Newcastle-under-Lyme is located in north Staffordshire, 2.5 miles west of Stoke-on-Trent and midway between the major commercial centres of Birmingham and Manchester (circa 40 miles from both). The town forms a single urban area with Stoke-on-Trent, the North Staffordshire conurbation, which has a population of approximately 372,000 people and is the major centre for the area.
Newcastle-under-Lyme benefits from excellent road links, being located adjacent to the M6 motorway, between Junctions 15 and 16, which are accessed via the A500. The A34 provides an alternate north-south route to the M6, giving access to Birmingham to the south and to Manchester to the north. The A50 (M1-M6 link road), is the main east-west route, giving access to the M1 (Junction 24A) circa 55 miles to the east.
Stoke-on-Trent Railway Station provides regular direct rail services to London Euston (1 hour 45 minutes), Manchester Piccadilly (40 minutes) and Birmingham New Street (50 minutes).
The town is easily accessible from Manchester Airport (circa 30 miles to the north), Birmingham Airport (circa 50 miles to the south) and East Midlands Airport (circa 40 miles to the east).
Brampton House provides a modern detached office building constructed in the 1990s, arranged over ground and first floor totalling approximately 14,370 sq ft.
Internally, the specification includes carpeted floors, suspended ceilings, double glazed windows, air conditioning, two passenger lifts and two central staircases. The accommodation is predominantly arranged as open plan.
The property was subject to extensive internal refurbishment in 2007 to modernise the office accommodation and is used as a European operation call centre for Natwest/RBS. Approximately 100 employees work from the building on a daily basis and we understand that a number of employees are being recruited to this site in the short term.
The property sits in a secure site with 24/7 surveillance and offers generous parking provision with 96 parking spaces, providing an excellent ratio of 1:150 sq ft.
The property is wholly let to National Westminster Bank Plc until 17 December 2037, therefore providing in excess of 19 years unexpired.
The rent is reviewed on an annual basis on 25 December each year, linked to the UK's Retail Price Index (RPI) in the preceding October, subject to a cap of 3%.
The current passing rent of £179,770.50pa reflects a low passing rent of £12.51 per sq ft overall.
National Westminster Bank Plc is the retail and business banking arm of The Royal Bank of Scotland Group Plc. In February 2018, the Group reported significant results with an annual profit of £752m for 2017 and its financial strength is a reflection of the UK Government's majority ownership and control of the business, which stands at 62% (June 2018).
National Westminster Bank Plc reported a sales turnover of £7.975bn in its 2016 accounts and is rated as investment grade as follows:
Standard & Poors: Long Term Debt - A-, Outlook - Positive
Fitch: - Long Term Debt - A-, Outlook - Positive
National Westminster Bank Plc has a Dun & Bradstreet rating of 5A 1 (June 2018), representing a net worth of £15.096 billion and a minimum risk of business failure.
As part of the restructuring process by the Group to split its various subsidiaries into ring-fenced and nonring-fenced activities (a legal requirement by 1 January 2019), National Westminster Bank Plc will sit inside the ring-fencing requirements. For further information please review https://investors.rbs.com/fixed-incomeinvestors/credit-ratings.aspx.
We understand that the property has not been elected for VAT.
Offers are sought in excess of £3,070,000 (Three Million and Seventy Thousand Pounds) for our client's freehold interest, subject to contract and exclusive of VAT.
A purchase at this level would reflect an attractive net initial yield of 5.50%, assuming purchaser's costs of 6.46%, and a low capital value of £214 per sq ft.
Based on Oxford Economics' 5 year RPI forecast, at the quoting price this would provide the following running yield profile: