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OXFORD BUSINESS CENTREOXFORD, OX1 1TB
A rare opportunity to secure an income producing freehold investment property with development potential in central Oxford, forming part of the land allocated for mixed
use redevelopment under the adopted Oxpens Masterplan SPD.
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CENTRAL BUS STATION
OXFORD RAIL STATION CAR PARK
WESTGATE CENTRE
ICE RINK
OXFORD CHERWELL VALLEY COLLEGE
CARFAX
OXFORD BUSINESS CENTRE
OXFORD, OX1 1TB
1 / 91. christ church
2. worcester
3. nuffield
4. st peters
5. radcliffe camera
6. hertford
7. queens
8. st edmund hall
9. magdalen
10. all souls
11. ashmolean museum
12. st johns
13. keble
14. balliol
15. jesus
16. exeter
17. pembroke
key to nearby oxford university colleges
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Summary X An extremely rare opportunity to secure a freehold site
of scale in close proximity to central Oxford and its retail and transport links.
X The site extends to c1.66 acres and forms an integral part of the adopted Oxpens SPD Masterplan.
X The Masterplan zones the site for potentially 5 floors of student accommodation or alternative uses as part of a comprehensive redevelopment of the wider Oxpens site.
X The property comprises 26,941 sq ft (Gross Internal Area) of modern commercial accommodation let to a variety of tenants, generating an annual rent roll of £260,558.
X All leases expire or contain mutual breaks before the end of 2017.
X Oxford has nearly 32,000 full time university students with a significant amount more studying at the numerous respected language schools.
X The University of Oxford was ranked 1st in the UK and joint 2nd in the world in the Times Higher Education supplement’s World University Rankings 2013-2014. It is also repeatedly ranked in the top ten of universities worldwide.
X The University of Oxford is ranked 1st and Oxford Brookes University is ranked 49th in the UK by The Times and Sunday Times Guide (2015).
X The vendors are seeking offers for the freehold, on an unconditional basis.
Christ Church College
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BUS STATION
OXFORD BROOKES UNIVERSITY
locationOxford mainline train station is 0.3 miles from the site and provides direct services to London every 8-14 minutes and direct services to Reading, Didcot, Worcester and Hereford.
The site is well located for local amenities in Oxford City Centre, with nearby leisure facilities, parks and access to superstores and high street
SitE Plan
CRESCENT
GIBBS
SL
MP 63.25
SL
El Sub Sta
El Sub Sta
Osney Cemetery The Oxford Business C
entre
47
1012
16
1
2
3
4
5
6
7
8
9
Sorting Office
4449
42 45
12
40
19
15
14
Filling
Kings Mead House
17
57.3mFoot Bridge OSNEY LANE
SLSL
WB
1 to 6
Richard GrayCourt
13 to 18
7 to 12retail. Public and Brookes Bus links in the area provide direct routes to the main Oxford Brookes campus, Headington, Wheatley and the city centre.
The nearest Oxford University colleges can be found 0.3miles from the site at Nuffield and Pembroke Colleges. The site is within 2.4 miles of Oxford Brookes University. The site is 0.4miles
from the Westgate Shopping Centre. Gloucester Green Bus Station is 0.6 miles which also serves the Oxford Tube which runs bus services to central London every 12-15 minutes.
location maP
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oPPortunityThe Oxford Business Centre is located in the centre of one of the world’s most famous cities, Oxford. The proposals set out in the Oxpens Masterplan zone the Oxford Business Centre for up to 5 floors of student accommodation and refers to c10,600 sqm of student cluster bed spaces being provided on the wider site. Other uses including residential, retail / leisure, employment (e.g. office, research and development) or a hotel may be permissible.
The plan to the left sets out how the site fits in context with the Oxpens SPD. The key land owners within the Oxpens site include Oxford City Council, London and Continental Railways (LCR), Royal Mail, Oxford Citizens Housing Association and Sinclair Dalapa. The Oxpens site is bounded by distinct edges; Oxpens Road to the east, Osney Lane to the north, the railway line to the west and water courses to the south.
dEScriPtionThe property comprises two terraces of well specified light industrial units of varying sizes. The property was built in the mid 1980’s and is of steel portal frame construction with profile metal clad elevations. A number of the units have been adapted under licence to meet specific occupier demands. Each unit benefits from:
• A roller shutter door;
• Generous forecourt loading and parking;
• Integral offices.
Oxpens Master PlanSPD Site Boundary
Land OwnershipBoundaries (Informedby Land Registryplans)
Fields in Trust (FIT)Boundary
Oxford City CouncilIncluding FIT Area3.52 Ha8.7 Acres
British RailBoard (Residuary)(BRBR)3.21 Ha7.93 Acres
Oxford BusinessCentre - OtherOwnership0.29 Ha0.72 Acres
Oxford BusinessCentre - MiltonProperty Investments Ltd0.66 Ha1.63 Acres
Royal Mail0.45 Ha1.1 Acres
Oxford CitizensHousing Association0.12 Ha0.3 Acres
Sinclair Dalapa(Esso)0.09 Ha0.22 Acres
View north along the site
oXPEnS maStErPlan SPd land ownErShiP
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currEnt tEnantS / incomEIt is expected that full Vacant Possession of all the units could be secured by December 2017, subject to securing planning permission for redevelopment so that leases which fall inside the act can be terminated. The site will be sold with the benefit of the existing income stream.
unit tenantAreas (G.I.A) sq ft
lease expiry date
rent p.aoption to break
break datenotice period
1954 act
1 Avis Budget UK Limited 2,915 30/05/2023 £36,000 Mutual25/12/2017 (Rolling)
12 months Outside
2 Macintyre Care 1,586 08/08/2016 £17,500 Inside
3 John E Wight & Co Ltd 2,771 24/12/2020 £18,500 Mutual25/12/2017 (Rolling)
12 months Outside
4 Gigastream Plc 5,752 18/10/2017 £47,430 Inside
5The Oxfordshire County Council
5,151 01/04/2022 £51,510 Mutual02/04/2017 (Rolling)
6 months tenant, 12 months Landlord
Outside
6 Adlens Limited 2,149 24/12/2017 £23,500 Tenant 15/05/2016 6 months Outside
7The Oxfordshire County Council
2,116 01/04/2022 £22,218 Mutual02/04/2017 (Rolling)
6 months tenant, 12 months Landlord
Outside
8 Adlens Limited 2,113 24/12/2017 £23,500 Tenant 15/05/2016 6 months Outside
9 A.V.C Motors Ltd 2,388 20/06/2023 £20,400 Mutual25/12/2017 (Rolling)
12 months Outside
total 26,941 £260,558
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The sale site falls within a larger site known as Oxpens; a masterplan SPD setting out how the site could be redeveloped was adopted by Oxford City Council in 2013 click here.
The overarching development plan document covering the Oxford City Local Planning Authority is the Oxford Core Strategy 2026 click here, which promotes sustainable development of brownfield land.
The West End Area Action Plan, adopted in 2008, sets out key planning policies for the West End of Oxford, including the Oxpens site click here.
A number of other policies relating to affordable housing, Community Infrastructure Levy, housing mix sustainability and design may apply to development of the site.
A Feasibility Study prepared by Aros Architects which considered the capacity of the site proposed circa 495 bed spaces of student accommodation if the sale site were to be developed as part of a wider regeneration scheme, or circa 370 bed spaces of student accommodation if the site were developed in isolation, a copy of the study is available to interested parties. If you would like to discuss the study with Aros, speak to Simon Coles [email protected] / 0207 928 2444.
Please see the Planning Note provided by Savills and collated policy documents within the supporting data room. All interested parties should make their own enquiries with regard to any future development with the local authorities. If you require any advice from Savills Oxford Planning Team, please speak to Roger Smith [email protected] / 01865 269 057.
Site Analysis
N
1st – 4th Floor PlanPlanning
Source: Aros Architects - Subject to planning
indicativE SKEtch Plan
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OXFORD major dEvEloPmEntS and rEgEnErationOxford has seen significant inward public and private investment in recent years, with modern development and improvements complimenting the historic core of the city. Further projects include:
X The Westgate Centre – Redevelopment of this important 14 acre site on the western edge of the city centre is set to commence imminently, following grant of planning permission for circa 100 shops with John lewis secured as an anchor tenant, 120 homes, a cinema and extensive leisure offer.
X Barton Park – initial infrastructure work lead by a joint venture between Grosvenor Developments and Oxford City Council is expected to begin in 2015, unlocking this 900 dwelling development on the north eastern edge of the city; with high eco standards and exemplar community facilities, including a linear park, primary school and retail hub, the scheme will set the benchmark for new development within the area.
X Northern Gateway – A draft Area Action Plan providing a development framework for this important mixed use site on the northern fringe of Oxford proposes 90,000 sq m of commercial space focussed on the research and development sector, plus 500 new homes.
X Oxford Rail Station – A recently adopted masterplan for the Oxford Train Station and surrounding area promotes circa £75m of works including improved platform arrangements and station facilities, and commercial and residential development, aimed at delivering a transport hub worthy of the world famous City of Oxford.
X Frideswide Square - £5m of works will begin Autumn 2014, reducing congestion and providing improved public realm.
X Water Eaton Parkway Station – a new Parkway Station is planned to open in Summer 2015, adjacent to the existing Water Eaton Park and Ride to the north of the city, complimenting improvements to the existing Oxford Rail Station.
“The UniversiTy of oxford is ranked 1sT in The Uk and 5Th in The World”
OXFORD rESidEntial marKEtRecent research undertaken by Savills confirms that Oxford house prices have out performed the regional and national averages, driven by continued demand from occupiers and investors attracted by top schools, strong local employment and a high standard of living.
Historic low levels of supply of new build housing are set to increase over the short to mid term, driven by large scale schemes such as Barton Park and the Northern Gateway – however the recent Oxfordshire Strategic Housing Market Assessment, undertaken by all five Oxfordshire district and city councils indicates that demand will continue to outstrip supply.
Research as well as information regarding key new homes sales comparables is available within the data room.
OXFORD commErcial marKEtRecent research undertaken by Savills cites increasing confidence in both office and industrial sectors in Oxford, with a bias in the industrial market towards smaller units under 20,000 sq ft. In general rents are rising and incentives falling, with a corresponding drop in yields being achieved on freehold sales.
Research as well as information regarding key commercial lettings and sales is available within the data room.
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national StudEnt accommodation marKEtThe student accommodation investment market has been characterised by a positive level of transactional volumes and a low volatility in rental and yield over the last 7 to 10 years. Although certainly not immune to the economic downturn, it has proved to be a resilient asset class and has demonstrated counter-cyclical characteristics in comparison to wider property market movements.
The volume of deals in the student sector has been high, suggesting that investors have continued to see value in the sector when compared to other asset classes. Over the last 4 years we have seen the following level of transactions based on gross assets sold:
X 2011 circa £1.5 billion
X 2012 over £2.6 billion
X 2013 circa £2.8 billion
X 2014 circa £1.4 billion to date (Sept 2014)
The main driver for the strong performance of the sector is the structural supply/demand imbalance prevalent in the UK in terms of purpose built student accommodation. Aside from these supply/demand characteristics, other factors supporting investment, particularly when compared with other residential investment asset classes, include the potential to secure commercially-driven income streams with annual rent reviews, rental growth and an inherently lower risk profile as a result of the ‘granular’ nature of the income/tenant profile.
Improved debt availability and greater lender choice for those investors with a good track record has encouraged more development funding and trading of assets, in turn evidencing more confidence within the sector. The market has witnessed increased activity from institutional investors such as M&G and LaSalle Investment Management as they move away from traditional long-hold investments towards direct let assets providing prospects for income control at a granular level. Insurance companies have
also emerged as lenders, with the likes of L&G, M&G, and AIG all lending into the sector for long term money.
The autumn of 2012 saw the “perfect storm” with the introduction of higher tuition fees, a drop in A-level grades, UKBA issues and the impact of AAB caps on student numbers. As a result there were university and private operators who experienced an increase in voids in their accommodation portfolios.
Since then, take up of university places has steadily improved year on year with a number of operators with portfolios of 5,000+beds have indicated that occupancy rates are stronger than for 2014/2015 than they were for 2013/2014.
Oxford Brookes
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StudEnt accommodation marKEt in oXfordOxford Brookes University is ranked 49th in the sector by The Times Good University Guide 2015 and had 7.4 applicants per place. Oxford Brookes University has a total of 13,070 full time Higher Education students registered. Of the total student intake, 11,295 (86%) are full time undergraduates and 1,775(14%) are postgraduates. Of the University’s full time intake, 3,230 of its students (25%) are from EU / overseas (HESA 2012/13).
Oxford Brookes is one of the UK’s leading modern universities and enjoys an international reputation for teaching excellence and innovation as well as strong links with business and industry. The demand for places following fee increases barely dropped in 2012 and continues to have more than 7 applicants per place. Planned campus developments on Headington, Wheatley and Harcourt Hill over the next few years will involve £132 million being invested in new libraries and teaching space.
languagE SchoolS in oXford Within Oxford there is a particularly high number of international language students who study on a short and long term basis and may require accommodation. There are in the region of 30 language colleges in Oxford catering for overseas students. The students tend to reside in either Halls of Residence, Homestays or in HMO style accommodation.
The prominent language schools Include:
X Kaplan International Language School
X Bellerbys
X Kings College Oxford
X EF International Language School
X OISE
X St. Clare’s
X Regent
X Oxford International Study Centre
X British Study Centres
X College of International Education
X Lake School of English
The University of Oxford is ranked 1st in the sector by The Times Good University Guide 2015 and has 5.5 applicants per place. It has a total student intake of 25,670, of which 18,830 (73%) are full time. There are 11,525 (61%) full-time undergraduates and 7,305 full-time (39%) postgraduates. There are 7,015 (28%) international students.
Oxford is the oldest and probably the most famous university in the English-speaking world. The introduction of £9,000 fees had predictably little impact on the demand for places. There are 30 undergraduate colleges.
Oxford’s biggest capital development for more than a century will provide more student accommodation for neighbouring Somerville College, a new Mathematical Institute building and a new building for the humanities. Among the many current projects is an £11m Middle East Centre, due to open in 2014.
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dirEct lEt StudEnt accommodation comParablES
TENURE SCHEME NAME OPERATOR ROOM TYPEWEEKLY
TERM LENGTH
WEEKLY RENT 14/15
Direct Let Alice House The Student Housing Company Studio 51 £220.00
Direct Let Cheney UPP / Oxford Brookes University Single En-Suite 50 £132.18
Nominations Agreement Dorset House CRM
Single En-suite 42 £156.00
Studio 50 £181.50
Standard Studio 50 £190.00
Large Studio 50 £195.00
Nominations Agreement Slade Park CRMSingle En-Suite 42 £145.00
Studio 50 £173.50
Nominations Agreement Sinnet Court Dominion Housing Group Single En-Suite 50 £117.91
Direct Let 4-6 Cambridge Terrace Mansion
Medium Double En-suite Studio (Classic)
51 £175.00
Medium Double En-suite Studio (Mansion)
51 £210.00
Medium Double En-suite Studio (Premium)
51 £221.00
Large Double En-suite Studio (2 bed flat)
51 £201.00
Direct Let Mansion Mews Mansion Classic 4-6 bed En-Suite 34 £175.00
Premium Studio 34 £215.00
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oXford StudEnt marKEt StatiSticS X University bedspaces – circa 16,098
X Private accommodation bedspaces – circa 1,415
X Development pipeline – 885(Sept 2014)
X Total existing accommodation – circa 17,513
X Total existing accommodation + development pipeline – 18,398
X Current Supply vs. Demand – 17,468 / 31,900 (OBU) = 54%
X Supply vs. Demand (incl. pipeline) –18,398 / 31,900(OBU) = 57%
X Students Not Housed in Purpose Built Accommodation (incl. pipeline) – circa 14,432
0
10000
20000
30000
40000
50000
STUDENT ACCOMMODATION PROvISION (PBSH) FOR FULL TIME STUDENTS
PROPORTION OF STUDENTS AT HOME/IN HMO’S OR IN PBSH
PBSH Full Time Student Numbers
University of Oxford University ProvisionOxford Brookes University
University & Private Sector
Total Total Inc Development Pipeline
0
3000
6000
9000
12000
15000
PBSH (No Beds) Students in HMO’s / At home
Source: HESA & Savills Research
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tEnurE The site is held Freehold.
diSPoSal mEthod Our clients have instructed us to sell the scheme through an informal tender process. A date for offers will be set and interested parties will be notified accordingly. Please note that our client is not obligated to accept the highest or any other offer. Offers should include the following information:
1. Purchase price.
2. Identity of the purchaser - please state track record with any supporting information.
3. Solicitor’s details.
4. Finance details (if applicable) or proof of funds
5. Extent of due diligence undertaken to date and further due diligence required prior to purchase.
6. Proposed timetable for exchange/completion.
7. Details of Board or any other approvals that may be required.
8. Any other matters to which the offer is subject.
SuPPorting dataroom informationA dataroom including relevant planning, legal and technical information is available and managed by the vendor’s appointed solicitor, ASB Law. Access can be secured via Savills, please contact us for details.
viEwingSviewings are to be arranged strictly through Savills. The site can be viewed externally but please be aware that parking on site is managed by permit, and permission should be sought prior to visiting. Accompanied viewings will be offered during the marketing period, please contact us to reserve a viewing slot.
vatThe property is elected for vAT. It is anticipated that the sale will be treated as a TOGC.
Important Notice
Savills, their clients and any joint agents give notice that:
1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Rents quoted in these particulars may be subject to VAT in addition.
October 2014
contactSLizzie Whetman MRICSSavills Student Accommodation Team 0207 016 3863 / 07807 999 174 [email protected]
Matt Davis MRICSSavills Development, Oxford01865 269000 / 07812 965 [email protected]
Jason Hill MRICSSavills Development, Oxford01865 [email protected]
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