HIGH YIELDING FREEHOLD OFFICE INVESTMENT WITH POTENTIAL ALTERNATIVE USES The Old Palace Little St John Street Chester, Cheshire CH1 1RB
INVESTMENT SUMMARY Originally built in 1751 for the Bishop of Chester, this magnificent Grade II* listed building which overlooks the River Dee later became a YMCA Hostel before its current use as office HQ for Elegant Resorts Limited. Offering approximately 17,000 sqft of accommodation and over 100 car parking spaces on a site of 0.825 acres the property, let to Elegant Resorts Limited until 23 June 2013, offers a rare opportunity to purchase one of the city s historic freehold buildings. We believe the property is suitable for alternative uses including residential, hotel and educational, subject to securing planning consents for change of use. We have been instructed by our clients to seek offers in excess of 2,410,000 (Two Million, Four Hundred and Ten Thousand Pounds) which, based upon the current income, would offer a purchaser an attractive net initial yield of 10% after purchaser s costs at 5.8%.
LOCATION The North LIVERPOOL M6 M62 M61 A540 MANCHESTER M60 A5116 Victoria Road A56 Station St Chester Station M53 North Wales A55 CHESTER M56 M6 The South Canal St SAINT OSWALDS WAY City St A5268 A51 A548 A5268 Princess St Northgate St Town Hall Watergate St Bridge St Cathedral Eastgate St PEPPER ST Frodsham St Ampitheatre Souter s Ln Queen St Foregate St A5268 Little Saint John Street Grosvenor Park Nuns Rd The Groves A483 Chester is an attractive and affluent historical cathedral city, an important tourist destination and the administrative centre for the county of Cheshire. Chester is located approximately 72 km (45 miles) south west of Manchester and 21 km (13 miles) south of Liverpool. Chester benefits from excellent road communication links, with the M53 motorway accessed via junction 12, situated approximately 5km (3 miles) to the east. In turn the M53 provides direct access to the Wirral in the north west, the M56 motorway and the national motorway network via the M6. In addition, the A55 (coast road) provide access to North Wales. Manchester International Airport is situated approximately 48 km (30 miles) to the east and Liverpool s John Lennon Airport situated 39 km (24 miles) to the north, both service the City. Rail access is via Crewe to London Euston (2 hours 20 minutes), Liverpool Lime Street (45 minutes) and Manchester Oxford Road (1 hour 10 minutes).
SITUATION RIVER DEE The property is situated within 100m of Chester city centre and is accessed via Little St John Street. The immediate vicinity is one of the most culturally and historically important areas of the city being home to the original Roman amphitheatre, the Handbridge over the River Dee and St Johns Church. Little St John Street is accessed directly off Pepper Street (A5268) which forms the southern part of the inner ring road which connects with the A483 to the west and the A51 to the east enabling convenient access to all parts of Chester and the local and national motorway networks. The River Dee runs to the south of the site and forms an important tourist and leisure destination. The Groves runs along the banks of the River Dee and provides a pleasant pedestrian walking environment allowing access to the river tours and restaurant which populate the bank. Surrounding occupiers include the Chester Business Centre, West Cheshire and North Wales Chamber of Commerce, Chester Crown Court, the Cheshire Military Museum and a new Travelodge Hotel situated just off Pepper Street to the north.
DESCRIPTION The property comprises a three storey period (Grade II* listed) property originally built we understand in 1751. The property has been converted into an office use with specification including solid floors and ceilings combined with perimeter trunking. Part of the property has been sub-let to provide an independent office building. Internally the property boasts an impressive reception area and has many original features which have been carefully restored and maintained. In general the property provides cellular accommodation accessed off the central stairwell areas. Externally the property is set in its own landscaped grounds and provides parking for over 100 vehicles. Access can be gained via The Groves leading directly onto the banks of the River Dee. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a Net Internal Area basis (NIA). The property provides in total 16,990 sqft (1,578.60 sqm) and a full floor by floor break down can be found on the tenancy scheduled below. Main Building FLOOR SQFT SQM Basement 1,942 181 Ground 4,270 397 First 4,160 386 Second 3,820 355 TOTAL 14,192 1,319 Annexe FLOOR SQFT SQM Ground 865 80.4 First 903 83.9 Second 1,030 95.3 TOTAL 2,798 259.6 OVERALL 16,990 1,578.60
SITE AREA The property occupies a site of approximately 0.825 acres (0.334 Ha). Indicative ground floor plan. Other floors available on request.
TENANCY The property is let to Elegant Resorts Limited for a term of 15 years from 24 June 1998 on full repairing and insuring terms at a current rent of 255,000 per annum. COVENANT INFORMATION Elegant Resorts Limited are a private limited company established in 1988 in Chester who provide luxury holiday packages to the upper end market. Further information on the company can be found at their web page www.elegantresorts.co.uk. The company currently have a D&B rating of 3A1 with the risk indicator representing a minimum risk of business failure. The company for the year ending 30 September 2010 reported a turnover of 42,312,000, pre-tax profits of 1,373,000 and a net worth of 8,875,000. In 2008 the company was purchased by Thomas Cook with the immediate parent company of Elegant Resorts being Thomas Cook UK Limited and the ultimate global parent company being Thomas Cook Group plc. TENURE The property is held freehold. PLANNING We believe the property offers redevelopment potential to create high value alternative uses subject to obtaining relevant planning consents. The property falls under the Chester City Council local plan and is governed by policies: CU3 EC3 and EC14 ENV15 and ENV26 In essence development in the local area is permitted but most look to enhance/safeguard its cultural/ historical important and must not affect the areas quality and scale. The Old Palace itself is Grade II* listed and the walls of the garden are Grade II listed. Further detail can be supplied upon request. We would recommend that interested parties make their own planning enquiries directly with the local authority. PROPOSAL We have been instructed by our clients to seek offers in excess of 2,410,000 (Two Million, Four Hundred and Ten Thousand Pounds) which offers a purchaser an attractive net initial yield of 10% after purchaser s costs at 5.8%. FURTHER INFORMATION For further information or an appointment to view please contact the joint agents: DAVID WINTERBOTTOM 0161 956 4103 david.winterbottom@gva.co.uk JAMIE MOFFATT 0151 242 3042 jamie.moffatt@masonowen.com GURMINDER MANAK 0161 956 4105 gurminder.manak@gva.co.uk ANDREW SCOTT 0151 242 3043 andrew.scott@masonowen.com GVA is the trading name of GVA Grimley Limited. 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 774359. 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. SEPTEMBER 2011. DESIGNED AND PRODUCED BY ALEXANDER MACGREGOR LTD. WWW. ALEXANDERMACGREGOR.CO.UK