SAPPHIRE COURT STREETSBROOKROAD I SOLIHULL I B911QT A PRIME ASSET MANAGEMENT & REPOSITIONING OPPORTUNITY - PDF4PRO
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SAPPHIRE
COURT
STREETSBROOK ROAD I SOLIHULL I B91 1QT
A PRIME ASSET MANAGEMENT
& REPOSITIONING OPPORTUNITY
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
SOLIHULL TOWN CENTRE
1 3 7
INVESTMENT 2
6
CONSIDERATIONS 8
10
4
The investment comprises a rare 11
opportunity to acquire a prime 3.93 acre 9 12
site in Solihull town centre, with numerous 5
13
opportunities to improve the existing
asset through repositioning or
redevelopment
• Situated immediately adjacent to Solihull rail
station and a short walk from the town centre
retail and leisure facilities.
• Sapphire Court is currently an office development
comprising six interlinking blocks totalling
88,375 sq ft (8,286 sq m) NIA. STREETSBROOK ROAD 14
• The investment is significantly underpinned by
office redevelopment or alternative use values
including residential or senior living (subject to
planning) and hotel uses.
• Freehold.
• Sapphire East (Blocks A, B and C) is let to the 16 15
Environment Agency (49%), The First Secretary of State
1 House of Fraser
(40%) and a vacant suite (11%). The AWULT is 9.06 2 Marks & Spencer
years to expiry and 4.74 years to break.
3 Mell Square Shopping Centre
• Sapphire West (Blocks D, E and F) is vacant and has
been delisted so as not to attract vacant rates. 4 John Lewis
5 Premier Inn
6 Touchwood Shopping Centre
• Solihull is regularly named one of the UK’s best places
to work, live and shop. At the end of 2013, based on their 7 Council Offices
Quality of Life index, uSwitch named it the Best Place to
Live in the UK.
8 Solihull Police Station
SAPPHIRE COURT
• Prime office rents in the Solihull area currently stand
9 Proposed Waitrose
at £23.75 per sq ft, as witnessed at Interserve House. 10 Paragon
This is a significant discount to Grade A rents in Central
Birmingham which are currently in excess of £30.00 11 National Grid
per sq ft. 12 Xoserve/National Grid
• Prime residential sales values in central Solihull for
apartments are now over £375 per sq ft.
13 npower
14 Solihull Station
15 Decked Station Car Park
• Offers sought, on an unconditional basis, in excess of
£10,000,000 (Ten Million Pounds), subject to contract
16 Solihull Fire Station
and exclusive of VAT.
• A purchase at this level equates to an overall low capital
value of £113 per sq ft (based on Net Internal Areas).
02 03
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
ASSET MANAGEMENT &
DEVELOPMENT INITIATIVES
The investment is significantly underpinned
by office redevelopment or alternative use values
including residential, senior living and hotel uses
• There are numerous opportunities to substantially increase the
current value of the property and potentially deliver a statement
development in a prosperous town centre.
• The current income provided by government strength tenants in
Sapphire East for a minimum of 4.74 years provides an income return
whilst asset management angles can be initiated.
SAPPHIRE WEST OFFICE INITIATIVES
• Refurbish existing Sapphire West office buildings to Grade A standard to take
advantage of the lack of currently available Grade A office accommodation in
Solihull town centre.
SAPPHIRE EAST • Undertake phased redevelopment of the whole site into two or more new
Grade A office buildings and consider increasing massing on site, subject to
planning.
• Within Sapphire East remove The First Secretary of State break in 2021 and
let vacant office suite.
RESIDENTIAL INITIATIVES
• Convert Sapphire West into residential apartments under existing Permitted
Development Rights, for which planning has been obtained. Secure planning
permission to convert Sapphire East upon vacant possession.
• Alternatively, consider a phased redevelopment of the whole site for new
build residential apartments, subject to planning.
• The site is of such a size and location to explore Private Rented Sector (PRS)
investment.
ALTERNATIVE INITIATIVES
• Planning has been secured for the development of a 99-bed hotel with
associated conference and restaurant facilities on the existing car park to the
south of the site.
CONSENTED HOTEL • Explore alternative land uses including senior living, educational and
healthcare.
DEVELOPMENT SITE
• Liaise with Network Rail and Solihull Council to provide direct link to Solihull
rail station and associated bus stops through the existing multi deck adjacent
car park.
04 05
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
CONNECTING PEOPLE
Solihull’s central location has excellent
transport links by road, rail and air
CARLISLE
ROAD
Solihull is located at the centre of the national
M6
motorway network and the town centre is LEEDS
approximately 1 mile (1.6km) west of M62 HULL
Junction 5 of the M42 Motorway.
This in turn connects to the M5, M6 MANCHESTER
and M40 motorways. LIVERPOOL
SHEFFIELD
RAIL HS2 M6 HS2 M1
Solihull railway station, adjacent to
Sapphire Court, is served by both
Chiltern Railways and London Midland. BIRMINGHAM BIRMINGHAM
AIRPORT
Solihull will also benefit from the
M1
proposed HS2 station at Birmingham Airport. SOLIHULL
HS
2
M5 M4
0
125
AIR
Direct train to London
90
Within Solihull Borough lies
Birmingham Airport, the seventh
CARDIFF
BRISTOL
M4 LONDON
Birmingham
largest in the UK. The airport is one of HS
1
DOVER City Centre
7 miles
the fastest growing in the UK, handling M3
M2
0
circa 9.7 million passengers in 2014
and served by over 60 airlines operating
scheduled and charter flights to EXETER
by road mins
over 125 domestic, European and
transatlantic destinations. UK Motorway Network
HS1 & HS2
destinations served by
Birmingham airport
06 07
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
LOCATION
Solihull is one of the region’s most desirable office,
retail and residential locations
M6 A460 A51
A449 LICHFIELD A42
11
12
CANNOCK BURNTWOOD
11A T7
T8 T6
11
M54 BROWNHILLS T5
Solihull is a sub-regional centre in the heart of the West Midlands conurbation Solihull Metropolitan Borough is renowned for its key economic assets,
2
1 10A T4 TAMWORTH
A5 and is regarded as one of the region’s most desirable office, retail and strategic transport infrastructure, high quality environment, aspirational
A461 residential locations. housing and excellent schools, which are integral to its economic success.
10 ROAD These values have ensured that Solihull is a desirable place in which to
M6 Toll
WOLVERHAMPTON live, work and invest. The town centre is strong, vibrant and of high regional
A5 Solihull is located approximately 7 miles (11 km) south east of Birmingham
10
WALSALL T3 importance containing a wide variety of shops, businesses and civic services.
city centre, 13 miles (21 km) west of Coventry, and 14 miles (22 km) north
54
9 T3 west of Warwick. London is approximately 120 miles (193 km) to the south Public and private sector initiatives include:
A449 SUTTON east and Manchester approximately 80 miles (129 km) to the north west.
8 COLDFIELD T2 • Solihull rail station has seen a 250% increase in passenger traffic in 10
RAIL years rising to over 1.65m annually in 2013/2014. This has led to a new
M6 NUNEATON
A41
T1 deck car park being constructed.
Solihull railway station, adjacent to Sapphire Court, has the following fastest
WEST direct journey times: • Touchwood shopping centre, anchored by John Lewis, currently comprises
DUDLEY 1 6 5 8
BROMWICH
4A 650,000 sq ft of retail and leisure space. Planning is consented to add a
Birmingham (Moor Street/Snow Hill) 15 minutes further 115,000 sq ft / 30 units.
2
Warwick 17 minutes
4 • Standard Life/Opus Land have obtained planning for a 28,000 sq ft
A456 BIRMINGHAM 3A
M6 Stratford-upon-Avon 28 minutes Waitrose supermarket adjacent to John Lewis.
HALESOWEN BIRMINGHAM High Wycombe 75 minutes • IM Properties plan a phased redevelopment of the 750,000 sq ft
A38 A45
3 6 London (Marylebone) 90 minutes Mell Square shopping centre.
A456 A41 A452
M5 A34 AIR • Premier Inn opened a 112-bed hotel and associated restaurant in August
M42 2012 in Solihull town centre.
KIDDERMINSTER Birmingham Airport is located 4 miles (6.5 km) north of Solihull town centre,
SOLIHULL 5 COVENTRY close to the intersection between the M6 and M42 motorways and is linked to • Jaguar Land Rover announced in January 2015 they are to create a further
A441 A435
both Birmingham International rail station and the National Exhibition Centre 1,300 jobs at their Solihull plant to build their first sports utility vehicle. This
4 4 (NEC). follows the recent launch and production of the new Jaguar XE at the plant
which created 1,700 direct jobs.
KENILWORTH Inward business investment into the region has led to the runway at the airport
2
4A 1 M42 3 A4177
being extended in 2014 and the airport now handles direct flights to China, the • The National Exhibition Centre is the UK’s largest and Europe’s busiest.
A448 3A
Middle East and New York. Adjacent to the NEC is the 16,000-person Arena. Both have seen upgrade
49
ALVECHURCH expenditure in the last 5 years totalling £70 million.
BROMSGROVE
A46
M40
08 REDDITCH WARWICK 09
HENLEY IN ARDEN
5
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
SOLIHULL TOWN PROFILE
& DEMOGRAPHICS
Solihull is an integral part of the West Midlands economy
and the most productive in the region
Solihull has a Solihull has a
7,000
businesses,
74.5% population of employing
level of home 206,700 more than
ownership (2011 Census) 100,000
people
Demographic and Business Profile
Solihull has a population of 206,700 (2011 census) and is considered a highly affluent borough in both the regional and national context. This
is characterised by above-average levels of income and home ownership and a high proportion of residents (50%) classified as belonging to the
Prosperous Suburbs socio-demographic classification.
The living environment, with a mix of urban and rural communities, key strategic sites, transport infrastructure and large amounts of green space
are Solihull’s key strengths, as evidenced by high levels of resident satisfaction with the area. Solihull residents also earn more than the UK
average across all percentile groups with the positive wage differential increasing among the very highest earners.
Overall, Solihull has a high level of home ownership (74.5% of all households in 2011 compared to the UK average of 63%). There were 115,662
vehicles in Solihull in 2011, an average of 1.43 for every household in the borough, compared to the UK average of 1.26 and the West Midlands
average of 1.28. Nearly 41% of households in Solihull have two or more vehicles, significantly more than the UK average of 32%.
Solihull is an integral part of the West Midlands economy and the most productive in the region. The town supports Birmingham, the UK’s second
largest city, by being home to over 7,000 businesses employing more than 100,000 people. The workforce is recognised as being highly
productive with GDP per capita of 130% of the national average, compared to a wider regional rate of 90%.
The M42 Economic Gateway is a major economic growth driver in the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) area and
is home to key strategic assets and employers including Birmingham Airport, the National Exhibition Centre, Jaguar Land Rover, Birmingham and
Blythe Valley Business Parks who draw in circa 85,000 workers to the Borough on a daily basis.
NEC Weekly earnings Voted
the UK’s largest
and Europe’s
13% ‘best place
to live in
higher than the
busiest exhibition
national average the UK’
centre (uSwitch survey)
10 11
Key: SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
1 7
Sapphire Court occupies a prominent position fronting Fire Station Proposed Waitrose
Streetsbrook Road. 2 Solihull Train Station 8 Premier Inn
Solihull town centre with its associated retail and leisure
facilities is located 500m to the south east.
3 npower 9 Touchwood/John Lewis
SITUATION
4 Xoserve/National Grid 10 Magistrates Court
Junction 5 of the M42 motorway is 1 mile (1.6 km) to 5 National Grid 11 Police Station Sapphire Court is situated in Solihull town centre
the east via the B4102 (Warwick Road) and A41.
6 UK Border Agency immediately adjacent to the railway station
1
SAPPHIRE
COURT
B4025 STREETSBROOK ROAD
Sapphire Court is situated on Streetsbrook Road in Solihull town centre. The property is very well located for local public transport links, being adjacent to
Solihull train station and associated numerous bus stops. The property is also very accessible by car and is less than 5 minutes walk from the town centre
amenities.
2
Solihull boasts two shopping centres. Touchwood is one of the UK’s best known regional shopping destinations and has a reported annual footfall of 16 million.
STATION APPROACH The scheme is anchored by John Lewis, H&M, Zara, Topshop, Next, GAP and Apple. Mell Square is the traditional shopping heart of the town centre and is
anchored by House of Fraser, Marks & Spencer, BHS and Sainsbury’s.
The main office core in Solihull is situated along Homer Road/Princes Way where large offices for the likes of npower, National Grid, Xoserve, Paragon,
B425 LODE LANE UK Immigration Service, West Midlands Police and Solihull Council are located.
J5 M42 1 MILE m Also on Homer Road is Solihull Magistrates Court, Solihull Central Library & Arts Complex and a Holiday Inn hotel.
8
STATION ROAD
SAPPHIRE COURT
Solihull Hospital
RD
NE
FIRE
NE
B4
LA
STATION 02
W IN T ERBOUR DE
5
3
O
HOMER ROAD 5L
STATION ST
RE B42
CAR PARK ET
SB
RO
S TE R RD OK
B E AM IN RO
NE
AD E LA
4 7 HERBERT ROAD
ST
LOD
B41
0 2 WAR WICK ROAD
AD
ATI WAR
WIC
RO
ON AP
PRO ACH KR Solihull School
O
AR
SOLIHULL AD
9 DO S T A TI O
PL
STATION
RC N RO
PO
HE A D
ST 2
ER 10
D DR B4
R OLL S WOO L E Y RD R
OAD
OA
D
TR
Proposed
AT
ER
HI
RB
GH
HE
ST
PRINCES WAY
RE
Tudor Grange
ET
ROOK RD
5
Leisure & Sports Centre
ALDERB
PRINCE
MAGISTRATES
AD
COURT
Shopping Centre
RO
H O U S E WAY
W
HO POLICE
kJUNCTION 5 M42
SW
NE
M STATION
ER
10
AY
R
OA
NEW
D
ROAD
ITE
WH
COUNCIL St Alphege Church
Golden OFFICES
D
Jubilee
6
ROA
Gardens
11
LL
AD
Tudor Grange Park RO
HI
L
CH
P
L
UR
HA
IN
R
CE
CH
H
S
AT
WA
SP
12 Y 13
NK
MO
RECTO
RY ROA
D
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
DESCRIPTION
Sapphire Court currently comprises six interlinked
office blocks totalling 88,375 sq ft (NIA)
Sapphire Court was originally constructed in 1975 and subsequently extended
in 1987. It has been substantially refurbished at various points. The property
comprises six interlinked office blocks providing a total floor area of 88,375 sq ft
(8,286 sq m) NIA.
Blocks A, B and C are collectively known as Sapphire East and provide office
space of 47,144 sq ft (4,381 sq m) NIA. Sapphire East is predominantly let to the
Environment Agency and The First Secretary of State, with a small third floor suite
vacant of 4,746 sq ft (441 sq m) NIA.
Blocks D, E and F are collectively known as Sapphire West and previously provided
office space of 41,231 sq ft (3,905 sq m) NIA. Sapphire West is currently vacant
and has been stripped back to shell and de-rated so as to not attract vacant rates.
The property is of concrete frame construction with brick and curtain wall glazed
elevations. Blocks A, C and E are four storeys in construction, block D is three
storeys and blocks B and F are two storeys.
Sapphire East benefits from full VAV air-conditioning, three compartment
underfloor trunking, suspended ceilings and double glazing. Male, female and
disabled WC’s are provided at each level. A total of five 8-person lifts serve the
property, one in block A, two in block C and two in block E. Those in block E have
been decommissioned.
In the last two years the Landlord has replaced the chillers and central boilers in
Sapphire East.
There is surface car parking for 286 vehicles providing an excellent town centre car
parking ratio of 1:309 sq ft.
GIA NIA*
Sapphire East 61,008 sq ft 47,144 sq ft
5,668 sq m 4,381 sq m
Sapphire West 51,891 sq ft 41,231 sq ft
4,821 sq m 3,905 sq m
Total 112,899 sq ft 88,375 sq ft
10,489 sq m 8,286 sq m
*The NIA area for Sapphire West is prior to strip out
SERVICE CHARGE
There is a service charge covering both the office buildings and external areas. For
the year ending 30th September 2015 the total service charge is at £10.46 per
sq ft. This breaks down to an external area charge of £0.84 per sq ft and a cost of
£9.62 per sq ft for the Sapphire East offices.
Within Sapphire East the office cost of £9.62 per sq ft is split between base costs
of £6.19 per sq ft and major works (only due in 2014/2015) of £3.42 per sq ft. The
service charge should reduce to a longer term average of circa £7.00 per sq ft in
future years.
As Sapphire West is decommissioned then only the external area charge applies
to this element.
A detailed breakdown of the service charge is available on the Lewis Ellis website.
14 15
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
PLANNING
The site lends itself to future re-development
and is unallocated in the Solihull plan.
BLOCK A - ENVIRONMENT • Cerda Planning have acted as planning consultant on Sapphire Court since 2009 and have
AGENCY ENTRANCE prepared a planning position statement which is available on the Lewis Ellis website.
• Solihull Metropolitan Borough Council are the Local Planning Authority for the site.
• The site comprises previously developed land, located within the urban area, occupying a
highly sustainable location in proximity to the rail station and town centre.
• The site is prominent and the Council have always been very supportive of proposals coming
forward to enhance the visual amenity of the site. The site is unallocated in the Solihull plan.
• Planning permission has been secured for a hotel and remodeling of the existing office
buildings (reference 2012/01081, approved 1st July 2015). There is also a prior approval
for conversion to residential with no affordable housing (reference 2013/1815, extant until
BLOCK C - VACANT FLOOR 30th May 2016). There is no negative planning history on the site.
• Planning is currently sought for partial demolition of the office buildings (Sapphire West,
blocks D,E & F) and replacement with new office accommodation. Very positive pre-
application discussions have been held.
• The extant prior approval, whilst confirming the acceptability of a residential conversion
scheme, also provides a fall back for the purposes of negotiating a demolition/
TENURE
redevelopment scheme for residential. Furthermore, Solihull Council are unable to
demonstrate a 5 year supply of housing land such that the presumption in favour of
sustainable development applies - the consequence being that a residential proposal should
The property is held Freehold. The site extends to approximately 3.93 acres (1.59 hectares). only be refused where the Council can evidence significant and demonstrable harms.
BLOCK C - THE FIRST SECRETARY
OF STATE ENTRANCE • In overall terms, the previously developed nature of the site and its sustainable position
in the Borough is such that the site will always be appropriate for development; there are
TENANCY a variety of options available including hotel, office and residential uses. Whilst office use
is the Council’s preferred use, the fallback position with a prior notification for residential
Sapphire East (Blocks A, B and C) is currently let (89%) to two tenants with an AWULT of 9.06 years to lease expiry and 4.74 years taking into account the one break together with the extant permission for a business hotel provides options for taking the
option. The income produced in the property is secured against two government tenants, thereby offering undoubted income security during their lease terms. The site forward.
current passing rent is £541,859 per annum.
Sapphire West (Blocks D, E and F) is vacant and has been delisted so as not to attract vacant rates.
Within the third floor vacant suite of Sapphire East, there is a landlord’s service and estate charge liability for 2014/15 of £52,815 per annum and a rates
liability of £39,933 per annum. Within Sapphire West, there is a landord’s estate charge liability for 2014/15 of £34,760 per annum. The current net income is
therefore £414,351 per annum, which should increase to circa £425,000 following the reduction in the service charge for 2015/2016.
Block/Floor Tenant NIA sq ft NIA sq m Lease Start Lease Expiry Break Option Rent pa Rent psf Car Spaces Comment
Tenant has been in occupation since 1988 and recently rebased rent from
Block A (Ground, 1st, 2nd, 3rd), Block B (Ground) Environment Agency 22,594 2,100 06/06/2014 05/06/2019 £239,159 £10.59 71 £377,820 pa (£16.72). Service charge cap of £240,000 per annum (£10.50 per sq ft).
Schedule of condition.
Block B (1st) Block C (Ground, 1st, 2nd) The First Secretary of State 18,555 1,724 25/12/2003 24/12/2028 01/04/2021 £302,700 £16.31 57 Option to break subject to 9 months notice.
Service and estate charge liability for 2014/15 = £52,815 per annum.
Block C (3rd) Vacant 4,746 441 £0 17
Rates liability for 2015/16 = £39,933 per annum.
Reception 1,249 116
Sapphire East Sub Total 47,144 4,381 £541,859 145
Sapphire West Sub Total 41,231* 3,905* £0 133 Estate charge liability for 2014/15 = £34,760 per annum.
Substation Midlands Electricity Board 29/12/1974 28/12/2073 £0
Overall Total 88,375 8,286 £541,859 278
Net Income Total (less 2014/15 service and estate charge and rates liability) £414,351
*As Sapphire West has been stripped out the NIA figures given are prior to this.
16 17
SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
DEVELOPMENT & REFURBISHMENT POTENTIAL Macro level considerations
• Distinct lack of refurbished Grade A office buildings in Solihull town centre and
Micro level considerations
• Solihull town centre is 500m distant providing all necessary amenities.
no speculative development underway, despite increasing levels of demand
• The property occupies an excellent location adjoining Solihull railway station
Sapphire Court is at a stage in its life cycle where there exists various for Grade A accommodation.
and associated bus stops. This is very attractive from both an office or
opportunities to improve the value of the property • New cycle Grade A office rental high of £23.75 per sq ft recently achieved at residential perspective.
Interserve House, an out of town location.
• The site is screened by a row of thick tree lined shrubbery, which reduces
• Solihull has the 3rd highest average residential sales prices (£2,189 per sq m) noise from both Streetsbrook Road and the railway, giving a feeling of
The site lends itself to a number of uses including, but not exclusive to, outside Southern England. exclusivity to the site.
refurbishment or redevelopment as offices, conversion or new build residential, • Solihull resident population is regarded as being highly skilled and affluent • The existing buildings are complimented by a large surface parking area to
hotel, educational use or senior living, subject to a relevant planning consent with over 70% of the urban population being considered as “suburban comfort”
or “symbols of success”.
all sides of the property. This offers both an excellent car parking ratio for the
offices and also provides additional development land.
• There are a number of town centre initiatives currently underway including • The buildings on the site are of low density and offer opportunities to infill/
extensions to Touchwood Shopping Centre, Mell Square Shopping Centre and a expand the existing properties or redevelop to a more efficient density.
new Waitrose supermarket.
SAPPHIRE WEST
SAPPHIRE EAST F
D
E
B C
A
CONSENTED HOTEL
DEVELOPMENT SITE
STREETSBROOK ROAD
18 19SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
Existing Building Initiatives New Office Development
OFFICE REFURBISHMENT / DEVELOPMENT
• Refurbish existing Sapphire West office building to Grade A standard to take • Consider phased redevelopment of the whole site into two or more new Grade A Solihull is regarded as one of the Midlands prime office locations
advantage of the lack of supply in Solihull town centre. Planning for a office buildings and look to increase massing on site, subject to planning.
comprehensive refurbishment to include landscaping works has been granted • Architects, Fletcher Rae, have designed a stand alone, contemporary Grade A
under planning application number 2012/01081. office of 64,585 sq ft (6,000 sq m) GIA / 56,620 sq ft (5,260 sq m) NIA to Solihull is regarded as one of the Midlands prime office locations. The town centre and the business parks along the M42 including Blythe
replace Sapphire West (c.37% increase in size). This would consist of Valley, Birmingham Business Park, Trinity Park, The Green and Solihull Business Park provide the highest concentration of Grade A offices
• Let vacant 3rd floor office suite in Sapphire East.
two 4-storey 16 metre wide blocks with a link element containing the building outside of Birmingham city centre. The town has attracted a wide range of national and international occupiers including Jaguar Land Rover,
• Remove The First Secretary of State break in 2021 in Sapphire East. core facilities. National Grid, RWE npower, Paragon Finance, ARUP, LaFarge, Balfour Beatty, Oracle, Fujitsu and Siemens.
• Increase massing by infilling the lower storey blocks B, D and F, which lie • Recent pre-application meetings with Solihull Council support the concept of The Solihull office market enjoyed an excellent 2014 with 418,000 sq ft of office space in the town centre and the M42 corridor transacted
in between the four storey blocks A, C and E. redeveloping Sapphire West as outlined above. over the course of the year. This figure is nearly double the long term average of 220,000 sq ft.
With demand for Grade A office space in the town centre now outstripping supply and office stock at very low levels, new speculative
developments and refurbishments of office space in Solihull are now being considered. Rents of £21.00 per sq ft have been proven at
Fore Business Park and furthermore Interserve plc have just committed to a 113,657 sq ft pre-let at £23.75 per sq ft adjacent to
Birmingham Airport.
SAPPHIRE WEST
SAPPHIRE EAST F
D
E
B C
A General Notes
All site dimensions shall be verified by the Contractor on site
prior to commencing any works.
Do not scale from this drawing.
Only work to written dimensions.
This drawing is the property of Fletcher-Rae (UK) Limited (t/a
Fletcher-Rae) and copyright is reserved by them. The drawing is
not to be copied or disclosed by or to any unauthorised persons
without the prior written consent of Fletcher-Rae (UK) Limited.
CGI of Proposed New Sapphire West Office Development CGI of Proposed New Sapphire West Office Development
Legend
Proposed Trees
Existing Trees
STREETSBROOK ROAD
Existing to be Demolished
H Ga Fa Ea Da Ca
Existing
Visitor Parking
6
Sapphire East UP
5
4
3
2
Drop Off
1
Main A
Access
B
C
D
E
F
G
Stepped Sub station
Pedestrian Access
New
Pedestrian Link
ad
Streetsbrook Ro
Layout Plan of Proposed
20 New Sapphire West Office Development CGI of Refurbished Sapphire West Office 21
Revision
Scale 1:500@A1
Status PlanningSAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
RESIDENTIAL CONVERSION / REDEVELOPMENT Ten Most Expensive towns per sq m outside Southern England.
Town Region Average Price (per sq m) in 2014 Residential Development & Conversion Initiatives
Altrincham North West £2,227
Solihull was named “The Best Place to Live in the UK” by uSwitch • Convert Sapphire West into residential apartments under existing Permitted
Development Rights, for which planning has been obtained (reference
Edinburgh Scotland £2,214
at the end of 2013 based on their Quality of Life Index Solihull West Midlands £2,189
2013/1815).
• Secure planning permission to convert Sapphire East to residential apartments
A vibrant town centre, the strength of the local economy, high quality schooling and natural environment coupled with excellent Leamington Spa West Midlands £2,144
upon vacant possession in the future.
connectivity to Birmingham and London have been the key factors driving the demand for residential property in Solihull town centre. Aberdeen Scotland £2,125
The town was named “The Best Place to Live in the UK” by uSwitch at the end of 2013 based on their Quality of Life Index. • Alternatively, consider a phased redevelopment of the whole site, increasing
Harrogate Yorkshire £2,077 massing, to deliver a scheme of new residential apartments, subject to planning.
Solihull has experienced a robust period of residential growth in recent years and is considered one of the most buoyant and strongest York Yorkshire £1,908
performing towns in the region. In terms of capital growth over the past 12 months, vendor asking prices are 9% higher, partly driven by an • Furthermore, explore options for senior living or care home uses.
increasing supply/ demand imbalance (Source: Rightmove). Current prime residential sales values for apartments in central Solihull are Sutton Coldfield West Midlands £1,857
• The site is of such a size and location to allow a scale of redevelopment which
now over £375 per sq ft. Macclesfield North West £1,783 would be of interest to Private Rented Sector investors.
Worcester West Midlands £1,770
There are many residential developers active in the region with current examples including:
• Ortus Homes (a McCarthy & Stone company) have developed Scarlet Oak to the immediate east of Solihull town centre. This is a development of
28 two bedroom apartments with gated car parking is exclusively for over 55’s, with prices starting from £325,000.
• Two miles south of Solihull town centre, Crest Nicholson have developed Dorridge Gate, a scheme of 27 two, three and four bed homes, with
prices starting from £235,000. They have a second phase planned called Dorridge View which will comprise 17 three, four and five bed executive
houses set on a private road.
• Three miles to the south east, Damson Homes are developing Birchy Greens, a scheme of 5 three, four and five bed houses, with prices from
£525,000.
• Two miles to the south east, Marcity are developing Catherine’s Court, a scheme of 14 two bed apartments, with prices from £305,000.
SAPPHIRE WEST
SAPPHIRE EAST F
D
E
B C
A CGI of Conversion of Sapphire West
22 23
STREETSBROOK ROADSAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
HOTEL DEVELOPMENT
Hotel Development Initiatives
• On the existing car park to the south of the site, planning has been
Planning has been granted for a 99-bed hotel with associated
granted for the development of a 99-bed hotel over ground and four conference and bar/restaurant facilities
upper floors with associated conference and bar/restaurant facilities.
• Designed by Fletcher Rae, the total floor area of the hotel granted is Hotels in the West Midlands region continue to perform well seeing a further year of growth in 2014 on top of the year on year growth
35,565 sq ft (3,304 sq m), and the room types include: 87 double from the low point of 2010. Occupancy rates have increased due to both business and leisure factors, such as major conferences in the
rooms, 8 family rooms and 4 accessible rooms. area, and the increasingly popular annual German Christmas Market in Birmingham city centre. During the latter event occupancy rates in
• Planning has been granted under planning application number central Birmingham rose by over 5% to 84% in 2014, with the average room rate and RevPAR both increased by 11% and 17% respectively
2012/01081. during the same period.
• S trong interest has been received in this site from Travelodge who Solihull town centre has seen the recent development of a 112-bed Premier Inn hotel to complement the existing offer of a 120-room
are keen to locate in Solihull town centre. Wright Silverwood are Holiday Inn, 185-room Ramada and the 180-room 4* St John’s Hotel. Furthermore, there are active hotel requirements in the Solihull area
Travelodge’s retained advisors in the Midlands. from such brands as Travelodge and Accor.
CGI of New Hotel Hotel rental room rates in the area are now in excess of £5,000 per room. Prime net initial yields for well let hotels in equivalent locations
to Solihull are currently in the order of 4.75 - 5.00% NIY with good demand from institutional investors.
CGI of New Hotel
SAPPHIRE WEST
SAPPHIRE EAST F
D
E
B C
A
PEDESTRIAN
ACCESS POINT SAPPHIRE
EAST
CONSENTED HOTEL
DEVELOPMENT SITE
PROPOSED HOTEL
FOOTPRINT
HOTEL CAR PARK/
DROP OFF STREETSBROOK ROAD
MAIN SITE
ACCESS
STREETSBROOK ROAD
24 25SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT
VAT CAPITAL ALLOWANCES
The property is elected for VAT and it is proposed that the We understand that capital allowances may be available,
sale will be treated as a Transfer of a Going Concern. (TOGC). subject to negotiation.
EPC DATA ROOM
There is a data room for the property with key tenancy
The property has an EPC rating of C and a score of 71. information, title documents, EPC certificate, planning
A copy of the EPC certificate and recommendation report is information, architects plans and service charge details.
available on the Lewis Ellis website. Access to it can be obtained via the ‘Current Sales’ page on
the Lewis Ellis website: www.lewisellis.co.uk.
26 27SAPPHIRE
COURT STREETSBROOK ROAD I SOLIHULL I B91 1QT
PROPOSAL
We are instructed to seek offers, on an unconditional basis, in excess of £10,000,000
(Ten Million Pounds), subject to contract and exclusive of VAT for the freehold interest in
the subject property.
A purchase at this level equates to a low capital value of £113 per sq ft.
Alternatively, the property is held within an SPV which can be acquired by way of a company
sale, further information is available on request.
FURTHER INFORMATION
Should you require any additional information or wish to view the property please contact either:
Matthew Brown David Kos
Tel: 020 7493 3330 Tel: 020 7493 3330
Mob: 07836 724420 Mob: 07709 813267
Email: mbrown@lewisellis.co.uk Email: dkos@lewisellis.co.uk
Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set
out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract;
(2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are
given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or
representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the
employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property.
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