High Yielding Office Opportunity

Transcription

1 A Bilfinger Real Estate company High Yielding Office Opportunity Omega House Peel Cross Eccles New Road Salford M5 4SE

2 SCOTLAND Glasgow Edinburgh NORTHERN IRELAND Newcastle Belfast Leeds Executive Summary IRELAND Dublin WALES Cardiff Salford Manchester Birmingham ENGLAND London Bristol Single let office investment (14,483 sq ft) at Isher Business Park, Salford Excellent location just off Regent Road providing direct access to the M602 and wider motorway network. Four storey office building with 59 car parking spaces. New 5 year reversionary lease agreed to Yodel Delivery Network Ltd and guaranteed by Shop Direct Ltd providing a total unexpired term of 5.5 years. Current passing rent of 165,297 pa ( psf) and revisionary lease in April 2015 rebased to 125,000 pa ( 8.63 psf). Offers are sought in excess of 1,075,000 (One Million Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. Very low capital value of psf. This would reflect an attractive net initial yield of 14.53% and a reversion of 11.00% in April 2015, assuming acquisition costs of 5.80%.

3 OMEGA HOUSE LIVERPOOL M60/61/62 M602 SALFORD UNIVERSITY 1 MILE MEDIACITYUK SALFORD QUAYS Location & Situation 1.5 MILES CITY CENTRE Please click on maps to link to online Bing maps The city of Salford is situated in Greater Manchester, 1.5 miles to the west of Manchester city centre and 32 miles east of Liverpool. Salford has a district population of 233,900 persons (2011 Census) and a population of approximately 1 million people within a 10 km radius of the centre. Salford forms part of the Manchester conurbation and enjoys excellent road communications being situated adjacent to the M602 motorway allowing access to the regional and national motorway networks. The M60, M56, M61, M62, M66 and M67 motorways are all accessed via the M60. Salford Quays, a major mixed use urban regeneration project developed over the past 20 years and extends to circa 126 acres. Over 278,000 sq m (3 million sq ft) of office accommodation has been developed and attracted occupiers such as the BBC and ITV at MediaCity UK and is now quickly becoming a leading international hub for the creative and digital sectors. In addition the area boasts numerous leisure attractions and it is estimated that it attracts over 6 million visitors per year. Omega House is situated on Isher Business Park just off Eccles New Road at its junction with Peel Cross Road. Eccles New Road links directly to the roundabout at the start of the M602 motorway, which provides access to the M60 and M62 motorways to the west. Regent Road (A57) provides dual carriageway access into the centre of Manchester.

4 Site Plan

5 Description The property comprises a detached, modern, purpose built office building on ground and three upper floors built in The building is of steel frame construction with brick elevations with aluminium framed double glazed windows. The roof is pitched with artificial slate covering. Internally, the building provides a chevron shaped floor plate with a central service core incorporating an eight person passenger lift. Male and female WC s are provided on alternate floors with an additional disabled toilet at ground floor. There is a staff canteen to the ground floor. The offices are finished with carpeted full access raised floors, suspended ceilings with recessed lighting and perimeter hot water radiators served by two gas fired boilers located within the roof space. The tenant has installed comfort cooling throughout the property. Externally, there is parking provision for approximately 59 vehicles.

6 Accommodation The property has the following approximate net internal floor areas: Floor Sq m Sq ft Ground ,221 First ,703 Second ,747 Third ,813 Total ,483 The site provides a total of 0.22 hectares (0.54 acres).

7 Tenure The property is held on a long leasehold basis under the terms of a FRI 999 year lease commencing on 24 April The ground rent is 20 per annum. Tenancy Information The property is let in its entirety to Yodel Delivery Network Ltd and guaranteed by Shop Direct Holdings Ltd until 3 April 2020 (5.5 years unexpired). The original lease is for a term of 25 years from 4 April 1990 at a current rent of 165,297 pa ( psf). A reversionary lease has been agreed from 5 April 2015 for a further 5 year term. The rent has been a rebased to 125,000 pa ( 8.63 psf). There is an unexpired term of 5.5 years. VAT The prices quoted are exclusive but may be subjective to VAT. Covenant Information Yodel Delivery Network Limited is the UK s leading parcel delivery company. In March 2010, Home Delivery Network Limited (HDNL) now Yodel Delivery Network Limited, acquired the domestic parcel delivery business of DHL (DHL Domestic), through its wholly owned subsidiary, Parcelpoint Limited. The combined business now trades as Yodel and is the largest parcel delivery business in the UK, delivering over 135 million parcels per year. Between January and July 2012 the business moved to a fully integrated national Service Centre network of 57 sites. This move to an integrated national Service Centre network delivered a fundamental shift in the company s financial performance and has seen a full integration of the two businesses. Pre-tax losses include large restructuring and reorganisation charges hence do not reflect the underlying performance of the business. Due to consumer demand, Yodel has recently launched YodelDirect - its first ever collection and delivery service that can be accessed directly by consumers. Yodel Delivery Network Limited have a D&B rating of 4A2 and their accounts for the past three years are as follows: Year Ending ( 000 s) 30 June June June 2011 Turnover 379, , ,563 Profit (Loss) (98,297) (66,937) (131,836) before Taxes Net Worth 33,798 77,379 (163) Further information can be found at Shop Direct Limited is the UK and Ireland s leading multi-brand digital retailer, delivering more than 48 million products every year into 25 million parcels to five million active customers. Annual sales are 1.7 billion and their household name digital department stores include Very.co.uk, Littlewoods, isme and Woolworths.co.uk. Between them, they receive more than 950,000 website visits every day. Almost 80% of Shop Direct s sales are now online, with more than a quarter of those from mobile devices. Mobile traffic to their websites has increased by more than 150% over the last 12 months and continues to grow rapidly. Both Yodel Delivery Network Limited and Shop Direct Limited are subsidiaries of LW Corporation, the investment holding company of Sir David and Sir Frederick Barclay and their families. Shop Direct Limited have a D&B rating of 5A2 and their accounts for the past three years are as follows: Year Ending ( 000 s) 30 June June June 2011 Turnover 1,690,000 1,670,100 1,938,100 Profit (Loss) 6,600 (57,700) (113,900) before Taxes Net Worth 108,900 79, ,900 Further information is available at

8 EPC An Energy Performance Certificate (EPC) is available upon request or downloaded from our website Proposal Offers are sought in excess of 1,075,000 (One Million Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. This would reflect an attractive net initial yield of 14.53% and a reversion of 11.00% in April 2015, assuming acquisition costs of 5.80% Very low capital value of psf. Further information Should you wish to inspect the property or require additional information, please contact: Adam Wildig Gurminder Manak Adam Wildig Direct Dial: adam.wildig@gva.co.uk Gurminder Manak Direct Dial: gurminder.manak@gva.co.uk Print GVA, Norfolk House 7 Norfolk Street Manchester M2 1DW Save For any other investment sales please visit: gva.co.uk/investment SUBJECT TO CONTRACT October 2014

9 London West End 10 Stratton Street London W1J 8JR London City 80 Cheapside London EC2V 6EE Belfast Rose Building Third Floor 16 Howard Street Belfast BT1 6PA Birmingham 3 Brindley Place Birmingham B1 2JB Bristol St Catherine s Court Berkeley Place Bristol BS8 1BQ Cardiff One Kingsway Cardiff CF10 3AN Glasgow 206 St Vincent Street Glasgow G2 5SG Leeds City Point First Floor 29 King Street Leeds LS1 2HL Liverpool No.4 St Paul s Square Old Hall Street Liverpool L3 9SJ Manchester Norfolk House 7 Norfolk Street Manchester M2 1DW Newcastle Central Square Forth Street Newcastle upon Tyne NE1 3PJ Edinburgh Quayside House 127 Fountainbridge Edinburgh EH3 9QG Published by GVA - 10 Stratton Street, London W1J 8JR 2014 Copyright GVA GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission 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 GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.