LS1 6NP Prime Freehold Convenience Store Investment with Rebased Rent Briggate Leeds 1

Transcription

1 84-87 Briggate Leeds LS1 6NP Prime Freehold Convenience Store Investment with Rebased Rent Briggate Leeds 1

2 Investment Considerations Leeds is the commercial centre of Yorkshire, and one of the UK s key retail destinations. A prime high-street property located on pedestrianised Briggate, Leeds principal retail pitch. Freehold. A substantial 10,968 sq ft (1,019 sq m) property benefiting from excellent return frontage to Briggate and The Headrow. Newly let to Tesco Stores Ltd (5A1) on a 15 year lease from 28 th November years unexpired until tenant break option in 10 th year. Rebased passing rent of 150,000 per annum ( psf Zone A). Potential redevelopment of the basement and second floor, subject to planning permission. Proposal Offers sought in excess of 2,500,000 (subject to contract and exclusive of VAT) reflecting a Net Initial Yield of 5.64%. Yields are net of purchasers costs of 6.38% Briggate Leeds 2

3 Location Leeds is a large commercial and financial centre located at the heart of the UK. The city is approximately 35 miles (56 km) north of Sheffield, 44 miles (71 km) north east of Manchester and 194 miles (312 km) north of London. Lancaster Harrogate A1(M) York Blackpool M55 Preston M6 M65 Blackburn Burnley Halifax Bradford LEEDS M1 M621 M606 M62 A1(M) Selby M62 Wakefield M62 Southport M62 Huddersfield M58 M6 M57 Liverpool Wigan M61 St Helens Warrington M66 Bury M62 M60 Middleton M60 Rochdale Manchester Stockport M1 Barnsley Rotherham Sheffield A1(M) M18 Doncaster M180 Sc M56 Ellesmere Port M53 Northwich Macclesfield Peak District National Park Chesterfield M1 Worksop Chester M6 Mansfield Road communications in Leeds are excellent, with the city strategically located in close proximity to the M1, A1 (M) and the M62. These connect with the wider national motorway network and provide direct access to London to the south, Manchester and Liverpool to the west and Newcastle upon Tyne in the north. Leeds train station is one of the busiest in the country, with services every 30 minutes to London Kings Cross (2 hours and 15 minutes), York (25 minutes) and Edinburgh (3 hours and 10 minutes). Leeds is set to benefit from the proposed HS2 train line, which will operate between London and Birmingham by 2026 and extend to Leeds and Manchester by Journey times from the redeveloped Leeds station to London will decrease to 1 hour 23 minutes. Leeds Bradford International Airport is situated 14 miles (22.5 km) to the north west of the city centre and provides direct flights to over 75 destinations. The airport currently caters for 3 million passengers annually, however this is forecast to triple by 2030, with 28m currently being invested in improving the airport s infrastructure Briggate Leeds 3

4 Retailing in Leeds Leeds Retail ranks 1st for its PROMIS Non-Food score, due to its volume and quality of retail provision, the size and affluence of the shopping population. This dominance is highlighted by the presence of a wealth of international retailers including Anthropologie, Cos, Victoria s Secret and Ralph Lauren. The prime retail pitch is focussed within Trinity Leeds, leading through to the pedestrianised Briggate and Commercial Street. the Light merion centre St Johns centre Briggate Victoria gate phase 2 Trinity Leeds was opened by Land Securities in 2013 and comprises in excess of 1 million sq ft of retail and leisure space. The scheme has brought over 40 new retail brands to Leeds, including Apple, Hollister and Victoria s Secret, as well as an Everyman Cinema and a host of restaurant operators. The scheme has since developed into not just a shopping destination, but also a major evening leisure destination. the Core victoria quarter victoria gate In 2016, Hammerson opened their Victoria Gate development, providing an additional 381,000 sq ft of additional retail and leisure space, anchored by the country s largest flagship John Lewis store outside of London. Victoria Gate compliments Hammerson s existing Victoria Quarter covered arcade, which is well-renowned for providing high end boutique fashion retailing. It is home to the first Harvey Nichols outside of London, and some of the leading designer brands such as Paul Smith, Vivienne Westwood, Louis Vuitton and Mulberry. trinity leeds Briggate Leeds 4

5 Situation The property occupies a prominent corner position on Briggate, Leeds prime high street pitch, with return frontage onto The Headrow, one of the city centre s principal bus routes. Leeds Station is located just 500 metres to the south west of the property Briggate acts as the central pedestrianised spine to the prime shopping pitch in Leeds City Centre, linking Trinity Leeds in the south to the Victoria Quarter and Victoria Gate in the north. Major retailers on Briggate include Marks and Spencer, House of Fraser, Debenhams, Top Shop, H&M, Zara and Harvey Nichols. The property benefits from close proximity to the entrance to the Victoria Quarter at the north end of Briggate. Occupiers in the immediate vicinity include Sports Direct, Samsung, Argos, HomeSense, Yorkshire Bank and Pandora. UNDER OF FER NEXT LEVE L Vacant HOUSE OF CASTLE FINE ART WIZARDRY BLADES SIZE EASYRIDE VACANT R Briggate Leeds 5

6 Demographic Profile Leeds primary catchment population is estimated at 1.06 million, ranking the city 4th of the PROMIS Centres. The estimated shopping population is 649,000, highlighting the dominance of the city. Leeds is also projected to see above average growth in population over the period The age profile of the Leeds catchment population includes a particularly high proportion of young adults, reflecting the large student population in the city of circa 64,000. In addition to the student population, Leeds expenditure is boosted by tourism with 25 million day visitors per annum, generating in excess of 650m (Visit Leeds). In addition, 1.8 million over-night trips are made, generating a further 340m. Economy The Leeds City Region, one of the core Northern Powerhouse cities, is one of the largest economies outside of London and one of the most diverse. The region has a total workforce of almost two million and a GVA of billion. Leeds has a historic strength in financial and professional services, but also has a high concentration of employment in advanced manufacturing, digital industries and education. Major employers include Royal Bank of Scotland, Lloyds, Yorkshire Bank, Coutts, Leeds Building Society, Leeds City Council, British Gas, Direct Line, Green Flag, O2 and Unilever. Day visitors 25 million PER ANNUM Primary Catchment 1.06 million (4TH OF PROMIS CENTRES) Expenditure 650 million PER ANNUM Shopping Population 642 thousand (3RD OF PROMIS CENTRES) Briggate Leeds 6

7 Description The subject property comprises a prominent corner building of concrete construction arranged over basement, ground and two upper floors. Internally, the property provides retail sales space on the ground floor, with storage and ancillary accommodation on the first floor. The basement and second floors are currently not utilised by the tenant and therefore, offer the potential for future redevelopment, subject to planning permission and the tenant s consent. The property also benefits from a second entrance on The Headrow which is currently used as a fire escape only. The property benefits from return frontage onto Briggate and The Headrow and was fitted out to a high standard by Tesco when it took occupation in Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and comprises the following Net Internal Areas: Area (sq ft) Area (sq m) Ground Floor 2, ITZA 1, Basement 2, First Floor 2, Second Floor 2, Total 10,968 1, Briggate Leeds 7

8 Tenure The property is held freehold under title number WYK285. THE HEADROW to swan STREET thornton s arcade Briggate to 96 3 to Tenancy The property is let to Tesco Stores Limited on a 15 year FRI lease from 28 th November 2017 at an initial rent of 150,000 per annum, with a tenant option to break in the 10th year (8.8 years unexpired). The rent is subject to upward only 5 yearly rent reviews to the lower of the open market rental value or in line with the Consumer Prices Index (compounded annually), collared and capped at 0% and 3% respectively. The tenant benefits from a 3 month rent free period if the break option is not served. The lease is subject to a schedule of condition Briggate Leeds 8

9 Rental Commentary We have analysed the passing rent of 150,000 per annum to reflect per sq ft ZA. With consideration to the below recent comparable evidence, this offers excellent potential for future growth: Address Tenant Transaction Date Rate ( ZA per sq ft) Briggate JD Sports OML Apr Briggate Carphone Warehouse LR Nov Briggate Footlocker OML Nov Covenant Information Tesco Stores Limited (Company Number ) is a wholly owned subsidiary of Tesco Plc, with stores in 11 different markets and the largest of the UK s big four supermarkets. Tesco is the largest retailer in the UK, with a circa 30% market share of the UK grocery market, 3,500 stores and 310,000 employees. Tesco Stores Limited has a Dun & Bradstreet rating of 5A1, representing a minimum risk. A summary of the last three years of accounts is set out below: Y/E 24/02/ s Y/E 25/02/ s Y/E 27/02/ s Sales Turnover 41,367,000 40,134,000 39,843,000 Pre-Tax Profit 417, , ,000 Net Worth 4,071, ,000 1,077, Briggate Leeds 9

10 Contacts EPC Hannah Greenland A copy of the EPC certificate is available on request Hannah.greenland@colliers.com Becky Hance Becky.hance@colliers.com Colliers International 50 George Street, London, W1U 7GA MISREPRESENTATION ACT DISCLAIMER Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. September Colliers International is the licensed trading name of Colliers International UK Plc. Company registered in England & Wales no Registered office: 50 George Street, London W1U 7GA. Designed and produced by Parer Creative. Tel January VAT The property has been elected for VAT purposes and it is expected that the investment sale will be treated as a Transfer of a Going Concern, subject to the purchaser s VAT status. Proposal Offers sought in excess of 2,500,000 (subject to contract and exclusive of VAT) reflecting a Net Initial Yield of 5.64%. Yields are net of purchasers costs of 6.38% Briggate Leeds 10