BARCLAYS BANK - Allsop

NEW 15 YEAR LEASE WITHOUT BREAKS

BARCLAYS BANKST HELIER, JERSEY

PRIME FREEHOLD BANK INVESTMENT NEW 15 YEAR LEASE WITHOUT BREAKS 3 YEARLY UNCAPPED RPI RENT REVIEWS

GROUND & BASEMENT 1 & 3 BROAD STREET & 11-13 LIBRARY PLACE, JE4 8NE

INVESTMENT CONSIDERATIONS PROPOSALOffers are sought in excess of £5,140,000 (Five million, One Hundred and Forty Thousand Pounds) subject to contract and exclusive of GST (5%). This equates to an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 6.20%.

Assuming an increase based on Jersey’s March 2019 – March 2020 RPI of 2.7%, a purchase at this level gives a reversionary yield of:

Year Rent NIY2023 £323,067 5.95%

2026 £347,908 6.45%

2029 £374,658 6.99%

2032 £403,466 7.57%

Ground and basement only, measuring 12,851 sq ft

Services retail, business and ‘Premier’ Banking customers

Barclays’ only retail branch on the Island; benefiting from a recent comprehensive refurbishment

Freehold

New lease for a term of 15 years at a rent of £300,000 per annum

Barclays have been in occupation for over 100 years

Undoubted covenant of Barclays Bank Plc

Heart of St Helier Town Centre, Jersey, Britain’s largest ‘offshore’ financial centre

Annually compounded three yearly uncapped Jersey RPI rent reviews

Jersey RPI for the last 3 years has averaged an annual increase of 3.3%, which is higher than the UK.

ST HELIER

St Helier is the capital of Jersey, home to approximately 31% of the Island’s entire population and virtually all of the Island’s prime retail and office stock. The town has a population of approximately 33,500 and has seen considerable public and private sector development in the last two decades.

The town benefits from excellent road communications being the focal point of the Island’s road network. La Route de la Liberation runs through the centre of the town and provides access to the west side of the Island and Jersey’s International Airport via the A1 and A2. The A8 and A9 are located to the north of the town and connect the town with the Island’s northern Parishes and coastline. The A4 is located to the south of the town which links to the east side of the Island along its coastal shoreline.

LOCATION

Jersey is a British Crown dependency and an archipelago located in the English Channel approximately 14 miles off the north west coast of France and 85 miles from the south coast of England. Jersey is part of the British Isles but is self-governing and is known as Britain’s largest ‘offshore’ financial centre operating within its own financial and legal systems – independent of both the UK and The European Union. It is the largest of the Channel Islands and its local economy revolves largely around the finance and professional advisory industries.

Jersey benefits from excellent communications to both the UK and Europe:

Jersey Airport is located 5 miles from St Helier. Journey times from London Gatwick and London City airports are 1 hour and 1 hour 15 minutes respectively.

Regular ferries operating between Jersey, England and France. St Helier to Poole 4 hours and 30 minutes. St Helier to St Malo 1 hour 20 minutes

JERSEY AIRPORTST HELIER

JERSEY

CHANNEL ISLANDS

GUERNSEY FRANCE

ENGLAND

ENGLISH CHANNEL

PORTSMOUTH

BOURNEMOUTH

WEYMOUTH

ISLE OF WIGHT

FLAMANVILLE

BARNEVILLECARTERET

CHERBOURGOCTEVILLE

TORQUAY

BARCLAYS BANKGround & Basement, 1 & 3 Broad Street & 11-13 Library Place, St Helier, Jersey JE4 8NE

PRIME FREEHOLD BANK INVESTMENT NEW 15 YEAR LEASE WITHOUT BREAKS

3 YEARLY UNCAPPED RPI RENT REVIEWS

JERSEY AIRPORT•

ST AUBIN

BOULEY BAYPLÉMONT

•ST HELIER

JERSEY

CHANNEL ISLANDS

GURNSEY FRANCE

50 metres

For more information on our products and services:www.experian.co.uk/goad | [email protected] | 0845 601 6011

St Helier

Experian Goad Plan Created: 23/01/2020Created By: Allsop

Copyright and confidentiality Experian, 2020. © Crown copyright anddatabase rights 2020. OS 100019885

RM LIGHTIN

G

THE ESPLANADE

ALLIA

NCE

TU

I

MO

UN

TAIN

WA

REH

OU

SE

CLI

NTO

NS

CLA

RK

S

NE

W L

OO

K

CLA

IRE

’S

AC

CE

SS

OR

IZEPA

PE

RC

HA

SE

UN

ITED

CO

LOR

S O

F

BEN

ETTO

N

CO

FFEE

REP

UB

LIC

SC

HU

H

© Crown Copyright, ES 100004106. For identification purposes only.

SITUATION

The property comprises a prominent corner building in the very heart of St Helier Town Centre at the corner junction of Broad Street and Library Place. The property is located on the town’s main thoroughfare from The Esplanade to the High Street and benefits from good pedestrian flow.

The subject property is situated in a strong banking location with the Island’s principle branches of Lloyds and NatWest located opposite. Other banks and financial operators in close proximity include Santander, Coutts, Investec, RBS, RBC, HSBC, Citibank and Deutsche Bank, amongst others.

The immediate area also provides the Island’s main commercial centre for retail and office stock alongside numerous bars and restaurants. The Liberty Wharf mixed-use development is located a short 5 minute walk south via Weighbridge Place which now boasts a number of up-market restaurants and bars around two attractive piazzas, including The Royal Yacht and Café Zephyr.

The bus station is located 300 metres to the south on the Esplanade.

THERE ARE OVER 50 REGISTERED BANKS ON THE ISLAND

Deutsche Bank

LESS THAN 5 MINUTES WALKOFFICE LOCATION




NEW HEAD OFFICENEW 15 YEAR LEASE 24,500 SQ FT AGREED

DESCRIPTIONThe building comprises an attractive and prominent period property which originally encompassed separate buildings but now operates as one demise. The subject property is arranged over ground and basement floors only, the upper floors are not included in the sale.

The main entrance to the property is located on the south side of Library Place which offers access to Barclays’ ground floor banking hall:- Barclays’ only retail branch on the Island. The south side of Broad Street provides separate access to Barclays “Premier Banking” customers offering investment and wealth management services. The premier banking accommodation comprises a number of private meeting rooms and offices.

The remaining ground floor accommodation comprises counting rooms, storage areas and staff accommodation and offices. There is further ancillary accommodation to the basement floor where the bank’s vault is located.

The front facade of both Library Place and Broad Street are Grade 4 Listed, the internal of the building is not listed.’

ACCOMMODATION*

Floor Area sq m Area sq ft

Basement 396.4 4,266

Ground 797.6 8,585

Total 1,194 12,851

*Due to the restrictive access provided by Barclays for security reasons the above floor areas have been scaled using historic architect’s plans and have been provided by the vendor.

All potential purchasers are expected to carry out their own measured survey and due diligence prior to completion.

GIA floor areas are cited within the lease which have been used in previous rent review transactions. The lease can be found in the data room.




BRITAIN’S LARGEST ‘OFFSHORE’

FINANCIAL CENTRE

ATTRACTIVE TAX REGIMES FOR

BOTH PRIVATE AND CORPORATE WEALTH

FINANCIAL SERVICES CONTRIBUTE 60% OF THE

ISLAND’S GDP

BANKING DEPOSITS IN EXCESS OF

£108 BILLION

725,000 VISITORS PER YEAR

30% OF THE POPULATION WORK IN THE FINANCIAL SERVICES SECTOR

JERSEY’S ECONOMY

Financial services dominate Jersey’s economy, employing nearly 30% of the population and contributing 60% of the Island’s GDP. The Island is considered one of the top worldwide offshore financial centres and benefits from attractive tax regimes for both private and corporate wealth. Tax on the Island is levied at a flat rate of 20% and benefits from no inheritance tax, no capital gains tax and no corporation tax.

The Island’s robust taxation benefits and sophisticated legal framework supports the development of Jersey’s Financial Services Centre, and is sustained by the high number of banks, accountants, wealth managers and solicitors based on the Island. In fact there are over 50 registered banks on the Island with estimated banking deposits in excess of £108 billion and fund values totalling over £200 billion.

Tourism is another major contributor to the economy, accounting for over 20% of GDP as 725,000 visitors flock to the island every year. Some of the most popular sites on the Island include Elizabeth Castle, Mont Orgueil Castle, Jersey Zoo and Jersey War Tunnels.

BASEMENT (4,266 SQ FT)

GROUND FLOOR (8,585 SQ FT)

MEASURES 12,851 SQ FT NIA ARRANGED OVER GROUND FLOOR AND BASEMENT

RETAIL BANK WITH PREMIER BANKING SERVICES FREEHOLD TITLE

LIBRARY PLACE

BROAD STREET

PRIVATE BANKIN

G

RETAIL ENTRANCE

PREMIER BANKING ENTR

ANCE


FLOORPLANS



JERSEY RPI VS UK RPI

Date UK Jersey

March 2020 1.5% 2.7%

December 2019 2.2% 2.5%

December 2018 2.7% 3.9%

December 2017 4.1% 3.6%

COVENANT INFORMATION

Barclays Bank Plc, a subsidiary of Barclays Plc, is a British multinational banking and financial services company founded in 1925 with its headquarters located in London. Barclays Plc has operations in over 40 countries and offers retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services.

The company employs approximately 85,000 people worldwide with the UK business alone has approximately 24 million retail customers.

Barclays Banks Plc has a current D&B rating of 5A1 and reported the following financial information for the last three years:

31 Dec 2018 31 Dec 2016 31 Dec 2017

Turnover - £8,625,000,000 £8,775,000,000

Pre-Tax Profit £1,286,000,000 £4,383,000,000 £3,166,000,000

Net Worth £46,382,000,000 £60,057,000,000 £60,829,000,000

TENUREFreehold.

The upper floors are not included in the sale, further information can be provided upon request.


Link to Jersey RPI Forecast



TENANCY

LET TO BARCLAYS BANK PLC

NEW 15 YEAR LEASE (NO BREAKS)

RENT OF £300,000 PA

3 YEARLY RENT REVIEWS TO UNCAPPED JERSEY RPI

https://www.gov.je/Government/JerseyInFigures/BusinessEconomy/Pages/Inflation.aspx

Notice: Buckley and Company Limited, as Agents for the vendor, or as the case may be, Lessor (“Vendor”) and for themselves give notice that:1. These particulars are provided merely as a general guide to the property. They are not and shall not hereafter become part of any offer or contract. 2. The statements herein are made in good faith but without responsibility whatsoever on the part of the Vendor, Buckley and Company Limited or their servants. It is for the Purchaser or as the case may be the Lessee (the “Purchaser”) to satisfy themselves by inspection or otherwise as to their accuracy and fullness, they must not in entering into any contract or otherwise rely upon these particulars as statements or representations of fact. 3. The Vendor does not make or give and neither Buckley and Company Limited nor its servants has any authority, express or implied, to make or give any representations or warranties in respect of the property. 4. In the event of any inconsistency between these Particulars and the Conditions of Sale, the latter shall prevail.5. Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any service or facilities are in working order. Note: Buckley and Company Limited has not made any investigations into the existence or otherwise of any issues concerning pollution and potential land, air or water contamination. The purchaser is responsible for making their own enquiries in this regard. Design CommandD www.commandHQ.co.uk 06.20

For further information or to make arrangements for viewing please contact:

PROPOSALOffers are sought in excess of £5,140,000 (Five million, One Hundred and Forty Thousand Pounds) subject to contract and

exclusive of GST (5%). This equates to an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 6.20%.

Assuming an increase based on Jersey’s March 2019 – March 2020 RPI of 2.7%, a purchase at this level gives a reversionary yield of:

Year Rent NIY2023 £324,962 5.95%2026 £352,001 6.45%2029 £381,290 6.99%2032 £413,016 7.57%

VATVAT is not applicable to this property, but GST at 5% may be applicable.

AMLA successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/JerseyBarclays

allsop.co.uk buckley.je

Simon Gale 01534 887 843

[email protected]

Simon Buckley 01534 887848

[email protected]

Liam Stray 07956 981 575

[email protected]

BARCLAYS BANK - Allsop

Documents

Transcript of BARCLAYS BANK - Allsop