High Yielding Retail and Office Investment Opportunity
Investment Summary Prominent and centrally located retail and office building... Prominent and centrally located retail and office building in Hull City Centre Hull was the City of Culture in 207, which led to a multi-million pound regeneration of the City Centre The property provides a total net internal area of 47,320 sq ft, comprising 3,869 sq ft of ground floor retail space, together with 33,45 sq ft of upper floor office space Freehold Total rental income of 234,569 per annum Part vacant offices providing the opportunity to increase the income Alternatively the upper floors offer potential for alternative use, subject to obtaining the necessary consents Offers are invited in excess of,800,000 (One Million Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a net initial yield of 2.09% after allowing for standard purchaser's costs of 6.20% Low capital value of 38 per sq ft
LOCATION SITUATION Kingston upon Hull is the regional and economic capital of East Yorkshire and the Humber region. The city supports an estimated residential population of approximately 20,000 residents with a potential catchment area within a 30 minute drive time of approximately 850,000. Hull was announced UK City of Culture in 207 and has since seen a significant level of inward investment into the city. The city has excellent road connections via the M62, M8 and M80 motorways, the latter being accessed via the Humber Bridge, which also provides access to Humberside International Airport some 6 miles to the south of the city. A main line rail service to London Kings Cross is also available from the City. Humber Port is the UK s busiest port complex and the fourth busiest in Europe. It handles 85 million tonnes of cargo annually, more than any other UK port. Humber based logistics companies ship directly to over 50 countries with more than 00 shipping lines operating regularly. P&O Ferries handle over million passengers a year on its daily service between Hull and Rotterdam/Zeebrugge. Given the city s location on the Humber energy coast and proximity to the port complex means it is well placed to become a hub for new and emerging industrials with a focus on renewable energy. Following a 30 million investment by Siemens, the city is now home to Europe s largest wind turbine manufacturing plant. HARROGATE LEEDS & BRADFORD 25 26 M62 Huddersfield A629 A658 LEEDS M62 A6 3 4 40 39 38 M 7 42 37 SHEFFIELD A6 A58 36 30 A(M) A66 A 32 Wakefield Barnsley A59 33 A638 34 34 33 32 3 A64 38 37 36 M8 Rotherham A63 34 A9 York A9 Doncaster 3 ROBIN HOOD AIRPORT A(M) 34 4 5 M8 6 36 A63 37 M80 A079 A66 Beverley A64 M62 3 38 A59 A64 A079 4 A5 HULL A5 M8 Scunthorpe M80 A63 5 HUMBERSIDE A46 A65 g Hornsea Immingham Grimsby A8 8 9 0 2 Key: Shirethorn House 2 The Deep 3 Fruit Market 4 Hull Arena 5 Kingston Retail Park 6 Princes Quay Shopping Centre 7 Paragon Interchange Bus Station St Stephen s Shopping Centre Prospect Shopping Centre House of Fraser Odeon The property is situated on the corner of Prospect Street and Spencer Street in the heart of Hull City Centre. The premises are ideally situated to benefit from the city s main retail and commercial facilities, including the railway and bus station. St Stephen s Shopping Centre, Princes Quay Shopping Centre are all within easy walking distance. 9 A079 ST STEPHEN S ADELAIDE STREET PORTER STREET NORFOLK STREET SPENCER ST 8 FERENSWAY A05 ANLABY ROAD HUMBER BRIDGE A63/M62 LISTER STREET ENGLISH STREET FREETOWN WAY 7 NORTH ST HESSLE ROAD WRIGHT STREET PROSPECT STREET 2 BROOK ST 5 FERENSWAY 0 PARAGON RAYWELL STREET REFORM STREET BAKER STREET WEST STREET SOUTH STREET ALBION STREET JAMESON STREET KING EDWARD ST PARAGON STREET OSBORNE STREET COMMERCIAL RD 4 MYTON STREET CARR LANE WATERHOUSE LANE BOND STREET 6 KINGSTON STREET JOHN STREET JARRATT STREET GRIMSTON ST GEORGE STREET DOCK STREET A63 CASTLE STREET RAILWAY STREET WELLINGTON STREET WEST NEW GEORGE STREET FREETOWN WAY QUEEN VICTORIA KINGSTON NEW GARDEN STREET PRINCES DOCK STREET POSTERNGATE HUMBER DOCK STREET CHARLOTTE ST MEWS QUEENS DOCK AVENUE GUILDHALL ROAD PARLIAMENT ST WHITEFRIARGATE DAGGER LANE ALFRED GELDER STREET OLD TOWN TRINITY TRINITY HOUSE LN SOUTH CHURCH SIDE BLANKET ROW QUEEN STREET HUMBER STREET PIER ST WILBERFORCE DRIVE 3 WELLINGTON ST NELSON ST MARKET PLACE LOWGATE HODGSON STREET NORTH WALLS SPYVEE STREET NORTH BRIDGE HIGH STREET RIVER HULL GARRISON ROAD BLACKFRIARGATE LIME STREET DOCK OFFI CE ROW 2 DRYPOOL BRIDGE TOWER STREET WITHAM A65 GREAT UNION STREET PORTS / FERRY Rotterdam Zeebrugge CITADEL WAY SOUTH BRIDGE ROAD RIVER HUMBER
DESCRIPTION The property comprises an imposing 3 storey building with retail space on the ground floor and offices on the upper 2 floors. Many of the offices and ground floor reception have recently been subject to a refurbishment scheme. There are 3 lifts servicing the premises and at the rear of the property is a car park which provides space for 4 cars. The property provides ground floor retail space of 3,869 sq ft with offices on the upper floors extending to 33,45 sq ft, providing a total floor area of 47,320 sq ft. TENANCY AND ACCOMMODATION The property is currently producing a rental income of 234,569 per annum which reflects an overall average rent of 6.37 per sq ft on the occupied space. The average rent on the offices is just 6.50 per sq ft, thus providing excellent prospects for rental growth, with a conservative ERV of 7.00 per sq ft.
TENANCY SCHEDULE The building is presently 73.6% let and through the letting of the remaining vacant offices suites, this could provide a significant increase in rental value. Floor Unit Tenant NIA Lease Lease Rent Break Rent Rent ERV ERV Comment start end review clause passing passing psf psf Ground & 2 British Heart Foundation 6,674 4/07/2006 3/07/202 4/07/209 42,000 6.29 6.00 40,044 Payment of 0,000 if break excercised. 3, 4 & 5 YH Training 6,30 /08/207 0/082022 38,69 6.30 6.30 38,69 YH Training Ltd occupy under lease units 3,4&5. Rent Commencement date is 9th Feb 208. 6 British Heart Foundation,065 0/2/202 09/2/207 5,200 4.88 7.00 7,455 Holding over - HOTs issued to BHF for new term expring on 3/07/2 at passing rent. TOB on 4/07/9. Sub total retail 3,869 85,89 86,8 st A Vacant,783 0 0.00 7.00 2,48 B Optical Express Ltd,38 /03/203 0/03/208 9,673 8.50 7.00 7,966 C Adecco (UK) Ltd,258 2/0/205 /0/2020 0,693 8.50 7.00 8,806 D Vacant,280 7.00 8,960 E Business Advice Direct 2,88 9/2/206 8/2/202 3/07/208 9,000 6.74 7.00 9,726 Deposit held of 4,750. F Igen Ltd,29 4/08/207 3/08/2020 4/08/208 6,209 5.50 7.00 7,903 If the tenant does not exercise their break option in 208, they will benefit from a 3 month rent free period. G Vacant 2,220 7.00 5,540 H Inspire 2 Independence Ltd,493 02/0/208 0/0/2025 02/0/2022 02/0/2020, 0,45 7.00 7.00 0,45 Break options are on 02/0/2022, 3 month notice periods. 02/0/2023 2nd J Vacant 2,632 0.00 7.00 8,424 K Vacant 95 0.00 5.00 4,755 R Bureau UK Recruitment Ltd,907 6/06/204 5/06/209 6/06/207 4,336 6.44 7.00 3,349 Stepped rent 3rd year 4,336 then as per review clause. S Pertemps People 5,643 0/0/204 0/0/209 35,940 6.37 7.00 39,50 Development Group Ltd T Vacant 792 0 0.00 7.00 5,544 V, W & Y Progressive Media Group Ltd 5,54 5/07/206 4/07/202 33,246 5.75 7.00 38,787 Rent year 3 onwards 37,406. 3rd Penthouse Vacant 2,866 7.00 20,062 Subtotal offices 33,45 39,548 232,255 Roof mast Arqiva Ltd 24/05/207 30/0/2023 3/0/208 3/0/208 8,202 8,202 Car park Adecco (UK) Ltd,000,000 Sub total ancillary 9,202 8,035 Totals 47,320 234,569 326,408
TENURE The property is held freehold. SITE AREA The property is supported on a site of 0.3 hectares (0.76 hectares).
VAT The property is elected for VAT and it is anticipated that the transaction will be treated as a Transfer of a Going Concern if the correct conditions of a TOGC are met. EPC Further details on the EPC ratings are available from the agents. PROPOSAL We are instructed to seek offers in excess of,800,000 (One Million, Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 2.09% after allowing for standard purchaser s costs at 6.20%, and an overall capital value of only 38 per sq ft. Upon achieving full occupancy at our opinion of ERV, we envisage that the property could produce a reversionary yield in the region of 7%. CONTACT DETAILS Ben Cooper - PPH Commercial The Hesslewood Estate Ferriby Road Hessle East Yorkshire HU3 0LG Tel: 0482 648888 Mob: 07702 67380 ben.cooper@pph-commercial.co.uk Nick Wales - Knight Frank 7th Floor Fountain Precinct Balm Green Sheffield S 2JA Tel: 04 272 9750 Mob: 07767 29353 nick.wales@knightfrank.com Important Notice. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP or PPH Commercial in the particulars or by word of mouth or in writing ("information") as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP, PPH Commercial nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, WU 8AN, where you may look at a list of members' names. Designed & produced by www.thedesignexchange.co.uk Tel: 0943 604500. February 208.