WOODLANDS, MANTON LANE, BEDFORD, MK41 7LWbcmre.com/assets/img/bedford/bedford.pdf · 2016. 11. 9. · WOODLANDS, MANTON LANE, BEDFORD, MK41 7LW SITUATION The subject property is situated

WOODLANDS, MANTON LANE, BEDFORD, MK41 7LWSOUTH EAST OFFICE INVESTMENT OPPORTUNITY WITH ONE FURTHER RPI INCREASE

SOUTH EAST OFFICE INVESTMENT OPPORTUNITY WITH ONE FURTHER RPI INCREASE www.bcmre.com

WOODLANDS, MANTON LANE, BEDFORD, MK41 7LW

INVESTMENT SUMMARY■ Location Bedford is the county town of Bedfordshire located 50 miles (80 km) north of London, 18 miles (29 km) north east of Milton Keynes and 21 miles (34 km) south east of Northampton located between A1 and M1.

■ Situation The property is situated on Manton Lane, north of Bedford Town Centre.

■ Description The two buildings, “The Main Building”& “The Annex”, refurbishedin2006havethefollowingspecifications;• Replacement double-glazed aluminium windows.• Suspended ceilings.• Raisedaccessfloor.• Air conditioning throughout.

■ Accommodation 112,114 sq ft (10,415.64 sq m) with 430 car parking spaces (1:238 sq ft).

■ Site Footprint The site comprises 8.85 acres (3.58 hectares) and has a site footprint of 11.56% and a site cover of 29%.

■ Tenure Freehold.

■ Tenancies The property is occupied by three tenants:-

› Secretary of State for Communitites & Local Government (Highways Agency)› R K Harrison Insurance Brokers Ltd.› Amey LG Ltd.

There is a WAULT of 7.30 years.

■ Income Profile

■ Secretary of State for Communitites & Local Government (Highways Agency)■ R K Harrison Insurance Brokers Ltd.■ Amey LG Ltd.

The property produces a rent of £1,072,375 per annum, equating to £9.56 per sq ft. The Highways Agency element is subject to the higher of OMRV or RPI geared capped and collared at 1-3% in 2019.

■ VAT The property is elected for VAT and it is envisaged that the property will be sold by way of a Transfer of a Going Concern (TOGC).

■ EPC The Main Building E121 The Annex E115

■ Proposal We are instructed to seek offers in excess of £11,800,000 (Eleven Million, Eight Hundred Thousand, only), which reflects a NIY of 8.51% based on purchaser’s costs of 6.71%, and a low capital value of only £112 psf gross.

55.95%

34.26%

9.79%



LOCATIONBedford is the county town of Bedfordshire and is a strong commercial and retail centre, located 50 miles (80 km) north of London, 18 miles (29 km) north east of Milton Keynes and 21 miles (34 km) south east of Northampton. The town has a population of 82,000 and a wider borough population of 163,900 (2011 census). A10

A6

A11

A12

A134

A120A120

A140

A14

A14A428

A421

A14

A43

A1

A6

A428

A5 A1

LUTON

Harlow

LONDON

CAMBRIDGE

IPSWICH

Colchester

Chelmsford

Stanstead

New Market

Southend-on-Sea

Clacton-on-Sea

NORTHAMPTON

HemelHamstead

St Albans

Watford

Heathrow

High Wycombe

MaidenheadReading

Aylesbury

Milton Keynes

M25M40

M4

M25

M11

M11

M1

M1

M1

A1 (M)

13

10

15a14

11

21

16

48

23 25

8

27

BEDFORD



Town Centre

Bedford

Alexander Sports Centre

Sainsbury’sBedford Modern

School

HRPLtd

Travelodge

Bedford Heights

Manton Industrial Estate



BY ROADThe town benefits from excellent transport links and isstrategically located between the major arterial routes of the A1 and M1, both being 10 miles (16 km) to the east and west respectively.

The A421 southern bypass is a primary link between the A1 and M1, with the section between Bedford and Junction 13 of the M1 having recently been upgraded to dual carriageway. The A421 additionally links with the A6, which provides direct access to Luton to the south.

Town Drive Time

Milton Keynes 31 minutes

Luton 33 minutes

Northampton 38 minutes

Cambridge 49 minutes

London 58 minutes

BY RAILThe town is well served by rail connections with frequent services to London (St Pancras) with a fastest journey time of 35 minutes. This destination also serves European destinations via Eurostar.

Terminal Journey Time

Luton Airport Parkway 14 minutes

Luton 23 minutes

London (St Pancras) 35 minutes

Leicester 40 minutes

Paris/Brussels 180 minutes

BY AIRInternational air travel is provided by Luton Airport approximately 20 miles (32 km) to the south. Some £110m is being invested into this airport over the next few years with improved road access, better car parking, more aircraft stands to increase capacity, extending the taxi ways to speed up flightsandanextensiontotheexistingterminal.

Airport Drive Time

London Luton 39 minutes

London Heathrow 65 minutes

London Stanstead 69 minutes

Birmingham Airport 87 minutes

London City Airport 93 minutes



DEMOGRAHICSBedford Borough’s population rose from 148,000 in 2001 to 163,900 in 2014 (increase of 11%). It is envisaged that 17,600 new homes will need to be built over the next 20 years at an average of 880 per year.

As a result, the Borough’s population is expected to grow significantlyto174,700by2021,anincreaseof7%.Longterm,the population is projected to reach 199,000 by 2037. The town draws from a much larger primary catchment of 309,000

(Promis) due to a lack of competition and strong retailing provision within the town. Therefore, Bedford attracts a large volume of the available spend within the surrounding area.



SITUATION The subject property is situated on Manton Lane, which is north of Bedford Town Centre at its junction with Clapham Road (A6). This is approximately 0.75 miles (1.2 km) from the main retailing provision. The property is situated in a busy mixed-use area being adjacent to Bedford Modern School and Manton Lane Industrial Estate. Bedford Heights, which is adjacent to thepropertyprovidesflexiblebusiness space.There is aTravelodgefurther along Manton Lane and residential opposite the building.

The property is approximately 10 miles (16 km) north east of Junction 13 of the M1 and can be reached via the A421.

The A6 Clapham Road is the main arterial route into the town centre from the north, and which provides access to Northampton. The A6 also connects Rushden and Kettering to the north some 12 miles (20 km) and 21 miles (35 km) respectively.

River Great OuseRi

ver G

reat

Ous

e

A4280

A4280 ST PETE RS ST A4280 GOLDINGTON RD

CLAPHAM ROAD

TAVISTOCK ST A6

A6

A5141

A5141

HONEY HILL RD

FORD END RD A5141

CARDINGTON ROAD

LONDON RD

THE EMBANKMENT

B660

KIM

BOLT

ON R

OAD

MANTON LANE

BRICKHILL DRIVE

PARK AVENUE

DE PA

RYS AVEN

UE

THE GREAT OUSE WAY

CLA

PHA

M R

OA

D

MARLBO

ROU

GH

ROAD

BIDDENHAM TURN

SIDN

EY ROA

DROFF AVE

MALLARD HILL

KEMPSTON ROAD

A6

RIVER ST

A6

A6

CASTLE RDCASTLE RD

HU

RST GRO

VE

Manton Industrial

Estate

Bedford Park

AllenPark

BEDFORDSTATION

BEDFORDBUS DEPOT

BEDFORD MODERN SCHOOL PLAYING GROUND

MAIN RETAILER

PROVISION

BEDFORD COLLEGE

BEDFORD HOSPITAL

SAINSBURY’S

NORTHAMPTON

ST NEOTS

LUTON & MILTON KEYNES

(VIA A421)

WELLING BOROUGH& RUSHDEN

WOODLANDSMANTON LANE, BEDFORD, MK41 7LW



DESCRIPTIONThe property comprises two elements; the “MainBuilding” and an adjacent single-storey building called “The Annex”. The two buildings underwent an extensive refurbishment in 2006 and their specification is similar.

THE MAIN BUILDINGThis four storey building was developed in 1983 and is of steel frameconstructionwithconcreteslabfloorsunderaflatroofandbrickelevations.Entrancetothebuildingisatgroundfloorlevel. There is a spacious atrium which gives good natural light throughout the building.

THE ANNEXThis element is a single storey building of steel portal frame construction with a profiled steel roof. The two elevationsfacing north and south have full height glazing. The building has also undergone extensive refurbishment throughout.

SPECIFICATIONBothbuildingsincludethefollowingspecification:-

› High Performance elastomeric three-layer built up felt roofingsystem.

› Replacement double-glazed aluminium windows.

› 600 mm x 600 mm tegular-egde suspended ceiling tile system.

› Refurbished WC’s throughout.

› Raisedaccessfloorprovidedthroughouttheentireopen planofficeareawithaminimumvoidheightof350mminthe Highways Agency space and 125 mm on level 4.

› Anti-static modular commercial tiles laid throughout the raisedaccessfloorareasandcirculationspaceareas.

› Upflowventilationsystemprovideswarmed/cooledair in the Highways Agency space.

› Integrated modular automated lighting incorporating emergencylightingandfirealarmsystems.

› Air conditioning throughout.

› 8-person passenger lift.



ACCOMMODATIONLevel Description Area Sq Ft Area Sq M

The Main Building

Level 1 Reception 1,399 129.97

Level 1 Offices 5,517 512.54

Level 2 Offices 29,501 2,740.71

Level 2 Atrium

Offices 5,349 496.93

Level 3 Offices 30,281 2,813.17

Level 3 Reception 997 92.62

Level 4 Offices 29,180 2,710.89

The Annex All Offices 9,890 918.80

TOTAL 112,114 10,415.64

CAR PARKING The property provides for 470 car parking spaces which is a ratio of 1:238 sq ft.

SITE FOOTPRINTThe site comprises 8.85 acres (3.58 hectares) and hasa site footprint of 11.56% and a site cover of 29%.

TENUREFreehold.

This sublease was granted by Wichford Woodlands Ltd, who hold a lease from the Secretary of State for Communities and Local Government on the 4th Floor at a peppercorn, expiring 10th August 2020. Following the expiry of the Wichford Woodlands lease, the 4th Floor reverts back to the Secretary of State for Communities and Local Government at OMRV until 23rd June 2024.

THE ANNEXThe Annex is let to Amey LG Ltd (Occupied by Amey Infrastructures Services) on a lease from 26th November 2005 expiring 31st March 2016 at a current rent of £105,000 per annum equating to £10.61 per sq ft. Terms have been agreed on a new 3-year term from 31st March 2016 expiring 30th

TENANCIESTHE MAIN BUILDINGThe Main Building is let to the Secretary of State for Communities and Local Government on a lease from 7th October 2014, expiring 23rd June 2024 (7.70 years remaining). The Highways Agency occupy all, apart from the 4th Floor. They are paying a rent of £600,000 per annum on their element (ground – 3rd Floor). This totals 73,044 sq ft and this equates to £8.21 per sq ft.

The 4th Floor totalling 29,180 sq ft is sublet to R K Harrison Holdings Ltd (occupied by R K Harrison Insurance Brokers Ltd) on a sublease expiring 7th August 2020 with a break on the 11th Sept 2017 at a rent of £367,375 per annum equating to £12.59 per sq ft.

March 2019 at a new rent of £95,000 per annum equating to £9.61 per sq ft.

TOTAL RENT The total rent for the building stands at £1,072,375 per annum equating to a rent of £9.56 per sq ft overall.



COVENANT INFORMATION■ First Secretary of State - is considered to be an undoubted covenant

■ R K Harrison Insurance Brokers Ltd are a specialist insurer.

Year Ending Turnover Pre tax Profits Net Assets

30/09/2015 £28.000,000 (£2,948,000) £194,000*

30/06/2015 £21,423,000 £1,663,000 £2,363,000

(* Dividends of £1.04m paid + 15 month accounting year.)

■ Hyperion Insurance Group.

(see www.hyperioninsurancegroup.co.uk. Company No. 2937398) – RK Harrison Insurance Brokers Ltd was purchased by Hyperion Insurance Group in April 2015. Hyperion is an international insurance intermediary group with insurance broking and underwriting agency arms. Their primary brands include DUAL, Howden and RKH Speciality and RKH Reinsurance. The company employs over3,500staffinofficesacrossEurope,TheMiddleEast,AsiaPacificandtheAmericas.

Year Ending Revenue Pre tax profits Shareholder’s Funds

30/09/2015 £288,787,000 (£51,212,000) N/A

30/09/2014 £194,993,000 £26,559,000 N/A

(Hyperion raised £149m of equity in 2015.)

AMEY LG Ltd (see www.amey.co.uk. Company No. 3612746) - Amey LG Ltd is one of the largest and most diverse companies working for the public and regulated sectors across the UK with the ultimate aim of creating better places for people to live, work & travel. They employ over 21,000 employees.

Year Ending Turnover Pretax Profits Shareholder’s Funds

31/12/14 £494,328,00 (£9,929,00) £9,292,000

31/12/13 £463,227,000 (£3,700,000) £17,902,000



BEDFORD RESIDENTIAL Only 730 residential units were built in the last 12 months. It is envisaged that 17,600 new homes will need to be built over the next 20 year period due to a forecast increase in population. Already the local authority are falling behind this target and the shortage of supply has meant Bedford property values have continued to rise, 13.5% higher than 12 months ago.

Bedford as a residential location has been increasing in popularity as it is on London’s periphery with its

excellent transport links and relative affordability.

PRIVATE RENTED SECTOR (PRS)Bedford’s appeal to young professionals is supporting not only the broader housing market but also the Private Rented Sector (PRS). This is echoed by the fact that the number of private rented households in Bedford has grown significantly over thelast ten years. Bedford far outpaces growth in PRS nationally. Therefore, we believe the site would lend itself well to residential redevelopment in the medium to long term subject to the necessary planning consents.



M1

M1

M1

M1

M11

M11

M25

M40

M40

M40

M40

M25

M25M20

M25

M3

M4M4

M6

Cambridge£35.00 psf

Northampton£16.00 psf

Milton Keynes£22.50 psf

Watford£30.00 psf

Luton£20.00 psf

Welwyn Garden City£16.50 per sq ft

BEDFORD£13.50 psf

OFFICE MARKET COMMENTARYBedford office supply has enjoyed considerable growthover the past few years and it is envisaged that this trend will continue due to a diminishing supply due to a lack of speculative development and the change of use to residential on a number of schemes within the town centre.

Several major national firms including Autoglassand Fujifilm have based themselves in the town.

Compared to the neighbouring towns of Northampton, Cambridge, Luton and Milton Keynes, rents in Bedford are at a notable discount. Furthermore, we understand there is no new speculative offices planned in the town in the short to medium term.

As such we consider the property benefits from excellentrental growth prospects as more occupiers enter the Bedford market attracted by the improved infrastructure links.

COMPARABLES INCLUDE:-

› 500-600 Witan Gate, Milton Keynes – NHS Trust has taken 19,500 sq ft at £19.50 per sq ft. (June 2016).

› Falcon Way, Welwyn Garden City – Regus has taken 15,930 sq ft at a rent of £16.50 per sq ft.(June 2016).

› Unit 4, Priory Business Centre, Franklin Court, Bedford – An undisclosed tenant has taken 6,250 sq ft at £13.50 per sq ft. (Jan 2016).

› 1 Capability Green, Luton – OAG Aviation Worldwide Ltd has taken 8,577 sq ft at a rent of £19.87 per sq ft. (Dec 2015).

We therefore believe the ERV for the ‘The Main Building’ is £13.00 per sq ft. The “Annex” is rack rented at £9.60 per sq ft.



INVESTMENT COMPARABLESInvestordemandforSouthEastOfficesisatarecenthighwithincreasedconfidenceacrosstheoccupationalmarkets.Inparticularinvestorsaretargetingmulti-letofficebuildingswhichofferasset management and refurbishment opportunities.

Date Address Area Sq Ft Purchaser Tenant Term Certain

Price PSF CV GROSS

GROSSNIY

June 2016 West Point, Peterborough Business Park 125,002 CFH Group Bauer Consumer Media 7.0 £27.9m £237 6.75%

Jan 2016 Worldwide House, Peterborough 169,931 Maya Capital Multi-let 5.0 £22.278m £139 9.75%

Jan 2016 Icon - 1-3, Stevenage 103,938 Undisclosed Multi-let 3.1 £13.02m £133 3.09%

June 2015 Blaise Pascal House, Northampton 106,060 Henley Investment

Intelligent Processing Solutions

3.4 £12.7m £128 8.53%

April 2014 100 Capability Green, Luton 47,300 Private Rexam Beverage 9.0 £10.1m £227 7.30%

Dec 2013 The Lakes, Northampton 50,701 Private Shoosmiths 6.0 £11.25m £236 6.82%



VATThe property is elected for VAT and it is envisaged that the property will be sold by way of a Transfer of a Going Concern (TOGC).

EPCThe Main Building - E121The Annex - E115

PROPOSALWe are instructed to seek offers in excess of £11,800,000 (Eleven Million, Eight Hundred Thousand, only), which reflects a NIY of 8.51% based on purchaser’s costs of 6.71%, and a low capital value of only £112 psf gross.

FURTHER INFORMATION

ANDREW DOBSONT 0203 667 8402E [email protected]

JOHN REAVLEYT 0203 667 8404E [email protected]

PHILIP COOPERT 0203 667 8401E [email protected]

Misrepresentation Act: These particulars are issued, without responsibility on the part of the vendor, BCMRE, or any of their respective employees or agents and serve only as an introductory guide to the premises. No part of them constitutes a term of a contract or a statement or representation upon which any reliance can be placed. Any person with an actual or prospective interest in the premises must satisfy themselves as to any matter concerning the premises by inspection, independent advice or otherwise. BCMRE, nor any of their employees or agents have authority to make or give any representationorwarrantyastothepremiseswhetherinthisreportorotherwise.UnlessotherwisestatedallfiguresquotedaretobeconsideredexclusiveofVAT.Theplansarepublishedforconvenienceofidentificationonly,andalthoughbelievedtobecorrect,theiraccuracyisnotguaranteedanddoesnotformpartofanycontract.October2016. Design and produced by PLP London T:020 3137 3079 • plplondon.com

St.Christoper’s HouseSt.Christoper’s PlaceLondon, W1U 1NZT 0203 667 8400

Documents

WOODLANDS, MANTON LANE, BEDFORD, MK41 7LWbcmre.com/assets/img/bedford/bedford.pdf · 2016. 11. 9. · WOODLANDS, MANTON LANE, BEDFORD, MK41 7LW SITUATION The subject property is situated