THE
CONNECTION
NEWBURY
THE
CONNECTION
NEWBURY
A RARE OPPORTUNITY TO ACQUIRE
ICONIC REAL ESTATE
VIDEO
VIDEO
A unique index linked leaseback of Vodafone’s iconic UK headquarters alongside an exciting repositioning opportunity
THE SITE
THE SITE
THE ATTRIBUTES
THE ATTRIBUTES
A UNIQUE OPPORTUNITY TO ACQUIRE VODAFONE'S ICONIC HEADQUARTERS AND TECHNOLOGY CAMPUS
486,810 sq ft of modern office accommodation in seven self-contained buildings
Office accommodation is arranged over three floors around impressive full height central atriums
Purpose built for Vodafone in 2002 all seven buildings benefit from the same high quality specification with a minimum EPC rating of C
2,222 surface and decked car parking spaces providing an excellent car parking ratio of 1:219 sq ft
Well connected office campus situated 1.5 miles north of Newbury town centre and 3 miles south of Junction 13 of the M4 (via the A34 / A339)
Newbury is ideally located in the M4 corridor equidistant between London and Bristol
Vodafone originated in Newbury in 1985 and have a proud and longstanding history in the town
This site provides a part repositioning opportunity underpinned by secure income
Four office buildings totalling 276,455 sq ft will be leased back on four separate leases to the undoubted covenant of Vodafone Limited at an initial rent of £5,114,418 per annum (£18.50 psf)
- Three offices will be leased back on a 10 year term without break and with RPI rental increases
- One office will be leased back on a 5 year term with a rolling break after 12 months subject to 6 months notice
Three office buildings totalling 210,355 sq ft will be offered with the benefit of full vacant possession
Easily divisible site extending to 38 acres with each property held under separate freehold titles
THE LOCATION
THE LOCATION
Newbury is an affluent and attractive market town situated in West Berkshire which serves as the region’s principal commercial and retail centre. The town is strategically located in the M4 corridor 18 miles west of Reading and equidistant between Central London (61 miles) and Bristol (65 miles). The Connection is ideally positioned to benefit from unrestricted access to the wider UK motorway network.
THE CAMPUS
THE CAMPUS
The Connection comprises 486,810 sq ft (45,226 sqm) of modern office accommodation arranged in seven self-contained buildings set on 38 acres of landscaped grounds.
CAMPUS AREA SUMMARY
| TOTAL | |
| NET INTERNAL AREA (SQ FT) | 486,810 |
| NET INTERNAL AREA (SQM) | 45,226 |
| CAR PARKING SPACES | 2,222 |
| SITE AREA (ACRES) | 38 |
SPECIFICATION
All seven office buildings benefit from the following general specification:
ALL BUILDINGS HAVE AN EPC OF C OR ABOVE
FULL ACCESS RAISED FLOORS (200MM VOID)
3.3M SLAB TO SLAB HEIGHT ON GF AND FF
CHILLED BEAMS
ATTRACTIVE CENTRAL ATRIUM
2X13 PERSON PASSENGER LIFTS
MALE & FEMALE WC'S ON EACH FLOOR
SHOWER FACILITIES ON GROUND FLOOR
5G TELECOMS MAST ONSITE
EACH BUILDING IS SUPPLIED BY ITS OWN SUB-STATION AND BACK UP GENERATOR
GALLERY
GALLERY
THE LEASEBACK
THE LEASEBACK
The Connection is offered for sale, subject to four separate leases to be entered into with Vodafone Limited in respect of the separate demises of Vodafone, Bell, Hopper and Baird House on the following headline terms:
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| TENANT | VODAFONE LIMITED | |||
| TERM | 10 Years | 5 Years | ||
| TENANT BREAK | No break | Rolling break after 12 months (6 months notice) |
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| REPAIR | Full Repairing and Insuring | |||
| INITIAL RENT | £1,528,951 per annum (£18.50 psf) |
£1,068,634 per annum (£18.50 psf) |
£1,174,103 per annum (£18.50 psf) |
£1,342,730 per annum (£18.50 psf) |
| REVIEWS | 5-yearly RPI uplifts, collar and cap (1-4%) | No review | ||
THE OFFERING
INVESTMENT HIGHLIGHTS
Secure rental income for 10 years to a covenant rated 100/100 by Creditsafe
Ability to master plan whilst receiving income and deliver a phased redevelopment or refurbishment programme
Opportunity to leverage attractive debt terms
Rare opportunity to acquire the UK HQ campus of one of the world’s largest telecommunications companies
Instant refurbishment opportunity to provide Grade A office buildings with excellent ESG credentials in a constrained market
Opportunity to acquire a strategic 38 acre brownfield site in one of the UK’s high growth areas
Vodafone is a committed tenant. They originated in Newbury in 1985 and have a proud and longstanding history in the town
RPI rental increases to provide guaranteed rental performance and inflationary protection
Easily divisible site held under separate freehold titles
Attractive day 1 investment yield
Opportunity to acquire the Campus below build cost
Multiple alternative use redevelopment opportunities
PROPOSAL
Our client is seeking unconditional offers in excess of £75,000,000 (Seventy Five Million Pounds) subject to contract and exclusive of VAT.
A purchase at this level reflects the following:
- £63,000,000 for the Vodafone leaseback offices which returns an attractive net initial yield of 7.53% assuming sale and leaseback purchasers’ costs of 7.78%
- £12,000,000 for the vacant offices and wider site breaking back to an exceptionally low capital value of £57 psf on the vacant office accommodation
THE COLLIERS TEAM
FOR FURTHER INFORMATION OR TO MAKE VIEWING ARRANGEMENT PLEASE CONTACT:
Colliers gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person employed or engaged by Colliers has any authority to make any representation or warranty whatsoever in relation to this property. (March 2022) | Colliers is the licensed trading name of Colliers International Property Advisers UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA. | Website Design: thecornershop.me.uk / 1choice.co.uk | Videography & Photography: Pinky Productions