit from a rent
2 1
3 free period from 3rd October 2018 85 23 5 4 to 3rd March 2020, in addition to 6 Garage
a capital contribution of £500,000 35
payable on the 14th September 83 47 13
2019. Any outstanding incentive will POSEIDON HOUSE 10 2
7
9 Ward Bdy
be topped up by the vendor. 8 25 THALES LEASEHOLD onst & C
Kestrel Boro
55 37 1
House 1 8
10 THALES FREEHOLD
PARS 49
O 2
NA 1 1 13 1 GE 5 W 7 SECURE 5A1 LONG INCOME OFFICE INVESTMENT A FB AD O R
T 67 RS U H
EC E B POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB COVENANT
Thales develop, and supply technology and services that impact the lives of millions of Additionally, Thales runs a number of other projects from Poseidon House and its people each day to make life better, and keep us safer. Thales innovate across five major adjacent occupation, including Ground Transport Systems (GTS – Metrolink and London industries: Underground) and 6UK, which provides nuclear power station control systems.
Aerospace • Defence • Ground Transportation • Security • Space The vast majority of Thales contract work is derived from the Ministry of Defence.
Thales in the UK operates within the civil and defence markets, working with a range of For the past three financial years the tenant and guarantor have recorded the following customers to help them overcome their challenges: accounts:
Thales Properties Limited – 4A1
Fiscal Non Fiscal Non Fiscal Non consolidated GBP consolidated GBP consolidated GBP 31 Dec 2017 31 Dec 2016 31 Dec 2015 (000’s) (000’s) (000’s) Sales Turnover 19,306 18,860 18,159 Profit / (Loss) (2,003) 316 (1,102) Before Taxes • Thales are the number one global provider of air traffic management systems, equipping more than 160 air traffic control centres, covering over 40% of the world’s Tangible Net Worth 31,047 33,050 32,734 airspace. Net Current Assets (32,813) (26,601) (20,043) • Thales provide the eyes and ears for the Royal Navy; situational awareness sensors (Liabilities) and systems, allowing fleets to safely execute missions with greater visibility of their surroundings out at sea. Thales Holdings UK Plc – 5A1 • Thales are currently working with Transport for London to deliver the Four Lines Modernisation (4LM) programme. 4LM is a project to upgrade the signalling systems of Fiscal Non Fiscal Non Fiscal Non the Circle, District, Hammersmith & City and Metropolitan lines, increasing the overall consolidated GBP consolidated GBP consolidated GBP capacity and efficiency of the London Underground. 31 Dec 2017 31 Dec 2016 31 Dec 2015 (000’s) (000’s) (000’s) • Thales have worked with the UK Space Agency to open the UK’s first Space Electric Propulsion Integration Centre in Belfast, making electric propulsion systems for Profit / (Loss) (11,900) 2,043 14,118 satellites. The propulsion systems raise the satellites into orbit, after separation from Before Taxes the launch rocket, providing manoeuvrability to keep them on station. Tangible Net Worth 1,130,336 1,142,236 1,136,060 Net Current Assets (576,849) (982,917) (1,020,628) Poseidon House is home to the underwater systems and information systems division (Liabilities) of the Thales Group, which was established in Cheadle Heath in 1977. Thales Maritime Mission Systems (MMS) and Thales Defence Mission Systems (DMS), formerly Thales Underwater systems (TUS) and Thomson Marconi Sonar, specialises in sonar systems for submarines, surface warships and aircraft as well as communications masts and systems for submarines. SECURE 5A1 LONG INCOME OFFICE INVESTMENT POS IDON HOUSE OAKHURST DRIVE • CHEADLE • SK3 0XB
OCCUPATIONAL MARKET
Over the course of the past 24 months the out of town office market has seen a marked enhancement with tenant and investor appetite continuing to improve. As the economy has recovered, vacancy rates in the sub market have slowly decreased, assisted further by the rapidly increasing rents in Manchester City Centre, together with the complete lack of speculative development within the south Manchester office sector. Permitted development and change of use strategies have further eroded the available supply.
Take up in the South Manchester office market exceeded 635,000 sq ft in 2017, the highest in recent years and 17% above the 5 year average. This strong demand continued into Q1 2018 with take up totalling 169,170 sq ft.
Prime rents in South Manchester have reached £24.00 per sq ft with secondary refurbished rents from £17.50 to £20.00 per sq ft. We anticipate further rental growth for refurbished buildings as supply for modern space continues to reduce INVESTMENT MARKET and the development pipeline remains limited. The North West Out of Town office market has witnessed over £500m in transactions over the last 2 years with notable transactions including Birchwood Park, Soapworks, Exchange Quay, Manchester Green and Trident Business Park. Area Rent Date Property Tenant Manchester Airport and Salford Quays have attracted the majority of this recent investment, which is linked to strong (sq ft) (psf) occupational activity and infrastructure improvements. March Manchester Green, 6,934 CTS £17.50 2018 Airport Prime Out of Town Office yields are in the region of 6.50% offering a 200 bps discount to Manchester Prime City Centre Office Yields. This pricing discount combined with rental growth prospects continue to attract a diverse base of UK and Jan The Hut 4M, Airport 27,758 £22.00 International Investors. 2018 Group Dec Area AWULT Cap Val MIOC, Airport 3,164 X-Rite £17.50 Address Date Price NIY 2017 (sq ft) (years) (psf) Oct Altitude, Atlas EMCOR 5,317 £17.50 Eden House, Chester Business Park Quoting 21,750 5.8 £4,250,000 7.25% £195 2017 Business Park Group Sept Manchester Green, Assetz Claremont House, Birchwood Quoting 15,516 10.5 £2,750,000 7.25% £177 14,687 £18.00 2017 Airport Capital Unit 3, Cinnibar Court, Daresbury Park U/O 6,070 8.0 £1,431,000 7.00% £236 Sept One Didsbury Point, Carrier 8,255 £18.00 2017 Didsbury Travel Kone, Worth Bridge Road, Keighley Feb-18 26,932 10.0 £4,750,000 7.57% £176 July Towers Business Park, Renaissance House, Centre Park, Warrington Jan-18 40,679 10.0 £10,850,000 5.60% £266 3,850 Stryker £24.00 2017 Didsbury Sonova House, Centre Park, Warrington Dec-17 43,392 10.5 £12,760,000 5.50% £300
SECURE 5A1 LONG INCOME OFFICE INVESTMENT Unit 2, Wellfield Business Park, Preston Brook Oct-17 6,175 9.6 £1,225,000 7.25% £198 VAT FURTHER INFORMATION POS IDON HOUSE We understand the property is elected for VAT and therefore we Simon Marshall OAKHURST DRIVE • CHEADLE • SK3 0XB anticipate the transaction will be treated as a Transfer of a Going DDI: 0161 235 7641 Concern (TOGC). Mobile: 07909 718235 Email: [email protected]
INVESTMENT PROPOSAL Giovanni Pilla Offers are invited in excess of £6,500,000 reflecting a net initial DDI: 0161 235 7672 yield of 7.21%, 7.54% on the SPV and a low capital value of Mobile: 07976 154459 £181 psf, assuming purchaser’s costs of 6.64%. Email: [email protected] SECURE 5A1 LONG INCOME OFFICE INVESTMENT
Cushman & Wakefield, for themselves and for the vendors or lessors of this property whose agents they are, give notice that: 1) The information contained within these particulars has been checked and is understood to be materially correct at the date of publication; 2) All descriptions, statements, dimensions, references to condition and permissions for use and occupation or other details are given in good faith; however, they are made without responsibility and should not be relied upon as representations of fact. Intending purchasers or lessors should, by enquiry to this office, satisfy themselves as to the correctness and availability, in each case, before arrangements are made to view; 3) Unless otherwise stated, all prices, rents, and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; 4) All plant, machinery, equipment, services and fixtures and particulars do not constitute part of an offer or contract; 6) The vendors or lessors do not make or give - and neither do Cushman & Wakefield nor any person in their employment have any authority to make or give - any representation or warranty whatsoever in relation to this property. November 2018 . Designed and produced by Creativeworld. Tel: 01282 858200.