MODERN MULTI-LET OFFICE INVESTMENT

ALMONDSBURY BUSINESS PARKBRISTOL BS32 4JT

A highly accessible and popular office park location, located at the M4/M5 interchange.

Modern office accommodation totalling approximately 12,534 sq ft arranged over three floors.

Internally the accommodation benefits from fully accessible raised floors, suspended ceilings and comfort cooling.

The building has undergone a refurbishment in recent years and is presented in excellent condition.

Multi-let to three tenants including Xerox, Marie Stopes and Atos Ltd, all of whom have excellent covenant ratings.

Freehold.

A WAULT of 3.37 years to expiry and 2.72 years to lease breaks.

Total passing rent of £191,569 per annum equating to a low overall rent of only £15.28 per sq ft.

Offers are sought in excess of £1,900,000 (One Million, Nine Hundred Thousand Pounds) reflecting a net initial yield of 9.5%.

Low capital value of only £151 per sq ft.

Opportunities to add value through active management.

Investment Summary

A38

AXIS BETA ALMONDSBURY | BRISTOL | BS32 4JT

M4 (J20)

WILLOWBROOKSHOPPING CENTRE

AZTEC WEST M5 (J16)

M5

Bristol Bristol is the fifth largest city in the UK and is the regional capital of the South West.

Benefits of Bristol include: In 2017 Bristol was voted the best place to live in Britain (The Sunday Times).

Electrification of Bristol’s train lines by 2020 will significantly reduce journey times to London.

Estimated population of 550,000 and 1.6m residents in the wider urban zone.

Bristol is ranked the third highest per capita GDP after London and Nottingham.

A major commercial and financial centre in the UK.

High rate of employment and skilled workforce ranking in the top 10 of UK cities.

The city benefits from two outstanding universities; the University of Bristol and the University of the West of England.

World-class knowledge-economy.

The UK’s second largest technology employer.

Bristol is the European Green Capital in 2015.

Ranked seventh in the UK competitiveness index 2017 of core cities outside of London.

A1

A38

A37A303

A46

A40 A40

A34

A429

A419

A44

A49

A470

A346

M4M4

M5

M5

M40

M40M1

M1

A1(M)

A1(M)

M50

M6M42

M25

M25

M23

M3

M4BRISTOL

Swindon

OXFORD

SloughLONDON

BIRMINGHAM

Hereford

Worcester

Coventry

Leicester

Milton Keynes

Bedford

Leominster

ReadingCARDIFF

Cheltenham

Kettering

Banbury

Wolverhampton

ALMONDSBURY

LocationExcellent communications overlooking the M4/M5 interchange.

By RoadBristol is situated adjacent to the M4/M5 interchange, giving fast, reliable road connections to London, Birmingham and Cardiff, as well as access to the national motorway network.

Distances from Almondsbury Business Park:

Destination Miles

Junction 16 M5 1

Junction 20 M4 2

Bristol Parkway Station 3.3

Bristol City Centre 10.4

Bristol Temple Meads 10.6

By RailBristol has fast and frequent inter-city rail services through Bristol Parkway and Bristol Temple Meads Railway Stations. These provide regular services to London, the Midlands and North, South Wales and the South West.

Destination from Bristol Parkway Minutes

London Paddington 80

Birmingham 75

Cardiff 50

The electrification of the railway line from Bristol to London, which is due to complete by 2018, will improve connections between major cities, making journeys greener, faster and more reliable.

By AirBristol International Airport lies 8 miles south of the city centre and there is a dedicated coach link. It offers scheduled flights to 114 destinations throughout the UK and all the major European countries.

There has been substantial investment in its runway, terminal and other facilities since 2001 when the £42m terminal was opened. Since then this has been further extended. The airport now sees over 6.2 million passengers fly to over 90 destinations each year and it has become the fastest growing regional airport in the UK.

SituationThe property benefits from excellent communications overlooking the M4/M5 Interchange to the North at Almondsbury and the M32 connecting the city centre with Junction 19 of the M4.

Almondsbury is a 20 minute drive to the city centre and is considered, along with Aztec West, one of the key out of town office locations due to its strategic position on the M4/M5 interchange.

Cribbs Causeway Shopping Centre with occupiers including John Lewis and Marks & Spencer is a 10 minute drive from Key Point and the Bradley Stoke Leisure Centre is approximately 5 minutes away.

Located close to the RAC Traffic Centre, with a range of neighbourhood facilities including a Tesco Extra are available just 5 minutes from the property at Willowbrook District Centre. Other nearby amenities include the leisure facilities at the Hilton Bristol Hotel and the Bradley Stoke Leisure Centre.

CHARLTONHAYES

HARRYSTOKE

CHESWICKVILLAGE

SOUTHMEAD

BRENTRY

WOODHOUSEDOWN

FROGLANDCROSS

BRISTOLGOLF COURSE

WOODLANDSGOLF CLUB

M5

M4

M32

A38

A32

B4058

B4058

B4057

B4427

B4056

B4055

A4018

J 17

J 16

J15

J20

J 19

J 1

3

5

8

9 10

Patchway

BristolParkway

Filton Abbey Wood

DescriptionThe property comprises a modern office building that was constructed in the early 1990’s, the subject property features brick exterior under a pitched slate roof with aluminium framed double glazed windows.

Internally the accommodation benefits from fully accessible raised floors, suspended ceilings and comfort cooling. The property also benefits from two passenger lifts in addition to 55 car parking spaces providing an excellent car parking ratio of 1:228 sq ft.

Internally, the building has been refurbished over the last few years and the accommodation is being presented to a high standard.

AccommodationWe have measured the property in accordance with the latest RICS Code of Measuring Practice and provide the following Net Internal floor areas:

Demise Sq ft Sq M

Ground Floor 1,857 172.52

Ground Floor 1,972 183.20

1st floor 4,289 398.46

2nd Floor 4,416 410.26

Total 12,534 1,164.44

Click here to view our online video of AXIS BETA

TenancyThe property is multi-let to three tenants as outlined in the below tenancy schedule the rental income is £191,569 per annum, equating to a low overall passing rent of just £15.28 per sq ft, and has a WAULT of 3.37 years to expiries, 2.72 years to lease breaks.

TenureThe property is held freehold.

Asset Management Regear and lease renewal opportunities

with existing tenants to improve the overall WAULT.

Improve the rental tone of the building.

The current average rent of only £15.28 per sq ft with prime rents in Bristol for out or town offices now £22.50 per sq ft.

Limited capex refurbishment now required.

Continue to drive tenant retention and limit refurbishment capex.

Demise Tenant Area (sq ft) Start Date Break Date Expiry Date Next Review Rent Rent psf ERV psf Comments

Ground Floor Xerox (UK) Ltd 1,857 18-Jan-16 17-Jan-21 £28,565 £15.38 £15.50

Ground Floor Marie Stopes 1,972 26-Nov-18 25-Nov-28 26-Nov-23 £30,556 £15.49 £15.50

1st Floor ATOS IT Services UK Ltd 4,289 24-Aug-17 24-Aug-20 23-Aug-22 £62,500 £14.57 £15.50

2nd Floor Vacant 4,416 £68,448 £15.50 £15.50 Refurbished Cat A Feb 19. 18 months rental guarantee with12 months rates and s/c guarantees

License for Sign Xerox (UK) Ltd 28-Sep-15 31-Dec-19 £1,500

Total 12,534 £191,569

Covenants

Xerox (UK) Limited Xerox (UK) Limited part of one of the world’s largest distributors of copiers, fax machines, printers, and related equipment for related entities. The company also provides managed print, external print, hybrid mail services. The company was incorporated in 1937 and has over 1,594 employees in the UK. The company has excellent Creditsafe rating of 79/100, which is very low risk, and its most recent financial results are as follows:

Year to Date Turnover Pre Tax Profit Shareholder’s Fund Employees

31/12/2017 £234,900.000 £26,400,000 £390,800,000 1,594

31/12/2016 £272,100,000 £32,500,000 £343,700,000 1,688

31/12/2015 £287,000,000 £33,600,000 £351,100,000 1,827

Marie Stopes Marie Stopes is a charitable group engaged is to provide sexual, reproductive, maternal and general health services, to reduce maternal mortality, relieve sickness and preserve physical and to carry out and/or promote the carrying out of research relating to sexual and reproductive health, maternal and general health. The company has excellent Creditsafe rating of 72/100, which is very low risk, and its most recent financial results are as follows:

Year to Date Turnover Pre Tax Profit Shareholder’s Fund Employees

31/12/2017 £296,124,000 -£4,764,000 £107,308,000 11,612

31/12/2016 £289,962,000 £10,124,000 £117,497,000 12,357

31/12/2015 £266,297,000 £10,686,000 £93,678,000 12,426

Atos IT Services UK LtdAtos is a global leader in digital transformation, with other 110,000 people in 73 countries they excel in developing and implementing innovative digital solutions. The company has excellent Creditsafe rating of 92/100, which is very low risk, and its most recent financial results are as follows:

Year to Date Turnover Pre Tax Profit Shareholder’s Fund Employees

31/12/2017 £1,614,791,000 £49,873,000 £1,771,199,000 7,700

31/12/2016 £1,489,427,000 £100,735,000 £1,647,403,000 7,679

31/12/2015 £1,469,002,000 £102,547,000 £1,685,285,000 8,825

Market CommentaryBristol out of town take-up during H2 2018 was 229,668 sq ft, a 34% increase on the first half of the year. This meant that annual take-up for 2018 was 400,501 sq ft, the second year in succession that take-up has exceeded 400,000 sq ft in the out of town market.

There was 424,733 sq ft of office space available at the end of 2018 compared to 544,358 sq ft which was on the market at the end of 2017. The declining amount of space in the out of town market is mimicking the city centre. However, there has been no new build speculative development in the out of town market for over 10 years and as a result Grade A supply has been very limited.

The city has continued to see an increase in the gap between city centre and out of town rental values. The completion of Aurora at Finzel’s Reach has set a record rent in the city centre at £34.50 per sq ft, some £13.00 per sq ft above prime out of town rents now at £21.50 per sq ft. Combined with such a difference to city centre values and a lack of available stock, the out of town market is seeing a drive in rental growth.

Beta provides excellent quality and affordable office accommodation at a discount to both the major out of town locations and city centre whilst being situated in a convenient location close to the major transport networks.

We detail below a schedule of comparable investment sales.

Property Date Tenant Size (sq ft) Price NIY Capital Value (psf)

430 Bristol Business Park Dec 2018 Leonardo MW Ltd 21,948 £6.425 5.96% £292

Building 660, Bristol Business Park Sep 2018 Thales 11,416 £3.120 6.58% £273

Woodlands Court, Almondsbury Aug 2017 Multi-let to 8 tenants 37,952 £6.55 8.00% £172

200 Aztec West Aug 2017 Multi-let to 7 tenants 45,151 £8.787 8.00% £194

Equinox North, Almondsbury Jun 2017 Multi-let to 4 tenants 32,378 £4.80 7.9% £148

EPCAn Energy Performance Certificate (EPC) can be downloaded from our website.

VATThe property has been elected for VAT, and therefore it is assumed that the transaction will take place on the basis of a Transfer of a Going Concern (TOGC).

ProposalWe are instructed to seek offers in excess of £1,900,000 (One Million and Nine Hundred Thousand Pounds) reflecting a net initial yield of 9.5%.

Richard Howell0117 988 5210 richard.howell@avisonyoung.com

Property refavisonyoung.co.uk/15085

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Avison Young hereby gives notice that the information provided (either for itself, for any joint agents or for the vendors lessors of this property whose agent Avison Young is in this brochure is provided on the following conditions:1. The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract.2. All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct.

However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise.3. No person in the employment of Avison Young, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure.4. All prices quoted are exclusive of VAT.5. Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by Avison Young.

June 2019

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