WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

Transcription

1 WELL SECURED HIGH YIELDING CITY CENTRE OFFICE INVESTMENT WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

2 INVESTMENT CONSIDERATIONS Prominent city centre location adjacent to Trinity Walk Shopping Centre and in close proximity to all city centre amenities. Landmark office building comprising 51,935 sq ft (4, sq m) over ground, basement and seven upper floors. The property has large, easily divisible floor plates of approximately 6,575 sq ft ( sq m). Fully let to Fujitsu Services Limited (5A1) and NHS Business Services Authority, providing a highly secure income profile. AWULT of 6.05 years to expiry. Total passing rent of 619,096 per annum equating to an average passing rent of per sq ft (excludes additional income from telephone masts). Both tenants have been in occupation for in excess of 25 years. Freehold. Offers sought in excess of 6,100,000 (Six Million, One Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level represents a net initial yield of 9.52%, net of purchaser s costs of 6.63% and equates to a low capital value of 117 per sq ft. WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

3 A1(M) LOCATION Wakefield is an attractive cathedral city situated on the eastern edge of the Pennines in West Yorkshire. The city lies 9 miles (15 km) south east of Leeds, 42 miles (68 km) north east of Manchester and 25 miles (40 km) north of Sheffield. The city is strategically located at the intersection of the M1 and M62 motorways providing excellent accessibility to the wider national motorway network. The M1 motorway is located 2.5 miles (4 km) to the west and provides access to Leeds and the A1 (M) to the north, and to Sheffield and the Midlands to the south. The M1 also provides access to the M62 motorway, 4 miles (6 km) to the north of the city, linking with Liverpool and Manchester in the west and Hull in the east. Wakefield also benefits from high quality rail links throughout the region and nationally. Wakefield Westgate is a brand new, state-of-the-art railway station situated on the London to Leeds East Coast Mainline and benefits from regular direct services to many major UK towns including Doncaster, Grantham and Peterborough. The station was redeveloped as part of the Merchant Gate mixed use scheme at a cost of 8m and has an annual passenger flow of 2.2 million people. Wakefield Kirkgate predominantly serves the regional network and is situated on the Hallam, Pontefract and Huddersfield lines. A680 M65 Burnley A56 M66 A58 A58 M60 A646 Rochdale MANCHESTER A6033 M62 A627(M) M60 A6018 A646 A629 Halifax M62 Bradford Huddersfield A629 A628 LEEDS M1 M621 M62 M62 M1 A642 A637 WAKEFIELD Barnsley Pontefract A635 A629 M1 A1(M) A1 A628 A1(M) Direct Fastest Train Journey Times Leeds Doncaster Sheffield Huddersfield Grantham 14 minutes 17 minutes 27 minutes 33 minutes 49 minutes M60 M56 Wilmslow Stockport A34 A523 A6 Peak District A61 SHEFFIELD Rotherham M1 M18 London King s Cross 1 hour 58 minutes M6 A538 A623 A61 Leeds Bradford Airport is located approximately 17 miles (27 km) to the north west of Wakefield. In addition, Robin Hood (Doncaster) and Manchester airports are located 37 miles (60 km) to the south east and 58 miles (93 km) to the south west of Wakefield, respectively. Macclesfield Buxton The city s population is 77,512 with a total primary catchment population of 314,000 (source: Promis) and is projected to see growth of 4% over the period Wakefield has been designated as a regeneration city and is one of the UK s top locations for business growth. The most significant investment in the city centre in the past 20 years was the development of the 500,000 sq ft partially enclosed shopping centre, Trinity Walk, which is located next to the subject property. In addition to Trinity Walk, a further 240 million of new development is underway throughout the city centre including Merchant Gate, the 35m Hepworth Art Gallery and the 100,000 sq ft mixed use Waterfront development. Wakefield Market Sovereign Centros, owners of Trinity Walk Shopping Centre, have agreed to buy Wakefield Market which is located directly opposite the subject property. There are proposals to develop a nine screen cinema (to be occupied by The Light) together with seven restaurant units which will further enhance the immediate location. Completion of the development is anticipated in autumn Wakefield One Wakefield Cathedral WELL SECURED HIGH YIELDING CITY CENTRE OFFICE INVESTMENT

4 SITUATION Wakefield House is prominently located in the heart of the city centre and in close proximity to all city centre amenities. Trinity Walk shopping centre, Wakefield Bus Station and Wakefield Market are immediately adjacent to the subject property which sits on an island site and is accessed from Craven Street. The A61 ring road is located 100m to the north providing access to Leeds in the north and Doncaster to the south east. Wakefield Westgate and Wakefield Kirkgate railway stations are situated 750m and 950m to the west and south respectively. BALNE LANE Wakefield Westgate Wakefield College Merchant Gate MULBERRY WAY A650 BELL STREET Wakefield One BOND STREET BURTON ST DRURY LANE WENTWORTH TERR County Hall CLIFF PARADE Theatre SMYTH STREET Police HQ LEEDS RD Town Hall Museum WESTGATE WESTGATE WOOD STREET MARKET STREET A61 NORTHGATE MARYGATE QUEEN STREET SAVILLE ST Bus & Coach Station Market BULL RING NORTHGATE Wakefield Cathedral Ridings Shopping Centre A61 WESTMORLAND ST THE SPRINGS KIRKGATE GEORGE STREET UNION ST BOROUGH RD BROOK STREET SUBJECT PROPERTY TEALL WAY Trinity Walk Shopping Centre GEORGE STREET KIRKGATE MARSH WAY A61 RETAIL PROVISION The 500,000 sq ft Trinity Walk Shopping Centre opened in 2011 and is considered the prime retail and leisure destination in Wakefield. The centre benefits from 957 car parking spaces and national retailers include Sainsbury s, Debenhams, Next, Topshop and H&M. The centre recorded its record year of footfall in 2015 with around million shopping visits, up 4% on The 345,000 sq ft Ridings Shopping Centre opened in 1983 and is home to a mixture of department stores, high street retailers and a food court. The centre benefits from 3 separate car parks providing 1,100 spaces. National retailers include M&S, TK Maxx, The Carphone Warehouse, Boots, Primark, WH Smith, Morrison s and Clarks. Merchant Gate The 80m Merchant Gate scheme, located adjacent to Wakefield Westgate railway station, is a modern mixed use development comprising 37,670 sq ft of Grade A office accommodation (achieving rents of circa per sq ft), 30,000 sq ft of retail and leisure accommodation and 66 residential apartments. The development also includes the new council offices, known as Wakefield One, which incorporates a museum, library, business lounge and a free start-up business consultancy service. WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

5 A61 MARSH WAY SUBJECT PROPERTY Trinity Walk Shopping Centre Wakefield Cathedral LEEDS ROAD Wakefield Market Kirkgate The Ridings Shopping Centre Bus Station WELL SECURED HIGH YIELDING CITY CENTRE OFFICE INVESTMENT

6 DESCRIPTION Wakefield House is a landmark office property constructed in The building extends to 51,935 sq ft (4, sq m) over ground, basement and seven upper floors. The property has large, easily divisible rectangular floor plates of approximately 6,575 sq ft ( sq m). The property benefits from a dedicated reception on the ground floor, two 13 person passenger lifts and male/female W/C s on alternate floors. There are also two staff canteens on the ground and fourth floors. The common parts are currently being refurbished by the landlord. The works are scheduled to complete by November 2016 and includes new carpets and redecoration works. ACCOMMODATION The property has been measured in accordance with the IPMS 3 RICS Property Measurement (1st Edition) and comprises the following net internal areas: Demise Area (sq ft) Area (sq m) Ground Floor 5, First Floor 6, Second Floor 6, Third Floor 6, Fourth Floor 6, Fifth Floor 6, Sixth Floor 6, Seventh Floor 6, TOTAL 51,935 4, The property sits on a site of 0.74 acres (0.3 hectares) and provides car parking for 42 vehicles. WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

7 TENANCY The property is let to two tenants in accordance with the tenancy schedule below providing a total rental income of 619,096 per annum. The AWULT to expiry is 6.05 years. The vendor will top up any outstanding rent free periods. Floor Tenant Area Lease Next Break Current Rent Lease Expiry Sq Ft Sq M Start Review Option p.a. psf Comments Ground - Third Floors Fujitsu Services Limited 25,635 2, /08/03 05/08/18-04/08/23 286, Includes use of 25 car parking spaces. Current 15 year lease expires 04/08/2018. Reversionary lease for 5 years from 05/08/2018. Fourth Floor Fifth Floor NHS Business Services Authority NHS Business Services Authority 6, /11/ /11/20 73, , /11/ /11/20 74, Sixth - Seventh Floor Fujitsu Services Limited 13,150 1, /08/03 05/08/18-04/08/23 150, x Car Park NHS Business Services Space Authority /06/14 - Rolling Sub-Total 51,935 4, ,600 Premises occupied by Prescription Pricing Authority. Service charge capped at 33k + VAT ( 5.00 psf) subject to RPI increase. Lease includes 1 car parking space. The tenant has been granted a 12 month half rent period from 25/03/2017 which will be topped up by the vendor. Premises occupied by Prescription Pricing Authority. Service charge capped at 33k + VAT ( 5.00 psf) subject to RPI increase. Lease includes 2 car parking spaces. The tenant has been granted a 12 month half rent period from 25/03/2017 which will be topped up by the vendor. Includes use of 13 car parking spaces. Current 15 year lease expires 04/08/2018. Reversionary lease for 5 years from 05/08/2018. Car parking licence determinable by either party subject to 1 months notice. Roof Arquiva Limited /07/14 29/07/18 28/07/19 28/07/26 21,000 - Mutual break option on 29/07/19 on not less than 12 months written notice. Rent is apportioned to Base Equipment 10k pa and Additional Equipment 11k pa. Additional equipment is fixed for the first two years. Thereafter the rent for this equipment can be reduced or increased by 1,000 per Unit added or removed. Assigned to Arquiva Ltd from EE Ltd & Hutchinson 3G UK Ltd on 26/06/2015. Roof Telefonica UK Ltd /03/ /03/14 12,495 - Holding over. Rent reviewed annually to the higher of OMV or RPI. New lease agreed at 14k with CTIL for 15 years with tenant 5 year break on 12 months notice. LL redevelopment break at 12 months notice. Substation Northern Power Grid (Yorkshire) /02/ /01/ year lease at a peppercorn rent if demanded. Sub-Total 33,496 Total 51,935 4, ,096 WELL SECURED HIGH YIELDING CITY CENTRE OFFICE INVESTMENT

8 TENURE The property is held freehold. SERVICE CHARGE The service charge for the year ending 31st March 2016 totalled 224, representing 4.33 per sq ft. The budget for the year ending 31st March 2017 is 253,825 representing 4.89 per sq ft. TENANT COVENANT NHS Business Services Authority The NHS Business Services Authority is considered an undoubted covenant. Fujitsu Services Ltd Fujitsu Services Ltd was incorporated over 100 years ago and specialises in providing ICT services. Fujitsu Services Ltd acts as a holding company for certain other companies owned by its immediate parent, Fujitsu Services Holdings Plc with the ultimate parent being Fujitsu Ltd. Fujitsu Ltd, a fully quoted public company incorporated in Japan, is one of the leading ICT service businesses in Europe, the Middle East and Africa employing over 14,000 employees. Fujitsu specialises in IT infrastructure management and outsourcing across desktop, networking and data centre environments. The company has key contracts within the private and public sector, including the Ministry of Defence. For more information, please refer to Fujitsu Services Ltd are rated 5A1 by Dun & Bradstreet representing a minimum risk of business failure. For the past three years they have reported the following figures: 31 Mar 2015 (000 s) 31 Mar 2014 (000 s) 31 Mar 2013 (000 s) Sales Turnover 1,749,000 1,655,200 1,538,400 Profit Before Taxes 87,900 77,900 14,900 Tangible Net Worth 341,900 52, ,400 WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU

9 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). ENERGY PERFORMANCE CERTIFICATE The property has an EPC rating of C(87). A copy of the EPC is available in the Lewis Ellis dataroom. DATA ROOM There is a Lewis Ellis dataroom for the property which contains copies of the leases, title plan, service charge information and EPC. Access can be obtained via the current sales page on the Lewis Ellis website WELL SECURED HIGH YIELDING CITY CENTRE OFFICE INVESTMENT

10 PROPOSAL We are seeking offers in excess of 6,100,000 (Six Million, One Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.52%, after deduction of the usual purchaser s costs of 6.63%, equating to a low capital value of 117 per sq ft. FURTHER INFORMATION Should you require further information or wish to view the property please contact either: John Ellison Tel: Mob: jellison@lewisellis.co.uk James Caddick Tel: Mob: jcaddick@lewisellis.co.uk David Kos Tel: Mob: dkos@lewisellis.co.uk WAKEFIELD HOUSE BOROUGH ROAD, WAKEFIELD, WEST YORKSHIRE, WF1 1FU Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: November 2016.