Hotel & Office Investment Opportunity 1-3 Parklands Avenue I Eurocentral Business Park I Motherwell I Glasgow I ML1 4WQ Investment Summary • Well located hotel and office investment adjacent to A8/M8 main Glasgow and Edinburgh motorway • The hotel element is let in its entirety to Dakota Eurocentral Ltd until April 2031 • Current income of £773,055 per annum. Rent reviewed 5 yearly to RPI, collared and capped at 1.5% and 2.5% • Asset management and future development opportunities • Offers are invited. Eurocentral Eurocentral lies in North Lanarkshire where the largest towns are Motherwell, Cumbernauld, Coatbridge / Airdrie and Hamilton. Some 800,000 people live within the travel to work area; Eurocentral’s catchment for labour within 1 hour is over 3 million. Some 68% of the population in the area are of working age, higher than the Scottish average, and 31.9% of these are under 30 years old. The third largest pool of student labour in Britain is present in North Lanarkshire with over 52,000 undergraduates attending 4 university institutions within the catchment. The main employer is the private service sector at some 48.3%, and a further 14.1% of the catchment workforce works in financial services. The Lanarkshire Enterprise Zone, of which Eurocentral was originally part, expired in February 2003, however, “Golden Contracts” have been created preserving 100% capital allowance benefits. As a result, financial / incentive packages were preserved on selected areas. Location Eurocentral is located approximately 15 miles east of Glasgow and 35 miles west of Edinburgh. The subjects are located immediately adjacent to and overlook the A8/M8 main Glasgow to Edinburgh road. The Eurocentral ‘diamond’ interchange provides immediate access to and from the motorway and 3 miles west lies the M73 / M74 Baillieston Interchange linking the M8, M74 (M6) and M73 motorways. Both Glasgow and Edinburgh International Airports are within 30 miles from Eurocentral and the airfreight terminal at Prestwick is within 45 miles. Furthermore, Eurocentral is also the location of Scotland’s first Eurofreight Terminal providing rail services throughout the UK and Europe. Situation The subject property is situated adjacent to Maxim Office Park which provides 750,000 sq ft of office accommodation. The property is located to the north western section of Eurocentral and is accessed via the roundabout at Townhead Avenue directly off Technology Avenue. The office and hotel site extends to hectares (acres). Description The subject property comprises two buildings; the larger being a six storey hotel which is adjoined to a three storey office building. Both properties were constructed in 2006. Office The office building is of steel frame construction and is arranged over ground, first and second floors under a single pitched aluminium roof. The accommodation is open plan in nature and each floor is formed in an L shape. Internally the subject benefits from the following specification: • Raised access floors • Suspended ceiling • Air conditioning • Fluorescent tube lighting • x2 passenger lifts each for a total of 13 people The office benefits from 180 car parking spaces, including 10 disabled spaces. Hotel The property is a 92 bedroom hotel and is of steel frame construction, finished externally with a mixture of black and granite cladding and curtain walling. A glazed finish single storey link provides a connection between the hotel and office building. The hotel is arranged over ground and five upper levels which are access via two 13 person lifts. Internally the ground floor area comprises a main reception, an open plan lounge with access to the bar and grill restaurant. In addition to this there is a small gymnasium, three meeting rooms and a fully serviced commercial kitchen. The internal décor is in keeping with the Dakota standard fit-out and includes; exposed brick walls, visible steel air ducts and a variety of leather and velvet furniture finishes. The hotel provides 90 double and twin rooms and 2 junior suites which are located on the fifth floor. The hotel benefits from 120 car parking spaces, including 8 disabled spaces. Tenure Offers invited for: 1) Heritable (freehold) interest. 2) Newly created 175 year long ground lease at a peppercorn rent. Accommodation Office The subjects have been measured in accordance with the Code of Measuring Practice (6th Edition). The net internal floor area is shown below: Area (NIA) Accommodation sq m sq ft Ground Floor 1,083 11,658 First Floor 1,137 12,248 Second Floor 1,168 12,578 Total 3,389 36,485 Hotel The subjects have been measured in accordance with the Code of Measuring Practice (6th Edition). We calculate the gross internal floor area extends to 4,726 sq m (50,865 sq ft). Tenancy The Hotel is let to Dakota Eurocentral Limited for 26 years from 5 April 2005 until 4 April 2031. The current rent passing is £773,055 per annum, which equates to £7,500 per room. The rent is reviewed 5 yearly to RPI which is collared and capped at 1.5% and 2.5%. The offices are currently vacant. Company Information Fiscal Non consolidated Fiscal Non consolidated Fiscal Non consolidated GBP 31 Dec 2010 GBP 31 Dec 2009 GBP 31 Aug 2009 Tangible Net Worth (435,300) (287,837) (238,324) Net Current Assets (Liabilities) 525,591 1,907,806 1,924,394 Source: Dun & Bradstreet 2012 Dakota Eurocentral Limited have a Dun & Bradstreet rating of N2, with a Risk of Business Failure as ‘Lower than Average’. Investment Considerations & Asset Management · Good location fronting the M8 Glasgow to Edinburgh motorway · Letting of the vacant offices to enhance yield · Alternatively extend the hotel and develop into the vacant offices Proposal We have been instructed to seek offers for our clients interest, on the following basis: 1) Heritable (freehold) interest. 2) Newly created 175 year long ground lease at a peppercorn rent. Further Information Simon Cusiter Oliver Abram Keith McBain +44 (0)131 243 2203 +44 (0)131 225 4221 +44 (0)141 567 6684 +44 (0)7815 135 222 +44 (0)7817 908 944 +44 (0)7855 808 964 [email protected] [email protected] [email protected] © Crown Copyright 2012. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Misrepresentations Act 1967 & Declaration Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy 0131 225 8344 themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to this property. January 2012..