InvictaHouse Spiningfields, Manchester A unique investment and development opportunity...
Executive Summary A prominent fully income producing short to medium term redevelopment opportunity within the heart of Manchester s Spinningfields. Extending to approximately 9,344 sq ft over basement, ground and two upper floors with 22 surface car spaces, on a site of 0.20 acres (approximately 30% site cover). Let on extremely low rents, currently amounting to 123,910 per annum a current average of just 8 per sq ft. Short term revisionary potential with total rental values approaching 200,000 per annum. A number of development scenarios are possible, including a refurbishment or extension of the existing building and the complete re-development of the site. Perfectly located just off deansgate and adjacent to 2 Hardman Street and opposite 1 Spinningfields and 3 Hardman Square, three of Manchester s signature office buildings. We are seeking offers in the region of 3.5 000 000 (Three and a Half Million Pounds), which equates to 295 psf excluding car parking, subject to contract and exclusive of VAT. Atkinson Street frontage
HSBC and Halliwells DEANSGATE Invicta House, Spinningfields BRIDGE STREET Invicta House and Royal Bank Of Scotland JOHN DALTON STREET KING STREET Royal Bank Of Scotland
Manchester Manchester is the country s fastest growing regional capital, generating nearly a third of the regions wealth, equal to Leeds, Liverpool and Sheffield combined. The City is regarded as the UK s largest financial centre outside London and is the administrative centre for the North West region. The Avenue, Allied London s new fashion quarter is now under construction and due for completion in December 2008. A new landmark building is being specifically created for the flagship Armani store on Spinningfields Square, linking The Avenue to Deansgate and Manchester s existing retail offer. Greater Manchester is home to a population of 2.6 million and accounts for 30 billion of the region s GDP. Over 25% of the UK s motorway network runs through the Manchester conurbation, placing it within two hours drive time of approximately 60% of the UK population. The City is also served by the fastest growing UK airport serving over 226 destinations on all five continents. Situation Invicta House is situated in the south eastern quarter of Spinningfields, 25 metres from Deansgate with access from Atkinson Street. The buildings rear elevations face onto Hardman Street. The Property is immediately adjacent to 2 Hardman Street and overlooks 1 Spinningfields, the new RBS headquarters building. Spinningfields Spinningfields has become Manchester s principal financial and professional services destination and has redefined the City s prime commercial core. It is one of Europe s largest and most successful commercial developments providing high quality commercial, civic, residential, hotel, leisure and retail space in a carefully planned and managed environment. Invicta House has its principal entrance onto Atkinson Street. The large surface car park is accessed directly off Hardman Street which connects Deansgate to Hardman square at the centre of the Spinningfields development. This thriving business district comprises over 20 signature buildings set within six acres of public realm. 2.37 million sq ft of flexible new office space, is planned with 1.55 million sq ft already complete, housing over 25,000 workers. 400,000 sq ft of retail and leisure floor space is now being created in the Spinningfields area and will provide a full range of services to this commercial quarter. Current occupiers include Wagamama, Café Rouge, Shimla Pinks, Bar Ha Ha, Strada, Gourmet Burger Kitchen, Carluccios, Giraffe, Zizzi and Eat.
Description The property comprises a red brick building below a pitched slate roof designed in an L shaped configuration on basement, ground and two upper floors. The building has its principal entrance on Atkinson Street overlooking Sunlight House. The building sits on a site of 0.20 acres and the rear elevations overlook a 22 space car park which is accessed from Hardman Street via Tivoli Street. The property occupies a site extending to 0.20 acres. Internally the accommodation extending to approximately 9,344 sq ft provides a number of office suites of varying sizes. The basement accommodation, that has natural light, is occupied as offices and benefit from its own independent entrance off Atkinson Street. The upper office floors share a common entrance lobby with male and female toilets on ground and first floors. There is a secondary entrance leading onto the car park to the rear. Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice and provides the following approximate net internal areas: Description Sq Ft Basement 1,684 Ground Floor 2,208 First Floor 2,797 Second Floor 2,655 Total 9,344 A surfaced car park is provided to the rear of the property providing 22 car spaces. Hardman Street
Tenancy Tenant Information VIP Courier International Limited Telecommunications SECOND FLOOR Flix Manchester Judge & Partners Solicitors www.judgeandpartners.co.uk Gleeson Building Limited Construction www.gleeson-homes.co.uk Flix Manchester GWICP FLIX Manchester Post production facilities www.flixfacilities.co.uk FIRST FLOOR GWICP Architects www.gwicparchitects.co.uk Flix Manchester Flix Manchester GROUND FLOOR Gleeson Building Ltd Judge & Partners BASEMENT VIP Courier 22 CAR SPACES Atkinson Street
Market Commentary The Manchester City region contributes 51% to the North West s total economic output. Over 50 million of Gross Value Added is generated annually with economic growth outstripping the rest of the UK, helping to underwrite the importance of Manchester to both the region and the UK as a whole. Manchester s economy is set to strengthen over the next decade with growth forecast to continue at an annual average of 2.1%, positioning the Manchester City region in the upper quartile of European micro economies. OffIce Supply and Demand Currently around 1,500,000 sq ft of office accommodation is under construction within the City Centre. Approximately 80% of this supply is Grade A product. Spinningfields continues to dominate the City Centre s development pipeline. Over 1.55 million sq ft of office accommodation has already been completed with the largest speculative offce building outside London, 3 Hardman Street (350,000 sq ft), understood to be almost fully let prior to completion in Autumn this year. The remaining development pipeline is stable with the majority consisting of city fringe schemes including Central Spine, Piccadilly Place, Exchange Greengate and the former Co-Op site off Corporation Street. Whilst Spinningfields dominates the larger floor plate market, there are very few small floor plate City Centre Grade A buildings available or in the pipeline. Blue Cube are due to complete the 103,000 sq ft Chancery Place in December 2008 with numerous floors pre-let or under offer at rents in excess of 30 per sq ft. In the immediate vicinity to Invicta Ventnor Group are developing a 50,000 sq ft, 10 Storey office building fronting Hardman Square, which is part let to Allied Irish Bank. Over 2 million sq ft of office requirements are circulating within the Manchester market, and it is likely that a number of larger requirements could be satisfied within this calender year. Manchester posted another year of average take-up in 2007, achieving just over 1 million sq ft. Analysis of last years take-up figures illustrates that 85% of the total number of transactions were for space below 10,000 sq ft, reflecting the importance of the small floor plate market. Rental Value The general tone for rents within Spinningfields is between 25-30 psf. Rents in excess of these levels have been achieved. If considered for comprehensive redevelopment, we believe that the Invicta site can command rental values within this range. View from top of 3 Hardman s Street
Tenure Freehold. VAT VAT will be payable on the purchase price. Further Information To download further information from our website www.christopherdee.co.uk please call to recieve your login details. This property is held under the special projects section. To discuss this opportunity or arrange an inspection, please contact: Proposal Our client is seeking offers in the region of 3,500,000 for their freehold interest. At this level the capital value excluding the car spaces breaks back to under 295 psf, comparable to other freehold deals and vacant possesion purchases. The inherent value of the site under writes the base value. SAT NAV: M3 3HH Christopher Dee 40 Peter Street Manchester M2 5GP Chris Jones Tel: 0161 831 5880 Email: cj@christopherdee.co.uk Mark Powell Tel: 0161 831 5864 Email: mp@christopherdee.co.uk MISREPRESENTATION ACT : All Agents and for the vendors or lessors of this property whose agents they are, give notice that (i) these particulars are produced in good faith, are set out as a general guide only and do not constitute any part of an offer or contract. They are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves as to the correctness of each of them. (ii) no person in the employment of all agents has any authority to make or give any representation or warranty in relation to this property. Designed & Produced by 90 Degrees Design & Marketing Ltd. July 2008. Tel 0161 833 1890.