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F R E E H O L D O F F I C E I N V E S T M E N T O P P O R T U N I T Y
BARLEY HOUSE OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
INVESTMENT SUMMARY
t LocatedintheaffluentareaofClifton.t Georgianofficebuildingarrangedovergroundandtwoupperfloorstotalling14,499sqft.t Freehold.t FullylettostrongcovenantTheUniversityofBristoluntil1stNovember2024.t Lowbaserentof£220,000perannum(£15.17psf)withananticipatedupliftat2019review.
t Offersaresoughtinexcessof£3,600,000 (Three Million Six Hundred Thousand Pounds)subjecttocontractandexclusiveofVAT.t Apurchaseatthislevelreflectsanattractivenet initial yield of 5.74%, afterallowingforpurchaser’scostsof6.51%.t Capitalvalueof£249 psf.
BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
LOCATIONBristolisthemajorregionalcentreofthesouthwest,approximately118mileswestofLondon.ThecitybenefitsfromanenviablelocationatthejunctionoftheM4andM5motorways,providingaccesstothenorthandsouthofEngland,aswellasadirectrouteeastwardstoLondonandwestintoWales.
TheCity of Bristol is the 5th largest conurbation in theUK and thecapital of the SouthWest.With an estimated population of 550,000andapproximately1.6million residentswithin thewiderurbanarea,Bristolbenefitsfromthe3rdhighestGDPpercapitaafterLondonandNottingham.
Bristolhasbenefittedgreatlyfromtheimpactof‘inshoring’andisnowoneofthelargestemploymentbasesforbanking,financeandinsurancesectors outside London. Bristol also has a flourishing professionalsectorandinrecentyearssomenotablecompanyrelocationsinclude;the Ministry of Defence Equipment & Support, Hewlett PackardNational Research Laboratories, Friends Life Headquarters, LloydsBankNationalDebtRecoveryHeadquarters,RollsRoyce,Airbus,andtheBBC.TheSundayTimesrecentlyvotedBristolthebestcitytoliveinBritain2017.
SITUATIONBarleyHouseislocatedwithintheaffluentareaofCliftonapproximately1miletotheeastofBristolcitycentre.CliftonisrenownedforhavingsomeofthemosticonicspotsinBristol,includingBrunel’sfamousSuspensionBridge,theObservatory,BristolZooandtheDurdhamDowns.Theareaisalsohometoseveralupmarketretailers,cafes,pubsandrestaurants.
Theproperty is locatedonOakfieldGroveand isconvenientlypositionedbetweenWhiteladiesRoadandCliftonVillage.Theareasurroundingthepropertyispredominantlyhighvalueresidentialandthereisalackofofficesupplyinthislocation,largelyduetotheimplementationofPermittedDevelopmentRights.NearbyoccupiersincludetheBBC,Handlesbanken,BristolLidoSpa,StarbucksandTheIvy.
Millennium Sq
Lloyds Amphitheatre
Bristol Cathedral
Bristol Museum
Bristol UniversityClifton Campus
Bristol UniversityStudents Union
Bristol Royal Hospital For Children
Queen Sq
Brandon Hill
Cabot Tower
Berkeley SqVictoria Sq
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BRISTOL
BARLEY HOUSE
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BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
DESCRIPTIONThepropertycomprisesan‘L’shapedGeorgianofficebuildingarrangedovergroundandtwoupperfloors.Thepropertywasbuiltincirca1936andthespecificationincludes;
t Perimetertrunkingt Centralheatingwithwallmountedradiatorst Suspendedtileceilingt Recessedfluorescentstriplightingt Carpetedfloors
Externally, there is provision for 23 car parking spaces to the front of the buildingreflectingagoodoverallparkingratioof1:630sqft.BarleyHousehasbeenalteredtointerconnecttotheUniversity’sadjoiningbuildingOakfieldHousethatisunderdifferentownership.
ACCOMMODATIONWehavebeenprovidedwiththefollowingnetinternalareas;
Floor Description Sqm Sqft
Ground OfficeG1 339.6 3,655
Ground OfficeG2 126.5 1,362
First Office11 335.0 3,606
First Office12 150.0 1,615
Second Office21 251.4 2,706
Second Office22 144.5 1,555
Total 1,347.0 14,499
65.8m
14
5
9
27
21
22
16
(Childrens Nursery)
60.7m
63.1m
58.8m
63.4m
Tank (Cov)
LB
OAKFIELD P
LACE
SO
UTH
LEIG
H R
OAD
OA
KFIE
LD
GR
OV
E
LEIG
H R
OAD
OAKFIELD ROAD
Lido
Spa
University
of Bristol or Barley House
Barley
House
31
31
12
Vicarage
28
Oakfield
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15
18
43
to 20
1 to 4
Mansio
ns
2
26
33
11
1
16
18a
12
Hotel
16
Arling
ton
Southleigh Mews
St P
aul's Church
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36
25
9
21
PH
25
22
17a
17
17
34
House
El S
ub S
ta
Courtyard
The Coach Ho
26b
27
26
39
26
Reflecti
ons House
31
14
15 to 2
3
1 to 1
0
40 to 4
4
Pumping Station
32
House
22b
38
19
26a
120m 10m 20m 30m
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. © Crown Copyright. All rights reserved. Licence Number LIG0074.
Barley HouseOakfield RoadClifton, Bristol
BS8 2BN
Ordnance Survey © Crown Copyright 2018. All rights reserved.
Licence number 100022432. Plotted Scale - 1:1250
BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
TENUREFreehold.
TENANCYThepropertyisletinitsentiretytotheUniversityofBristol(onassignmentfromSmith&WilliamsonSolomonHareAuditLLP)foratermof30yearsexpiringonthe1stNovember2024.Theleaseisonfullrepairingandinsuringterms,subject to five yearly upward only rent reviews. The property produces acurrentrentalof£220,000perannumwhichequatesto£15.17psf.
BRISTOL OFFICE MARKET
The Bristol city centre office market comfortably exceeded the 10-yearannual take-upaverage (545,740sq ft) in2017, reaching614,000sq ft.Threedealsdominatedactivity:Dyson(28,718sqft)andUniversityofBristol(27,341sq ft) at1CathedralSquare,andSimmons&Simmons (26,985sq ft) at Aurora. All three deals took space during construction placingfurtherpressureonthesupplypipeline.BristolprovidesanextremelywellbalancedeconomywithtakeupcomingfromarangeofsectorsincludingTMT,Professional,ServicesandPublicAdministration.
Supplyremainsunderconsiderablepressureandtheoverallvacancyratestoodat3.0%atend-2017.ThenewGradeAvacancyrateremainsatzeroand the relaxationofPermittedDevelopmentRightscoupledwith robustdemandhasremovedaconsiderableproportionofpoorerofficestockfromthecitycentremarket.Thereisnorealsignofthispressurebeingalleviatedthroughcurrentpipelineactivitywithonly158,000sq ftdue tocompleteoverthenextsixmonths.
Headlinerentsforthecitycentreincreasedsignificantlyin2017,rising14%year-on-yearto£32.50persqft.Theoutlookfor2018remainsstrongandfurtherrentalgrowth isanticipatedbytheendof theyear.QuotingrentsonAuroraatFinzelsReach,theonlyspeculativeGradeAbuildingunderconstructionare£35.00persqft.
BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
ESTIMATED RENTAL VALUE Thepropertyproducesacurrentrentof£220,000perannumwhichequatestoalowlevelof£15.17psf.Thisrepresentsasignificantdiscountofroughly53%toprimeGradeABristolrents.Comparableleasingtransactionsareasfollows;
BRISTOL OFFICE INVESTMENT MARKET ThesupplyanddemanddynamicsoftheBristoloccupationalofficemarkethaveledtostronglevelsofinterestfromamixtureofprivateinvestors,propertycompaniesandinstitutions.ThevalueofofficeinvestmenttransactionsinBristoltotalled£429.96m(PropertyData)in2017andcitycentretransactionsaccountedfor£278.15m,reflecting65%ofthetotalvalue.
WehavesetoutbelowascheduleofrecentBristolcitycentreofficeinvestmenttransactions,thathighlightsthestrongyieldsbeingachieved;
Giventherentalevidence,weareoftheopinionthatanupliftinrentalvaluetoaminimumof£17.00persqftshouldbeachievableatthenextreviewin2019.Thiswouldequatetoanoverallrentalof£269,982perannum.Shouldthepropertybecomevacantuponexpiry,webelievethatthepropertyoffersasignificantrefurbishmentopportunitywhererentalvaluescouldbesignificantlyincreased.TheindividualfloorplatesareanidealsizefortheBristoloccupiermarket,andthepropertycouldbeletasawholeoronafloorbyfloorbasis.
Date Address Size(sqft) Tenant Rent(£psf) Term/BreakQ42017 3rdFlr1BrunswickSquare 11,782 AMI £22.50 10/5Q42017 2ndFlrStCatherinesCourt 6,987 HargreavesLansdown £28.50 10/5Q42017 14/15QueenSquare 2,170 LGTVestra £26.50 10/5Q32017 Pt4thFlr,NewminsterHouse 2,724 SimitiveLtd £17.00 5/3Q32017 GrndFlrCentral,TheQuorum 2,250 TalentInternational £19.00 5/3Q12017 2ndFlr,VintryHouse 5,200 FatMedia £18.00 5/3
Date Address Tenant Size Price CapVal(£psf) NIY Comments
Q42017 1CathedralSquare,Bristol UniversityofBristol& DysonTechnologyLtd 56,059 £33,500,000 £597 5.00%
Comprehensivelyrefurbishedin September2017.WAULTof12.4yearstoexpiryand7.6yearstobreak.
Q42017 90VictoriaStreet Multi-let 24,365 £9,000,000 £369 5.35% Offmarket.LLH.WAULTof3yearstoexpiry.
Q32017 NewBondHouse,Bristol Multi-let 21,955 £3,800,000 £173 5.43% WAULTof3.11yearstoexpiry.Q32017 66QueenSquare,Bristol KPMGLLP&Handelsbanken 61,498 £30,500,000 £495 5.25% Offmarket.WAULTof13yearstoexpiry.Q32017 1GeorgesSquare,BathStreet,Bristol ClarkeWillmott 68,660 £26,000,000 £378 5.50% 5.75yearstoexpiryQ32017 TheCube,LowerLambStreet,Bristol Fraser-NashConsultancyLtd 14,738 £5,116,225 £347 5.33% 4.5yearstoexpiryQ12017 WhiteladiesHouse,Bristol Handelsbanken&Filmsat59 15,501 £4,153,000 £268 6.08% WAULTof4.83yearstoexpiry.
BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN
PROPOSAL Offers are sought in excess of £3,600,000 (Three Million, Six Hundred Thousand Pounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelreflectsanet initial yield of 5.74%,anda reversionary yield of 7.04%baseduponourERV,afterpurchaser’scostsat6.51%.Thisreflectsalowcapitalvalueof£249persqftoverall.
COVENANT STATUS TheUniversityofBristolwasfoundedin1876asUniversityCollege,Bristolandisranked44intheQSWorldUniversityRanking.
In2017theUniversityGrouprecordedasurplusbeforeothergainsandlossesof£47.2million,arecordyearandup21%comparedto2016.Capital investmentequatedtoover£100mandresearchincomefromcompetitivelywongrantswasup7.3%to£159.9million.TheUniversitycontinueditssustainedgrowthinstudentnumbers,growingby7%intheyearto21,808studentsinfulltimeeducation.
TheUniversityofBristolareoneof the largestoccupiers in theCliftonareawith themajority of teaching taking place on theirmainCliftonCampus. The campus spansawidearea,borderedtothenorthbyTyndallsParksRoadandtothesouthbyParkRowandtheHHWillsMemorialBuilding.TheRichmondBuilding,hometotheBristolStudentsUnion isashortwalk from themaincampusand located300m tosouthofBarleyHouse.
EPC ThepropertyhasanEPCratingofC72.
VAT Theproperty iselected forVATand thereforeVATwill bepayableon thepurchaseprice.WewouldanticipatethesaletobedealtwithbywayofaTransferofaGoingConcern(TOGC).
FURTHER INFORMATION
Forfurtherinformation,pleasecontactthesoleagents;
JLLforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyare,givenoticethat:-a.theparticularsaresetoutasageneraloutlineonlyforguidanceanddonotconstitute,norconstitutepartof,anofferorcontract;b.alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsarebelievedtobecorrect,butanyintendingpurchasers,tenantsorthirdpartiesshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesthattheyarecorrectbyinspectionorotherwise;c.nopersonintheemploymentofJLLhasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtotheproperty;d.Anyimagesmaybecomputergenerated.Anyphotographsshowonlycertainpartsofthepropertyastheyappearedatthetimetheyweretaken.©March2018JonesLangLaSalleIP,Inc.Allrightsreserved.
Oliver PaineJLLTel: +44 (0)117 930 [email protected]
Ross WigleyJLLTel: +44 (0)117 930 [email protected]