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Cobalt 9, Cobalt Business Park, Newcastle-upon-Tyne NE27 0QQ
Santander Cards UK Limited
Modern, long let office investment
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y• Located in the heart of Cobalt Business Park, one of the UK’s
premier out of town office locations.
• The park is strategically located with easy access to the A1 dualcarriageway via the A19 and is a short drive from Newcastle CityCentre.
• Built in 2008, the property comprises a modern, high specificationoffice building arranged over 5 floors with a NIA of 102,650 sq ft.
• There are 435 car parking spaces providing an excellent car parkingratio of 1:230 sq ft.
• The property is held by way of Long Leasehold for a term of 125years (less 6 days) from the 29th March 1996 expiring 23rd March2121 with approximately 106 years unexpired at a peppercorn rent.
• Let in its entirety to Santander Cards UK Limited for another 13 years, expiring 2nd March 2028, at a passing rent of £2,112,257per annum which equates to £20.53 per sq ft (off 102,893 sq ft). The rent comprises a base rent and Cat A fit out rent which breaksback to £17.67 per sq ft and £2.86 per sq ft respectively.
• 5 yearly, upwards only rent reviews to the higher of the current passing rent or open market value with the next rent review on the 3rd March 2018.
• Offers are invited in excess of £25,000,000 reflecting an attractivenet initial yield of 7.99% having allowed for purchaser’s costs of5.8%.
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The property is located in the heart of Cobalt Business Park which is considered to beone of the UK’s premier out of town office locations. The Park is situated a short drivefrom Newcastle which is the regional capital of the North East and is locatedapproximately 145 km (91 miles) north of Leeds, 190 km (119 miles) south-east ofEdinburgh, 224 km (140 miles) north-east of Manchester and 456 km (285 miles) northof London.
Location
By Road
• Cobalt Business Park benefits from excellentroad links to the major urban areas in theNorth East via the A19 which passes adjacentto the south-west boundary of the Park.
• The A19, via the A194, provides access to theA1(M) and the national motorway networkto the south of Newcastle.
• Newcastle city centre is approximately 10 km(6 miles) to the south-west of the Park via theA1058 Coast Road.
By Bus
• Cobalt Business Park is set in the heart ofNorth Tyneside and is currently served byover 29 buses an hour providing direct linksto Whitley Bay, Blyth, Newcastle SouthGosforth, Killingworth, Cramlington, Wallsendand key areas in Northumberland.
• Cobalt is on eight local bus routes and has adedicated fleet of ‘Cobalt Clipper 309’ busesoperating from Newcastle HaymarketInterchange directly to Cobalt and the NorthEast coast to the east, running every half hourin each direction.
• The R19 service runs directly through Cobaltand connects with every peak time Metro atNorthumberland Park Interchange. Only a 3minute journey from Cobalt, the 9/A runsfrom South Tyneside at Percy Main and meetsevery ferry at the North Shields terminal.
• With a service running every 15 minutes, the‘Stephenson Link’ is a rapid transport linkconnecting the Park to the north and southloops of the Tyne & Wear Rail Network, andproviding direct access to both NewcastleInternational Airport and Newcastle citycentre.
By Rail
• Newcastle is on the East Coast Main Line,with a fastest journey time to London KingsCross of approximately 2 hours 50 minutesand to Edinburgh in 1 hour 40 minutes.
• The rail network also provides a direct routeto Manchester with a fastest journey time ofapproximately 2 hours 35 minutes.
By Air
• Cobalt Business Park is located only 18 km(11 miles) from Newcastle InternationalAirport, which provides both domestic andinternational flights to destinationsthroughout Europe and to selecteddestinations in North America, The Caribbean,Africa and the Middle East.
Com
mun
icat
ions
A19
A186
A19
A186
A191
A1058
A1058
COBALTBUSINESS PARK
NEW YORKINDUSTRIAL PARK
ORIONBUSINESS
PARK
A68
A69
A696
A1(M)
A1
A1
A19
A592
A194(M)
NEWCASTLEUPON TYNE
SUNDERLAND
SOUTHSHIELDS
NORTHSHIELDS
THE PROPERTY
COBALT 9
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Railway Line
Cobalt Business Park
Cobalt Business Park is considered to be one of theforemost Business Parks in the UK in terms of size and quality.When fully developed at 3 million sq ft, it will be the UK’slargest office park on 143 acres of land.
The Park benefits from having an excellent location with goodtransport links and numerous on-site facilities. The highspecification offices provide headquarter style accommodationlet to an impressive range of tenants that include the following:
• Accenture • CBX• Formica • Balfour Beatty• Hewlett Packard • Everything Everywhere • Santander • P&G • NHS Trust • Newcastle Building Society • Job Centre Plus • Village Hotel • North Tyneside Council • Ramsay Health Care• Fujitsu • Equinox• Chisholm • Det Norske Veritas• Utilitywise
The Park also has a unique combination of on-site facilities:
• 39 acre countryside park which was designated as a localnature reserve in 2005.
• The Just Learning Children’s Day Nursery has secure playareas (with CCTV) and 25 staff on site providing childcare forup to 110 children aged between 2 months to 5 years.
• 157 bedroom Newcastle Village Leisure Hotel incorporating4 star facilities, conference banqueting and business meetingfacilities and leisure facilities such as a 25 metre pool, sauna,fitness studio and spa.
A wide offering of retail, restaurant and leisure facilities arelocated in proximity. Within a short walk from Cobalt 14 is aTesco Express and Greggs.
At the nearby Silverlink Retail & Leisure Parks existing tenantsinclude Next, Marks & Spencer, Outfit, Currys/PC World andBoots amongst a number of others. Other nearby occupiersinclude an Odeon Cinema, Pizza Hut, Frankie & Benny’s,McDonald’s and a complex of car showrooms (includingPorsche, Audi, Volkswagen, Toyota and BMW).
More information on Cobalt Business Park is available atwww.cobaltbusinesspark.com
DemographicsNewcastle has a resident population of approximately 190,000and around 1,400,000 live within 12 miles of the city centre.Cobalt Business Park is highly accessible to a large catchmentpopulation including the conurbations of North Shields, SouthShields, Tynemouth and Jarrow. The working population, withinthe following drive times, are as follows:
Source: CACI
Distance (Minutes) Population
10 93,159
20 466,334
30 1,077,907
40 1,451,751
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Site AreaThe property is situated on a site of approximately 3.808 acres (1.541 hectares).
Ordnance Survey Map
CountryPark
This plan is published for convenience of identification. Any boundaries shown are indicative onlyand should be checked against the Title Deeds. The plan is based upon Ordnance Survey Map withthe permission of the Controller of H M Stationery © Crown Copyright.
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SubjectProperty
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Floor AreasThe property has been measured on a Net Internal Area basis in accordance with theRICS Code of Measuring Practice (6th Edition) and from this we calculate theapproximate areas to be as follows:
Existing Building
Description Sq ft Sq m
Ground Floor 21,312 1,980
Level 1 19,613 1,822
Level 2 20,540 1,908
Level 3 20,540 1,908
Level 4 20,645 1,918
Total NIA 102,650 9,536
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* The lease has a defined area of 102,893 sq ft for the purpose of the rent review.
Typical Floor Plate
Built in 2008 the property is a modern, 5 storey officebuilding of steel frame construction. The design includesa 5 storey feature atrium, air conditioning, full accessedraised floors, suspended ceilings, a double heightreception area, 3 metre clear floor to ceiling height andLG3 compliant lighting. There are 435 car parkingspaces which provides a ratio of 1:230 sq ft.
Description7
TenureThe property is held by way of long leasehold for a term of 125 years (less 6 days) from 29th March 1996 expiring 23rd March 2121 withapproximately 106 years unexpired at a peppercorn rent.
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TenancyThe building is let in its entirety to Santander Cards UK Limited (CompanyNo. 01456283) on a 20 year term from 3rd March 2008, expiring 2nd March2028, with an unexpired lease term of approximately 13 years.
The passing rent is £2,112,257 per annum, which equates to £20.53 per sq ft(off 102,893 sq ft) and comprises a base rent of £17.67 per sq ft and a Cat Afit out rent of £2.86 per sq ft. The lease is subject to 5 yearly upwards onlyrent reviews to the higher of the current passing rent or open market rentalvalue with the next review on the 3rd March 2018. The lease has a definedarea of 102,893 sq ft for the purpose of the rent review.
On 7th January 2009, GE Capital Bank (the former tenant) was acquired bySantander Cards UK Limited and the name was incorporated on 27th May2009.
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Tenant InformationSantander Cards UK Limited – Company No. 01456283
Santander Cards UK Limited is a subsidiary of Banco Santanderwhich employs 186,000 people globally (2013) and is the largest bankin the Eurozone by market capitalisation. In the 2000’s, Santander UK acquired Alliance & Leicester, Abbey National, and Bradford &Bingley in an inorganic growth programme into the UK.
Santander Cards UK Limited provides rewards cards, store cards,credit cards and unsecured sales finance products to the SantanderGroup and counts Arcadia and Debenhams among its customers.
It is the UK’s biggest operator of store cards, including Harrods,Mothercare and Halfords.
Santander Cards UK Limited accounts are as follows:
Santander UK plc accounts are as follows:
EPCThe property benefits from an EPC rating of D-92.
VATWe understand the property has been elected for VAT. It is assumedthat the transaction will be treated as a Transfer of a Going Concern(TOGC).
Capital AllowancesThere are no transferable capital allowances available to thepurchaser, as these are to be retained by the vendor.
ProposalWe are seeking offers in excess of £25,000,000 for our client’sleasehold interest in the property subject to contract. A purchase atthis price reflects a net initial yield of 7.99% having allowed forpurchaser’s costs of 5.8%.
Web Accesswww.cushmanwakefieldinvestmentsales.co.uk/cw/santander
31 Dec 2011 31 Dec 2012 31 Dec 2013
Turnover - - -
Pre-Tax Profit £50,600,000 £73,900,000 -£155,700,000
Net Worth £568,800,000 £810,200,000 £681,000,000
31 Dec 2011 31 Dec 2012 31 Dec 2013
Turnover - - -
Pre-Tax Profit £1,261,000,000 £1,231,000,000 £1,139,000,000
Net Worth £10,224,000,000 £10,324,000,000 £9,885,000,000
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Further InformationFor further information on this opportunity, please contact either:
Mike BurdenTel: 020 7152 5086E-mail: [email protected]
Adam McMillanTel: 020 7152 5332E-mail: [email protected]
Josh BeebeeTel: 020 7152 5266E-mail: [email protected]
Rory TurnerTel: 020 7152 5205E-mail: [email protected]
MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whoseagents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do notconstitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give anyrepresentation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwisestated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the propertyis in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have beenmade regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their owninvestigations if required.
Cushman & Wakefield 43-45 Portman SquareLondonW1A 3BG
www.cushmanwakefield.com
March 2015
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