Bristol is the 5th largest conurbation in the UK and the capital of the South West. It has an estimated population of 463,400, which is expected to increase by 95,100 (21%) by 2041, this is significantly higher than the national average of 12%.
The larger urban area population is estimated to be 1.6 million and is amongst the most attractive, successful and culturally prestigious cities in the UK,
enjoying a rising profile within Europe and beyond.
Bristol has a relatively young population profile with the median age of people living in Bristol standing at 32.5 years compared to 40 years in England and Wales. Bristol has a higher percentage (54%) than the UK average (51%) in socio economic groupings of higher, intermediate and supervisory managerial, administrative and professional groups. Moreover, Bristol has a highly educated population with 49% having obtained a degree against a national average of 38%.
The property is held long leasehold under title number BL91560 from The Trustees of St Mary Redcliffe Church Lands Charity for 150 years from 6th February 2006, at a passing rent of £182,500 per annum.
The rent is reviewed 5 yearly to 5% of the then rack rent of the property or the rent payable immediately before the relevant review date, whichever the higher. The February 2016 rent review has not been instigated by the landlord and we do not believe there is evidence to substantiate an increase.
The property is let in accordance with the Tenancy Schedule found within the link below, which produces a gross income of £4,074,392 per annum and net current income receivable of £3,891,892 per annum. The rental reflects a very low average rent for the offices of £25.19 per sq ft.
All leases are drawn on effective full repairing and insuring terms via a service charge contribution.
A schedule of Accommodation and Tenancies can be found within the link.
The main tenants are DAC Beachcroft, Smith & Williamson, AECOM, Tilney and OPUS providing a Weighted Average Unexpired Lease Term of 5 years to expiry and 4.5 years to break.
DAC Beachcroft and 25 Moorgate Ltd (Smith & Williamson) account for circa 75% of the current contracted income and have approximately 4.9 years unexpired. 85% of the income is also derived from covenants with a Dun and Bradstreet rating of 5A1, representing a minimum risk of business failure.
Further information can be found within the marketing particulars.
The property is elected for VAT purposes and therefore it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in excess of £66,300,000 (Sixty-Six Million, Three Hundred Thousand Pounds), subject to contract and exclusive of VAT for our client's interest.
A purchase at this level would reflect an overall net initial yield of 5.50%, assuming standard purchaser's costs of 6.78%. This reflects a low capital value of £409 per sq ft.