The British Airways facility is located within the Cardiff Capital
Region, one of the UK's fastest growing commercial locations,
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
business, commercial, economic, government and administrative
centre for Wales.
Key drivers of the region's success include:
The facility comprises a complex of three buildings with associated car parking and additional land suitable for future expansion. The buildings were constructed in 1993 and are of steel frame 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.
The specification of the buildings includes:
The property is held on a long leasehold basis for a term of 999 years from 30th July 2004 at a ground rent of £100 per annum without review.
The property is held on four co-terminus leases expiring on 24th March 2024 at a current rent of £987,000 per annum. The tenant has signed reversionary leases effective from 25th March 2019, at 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.
The leases are currently held under the name of British Airways Avionic Engineering Ltd by way of an assignment from British Airways Plc in 1996.
British Airways uses the facility to provide its UK one-stop solution for the repair and maintenance of a broad range of electrical, electronic and electro-mechanical aircraft components, employing some 250 people.
British Airways also undertakes repairs and maintenance for other airline operators from this facility including Airbus, Thales, Euro Air Transport, Thomson Airways, Air Europa, Air France, Aero Flot and Honeywell.
British Airways Avionic Engineering provides highly skilled and specialised aircraft electrical, electronic and mechanical component maintenance services to both British Airways and other airlines. Their South Wales maintenance facility at Llantrisant provides avionic solutions to electronical, electronic and mechanical components through the use of new diagnostics and reliable technologies for a range of Boeing and Airbus aircraft for multiple airline carriers including British Airways. Examples of the type of services provided include in-flight technology, radio and radar and lighting. The services provided at the facility support the continuous improvement and product development to enhance future aircraft capabilities.
British Airways Engineering is the aircraft maintenance subsidiary of British Airways which provides support services to British Airways and other airlines. It is responsible for the entire BA Boeing 747-400 fleet maintenance, cabin interior conversions and general ramp maintenance work for both their own fleet and other airlines.
British Airways Engineering's UK bases have a strong Welsh focus, and are as follows:
We understand that the property is elected for VAT and therefore VAT will be payable on the purchase price.
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 and exclusive of VAT).