Freehold INVESTMENT SALE
BlaisePascalHouse
100 PAVILION DRIVE | NORTHAMPTON | NN4 7YP
BlaisePascalHouse
Investment Summary
• Strategically located in the Midlands, close to Junction 15 of the M1 Motorway
• Prominently situated on Northampton Business Park, adjacent to the established Brackmills Business Park
• Purpose built HQ building with offices over two levels, with ancillary production/distribution, providing total
accommodation of 105,504 sq ft (9,801.73 sq m)
• Very low site coverage of approximately 27% on a corner site of approximately 9.38 acres (3.80 hectares)
• Let to the strong covenant of Intelligent Processing Solutions Limited (iPSL), with surety from Unisys Limited
• Let on FRI terms until 24 December 2020, subject to option to determine on 23 June 2016 (approximately 6 years term certain)
• Producing £1,200,000 per annum, equating to a low rent overall of only £11.37 per sq ft
•Freehold
• We are instructed to seek offers in excess of £12,270,000 (Twelve Million, Two Hundred and Seventy
Thousand Pounds), subject to contract, which reflects a net initial yield of 9.25%, after allowing for the
usual purchaser’s costs of 5.75%. This also reflects a low capital value of £123 per sq ft
Asda
NYK Logistics
Howdens Joinery
Panasonic
Tesco
Black & Decker
Wickes
Debenhams
Travis Perkins
John Lewis
Howard Paper Group
iPSL
Northampton
Town Centre
Barclaycard
Bus Station
Grant Thornton
A45
AVIVA
HSE
Regus
Waste Recycling Group
Ricoh
J15 M1
Texas Instruments
Coca Cola
11
LEICESTER
Location
Northampton is one of the UK’s established commercial/logistics centres strategically located on the M1 Motorway
close to junctions 15, 15a and 16. The town lies 65 miles (107km) north west of Central London, 8 miles (13km) north
west of Milton Keynes and 52 miles (83km) south east of Birmingham.
Northampton benefits from excellent communication links being a short distance from the M1 Motorway junctions,
together with the A43, A45, A508 and A428 roads, all providing access to the surrounding region. Regular train services
are available from Northampton railway station to London Euston with a fastest journey time of approximately 1 hour. In addition, the area is well served by airports with Luton Airport lying 35 miles (56km) to the south and Coventry Airport
approximately 25 miles (38km) to the north west.
A444
M42
17
A6
8
BIRMINGHAM
M42
M1
M69
8
7
M5
4a
Peterborough
21
2
M6
3a
M45
16
M40 A423
A45
NORTHAMPTON
A5
15a
A361
A43
A44
Major employers within Northampton include Kemdry East Midlands, St Andrew’s Hospital, Nationwide Building Society,
Wincanton, Northampton Borough Council, Asda and Barclaycard.
A6
13
A5
10
A4260
A40
A428
Milton 14
Keynes
A422
A361
BlaisePascalHouse
15
M1
Banbury 11
Northampton has a district population of 194,458 and a population within 12.5 miles (20km) of 378,854. Northampton
is in a government designated expansion zone being overseen by the West Northamptonshire Development
Corporation (WNDC). This will see Northampton develop into a primary regional centre with an additional 37,000
new dwellings within the borough and an increased population of approximately 300,000 by 2021.
A14
A508
A43
17
15
A429
14
A14
19
COVENTRY
A1(M)
9
11 Luton
10
A41
A40 Oxford
9
8a
20
LONDON
A420
M40
A508
Reading
Leicester
M4
13
A5199
A43
15
M4
Heathrow
Kingsthorpe
A5123
A43
Spinney Hill
Wellingborough
A508
Situation
The site is prominently situated 2 miles (3km) from the town centre on the Northampton Business Park, a 54 acre
development of prime offices located immediately off the A45 dual carriageway. The A45 forms a ring road to the
southern boundary of Northampton town centre and provides direct access to junctions 15 and 15a of the M1.
A428
Abington
A5095
A45
A45
A45
Northampton
Daventry
M1 J16
The Park comprises nine buildings totalling 73,221 sq m (788,150 sq ft) and is managed by Northampton Business Park
Management Limited, providing on site security and management services. The subject property has frontage onto
Pavilion Drive. Regular bus services are available between the town centre and the Park.
Bedford
A428
A45
A45
A508
Brackmills
A43
Hardingstone
BlaisePascalHouse
15a
The site lies adjacent to the principal roundabout providing access to the established Brackmills Business Park. Brackmills is part of a Business Improvement District, with local occupiers delivering improvements to the trading
environment by way of an additional levy on business rates.
M25
16
Kettering
Market
Harborough
15
Rugby
21
A509
A45
A43
M1
15
Given the proximity to Brackmills, there are a number of national office occupiers in the immediate vicinity including
Barclaycard, Grant Thornton, Aviva, Waste Recycling Group, Texas Instruments, RICOH and Regus.
A508
Newport
Pagnell
London
Oxford
Milton
Keynes
14
Description
The property comprises a purpose built headquarters building constructed in approximately
1989. The property is arranged into two distinct areas; the front providing office space on
two levels set beneath pitched roofs, with reception and atrium in the centre. The rear of the
building is arranged as a production facility for clearing services with two dock level loading
doors and is of steel frame construction beneath a pitched roof.
The building benefits from the following specification:
•
•
•
•
•
•
•
Good floor to ceiling height of 2.89m (front) and 3.58m (rear)
Raised access floors throughout office areas
Full air-conditioning
Suspended ceilings with recessed Category 2 lighting
Substantial canteen facility
Two 8-person passenger lifts
Two dock level loading doors
Externally the property benefits from 570 car parking spaces, providing an excellent
car parking ratio of 1:185 per sq ft.
The tenant has undertaken upgrade works during their occupation.
Ground floor plan
Not to scale, indicative only
Accommodation
The property has been measured in accordance with the RICS Code of Measuring Practice
(6th edition) and provides the following approximate areas on a Net Internal Area basis:
Entrance
Floor
Use
Sq m
Sq ft
Ground
Reception
122.76
1,321
Ground
Offices
1,972.61
21,233
First
Offices
1,854.62
19,963
Ground
Offices/Ancillary
3,777.90
40,665
Ground
Offices/Ancillary
2,073.84
22,322
9,801.73
105,504
Total
There is additional loading space to the rear of property comprising 300.99 sq m (3,240 sq ft).
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71.0m
69.1m
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50m
75m
ON
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Ordnance Survey
Getmapping plc 2010. Plotted Scale - 1:2500
71.0m
0m
80.2m
Ordnance Survey © Crown Copyright 2010. All rights reserved. Licence number 100020449.
Getmapping plc 2010. Plotted Scale - 1:2500
25m
50m
75m
Site
Tenancy
The building is arranged on a landscaped site of
approximately 9.38 acres (3.80 hectares) and benefits
from a very low site cover of only 26.84%.
The property is let in its entirety to Intelligent Processing
Solutions Limited (iPSL) on a full repairing and insuring
lease expiring 24 December 2020 (10.5 years unexpired)
at a current rent of £1,200,000 per annum, reflecting a low
rent of £11.37 per sq ft overall. There is a tenant’s option to
determine the lease on 23 June 2016, subject to not less
than six months written notice.
Planning
The property benefits from B1 Business use class providing
for offices, research and development of products and
processes, and light industry. The property is covered by
the Northampton Local Plan which was adopted in1997.
The land is zoned as an Existing Business Area.
Tenure
Freehold.
The next rent review is due on 25 December 2015, to the
greater of the passing rent or open market rent.
The lease benefits from a Surety from the substantial
covenant of Unisys Limited.
Covenant
Market Commentary
Intelligent Processing Solutions Limited (Company Number: 04007855) is a business process
outsourcing (BPO) joint venture between Unisys, Barclays, HSBC & Lloyds TSB, founded in 2001.
The company has approximately 1,900 employees and operates across six locations in
the UK, with the HQ in Northampton.
The majority of modern good quality office space in Northampton is located in out of town business
parks, with the town centre largely made up of second hand refurbished or period office buildings. Against a total office stock in the region of 3.7 million sq ft, there was approximately 265,000 sq ft
Grade B space (good quality second hand) of space available at end of 2009, with Grade B take-up
of 58,000 sq ft.
The company is the leader in clearing services in the UK, but also successfully operates other
specialist services including mailrooms, scanning, imaging and archiving, reconciliations
management, mandates management, fraud management and various onshore account
services. As at June 2010, the company had a Creditsafe UK Rating of 95, with a credit limit
of £1,050,000.
Prime rents have grown year on year since the late 1990s with rents reaching their current peak of
£17 per sq ft in 2007. We highlight below a number of out of town lettings recently concluded:
A summary of their most recent financial accounts are as follows:
Description
Y/E
31/12/08
Y/E
31/12/07
Y/E
31/12/06
Turnover
£132.50m
£158.51m
£148.60m
Pre-tax Profit
£19.95m
£40.30m
£18.35m
Shareholder Funds
£3.27m
(£10.82m)
(£52.07m)
The lease benefits from surety from Unisys Limited (Company Number: 00103709). Unisys Limited
was established in 1873 as the first commercial supplier of typewriters. The company designs,
builds and manages IT systems and provides outsourcing services. The ultimate parent company
is Unisys Corporation, based in the USA with total revenues for 2009 of $4,598m. As at June 2010,
Unisys Limited had a Creditsafe UK Rating of 98, with a credit limit of £1,550,000.
A summary of their most recent financial accounts are as follows:
Date
Building
Tenant
Size
Sq Ft
Rent
£psf
Mar 10
Part Ground & 2nd Floor,
800 Pavilion Drive
Ricoh
25,183
13.90
5 year lease,
9 months rent free.
Nov 09
Part Ground & 1st Floor,
800 Pavilion Drive
Texas
Instruments
24,727
14.00
5 year lease,
12 months rent free.
Jul 09
Shoosmiths House,
5 The Lakes
Shoosmiths
Solicitors
50,701
16.00
20 year lease with break
at 10 and 15. 18 months
rent free.
Aug 08
Park House,
300 Pavilion Drive
Grant Thornton
12,808
13.50
15 year lease with break at
5 and 10. Rent penalty if
5th year break exercised.
May 08
400 Pavilion Drive
Regus
22,375
14.00
10 year lease.
Note: Description
Y/E
31/12/08
Y/E
31/12/07
Y/E
31/12/06
Turnover
£177.14m
£219.06m
£239.80m
Pre-tax Profit
£8.07m
£14.29m
(£0.88m)
Shareholder Funds
£51.56m
£67.60m
£32.05m
Terms
Whilst the information is believed to be correct, some is derived from third parties, hence prospective purchasers should
satisfy themselves as to its accuracy.
VAT
Proposal
The property is elected for VAT and, therefore, VAT will be payable on the purchase price.
It is envisaged, however, that the transaction will be dealt with by way of a transfer of a going
concern (TOGC).
We are instructed to seek offers in excess of £12,270,000 (Twelve Million, Two Hundred and
Seventy Thousand Pounds), subject to contract, which reflects a net initial yield of 9.25%,
after allowing for the usual purchaser’s costs of 5.75%. This also reflects a low gross capital value
of £123 per sq ft.
Capital Allowances
For further information or to arrange an inspection please contact:-
There may be capital allowances available. More information is available on request.
Scott Helyer Rob Jackson
Ian Leather
tel: 020 7198 2225
e:[email protected]
tel: 020 7198 2166
e: [email protected]
tel: 01604 662 551
e: [email protected]
Additional information is provided at: www.lshinvestmentsales.co.uk
Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that:
(i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension,
distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warranty or statutory or any other permission, approval or reference to suitability for use or
occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations
of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any
representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at
all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees
or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information
has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification or scope of works or
amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they
may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.
July 2010