British Airways UK Maintenance and R&D Facility Investment - British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
British Airways UK Maintenance and R&D Facility Investment British Airways Avionics Engineering Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Investment Considerations
w Three simultaneous fully repairing & insuring leases We are instructed to seek offers in
w British Airways UK maintenance and research &
development facility expiring on 24th March 2024 (c.5.5 years unexpired) excess of £8,300,000 (Eight Million
w Initial rental is £987,000 per annum, which reduces to Three Hundred Thousand Pounds),
w Strategically located adjacent to Junction 34 of the
£805,011 per annum on 25th March 2019, reflecting a subject to contract and exclusive
M4 Motorway and within the Cardiff Capital Region,
low rent of £7.25 per sq ft of VAT.
one of the UK’s fastest growing commercial locations
w Modern office campus providing three, two-storey w The landlord can request the benefit of the tenant’s
extensive fit out at lease expiry A purchase at this level would equate
buildings including VAV air-conditioning, raised floors,
to a reversionary yield of 9.00% and a
passenger lifts, suspended ceilings and atria w Major occupiers in the vicinity include The Royal Mint,
Welsh Blood Service, Renishaw, Finning CAT, Leekes, net initial yield of 11.05% until March
w 111,087 sq ft facility on a site area of 20.67 acres
and The Royal Glamorgan Hospital 2019, subject to purchaser’s costs of
w Let to British Airways Avionic Engineering Ltd (D&B 7.54% and reflects a low capital value
3A1), who have been in occupation for 25 years and w Aerospace and defence are a cornerstone of the Welsh
economy, with world class training, innovation and of £74 per sq ft
have recently signed a new reversionary leases
expertise attracting some of the world’s leading aviation SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
and defence companies to locate within Wales
M11
M5 CAMBRIDGE
Location - Cardiff Capital Region A1 ( M)
M50 CHELTENHAM
The British Airways facility is located within the Cardiff Capital
Region, one of the UK’s fastest growing commercial locations, GLOUCESTER M40 M1
centred on Cardiff, the capital city of Wales. The Cardiff Capital
Region is a highly compact area, with a 1.6m population within
a 45 minute commute to Cardiff City Centre which is the focal
OXFORD M25
business, commercial, economic, government and administrative
M4
centre for Wales. LONDON
SWANSEA
M4
CARDIFF BRISTOL
Key drivers of the region’s success include: Bristol Heathrow
M2
Quality of Life – Cardiff is ranked the UK’s number 1 Cardiff M3 M20
city for quality of life. It is the closest European capital BATH M23
International DOVER
city to London and the work/life balance offered Airport
across the region is exceptional. The region has a very
M5
low cost of living being some 20% less than the UK SOUTHAMPTON
national average while comparable salary costs are M27
approximately 40% lower than in the city of London. BRIGHTON
BOURNEMOUTH
Fast Growing – Cardiff’s population is projected to
EXETER
grow by 20% over the next 20 years, faster than any
other UK city including London. Growth has already
been 12% over the last 10 years.
Low Occupational Costs – Occupancy costs in the
Cardiff Capital Region are up to 60% lower than prime
sites in central London offering potentially huge annual
savings on occupancy costs.
Connectivity
Transport Infrastructure – Fast developing transport
networks enhance Cardiff’s position as the closest The Cardiff Capital Region has outstanding road, rail and air communications. British Airways UK maintenance and research &
European capital city to London. development facility is situated on juction 34 of the M4 motorway, and lies approximately 236 km (147 miles) from London in
the east. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK
World Class Retail and Leisure – The region has population lives within a 4-hour drive of the Cardiff Capital Region.
outstanding retail, leisure and sporting facilities together
with striking landscapes and coastline, much of which
Distance by Road: National Rail Times:
has National Park status. These elements combine to
offer exceptional life style and leisure opportunities London 236 km 147 miles London 2 hours
across the region.
Bristol 69 km 43 miles Bristol 50 minutes
Highly Skilled Workforce – The Cardiff Capital Region Birmingham 182 km 113 miles Reading 1 hour 35 minutes
contains extensive Higher Education facilities with more Swansea 67 km 41 miles Birmingham 1 hour 59 minutes
than 70,000 students studying at Cardiff University
(ranked in the top 5 universities in the UK in terms of Newport 24 km 15 miles Manchester 3 hours 10 minutes
the quality and impact of its research), The University
of South Wales and Cardiff Metropolitan University. High speed rail services give rapid access to all major cities Electrification of the railway between London Paddington
Significant numbers of students choose to remain in across the UK. The extensive Valley Line Network serves the and Cardiff Central is set to be completed in Q4 2018
the region after graduating, providing an ever increasing inland towns of south east Wales, from where a significant reducing best travel times to 1 hour 45 minutes.
skilled and highly qualified work force. proportion of the city’s work force is drawn. The delivery of an
integrated Metro system has been allocated up to £730m from The Cardiff Capital Region has its own international airport
Inward Investment – The Cardiff Capital Region City the Cardiff Capital Region Deal. The project may include the located 19.2 km (12 miles) from the city at Rhoose. The
Deal will see a £1.2 billion investment fund established, introduction of a light rail system to Cardiff alongside delivery airport serves many national and European destinations.
with the target of delivering 25,000 new jobs and of a major upgrade to the existing rail network around Cardiff.
leveraging £4 billion of private sector investment. This A contract was awarded to an Keolis Amey in 2018. London’s Heathrow airport is less than a two hour drive or
investment is set to fund a number of major projects
rail journey.
including a new light rail Metro system for the region.
Llantrisant
Business Park
Situation Forest View
Royal Mint
Business Park
Llantrisant is a key commuter town to Cardiff and is one of the growth locations within the Cardiff
Capital Region. It is located 12 miles from Cardiff City Centre and 159 miles west of London. CAT
Edwards
Cardiff Airport is located approximately 28 km (17 miles) to the south and Bristol Airport circa
Business Park
92 km (57 miles) east providing daily flights to both domestic and international destinations.
The facility is well located on the A4119 dual carriageway, neighbouring Llantrisant Business
Park and having the benefit of proximity to Junction 34 of the M4 motorway and direct
access to the city of Cardiff. H
Royal
Glamorgan
Hospital
The Welsh Blood Service and Royal Glamorgan Hospital are directly adjacent to the site and
other adjacent occupiers include Premier Inn (which is being extended) and a Brewers Fayre,
Ely Valle
plus a new Costa Coffee Drive-Thru which is under construction. Renishaw Plc occupy a major
facility of around 460,000 sq ft which is located at Junction 34 of the M4 and a number of Welsh Blood
Service
other occupiers have established a presence in this location including Fillcare and Leekes HQ.
y
Magden
Road
Park
LLANTRISANT
To the south of the site towards the M4 is a significant retail offering including a Tesco Extra
superstore and retail park that is occupied by national retailers, such as M&S, Argos, Next, Premier
Inn
Boots, TK Maxx and Pizza Hut.
A4
0 Sennybridge
Sennybridg
70
A4
B4595
BLACK
A Brecon
Bre M5
A479
MOUNTAINS
42
15 A4 Ross-on
Ross
Ross-on-Wye
os on
0
Talbot Green CROSS INN
65
BRECON BEACONS Retail Park
A4
A4
66
NATIONAL PARK 0
A4 Tesco Extra
65
A4
A4 A473
Monmouth
70
59 TALBOT GREEN Glamorgan
A4 A4
0 Aberg
Abergavenny
rgaven Vale Retail
A473
A4
22
1 Merthyr
t yr
th 0
Park
Glyn-
y Ty l
T
N th
Neath Raglan Coedcae A473
65
A4
A4 Lane Industrial Talbot Green town centre
49
A4
8
67
A4
Hirwaun
wa A4
2
A4
04
04
Estate proposed development.
66
5
6
A4
46 Pontypool
ypool
o
A4
• 460 new houses
A4
A A4
05
061
A467
70
9 Usk • Retail, leisure &
A469
N
Nea
Neath
M
5
RN
commerial
SWANSEA Chepstow
VE
14 development
42 A40 22
58
SE
A48
Pontypridd
on d 26
M4
M4 M4
8 21
41
41 A46 8
4
24
23 MWYNDY
Caer
ae
errphilly
il 8 27 A4
Port
A4
400 A4 M4
N
NEWPO
PORT
70
119
Talbott 39
8
38 Llantrisant
antt 29
8
28 20
1
15
0
A4119
30
0 1
16
9
PONTYCLUN Leekes
M4
37
36
35
32
A48
8
Avonmouth
th
h 1
17
19 HQ
34 33 BRISTOL
A4
M4 1
18
CHANNEL
Brid end
Bridgend
23
19 A4222
2
A48 32
BR TOL
BRIST
T
M
CARDIFF
A4119
5
M
0
05
0
20
A3
A4
A4
Penarth
7
8
Airport 70 A3 MISKIN
Barry
Ba y A3
M4
21
Weston-Super-Mare
ston-Super-Mare
Mare Miskin Manor
Hotel &
Health Club
5
M
J34
Ely Meadow, Talbot Green, Llantrisant CF72 8XL
Vale Resort Golf, M4
Spa & Leisure Hotel
Description Accommodation
The facility comprises a complex of three buildings with associated car parking and additional The property has been measured in accordance with the RICS Code of Measuring Practice (6th
land suitable for future expansion. The buildings were constructed in 1993 and are of steel frame Edition) and provides the following approximate gross internal floor areas:
construction with insulated, coated steel cladding and double glazed curtain walling. Each building
is constructed in two wings over two storeys, linked by a central core area and has its own services
making it capable of independent and multi occupation. Building Floor Sq M Sq Ft Sq M Sq Ft
Ground 1,833 19,730
The specification of the buildings includes: A 3,498 37,653
First 1,665 17,923
Ground 1,877 20,199
w Fully accessible raised carpeted floors B 3,321 35,748
First 1,445 15,549
w Suspended ceilings incorporating Cat II anti glare lighting Ground 1,832 19,714
C 3,501 37,686
w Air Conditioning First 1,670 17,972
w Modern WC facilities Total 10,320 111,087
w Double height reception/atria
w One lift within each building
For the purposes of the lease, the floor areas have been agreed at 3,438 sq m (37,012 sq ft) for each
w Restaurant facility in Building C of Buildings A, B and C, which provides a total area of 10,315 sq m (111,036 sq ft).
The buildings were constructed to shell & core specification with all services connected and with the
benefit of lifts, WC accommodation and boilers. The tenant subsequently undertook fit out works at
a cost of approximately £5 million. Importantly, at the expiry of the leases the landlord can request
which fit out works they wish for the tenant to leave in situ and those they wish them to remove.
These works include the installation of:
w Raised floors
w Suspended ceilings
w Water storage heaters and pipe work
w Air-conditioning and chillers
w Ventilation system
w Compressed air facility
w Fire and security alarm instillation
w Construction of single storey glazed link walkways between buildings
w Security gatehouse and barrier controls
The site is bounded entirely by a 3.6 m (12 ft) high wire mesh fence and there is security gate access.
Parking Typical floor plan
- not to scale
The property includes an extensive 299 space car park which provides a ratio of 1:372 sq ft.
Site Tenancies
The property extends to The property is held on four co-terminus leases expiring on 24th
approximately 8.36 hectares (20.67 March 2024 at a current rent of £987,000 per annum. The tenant
acres) as edged in red the Ordnance has signed reversionary leases effective from 25th March 2019, at
Survey extract. which point the rent will reduce to £805,011 per annum. There is
a nine month rent free period upon the commencement of the
reversionary leases, which will be topped up by the vendor.
Tenure
The leases are currently held under the name of ‘British Airways
The property is held on a long Avionic Engineering Ltd’ by way of an assignment from ‘British
leasehold basis for a term of 999 Airways Plc’ in 1996.
years from 30th July 2004 at a
ground rent of £100 per annum British Airways use the facility to provide its UK’s one-stop solution
without review. for the repair and maintenance of a broad range of electrical,
electronic and electro-mechanical aircraft components, employing
some 250 people.
Claw Back Provision
British Airways also undertake repairs and maintenance for other
If the site or part of it is used or airline operators from this facility including Airbus, Thales, Euro Air
occupied for residential uses then Transport, Thomson Airways, Air Europa, Air France, Aero Flot
the owner of the site is required to and Honeywell.
pay 50% of the ‘Development Value’
to a previous owner of the site more
particularly detailed on the title.
The ‘Development Value’ is defined
as the difference in value between
the ‘Industrial Market Value’ and
the ‘Residential Market Value’ based
upon the actual ‘Residential Use’ of
the ‘Conveyed Land’. ‘Residential
Use’ means use or occupation for
residential purposes (other than
residential uses which are ancillary
or incidental to the industrial or
main use) or use for all or any of
the uses specified in Classes A1, A2,
A3, C1, C3, D1 and D2 of the Town
and Country Planning (Use Classes)
Order 1987.
Further details on this clawback
arrangement together with all other
title matters are detailed on the title
to the Property which is available
on request.
OS Plan
British Airways Avionic Engineering Limited British Airways Engineering in Wales
British Airways Avionic Engineering provide highly skilled and specialised aircraft electrical, electronic British Airways Engineering is the aircraft maintenance subsidiary of British Airways which provides
and mechanical component maintenance services to both British Airways and other airlines. Their support services to British Airways and other airlines. It is responsible for the entire BA Boeing 747-
South Wales maintenance facility at Llantrisant provides avionic solutions to electronical, electronic 400 fleet maintenance, cabin interior conversions and general ramp maintenance work for both
and mechanical components through the use of new diagnostics and reliable technologies their own fleet and other airlines.
for a range of Boeing and Airbus Aircrafts for multiple airline carriers including British Airways.
Examples of the type of services provided include in-flight technology, radio and radar and lighting. British Airways Engineering’s UK bases have a strong Welsh focus, and are as follows:
The services provided at the facility supports the continuous improvement and product development
to enhance future aircraft capabilities.
w British Airways Engineering Headquarters – London Heathrow Airport
w British Airways Maintenance – London Gatwick Airport
w British Airways Maintenance – Cardiff International Airport, South Wales
w British Airways Maintenance – Glasgow Airport, Scotland
British Airways Avionic Engineering Limited have a Dun & Bradstreet rating of 3A1 and recent
financial results are as follows: w British Airways Avionics Engineering – Llantrisant, South Wales
w British Airways Interiors Engineering – Blackwood, South Wales
Fiscal Fiscal Fiscal
Non consolidated Non consolidated Non consolidated w British Airways Distribution Centre – London Heathrow Airport
31 December 2016 31 December 2015 31 December 2014
Sales Turnover 26,334,000 31,676,000 29,368,000
Profit / (Loss) Before Taxes 2,211,000 2,114,000 1,434,000 In order to facilitate their substantial presence in South Wales, British Airways has a unique
partnership with the University of South Wales. This provides graduates on the University’s Aircraft
Tangible Net Worth 11,243,000 13,656,000 11,979,000
Maintenance Engineering, Aeronautical Engineering and Mechanical Engineering degrees access to
real BA aircrafts to improve their career prospects, and gives British Airways staff the opportunity to
develop their skills at the University. 2015 saw the opening of the Aerospace Centre at the University
Further financial information can be found at www.britishairways.com. by the partnership, demonstrating British Airway’s commitment to their engineering facilities in
South Wales.
EPC
The property has been assessed with a D95 rating. Further information is available upon request.
Aerospace Industry in Wales Market Commentary
Aerospace and defence is a cornerstone of the Welsh economy as one of the four main The Llantrisant and Talbot Green office market is centred upon Junction 34 of the M4 Motorway
industries making up the Welsh Government’s manufacturing sector strategy. The industry and is an important out of town business location within the Cardiff Capital Region. The location
in Wales is thriving, and Wales provides world-class training, innovation and expertise, from provides occupiers with easy access into Cardiff city centre to the east, to the significant population
university research to government and private sector projects. living in the Rhondda Valley towns to the north, and to Swansea city centre to the west, all accessible
within a 30 minute drive time.
Over 160 aerospace and defence companies are based in Wales, employing over 20,000
people and producing a turnover of £5 billion per annum for the Welsh economy. Some of The Llantrisant and Talbot Green area is one of the most significant public sector locations in Wales,
the world’s leading aviation and defence companies are now based in Wales, including BAE with public sector bodies including The Royal Mint, Welsh Blood Service, Welsh Wound Innovation
Systems, British Airways, GE Aviation, General Dynamics, Raytheon, Zodiac Seats, Qioptiq and Centre, Public Health Wales and Royal Glamorgan Hospital occupying over a 1 million square foot
Airbus (who employ over 6,500 people at its aircraft wing plant in North Wales). of space within a mile of Junction 34 of the M4 Motorway. With occupiers such as the University
of South Wales campus in Pontypridd, Cardiff Airport to the south and the GE Aviation campus at
The aviation and defence focus in Wales is upon: Nantgarw, making Llantrisant and Talbot Green a popular location for occupiers serving these public
sector industries.
Defence Operations – Wales is a cornerstone of UK defence operations through provision of
workforce skills and availability of secure sites and airspace Furthermore, private sector occupiers including Arthur J Gallagher (who are currently expanding in
this location), NFU Mutual, Renishaw, Leekes, Fillcare, Edwards Coaches, Arthur Llewelyn Jenkins,
Aerospace Maintenance Repair and Overhaul (MRO) – Wales is a major centre for MRO, Blakemore Logistics occupy over 2 million square foot of office and industrial space within a mile of
with 10% of the UK’s activity managed here Junction 34 of the M4 Motorway.
Remotely Piloted Aircraft Systems (RPAS) – segregated airspace for RPAS off the coast of Prime office rents around Llantrisant and Talbot Green have been achieved at Magden Park, adjacent
West Wales was the first of its kind in the world to be established to the British Airways campus, where office rents have achieved £14.00 per sq ft.
Aerospace Academic Focus – Wales produces over 6,000 science and engineering graduates
a year, with the 8 Welsh universities having a wealth of aerospace focussed expertise.
Investment Comparables
Area Term
Property Tenant Price Yield Date
(sq ft) Certain
GE Campus,
GE 198,055 7 years £14.80m 7.72% Mar-18
Longwood Drive, Cardiff
British Airways Interiors
Engineering Campus, British Airways 100,000 5 years £5.15m 7.83% Apr-17
Hawtin Park, Blackwood
Airbus Campus,
Celtic Springs Business Park, Airbus 153,000 6 years £26.00m 8.75% Dec-15
Newport
VAT
We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price.
Proposal
We are instructed to seek offers in excess of
£8,300,000 (Eight Million Three Hundred
Thousand Pounds), subject to contract and
exclusive of VAT.
A purchase at this level would equate to a
reversionary yield of 9.00% and a net initial yield
of 11.05% until March 2019, subject to purchaser’s
costs of 7.54% and reflects a low capital value of
£74 per sq ft.
SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
Further Information
For further information
or to arrange a viewing,
please contact either:
Nick Allan Andrew Gibson Nick Lawley Graham Davies
Cushman & Wakefield Cushman & Wakefield Cooke & Arkwright Cooke & Arkwright
T: 0117 910 5282 T: 02920 262 246 T: 02920 346 333 T: 02920 346 371
E: nick.allan@cushwake.com E: andrew.gibson@cushwake.com E: nick.lawley@coark.com E: graham.davies@coark.com
Disclaimer
Important Notice: Cushman & Wakefield and Cooke & Arkwright gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property
but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be
deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were
taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no assumptions should be made in respect of parts of the property which are not shown in
the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6 Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a
statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an
opinion and not by way of statement of fact.
September 2018
You can also read
