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Home , Leamington Spa, M40 corridor, Whitnash

  OLYMPUS HOUSE

OLYMPUSOLYMPUS HOUSE HOUSE OLYMPUS AVENUE • LEAMINGTON • • CV34 6BF

Long Income Office Investment with Fixed Uplifts

OLYMPUS HOUSE OLYMPUS HOUSE OLYMPUS AVENUE • • WARWICKSHIRE • CV34 6BF [2]

Asset Overview Proposal

• A long let modern office investment with fixed uplifts. We are instructed to seek offers in excess of £11,538,000 (Eleven Million Five Hundred and Thirty Eight Thousand Pounds). • A landmark headquarters office building located on Leamington Spa’s premier office location, Tachbrook Assuming purchasers costs of 6.71%, this reflects anet initial yield of Park, 2 miles south of Leamington Spa town centre 6.75% and a reversionary yield of 7.64% (2027) and a low capital value and 3 miles north of Junctions 13 and 14 of the M40. of £260 per sq ft. • The property occupies an extremely prominent position fronting the A452 Europa Way, which links Leamington Spa to the M40. • A well specified office building extending to 44,411 sq ft across ground and two upper floors, occupying a substantial site area of 5.2 acres. • The property is let to Wright Hassall LLP, a full service legal firm, witha maximum Experian Rating of 100. • Wright Hassall LLP have been in Leamington Spa for almost 175 years and in occupation of the property since 2006. The tenant entered into a reversionary lease in 2013, which expires on 24th December 2032. In addition, the landlord has an option to extend the lease by a further 12 months, therefore providing an unexpired term of approximately 12.5 years. • The passing rent is £752,697 per annum, which reflects a low £16.95 per sq ft. • The lease includes 5 yearly RPI linked rent reviews, annually compounded, subject to a cap and collar of 3% and 1%. The next rent review is in December 2022. Our client will top up the rent to the 2022 review based on a conservative 2.0% per annum to £831,038 per annum (£18.71 per sq ft). • Freehold. OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [3] OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [4]

LICHFIELD M6T M42 M54 TAMWORTH M6 WALSALL WOLVERHAMPTON Location HINCKLEY M1 M6 The property is located on Tachbrook Park, the premier office location in Leamington Spa, DUDLEY M69 2 miles to the South of the town centre. M6 M5 Leamington Spa is located some 28 miles to the south east of Birmingham, 5 miles to the M42 M6 east of and 94 miles to the north west of . KIDDERMINSTER RUGBY M42 A46 Leamington Spa is a prosperous and historic spa town in central Warwickshire, to the south THE PREMIER ROYAL of the along the M40 LEAMINGTON OFFICE LOCATION SPA . It has a resident population of M5 over 56,000, which is more affluent than the IN LEAMINGTON SPA WORCESTER A46 A429 national average, and over 553,000 people STRATFORD living within a 12 mile radius. Leamington Spa UPON AVON has experienced above average employment growth of 2.9% over the last 5 years and the population is forecast to grow by 1.5% over A425 the next 5 years. ROYAL LEAMINGTON Leamington Spa benefits from excellent WARWICK A425 OLYMPUS SPA communication links, being accessed from HOUSE A46 OLYMPUS AVENUE junctions 13 and 14 of the M40. The M40 links A4189 BRIDGE END EUROPA WAY TACHBROOK PARK DRIVE with the M42 to the north west which provides access to the M6 and M5 and the wider A452 B4087 motorway network. A425 HEATHCOTE Leamington Spa railway station operates regular services with a journey time to A452 London Marylebone of 80 minutes and 15 Birmingham New Street of 28 minutes. Birmingham International Airport is some A46 M40 14 A452 TACHBROOK 16 miles to the north west and is one of the MALLORY fastest growing airports in the country and B4087 A425 is currently the 5th largest in the UK. A429 M40

BARFORD

13 OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [5]

Situation TACHBROOK PARK IS AN Tachbrook Park is an established mixed use business park, situated off Europa Way (A452) to the south west of Leamington Spa town centre. The A452 provides a main trunk road link between the town ESTABLISHED MIXED USE centre and Junctions 13 and 14 of the M40. The property occupies an extremely prominent position overlooking the A452. SCHEME WITH OVER Tachbrook Park is the premier office location in Leamington Spa with other high profile occupiers in the town including Tata, Co-Op Energy, 1 MILLION SQ FT OF OFFICE, Kantar, Bridgestone, Sega, Bravissimo, Wolseley Group and Johnson Controls. Tachbrook Park also includes a 91 bed Holiday Inn and site INDUSTRIAL, HOTEL AND CAR adjacent to the Shires Retail Park, which has attracted the likes of Sainsburys, Next, Boots, Halfords and a new M&S food store. SHOWROOM PREMISES The immediate vicinity is currently undergoing a transformation with major residential development providing 4,500 new homes to the area. This also demonstrates the growth of the town. SPA PARK

TACHBROOK PARK

A452 HEATHCOTE INDUSTRIAL ESTATE OLYMPUS AV EUROPA WY

OLYMPUS A452 PINEWOOD AV HOUSE Catesby Estates Residential Development Waterloo Housing Group Residential Development OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [6] OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [7]

MYTON RD A425 WARWICK WARWICK TECHNOLOGY PARK LEAMINGTON

A452 Warwick Catesby Estates GALLOWS HILL District Residential Development Council Site RAILWAY STATION LEAMINGTON SPA SHOPPING PARK Waterloo Housing Group Residential Development

L&Q Estates EUROPA WY Residential Development TACHBROOK PARK A452 HEATHCOTE INDUSTIRAL ESTATE QUEENSWAY M40 J14

HARBURY LN

TACHBROOK PARK DR TACHBROOK RD HEATHCOTE LN

Development

The property will also further benefit from the future planned development in the immediate area. Planning permission has been granted for circa 4,500 new homes by 2029 along the A452 Europa Way corridor, together with schools, healthcare, a care home, sport stadium and leisure facilities with Waterloo Housing, Barratt, Catesby, Lindon Homes, Barwoods and L&Q Estates having already commenced development. OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [8]

Description Accommodation

Olympus House comprises an imposing office building The property has previously been measured by across ground and two upper floors. Developed in Plowman Craven and provides the following Net 1988, the property is of brick elevations, with feature Internal Areas: stone bands beneath a pitch slate roof. The building includes a number of architectural features including a Floor Use Sq ft Sq m circular, domed entrance hall and staircases, a central atrium with roof lights and a boardroom with barrel- Ground Reception 1,006 93.5 vaulted ceiling. Ground Office 15,899 1,477.1 The office accommodation benefits from the following high specification: Ground Stores 640 59.5 • Suspended ceilings incorporating recessed lighting First Office 15,282 1,419.7 and 4 pipe fan coil air conditioning. • Full access raised floors. Second Office 11,584 1,076.2 • Panel radiators. Total 44,411 4,126.0 • Newly refurbished staff restaurant facilities. The property occupies a substantial site area of • Newly refurbished meeting room accommodation 5.2 acres (2.1 ha), providing a very low site density on the ground floor. of 19.6%. • Male and female W/C's on each floor. PARTITION TO ALIGN PARTITION TO ALIGN PARTITION TO ALIGN WITH EXTERNAL WALL WITH EXTERNAL WALL WITH EXTERNAL WALL

Ground Floor First Floor UP UP UP UP UP UP Second Floor

DOWN TO BASEMENT DOWN TO BASEMENT DOWN TO BASEMENT UP UP UP UP UP UP • Two passenger lifts and a goods lift. STORE STORE STORE STORE STORE STORE PIT PIT PIT PIT PIT PIT

VENDING VENDING VENDING VEND VEND VEND

• Extensive basement plant room and storage area. VENDING VENDING VENDING

DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN MALE MALE MALE TOILETS TOILETS TOILETS DISABLED DISABLED DISABLED 0 1 TOILET TOILET TOILET 2 DOWN TO DOWN TO DOWN TO BASEMENT BASEMENT BASEMENT Externally, the extensive, landscaped site offers car FEMALE TOILETFEMALES TOILETS FEMALE TOILETS

UP UP UP COURTYARD (1)COURTYARD (1) COURTYCOURTYARDARD (1) (2)COURTYARD (2) COURTYARD (2) UP UP UP LINK LINK LINK UP UP UP UP UP UP DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN parking for 264 cars, providing an excellent ratio of D.R. D.R. D.R.

D.R. D.R. D.R. D.R. D.R. D.R. D.R. D.R. D.R. 1:168 sq ft. D.R. D.R. D.R. D.R. D.R. D.R. A/C A/C A/C DUCT DUCT DUCT

SERVICE SERVICE SERVICE PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER SERVICE PASSENGESERVICER SERVICE SERVICE SERVICE SERVICE LIFT LIFT LIFT PASSENGER PASSENGER PASSENGER LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT LIFT DATA DATA DATA LIFT LIFT LIFT DATA DATA DATA ROOM ROOM ROOM DATA DATA DATA DATA DATA DATA ROOM ROOM ROOM ROOM ROOM ROOM ROOM A/C ROOM A/C ROOM A/C DUCT DUCT DUCT PASSENGER PASSENGER PASSENGER ELEC. ELEC. ELEC. PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER PASSENGER RISER RISER RISER ELEC. ELEC. ELEC. LIFT LIFT LIFT There are two vehicular access points onto Olympus LIFT LIFT LIRISEFTR RISER RISER LIFT LIFT LIFT ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. ELEC. RISER RISER RISER RISER RISER RISER RISER RISER RISER RISER RISER RISER

CLEANER’S CLEANER’S DOWN DOWN CLEANER’S DOWN DISABLED DISABLED DISABLED VENDING VENDING STORE STORE VENDING STORE VENDING VENDING VENDING Avenue, directly linking to the A452 Europa Way. TOILET TOILET TOILET SHOWER SHOWER SHOWER UP UP UP

MALE MALE MALE MALE TOILETS MALE TOILETS MALE TOILETS TOILETS TOILETS TOILETS FEMALE FEMALE FEMALE FIRST FIRST FIRST TOILETS TOILETS TOILETS AID AID AID FEMALE FEMALE FEMALE MALE MALE MALE FEMALE FEMALE FEMALE VOID VOID VOID TOILETS TOILETS TOILETS VENDING TOILETSVENDING TOILETS VENDING TOILETS TOILETS VENDINTOILETSG VENDING TOILETS VENDING SHOWER SHOWER SHOWER

UP UP UP

VEND VEND VEND CLEANER’S CLEANER’S CLEANER’S VENDING VENDING VENDING STORE STORE STORE

NEW DOOR & NEW DOOR & NEW DOOR &

DOWN DOWN DOWN GLAZED SECTION GLAZED SECTION GLAZED SECTION

UP UP UP STORAGE STORAGE STORAGE TRAINING ROOMTRAINING ROOM AREA AREA TRAINING ROOM AREA

DATA DATA DATA TRAINING ROOMTRAINING ROOM TRAINING ROOM ROOM ROOM ROOM

LOCK LOCK LOCK DOOR DOOR DOOR

PRINTER & PRINTER & PRINTER & PHONE TABLE LOCK DOORPHONE TABLE LOCK DOOR PHONE TABLE LOCK DOOR RECEPTION RECEPTION RECEPTION VOID VOID VOID

LECTURE THEATRE LECTURE(60)/ THEATRE (60)/ LECTURE THEATRE (60)/ TRAINING ROOM TRAINING ROOM TRAINING ROOM Chairs from WH Chairs from WH Chairs from WH existing premises existing premises existing premises

D.R. D.R. D.R. D.R. D.R. D.R. LOBBY LOBBY LOBBY D.R. D.R. D.R. VOID VOID VOID D.R. D.R. D.R. D.R. D.R. D.R.

UP UP UP UP UP UP DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN DOWN UP UP UP UP UP UP OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [9] OLYMPUS HOUSE

OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [10]

U n i t A Tenure Freehold. Tenancy Information

The property is let to Wright Hassall LLP on a full repairing and insuring lease for a term of 15 years from 25 December 2006. In 2013 the tenant entered into a reversionary lease on a term expiring 24 December 2032. In addition the landlord has an option to extend the lease for a further 12 months, therefore providing an unexpired term on approximately 12.5 years. The current passing rent is £752,697 per annum, which equates to a low £16.97 per sq ft. The rent is subject to 5 yearly RPI-linked reviews, which are capped and collared at 3% and 1% respectively. The next review is 25th December 2022. Our client will top up the rent to the 2022 review based on a conservative 2.0% per annum to £831,038 per annum. THE PROPERTY EXTENDS TO Part 2nd floor (2,896 sq ft) has been sublet 44,411 SQ FT ACROSS GROUND to Towergate Insurance at a current rent of AND TWO UPPER FLOORS ON £54,000 per annum reflecting £18.65 per sq ft. A 5.2 ACRE SITE. OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [11]

Covenant Information Market Commentary

WRIGHT HASSALL LLP Occupational Market Investment Market 2020 has been one of the most turbulent years for the regional office As a result of the pandemic the focus from investors has been towards secure income to good market on record, as a result of the uncertainty caused by the Covid-19 quality tenants with excellent credit. This has been characterised by a number of long income pandemic. However with very little in the way of new stock, the M40 Office income deals generating good levels of interest from both domestic and international Wright Hassall LLP (OC315843) has a maximum market is still being choked by lack of supply. investors. A summary of recent transactions is below: Experian credit rating of 100 and has released the following financial results: Prime headline rents in Leamington Spa currently stands at circa £22.50 Size Price WAULT Date Address Tenant Yield although there are schemes which should push this on during 2021. (sq ft) (per sq ft) (yrs) GBP ‘000 31/03/2020 31/12/2018 31/12/2017 At the topped up rent, Olympus House is at a discount compared to Trinity Central, Mar £9.60m prime providing an attractive prospect for future rental growth. Bickenhill Lane, Beiersdorf UK Ltd 25,251 6.40% 7.2 Turnover 25,960 21,613 20,551 2021 (£380) The table below shows the recent key M40 lettings. Birmingham Pre-tax Building One, 1,853 3,122 3,591 Mar £5.49m profit Price Quinton Business Highways Agency 23,154 6.50% 8.0 Date Address Occupier 2021 (£237) (per sq ft) Park, Birmingham Net Assets Nov Brookhill Way, £7.25m Attributable 3,527 4,429 5,367 £23.50 Lloyds 33,150 7.00% 5.5 Current Aura Vacant 2020 (£219) to Members (Quoting) Nov 3 Devon Way, c.£6.65m £21.00 Barnett Waddingham 21,434 6.20% 15.0 Established for 175 years in Leamington Spa, Wright Current Tata, Tachbrook Sublet 2020 Longbridge (£310) (Quoting) Hassall is a top ranked Legal 500 and Chambers UK Technology Drive, Nov ATOS IT Services £10.93m full service law firm based at Olympus House since Beeston 42,915 6.49% 10.0 Current Kantar, Tachbrook Under offer £20.00 2020 UK Ltd (£252) 2007. The company provides legal services including Business Park corporate law, commercial law, litigation and dispute Q4 2019 Regent Sq House, Leamington Pixel Toys Ltd £19.50 Aug Lansdowne Gate, £18.95m National Grid 61,000 6.46% 6.5 resolution, employment law and property law. The Q4 2019 Bishops House, Tachbrook Sumo Digital Ltd £18.50 2020 (£311) firm also covers medical negligence, personal injury, June Sapphire Court, £22.20m AAH Ltd 91,733 6.19% 12.5 contentious probate, business immigration, debt Q3 2019 B2 Technical Centre, Leamington Kwalee £18.50 2020 Coventry (£242) recovery, employee incentives, information governance, professional negligence and private client matters. Wright Hassall relocated to Olympus House in 2006, establishing their headquarters, and have continued to grow now employing over 275 staff with 47 partners. Wright Hassall have enjoyed a period of growth, adding a number of areas to the business to complement their core services. In 2017, they were named as the Nations Leading Law Firm at the National Lawyer Awards. www.wrighthassall.co.uk OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [12] OLYMPUS HOUSE OLYMPUS AVENUE • LEAMINGTON SPA • WARWICKSHIRE • CV34 6BF [13]

VAT Contact

The property is elected for VAT and we For further information or to arrange understand the sale can be treated as a an inspection contact the following: Transfer of a Going Concern (TOGC). Ashley Hudson T +44 (0) 121 233 6443 M +44 (0) 7771 976 848 EPC E [email protected] Jonathan Devaney Further information is available upon T +44 (0) 121 233 6490 request. M +44 (0) 7717 346 610 E [email protected]

Proposal

We are instructed to seek offers in excess of £11,538,000 (Eleven Million Five Hundred and Thirty Eight Thousand

Pounds). Assuming purchasers costs IMPORTANT NOTICE (1) Particulars: These particulars are not an offer, an invitation or a contract, nor part of one. Any information about price or value of 6.71%, this reflects anet initial yield contained in the particulars is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. of 6.75% off the topped up income of You should not rely on statements by Knight Frank in the particulars or by word of mouth or in writing (“information”) as being factually accurate about £831,038 per annum and a reversionary the property, its condition or its value. Knight Frank has no authority to make any representations about the property. No responsibility or liability is yield of 7.64% (2027) and a low capital or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness or reasonableness of the value of £260 per sq ft. information, notice or document supplied or otherwise made available to any interested party or its advisers in connection with the Proposed Transaction. All and any such responsibility and liability is expressly disclaimed. (2) Images: 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. (3) Regulations: 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. (4) VAT: The VAT position relating to the property may change without notice. (5) Financial Crime: In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and source of funds of all parties to property transactions. Knight Frank is the trading name of Knight Frank LLP. Knight Frank LLP is a member of an international network of independent firms which may use the “Knight Frank” name and/or logos as part of their business name and operate in jurisdictions outside the . No “Knight Frank” entity acts as agent for, or has any authority to represent, bind or obligate in any way, any other “Knight Frank” entity. Knight Frank LLP is a limited liability partnership registered in with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names (this can also be found at www.knightfrank.co.uk/about- us). April 2021. carve-design.co.uk 14983/7