G4S, 12 HERON VIEW, AIRPORT ROAD WEST, SYDENHAM BUSINESS PARK, BELFAST, BT3 9LN - Investment
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Investment
G4S, 12 HERON VIEW, AIRPORT ROAD WEST,
SYDENHAM BUSINESS PARK,
BELFAST, BT3 9LN
WELL SECURED INVESTMENT
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Investment Summary
GROUND FLOOR - INTERIOR
• Well located office building situated on Heron View within Sydenham Business Park.
• The office accommodation is set over two floors and extends to 11,995 Sq Ft (net
internal area) and benefits from 47 surface car parking spaces.
• The building has been fitted to a high grade A office specification and was constructed
in 2008.
• Let in its entirety to G4S Secure Solutions (UK) Limited (company registration number:
01046019) on Full Repairing & Insuring terms.
• Unexpired Lease Term of 9 years.
• Let at a gross rent of £164,425 per annum excluding VAT and a net rent of £116,835.88
per annum after ground rent.
• The investment is held long leasehold for 125 years commencing the 1st May 2008 from
Belfast Harbour Commissioners at a rent of £47,589.12 excluding VAT.
FIRST FLOOR - INTERIOR
• Set on a rectangular site measuring approximately 1.20 acres (0.49 hectares).
• The property is elected for VAT and it is envisaged the transaction will be treated as a
TOGC.
• An excellent EPC Rating of C52.
• Offers in the region of £1,200,000 reflecting an attractive NIY of 9.20% after purchaser’s
costs of 5.80%.
• Producing an attractive capital value of £100 per Sq Ft on the net internal area.
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK Belfast, BT3 9LN Location Belfast is the capital of Northern Ireland and is ranked the 14th largest city in the United Kingdom and the 10th largest conurbation. The city is located approximately 103 miles north of Dublin and 70 miles south east of Londonderry. Belfast has an excellent communications network. The M2 motorway provides access to the north towards Antrim and Londonderry and the M1 motorway provides access to the south and west of the province towards Lisburn and Dublin. The city benefits from four railway stations and the Belfast to Dublin train route has a journey time of approximately 1 hour 50 minutes. The two airports, George Best Belfast City and Belfast International, provide access to all major UK and international locations including America and mainland Europe. Sydenham Business Park is located 3 miles east of Belfast city centre and is within close proximity to George Best Belfast City Airport, Port of Belfast and Holywood Exchange.
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Local Economy
Belfast has a resident population of c. 281,000 which represents 15.5% of Northern Ireland’s total population of
1.81 million. The wider Belfast metropolitan area has a population extending to c. 650,000.
Over 60% of Belfast’s total population is of working age. Belfast is a young city, with 18.6% of the population
under 16 years old (2011 census). As of January 2014 the unemployment rate stands at 7.4%.
As the largest commercial centre in Northern Ireland, Belfast has developed into one of Ireland’s premier
business cities and has the largest employed population in the region. In the last few years Belfast has been
extremely successful in attracting Foreign Direct Investment driven primarily by a highly skilled and educated
employment base, competitive operating costs and advanced telecoms infrastructure.
Businesses that have chosen to locate in Northern Ireland include Microsoft, HCL Technologies, Seagate
Technology, DuPont, Bombardier Aerospace, Caterpillar, Allstate Northern Ireland, Liberty IT, Abbey, Citi,
Chicago Mercantile Exchange, Herbert Smith and Allen & Overy to name but a few.
For further information on the local economy please visit www.investni.com
Situation
The subject property is situated within Sydenham Business Park and is accessed via Airport Road West and
Heron View. The property is easily accessible to the A2 Holywood/ Sydenham Bypass giving excellent access
to the regional motorway network.
For indicative purposes only. This plan is published for convenience of identification only and
Nearby occupiers include Fannin, Tyco, CEM Systems, American Dynamics, Phoenix, Emo Oil and SHS Group although believed to be correct, its accuracy is not guaranteed and does not form any part of a
contract. Not to scale.
to name but a few.
Site
The property sits on a flat rectangular site measuring approximately 1.20 acres (0.49 hectares).
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Description
RECEPTION
The property was constructed in 2008 and comprises a substantial two storey building arranged to provide
office accommodation at ground and first floor levels.
The building has been constructed using modern construction techniques incorporating a solid ground floor
slab with piled foundations, a steel superstructure frame and pre-cast concrete first floors with cavity masonry
enclosing walls with a self-rendered finish. There are powder coated aluminum windows below a flat inverted
roof and separate roof top plant area.
Internally the unit has been fitted out to a high corporate specification with high quality internal finishes. There is
a comprehensive air conditioning and ventilation system which has been bespokely constructed to the tenant’s
configuration.
The internal specification includes:
• Raised access computer flooring.
• Suspended ceilings incorporating indirect recessed lighting.
• A full heating and cooling air conditioning and ventilation system.
Acommodation
• 8 person passenger lift.
The lease states that the property provides 11,955 sq ft net internal area as defined in the
RICS Code of Measuring Practice (5th Edition) and we believe the area is split as follows:
• Disabled ladies and gents toilets and welfare areas.
• Very high security CCTV and control system.
Floor NIA (Sq Ft) NIA (Sq M)
Surface car parking for 47 is provided on site and is entered via a security traffic light system with automatic
rising bollards and intercom link to the main building. Ground 6,486 602.5
First 5,469 508
Total 11,955 1,110.5
The property benefits from 47 surface car parking spaces.
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Tenancy Covenant Information
The property is let in its entirety to G4S Secure Solutions (UK) Limited (company registration G4S Group
number: 01046019) on a full repairing and insuring lease for a term of 15 years from the 9th
May 2008 expiring on the 8th May 2023. It is the world’s largest security company measured by revenues and has operations in around 125 countries.
With over 620,000 employees, it is the world’s third-largest private sector employer. G4S was founded in 2004
The investment therefore provides an unexpired lease term of 9 years. by the merger of the UK-based Securicor plc with the Denmark-based Group 4 Falck. G4S has a primary listing
on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has a secondary listing on the
The lease provides a gross rent of £164,425 per annum and is reviewed on an upward Copenhagen Stock Exchange.
only basis every 5 years, the next rent review is due on the 8th May 2018. A ground rent of
£47,589.12 per annum is paid to the Harbour Commission; therefore the investment provides G4S Secure Solutions
a net rent of £116,835.88 per annum.
G4S Secure Solutions business provides a broad range of solutions to both commercial and government
customers. They use their risk management, security and sector expertise to encourage greater outsourcing of
FIRST FLOOR – INTERIOR
the security needs of commercial and government facilities in markets such as ports, airports, retail, financial
institutions and the oil and gas sector, and for government departments such as justice, police, health, foreign
affairs and border control.
G4S Secure Solutions (UK) Limited (company registration number: 01046019) has an Experian Credit rating of
15/100. Full Experian Credit Report is available on request. The last three years of reported accounts may be
summarised as follows:
G4S Secure Solutions 31 Dec 2010 31 Dec 2011 31 Dec 2012
(UK) Ltd (No. 01046019)
Total Turnover £193,630,000 £239,476,000 £437,078,000
Net Worth £7,881,000 (£19,231,000) (£84,197,000)
Pre-tax Profits £7,271,000 £1,875,000 (£85,549,000)
For further information on G4S visit: www.g4s.com
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Title EPC
The property is held on a 125 year ground lease commencing the 1st May 2008 from The The property has been given an Energy Performance Certificate Rating of C52.
Belfast Harbour Commissioners at a rent of £47,589.12 excluding VAT. The ground lease is Full EPC Report is available on request.
reviewed every five years in line with the Retail Price Index (RPI) with the next review due on
the 4th July 2017.
An estate service charge of £260.00 per annum excluding VAT is paid to The Belfast
Harbour Commissioners. The estate service charge is recovered from the tenant.
CAR PARK
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
Belfast Occupational Market Investment Market
Office take-up of 401,484 sq ft was achieved in the Belfast market in 2013, which was There was a notable improvement in transactional activity in the investment sector in Northern Ireland
up 46% compared to the previous year. We expect improving economic conditions to in the second half of 2013 in particular, with several high-profile retail properties changing hands and a
bolster demand for new office accommodation in the Northern Ireland market in 2014 with discernible improvement in investor sentiment.
demand expected to emanate from the expansion of existing occupiers as well as from new
entrants.
In total, approximately £160 million was invested in income-producing investments in the Northern
Ireland market during 2013 in 17 individual transactions compared to more than £92 million invested in
Although there are a number of new office developments planned, which will ultimately ease 8 individual transactions in the previous year.
the shortage of Grade A office accommodation in the city, it will be some time before these
schemes come on stream. We therefore expect to see rental growth emerging in the office
We are aware of the following office investment transactions:
sector in Northern Ireland over the course of the next 12 months.
We expect prime office rents in Belfast to increase by 20% to reach £15.00 per sq ft by
year-end. This anticipated rental growth will in turn boost demand for office investment
properties in core locations.
(Source: CBRE Research)
Address Tenants Sq Ft Date Sold Purchaser Capital Value NIY AWULT
James House, Gasworks, Belfast Government 111,488 Dec 2013 Threadneedle £10,050,000 12.98% To expiry: 5.9 yrs To break: N/A
74-76 Dublin Road, Belfast EU Commission 13,590 Dec 2013 Private Local Investor £1,300,000 7.97% To expiry: 10.25 yrs To break: N/A
Law Society, 100 Victoria Street, Various 46,913 Dec 2013 Private Local Investor £4,250,000 10.96% To expiry: 8.32 yrs To break: 4.67 yrs
Belfast
Killeaton House, 41 Mosside Road, Danske Bank 23,500 Aug 2013 Private Local Investor £2,330,000 7.60% To expiry: 11.67 yrs To break:6.67 yrs
Dunmurry
The Warehouse, 7 James Street Various 12,450 Jan 2013 Private Local Investor £815,000 10.13% To expiry: 1.72 yrs To break: 1.64 yrs
Belfast
(Source: CBRE Research)
G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARK
Belfast, BT3 9LN
VAT
We understand the property has been elected for VAT and it is anticipated that the sale will
be structured as a Transfer of a Going Concern (TOGC).
Proposal
We are instructed to seek offers in the region of £1,200,000 (exclusive of VAT) for our
client’s interest.
A purchase at this level would reflect an attractive net initial yield of 9.20%, after allowing
for normal purchaser’s costs at 5.8% and a low capital value of £100 per Sq Ft based on
the net internal area.
Contacts
Tim Reid CBRE
E: tim.reid@cbre.com Imperial House
T: 028 90436752 Donegall Square East
M: 07803 264410 Belfast BT1 5HD
T: 028 90438555
Gavin Elliott F: 028 90439444
E: gavin.elliott@cbre.com www.cbre.com
T: 028 90436750
M: 0779 6262382
DISCLAIMER: CBRE
These particulars are issued by CBRE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE for
themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part
of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good
faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to
their correctness, (iii) neither CBRE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. Note: All plans and photographs are
for identification purposes only. Subject to contract. MAY 2014.
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