Exchange Building Quayside

Transcription

1 Exchange Building 1 Exchange Building Quayside Newcastle Upon Tyne NE1 3AE Prime freehold hotel and leisure investment

2 Exchange Building 2 Investment Summary Prime City Centre Mixed Use Investment Freehold 8,803 sq ft Let against the secure covenants of Premier Inn, Bar 38 (Spirit Group) and Slug & lettuce Grade 2 listed 1,046,25 per annum Seeking offers in excess of 20,000,000 which reflects a net initial yield of 4.%

3 Exchange Building 3 TYNE BRIDGE RIVER TYNE SAGE GATESHEAD

4 Exchange Building 4 Location Newcastle is the commercial and administrative capital of the North East with a population of 280,200 and some 43,000 students across the 2 Universities in the City (University of Newcastle and Northumbria University). Newcastle is approximately 286 miles north of London, 5 miles north of Leeds, 3 miles from Middlesbrough and 14 miles north west of Sunderland. The City is very well served with public transport with a direct train to London s King Cross (2 hours and 50 minutes) and Edinburgh (1 hour 30 mins). The Tyne and Wear metro system runs throughout Tyneside providing access to Newcastle Airport, Tynemouth, Whitley Bay, Gateshead and South Shields The City Centre has an extensive retail provision of nearly 2.2 million square feet with 2 major shopping centres being MetroCentre and Eldon Square Shopping Centre. Newcastle is ranked 6th out of the top 100 PROMIS centres in both spending available and the number of retailers.

5 Exchange Building 5 SANDYFORD ROAD Situation LEAZES PARK RICHARDSON ROAD ST THOMAS STREET QUEEN VICTORIA ROAD UNIVERSITY Haymarket B1318 GREAT NORTH ROAD ST MARY S PLACE CITY HALL NORTHUMBRIA UNIVERSITY CITY CAMPUS WARWICK ST The property is adjacent to the historic Tyne Bridge occupying a prominent position on the Quayside overlooking the River Tyne. The fabric of the surrounding areas has been enhanced dramatically over the last 30 years with the redevelopments of East Quayside and Trinity Gardens. The area is very well populated with bars, restaurants, nightclubs and hotels but is also a thriving business location with companies such as Bond Dickinson, RBS, Barclays Bank, Aecorn, The Crown Prosecution Service and Maersk Shipping all having offices there. A18 WELLINGTON STREET ST. JAMES PARK ST JAMES BLVD LEAZERS TERRACE STRAWBERRY PLACE St James WESTGATE ROAD STOWELL ST THE GATE NEWGATE STREET O2 ACADEMY OLD ELDON SQUARE BLACKETT ST Monument NELSON ST GRAINGER MARKET BIGG MARKET HIGH BRIDGE GREY STREET PILGRIM STREET A186 A167(M) Manors MANORS A13 Exchange Building STODDART STREET WATERLOO ST TIMES SQUARE NEVILLE STREET CENTRAL FORTH ST Central WESTGATE ROAD ST NICHOLAS ST CASTLE SANDHILL RIVERSIDE A167(M) TYNE BRIDGE QUAYSIDE CITY MARINA SAGE GATESHEAD BALTIC CENTRE FOR CONTEMPORARY ART CLOSE GATESHEAD COLLEGE RIVER TYNE

6 Exchange Building 6 Description Exchange Buildings is a Grade 2 listed building built in 1866 of ashlar sandstone construction. The upper floors provide 152 bedroom hotel with 32 car parking spaces at basement level whilst the ground floor comprises the hotel reception and 2 bar / restaurants. The Slug & Lettuce occupies the front section of the property with fantastic views over the river. Ancillary storage and kitchen facilities are in the basement. The bar has been substantially refurbished. Bar 38 is a popular nightclub fronting Quay Street which is popular with A3 including the Bridge Tavern and Micro Brewery. Kitchen, cellar and staff areas are situated at ground floor level.

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8 Exchange Building 8 The Hotel Bar 38 Slug & Lettuce The hotel comprises some 82,22 sq ft and is leased to Premier Inn Hotels Limited (t/a Premier Inn) and is arranged over ground and five upper floors around a central courtyard. The hotel has the following amenities: 32 space basement car park 2 x 10 person passenger lift and 1 x 4 person passenger lift 3 meeting / conference rooms with capacity for 50 delegates Fully licensed on site bar and Thyme restaurant The ground floor of the property is let to Spirit Group Retail Ltd on assignment from Scottish & Newcastle Ltd (t/a Bar 38) and is accessed via Lombard Street. The bar which has been refurbished to a high standard is extremely popular with Newcastle s student population. The Stonegate Pub Company Ltd t/a Slug and Lettuce occupy the ground and lower ground floor of the property accessed via the Quayside entrance of the property. The Slug and Lettuce benefits from views over the River Tyne and has the benefit of outdoor seating.

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10 Exchange Building 10 Tenancy Schedule Tenant Lease Unexpired Term Rent (per annum) Premier Inn Hotels Ltd 35 years from years 756, 25 82,22 7,645 August 201 and then 5 yearly Stonegate Pub Company Ltd 25 years from plus reversionary lease expiring Areas (sq ft) 24 years 110,000 GF 4,510 B 2,365 Areas (sq m) GF 41 B 220 Review March 2020 and then 5 yearly upward only Spirit Group Retail Ltd 35 years from years 180,000,636 August 201 and then 5 yearly Covenants Premier Inn Hotels Ltd is part of the Whitbread Group which has built some of the UK s most successful hospitality brands including Premier Inn, Costa, Beefeater and Brewers Fayre. Turnover for the year ending 2016 was 743.2m ( m) with net profits of 255.4m ( m). Occupancy was 80.2% Slug & lettuce Pub Company Limited is owned by Stonegate Pub Company which owns and operates in excess of 500 pubs and bars throughout the UK and is the fourth largest managed pub operator in the UK. Turnover for year ending 2015 was 561.6m ( m) with pre-tax profits of 8.37m ( m) Spirit Group Retail Ltd was acquired on 23rd June No turnover or profit figures have been disclosed but at the balance sheet date (1st May 2016) the company had net assets of 64,705,000

11 27 to 31 Exchange Building 11 Tenure Freehold. de George Stairs 7 Akenside 5 House PH 3 Cale Cross (site of) 2 Phoenix House 4 PH AKENSIDE HILL Car Park QUEEN 12 FB to 11 Cathedral Chambers STREET 17 to to Court Anchor KING STREET 5 8 Blue Plummer Chare 10 1 BROAD GARTH Peppercorn Court 4 to 7 1 to 4 to 11 1 to 3 8 Broadgarth Fenwick's Entry House 10 2 Three Indian Kings House Trinity Chare Custom House Live Works 3 TCB Coronation Buildings Baltic Chamber PH 63 (P Side Theatre 1 to to Derwentwater Chambers PH PH 10 to 15 Lombard House 4 to 8 LOMBARD STREET Lifts Hotel Town Wall Eldon Chambers (course of) 23 Bollards Landing Stage e SANDHILL TCBs Lifts QUAYSIDE WATERGATE Posts Guildhall FB Mean High Water & Mean Low Water 57 5 H Watergate Buildings Post Bollard Bollard MLW Car Park Bollards Outfall 60 Aberdeen Wharf PC Bollard Bollard Bo Bridge (si Chapel (it f) T B id Not to scale. For identification purposes only. This plan is based upon the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office. Crown Copyright reserved

12 Exchange Building 12 Proposal Offers are invited in the region of 20,000,000 for our client s freehold interest. This equates to an attractive net initial yield of 4.% and a capital value 243psf. Contact Mark Hoffman +44 (0) mark@rib.co.uk Nicholas Silver +44 (0) nicholas@rib.co.uk Misrepresentation Act 167 These particulars are intended only to give a fair description of the property and do not form the basis of a contract or any part thereof. These descriptions and all other information are believed to be correct but their accuracy is no way guaranteed. June 2017 (Q3755)