derby college final - gerald eve · derby college is a further education centre which was in...
TRANSCRIPT
DERBY COLLEGE - THE JOHNSON BUILDING
Locomotive Way | Pride Park | Derby DE24 8PU
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU2
INVESTMENT SUMMARY
■ The Johnson Building, part of Derby College, presents itself as a rare opportunity to acquire a modern, purpose built further education college building.
■ Located on Pride Park, a highly successful mixed used business park in Derby City Centre, home to major occupiers such as Rolls-Royce, Royal Mail and Mercedes Benz.
■ The property benefits from excellent transport links, located 0.25 miles from Derby Train Station and 8 miles from J25 of the M1.
■ Long established, Derby College consists of 4 campuses, with The Johnson Building forming part of The Roundhouse Campus.
■ Purpose-built further education facility totalling 93,190 sq ft, constructed in 2008.
■ Site area of c. 3.04 acres, which reflects a low site density of c. 47%, with c.125 car parking spaces.
■ Let to Derby College until 19 October 2029 with 11.9 years unexpired term.
■ Current passing rent of £848,558 pa (£9.11 psf) subject to a fixed uplift in October 2019 to £960,066 pa (£10.30 psf) and a further 2.5% pa compounded rental uplift in October 2024 to £1,086,229 pa (£11.66 psf).
■ The vendor will top-up the rent to the fixed uplift in 2019.
■ Offers are sought in excess of £13,330,000. A purchase at this level reflects an attractive net initial yield of 6.75%, rising to 7.64% at a fixed increase in October 2024, and a capital value of £143 psf.
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU3
1
2 34 5
6
78
9
10
12
27
28
33
34
13
1415
16
17
18 1920
32
3031
29
2122
2325
26
24
11
1. SNC Lavalin2. Resonate3. Software AG4. Seven Restaurant 5. Holiday Inn & Harvester6. Pride Veterinary Hospital 7. Chiquito 8. Seat9. VW10. Mortgage Advice Bureau 11. Geldards Law Firm12. Derwent Living
13. Miller Homes14. HSBC15. Assystem16. Chartwell17. Rayburn Tours18. Business Centre19. ISYS20. U/O David Brown 21. Pentahotel22. Derby College 23. Derby College 24. Derby College
25. Derby Station26. Royal Mail 27. Rolls-Royce28. Mercedes Benz29. David Lloyd30. Webhelp31. Store First Derby32. Network Rail33. Ford34. Derby County
Football Club
The Johnson Building
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU4
The Johnson Building is located at the Roundhouse Campus of Derby College within Pride Park. Pride Park is one of the UK’s most successful mixed use business parks. A number of offi ce, leisure, car showroom and hotel operators are also on the park such as David Lloyd, Derby County Football Club, Rolls-Royce, VW, Mercedes Benz, Holiday Inn and Harvester.
Situated just one mile from the centre of Derby and the Intu Shopping Centre, The Johnson building is perfectly located with excellent connections from the A52 and Junction 25 of the M1 motorway. It is also approximately 4 miles south east of Derby train station, which provides a direct link to Sheffi eld, Crewe, Leicester, Nottingham and London. Due to these outstanding transport links, Derby College attracts students from all over the county.
In 2016 the population of Derbyshire was estimated to be 787,000, whilst the population of Derby was estimated to be 254,374.
Of the total population of Derby, 5.4% are in the 16-19 age group band, which is a higher proportion than the average for England for this age band.
Approximate distances from the property
Derby - Demographics
Situated at the heart of Pride Park, The Johnson Building is perfectly positioned to attract those wanting to further their education.
Dartford
Bognor RegisPortsmouth
Chichester
Brighton
Colchester
Ipswich
Cambridge
BishopStortford
Bedford
Northampton
MiltonKeynes
Oxford
Bury St Edmunds
Sudbury
Buckingham
Stevenage
RoyalLeamington
Spa
Winchester
Andover
Newbury
BasingstokeWoking Sutton
Horsham
Maidenhead
HighWycombe
Slough
St.Albans
Sevenoaks
RoyalTunbridge Wells
Eastbourne
Godalming
Swindon
Stratford-upon-Avon
Cirencester
Chippenham
Bath
Salisbury
Bournemouth
Southampton
Weymouth
Shaftsbury
Marlborough
Cheltenham
Gloucester
GuildfordFarnborough
Crawley
Croydon
Bromley
EnfieldWatford
Maidstone
Gatwick
Heathrow
Chelmsford
Stanstead
Aylesbury
Reading
Yeovil
Taunton
Exeter
Torquay
PlymouthNewquay
Barnstaple
Western-Super-Mare
Newport
Swansea
Llanelli
Aberystwyth
Hereford
Monmouth
Worcester
Kidderminster
Shrewsbury
Redditch
WolverhamptonNuneaton
Peterborough
STOKE-ON-TRENT NEWARK-ON-TRENT
LINCOLNChesterfieldChester
Colwyn Bay
OldhamBolton
Blackburn
Southport
Blackpool
Preston
Wigan
Stockport
Huddersfield
Halifax
Grimsby
ScunthorpeDoncaster
Rotherham
Barnsley
Hull
YorkHarrogate
Scarborough
Morecambe
MiddlesbroughDarlington
Carlisle
Dumfries
Durham
Sunderland
Kilmarnock
East Kilbride
Livingston
Greenock
St. Andrews
Dunfermline
Stirling
PerthDundee
Wokingham Bracknell
Poole
Warminster
Southend-on-Sea
Norwich
Bradford
Felixstowe
Carrickfergus
Bangor
Newtonards
ComberLisburn
Lurgan
Ballymena
Sittingbourne
Abingdon
Runcorn
Knowsley
CREWE
Cumbernauld
Yardley
Rugby
Whetstone
Isle ofMann
M40
M1
M4
M3
M23
A1MM11
M25
M25
M25
M25
M26
M2
M4
M4
M3
M5
M5
M5
M5
M5
M5
M4
M4M48
M50
M40
M42
M42
M6
M6
M54
M6
M1
M1
M1
M1M6
M6
M6
M6
A74M
A74M
M53
M56
M57
M55
M60
M61
M55
M62
M62
M66
M62M62
M62
M18
M18
M18
M180
A1M
A1M
A1M
A1M
A1M
M74
M74
M8
M77
M80
M8
M9
M9
M90
M1
M1
E01
E01
M3
M3
M2
E01
N7
E20
M9
M9
E01
E01
M7
M8
E201
M6
M3
M3
M3
M58
M8
M73M80
M69
M6TOLL
A34
A34
A420
A40A418
A346
A34
A429
A338
A303
A37
A354
A361
A350
A37
A35
A31
A35
A303
A37
A361
A38
A361
A377A386A39
A30
A30
A386
A38
A39A30
A390
A31
A272
A27
A21A272 A259
A229
A2070
A28 A2
A28
A2
A21
A3
A24
A130
A127
A12A413
A41
A414
A120
A10
A10
A5
A1
A131
A43
A429
A44
A419
A48
A424
A465
A49
A456
A44
A449
A465
A438
A470
A470
A470
A487
A44
A40
A40
A483
A26
A22
A36A350
A30
A358
A417
A429
A46
A433
A303
A487
A487
A44A470
A470 A483
A483
A458
A494
A5
A470
A458
A41
A495
A494
A5
A470
A487
A55A55
A53
A53
A495A483
A50
A52
A515
A449
A442
A606
A15
A1
A423
A34
A141
A14
A38
A11A6
A47
A148
A1065
A1065
A1065
A134
A140
A141
A134
A143
A12
A17
A14
A14
A14
A428A6
A45
A605
A43
A16
A52A52
A17
A158
A16
A46A6A38
A444
A511
A515
A523
A34A46
A46
A16A156
A614
A631
A1
A61A6
A60
A623
A628
A523
A34
A15
A47
A458
A15
A614
A19
A59 A166
A64A19
A170
A565
A666A6033
A59
A65 A61
A19
A165A1079
A171
A66
A595
A591
A6
A69
A68
A68
A595A596
A68
A696
A1
A189
A697
A697
A1
A1
A68
A701
A702
A702
A721
A7
A75
A76
A701
A75
A75
A77
A70
A76
A71
A737
A78
A811A82
A84
A85
A85
A9
A91
A915
A91
A92A915
A92
A82
A85
A816
A83
A9
A90
A90
A72
A66
A698
A66
A66
A66
A685
A41
A49
A5
A483
A12
A12
A133
A140
A140
A146
A47
A646
A83
A985
A71
A7
A7
A1
A607
A26
A26
A7
A24
A2
A36
A8
A52
A1
A27
A28
A29
A44
A29
A505
A6
A5
N2
A4
A4A32
N15A5
A2
N13
N56
N54
A3N16
A509
N87
N3
N55
N2
N51
N52
N4
N55
N5
N63
A75
N80N52
N62 N7
N81
N81
N62
N76
N77N78 N80
N30
N25
E01
N24
N25
N25
N24
A775
J9
J13
J8
J15
Pontypridd
BIRMINGHAM
NOTTINGHAM
SHEFFIELD
LEEDS
LIVERPOOL
NEWCASTLEUPON TYNE
GLASGOW
EDINBURGH
CARDIFFBRISTOL
DUBLIN
BELFAST
LEICESTER
MANCHESTER
BIRMINGHAM
NOTTINGHAM
SHEFFIELD
LEEDS
LIVERPOOL
NEWCASTLEUPON TYNE
GLASGOW
EDINBURGH
CARDIFFBRISTOL
DUBLIN
BELFAST
LEICESTER
MANCHESTER
A406
Loughborough
Folkstone
Epsom
Dorchester
COVENTRYCOVENTRY
DERBY
Widnes
Wrexham
STAFFORDSTAFFORD
DERBY
CREWE
STOKE-ON-TRENT
LINCOLN
NEWARK-ON-TRENT
M27
A601
A5194
A514
A6
A6
Derby Station
The Johnson Building
Pride Park
A52
DERBY
RIVER DERWENT
LOCATION
Derby Train Station 0.25 miles
Derby City Centre 1 mile
M1, J25 8 miles
Nottingham City Centre 16 miles
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU5
SITE PLAN
The Johnson Building is a purpose built, further education facility which totals 93,190 sq ft, constructed in 2008.
The building houses a variety of accommodation and facilities which are primarily focussed around vocational training in sport, motor vehicle repairs and construction.
The ground floor includes a large sports hall, gym, dance studio, reprographics room, canteen, two large mechanic workshop facilities, a smaller mechanic garage (open to the public), and a construction workshop. Each of these elements has its own roller-shutter door providing flexibility of use. The first floor offers classrooms, a large IT suite and exam room.
At the front of the building is a large two-storey office block providing a large reception area, kitchen, canteen and board rooms at ground floor, with a large open plan office and further smaller offices at first floor level.
Externally, The Johnson Building has secure car parking areas to the front, side and rear with c. 125 spaces.
*Indicative purposes only
DESCRIPTION
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU6
ACCOMMODATIONThe building contains a variety of accommodation types.
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU7
TENURE
TENANCY SUB-TENANCY
The property is held freehold.
The property is let to Derby College until 19 Oct 2029, currently at a passing rent of £848,558 pa (£9.11 psf) subject to five-yearly fixed rental uplifts equivalent to 2.5% pa compounded. The next rental uplift is 20 Oct 2019 where the rent reaches £960,066 pa (£10.30 psf) with the final uplift in October 2024 reaching £1,086,229 pa (11.66 psf).
The vendor will top-up the rent to £960,066 pa.
DHU 111 (East Midlands) CIC have sub-let approximately 27,674 sq ft of The Johnson Building. Let on a term of seven years from 24 May 2017 until 23 May 2024 with a break on 23 May 2022. Rent of £217,688 pa (£7.87 psf) with a rent review on 20 October 2019 from which a fixed rental uplift equivalent to 2.5% pa compounded will apply.
A service charge is payable. The base service charge is currently £25,333 pa uplifted annually in line with increases in the General Building Cost Index.
DHU 111 provides NHS 111 and Out-of-Hours call centre and medical services for Derbyshire, Nottinghamshire, Leicestershire, Rutland and Lincolnshire.
Let for a further 11.9 years with guaranteed fixed rental uplifts in October 2019 and October 2024.
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU8
DERBY COLLEGE
Derby College is a further education centre which was in established in the 1960s. The Johnson Building principally provides for Derby College mechanics and engineering courses, but also leisure, sports, construction and general learning for approximately 600 full time students. There is close collaboration with surrounding workplaces within Pride Park to offer hands-on experience for the courses which Derby College provide such as at Rolls-Royce and Ford. The college is a member of the prestigious Collab Group of high-performing further-education institutions.
The College is judged as “Good” by Ofsted in all curriculum areas. Its engagement with employers is recognised as outstanding by Ofsted in their inspection report and in the Chief Inspector’s Annual Report published in December 2016.
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU9
FUNDING & COVENANT
Derby College operates as a further education college and therefore places considerable reliance on continued government funding. From an income perspective, 77% of the college’s revenue is public funding primarily through the Education Funding Agency (Department for Education) and Skills Funding Agency (Department for Business Innovation & Skills). In reference to fi nancial statements for year ending 31 July 2016, Derby College’s total income for the year was £48,159,000 and total expenditure £51,533,000.
The College is required to complete the annual Finance Record for the Skills Funding Agency and for 2016 the College is deemed to be “Satisfactory” in regards to fi nancial health.
Funding is calculated using a specifi c formula which is driven by student recruitment and includes factors which refl ect student retention, higher cost subjects, disadvantaged students and area costs.
The Further Education sector is currently undergoing change, largely prompted by the obligation for all children to undertake education until 18, formerly 16. The Government is therefore focusing on the Technical and Further Education Bill. 2017 is set to be a hugely signifi cant year for Apprenticeships and Skills as the Apprenticeship Levy comes into force and £2.5 billion is invested in apprenticeships by 2019-20.
DHU 111 provides the NHS 111 and Out-of-Hours services for Derbyshire, Nottinghamshire, Northamptonshire, Leicestershire, Leicester, Rutland and Lincolnshire. It is a ‘not-for-profi t’ organisation. DHU 111 is consolidating from several other offi ces around the East Midlands into this facility, which will become its main call centre operation. Approximately 150 staff are due to move in to the offi ce in the coming months in a phased manner.
DHU 111 (East Midlands) CIC was incorporated in 2016 as a subsidiary of DHU Health Care CIC, to support East Midlands NHS 111 calls. The company’s single largest contract was successfully retendered and awarded for a fi ve year term with the possibility of a further two year extension to 30 September 2023. The contract commenced on 27 September 2016.
DHU 111 (East Midlands) CIC - Sub-Tenant of Part
Derby College - Tenant
DERBY COLLEGE - THE JOHNSON BUILDING | LOCOMOTIVE WAY | PRIDE PARK | DERBY | DE24 8PU10
EPCThe property is rated C55. Further information available on request.
CAPITAL ALLOWANCESFurther information available on request.
VAT The property has been elected for VAT. It is proposed that the sale will be treated as a Transfer Of a Going Concern (TOGC).
For further information or to arrange an inspection, please contact:
John Rodgers
Richard Lines
T: 020 3486 3467M: 07810 307422 [email protected]
T: 020 7333 6274M: 07801 625680 [email protected]
Nick Ogden
Joanna Ireland
T: 020 3486 3469M: 07825 [email protected]
T: 020 3486 3485M: 07464 [email protected]
CONTACT
PROPOSALOffers are sought in excess of £13,330,000. A purchase at this level reflects an attractive net initial yield of 6.75%, rising to 7.64% at fixed uplift in October 2024, and low capital value of £143 psf. Purchasers costs are assumed to be 6.72%.
Conditions under which these particulars are issued: All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:- 1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract. 2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors. 3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property. This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve’s liability which cannot be excluded or limited by law. Particulars issued November 2017.