MANCHESTER - Allsop€¦ · MANCHESTER 07 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT...

MANCHESTER

PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE01

MANCHESTER

PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE

MANCHESTER


HILTON HOTEL

TOWN HALL

MANCHESTER VICTORIA

MANCHESTER CENTRALCONVENTION COMPLEX

A57(M) MANCUNIAN WAY

FIRST STREET FUTURE PHASE

DEANSGATE CASTLEFIELD

MANCHESTER ARENA

ARNDALE SHOPPING CENTRE

BRIDGEWATER HALL

ST PETER’S SQUARES

MARKET STREET

624 UNIT NEW RESIDENTIAL

DEVELOPMENT

CIRCLE SQUARE

A unique opportunity to acquire Manchester’s latest destination leisure scheme in the heart of the city centre.

Manchester is the UK’s second city alongside London and the economic and cultural capital of the North West. The largest and fastest-growing regional city in the UK.

First Street is a thriving destination and now established as one of Manchester’s most successful mixed use development.

Located adjacent to HOME, a centre for international contemporary art, theatre and a five screen cinema which boasts over 850,000 visitors a year.

The property comprises 9 units and totals 32,736 sq ft

Occupiers include Sainsbury’s, Starbucks, Pizza Express, Junkyard Golf, Tiffin Rooms, Dockyard, BJ’s along with the, MasterChef winning Simon Wood Restaurant.

A long Weighted Average Unexpired Lease Term of 12.5 years to lease expiry and 9.5 years to break. Providing a good tenant mix of national and independent operators.

Current net annual income totals £788,760 per annum which reflects an average of only £24 per sq ft. The latest letting has set a new tone at £37.71 per sq ft proving the significant reversionary potential.

The headline Estimated Rental Value is circa £899,500 per annum.

Offers in excess of £11,000,000 (Eleven Million), subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 6.72%, after the deduction of purchaser’s costs of 6.8% and a potential reversionary yield of 7.66%.

MANCHESTER

FUTURE COMMERCIAL PHASES

JAMES GRIGORSQUARE

TONY WILSON PLACE

WHITWORTH STREET WEST

MED

LOC

K STREET ALBIO

N STREET

NO.8 FIRST STREET

NUMBER ONE

FIRST STREET

ISABELLA BANKS ST

JACK ROSENTHAL STREET

THE HO

RNIMAN STREET

PRS RESIDENTIAL

SCHEME

North


https://nomither.com/ask/first-street/hotspots/#

MANCHESTER


Manchester is widely established as the UK’s second city and is the largest and fastest growing regional capital in the UK. It is a dynamic environment for successful growth and a vital national hub known for its commerce, education and culture.

The city has a retail catchment of 1.75 million people and approximately 7 million people within a 1 hour drive time. Over 80 of the FTSE 100 companies are represented in Manchester with forecasted office employment growth of 2% per annum over the next 10 years.

LOC

ATIO

N

The city has a tourism economy worth over £7.5 Billion with over 115 million visitors a year.

Greater Manchester is home to 5 world class universities. These continue to attract the highest calibre researchers and teachers, with the University of Manchester boasting 25 Nobel prize winners and more nobel Laureates on their staff than any other UK university. It has the largest student population in Europe with over 100,000 people and has the second largest number of international students in the UK.

The graduate retention rate within Manchester is over 50% with 94% of University of Manchester graduates going straight into employment or further study.

Manchester is the first UK city to be awarded the prestigious accolade of European City of Science acknowledging Manchester’s innovative endeavours in science and technology.

MANCHESTER


Manchester International Airport is approximately 10 miles south of the city centre and is the busiest airport in the UK outside London. The airport handles over 23m passengers a year with over 100 airlines making more than 200 international flights every day serving 225 destinations worldwide. First street sits adjacent to the main arterial route into Manchester from the Airport and Manchester’s affluent south Manchester conurbations.

Shaw and Crompton

KingswayBusiness Park

Milnrow NewboldNewhey

Derker

Monsall

Failsworth

FreeholdHollinwood

Westwood

BURYRadcliffe

Prestwich Whitefield

Abraham Moss

Crumpsall

Edge Lan eVelopark Droylsden

Audenshaw

Shudehill

Brooklands

ALTRINCHAM

SaleTimperley

SaleWaterPark New

Islington

EtihadCampus

ClaytonHall

HoltTown

MarketStreet

CentralPark

SouthChadderton

OldhamCentral Oldham

Mumps

NewtonHeath and

Moston

OldhamKing Street

Besseso’ th’ Barn

HeatonPark

BowkerVale

QueensRoad

RochdaleRailwayStation

DEANSGATE-CASTLEFIELD

St Peter’sSquare

AshtonMoss

CemeteryRoad

AshtonWest

WythenshawePark

WestDidsbury

Baguley

NorthernMoor

DidsburyVillage

Trafford BarOldTrafford

Exchange Quay

Salford Quays

Anchorage

St Werburgh’sRoad

PiccadillyGardens

NavigationRoad

DaneRoad

MoorRoad

Barlow Moor Road

Roundthorn

Stretford

Benchill

MartinscroftCrossacres

Shadowmoss

Robinswood RoadPeel Hall

MANCHESTERAIRPORT

EASTDIDSBURY

ASHTON-UNDER-LYNE

ROCHDALTOWNCENTRE

WythenshaweTown Centre

Firswood

Chorlton

Withington

Burton Road

Broadway

Langworthy

Mediacityuk

Cornbrook

LadywellECCLES

Weaste

Harbour City

Pomona

Victoria

Piccadilly

P

P P

PP

P

P P

217P+R

P+R

81

P+R

251

270P+R

190P+R

P+R

195

200P+R

P+R

100

369P+R

P+R

216

108P+R

302P+R

300P+R

250P+R

Manchester is served by four stations with the busiest, Manchester Piccadilly, providing frequent and fast services to London Euston in just over two hours. The second business station by passenger numbers is Oxford Road which is approximately 100m from the property. HS2 will arrive into Manchester Piccadilly Station with a planned completion date of 2033.

TRANSPORT

NEW YORK8 hours

LIVERPOOL55 kms (44 miles)

47 minutes

BIRMINGHAM128 kms (80 miles)1 hour 26 minutes

LONDON290 kms (181 miles)

2 hours 8 minutes

GLASGOW348 kms (214 miles)3 hours 15 minutes EDINBURGH

336 kms (210 miles)3 hours 16 minutes

LEEDS64 kms (40 miles)

55 minutes

MADRID3 hours

PARIS1.5 hours

SINGAPORE13 hours

GENEVA2 hours

DUBAI7 hours

FRANKFURT1.5 hours

AMSTERDAM1.5 hours

STOCKHOLM2.5 hours

The Metrolink is Manchester’s popular light rail transit system which has improved access across the city centre enabling a reduction in road congestion. The recently opened second city crossing has assisted in increasing the capacity across the system. The Deansgate Castlefield station is located immediately adjacent to First Street. This is one of the few stations where travellers can get to all destinations on the network. It is also one of only three stations which are linked to national rail stations.

MANCHESTER


SITU

ATIO

N -

FIR

ST S

TREE

T First Street opened in April 2015 with the first phase of the development now complete. It has seen the delivery of:

“Home” Greater Manchester’s 600,000 sq ft Arts Centre, Corner House & Library Theatre

INNSIDE by Meliá - 208 bed 4 star hotel

9 new individual restaurants and bars

New public realm and outdoor space

Q-Parks - 700 space multi-storey car park

VITA - luxury student accommodation scheme comprising 279 apartments

350,000 sq ft of Grade A Offices with a further phase due to start on site

Construction is also about to begin on a further 624 residential units on the south element of the site.

The development has already transformed the wider area by providing high quality amenities, exciting activities and a new sense of place which has attracted a number of new occupiers into the city including Ford, Autotrader, Gazprom and Jacobs, alongside Amaze, Odeon and WSP.

SAINSBURYS

NUMBER ONE FIRST STREET

Q PARK

HACIENDAAPARTMANTS

INSIDE HOTEL

HOME

EVERSHEDS

VITA STUDENT

MANCHESTER


Within the development is a new £25million arts and cultural centre incorporating 5 digital cinema screens, galleries and a 500 seat theatre. This cultural centre together with a hotel, a multi-storey car park and restaurant/shop units surrounds a public square known as Tony Wilson Place has been carefully designed to accommodate future activities for businesses and their employees.

The First Street community now provides a rich, vibrant, culture led, 24/7 environment providing the characteristics required to encourage, attract and retain other businesses and their staff.

First Street has quickly established itself as Manchester’s leading destination for inward

occupiers to the city region through its unrivalled proximity to both mainline rail and Metrolink

infrastructure, as well as attracting some of the city’s indigenous occupiers. The following office occupiers

have been attracted to First Street to date: Amaze, Jacobs Engineering, Autotrader, Ford, Gazprom, WSP and Odeon.

Office rents have grown by circa 51% (5.3% per annum) since 2011.

FIRS

T ST

REET

MANCHESTER


The leisure offer includes a Pizza Express, Sainsbury’s Local, Indian Tiffin Room,

Starbucks, Bunny Jacksons and Gasworks. New entrants to the scheme which are all now

open include a new restaurant by MasterChef winner Simon Wood and Junkyard Golf.

The scheme forms part of a wider area that is known as “Corridor Manchester” which is a circa 240 ha area stretching south of the city centre from St Peters Square to Whitworth Park. This is the home to

many of Manchester’s Smart City projects and Digital initiatives along with the TMT sector.

The Oxford Road Corridor is home to a large education, scientific and digital community, and has a wealth of knowledge intensive organisations and businesses, including particular concentrations of bio-

medical, pharmaceuticals, clinical trials, medical devices and related healthcare. It offers superb co-location opportunities for companies to have access to university research, laboratories, incubation and grown on space;

and university students.


First Street links the established leisure pitches of Oxford Road and Deansgate Locks.

The scheme complements the resurgent Whitworth Street West leisure offer.

The site is bounded to the East by the Oxford Road Corridor, home to the largest university campus in Europe including: Manchester University, Manchester Metropolitan University and the Central Manchester University Hospital Trust.

The property comprises nine units split into three distinct elements.

Units 1-3A stand-alone ground floor and first floor self-contained building which is multi-let

Unit 4 A stand-alone ground floor restaurant unit which is let to Pizza Express

Units 5-9A multi-let row of ground floor units within the multi-storey car park

DES

CRI

PTIO

N

MANCHESTER

MANCHESTER


TRAVIS STREET

ADAIR S

TREET

RIVER IR

WELL

CENTRALLIBRARY

TOWNHALL

MANCHESTER ARNDALESHOPPING CENTRE

CORNEXCHANGE

THE PRINTWORKS

MANCHESTERVICTORIASTATION

MANCHESTERPICCCADILLY

STATION

MANCHESTERCENTRAL CONVENTION

COMPLEX

MANCHESTERARENA

THE LOWRY

MANCHESTERMETROPOLITAN

UNIVERSITY

THE UNIVERSITY OF MANCHESTER

MANCHESTER ROYAL INFIRMARY HOSPITAL

A57 DAW

SON STREET

THE BRIDGEWATER HALL

St Peter’sSquare

AlbertSquare

HardmanSquare

Great NorthernSquare

PiccadillyGardens

Market Street

MANCHESTEROXFORD ROAD

DEANSGATE

SALFORDCENTRAL

Shudehall

EXCHANGESQUARE

CORNBROOK

Deansgate-Castlefield

CHARLOTTE STREET

COOPER S

TREET

FOU

NTA

IN S

TREE

T

HIG

H S

TRE

ET

QUAY STREET A34 PETER STREET A34 OXFORD STREET A34

D

EAN

SGAT

E A

56

DEA

NSG

ATE

A56

CHAPEL STREET

BLACKFRIARS STREET

NEW BAILEY STREET BRIDGE STREET

PRINCESS STREET PRINCESS STREET

LO

WER M

OSELEY S

TREET

WHITWORTH STREET B6469

AYTOUN STREET

DU

C IE

ST

REET

PORTLAND STREET A

5103

PORTLAND S

TREET A5103

NEW

TON S

TREET

SACKVILLE STREET

HANOVER STREET

S

HUDEHILL

ROCHDALE ROAD

PICCADILLY A6

FAIRFIELD STREET B6469 FAIRFIELD STREET B6469

STORE STREET

AYTOUN STREET A6

CHORLTON STREET

NEW YORK STREET

THOMAS STREET HILTON STREET STEVENSON SQUARE

CHURCH STREET DALE STREET

LEVER S

TREET

LEVER S

TREET

ALBE

RT S

QU

ARE

LIVERPOOL ROAD

ST. M

ARY’

S PARSONAGE

TIB LANE BOOTH STREET NICHOLAS STREET

PORT STREET

MILLER STREET A665 SWAN STREET A665 GREAT ANCOATS STREET A665

A664 ADDINGTON STREET A665

TRIN

ITY WAY

N

EW BRIDGE STREET

OLDHAM ROAD A62

OLDHAM

STR

EET

O

LDHAM

STR

EET

CORP

ORA

TION

STR

EET

MOSLEY S

TREET

PICCADILLYGARDENS

STREET

DALE STREET

KING STREET YORK

MARKET STREET

ST MARY’S GATE

CR

OSS

STR

EET

COR

PORA

TION

STR

EET

PICCADILLY

GREAT ANCOATS STREET A665

FAIRFIELD STREET B6469

OXFORD STREET A34

OLD MILL STREET

POLLARD STREET

MO

UN

T STR

EE

T

A6 CHAPEL STREET

A56 CHESTER ROAD

BRIDGEW

ATER VIA

DUCT

A57 (M) MANCUNIAN WAY

CHO

RLTO

N R

OAD

WHITWORTH STREET B6469

A

LBIO

N S

TREE

T

W

ATER ST

REET

A6042

TRI

NITY

WAY

A6

042

LIVERPOOL ROAD

TRIN

ITY

WAY

A60

42

NEW QUAY STREET

IRWELL STREET

PRINESS STREET A34

BLACKFRIARS ROAD

BLACKFRIARS ROAD

KING STREET

TARIFF STREET

A6 CHAPEL STREET

A6 BROAD STREET

CROSS LAN

E

AD

ELP

HI S

TRE

ET

ADELPHI STREET

MIDDLEWOOD STREET

A57 REGENT ROAD

SALFORDMANCHESTER

BRIDGEWATER WAY

MED

LOCK

STR

EET

CASTLEFIELD

A57 (M) M

ANCUNIAN WAY FIRST STREET

CIRCLE SQUARE

SPINNINGFIELDS

ENTERPRISE CITY

DEANSGATE SQUARE

MANCHESTER


TENANCY SCHEDULE The property is let to nine tenants with a Weighted Average unexpired Lease Term of 12.5 years to lease expiries and 9.5 years to tenant break options as per the tenancy schedule below:

UnitNo

Tenant Name Total Area (ft²)

Lease Start

Expiry Date

Next Review

Breaks Headline rent pa

Comments Deposit

1 Junkyard Golf Club (Manchester) Limited 8,255 30/6/2017 29/6/2027 30/06/2022 £125,000.00 £14.86 Minimum uplift at review to £145,000 £62,500+VAT

2 Sainsburys Supermarkets Ltd 4,008 27/4/2015 26/4/2030 27/4/2020 £91,000.00 £23.00 RPI linked rent review capped and collared at 1-3.5% pa

3 SNS Business Limited t/a Tifin Rooms 4,045 3/11/2015 2/11/2030 3/11/2020 £110,000.00 £27.66

4 Pizza Express (Restaurants) Ltd 3,211 3/8/2015 2/8/2040 8/3/2020 03/08/2030 £84,000.00 £26.91 12 month notice on break Doesn’t contribute to building service charge as stand alone unit

5&8 Dockyard First Street Ltd 5,047 26/5/2016 25/5/2031 26/5/2021 £135,000.00 £27.37

6 Wood Restaurants Ltd 3,552 21/6/2017 20/6/2032 21/06/2022 21/6/2027 £100,000.00 £27.99 Stepped rents £75,000 on 21.6.19 £100,000 on 21.6.20 6 months notice on break

£25,000+VAT

7b Queensway Coffee Houses Ltd t/a Starbucks 1,597 18/4/2016 17/4/2026 18/04/2021 £43,260.00 £28.88 21,630+VAT

7a BJ’s Juke Joints Ltd t/a Bunny Jackson’s 1,894 7/4/2016 6/4/2041 07/04/2021 6/4/2026 £58,000.00 £29.00 12 months notice on break 29,000+VAT

9 Vertigo Foods Ltd 1,127 21/6/2019 20/6/2029 21/6/2024 21/6/2022 & 21/6/2026 £42,500 £37.71

Unit re-let after 2 month void at rent 21% higher than previous rent6 months notice on break

32,736 £788,760

There is a comprehensive Estate Charge which is fully recovered from the occupational tenant’s. The current budget is £30,766.24 per annum, reflecting £0.94 per sq ft. For the avoidance of doubt there are no shortfalls.

The passing rent is £788,760 which reflects an average of only £24 per sq ft which is low compared to £35 psf at the University, £40psf at Spinningfields and £47psf at The Printworks. The latest letting has set a new tone of £37.71 per sqft for the scheme proving significant reversionary potential.

MANCHESTER


The property is held under three separate long lease hold interests at a peppercorn rent. More information is available upon request.

TEN

URE

CO

VEN

ANT

INFO

RMAT

ION The property is let to an excellent mixture of national multiple operators, regional multiple and independent operators.

This provides a vibrant and exciting destination for visitors with complementary offers.

We have summarised their most recent accounts into the table below.

Tenant % of income D&B Creditsafe Turnover Pre-Tax Net Assets

Unit 1- Junkyard Golf Club (Manchester) Limited 16% C4 44 - - £131,529

Unit 2 - Sainsburys Supermarkets Ltd 12% 5A1 73 £23,606,000,000 £187,000,000 £4,712,000,000

Unit 3 - SNS Business Limited t/a Tifin Rooms 14% C3 41 - - £104,960

Unit 4 - Pizza Express (Restaurants) Ltd 11% 5A1 95 £396,559,000 £68,473,000 £714,637,000

Unit 5 & Unit 8 - Dockyard First Street Ltd 17% N4 13 - - -£250,513

Unit 6 - Wood Restaurants Ltd 13% N3 21 - - -£275,675

Unit 7b - Queensway Coffee Houses Ltd t/a Starbucks 5% 1A4 36 £6,954,628 -£190,696 £3,167,967

Unit 7a - BJ’s Juke Joints Ltd t/a Bunny Jackson’s 7% O3 46 - - -

Unit 9 - Vertigo Foods Ltd 5% O3 47 - - -

More information is available upon request.

MANCHESTER


Manchester is one of the UK’s most vibrant cities and is the largest retail and leisure market in the North West of England. Its large catchment enjoys strong consumer spending; and the ever expanding, working population within the city has a big influence on retail shopping patterns.

The city is a thriving tourist and retail destination with an estimated shopping population of 1,012,000 ranking the city sixth of the PROMIS centres. In terms of annual retail spend, it is ranked 2nd of the Top 200 PROMIS retailing centres with a retail spend of approximately £3.9 billion per annum.

Manchester continues to thrive as a retail and leisure destination, attracting international as well as new domestic retailers.

Manchester Prime Retail Rents

Market Street £300 per sq ft ITZA

Arndale Centre £275 per sq ft ITZA

King Street £150 per sq ft ITZA

Manchester Prime Leisure Rents

Corn Exchange £50 per sq ft

Printworks £47 per sq ft

Spinningfields £45 per sq ft

Upper King Street £40 per sq ft

Manchester University £35 per sq ft

RETA

IL &

LEI

SURE

MA

RKET

MANCHESTER


MANCHESTER INVESTMENT MARKET Overall UK investment volumes were £64bn in 2018 which was a second consecutive year of increased activity and was 33% ahead of the 10-year average. There was £20.1bn of investment outside of London in 2018, with £3.5 billion of that in the North West. This was an increase of 25% compared to 2017.

Manchester is now ranked 46th globally for direct commercial real estate investments since 2008 with over £5bn transacted. It is the only UK city alongside London to feature in the top 50, demonstrating its credentials as a highly liquid market. Purchasers of Manchester assets in the past 18 months have originated from Asia, the Middle East, the US and Canada, along with established investors from other European nations.

Overseas investors have also identified Manchester as a long-term strategic opportunity, evidenced by the significant sums already invested by Chinese investors in Airport City and NOMA; and Abu Dhabi investors in Manchester City Football Club and the Etihad Campus.

Recent transactions include

Address Tenant AWAULT Rent (pa) Price Yield

The Pavilion, Spinningfields The Ivy 20 years £500,000 £11.7m 4.00% NIY

Oast House, Spinningfields New World Trading Co 25 years £409,000 £10.45m 4.00% NIY

8 King Street Multi-let 4 years £506,000 £8.7m 5.45% NIY

EPC The EPC for each unit is available upon request.

VAT The property is elected for VAT and therefore is anticipated to be a TOGC (Transfer of a Going Concern).

MANCHESTER


MANCHESTER M15

PROPOSAL Offer in excess of £11,000,000 (Eleven Million) subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 6.72% after deduction of purchaser’s costs of 6.8%. and a potential reversionary yield of 7.66%.

JAMES PORTEOUS

[email protected] 238 7408

ANDREW HILBOURNE

[email protected] 238 6284

FURTHER INFORMATION

© Crown Copyright 2019. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law. Copyright © Jones Lang LaSalle IP Inc. June 2019. All rights reserved.

JEREMY HODGSON [email protected] 543 6709

JAMES SALMON [email protected] 543 6880

mailto:[email protected]

mailto:[email protected]

MANCHESTER - Allsop€¦ · MANCHESTER 07 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT...

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Transcript of MANCHESTER - Allsop€¦ · MANCHESTER 07 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT...