royal mail admiral housedocs.novaloca.com/26_8924_635754139681690000.pdf · 2015-08-17 · royal...

ROYAL MAILADMIRAL HOUSEDoxford International Business Park



FOR SALE

Blue Chip Office Investment Located on Premier Regional Business Park

Royal Mail Admiral House Doxford International Business Park, Sunderland SR3 3XW

INVESTMENT SUMMARY

• Prominently located on the established Doxford International Business Park, Sunderland’s premier commercial estate

• High quality office accommodation benefitting from significant tenant’s improvements, providing 36,350 sq ft over three floors with high parking ratio of 1 space to 300 sq ft

• Superb transport connections to the A19 and wider region, with 11 bus routes serving the estate

• Fully let on FRI terms to the Royal Mail Group Ltd for 10 years from 16th November 2012, with a tenant’s break option on 15th November 2017

• Low rent passing of £390,000 per annum, equating to £10.73 per sq ft

• Excellent value-add potential through re-negotiating tenant’s break option and extending term certain

• Offers sought at £4.1M (Four Million, One Hundred Thousand pounds) reflecting a net initial yield of 9.00% after standard purchaser’s costs of 5.8%




59

60

61

62

63

65

58

57

56

MORPETH

CHESTER-LE-STREET

ASHINGTON

SOUTH SHIELDS

Port of Tyne

Teesport

A66

A66

A68

A688

A688

A690

A690

A684

A66

A689

A689

A696

A181

A68

A68

A69

A171

A69

A167

A1(M)

A1(M)

A1(M)A19

A19

A19

A19

GATESHEAD

HEXHAM

HARTLEPOOL

SEAHAM

TYNEMOUTH

SCOTCH CORNER

NEWCASTLEUPON TYNE

MIDDLESBROUGH

DURHAM

DARLINGTON

NewcastleAirport

Durham Tees Valley Airport

SUNDERLAND

Em

pero

r Way

Admiral W

ay

B1286 CityWay

Arriva

EDF

Barclays

Barclays

Regus

RSA

RSA

Parseq

NorthernRock

SunderlandUni

SUNDERLAND

DURHAM

MIDDLESBROUGH

NEWCASTLE

Gentoo

UK AssetResolution

UK AssetResolution

Gentoo

Mo

narch

Way

A19

A19

A690

A690

ROYAL MAILADMIRALHOUSE

Doxford International is the premier business park in the City

of Sunderland region, located at the junction of the A19 and

A690 on the south western fringe of Sunderland city centre.

The estate provides circa 1.35M sq ft of high specification

office space constructed in the mid to late 1990s, on a site of

approximately 34 hectares (85 acres). Doxford boasts a strong

roster of corporate occupiers, including Barclays Plc, More

Than, EDF Energy, Sunderland City Council, Arriva plc, Parseq

and the Gentoo Group.

The estate benefits from excellent road communications, being

situated at the junction of the A19 and A690, with the B1286

running along the northern edge of the site. Doxford is also

served by a total of 11 bus routes, connecting the park directly

to Sunderland, Newcastle Upon Tyne, Durham, Hartlepool and

the wider Wearside region. International communications are

provided by Newcastle and Teesside International Airports,

both located within 30 minutes’ drive time.

LOCATION

London

EnglandWales

Scotland

LiverpoolManchester

Leeds

Edinburgh

Carlisle

Glasgow

BristolCardiff

Birmingham

Nottingham

NewcastleSunderland


DOXFORD INTERNATIONAL BUSINESS PARK

ROYAL MAIL ADMIRAL HOUSE

REGIONAL ECONOMY & NEWCASTLE CITY CENTRE


The subject property is located near to the entrance to Doxford International Business Park at the junction of Emporer Way and Admiral Way, providing highly visible frontage onto one of the main circulation routes through the estate.

Asking rents across Doxford are benchmarked at between £10.50 and £13.50 per sq ft dependent on the quality and quantum of space on offer.

SITUATION

EDF

RSA

RSA

PARSEQ

A19

B1286

ARRIVA

GENTOO

REGUS

BARCLAYS

BARCLAYS

NORTHERN ROCK

UNIVERSITY OF SUNDERLAND

UK ASSET RESOLUTIONS

GENTOO TRANSCO

Cit

yWay

Ad

mira

l Way

Emperor Way




A66

A66

A68

A688

A688

A690

A690

A684

A66

A689

A689

A696

A181

A68

A68

A69

A171

A69

A167

A1(M)

A1(M)

A1(M)

A19

A19

A19

GATESHEAD

MORPETH

HEXHAM

CHESTER-LE-STREET

ASHINGTON

HARTLEPOOL

SEAHAM

SOUTH SHIELDS

TYNEMOUTH

SCOTCH CORNER

59

60

61

62

63

65

58

57

56

NEWCASTLEUPON TYNE

SUNDERLAND

MIDDLESBROUGH

DURHAM

DARLINGTON

NewcastleAirport

Port of Seaham

Port of Tyne

Durham Tees Valley Airport

Teesport

A19

The North East economy has performed strongly within

the last 3 years with per capita GVA growing in average of

2.7% p.a. This figure exceeds both London and England as a

whole (NELEP).

Sunderland is one of the major commercial centres in

the north east region with a population of 174,286 (2011

Census). The main industries in Sunderland include

light manufacturing, call centre / service sector and the

automotive industry with Nissan being one of the region’s

major employers (12,000). Other significant employers

include Johnson Controls, TFW Systems and Unipres Ltd.

Sunderland is also a thriving University city with a student

population of 18,000 and strong partnerships with major

companies including IBM, Intel, BT, Procter and Gamble and

Glaxo Smith Kline whilst Pfizer has funded research projects

at Sunderland for over ten years. Sunderland University

boasts leading facilities including a £12 million flagship

sports facility, 200 seat cinema and new £8.5 million

science complex. The city centre is currently experiencing

a renaissance with new road alignment and public realm

schemes currently underway at a costs of £13.4M, designed

to create a ‘city gateway’ and enhance visibility.

The New Wear Crossing, a £118M new bridge development

which will cross the river between Castletown and Pallion

is also currently under construction, due for completion in

Spring 2018. This state of the art bridge, which is taller than

Big Ben, will enhance traffic flows across the River Wear

and increase road capacity through the immediate region.

REGIONAL ECONOMY 60 minute journey time

DOXFORD INTERNATIONAL BUSINESS PARK


The subject property comprises a modern, purpose built, high-

specification office building, constructed in the mid-1990s. Split

over three levels, this detached unit is of steel frame construction,

with cavity brickwork and glazed elevations, surmounted by a

pitched profiled metal clad roof.

Internally, the building provides modern office accommodation

arranged around a central core, with kitchen and welfare facilities

on each floor, accessed via an impressive full height atrium to the

eastern elevation.

The unit features 120 car parking spaces at a ratio of 1:303 sq ft

Key considerations include:

• Royal Mail have been in occupation since September 1997, incurring significant capital expenditure on the building over this time including over £1M on enhancing the air conditioning system alone

• Admiral House is the largest of Royal Mail’s four main contact centres, with others located in Plymouth, Dearne Valley and Stoke

• The subject property provides the main network server for all contact centres and Royal Mail customer services nationally, providing full connectivity for the National and International Business Accounts, Track & Trace, Postcode Allocation, Customer Accounts and ‘Something For You’ service lines. As such, the building benefits from an enhanced specification including a back up generator and failsafe cooling system within the server areas

• The unit employs 350 staff taking up to 10,000 calls and responding to circa 1,500 emails per day, 7 days a week

• Over the Christmas period, the property operates on a 24 hours per day basis, being one of only two Royal Mail buildings capable of supporting the ‘MDEK’ address recognition system

• Admiral House was awarded the Royal Mail contact centre of

the year 2014 / 2015

DESCRIPTION


VOID

VOID

TOILETS

CORE

CORE

14.99m

CORE26

.21m 14

.98m

29.96m

Floor Use sq m sq ft

Atrium / Basement Ancillary 98.1 1,056

Ground Offices 1,098.5 11,824

First Offices 1,089.6 11,728

Second Offices 1,090.9 11,742

Totals 3,377.1 36,350

ACCOMMODATIONThe property has a total NIA of 36,350 sq ft

(3,377.1 sq m) as detailed below:-

TYPICAL FLOOR PLAN


TENURE The property is held on a 999 year lease less 3 days from 4th

April 1996, at a peppercorn rent.

TENANCYThe property is fully let to Royal Mail Group Limited for a term of

10 years from 16th November 2012, at a passing rent of £390,000

per annum.

The lease provides for a tenant’s break option on 15th November

2017 on 6 months’ notice. Should the tenant not activate the

break option a rent free period of 9 months will be granted.


Royal Mail Group are the sole provider of the universal postal service in the UK, delivering to more than 29 million addresses across the UK six days a week and employing around 150,000 permanent postal workers.

Royal Mail Group Limited, which operates the Royal Mail and Parcelforce Worldwide brands, are wholly owned by Royal Mail Group PLC, which was successfully floated on the London Stock Exchange in October 2013. Today the Royal Mail Group PLC has a market capitalisation of £5.27Bn.

We have detailed key financial information for the company in the table below:

COVENANT

Year End Turnover PTP Shareholder’s Funds

30/03/2014 £7.78Bn £1.52Bn £2.13Bn

31/03/2013 £7.76Bn £520.00M £1.24Bn

25/03/2012 £7.17Bn £239.00M -£2.93Bn

Royal Mail Group Limited have a Creditsafe rating of 90 (Very Low Risk)



The North East occupational market is experiencing a resurgence

as corporate occupiers in particular seek quality, inexpensive

space with low labour costs and a large local employment pool.

Improving take up combined with a lack of pipeline supply has

caused rents across the North East to improve and landlords

to reduce incentive levels. Historically the rental tone of Doxford

Park peaked at £12.25 per sq ft, with one exceptional deal agreed

on a design and build property for Nike at £14.50 per sq ft.

The current letting to Royal Mail Group within the subject

property is therefore agreed at a low base with excellent

opportunity for rental growth.

We have detailed comparable lettings from the region in the

table below:

OCCUPATIONAL MARKET

Building Tenant Size Rent Date

Rainton House, Rainton Bridge Npower 217,339 sq ft£12.00 per sq ft

(Sale & Leaseback)Q2 2015

Alexander House, Rainton Bridge Johnston Press 9,019 sq ft £13.00 per sq ft Q1 2015

Cobalt 9B, North Tyneside Siemens 40,000 sq ft £15.75 per sq ft Q4 2014

Quorum Q3, North Tyneside Cofely Workplace 26,996 sq ft £14.95 per sq ft Q2 2014

1 Victory Way, Doxford Parseq 32,104 sq ft £10.25 per sq ft Q2 2014

Cobalt 22, North Tyneside Utilitywise 77,890 sq ft £16.25 per sq ft Q2 2014

For further information or to arrange an inspection please contact the following:

Luke SymondsDirect Dial: 0191 269 0095Email: [email protected]

Simon Beanland Direct Dial: 0191 269 0512Email: [email protected]

GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.

Designed & produced by www.creativestreakdesign.co.uk Ref-820

gva.co.uk/8924

ASSET MANAGEMENTRoyal Mail Group Limited have shown commitment to the

building through continual investment and refurbishment

of the space, committing significant capital expenditure

since their occupation in September 1997.

The investment presents the opportunity to enhance

value through removing the tenant’s break option on 16th

November 2017 and agreeing a term extension.

EPC EPCs available on request.

VATThe property has been elected for VAT and it is envisaged

that the transaction will be treated as a ToGC.

PROPOSALOffers are sought of £4.1M (Four Million, One Hundred

Thousand pounds) exclusive of VAT reflecting a net initial

yield of 9.00% after deduction of standard purchaser’s

costs of 5.8%

royal mail admiral housedocs.novaloca.com/26_8924_635754139681690000.pdf · 2015-08-17 · royal...

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