MANCHESTER CITY CENTRE HOTEL INVESTMENT THE MITRE HOTEL, 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

FUTURE INVESTMENT SUMMARY DEVELOPMENT POTENTIAL FOR • Rare opportunity to acquire a Grade II listed CONVERSION TO boutique hotel in Manchester city centre RESIDENTIAL OR • Enviable location, directly opposite Harvey OFFICES* Nichols and Selfridges, with magnificent views *SUBJECT TO PLANNING overlooking Cathedral Gardens • The area has received significant public sector investment creating an attractive public open space • Boutique hotel and public bar, with 39 letting bedrooms • 16,357 sq ft on a net internal area basis (19,831 sq ft GIA) • Let to a private individual for a term of 10 years commencing the 22nd September 2017, expiring 21st September 2027 (c. 7.31 years unexpired) • Strong future development potential for conversion to residential or offices (subject to planning) • The current passing rent of £212,115 per annum is subject to annual increases in line with RPI, as well as 5 yearly OMRV reviews, and will be topped up by the vendor to £214,312 per annum • Offers in excess of£3,300,000 (STC) • Providing a Net Initial Yield of 6.1% NIY and an estimated reversionary yield of 6.58% in 2027 • Low capital value of just £201 psf (GIA - £166 psf) MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

MANCHESTER Manchester’s well documented growth over recent years has seen the city secure its status as the country’s 2nd city and a major European centre. The City Council has played a major role in the success of the City and invested heavily in infrastructure improvement works to establish the centre as a place to live, work and play. Manchester’s visitation numbers regularly swell with a huge influx of visitors who come to watch the city’s two Premier League football teams (Manchester United and Manchester City) or to attend major events such as political-party conferences. Additionally, the city attracts leisure visitors keen to sample its thriving music, retail and cultural scenes. As per the latest available statistics, Manchester has hosted more than 1.3 million ‘staying visits’ alone. YORK MANCHESTER TOURISM

LEEDS Figures from Marketing Manchester show that tourism BRADFORD PRESTON is worth more to the region than key sectors such BLACKBURN KINGSTON UPON HULL as financial and professional services, the creative

WAKEFIELD industries and life sciences. Business and leisure Huddersfield M6 M62 tourism currently contributes circa £7.9bn to the regional M66 M61 economy and brings 119m visitors each year; 11m of MOUTH OF THE HUMBER

OLDHAM DONCASTER whom choose to stay overnight.

MANCHESTER M1 M6 SALFORD Manchester city centre’s year-to-date hotel occupancy LIVERPOOL M60 M62 STOCKPORT Peak District rate through 2019 was 79%, higher than in 2018 (78%) and WARRINGTON SHEFFIELD M56 matching the previous highest rate in 2017 (also 79%). LLANDUDNO M56 M56 Further development in the sector will see hotel room Northwich Macclesfield BANGOR Chesterfield LINCOLN stock in the city centre increasing to circa 13,700 rooms CHESTER M1 by the end of 2021, which highlight’s the sector’s M6 continued faith in the expansion of both business and leisure tourism in the city. WREXHAM STOKE-ON-TRENT Boston NOTTINGHAM THE WASH DERBY Grantham Snowdonia National Park M1

Burton Upon Trent

Loughborough M6 SHREWSBURY TELFORD LICHFIELD M54 LEICESTER

WOLVERHAMPTON PETERBOROUGH M42

Corby M1 BIRMINGHAM A1(M) ABERYSTWYTH COVENTRY M6 CARDIGAN BAY

M42

Royal Leamington Spa MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

SITUATION The building occupies an extremely central location, fronting onto the prime retail and leisure areas around Exchange Square, the Corn Exchange and . The ongoing development of The Embankment office scheme (320,000sqft in total) and now home to Swinton Insurance, ensures this location also remains an important commercial area of the city. This neighbourhood has been titled “The Medieval Quarter” and has seen substantial public sector investment in improvements to the public realm, with further landscaping SUBSTANTIAL proposed to the front of the Cathedral. These works ELEVATION OVER- have dramatically improved the permeability of the area LOOKING MANCHESTER which in turn is increasing visitor numbers. CATHEDRAL & GARDENS, W B Ol Silk S lackfri Trinity Aspin Lane A664 ars Road d ay A34 a A62 ity W Trin ale Ro d ay Trinity W Rochd ONE OF VERY FEW y Manchester a ldham Roa Arena O Trinity W Royal A665 Mail Manchester An ay g W Victoria el S t r Trinity eet ‘GREEN SPACES’ IN Bla c kf riars Ro A56 NOMAMiller Str ad e et THE CITY CENTRE

dham Road A Ol A34 ddington

ad Str Ro eet am Oldh A6041 hill e S d wan u Sh Str ee t

t ay ee

ity W Chapel Str Corn Ancoats n ri Exchange T Blackfriar

reet t s pel S Str

ay Cha eet Gr eat Anco

t

rinity W ee T eet ats l Str Str pe h St Cha Arndale r ig Northern Quarter ee H t A6 Chapel Street Centre Chapel Street A62

eet Str r Chur ve ch Str e eet L

T r i n Salford ity

A665 W Central D eet a a y le Str ton Str er eet New Islington Eg A34 MANCHESTER eet

r Str B e dsall Lane ridge St v Gr Or CITY CENTRE Le ea East reet t Anco Dal a B5461 gate ts Str s e P Bridge iccadilly S eet S ean tr treet D e e t

ay

W y t N sgate e n ini w Quay S A6042 r a T Spinningfields e B6181 D A6042 A6 t r Pri eet n Albert c The Square e P ss i Square c Str c a Piccadilly y eet di a Ayt eet W eet l ly Gr o e Str ity un Str i eat r Str Duc rin te A T a ncoats Str W e Quay Str A56 et eet e et

eet

r

t

S Chinatown L o t ndo unt e e y o tr a Peter S n M P S W treet r d Road y inces n it a n eet

ri s r T Str Portl t

Peter S S tr e e n et e

B5225 t u

o

t

y Great A

L Northern on gate Gay Village s d A5103 Manchesteron Roa Great Liver Dean Pri Piccadilly po Northern ol Road n d cess Fairfie Manchester ld Stre eet S et r Central tr ter St eet Fairfield Wa Street Live Convention T r r pool Road Complex i ni Fairfie Oxfor ld Str t B6469 eet y

W

a d S A34 B6469 y Castlefield t A6143 r Fairfield e Stre A6042 et et

et P nt re Roa t rin d c Lon lbion S ess S A

te d

a on t r e

R e ansg t o

e a

D d

A57 Oxfor

d St Wh Princess Str itworth r Street West eet ay B6469 an W A635(M) Ma uni ncun Deansgate c ian W Man ay ay W e Ma n e ncunian Way A635 nia Manchester t Mancu Oxford Road A6 D y a a ws W o n Do n S d wn tr a A56 e ancunia ter Ro M ROYAL ST ANN’S SQUARE SPINNINGFIELDS EMBANKMENT EXCHANGE

DEANSGATE

CROSS ST

MARKET ST

MARKET ST

DEANSGATE

EXCHANGE SQUARE CORN EXCHANGE

METROLINK MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

DESCRIPTION & ACCOMMODATION

The Mitre Hotel comprises a stunning Grade II Listed property, set in a central location and benefitting from external seating areas overlooking one of the city’s very few green spaces. The Jacobean style property has The 39 bedrooms provide a mix of an extremely attractive façade styles and room sizes, with some incorporating feature stonework rooms sharing bathroom facilities. mullions, pitched roof line and large The property has been measured timber sash windows. by Atlantic Geomatics and provides Internally, the property has the following Net and Gross Internal undertaken an ongoing programme Areas. Full AutoCad, PDF plans and of refurbishment by the current breakdowns are available on request. operator and provides boutique style hotel accommodation, arranged over basement, ground and 3 upper floors and to a 3-star standard. The ground floor public bars and restaurant have recently been refitted and provide a modern attractive environment with fantastic views over CLICK HERE FOR A SHORT VIDEO the gardens and Exchange Square. WALKTHROUGH OF THE HOTEL

AREA GIA FLOOR DESCRIPTION (SQFT) (SQFT)

Third floor/Attic 10 guest bedrooms, cleaners and linen stores 2,458 3,053

Second floor 17 guest bedrooms, cleaners and linen stores 4,026 4,817

Reception with seating area and office, First floor 3,975 4,802 plus 12 guest bedrooms

Two interconnected bars, seating areas, dining Ground floor 2,723 3,449 areas, glass wash and WC accommodation

Commercial kitchen, beer cellar, laundry, boiler Basement 3,175 3,710 room, maintenance store and refrigerated store

TOTAL 16,357 19,831 MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

TENANCY The property is let on FRI terms to a private individual for a term of 10 years commencing the 22nd September 2017, expiring 21st September 2027 (c. 7.94 years unexpired). The current passing rent of £212,115.02 per annum is subject to annual upward only RPI linked uplifts (uncapped). The landlord will top up the rent to the RPI figure published for April 2020 (292.6), therefore providing a rental income of £214,312 per annum. There is the additional benefit of an open market rental value review on 22nd September 2022, which is to the higher of passing rent immediately before the review or the open market rental value. The Landlord benefits from a £50,000 rental deposit, which will be transferred on completion. The tenant is also to pay £12,000 per annum (annual RPI uplifts) into a Repair and Maintenance Fund, that is held by the landlord. The tenant may draw down on this money as and when repairs are carried out and receipts provided. The repairing liability is not limited to this amount but this has been set as a reasonable figure.

THE MITRE HOTEL TENURE IS ARGUABLY Freehold (Title number GM681976). MANCHESTER CITY CENTRE’S BEST Part of the Ground Floor and Basement LOCATED HOTEL, BEING fronting Cateaton Street and Cannon IN THE HEART OF THE Court is excluded from the freehold PRIME RETAIL AND title (see attached red-line aerial). LEISURE DISTRICT NB: The red dotted line represents the flying freehold element of the Title. MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

VAT EPC ANTI-MONEY LAUNDERING REGULATIONS It is anticipated that the sale will be dealt Available upon request. In accordance with Anti-Money Laundering Regulations, two forms of with as a transfer of a going concern. identification and confirmation of the source of funding will be required from the successful purchaser. MANCHESTER CITY CENTRE THE MITRE HOTEL HOTEL INVESTMENT 1 – 3 CATHEDRAL GATES, MANCHESTER M3 1SW

OPPORTUNITY FURTHER INFORMATION The Mitre Hotel is arguably Manchester city centre’s For further information or to arrange an inspection, please contact: best located hotel, being in the heart of the prime retail and leisure district, with a stunning view over Chris Bathurst Manchester Cathedral to the rear. Tel: 07957 138 003 The existing occupier is undergoing further improvement Email: [email protected] works to the hotel, which will ensure continuing high occupancy rates and improved room tariffs, Daniel Campbell as Manchester continues to grow as an international Tel: 07741 593 968 destination for both business and leisure tourism. Email: [email protected] PROPOSAL Our client is seeking offers in excess of £3,300,000 (STC) (Three Million Three Hundred Thousand Pounds), subject to contract, for the freehold interest. A purchase at this level reflects the following yield profile, after deducting appropriate purchase costs, and a low capital value of just £201 psf NIA and £166 psf GIA. Christopher Dee LLP 40 Peter Street Year Rent Per Annum Yield Manchester M2 5GP Topped Up £214,312 6.10% MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them 2022 £229,219 6.52% as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or 2027 £265,728 7.56% other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/ purchasers should satisfy themselves as to the fitness of such equipment for their Assuming RPI growth to April 2020, and forecasted at 3% thereafter. requirements. June 2020.