Quayside DAS HOUSE, NORTH QUAY HOUSE & SOUTH QUAY HOUSE TEMPLE BACK | BRISTOL | BS1 6NH SOUTH QUAY HOUSE DAS HOUSE NORTH QUAY HOUSE A RARE OPPORTUNITY TO ACQUIRE THREE OFFICE BUILDINGS IN A PRIME TEMPLE QUARTER WATERFRONT LOCATION WITH SIGNIFICANT ASSET MANAGEMENT OPPORTUNITIES QUAYSIDE | BRISTOL 3 EXECUTIVE SUMMARY Quayside, Temple Back, Bristol BS1 6NH Bristol is the regional and business capital of the South West of England and one of the UK’s major commercial and financial centres. It is the UK’s 5th largest city with an urban zone population of 1.6m residents. Quayside is located within the heart of the Central Business District and Temple Quarter, a major commercial and residential growth area for the city, and a short walk from Bristol Temple Meads station. Major employers in the vicinity include PwC, Ernst Young, Burges Salmon, Royal Bank of Scotland, Osborne Clarke, Deloitte, OVO Energy and various large government departments. Quayside is a collection of three prominent office buildings, ranging from four to seven storeys, that provides around 96,347 sq ft of net lettable accommodation and 57 secure car parking spaces. Quayside provides good quality highly flexible accommodation with floorplates ranging between 5,512 sq ft and 8,355 sq ft and an excellent parking ratio of 1:1,655 sq ft. The principle tenants, DAS Insurance, DAS Legal and Unite Integrated Solutions account for 93% of the income. The properties provide an average weighted unexpired lease term of 4.43 years to expiry and 4.26 years to break. The current passing rental is £1,833,781 per annum, equating to a low average rent of £19.43 per sq ft, offering the platform for significant reversionary income. Bristol’s occupational market continues to see an imbalance between landlord and tenant and has witnessed Grade A rents increase from £28.50 per sq ft to £35.00 per sq ft since late 2017, an increase of 23%. Quayside provides a very exciting opportunity to reposition this prime waterfront located asset through the significant opportunities for income growth by way of rent reviews, refurbishment, redevelopment, leasing and regears. Freehold. We are instructed to seek offers in excess of £25,000,000 (Twenty Five Million Pounds), subject to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level would reflect an overall net initial yield of 6.87%, assuming standard purchaser’s costs of 6.76%. This reflects an overall capital value of £260 per sq ft. QUAYSIDE | BRISTOL 5 BRISTOL “In 2014 & 2017, Bristol was named Best Place to Live in Britain” Sunday Times DEMOGRAPHICS Bristol is the 5th largest conurbation in the UK and the capital of the The city has benefited significantly from relocations and expansion South West. It has an estimated population of 456,000 and a larger around occupiers including Rolls Royce, Ministry of Defence, BBC, urban zone with an estimated 1.6 million residents and is amongst Airbus, Lloyds Bank, National Composite Centre and numerous large the most attractive, successful and culturally prestigious cities in legal practices. the UK, enjoying a rising profile within Europe and beyond. In 2017 Bristol was named as the only fast growing, globally According to the 2011 Census, Bristol has a high proportion of significant tech cluster in the UK (McKinsey and Co) and the UK’s working age people (71%) against a UK average of 63%, and this largest digital cluster outside of London. figure has increased by 21% since 2001. Furthermore, Bristol has a higher percentage (54%) than the UK average (51%) in socio economic groupings of higher, intermediate and supervisory EDUCATION & CULTURE managerial, administrative and professional groups. Moreover, Bristol has a highly educated population with 49% having obtained The city benefits from two outstanding and significant universities, a degree against a national average of 38%. the University of Bristol and the University of the West of England, with the University of Bristol being the second most targeted university by employers in the UK. These contribute to Bristol’s ECONOMY & EMPLOYMENT skilled labour pool, which has one of the highest retention rates in the UK. Most recently the University of Bristol incubator spin-out Bristol’s economy showed strong resilience during the recession, company Ziylo, has been bought by global company Novo Nordisk Clifton Suspension Bridge achieving the highest annual growth rate of all core cities (1998- for c.$800 million. 2006 at 6.2% per annum) and has remained the most productive. “Bristol has been named Europe’s trendiest city” Combined, the universities have a population of 52,000 students The city’s economy is now worth £14.31bn up from £13.67bn in 2015 and the University of Bristol has significant growth projections. The National Geographic Travellers and has the third highest number of business start ups in the UK Development has commenced on the University’s new £350 million (94.2 per 10,000 working age population). Temple Quarter Enterprise Campus adjacent to Bristol Temple Meads railway station, which is due to open in 2022. The new According to the 2017 survey, Bristol has 237,500 working age campus will include a digital innovation hub, a business school of residents, the equivalent to an employment rate of 77.2% which the future and a new student village. is the highest of all British core cities and 2.8% above the national average. Between 2011 and 2015, the number of employee jobs Bristol has been identified by NESTA as among the UK’s “creative in Bristol grew by 10.8%, the 3rd fastest growing of all British hotspots”, promoting innovation and economic growth. core cities. Bristol has a long association with the ‘green’ movement and is Its success is based on its world class knowledge economy based proud of its status as the ‘European Green Capital 2015’, the only in aerospace, defence, engineering, ICT & electronics, financial UK city to have been awarded the accolade. services, media, creative and environmental industries, along with the global reach of its two universities. Further information is available at: bristoltemplequarter.com & investinbristol.com It is a popular relocation destination, supported by a flourishing TMT, professional and financial service sectors. users money-bill GRADUATION-CAP Seedling Estimated population The city’s economy is now worth Two outstanding and significant European Green of 456,000 £14.31bn universities Capital 2015 “Bristol – UK’s leader in smart cities” Huawi “Bristol – Most productive core region” Tech Nation Temple Quay 6 QUAYSIDE | BRISTOL 7 CONNECTIVITY “The city centre benefits from excellent road, rail and air communications” ROAD RAIL Bristol is strategically located at the junction of the M4 and M5 Bristol Temple Meads Station is located centrally and within a motorways, 118 miles west of London and the city centre benefits 6 minute walk of the property, providing regular direct intercity Queen Square from excellent road communications being only 4 miles from the services to the UK’s major cities. The mainline to London Paddington M4/M5 intersection. The M4 is the east-west axis from London to is currently undergoing electrification works costing more than Cardiff, whilst the M5 is the north-south west axis from Birmingham £4.8bn, which are due to go operational in Q4 2019 and will reduce to Exeter. the journey times to London by around 20 minutes as well as provide significantly more capacity. The M48 motorway and Second Severn Crossing provide strong road links to Cardiff and South Wales and the M32 motorway spur links JOURNEY TIME BY RAIL the M4 to Bristol city centre. Destination Journey time DISTANCE BY ROAD Cardiff 45 minutes Destination Distance Reading 1 hour 10 minutes Bristol Temple Meads Pero’s Bridge London 118 miles Birmingham New Street 1 hour 23 minutes Birmingham 88 miles London Paddington 1 hours 37 minutes Manchester 169 miles Manchester Piccadilly 2 hours 58 minutes P A38 e m Exeter 80 miles Glasgow 5 hours 47 minutes b M32 r o k t f e o To M4 / M5 y Cardiff 44 miles Edinburgh 5 hours 52 minutes R r W a d C W h s d i e n t k a e l Bath 12 miles l o d a t n u d S o i f e w s Bristol e N R Royal A420 o S a t Bon d . Infirmary d Stre M Bus et ic AIR h Station a e l ’s H Cabot i t Bristol International Airport lies 8 miles south of the city centre ll Broadmead Circus e e EDIEDINBURGHNBURGH r M8 University t ad Shopping Centre t e e t S and is serviced by a dedicated coach link. It offers direct flights to e M e s U d of Bristol r in re t t w t n n ee GLASGOW S o r S e i t L rt o Quakers Friars S To A4320 h B et over 125 destinations throughout the UK, all of the major European e n k g up ar u R S d M St Philips Causeway M74 o t l r S eir O economies and also the USA. To Clifton o m d W lb a r a ro l B a l d M S Old Market NEWCASTLE R Colston s t l re t FLIGHT TIMES FROM BRISTOL INTERNATIONAL AIRPORT l Hall e S e t ine W e W Castle Park d ’s a A74(M) b r o a A1(M) P c P t a e Destination Flight time a r s re J k e t y S n S i a n t t Finzels nterslip r u r u e s o o Q C e C Frankfurt 1 hour 35 minutes LEEDS u Reach t g d a T u e o t A B e e m r aldwin Str t p B T Amsterdam 1 hour 10 minutes Brandon S e le m B Hill p a M180 c le k MANCHESTER S College V Brussels 1 hour 10 minutes t M62 M18 ic Green t Rail line to k o r c i a y a London Paddington Paris 1 hour 5 minutes M56 S a S B R t W t r h e e T e s d e l M1 l Redcliff h t c p e o d l Temple a t i Madrid 1 hour 55 minutes o m f Quarter m r R W NORWICH o S ch f e n a M6 A Quay e Queen S T s