MULTI LET HIGHLY REVERSIONARY CBD OFFICE INVESTMENT

Transcription

1 O behalf of Jolivet Group, Guersey MULTI LET HIGHLY REVERSIONARY CBD OFFICE INVESTMENT No1 Tithebar Street Liverpool L2 2QP

2 INVESTMENT SUMMARY Multi let office ivestmet of 11,55 sq ft Situated above Moorfield s trai statio i Liverpool s Cetral Busiess District Extesive refurbishmet to the majority of the buildig icludig exteded ad re-modelled receptio i 2010 Flexible floor plates from c. 15,000 sq ft allowig sub divisio Curret passig retal of 682, pa Highly reversioary with 1,957 sq ft vacat ERV i the order of 1,15,70 pa Offer i excess of 8,000,000 (Eight Millio Pouds) reflectig a 8.06% iitial yield ad a ultimate reversioary yield of 1.2%. Low capital value of oly 7.5 psf

3 Roads Ladmark buildigs Hotels Leisure ad retail Public Trasport 1 Tithebar Street 2 Castle Street Old Hall Street The Strad 5 Water Street 6 Idia Buildig 7 Port of Liverpool Buildig 8 Cuard Buildig 9 The Royal Liver Buildig Chapel Street 11 Exchage Flags 12 The Plaza 1 Exchage Statio 1 The Tow Hall 15 Daily Post & Echo 16 The Capital 17 St Paul s Square 18 Crowe Plaza Castle Street 20 Hard Days Night Hotel 21 The Racquet Club 22 Thistle Hotel 2 Malmaiso 2 SAS Radisso 25 Liverpool Oe 26 Sa Carlo 27 Albert Dock 28 Simply Heathcotes 29 Restaurat Bar ad Grill 0 Wester Approaches 1 Starbucks 2 Piccolio Restaurat Mersey Ferries Crowe Plaza Health Club 5 Paoramic Restaurat 6 Filii Restaurat 7 Echo Area ad Covetio Cetre 8 Met Quarter 9 Bus Iterchage 0 James Street Merseyrail Statio 1 Moorfields Merseyrail Statio 2 Queesway Tuel exit New Cruise Lier termial

4 Hollywell A55 A58 A A565 Wallasey A55 Southport Ormskirk 7 Liverpool Birkehead 1 6 M58 M57 Liverpool A557 M5 Joh Leo Airport A50 8 A550 9 Ellesmere M56 Port A A58 A9 A565 A506 A1 A5117 B5129 A570 ONE OF THE UK S FASTEST GROWING ECONOMIC REGIONS A59 A505 A5058 Bromborough River Mersey A M5 A Chester A561 A59 A Skelmersdale A570 A500 A51 5 St Heles A58 A57 A A5 M6 Chorley M6 Wides M62 A M61 Wiga 22 Warrigto A556 A9 A58 A56 A5 A579 A A A580 A5 M6 A58 A676 M62 M56 M61 A556 A57 19 A666 M6 8 Bolto Altricham 18 Middlewich 7 A58 16 M A56 1 A580 A57 M A5 A56 6 Rochdale 2 A58 5 M62 19 A576 Salford Machester A A Oldha A6 5 A M Stockport Machester Airport A A A6010 A58 A52 A57 Macclesfield LOCATION Liverpool is the fifth largest urba cetre i the UK with a populatio of circa 1.5millio, more tha 8,000 busiesses ad a ecoomic output of 25billio per aum. It is a itegral part of the thrivig North West ecoomy, which is the secod-largest i the UK after Lodo ad the South East, with a populatio of 7 millio, more tha 250,000 busiesses ad a ecoomic output of 120billio per aum. The city is oe of the UK s fastest growig ecoomic regios ad is the pricipal commercial ad admiistrative cetre for Merseyside. The city has udergoe a remarkable reaissace over the past 10 years with over 5billio of iward ivestmet delivered through private ad public sector partership. Further ivestmet such as Liverpool Waters ad the cotiuig biaual Iteratioal Festival of Busiess are expected to cotiue the success of the city. I 2008, Grosveor delivered the reowed Liverpool Oe retail ad leisure developmet. The city is home to a umber of iteratioal ad atioal busiesses such as Jaguar Lad Rover, Satader, Royal Su Alliace ad QVC. May large public sector orgaisatios also have a presece i the city icludig HMRC ad Customs ad Excise. Merseyside has established itself as oe of the UK s mai cotact cetre locatios for compaies such as HSBC ad BT. The Port of Liverpool is oe of the UK s busiest cotaier ports hadlig 700,000 cotaiers per year. The ew deep water port at Liverpool2 will icrease its capacity to accommodate the larger Post-Paamax cotaiers; the oly other ports capable of hadlig such vessels are Southampto ad Felixstowe.

5 COMMUNICATIONS Liverpool is located 212 miles (0 km) orth west of Lodo, 98 miles (157 km) orth west of Birmigham ad 2 miles (52 km) to the west of Machester. The city has excellet road commuicatios beig served by the M62, M57, ad M58 which provide easy access to the M6 which is approximately 17 miles to the east. Liverpool Lime Street provides regular, direct rail services to Lodo Eusto with approximate jourey times of 2 hours 10 miutes. Jourey times to Machester are as low as 5 miutes. Liverpool has a excellet, electrified suburba rail etwork icludig a udergroud loop likig the statios at James Street, Moorfields ad Cetral to Lime Street. The Old Hall Street etrace to Moorfields statio is uder No. 1 Tithebar. Mersey Ferries operate direct cross-river services 7 days a week betwee the Pier Head ad Seacombe, Wirral with a jourey time of 10 miutes. P&O ad Norfolkie Irish Sea also offer daily services to Dubli, Belfast ad the Isle of Ma. I additio, Liverpool is establishig itself as a major cruise lier termial ow offerig turaroud services. Liverpool Joh Leo Airport is located 6 miles to the south east of the city cetre. The airport is oe of Europe s fastest growig ad ow serves 60 destiatios ad 5.millio passegers aually. Machester Airport (situated miles to the east) is the UK s third largest servig 200 destiatios ad 19 millio passegers aually.

6 SITUATION No. 1 Tithebar is a imposig buildig o the corer of Tithebar Street ad Old Hall Street withi Liverpool s Cetral Busiess District. L E E D S S T R E E T St Paul s Square, which is Liverpool s pricipal ew office developmet, is situated 200m to the orth whilst the traditioal office core icludig Exchage Flags is situated immediately to the south. As such, No. 1 Tithebar is literally at the heart of Liverpool s office district. P R I N C E S P A R A D E B A T H S T R E E T PRINCES DOCK E D W A R D S T R E E T K I N G N E W Q U A Y O L D H A L L S T R E E T THE CAPITAL ROYAL ROYAL LIVER LIVER BUILDING BUILDINGS Q U E E N S W A Y ( M E R S E Y T U N) N E L CHAPEL STREET T H E S T R A N D CUNARD BUILDING E A S T S T R E E T ST PAUL S C H A P E L S T R E E T W A T E R S T PORT OF LIVERPOOL BUILDING P A L L M A L L EXCHANGE ST EXCHANGE EXCHANGE FLAGS FLAGS INDIA BUILDING TOWN HALL B R U N S W I C K S T MANN ISLAND EXCHANGE STATION J A M E S S T R E ET T H E S T R A N D T I T H E B A R N S T R E E T MOORFIELDS QUEEN ELIZABETH II LAW COURTS H A T T O N G A R D E N METQUARTER SHOPPING CENTRE C O O K S T R E E T C H U R C H I L L W A Y D A L E S T R E E T H A N O V E R S T R E E T ST JOHNS LANE WALKER ART GALLERY ST GEORGES S HALL ST JOHN S SHOPPING CENTRE CLAYTON SQUARE L I M E S T R E E T LIVERPOOL LIME STREET STATION The buildig beefits from exceptioal access to public trasport with its ow etrace to Moorfields statio ad the full rage of city cetre ameities are available withi a few miutes walk of the buildig. Liverpool ONE ad the Waterfrot are withi 10 miutes walk. C A N N I N G P L Retail District Cetral Busiess District

7 DESCRIPTION The property comprises a six storey buildig built directly o top of Moorfield s trai statio with retail uits at groud ad mezzaie levels ad offices above. The buildig is costructed of a cocrete frame with cocrete paels ad a masard clad roof. The majority of the office accommodatio has bee comprehesively refurbished with specificatio icludig: Double height cotemporary glazed etrace VAV comfort coolig ad vetilatio 150mm metal full access raised floor Cotemporary desiged toilets New perimeter radiator heatig LG / LG7 semi recessed lightig to a high speciatio 2,800mm height from raised floors to suspeded ceilig x 1 passeger lift Goods lift to rear service area High quality suspeded ceiligs

8 ACCOMMODATION The property has bee measured i accordace with the RICS Code of Measurig Practice (6 Editio) ad offers the followig et iteral floor areas: Demise Area (NIA) Sq Ft Sq M Basemet 1, Uit 1 GF 1, Uit 1 GF 2, Uit 1 GF 1, Mezzaie 15,5 1,5.61 First Floor 19,0 1, Secod Floor 18,7 1, Third Floor 15,561 1,5.65 Fourth Floor 1,922 1,86.28 Fifth Floor 15,1 1,05.98 Sixth Floor 7, Totals 11,55 10,59.2 Groud floor pla Fourth floor pla

9 TENANCY SCHEDULE The property is multi-let to 10 teats i accordace with the teacy schedule below. The buildig produces a total gross icome of 682, per aum. There is curretly 1,957 sq ft of vacat accommodatio represetig 7% of the overall space. The average weighted uexpired lease term is.05 years to expiry ad.17 years to earliest termiatio. SERVICE CHARGE All leases are draw o effective full repairig ad isurig terms subject to paymet of a service charge. The curret service charge budget for the year edig 1/12/2015 is 508,67 represetig.8 psf pa. Uit Teat Name Area sq ft Uit 1 GF Uit 2/ GF Uit GF Moorfields Photographic Ltd Optimum Coffee t/a Costa Coffee William Hill Orgaisatio Lease Start 1, years from 22/12/200 2, years from 2/07/2009 1, years from 22/10/2010 Lease Expiry (Breaks) Ret pa (per sq ft) 22/12/201 12,500 ( 10.59) 2/07/2019,000 ( 11.68) 21/10/200 (22/10/2020) 15,000 ( 9.8) ERV 12,500 ( 10.59),000 ( 11.68) 15,000 (9.8) Mezz Vacat 8,50 8,500 Mezz Tata Cosultacy Services 7,10 years from 2/11/2012 1st Carpeters 19,0 6 years from 01/09/ /11/2015 (2/11/201) 71,00 1/08/ ,00 71,00 19,00 2d (Part) Vacat 7,60 7,600 2d (Part) Vacat 11,11 111,10 rd th (Part) Tata Cosultacy Services CSAV Group Agecy UK 15,561 9 years from 2/11/2012 6,526 2 years from 26/08/2009 th (Part) SDV 8,96 5 years from 28/07/201 22/11/2021 (2/11/2018) 150,200 ( 9.65) 25/08/ ,000 ( 9.96) 27/07/ ,168 ( 8.00) 15, ,260 8,960 5th Vacat 15,1 15,10 6th Basemet Store Tube Statio (Basemet) Speed Medical Examiatio Services 7,677 years from 01/12/201 Galliford Try 1,21 1 year from 01/06/2015 Network Rail /a 999 years from 01/01/1976 0/11/2017 (0/11/2015) 65,25.50 ( 8.50) 1/05/2016 8,000 ( 6.5) 1/12/ ,770 8,000 ( 6.5) Total 11,55 682, ,15,70 Commets Retail Uit. Occupier iterested i takig a further 5 year lease at the same passig ret. Retail Uit. Occupier wishes to exted the lease. Retail Uit. Requires refurbishmet. Potetial to exted through removal of redudat staircase. Service charge cap at 7,66 ( 5.0 p.s.f). Worthigto Owe i discussio with teat over ew Lease. Ladlord has service charge top up to make of 7,629 for the first year (up util 0th August 2016). Requires refurbishmet. Refurbished. Service charge cap at 79,606 ( 5.12 p.s.f) Vacatig 0/11/2015. Requires refurbishmet. Requires refurbishmet. Has bee stripped to shell ad a request made to de-list from ratig list. Ret commecemet date 1st December 2015 at,267. Ret icreases to 65,25.50 o 1st December Ladlord to top up.

10 TENANT COVENANT Moorfields Photographic Moorfields photographic have bee supplyig photographic pritig service to professioal ad amateur photographers. Moorfields was fouded 0 years ago arisig from a family photographic busiess established i the 1920 s For the year edig 1 August 201, Moorfields Photographic Ltd had a tagible et worth of 120,2. Optimum Coffee Optimum Coffee uder a licese from Costa Coffee curretly operate 1 frachised stores across Merseyside servig speciality coffees. Costa Coffee is the largest ad fastest growig coffee shop chai i the UK ad i 2010 was voted the atio s favourite coffee shop. It was acquired by Whitbread i 1995, sice the it has grow to over 1,700 stores across 28 coutries with over 1,00 i the UK. For the year edig 1 August 201, Optimum Coffee Ltd had a tagible et worth of 1,792 William Hill Orgaizatio William Hill Orgaizatio Ltd was icorporated i 19 ad is a subsidiary of William Hill PLC. The pricipal activity of the William Hill Orgaizatio is the operatio of Licesed Battig Offices. The Compay is also resposible for the employmet of the Groups UK based staff ad facilitates fiacig activities i relatio the Groups exteral borrowigs. For the year edig 1 December 201, William Hill Orgaizatio Ltd recorded a profit of Tata Cosultacy Services Established i 1968, Tata Cosultacy Services (TCS) is part of the TATA Group, oe of Idia s largest idustrial coglomerates ad most respected brads. TCS is a global leader i IT services, digital ad busiess solutios that parters with its cliets to simplify, stregthe ad trasform their busiesses. Tata employs over 50,000 staff. For the year edig 1 August 201, TCS Ltd had shareholder fuds of.8 billio. CSAV Group Agecy UK Established i 200, CSVA Group Agecy UK Ltd i part of the wider Compañía Sudamericaa de Vapores (CSAV) group of compaies, a Chilea shippig compay. Fouded i 1872, it is oe of the oldest shippig compaies i the world ad curretly, oe of the largest i Lati America. CSAV is a corporatio that has bee listed o the stock market sice 189. The compay offers trasportatio services, such as the maritime carriage of liquid ad solid bulk cargoes, refrigerated cargo, cars ad heavy equipmet. For the year edig 1 December 201, CSAV Group Agecy UK had a tagible et worth of 702,000. Carpeters Carpeters are a firm of solicitors providig claims services to the isurace idustry ad specialist persoal ijury advice. They curretly operate from five offices across the couty. They are part of a larger firm ad further iformatio ca be foud at www. carpeters-law.co.uk A guaratee has bee provided by two parters of the firm util et assets are i excess of 25 millio. 100,000 ret deposit held SDV SDV was fouded i 1988 ad is a global leader i iteratioal trasport & logistics. They are a tier-oe supply chai parter ad oe of the top 10 trasport ad logistics compaies i the world with the largest itegrated logistics etwork i Africa. The paret compay is SDV Ligistique. The Compay employs over 20,000 staff ad has 612 offices i 102 coutries. For the year edig 1 December 201, SDV (UK) Ltd had a tagible et worth of 78,000. Speed Medical Examiatio Services Established i 1998 by a Lacashire based GP, Speed Medical was specifically set up to deliver the highest level of reportig quality ad service, i the most efficiet maer. As oe of the UK s largest medical reportig firms, i terms of volume, the busiess has grow orgaically to provide solicitors ad isurers with a urivalled level of product tailorig ad idustry leadig stadards of service. For the year edig 1 May 201, Speed Medical Examiatio Services Ltd reported a turover of,08, which showed a gross profit of 12,192,52.

11 LIVERPOOL OFFICE OCCUPATIONAL MARKET Take-up durig 201 was 76,22 sq. ft. which was 21% higher tha i 201 ad substatially higher tha the 5-year average. Moreover, the market was sigificatly more active with 50% more trasactios durig 201 tha i 201. Take-up for H was 125,195 sq. ft. ad we aticipate that take-up for the year will be circa 250,000 sq. ft. Whilst this total is superficially disappoitig, the reaso for this is the shortage of large deals over 20,000 sq. ft. I reality, the market is stroger tha it has bee sice 2007 which is supported by the fact that there will be more trasactios i 2015 tha i ay year sice The total office stock withi the CBD is c.7.1millio sq. ft.; a decrease of almost 500,000 sq. ft. sice 201. The level of vacacy is curretly c.2.1millio sq. ft. (dow from c.2.millio sq. ft. i 2012) but this is a misleadig statistic as a large proportio of this stock is of such poor quality that it is ulikely to be let as offices agai. We aticipate the supply figures to drop sigificatly i 2015 ad over the comig years as more buildigs are coverted to alterative uses ad there will be a very limited supply of ew-build accommodatio. Headlie rets have remaied firm sice 201 ad there is icreasig evidece of rets icreasig at the best buildigs (No. 1 Ma Islad, Royal Liver Buildig ad Exchage Flags). Iducemets remai stubbor at circa 0% of the headlie ret but, agai, there is icreasig evidece of iducemets erodig. We aticipate terms to improve over the ext 12 moths. LIVERPOOL OFFICE INVESTMENT MARKET There are a umber of office ivestmets curretly i the market, below we detail the most pertiet alog with their capital vaules. No 1 Tithebar offers excellet value at a low capital value of oly 7.5. Property Size sq ft Date Price ( psf) 5 Temple Square, Temple Street Regia House, Exchage Street Federatio House, Hope Street Graeme House, Derby Square No 1 Uio Court, Cook Street 0,76 August ,675,000 (115) 80,8 Exchaged C. 7,900,000 (97.7) 21,119 Marketig Q. 2,250,000 (106) 86,567 Marketig Q. 8,000,000 (92.2) 6,050 Uder Offer C.,200,000 (116.50) Commets Fully let to four teats. Floor plates of c. 6,000 sq ft. Cap val excludes separate 51 space car park. Multi let office with floor plates from c. 0,000 sq ft with c. 50% vacat. Sigle let with uder 6 years uexpired. Multi let offices above retail with c,000 sq ft floor plates. Fully let. Multi let office built i the 1970s with c. 11,500 sq ft with c. 10% vacat. Multi let office above retail with floor plates of c. 5,500 sq ft. Fully let. Property Teat Size sq ft 5 St Paul s Square The Departmet St Paul s Square Ma Islad Fiace NHS Search Recruitmet Date 11,0 October 2015,0 September ,26 September 2015 Ret pa Commets ( psf) year Lease with 5 year break year Lease year Lease with 5 year break. 20 Chapel St Auto Networks 6,199 July year Lease with 5 year break. Graeme House New College Machester 6,07 July year Lease with year break. Graeme House Regia House No. 1 Uio Court

12 PROPOSAL We are istructed to seek offers i excess of 8,000,000 (Eight Millio Pouds). A sale at the above level represets a iitial yield of 8.06% assumig usual purchasers costs at 5.80%. Assumig our opiio of the ERV, oce fully let the property produces a very attractive reversioary yield of 1.2% NI. A sale at the above level provides a low capital value of 7.5 per sq ft. FURTHER INFORMATION TENURE The property is held freehold. EPC The buildig has a EPC ratig of C-7 ad the certificate is available upo request. VAT We uderstad that the property has bee elected for VAT. As such, it is aticipated that the sale will be haded as a trasfer of a goig cocer (TOGC). gva.co.uk / Mark Worthigto E: mark@worthigtoowe.com T: Adrew Owe E: adrew@worthigtoowe.com T: David Witerbottom E: david.witerbottom@gva.co.uk T: Gurmider Maak E: gurmider.maak@gva.co.uk T: Misrepresetatio Act These details are provided oly as a geeral guide to what is beig offered subject to cotract ad subject to lease beig available ad are ot iteded to be costrued as cotaiig ay represetatio of fact upo which ay iterested party is etitled to rely. Other tha this geeral guide either we or ay perso i our employ has ay authority to make, give or imply ay represetatio or warraty whatsoever relatig to the properties i these details. Desiged ad produced by Richard Barber & Co