THE ESPLANADE ST HELIER JERSEY
Summary
Aerial THE ESPLANADE ST HELIER JERSEY
Summary
Overview THE ESPLANADE ST HELIER JERSEY
Liberty Wharf
Liberty Wharf is a unique waterfront mixed-use Income By Element Income By Use investment in the heart of St Helier’s prime office CBD, renowned as a hub for financial institutions. Developed in stages from 2007-2010, the island site is made up of four distinct elements comprising: 24% Transportation House • Liberation House and Windward House - Two prime modern offices blocks 55% Office • Transportation House - A serviced office operated by Regus and a 63 room five-star 25% Liberty Wharf 21% Retail & Leisure Apart Hotel Shopping Centre
• Liberty Wharf Shopping Centre - Anchored by 6% Serviced Office Marks & Spencer
49% Liberation House 17% Apart Hotel • Jersey Tourist Office - A five-storey office block & Windward House
The four assets combine to present an exceptional 1% Parking real estate investment on a 3.71 acre site set in the most prominent location in St Helier. The investment provides asset management and value 2% Jersey Tourist add opportunities underpinned by secure and Office diverse income streams across all four elements.
Summary
Overview THE ESPLANADE ST HELIER JERSEY
Investment Rationale
• 48% of income from offices fully let to blue chip tenants
• Prime CBD location in the heart of St. Helier
• International tenant base, including BDO, Ernst & Young and CPA Global
• One scheme providing four distinct elements
• Mixed-use asset comprising prime Grade A offices and serviced offices, luxury Apart Hotel, retail and leisure
• A 3.71 acre island site
• Prestigious waterfront Jersey investment
• Reversionary income streams offering excellent rental and capital growth prospects including the 3 yearly review pattern associated with Jersey office leases
• Average weighted unexpired lease term of 13.2 years to lease expiry and 6.7 to lease breaks
• Significant value add opportunities through strategic asset management
• Offers are invited in excess of £70,000,000 (Seventy Million Pounds) for the long leasehold interest of the property subject to contract
• A purchase at this level would reflect a net initial yield to 7.04% after allowing for purchaser’s costs of 6.50%
• Four SPVs are available to purchase, which would reflect a net initial yield of 7.39% after allowing for purchaser’s costs of 1.50%
Summary
Investment Rationale THE ESPLANADE ST HELIER JERSEY
Liberty Wharf Shopping Centre
Liberation House & Windward House
CASTLE STREET
ESPLANADE
LA ROUTE DE LA
LIBERA TION Key Liberation & Windward House Transportation House Liberty Wharf Shopping Centre Jersey Tourist Office Transportation House Jersey Tourist Office
Summary
The Properties THE ESPLANADE ST HELIER JERSEY
The Properties Liberation House & Windward House Transportation House
The property comprises a mixed-use scheme Liberation House Liberty Wharf Apart Hotel of offices, Apart Hotel and retail in buildings ranging from historic buildings to modern Liberation House is a highly specified Grade A office building Liberty Wharf Apart Hotel provides 63 five-star serviced iconic office buildings. completed in 2007. The property is arranged over ground and apartments designed for the business community as well as five upper floors totalling 61,476 sq ft (5,711 sq m) offering open, offering tourists a contemporary alternative to the island’s Buildings vary in scale from ground floor spacious floor plates with exceptionally high levels of natural hotels. Bridge Street Worldwide manage the apartments warehouse conversions to modern six storey light. This prominent building, benefiting from spectacular which comprise a selection of studios, one- and two-bedroom offices. The original historic buildings were views over St Aubin’s bay, is let in its entirety to Ernst and Young, apartments, some with balconies and views of the harbour and constructed in the 1800s. The modern elements Moore Management and CPA holdings. town. More information can be found at the website, have all been constructed in the last 5-7 years. www.libertyapartments.co.uk. Windward House Regus Windward House provides high quality Grade A office space having been completed in 2007. The property is arranged over The Regus offering at Liberty Wharf is set out over one whole ground and four upper floors totalling 23,501 sq ft (2,183 sq floor below Liberty Wharf Apart Hotel. The space totals 14,006 m). The fully occupied property, offers slightly smaller floors sq ft of office accommodation providing local businesses plates to that of Liberation house, appealing to the smaller office meeting and training rooms, conference and boardrooms, CASTLE STREET occupiers. The property is let to the well-known accountancy a business lounge, café and reception area, the facility also ESPLANADE firm BDO who have subsequently sub-let four floors. benefits from a 10,797 sq ft terrace area which can be used for external meetings and networking.
Liberty Wharf Shopping Centre Jersey Tourist Office
LA ROUTE DE LA The retail centre of Liberty Wharf provides 45,133 sq ft of shops Liberty Wharf houses the Jersey Tourist Office which is arranged LIBERA TION and restaurants housed within a covered shopping parade of 20 in a self-contained building over ground and four upper floors units and 13,047 sq ft of offices. The scheme is anchored by a totalling 6,198 sq ft (575 sq m), which is located at the natural Key Marks & Spencer Home Store plus established brands such as entrance to the site when approaching along the Esplanade, the Liberation & Windward House Transportation House Costa Coffee and George but also a selection of boutique and now established central business district in St Helier. Liberty Wharf Shopping Centre independent retailers. More information can be found at the Jersey Tourist Office website, www.liberty-wharf.com.
Summary
The Properties THE ESPLANADE ST HELIER JERSEY
Location
Location THE ESPLANADE ST HELIER JERSEY
Jersey
Jersey is the largest of the Channel Islands and although it is classed as a Crown Dependency, it is self-governing and operates within its own tax and legal framework. Jersey’s local economy revolves around the finance industry, with many banks operating on the island, along with accountants, fund management businesses and law firms.
Jersey is situated off the north-west coast of France, 14 miles from Normandy and 85 miles from the south coast of England. It can easily be accessed via sea and air links, which mainly serve the UK, France and Switzerland.
Jersey is well served by frequent and regular flights from airports in the UK. Journey times for flights from London Gatwick Airport and London City Airport are 1 hour 20 minutes, and 1 hour respectively. Jersey Airport is located approximately 5 miles (8km) to the west of St Helier.
Fast ferries from the UK to Jersey operate a regular service from Poole, with fastest journey times of 3 hours 30 minutes. A limited number of ferries depart from Portsmouth, with a fastest journey time of 9 hours 30 minutes. Ferries from the UK dock in St Helier on arrival in Jersey.
The property is located on the south coast of Jersey, in St Helier, the island’s capital. St Helier is an affluent town, which although English-speaking, still has many French influences. The town has a population of approximately 28,000, accounting for 31% of Jersey’s entire population.
Location
Jersey THE ESPLANADE ST HELIER JERSEY
The Economy
Jersey is a renowned financial centre and has a strong and successful economy with a high standard of living. The island’s status as the pre-eminent location for trust management and fiduciary services is one of the main attractions for overseas capital and investment. As a result there are approximately 45 banks from all over the world based on the island.
The Jersey Financial Services Commission is responsible for the regulation, supervision and, within its legal remit, the development of financial services industry on the island. More information can be found at their website, www.jerseyfsc.org.
The island’s other main income stream is from tourism, which accounts for just over 20% of GDP. The island attracts over 447,000 visitors per annum, with the vast majority coming from mainland Europe and the British Isles with increasing numbers of high value, short stay breaks
Location
The Economy THE ESPLANADE ST HELIER JERSEY
Liberty Wharf
Liberty Wharf was developed between 2007-2010 at the historic island site and is one of Jersey’s largest restoration projects in recent years. Liberty Wharf has been carefully rebuilt with the original roof structures used in a traditional 19th Century style appearance; enhancement of the existing granite wall structures and granite walkways; integration of new shop units and the refurbishment of the existing timber windows, doors and gates.
Liberty Wharf is a highly visible, physical manifestation of St Helier’s prosperity, linking the old town to the waterfront and forming a new addition to the office and retail landscape.
Comprising new prime offices, retail space, a new transportation centre, Apart Hotel and tourist office; Liberty Wharf serves the needs of the Esplanade’s burgeoning business population. Liberation House and Windward House form the core of the island site investment opportunity, with the two modern offices being let to blue chip covenants with WAULTs of 8.2 years to break and 15.2 years to expiry.
A cobbled, covered pedestrian mall provides a stylish shopping experience and captures the island’s traditional Anglo-French influences. Strategically located access points and distinctive structural features are designed to generate footfall and optimise trading conditions.
Nearby attractions include Liberation Square (with its celebrated sculpture), the waterfront leisure complex, the maritime museum and weighbridge.
Location
Liberty Wharf THE ESPLANADE ST HELIER JERSEY
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Liberty Wharf is situated in the heart of St. Helier on the R I
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N V O S U T. L A L D A Esplanade, which is the prime CBD pitch in Jersey. The I U A E B U O B IN O R V E ’ B IC S West E D T L Esplanade is home to the main financial institutions and O R E T L R O Park G N E E I A T U A U A D A R A S
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their professional advisers with immediate local occupiers B
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including Jersey FSC, Capita, HSBC, Citibank, BNP Paribas, B
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O S SG Hambros, Standard Chartered, Appleby, Lloyds Bank, R .
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S A E A Ogier, amongst others. The Island site links the CBD to S P
S L N S V O E . Y I A St. Helier
K A THOM - A O R L S N ST V T R IL S A E R N A I T S M E D K A ’ L the main tourist destination fronting St. Helier Marina ES T I E S C S R N U R A O T O E 1 L . T U E G SE M S U E O A E I R TO R V on La Route de Liberation. To the east of the scheme lies N T A P L L A S S E C .
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Liberation Square and running along the north side, Liberty O N N T Le Colombier
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N De La Ville T E E ST S CO E E E T. L MM U T Wharf is only a 3 minute walk from St Helier’s other main D Q S ESPL ER S E A CI I L C AL A A A S L N T. COLOM L . LA B I shopping area, on King Street and Queen Street. L A ST ER IB D LL I M ER E HI E ATI T ON R A O 1 M LA C D Access L OLO OA A RO Tunnel MB R UT ER OT E DU I E AG B FO R T
The main vehicular access to the scheme is via the AD RO N W roundabout on Castle Street above La Route de la Liberation ETO LA ROUTE DU RG FORT GEO to the underground car park beneath Liberation House and
Windward House (exit on to Castle Street) together with 6 1 A A4 LEMENT S T. C ’S RD various lay-by service areas. Pedestrian access is available S PAS . E DE Elizabeth VR A H GR St Clements Golf Castle EE N to all parts of the scheme but the principle connections are RO and Sports Centre AD
A 4 off the Esplanade via Castle Street, Liberation Square via L A GR A ND E R Conway Street and La Route de la Liberation. OU T E D E SA INT -CLE ME NT
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Not to scale
Location
Situation THE ESPLANADE ST HELIER JERSEY
P t at t e r ee re io Str t ti r S e Es c t st p Pl ce y l e Es an ac lou G G a p d e la e 8.5 8.2 Business Occupiers n Le States Offices ade 7.6 Magistrates Court Cr t ai g Stre ee et 8.5 r t Garage 8.5 S
8.0 e u
e H c Ce notaph 8.1 a 8.2 l P Library l
7.8 8.2 e Opera House e c U m La frigate PH ni a on St a l rt h reet P u t t 7.4 eet ou D r e C k St l n d a o i 1 Ol H 7.3 PO
Un 7.8 Uni on St 9 ree A t Fountain Yo 7.6 r Yo t k rk e ne St La e Pond tr La re n 7.8 e S 7.9 7.6 on et q 7.8 7.9 Se at s a e e to S PH 7.7 7.9 n ar Burrard Stre Pl 7.4 et ace m PH reet u Hue St e D c
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7 7.5 d 2 To wn Hall r 7
PH a r B 7.3 Ca r Pk r Se u ale Street 7.3 7.6 7.9 B Evangelical
e 7.3 8.0 Ch urch n t t 7.3 La e Jardin de la Mer ee q re r B t t s S 72 Ca r Pk S re q 8.0 e a w es n 7.8 r m a
Ca r Pk Ne t L ma e Du u o
Sa D re o t nd 7.3 rl S 3 e
S B 9 7.3 t tre 0 n a e o 8.0 7.5 t W B 90 D 7.9 7.3
8.5 7.7 4 7.9 7.7 t 8 7.6 E tree l Su S b S t ta n 7.5 Water y Multi Car Pk ee loo St 5 a tr Ca r Pk reet P 7.8 S 7.4 t it Es La P St Paul's pl Ru 7.7 an e Ch urch a 6 t d de 7.6 es (C of E) ree M iel 92 7 St le Ca r Pk s B Sand ley 7.6 n 7.6 1. HSBC A 9 7.5 2. Jersey Finance Ce ntra l Market PH 9.1 7.9 12 6.7 Ki t ng e St e t tr re 3. Carey Olsen S et e 8.0 e 21 l B tre st ro S El Sub Sta a ad 9.6 C w 11 e 6.6 St 4. Ogier 13 N re e t 9.9 PH 8.0 22 7.9 8.3 5. Union Bancaire Privee 10.1 10 9.5
9.9 92 6. Citibank B 6.7 PH K Ca r Pk 7.6 ing t Stree t 20 t Stree Cu ve 7.4 Hilgro 7. KPMG, PwC andCa r Pk Collins Stewart w 8.9 C Ne t o e mm e PO Obilisk r e 19 S B rc e k 8. BNP Paribas ia 7 c La l 2 o S 7.7 a o Vi l L 9.1 tr ne R e St P a t e B Br o t re t Ro ut e 7 et et t 18 e e tre 2 re 7.5 u t k l 9. Fairbairn Bank te de S 7.7 S le d Lib 8.1 a Q de t a ra PH ue la s ro ry P H en S Tourism Office B lace tre la Li Ca 7.5 et b 14 Li é 10. C5 Alliance bé ra 6.3 Ci nema t 8.6 ra io Ho tel ti n Ch PH o ur n 15 7 ch 7 11. Jersey Financial Services Commission Ro yal Square
B PH S 10.9 (Le Vier Marchi) PC t Monument re 9.1 12. Capita 16 7.7 et
17 t ee tr C 13. Standard Chartered Bank r S o 11 .9 9.4 y s Bo Hill Street a s States Buildings 9.3 w n S nd o t r 7.3 C e 14. SG Hambros Bank & Trust Co. S e tr t 9.8 7.4 e Parish Church of St Helier et 9.4 15. Hawksford International 9.6 PH
Jet Wh t et ty 10.0 6.8 ee re 16. Appleby Swimming Pool r St arf St Es pe ter p 8.1 o La H as R la St lc out n Mu ad r e ee La de e t 17. Lloyds TSB Private Banking Ro la ee u Lib t tr te érat S de io ope la L n H ibé 8 rati A 7.9 18. Santander on 7.6 7.5 A
4 s Wk 11 .9 Ho tel ef 7.0 D 19. Royal Bank of Canada 7.0 7.7 ks PH f W De
20. RBS Coutts A 7.4 9.9 9.7 1
Ho tel 21. Barclays 7.0 7.7 D Ponds e A 7.5 f 1 W k e MH s 22. Jersey International Finance Centre W Liberation Square ac
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7.5 ig a n a ni l S t do a FB le
y Ca Jett Weighbridge Place Mus O 13.2 r d n FB a k 7.7 7.6 P n Ca r c r e P Ca k Y a d t a S b r oa s d 10.0 k u 7.6 R S W l f E r e ie D P
Location
Situation THE ESPLANADE ST HELIER JERSEY
Liberation House & Windward House
Summary Location Liberation House & Transportation Liberty Wharf Liberty Wharf Tenure, Tenancy & Market Asset Proposal Windward House House Shopping Centre Tourist Office Covenant Commentary Management & Contact Liberation House & Windward House
Liberation House & Windward House
Description Liberation House & Windward House
Liberation House & Windward House
Liberation House
Built in 2007, Liberation House is a modern, six-storey multi-let office building of concrete frame construction. The property provides some of the most expansive floor plates in Jersey making it an extremely attractive proposition for large occupiers. The design includes a single storey reception, air- conditioning, full accessed raised floors, suspended ceilings, generous floor to ceiling height and LG3 compliant lighting. There are 51 underground car parking spaces which provides a ratio of 1:1,205 sq ft.
Windward House
Windward House comprises a modern, five-storey office building of concrete frame construction built in 2007. The property provides smaller floor plates to that of Liberation House which appeals more to the smaller occupiers on the island. The design includes a single entrance area, air-conditioning, full accessed raised floors, suspended ceilings, generous floor to ceiling height and LG3 compliant lighting. There are underground 13 car parking spaces which provides a ratio of 1:1,808 sq ft.
CASTLE STREET
ESPLANADE
LA ROUTE DE LA
LIBERA TION
Description Liberation House & Windward House
Accommodation
Demise Occupier Area (sq ft) Windward Hse - 4th Floor Sea Thrift Ltd (BDO) 4,694 Windward Hse - 3rd Floor Sea Thrift Ltd (BDO) 4,918 Windward Hse - 2nd Floor Sea Thrift Ltd (BDO) 4,809 Windward Hse - 1st Floor Sea Thrift Ltd (BDO) 4,918 Windward Hse - Grd Floor Sea Thrift Ltd (BDO) 4,162 Total 23,501 Liberation Hse - 5th Floor CPA Holdings Ltd 8,605 Liberation Hse - 4th Floor CPA Holdings Ltd 11,052 Liberation Hse - 3rd Floor CPA Holdings Ltd 11,052 Liberation Hse - 2nd Floor Ernst & Young Property (Jersey) Ltd 10,715 Liberation Hse - 1st Floor Ernst & Young Property (Jersey) Ltd 11,052 Liberation Hse - Grd Floor Moore Management Leasehold Ltd 8,653 Grd - Front Talbot Transport Ltd 347 Total 61,476
Accommodation Liberation House & Windward House
Accommodation Liberation House & Windward House
Floor Plans
Liberation House Typical Upper Floor Windward House Typical Upper Floor
OFFICE AREA OFFICE AREA OFFICE AREA
Liberation House Ground Floor Windward House Ground Floor
OFFICE AREA OFFICE AREA
OFFICE AREA
Floor Plans THE ESPLANADE ST HELIER JERSEY
Transportation House
Summary Location Liberation House & Transportation Liberty Wharf Liberty Wharf Tenure, Tenancy & Market Asset Proposal Windward House House Shopping Centre Tourist Office Covenant Commentary Management & Contact Transportation House
to be outlined
Description Transportation House
Transportation House
Transportation House, developed in 2007, comprises the Liberation bus station located at ground level, a Regus serviced office operation, with a large picturesque terrace on the first floor and the Apart Hotel on floors two, three and four.
Demand for serviced offices and apartments in Jersey has increased over recent years, stimulated both by the island’s increasingly flourishing business and financial community and by an influx of affluent leisure travellers. Stylish, fully furnished offices and apartments in this location are thanks to Liberty Wharf’s coveted and convenient proximity to Jersey’s established amenity offerings.
CASTLE STREET
ESPLANADE
LA ROUTE DE LA
LIBERA TION
Description Transportation House
Regus
The Regus offering at Liberty Wharf is set out over one whole floor below Liberty apartments. The space totals 14,006 sq ft of office accommodation providing local businesses meeting and training rooms, conference and boardrooms, a business lounge, café and reception area, the facility also benefits from a 10,797 sq ft terrace area which can be used for external meetings and networking.
Liberty Wharf Apart Hotel
Liberty Wharf Apart Hotel, situated over floors two, three and four directly above the Regus, provides 63 five-star serviced apartments designed for the business community and offering tourists a contemporary alternative to the island’s hotels. In 2007, BridgeStreet entered into a 15 year contract to manage the apartments which comprise a selection of studios, one and two-bedroom apartments, some with balconies and views of the harbour and town.
Liberation Station
Liberation Station does not form part of the ownership at Liberty Wharf, but plays an important role in drawing in locals and tourists to the retail element of Liberty Wharf generating increased footfall. The station is situated directly below the apartments and Regus at an important transport axis between the marina and town centre, Liberty Wharf’s bus station is at the heart of St. Helier. Liberation Station, named by the Jersey residents, opened in September 2007, and is sited behind the weighbridge and HQ of the island’s former railway, dismantled at the end of the Second World War.
Description Transportation House
Accommodation
Demise Occupier Area (sq ft) Transportation Hse - Apart Hotel 32,000 2nd, 3rd & 4th Floor (NOT MEASURED) Approximately Transportation Hse - Regus 14,006 1st Floor TOTAL 46,006
Accommodation Transportation House
Floor Plans
Regus First Floor
19 342 20 18 21
17 22
23
24
29 25
28 26 27 28 15 16 17 18 26 27 28 15 16 17 18 27
26 25 24 23 22 21 20 19 25 24 23 22 21 20 19
Apart Hotel Second Floor
36
35 37
34 38
33 39
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48 41
47 42
46 43
43 44 45 46 31 32 33 34 43 44 45 32 33 34 45
44
42 41 40 39 38 37 36 35 42 41 40 39 38 37 36 35
Floor Plans THE ESPLANADE ST HELIER JERSEY
Liberty Wharf Shopping Centre
Summary Location Liberation House & Transportation Liberty Wharf Liberty Wharf Tenure, Tenancy & Market Asset Proposal Windward House House Shopping Centre Tourist Office Covenant Commentary Management & Contact Liberty Wharf Shopping Centre
Description Liberty Wharf Shopping Centre
Liberty Wharf Shopping Centre
Opened in 2010, the retail centre of Liberty Wharf Included within Liberty Wharf Shopping Centre are provides 45,133 sq ft of shops and restaurants three vacant units of un-refurbished office space. housed within a covered open air shopping mall of The first two units are situated on the southern side 20 units. The historic site has been transformed of the scheme above Pasty Presto in the commonly into a retail and leisure destination taking a referred to ’Old Tourism Office’. These upper units similar form to that of Spitalfield or Covent are currently un-refurbished totalling 2,936 sq ft. Garden markets. The scheme is anchored by a The vendor has experienced strong interest from Marks & Spencer Home Store plus established potential occupiers. Further information is available brands such as Costa Coffee, George fashion and on request. Hotel Chocolat but also a selection of boutique and independent retailers. The leisure element The third piece of vacant office space, which provides dominates the eastern side of the scheme where a significant upside opportunity, is located above the there is a balanced mix of chain eateries, an Marks & Spencer unit totalling 7,267 sq ft. The vendor upmarket restaurant with outdoor dining and a has recently secured planning consent for office use bar/nightclub. following strong interest from various office occupiers. Further information is available upon request.
CASTLE STREET
ESPLANADE
LA ROUTE DE LA
LIBERA TION
Description
Liberty Wharf Shopping Centre
Goad Liberty Wharf Shopping Centre
Accommodation Liberty Wharf Shopping Centre
Accommodation
Demise Occupier Area (sq ft) Liberty Wharf Grd - 1a/2a/2c Sandpiper CI Retail Ltd (M&S) 12,168 Liberty Wharf Grd - 2b & 2d More Than Sport Ltd 975 Liberty Wharf Grd - 3 Under Offer 2,541 Liberty Wharf Grd - 4,5,6 Sandpiper CI Retail Ltd (George) 8,619 Liberty Wharf Grd - 7 Eclectic Ltd 618 Liberty Wharf Grd - 8 MoMo Ltd 462 Liberty Wharf Grd & 1st - 9 & 10 La Nautique Bar Restaurant Ltd 11,503 Liberty Wharf Grd - 11a Vacant 883 Liberty Wharf Grd - 11b Joe Delucci’s Jersey Ltd 346 Liberty Wharf Grd - 12 Sandpiper CI Retail Ltd (Costa) 1,393 Liberty Wharf Grd - 12a Sandpiper CI Retail Ltd (Costa) - Liberty Wharf Grd - 13a Sandpiper CI Retail Ltd (Pasty Presto) 976 Liberty Wharf Grd - 13b Seafish Café (Jersey) Ltd 1,225 Liberty Wharf Grd - 14 Pearl Poetry Ltd 202 Liberty Wharf Grd - 14a Chantale Angeline Gosselin 422 Liberty Wharf Grd - 15 Lucas Bros 391 Liberty Wharf Grd - 16 Sandpiper CI Retail Ltd (Hotel Chocolat) 978 Liberty Wharf Grd - 17 Under Offer 1,431 Liberty Wharf 1st - 1 Vacant 7,267 Liberty Wharf 1st - 13c Vacant 1,930 Liberty Wharf 2nd - 13c Vacant 1,006 Harbour Office Grd Public of the Island of Jersey 1,220 Albert House 1st Castle Cleaning 664 Albert House Grd & 2nd Management Office 960 TOTAL 58,180
Accommodation THE ESPLANADE ST HELIER JERSEY
Jersey Tourist Office
Summary Location Liberation House & Transportation Liberty Wharf Jersey Tourist Tenure, Tenancy & Market Asset Proposal Windward House House Shopping Centre Office Covenant Commentary Management & Contact Jersey Tourist Office
Jersey Tourist Office
Liberty Wharf also houses the Jersey Tourist Office which is arranged over ground and four upper floors totalling 6,198 sq ft (575 sq m), which is located at the natural entrance to the estate when approaching from the Esplanade, the now established central business district in St Helier. The floor plates are ideally suited to the local occupational market.
Demise Occupier Area (sq ft) Tourism Office - 4th Floor Public of the Island of Jersey 1,095 Tourism Office - 3rd Floor Public of the Island of Jersey 1,331 Tourism Office - 2nd Floor Public of the Island of Jersey 1,339 Tourism Office - 1st Floor Public of the Island of Jersey 1,040 Tourism Office - Grd Floor Public of the Island of Jersey 1,283 TOTAL 6,088
CASTLE STREET
ESPLANADE
LA ROUTE DE LA
LIBERA TION
Description/ Accommodation THE ESPLANADE ST HELIER JERSEY
Title, Tenure & Tenancy
Tenure, Tenancy & Covenant THE ESPLANADE ST HELIER JERSEY
2 9 B 6.7
Co Title mm er cia l St ree The ultimate freeholder is the Public of The Island of Jersey t treet (Public) who entered in to a single long leasehold interest S 7.7 le st with the Waterfront Enterprise Board (now the State of Jersey Ca
6.3 Development Company (SoJDC)) over the island site for 150 8.6 Jersey Tourist years from 7th November 2003 at a peppercorn rent. Office
9.1
Tenure Liberation &
Li Windward House b e ra tio n The properties are held as four long sub-leasehold B us S ta 7.3 Interests from SoJDC for terms of 148 years and 24 days tion expiring on the 6th November 2153 on a peppercorn rent.
9.6 Transportation House
6.8 Tenancy E L spl a Ro a ute nad L de a Ro la Liberty Wharf e u Libér Liberty Wharf is multi-let to 20 tenants, with over 89% of the te de at Shopping Centre la ion Libé 8 income secured against strong industry names. rati A on 7.6
Hotel 7.0 Tenants include BDO, Ernst & Young, Marks & Spencer and 7.0 CPA Holdings. The estate produces a total rent of £5,249,429 7.7 per annum. A 1
Just 5.20% of the estate is currently vacant by area. The vacant 7.0 A Ponds 7.7 accommodation comprises 9,893 sq ft of unrefurbished offices 1 7.5 MH and 857 sq ft of retail accommodation. W Liberation Square 7.5
Weighbridge Place
7.7
Tenure, Tenancy & 7.6 Car Pk Covenant 7.8
Tenure & Tenancy THE ESPLANADE ST HELIER JERSEY
Tenancy Schedule
Tenure, Tenancy & Covenant THE ESPLANADE ST HELIER JERSEY
Tenancy Schedule
The accommodation has been laid out in accordance with the schedules below and split by the four long leasehold elements. The areas are based on the measured surveys which have been undertaken.
WALE Area Rent WALE to Passing Rent Passing Rent Rent Free to Unit Component Type Tenant NIA/GIA Start Date Expiry Date Break Date Review Break Comment (total) (psf) End Expiry (sq ft) Date (yrs) (yrs) Grd - Liberation Hse LW4 - Lib House Office Moore Management Leasehold Ltd 8,552** 227,828 26.64 25-Jan-08 24-Jan-32 24-Jun-23 25-Jan-14 8.0 16.6 2014 rent review outstanding. 1, 2 - Liberation Hse LW4 - Lib House Office Ernst & Young Property (Jersey) Ltd 21,978** 615,384 28.00 11-Dec-07 10-Dec-31 11-Dec-22 11-Dec-16 7.5 16.5 3, 4, 5 - Liberation Hse LW4 - Lib House Office CPA Holdings Ltd 30,782** 861,896 28.00 01-Oct-07 30-Sep-28 01-Oct-23 01-Oct-16 8.3 13.3 CP Grd - Liberation Hse LW4 - Lib House Parking Moore Management Leasehold Ltd 6 18,000 3,000.00 25-Jan-08 24-Jan-32 24-Jun-23 25-Jan-17 8.0 16.6 CP1 - Liberation Hse LW4 - Lib House Parking Ernst & Young Property (Jersey) Ltd 10 30,000 3,000.00 11-Dec-07 10-Dec-31 11-Dec-22 11-Dec-16 7.5 16.5 CP2 - Liberation Hse LW4 - Lib House Parking CPA Holdings Ltd 20 60,000 3,000.00 01-Oct-07 30-Sep-28 01-Oct-23 01-Oct-16 8.3 13.3 All car park licences can be terminated CP - Parking LW4 - Lib House Parking Surplus Parking Licences 15 45,000 3,000.00 01-Sep-15 0.2 0.2 on 3 months written notice. Peter Michael Nowell & 2016 rent review will be the higher of Grd - Kiosk LW4 - Lib House Retail 960** 23,500 21.88 25-Mar-13 24-Mar-22 01-May-16 6.8 6.8 Natalie Jane Nowell £25,000 and Jersey RPI reviewed rent. Grd - Front LW4 - Lib House Retail Talbot Transport Ltd 315 5,000 15.87 01-Apr-14 31-Jul-17 2.1 2.1 LW4 - W i n d w a r d 1 - Windward Hse House Office Sea Thrift Ltd (BDO) 24,081** 672,448 27.92 01-Sep-08 31-Aug-32 31-Aug-24 01-Sep-17 9.2 17.2 LW4 - Windward Standard car parking spaces within the CP1 - Windward Hse Parking Sea Thrift Ltd (BDO) 10 30,000 3,000.00 01-Sep-08 30-Aug-32 31-Aug-24 01-Sep-17 9.2 17.2 House basement car park. LW4 - Windward Double stacked car parking spaces CP2 - Windward Hse Parking Sea Thrift Ltd (BDO) 3 4,500 1,500.00 01-Sep-08 30-Aug-32 31-Aug-24 01-Sep-17 9.2 17.2 House within the basement car park. TOTAL 86,668 2,591,156 8.2 15.2
1 - Transportation LW1 - Apart & Liberty Wharf Apart Management Ltd Area is approximate, the Apart Hotel Hotel 32,000 600,000 01-May-08 30-Apr-17 1.9 1.9 provides 63 rentable units at a base rent Hse Regus (Rent) of £600,000 per annum. Revenue based on projected 2015 income receipts. 2015 budget figure is 1 - Transportation LW1 - Apart & Liberty Wharf Apart Management Ltd £350,000 and the receipts to date are Hotel 300,000 01-May-08 30-Apr-17 1.9 1.9 Hse Regus (Revenue) ahead to budget target. 2014 revenue reached £260,000 . Further information available on request. Rental figure based on 2014 revenue. The Regus agreement has a range of income receivable based on a revenue linked rent mechanism. There is a base 2 - Transportation LW1 - Apart & Serviced rent with a floor of £227,500 per annum Regus Jersey Ltd 14,000** 330,337 23.60 26-Jan-09 25-Jan-39 25-Oct-25 26-Oct-15 10.4 23.6 and a cap of £350,000 per annum, plus Hse Regus Office a top up rent of 20% of gross revenues in excess of £175,000 per quarter. More information available on request. The area includes the terrace of 10,797 sq ft which is not rentalised.
TOTAL 56,797 1,230,337 4.2 7.7
* Denotes area stated in the lease on a Gross Internal basis. ** Denotes area stated in the lease on a Net Internal basis.
Tenure, Tenancy & Covenant
Tenancy Schedule THE ESPLANADE ST HELIER JERSEY
WALE Area Rent WALE to Passing Rent Passing Rent Rent Free to Unit Component Type Tenant NIA/GIA Start Date Expiry Date Break Date Review Break Comment total psf End Expiry sq ft Date yrs yrs LW2 - Shopping Grd - 1a/2a/2c Retail Sandpiper CI Retail Ltd (M&S) 12,621* 290,552 23.02 18-Aug-10 17-Aug-35 18-Aug-20 18-Aug-15 5.2 20.2 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 2b & 2d Retail More Than Sport Ltd 1,004* 8,000 7.97 12-Dec-12 11-Dec-21 11-Dec-17 12-Dec-15 2.5 6.5 Fixed rental uplift to £9,000 from 12 Centre December 2015. LW2 - Shopping Grd - 3 Retail Sandpiper CI Retail Ltd (Moss Bros) 2,547 55,000 21.59 31-Mar-16 22-Jun-15 21-Jun-24 22-Jun-18 9.0 9.0 Centre LW2 - Shopping Grd - 4,5,6 Retail Sandpiper CI Retail Ltd (George) 8,079* 161,580 20.00 30-Mar-12 30-Mar-37 22-Mar-22 30-Mar-17 6.8 21.8 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 7 Retail Eclectic Ltd 403* 22,018 54.64 06-Jul-10 05-Jul-19 06-Jul-16 4.1 4.1 Centre LW2 - Shopping Grd - 8 Retail MoMo Ltd 467* 21,615 46.28 08-Mar-11 07-Mar-20 08-Mar-17 4.7 4.7 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd & 1st - 9 & 10 Retail La Nautique Bar Restaurant Ltd 9,267* 250,000 26.98 26-Jul-11 25-Jul-35 25-Jul-26 26-Jul-14 11.1 20.1 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 11a Retail Vacant 857 - - - - Centre LW2 - Shopping Grd - 11b Retail Joe Delucci’s Jersey Ltd 323* 15,000 46.44 01-Aug-11 31-Jul-20 31-Jul-16 01-Aug-14 1.1 5.1 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 12 Retail Sandpiper CI Retail Ltd (Costa) 1,460* 36,500 25.00 17-Sep-10 16-Sep-35 16-Sep-25 17-Sep-15 10.3 20.3 Open Market or Jersey RPI linked rent Centre review. Annual licence review paid on a LW2 - Shopping Grd - 12a Retail Sandpiper CI Retail Ltd (Costa) 289* 12,000 41.52 01-Jan-14 16-Sep-35 01-Aug-15 01-Jan-15 0.1 20.3 monthly basis, the licence can be Centre terminated in line with the payment profile on a monthly basis. LW2 - Shopping Grd - 13a Retail Sandpiper CI Retail Ltd (Pasty Presto) 1,560* 39,000 25.00 31-Mar-10 30-Mar-35 30-Mar-25 31-Mar-15 9.8 19.8 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 13b Retail Seafish Café (Jersey) Ltd 1,490* 45,000 30.20 20-Dec-12 19-Dec-21 20-Dec-18 20-Dec-15 3.5 6.5 Centre LW2 - Shopping Grd - 14 Retail Pearl Poetry Ltd 218* 16,452 75.47 29-Sep-10 28-Sep-19 29-Sep-16 4.3 4.3 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 14a Retail Chantale Angeline Gosselin 411* 18,000 43.80 25-Mar-11 24-Mar-20 25-Mar-17 4.8 4.8 Centre LW2 - Shopping Grd - 15 Retail Lucas Bros 425* 18,000 42.35 01-Apr-14 31-Mar-23 01-Apr-17 - 7.8 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - 16 Retail Sandpiper CI Retail Ltd (Hotel Chocolat) 1,068* 26,700 25.00 17-Sep-10 16-Sep-35 16-Sep-25 17-Sep-15 10.3 20.3 Open Market or Jersey RPI linked rent Centre review. Under offer to a local occupier LW2 - Shopping Fixed uplifts - Year 2: £32,500 - Year Grd - 17 Retail Under Offer 1,411 30,000 21.26 31-Dec-15 01-Aug-15 31-Jul-24 01-Aug-16 9.1 9.1 3: £38,000. 3 yearly review pattern Centre with higher of Open Market or Jersey RPI linked. LW2 - Shopping 1st - 1 Office in negotiations/rent guarantee 7,640 220,000 - 01-Jul-15 29-Dec-16 1.6 1.6 Rent Guarantee. Change of use granted Centre to offices, notice available. LW2 - Shopping 1st - 13c Office Vacant 1,482 - - - - Centre LW2 - Shopping 2nd - 13c Office Vacant 771 - - - - Centre LW2 - Shopping Grd - Harbour Office Office Public of the Island of Jersey 1,674* 5,000 2.99 27-Sep-13 26-Sep-34 27-Sep-16 19.3 19.3 Open Market or Jersey RPI linked rent Centre review. LW2 - Shopping Grd - Albert House Office Management Office 1,004 - - - - Centre LW2 - Shopping Grd - Albert House Office Castle Cleaning 625 12,000 21.12 01-Jul-14 30-Jun-17 2.1 2.1 Centre TOTAL 57,096 1,302,417 6.6 15.2 LW5 - Tourism Grd - Tourism Bldg Office Public of the Island of Jersey 6,198** 125,519 20.25 01-Jul-07 30-Jun-28 01-Jul-16 1.1 13.1 2016 rent review is the greater of Open Office Market or Jersey RPI rent. TOTAL 6,198 125,519 20.25 1.1 13.1
GRAND TOTAL 206,759 5,249,429 6.67 13.2
* Denotes area stated in the lease on a Gross Internal basis. ** Denotes area stated in the lease on a Net Internal basis.
Tenure, Tenancy & Covenant
Tenancy Schedule THE ESPLANADE ST HELIER JERSEY
Covenant
Tenure, Tenancy & Covenant THE ESPLANADE ST HELIER JERSEY
Covenant
Sea Thrift Limited (BDO) CPA Global Ernst & Young (LLP)
Operating as a member of BDO, they are one of the leading CPA Global is the world’s leading intellectual property Ernst & Young Global Limited is a multinational professional independent firms of chartered accountants in Jersey (IP) management and IP software specialist, and an services firm headquartered in London founded in 1989 and provide the range of services that you would expect international provider of outsourced legal services. With through the merger of Ernst & Whinney and Arthur Young from a member of one of the world’s largest accounting offices across Europe, the United States and Asia Pacific, & Co with the oldest component dating back to 1849. It is organisations. BDO LLP is the world’s fifth largest CPA Global support many of the world’s best-known one of the “Big Four” audit firms and is the third largest accountancy and business advisory firm. BDO LLP employs corporations and law firms with a range of IP and broader professional services firm in the world by aggregated over 55,000 people worldwide, in over 1,200 offices, operating legal services, helping them to manage risk, cost and revenue in 2014. in over 138 countries. For the year ending April 2013, the capacity. company had a turnover of £312 million and a 10% growth The organisation operates as a network of member firms in revenue. BDO LLP is the UK member firm of the BDO Founded in Jersey, in 1969, CPA Global today employs over which are separate legal entities in individual countries. International Group which posted a combined fee income for 2,000 people, serving clients’ needs in 200 jurisdictions It has 190,000 employees in over 700 offices around 150 the year ending 30 September 2013 of $6.45 billion. through their offices and an extensive agent network. countries in the world.
BDO is one of the leading independent firms of chartered EY in the Channel Islands provides assurance, tax, accountants in Jersey offering core Audit and Tax services. transactions and advisory services.
Tenure, Tenancy & Covenant
Covenant THE ESPLANADE ST HELIER JERSEY
Moore Management Sandpiper CI Regus Jersey Limited
Moore Management are an established provider of Sandpiper CI are the largest company in the Channel Regus Plc is a multinational corporation that operates in independent administration and corporate governance Islands and have an established working relationship with 100 countries with over 2,000 business centres, making it services for institutional and corporate clients, ranging M&S, Iceland, Hotel Chocolat, Costa, Pasty Presto, Greggs, the world’s largest provider of flexible workspace. Regus from major investment banks to boutique, alternative asset Jack Wills, Crew Clothing, George and Moss Bros. They provides serviced offices, virtual offices, meeting rooms, managers located in the major financial centres. operate on an established franchise basis and allow brands and video conferencing to clients on a contract basis. The to enter the Channel Islands allied to a knowledgeable and Company is listed on the London Stock Exchange and is a In January 2013, First Names Group, a trust and corporate established retail operator. The 48 year old relationship with constituent of the FTSE 250 Index. services provider acquired the business and integrated M&S lies as a foundation for the operations, adding Costa its entire fund administration offering, which had been in and Iceland Foods in 2009, followed by Hotel Chocolat and operation since 2007, under the Moore Management brand. Pasty Presto and in late 2011 the first Crew Clothing and BridgeStreet Moore now operates from offices in Jersey, Guernsey, Jack Wills joined them on the Island. BridgeStreet Global Hospitality is the leading international Tokyo, Singapore, Isle of Man and Bermuda. www.sandpiperci.com provider of serviced apartment experiences. BridgeStreet offer luxury living at exclusive properties in the heart of the city, to great value accommodation in fantastic locations, the BridgeStreet family of brands gives the customer a wide range of choices to suit their needs and budget. BridgeStreet and its Alliance members offer over 50,000 corporate apartments in 60 countries across the globe. BridgeStreet operate the ApartHotel under a management agreement with the Liberty Wharf Apart Management Limited, operating the 63 bedroom facility.
Tenure, Tenancy & Covenant
Covenant THE ESPLANADE ST HELIER JERSEY
Market Commentary
Market Commentary THE ESPLANADE ST HELIER JERSEY
Market Commentary
The Jersey economy has been remarkably Offices resilient to the global downturn and is now showing real and tangible signs of growth Prime office rents have, over the past decade, demonstrated In addition to the consistently benign market conditions investors as the Island shakes off the last remnants a steady upward trend avoiding the downturns experienced are also able to benefit from:- of recession. elsewhere. A robust planning regime, geographical constraints and a lack of speculative development have combined to make for • Longer than average lease duration Despite the recent and prolonged a tight supply of prime space which has traditionally been supplied • UK mainland style commercial leases on a pre-let basis. recession the Jersey economy continues • Multiple 3 yearly, upward only OMV or JRPI linked indexed to thrive. It has an innate ability to flatten rent reviews Headline Rents - Jersey vs UK out the peaks and troughs of the UK • An absence of security of tenure and complex landlord & and worldwide cycles despite being 35.00 70.00 tenant legislation commercially intertwined with these 33.00 65.00 • A predominance of international covenants and UK backed sectors through its offshore financial 31.00 60.00 tenancies services industry. Jersey is increasingly 29.00 gaining stature as a mature, well regulated 27.00 55.00 • Nominal property rates, usually recoverable and sophisticated international player and 25.00 50.00 • A pool of first class professional expertise has recently been awarded a AA+ rating by 23.00 45.00 Standard and Poors. 21.00 St Helier’s prime Esplanade and associated Waterfront is the
40.00 £ per sq ft (London) 19.00 £ per sq ft (UK & Jersey) location of choice for many occupiers within the international 35.00 17.00 finance arena with a plethora of well-known businesses occupying 15.00 30.00 state of the art space. Both the government and its various marketing agencies continue to work strenuously to attract new 2000 2001 2001 2002 2003 2004 2004 2005 2006 2007 2007 2008 2009 2010 2010 2011 2012 2014 business to local shores with particular emphasis on forging links Jersey (LHS) Central London Average (RHS) Big 6 UK Regional Cities (LHS) with the Middle East and Far East.
Market Commentary
Letting Market THE ESPLANADE ST HELIER JERSEY
Jersey Letting Market
Rental growth has been achieved, even in the Of St Helier’s estimated office stock of 2.8m sq Recent Transactions poor economic climate of recent times, due ft, less than 160,000 sq ft, (5.7% of the total) is to a tight planning regime, limited speculative vacant, much of this stock being second-hand Address Date Tenants Headline Rent per sq ft development and occupier appetite from better space. True prime Grade A stock is now severely Est £32 -£34 (pre let 68-72 Esplanade May-14 Royal Bank of Canada quality offices arising due to re-locations, limited following the letting of 37 Esplanade details to be confirmed) consolidations, mergers and acquisitions. and there is now limited availability of good Nov-13 First Names (Jersey) Ltd £27 rising to £38 quality accommodation until completion of 68-72 No 37 Esplanade was instrumental in driving Esplanade scheme anchored by the 80,000 sq Nov-13 Breven Howard £33 rising to £35 rental rates forward. The property was part ft pre-let to The Royal Bank of Canada which is Sep-13 Volaw Group Services Ltd £31-£32 pre-let setting a new benchmark and the due to be delivered within the next two years. The 37 Esplanade remaining “speculative” element presented lack of supply coupled with anticipated demand June-12 Collins Stewart £34.00 a much needed opportunity for a number of is putting pressure on headline rents indicating Aug-12 KPMG £32.00 businesses seeking quality offices in prime. that rents in Jersey have the potential to increase Demand was such that the developer was further once the occupier demand improves. Nov-12 PWC £32.00 able to achieve rents of £32-34 per sq ft (net effective circa £30 per sq ft). This rental rate The majority of occupier demand is for good is expected to be further enhanced following quality, Grade A accommodation in close proximity completion of the 80,000 sq ft pre-let to Royal to the Esplanade and Waterfront. At present we Bank of Canada at 68-72 Esplanade which is are aware that a number of major, local financial due within the next two years. occupiers are discussing pre-lets which should provide the catalyst for these developments. Liberation House and Windward House are now let at £28 psf reflecting the market rent as at The demonstrable tone of the list for prime rents in last reviews in 2013/14. The next Reviews are Jersey is currently £32.00 per sq ft, having grown due from October 2016 where further rental consistently over the past few years. However, a increase are anticipated to move in line with high of £34.00 has been achieved and thus pre-let current net effective rental levels of £30.00 psf. rents are being discussed at this level for new, high quality office space. Therefore rents are expected to continue to grow in the short and medium term.
Market Commentary
Letting Market THE ESPLANADE ST HELIER JERSEY
Office Investment Market
The Jersey investment market 26 New Street and Dumaresq House, St Sir Walter Raleigh House, St Helier, Jersey has seen significant activity over Helier, Jersey • Valad European Diversified Fund (Jersey) 13 Ltd the past 12 months although, • The property was bought in Q1 2015 by Hailsham bought the property in an open market transaction like the leasing market, the Investments Limited in an open market during Q1 2015 for £6,450,000. supply of stock is relatively transaction for £14,270,000. The sale reflects a • The sale reflects a NIY of 7.75% after usual stable and as such you do not yield of 7% after usual purchaser’s costs. purchaser’s costs. • The property extends to 21,114 sq ft over experience the significant peaks • The property is let on two leases to Bedells Lawyers/Trust, on a new 21 year lease from basement, ground and four upper floors. The and troughs associated with October 2014 at a rent of £1,044,024 pa. property is 50% vacant and currently produces oversupply as is experienced • The building is in a good Grade B building £323,250 pa. The leases within the building on the mainland. in a reasonable location. It comprises two expire in 2020 all of which are subject to break interconnecting buildings. options in 2016. The most recent sales of 18-22 • The property was originally marketed at 6.75%. Grenville Street, Ogier House at 44 Esplanade and 26 New Street point to a strong appetite for high quality assets, backed Ogier House, St Helier, Jersey 18-22 Grenville Street, St Helier, Jersey by high quality covenants. • The property transacted in Q1 2015 for • The property sold in Q4 2014 for £17,500,000, However transactional activity £27,000,000 reflecting a NIY of 7.5% after usual reflecting a NIY of 8% after usual purchaser’s has been limited as landlords purchaser’s costs. Standard Life Investments costs. are reluctant to part with well bought the freehold interest. • The property comprises a 49,115 sq ft freehold performing assets against a • The property comprises a 75,946 sq ft office building which is single let to Mourant headquarters office building arranged over Ozannes LP on two FRI leases expiring in April background of the rental growth basement, ground and five upper floors, with floor 2025, therefore providing 10.5 years unexpired. that is now in evidence since the plates of c.11,000 sq ft. The passing rent is £1,401,844 pa (between £26.00 recent deals at 37 Esplanade • The building is let to Ogier Esplanade Limited and £28.50 per sq ft). and 68-72 Esplanade. with a guarantee from Ogier Fiduciary Services • The property is considered to be in a secondary Holding Company Limited on a 24 year FRI lease location on the island. which expires in November 2033. However there • The property was purchased by Apache Capital. are tenant only break options in 2021, 2025 and 2029, the first of which is subject to a penalty to the equivalent of 6 months’ rent. The total passing rent is £2,155,639.30, equating to £28.50 per sq ft.
Market Commentary
Investment Market THE ESPLANADE ST HELIER JERSEY
Retail Market Retail Investment Outlook
The retail market of Jersey is by Global standards Vacancy rates in the prime areas remain at The retail investment market has generally remained steady through the a very small market place due to the limited land almost 0%. The balance of supply and demand has economic downturn though typified by a lack of investment stock. Prime mass, a tight planning regime and relatively small remained steady with the consequence that rental yields have generally remained unchanged though secondary yields have population. However low levels of personal tax rates have held up though a nominal increase in moved out but this is countered by typically longer lease terms and a more and high levels of disposable income has led supply will alleviate some of the pent up demand stable economy coupled with a population with higher than average to a very strong retail presence by many of the would result in rental rates increasing beyond disposal income. multiple retailers and continued but unfulfilled their current levels. The low vacancy rates have demand from many UK European and US also ensured that prime headline rentals remain multiples. reasonably static at around £145 per square foot (30ft zones). The main retail focus for Jersey is the Capital, St Helier. The island benefits from a pedestrianised St Helier is also the leisure capital of the islands Office & retail unit, St Helier, Jersey prime retail zone fronting on to King Street boasting a wealth of night clubs, restaurants • The property sold in Q1 2015 for £5,950,415, and Queen Street in St Helier and supported by & bars and facilities such as sports centres, reflecting a NIY of 7% after usual purchaser’s secondary retail zones such as Liberty Wharf. museums and cinemas. Jersey’s principal costs. business hotels are also located within the • The property comprises a 19,925 sq ft freehold office retail unit which is single let to New Look The rapidly evolving Waterfront has now delivered town of St Helier. With the lower exchange rate Retailers (CI) Limited on a FRI lease expiring retailing opportunities at Liberty Wharf and with the Euro, the Channel Islands, as a tourist in August 2027, therefore providing 12 years Castle Quay. destination, is experiencing a revival particularly unexpired. The passing rent is £462,500 pa . • The property is considered to be in a secondary when focused on short stay, high spend breaks location on the island. which reflect well within the retail market as well • The property was purchased by Rougemont as the tourism industry itself. Limited.
Market Commentary
Retail Market THE ESPLANADE ST HELIER JERSEY
Asset Management
Asset Management THE ESPLANADE ST HELIER JERSEY
Asset Management Opportunities
Liberty Wharf provides a number of value add opportunities to increase income streams and lease terms as well as reducing operational void costs.
These opportunities include:
• First Floor Unit 1 of Liberty Wharf Shopping Centre which is being considered by a local office occupier.
• The Old Tourist Office which is due to be refurbished and receiving expressions of interest
• Unit 17 of Liberty Wharf Shopping Centre which is being considered by a local retailer
• Multiple rent review opportunities in next 3 years including open market and JRPI linked uplifts
• Tourist Office lease event in 2016 providing the opportunity to increase rents in line with market tone
Asset Management THE ESPLANADE ST HELIER JERSEY
Proposal & Contact
Proposal & Contact THE ESPLANADE ST HELIER JERSEY
Capital Allowances Contact
Capital allowances are available. Please contact the agents for further For further information or to arrange an inspection please contact: information.
PJ Thibault Will Prewer VAT 020 7152 5022 020 7152 5459 [email protected] [email protected] VAT is not applicable in Jersey. Goods and Services Tax (@ 5%) may be applicable. All figures quoted in this brochure are exclusive of GST and we Cushman & Wakefield Josh Beebee would recommend that prospective purchasers make their own enquiries 43-45 Portman Square as to liability. 020 7152 5266 London W1A 3BG [email protected]
Proposal Simon Buckley Offers are invited in excess of £70,000,000 (Seventy Million Pounds) for the long leasehold interest of the property subject to contract. 01534 880 880 [email protected] A purchase at this level would reflect a net initial yield to 7.04% after allowing for purchaser’s costs of 6.50%. Buckley & Company Four SPVs are available to purchase, which would reflect a net initial One Esplanade yield of 7.39% after allowing for purchaser’s costs of 1.50%. St Helier, Jersey
MISREPRESENTATION ACT 1967. Cushman & Wakefield LLP nor Buckley & Company (and their joint agents if appointed) for themselves and for vendors of lessors of this property whose agents are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services and facilities are in good working order. (5) Unless stated otherwise, no investigations have been made regarding pollution or potential land, air or water contamination, Interested parties are advised to carry out their own investigations if required. June 2015. 04568 / 020 7355 2500 / taylerreid.co.uk
Proposal & Contact