Modern office investment let to

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

INVESTMENT SUMMARY

High quality modern office building situated in a strategic location off Junction 2 of the M5 Motorway.

• Located within the Greater Birmingham conurbation, 8 miles north-west of Birmingham City Centre.

• Birmingham is the UK’s second city and along with the wider Greater Birmingham area plays home to many leading corporate and public sector occupiers.

• Strategic location providing immediate access to the West Midlands and the wider UK Motorway network.

• Modern 3 storey Grade A office building comprising 3,321 sq m (35,749 sq ft) with a generous car parking ratio (1:202 sq ft).

• Freehold.

• Let in its entirety to Npower Ltd, part of the international energy provider RWE Group, providing excellent income security.

• The lease expires on 11th March 2021, providing 3.5 years to lease expiry.

• Passing rent of £517,650 per annum equating to a modest £14.48 per sq ft.

• Extensively refurbished by the tenant in 2016, demonstrating commitment to the property.

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We are instructed to seek offers in excess of £6,070,000 exclusive of VAT for the freehold interest.

A purchase at this level reflects an attractive Net Initial Yield of 8.00% assuming full purchaser’s costs of 6.63% and a low overall capital value of £170 per sq ft.

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

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M5

M5 J2

BIRCHFIELD LN

A4034

A4034

A4123

NORTH TO M6

SOUTH

WOLVERHAMPTON RDA4123

Shell PFS

Half Penny Farm Pub

BirchfieldHouse

SwallowfieldCourtyard

The Stores Bar & Grill

JOSEPH ST

BIRCHFIELD LN

M5

A4123

Birchley Island Development

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

LOCATION

Oldbury is positioned at the heart of the UK, only 8km (5 miles) north-west of Birmingham, the economic powerhouse for the West Midlands and the principal commercial and administrative centre for the wider Midlands region. Birmingham boasts a population of circa 1,101,000 (2017 est.) making it the largest regional centre in the UK in both population and economic terms. The wider Greater Birmingham conurbation has a resident population of circa 2.45 million (2014 est.) and the property benefits from access to over 50% of the UK population within 2 hours.

Oldbury and the West Midlands are due to benefit from significant investment over the next 10 years with an estimated £10bn of infrastructure due to be delivered, including Motorway improvements, Metro extensions and the arrival of HS2 to the region. The Black Country in particular has seen a significant increase in foreign and domestic investment over the last few years and was recognised as one of the top 5 cost-effective regions in the UK. This continued investment will cement the regions position in a National and European context in terms of premier business locations.

Birmingham produces nearly 25,000 graduates a year from its three universities and a further 100,000 graduates are produced from fifteen other leading universities within the region, all under one hour’s drive from the property. This pool of educated and skilled labour is a major attraction for businesses and a significant factor in why the West Midlands is home to over 142,000 companies including over 1,900 international businesses.

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KEY LOCAL OCCUPIERS INCLUDE:

• Travelodge Reservation Services • HM Revenue & Customs

• Crow Clarke Whitehall • OCS

• Arnold Clarke • Regus

• The AA

Rugby

Birmingham

CoventryKidderminster

Bridgnorth

Walsall

LichfieldCannock

Burtonupon Trent

Shrewsbury

Leicester

Telford

Stafford

Solihull

Nuneaton

WestBromich

Oldbury

SuttonColdfield

Wolverhampton

M40

M42

M42M54

M6 M1

M69

M5

M6M6 Toll

A449

A442

A458

A454

A515

A456

A435

A444A461

A435

A429

A423

A38

A42

A41

A41

A34

A49

A53

A46

A46

A5

A6

A456 M45

M5

M5

A4123

A4034

A4034

A4123

WOLVERHAMPTON RD

CHURCHBRIDGE

WOLVERHAMPTON RD

JOSEPH ST

BIRCHFIELD LN

PARK ST

2

Oldbury

SITUATION

The property is situated adjacent to St Modwen’s Birchley Island development scheme. The scheme involves a major capacity Improvement to the linked junctions of Birchley Island and M5, Junction 2, building on the Highways Agency scheme to widen the motorway ‘off’ slips as part of the Pinch Point Programme.

The property is accessed principally from Joseph Street, an estate road that connects to both the A4123 dual carriageway and A4034. Both these roads provide access to Birchley Island and the M5 motorway whilst the A4123 connects with Dudley and the A4034 provides access to Oldbury town centre, Oldbury Green Retail Park and Sainsbury’s supermarket all of which are in close proximity.

The neighbouring area is predominantly commercial, supporting a variety of different uses, including modern office, retail warehousing, food retailing, industrial, trade counter and car showrooms with occupiers including, AA, Toys R U, Halfords, Dunelm Mill, CD Transport, McDonalds and Fayre Square Public Houses.

COMMUNICATIONS

ROADBenefitting from excellent access to the national Motorway network by virtue of a central UK location, the property is directly adjacent to Junction 2 of the M5 motorway, providing close proximity access to the M6, M6 Toll, M42 and M40. Access to Central Birmingham is achieved in a journey time of circa 20 minutes via the A4123 Wolverhampton Road. Dudley and the Merry Hill retail area are just a short drive away via the A4034.

RAILIntercity rail links are provided from Sandwell and Dudley Railway Station, 2.6km (1.7 miles) to the north of the property, with regular services to Wolverhampton, Birmingham New Street, Birmingham International, Milton Keynes and London Euston. Journey times to Birmingham New Street are 10 minutes whilst Birmingham International, for airport access, can be reached in 22 minutes. Three services an hour run direct to London Euston with a journey time of approximately 1 hour 40 minutes. Local train services from Dudley Port Station serve the Birmingham to Wolverhampton line with three services an hour linking Oldbury to Wolverhampton in 12 minutes.

MIDLAND METRO TRAM SYSTEMOldbury and the wider area benefit from the Midland Metro tram system, one of the UK’s most successful rapid transport systems. The Midland Metro is the light rail system for the West Midlands which operates between Birmingham and Wolverhampton via West Bromwich and Wednesbury. It operates seven days a week with a ‘turn up and go’ every eight minutes during the day and every 15 minutes during the evenings and Sundays.

West Bromwich Parkway offers park and ride facilities and is the closest Metro station to the subject property. Just 3 miles (5 km) north along the A4034, West Bromwich Parkway offers journey times into Birmingham Snow Hill in 19 minutes with further expansion works underway that will connect New Street Station with the current line.

AIROldbury is served by Birmingham Airport, 23 miles (37 km) to the south west of the property via the M6 motorway and Manchester Airport, located 77 miles (123 km) north also accessed via the M6 motorway. Birmingham Airport can be reached from the subject property via a direct rail service to Birmingham International from Sandwell and Dudley station with a fastest journey time of 21 minutes. The new runway extension at the airport provides direct flights to the Far East and the west coast of America and makes Birmingham Airport the busiest outside of London in terms of passenger traffic.

04BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

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PROPERTY DESCRIPTIONDeveloped in 2001, Birch House is a modern office building of steel framed construction under a traditional pitched tiled roof.

The façades are a mixture of brick and aluminium profile cladding with full height atrium creating impressive access to the office accommodation.

The site extends to approximately 0.93 hectares (2.36 acres) and there are 177 car parking spaces, providing an excellent car parking ratio of 1:18.76 sq m (1:202 sq ft).

The office specification includes:

• Tenant installed canteen and gym

• Male, female and disabled toilets on all floors

• Accessible raised floors with a minimum clear void of 150 mm

• Suspended ceilings with LED lighting

• Comfort cooling throughout and heating provided by way of a low-pressure hot water system

• Two 13-person passenger lifts

ACCOMMODATION SCHEDULEThe vendor has provided the following Net Internal Areas:

Floor Sq M Sq Ft

Ground Floor Reception 63 678

Ground Floor Offices 1,076 11,584

1st Floor Offices 1,104 11,599

2nd Floor Offices 1,104 11,888

Total 3,321 35,749

BIRCHHOUSE 06B I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

TENUREThe property is held freehold.

TENANCYThe property is let in its entirety to Npower Ltd on a Full Repairing and Insuring lease for a term of 20 years commencing on the 12th March 2001 and expiring on 11th March 2021, providing 3.5 years unexpired. The passing rent is £517,650 per annum reflecting £14.48 per sq ft overall.

COVENANTNpower Ltd is the UK retail energy arm of RWE Group, one of Europe’s five leading electricity and gas companies, active in the generation, trading, transmission and supply of electricity and gas.

Npower supplies electricity and gas to six million residential customer accounts and is also the second largest supplier of energy to the business market serving around half a million customers.

Npower employs around 11,500 people in the UK, with its headquarters based in Swindon. The Birch House facility accommodates Npower’s major business and customer service teams.

For further information visit www.npower.com

31.12.2016(£’000s)

31.12.2015(£’000s)

31.12.2014(£’000s)

Turnover 3,939,500 3,567,100 3,292,700

Profit before Tax 359,000 103,900 55,000

Net Worth 9,600 (357,100) (508,200)

BIRCHHOUSEB I R C H L E Y PA R K • O L D B U RY • B 6 9 2 AQ

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EPCThe property has an EPC rating of D95.

VATWe understand the property will be elected for VAT. It is intended that the sale will be treated a Transfer of a Going Concern (TOGC).

PROPOSALWe are instructed to seek offers in excess of £6,070,000 exclusive of VAT for the freehold interest. A purchase at this level reflects an attractive Net Initial Yield of 8.00% assuming full purchaser’s costs of 6.63% and a low overall capital value of £170 per sq ft.

FURTHER INFORMATIONFor further information or to arrange a site inspection, please contact the following:

Jonathan Devaney

0121 233 6490

jonathan.devaney@knightfrank.com

Ben Wisher

0121 233 6456

ben.wisher@knightfrank.com

James Mattin

0121 524 1172 jamesmattin@bondwolfe.net

Important notice. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. September 2017. carve-design.co.uk 13088

KnightFrank.co.uk