Derby is one of three key cities located within the East Midlands, approximately 15 miles west of Nottingham, 30 miles north west of Leicester and 125 miles north west of London.
The Rolls-Royce Training Centre was originally built in 2000 and was extended by the tenant in 2012 to incorporate the Apprentice Academy.
The original building extends to 124,539 sq ft across three storeys, comprising workshop/warehouse space and office accommodation. Training facilities and meeting rooms are provided across all floors, accessed via a central staircase, around a central open lightwell with a large conference centre on the ground floor and reception area to the front of the Property.
The workshop area to the north of the unit is formed in four bays, with three 6 metre high bays and one 10 metre high bay constructed of steel portal frame and profiled steel roof. The 6 metre high bays benefit from two overhead electric loading doors and floor loading of 20kN/m2 whilst the 10 A view of The Street metre high bay has one overhead electric loading door, two 10 tonne overhead gantry cranes and floor loading of 35kN/m2. This area sits behind the exhibition space and can be accessed internally via The Street, a double height corridor also utilised as a break out space.
The Apprentice Academy, which was built by the tenant, extended the Property by a further 40,580 sq ft. This provides accommodation across three storeys and includes a double height workshop with 7 metre eaves, constructed of steel portal frame with steel composite cladding panels and flat roof. Internally, the Academy includes a staff canteen, a workshop area, mezzanine offices to the north of the building and plant deck to the south. Access to the Academy is via the main central staircase as well as a link bridge at first floor level and lift facilities.
Generally, the Property as a whole is finished with suspended ceilings, LED lighting, raised flooring with carpet/vinyl finishes to the classroom and circulation areas to upper floors and carpet/ceramic tiles to 'The Street' and workshop areas. Services include refrigerant heating/cooling, ventilation to office training rooms, sprinklers and Category L1 fire alarms.
Externally, a concrete service yard surrounds the south and west sides of the unit with access to the rear and car parking to the north and east sides of the unit providing approximately 320 car and 40 motorcycles spaces.
The property is held freehold under the Title Number DY319017.
The Property is let to Rolls-Royce plc on a 25 year FRI lease expiring on 7th December 2025, providing 6.52
years unexpired. The current passing rent is £830,729 per annum, equating to £6.67 per sq ft with a fixed increase in December 2020 to £939,894 per annum, which equates to £7.55 per sq ft.
The lease contains an option for the tenant to renew on fixed terms or option to purchase at vacant possession value upon lease expiry.
Option to renew at lease expiry
Rolls-Royce plc has a D&B rating of 5A1. A summary of their most recent accounting figures can be found in the Covenant Schedule link below.
Rolls-Royce plc is one of the world's leading industrial technology companies providing power solutions through creating original equipment. The business focuses on the development and manufacture of civil and defence aerospace, power systems, marine and nuclear, along with the maintenance, repair and overhaul of these and additional products and services.
One of the core businesses includes aerospace, producing both civilian and military aircraft engines with major products including engines used on Boeing and Airbus aircraft, with nearly 100 million flying hours earned, and providing engines to the RAF Tornado fleet since 1980.
Derby acts as the global centre of Rolls-Royce. The Learning and Development Centre provides Rolls-Royce staff, apprentices and students with a centre of excellence academy utilised across all Rolls-Royce divisions providing high-quality workshop, training rooms, conference and canteen facilities. In addition, the Aerospace Customer Suite provides high-quality VIP lounge and meeting room accommodation for investors and clients from across the globe.
The Property is elected for VAT, which is payable upon the purchase price although the sale may be treated as a Transfer of Going Concern.
Offers are sought in excess of £9,250,000 (Nine Million Two Hundred and Fifty Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT.
A purchase at this level reflects a Net Initial Yield of 8.42%, increasing to 9.52% in December 2020, assuming purchaser's costs of 6.69%, and a low capital value of £74 per sq ft.