TO TELEFONICA UK LIMITED AND ANN SUMMERS LIMITED

Transcription

1 ocklesto bailey retail leisure ivestmet UNITS 1 & 2, JAMESON STREET, HULL HU1 3LS PRIME FREEHOLD RETAIL INVESTMENT AVAILABLE AS A WHOLE OR SEPARATELY LET TO TELEFONICA UK LIMITED AND ANN SUMMERS LIMITED

2 Ivestmet Summary Prime tradig locatio o the pedestriaised Jameso Street. I close proximity to the 130 millio Albio Square redevelopmet of the former BHS/Co-op ad Edwi Davis Buildigs (Kig Edward, Jameso ad Waltham Streets) to create 182,000 sq ft of retail space, with 279 residetial uits, more tha 600 car parkig spaces ad a ew Ice Area. Two vertically split Uits capable of beig purchased as a whole, or separately. Uit 1, Jameso Street is let to Telefoica UK Limited (Compay No ) tradig as O2 by way of a 6 year FR&I lease from 26 October 2018, subject to a upward oly ret review i 3rd year at a curret retal of 50,000 p.a.x. Telefoica were previously payig a retal of 60,000 for this Uit. The Telefoica (tradig a O2) retal is rebased off 55 Zoe A. Uit 2, Jameso Street is let to A Summers Limited (Compay No ) by way of a 10 year FR&I lease from 29 October 2018, subject to a upward oly ret review i 5th year, at a curret retal of 57,500 p.a.x. The lease cotais a teat oly optio to determie o 5th aiversary of the term upo servig 6 moths prior writte otice. There is a ret pealty payable if the otice is activated of 17,000 plus VAT. The lease cotais a small Photographic Schedule of Coditio relatig to the first floor acillary accommodatio. The A Summers retal of 57,500 p.a.x. reflects 55 Zoe A which is i lie with the recet reewal adjacet at Uit 1. Telefoica have traded from this locatio for over 14 years, whilst A Summers have traded i Hull (previously at 53 Whitefriargate) for over 18 years. Freehold. There is a small elemet of log leasehold iterest o part of Uit 2. Details available upo request. The property has bee elected for VAT ad it is assumed that the trasactio will be dealt with as a TOGC. WAULT years to expiry years to teat break. Total curret icome 107,500 p.a.x. The ivestmet is available either as a whole, or separately, ad offers i excess of those listed below are sought:- As a Whole: Uit 1 (O2): 1,275,000 (7.96% NIY after deductig 5.98% costs) 614,000 (7.75% NIY after deductig 5.09% costs) Uit 2 (A Summers) 662,500 (8.25% NIY after deductig 5.22% costs) Locatio Hull is located i the North East o the orther baks of the Humber Estuary. The City is located 60 miles (96km) east of Leeds, 40 miles (64 km) southeast of York, 45 miles (72km) east of Docaster, 66 miles (106km) east of Sheffield ad 187 miles (301 km) orth of Lodo. Hull beefits from excellet road commuicatios beig strategically located o the A63 which provides direct access to the M62 motorway which i tur rus west to Machester ad coects with the M1 motorway. The M180 is situated 15 miles (24km) south ad is accessed via both the A63 ad A15. The City beefits from a excellet rail service with regular services from Hull Parago Iterchage ruig to Lodo Kigs Cross with a fastest jourey time of approximately 2hrs 45mis. I additio there are regular services to Leeds, York ad Machester ad owards to the rest of the UK. Humberside Airport is located withi a 30 miute drive time south of Hull ad serves i excess of 500,000 passegers a year. I additio Docaster Sheffield Airport ad Leeds Bradford Airport are withi a 45 ad 90 miute drive time respectively. Hull is home to the UK s biggest Port complex, providig multipurpose deep water river termial access for some of the Worlds largest freight ad passeger vessels. The Port hadles early 1 millio passegers per year ad provides daily sailigs to Rotterdam ad Zeebrugge via P&O s ew super cruise ferries. The Hull Docks Brach Lie has recetly udergoe a 13m upgrade. The partial duelig of the rail ifrastructure eables the Port of Hull to offer up to 22 trai paths per day for rail freight. Hull Hull was awarded the UK City of Culture 2017 i 2013 which has led to a multimillio poud trasformatio of the City Cetre. Hull s City Cetre Regeeratio Programme ( City Pla ) will create 7,500 jobs, ew shoppig ad leisure facilities, offices, homes ad employmet opportuities. There are five strategic developmet areas Humber Quays, The Fruit Market, Albio Square, Key West ad East Bak. The City Pla also icludes a 550 millio ivestmet over 10 years to improve the housig offer i Hull. Hull s Prices Quay Shoppig Cetre has udergoe a 20 millio upgrade ad has become the City s ew premier outlet mall with retailers icludig Cotto Traders, Mosoo, Next Outlet, Pavers, Quiz, River Islad, Scotts, Sketchers, Sole Trader, Suit Direct, The Perfume Shop, Trespass ad Warre James. The scheme is also home to a 10 scree Vue Ciema ad 12 state of the art Tepi Bowlig laes. Hull is ow home to Europe s largest Wid Turbie maufacturig plat followig a 310 millio ivestmet by Siemes.

3 Demographic ad Ecoomic Profile Hull has a extesive catchmet area with a total populatio of 556,000 people, sigificatly above the sub-regioal cetre average ad rakig Hull 29th out of the PROMIS cetres. The Humber regio is expected to experiece a 15% icrease i populatio to 1,091,600 people betwee 2013 ad 2033 (source: Hull City Coucil). Hull is a large Uiversity City with a studet populatio i excess of 23,000 people. Retailig i Hull City cetre retail floor space i Hull is estimated at 1.86m sq ft, above the sub-regioal cetre average ad rakig Hull 17th of the PROMIS cetres. The City s core shoppig area is cetered aroud the pedestriaised Kig Edward Street, Prospect Street ad Jameso Street with retailer represeted icludig Waterstoes, McDoalds, Card Factory, Saisburys Local, Debehams, House of Fraser. There are three domiat Shoppig Cetres i Hull: Prospect Cetre which is achored by Boots, Wilko, Bo Marche ad Poudlad, Prices Quay achored by Primark, Dorothy Perkis, Top Shop, Vue Ciema ad Superdrug ad St Stephe s Gree Shoppig Cetre achored by Tesco Extra, TK Maxx, Next, H&M, Zara, New Look ad River Islad. Hull City Coucil are promotig Albio Square which will icorporate the redevelopmet of the former Bhs departmet store at the juctios of Kig Edward Street ad Jameso Street withi close proximity to the subject ivestmet, to provide 182,000 sq ft of retail space, alog with 278 residetial uits, more tha 600 car parkig spaces ad a ew Ice Rik. Demolitio of the former Bhs ad Co-op departmet stores is scheduled to start i Jauary Situatio The subject property occupies a prime tradig locatio o the pedestriaised Jameso Street beig adjacet to Greggs ad Halifax. Nearby multiple retailers iclude Specsavers, McDoalds, Jessops, Card Factory, William Hill, Shoe Zoe, Skipto Buildig Society, Saisburys Local, Blacks ad Waterstoes.

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5 Descriptio The property comprises two promiet retail Uits built i the late 1980 s of brick costructio uder a pitched, slate roof ad flat roof at the rear. Both Uits are arraged o groud ad first floors. Uit 1 occupied by Telefoica (tradig as O2) trades the etire groud floor with acillary accommodatio at first floor level. The shop is due a refit i Jauary/March 2019 showig further commitmet to this Uit followig their recet lease reewal. Uit 2 occupied by A Summers has bee fitted out i the stadard corporate style with acillary accommodatio ad staff facilities at first floor level. There is a fire escape route from the A Summers uit through the adjacet O2 uit. This fire escape is a joit fire escape for both Uits ad leads to the rear of the buildig ad discharges ito a rear yard servicig 45/51 Kig Edward Street ad 48/54 Jameso Street. The yard is accessed via West Street. Accommodatio The Uits are arraged o groud ad first floors with the followig approximate areas ad dimesios:- Uit 1, Jameso Street (Telefoica tradig as O2) Descriptio ft/sq ft m/sq m Iteral width m Shop depth m Groud floor sales 1,440 sq ft sq m First floor acillary 1,082 sq ft 100 sq m ITZA 862 uits Uit 2, Jameso Street (A Summers) Descriptio ft/sq ft m/sq m Iteral width (average) m Shop depth m Groud floor sales 2,093 sq ft sq m First floor acillary 1,296 sq ft sq m ITZA Teure 969 uits The property is held freehold, subject to the teacies listed below. There is a small elemet of log leasehold iterest (818 sq ft (76 sq m) o part of Uit 2 for a 999 year term from 16 December 1988 at 10 per aum. Full details available upo request.

6 Teacies Uit 1, Jameso Street (O2) The property is let to Telefoica UK Limited (Compay No ) by way of a 6 year FR&I lease from 26 October 2018 to expire 25 October The lease is subject to a upward oly ret review i 3rd year at a curret retal of 50,000 p.a.x. Uit 2, Jameso Street (A Summers) The property is let to A Summers Limited (Compay No ) by way of a 10 year FR&I lease from 29 October 2018, subject to a upward oly ret review i 5th year at a curret retal of 57,500 p.a.x. The lease cotais a teat oly optio to break o 5th aiversary of the term upo servig 6 moths prior writte otice. If the break clause is activated there is a ret pealty i favour of the ladlord of 17,000 plus VAT. The lease cotais a small photographic Schedule of Coditio relatig to the first floor acillary accommodatio. Coveat Iformatio Telefoica UK Limited (Compay No ) Telefoica UK Limited ( tradig as O2) is a telecommuicatio service provider i the Uited Kigdom owed by the Spaish multiatioal Telefoica ad is headquartered i Slough. With 25 millio subscribers (as of December 2017), O2 is the secod largest mobile etwork operator i the Uited Kigdom after EE, with Vodafoe i third place. Telefoica UK Limited tradig as O2 have aroud 6,700 employees ad over 450 retail stores, sposors Eglad Rugby, the O2 ad 1902 Academy music veues across the UK. We set out below the most recet fiacial iformatio available for the teat:- YearEd 31/12/ s YearEd 31/12/ s YearEd 31/12/ s Turover 5,471,000 5,374,000 5,393,000 Pre-Tax Profit 534, ,000 1,405,000 Shareholders Fuds 1,701,000 1,835,000 1,988,000 Telefoica UK Limited have a Creditsafe ratig of 87 out of 100 represetig a very low risk. (Source:- Creditsafe) A Summers Limited (Compay No ) A Summers is a British multiatioal retail compay specializig i sex toys ad ligerie with over 140 high street stores i the UK, Irelad ad the Chael Islads. I 2000, A Summers acquired the Kickerbox brad. The first A Summers shop was opeed i 1970 i Marble Arch, Lodo. I 1971 the Compay was purchased by Ralph ad David Gold. We set out below the most recet fiacial iformatio available for the teat:- YearEd 24/06/2017 YearEd 25/06/2016 YearEd 27/06/2015 Turover 109,011, ,542, ,818,310 Pre-Tax Profit 2,910,121 1,041,385 1,025,990 Shareholders Fuds 51,197,687 48,730,215 47,844,808 A Summers Limited have a Creditsafe ratig of 72 out of 100 represetig a very low risk. (Source: Creditsafe)

7 EPC S Uit 1, Jameso Street (O2) D100 Uit 2, Jameso Street (A Summers) D92 Certificates ad Recommedatios are available upo request. VAT The property has bee elected for VAT purposes ad it is assumed that the trasactio will treated as a TOGC (Trasfer of a Goig Cocer). Ati Moey Lauderig I accordace with Ati-Moey Lauderig Regulatios, two forms of idetificatio ad cofirmatio of the source of fudig will be required from the successful purchaser. Proposal We are istructed to offer the ivestmet either as a whole, or o a idividual basis subject to cotract ad exclusive of VAT. Offers are sought i excess of the followig:- As a Whole: 1,275,000 (7.96% NIY after deductig 5.98% costs) Uit 1, Jameso Street (O2): 614,000 (7.75% NIY after deductig 5.09% costs) Uit 2, Jameso Street (A Summers): 662,500 (8.25% NIY after deductig 5.22% costs) Further Iformatio For further iformatio, or to arrage a ispectio of the property, please cotact Hugh Ocklesto, Ocklesto Bailey hugh@ocklestobailey.co.uk SUBJECT TO CONTRACT Misrepresetatio Act 1967 Ocklesto Bailey Ltd (ad their joit agets where applicable) for themselves ad for the vedors or lessors of this property for whom they act, give otice that : (i) these particulars are a geeral outlie oly, for the guidace of prospective purchasers or teats, ad do ot costitute the whole or ay part of a offer or cotract; (ii) Ocklesto Bailey Ltd caot guaratee the accuracy of ay descriptio, dimesio, refereces to coditio, ecessary permissios for use ad occupatio ad other details cotaied herei ad prospective purchasers or teats must ot rely o them as statemets of fact or represetatios ad must satisfy themselves as to their accuracy; (iii) o employee of Ocklesto Bailey Ltd (ad their joit agets where applicable) has ay authority to make ay represetatios or warraty or eter ito cotract whatever i relatio to the property; (iv) prices/rets quoted i these particulars may be subject to VAT i additio, (v) Ocklesto Bailey Ltd will ot be liable, i egligece or otherwise, for ay loss arisig from the use of these particulars. Date of particulars : Demcember 2018