Summary
Rare opportunity to acquire a headquarters office building with in excess of 10 years unexpired without break
Location
Strategically located in the centre of the Greater Birmingham conurbation, directly adjacent to Junction 2 of the M5 Motorway, providing unparalleled access to the nearby M6 and M42 Motorways, and the national motorway network.
Investment Summary
• Swallowfield One comprises a modern four storey Headquarters office building with impressive central feature atrium, constructed in 2003, providing a total net internal floor area of 10,283.20 sq m (110,686 sq ft). 734 car parking spaces provide an unrivalled car parking ratio of 1:151 sq ft
• Fully let to Automobile Association Developments Ltd, with guarantee from AA Plc, a FTSE 250 listed company, with lease expiry in 23 June 2028. This provides an attractive unexpired lease term in excess of 10 years
• Current passing rent of £1,662,785 per annum, which reflects a very low and rebased overall rent of £14.56 per sq ft. Set against the current prime rent in the Greater Birmingham Out of Town markets of £23.00 per sq ft, this provides excellent prospects for future growth
• Freehold
The AA have recently affirmed their commitment to Swallowfield One through a lease renewal on the whole property, taking a coterminous lease over additional parking spaces, and undertaking a refurbishment programme to upgrade the property
Proposal
We are instructed to seek offers in excess of £23,075,000 subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive Net Initial Yield of 6.75% and a low capital value of £208 per sq ft, assuming standard purchaser costs.